LETTERS: GAMING COMMISSION FEES EXPLAINED

To the editor:

Your April 24 editorial regarding the source of funding for paying the expense of gaming agents assigned to Missouri riverboat casinos told only one side of the story, that of the casinos. In order to present your readers with a complete understanding of the issues, I think it is important to submit the following analysis.

The facts and legal issues in this case are not complicated. The statute is clear that the riverboat casinos are responsible for a $2-per-patron admission fee and, in addition, must reimburse the state for the full cost of gaming agents assigned to the casino to protect the public.

Section 313.824 of the Missouri Revised Statutes states that the commission "shall establish by rules and regulations the amount of staff necessary to protect the public on any excursion gambling boat. ITAL The excursion gambling boat licensee shall reimburse the commission for the full cost of such staff." (Emphasis added.)

Furthermore, Section 313.004.9, which authorizes the commission to enter into a memorandum of understanding with the highway patrol, mandates that the commission "require excursion gambling boat licensees to pay for such services" when the agreement is entered into for responsibilities relating to excursion gambling boats.

Section 313.004.9 also states: "Any consideration paid by the commission for the purpose of entering into, or to carry out, any agreement shall be considered an administrative expense of the commission." The riverboat gaming operators argue that this language, coupled with the language in Section 313.935, requires the commission to pay the cost associated with its memorandum of understanding with the highway patrol out of the portion of the Gaming Commission Fund that is funded by the state's share of the $2 admission fee. However, a careful reading of the statute demonstrates that the admission fee is not the fund's sole source of revenue.

Section 313.835 states: "All revenue received by the commission from license fees, penalties, administrative fees, ITAL reimbursement by an excursion gambling boat operators for services provided by the commission and admission fees authorized under the provisions of sections 313.800 to 313.850 shall be deposited in the state treasury to the credit of the Gaming Commission Fund which is hereby created for the sole purpose of funding the administrative costs of the commission, subject to appropriation." (Emphasis added.)

Therefore, while it is true that the Gaming Commission Fund is established to fund the administrative costs of the commission, the admission fee is not its sole source of revenue. The commission also collects license fees, penalties, administrative fees and reimbursements to be deposited into the fun. According to the industry's argument, the commission is not authorized to collect funds other than the admission fee unless the admission fee fails to cover the commission's administrative costs. However, the statute does not say this. There is no language giving the admission fee preference over all other sources of revenue for the Gaming Commission Fund.

In summary, the statute is surprisingly clear that riverboat gambling operators are responsible for the cost of agents assigned to each boat. The officers are there to enforce the Riverboat Gambling Act and the rules and regulations of the commission. These laws are designed to protect the public and are the core of the mission of the gaming commission.

Finally, it is important that the issue as to whether the gaming commission is properly following the law in billing the boats be separated from the issue of whether it is appropriate public policy. The General Assembly's Joint Committee on Gaming and Wagering recently studied this policy issue and recommended that the gaming commission consider a number of options regarding enforcement billing. While there is some flexibility with regard to how the costs are billed, it is clear that the Legislature must change the law in order for the commission to discontinue the practice of requiring reimbursement from the riverboats for the cost of enforcement agents.

KEVIN P. MULLALLY, Deputy Director

Legal and Legislative Affairs

Missouri Gaming Commission

Jefferson City