The Upper Mississippi Gaming Corporation, the Clayton County, Iowa-based nonprofit license holder of the Lady Luck Casino in Marquette, Iowa, recently signed a new 25-year agreement with Isle of Capri Casinos, owners of the property, to begin in 2019 when the current agreement will expire, announced UMGC Director Sindee Gohde.
Under the new terms, UMGC will earn 3.25 percent of the casino’s adjusted gross income. Meanwhile, Isle of Capri will pay UMGC $50,000 in 2016, $100,000 in 2017 and $200,000 in 2018. Iowa gaming law requires casino owners to pay a minimum of 3 percent of adjusted gross revenues to the nonprofit corporation that holds the venue’s gaming license. UMGC currently uses casino tax revenue for public safety projects.
Under the current agreement, which was negotiated with the former owners of the casino, UMGC receives 50 cents per gambling customer, rather than a percentage of revenues. According to Gohde, that arrangement has cost UMGC hundreds of thousands of dollars each year compared to receiving a percentage of revenues, especially since the number of players at Lady Luck Casino has steadily declined. Last year, she said, UMGC earned about $145,000 from 291,196 customers, but would have received $868,293 if it earned 3.25 percent of revenues.
