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Judge to Determine Future of Missouri Casinos

JEFFERSON CITY - Six Missouri casinos will roll their dice in front of Cole County Circuit Judge Byron Kinder Thursday afternoon.

The casinos face possible revocation of their licenses by the Missouri Gaming Commission following a November state Supreme Court decision. The court ruled a voter-approved 1994 constitutional amendment allows games of chance only upon the Mississippi and Missouri rivers.

Kinder will hear arguments at 1:30 today on three lawsuits filed by Sam's Town and Flamingo Hilton casinos in Kansas City; Argosy Riverside Casino; Harrah's North Kansas City Casino; and Players and Harrah's casinos in Maryland Heights. They hope to block the Gaming Commission from undertaking disciplinary action to revoke their licenses.

Commission Chairman Robert Wolfson proposed action earlier this month. A proposed resolution states the casinos "shall be ordered to cease and desist from conducting games of chance" since their boats are anchored in artificial ponds off the river, known as "boats in a moat."

The commission was to hear the first proposal Jan. 9, but Kinder issued a temporary prohibition to consider the suits.

Deputy Attorney General John Munich filed motions to dismiss the suits. His brief states the Gaming Commission has the authority to proceed with disciplinary action.

"Moreover, the respondents have not exhausted their administrative remedies," according to Munich's brief. "In fact, they seek to have the court prevent the commission from even beginning the process that will lead to a final agency decision."

Kinder said Tuesday he assumes it's the Gaming Commission's responsibility to determine punishments.

Thomas Rynard, an attorney for Harrah's, said he expects Kinder to consider the state's motions to dismiss. If those are denied, Rynard said, Kinder could rule on the casinos' request for a permanent prohibition.

"[Harrah's] built facilities in compliance with what the Gaming Commission told them," Rynard said. "They have a license and they're acting in accordance with that license."

David Frantze, who represents Sam's Town, said the commission should conduct a thorough investigation of the facts before proposing disciplinary action. That investigation should clear Sam's Town, which is moored in a slip built on the Missouri River, Frantze said.

"If they had to close down the facility, they'd open the slip and sail back into the river," he said. But not all the moat-based boats can sail or even be moved.

The commission could let the casinos operate games of skill such as blackjack which the court has held the constitution allows. Slot machines and roulette, however, would be banned. Since 72 percent of casino winnings are from slot machines, banning them would likely shut them down, said Rep. Todd Akin, R-St. Louis County.

Akin questioned why the Gaming Commission is pursuing disciplinary action against the boats.

"Simply say, 'Because your facilities are not on the river, we have no authorization to license you,'" said Akin, a gambling opponent and plaintiff in the case decided by the Supreme Court. "Casinos expect their clients to abide by rules in the casinos, but the casinos won't abide by our constitution."

The outcome of these suits should not affect Davis Gaming's construction of a casino in Boonville. Frank Gardner, vice president for marketing, said Davis is proceeding with plans to anchor its casino in the Missouri River.