Missouri Gaming Commission chooses Cape Girardeau for the 13th Casino

Casino Watch Focus reported that the citizens in Cape Girardeau voted to allow a new casino.  It was reported at that time that the Missouri Gaming Commission would likely approve the proposal, even though there were clear reasons reported why the MGC should not give the 13^th casino license to any company or city.  Now the St Louis Post Dispatch is reporting that the MGC decided to award The Isle of Capri the 13^th license in Cape Girardeau:

The Missouri Gaming Commission voted unanimously and without discussion to choose Cape Girardeau over proposals for St. Louis and for Sugar Creek, which is near Kansas City. A casino license became available this summer when the President Casino in downtown St. Louis went out of business. Missouri law since 2008 has capped the number of casino licenses at 13.

The commission’s decision Wednesday clears the way for a casino in Cape Girardeau, but a license is not awarded until a facility is ready to open. This is the first time regulators have mulled a new casino since the limit on casino licenses was enacted.

Opponents of that ballot measure expressed disappointment with the commission’s decision Wednesday. “My heart is absolutely broken. I cried this morning, but that’s over,” said Doug Austin, who lives in Cape Girardeau and helped to organize opposition to the casino.

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Why the MGC should not award a new casino license during its Dec 1 meeting

The Kansas City Star reported that the Missouri Gaming Commission met last week in a closed doors session to review the financial information regarding each proposal.  The next regular meeting takes place Dec 1^st, and its possible the MGC will make their decision during that time.  However, as reported by Casino Watch Focus, the MGC said they might not award a casino license at all, explaining that the law only sets the cap on licenses at 13, but requires no minimum number. Casino Watch Focus has outlined many reasons why a new casino would represent great danger to Missouri families, but an op-ed piece published in the South East Missourian explains that a new casino represents terrible consequences for those living in the region:

Public officials are often jubilant over the idea of casinos sapping every dollar they can from those same citizens whose welfare they are committed to protect. We saw it recently upon the license approval of the new “River City Casino” in St. Louis.  It was anticipated to produce $200 million a year … more than $500,000 a day … in gambling losses of the people to River City. Public official and the casino people — in an apparent “de facto” partnership celebrated together!

For years we have known from experience and from studies (such as in the St. Louis Law Journal, Winter, 1995, by Professor John Warren Kindt of the University of Illinois) that when gambling options increase in a region, so do the related problems: more compulsive gamblers, more crime, more thoughts of suicides by the inevitable numbers of area people who become addicted (with some actually committing suicides), more embezzlements, more corruption of public officials…  I could go on.

 

Adding a new casino in Cape Girardeau will expose an unimaginable amount of new families to gambling’s dangers.   Please read the entire article here and for more information on the dangers of gambling, please visit CASINO WATCH, & CASINO WATCH FOUNDATION

Cape Girardeau votes yes to allowing a new casino

Casino Watch Focus reported that the election in Cape Girardeau was being almost exclusively bought and paid for by Isle of Capri Casino.  So, its no surprise that when the SE Missourian reported the casino election results, they showed a clear win for the casino and potential loss for the families in southeast Missouri.  The vote was necessary but insufficient to guarantee a casino in Cape.  The Missouri Gaming Commission must still award the proposal to the Isle of Capri.  Considering the MGC has been positioning itself to accept a Cape proposal and has even gone as far to say they might not award a license at all if they didn’t find the location that would make the state a considerable amount of money, it’s very unlikely the Commission would reject a Cape casino.  Keep checking back to find out the fate of the state and our families.

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isle of capri attempts to buy the cape girardeau election by almost single handedly funding the pro-casino campaign

Casino Watch Focus reported that the Missouri Gaming Commission (MGC) will only consider three proposals for Missouri’s final casino license – one in Kansas City, one in St Louis, and one in Cape Girardeau should the vote to allow the casino pass.  It was also explained that the MGC favors the Cape location and they were positioning themselves to not give out the final license allowed by Missouri law should the vote in Cape not pass.  It’s clear that the battle for gambling expansion comes down to the this vote and its fair to say that the Isle of Capri casino agrees.  The South East Missourian reported they gave a sizable campaign contribution to the Yes for Gaming group in Cape:

Isle of Capri is gambling with house money, pouring $50,000 into the campaign coffers of the committee trying to convince Cape Girardeau voters to approve a $120 million casino in the Nov. 2 election.

Isle of Capri Casinos Inc. donated $50,000 to the campaign committee Yes for Gaming, according to a quarterly campaign report filed with the Missouri Ethics Commission. The only other donation to the committee was $4,000 from Jim Riley and David Knight’s Dream Big LLC. Riley and Knight are the Cape Girardeau businessmen who own property where the casino is proposed for North Main Street.

The Quality of Life group, which opposes the casino, has only received $5,000 in donations.  The SE Missouri explains that the group is not surprised by the amount given by Isle of Capri, but hopes their grass roots movement will be effected against this clear attempt at buying the election:

Doug Austin, who heads the opposition group, said he was not shocked about the amount that Isle of Capri donated. But he said it looks as if the company is trying to buy the election.

“It reeks to the high heavens,” Austin said. “Our money is coming from the citizens of Cape Girardeau, not the gambling industry. Fifty thousand dollars boggles my mind. It shows what kind of money they have available with money that they got from people losing in their casinos.”

Melvin Gateley, the treasurer for Quality of Life, said his organization is at a huge disadvantage when it comes to buying advertising, yard signs and fliers.

“I’m sorry to see it, but I knew it was coming,” Gateley said. “But we’re just going to be ourselves and keep doing our grassroots work and let people know what we think a casino would do to this community.”

Those in the community continue to speak out against the casino.  The newspaper is one of those grassroots means that the opposition has used to send its message.  In an editorial titled “Casino vote will have severe implications” published by the SE Missourian, Mark Anderson outlines many key issues ranging from family issues to business issues.  Please take some time to read the entire article here and if you are in the Cape Girardeau community, please seek out the Quality for Life group to help the grass roots movement and take a stand against yet another casino looking to buy an election.

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And Then There Were Three

Casino Watch Focus reported that four companies remained in the hunt for Missouri’s 13^th casino license and that the Missouri Gaming Commission was holding a meeting to hear a more in-depth proposal from each candidate.  Now the St Louis Business Journal is reporting that one of the four companies has now been eliminated from consideration following the meeting:

Missouri Gaming Commission Chairman Jim Mathewson told reporters that North County Development LLC was knocked out after not participating in Wednesday’s public hearings in Jefferson City.

Ed Griesedieck, a Herzog Crebs attorney who represents North County Development, said the group needed more time to raise money for the Riverview Casino project. He had sent a letter to the commission saying that, given the size and complexity of the proposal, significant additional funding and sophisticated operating and funding partnerships would be required. If the extension isn’t granted, “we will regretfully need to withdraw” at this time, he wrote.

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Missouri Gaming Commission to hear casino plans Oct 20th and decide by Thanksgiving

Casino Watch Focus has reported that the Missouri Gaming Commission favors Cape Girardeau as the next location for a new casino.  The Missouri Gaming Commission not only considers the location, but also the specific casino plan for those areas.  The South East Missourian is reporting that the Gaming Commission will meet soon and plan to decide by Thanksgiving:

Isle of Capri and city officials will try to convince the Missouri Gaming Commission that Cape Girardeau is the best choice for the state’s newest casino Oct. 20 at a hearing in Jefferson City.

After that, a decision between the four applicants — three if Cape Girardeau voters say no at the ballot box Nov. 2 — should come by Thanksgiving, said commission chairman Jim Mathewson.

The five-member commission will hear proposals from representatives of all four proposed casinos beginning at 9 a.m. at the Doubletree Hotel in Jefferson City. Mathewson said each presentation will last up to one hour. The order of the presentations will be determined by lottery, he said.

The Gaming Commission has said they will be looking for companies that are financially strong and will remain so for years to come.  They will also be factoring the state’s Department of Economic Development economic impact analysis which should be completed by the end of the month. Those against the casino in Cape hope it never gets that far.  The South East Missourian continues:

“I understand their process,” [Doug Austin, who is leading the opposition to a casino with his campaign committee Quality of Life in Cape Girardeau] said. “They’re gathering all their facts and data. But I’m hoping it never gets that far. Obviously, I’m against casinos, whatever facts and figures they present.” The group, Austin said, plans to put yard signs up in the next week, as well as launch anti-casino campaign ads on radio and newspapers.

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Missouri Gaming Commission may not award the 13th Casino License

Casino Watch Focus reported that after the September deadline for casino applications, only five proposals were turned in. Then,  The St Louis Post Dispatch reported that the Gaming Commission rejected one of the Sugar Creek application because it was incomplete leaving only four to be considered.  The clear consensus has been that the Missouri Gaming Commission is favoring Cape Girardeau.  There is a very real possibility that the city could vote against the casino leaving the Gaming Commission with only three applications. Now, the Columbia Missourian is reporting that the Gaming Commission is considering not awarding a company the 13^th license:

Who will get Missouri’s 13th casino license? Maybe no one, according to Missouri Gaming Commission chairman Jim Mathewson, who will be in Cape Girardeau on Monday to lead the public hearing at the River Campus at Southeast Missouri State University.

“Not doing one is an option,” said the former state senator from Sedalia. “The law says you can’t have more than 13, not that you have to have 13.”

While that scenario seems unlikely, Mathewson said he is awaiting a study being done by the Missouri Department of Economic Development.

The questions he wants answered before he votes include:

• What will the economic impact of a casino be?
• How much profit will a 13th casino take from the other 12?
• Would it work better in one part of the state or another?
• Exactly how much new revenue for the state would a 13th casino create?

“If our study comes out and says that we’re not really creating any new revenue, all we’re doing is stealing from Peter to pay Paul, what’s the point?” Mathewson said.

It seems even more apparent now that the vote in Cape Girardeau is the single most important factor in the expansion of gambling in Missouri.  It’s clear that the Commission is positioning itself to hold back the license and possibly reopen bids for next year in the event the Cape casino proposal is defeated.  A vote against gambling in Cape, could be a vote to help protect families all across the state.

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After September deadline, the Missouri Gaming Commission has five projects to consider for final casino license

The Missouri Gaming Commission (MGC) set a September 1^st deadline for applications for Missouri’s 13^th casino license.  Casino Watch Focus has reported that Cape Girardeau is the front runner, but with the issue up for vote in Cape, one of four other projects could be selected by the MGC.  The St Louis Post Dispatch has summarized those applicants being considered:

• Casino Celebration, a group led by the Koman family, which wants to build a $115 million casino in north St. Louis, just south of the Chain of Rocks Bridge. It has the support of the city of St. Louis, and last week struck a deal with Great Rivers Greenway. Jim Koman also co-owns the Casino Queen in East St. Louis.

• North County Development LLC, which has proposed a $350 casino and hotel complex in Spanish Lake in north St. Louis County. It could be the biggest casino on the table, but it has drawn strong opposition from local environmentalists. St. Louis County Executive Charlie Dooley has said he opposes the plan, which could be a major hurdle.

• Isle of Capri Corp., which would put a $125 million casino in downtown Cape Girardeau. The Creve Coeur-based company appears to be the largest casino operator applying in Missouri. Cape’s city council voted to endorse the plan last week, but city voters will decide in November if they want to allow a casino in the city. A no vote would likely doom the plan.

• Epic Gaming LLC, which is proposing a casino in Sugar Creek, east of Kansas City. Epic is a Las Vegas-based group of experienced casino executives, but no details of their plan in Sugar Creek have yet been made public.

• Sunway Gaming LLC, which is also proposing a Sugar Creek casino. The Kansas City-based group has worked on Indian casino projects around the country and earlier this year applied to build a casino in Iowa, according to the Iowa Racing and Gaming Commission. No information was available on their Sugar Creek proposal.

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UPDATE: St Louis down to one proposal to replace the President Casino

Casino Watch Focus has reported that the Missouri Gaming Commission is accepting bids to replace the now closed President Casino.  The Chain of Rocks area in North St Louis is one of several potential areas the Gaming Commission is considering to locate the state’s 13th casino.  The St Louis Post Dispatch is reporting that the number of interested companies in North St Louis has been drastically reduced:

In a letter to city officials and the Missouri Gaming Commission, the California-based LLC said it’s withdrawing its proposal to build $284 million casino and commercial complex just north of the Chain of Rocks Bridge in north St. Louis. No reason was given.

That leaves Casino Celebration, a proposal by members of the Koman family, as the only casino proposal on the table in the City of St. Louis. They laid out plans for a $115 million, 120,000 square foot casino on land just south of the Chain of Rocks.

In its letter, Plain Joe endorsed Koman’s plan. The group is still exploring a “mixed-use, destination-type development” (maybe a recreational harbor or water park) on the 70-acre site north of the bridge known as Pier St. Louis. And, they said, a casino down the street might help.

The City has a meeting planned in the upcoming days to determine if they will endorse the Koman bid.  An endorsement would be perceived positively by the Gaming Commission, which might help them accept the bid and keep gambling confined to a market already exposed to and saturated by a gambling culture. 

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Missouri Gaming Commission waiting for Cape Girardeau casino vote to award the 13th gambling license

Casino Watch Focus explained that with the closing of the President Casino in St Louis, Missouri families have found themselves in a situation where a new mega casino can be built anywhere along the Missouri or Mississippi Rivers.  Cape Girardeau is one of the most talked about locations for a new casino.  However, the city has a long standing vote on record which prevents the development of a casino in the area.  The Southeast Missourian reported that the Quality for Life group believes they have acquired enough petition signatures to put the issue to a new vote.

It was originally reported that the Missouri Gaming Commission would make a decision by September, thus eliminating the possibility of the new license being granted in Cape.  However, the Commission later stated that they would push the decision back to the end of the year.  It was believed at the time that the Commission didn’t want to close the door on Cape and new sources are confirming this speculation:

It appears likely that the Missouri Gaming Commission will not select a community to develop Missouri’s 13th casino until after Cape Girardeau voters render a verdict on gambling locally.

But exactly when the gaming commission will select an applicant to construct the state’s next casino is uncertain. The commission has only one scheduled meeting after Nov. 2, on Dec. 1, and at Cape Girardeau’s City Council special meeting on casino proposals last week, representatives of one applicant suggested that the selection won’t be made until 2011.

The Spokeswoman for the Gaming Commission said they are still planning to have a decision by the end of the year.  It seems like the fate of families in Cape Girardeau and the surrounding southeast will come down to authentication of the petition signatures and the vote that is likely to proceed. 

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The President Casino closes early due to flood waters, but key issues remain unresolved

Casino Watch Focus has reported that Pinnacle Entertainment made a deal to close the President Casino, which would leave the 13th casino license up for grabs.  The President was scheduled to close July 1, however, The St Louis Business Journal is reporting that the casino was forced to close early due to flooding:

It’s official: the President Casino aboard the Admiral riverboat along the Mississippi River has closed for good. The owner of the Laclede’s Landing casino, Las Vegas-based Pinnacle Entertainment, has planned to close the President this Tuesday after receiving pressure from gaming regulators about the property’s poor financial performance. But the casino was shut down June 17 due to floodwaters, and operators announced Thursday that they would not reopen it.

Even though the casino has closed, the Casino has still not reached an agreement with the company’s employees.  The St Louis Post Dispatch explained:

The other piece of unfinished business involves the President’s roughly 200 remaining employees. Pinnacle and the union that represents some of them are in talks about severance packages or job opportunities at the company’s other two local casinos. But no deal has been reached.

The workers are planning a rally outside the President on Monday, what they thought would be its last day. Now, they will be rallying outside a boat that is empty for good.

The other unresolved issue involves the fate of the Admiral riverboat.  The Post Dispatch continued:

Its engines have been gone since 1979 and it needed last-minute welding even to open as a casino 16 years ago. Pinnacle would have had to spend millions fixing the hull to pass an inspection due this summer.

Now, without the revenue generated by a casino operation, it is hard to envision how the boat might be preserved, said Jeff Mansell, executive director of the Landmarks Association of St. Louis, which named the Admiral to its “11 Most Endangered” list this year.

“You have to look at the expense, and it’s going to be tremendous,” he said. “It’s a unique resource. With it comes unique opportunities, but also unique problems.”

Mansell said he hasn’t heard of any proposals to buy and fix up the Admiral. A spokeswoman for Mayor Francis Slay said City Hall hasn’t heard much either. Pinnacle, which owns the boat, said it has a few preliminary meetings set up, but doesn’t know yet what it will do. “We’re still looking into it,” said spokesman Mack Bradley. “We obviously hope to have a decision soon.”

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Missouri Gaming Commission approves 24-hr gambling

The Missouri Gaming Commission recently approved 24-hr gambling in Missouri Casinos.  The move has been made possible by the closing of The President Casino.  KPLR St Louis explains:

Many of the state’s 13 casinos already stay open 24 hours a day on weekends and holidays but close for several hours each day during the week.

That’s partly a function of the number of state enforcement agents available for each casino.
But the President Casino in St. Louis going out of business next month. Officials with the Missouri Gaming Commission say that means there will be enough agents available for transfer to other casinos to allow for the extended hours.

Clarence Greeno is the commission’s assistant deputy director of enforcement. Greeno says every casino that asked to begin 24-hour operations on July 1 will be allowed to do so.

The move has already prompted Ameristar to begin a massive expansion.  The Kansas City Star explains:

Ameristar Kansas City Casino and Hotel has announced a $14 million hotel expansion that will include 100 more rooms and a fitness center. The expansion is to be completed in the fourth quarter of 2011. Ameristar extensively remodeled the hotel’s 184 rooms and lobby in mid-2006 and occupancy has been strong, the company said.

Ameristar expects that trend to continue since the Missouri Gaming Commission recently approved 24-hour gambling — scheduled to begin later this summer. The hotel addition will feature 80 deluxe rooms and 20 suites and connect into the hotel on each floor using the existing infrastructure.

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UPDATE: Missouri Gaming Commission expects to award casino license by Sept. 1st

Casino Watch Focus has been reporting on the new license situation and recently reported that as many as 15 different groups expressed interest in submitting proposals to the Missouri Gaming Commission for consideration.  Now the South Eastern Missourian is reporting more details of the process, including a goal of September to determine the new license holder:

Awarding the only available Missouri casino license will likely be a quick process that is over by Sept. 1, Missouri Gaming Commission executive director Gene McNary said Tuesday to a room full of companies and communities interested in the license.

In a meeting that lasted a little more than 50 minutes, McNary explained the process the commission will follow and said the first deadline will be for an economic analysis each prospective applicant must submit detailing what a casino would do for the community in any particular location. That economic analysis will be due July 15.

McNary then asked each prospective casino developer how long it would take to develop a full application. When Joe Arum of St. Louis Capital Partners LLC said it would take 90 to 120 days beyond the July 15 date, McNary said that was too much time.

Asked how long the commission would spend considering the applications once they’re received, McNary said he expects the license to be awarded by Sept. 1.

The Gaming Commission indicated that once local economic reports had been filed, they would be reviewed by the state.  The South Eastern Missourian continued:

The economic analysis questionnaire that each prospective casino developer must fill out will include information ranging from the expected investment in land and construction to the number of slot machines and gaming tables to the number of people who will be employed.

That information, McNary said, will be combined with economic analyses provided by existing casinos. It will then be turned over to the Missouri Department of Economic Development, which will analyze the reports and develop models for the effect on communities, employment and state revenue.

The considerations will include whether the casino will add to state revenue or steal customers from existing casinos. The economic analysis done by the Department of Economic Development will be a key factor in deciding that.

“We want to know what proposal would be in the best interest of Missouri, and that is the bottom line,” McNary said.

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15 Groups are interested in the final remaining Missouri gaming license

Casino Watch Focus reported that with The President Casino closing, its gaming license would be available for a new company or casino to operate along the Missouri or Mississippi rivers.  There are three key areas for possible development, the Sugar Creek area in Kansas City, the Chain of Rocks area in St Louis, and Gape Girardeau.  The St Louis Post dispatch is reporting that 15 deferent groups have expressed interest in obtaining the casino license and they range from real estate developers, gambling companies and local governments:

— St. Louis businessman Jim Koman, a part owner of the Casino Queen who through a separate company called Casino Celebration holds a site just south of the Chain of Rocks bridge, where he would put a $125 million riverboat casino.

— Attorney Brad Lakin, who leads North County Development LLC, which has won rezoning approval to put a casino complex on 350 acres south of the Columbia River Bottoms.

— Creve Coeur-based Isle of Capri Casinos, which didn’t specify a site and appears to be eyeing at least two. It was the only large casino company to raise its hand.

— West Alton Partners LLC, a group that tried unsuccessfully to put a riverboat in that small north St. Louis County town in 1996.

— Blue Sky Development, which owns a casino in Indiana and is interested in an unspecified site in the city of St. Louis.

— Three separate groups that are eying Cape Girardeau, including one led by Joe Uram, former chief financial officer of Argosy Gaming.

— Coastal Capital Management LLC, a New York-based casino developer run by Kenneth Shea, who led gambling operations for Carl Icahn’s Icahn Capital hedge fund.

— Ingenus Management, a Minnesota-based casino consultancy company, which is trying to win a license in Ottumwa, Iowa.

— The city of Sugar Creek, Mo., near Kansas City, which narrowly lost out on a new casino in 2008 when voters capped licenses at the current 13.

This is an early step in the process, but there is clear interest in each of the major Missouri area.  The Kansas City and St Louis markets would be best equipped to absorb the social and economic impacts of a new city over an area such as Cape Girardeau.  With the Missouri legislative session coming to an end, it seems highly unlikely that any legislation will be proposed to lower the number of casinos from 13 down to 12.

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Missouri Gaming Commission undergoes major personnel changes including the replacement of Gene McNary

Missouri Governor Jay Nixon named several new members to the Missouri Gaming Commission.  The Kansas City Star reported:

A former sheriff and a corporate executive have been appointed to the Missouri Gaming Commission. Gov. Jay Nixon on Tuesday appointed Barrett Hatches and Jack Merritt to the commission that regulates casinos and bingo halls.  Merritt is a Republican from the city of Republic. He retired from the Missouri  Highway Patrol in 1997 after a 27-year career and served as sheriff of Greene Countyfrom 2001 through 2008. Hatches is a Democrat from Kansas City who served as chief operating officer of Swope Community Enterprises from 2004 until this year. He also worked for Missouri Gas Energy. The appointments are subject to Senate confirmation.

Its was also reported that the current Gaming Commission director, Gene McNary, is resigning effective July 1^st. Rodger Stottlemeyre, a former Missouri Highway Patrol superintendent and the current Director of Enforcement for the Gaming Commission, was named as the new Executive Director.  McNary indicated that it was Gov. Nixon’s appointment of Hatches and Merritt that lead to his resignation.  The St Louis Business Journal reported:

“The day before yesterday’s commission meeting, the governor announced two new appointees to the commission. Gene clearly saw a changing of the guard,” said LeAnn McCarthy, a spokeswoman for the commission. “He is familiar with the term process and wanted to provide for a smooth transition. Roger is here and is Gene’s deputy. He knows the process and where we are at with the (soon-to-be-available gaming) license. The whole process was done in the best interest of commission and the state.”

The Gaming Commission will have control over which company is awarded the next casino license and where that license will be granted.  Given the fire McNary’s decision to revoke the President Casino’s gaming license has come under, some are speculating that St Louis Mayor Francis Slay and other legislators who wanted to limit the commission’s authority on the matter have succeeded on applying the pressure needed to see McNary out of office.  As the St Louis Post Dispatch reported, the Exceutive Director will play a major role in the location of the new casino:

McNary was poised to be a key player in the decision, which is expected to pit competing proposals from Cape Girardeau, the St. Louis region, Sugar Creek near Kansas City and possibly elsewhere in the state. The executive director leads the staff that will analyze casino proposals and has typically acted as the state’s voice on gambling issues. Now that job will fall to Stottlemyre.

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