Iowa Nonprofit Sues Former Argosy Operator

Sun, Dec 11, 2016

Community Action Agency of Sioux City in Iowa recently sued the Belle of Sioux City, a Penn National Gaming subsidiary that operated the former Argosy Sioux City riverboat casino. The agency wants $2 million in unpaid revenue-sharing payments for itself and more than 50 other nonprofits.

The nonprofit organization Community Action Agency of Sioux City has filed a million lawsuit against the Belle of Sioux City, a subsidiary of Penn National Gaming Inc. Belle operated the former Argosy Sioux City riverboat casino.

Community Action is asking for $2 million in revenue-sharing payments for up to 54 nonprofits, including itself, which received grants from Missouri River Historical Development. MRHD, a state-licensed nonprofit, distributed some of the casino’s gambling profits.

However, Penn quit making revenue-sharing payments to MRHD in April 2013, when Penn sued MRHD for breach of contract. Penn wanted a third party to be appointed to distribute the funds until the lawsuit was settled, but the court denied that request. Now Community’s lawsuit is an attempt to collect those withheld funds.

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