Licensing process new to current Missouri Gaming Commission members

When the Missouri Gaming Commission meets Wednesday in Jefferson City, the five members will embark on something none of them has ever done -- considering license applications.

The last time the commission chose an applicant to build a casino was in September 2004, before any of the current members were appointed. And while two commissioners appointed by then-Gov. Matt Blunt in 2005 were a part of supervising the construction of both Lumiere Place in St. Louis and the newest casino, River City in Lemay, Mo., in south St. Louis County, the two newest commissioners will be attending their first meeting this week.

The commission chairman, former state senator Jim Mathewson of Sedalia, Mo., took his post in April 2009.

Voters in November 2008 approved a casino-sponsored initiative to limit the number of licenses available in the state. A license will become available July 1 for the first time since that vote when the President Casino, operated by Pinnacle Entertainment, closes because its certification as a passenger vessel from the U.S. Coast Guard will expire. That puts pressure on the commission to get another casino operating as quickly as possible, Mathewson said.

"We have a situation here that probably in my lifetime won't happen again," Mathewson said.

After commission executive director Gene McNary suggested Tuesday that an applicant could be chosen by Sept. 1, a statement was issued Thursday clarifying that the winning application would be chosen by the end of the year.

The commissioners want to be thorough and careful about how they handle the application process, Mathewson said in a telephone interview Friday.

"While that license is not being used, there is no income coming into the education fund," Mathewson said. "It behooves the commission to make an effort at least to have a casino operating as quickly as possible. But you can't shut off the discussion of allowing folks to put together a presentation."

When the commission meets, the members will discuss the timetable they want to follow as they consider applications. That discussion will be guided by information that was gathered by staff members Tuesday when they met community and casino development representatives.

"They will report to us, and at that point we will start evaluating when we can get true applications in and start setting some timelines," Mathewson said.

Cape Girardeau, Sugar Creek, Mo., Louisiana, Mo., St. Louis, Spanish Lake, Mo., and West Alton, Mo., have all expressed interest in winning the license. Some are further along than others in choosing a casino company as a community partner. Cape Girardeau will begin that process June 3 at a special city council meeting.

In the past, casino developers have taken from two and a half to four years from the time an application is approved to when the doors open, said LeAnn McCarthy, spokeswoman for the commission.

While many details of the selection process will be outlined Wednesday, some aspects are known. The commission wants to see an economic analysis from each potential developer by July 15. At some point after that, the applications will be due and the commission will pare the competitors down to a short list of viable proposals.

At that point, Mathewson said, he and the commission will visit each community in contention for a public hearing on whether that community is ready for and supportive of a casino operation.

Each aspect of a proposal will be considered in depth, whether it is the size of the investment, the ability to begin operations quickly or the potential for state revenue, among others, Mathewson said.

"Everything right now is on the table, and there is not one thing more important than another," he said.

rkeller@semissourian.com

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