A Slap On The Wrist For Peninsula Gaming

Ethics panel settles campaign contribution issue

DES MOINES, Iowa— State ethics regulators said Friday that they have reached a settlement with a gambling company over charges of illegal contributions to former Gov. Chet Culver's campaign.

Iowa Ethics and Campaign Disclosure Board officials announced they reached a settlement with Peninsula Gaming LLC over allegations the company illegally made contributions in the name of another person and didn't report it.

In the settlement, the Dubuque-based company acknowledged it gave Webster County Entertainment $25,000 "with the expectation that Webster County Entertainment would contribute $25,000 to Culver's re-election campaign." The exchanges came as Peninsula Gaming and Webster County Entertainment teamed to seek a casino license in Fort Dodge.

The Ethics and Campaign Disclosure Board said Peninsula Gaming agreed to pay an administrative penalty of $4,000, which is the maximum penalty the board could impose in this case.

"This settlement agreement demonstrates the board's resolve in ensuring the transparent financing of Iowa elections," the panel said in its statement.

The board said although it was clear Peninsula Gaming acted on the direction of its legal advisers, the parties agreed the maximum penalty was warranted given the size of the contribution.

Former Iowa Attorney General Lawrence Scalise was named to serve as a special counsel investigating the case.

The allegations argue that the company didn't want to give the money to Culver directly because it wouldn't look good while their license application was pending. The Iowa Racing and Gaming Commission decides which licenses are accepted and rejected.