New casino in Tama County no longer a reality

The Iowa Racing and Gaming Commission handed out one new casino license-and it won't come to Eastern Iowa.

That Eastern Iowa proposal came from Tama County with a plan for a $45-million dollar complex called Prairie Hills Casino Resort.  But the commission meeting in Johnston Thursday morning said “no” to that plan and plans from Ottumwa and Ft. Dodge as well.  The only winner on Thursday was the $120-million dollar casino and golf resort proposal from Lyon County in extreme northwest Iowa.  That project, located just eight miles from Sioux Falls, S.D. got a unanimous “yes” vote.

Commissioners spoke at length before the formal vote and all said one main reason for turning down three of four proposals was the potential impact on existing license holders.

As to the Tama plan specifically, the commission toured the proposed site along Highway 30 in April.  And on Thursday, commissioners agreed it was a good location.  However, several commissioners cited an incomplete financial disclosure and a consultant's report saying Tama would draw the least number of out-of-state gamblers of any proposed location.  The expected profit for Tama County was just $17-million dollars a year.  That was barely one fourth of the amount expected from the winning Lyon County project.  Also the commission believed the Tama County casino, as proposed, could not compete successfully against the existing Meskwaki Casino west of Tama.  Tribal members opposed the new license and believe two casinos so close together in a largely rural county would have ruined each other.

Meskwaki tribal council chairman Adrian Pushetoneque said “their attempts at what they were doing wouldn't have gone anywhere.  Things have stabilized in our area and I believe it would have went down a little bit more (with another casino).”

Tama County casino supporters used the argument that a second casino would have made the area a gaming destination.  But the man who would have managed Tama County's project said in today's economy that was a tough sell.

John Pavone of Signature Management, said “I think it was just a perfect storm for the three communities turn down.  As you heard the commissioners the comments are very concerned about Iowa's growth in gaming.”

For the last six months of 2009, that growth was non-existent.  During that time, Iowa's 17 state licensed casinos reported revenue down $32-million dollars compared to the same time period the year before.

Tama supporters hope Thursday's decision isn't a final defeat.  They may try again in a future year.  But commissioners told the crowd on Thursday that new gaming licenses probably won't be considered for another three to five years.  And that time may also depend on how the state recovers economically.

Dave Franzman, KCRG-TV