Casino raises fault lines in Lake Ozark – Columbia Missourian
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Drone footage of an empty lot, which may become the site of an Osage Nation casino, on March 21 at the intersection of Osage Beach Parkway and Bagnell Dam Boulevard in the Lake of the Ozarks. Advocates in favor of legislation permitting construction of another casino argue that the business would offset the costs of the economic off-season that the region experiences each year.
Lorie Chittenden on the porch of Port Elsewhere Resort on Feb. 28 in Lake Ozark. Chittenden manages the resort and observes that the area already contends with “people that forget their minds when they’re here.”
Mikki Moore poses for a portrait in the drive-in of the Regalia Hotel and Conference Center on Feb. 28 in Lake Ozark. Moore is the general manager of the hotel and wonders why legislation would only allow one applicant to run a casino, apparently leaving locals out.
LAKE OZARK — This community is quietly at odds as its future as a tourism hotbed carries feelings of expectation and exasperation.
There is a visible divide between residents who foresee a more stable, vibrant local economy with a growing entertainment industry and those who foresee coming social costs of criminality and vice, leaving their cherished community worse off for it.
The idea of gambling rolling into Lake Ozark is the most contentious idea by far.
This is a town known for its rowdiness in the summer months: Boat races, biker rallies, pool-side concerts, drinking excursions, fishing tournaments, car shows and the like bring in millions for summer fun — well over 9 million in 2020 alone, during a pandemic to boot.
Lake Ozark has a reputation for criminality underneath the surface of its playful demeanor — human and drug trafficking, to be exact.
This sort of reputation can be seen most clearly in the popularity of the Netflix series Ozark, a dramatic tale of a multi-billion-dollar cartel enterprise at the lake. Residents the Missourian spoke with made frequent references to Ozark’s murky past.
Opponents of a casino in Lake Ozark point to the potential for more vice and excess. This view has been voiced primarily by residents who value a family-oriented, fun but wholesome atmosphere.
Rick Moss, a previous Lake Ozark alderman, stood before his colleagues at a city hall public meeting and described gambling as a “snare,” and a path “that will not lead us to greatness.” Moss said that the city needed to “slow down” and try to understand the effects of gambling before reaching a decision.
Holding onto that ideal may prove difficult as the likelihood of a casino being built on the lake has been growing as the Missouri General Assembly considers legislation to allow a casino on the Osage River, while the Osage Nation is well into its petition with the federal government to open one as well. What type of casino and how many will be built is not yet clear.
A difficulty for opponents is the problem of stagnation. Lake Ozark experiences a recurring economic off-season, a problem that draws the ire of business owners and state representatives alike. It’s not uncommon for businesses on the strip to close their doors once all the bustle packs up and leaves, and for revenue to plummet. The lake in its off-season this time of year feels like dust and mud waiting for summer, with resorts barren, party pools drained, and expensive boats docked and waiting for their owner’s return.
Supporters of a casino say it carries the promise of making this off-season viable for more sustained enterprise, and not only for business owners. Employees have been promised more long-term, competitively waged jobs that currently are lacking. This could make the lake a more promising place to build a life.
Drone footage of an empty lot, which may become the site of an Osage Nation casino, on March 21 at the intersection of Osage Beach Parkway and Bagnell Dam Boulevard in the Lake of the Ozarks. Advocates in favor of legislation permitting construction of another casino argue that the business would offset the costs of the economic off-season that the region experiences each year.
The decision, pro or con, is largely out of the hands of residents. Approval of a new state-licensed casino operation requires an amendment to the Missouri Constitution, meaning the entire state will decide the question.
The Lake Ozark Board of Aldermen has already provided its unanimous support to joint resolutions in the Missouri House and Senate to ask voters to approve a state-licensed casino (SJR 14 & HJR 23).
At the same time, the Osage Nation — with several Oklahoma casinos — is seeking federal Department of the Interior approval of its claim to sovereignty for their own tribe-owned casino in the area. No Missourians vote on this matter.
The Osage Nation purchased and cleared a plot of land only two minutes from the entrance to the city off Highway 54. This would put a multi-million-dollar casino in spitting distance of the Lake Ozark sign, a Hollywood-like sign perched over the city’s entrance — it could be a symbol of Lake Ozark’s trajectory.
At a March 7 House committee hearing, Osage CEO Kimberly Pearson said that renderings of the $60 million tribe casino supplied by the Osage nation were made to reflect real architectural plans; and that promises of a casino hotel and convention center will be fulfilled. It’s no stretch to say that these additions could be a boon for local businesses, being minutes from Ozark’s main strip and next to piers, helicopter flight services and restaurants.
In the view of Lake Ozark Mayor Dennis Newberry, “they wouldn’t have put the cart in front of the horse — they wouldn’t purchase such property without feeling assured of their application.” Thus, there is a feeling of inevitability that gambling is on its way.
Newberry said as much to a packed room of constituents at Lake Ozark City Hall on March 7.
“If we can’t stop (a tribe) casino, but we can support another casino that brings a hell of a lot of taxes?” said Newberry. “I don’t think it’s up to this board to say no, I think it’s up to the citizens of Missouri to say that.”
Sponsor of SJR 14, Sen. Justin Brown, R-Rolla, rationalizes his bill, which only allows for one casino license, as a way to “level the playing field” with a tribe-owned casino. Those in favor of a state-licensed enterprise believe that if gambling is already on its way, they might as well put in a more directly tax-responsive enterprise and capitalize.
In a phone conversation with the Missourian, Newberry expressed his desire to see Lake Ozark “reclaimed” as a “destination” for Missouri tourism, and that the taxes yielded from a state-licensed casino would be used to resuscitate Lake Ozark’s fading infrastructure. Newberry expects that taxes could go to sewage, roads, emergency services, education and more.
Newberry was quoted at a House Committee hearing on March 8 as expecting $2.5 million annually in additional tax revenue for the city should a state-licensed casino be opened. “You have to recognize, that’s a hell a lot of money,” he said.
Those who want a state-licensed casino are concerned that without economic stimulation, opportunities for growth will not come along naturally. City Administrator and Lake Ozark Alderman Harrison Fry described Lake Ozark’s on- and off-seasons as “a tale of two cities,” and that Ozark business members he speaks with are frequently in support of year-round attractions.
“This (casino) just fits,” Fry said. “Get rid of the tax question, get rid of the economic benefit, it just fits the culture of the Lake of the Ozark.”
For some, more casinos are not the merrier.
Ron Leone, executive director of the Missouri Petroleum Marketers and Convenience Store Association spoke at a Senate committee hearing on SJR 14 in February, advocating for the creation of a state-licensed casino and the rejection of a tribe-owned casino.
Leone said that he expects that the tax advantages enjoyed by a tribe casino — no fuel, estate, sales or room tax — would result in local businesses that provide similar services being unable to compete, making it “devastating to the local tax base.”
Kimberly Pearson, CEO of Osage Casinos, later released an op-ed alluding to “racist and false claims” from “one individual” at the hearing “who suggested Native Americans were not the type of business owners Missourians want.”
In a statement provided to the Missourian, Pearson said that an Osage casino will pay payroll taxes, plan to enter into agreement with local fire, EMS, police, and utilities agencies for compensation in lieu of taxes; and will “serve as a new revenue engine.”
Residents that the Missourian spoke to are much less cut-and-dry about the casino industry.
Mikki Moore, general manager of Regalia Hotel and Conference Center, was not convinced of claims made by either party. Moore said that the Missouri legislators involved are being “narrow-sighted” by providing a license for only one “deep-pocket” interest “that’s not even from here.”
Mikki Moore poses for a portrait in the drive-in of the Regalia Hotel and Conference Center on Feb. 28 in Lake Ozark. Moore is the general manager of the hotel and wonders why legislation would only allow one applicant to run a casino, apparently leaving locals out.
Moore said that he isn’t convinced that merely one or two casinos will give Lake Ozark a stronger economic off-season, nor does he believe casinos will ruin the lake.
“If you’re gonna amend (the constitution) to give one license? That’s an unfair advantage to someone who can crush everyone else,” he said.
Moore questioned why local hotels and resorts — Regalia, Four Seasons, Margaritaville — are being skipped over on opportunities for a casino especially after the difficulty of keeping his 50 employees, whose livelihoods he spoke of often, on his payroll during COVID-19.
Brown did not respond to several requests for comment about the single license for a casino in his bill.
Lorie Chittenden of Port Elsewhere Resort said she wouldn’t be worried about unfair competition with a casino and acknowledged that casinos would bring more tourism. But she said that tourism at the lake is already doing the job of economic stimulation in the warmer seasons.
Lorie Chittenden on the porch of Port Elsewhere Resort on Feb. 28 in Lake Ozark. Chittenden manages the resort and observes that the area already contends with “people that forget their minds when they’re here.”
Her issue, she said, is that Lake Ozark already contends with “people that forget their minds when they’re here.”
Chittenden noted that throughout raising her children here, she has seen an increase in what she termed “incidents” — an allusion to irresponsible adult behavior — and that a new adult entertainment center wouldn’t be helpful.
“Right now people feel safe just going up the strip with their kids and walking around — and if you get too many people, it’s going to begin to be different,” she said.
Timothy Faber of the Missouri Baptist Assocation and Ozark resident Joe Roeger also testified in opposition at the committee hearing of SJR 14.
When reached by the Missourian, Roeger said that the social costs of “pathological gamblers” or gambling addicts is “well documented.”
Faber claimed that should a mere 2% of gamblers be pathological, the gains in revenue promised in Ozark would be undone by the cost incurred to the city.
Those in favor of a casino industry, such as Tyler Dixon, told local representatives that year-round employment capable of supporting a family is scarce and budding families need the opportunities for growth that come from job security.
Angela Town, owner of Rusty Rooster Cafe, is struggling with keeping staff year-round. “We need people year-round now, and it’s very difficult to find those employees. Very difficult,” she said.
Town said she brought her business from a cash-only enterprise to the modern day, and Lake Ozark is on a track for growth and change. Town isn’t convinced that those in opposition were doing much else besides resisting change for its own sake with no alternatives to offer.
“We definitely have to keep the community in mind, but I don’t know that (those in opposition) do a good job of that already.”
Noting that her business had donated $5,000 to Winterfest, a donation that went toward many local charities, she asked of opponents, “So why weren’t you guys there? Because Osage Nation was there — they had a $5,000 table.”
The final version of the House bill does not include regulating video terminals.
Clayton Vickers is a graduate student at the University of Missouri Journalism School, and through his education there he aspires to become a public-affairs journalist of great renown.
Clayton is working in Jefferson City to cover the ongoings of the state legislature and the stories within the community that matter to Missourians. He hopes to utilize his political science background to step into government-accountability reporting that places power into the hands of constituents (at any scale).
Clayton will graduate with his master’s degree in Spring of 2024 after completing an internship with a reputable publication.
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Fred Anklam Jr. manages state government reporters. He can be reached at anklamf@missouri.edu or in the newsroom at 573-882-5720.
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Sports Reporter for Gymnastics and Volleyball, Spring 2021 Studying Investigative Journalism Reach me at tllwww@missuri.edu, or in the newsroom at 882-5700. Or tweet me @t_lo2021
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State Government editor
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