Iowa panel to mull casino requests

DES MOINES (AP) — A state panel will meet Thursday to consider adding to Iowa’s 20 casinos in a decision that could determine the fate of a proposed Jasper County casino. The Iowa Racing and Gaming Commission will discuss at a meeting in Johnston whether to take applications for gambling licenses. It’s been three years since the state accepted applications, and five communities are lined up with requests: Fort Dodge, Franklin County, Newton, Ottumwa and Tama. Proponents of expansion argue that there’s a demand for more gambling options and that casinos could give communities a big economic boost. “You know, nobody likes to have competition move in, but we think that you could increase tourism by having more gaming in central Iowa,” said Dennis Julius, who heads a group backing a Newton-area casino near the Iowa Speedway. “We think central Iowa is probably an underserved market.” And Steve Siegel, chairman of a nonprofit organization backing an Ottumwa-area casino, said such a development would employ hundreds of people, increase tax revenue and expand entertainment choices. “We very much want the commission to grant more licenses, and we will be in the hunt if they do,” Siegel said. Representatives of the existing casinos, including four that have opened in the last two years, countered that revenues at individual operations have been flat, although overall numbers are up. They blamed a slowing economy, cold weather and competition from other casinos. At Prairie Meadows Racetrack and Casino in Altoona, for example, admissions declined by nearly 13 percent for the seven months ending Jan. 31 compared to the previous year, and gross casino revenue dropped by less than 1 percent. “Everybody’s down,” said Gary Palmer chief executive officer at Prairie Meadows. “A lot of these casinos are having some troubles. They are not going to get any better with competition.” Elsewhere, Herbst Gaming, the owner of Terrible’s Lakeside Casino in Osceola, reported lower-than-expected revenue at the casino. Revenues also were down at casinos in Council Bluffs, the state’s largest gambling market, and two casinos in the Quad Cities. Although the state panel will take up the issue of new casinos, Commissioner Gerald Bair said the group probably wouldn’t act quickly. He said it’s possible the commission won’t reach a decision Thursday, and even if it agrees to take more applications, more casino licenses wouldn’t be approved for at least six months.