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Rockaway Beach group files for gambling

By Daniel Michaels, May 20th 2005
Rockaway Beach — Gambling advocates have filed a petition with state officials to begin the process of putting a Rockaway Beach casino up for a statewide vote in November 2004.
Approval would enable a constitutional change to allow a floating facility within a moat in the White River inside city limits. In addition to state approval, voters in Rockaway Beach would have to approve the casino and it would have to be licensed by the Missouri Gaming Commission.

"It's going to create 900 good-paying, not seasonal jobs with a $24 million payroll," said Jim Druck, president of Southwest Casino and Hotel Corp, the company selected by city officials to be the project's developer. "We have broad support amongst the people benefitting from our efforts."

The casino faces strong opposition that likely will fight the issue if it makes it to the ballot, but Missouri's voters have a record of approving Constitutional changes for gambling.

In 1994, casinos on the Missouri and Mississippi rivers got the green light by a vote of 943,600 to 807,707. In 1998, 55 percent of voters approved casinos in enclosed waterways known as moats.

Of 25 ballot initiatives for constitutional amendments over the past five years, 18 have been approved.

Peter Herschend, co-owner of Herschend Family Entertainment Co., said he continues to be "unalterably opposed" to gaming anywhere near Branson.

"If this became seen as a gambling area, it would destroy the visitor structure as we know it," Herschend said. "We're talking about people's expectations when they're coming down here. They know this as a family-friendly area, and there are many people who will not vacation in Las Vegas."

Herschend said he's not alarmed that the initiative has been filed.

"I think it will be a difficult issue to get the requisite number of signatures," Herschend said. "It's very expensive to do, and I have been part of several statewide campaigns on issues that were a lot closer to the heart that did not make it."

That includes a campaign to limit roadside billboards.

Herschend also expects strong opposition from churches and other casinos.

"This is strictly supposition, but if I were the gambling interests in St. Louis and Kansas City, I would work very hard to defeat it. There are only so many people who are going to be gambling."

City residents should seek other ways to revive the town, he said.

"Rockaway Beach, because of its unique setting has the potential to be a really great attraction, but gambling isn't the thing that will make it great. Gambling is pretty readily available anywhere now."

Optimistic proponents

The Colorado-based Southwest Casino was one of three companies that answered the Rockaway Beach's request for proposals. Druck said he is optimistic the issue will be approved and doesn't expect opposition from casinos in other cities, but plans to meet with those owners.

"We're hundreds of miles from any competition," Druck said. "I don't see that as a significant issue."

Druck said it's likely that Southwest Casino will hire a company that specializes in collecting signatures, noting the company has $5 million set aside in the project's budget to win approval. He doesn't have a solid estimate of what the cost will be.

The casino will have a positive impact on Branson and the planned lakefront Branson Landing project, he said.

"We believe we will extend the stay of tourists that come to Branson, get another night or two out of them, with more repeats," Druck said. "It's the same kind of concept as Branson Landing. It's critical mass. The more activity there is, the more people who will come, the longer they will stay, the more fun they have and the more often they will come back."

OK by Rockaway

Rockaway Beach voters have already spoken on the issue. In Nov. 2001, they voted 120-56 to look into gambling as a way to restore the town's tourism.

Chuck Walters, owner of the Rockaway Beach Marina, helped spearhead the campaign to bring gambling to town two years ago.

On Wednesday, Walter said he was "extremely" excited that the issue may move forward.

"It will bring a lot of jobs, and that's going to improve the economy for the whole area, all of Taney County," Walter said.

Just in time, he added. This spring, "business is down more from last year," he said.

While some citizens have concerns, change is a better option than stagnation, said Brian Kearney, an alderman and Rockaway Beach native.

"If you aren't willing to grow and change and consider new ideas, as a village, you cease to exist," Kearney said.

Kearney recently visited Cripple Creek, Colo., the site of the Gold Rush Hotel and Casino built by Druck's company.

"I saw a small, historical town, a destination location, quaint, clean and friendly, " Kearney said.

Residents told him the casino has been a plus for the town.

"Although it had changed the town from what they once knew, they weren't negative about it at all," Kearney said. "I don't make light of it because I enjoy the quiet parts of Rockaway, but I think the attributes of growth we will derive from (the casino) will be good. Just different."

Hurdles ahead

Getting a constitutional amendment on the ballot is not a simple matter, said Gayla Vandelicht, co-director of elections for the office of secretary of state.

The initiative petition must first be examined by the state auditor's office and verified legally by the attorney general before it comes back to the secretary of state for final approval as a ballot issue. That could take up to 45 days.

Next, the collection of signatures starts. The initiative's sponsor must get the petition signed by 8 percent of registered voters who voted in the 2000 gubernatorial election. And they must collect signatures in six of the state's nine congressional districts. Sponsors may select which of the districts they want to tap for signatures.

If they collect in the 7th Congressional District that includes Taney County, for example, they would need 22,140 verifiable signatures from the district, Vandelicht said.

The signed petition must be returned to the secretary of state by May 1, 2004, to be eligible for the November election. It is the clerks in each county who verify the signatures, Vandelicht said.

The big fight

If the initiative reaches the ballot, the Washington D.C.-based National Coalition Against Legalized Gambling will be ready to help local opposition organize a campaign to defeat the measure if asked, said executive director Tom Gray.

"This is a very predatory product that scavenges where there are depressed areas," Gray said. "They're waiting to pick you clean."

Now that Missourians have seen the crime and corruption that comes with gambling, "my hope is that it will be easier to fight the expansion of gambling than it was several years ago."

This year, 14 states have turned down proposals for slot machines, lotteries and racetracks, he said.

Also, he predicted, "greed will become a factor. I can't imagine existing riverboat interests supporting this. There's only so much money."

It also helps the opposition that this is a local issue.

"They won't find citizens across the state organizing to bring this in," Gray said. "There's no doubt in my mind that this company is going to have to buy this election like they did other elections."

If the issue passes, the results could be devastating, he said.

"If Missouri doesn't care anymore to hold a high standard, and it seems the state has been seized by the gambling interest, then the state will be known as 'Come to Missouri, and lose your money.'"

By Kathryn Buckstaff

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