Although the Hard Rock Hotel and Casino has been operating in Sioux City, Iowa for more than one year and the Argosy Casino has been closed since 2013, its former parent company, Belle of Sioux City, asked the Iowa Supreme Court to overturn a 2014 decision by a three-judge panel that ruled the Iowa Racing and Gaming Commission was correct in holding the Argosy in violation of a state law requiring state-licensed casinos to partner with a nonprofit group. Belle also claimed the IRGC violated its due process rights and also broke numerous state laws. The Supreme Court has moved the case to the state Court of Appeals.
The trouble started after Argosy partnered for years with Missouri River Historical Development but contract disputes erupted between them in June 2012. At that time, the IRGC announced it would accept bids for a land-based casino in Woodbury County. Argosy had requested a standard one-year license renewal, noting that MRHD refused to sign the license application, but the IRGC rejected the application in August 2013. However, in April 2013 the commission awarded a license to Hard Rock Hotel and Casino developers SCE Partners and MRHD—Argosy’s former nonprofit partner. Other applicants included Penn National, operators of the Argosy, which proposed Hollywood casinos at two different sites.
Argosy contested that decision but the commission upheld it and ordered the riverboat to close by July 1, 2014.
Following additional legal challenges and stays, District Court Judge Eliza Ovrom finally affirmed the IRGC’s ruling on July 14, 2014 and the riverboat was ordered to close by July 22 or get a stay from the Supreme Court. The casino closed, putting 250 people out of work.
