Ameristar updates study on state's 13th casino license location
Tuesday, September 28, 2010 at 10:54:29 AM
Ameristar Casinos, Inc. announced today results of an updated analysis of four locations for the 13th Missouri Riverboat Casino license. The new analysis includes specifics submitted by the four interested gaming operators as well as updated St. Louis and Kansas City gaming market results, and demonstrates that Cape Girardeau remains the best location for the 13th gaming license due to the amount of incremental gaming revenue and associated taxes it will produce.
"A Cape Girardeau casino will generate twice the amount of incremental tax revenue for education in the State of Missouri than will be generated by a North St. Louis-area casino and four times more than will be generated by a Sugar Creek casino," said Troy Stremming, Ameristar's Senior Vice President of Government Relations and Public Affairs. "When considering gaming expansion, it is critical to distinguish between gaming revenue that a new facility takes from existing Missouri-based casinos and how much it takes from casinos in other states or generates as new incremental gaming revenue," Stremming said.
Total forecasted Adjusted Gross Revenue (AGR) for a new Cape Girardeau facility is $88.7 million, of which virtually none would be cannibalized from existing Missouri casinos. The nearest Missouri casino to Cape Girardeau is 80 miles away in Caruthersville. Ameristar estimates that the Sugar Creek casino would derive 81% of its revenue from existing Missouri casinos, the St. Louis proposal 72% and the North St. Louis County proposal 66%. In addition, a license could be promptly issued in Cape Girardeau since there will be no need to consider longer term competitive conditions and economic impacts of new gaming operations in St. Louis and Kansas City.
Ameristar completed its first analysis on May 24, 2010 after Missouri Gaming Commission officials called for existing and potential casino operators to conduct economic impact studies to determine which location would add the most incremental revenue to the state.
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