Linn court dismisses lawsuit against Iowa Racing & Gaming Commission

CEDAR RAPIDS - Local attorney Eugene Kopecky's attempt to take on the Iowa Racing and Gaming Commission and its decision in April to deny a state gaming license for a Cedar Rapids casino has failed in Linn County District Court, at least for now.

Kopecky said Wednesday he's not done.

In his lawsuit filed in July, Kopecky had asked the court to intervene and issue a declaratory judgment against the commission and its April 2014 decision on the Cedar Rapids casino project, arguing that the state's gaming ordinance does not permit the five-member commission to deny a gaming license in a county once voters there voted as directed by state law to approve casino gaming in the county.

Instead, Kopecky argued that the commission's denial of a Cedar Rapids casino in Linn County essentially allowed voters in other counties with casinos to void the Linn County voters' decision when the commission denied the Cedar Rapids casino because the commission believed it would 'cannibalize” business from other casinos in other counties.

Kopecky said the commission's denial was tantamount to allowing voters in counties with existing casinos to 'nullify” the votes of Linn County voters.

The merits of Kopecky's legal arguments, though, will have to wait for another day.

This week, Linn County District Court Judge Nancy Baumgartner ruled that Iowa law and relevant appellate court decisions require Kopecky to first seek an administrative judicial review of his claims with the Iowa Racing and Gaming Commission before he can seek help in court.

Kopecky, who is retired from day-to-day legal practice, said he will seek the administrative review with the state commission in the weeks ahead. The commission can rule for or against his claim or ignore it, he said. If he fails there, he said he is apt to return to Linn County District Court. He went to court first because he did not think he was likely to succeed with a review from the commission, he said.

This week's court dismissal was procedural and did not take into consideration the substance of Kopecky's legal arguments.

The Racing & Gaming Commission has adopted rules to help guide it as it grants state casino licenses, and the rules include one that calls for the commission to consider how a proposed casino may harm existing casinos. The commission has denied gaming licenses in Webster County, Wapello County, Franklin County and Tama County in addition to Linn County, all of which had voters approve casino gaming in the county.

Kopecky has argued that some of the commission's rules may conflict with the state's gaming law.

This week's court ruling noted that Kopecky pursued his own attempt to secure a state gaming license for a casino in Cedar Rapids back in 1990, a desire he said on Thursday he has not entirely set aside.

However, it was the investor group Cedar Rapids Development Group LLC, led by local businessmen Steve Gray and Drew Skogman, that pursued a state gaming license in 2013 and 2014 for Cedar Rapids and Linn County with the backing from local public officials.

Mayor Ron Corbett and state lawmakers from Cedar Rapids and Linn County said last week that they will be attempting to win approval of a gaming-reform bill in the upcoming session of the Iowa Legislature. The bill, in part, would provide for the state's first smoke-free casino in Cedar Rapids.

Last week, Skogman said investors are still hoping to build their $174-million Cedar Crossing Casino project across the Cedar River from downtown Cedar Rapids.

Kopecky said the investors need to modify their Cedar Crossing Casino proposal to give a higher percentage of profits to local charities than had been planned.

Kopecky began practicing law in Cedar Rapids in 1966. He was the Linn County Attorney from 1975-1982. Currently in retirement, he is counsel to the firm of Ackley, Kopecky and Kingery.