Gaming panel picks Cape Girardeau for state's 13th license

JEFFERSON CITY, Mo. -- After nearly two decades of planning, dreaming and plenty of politics, a casino in Cape Girardeau that was once considered a long shot is finally becoming a reality.

The Missouri Gaming Commission on Wednesday unanimously selected Cape Girardeau over its two big-city competitors to receive the state's final gambling license, which comes after four citywide elections, two interested casino companies and efforts that date back to the early 1990s.

The winning applicant, Isle of Capri, is now free to begin constructing its $125 million facility this summer near the city's downtown along North Main Street, providing 450 casino jobs, $20 million in state revenue and a downtown anchor that some say will lead to much-needed economic growth in a blighted part of town.

"We've been waiting for a long time for this," said Cape Girardeau businessman Jim Riley, who owns 10 acres where the casino will be built along North Main Street. "We had a lot of dreams, but dreams without an economic catalyst just don't happen."

The long wait no doubt was on the minds of the Cape Girardeau contingent that traveled to Jefferson City to hear the decision. After the unanimous decision, those from Cape Girardeau exchanged handshakes, hugs and even one awkward fist-bump.

"I am more than pleased," Mayor Harry Rediger told a throng of print and television reporters from across the state after the decision. "This is a game changer for our community. I believe we had the best offer to the state of Missouri."

The five-man commission agreed, each giving his vote to Cape Girardeau over its competitors, Casino Celebration in St. Louis and Paragon Gaming in Sugar Creek in suburban Kansas City. During the meeting, the commissioners made no comment about their decision, only for one to make a motion for Cape Girardeau and the rest to vote yes.

After the meeting, commission chairman Jim Mathewson told reporters that Isle of Capri was the best choice for the state.

"Isle of Capri proved themselves to be good corporate citizens," said Mathewson, a former state senator from Sedalia. "We know their record. Their headquarters is in Missouri. They had their community's support -- 61 percent of the folks in Cape Girardeau voted to have it there."

Missouri Gaming Commission chairman Jim Mathewson asks a question during a presentation by Isle of Capri executives Wednesday, Oct. 20, 2010 in Jefferson City, Mo. Commissioners Noel Shull, left, and Darryl Jones listen. (Fred Lynch)

Isle of Capri was the only of the three companies that already runs casinos in Missouri, with operations in Boonville, Caruthersville and Kansas City.

The strong opposition to a casino in St. Louis steered him away from that proposal, Mathewson said. Some in St. Louis worried about the environmental effects a casino would have on nearby areas.

"We just had stacks and stacks of opposition letters," Mathewson said. "But our biggest concern there was the market. ... Same situation in Sugar Creek."

The St. Louis and Kansas City areas already have four casinos each, and Mathewson agreed with last week's Missouri Department of Economic Development economic impact study, which suggested those markets are saturated and couldn't generate as much new revenue as a casino in Cape Girardeau.

When questioned about a proposed smoking ban in Cape Girardeau, Mathewson said he discounted it, even though it would create the only smoke-free casino in Missouri.

"Our biggest concern was with their financial data and that Isle of Capri would be able to finish the project," Mathewson said. "They said they can handle it, and I hope they can."

But the money was what won the day for Cape Girardeau, Mathewson said, referring to the $20 million in tax revenue the state predicts it will get from a Cape Girardeau casino.

"It was an opportunity to pick up another $20 million a year for the children," he said, referring to gambling tax revenue going to the state's educational system. "It was a company that we were already doing business with. But who wouldn't want to pick up $20 million?"

Isle executives, who also attended the meeting, said they were thrilled and eager to get to work. But Paul Keller, Isle's senior vice president and chief development officer, said he realized not everyone voted for the casino.

"Obviously, we're going to be good corporate citizens," he said.

Keller pointed to elections that are held in Iowa, where casinos must be voted on every eight years. Initially those voters pass casinos in the 50 percent range but after seeing their fears unwarranted, those vote tallies have climbed to the 70 percent and 80 percent range.

"Over time, there's a growing acceptance," he said.

Missouri is limited to 13 casino licenses under a ballot measure approved by voters in 2008. A license became available when the President Casino in St. Louis closed earlier this year.

smoyers@semissourian.com

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3417 Knipp Drive, Jefferson City, MO

Mayor Harry Rediger reacts (video from Missouri News Horizon)

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