Lower Casino Attendance Sounds Alarm in Missouri

Funding for veterans' homes and education have taken a hit in Missouri as visitors and tax revenue have declined. Officials blame the especially harsh winter, the economic downturn and competition from neighboring states. State Budget Director Linda Luebbering (l.) blames competition from neighboring states.

Fewer people are visiting Missouri’s 13 casinos, resulting in lower funds for public schools and state-run veterans’ nursing homes. Lawmakers aren’t sure if the decline in casino attendance is due to the harsh winter, poor economy and competition from neighboring states—or, more alarmingly, if lower attendance is the new norm.

The Missouri Gaming Commission recently reported patronage at casinos dropped 9 percent through the first seven months of the state’s 2014 fiscal year compared with the same period in 2013; this decline affects funding for veterans’ homes. The commission’s report also indicated casino tax revenue decreased 4.7 percent from the same time last year; this figure affects funding for schools. From the start of the fiscal year on July 1 through the end of January, the state had received $26 million from casino admissions fees and $180 million for education funding, the Gaming Commission report showed.

State Rep. Rick Stream, chairman of the House Budget Committee, said, “We do have a problem in the veterans funding that has kind of gotten away from us. We are going to have to address it for this year’s budget.”

Added Daniel Bell, Missouri Veterans’ Commission spokesman, “If more people gamble then the odds are the funds will increase.” Part of the fees casinos pay per visitor help fund the Missouri Veterans Commission, which oversees seven nursing homes for 1,350 retired service members.

Stream said the House was considering raising more revenue for veterans’ home funding, but Governor Jay Nixon’s budget did not include that. However, the House has passed legislation to create a special lottery ticket with the proceeds exclusively going to veterans’ homes. Currently, lottery proceeds exclusively fund K education. Legislators voted in 2012 to direct a larger share of the casino fees to the homes over concern about long-term funding.

Regarding education funding, derived from the state tax on casino revenues, the House recently approved adding $22 million for public schools in a supplemental budget for the current fiscal year.

Missouri Gaming Association Director Mike Winter said the especially hard winter took a toll on casino visitation. “We continue to see that the economy bounce-back is not as quick as experts predicted,” he said.

State Budget Director Linda Luebbering said increased competition from other states plus changes in ownership of Missouri casinos also added to the casino revenue drop. She noted a Hollywood Casino opened in 2012 at the Kansas Speedway in Kansas City, Kansas and last year, Pinnacle Entertainment sold its downtown St. Louis casino.