...AND ILLINOIS LOOKS AT TAXES

Meanwhile, Illinois Gov. Jim Edgar has proposed a graduated state tax for riverboats in that state, one that would take a bigger bite from gambling operations that are doing well and less of a hit from boats that are struggling.

Currently Illinois takes a flat 20 percent from the adjusted gross receipts of all the boats. Overall, riverboats in that state are, like those in Missouri, doing far better than originally projected when riverboat gambling was authorized in 1990. In the year that ended in September, the boats have generated a total of $1.1 billion in revenue.

Edgar's plan would tax the boats in increments ranging from 15 percent for the first $25 million of receipts to 35 percent of receipts over $100 million a year. He projected the taxation change would generate an additional $67 million for the state.

So far his idea hasn't been warmly received, but he hopes the Illinois legislature will consider the plan when it convenes for its fall veto session in November.

It's likely, however, that if gambling riverboats continue to outstrip performance predictions over the long haul, states will also look for ways to share in the extra dollars.