Socioeconomic impact of gambling in Iowa to be studied

JOHNSTON – Members of the Iowa Racing & Gaming Commission on Thursday approved Brian Ohorilko to serve as their administrator for another four years and directed him to contract with Strategic Economics Group and Spectrum Gaming to conduct a socioeconomic study of Iowa's gaming industry.

The commission voted 5-0 to extend Ohorilko stint as administrator through April 2018 and recommended that Gov. Terry Branstad give him a boost in pay of up to 10 percent. The latest state salary book indicated Ohorilko's pay in fiscal 2013 was $142,555.

“You didn't necessarily take over in the calmest of times and it's probably gone from bad to worse in terms of the environment that we've been operating in over the past several months,” commission chairman Jeff Lamberti of Ankeny told Ohorilko. “It has been very busy. There has been a lot of work involved and we're very pleased with your performance.”

Ohorilko succeeded Jack Ketterer, who stepped down as state gaming administrator in March 2012 after serving for 24 years in the post -- from 1983 to 1989 and then again from 1993 to 2012.

During its work session Thursday, the commission selected Strategic Economics Group and Spectrum Gaming over two other vendors to conduct a socioeconomic study that the Iowa Legislature funded last session. Lawmakers in 2004 gave the commission discretion to conduct such an examination every eight years.

The winning bidder, which was selected over Ernie Goss & Associates and the Innovations Group, will be asked to report on a number of gaming-related factors that include the types and quality of the jobs that the industry has created, the impact on local communities, and correlations between problem gambling, crime and bankruptcies among other things, Ohorilko said. The commission is to receive the study results at its June 2014 meeting.

The socioeconomic study will be conducted separately from a market analysis the commission ordered to determine whether there are under-served markets in Iowa and the impact that likely applications for state gambling licenses in Linn and Greene counties might have on existing casinos operating in Iowa.

Lamberti said he expects the commission will meet in closed session before its March 6 meeting in Altoona to receive reports on background checks related to new gambling license applicants. The commission members likely will hold a special April 3 meeting in Cedar Rapids to conduct a site visit, take public comments, and to get answers to any questions they have pertaining to future casinos.

Also Thursday, the commission renewed pari-mutuel licenses for racetracks in Altoona, Council Bluffs and approved proposed racing dates for the greyhound tracks in Council Bluffs and Dubuque. However, the commission put on hold the specific dates for thoroughbred horse races at the Altoona track pending resolution of some disputed issues between the track and horse industry representatives.

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