Branstad open to smoke-free casinos, changing gaming revenue distribution

CEDAR RAPIDS - Add Gov. Terry Branstad to what Mayor Ron Corbett calls the coalition of those willing to discuss gaming reform, including change in the way gaming revenue from state-licensed casinos is distributed.

The five-term Republican, who called himself a 'militant non-smoker,” expressed interest in a Linn County proposal to create Iowa's first smoke-free casino and ban smoking on the gaming floors of existing casinos.

'I don't think it's right, I don't think it's fair that the people who work in that industry are subject to this secondhand smoke,” Branstad told The Gazette Editorial Board Thursday.

It won't be easy to remove casinos' exemption from the state's smoke-free workplace law. The gaming industry has resisted a smoking ban, claiming it would put Iowa casinos at a disadvantage to competitors in neighboring states.

Licensing a smoke-free casino in Cedar Rapids would provide evidence of the impact of a smoking ban on state gaming revenue, Corbett said.

Branstad, who is seeking a sixth term, was doubtful a flat out ban on smoking in casinos would win legislative approval.

'I'm realistic about the clout that they have,” he said, referring to the gaming industry. 'I don't think I can get my own party let alone the other party to vote for that.”

However, he said, 'There will be a time they're going to want something and you might be able to get it done then.”

Branstad's also intrigued by the idea of a smoke-free casino, which is what a group of Linn County investors proposed to the Iowa Racing and Gaming Commission.

Although it's not a new development, Corbett welcomed the governor's support.

'He's certainly been vocal about eliminating smoking from the casinos,” Corbett said.

The Linn County proposal was turned down because of commissioners' concerns that it would cannibalize the profits of existing casinos.

To allay those fears and to build support for legislative changes that might open the door for a Cedar Rapids casino, Corbett, the former Republican speaker of the Iowa House, is proposing to change the distribution of gaming funds to benefit more communities, especially in those counties where there is no casino.

Corbett's gaming reform proposal would double to $21.8 million a year the amount of state casino tax revenue that goes back to the 84 of 99 Iowa counties without casinos and to their not-for-profit organizations.

'I'm open to looking at the distribution,” Branstad said. 'I know the contributions to non-profits have been beneficial in the areas that have the gaming industry”

Nongaming counties get some revenue, 'but whether the distribution is exactly fair is, I think, it would be appropriate to look at.”

Corbett said he was unaware of the governor ever addressing the inequities in the distribution formula. Counties without casinos get eight-hundredths of 1 percent, he said.

'Obviously we're pushing for a Cedar Rapids license,” Corbett said. 'But one of the things we saw as we explored this was the disparity between those who have casinos and those who don't.”

'It's an equity issue,” he said, and has been meeting with lawmakers to drive home that point.

So Branstad's comments were encouraging.

'You need both branches of government to get laws enacted, so it important to have both branches willing to consider the issue,” Corbett said. 'We're hopeful that next year gaming reform will be one of the issues lawmakers discuss along with how they fix roads and bridges and other issues.”