Two lawsuits challenge Missouri casino ballot measure

A ballot measure that would eliminate the loss limits at Missouri casinos and cap the number of licensed gambling boats was challenged by two lawsuits filed Thursday in Jefferson City.

Both lawsuits seek to block the measure from being on the Nov. 4 ballot, arguing that the measure covers more than one subject in violation of the Missouri Constitution. Cape Girardeau businessman David Knight and Rep. Ray Salva, D-Sugar Creek, are the lead plaintiffs in one lawsuit; the other was filed on behalf of two St. Louis-area residents and is backed by Casino Watch, a group that has consistently opposed the expansion of gambling in Missouri.

The lawsuit filed on behalf of Knight and Salva also challenges the proposal based on other sections of the Missouri Constitution and state law. The lawsuit alleges that the proposal:

• Takes away the power to permit gambling on the Mississippi and Missouri rivers granted to the Missouri Legislature by the constitution.
• Diverts gambling revenue dedicated to higher education to elementary and secondary schools.
• Violates the constitution's prohibition on granting an "exclusive right, privilege or immunity" to a corporation, individual or association.
• Violates the constitution's Bill of Rights by denying people the ability to "enjoy the gains of their own industry" by blocking new casino licenses.
• Violates state law by failing to mention that some local governments could lose revenue because no casino will be allowed in their jurisdiction.
• Violates state law by failing to include a notice that it repeals by inference a law granting the Missouri Gaming Commission control over the number of licenses granted to any city or county.

In an interview, Knight said the fact that two groups — one opposed to casinos, one representing areas where developers hope to build new casinos — filed lawsuits shows how flawed the ballot measure is. "I think we have a very good chance," Knight said. "I believe that if the laws mean anything, if what the law says as you read it means anything at all, we will win."

But an attorney for the Yes for Schools First Coalition, the casino company-backed committee sponsoring the initiative, said the lawsuits raise no new issues. Chuck Hatfield of Stinson, Morrison Hecker LLP, said Knight's lawsuit uses every possible argument and he believes none of them has merit.

"This is an attempt to throw everything against the wall and see what sticks," Hatfield said. "The secretary of state rejected these arguments, and I don't think the courts are going to go along, either."

Secretary of State Robin Carnahan approved the ballot measure as one of two submitted by initiative petition that will go before voters this fall. Along with the cap on licenses and the repeal of the loss limit, the measure increases the tax on casino proceeds, dedicates the new revenue to public schools and requires an annual audit to make sure the new funding does not replace current spending for schools.

For more information, check back at semissourian.com or read Friday's Southeast Missourian.