Gambling loss limits: a dicey situation

By Dan Salter

Published Feb. 29, 2008

Missouri gamblers might soon be able to lose as much money as they would like, if a new bill were to pass in the state Senate.

The gambling industry is once again pursuing an end to the current loss limits Missouri casinos have in place. Missouri is the only state that has loss limits: $500 every two hours. Such a law allows gamblers to minimize their losses, but also discourages any “high rollers” from risking their ideal bets.

The bill, which has been proposed several times over the years, would raise casino-operating taxes from 20 percent to 21 percent. This increased tax would be used to benefit public schools in Missouri by funding the A+ Schools Program for all public high schools. The A+ program allows students two free years at a Missouri community or technical college of their choice if certain requirements are met throughout their high school tenure.

While it is easy to see how casinos will gain financially from the lack of a loss limit, bill sponsor Sen. Scott Rupp, R-St. Louis, said he feels if the bill passes the real winners would be the Missouri taxpayers.

“Missouri taxpayers benefit most from the bill,” Rupp said. “Twenty-five million dollars will go toward the A+ program, and the rest will go toward early childhood programs.”

Rep. Ed Robb, R-Columbia, also the vice chairman of the budget committee, said any school that applies for the A+ program is automatically funded. Some of the money gained from the increased taxes on casinos would also be put in a state fund to pay teachers’ salaries.

Along with the tax increase, the number of casinos allowed in Missouri would be limited by the bill. There are 11 existing casinos, with one more under construction. The new bill would allow Missouri to house up to 13 casinos.

In early February, MU held a problem gambling week in which students were given fliers, magnets and saw posters around campus spreading the news on how dangerous gambling can be, and how to help friends with their gambling problem. The week climaxed on Super Bowl Sunday, the most bet upon game in the United States, according to gambling911.com.

According to the MU’s gambling prevention Web site, college-aged students have a higher rate of becoming compulsive gamblers than average adults.

Counseling Center psychologist Anne Meyer compared problem gambling to alcoholism.

“The more someone is using it, the greater likelihood that they will become addicted, very similar to alcoholics,” Meyer said.

Rupp said the stop loss would have no effect on gamblers across the state.

“I interviewed gambling counselors across the state, and 99 percent of gamblers would not be affected by the cut of the loss limit,” he said. “There are several ways to get around the loss limit laws: driving to another casino or using another players card.”

As the last state in the nation with a loss limit, Missouri could be pressured into cutting the loss limits, because residents on the border of Kansas and Iowa can cross the state lines to gamble to avoid the loss limit.

The bill’s supporters point to the increased revenue to the state, and to the public school system could use. Those against removing the limits are commonly weary of problem gambling.