A trial is set for February 12, 2018 in Polk County District Court in Des Moines, Iowa for Penn National Gaming’s breach of contract suit against Missouri River Historical Development. According to the long-running case, Penn National, owner of the former Argosy Sioux City riverboat casino, claimed MRHD, the state-licensed nonprofit holder of Woodbury County’s gambling license with the Belle of Sioux City, a Penn National subsidiary, plotted to replace the Argosy with another operator prior to the end of Penn National’s and MRHD’s 20-year contract, which expired in July 2012.
In a countersuit, MRHD claimed Penn interfered with MRHD’s prospective relationships by sending letters threatening legal action to MRHD’s potential operators. MRHD said because of Penn’s actions, it was not able to negotiate a more lucrative land-based casino agreement.
After Penn National and MRHD could not agree on a long-term contract extension, the Iowa Racing and Gaming Commission made Woodbury County’s gaming license available, and accepted proposals for a land-based casino. Belle closed in July 2014 after the IRGC denied its license renewal. Meanwhile MRHD had formed a partnership with developers of the Hard Rock Hotel & Casino in downtown Sioux City.
In May, the Iowa Supreme Court denied Belle’s lawsuit requesting a review of an Iowa Court of Appeals ruling that upheld previous rulings leading to the closing of the casino.
Belle also is being sued by Community Action Agency of Siouxland for nearly $2 million in revenue-sharing payments that Penn stopped paying to MRHD for 16 months before the Argosy closed. Up to 54 charities have been seeking grants from the withheld funds.
