Loss Limit Repeal Not Translating To Revenue For Missouri Casinos

The recession has been blamed for a lot of things in the US, and the casino industry is one that has been hit hard because of the current economy. In Missouri, they were hoping a new law would help offset some of economic troubles.

The state repealed a $500-in-two-hours loss limit at casinos in the hopes of generating much needed revenue for the education system. The projections had the repeal being the key to over $100 million in additional revenue, according to the Missouri Gaming Commission.

Now, the Commission has lowered that projection to only $30 million after factoring in what the economy has done to the casino industry. They insist that their original projections were correct, but that the recession changed everything.

"Those were pre-recession projections," said Executive Director of the Missouri Gaming Commission, Gene McNary, "We think that when the economy recovers, people will not only have more money in their pocket, they will also be less fearful of the future."

The repeal of the loss limits has increased revenue at the casinos. This year, revenue is up ten percent from last year. In some areas, such as St. Louis, casino revenue is up as much as twenty percent.

"We are one of the few states that aren't in the red," said McNary. he was referring to other states where casino revenue has been experiencing a sharp decline in revenue. The two biggest city's for casino gambling in the US, Las Vegas and Atlantic City, are both struggling to keep casinos from closing down.

April 28, 2009
Posted By Terry Goodwin
Staff Editor, CasinoGamblingWeb.com
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