The Argosy Casino
Tim Hynds, Sioux City Journal file
The Argosy Casino-Sioux City is shown in October 2004. The City Council on Monday approved changing city code to allow a land-based gaming venue.
February 07, 2012 By Dave Dreeszen
SIOUX CITY -- The owner of the Argosy Sioux City riverboat casino has asked a federal court to dismiss a lawsuit filed by its nonprofit sponsor.
Missouri River Historical Development, which holds state gaming license for Woodbury County, on Jan. 12 filed a civil suit requesting a temporary injunction to prevent Penn from interfering with its efforts to select an operator for a proposed land-based casino.
MRHD officials accused Penn, the nation's third-largest gaming company, of trying to create a monopoly in the Sioux City market by threatening legal action against any Iowa casino that attempted to talk or work with the nonprofit.
In a brief filed Friday in federal court, Penn asked for dismissal of the case, saying the nonprofit failed to "identify any specific contract that did not come to fruition as a result of Penn's alleged conduct."
Penn also argued MRHD's lacks jurisdiction to bring its case in federal court. The nonprofit's claim, Penn officials said, arises from a contract dispute between MRHD and the Belle of Sioux City, a predecessor to the Argosy riverboat, which was named as a defendant in the suit.
Because both MRHD and the Belle of Sioux City are Iowa entities, the Iowa court system would be the appropriate forum to settle the dispute, Penn lawyers said in the filing.
Penn has pledged to spend up to $100 million on a Hollywood-themed land-based casino in Sioux City. MRHD, whose operating agreement with Penn is set to expire early next year, rejected the initial offer, but the two sides agreed to keep negotiating. If the talks hit an impasse, the nonprofit's board warned it likely would invite other operators to submit proposals.
In a separate brief, Penn lawyers asked the judge presiding over the case to recuse himself to avoid an appearance of impropriety. Penn attorneys in a brief pointed out that Judge Mark Bennett is a former member of the Lewis and Clark Interpretive Center Association board. The association, the company said, receives a "substantial portion" of its funding from MRHD, which annually collects a 3 percentage of Argosy's revenues.
Bennett resigned from the Lewis & Clark board on Jan. 16 after the case was reassigned to him from the original presiding judge, Donald O'Brien.
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