LOSS LIMIT IS INTRUSIVE, UNNECESSARY

CARUTHERSVILLE, Mo. -- Missouri's $500 loss limit at casinos is designed to protect people who might lose more money than they can afford. It is also intended to act as a safeguard to minimize the danger to compulsive gamblers. Unfortunately, the loss limit does neither.

Instead, the loss-limit restrictions are intrusive and unnecessary and drive many Missourians to gamble in neighboring states that do not have loss limits. As a result, Missouri taxpayers are losing at least $30 million to $50 million a year in tax revenue to other states. This loss comes during a projected $300 million state budget shortfall, which Gov. Bob Holden calls the most significant in generations.

For seven years the Missouri Gaming Commission, the regulatory body that oversees casinos, has stated that the $500 loss limit harms the competitiveness of Missouri's gaming industry. The commission argues that it is a nightmare to enforce and results in a loss of revenue for the state by sending tourists and Missouri gaming customers to other states. For example, Casino Aztar in Caruthersville competes with operations in Metropolis, Ill., and Tunica, Miss. Those jurisdictions do not have loss limits.

According to consumer surveys, the vast majority of Missouri casino guests enjoy gaming as a form of entertainment and gamble sensibly, setting a budget of less than $50 per visit. Official state reports find that the actual win-per-patron is $40.53. These numbers are tracked and audited on a monthly basis by the gaming commission. Missouri casinos can also demonstrate that only about 1 percent of casino patrons ever approach their $500 loss limit.

We realize, however, there are those who are at risk. The intrusive $500 loss limit does not address the real problem of the disordered gambler. For those individuals, the gaming industry is part of an unprecedented partnership between private and public institutions with the common goal of directly assisting the problem gambler.

The Missouri Riverboat Gaming Association organized the Responsible Gaming Program in 1995 because the industry recognized that it was important to address the issues associated with the problem gambler. Each year, association members spend about $1 million on responsible gaming efforts for compulsive gamblers, underage gamblers and programs to encourage moderate use of alcohol while gambling.

The gaming industry continues to fund a free help line and awareness program for individuals who have a problem, and the Responsible Gaming Program continues to serve as the model for similar programs in other gaming jurisdictions. In addition, the gaming industry successfully supported legislation in the General Assembly to use a portion of the money from casino admission fees to give compulsive gamblers access to a free treatment program administered by the Missouri Division of Alcohol and Drug Abuse.

Keeping the $500 loss limit will not help the problem gambler. It does not stop people from gambling and may give friends and family a false sense of security by making us believe they can only lose $500 at a time. Those wishing to wager more than $500 can evade detection either by pocketing chips won in one session or by using another patron's boarding pass. The easiest way to circumvent the loss limit is to take gaming dollars from Missouri to Illinois or Mississippi where casinos have no loss limits.

Missouri remains the only gaming jurisdiction in the nation with a loss limit. There is no evidence that keeping the $500 loss limit will deter problem gambling. But we do know that removing it will increase state revenue by at least $30 million to $50 million for education.

George Stadler is vice president and general manager of Casino Aztar.