Continue to Hold Missouri Gambling to the Limit

By Evelio Silvera

Missouri voters and legislators wisely put restrictions on casinos, recognizing the strong tendency toward addiction and suicide connected with gambling, along with the problems of crime, political corruption, and economic devastation for families. However, close to fifteen years of pressure from casinos has led to the removal of all restrictions except the $500 loss limit.

Experts in the field of gambling addiction treatment credit Missouri as having a unique and wise approach to controlling the all too common destructiveness of gambling. While the loss limit remains as the only protection against increased crime and addiction, some Missouri legislators seek its removal.

Under Missouri law, the loss limit states that casino gamblers can lose up to $500 every two hours. If a gambler loses $500 before the two hours are up, they must stop gambling. When the two hour time period has passed, they are free to lose another $500. This allows a gambler to lose $6,000 per day and $42,000 per week in Missouri casinos, already more than enough for a family to lose. Without the loss limit in place a gambler could potentially lose hundreds of thousands of dollars in a single day, costing them their home, business and other possessions. These losses not only affect the gambler themselves, but can have serious economic and social repercussions throughout their family and community.

The idea that lawmakers would want to remove the loss limit and expand gambling encouraging their own citizens to lose large amounts of money so government could potentially pocket more taxes is a truly bad piece of public policy. According to Valerie C. Lorenz, Ph.D of the Compulsive Gambling Center, Inc. of Maryland, "Removing loss limits at gambling establishments will lead to an increase in compulsive gambling and an escalation of the gambling by those individuals in the early throes of addiction."

The dangerous environment created by removing the loss limit directly effects not only the gambler but their families. Edward J. Looney, Executive Director of the Council on Compulsive Gambling of New Jersey, Inc. warns, "To increase the limit from $500 to no limit would be disastrous for problem and compulsive gamblers and their families." The loss limit provides a “cool down” period for a gambler, keeping them from escalating their problem and gambling away their entire bank account in one day.

In addition to the costs of gambling addiction borne by the individual and their family, there are broader costs to society. A 2001 study by two economists, Grinols and Mustard, from the Universities of Georgia and Illinois, suggest through their method of calculating the cost of casino gambling addicts in the U.S., that Missouri's annual cost may easily be $800 million. The costs they enumerate are crime, suicide, bankruptcy, courts, prosecution, etc. Even if casino taxes to state government were $300 million, the costs far outweigh the income. No business can operate with a negative bottom line, especially our state government.

Most importantly, the loss limit is a significant deterrent to the use of Missouri casinos as a vehicle for illegal money laundering. An investigation by the United States General Accounting Office concluded that, "As the amount of money wagered annually has increased, casinos may have become more vulnerable to individuals who attempt to launder their illegal profits in the fast-paced environment of casino gaming." Missouri Attorney General, Jay Nixon explains, “Casinos – and in particular, those without loss limits – can provide an attractive and convenient means for drug dealers, organized crime, and even potential terrorists to ‘launder’ money derived from criminal activity.”

While there are some legislators in Jefferson City who are determined to remove the loss limit at any cost, you can make a difference. It is still possible for caring Democrats and Republicans to vote against any proposal or amendments to remove the loss limit. This will only take place if the people of Missouri rise up and let their voice be heard loud and clear during this legislative session. Time is of the essence.

Here is what you can do. Call and write your State Representative and State Senator and tell them to PROTECT THE $500 LOSS LIMIT, period.

Evelio Silvera is the Executive Director of Casino Watch, Inc., the only Missouri organization solely dedicated to exposing the dark side of gambling. For more information and directions on how to contact your legislator, visit www.casinowatch.org.