Riverfront Gaming

Riverfront Gaming revenues come primarily from three sources: 1) the local share of the state gaming tax, 2) the local share of the state admissions tax, and 3) the lease agreement with the City Port Authority

Discussion

Riverboat gaming on the St. Louis riverfront began in May, 1994 with the opening of President Casino's Admiral riverboat. The variety of games was somewhat limited until "games of chance" (e.g. slot machines) were permitted by law beginning in December, 1995. The State of Missouri imposes a 20% tax on the adjusted gross receipts (AGR) of riverboat gambling facilities as well as a $2 head tax on the number of admissions. By state statute, the City receives a 10% share of the state tax or 2% of AGR. The City is also entitled to one-half the state admission fee or $1 per admission. The City receives an additional 2% of AGR through a lease the between the riverboat operator and the City's Port Authority.

Two major factors affecting the City's receipts from riverboat gaming are the level of competition from other gaming facilities in the area and river stage levels that may periodically limit access to the riverboat. In FY98, a barge accident caused the temporary closure of the Admiral. With gaming activities anticipated to be suspended for a period of one month, the net loss in gaming is expected to be about $450,000.