Lawsuits still pending after Argosy closure

Lawsuits still pending after Argosy closure

Posted: Jul 30, 2014 7:38 PM EDT

By Kayah Gausman, Multimedia Journalist

 

 

SIOUX CITY, Iowa (KTIV) -
Though Belle's battle over keeping the riverboat casino open may be coming to end, it will still fight over the Argosy Casino in court.

The Belle has two lawsuits pending.

One of the lawsuits involves the Argosy's former non-profit partner, which is the Hard Rock's current partner, Missouri River Historical Development.

In the lawsuit, Penn National Gaming alleges that MRHD "secretly" began discussions with other operators to replace Penn a year before the expiration of an agreement.

The say the agreement identified Penn as the "exclusive licensee" to operate a gambling enterprise in Woodbury County.

That trial date has not been set for that case.

Another case expected to go to trial this December is between the Belle of Sioux City and the Iowa Racing and Gaming Commission.

That case focuses on the licensing process for the Argosy Casino, and if the IRGC's decision to deny the Argosy's gambling license was fair.

With the Argosy closing today, Belle's owner may just be trying to recoup losses when the case goes to trial.

That battle between Belle and the IRGC will be heard in Polk County District Court December 22.



http://www.ktiv.com/story/26156296/2014/07/30/lawsuits-still-pending-after-argosy-closure



 

Argosy reducing 3rd floor hours, shuffling slot machines

Casino limiting top floor hours

March 24. 2014 10:45PM
By Linda N. Weller lweller@civitasmedia.com

ALTON — Argosy Casino’s continuing dipping revenues forced the gaming facility to cut back hours on its top, third-floor slot machine area to three days per week.


“We did it to match our business levels,” said Scott Saunders, Argosy vice president and general manager.


The change, to only open the third floor gaming area on Friday through Sunday of each week, started at the beginning of March, Saunders said.


On those days, the third floor is open during the casino’s regular 22 hours, from 8 a.m. to 6 a.m. the next day. Every day, Argosy closes from 6 a.m. to 8 a.m.


Saunders said through attrition, the casino has not laid off employees because of the reduced hours on third floor, but it did adjust staffing posts.


As result of the hours reduction on third floor, though, Argosy is moving the most popular machines from the area.


“We are taking the machines that are played the most and relocating them to the first and second floors,” Saunders said.


Since 2007, when Argosy recorded its highest adjusted gross receipts of $125,701,589, AGR have dipped each succeeding year, as follows: $90,689,307 (2008); $84,206,140 (2009); $77,352,471 (2010); $73,064,474 (2011); $70,952,955 (2012); and, $64,253,526 in 2013.


Last year, though, Mississippi River flooding forced the casino to close for a week, which affected its 2013 revenues.


Source of the AGR data is Illinois Gaming Board’s website: (http://www.igb.illinois.gov/annualreport).

http://www.thetelegraph.com/news/news/880401/Casino-limiting-top-floor-hours

Ho-Chunk seeks to enter lawsuit over Iowa casino

Published 1:50 pm, Saturday, March 15, 2014

SIOUX CITY, Iowa (AP) — Ho-Chunk Inc., the economic development division of the Winnebago Tribe of Nebraska, is seeking to intervene in a high-stakes legal fight over casino gambling in Sioux City.

 

Ho-Chunk filed requests Friday to intervene in a lawsuit brought by owners of the Argosy riverboat casino in Sioux City, the Sioux City Journal reported (http://bit.ly/1fzg9AT ).

 

The lawsuit by Argosy parent company, Penn National Gaming Co., is challenging the Iowa Racing and Gaming Commission's decision last year to award a casino license to the owners of the Hard Rock casino, which is being built in downtown Sioux City.

 

The Hard Rock proposal beat out bids from Penn National and Ho-Chunk for the license.

 

"We generally don't like lawsuits because they are expensive and messy," Ho-Chunk President and CEO Lance Morgan said. "However, we spent over $1 million on the (bid) process and, if it was flawed, then at the very least we need to have a seat at the table."

 

If the courts determine that neither the Hard Rock nor Penn National's bid should be awarded the license and that the application process was "inappropriate or flawed," the Ho-Chunk-led group would be the "logical recipient" of the license, attorneys for the group contend in their court filing.

 

In the petition, Ho-Chunk lodges complaints similar to Penn National's about the process and proceedings that led to the commission awarding the license to the Hard Rock group.

 

Among other complaints, it contends that the commission violated its own selection procedures by allowing Hard Rock developers to make "wholesale, and untimely, amendments" to its application, including its financing.

___

Information from: Sioux City Journal, http://www.siouxcityjournal.com

Supreme Court intervenes in Sioux City casino case

Updated 9:48 am, Friday, December 20, 2013

 

DES MOINES, Iowa (AP) — An Iowa Supreme Court justice has given hope to the builders of the Hard Rock Hotel & Casino in Sioux City that they might not have to stop construction after spending $44 million on the half completed project.

 

Justice Brent Appel on Thursday granted an emergency stay of Polk County District Court Judge Robert Hanson's Dec. 10 ruling suspending the Hard Rock Hotel & Casino gambling license, the Sioux City Journal (http://bit.ly/1i7Du2E ) reported.

 

Hanson suspended the license as he ruled on a lawsuit challenging the Iowa Racing and Gaming Commission's April decision, which gave Hard Rock casino owners a gambling license instead of Penn National Gaming, the owner of the Argosy riverboat casino in Sioux City.

 

The commission decided in June 2012 to take bids for a land casino after growing frustrated when Penn National couldn't reach a long-term contract with a local nonprofit sponsor. Penn National has operated the Argosy riverboat casino since 2005 when it bought Argosy Gaming.

 

Iowa gambling laws require casino operators to contract with nonprofit organizations and share profits with local community organizations.

 

Penn Nation eventually partnered with a nonprofit and submitted a bid for a new casino project.

The commission, however, voted in April to grant a new license to the Hard Rock project instead of Penn National's proposed project.

 

Penn National sued claiming the commission violated its own rules, Iowa law and Penn's constitutional rights during the bidding process for a new casino.

 

Hanson concluded that Penn National had the "substantial possibility" it would ultimately succeed in its lawsuit and issued a ruling that suspended the license issued to the Hard Rock casino.

 

That created huge issues for SCE Partners, the Hard Rock developers because they've already spent $44 million on the casino that is scheduled to open in January 2015. The city has already paid $5.5 million in promised tax financing for the project and has borrowed $22 million for parking and other infrastructure related to the casino project.

 

The commission and Hard Rock attorneys asked the Supreme Court to intervene in the case, saying Hanson's order jeopardizes financing for the $128.5 million project and millions of dollars in future casino revenues, as well as other economic benefits for the state and local community.

 

Penn National claimed its Argosy casino employs more than 300 people and generates $56 million in revenue a year and would incur "irreparable harm" unless the license for Hard Rock isn't suspended while its legal challenges are heard.

 

In its appeal, the commission counters that the Argosy faces no immediate injury because the commission has allowed the floating casino to continue to operate while construction continues on the Hard Rock casino.

 

Appel's order gave Penn National Gaming Co. until noon Tuesday to respond to the filings by the commission and SCE Partners.

 

One or more justices will then review the case and decide how to proceed.

___

Information from: Sioux City Journal, http://www.siouxcityjournal.com

 

Iowa: Racing to the Bottom ASAP

Hard Rock Casino to be built in Sioux City, Iowa
April 22, 2013 9:30 AM by Staff & Wire Reports

Sioux City Entertainment will build a Hard Rock Casino in northwest Iowa’s Sioux City after the Iowa Racing and Gaming Commission awarded a gambling license Thursday to the group.

The commission chose from four proposals for land-based casinos in Sioux City after hearing proposals, meeting with developers and touring the proposed sites last month for casinos to replace the Argosy Sioux City riverboat casino. State regulators decided in 2011 to replace the Argosy with a land-based casino.




Gambling was sold in Iowa as RIVER BOAT GAMBLING to cater to 'TOURISTS.'
Then the boats docked. Now they're land-based. Gambling always escalates.

Penn National Gaming Co., which currently runs the Argosy, submitted two proposals for a casino — one just outside of Sioux City and one in downtown Sioux City that would have required the demolition of several buildings. Ho-Chunk Inc. also put in a bid to build the proposed Warrior Casino & Hotel, a $122 million project slated for the Davidson Building and Warrior Hotel.

But Sioux City Entertainment’s bid for the Hard Rock Hotel & Casino for $118.5 million was selected. It will be at the site of the historic Battery Building in downtown Sioux City.

“Obviously, we’re very happy with the decision,” said Bill Warner, president of Sioux City Entertainment and founder of the group’s Las Vegas parent company, Warner Gaming. “We had no idea how it was going to go until they announced it.”

The vote was not unanimous. Commissioners Greg Seyfer and Delores Mertz voted against awarding the license to the Hard Rock site, with Mertz earlier declaring the Ho Chunk proposal as her pick and Seyfer preferring Penn National’s downtown proposal. All five commissioners expressed difficulty in coming to a decision.

“I have never lost so much sleep,” Mertz said. “It has been really a wrenching decision.”

The winning Hard Rock proposal will see a casino with 800 slot machines and more than 200 gambling tables, Warner said. It will also sport an 800-seat venue for entertainment acts and concerts, several restaurants, a 60-room hotel and a “backyard” park setting around a small lake that can hold 3,000 people.

Construction is set to begin in July and is set to be complete by July 2014.

If the casino is not up-and-running by March 31, 2015, a fine of nearly $54,000 a day will be accessed against the casino’s developers until it opens.

http://www.gamingtoday.com/articles/article/41099-Hard_Rock_Casino_to_be_built_in_Sioux_City_Iowa

Iowa: Sucking the last $$$ from residents

Lamberti: State getting close to 'critical mass' for casinos

By Mike Wiser, Des Moines Bureau

 

Surely, there must be more discretionary income that can be sucked from Iowans!

JOHNSTON — The state may not be at “critical mass” for casino licenses, but it’s pretty close, the chairman of the state’s gaming regulatory board said.

Jeff Lamberti also said he’s watching what happens in Davenport “very closely” as the city makes moves to operate a casino there, but he doesn’t think other casino operators have to worry that the acrimony that erupted in Sioux City will spread to other casinos.

“That was just a very unique set of circumstances,” said Lamberti, a former state senator and attorney from Ankeny. “Licenses are privileges, they are not a right.”

Four partnerships are bidding for the Sioux City casino license held by Penn Gaming Co. which runs the Argosy Casino. The license was put up for bid after the nonprofit license holder pushed to replace the boat with a land-based casino.

Lamberti made his comments during a taping of Iowa Public Television’s “Iowa Press” show, which is scheduled for broadcast on Dec. 28 and Dec. 31. He was joined on the show by Wes Ehrecke, president of — and chief lobbyist for — the Iowa Gaming Association.

Iowa has 15 casinos, three race tracks and two Native American-run casinos. The 15 state casinos accounted for more than $1 billion in adjusted gross revenue in the 2012 fiscal year that ended this summer.

In Davenport, the city has proposed creating a city-appointed nonprofit board to run its casino, which would be a unique relationship for a city and gaming company in the state. Lamberti said he’s reserving judgment on the idea until he gets a specific proposal from the city, but he doesn’t like the idea of splitting casino operations between downtown Davenport and one near Interstate 80.

“I will tell you and I’ve told (city officials), I have some concerns about the location, because I believe an interstate location is the prime location there,” he said. “The difference is while we have to take into account what happens in the local community — that’s a big part of what we do — the commission represents the state of Iowa. We have to see what’s going on in the rest of the world, so to speak.”

Ehrecke said his clients also are watching what happens in Davenport with concern, especially if it leads to other municipalities wanting to take a larger role in their licenses.

“We’re certainly watching this with some interest, that whole idea of a municipality managing and running a casino, that would be unprecedented. It’s raised a lot of questions,” he said. “There’s a lot of unknowns right now. We just have members raising a lot of questions.”

He said the commission hasn’t taken a formal position on the situation in Davenport yet.
Ehrecke said casino operators also are watching whether the state will allow more licenses.

Cedar Rapids is the largest metropolitan area currently not served by a casino, but Linn County residents are set to vote on a May 7 referendum to gauge support for a Cedar Rapids casino. There also has been talk in other communities, such as Ankeny in Polk County, about possible gaming expansion.

Lamberti said “there is no moratorium” on licenses in the state and the commission will look at any proposal that comes before it. He did say, however, that the commission looks hard at if a new casino would eat into an existing customer base or draw in new customers.

“This is a pretty mature industry in Iowa,” he said.

http://globegazette.com/news/iowa/lamberti-state-getting-close-to-critical-mass-for-casinos/article_6bc37268-4bfd-11e2-9622-0019bb2963f4.html

Man accused of pouring soda into slot machines

Posted: Thursday, November 29, 2012

Man accused of pouring soda into slot machines

Telegraph staff reportthetelegraph.com

 

ALTON [Illinois] - A St. Charles, Mo., man was charged Wednesday for an incident earlier in the month in which he is accused of pouring soda into bill validation openings on two gambling machines at the Argosy Casino, permanently damaging them.
 The Madison County State's Attorney's Office charged the suspect, Ronald E. Hurtado, 61, with criminal damage to property over $300.

A judge set bond of $20,000.

Argosy security held the suspect for police after looking at surveillance camera images, allegedly of Hurtado.

Security was alerted soon after two penny slot machines suddenly malfunctioned on the third deck of the facility at 2:46 and 2:50 a.m. Sunday, Nov. 18.

A technician discovered a sweet brown liquid, apparently soda, had been poured into the small openings on each machine. The slot machines stopped functioning within seconds, an Alton Police Department report said.

Evidence showed Hurtado had inserted his Argosy player card in each of the two games just before each stopped working, the report said.

The machines would cost $800 each to repair, the report said.

http://www.thetelegraph.com/news/local/article_8deb7bc4-39ce-11e2-b6ad-001a4bcf6878.html

 

Penn National's legal tangles in Iowa

[Background information below in an earlier article.]

Iowa judge's decision expected next week on contract lawsuit involving Sioux City casino

THE ASSOCIATED PRESS October 25, 2012 DES MOINES, Iowa — A judge says he expects to rule early next week on a breach-of-contract lawsuit involving a casino in Sioux City. Judge Robert Hanson heard arguments Wednesday afternoon in Polk County. They came from lawyers for Penn National Gaming, whose subsidiary operates the Argosy riverboat casino, and Missouri River Historical Development, the nonprofit group that holds the state gambling license. Penn National's attorneys say the historical development group has violated a contract signed in June. The group says the contract hasn't been approved by state regulators and isn't valid. Penn National wants a temporary injunction to keep the group from partnering with another casino operator that would run a land-based casino in Sioux City. http://www.therepublic.com/view/story/f8acd4e5335f4711a7953b45c012b2f1/IA--Sioux-City-Casino Sioux City casino operator seeks to dismiss suit »   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.   http://siouxcityjournal.com/news/local/a1/sioux-city-casino-operator-seeks-to-dismiss-suit/article_0d38e270-d2e3-57e5-aadc-c55639354751.html

Who is profiting from crime? Casinos?

Nebraska State Senator Brenda Council of Omaha gambled with funds that were not hers at an unnamed casino in Kansas City.  

Casinos are financial institutions with access to patrons' financial records.

They know patrons' financial assets.

Why aren't they compelled to return stolen funds?

In Kansas City - Was it Harrahs [now Caesars]? Ameristar? Isle of Capri? Argosy? Hollywood Casino?

If they are such responsible businesses, why aren't they named? Why aren't they returning stolen funds?

What about Frank Fahrenkopf's "Responsible Gambling Program" that no employees know about?   

Gambling addicts need help to win better lives
Posted: Thursday, September 20, 2012

In pleading guilty earlier this week to misdemeanor public records violations, state Sen. Brenda Council of Omaha declared she was paying the price for her problem gambling. Council’s assertion falls short of the truth because problem gambling is not a victimless illness.

In addition to the addicted gambler, victims can include family members, friends and organizations and, in Council’s case, donors who supported her re-election campaign for the Nebraska Legislature.

Council reportedly gambled away $63,000 in campaign donations, but failed to report the withdrawals from her campaign fund. The state senator must pay court expenses and $500 in fines, but those penalties pale in comparison to the real cost of her gambling problem. That will be evident on Nov. 6 when voters in her Omaha district must decide whether to re-elect Council to four more years, or send her opponent, Ernie Chambers, back to the Legislature.

To her credit, Council has already repaid $36,000 and is seeking treatment, but those actions won’t repair the scars to her reputation.

If there is a silver lining in this terrible cloud, it is that Council’s case shines a light on problem gambling. Her actions help us to understand how the addiction harms others as it runs its course.

No right-thinking person would take food and clothing from their family, betray the trust of friends who loan them money, or steal and embezzle. However, these are symptoms of a gambling addict heading for rock bottom.

Is there a problem gambler in your life? Consider these signs:

- They’re preoccupied with gambling and always thinking of ways to get more money to gamble.

- Wagers grow larger as the person attempts to achieve more excitement.

- Repeated attempts to cut back or stop gambling fail.

- Gambling becomes an escape from family, work or emotional distress. The addict lies to family, therapists and colleagues to conceal the extent of the problem.

- After losing, the gambler returns another day to get even.

- Forgery, fraud, theft or embezzlement become ways to finance the habit.

- The gambler loses a spouse, job or career opportunity because of the need to gamble, and borrows from friends, family, even strangers to pay off catastrophic losses.

Council said she is ready to move on. We wish her well in her recovery, and we advise suffering families not to wait. Confront your problem gambler. It’s not a victimless addiction, and it won’t end without help.

http://www.kearneyhub.com/news/opinion/gambling-addicts-need-help-to-win-better-lives/article_644a20a0-0336-11e2-a99c-0019bb2963f4.html



Campaign bank accounts and casino records subpoenaed by the Attorney General’s office indicate Council withdrew $63,052.56 in campaign funds to gamble at a casino in Kansas City, Kansas.

http://nebraskaradionetwork.com/2012/09/18/sen-council-pleads-guilty-admits-to-a-gambling-problem-audio/