Column -- Could Video Lottery Be a Cash Cow for Local Governments?

Cedar Rapids' mayor-elect has made it clear that the idea of a commuter wheel tax is flat, a local payroll tax deserves a pink slip and the curtain will never go up on a city entertainment tax.

Revenue diversification, in the eyes of Ron Corbett, doesn't include new taxes. But it could include gambling.

Corbett says if the Iowa Legislature moves to revive TouchPlay video lottery games next year, Iowa's local governments should get a cut of the action.

“If for some reason the Legislature decided to allow TouchPlay, which we've seen a couple of trial balloons float on that, that could be a source for counties and cities to share,” he said, while insisting that flood recovery needs will top the city's Statehouse wish list.

Corbett concedes that TouchPlay trial balloons have been of the leaded variety thus far. But having served as speaker of the Iowa House, he knows a few things about the legislative process.

He knows that legislative leaders who say “absolutely not” today may be singing an entirely different tune as the session nears its end and the budget needs balancing. Dead ideas can be revived in a hurry, especially with lawmakers staring down a nearly $1 billion budget hole in the next year.

Corbett also knows that it takes plenty of horse-trading to get a gambling bill through the Legislature. Throwing a financial bone to cash-strapped local governments, perhaps in exchange for property tax relief, could attract some votes.

Some lawmakers say they're interested in allowing video lottery games in establishments where you must be 21 or older to enter, such as bars or fraternal halls. Touch Play lottery games, which lawmakers banned in 2006, were installed in not only taverns but grocery and convenience stores. “Slottery” saturation sparked public outcry and legislative angst.

Still, its revival is a long shot.

A lot of Iowans don't want to see a comeback, and neither do existing casinos who fear the competition or anti-gambling forces who think there's more than enough gambling already. Video lottery opponents in both parties argue that the machines are a regressive tax on poor Iowans. It's also not a popular idea among Corbett's fellow Republicans seeking the GOP nomination for governor.

I doubt the issue will see the light of day.

But you can't blame Corbett for thinking about the possibilities. He campaigned against new taxes and won by 26 percentage points. And yet you still need resources to run a city trying to recover and grow. Occasionally, long-shots pay off.

Contact the writer at (319) 398-8452 or todd.dorman@gazcomm.com