Missouri Governor Jay Nixon allowed to become law without his signature Senate Bill 741 which allows the state’s casinos to loan gamblers at least ,000. The law will take effect August 28.
Ed Grewach, general counsel for the Missouri Gaming Commission, explained, “What the bill does is it allows casinos to extend credit to individuals. To do that they first must run a credit check on the patron who is applying for that credit, they have to use what the statute calls the usual standards of credit worthiness to determine if the patron qualifies for the line of credit of at least $10,000.” He added, “It has to be by statute a zero percent loan and it has to be due within 30 days the loan has been taken out.” Also under the law, potential applicants who appear visibly intoxicated would be denied credit.
The bill was crafted in response to the state casino industry’s request to be able to attract higher-value players credit at high-end tables, as most players prefer to not carry large amounts of cash. The state still remains a slots market, as figures over the last 12 months indicate about 90 percent of play is from slot machines.
Several problem-gambling workers are concerned about the new law. At Community Counseling Center in Cape Girardeau, therapist Rick Strait said, “Some of the clients I work with, I see this putting them at a greater risk for depression and anxiety, and I think it’s going to have a very negative impact on those addicted.” He noted, if a player who receives a long can’t pay it back in the required 30 days, “the anxiety and desperation it may cause, it may cause somebody to have suicidal thoughts. I don’t know the consequences of not paying it, is it going to be collections or is this going to put their house or bank account in jeopardy as well?”
Meanwhile, Missouri revenues may be stabilizing. Analysts said following a rough winter that affected Missouri casino revenues through March, the industry may be stabilizing at last. Regions of the state that do not have to deal with new in-state or out-of-state competition are holding their own.
Double-digit sequential declines throughout Missouri reflected seasonal trends. However the year-to-year drop of 3.5 percent statewide is lower than more recent numbers. The state posted flat revenue growth from June 2013 to June 2014 after eight consecutive months of year-to-year revenue drops. The current quarter showed modest sequential improvement with 2.2 percent growth quarter-to-quarter, according to Missouri Gaming Commission figures.
Isle of Capri Casinos, which owns four properties in Missouri, was down 3.9 percent in June to $19.5 million, identical to its May rate. ) Isle’s greater declines at their Kansas City properties were offset by Cape Girardeau’s flat numbers, down 0.9 percent year-to-year to $4.5 million. Another multiple property operation in Missouri, Pinnacle Gaming, which owns Ameristar St. Charles, Ameristar Kansas City and River City, collectively posted a decrease of 3.1 percent to $65.6 million from June 2013, and a decrease of 9.3 million from May to June. Caesars Entertainment’s Maryland Heights property was down 4.0 percent to $13.6 million, and Penn National’s property was down 3.9 percent to $32.5 million.
