Blotter: Missouri may force casino closure

Officials with the Missouri Gaming Commission may force the President Casino near downtown St. Louis to close its doors by revoking its state gambling license. The revocation would not serve as punishment for violation of any state gaming laws; rather, the state would pull the President's license because its income streams have not met with expectations. The riverboat casino has under-performed for several months and has not produced the level of tax revenue the state desires.

According to gambling industry observers, the shutdown would be the first state-mandated casino closure in US history due to economic issues. The President, a refurbished riverboat that sits docked on the Mississippi River, was among the first casinos in the state. However, the expansion of gaming in the area, including Lumiere Place just a few miles away, have pulled customers away from the "old boat".

The previous owners of the President were in bankruptcy court in 2006 when Pinnacle Entertainment, owners of Lumiere Place and other casinos around the country, purchased the casino's assets. Since then, income from the President has dropped by two-thirds. The steep drop forced state gaming officials to start looking for other alternatives to compensate for the lost tax revenues.

The Gaming Commission cites a portion of the state's gaming law that says that they can revoke a casino license if the owners' behavior becomes "injurious" to the state. Some gaming officials believe that, since Pinnacle was not taking enough action to raise revenues at the president, the loss of tax income from those revenues created an "injurious" condition.

William Eadington, a professor of economics at the University of Nevada, said that the "injurious" clause is not nearly specific enough and gives the state too much power over the fate of failing casinos. He also said that, with the state exercising so much control over the casino industry there, larger casino conglomerates may think twice about establishing new facilities in Missouri, which could cause even more harm to the state's economy.

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