“After determining a new owner may not be licensed before a November 19th deadline, the Missouri Gaming Commission is taking steps to ensure the Casino Aztar in Caruthersville will continue to operate without a lapse.” This is how the Missouri Gaming Commission yesterday announced to the press its unanimous decision, one that could lead to an almost unprecedented seizure of a casino.

The decision has been made in order to protect jobs and tax income that could be lost if owners of the riverboat close the operation as threatened. The casino employs 283 people and contributes over US$6 million in taxes and fees each year to the state. Executive Director Gene McNary commented, “All levels of government are taking an interest into this matter. The Governor’s office is also concerned about saving local jobs, and economic stability.”

Aztar Riverboat Holding Company LLC presently owns and operates Casino Aztar. Earlier this year the Pheonix-based Aztar Corp agreed to be acquired by Kentucky-based Columbia Sussex for US$2.01 billion. However, Missouri Gaming Commission for an undisclosed reason failed to grant Columbia a gaming licence the previous year, causing the company to withdraw both its application and its bid to buy the bankrupt President Casino in St Louis. The sale of Aztar to Columbia has a 19 November deadline.

In August Aztar agreed to sell the Missouri riverboat to the new gaming company Fortunes Entertainment LLC, a group formed by ex-Argosy Casino executives following the sale of Argosy to Penn National Gaming. The Missouri Gaming Commission has decided it cannot complete its pre-licensing investigations before the November deadline; thereby initiating a move to take control of the riverboat after Aztar informed them of the likely closure of the casino if the deadline were to be missed.

The Missouri Gaming Commission is basing its casino seizure proposal on state law decreeing that such takeovers are permissible in ‘extraordinary circumstances.’ The Commission believes that Aztar could remove the boat and assets from Missouri and it wishes to keep the operation running until it approves a new owner. Aztar so far has not commented on the Commission’s decision.

According to the Kansas City Star, Director for the Study of Gambling and Commercial Gaming at the University of Nevada-Reno, William R Eadington, says that about the only precedent to state seizure of a casino was years ago in Nevada, where action was taken to stop organized crime. Professor Eadington is of the opinion that difficulties over administration would arise if the state were to operate the casino for any length of time. (E-10.26.06)

© Copyright 2006 CasinoCompendium



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