Culver backs four new casino licenses

DES MOINES – Iowa's top gambling regulators said Thursday they will have to consider more than Gov. Chet Culver's wishes when they decide whether to grant new casino licenses this year. 

Culver sent a letter to members of the Iowa Racing and Gaming Commission urging them to approve four new state licenses for casino projects proposed in Lyon, Tama, Wapello and Webster counties.

“I believe it's a matter of fairness and jobs and economic development at a time when our state needs it,” Culver said at a news conference. “Opportunities to create new jobs are difficult to come by and shouldn't be dismissed easily.”

He said the four projects represent a potential investment of a quarter of a billion dollars and would create hundreds of temporary construction and permanent jobs at the casinos and related development.

Culver said the position wasn't a new one for him, and pointed to his 2006 campaign where he pushed to grant new casino licenses in communities that were seeking them.

Culver's news conference was held simultaneously to the commission's meeting in Johnston. At least one commissioner was unaware of Culver's statements until told by a reporter at the  meeting.         

Chairman Greg Seyfer of Cedar Rapids said commissioners are required to look at certain criteria in deciding whether new licenses will be granted.

            “I would like to wait and see what the letter says, and again that's something that we'll obviously take into consideration when we review all of the rest of the criteria,” Seyfer said.

            Groups proposing new casinos will formally present their plans to commissioners later this month, and commissioners will visit proposed casino sites in April. A hearing allowing the public to weigh in and a final decision on new licenses is expected in May.

            Commissioner Paul Hayes of Urbandale said the commission has a lot of things to look at in the coming months.

            “Economic development is certainly one of the criteria that's laid out in the process, but it's not the only criteria, and I think we need to make a, you know, good sound judgment, and that's what we intend to do,” Hayes said.

Commissioner Andrea Rivera-Harrison of Des Moines expressed concern about the impact four new casinos would have on 17 state-licensed casinos already operating in the state.

 “If I get a chance to visit with him, I'd have to ask him to consider the cannibalization of the other ones currently in place, and so that would be my major concern,” Rivera-Harrison said.

            Commissioner Toni Urban of Des Moines said it was premature for her to make any decisions.

            “We're really at the beginning of the process,” Urban said. “We've been going through the applications. We haven't made our visits. We haven't heard the applicants' presentations, and so I feel like I need to go through the process before I can make a decision.”

            GOP legislative leaders emphasized that whether new casino licenses were issued was the board's decision to make.

            “I don't know why he'd get in the middle of that process. I'm surprised that he would wade into the board's decision,” said House Minority Leader Kraig Paulsen, R-Hiawatha.

            Senate Minority Leader Paul McKinley, R-Chariton, said he doesn't believe gambling is long-term economic development.

“Those communities that do have casinos have seen some benefit, but that isn't the way you build a lasting, sustainable economy,” McKinley said. “It can be a sugar high in some areas, but we need real jobs, manufacturing jobs hopefully, that will bring wealth and growth to the state of Iowa, and we've absolutely no talk about that.”

Even a top Democratic leader touted a hands-off approach.

“We need to respect the Racing and Gaming Commission to do their job,” said Senate Majority Leader Mike Gronstal, D-Council Bluffs. “They have shown a good history of overseeing a strong industry in this state.”

Rod Boshart and James Q. Lynch contributed to this report. Charlotte Eby can be reached at 515-422-9061 or

chareby@aol.com.