COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:0925H.01I Bill No.:HJR 23 Subject:Gambling; Boats and Watercraft; Constitutional Amendments; Business and
Commerce; Licenses - Miscellaneous
Type:Original Date:March 6, 2023Bill Summary:Proposes a constitutional amendment authorizing excursion gambling boats
and floating facilities on the osage river.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2024FY 2025FY 2026
General Revenue*
$0 or (More than
$10,000,000)**
$0$0Total Estimated Net
Effect on General
Revenue
$0 or (More than
$10,000,000)**$0$0
*The potential fiscal impact of “(More than $10,000,000)” would be realized only if a special
election were called by the Governor to submit this joint resolution to voters.
**SOS has updated the estimated cost of a statewide special election after examining actual
reimbursement costs for the General Primary and General Election held during 2022.
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Gaming Commission
Fund
$0 or
$652,015
$0 or
$861,648
$0 or
$861,648
Gaming Proceeds for
Education Fund
$0 or
$6,808,944
$0 or
$13,617,887
$0 or
$13,617,887
Highway Fund$0 or Unknown$0 or Unknown$0 or UnknownTotal Estimated Net
Effect on Other State
Funds*
$0 or Could exceed
$7,460,959
$0 or Could exceed
$14,479,535
$0 or Could exceed
$14,479,535
The fiscal impact is ranged from $0 (either the joint resolution is defeated by voters or such one
additional excursion gambling boat is not licensed/developed) to projected revenues based on
revenues of a casino in Cape Girardeau.
Numbers within parentheses: () indicate costs or losses. L.R. No. 0925H.01I
Bill No. HJR 23
Page 2 of
March 6, 2023
KC:LR:OD
ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2024FY 2025FY 2026Gaming Commission
Fund*
0 or 12 FTE0 or 12 FTE0 or 12 FTETotal Estimated Net
Effect on FTE
0 or 12 FTE0 or 12 FTE0 or 12 FTE
*Includes three (3) additional FTE for the Missouri Gaming Commission and nine (9) additional
FTE for the Missouri Highway Patrol
☒ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☒ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Local Government$0 or $1,313,059*$0 or $2,626,206$0 or $2,626,206
*Transfer out and transfer in net to zero if the Governor calls a special election in FY 2024.
Also, the fiscal impact is ranged from $0 (either the joint resolution is defeated by voters or such
one additional excursion gambling boat is not licensed/developed) to projected revenues based
on revenues of a casino in Cape Girardeau. L.R. No. 0925H.01I
Bill No. HJR 23
Page 3 of
March 6, 2023
KC:LR:OD
FISCAL ANALYSIS
ASSUMPTION
Officials from the Missouri Gaming Commission (MGC) state this bill adds two new
paragraphs to Article III, Section A, Section 39(e) of the Missouri Constitution, permitting an
excursion gambling boat to be located on the portion of the Osage River between the Missouri
River and the Bagnell Dam. The joint resolution requires the Gaming Commission to issue one
additional gambling boat license (the 14
th
license in the state) for an excursion gambling boat to
be located on the portion of the Osage River between the Missouri River and the Bagnell Dam.
MGC is basing its estimates for anticipated gaming revenues, taxes, and fees of an additional
licensed casino on Century Casino Cape Girardeau in Cape Girardeau, Missouri. The Missouri
Gaming Commission believes Century Casino Cape Girardeau would be comparable in size and
volume of traffic to a casino located on the Osage River, likely near Osage Beach, Missouri
(Lake of the Ozarks).
Anticipated revenue streams from an additional casino include initial licensing and renewal fees
for the Class A Licensee (parent company), the Class B Licensee (Casino Company), Key
Persons and Level I licensees (management), and Level II occupational licensees working at the
casino. These fees would be paid to the Missouri Gaming Commission and deposited into the
Gaming Commission Fund. The Missouri Gaming Commission estimates collecting fees
totaling $271,000 in the first year, followed by ongoing fee collections of $63,100 each year
thereafter.
Oversight has provided a table below to summarize the estimated revenue generated as a result
of this proposal as provided by the MGC: L.R. No. 0925H.01I
Bill No. HJR 23
Page 4 of
March 6, 2023
KC:LR:OD
Fee AmountFY 2024FY 2025FY 2026Fund to
Deposit
Class A
License Fee –
Initial Fee
$50,000$50,000$0$0Gaming
Commission
Fund
Class A
License Fee –
Annual Fee
$25,000$0$25,000$25,000Gaming
Commission
Fund
Key Persons-
Initial Fee –
Estimate 10
$15,000$150,000$0$0Gaming
Commission
Fund
Key Persons-
Initial Annual
Fee- Estimate
10
$250$0$2,500$2,500Gaming
Commission
Fund
Class B
License Fee –
Initial Fee
$50,000$50,000Gaming
Commission
Fund
Class B
License Fee –
Annual Fee
$25,000$0$25,000$25,000Gaming
Commission
Fund
Level 1
License Fee –
Initial Fee –
Estimate 6
$1,000$6,000$0$0Gaming
Commission
Fund
Level 1
License Fee –
Annual Fee –
Estimate 6
$100$0$600$600Gaming
Commission
Fund
Level 2
License Fee –
Initial Fee –
Estimate 200
$75$15,000$0$0Gaming
Commission
Fund
Level 1
License Fee –
Annual Fee –
Estimate 200
$50$0$10,000$10,000Gaming
Commission
Fund
Total Fees
Collected
$271,000$63,100$63,100Gaming
Commission
Fund
The MGC
21% tax on annual gross revenue, to be $15,130,986 each year ($13,617,887 to the State of L.R. No. 0925H.01I
Bill No. HJR 23
Page 5 of
March 6, 2023
KC:LR:OD
Missouri and $1,513,099 to the Home Dock City) and admission fees to be $2,226,214 each year
($1,113,107 to the State of Missouri and $1,113,107 to the Home Dock City) resulting in an
additional $17,357,200 in revenue annually. These numbers are based on the FY 2022 MGC
Annual Report using Century Casino Cape Girardeau data.
MGC notes that 90% of AGR goes to the state (Gaming Proceeds for Education Fund, 0285) and
10% goes to Local Home Dock. MGC also notes that 50% of admission fees go to the state
(Missouri Gaming Commission Fund, 0286) and 50% goes to Local Home Dock.
Oversight, for purposes of this fiscal note, Oversight will use the estimate provided by MGC.
Annual Revenue
from Gambling
Boat
TotalState Portion
(90% of AGR tax)
(50% of admission fee)
Local Home Dock
(10% of AGR tax)
(50% of admission fee)
Estimated Gaming
Tax – 21% of AGR
$15,130,986$13,617,887$1,513,099Estimated Admission
Fees
$2,226,214$1,113,107$1,113,107Total Received
Annually
$17,357,200$14,730,994$2,626,206
The MGC
Electronic Gaming Device Specialist I (at $57,976 annually), one Gaming Financial Analyst I (at
$55,000 annually), and one Administrative Support Professional – Licensing I (at $46,380
annually). The total first year cost of hiring for these three positions is estimated to be
$285,512.21, with a second year and ongoing cost of $273,065.15. Additional Missouri Gaming
Commission operational expenses for the additional casino are estimated to total $20,014.18
Oversight does not have any information to the contrary. Therefore, Oversight will reflect the
FTE as estimated by MGC in the fiscal note.
Officials from the Department of Public Safety - Missouri Highway Patrol (MHP) state that
the Patrol is tasked with enforcing gaming regulations at Missouri's thirteen (13) casinos. This
proposed legislation would add one (1) casino and the Patrol would have expenses related to
staffing the additional casino. Using the current staffing model for the other casinos around the
state, the Patrol is requesting nine (9) additional FTE to staff the additional casino. The one time
and on-going expenses would include salary, fringe, vehicles, gasoline, and related equipment.
In addition to the expense indicated for the nine (9) FTE that will be transferring from Highway
funded positions, it is assumed there will be an unknown savings to the Highway Fund (0644), as
those nine tenured troopers would be replaced with Highway funded probationary troopers.
Oversight will reflect the estimated FTE MHP cost to the Gaming Commission Fund as well as
an unknown savings to the Highway Fund. L.R. No. 0925H.01I
Bill No. HJR 23
Page 6 of
March 6, 2023
KC:LR:OD
Oversight will reflect all revenue and cost as a range from “$0” (this joint resolution does not
pass a vote of the people OR no investors apply to put a casino on the Osage River) or the
revenue or cost estimate provided by MGC and MHP. If this proposal passes, Oversight
assumes a new license would not be issued until January, 2024 (at the absolute earliest) and
therefore will only reflect 6 months of revenue and FTE cost in FY 2024.
According to the Missouri Gaming Commission, pursuant to Section 313.824, RSMo, 11 CSR
45-7.145, and the Memorandum of Understanding between the Missouri Gaming Commission
and the Missouri Highway Patrol, salaries and expenses for the Missouri Highway Patrol
(Gaming Division), will be reimbursed by the casino. Therefore, Oversight will show a
reimbursement to offset the cost incurred by MHP.
Officials of the Office of the Secretary of State (SOS) note each year a number of joint
resolutions that would refer to a vote of the people a constitutional amendment and bills that
would refer to a vote of the people the statutory issue in the legislation may be considered by the
General Assembly.
Unless a special election is called for the purpose, Joint Resolutions proposing a constitutional
amendment are submitted to a vote of the people at the next general election. Article XII section
2(b) of the Missouri Constitution authorizes the governor to order a special election for
constitutional amendments referred to the people. If a special election is called to submit a Joint
Resolution to a vote of the people, section 115.063.2 RSMo requires the state to pay the costs.
The cost of the special election has been estimated to be $10 million based on the cost of the
2022 primary and general election reimbursements.
The Secretary of State’s office is required to pay for publishing in local newspapers the full text
of each statewide ballot measure as directed by Article XII, Section 2(b) of the Missouri
Constitution and Section 116.230-116.290, RSMo. Funding for this item is adjusted each year
depending upon the election cycle. A new decision item is requested in odd numbered fiscal
years and the amount requested is dependent upon the estimated number of ballot measures that
will be approved by the General Assembly and the initiative petitions certified for the ballot. In
FY 2014, the General Assembly changed the appropriation so that it was no longer an estimated
appropriation.
For the FY24 petitions cycle, the SOS estimates publication costs at $70,000 per page. This
amount is subject to change based on number of petitions received, length of those petitions and
rates charged by newspaper publishers.
The Secretary of State’s office will continue to assume, for the purposes of this fiscal note, that it
should have the full appropriation authority it needs to meet the publishing requirements.
Because these requirements are mandatory, the SOS reserves the right to request funding to meet
the cost of the publishing requirements if the Governor and the General Assembly again change
the amount or continue to not designate it as an estimated appropriation. L.R. No. 0925H.01I
Bill No. HJR 23
Page 7 of
March 6, 2023
KC:LR:OD
Oversight has reflected, in this fiscal note, the state potentially reimbursing local political
subdivisions the cost of having this joint resolution voted on during a special election in fiscal
year 2024. This reflects the decision made by the Joint Committee on Legislative Research that
the cost of the elections should be shown in the fiscal note. The next scheduled statewide
primary election is in August 2024 and the next scheduled general election is in November 2024
(both in FY 2025). It is assumed the subject within this proposal could be on one of these ballots;
however, it could also be on a special election called for by the Governor (a different date).
Therefore, Oversight will reflect a potential election cost reimbursement to local political
subdivisions in FY 2024. Oversight notes SOS’ $10 million estimate was increased from $7
million in January 2023.
Officials from the Department of Revenue (DOR) state this proposal would allow citizens to
vote at the November 2024 election, to allow an additional casino in the state of Missouri. The
casino would be located on the Osage River. This proposal, if not adopted, would not have a
fiscal impact. Should this proposal be adopted by the voters then the new casino could be
approved starting in December 2024. Casinos do nightly deposits with the Department. This
would increase the number of nightly deposits received by the Department but is not expected to
require additional administrative resources to implement.
Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero
impact in the fiscal note to DOR.
Officials from the Joint Committee on Administrative Rules assume this proposal is not
anticipated to cause a fiscal impact beyond its current appropriation.
Officials from the Missouri Lottery Commission, the Jackson County, Platte County, St.
Louis County and the St. Louis City Board of Election each assume the proposal will have no
fiscal impact on their respective organizations. Oversight does not have any information to the
contrary. Therefore, Oversight will reflect a zero impact in the fiscal note for these agencies. L.R. No. 0925H.01I
Bill No. HJR 23
Page 8 of
March 6, 2023
KC:LR:OD
FISCAL IMPACT – State GovernmentFY 2024
(6 Mo.)
FY 2025FY 2026GENERAL REVENUE FUNDTransfer Out - SOS - reimbursement of local
election authority election costs if a special
election is called by the Governor p. 6-7
$0 or (More
than
$10,000,000)$0$0
ESTIMATED NET EFFECT ON
GENERAL REVENUE
$0 or (More
than
$10,000,000)
$0$0
GAMING COMMISSION FUND (0286)Revenue – MGC
Licensing Fees p. 3-4
$0 or
$271,000
$0 or
$63,100
$0 or
$63,100
Revenue – MGC
Admission Fees (50% of total) p. 5
$0 or
$536,203
$0 or $1,072,405$0 or $1,072,405Revenue - MHP p. 5 Reimbursement for services at the Casinos$0 or
$983,414
$0 or
$1,683,401
$0 or
$1,713,140
Cost - MGC p. 5 Salaries$0 or
($79,678)
$0 or
($159,356)
$0 or
($159,356)
Fringe Benefits$0 or
($52,446)
$0 or
($104,891)
$0 or
($104,891)
Equipment and Expense$0 or
($3,050)
$0 or
($7,234)
$0 or
($9,610)
Other 1 time Cost$0 or
($20,014)
$0$0Total Cost – MGC$0 or
($155,188)
$0 or
($273,857)
$0 or
($273,857)
FTE Change – MGC0 or 3 FTE0 or 3 FTE0 or 3 FTECost – MHP p. 5 Salaries$0 or
($321,300)
$0 or
($786,542)
$0 or
($802,273)
Fringe Benefits$0 or
($286,118)
$0 or
($700,416)
$0 or
($714,424 L.R. No. 0925H.01I
Bill No. HJR 23
Page 9 of
March 6, 2023
KC:LR:OD
Equipment and Expense$0 or
($375,996)
$0 or
($196,443)
$0 or
($196,443)
Total Cost – MHP$0 or
($983,414)
$0 or
($1,683,401)
$0 or
($1,713,140)
FTE Change – MHP0 or 9 FTE0 or 9 FTE0 or 9 FTEESTIMATED NET EFFECT TO THE
GAMING COMMISSION FUND (0286)
$0 or
$652,015
$0 or
$861,648
$0 or
$861,648
Estimated Net FTE Change to the Gaming
Commission Fund
0 or 12 FTE0 or 12 FTE0 or 12 FTEGAMING PROCEEDS FOR EDUCATION
FUND (0285)
Revenue – MGC
90% of 21% AGR tax p. 5
$0 or $6,808,944$0 or
$13,617,887
$0 or
$13,617,887
ESTIMATED NET EFFECT TO THE
GAMING PROCEEDS FOR EDUCATION
FUND
$0 or $6,808,944$0 or
$13,617,887
$0 or
$13,617,887
HIGHWAY FUNDSavings – MHP
Probationary Trooper Replacement
p. 5
$0 or Unknown$0 or Unknown$0 or UnknownESTIMATED NET EFFECT TO THE
HIGHWAY FUND
$0 or Unknown$0 or Unknown$0 or Unknown L.R. No. 0925H.01I
Bill No. HJR 23
Page 10 of 11
March 6, 2023
KC:LR:OD
FISCAL IMPACT – Local GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026LOCAL POLITICAL SUBDIVISIONSRevenue – Home Dock
10% of 21% AGR tax p. 5
$0 or
$756,505
$0 or
$1,513,099
$0 or
$1,513,099
Revenue – Home Dock
50% of admission fees p. 5
$0 or
$556,554
$0 or
$1,113,107
$0 or
$1,113,107
Transfer In - Local Election Authorities -
reimbursement of election costs by the
State for a special election p. 6-7
$0 or More
than
$10,000,000*
$0$0
Costs - Local Election Authorities - cost
of a special election if called for by the
Governor p. 6-7
$0 or (More
than
$10,000,000)*$0$0
ESTIMATED NET EFFECT ON
LOCAL POLITICAL SUBDIVISIONS
$0 or
$1,313,059
$0 or
$2,626,206
$0 or
$2,626,206
*SOS has updated the estimated cost of a statewide special election after examining actual
reimbursement costs for the General Primary and General Election held during 2022.
FISCAL IMPACT – Small Business
There could be some positive impact to small businesses near a new gaming facility.
FISCAL DESCRIPTION
Current law authorizes the General Assembly to permit gambling on excursion gambling boats
only upon the Mississippi and Missouri Rivers. This constitutional amendment, if approved by
the voters, would allow gambling to occur on excursion gambling boats on the portion of the
Osage River from the Missouri River to the Bagnell Dam.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Revenue
Department of Public Safety
Missouri Gaming Commission
Missouri Highway Patrol L.R. No. 0925H.01I
Bill No. HJR 23
Page 11 of 11
March 6, 2023
KC:LR:OD
Office of the Secretary of State
Jackson County
Kansas City
Platte County
St. Louis County
Missouri Lottery Commission
Julie MorffRoss StropeDirectorAssistant DirectorMarch 6, 2023March 6, 2023