For a decade the Missouri Gaming Commission has been reporting that data clearly shows that the US$500 gambling loss limit provision is costing the state millions of dollars in potential gaming tax revenue and is making Missouri riverboat casino operations less competitive than neighbouring operations in Illinois, Iowa and Mississippi. Once again, in its annual report to the General Assembly, the Commission is urging that Missouri legislators look closely at the impact of the loss limit rule.

The Commission suggests a 1% increase to the 18% gaming tax in exchange for the abolition of loss limit, and that problem gambling programmes should be reviewed in the light of changing laws. A similar loss limit law in Iowa was repealed in 1995 and the Commission states that it is the only jurisdiction in the world that imposes a limit on gambling customers.

In Illinois a proposed lowering of the top gaming tax rate of 50% is expected to increase capital investment there, as well as cause more aggressive marketing by Illinois casinos. According to the Commission’s report: “We can expect this activity to cut into gains made over the past few years by Missouri casinos on the eastern side of the state.” The Commission will have the opportunity to gain deeper insight into problems encountered by operators when it takes over the running of Casino Aztar until a buyer can be found.

In the fiscal year 2006 Missouri gaming revenue increased by 4% to US$1.57 billion. Win per patron was up 6.2% but the number of visitors to the state’s casinos declined by 2%. The Commission expects moderate growth to continue into FY2007 with new technologies and marketing trends benefiting casino revenues. Outside Missouri, gaming revenues rose 8.9% in FY2006 and visitor numbers rose 6.1%. Since 1995 casino tax receipts in Missouri have provided over US$2 billion for education and veterans’ programmes. (E-11.15.06)

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