Gaming panel failed its duty

On April 16, there was a buzz in Linn County. We were going to have a casino. On April 17, there was disbelief and even anger. No casino in sight. Not even a chance, said four members of the Iowa Gaming and Racing Commission.

But wait, not so fast. Keep your focus. All is not lost.

I am a lawyer. Have been for more than 45 years. When a problem presents itself, examine the facts. Search the law. There is an legal adage. If the facts are in your favor, pound the facts. If the law is in your favor, pound the law. If neither are in your favor, pound the table. Linn County residents do not need to pound the table. Both the law and the facts favor the county's residents.

I looked at the issue from the view of the 216,000 residents of Linn County. I also looked at it from the view of the 20 or 30 charities that would benefit from the casino. The first thing I found was Chapter 99F of the Iowa Code. That is the law that was created by the Iowa Legislature when it created casino gambling in Iowa.

WHAT THE LAW SAYS

As I examined the law, I found exactly what I was looking for. Chapter 99F.4(1) gives the commission the power 'to investigate applicants and determine the eligibility of applicants for a license and to select among competing applicants for a license the applicant which best serves the interests of the citizens of Iowa.” As you can see, the key words are 'best serves the interests of the citizens of Iowa.”

I read Chapter 99F to see if the law gives the commission power or the duty to protect existing license holders from competition. Could not find that provision in the law.

Seems simple. The commission must serve the interests of the citizens of Iowa. Kind of like the 22,000 citizens of Washington County who approved casino gambling by a vote. A license was issued for those citizens. The law is on the side of the citizens. Perfect.

The citizens of Linn County approved casino gambling by a vote. How is the commission going to best serve the 216,000 citizens of Linn County? Are these citizens going to be served by a casino that is located in the near center of the county it is prepared to serve? A casino that would annually provide $4 million (estimate) to various charities that assist and better the lives of the homeless, the hungry, the unemployed, the parentless, the uneducated and the addicted. They are also citizens of Iowa.

DOESN'T SERVE CITIZENS

The commission said 'no.” It said these citizens are better served by traveling at least 80 miles (round trip) and driving at least 1 1/2 hours to enjoy their gambling activities. Aren't they better served by driving 10 miles and 10 minutes to a Linn County casino? The commission said 'no.” Can the Linn County citizens be served as equally well as the citizens of other Iowa counties that have approved gambling? The commission said 'no.”

A judge would immediately see that the commission had no real interest in serving the 216,000 citizens of Linn County.

I believe the argument is even more compelling when the reasoning of the four commission members is considered. The sole reason for denying the application was 'cannibalization” of existing casinos. Cannibalizing means that the Cedar Rapids casino project would take business away from the existing casinos. Does the reduction of gamblers and revenue at existing casinos have anything to do with serving the best interests of the citizens of Iowa? I think not.

MONOPOLY GROWS

In fact, the opposite is the result. To protect the income of the existing casinos can only result in one goal: Create a monopoly.

In fact, they have started to create a monopoly. Dan Kehl appears to have an ownership interest in casinos in Riverside, Larchwood and Davenport. Does a monopoly best serve the interests of the citizens of Iowa? The court would say no.

And by denying the Cedar Crossing application on the grounds it would cannibalize the Riverside Casino sends an ominous message to the 216,000 citizens of Linn County: that control of gambling in Linn County lies in the hands of Dan Kehl, not in the commission or the 216,000 Iowa citizens living in Linn County. Therefore, I believe the facts favor the Linn County citizens.

It appears obvious that the commission failed to meet its statutory duty. It did not look after the best interests of the citizens of Iowa.

The citizens and the charities are entitled to a fair decision. It is only possible through the legal appeals process. My experience tells me there is no sure thing when appealing cases. But I would estimate the chances of success at close to 80 percent.

And remember: The commission and Dan Kehl would have to pound the table. They do not have the law or the facts on their side.

P.S. To Cedar Rapids Mayor Ron Corbett: If the appeal process does not succeed, sell the land to the Meskwaki Indian Tribe. They will know what to do with it.

' Gene Kopecky has practiced law in Cedar Rapids since 1966. He was the Linn County Attorney from 1975-1982. He currently is counsel to the firm of Ackley, Kopecky and Kingery. Comments: gkop@me.com