Just because Missouri can have 13 casinos doesn’t mean it must. Or so contends Missouri Gaming Commission Chairman Jim Mathewson, hinting that none of the four pending applications might be accepted. He asks, “If all we do is take a high percentage of business away from other casinos in the same area, well, then what’s the point?”
Good question. My own take is — and has been for some time — that when the state has but a finite number of licenses to bestow, it becomes responsible for the economic welfare of the industry. For instance, Iowa Gov. Chet Culver (D) wanted to flood his state with new casinos at a time when the existing ones are just treading water. Cramming the market with new gambling venues just because guvmint is greedy for licensing fees, say, is never a good way of thinking. Two of the casinos proposed in Missouri are in the greater St. Louis area, much afflicted with cannibalization right now and one is near Kansas City, which is also struggling. That would seem to point favorably in the direction of Cape Girardeau. But the hometown of Rush Limbaugh might yet vote gambling down on Election Day.
For obvious reasons, all four projects have relatively modest budgets. The costliest, a $350 million Spanish Lake casino, would cost about the same as the average Pennsylvania slot parlor but has opposition in local government. Which brings us to another point of regulatory umbrage. Basically, Mathewson doesn’t like the amount of investment being contemplated for any of the four projects … although, in this economy, it would be crazy to spend Lumiere Place-sized dollars. The four contenders break down as follows:
North St. Louis. Owner: Casino Celebration (owner of Casino Queen in East St. Louis, Ill.). Budget: $131 million. Slots: 1,400. Tables: 36. Special Features: possible hotel. Location: south of Chain of Rocks Bridge.
Spanish Lake.* Owner: North County Development. Budget: $350 million. Slots: 2,100. Tables: 60. Special Features: golf course. Location: north of Chain of Rocks Bridge.
Sugar Creek.* Owner: Paragon Gaming (aka Diana Bennett, daughter of late Sahara owner Bill Bennett). Budget: $107 million. Slots: 1,200. Tables: ? Special Features: none. Location: east of Kansas City.
Cape Girardeau (above). Owner: Isle of Capri Casinos. Budget: $125 million. Slots: 1,200. Tables: ? Special features: concert hall.
(* — this project has a tentative second phase involving additional investment. Of course, if the casino underperforms due to market saturation, it’s a moot point.)
Regulators might be reluctant to give yet another bite of the Missouri to Isle, already a major presence in the Show-Me State. However, Paragon is probably going to have to come up with something a little more impressive if it’s to emerge victorious.
I still think Pinnacle was nuts for giving up on their President license so easily.
“That would seem to point favorably in the direction of Cape Girardeau. But the hometown of Rush Limbaugh might yet vote gambling down on Election Day.”
Yeah, they don’t want any more sleaze added to their reputation.
I’ve been to Cape Girardeau and the place definately needs more sleeze.
I read last week that Isle of Capri Casinos is interested in buying a locals casino in Las Vegas. So maybe the Rio will finally be sold. If Isle of Capri Casinos can come up with $500 million dollars they can probably get the Rio.