Gamblers could support Missouri students

By Katie Sarreshteh, Staff Writer

Published Feb. 23, 2007

Money lost while gambling could soon help fund education in Missouri.

Majority Floor Leader Charlie Shields, R-St. Joseph, is sponsoring the "Smart Start Scholarship Program." This bill would give students money for college by changing some gambling regulations and laws.

Missouri casinos have a maximum loss limit of $500 for every two hours. This bill would remove this loss limit to generate more revenue to put into the scholarship fund so the money could be used for grants. Any amount past the $500 loss limit would be used for the grants.

"We always have been in favor of removing the loss limit," said Mike Knopfel, a spokesman for Ameristar Casinos. "And now that it is tied into scholarships, it is a win-win for both students and our casino."

The program would give an education allowance of 1 percent on gross receipts for gaming licenses in exceeding $40 million.

According to the bill, students could use the grant money for an "approved public institution" or an "approved private institution." It could also be used at any school certified in Missouri by the Department of Higher Education.

To qualify for one of these grants, prospective students must have attended a Missouri high school for three consecutive years before graduating and must apply for the grant no later than two years after graduation.

The grant would cover educational expenses for no more than two years for each student who receives it. The grants would be administered by the Missouri Department of Higher Education, which will annually establish a maximum grant amount based on the number of applicants and the amount of money available in the fund.

The Department of Higher Education would ultimately establish rules and a procedure for carrying out this program. If the bill is passed, it would go into effect in July 2008.