The Argosy Casino Sioux City made a request to renew its state license. The Iowa gaming regulators denied that request. They cited the basis of their refusal on the absence of an agreement that involves a local nonprofit group. They stopped short of closing down the floating casino.
According to the Iowa Racing and Gaming Commission, the casino is allowed to stay open. The commission reported that the casino can operate indefinitely as the owner makes appeals on several gaming commission rulings. The appeals will come through legal and administrative channels. The commission meeting took place at Riverside Casino and Golf Resort which is located near Iowa City.
In addition, the commission did go ahead and reaffirm its stated desire that the floating gambling boat be replaced by a land-based casino and that this take place before the opening of the new Hard Rock Hotel and Casino in Sioux City. This facility is planned for opening sometime next summer.
For its part, Argosy did not accept the ruling quietly. The attorney for the owner, which is Penn National Gaming Inc, strongly objected to the denial of the renewal of the license, stating that this was nothing more than a continuation of a pattern of “trampling just about every procedural and substantive right an Iowa gaming operator has under state law and the U.S. Constitution”. The attorney is Chris Tayback. He went on to say that the decision was all but “preordained” as the commission has already decided to grant this new, second Woodbury County license for the land-based casino.
Back in April, the commission voted (it was a split vote) to select the Hard Rock group for the new land-based casino. There were three other proposals, which also included two separate sites offered by Penn National. The commission is composed of five members.
In June of 2012, the commission had decided that it would accept bids for the Woodbury County license. This took place after the commission expressed mounting frustration after months of failed contract negotiations between Penn National and the Missouri River Historical Development, its local nonprofit sponsor.
The gaming law in Iowa is unique. It requires casino operators who run operations in counties approving of casino gambling to sign special operating agreements with certain nonprofit groups. These groups are known as Qualified Sponsoring Organizations.
According to commission Administrator Brian Ohorilko, Argosy has not met this test and is not legally able to possess a state operator’s license. He also recommended that the commission deny the renewal of the license.
Attorney Tayback went on to argue that the commission was voting prematurely. He based this on the current status of the Missouri River Historical Development’s contract between itself and Penn National which is still being worked over. At present, Penn National, which is the second-largest casino operator in the nation, is the development over a breach of contract. The suit was filed in Polk County District Court. The lawsuit is requesting a Polk County judge to look into the commission’s refusal (of last summer) in which it failed to ratify a short-term contract extension. The extension had been signed by both parties.