When Iowa legalised riverboat gambling, it imposed a loss limit to prevent gamblers overspending. In 1994 when Missouri granted permits for riverboat casinos, it followed suit and limited gambling losses to US$500 during any two hour period. Once casinos opened in Illinois, Iowa quickly abandoned its loss-limit policies but they still remain in Missouri. This has put the casinos and the state at a revenue disadvantage, and it is acknowledged that the loss limit has had no affect on gambling addiction as pathological gamblers have a problem regardless of amount wagered.

The new Mississippi gaming laws are increasingly being seen by neighbouring state Louisiana as unfair competition. Following the destruction to the casino barges wrought by Hurricane Katrina last year, Mississippi has amended its law to allow casinos on land. It now also permits larger casinos to be built, whilst in Louisiana the gaming floor must be no more than 30,000 sq ft. except in the state’s only land-based casino Harrah’s New Orleans. It is anticipated that the Mississippi Gulf Coast will have as many as 18 casinos within 5 years.

Gaming revenue taxes are increasingly used by states to balance budgets. States with no casinos watch their residents spending money gambling across the border, others with limited gaming seek improved revenue by relaxing legislation. There must be very few days in the United States when gambling law is not discussed by legislators or challenged in the courts. Louisiana, which made over US$531 million in gaming tax revenue in 2005, and Missouri, which made nearly US$414 million, will be keen to remain winners in a gaming market that creates jobs as well as provides tax revenue. (E-09.08.06)

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