SHAKEOUT TIME FOR RIVERBOATS

When operators of gambling riverboats and their suppliers and regulators met recently for a convention and expo in St. Louis, there were some red alerts. A big topic of discussion was whether or not the proliferation of riverboat gambling has resulted in the saturation of the market.

Currently there are six states with riverboat gambling. One of them, Louisiana, has had a rough time -- so bad, in fact, that the state may rescind its riverboat laws. Nearby Arkansas, which has been looking at a statewide vote on riverboat gambling, may never see the issue reach a ballot. And, if it does, some gambling analysts suggest voters won't approve it in that state.

Generally, the folks deeply involved in riverboat gambling indicate their industry is in a shakeout period. This means the riverboats and the thousands of gamblers who enjoy them are adjusting to the fairly rapid expansion of gambling opportunities. It was, after all, only a few years ago that gamblers in this country only had two options: Nevada and Atlantic City.

But not all riverboat operators see gloom and doom. Even though there is likely to be a significant slowdown in the granting of new licenses -- there are some estimates there won't be any new operations for nearly three years -- others suggest that the problem isn't saturation at all. Instead, there are worries that some states haven't done a good job of regulating their gambling operations. Poor decisions about the locations of some gambling casinos also have resulted in failures. And some casino development went full speed without proper attention to the amenities expected by gamblers who want a good time: hotels, highways and entertainment.

In the end, states that pay close attention to the potential for success of existing and proposed gambling operations are likely to be the ones that succeed. All of which make the Missouri Gaming Commission's caution and deliberate pace all the more important.