GAMBLING LIMITS

When Missouri voters approved a constitutional amendment establishing riverboat gambling in November 1992, included in it was a limit on losses from wagering of $500 per person for each two-hour trip on a boat.

It is worth recalling other claims that formed the basis of the positive vote by which the people passed the proposal. Campaign advertisements stressed excursion boats as proponents skillfully played on the romance many Missourians feel about 19th century river travel aboard the old steamboats. There would be, we were told, no land-based casinos. Boats would float, we were told, and no incursions by casinos down the peaceful streets of Missouri cities were contemplated. Further, limitations on when boats could begin excursions were contained in the original measure. Thus the loss limit effectively applied for each two-hour trip.

Each of these restrictions, whether expressly stated in law or implied in advertisements, was intended to answer, in one form or another, the fierce opposition that arose then and continues now. Opponents argued to anyone who would listen that all these limitations were in reality a subterfuge, destined to be discarded as soon as casino operators gained approval to operate in the Show Me State.

In this argument the opponents are, in may cases, being proved correct. Of the boats licensed by the state gaming commission from the Bootheel to St. Joseph, only one -- the Aztar casino in Caruthersville -- plies the river on excursions, but only when it is deemed safe to be on the river. The commission has approved permanently docked casinos, and some are even being located on artificial, man-made lagoons. And now comes a renewed attempt to repeal Missouri's loss limit, which is unique in the industry.

Sen. Bill McKenna, D-Barnhart, introduced a bill last month that would repeal the limit. The Jefferson County lawmaker's bill would also permit gamblers to board permanently docked boats at any time, rather than waiting every two hours to go aboard, as they must currently.

"Removing the loss limit will make us more competitive with Illinois and other states," says McKenna. The Missouri Gaming Commission, which regulates the state's eight floating casinos, has said that such a move would increase revenue to the state and to communities hosting the boats. "Loss limits cost the state money and put us at a competitive disadvantage," said Kevin Mullaly, the commission's deputy director. "It's also hard to enforce." He estimates revenue to the boats and to the state could increase by up to one-third if the limit is removed.

Mullaly said the average statewide loss aboard gambling boats is $27.73 per person per two-hour cruise. Without the loss limit, backers forecast that figure will rise to $40. Since riverboat gambling began in May 1994, the boats have paid $160 million in state and local gambling taxes and fees on gross revenues of $578 million. The gaming commission has taken no position on doing away with the two-hour cruises.

Lawmakers should pause and reflect before they rush to approve Sen. McKenna's bill. At risk is not only the credibility of all who backed the original gambling proposal, but also that of the lawmakers themselves. With all the erosion that has occurred in the proposition the people approved back in 1992, it is an entirely open question whether Missouri voters would today approve this business of riverboat gambling as it has evolved.