Proposition A would boost gambling tax, repeal loss limits, cap casinos

By Joel Walsh

Approval of Proposition A would change several provisions of Missouri law that govern gambling in casinos.

First, it would repeal the existing loss limit that prohibits individuals from losing more than $500 during any two-hour stint at a casino. It also would prevent the legislature from reimposing loss limits in the future.

Second, it would require that casino patrons present IDs only if they are necessary to establish that they are at least 21.

Third, it would cap the number of casinos at those already built or being built.

Fourth, it would increase the state tax on casino revenue from 20 percent to 21 percent.

Fifth, it would create a new education fund from gambling tax proceeds generated as a result of this measure called the "Schools First Elementary and Secondary Education Improvement Fund." It also would require annual audits of the new fund.

Proponents of Proposition A argue that it's necessary to make Missouri casinos competitive with those in bordering states. They also note that Missouri is the only state in the country with casino loss limits.

Opponents, however, say that repealing loss limits could be problematic for gambling addicts and that it is unfair business practice to prohibit the construction of new casinos.

The official estimate for the ballot issue says the state would gain between $110 million and $137 million in new revenue, with most of the money going to primary and secondary education.

Rep. Ray Salva, D-Jackson County, and David Knight, a southeast Missouri businessman, have sued the offices of the secretary of state and state auditor on the grounds that the ballot issue contains multiple subjects, violating the Missouri Constitution. They argue the ballot measure is inappropriate because a person who wants to repeal loss limits might dislike higher gambling taxes or a cap on casino numbers.

Click here for previous coverage of this issue.