Refunds, reduction in fees sought

THE ASSOCIATED PRESS

ST. LOUIS -- Missouri's riverboat casinos say they're being overcharged by state gaming authorities -- and are asking the state's high court to lower their tax burden.

In a lawsuit before the Missouri Supreme Court, the riverboats say the boarding fee of $2, charged to every person entering the casino, is too high. They claim the 50 percent of this fee that goes to the state was designed only to cover the administrative costs of the Missouri Gaming Commission. The Supreme Court began hearings Wednesday.

The boarding fee is currently producing a substantial surplus for Missouri -- in 1999, $40.7 million of the $53.6 million collected went to sources other than the commission. Uses of those funds include education, veterans' programs and college scholarships.

The excess fees "should be remitted or reduced to a reasonable approximation of the cost" of regulating gaming, said Bill Brasher, an attorney representing President Riverboat Casino in St. Louis.

Also, the casinos have already argued for a refund of all surplus payments, which officials say could cost Missouri up to $150 million.

But state officials argue the casinos knew the surplus would be used for other purposes.

"That was clearly the intent, and the casinos knew it going in," said state Sen. Wayne Goode, chairman of the Senate Appropriations Committee. "I feel the state is in a pretty good position."

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