Category Archives: gambling

The Mugging of Missouri—Preview (and a correction**)

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The Missouri Gaming Commission has released its report for Fiscal Year 2023-2024. Your careful observer will be spending a few days updating his statistical tables while at the same time researching material for a speech at the Missouri River Regional Library on October 8th that will celebrate the 250th anniversary of the document that created this nation (no, it wasn’t the Declaration of Independence but I will be referring to two words in the Declaration as well as some words spoken in Washington four score and seven years later).

But when we return to the topic, we will show you why Amendment 2 not only represents a mugging of our public education system, but how it also deepens the decades of the casino industry’s mugging of our veterans nursing home program and their own host cities.

***We have corrected a paragraph in our previous post on Amendment 2 in which we addressed Highway Patrol security at casinos and said the casinos do not reimburse the gaming commission for those expenses.  We have corrected that paragraph to read:

The Highway Patrol provides security officers at our casinos. In the original version of this post, we reported the casinos do not reimburse the state for the costs of that security. We were incorrect. The annual report for FY2023-24, which became available to us after the original publication of this review, shows the casinos reimbursed the gaming commission $15.4 million for enforcement, a category that not only includes watching out for unlawful activity on the gaming floor but also includes investigations of those seeking various licenses connected to casino gambling.

We will continue to review our posts on this subject. It is not our intent to mislead our readers as we cast a critical eye at the claims of the industry and its allied professional sports teams.

Feel free to circulate these observations to friends, education groups, local newspapers, veterans groups, and your state legislators and/or candidates.  And don’t be afraid to react in the box at the end of our entries. We enjoy hearing from our participants in these public dialogues.

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Winning for Education is a Loser for Education—(updated to include corrected information regarding enforcement of gaming laws)

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—and for everybody but our casinos and our pro sports teams.

After watching an wholesome young woman, who describes herself in a commercial as a mother and a former teacher, tell me that approval of Amendment 2 in November (Sports Wagering) will mean millions of dollars for our public schools, I stopped by the State Auditor’s office to get some information that would tell me if the commercial is true.

I wanted the truth because my experience is that the casino industry and the sports teams pushing to legalize sports wagering have not been shooting straight for years with the legislature and now they are not shooting straight with us, the voters.

When a court ruling recently allowed the amendment to be on the November ballot, spokesman Jack Cardetti with Winning for Education, the misleadingly named organization campaigning for voter approval, proclaimed the decision a “big victory” that will “provide tens of millions in permanent, dedicated funding each year for our public schools.”  And he sounded the long-spoken mantra of the movement that approval would end Missourians going to other states for sports betting “which deprives our Missouri public schools of much-needed funding. A vote for Amendment 2 will bring those dollars back to Missouri classrooms.”

The fiscal note, as the document is called, tells a far different story about Amendment 2, the way it is written and the situations it creates. And it suggests the claim that approval would provide “tens of millions in permanent dedicated funding” for education is much less than fully true.

Your faithful observer has opposed the sports wagering bills in the legislature for several years, not because he opposes casinos (that issue was settled in 1992) or sports wagering. I have no use for them, but I have friends who lose as much money in an evening at a casino as I will spend treating Nancy to dinner and a movie or something like that. I leave the moral judgments on these issues to others. I am opposed, however, to casino and sports teams masquerading their multi-million dollar money-grabs as great benefits to the state, particularly to education which the fiscal note states clearly is not the case.

Those two industries will write as many checks as they need to, to sell the idea that sports wagering will make the state financially better off.   Far from it, as I hope you will learn today as we review the fiscal note for Amendment 2.

Let us start with something not in the fiscal note. Casinos will pay a 10% tax on revenues from sports wagering if Amendment 2 passes. Revenues from the two forms of gambling we have now—slots and table games—are taxed at 21%. The amendment, therefore, proposes an AVERAGE tax rate for all forms of gambling of 15.5%.

That’s right. Vote for Amendment 2 and you are voting to give the $1.9 Billion casino industry that plans to grow by hundreds of millions more an overall 25% tax cut. We will return to this issue later.

The Auditor, in assembling the fiscal note, asked a long list of state agencies to determine if the proposal has a monetary impact on them, positive or negative. Most say it won’t affect them but the Department of Revenue, which collects taxes from you, me, sports teams, and casinos, concludes after a lengthy division-by-division assessment:

“The Department of Revenue assumes this IP will not generate any revenue to the state.”

(“IP” refers to the initiative petition.) Then, the fiscal note details why it won’t.

Although the teams and the casinos will claim great financial benefits for the state, the department points out that Amendment 2 does not give the Revenue Department any power to COLLECT any taxes or fees. While the Gaming Commission is authorized to issue licenses for mobile betting companies, it is not authorized to COLLECT any of those fees. “It appears these retail license fees will not generate any revenue to the state, the Commission, or to the Compulsive Gaming Prevention Fund,” says the assessment of licensing fees, a phrasing used two other times on two other issues.

While the proposed amendment sets a ten percent tax on sports wagering revenues, says the fiscal note, it does not require casinos to pay it. “Without the identification of an agency to collect the tax, no tax can be collected,” says the study.

The Highway Patrol provides security officers at our casinos. In the original version of this post, we reported the casinos do not reimburse the state for the costs of that security. We were incorrect. The annual report for FY2023-24, which became available to us after the original publication of this review, shows the casinos reimbursed the gaming commission $15.4 million for enforcement, a category that not only includes watching out for unlawful activity on the gaming floor but also includes investigations of those seeking various licenses connected to casino gambling.

The department estimates initial costs of additional staff will be more than $1.6 million with ongoing costs of more than $1.2 million, with those moneys paid out of the state gaming fund, again, lowering the amount available to education. However, as noted by the Revenue Department, there is no power for the department to collect those funds from the casinos.

The Missouri Gaming Commission, which told me earlier this year was short 23 people already and is stretched thin just keeping up with contemporary responsibilities, estimates it will need to hire fifteen new people just to regulate sports wagering. The total cost of their salaries, benefits, and expenses is put at almost four million dollars a year and increasing in future years with salary and benefits increases.

Now, let’s do some simple math. The gaming commission estimates it will collect $11.75 million in licensing fees in the first year. Licenses last five years so there would be little or no revenue for the next three years until renewals would produce a new revenue stream.  After the commission takes out its costs, the amendment requires ten percent of the revenues or five-million dollars a year go into the Compulsive Gambling Prevention Fund.

Here’s some more simple math:  The Gaming Commission estimates casino taxable revenues, before any deductions, could total $1,044,684,610.20 in the first five years. That’s Billion.

At ten percent, the state could receive $104,468,461.02 during that time.  If that amount were taxed at the same rate Missouri taxes slot machine and table game revenues (21%), the state would realize $219,383,768.14 before casino deductions allowed in the amendment.

So Cardetti is correct.  Education will get tens of millions of dollars—-$104.5 million in the first five years.   But our schools would receive $219.3 million if sports wagering was taxed at the same rate charged slot machines and table games. To bring this down to a more easily-grasped situation:  If someone were to offer to give you $10,500 if you gave them $21,900, would you take that deal? Supporters of Amendment 2 hope you will.

There is no reason Missourians should accept a ten percent tax on sports wagering. Fourteen states have gaming taxes of more than the proposed ten percent including neighboring states of  Illinois (20-40), Arkansas (13-20), and Nebraska (20). Three states tax sports wagering at 50-51% (Delaware, New Hampshire, and Rhode Island). Pickswise.com says the national average is 19%.

While the commission calculates the $104.5 million in taxes that the state might get in the next five years “may be sufficient to cover the Missouri Gaming commission costs to license and regulate sports wagering,” there is a major caveat.  The calculations “are uncertain based on the inclusion of a deduction for ‘any federal tax’ with no corresponding definition or explanation as to what that would include.”  Such a deduction, and others allowed in the proposal, can significantly cut revenues to the state.

Long story short: “There is concern that the licensing fees will not cover the expenses of the Missouri Gaming Commission…during the years in which licensing fees and renewals are not collected (i.e. years two, three, and four,” says the Revenue Department. On top of that is the failure of the proposal to state where those fees would be deposited.  Also not clear is how that money will be disbursed if and when it is collected and deposited.

The Commission now has no limits on fines for sports wagering operators for violations of the laws and rules.  The proposed amendment limits those penalties. Bad idea, says the commission.  Casinos, of course, think it’s just swell.

And getting back to that $104.5 million for education. The proposition says tax revenue will go to elementary and secondary education only after the Commission takes out its “reasonable expenses” plus another five-million dollars for the gambler’s fund. In years when little or no renewal or licensing fees are collected, the MGC will have to dip into the tax funds that would otherwise go to the schools to pay its bills and to put that five-million dollars aside for the problem gamblers fund—which the gaming commission would oversee, although it thinks the Department of Mental Health would do a better job. So, in years two, three, and four, the tens of millions for education will be reduced by some, or several, tens.

Now, here is the capper.

All of these calculations of state revenues are completely uncertain—

—because this proposition, for the first time, allows casinos to deduct a lot of money from the revenues that are taxed.  So in addition to a sports wagering tax rate that is less than half the rate on other forms of gambling and creates a 25% cut in the overall gambling tax rate, the casinos want voters to approve a system that lessens the amount that can be taxed and, in fact, will allow casinos to pay NO tax, perhaps for months at a time.

If you want to know what that could mean, says the Gaming Commission, look at Kansas.

In February 2023, Kansans wagered more than $194 million in sports bets. The state, however, received $1,134 in state tax revenue due to language permitting operators to deduct free play or promotional credits before assessing their state taxes.  Some operators had not paid any state taxes through the first quarter of 2023 due to the deductions they were permitted to claim.

February, folks.  That’s Super Bowl month when a lot of Missourians (according to the casino industry) went to Kansas to bet.  And the state of Kansas—with provisions similar to those the casinos want to enact in Missouri—was paid only $1,134 dollars in taxes on $194 million in bets.

It could happen here because the proposed amendment allows a casino whose accountants calculate losses for one month to carry over the loss to the next month’s calculations, leading the Commission to conclude, “The totality of the deductions…will result in sports wagering licensees showing negative adjusted gross revenues and therefore paying no sports wagering tax…The carryover provisions…would further impact the ability of the Commission to meet its reasonable expenses and further impact or eliminate contributions to the Compulsive Gambling Fund and education in the state of Missouri.”

Read that again—Provisions of this proposed amendment might NOT put millions into our education system at all.  Instead, they could “impact or eliminate” contributions to our schools.

So—the basic question for the people of Missouri is this: Who is being honest with you?  Is it the Department of Revenue and the Missouri Gaming Commission, or is it an industry that flourishes because its games are guaranteed to take all of your money sooner or later?

And the casinos want to keep it all. The records show that the gaming industry will not leave a penny behind in Missouri that the people and the state do not force it by law—not written by the gaming industry—to leave.

The proposition that the attractive mother and former school teacher wants you to think will be wonderful for our schools is a shell game without a pea.

And believe it or not, this is only part of the story.  There is more.  And it’s equally bad, if not worse—especially if you are a veteran and if your city has a casino in it.

We’ll get to that later.

If you want to read the entire fiscal note, ask the State Auditor’s office to send you fiscal note 24-160.

Some of you might be much more sophisticated mathematicians than I am.  Please let me know if there are unwarranted or even plain erroneous assumptions in any of the statistics quoted here. I would note, however, that they are based on the State Auditor’s fiscal note for Amendment 2. If necessary, corrections will be made in this entry and a future entry will ask readers to go back and note the corrections.

Sports:  Wanna bet?  Polling on Sports Wagering, moving KC Teams to Kansas.  And Other Sports Stuff

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By Bob Priddy, Missourinet Contributing Editor

(GAMBLING)—Sports wagering hasn’t been approved for the ballot yet, but Missourians appear narrowly willing to allow it if it’s on the November ballot.

A poll of more than 1800 Missourians earlier this month by Emerson College, The Hill, and Nextstar Media, shows 38.3% of prospective voters want it while 35.4% of prospective voters oppose it. That leaves more than 26% undecided.

Emerson College (in Massachusetts) Senior Polling Director Matt Taglia says, “I don’t think folks necessarily know what all it entails but a lot of them are, in principle, supportive of the idea.”

An organization supporting sports wagering—the misleadingly named Winning for Missouri Education (actually, approval of the proposal as submitted will make Missouri school losers) has submitted more than 300,000 petition signatures to put the issue on the November ballot. The Secretary of State’s office and county clerks throughout Missouri are verifying the signatures.

(CHIEFS/ROYALS; STAY OR GO?)—The same poll shows 46% of respondents think it is “very important” to keep the Kansas City Chiefs from being lured to Kansas. Another 17% say it is “somewhat important.” Twenty-two percent would not miss the Chiefs in Missouri.

Support for the Royals is a little softer. Thirty-eight percent say it’s “very important;” twenty percent say it’s “somewhat.”  Two dozen percent of the respondents say they would be bothered at all if the Royals move across the state line.

(CARDINALS)—The St. Louis Cardinals have finally staggered two games above .500 thanks to their weekend sweep  and the news got even better yesterday with the reactivation of catcher Wilson Contreras from the DL several says earlier than expected. He’s been out since May 7 because of a broken arm. He’s been on a minor league rehab assignment since June 18, going 3 for 21 at Memphis.

His activation has meant a trip back to Memphis for backup catcher Nick Raposo.

Before his injury, Contreras had a half dozen homers, a dozen RBIs and a .280 average through the team’s first 31 games. He will rejoin a team that is playing far better than it was before he was hurt.  The Redbirds are eleven games over .500 in his absence, the best record in the National League since May 12 at 24-13.

He returns while Nolan Arenado spent his second straight game on the bench. He came out of Saturday’s game with a sore left forearm. He’s gotten an injection for the pain.

Noot News:  Lars Nootbar is getting close to a rehab assignment. He’s been out since early may with a left oblique strain.

(ROYALS)—The Royals have cooled off in June but remain five games above break even. Their performance since winning eight straight and soaring to 15 games over .500 to going 8-18 since has some fans wonder if the team has turned the wrong corner as the season nears the halfway point.

Former Missouri Tiger Max Scherzer, making his first start of the year for the Texas Rangers, shut down the Royals Sunday, as the Royals were swept in a series for the first time this year.

The sagging performance has left KC nine games behind the Cleveland Guardians and worse, a game behind Boston in the wild card standings.

They got some offensive punch back yesterday with the reactivation of Michael Massey from the ten-day DL. Back problems have limited him to just 29 games this year. His back problems have been treated with recent injections to relieve the pain.

And now, some wheels:

(INDYCAR)—Nobody knows his way around Laguna Seca tese days better than Alex Palou.  In his last four races on the California road course, he has had finishes of  1-3=1=2, picking up his second win of the year and moving into the IndyCar points lead.

He finished about two seconds ahead of Colton Herta in what he called “a chaotic race” that relied on a tire strategy that was “a bit risky for the position we were in.”

Former Indianapolis 500 winner Alexander Rossi was fourth, giving his Juncos Hollinger Racing team its best finish ever in the series.

The win gives Palou a 25-point lead over Will Power. Scott Dixon is running third.

(NASCAR)—The track was damp and another rain storm was threatening and NASCAR decided to finish the weekend race at New Hampshire with cars using rain tires. Christopher Bell and other competitors had to sit out a two-hour rain and lightning delay before re-starting on a damp surface.  Although parts of the track were dry at the end, enough other segments remained damp that NASCAR decreed no car would switch to slicks.

Bell led almost half of the laps to become the fourth driver to have at least three wins this year.

 

The race was only the second one on series history to use the new kind of tires. NASCAR Senior VP for Competition, Elton Sawyer, praised the development of the tire. “We’d have been done with 82 laps to go and instead it gave us a chance to get back to green,” he said.

(NHRA)—We don’t usually comment on the folks who seek 300 mph in less than a quarter mile but John Force’s engine explosion and crash in Virginia during the weekend.  Force is 75 years old but still competing at the highest levels of National Hot Rod Association competition.

His engine blew up as his car crossed the finish line, crashed into the wall and came to rest in the middle of the track.  He was conscious when the safety crew got to him but was taken to a nearby hospital where he was admitted to the Intensive Care Unit. Daughter Brittany told reporters later, “My dad’s going to be all right…He’s one of the toughest people I know.”

(FORMULA 1)—The Spanish Grand Prix went to Max Verstappen with Lando Norris and Lewis Hamilton taking the other podium positions.

F1 has unveiled specifications for its 2026 cars:

It says the new cars will be “more agile” because of a weight reduction, will increase use of batteries and the use of sustainable fuels. Aerodynamics will become more active with moveable front and rear wing.  F1 will have six engine manufacturers—compared to three for NASCAR and two for IndyCar.

(Photo credits: Rick Gevers,  Bob Priddy, F1)

The Jontay Thing

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Just as Monday’s entry was being written came news of the tragedy of Jontay Porter, the Columbia kid, ex-MU Tiger, fringe NBA player who is the first person permanently banned from the NBA since Jack Molinas was banned 71 years ago for betting on games he played with the Fort Wayne (now Detroit) Pistons.

The Porter case is of special interest not only because of his Missouri roots but also because Missourians might be deciding whether sports betting should be legalized in our state—and what that might mean to the confidence we have in our big-time sports teams and their games.

Alex Kirschner, writing for Slate.com says Porter “did things worse than anything Pete Rose ever got up to.”

Jeff Zilgitt of USA TODAY was equally unforgiving when he wrote, “In all of Jontay Porter’s idiocy, he provided a service to other professional athletes who might consider placing bets on games in which they are direct participants or in which they have insider knowledge to provide to gamblers. It’s almost impossible to pull it off in a world of legal, regulated and monitored gambling. It’s even more impossible when you’re as blatant as the NBA says Porter was.”

Kirschner  notes that sports leagues “make a lot of money off of people betting on their games…It’s a cash grab, yes.  But from the leagues’ perspective, it’s also a payment in exchange for tolerating certain risks. Sports leagues profit from betting but they are also terrified of it.” 

 Porter, he says, committed two sins and flirted with a third.  He disclosed privileged information to bettors and manipulated in-game outcomes. In Porter’s case, he took himself out of a game early so he would not meet projected performance levels.  The third circumstance that terrifies leagues, says Kirschner is outright throwing of games. “The single easiest way to threaten a league’s multibillion-dollar business is for people to doubt that they’re watching a game left to chance…If that goes, everything could go.

Porter is only 24 years old. Kirschner says his career is in the dumpster because he has been involved in the biggest betting scandal involving a player since sports wagering was legalized in this country in 2018. “If the Black Sox were a 10 on the scandal scale,” he writes, “Porter probably is a 6 or 7.”

Zilgitt darkly predicts this will happen again. “Someone always thinks they can beat the system, and maybe someone can but not Jontay Porter and his simple attempt at trying to make extra money. It’s inevitable, just as it was inevitable it happened in the first place.” Porter, who has spent most of his pro career in the NBA’s minor league, was being paid $410,000 this year to play for the NBA’s Toronto Raptors. The league investigation says he made $22,000 on the bets he placed on the game from which he removed himself, claiming illness.

The “idiocy” that Ziglitt attributes to Porter is explained by Kirschner who writes that the kid used the gambling companies that partner with the pro leagues to place his bets—-and those bets are monitored by the leagues. “If Porter were collaborating with underground bettors and bookies, his activity would have gone undetected,” he wrote.

In Kirschner’s view, pro sports teams are just asking for this kind of problem.  Sports wagering companies are aggressively advertising their “services,” leading to greatly expanding participation in betting. He bluntly observes, “A bigger pool of bettors means a bigger pool of potential crooks. In a subtle but real way, the NBA courted the Porter scandal.”

Pro sports leagues fought against sports wagering until the U. S. Supreme Court legalized it nationwide in 2018.  Once it was legalized, the leagues had no choice but to get in bed with the betting industry.  Pessimists might be forgiven for wondering if they’ll stay on their separate sides of the bed.

And whose reputation is damaged by this scandal?  Not the gaming industry.  It’s sports and those who play them.  A player has been banished for life. Pro sports worries whether its fans think its product is genuine and honest.

Zilgitt quotes NBA Commissioner Adam Silver saying the Porter case “raises important questions about the sufficiency of the regulatory framework currently in place, including the types of bets offered on our games and players.” Zilgitt notes Silver has advocated federal regulation of sports wagering and suggests outlawing or limiting certain kinds of bets.

Not considered by either columnist is what role state regulatory agencies can play or should play in terms of disciplinary actions against casinos that handle such bets or wagering companies that process them. In this case, the hammer has fallen on the player, deservedly so, but those who took, paid, and processed his bets appear to be facing no penalties.

Missouri’s pro sports teams are gathering signatures to get a statewide vote on a constitutional amendment legalizing sports wagering.

The proposal mirrors bills introduced in this year’s legislative session that grievously disadvantage the state and the programs that rely on gambling income for their budgets.  The Missouri Gaming Commission has warned that the legislation pushed at the Capitol by gaming interests does not raise enough revenue for the commission to adequately regulate sports wagering. Nor does it do anything to punish the betting industry that produced the measley $22,000 that Porter won.

“Measley,” as in how little he gained compared to how much he has thrown away.

The Porter scandal is a tragedy for him and for sports in general.  How will Missouri voters see the issue now that one of our own has become a self-induced victim of a system we are being asked to approve?  He might be the first but nobody expects he will be the last.

If Missourians approve the proposition, will they also undermine trust in the games that they love?  How many Porters are needed before we wonder about every missed free throw, every error, every missed tackle, every overthrown pass, every wide shot on goal?

(If you want to read the full articles on which we’ve based two entries):

Jontay Porter NBA betting scheme is a lesson in stupidity (usatoday.com)

Athletes beware: Jontay Porter NBA betting scheme is a lesson in stupidity (msn.com)

The Stadium Thing

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Here’s a sand-in-the-underwear situation for you.

Owners of our big-time sports teams—the Royals, the Chiefs, the Blues and the Cardinals (and our two pro soccer teams)—want you and me to reach into our pockets to pay major parts of the costs of building new stadia or upgrading old ones for them.

The Royals and the Chiefs overlooked a critical issue as their effort to extend the Jackson County sports tax was trounced by voters recently. The Cardinals are overlooking the same issue with reports that they will be seeking state support for the updating of Busch Stadium III (although team president Bill DeWitt III says such a report is “premature.” :

None of them has mentioned how many millions of dollars they will make from sports wagering. None of them has given any indication that they could use that money instead of taxpayer funds for their new projects.

It is a failing that might not bode well for the teams and the casinos that want to put a sports wagering proposition on the ballot later this year, a proposal that hugely disadvantages the state and the programs that years ago the casinos promised could be funded with taxes and fees from legalized gambling.

Would it not make sense to ease voter worries about city and state subsidies for stadium construction and improvements if the teams committed to using the first few years of the giant profits they expect from sports betting for their stadium projects instead of expecting a tax handout from the citizens?  

 Why should the legislature give any team that will profit from sports betting any funds from state taxpayer pockets?  Why should the legislature lessen financial support for, say, mental health services, veterans homes, education, senior services programs, and nursing home support so sports teams that soon will be divvying up hundreds of millions of dollars a year from people thinking they can consistently beat game-day odds don’t have to use those funds?

Opponents of sports wagering might be able to make a lot of hay out of this oversight by the teams and the casinos.  It’s an election year. If you are a voter, you should ask your candidates if they favor taking money away from state programs to build or maintain playing fields while the team owners and the casinos rake hundreds of millions of dollars in lost consumer bets into their pockets instead of investing them in stadium projects in their home cities?

You should ask those questions.  And if your candidate says the sports teams should be allowed to pick your pocket with a tax while lining their pockets with gambling revenues, you should look for another square on the ballot to fill in.

These two issues are joined at the hip and voters, especially those in the home areas of our major league teams, should hold their legislators and their sports teams accountable.

 

How Our Major League Sports Teams Are Plotting A Massive Rip-off Of The State 

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By Bob Priddy, Missourinet Contributing Editor

Most of our patrons do not read the Tuesday entries that focus on sports. We ask that you carefully read this one, however, at least the first part.

(SPORTS WAGERING PETITION)—-Our six major league sports teams have crawled into bed with an industry whose sole characteristic is greed and the people of Missouri could become their abused children.

The teams, fed up that the legislature has failed to legalize sports betting, have launched a petition campaign highly favorable to the casino industry and detrimental to the public to put the issue on the ballot.

It’s a rip-off of major league proportions.  The Cardinals, Royals, Chiefs, Blues, and Missouri’s two major league soccer teams are collecting petition signatures to ask voters to let them and our thirteen casinos pocket millions of dollars with a sweetheart tax package that will take millions away from Missouri schools, veterans, and even the host cities of the casinos.

Hidden in the deal is a big tax cut for the casino industry that is made bigger with provisions that lower the amount of money to be taxed.

The petition campaign constitutes nothing less than a mugging of the state of Missouri.

Let’s begin with a simple question.  Would you knowingly bet eleven dollars, knowing that the most you ever could win would be TEN dollars?

That is what the teams and the casinos are going to do to Missourians.  The state is guaranteed to be a loser with the very first bet.  Here is how it will work if voters fall for this scheme:

Missouri’s casinos pay a twenty-one percent tax on revenues remaining after they have paid off winners of bets.  So much money is bet in Missouri that the casinos have approached revenues of two-billion dollars in each of the last two years and are on track to equal last year’s record or set a new revenue record for a third straight year.

Simple elementary school mathematics shows how the teams’ casino allies will grow immensely wealthy with this scam while the things that are supposed to be financed with the gambling tax are massively short-changed.

The proposed tax rate on sports betting is only ten percent, eleven percentage points below the rate charged for the last thirty years of casino gambling on table games and slot machines. Thus, the state would give up eleven of the present twenty-one percentage points to get ten

The American Gaming Association’s latest annual report says Missouri would be the twelfth state with a tax of ten percent or less.  Fourteen states have tax rates above ten percent or that top out above ten percent, including three states that charge fifty and fifty-one percent. Only five states on the AGA’s chart show rates of less than ten percent.

But there is something dark behind the petition’s demand that the rate be ten percent here.

Ten percent and twenty-one percent produce an average of 15.5 percent, an effective twenty-five percent tax cut for all Missouri casino gambling.

While the teams’ sophisticated advertising campaign will tell voters the proposal wll generate millions of dollars more for the state education fund and for their host cities, the truth is that it will produce less.

Financial analysts who advise the Missouri General Assembly forecast taxable revenes from casino gambing will jump from almost two billion dollars to $2.4 billion within four years.  A twenty-one percent tax of that amount would produce $504 million with ninety percent going into funding for elementary and secondary public schools. The other ten percent would be distributed to the thirteen cities that have casinos in them and to one county that shares revenues with the casino city.  An average tax of 15.5% would produce $372 million, again with the 90-10 split, $132 million less than if the twenty-one percent tax is maintained.

While $372 million dollars on the low end might seem to be an impressive sum, here is something else the casinos and the sports teams will never tell you in their promotions and advertising:

The Missouri Gaming Commission reports that casinos in the last fiscal year paid gambling taxes of $403.3 million dollars on revenues from slot machines and table games alone.

Approving sports wagering as proposed in the petition will take more than thirty million dollars away from the state, not add revenue.

Our metropolitan areas will feel the difference most acutely.  Host communities in the St. Louis metro area, which has four casinos, will lose $5.6 million in the first four years of sports wagering under the petition plan.  We wonder if Cardinals President Bill DeWitt III, who has been the spokesman for the teams during legislative committee hearings, has ever thought of what this plan will cost his main ticket-buying community.

Host communities in the Kansas City metro area, also with four casinos, will lose $3.65 million, something we bet the Chiefs and the Royals haven’t considered. .

Our figures are based on projections made by legislative fiscal analysts.

Legislative fiscal analysts forecast the ten percent tax will cost the thirteen host cities more than eleven million dollars, total, in the first four years of wagering, money they would receive if sports wagering were taxed at the same rate as slots and table games.  Amazingly, the association that represents those cities doesn’t seem to care. It has endorsed whatever the casinos have asked for from the legislature. One wonders if the city councils or the citizens of those communities has ever heard how much they have lost in the past thirty years because the two-dollar admission never having adjusted for inflation and how much they will lose if the petition passes.

By our calculations, using the Bureau of Labor Statistics annual inflation calculator, the state already has lost almost $1.1 Billion in admission fees because casinos are paying the same fee they paid when the first two of them opened thirty years ago this year.

In the most recent fiscal year, the state received $57.9 million in admission fees. Had the fees been adjusted annally for inflation, it would have received $113.5 million. But inflation works both ways.  The $57.9 million the state did receive had a purchasing power of only $29.5 millon because of the loss of purchasing power of the two 1993 dollars. Remember, half of the two-dollar admission fee goes to the host cities.  But their association doesn’t seem to care.

And it’s worse.

Buried within the petition are six deductions not allowed in today’s law that will reduce taxable income by several millions of dollars. The deductions encourage casino bookeepers to try to show their casino produced a monthly loss on paper.  If they can, the schools, home dock cities and other state entities listed as beneficiaries of this new form of gambling will receive zero revenues that month.

But it’s far worse than that.

If a casino can show that it had a paper loss for a month, the amount it claims as loss will carry over to the next month and be used to calculate that month’s profit or loss, again reducing the casino’s tax payments. Can anyone name any other business or industry in Missouri that is allowed to calculate their taxes this way?

Two states provide scary examples of the dangers of the carryovers for Missourians to consider.  In November, 2022, Louisiana casinos reported a statewide loss of $25.6 milllion because some of the casinos took bets made by a Texas furniture store owner that the Texas Rangers would win the World Series, which they did. In the same month, Maryland casinos reported a statewide loss of $33.6 million after they spent more than $60 million in promotional credits as part of the state’s launch of mobile betting.

But it’s far worse than that.

Let’s go back to the admission fee. Casinos also pay the state a two-dollar admission fee for each person who goes through the turnstiles to the gambling floors. If the gamblers stay longer than two hours, the casino pays another two dollars—a policy that began on the first day that casinos opened thirty years ago this year when they actually were boats and river cruises actually were possible.

A prediction was made at the East Coast Gaming Conference in 2019, a few months after sports betting was legalized by the U. S. Supreme Court, that within five to ten years, ninety percent of sports wagers would be placed online. Just two years later, gambling analyst Larry Henry reported on Casino.org that more than eighty percent of sports bets already were being placed online and New Jersey, the first state to legalize sports betting after the court ruling, 92 percent of sports wagers had been placed online in 2021.

If Missouri follows national trends, ninety percent of sports bets soon will be online and not made by people who go through the turnstiles of our casinos.  Under the petition, those online bets will produce zero revenue for programs and services whose budgets have suffered greatly because turnstile admissions have declined by about forty-seven percent in the last twelve years.

Who is suffering the most? The Veterans Commission Capital Trust Fund, which provides money for veterans nursing homes. Admission fee funding of care for our veterans has dropped by 63 percent in the last decade.  Nothing in the petition does anything to reverse that trend.

The Missouri Gaming Commission’s budget has declined by more than twenty percent in the last decade. It has twenty-three fewer employees than it had then. And it is facing a major increase in enforcement responsibility if the petition passes. The commission will collect some licensing fees but the petition also requires it to use some of its new money to pay for a problem gambler’s assistance fund.

Numerous studies have indicated gambling addiction will at least triple with the introduction of sports wagering and remote betting.  The money to be set aside for “compulsive gambing prevention” comes out of the commission’s pocket. It comes out of the taxes benefitting schools and home dock cities and fees going to the gaming commission. Nothing in the petition requires the casinos or the teams to contribute directly to a fund to counter the problems their new form of gambling will create.

And two more things before we go.

The casino industry has spent a lot of time and resources trying to convince your legislators and mine that sports wagering is a stand-alone issue that need special care and feeding.  It is not.  Their own bills just add “sports wagering” to the list of games of skill in our state laws.  In the now-seven years that sports wagering bills have been introduced, not one has said anything that defines sports wagering as differing from poker, blackjack, craps, or any other table game or slot machine.  A bet is a bet is a bet.  And if you bet long enough the casino will have all of your money whether you bet on the spin of a wheel, the fall of a card, the roll of a die, or the pull of a lever.

The committee backing the petition campaign says sports wagering will provide new good-paying jobs.

Will it generate enough new jobs to replace the 5,600 people laid off in the host cities during the last fifteen years?  Will it replace the $100 million-plus in payrolls lost each year by the host cities in that same period?

Everybody loses except the teams and the casinos in this petition campaign. People going into casinos know they’re playing on tables tilted against them. That’s fine.  But before Missourians support this blatant deception against our state by the casinos and our sports teams, they should look at how much they will lose regardless of whether they gamble.

The casinos have never dealt the top card on the deck to the legislature while trying to convince it to approve sports wagering.  Now they, with their sports team bedmates, are doing the same with the general public.

The legislature could fix all of this during this session. But don’t expect it to. There are 197 state representatives and senators in our General Assembly.  The Associated Press has reported that casinos, sports teams, online sports betting companies, and video gaming terminal inerests have hired about eighty lobbyists to pressure the people we presume represent us into representing those interests instead. That’s one lobbyist for ever 2.5 members of our legislature. It is hard to grow a backbone and do what is right on this issue when  you are surrounded by lobbyists backed by interests with bottomless checking accounts and a willingness to support re-election bids or to support opponents for those with the courage to reject the ongoing mugging of Missouri.

The only recourse Missourians will have if this petition gets enough signatures to be on the ballot later this year is to vote it down.  If they fail to do so, their state will be a big loser.

(All of the statistics used in this entry are drawn from the annual reports of the Missouri Gaming Commission, the American Gaming Association, legislative staff fiscal notes for pro-casino legislation, and the U. S. Bureau of Labor Statistics. We never have seen the homework the casinos to justify the claims they have made in the past or the present).

Now, we take a look at the history behind a cold football game, a cold-shooting basketball team, and the latest from baseball’s hot stove league)

(CHIEFS)—The regular season wasn’t pretty for the Kansas City Chiefs but they looked almost as solid as the frozen field at Arrowhead Stadium Saturday night with their dominating 26-7 wild card playoff win over the Miami Dolphins, a team that hasn’t won in forever  in cold weather.

The game goes into the record books as the fourth-coldest game in NFL history.  Here’s where it fits in:

December 31, 1967  Lambeau Field, Green Bay comes from behind to beat Dallas 21-17 on the famous Bart Starr quarterback sneak behind center Ken Bowman and Right Guard Jerry Kramer who pushed Defensive Tackle Jethro Pugh aside just enough for Starr to cross the line.  Temperatur at the start of the game: -13. Wind Chill  -48. The game was dubbed “The Ice Bowl.”  Green Bay went on to defeat the Oakland Raiders 33-10 in Super Bowl II.

January 10, 1982  “The Freezer Bowl”  Riverfront Stadium, Cincinnati. Coach Forrest Gregg, who played in “The Ice Bowl” is now the coach of the Bengals, who beat the San Diego Chargers 27-7. San Diego’s only touchdown was scored by former Missouri Tiger Kellen Winslow.  Game time temperature: -9  Wind Chill -59.  Some of the players in this game, as in the Green Bay-Dallas game reported health problems for the rest of their lives because of the playing conditions.

January 10, 2016  TCF Bank Stadium, Minneapolis. Seattle beats the Vikings 10-9 when Bill Walsh’s field goal attempt goes wide left with 22 seconds on the clock. Minus-6 with a windchilll of minus-25.

January 13, 2024 Arrowhead Stadium,  Chiefs beat the Miami Dolphins in the southernmost NFL cold game on record, 26-7. Harrison Butker’s four field goals and two extra points outscore the Dolphins, who lost their eighth straight game played in below-freezing temperatures. Quarterback Tua Tagovailoa dropped to 0-5 in games played below 45 degrees.  Game time temperature: -4  Windchill -20. At the end it was -9 and -28. The extreme cold sent 69 people to aid tents run by the city fire department. About half were for hypothermia symptoms and fifteen people were taken to hospitals where seven were suffering from hypothermia, three for frostbite and five for various other reasons.

      The game broke the record for the coldest game at Arrowhead Stadium.  The Chiefs beat the Broncos 48-17 on December 18, 1993. Footall Reference reports the temperature at the start of the game was 0.5 degrees.

December 10, 1972  Metropolitan Stadium, Minneapolis Green Bay 23, Vikings 7. Temperature at game start 0. Wind Chill -18. Green Bay’s running backs, John Brockington and MacArthur Lane combine for more than 200 yards rushing, 99 by Lane, who had come over from the St. Louis Cardinals that year. Later, Lane was with the Kansas City Chiefs and in his last year in his career, 1978, rushed for 144 yards against  the Bills. He was 36 years and 199 days old and remains the oldest player to rush for more than 100 yards in an NFL game.

January 20, 2008  Lambeau Field  New York Giants 23 Packers 20 on a 47-yard field goal 12:25 into overtime by Lawrence Tynes. Temperature -4, Wind Chill -24.

December 26, 1993  Lambeau Field  Packers vs. the now-LA Raiders. Packers win 28-0. Game time temperature 0, Wind Chill -22.

January 15, 1994  Ralph Wilson Stadium, Buffalo, Coldest game played at Orchard Park in Buffalo. Game start temperature 0, Wind Chill -32. Bills come from behind in the fourth quarter with a fourth quarter touchdown pass from Jim Kelly to Bill Brooks to win 29-23.

December 3, 1972  Metropolitan Stadium, Minneapolis. -2 at the start with a windchilll of -26. Vikings kicker Fred Cox outscores the Bears with three field goals and two PATs in a 23-10 Minnesota victory.

Kansas City’s defense again was dominant, keeping the Dolphins out of the red zone all night long.  Miami’s only score was a 53-yard touchdown pass and run to former chiefs receiver Tyreek Hill who otherwise was not a factor in the game. The win against Miami moves the Chiefs into next week’s game against the Buffalo Bills, who beat the Pittsburgh Steelers last night in the game delayed for a day because of a typical Buffalo winter storm that dumped more snow into the stadium than an army of scoopers could remove on Sunday.

(miz)—The Missouri Tigers reached the halfway point of their regular season Saturday, losing their sixth game in their last seven outings and could drop below .500 tonight when they play league-leading Alabama on the Crimson Tide’s court.  Alabama is 11-5 overall with a five-game winning streak. Missouri is now 8-8. The Tigers join Arkansas and Vanderbilt in the SEC cellar with 0-3 records.

SB Nation’s Sam Snelling reports the Tigers have not defeated a high major opponent since losing Caleb Grill early in December with an injury to his non-shooting wrist. He had surgery  and might be back later this month.

Snelling suggests coach Dennis Gates is giving his veteran players a chance to right the ship, but it’s not working. Five of his guys have played more than 100 games in their college careers with Nick Honor accounting for 139. Noah Carter, John Tonje, Connor Vanover, and Sean East II all have more than 100 games. He wonders when Gates will realize his veterans aren’t getting the job done and when he will start building for tomorrow with his younger guys. (zou)

(BASEBALL)—No big new signings by the Royals and the Cardinals but the Redbirds have made an interesting front office move by hiring Chaim Bloom as an advisor. Bloom was with the Boston Red Sox until he was dumped by Fenway Sports Group despite being credited by some with cutting spending while rebuilding the team’s farm system.

He’ll be an advisor to Cardinals President of Baseball Operations John Mozeliak, who plans to step aside after the 2025 season, prompting questions about whether Mozeliak is grooming his successor. Mozeliak warns against jumping to conclusions. “where it leads to, we’ll see,” he says.

It’s the second major advisory step taken in the off-season by the Cardinals, who signed Yadiar Molina earlier as an advisor, prompting speculation about his role growing from advisor to manager.  Molina is managing in the Puerto Rico winer league and wants to manage in the bigs.  Present Cardinals manager Oli Marmol is in the last year of his contract. Mozeliak does not expect friction between the M’s.  Although he’s a supporter of Marmol, he also recognizes the Cardinals cannot have another year with problems on the field and in the locker room.

-0-

Passive 

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Maybe it’s a case of thinking the old days were better than today.  Maybe not.

The legislature has returned to the Capitol.  Most people have no idea how quickly things move when the session starts or how intense the work is—or how contentious is can become if a partisan renegade group decides it must prevail, their minority status be damned.

For the last three years the sessions’ last week or so have become mired in political mud and the sessions have been the least productive in long, long memory because of conflicts between the legalization of those Video Lottery Machines that are pimples in our convenience stores and sports wagering legislation that seeks to give our casino a significant tax break to the detriment of our education funds and even to the further detriment of their own host cities.

But that’s a diatribe for another time.

It seems to from our high position that the baneful effects of term limits, about which we were warned in 1992, have produced another regrettable trend.

A passive legislature.

The loss of institutional memory because of term limits cannot be overstated.

One of the bigget warnings before 1992 was that term imits would transfer power from the chambers to the hallways, where lobbyists roam, because no senior members would be around to advise newcomers on the role of the General Assembly in the process of lawmaking and in the process of shaping state fiscal policy.

The transfer became obvious several years ago when, during debate, the sponsor of a bill would ask of another lawmaker proposing an amendment, “Have you checked with so-and-so out in the hall?”

Later the issue became even more egregious as I watched lawmakers during debate checking their cell phones for text messages from the paid influencers outside the chamber. Lobbyists are banned from being on the House and Senate floors. Physically.  But their electronic presence is undeniable.

As we have watched for these many years, it seems that the legislature today is more likely to accept legislation without question and without hearing the voice of the public as much as it once did. Although we don’t cover committee meetings as much as we did in our reporting days, we have been in a large number of them on the issue of sports wagering, a special interest of ours for several reasons.

The caisno industry, now unfortunately aided and abetted by our major professional sports teams that need millons of dollars a year to try to keep pace with bigger-market moneybag teams, has always presented bills that are—to be frank—terrible fiscal policy for the state and its people and especially for schools, veterans, and the casino’s home cities.

Glaringly absent is any aggressive interrogation of the industry.  I can recall only two instances in which any semi-extensive questions were asked and only one when the questions were aggressively put (and the industry’s response was hardly direct).

In the old days—and I intensely dislike using that phrase—it seemed the legislature, while heavily influenced by lobbyists (who have a place in the system) and their checkbooks, looked more critically at legislation.  And it seems that lawmakers who were more likely to be presented a problem took an initiative, now missing, to fix the problem.

Many legislative hearings where held at night so members of the public could more easily be present without missing a full day of work. Night meetings are scarce today, leaving the field more and more to those who can affort to buy representation.  The voice of the citizen is muted in today’s system and the general assembly is more susceptible to being influenced by political action committee money.

In the first year of my lobbying career (working on getting the casinos to pay to keep the Steamboat Arabia Museum in Missouri), I took some findings of casino greed to a member of the House who told me, “Oh, the casinos will be interested in this. I’ve already gotten two checks form them this year.” He apparently was totally unaware of what a self-indictment his statement was.

Some legislator’s offices are festooned with plaques from organizations thanking them for their support.  When I was running the Missorinet newsroom we had a rule that we would accept no awards from any organization we covered.

We were not their friend. Nor were we their enemy.

We are one of those in the halls again this year, raising our pitiful voice against the steamroller called the casino industry, hoping again that we will trouble the consciences of those who sit quietly while the industry presents its plans for getting richer and richer while the services that serve the people of Missouri that rely on revenue from the industry get poorer and poorer, and poorer still under proposed sports wagering legislation.

Somebody has to ask the questions.  Too bad it isn’t the people who are presented with bills the industry wants passed.

We Weren’t Good Enough for Trump. Or Was It The Other Way Around? 

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Next year will mark the thirtieth anniversary of the opening of the first legal casinos in Missouri.

The industry has done well in those thirty years.  It has posted revenues of almost $42-Billion.

For a time, Donald Trump wanted to be part of that, making some deals that would add to his casino empire back east. Before he started sniffing around in Missouri he had bought a casino from Hilton Hotels in 1985 and opened the property as Trump’s Castle Hotel Casino (later Trump Marina) in Atlantic City.  In 1986, he bought out a Holiday Inn and opened it as the Trump Plaza Hotel and Casino.

Two years later he got involved in the Taj Mahal project in Atlantic City and, using junk bonds,   turned it into a billion-dollar construction project.

In 1993, a year after voters approved riverboat gambling, he showed up in Missouri, ready to deal.  St. Louis Mayor Freeman Bosley didn’t want to cut a deal unless riverfront gambling interests got behind downtown redevelopment, a condition that Trump didn’t seem to mind, telling reporters, “Depending  on what he wants, I would be interested in discussing possible linkage. I think St. Louis needs a convention center hotel very badly. St. Louis is certainly a good gaming market.”

Already displaying the modesty to which we are accustomed, he proclaimed in May of ’93, “I think I know as much about convention halls as anyone in the public of private sector.”

While he was casting eyes at Missouri, he was feuding with Native Americans who were opening their own casinos.  The same year he looked at St. Louis he was ripping the operators of the Foxwoods Casino operated by he Mashantucket Pequot Tribal Nation in New York, telling New York City radio host Don Imus, “I think I might have more Indian blood than a lot of the so-called Indians that are trying to open up reservations…I think if you’ve ever been up there,  you would truly say these are not Indians.”

(Just for the record, Donald Trump has zero Indian blood. His grandfather, came here as a 16-year old barber to escape three years of German military service. The legality of his entrance to the United States is questionable.)

American Indian Republic later reflected, “His discourteous rhetoric involving American Indians has often been used to both demean and frustrate those to which such speech was directed, with his early 1990’s tirades reflecting his discontent with the rapid and expansive rise of Indian gaming in particular. Much of the racially influenced remarks that had occurred during that period would later be conveyed once again during his 2016 presidential bid against his Republican opponents and Hillary Clinton, amongst other politicians.”

The year he was considering a Missouri casino, he filed a lawsuit against the Indian Gaming Regulatory Act of 1988 that allowed Indian nations to open casinos. His whine was a familiar one to us today. The suit claimed those casinos were providing unfair competition, that the act was discriminatory as well as being unconstitutional.

Interior Secretary Bruce Babbit, a defendant, reacted, “My initial reaction was, ‘Hey, wait a minute, I’ve never even met Marla Maples. How can he be suing me?’ It is really absurd to think that a self-proclaimed tycoon s threatened by a few bands of impoverished Indians. It’s the theatre of the absurd.”

(Marla Maples was Trump’s new hobby at the time.  They had met in 1984 and started carrying on while he was still married to Ivana, who finally split with him in 1990.  It was about the time he was fighting Indians that Marla was trying to convince him to marry her.  She said they’d set the date “about a dozen times” but he always had “a little freak out” the day before the grand event. She said she helped him get over “that fear monster,” but had started taking her wedding gown along on their travels because “you’ve got to be prepared.”  They married late in 1993, two months after the birth of their daughter, Tiffany. Three years later, Trump fired his bodyguard after police reported finding him under a lifeguard stand with Ivana on a deserted beach at 4 a.m. They divorced in June of 1999.  By then he was fooling around with a Yugoslavian-born model, Melanija Knavs, who was building a career in New York. They were married in 2005.)

Getting back to our story:

As usually seems to happen with Trump lawsuits, the one involving Bruce Babbit went nowhere.

Later that year, representatives of the Wyandotte Tribe of Oklahoma proposed building an 80,000 square foot casino/hotel/theatre/restaurant complex in the St. Louis suburb of Arnold.  One Arnold resident dismissed the idea, commenting, “Trump is in town talking about a deal on the riverfront. Who in the world is going to choose Arnold when downtown St. Louis is 20 minutes away?”  Governor Carnahan’s deputy chief of staff, Roy Temple, indicated Carnahan was cool to the idea of a casino in Arnold, generally opposed to casinos beyond those allowed by the riverboat gambling amendment added to the State Constitution in ’92.

Trump also was crosswise with Connecticut Governor Lowell Weicker, claiming he couldn’t build a casino in that state until Weiker left office because Weiker opposed casinos. Weiker responded, “My opposition to casinos isn’t just casinos. It’s opposition to Donald Trump,” who he referred to as a “dirt bag” and a “bigot.”  Trump displayed his now-familiar brand of logic when he fired back that Weiker “is a fat slob who couldn’t get elected dog catcher in Connecticut,” ignoring the fact that Weiker had gotten elected to an office of somewhat greater importance.

In November of ’93, Trump unveiled his plan for a $300 million floating casino and 20-acre development just north of Laclede’s Landing on the St. Louis riverfront.  Five other developers also were eyeing the area.

In February of 1994, he floated the idea of a $98 million casino project in St. Charles that included a golf course, aquarium, and a park. Six other companies were competing.

Trump wasn’t good enough for either project.

In August of ’95, he left some people shaking their heads when he filed a lawsuit in New York to stop the introduction of  new lottery game, Quick Draw. He described it as “video crack,” and argued, “When you add it all up, the social costs far outweigh the potential tax revenues” and would be harmful to gambling addicts and casual gamblers “who can lose far more than they can afford.”

The same concerns did not apply to his own casinos because, “The overwhelming number of people who go to casinos do so for limited periods of time and with set budgets.”

By now, by the way, the Palm Beach, Florida, town council had capitulated in the face of a lawsuit filed by Trump and approved his proposal to turn his historic Mar-a-Lago mansion into a private club. The council had refused to allow the change two years earlier and Trump had, well, you know.

Trump’s grandiose plans for St. Louis and St. Charles were stillborn but he wasn’t done with Missouri.

In 1995 he established Trump Hotels and Casino Resorts as a publicly-traded company.  Four years later THCR agreed to buy the troubled Flamingo Hilton Casino in Kansas City, reportedly for $15 million.  The city port authority approved the deal on Trump’s 53rd birthday. But the deal fell through when the Missouri Gaming Commission refused to approve the company’s gaming license, expressing concerns about the THCR’s $1.8 Billion in debts.

The summer before the deal, the Hilton had agreed to pay $665,000 in fines and penalties to the federal government instead of going to trial in federal court  for “providing financial incentives” to friends of the then-chairman of the Kansas City Port Authority in return for his political support to build the casino on city-owned land. The company always denied doing anything improper.  The gaming commission threatened to yank the Hilton’s gambling license unless it sold its property.  Hilton had spent more than $100 million to develop the site.

In September of ’99, Station Casinos bought the Flamingo Hilton at the fire-sale price of $22.5 million. A Trump spokesman said the deal was cancelled so the company could focus on operating its three casinos in Atlantic City and reduce its debt.

Anyone wanting to learn more about all of this little drama seems to be out of luck.  The Associated Press reported in 2016 that about 1,000 pages of documents are locked away in the gaming commission’s files and are secret under Missouri law because Trump’s company withdrew its application on November 17, 1999. The commission lawyer says they’re sealed because the state never took action on the license application.

So ends the story of Donald Trump’s efforts to expand his casino empire to Missouri.

Had he done so, his track record indicates those projects would have been just another part of the story of the great deal-maker’s business failures.

THCR filed for bankruptcy in 2004 and was renamed Trump Entertainment Resorts and declared bankruptcy in 2009.

The Harrah’s at Trump Plaza in Atlantic City filed Chapter 11 bankruptcy in 1992, closed in 2014 and was demolished in 2021.

Trump 29 Casino in Coachella, California is still open but Trump left the partnership in 2006.

Trump Casino in Gary, Indiana was sold in 2005.

Trump World’s Fair in Atlantic City closed in 1999 and was demolished a year later.

Trump Castle in Atlantic City filed for Chapter bankruptcy in 1992, was sold in 2011 and is now the Golden Nugget Atlantic City.

Trump Taj Mahal on the Atlantic City boardwalk filed for Chapter 11 bankruptcy in 1991,  closed in 2016 and is now the Hard Rock Hotel and Casino.

And those are just part of a list of failures that also include an airline, a university, a vodka and a meat business, a travel agency and a mortgage finance company. And Truth Social is weakening.

His last casino development effort was on the Caribbean Island of Canouan, described as “a place where billionaires go to escape millionaires,” when Swiss-Italian banker Antonio Saladino tried to turn his languishing resort into a successful enterprise. He hired Trump to build villas around his hotel and golf course. Trump agreed to run the golf course and put up his own casino. Saladino sold out in 2010 to an Irish billionaire who fired Trump and sold the resort in 2015.

So Missouri missed out on having Donald Trump running a casino here.  It’s probably for the best.

Missouri has thirteen casinos, none that have ever born the name “Trump.”  There are those who think we need a fourteenth one, or maybe move a license from one location to the next—-which presents another problem of what is a small town that loses its casino going to do for jobs and what’s it going to do with the boarded-up casino.  And we have another Indian Nation that is trying to open a casino .

We saw during those years the Donald Trump character that is no different today. The casino industry has moved beyond Donald Trump.  Some might think it’s because the industry is run by better people, which is a case of damning by faint praise.

Is there a lesson in this for our political system?

 

Legal?  Illegal?

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The legality of VLTs, Video Lottery Terminals, remains up in the air with a recent court ruling and because of the uncertainty of their legality and a powerful influence group at the Capitol that opposes them in their present state, we can already see the 2024 session of the General Assembly degenerating into another mud fight in the closing day that winds up killing many bills on which legislators have worked hard to put into position for final passage.

The casinos say VLTs are slot machines and casinos are the only places in Missouri that can operate slot machines.  VLT supporters say they’re some kind of different animal and, as such, are not covered by state law or regulation.

Neither side wants to talk to the other. Forget about compromise. As the clock winds down on the legislative session, both sides get more angry and more desperate and a filibuster in each of the last two years on this and some other tender issues has set lawmakers home frustrated and disappointed.

Whether VLTs are illegal is disputed not only in legislative halls, but in county prosecutors’ offices throughout the state. Only Platte County has declared them illegal and has fined a VLT operator $7,500 for promoting gambling.

The machines are not regulated by either the State Gaming Commission that regulates casinos or the State Lottery Commission that regulates lotteries. The machines generate no income for state programs and services that draw financing from gambling.

Last week, a federal judge decided seven plaintiffs who claimed they are problem gamblers (some of whom have put themselves on the state casino exclusion list) had no standing to file a lawsuit accusing Torch Electronics, a VLT operator, of violating the federal Racketeer influence and Corrupt Organizations Act with its machines. The judge held they had not shown a “tangible injury to business or property.”  He also said losing money in the machines was a voluntary act by the player—who could avoid losing money in VLTs by not playing them. He says he dismissed the part of the case dealing with the RICO act and that any further challenges belong in state court.

Torch has a lawsuit in state court. It’s scheduled to be argued next month.  It, and Warrenton Oil, want an order banning the Highway Patrol from investigating Torch’s operations. Warrenton Oil operates 54 Fast Lane convenience stores with VLTs in them.

Some people have urged Attorney General Andrew Bailey to take action against the machines. He says the issue is “too complicated” for his office to get into.

The legislature seems unwilling to be the adult in the room, telling two feuding children to shut up and telling them, “This is how it’s going to be done.” Of course, it’s hard to take that initiative. when there are thousands of dollars in campaign donations from both sides floating around.

In an election year.

Somebody has to write a rule and the legislature needs to adopt it to keep the 2024 session from turning into the sessions of 2022 and 2023.  But it is our observation that our legislature has become passive, perhaps because of term limits—that legislators don’t propose alternatives to bills like these that put lawmakers, not casinos or VLT operators in a position of authority.

After watching this show for a couple of years and growing tired of it, this helpful citizen suggested a compromise late last year.  It was given to only a couple of people but is offered here for mass consideration.

First: On the effective date of this act, all VLTs will be illegal. The Missouri Lottery Commission is authorized to establish regulations that protect the interests of the state.  Upon approval of those regulations, VLTs can operate within the parameters of this act.

Second: The Missouri Gaming Commission is authorized to  VLT districts which shall consist of the home county of any casino and all surrounding counties. Revenue derived from VTLs in that district shall be distributed to the casinos on the basis of admission numbers. The casinos  (shall be responsible for paying all taxes and fees on VLT revenue established by state law.

In districts in which there are multiple casinos whose territories would overlap, a large district will be established that incudes home counties and surrounding counties (St. Louis, St. Louis County, and St. Charles County would comprise one such district.  Kansas City and St. Joseph casinos will be in a district together (they share Platte County) and their revenues also will be determined on an admission fee basis).

Third: The Lottery Commission will be free to establish additional districts as the constitution is amended to create new casinos.

Fourth: This policy will not be applied to any tribal casino unless it is included in a compact between the tribe and the state that is approved by both chamber of the Missouri General Assembly.

The plan protects the interests of casinos while leaving much of the state (the part not served by the present river-based casinos) open to independent VLT companies.

There’s no pride of authorship here. This is a result of being tired of the annual mud fight.

Of course, this stands no chance.  He who offers it has no Political Action Committees with fat checkbooks that are essential to establishing public policy that protects the interests of the constituents of those who set that policy.

But somebody has to start a conversation if the protagonists of our ongoing drama refuse to be part of it. It might be time to an otherwise passive legislature to become active before more lawmakers see their four months of work fall into the annual mid-May mud hole.

 

NOTES FROM A QUIET, HOT, HUMID STREET

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This series of observations began a long, long, time ago as “Notes from a Battered Royal,” which were notes sent out to Missourinet affiliate stations about what we were planning and what they had done to help us.

With the coming of the computer, then the internet, and then the requirement that the Missourinet have a blog, it became “Notes From the Front Lines.”  But the author is no longer on the front lines. He lives on a quiet street.  And its getting quieter.  The folks who used to live in the house across the street now are in an assisted care place in Columbia.  One of the houses next to us hasn’t been occupied for more than a  year because the man living there also is in assisted living. Three nuns who lived in a house just across the street and up one driveway have moved out.

It’s been a while since we made some observations that don’t qualify for fully blogness.  Let us proceed.

Saw a letter to the editor in the local paper the other day that said Missouri’s state motto, Salus Populi Suprema Lex Esto means “The will of the people is the Supreme Law.”  That’s wrong. And it’s dangerous.  Maybe we’ll go into in more depth later but for now, the correct interpretation is, “The welfare of the people is the Supreme Law.”  For now, just think of how different our freedoms would be if the word “will” actually was the philosophy of our government.  The quote, by the way, is from Marcus Tullius Cicero, who we know by his last name, the author of “On the Law.”

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Is there a more pitiful figure in American politics today than Rudi Giuliani?  Of all the people whose lives and reputations have been destroyed by their association with and defense of Mr. Trump, the wreckage that is Rudi is the most pitiful.

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I have a friend who lives in Tucson, Arizona who comes north for a couple of months every summer to find cooler weather (even 10-15 degrees cooler is significant).  I call her a Sunbird.

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There are certain words that have become so politicized that all of the honor has been crushed out of them.  I recall when words such as “liberal” and “conservative” were not said with a sneer and were not spoken as if they were scarlet letters.

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The latest word that falls into this category is “evangelicals.”  The people I heard described as such while I was growing up—-and the people who had the word on their churches—were perceived as fervent believers in God and Jesus, more fervent than us Disciples, Methodists, Presbyterians and my grandmother’s Baptists.  But then came those who discovered evangelical techniques could be applied to achieving political power, making it a third word that is being abused in “the politics of personal destruction.”

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We were talking recently with some friends about the totally trivial things we remember for decades.  I remarked that I still remembered the Army service number of a high school friend who joined the service shortly after we graduated—RA18541439.

Now there’s a new number that I’d like to remember sixty years later—P01135809.  It has a certain rhythm to it, too.

And to think this person was once known only as 45.

We’ve seen the official portrait of PO-1135809.  We are sure that Fulton County, Georgia prosecutor Fani Willis is soooooooo intimidated.

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This is about the most enthusiastic your correspondent has been for the start of the football season in decades. Maybe it’s because this year, it will bring relief from the near-daily disappointments of baseball.

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Can’t help it.  Everytime I see a major sports team or league sign a deal with a sports-betting company, I start thinking its time to cast Cooperstown plaques for Shoeless Jackson and Pete Rose.

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The Capitol regains its heartbeat for a couple of days soon. The lawmakers will decide whether to override some of Governor Parson’s vetoes.  There’s a lot of money available to pay for the things he differs with the legislature about.

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But having a lot of money now means there’s a cushion for the bad days.

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Or we can forget about the bad days and just blow it all now.

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Or we can enact tax cuts so our tax base is even less able to deal with the eventual downturn.

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Anybody else have deer in the yard that just watch you come home and go in the house without ever getting up?  I think that in our case, they’re just resting while they digest  their latest serving of Hostas from Nancy’s garden a/k/a the deer buffet.

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A longtime friend of mine died a few days ago.  He didn’t want a memorial service.  He was a retired reporter who didn’t want his death reported in the newspaper.  Steve Forsythe, whose byline for United Press International read “A. Stevenson Forsythe” was a helluva reporter. Governor Teasdale blamed us, at least in part, for his failure to win a second term.

We could have thanked him for the compliment but we never did.