In Iowa, the Des Moines Airport Authority recently rejected a plan by Highview Development Group to build a $225 million casino and hotel at Des Moines International Airport.
Local entrepreneur Reggie Sinha proposed building a 350-room hotel, connected to the airport by a skywalk and featuring a dancing fountain, rock garden, restaurant and banquet facilities. The casino would have been operated by Wild Rose Casino & Resort, which runs three Iowa casinos.
Highview officials said the project would create 1,000 full-time jobs and help pay for the new 18-gate airport terminal, expected to open in 2028. Airport officials are trying to raise $194 million from various sources to pay for the $500 million project.
No board member made a motion at the Airport Authority meeting to vote on the plan, so no vote was held. The Iowa Racing and Gaming Commission previously said the plan would have to be approved in a countywide referendum. .
A major obstacle is the 2004 agreement between Des Moines, Polk County and Prairie Meadows Casino and Hotel in Altoona. It requires elected officials to reject any proposed new casino in the city or county in exchange for a share of gaming revenue from the Altoona casino. The city receives about $6 million in annual gaming revenue from Prairie Meadows, which is owned by the county.
Sinha argued that the airport board had the authority to supersede the city’s agreement because the Des Moines city council appointed its members to make decisions about what happens at the airport. He also noted state law authorizes airport authorities to enter into lease agreements at aviation facilities. “Morally, ethically and legally, you will be on sound ground to make this decision today,” Sinha said.
But the airport board’s attorney, Jim Wainwright, disagreed. He said the board is subject to the city’s policies. Airport board member Mark Feldmann added that a “truly robust proposal” would include support from the city and county.
“In your earlier presentation you identified some of the hurdles, but you simply tell us to ignore them because you don’t agree with them. That’s not the way the world works,” he said, and concluded, “I don’t see a path to a licensed casino facility on our grounds. I don’t see why we’d dedicate the effort in face of what is really just a very remote possibility.”
Airport board members said they’re open to future negotiations with Highview Development Group if it can get Des Moines, Polk County and Prairie Meadows to change the revenue-sharing agreement.
Des Moines City Manager Scott Sanders said, “The city of Des Moines has a commitment to Prairie Meadows and Polk County to oppose any casino expansion that is not affiliated with or approved by those two entities.”
Sinha said, “It’s disappointing but not unexpected, because there are a lot of politics to it, let’s face it.” He added he plans to discuss the situation with Wild Rose officials to determine if they have any legal recourse to pursue the casino hotel plan.
Since 1989, Prairie Meadows racino has been the only legal gambling operation in the Des Moines metro area, originally opening as a horseracing track. Slot machines were added in 1995, table gaming in 2004 and sports betting in 2019.
