KBIA

Schools and Gambling at Issue with Proposition A COLUMBIA, MO (KBIA) - Missouri voters this Tuesday are considering a ballot measure that would remove the state's gambling "loss limit" and increase the gambling tax. Supporters of the measure says this could generate millions of dollars for Missouri schools. But as with most ballot measures- there's some disagreement on the issue. KBIA's Robbie Berlin follows the money on Proposition A.


For Boonville's casino, Isle of Capri, and all other casinos in the state of Missouri major changes in gambling laws will take place if Proposition A passes on Nov. 4th. Proposition A would remove the current individual maximum loss limit of 500 dollars for every two hour period. It would not allow for any new casinos to be built and would increase the gambling tax from 20 percent to 21 percent. As a result, according to the ballot measure, government estimates show the plan could generate as much as 130 million dollars a year for Missouri schools. An additional 5 to 7 million dollars will be generated for higher education, early childhood development, veterans and other programs. AND Local government entities will receive between 18 and 19 million dollars annually. Spokesperson for YES on A, Scott Charton says every county in Missouri will receive millions of dollars for public school improvements.

"No Missouri resident will pay higher taxes and yet we'll receive this funding because of increased taxes casinos will pay . We think Proposition A then will have a lot of appeal to Missourians and they'll vote yes on it."

The 130 million dollar estimated return is based on the Missouri Gaming Commissions data that says Missouri loses 30 percent of its gambling patronage to those who leave the state because of Missouri's gambling laws. However, depending on who you talk to, that figure may be overestimated. David Knight is a local businessman. As part of a 250 million dollar development in Cape Girardeau he wants to build a casino on the riverfront there. Because of ballot measure Knight cannot build his casino. The Missouri Gaming Commission imposed a moratorium on new gaming licenses pending the outcome of the ballot measure. He and others involved in the development project have filed a law suit against the state auditor and secretary of state to overturn that decision. The suit is being heard in Cole County. Knight says Proposition A is misleading.

"The fact is true, yes, 30% of people go out of state to gamble at least one time in five years, but to make a projection on an annualized basis, for that to be accurate you'd have to divide that by five. So instead of a 30% increase in patronage you'd have a 6% increase in patronage."

Knight says the money grossed from the casinos may be even less than 6 percent. He says the reason why so many casinos support the measure is because it creates a monopoly for the current casinos because part of the ballot calls for no new casinos to be built. But Charton says not only will this help Missouri schools, it will also help Missouri's economy.

"The Kansas Gaming regulators own consultant says that state when it gets online with casinos will take about 174 million dollars out of Missouri's economy if we don't make some changes in our outdated casino regulations."

He says Missouri is the only state with these types of casino regulations. According to Charton the 500 dollar loss limit does not exist in any other state. He says Iowa was the only other state that had a loss limit law, but repealed it in 1994 in an effort to compete with Illinois. Charton says Iowa found that when it repealed the loss limit law it did not increase the number of problem gamblers in the state. But Knight says he's not so convinced. He says there is a reason for the 500 dollar loss limit.

"What is does is protects households or families from having a member of the family lose the family farm. That at 500 dollars you can only get hurt so bad and then you gotta quit."

But the Missouri Gaming Commission shows the average Missouri gambler loses 70 dollars or less. In other words the average gambler never approaches the 500 dollar limit. There is another major issue that Knight has a problem with. Proposition A would change Missouri's identification law when entering a casino. Right now, when people enter into a casino that individual is identified with a card that is swiped each time gambling chips are purchased. Knight says this rule exists because it keeps track of problem gamblers who enter the casino.

"There is a provision in Missouri law that habitual gamblers can be prohibited getting on a riverboat. Well, when you do away with the tracking system and the identification of that then that lets all of those problem gamblers on the riverboat."

The term riverboat gambling refers to a Missouri law that requires that casinos operate on the banks of the Mississippi and Missouri rivers. Charton says making people wait in line is a waste of time. He says the card allows the state to snoop and track everything a gambler does on the casino floor.

"We don't issue cards at Wal-Mart that allow the state to snoop into what you're doing or at McDonalds to track how much you're eating. It's only there because we're trying to tell the people how much they can spend of their own hard earned money."

Charton believes the ballot will pass on November 4th because Missourians want to invest in the state's education.
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