Dan Finney is right about our addiction to casino funds

Rev Carlos Jayne, West Des Moines, Letter to the Editor

May 21, 2016

Thanks to Dan Finney for his straight-out truth about the star of the Iowa gambling cartel — Prairie Meadows [It's time to break our addiction to gambling money, May 19]. I say "cartel" because there is no legitimacy in casino operations, as their revenue is from "suckers." We citizens allow that, of course, because we  have become addicted to "free money" from the Polk County cash cow.

In the '80s Iowa churches led by the United Methodist Church started "Citizens for Gambling Free Government." It was a noble undertaking and successful for a couple of short years in slowing down casino expansion. Eventually all the existing Iowa casinos at the time formed an alliance and with the acquiescence (practically) of the Iowa Racing and Gaming Commission, started dividing Iowa into "segments of suckers" so as to not be predators of each other but, rather, stick to being predators of the public in their designated areas. Obviously, the biggest pot of suckers is in the area designated for Prairie Meadows.

We are addicted to the money coming from our Polk County cash cow and the big, bad IRS is after its share. Will we have to start supporting our local nonprofits with increased donations rather than depending on casino suckers? Will horse breeders have to make their own way? Will our tax money have to pay for roads and potholes as originally intended?

— the Rev. Carlos Jayne, West Des Moines, retired United Methodist legislative advocate

http://www.desmoinesregister.com/story/opinion/readers/2016/05/21/dan-finney-right-our-addiction-casino-funds/84659026/

Iowa: 'They suffer in silence;' stigma high with gambling addicts

'They suffer in silence;' stigma high with gambling addicts

• Brian Wellner bwellner@qctimes.com
• 
  

Twenty-nine thousand Iowans struggled with a gambling addiction in 2015, but only 600 called the state's hotline, 1-800-BETS OFF.

That's a "huge disparity," said Eric Preuss, program manager for the Iowa Gambling Treatment Program through the Iowa Department of Public Health.

Preuss, who has worked in substance abuse treatment since the late 1980s, said the stigma surrounding a gambling habit is higher than other addictions. The rate of suicide is higher, too, he said.

"There is an extreme amount of shame and guilt," Preuss said. "They suffer in silence. These are people that are hurting. It takes courage to pick up the phone."

About 68 percent of Iowans, or 1.6 million people, have gambled in the past 12 months, statistics show. Of those, 85 percent stay within their means and very rarely or never exhibit problem behaviors.

"They seem to just have fun with it," Preuss said.

The 29,000 who struggle with a gambling addiction represent 1.2 percent of the state's population. Preuss said another 13 percent are considered "at risk," because they have exhibited at least one of nine criteria for determining problem gambling. That could include losing a large sum of money in one bet or lying to your spouse about where you were.

Blair Brown, a problem gambling counselor in Davenport, said where she often sees the addiction beginning to form is when the person is trying to duplicate the high he or she felt after winning the first time.

"They had a big win the first time gambling," Brown said. "They're chasing that high over and over again."

She is concerned that as gambling continues to become more available the risk of relapse will grow among those who already are struggling with the addiction.

Preuss shares the concern, too.

In 1991-92, the Quad-Cities went from zero to three riverboat casinos. Today, Iowa has 22 casinos and 2,400 Iowa Lottery outlets, and the state issues more than 2,800 social and charitable gaming licenses, such as for a church bingo event.

"Gambling has always existed," Preuss said. "Poker always existed. But now with the stuff you can do on smartphones, and there is talk of fantasy sports being legalized, what existed 25 years ago looks much different today."

http://qctimes.com/news/local/they-suffer-in-silence-stigma-high-with-gambling-addicts/article_d23716ac-4e6a-5d7a-bbed-8e922186548a.html

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



 

New Study Shows Few Addicted Iowa Gamblers Receiving Help

New Study Shows Few Addicted Iowa Gamblers Receiving Help

Posted: Jun 14, 2014 1:03 AM EDT

By Mark Stevens

A new report estimates up to 9,000 Iowans may have dealt with a gambling problem last year.

Less than 700 received treatment through the state.

At issue is less funding for programs and advertising.

The marketing campaign for 1-800 Bets ff, the problem gambling hot line, received 75 percent less money last year..

Money spent on problem gambling support has steadily decreased over the last five years.

About $4.4 million was spent on gambling addiction services back in 2009.

About $2.7 million dollars was spent on the program last year.

That's a 33 percent decline.

The state eliminated a gambling treatment fund back in 2010. Gaming taxes now go to the state's main pot of money.

As those dollars have decreased, less money is spent on treatment advertising, and less people know they can get help.

"Just the sound of those machines, going off is like a magnet, it just drags you in," says former gambling addict Barbara Wear. She had never gambled in her life and voted against legalizing riverboat gambling in Scott County in the early 90's. One night though, found Wear heading to the boat.

"I have a compulsive personality."

She started small. $20. Then $100. Eventually, gambling consumed her.

"I would get paid on Thursday, I'd cash my check, go home take a shower, go to the boat. By Friday morning I was broke," says Wear.

She'd take extra hours at Alcoa, earning more money to go to the boat. For a year and a half she chased the dream jackpot.

"I was going to give it to the church, if I hit a big enough jackpot I was going to build a church."

The jackpot never came. Instead, a vision came after visiting her son in St. Louis. His water heater broke, Wear had enough money to pay for it, but chose not to. She wanted to gamble and did so, when she got back home.

"As I was leaving, I opened the door and when I did, I seen that water heater blow up and my family was killed, I dropped to my knees and I crawled out of there throwing up and crying."

Driving the next day she saw a billboard for 1-800-bets off. She called and enrolled in treatment. The money to promote the gambling hot line has fallen off over the last few years. Problem gambling counselor Megan Vance says that leaves people without a place to turn.

"There's a lack of awareness of the treatment services that are available to someone that has an addiction," says Vance.

Without more money promoting problem gambling help, Vance worries people will feel they have nowhere to turn. Even as the state approves another casino.

"If we're building more casinos, but not recognizing the need to treat that percentage of people that develop the addiction, we're not going to have enough resources to treat it," says Vance.

Wear banned herself from the boats when she started treatment. She agrees with Vance and says the state should spend more on problem gambling treatment.

"If they help one person, that's what it's about," says Wear.

Before it costs another person what it cost her.

"It's hard to think that I gave that boat $180,000," says Wear.

It was her entire 401(k) in 18 months.

The state taxes casino earnings at 22 percent.

That money is sent to schools, roads, and debt payments.

Some also goes to gambling treatment programs, but no dedicated state fund has existed since mid 2009.


http://www.kwqc.com/story/25775917/new-study-shows-few-addicted-iowa-gamblers-receiving-help

Bill to End Dog Racing Passes in Iowa Senate

Just as with horse racing, attendance and revenues are declining at tracks that still allow Greyhound racing.

Taxpayer subsidies are necessary to keep racing alive. Maybe it's time to end it.

Bill to End Dog Racing Passes in Iowa Senate

Story Created: Apr 25, 2014 at 8:51 PM CDT

 

 

DES MOINES, Iowa (AP) - The Senate has passed a bill that would end greyhound racing in Council Bluffs but allow dog owners to continue operating a track in Dubuque.

The bill passed 46-2 and moves to the House.

It was placed on the legislative fast-track this week after casinos in the two towns negotiated a deal with the Iowa Greyhound Association that creates a $36 million retirement fund for dog owners and breeders who want to get out of the business. It allocated another $36 million to help the association negotiate a lease for the Dubuque track and try to keep dog racing alive.

The casinos spend millions of dollars a year to subsidize dog racing which has seen betting decline dramatically in the last decade and will pay the money to end racing.

Read more: http://www.kcrg.com/home/top-9/Bill-to-End-Dog-Racing-Passes-in-Iowa-Senate-256787231.html#ixzz305RV82jm

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

Iowa casinos must spend millions to support dog racing

Iowa casinos must spend millions to support dog racing

By Paul Brennan / March 6, 2014

 

By Paul Brennan | Iowa Watchdog

DES MOINES, Iowa — If a dog at one of Iowa’s two remaining greyhound racetracks were in the same shape as those racetracks’ finances, it would be euthanized on the spot.

Both greyhound racetracks lose millions of dollars each year, only remaining open because state law requires the casinos to which the tracks are attached to maintain greyhound racing.

Last year, the Horseshoe Casino in Council Bluffs spent almost $10 million to cover losses at its Bluffs Run Greyhound Park. The much smaller Mystique, a nonprofit casino in Dubuque, spent more than $4 million last year to keep the dogs running at its racetrack.

Both casinos grew out of the greyhound racetracks they now financially prop up. In 1994, the Iowa Legislature amended state gaming laws to allow casino games at racetracks, which were experiencing a decline in business. The continuation of greyhound racing at both locations was required.

As casinos prospered, the racetracks continued to decline. Betting at the two racetracks has fallen by 97 percent since they first opened in the 1980’s.

Photo by Alex Lapuerta

GOING TO THE DOGS: Iowa law mandates two of the state’s casino spend millions each year to prop up the state’s money-losing greyhound racetracks.

Bills now before the House and Senate — seemingly stalled at the moment — would drop the greyhound racing requirement for the two casinos in exchange for those businesses paying $70 million over seven years into a fund to assist greyhound breeders and others affected by the end of state-mandated dog racing.

The city councils of both Dubuque and Council Bluffs support dropping the requirement, as do the chambers of commerce of the two cities.

Opposing the change is the Iowa Greyhound Association, which represents breeders, handlers and others involved in greyhound racing. The IGA led successful efforts in 2010 and 2012 to defeat bills that would have dropped the racing mandate.

“Those casinos — which are very valuable properties, worth hundreds of millions of dollars — wouldn’t exist if we hadn’t provided the votes to get them their licenses,” Jerry Crawford, attorney for the IGA, told Iowa Watchdog. “And the agreement was that in exchange for our support, they would support greyhound racing forever.”

But the IGA didn’t support the 1994 change that brought casino games to tracks simply as a gesture of goodwill to casino interests. By that time, the three greyhound racetracks then in Iowa were well in decline.

A year before the law was changed, the Waterloo Greyhound Park filed for bankruptcy. In 1996, it went out of business.

The remaining parks were in better shape, but their best days already were behind them by the time their casinos opened their doors.

According to figures from the Iowa Racing and Gaming Commission, betting at the Council Bluffs track peaked in 1987. Betting in Dubuque reached its peak in 1988.

Asked if greyhound racing would have survived in Iowa without the casinos, Crawford said it was impossible to know, but he did suggest it might have given careful management and proper promotion.

One thing Crawford was clear on is that the $70-million fund the casinos would pay in assistance money doesn’t make the bills before the Legislature more appealing to the IGA.

“Our members would rather work,” Crawford said. “We don’t want to see millions of dollars that could stay in Iowa go to an out-of-state company.”

Crawford was referring to Caesars Entertainment, which operates the casino and dog track in Council Bluffs. The IGA maintains that Caesars will be the ultimate beneficiary if the mandate in dropped.
But at a news conference at the state Capitol last week, civic leaders from Dubuque and Council Bluffs stressed the local benefits that would come from eliminating the mandate.

As a nonprofit casino, the Mystique’s profits are split between Dubuque and local charities and nonprofits. Ending greyhound racing would increase the casino’s profits by millions each year.

In Council Bluffs, city leaders are eager to have the site of the greyhound racetrack, located at a prime spot near Interstate 80, available for redevelopment.

Leaders from both cities said they wanted to eliminate the dog racing mandate so their casinos can compete more effectively in the increasingly crowded gaming market.

“Greyhound racing is the Blockbuster Video of the gaming industry,” Rick Dickinson, president and CEO of the Greater Dubuque Development Corporation, said at the press conference.

Like Blockbuster, greyhound racing is declining “because the industry is changing around them,” Dickinson said. “Customers have voted with their feet.”

In the past decade, more than half the greyhound tracks in the United States have closed. In addition to the two in Iowa, only 19 remain open, and many of them have added other forms of gambling to help keep the doors open.

That the bills to repeal the greyhound racing mandate seem to be stalled in the Legslature doesn’t surprise Dickinson, a former member of the Iowa House of Representatives.

“The other side is very good,” he told Iowa Watchdog. “They have the best lobbyists, make strategic investments with their campaign contributions and leverage their personal relationships with lawmakers.”

If the greyhound racing mandate does survive the legislative session, civic leaders from Dubuque and Council Bluffs say they will continue to push for its repeal.

And last week, they acquired a powerful ally.

At his weekly press conference, Gov. Terry Branstad called greyhound racing a “dying industry” and said he supported closing the racetracks, as long as the people who work in the racing industry were compensated.

http://watchdog.org/131198/dog-racing-mandate/

Iowa: Fighting over crumbs!

Watch closely!

This is the future fight over crumbs in Massachusetts' future!

REPEAL THE CASINO DEAL is the only reasonable solution.



Updated: 2 February 2014

Riverside, Waterloo casinos take but don’t give to Linn County, Cedar Rapids casino backer says

Crucial Iowa Racing and Gaming Commission vote coming March 6

It’s one year ago all over again.

Last February in Cedar Rapids and in the nearby casino cities of Riverside and Waterloo, temperatures were rising and oodles of money was being spent on media ad campaigns — some $3.43 million in total — to support or oppose the building of a casino in Cedar Rapids.

Voters in Linn County overwhelmingly endorsed the idea on March 5, 2013.

Now the campaigns are heating up again as a crucial March 6 date approaches when the Iowa Racing & Gaming Commission will meet at Prairie Meadows Racetrack and Casino in Altoona to hear about the current state of gaming in Iowa from two independent market analysts. Their studies are expected to address the all-important question for the commission: Will granting a state gaming license to the proposed Cedar Crossing casino directly across the Cedar River from downtown Cedar Rapids cannibalize too much business from the Riverside Casino & Golf Resort, in particular, and from the Isle Casino Hotel Waterloo?

Steve Gray, chairman of the Cedar Rapids casino investor group, and Leah Rodenberg, a member of the non-profit Linn County Gaming Association, said again late Friday afternoon that Eastern Iowa has plenty of room for another casino — for the Cedar Crossing casino.

However, Gray and Rodenberg made the case anew for a Cedar Rapids casino by focusing on what the Riverside and Waterloo casinos have failed to do.

They said Iowa’s gaming industry of 18 casinos is set up so local gaming associations, which hold most of the casino licenses, get a share of a casino’s profits to distribute to local non-profit groups and other organizations that make the community better.

One the one hand, Gray and Rodenberg said the Riverside and Waterloo casinos continue to argue that a Cedar Rapids casino will steal a vital part of their business that comes from Cedar Rapids and Linn County patrons. But on the other hand, they said gaming associations in those two counties have turned their backs on Cedar Rapids and Linn County when time has come to distribute money to community organizations.

“We haven’t seen any,” Gray said. Or hardly any.

According to the Cedar Rapids casino group’s review, from 2010 through 2012, the Washington County Riverboat Foundation has distributed $5.4 million of gaming proceeds into the community, and of that, a total of $5,500 has gone to the American Red Cross in Cedar Rapids and a group called Families Helping Families in Cedar Rapids. Together, the money coming to Cedar Rapids is one-tenth of 1 percent of the total. Another $40,000 has gone to the Hawkeye Area Community Action Agency with a headquarters in Cedar Rapids, but with an office and programming in Washington County.

In the same three-year period, the Black Hawk County Gaming Association has received $13.4 million in revenue from the Isle Casino Hotel Waterloo, of which only $4,050 has been distributed inside Linn County to an organization in Coggon.

In fact, Keith Rippy, president of the Linn County Gaming Association and executive director of the local Area Ambulance Service, applied for funding from the Black Hawk County Gaming Association for a new ambulance in 2009 or 2010 without any luck, he said.

A review of 2013 grants did not look as if any additional grant money came into Linn County from the two casinos.

“So if Riverside and the Isle (in Waterloo) care about Cedar Rapids and it’s that important to their business, why haven’t they done more in Cedar Rapids and Linn County?” Gray asked. “And there have been numerous requests for them to do more.”

Gray and the Cedar Rapids casino investors and Dan Kehl, CEO of the Riverside casino, have presented the Iowa Racing & Gaming Commission with competing analyses of Iowa’s gaming industry from consultants each has hired. Gray’s expert says a Cedar Rapids casino will take 9 percent of Riverside’s business, while Kehl’s expert says it’s 39 percent of business generated locally.

For argument’s sake, Gray said, if Kehl’s numbers are correct, that means the Riverside casino has taken in about $150 million in revenue from Cedar Rapids and Linn County in the last six years with hardly anything coming back to Cedar Rapids and Linn County community organizations.

Gray, a Cedar Rapids businessman, and Kehl — who also has ownership interests in Iowa’s newest casino in far northwest Iowa at Larchwood and in the Davenport casino, which will be moving to a new land-based site — have been the poster boys for the fight over the proposed Cedar Rapids casino for a year now. And they know it.

“Mr. Kehl says that a lot of his revenue comes from Cedar Rapids and Linn County, but he and the (Washington County) non-profit have done remarkably little for one of his largest customers,” Gray said.

Kehl on Saturday said it was nice to hear that “Steve” acknowledges that a significant and crucial amount of revenue for the Riverside casino and other surrounding casinos comes from Cedar Rapids and Linn County, which Kehl has said repeatedly is the crucial question for the Racing & Gaming Commission.

Kehl also said he wondered why Gray and the Cedar Rapids investor group have decided to pay the Linn County Gaming Association so little of the profits from a Cedar Rapids casino.
“How can he say he’s concerned about area non-profits when he negotiated to pay the Cedar Rapids non-profit (gaming association) the bare minimum and one of the lowest rates in the state?” Kehl asked.

Taking business away from casinos that pay their non-profits more, he said, will mean less going to non-profits in Eastern Iowa.

“Those non-profits are very concerned,” Kehl said. “They have done an outstanding job of dispersing moneys throughout Eastern Iowa.”

He estimated that Riverside’s gaming assocation could lose $2.5 million from its $4 million in annual proceeds from the Riverside casino’s receipts with a Cedar Rapids casino.

The Waterloo casino provides its local gaming association with 5.75 percent of adjusted gross revenue and the Riverside casino, 4.5 to 5 percent, while the Cedar Rapids gaming association will get 3 percent for the first 10 years and more on a sliding scale after that. Three percent is the state minimum for the local gaming association, and the Cedar Rapids investors aren’t the only casino at 3 percent.

Rodenberg said the Cedar Rapids casino actually will be paying 4 percent not 3 percent, because it will pay an additional 1 percent of adjusted gross revenue to the city of Cedar Rapids. A share of what some other casinos pay to their gaming associations goes directly to local government, she said.
Rodenberg said she understands that casinos in Riverside and Waterloo may be opposed to a Cedar Rapids casino. In fact, she said a member of the Black Hawk County Gaming Association, whom she knows well and likes, has promised that she would be opposing the Cedar Rapids casino proposal.
“I think from our perspective and from the (Cedar Rapids and Linn County) non-profits that I talk to, it’s one of those things,” Rodenberg said. “… Why can’t our non-profits have a share of this? Why should these two counties (Washington and Black Hawk) get all the funds (from Cedar Rapids/Linn County gamblers).”
She said Cedar Rapids is Iowa’s second largest city with many non-profit groups that have a regional reach and could benefit from funding support from gaming revenue.

“After the flood (of 2008), most of them suffered great losses, and they had to rebuild, and they’ve done that without additional revenue sources,” she said. “… But if we could get some additional support each year, through our (gaming association) foundation, it would really make a big difference.”

It’s been a busy 10 days or so as the debate over a Cedar Rapids casino heats up.

Kehl dropped off his expert’s market analysis to the state commission a week ago to take on the expert’s report from Gray group, which the commission received earlier in the month. Riverside officials last week publicly expressed worry over the loss of local funds if a Cedar Rapids casino opens. And the non-profit Black Hawk County Gaming Association said publicly it was planning to protect Waterloo casino revenue from an opposing the Cedar Rapids casino.

The Racing & Gaming Commission will meet in Cedar Rapids on April 3 to visit the proposed site of the Cedar Crossing casino and to hold a public hearing. The commission is slated to make a decision on a Cedar Rapids casino at its meeting in Council Bluffs on April 17.

 

 

http://thegazette.com/2014/02/02/riverside-waterloo-casinos-take-but-dont-give-to-linn-county-cedar-rapids-casino-backer-says/

 

 

 

Stinky Penn National Deal

Dianne M. Berlin

PENN NAT'L! STENCH!!! Sioux City nonprofit gambling group temporarily halts grants to local charities

http://m.therepublic.com/view/story/4e55957591174081b09a56cf95f29bbb/IA--Sioux-City-Casino

 

Sioux City nonprofit gambling group temporarily halts grants to local charities

January 14, 2014 - 9:55 am

 

SIOUX CITY, Iowa — The nonprofit organization that holds the gambling license for the Argosy Sioux City riverboat casino has voted to stop sending grants to local charities and governmental bodies for now.

 

The Sioux City Journal reports (http://bit.ly/1d3kMl4 ) that lawsuits over which gambling operator has the right to run a casino in Sioux City has prompted the Missouri River Historical Development board to temporarily stop approving grants.

 

The board is the nonprofit holder of the gambling license for the casino operated by Penn National Gaming Co.

 

Iowa law requires casino operators to contract with and share a portion of their revenues with licensed nonprofit organizations such as the development board.

 

However, Penn National has withheld more than $900,000 from the board since May after Penn National filed a breach-of-contract lawsuit against the nonprofit.

---

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

 

Expert: Poker chip case highlights security issue

He says problem gambling in the military could put the U.S. at risk.

Written by Daniel P. Finney
Oct. 1, 2013

The suspension of the No. 2 commanding officer at U.S. Strategic Command for allegedly passing counterfeit poker chips at an Iowa casino represents a “significant threat to national security,” an expert who studies gambling addiction in the U.S. military said Monday.

Last month, Stratcom officials suspended Vice Adm. Tim Giardina, who was second-in-command of the nation’s nuclear arsenal, and recommended the 34-year Navy veteran be reassigned. Stratcom is based at Offutt Air Force Base near Omaha. Giardina has not yet been charged with a crime. He remains stationed at Stratcom, but is banned from any responsibilities related to the nuclear arsenal, military officials said.

Giardina is being investigated by both the Iowa Division of Criminal Investigation and the Navy Criminal Investigative Service related to the introduction of counterfeit poker chips into a poker game at the Horseshoe Casino in Council Bluffs.

“Gambling in the military is a huge problem for national security that the military tries to ignore,” said John Kindt, a University of Illinois professor and author of the 2012 research paper “The Gambling Threat to National and Homeland Security: Internet Gambling.”

Generally speaking, Kindt said impaired judgment creates the biggest threat to national security.

The three biggest spying cases of the last 30 years — those related to former CIA agent Aldrich Ames, former FBI agent Robert Hanssen and former Navy warrant officer John Walker Jr. — all involved U.S. intelligence or military personnel being paid millions for secrets.

“Think about the vulnerability a gambling addict represents in that kind of command,” Kindt said. “If they’re losing money and have dug themselves a big hole, they are more susceptible to agents who are working against the interests of the United States.”

U.S. Department of Defense studies show between 5 and 9 percent of U.S. military personnel have suffered gambling-related problems in their lifetimes. About 2 percent fit the classification of gambling addicts. That is more than double the national average of less than 1 percent.

Recent scientific studies show gambling addicts receive pleasure stimulus in the same areas of the brain as those who are addicted to alcohol and other drugs, said Dr. Donald Black, a University of Iowa psychologist who has done extensive research on gambling addiction.

“The brain response leads to impaired judgment in terms of both their decisions to continue gambling and in other areas of their life,” Black said. “The addiction leads people to make choices they would not otherwise make.”

Iowa investigators remained quiet about the ongoing case involving Giardina. Officials have declined to specify the denominations of chips used in the game or the specific dollar amount. However, DCI Special Agent in Charge David Dales said the amount was “significant.”

Dales said state detectives are waiting for NCIS to finish its investigation before moving forward. Passing a counterfeit poker chip is considered a felony in Iowa punishable by five years imprisonment and a fine up to $7,500.

Iowa Racing and Gaming officials also looked into the case Monday. Their investigation found the Horseshoe Casino in Council Bluffs was not at fault in the incident and had adequate security to detect counterfeiting, said Brian Ohorilko, commission administrator.

“Basically, Horseshoe did everything by the book,” Ohorilko said.

http://www.desmoinesregister.com/article/20131001/NEWS01/310010090/Expert-Poker-chip-case-highlights-security-issue

No. 2 nuke commander won't face charges in Iowa

Oct. 1, 2013 - 02:41PM

 

OMAHA, NEB. — Iowa will take no legal action against the No. 2 officer in charge of U.S. nuclear war-fighting forces who is accused of using counterfeit gambling chips at a casino in the state, officials said Tuesday.

Nonetheless, Navy Vice Adm. Tim Giardina could still face federal charges.

Giardina was suspended Sept. 3 while Naval Criminal Investigative Service examines the allegation that he used $1,500 in counterfeit chips at the Horseshoe Casino in Council Bluffs, Iowa, in June.

Matt Wilbur, the top prosecutor in Iowa’s Pottawattamie County, said Giardina’s lack of a criminal record coupled with his distinguished service to the country makes it very likely he would avoid serious punishment in a state court. But the Defense Department can take action against him under the military code of conduct.

“They assured us they would have the ability to deal with him,” Wilbur said.

Naval Criminal Investigative Service spokesman Ed Buice said a federal investigation is underway but that the agency won’t comment on ongoing investigations.

Giardina officially remains deputy commander at U.S. Strategic Command, which is based at Offutt Air Force Base near Omaha, but is prohibited from performing duties involving nuclear weapons or requiring a security clearance.

Strategic Command oversees the military’s nuclear fighter units, including the Navy’s nuclear-armed submarines and the Air Force’s nuclear bombers and nuclear land-based missiles.

The head of Strategic Command, Air Force Gen. Robert Kehler, has recommended that Defense Secretary Chuck Hagel reassign Giardina.

Before Giardina started his assignment at Strategic Command in December 2011, he was deputy commander and chief of staff at U.S. Pacific Fleet. He is a career submarine officer.

The allegations against Giardina follow two other troubling incidents involving the military’s nuclear establishment.

The nuclear missile unit at Minot Air Force Base, N.D., pulled 17 launch control officers off duty last spring after a problematic inspection and later relieved of duty the officer in charge of training and proficiency.

At Malmstrom Air Force Base, Mont., a nuclear missile unit failed a nuclear safety and security inspection in August. Then an officer in charge of that unit’s security forces was relieved of duty nine days later.

http://www.navytimes.com/article/20131001/NEWS/310010011/No-2-nuke-commander-won-t-face-charges-in-Iowa

Responsible Gambling Programs are a sad joke!

What other business would be allowed to keep ill-gotten gains?

Company blames Iowa casino, not employee accused of tax fraud

UPDATED 10:39 PM CDT Jul 26, 2013

VIDEO TRANSCRIPT:

TONIGHT'S BIG STORY! TODD, ONE OF RICHARDSON'S FAMILY MEMBERS TOLD ME THAT SHE HAD A GAMBLING PROBLEM. THEY SAY THEY DIDN'T EVEN KNOW ABOUT, AND JUST WISH SHE HAD SAID SOMETHING TO THEM. TONIGHT, ADDICTION OR NOT, THE SARPY COUNTY ATTORNEY'S GOING AFTER RICHARDSON FOR MORE THAN 430-THOUSAND DOLLARS IN UNPAID TAXES... SAYING YES, IF THE MONEY'S STOLEN, UNCLE SAM STILL WANTS HIS CUT OF IT. CONSIDER IT UNUSUAL.("I think it's a really interesting case and not something you see everyday--") SARPY COUNTY ATTORNEY LEE POLIKOV WILL BE THE FIRST TO SAY THE ALLEGATIONS AGAINST CAROLINE RICHARDSON RISE TO THE LEVEL THAT FEW OF US RARELY SEE, AND MAY NOT UNDERSTAND.("I think it's interesting for people to know that stolen money is considered income and has to be reported on your income tax, and if you don't report it and don't pay it, you'll be prosecuted for it.") THAT'S THE CENTRAL ARGUMENT AS IT RELATES TO THE CRIMINAL CHARGES RICHARDSON FACES. POLIKOV'S OFFICE WON'T DETAIL THE FACTS, ONLY TO SAY RICHARDSON MISAPPOPRIATED MORE THAN FOUR-MILLION DOLLARS OVER THREE YEARS.. AS THE CONTROLLER.. FROM HER NOW FORMER EMPLOYER..COLOMBO CANDY AND TOBACCO.. NOW KNOWN AS M- L-B LOGISITCS. BUT IN A CIVIL FILING, IN WHICH RICHARDSON IS IDENTIFIED AS A "JANE DOE," WE LEARN MUCH MORE. COLOMBO CANDY LAYS OUT AN ARGUMENT THAT ACTUALLY PUTS THE BLAME LESS ON RICHARDSON, AND MORE ON AN IOWA CASINO. THE COMPANY SAYS THE CASINO KNEW THAT RICHARDSON WAS A PROBLEM GAMBLER... --AND "KNEW THAT PROBLEM GAMBLERS CAN AND DO RESORT TO LARGE-SCALE EMBEZZLEMENTS." AND THAT THE CASINO "INTENTIONALLY IGNORED ITS OWN POLICIES, AND INTENTIONALLY REFUSED TO TALK TO RICHARDSON ABOUT HER PROBLEM GAMBLING." ULTIMATELY, COLOMBO CANDY SETTLED WITH RICHARDSON. THAT'S WHERE SHE ADMITTED TO THE EMBEZZLEMENT AND WHERE THE COMPANY ACKNOWLEDGED SHE IS UNABLE TO REPAY THE FOUR- MILLION DOLLARS. SETTLEMENTS AND CIVIL FILINGS ASIDE, POLIKOV SAYS THAT'S NO BUSINESS OF HIS.("so the fact that they have an agreement with her, and they've settled, they feel, their issues with her. She still has issues with the state. And that's who I make decisions for.") COLOMBO CANDY DECLINED TO COMMENT ON RICHARDSON'S ARREST, OR THEIR CIVIL CASES WHICH THEY FILED áMONTHS AGO, WHICH ARE STILL WORKING THEIR WAY THROUGH THE COURT SYSTEM. RICHARDSON HERSELF ALSO DECLINED OUR REQUEST FOR AN INTERVIEW IN JAIL. IF CONVICTED OF THE ALLEGED TAX CRIMES, SHE COULD FACE UP TO FIVE YEARS IN PRISON, ON áEACH

PAPILLION, Neb. —The Nebraska Department of Revenue and the Sarpy County attorney have decided to pursue criminal charges against 54-year-old Caroline Richardson of Gretna.

 

Investigators have reason to believe that while employed as a controller for Colombo Candy and Tobacco Wholesale Company, Richardson misappropriated company funds totaling more than $4 million within a three-year period and owes $430,000 in unpaid taxes.

 

Sarpy County Attorney Lee Polikov said this is a case he doesn’t see every day.

 

“I think it’s interesting for people to know that stolen money is considered income and has to be reported on your income tax,” Polikov said. “If you don’t report it and don’t pay it, you’ll be prosecuted for it.”

 

In a civil filing where Richardson is identified as “Jane Doe,” Colombo Candy argued the blame should be less on Richardson and more on an Iowa Casino.

 

Colombo Candy said the casino knew that Richardson was a problem gambler and “knew that problem gamblers can and do resort to large-scale embezzlements.”

 

The filing also notes that Colombo Candy said the casino “intentionally ignored its own policies and intentionally refused to talk to Richardson about her problem gambling.”

 

Ultimately, Colombo Candy settled with Richardson after she admitted to the embezzlement accusations and the company acknowledged she was unable to repay the $4 million.

 

Polikov said settlements and civil filing aside, Richardson still has issues with the state.

Richardson is charged with three counts of income tax evasion and three counts of filing false income tax return.

 

If convicted, Richardson faces up to five years in prison, a $10,000 fine or both.

 

Nebraska law requires tax payable on income derived from sources within the state and requires a tax filing when gross income exceeds $8,750. The law has long considered stolen money as income.

Read more: http://www.ketv.com/news/local-news/woman-arrested-for-4m-tax-fraud/-/9674510/21182876/-/p3fq6jz/-/index.html#ixzz2aM6oxkYC

Osceola revenue lawsuit settled for $3.1 MILLION

Osceola casino agrees to $3.1 million lawsuit settlement with community group

12:18 PM, Jun 7, 2013 | by William Petroski

A community non-profit group that jointly holds Osceola’s gambling license said Friday it has reached a $3.1 million settlement to drop state and federal lawsuits against the owners of Lakeside Casino.

Clarke County Development Corp. of Osceola, had claimed in litigation that local residents were being shortchanged millions of dollars of their share of gambling profits.

The litigation was filed against HGI-Lakeside LLC, the operator of Lakeside Casino, and its parent company, Affinity Gaming LLC of Las Vegas. The Iowa Racing and Gaming Commission, which regulates the state’s casino industry, was also a defendant.

“We are pleased to have this settlement in place, and it is a major step forward for the citizens of Clarke County, our communities and our continued economic development and community-betterment initiatives,” said Bill Trickey, the non-profit group’s executive director.

The suits have been pending in U.S. District Court in Des Moines and Clarke County District Court in Osceola.

Under the settlement, the Lakeside Casino will pay the non-profit organization $600,000 which can be used for community betterment projects at the group’s discretion. In addition, the casino will pay $2.5 million to Clarke County Development Corp., which will distribute the money to the Clarke County Reservoir Commission to be used exclusively for water purposes. These payments must be made on or before July 1.

Nick Mauro of Des Moines, a lawyer for HGI-Lakeside and Affinity Gaming, said in a statement Friday that all parties involved in the lawsuit are in the process of finalizing details of the settlement for consideration by the Iowa Racing and Gaming Commission.

“Affinity Gaming and HGI-Lakeside have worked hard over the past several years to develop a positive and mutually beneficial relationship with our local partners in Clarke County. This agreement, when finalized, represents a product of those efforts,” Mauro said.

Brian Ohorilko, administrator of the Iowa Racing and Gaming Commission, said the settlement will not cost Iowa taxpayers any money. The agreement is expected to be approved by state regulators next month.

Clarke County Development Corp. had said in court documents it had been receiving 1.5 percent of the casino’s adjusted gross receipts under a management agreement negotiated in 1997. But the non-profit group contended it should be receiving at least a 3 percent payment from Lakeside Casino, citing a state law requiring a 3 percent minimum for casino operating agreements entered into since May 6, 2004.

Clarke County Development claimed the ownership of the Osceola casino changed hands when Affinity Gaming took over from the previous operator, Herbst Gaming, which filed for bankruptcy in 2009.

Under extraordinary rights given to debtors in federal bankruptcy court, Herbst was allowed to transfer its management agreement to Affinity Gaming without Clarke County Development’s consent, but the development corporation contends the transfer was subject to approval by state regulators.

The casino’s payments to the non-profit group, which totaled $746,000 in 2011, are distributed for community projects, such as buying computers for schools and acquiring gear for volunteer fire departments.

Under the settlement terms, if Lakeside Casino is sold over the next five years the casino’s payment to Clarke County Development Corp. will increase to at least 3 percent, or whatever is the state’s minimum payment, Trickey said.

http://blogs.desmoinesregister.com/dmr/index.php/2013/06/07/osceola-casino-agrees-to-3-1-million-lawsuit-settlement-with-community-group/article

Voters say 'no' to new casino

Some casinos short of job projections

When Massachusetts convinces itself of the accuracy of the overstated projections, it denies  reality --

Iowa’s 18 state-regulated casinos employed 9,236 workers

Casinos pay out mixed results in jobs, development

Experts question venues' role in spurring communities' growth

May 5, 2013

Written by

Emily Schettler and Daniel P. Finney

Supporters of proposed casinos frequently cite job creation and attraction of new businesses as reasons to support new gambling venues.

Yet a Des Moines Register review of Iowa’s casinos shows many of them have been slow to stimulate the opening of new businesses nearby and in some cases have created fewer jobs than projected.

That’s not to say casinos are drags on the economy. Iowa’s 18 state-licensed casinos in 2012 generated more than $405 million in tax dollars and admission fees for the federal government, the state and local communities, according to the Iowa Gaming Association. The venues also provided $86.8 million in charitable contributions and donations.

Some of Iowa’s casinos have seen flat or declining revenues in recent years. From 2009 to 2011, the industry as a whole saw its economic impact in the state decrease before growing again in 2012 to more than $1 billion, according to an Iowa Gaming Association study.

“It’s a tougher go for casinos today than it was 10 years ago, and it was a tougher go 10 years ago than it was 20 years ago,” said Ernie Goss, a professor of economics at Creighton University in Omaha who studies gambling and casinos.

Proposals for casinos in Linn and Warren counties have renewed questions about whether the state can support more gambling.

Jeff Lamberti, chairman of the Iowa Racing and Gaming Commission, which authorizes new gambling licenses, has said the impact on other casinos within a region will be key to whether new applications are approved.

In March, voters in Linn County approved a measure to allow gambling with 61 percent support. The vote was prompted by a group of investors who want to build a casino in downtown Cedar Rapids.

Now, state regulators will issue a market study to determine what impact another casino could have on others in the region.

 Warren County voters will decide Tuesday whether to allow gambling in that county. A group of local civic and business leaders has proposed building a $145 million casino, hotel, events center and bowling alley in northwest Norwalk near Iowa Highways 5 and 28. Wild Rose Entertainment would operate the casino.

Some casinos short of job projections

Casino backers in Linn and Warren counties point to an expected influx of jobs.

Iowa’s 18 state-regulated casinos employed 9,236 workers and provided more than $285.7 million in salaries and benefits in 2012, according to information from the Iowa Racing and Gaming Commission and the Iowa Gaming Association.

Backers of the Warren County proposal say the venue would provide 600 permanent jobs and 250 construction jobs.

Those behind the Linn County proposal say it would create 362 permanent jobs with an average compensation package of $42,000 per year. In addition, 137 construction jobs would be created, plus 134 new jobs at existing local businesses.

Wild Rose spokeswoman Jamie Buelt said the job-creation projection for the Warren County casino is a conservative estimate based on the company’s experience and a 2009 market study conducted by the state.

Wild Rose operates two other Iowa casinos. Its Clinton casino and resort, which opened in 1991, has 279 workers, according to Iowa Racing and Gaming Commission data. The other is a newer casino, which opened in 2006 in Emmetsburg.

When Wild Rose applied for the Emmetsburg license, it projected 250 jobs. It’s done slightly better than that. Today, the casino has 265 workers, 234 of whom are full time.

Another casino that opened in 2006, the Diamond Jo Worth Casino in Northwood, also has exceeded its job projections.

But three other casinos that opened in 2006 or later — Grand Falls Casino Resort in Larchwood, the Isle Casino Hotel in Waterloo, and Riverside Casino and Golf Resort in Riverside — don’t employ the number of people originally projected in applications for licenses.

That’s not surprising, given the subsequent downturn in the economy, said Michael Hicks, a Ball State University economist who studies casinos and gambling.

“Optimism among investors and entrepreneurs is a common trait,” Hicks said. “It takes a long time to build a casino, and the rest of the competitive environment is not at a standstill.”

The Grand Falls Casino, for instance, projected 739 jobs when it applied for a license in 2010; today it has 520.

Joe Massa, Riverside’s chief operating officer, said changes in technology and other efficiencies over time have led to the lower number.

“That’s pretty understandable,” he said. “You have a learning curve for your employees, and as you’re in business longer, the efficiency of your operation improves. You end up needing less people to do the job.”

The casino is the largest employer in Riverside, a city of about 1,000 people about 15 miles south of Iowa City. It’s the second-largest employer in Washington County, Massa said.

Tom Timmons, Wild Rose’s vice president of operations, said casino employees contribute significantly to the local economy, particularly in small towns like Emmetsburg.

“We’re the largest employer by leaps and bounds,” he said. “All those employees obviously buy meals there, gas there. They stop at convenience stores, restaurants and grocery stores.”

However, critics say, casino employees have less spending ability than employees in other industries.

A 2007 survey of the American Gaming Association showed that 56 percent of the casino employees surveyed in eight states, including Iowa, had an annual household income of $50,000 or less.

Do casinos attract other businesses?

In Norwalk, where residential property accounts for 80 percent of the tax base, gambling proponents argue a casino could help even out the burden between homes and businesses and spur further commercial development.

“What Norwalk is looking for is an anchor that would start the process of filling in that commercial development,” Timmons said. “Everything starts to spring out from that.”

However, Hicks and others who study gambling said that although casinos might attract some new businesses, such as restaurants and retail stores, they also can lead to the closure of existing businesses.

“I don’t think there’s any evidence that there’s big net growth in new businesses around those areas,” he said. “In net terms, casinos are not the panacea that their biggest boosters claim them to be.”

Whether a casino can draw other businesses and help those around it depends entirely on the size and scope of the gambling establishment and its ability to attract visitors from outside the area, Goss said.

“If it’s a good development, it could stimulate overall business.”

He pointed to three casinos in Council Bluffs and Prairie Meadows in Altoona as examples of those that have been successful.

Melissa Horton, executive director of the Altoona Area Chamber of Commerce, said the city saw a “surge of development” after the casino opened in 1995, including new Walmart, Target and Menards stores.

However, she said, it’s less likely the casino plays a role in attracting businesses in other industries, such as the $1 billion Facebook data center announced last month.

Mike Whalen, CEO of the Heart of America Group, a Moline, Ill.-development company, is working to develop his own property in Altoona. He said the casino’s presence would not influence a “go or no-go decision.”

“We have a whole laundry list of factors that cause us to make a decision. It’s not catalytic, but it’s certainly a nice ‘and,’ ” he said.

Davenport city officials say they have not seen any growth as a result of the Isle of Capri opening the Rhythm City riverboat casino in 1991.

“In all those years, there has been zero land-based development,” said Craig Malin, Davenport city administrator.

The Isle of Capri once owned the Black Hawk Hotel, a famous Iowa landmark built in 1931 known as the place where actor Cary Grant died. The hotel went out of business under the casino’s management.

Now the city wants to buy the casino and build its own site on land. Officials believe a land-based casino would be more advantageous to the community than a riverboat.

In Riverside, Massa said the casino’s 2006 opening spurred the development of a new gas station, University of Iowa health clinic and condominiums.

That city’s commercial valuation shot up from about $4.7 million in 2004 to $71 million in 2011, according to the Iowa Department of Management. The casino accounts for $62 million of the new valuation, according to the Washington County assessor.

In December 2010, Kelly Wood of Washington, Ia., moved her Scandinavian Interiors furniture store from Coralville to Riverside between U.S. Highway 218 and the casino.

“Obviously the casino is going to pull a lot of people off the interstate, and if the casino is successful, hopefully we can draw on that,” Wood said.

She said other development in the area is not what she’d hoped.

“My business is on Commercial Lane, and we’ve hoped for some commercial activity, but so far me and the hospital are the only ones taking the plunge.”

http://www.desmoinesregister.com/article/20130505/NEWS/305050081/1094/SPORTS0206/?odyssey=nav%7Chead


Patch Poll: With 21 Casinos in Iowa, Should We Add Another?

Investment groups are pitching casino projects all over Iowa. Warren County voters will consider a Norwalk casino on Tuesday. Linn County voters already said "yes" to a casino.

• ByB.A. Morelli
• Email the author
• May 5, 2013

Gamblers have 21 casinos to choose from across the state of Iowa, and seemingly every few weeks some investment group is making a play to grow that number.

Talk of a new casino in Ankeny and Urbandale came and went. Over in eastern Iowa, Linn County voters approved building a casino in Cedar Rapids. Now a West Des Moines casino group, Wild Rose Entertainment, is putting money towards a campaign for a casino in Norwalk. Warren County residents vote on Tuesday.

Even if Warren County voters approve the casino the Iowa Racing and Gaming Commission will still have to decide whether to grant a license. It's the same case in Linn County.

There's 18 active casino gaming licenses through the Iowa gaming commission, and there's three additional Indian casinos.

The question is, should Iowa build another casino?

http://waukee.patch.com/articles/patch-poll-with-21-casinos-in-iowa-should-we-add-another

 

Reducing Oversight to Save Casinos $$$$

When Casinos own your state, the partnership demands protection to ensure profitability, consequences be damned!

DCI agent cuts in the cards for Iowa casinos?

Union, lawmaker raise concerns about plan to slash state staff at facilities, which would save industry millions

Apr. 27, 2013

Written by

William Petroski

State lawmakers are planning to dramatically slash the force of state investigative agents at most of Iowa’s casinos — a move that would save the gambling industry $3.7 million annually.

But questions have arisen about whether the changes could jeopardize the state’s ability to detect patrons and dealers trying to cheat at casino table games and slot machines, as well as its ability to prevent thefts, money laundering and other crimes.

There are 108 agents and supervisors from the Iowa Division of Criminal Investigation working at the 18 state-regulated casinos and three racetracks, which had 22.7 million admissions last year with gross casino revenues of more than $1.4 billion. Under a budget bill in a House-Senate conference committee, the number of DCI agents and supervisors — whose salaries are paid by casino fees — would be reduced to 60 over a three-year period.

A union representing the agents argues the cuts go too far, and warns the plan is a shift toward casinos policing themselves. Meanwhile, a key state senator says he wants to ensure the honesty of Iowa’s gambling industry isn’t shortchanged. The three racetrack casinos, including Prairie Meadows in Altoona, would not be part of the cuts.

Gambling industry officials insist that in-house security employees and off-duty local law enforcement officers can fill any gaps left by departing DCI agents. But Sen. Tom Courtney, D-Burlington, chairman of a Senate public safety budget panel, said he expects more committee talks before a final decision is made.

“I just want to make sure that this is not the casinos saying, ‘We want to chop some heads,’ ” Courtney said. One of his concerns, he added, is avoiding situations where “the fox is guarding the chicken house.”

The Iowa Gaming Association, representing the casino industry, has developed the plan in cooperation with top officials at the Department of Public Safety and other state agencies. Iowa’s casinos — some of which have seen flat or declining revenues in recent years — are anxious to implement the plan to improve their financial bottom lines.

DCI Assistant Director Dave Button said the current staffing model dates to 1991, when Iowa became the first state to offer riverboat gambling. Because the riverboats regularly cruised on the Mississippi River, leaving Iowa cities where they were docked, state law enforcement agents were needed to ensure jurisdictional questions didn’t arise.

But with all of Iowa’s casinos now either permanently anchored or operating as land-based gambling facilities, Button said, the number of state agents assigned to them can be reduced without causing problems. He noted that Iowa’s racetrack casinos in Altoona, Council Bluffs and Dubuque each operate with three DCI agents, while all other casinos have six or seven DCI agents.

“There is no integrity issue there” at the racetrack casinos, Button said.

The staffing-reduction proposal would gradually eliminate all lower-ranking DCI agents who now serve in front-line law enforcement roles on casino floors to monitor gambling operations and perform investigative work. The remaining agents would be primarily focused on conducting background investigations on people and companies involved with the casino industry, as well as criminal investigations related to casino gambling.

Most agents whose jobs would be eliminated would either be promoted and remain at the casinos or offered jobs elsewhere in the Iowa Department of Public Safety, such as in narcotics enforcement, general criminal investigation, or with the Iowa State Patrol or the state fire marshal’s office.

Wes Ehrecke, president of the state gaming association, said security staffing at the casinos ranges from about 26 to 60 people at each facility, depending on its size and whether it is open 24 hours.

Some casinos hire off-duty local police and sheriff’s deputies as backup security staffers, and all gambling businesses work with local law enforcement when crimes and other serious incidents occur.
Ehrecke describes the proposed changes in DCI staffing at Iowa’s casinos as the result of “very thoughtful and deliberate discussions” with state officials. He suggests the agency’s realignment simply reflects a “right-sizing” of staffing levels.

Sue Brown, executive director of the State Police Officers Council, which represents DCI agents in collective bargaining, has sent a letter to House members suggesting the cuts are too deep and could hurt Iowa’s gambling industry.

The agents are the only impartial, outside enforcement within the facility to ensure rules are upheld and Iowans are gambling in a fair environment, Brown said. In addition, local police departments are not trained to spot felony violations, she said. One example of such cheating is known as “capping a bet,” which means to place a winning wager on a table game after the outcome is known.

Brown suggested a compromise that would trim the force less deeply, saving the gambling industry $1.9 million instead of $3.7 million.

Jeff Lamberti of Ankeny, chairman of the Iowa Racing and Gaming Commission, said he is probably OK with the plan being considered by state lawmakers.

Regardless of whether the bill passes, all of Iowa’s casinos must submit a security plan approved by state regulators, he noted.

“We don’t have any intention of reducing what we believe is appropriate to satisfy security and integrity,” Lamberti said.

http://www.desmoinesregister.com/article/20130428/NEWS/304280035/DCI-agent-cuts-in-the-cards-for-Iowa-casinos-?Frontpage