Thursday, April 1, 2004 | 11:30 a.m.
Three Las Vegas-based casino operators looking to build a new St. Louis-area casino are in Missouri today, taking state officials on tours of their planned casino sites.
Today's site tours follow Wednesday's public hearing in St. Louis, at which the prospective operators made brief presentations to the Missouri Gaming Commission, pitching the regulators on their plans.
Harrah's Entertainment Inc., Pinnacle Entertainment Inc., and Riviera Holdings Corp. are the three Las Vegas-based companies competing against Mississippi-based Isle of Capri Casinos for the opportunity to build casinos in the greater St. Louis area.
Missouri law gives the state Gaming Commission the power to decide the number, locations and types of casinos it licenses. The Missouri-regulated side of the St. Louis market has three casinos, with two additional gambling boats on the Illinois side of the Mississippi river.
The commission's staff first studied the market and determined that it could support a new casino.
Despite having 77 percent of metropolitan St. Louis' adult population as well as 77 percent of the market's gaming positions (a number that equals the number of slot machines plus the number of table game seats or betting positions), Missouri casinos generate only 67 percent of the market's gaming revenue.
The St. Louis market, including two riverboat casinos on the Illinois side of the river and three casinos in Missouri, generated $827 million in fiscal 2003 gaming revenue during the 12-month period ended June 30, up 5.6 percent from the $783 won in fiscal 2002.
The market won $719 million from gamblers in fiscal 2001 and $669 million in fiscal 2000, according to the commission's reports.
The four companies are now trying to persuade local governments and the commission that their plans best suit the needs of Missouri and greater St. Louis.
The commission's evaluation of the applicants is based on: the support received from local governments, the suitability of the location, applicants' financial resources, applicants' gaming experience, statewide and local economic impact and the quality and scope of the proposed projects, commission spokesman Harold Bailey said in a statement.
Harrah's Chief Executive Gary Loveman traveled to St. Louis on Wednesday for his company's presentation, with other bosses conducting the company's site tour today, company spokesman Gary Thompson said.
Harrah's is pitching a $275 million hotel-casino south of St. Louis near Jefferson Barracks, a site Thompson said has convenient access to Interstate highways and is far enough away from existing Missouri casinos to minimize cannibalization of their business.
Harrah's projects its planned hotel-casino would annually generate $54 million in gaming taxes, $13 million in admission taxes and would create 600 construction jobs.
After opening, the Harrah's property would employ 1,300 people.
"It's the right size project for the market," Thompson said.
The company's big advantage is Harrah's Entertainment itself, he said.
"We've got a 67-year history of industry leadership, and arguably have the best-known brand in gaming," Thompson said. "And we're the only applicant with experience in the St. Louis market."
Isle of Capri executives and Pinnacle executives weren't immediately available for comment.
Like Harrah's, Isle also plans to build near Jefferson Barracks, proposing a $167 million complex.
In 2000, Isle was tabbed by the commission to build a casino near Kimmswick, also in Jefferson County, but the agency withdrew its selection after local residents complained about the site.
Pinnacle proposes two casinos, a $200 million project in downtown St. Louis and a $300 million hotel-casino south of the city in Lemay.
Riviera's plan calls for a casino located the greatest distance from downtown St. Louis, in Barnhart, which company Chief Financial Officer Duane Krohn said was about 22 miles south of the Gateway Arch.
Riviera Holdings Chairman and Chief Executive Bill Westerman and Riviera Gaming Management President Ron Johnson presented the Riviera pitch on Wednesday, Krohn said.
Like Harrah's, Riviera executives are pitching their site's distance from existing casinos, arguing that the Barnhart site would steal less business from Missouri competitors.
Riviera bosses also are confident because their development agreement with Jefferson County promises that the county government will recommend the project.
Krohn said he expects Missouri officials to make a final site decision following extensive project presentation hearings slated for the middle of May.
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