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Amendment 5 - Osage River Casino

Thursday, October 10, 2024
Missouri Constitutional Amendment 5: The Osage River Gambling Boat License Initiative

On November 5, 2024, Missouri voters will consider Amendment 5, a proposed constitutional amendment that would allow for the issuance of an additional gambling boat license. If passed, this amendment would permit the construction of a new casino on the Osage River, a significant move in Missouri’s gambling landscape.

About this series…

This is Article #4 in a series of covering the NINE constitutional amendments and propositions that will be included on our November ballot. These articles will be published throughout October and will hopefully help explain what each ballot measure means (beyond the short ballot language we normally get to see). I will NOT be offering opinions on the candidates for office - you're on your own for that ;-)

My website and email list present the "newest" articles first, so this series will likely appear to you in reverse order. If you want to start from the beginning – start with Article #1 and follow the links to read the articles in the order they were published.

Read Article #1

Amendment 5 - The Osage River Gambling Boat License Initiative

On November 5, 2024, Missouri voters will consider Amendment 5, a proposed constitutional amendment that would allow for the issuance of an additional gambling boat license. If passed, this amendment would permit the construction of a new casino on the Osage River, a notable development in Missouri’s gambling regulations.

What Would Amendment 5 Do?

Amendment 5 would enable the Missouri Gaming Commission to issue one more license for a gambling boat. This license would authorize a casino to operate along a section of the Osage River, located between the Missouri River and Bagnell Dam. Under the terms of the amendment, the casino site must meet specific requirements, including being located within an artificial space containing water and positioned near the 100-year base flood elevation, as determined by the Federal Emergency Management Agency (FEMA).

Proponents emphasize that state revenues generated by the issuance of this license would be directed toward early-childhood literacy programs in public elementary schools.

Official Ballot Language

Here is the official ballot language for Amendment 5, as it will appear on the ballot:

Do you want to amend the Missouri Constitution to:

  • Allow the Missouri Gaming Commission to issue one additional gambling boat license to operate on the portion of the Osage River from the Missouri River to the Bagnell Dam;
  • Require the prescribed location to include artificial spaces that contain water and are within 500 feet of the 100-year base flood elevation as established by the Federal Emergency Management Agency;
  • Require all state revenues derived from the issuance of the gambling boat license to be appropriated to early-childhood literacy programs in public institutions of elementary education?

State governmental entities estimate one-time costs of $763,000, ongoing costs of $2.2 million annually, initial fee revenue of $271,000, ongoing admission and other fee revenue of $2.1 million annually, and annual gaming tax revenue of $14.3 million. Local governments estimate unknown revenue.

Proposed Constitution Amendment Text

The underlined text is proposed to be added to the existing Section 39(e) of the Missouri State Constitution

Text of Section 39(e): Riverboat Gambling Authorized on Missouri and Mississippi Rivers--Boats in Moats Authorized

1.The general assembly is authorized to permit upon the Mississippi and Missouri Rivers only, which shall include artificial spaces that contain water and that are within 1000 feet of the closest edge of the main channel of either of those rivers, lotteries, gift enterprises and games of chance to be conducted on excursion gambling boats and floating facilities. Any license issued before or after the adoption date of this amendment for any excursion gambling boat or floating facility located in any such artificial space shall be deemed to be authorized by the General Assembly and to be in compliance with this Section.

2. Notwithstanding any other provision of law to the contrary, lotteries, gift enterprises, and games of chance may be conducted on excursion gambling boats and floating facilities licensed by the Missouri Gaming Commission upon the portion of the Osage River from the Missouri River to the Bagnell Dam, which shall include artificial spaces that contain water and that are within 500 feet of the 100-year base flood elevation as established by the Federal Emergency Management Agency.

3. Notwithstanding any other provision of law to the contrary, in addition to such licenses as have been authorized prior to January 1, 2024, the Missouri Gaming Commission shall issue one additional excursion gambling boat license. Such license shall only be issued to an excursion gambling boat that will operate upon the portion of the Osage River from the Missouri River to the Bagnell Dam.

4. Notwithstanding any other provision of law to the contrary, all state revenues derived from the issuance of excursion gambling boat licenses issued after January 1, 2024 shall only be appropriated to early-childhood literacy programs in public institutions of elementary education and shall not be included within the definition of "total state revenues" in section 17 of article X of this constitution.

5. The state auditor shall perform an annual audit of the revenues received and appropriated pursuant to this section to ensure they are being used only for authorized purposes. The state auditor shall make such audit available to the public, the governor, and the general assembly.

Economic and Job Impact

The proposed casino could have an economic impact on that region. Supporters estimate that the casino’s construction would create approximately 500 temporary jobs and 700 permanent jobs once operational. State projections suggest that the casino could generate about $14.3 million annually in gaming tax revenue, alongside $2.1 million in other fees and admissions. These funds would be earmarked for early-childhood literacy programs.

Funding and Support

The campaign for Amendment 5 has received significant financial backing. In October 2024, Bally’s Corporation contributed $1 million to the effort. Other contributions included $500,000 each from Osage Landing Development Co. and RIS Inc., bringing the total raised to more than $2 million. Supporters argue that the new casino would enhance tourism and create a year-round entertainment venue, providing economic benefits for the Lake of the Ozarks area.

Potential Competition and Concerns

While supporters see Amendment 5 as a way to boost the local economy, there is potential competition from the Osage Nation, which has proposed building a tribal casino in the same region. The Osage Nation's project is still awaiting approval from state and federal officials. If both casinos move forward, they could compete for visitors and revenue, raising questions about market saturation in the Lake of the Ozarks area.

Additionally, some critics raise concerns about expanding gambling in Missouri, noting potential social consequences such as gambling addiction and economic strain on lower-income residents. The Osage Nation has not formally opposed Amendment 5 but is carefully monitoring the situation.

Current Missouri Casino Laws

Missouri currently limits the number of casinos to 13, all of which must be located on or near the Missouri and Mississippi rivers. These regulations were set by Proposition A in 2008, which capped the number of licenses and increased the tax rate on casino revenue to support education. If passed, Amendment 5 would be the first time the limit has been increased since then, allowing for a casino to operate on the Osage River.

Tax Revenue for Education

Proponents of Amendment 5 emphasize the potential educational benefits. All state revenues from the issuance of the new license would be dedicated to early-childhood literacy programs in public schools. Supporters argue that this funding could help address educational disparities, particularly in underserved communities. However, the exact impact of these funds on Missouri’s overall education budget remains to be seen.

Broader Context

Missouri voters have a history of deciding on gambling-related ballot measures, including several regarding riverboat casinos. Since 1992, there have been six ballot measures about riverboat casinos, with voters approving four and rejecting two. The last major change to casino regulations came with Proposition A in 2008, which removed the state’s $500 buy-in limit and capped the number of casinos. Amendment 5 represents another potential shift in the state’s gambling policies.

Conclusion

Amendment 5 offers Missouri voters a chance to weigh the potential benefits of expanded gambling against concerns about market competition and social consequences. Proponents argue that the new casino would create jobs, generate revenue for education, and enhance tourism at the Lake of the Ozarks. Opponents, while not organized, may highlight concerns about competition with tribal casinos and the broader social implications of expanding gambling in the state.

As with any significant policy decision, voters must carefully consider both the potential economic benefits and the possible downsides of adding another casino to Missouri's landscape.

Where to Find More Information

To learn more about Missouri Constitutional Amendment 5, including detailed explanations, financial contributions, and arguments from supporters and opponents, you can visit the following resources:

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