Racing and gaming commission could accept applications for new casino licenses

JOHNSTON - Officials with the Iowa Racing and Gaming Commission said they expect to decide at their meeting next month whether to accept applications for new casino licenses.The commission heard Thursday from community leaders in counties hoping to land a coveted license to bring a casino, along with the jobs and economic development, to their areas.

Hampton City Manager Ron Dunt told commissioners that Franklin County still wants a casino to help create jobs in the area. Franklin County unsuccessfully sought a license during the last round of licenses handed out in 2005 and is back in the hunt this time.

"Make no mistake, the interest level ... is as high as ever," Dunt said.

A study by consulting firm GVA Marquette Advisors estimates a casino in Franklin County could generate $28 million to $49 million per year, but could draw business from other Iowa casinos, especially in Emmetsburg and Worth County.

Voters have passed referenda in Franklin, Lyon, Webster, Tama, and Wapello counties in the hopes they could land a casino license.

Commission chairman Greg Seyfer said it is difficult to say at this point whether they will issue new licenses if they decide to accept new applications at their July 16 meeting.

Commissioners heard from consultants who studied Iowa's gaming market and how the prospect of new casinos might affect Iowa's 17 state-licensed casinos already operating.

The two studies, made public last month, found that one of the best prospects for a new casino would be in Lyon County in the far northwest corner of the state.

Proponents say a casino there could tap the Sioux Falls, S.D., market and bring in gamblers and their dollars from out of state.

A study by GVA Marquette Advisors estimated a casino there could bring in $48 million to $75 million per year, based on the size of the casino.

"All of Lyon County is very excited about this opportunity," said Jeff Gallagher, chairman of the Lyon County Riverboat Foundation.

The proposal for Lyon County outlines a $90 million destination resort that would include the casino along with a 100-room hotel. A 1,200-seat event center would be part of the proposal, as well as an 18-hole golf course, restaurants and show lounge.

That raises concern from a casino official in Woodbury County.

Kees Eder, vice president and general manager of the Argosy Casino in Sioux City, said the casino could see a loss of revenue if another casino is built in nearby Lyon County.

He also is concerned with the gaming policy that neighboring South Dakota might adopt if a new Iowa casino is drawing their residents.

"It creates a very unstable business environment," Eder said.

Proponents of a Lyon County casino say it would create 400 jobs with an average wage of $27,500. They also estimate that it would generate $1.5 million for local non- profits.

Tama Mayor Chris Bearden is hoping to partner with the Meskwaki tribe, which already operates a casino in Tama County, to create a destination spot there. Having more than one casino in the area would give people more choice, he said.

"To me it's not about competition," Bearden said. He said details of a proposal are expected to be released in their application for a gaming license.

A study by The Innovation Group estimated that another casino in Tama County could generate between $18.1 million and $35.3 million based on the casino's size and amenities.