Creating NEW Gamblers!

Steven Stradbrooke

85% of Boyd’s New Jersey online gambling customers not Borgata customers

March 6, 2014

 

Casino operator Boyd Gaming is singing the praises of its market-leading online gambling operations in New Jersey. On a conference call with analysts following the release of Boyd’s Q4 and FY 2013 results, CEO Keith Smith continued to rubbish the notion that online gambling cannibalizes brick-and-mortar casino revenue.

Boyd and MGM Resorts share ownership of Atlantic City’s market-leading Borgata casino, and Smith notes that 85% of its New Jersey online gambling customers to date “have not been active Borgata customers.” Boyd called this “clear evidence” that online gambling is “complementary not competitive” with Boyd’s land-based operations.

 

Smith acknowledged that Boyd’s online gambling operation – a joint venture with MGM and Bwin.party digital entertainment – didn’t make a “meaningful contribution” to Boyd’s Q4 numbers, but Smith was content knowing the Borgata/PartyPoker platform controlled 43% of New Jersey’s online market (30% via the Borgata alone). Smith expects things to further improve now that the company has tightened up the geolocation problems that hindered the market’s early days. The platform also launched its first 3G and 4G mobile product for Android devices in February and the iOS version is due in the “near future.”

 

As for its overall performance, Boyd revenue grew 9.1% to $681.5m, thanks mainly to the late 2012 addition of Peninsula Gaming’s operations. Earnings rose 30.4% to $131.5m but costs resulted in a net loss of $47.3m for the quarter, which sounds terrible until you realize the company lost $899.9m in Q4 2012. For the full year, Boyd revenues rose 16.6% to $2.89b while recording a net loss of $80.3m. The company closed out 2013 with total debt of $4.43b. Investors have pushed the stock down nearly 4% in after-hours trading, but that’s far better than the 18.6% drop the stock took when Boyd published its Q3 figures.

 

The Borgata’s Q4 revenue was up $9.5m — $2.2m of which came via its online operations – to $157.1m. Boyd’s Las Vegas locals market revenue was flat at $148.6m while the downtown Las Vegas segment saw revenue rise 3.7% to $59.8m. The midwest and south segment fell 8% to $196m and the Peninsula segment returned $119.9m.

 

Looking further afield, Smith described Japan as “another interesting possibility” for expansion. Smith says Boyd is no longer content to confine itself to US shores and has begun “examining the landscape” and making local connections to gain a sense whether Japan would be “a good fit” for the company’s growth strategy. Really, all Smith needs to do is ask himself one question – are you prepared to spend $10b – but Smith says the slow pace of legislation means that “we’re probably pretty far away from worrying about how to finance it.”

 

 

http://calvinayre.com/2014/03/06/casino/boyd-gaming-new-jersey-online-gambling-not-cannibalizing-borgata/

Cheating Casino Workers!

Just when you think you've seen all of the casino sleaze, they surprise you!

Putting teenagers to work? Paleeze! And cheating workers out of overtime?

What's next?

August 16, 2012

US Labor Department fines Iowa casino company

DES MOINES, Iowa — The U.S. Labor Department says it has found wage and child labor law violations at two Iowa casinos.

The department says it found teenagers working at the Diamond Jo Casino in Northwood were operating trash compactors in violation of federal safety provisions.

The department also says it found overtime and record-keeping violations at the Northwood casino and at the Diamond Jo Riverboat Casino in Dubuque.

Peninsula Gaming LLC, which operates the casinos, has been fined $9,300.

Company spokeswoman Carrie Tedore says the company has taken steps to eliminate the safety violations.

Tedore says the company disputed some of the Labor Department's job classification allegations, but the company has reclassified some employees to ensure they are eligible for overtime. Some other workers whose classifications were questioned will remain as salaried employees.
http://www.cbsnews.com/8301-505245_162-57494698/us-labor-department-fines-iowa-casino-company/

Boyd Gaming buys Peninsula Gaming

Peninsula Gaming, owner of 2 casinos in Iowa, is sold
DesMoinesRegister.com
Peninsula Gaming LLC, owner of Iowa casinos in Dubuque and Worth County, has been sold for $1.45 billion to Las Vegas-based Boyd Gaming Corp., officials said Wednesday. The Dubuque Diamond Jo Casino, located along the Mississippi River in downtown ...

CORRECT: Boyd Gaming To Buy Peninsula Gaming For $745 Million
Wall Street Journal
This is the correct version:) By AD Pruitt and Alexandra Berzon NEW YORK (Dow Jones)--Boyd Gaming Corp. (BYD) said Wednesday it will acquire privately held casino operator Peninsula Gaming LLC at a cost of $745 million and is also refinancing $700 ...

Boyd Gaming to buy Peninsula Gaming in $1.45B deal
MarketWatch
By Drew FitzGerald Boyd Gaming Corp. (NYSE:BYD) has agreed to acquire fellow casino operator Peninsula Gaming LLC for $200 million in cash, expanding the US gambling company's footprint in the Midwest and South. Under the deal, Boyd will take over ...

Boyd Gaming To Buy Peninsula Gaming For $1.45 Bln, Shares Up
NASDAQ
(RTTNews.com) - Casino operator Boyd Gaming Corp. (BYD), Wednesday said it has agreed to buy Peninsula Gaming LLC for $1.45 billion, giving it the Dubuque, Iowa-based company's five casinos. Following the news, shares of Boyd rose over eight percent on ...

Peninsula Gaming Escaped Prosecution

Attorneys attack prosecutor payments
Having casino company pay isn’t right, they claim in Daniel case filings
By BILL SHEA, Messenger staff writer , Messenger News

Peninsula Gaming, the company picked to run a proposed Fort Dodge casino, and its top two executives appeared to be in legal trouble as 2010 drew to a close.

Special Prosecutor Lawrence Scalise filed criminal charges in October of that year against the Dubuque company; Brent Stevens, its chief executive officer; and Jonathan Swain, its chief operating officer; in connection with a contribution to the re-election campaign of former Gov. Chet Culver by Steve Daniel, a Fort Dodge man leading the effort to bring a casino to his town. Daniel, Webster County Entertainment and Davenport attorney Curtis Beason were also charged in the case.

The legal fortunes of Peninsula Gaming, Stevens and Swain have since improved. All charges against them have been dismissed, and the company is now paying for the ongoing prosecution of Daniel, Webster County Entertainment and Beason.

That arrangement is now the target of a fresh offensive by defense attorneys seeking to get the special prosecutors disqualified and the charges against the remaining defendants thrown out.

Daniel's attorney, Monty Fisher, of Fort Dodge, and Beason's attorneys, Leon Spies, of Iowa City, and Mark Weinhardt and William Ortman, of Des Moines, have filed motions in Polk County District Court claiming the payment arrangement violates ethics rules.

''Allowing the well heeled defendant, PGP (Peninsula Gaming), to escape prosecution by agreeing to pay for the prosecution of others violates not only the plain language of the ethical rules as argued by defendant Beason, but also clearly violates the spirit of the rules and the entire administration of a fair and impartial justice system,'' Fisher wrote in a motion filed Thursday.

The payment arrangement is outlined in a May 12, 2011, letter to Scalise from Guy Cook, the Des Moines attorney representing Peninsula Gaming. In the letter, Cook writes that the charges will be dismissed and adds ''finally, Peninsula Gaming will pay the costs of the prosecution of the charges previously brought through conclusion of this matter.''

On May 13, 2011, the prosecutors dropped the charges against Peninsula, Stevens and Swain.

Scalise's law firm, Coppola, McConville, Coppola, Hockenberg & Scalise, of West Des Moines, has been paid more than $100,000 so far for his work as a special prosecutor.

''The state of Iowa is not going to end up having one penny paid out to us that has not been reimbursed, so the taxpayers aren't footing the bill,'' Scalise said during a Nov. 17, 2011, hearing.

The charges against all the defendants in the case were filed on Oct. 11, 2010, following a probe by the Iowa Division of Criminal Investigation.

Daniel and Webster County Entertainment are scheduled to go on trial in Des Moines beginning Jan. 23 on charges of making a campaign contribution in the name of another and willful failure to disclose a campaign contribution. Beason, who is charged with failure to disclose a campaign contribution and obstruction, is also scheduled to go on trial that day.

The trial may be delayed, depending on what Polk County Associate District Court Judge William Price does with the six motions filed by the defense attorneys. Each of those motions addresses a different aspect of the legality of the payment arrangement between Peninsula Gaming and the special prosecutors.

A call seeking comment from Scalise wasn't returned Friday. A staffer in his office said he was meeting with Attorney General Tom Miller about a different issue.

Scalise and fellow Special Prosecutor Richard McConville claim that Daniel funneled campaign cash to Culver on behalf of Peninsula Gaming when he made his donation in November 2009.

During a pre-trial hearing in November 2011, Scalise said that Beason was the ''director, architect and orchestrator of the entire program to disguise the true source of the dollars.''

Attorneys disagree on how much money was donated. Scalise and McConville have said the amount was $25,000. Fisher has said the total was $11,000 paid in increments of $4,500, $4,500 and $2,000.

The prosecutors say the donation was made shortly after Peninsula Gaming paid Webster County Entertainment, a group led by Daniel, a $25,000 consulting fee. According to Scalise, within days of the $25,000 being deposited in the Webster County Entertainment account, checks were written to Daniel, Jim Kesterson and Merrill Leffler Jr. Kesterson and Leffler are Fort Dodge men who were partners with Daniel in Webster County Entertainment.

Scalise said the three men promptly wrote checks to Culver's re-election campaign.

Kesterson and Leffler were never charged with any crimes.

The effort to create the Diamond Jo Fort Dodge casino ended in May 2010 when the Iowa Racing and Gaming Commission declined to issue the needed license.

Iowa: Judge upholds Daniel charges

Judge upholds Daniel charges
Daniel: ‘We’ll let a jury decide if I did anything wrong’
By BILL SHEA, Messenger staff writer , Messenger News

A judge has refused to dismiss charges against Fort Dodge businessman Steve Daniel in a criminal case stemming from an alleged illegal campaign contribution to Gov. Chet Culver made a little more than two years ago.

In a ruling issued Friday, Polk County Associate District Court Judge William Price rejected requests to toss out the charges of making a campaign contribution in the name of another and willful failure to disclose a campaign contribution. The ruling clears the way for a trial scheduled to begin Jan. 23 in Des Moines.

Price also refused to dismiss those same charges against Webster County Entertainment, a group led by Daniel that worked to get a state gaming license for the proposed Diamond Jo Fort Dodge casino.

Another co-defendant, Curtis Beason, of Davenport, fared a little better in Friday's ruling. Price threw out a charge of making a campaign contribution in the name of another which was filed against him by Special Prosecutor Lawrence Scalise. However, the judge allowed charges of failure to properly disclose a campaign contribution and obstruction to proceed to trial.

''The judge made his determination so now we'll let a jury decide if I did anything wrong,'' Daniel said Friday evening. ''I don't believe for a minute that I did anything wrong.''

He said he's ready for the trial ''whenever they want to have one.''

''On behalf of Steve Daniel, I was disappointed that the charges were not dismissed,'' Monty Fisher, Daniel's attorney, said Friday afternoon.

Fisher, of Fort Dodge, said he will meet with Daniel to decide their next move. He said they will consider filing an appeal with the Iowa Supreme Court.

Leon Spies, an Iowa City attorney representing Beason, said he was ''heartened'' that Price threw out one of the charges against his client. Spies plans to talk to fellow attorney Mark Weinhardt and Beason to map out their next steps.

Scalise did not return a call seeking comment on the judge's decision.

The ruling came in the wake of two days of hearings last month before Price.

In the ruling, Price described Daniel as an ''intelligent, well-spoken individual who is a respected local businessman.''

Price rejected the argument that the charges against Daniel should be dismissed because Iowa Division of Criminal Investigation agents did not tell him a criminal probe was under way. The judge wrote that Daniel was told his statements to agents could be used for any lawful purpose.

''At no time was he misled by DCI agents,'' he wrote.

He also wrote that the charge of making a campaign contribution in the name of another against Beason must be dismissed because there's no evidence Beason controlled the money that was donated.

Price wrote that other arguments raised by the attorneys seeking to get the charges dismissed are matters of fact which must be determined by a jury.

Scalise and fellow Special Prosecutor Richard McConville claim that Daniel funneled campaign cash to Culver on behalf of Peninsula Gaming LLC of Dubuque when he made his donation in November 2009. Scalise said during the November hearings that Beason was ''director, architect and orchestrator of the entire program to disguise the true source of the dollars.''

Peninsula Gaming is the company that was chosen to operate the Diamond Jo Fort Dodge if a state license was obtained. However, in May 2010 the Iowa Racing and Gaming Commission declined to issue the needed license.

Attorneys in the case disagree on how much money was donated. Scalise and McConville have said the amount was $25,000.

However, Fisher has said the total was $11,000 paid in increments of $4,500, $4,500 and $2,000.

Prosecutors claim the donation was made shortly after Peninsula Gaming paid Webster County Entertainment $25,000 as a consulting fee. During last month's hearings, Scalise said that within days of the $25,000 being deposited in the Webster County Entertainment account, checks were written to Daniel, Jim Kesterson and Merrill Leffler Jr. Kesterson and Leffler are Fort Dodge men who were partners with Daniel in Webster County Entertainment. Scalise said the three then wrote checks to the governor's re-election campaign.

Kesterson and Leffler were never charged with any crimes.

Peninsula Gaming and its top officers, CEO Brent Stevens and Jonathan Swain, the chief operating officer, were initially charged with making a campaign contribution in the name of another and willful failure to disclose a campaign contribution.

The charges against Daniel, Webster County Entertainment, Beason, Peninsula Gaming, Stevens and Swain were filed on Oct. 11, 2010, following a probe by the DCI.

The prosecutors dropped the charges against Peninsula, Stevens and Swain on May 13. Peninsula is now paying the costs of the prosecution, a scenario that Fisher has called an ''extraordinary situation.''

Iowa: Casino-related probe attorney fees top $90,000

Casino-related probe attorney fees top $90,000
By ROD BOSHART, Globe Des Moines Bureau


DES MOINES — The cost of probing allegations of improper contributions to Gov. Chet Culver’s re-election campaign from Fort Dodge casino interests has risen to more than $92,000.

The Iowa Executive Council has approved payments of nearly $92,421 to special prosecutor Lawrence Scalise, a West Des Moines lawyer and former Iowa attorney general, and another attorney, Richard McConville, to look into allegations that casino backers passed money through a third party to the Culver campaign. That according to Julie Pottorff, an Iowa deputy attorney general who handles invoices for outside counsel and payment of legal costs for the council.

The Iowa Executive Council — a five-member panel made up of the governor, secretary of state, treasurer, auditor and secretary of agriculture — hired Scalise last year at a negotiated rate of $80 an hour as a special prosecutor to look into the allegations after Attorney General Tom Miller concluded his office had an appearance of a conflict of interest because Donn Stanley moved from being a division head there to managing the Culver-Judge re-election campaign.

The state Division of Criminal Investigation probed donations from the three Fort Dodge businessmen who reportedly gave $25,000 to the Culver campaign in fall 2009 after they had received $25,000 from Peninsula Gaming. The company and businessmen were partners in an effort to get a casino license in Fort Dodge.

In October 2010, Scalise filed charges in Polk County District Court against Peninsula Gaming Partners LLC, Webster County Entertainment LLC, Peninsula executives Martin Brent Stevens and Jonathan Swain, Webster executive Steve Daniel and Curtis Beason, a Davenport lawyer, alleging they violated the state’s campaign disclosure law.

Those charged were accused of donating money to Culver’s campaign in the name of another person, which is illegal in Iowa. All denied any wrongdoing and entered not guilty pleas.

Earlier this year, charges were dismissed against Stevens and Swain while Beason and Daniel are slated to stand trial Oct. 10 on misdemeanor charges.

Last July, officials with the Iowa Ethics and Campaign Disclosure Board announced they had reached a settlement with Peninsula Gaming LLC over allegations that the company illegally made contributions in the name of another person and didn’t report them. In the settlement, Peninsula Gaming agreed to pay an administrative penalty of $4,000, which was the maximum penalty the board could impose in this case.

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.

Iowa Corruption: Daniel casino trial reset for fall

Daniel casino trial reset for fall
Court date pushed back to October
By BILL SHEA, Messenger staff writer , Messenger News

The trial of a Fort Dodge businessman charged with making an illegal campaign contribution to former Gov. Chet Culver has been postponed until the fall while a special prosecutor and defense attorneys spar via court filings.

This week, Polk County Associate District Court Judge William Price moved the starting date of Steve Daniel's trial to Oct. 10.

But the trial won't happen at all if Daniel's attorney, Monty Fisher, of Fort Dodge, succeeds in getting the charges of making a campaign contribution in the name of another and willful failure to disclose a campaign contribution dismissed.

Leon Spies, the attorney for co-defendant Curtis Beason, of Davenport, said he intends to file a motion to dismiss all charges against his client as well.

Price hasn't set a date for a hearing on those requests to dismiss charges.

He has set a June 28 hearing on requests to move the trial of Daniel to Webster County and to separate his case from that of Beason.

The scheduling changes came in the same week Special Prosecutor Lawrence Scalise filed paperwork alleging that Daniel and Beason aided each other in making a $25,000 contribution to Culver's re-election campaign.

''They changed their theory of the case,'' Fisher said.

He described the change as ''somewhat unusual'' considering that the alleged offense occurred in 2009 and the criminal charges were filed on Oct. 11, 2010.

''As we have said all along, Mr. Daniel did not enter into any agreement to make any type of improper campaign contribution,'' Fisher said.

Fisher received Scalise's documents Friday afternoon, and said he couldn't comment in detail on them.

A phone call seeking comment from Scalise wasn't returned Friday.

Daniel and Beason are the last people facing charges connected to the $25,000 donation. Webster County Entertainment, the organization Daniel led in an effort to establish the Diamond Jo Fort Dodge casino, is also charged with making a campaign contribution in the name of another and willful failure to report a campaign contribution. Beason, who was advising the casino planners, was charged with those offenses and obstruction.

On May 13, Scalise dropped all charges against parties he had previously identified as the principal offenders in the case. They were Dubuque-based Peninsula Gaming LLC and its two top leaders, Brent Stevens, the chief executive officer, and Jonathan Swain, the chief operating officer.

That development prompted Fisher and Scalise to request a delay in the trial, which Price approved this week.

Peninsula Gaming was to operate the local casino if a state license was awarded for it.

The $25,000 donation was made in November 2009, soon after Peninsula Gaming paid Daniel and two other Fort Dodge men, Jim Kesterson and Merrill Leffler Jr., a consulting fee of the same amount. Kesterson and Leffler were not charged with any crimes.

The Diamond Jo Fort Dodge plan collapsed in May 2010 when the Iowa Racing and Gaming Commission declined to issue the needed license.

Kansas casino execs rolling dice

Kansas casino execs rolling dice

A gambling company executive charged in Iowa in a campaign finance case Wednesday told members of Kansas' casino review board the situation would be resolved in his favor and shouldn't influence evaluation of proposals for a casino in Sumner County.

The seven-member Kansas Lottery Gaming Facility Review Board met in Topeka to discuss details of rival casino proposals from Peninsula Gaming, based in Dubuque, Iowa ....

The board is expected to decide Dec. 15 which company should be granted the opportunity to build a casino to serve the area south of Wichita. The pick will be forwarded to the Kansas Racing and Gaming Commission for final approval in January.

Brent Stevens, president of Peninsula, was charged in October with a misdemeanor for allegedly funneling an illegal $25,000 contribution to the re-election campaign of Iowa Gov. Chet Culver. At the time, Peninsula was involved in a quest to secure a new casino license in Iowa.

"We strongly deny any wrongdoing," Stevens said. "What we think the review board needs to understand from Peninsula is: Can we and will we build what we say? If we are selected, we will."

Review board consultant William Eadington, of the University of Nevada-Reno, said the criminal case should be sorted out by Kansas officials evaluating bidders.

Criminal case an issue in Kansas casino decision

Criminal case an issue in Kansas casino decision

TOPEKA, Kan. (AP) — A criminal case in Iowa became a complication Wednesday for a Kansas board that will pick a developer for a state-owned casino south of Wichita because misdemeanor charges are pending against two top executives in one of the two rival applicants.

But one of the executives said he and his colleague are ready to step away from their company's Kansas project if they're convicted of misdemeanor campaign finance violations in Iowa, though both men have pleaded not guilty.

The Kansas Lottery Gaming Facility Review Board is reviewing competing proposals from Peninsula Gaming, based in Dubuque, Iowa, and Global Gaming Solutions, of Ada, Okla., which is owned by the Chickasaw Nation. Kansas law allows only one casino in the Wichita area, and the review board plans to pick an applicant Dec. 15.

Supporters of Global's proposal suggest the legal problems facing two Peninsula executives in Iowa should disqualify that company. Brent Stevens, its chief executive officer, and Jonathan Swain, its chief operating officer, were charged in October with two misdemeanor counts each of violating Iowa's campaign finance laws.

"We strongly deny any wrongdoing," Stevens told the Kansas review board. "We're looking forward to a positive resolution of this matter. We're looking forward to it very, very soon."

The charges against the two executives involve accusations their company made donations in the name of others to Democratic Iowa Gov. Chet Culver's unsuccessful re-election campaign.

Each executive faces one count of making a contribution in the name of another and one count of failing to disclose a contribution. They're scheduled to go to trial Jan. 5 in Polk County District Court but have asked for a 60-day delay, with their attorney saying he needs more time to take statements and evaluate evidence.

Stevens sought to reassure the review board that even if he and Swain stepped away from the Kansas project because of the case, the company has a "very, very deep bench" that would allow it to complete the project.

"We've succeeded by doing the right thing, time and time again. We operate at the highest level," he said. "It will be built."

Kansas review board members struggled with how the criminal case should affect their decision. One consultant hired by the board said Kansas officials have to consider it in deciding whether Peninsula's project should go forward rather than Global's.

But review board Chairman Matt All said such issues are better left to the Kansas Racing and Gaming Commission, which will check the background of any successful applicant and regulate the casino.

"We just want to make it fair," All said of the selection process. "We're not qualified to take up those issues."

The rights to the new gambling and the equipment at the casino will be owned by the Kansas Lottery, and the state will receive 22 percent of the revenues.

The criminal case complicates the review board's work because, even if it picks Peninsula, the Racing and Gaming Commission, as the regulator, must sign off after conducting a background check. Consultants hired by the review board have projected that Peninsula's project would generate more revenue because its site is closer to Wichita.

Peninsula wants to build its $260 million project near Mulvane, about 18 miles south of Wichita, while Global Gaming's site for its proposed $280 million complex is near Wellington, another 14 miles to the south. The casino must be in Sumner County because voters in neighboring Sedgwick County, home to Wichita, rejected the idea.

The board's consultants suggested revenues at the Wellington site would be three-quarters or less of the revenues at the Mulvane site. But John Elliott, Global Gaming's CEO, said the analyses were flawed and questioned the assumption that the extra distance from Wichita would make more than a negligible difference.

"We refute the suggestion of a significant difference in revenue," Elliott said. "The issue here is that the distance isn't great."

Elliott didn't mention the criminal case involving Peninsula executives in Iowa, but on Tuesday, the chairman of the Sumner County Commission did in a statement praising Global's proposal, which the commission has endorsed.

Iowa: Commission defers discipline

Iowa regulators defer discipline against casino execs

The Iowa Racing and Gaming Commission decided Wednesday to defer possible disciplinary action against two Iowa casino executives until criminal allegations against them are resolved in court.

M. Brent Stevens, chief executive officer of Peninsula Gaming, and Jonathan Swain, Peninsula’s chief operating officer, have both pleaded not guilty in Polk County District Court. They have been accused by special prosecutor Lawrence Scalise of making illegal contributions last year to Gov. Chet Culver’s re-election campaign.

Peninsula Gaming operates the Diamond Jo casinos in Dubuque and Worth County.

Commission Chairwoman Toni Urban of Des Moines said the regulatory panel discussed the special prosecutor’s charges at their regular meeting on Wednesday because its members didn’t want the public to think they were ignoring the possibility of discipline against the Peninsula executives.

Both Stevens and Swain hold state licenses that permit them to hold key posts in Iowa’s casino industry, and a criminal conviction could result in action against their licenses.

“The fact is that we are not going to sit as the judge and jury. We don’t know what the facts are, and so we are going to wait until there is a disposition of charges,” Urban said.

Scalise filed the charges against Stevens and Swain while investigating $25,000 in 2009 contributions to Culver’s political campaign. No charges were filed against Culver or anyone involved in his campaign, and the campaign donated the $25,000 to charity, which is allowed by law to dispose of questionable campaign contributions.

Stevens and Swain are accused of illegally making a campaign contribution in the name of another. They are also charged with willful failure to disclose a campaign contribution. The charges are serious misdemeanors, carrying a maximum sentence of one year in jail and a $1,875 fine.

Also facing charges in the case are Davenport lawyer Curt Beason, Fort Dodge businessman Steve Daniel, plus Peninsula Gaming and Webster County Entertainment, which unsuccessfully sought a state casino license last spring. All have pleaded not guilty.

Iowa: Illegal Campaign Contributions

Daniel, others plea in casino case
Donors say they’re not guilty of charges

A Fort Dodge businessman and leaders of a Dubuque-based casino company pleaded not guilty Friday to charges that they illegally funneled donations to the re-election campaign of Gov. Chet Culver.

Steve Daniel pleaded not guilty to charges of making a campaign contribution in the name of another and willful failure to disclose a campaign contribution.

Daniel was the leader of Webster County Entertainment when the group was working with Peninsula Gaming LLC to create the Diamond Jo Fort Dodge. That casino plan was killed in May when the Iowa Racing and Gaming Commission declined to issue the license needed to open the venue.

Phone calls seeking comment from Daniel and his attorney, Monty Fisher, of Fort Dodge, were not returned Friday.

In addition to Daniel, Brent Stevens, the chief executive officer of Peninsula; Jonathan Swain, Peninsula's chief operating officer; and Curt Beason, an attorney from Davenport who was advising the casino planners; entered not guilty pleas to campaign finance violations. Beason also pleaded not guilty to a charge of obstruction. He was the only one charged with that crime.

Also, not guilty pleas were entered for Webster County Entertainment and Peninsula Gaming. Both entities were charged with making a campaign contribution in the name of another and willful failure to disclose a campaign contribution.

Guy Cook, the Des Moines attorney representing Stevens, Swain and the casino company, had said earlier this month that his clients would plead not guilty.

''Peninsula Gaming and its company executives adhere to the highest standards of ethical compliance,'' he said on Oct.11.

Special Prosecutor Lawrence Scalise filed all the charges on Oct. 11 after probing $25,000 worth of donations made to Culver's re-election campaign late last year.

Those donations were made by Daniel and two of his associates in Webster County Entertainment, Jim Kesterson and Merrill Leffler Jr. Kesterson and Leffler, both of Fort Dodge, were not charged with any crimes.

The donations were made not long after Peninsula Gaming paid the three $25,000 as a consulting fee.

Because the not guilty pleas were filed, an arraignment scheduled for Monday in Polk County District Court will be canceled. A trial date hasn't been set.

Iowa: Casino execs charged over illegal contribution

Casino execs charged over illegal contribution to Culver's campaign

Des Moines, Iowa


Monday, special prosecutor, Lawrence Scalise, filed charges against two gambling groups and four men involved in campaign contributions make to Iowa Governor Chet Culver. The gaming interests were for a casino deal in Fort Dodge, Iowa (Webster County). The charges were filed in Polk County District Court. Attorney General Tom Miller appointed Scalise in July after questions and concerns were voiced regarding campaign contributions from the group and individuals who were seeking a state gambling license.

In April, 2010, Central Iowa Politics Examiner reported that the Iowa Department of Criminal Investigations (DCI) was investigating Dubuque-based Peninsula Gaming for donations that they made to Culver's campaign for re-election. According to Culver's campaign, the $25,000 from three casino supporters were donated to charity. At the time the alleged donation to charity was given specifically and split evenly between Door of Faith, Churches United and St. Vincent de Paul. After hearing of the DCI investigation, the Door of Faith homeless shelther in Des Moines, returned the money to Culver's office.

Initially Culver stated that he did not receive the donations, but his campaign later corrected the statements in May. Donn Stanley stated that Culver had made an error in April, when it was made public that the Governor had not contacted anyone associated to a casino license application after it had been filed. On May 13, the Iowa Racing and Gaming Commission met in Johnston and unanimously gave Lyon County the only state gambling license of the 4 bids in consideration. The commissioners said that they were concerned about financing and over-saturations of the gaming market in Iowa. Culver publically stated that he was disappointed that only one casino license was granted, and promised to "do everything...to assist communities in Webster, Wapello and Tama counties with their job preservation and creation efforts, now, and in the future".

That same month, Culver appeared on "Iowa Press", an Iowa Public Television production. Dean Borg, one of those interviewing the Governor, focused on Culver's repeated statements about the positives in his campaign for re-election. When asked about the DCI investigation Culver said, "casino interests have contributed to campaigns in this state for a long time. Since Terry Branstad introduced gaming to Iowa, Republican and Democratic candidates have accepted...". At that point Borg interrupted Culver and stated that gaming wasn't the issue, but credibility and reputation in regards to Culver being a candidate were.

"There is an allegation that three individuals made a donation that is not lawful. That's the investigation,” Culver said. "But our conscience is clear. I have 7,500 contributors across this state and across the country that have willingly stepped up to support my candidacy. We expect that every one of those contributors follows the rules and if they don't, there will be consequences."

It is illegal in Iowa, to make or knowingly receive a political contribution in another's name.

Charges


Those who were charged with making such campaign contributions were M. Brent Stevens (chief executive officer of Peninsula gaming); Jonathan Swain (chief operating officer of Peninsula Gaming); Curtis Beason (a Davenport attorney); Steven Daniel (a Fort Dodge businessman who headed Webster County Entertainment); Peninsula Gaming; and Webster County Entertainment.

The defendants are also charged with willful failure to disclose a campaign contribution. Beason was additionally charged with a single count of obstruction for his alleged production of altered documents which contained false statements given to investigators. This charge also alleges that Beason provided false statements to law enforcement officials.

The finance charges are considered serious misdemeanors and carry a maximum sentence of one year in jail and a $1,875 fine. The charge of obstruction against Beason is an aggravated misdemeanor and carried a maximum sentence of two years of imprisonment or one year in jail and a $6,250 fine.

Stevens, Swain, Beason, and Daniel, will be arraigned at 8 a.m. on November 1, 2010.

Daniel and two other partners in Webster County Entertainment, James Kesterson and Merrill D. Leffler, contributed a total of $25,000 to Culver in late 2009. Peninsula called the payment a consulting fee. Daniel told Des Moines Register reporters that the contributions were legal. He said, "I've never been told by Peninsula or anybody to make a contribution to Governor Culver." In an April memo, Beason said that a $25,000 payment was made from Peninsula officials to Daniel's management company, Webster County Entertainment. According to Beason, the payment was made to cover expenses as part of a deal to have Peninsula manage the Fort Dodge facility.

Kesterson and Leffler were not charged and are listed as witnessed for the prosecution.

Response by Peninsula Gaming


Peninsula Gaming is a casino entertainment holding company with gaming operations in Iowa and Louisiana. They operate the Diamond Jo casinos located in Dubuque and Worth County.

Their statement: "Peninsula has, during its 11-year history, always adhered to the highest standards of regulatory compliance and ethical business practices and has an impeccable record of responsibility and excellence in the gaming industry. We look forward to a positive resolution of this matter."

Iowa: Charges filed in Iowa casino investigation

Charges filed in Iowa casino investigation
DES MOINES, Iowa

A special prosecutor has filed charges against four people and two gambling entities after an investigation into campaign contributions made to Iowa Gov. Chet Culver by gaming interests in Webster County.

Special Counsel Lawrence F. Scalise says he filed the charges Monday in Polk County District Court.

Martin Brent Stevens, Jonathan Swain, Steve Daniel and Curtis Beason, as well Peninsula Gaming Partners LLC and Webster County Entertainment were charged with violating campaign disclosure laws. Beason faces an additional count of obstruction.

Attorney General Tom Miller appointed Scalise in July after questions were raised about campaign contributions from a group seeking a state license to operate a casino in Fort Dodge.

Scalise says there is no evidence of wrongdoing by anyone other than those named, apparently clearing Culver of any involvement.

Telephone messages left for Stevens, Swain and Beason were not immediately returned. A listing for Daniel couldn't be immediately located.

Corruption Investigation

Casino donation probe is costing state
By TOM WITOSKY
The investigation into the legality of a $25,000 contribution to Gov. Chet Culver's re-election campaign by Fort Dodge casino interests intensified in July.

Invoices filed with the state by special prosecutor Larry Scalise show he spent 39.8 hours on the investigation in June and 63 hours in July, compared with 44 hours in May.

Scalise declined to comment on the status of the investigation.

Members of the state's Executive Council are expected today to approve the payment of $8,224 in legal bills submitted by Scalise for his work on the investigation during June and July.



That would raise the total amount spent on Scalise's legal services to $11,728.

Scalise, who was appointed to the prosecutor's position after Attorney General Tom Miller decided his staff would have the appearance of a conflict of interests, is attempting to determine whether there should be criminal prosecution of any of the parties involved for donating or accepting the contributions made last fall.

If so, Scalise could file charges or present the case to a grand jury.

Scalise's invoices indicate he is centering his investigation on whether Peninsula Gaming of Dubuque paid money to three Webster County casino supporters with the intention that the money be contributed to Culver's re-election campaign.

The bills show Scalise has spent most of his time meeting with investigators from the Iowa Division of Criminal Investigation, as well as analyzing and reviewing various material collected in the investigation.

It is illegal in Iowa to make or knowingly receive a political contribution in the name of another person or interest group.

Peninsula, the Fort Dodge casino group and Culver have said they did nothing wrong.

Peninsula Gaming had agreed to finance 80 percent of the proposed Fort Dodge casino project if it had been approved.

The state Racing and Gaming Commission rejected the bid in May after intense lobbying by Fort Dodge residents in support of a license.

DCI agents noticed that the company had paid Steve Daniel, James Kesterson and Merrill D. Leffler, partners in Webster County Gaming, $25,000 last fall, and that the three had combined to contribute that much to Culver.

Daniel has said he and his partners were paid by Peninsula for helping lead the company to the Fort Dodge project and for handling local duties in the application process.

He has said they contributed to Culver because of his support for northwestern Iowa.

Peninsula officials have said their payment to the Webster County group was meant to defray legal costs incurred in the effort to get the casino project approved.

Guy Cook, a Des Moines attorney representing Peninsula, acknowledged he met with Scalise for about an hour June 16.

"I advised him of my representation of Peninsula Gaming and that we stood ready to cooperate with the investigation," Cook said, adding that he had a general discussion with Scalise about the situation. "Part of my discussion was that there was no wrongdoing on the part of Peninsula Gaming."