The arguments over Missouri’s loss limit of US$500 for each period of two hours have been continuing for over a decade. Data shows that the state is losing millions of dollars in potential tax revenue by maintaining the loss limit, which makes the riverboat casinos less competitive than casinos in neighbouring states. Last November in its annual report the Missouri Gaming Commission once again urged legislators to reconsider the policy.

A similar loss limit law in Iowa was repealed in 1995 and yesterday a proposition was launched to remove the loss limit in Missouri and replace it with a 1% tax increase on gaming revenue. Senate Majority Leader Charlie Shields wants the money that would be generated by the change in legislation to be used for a scholarship programme open to all high school graduates.

In general the idea is welcomed by the casinos in Missouri but there is also concern over the draft bill, which would limit casino licences to thirteen. There is also the possibility that a 1% tax hike would cost casino operators more than having the loss limit. The incidence of problem gambling is unlikely to be affected by the proposed change, and there is no evidence to show that a loss limit works effectively in its prevention. (E-02.13.07)

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