Iowa Racing and Gaming Commission Chairman Jeff Lamberti recently defended the commission’s 4-1 vote to deny a casino license for the proposed 4 million Cedar Crossings Casino in Cedar Rapids. Commissioners rejected the license because they said it would take business away from existing casinos.
Lamberti said, “I can’t solve all the world’s problems. I can decide what kind of industry we’re going to have. I know people in Cedar Rapids are disappointed with the decision, but I think it was clearly the right decision.” He stated the commission uses a “destination” model, based on a few casinos that require a large investment. The governor and legislature can change that model, but, he added, “I don’t think Iowa wants a bunch of small slot parlors.”
Lamberti also addressed the commission’s ruling that the Argosy riverboat casino in Sioux City must shut down by July 1 because it lacks a valid license. Some of its 300 employees may be hired by the Hard Rock Hotel & Casino, now under construction in downtown Sioux City. “We obviously stay out of the business of who they hire, but when we started this business, we told the employees we’d try to keep that business open as long as possible relative to the opening day of Hard Rock,” Lamberti said.
He said the Hard Rock should open by the end of July, but “there may be a window” when no casino is operating in Sioux City.
Meanwhile, attorneys Argosy parent Penn National Gaming said the IRGC’s decision not to renew the riverboat’s gaming license was “a complete and utter sham” and petitioned the IRGC to reverse its ruling. “To serve its own interest in shutting down the Argosy Casino just before the new Hard Rock casino is ready to open, the commission made up the question to be decided at the contested case and then answered that question wrongly, by completely ignoring the undisputed facts and laws. The commission’s erroneous and unfair decision should not stand,” attorneys for Penn National said in the application. The IRGC could take up Penn National’s request at its June 12 meeting in Burlington.
Penn National officials said the company also plans to appeal in Iowa District Court and ask a judge to temporarily suspend the commission decision so the Argosy riverboat can stay open while the company pursues its ongoing litigation against the IRGC.
Gaming law expert I. Nelson Rose said the “odds are overwhelming the casino will be able to stay open,” at least until the conclusion of a trial-like judicial review case that is scheduled to begin Sept. 26 in Des Moines. “There’s tremendous weight given to maintaining the status quo until you have a full trial. Imagine what would happen if the trial results show they shouldn’t have taken the license? What happens to all those people who have been thrown out of work for six months?”
Back in Cedar Rapids, Mayor Ron Corbett, a former state lawmaker, noted there is no procedure for appealing the IRGC’s decision, and said he doubted there was any chance for prospect for a legislative solution. He said within 24 hours of the commission’s decision, residents already had contacted him suggesting the land be used for an aquarium, planetarium, water park and other projects.
Cedar Rapids Council member Monica Vernon, chair of the council’s Development Committee, said the city still needed to determine if the casino idea “was completely over.” She said developing a casino on the eight-acre parcel “would have leveraged other private investment and faster. Without something there driving development, it will take longer. But we’re not going to give up.” Vernon added she would oppose selling off the vacant property “without a very purposeful plan” for redevelopment.
