Iowa gaming commission votes to lift moratorium

David Pitt

Friday, June 11, 2004 | 9:10 a.m.

JOHNSTON, Iowa -- The Iowa Racing and Gaming Commission voted Thursday to begin the process of lifting a moratorium on new casino licenses in the state.

The commission voted 4-1 to remove the limit, but the change won't become official until after the commission holds a series of public meetings.

Several counties seeking to bring gambling to their communities asked the commission to lift the moratorium, which was imposed in 1998. The commission sought guidance from the Legislature, which referred the question back to the commission.

About 250 people, most of them from the six counties seeking to build casinos, packed into a meeting room to show their support for expanded gambling, and the economic boost they say gambling would bring to their communities.

"We are crying out for economic development in the rural areas," said Rep. Mary Gaskill D-Ottumwa.

Ed Gallagher, a Waterloo attorney and president of the nonprofit organization hoping to sponsor a riverboat in Black Hawk County, said the 600 jobs created with a new casino are badly needed.

Opponents, including Michael Hartwig, vice president of community affairs for the Iowa Family Policy Center, asked the commission to delay action until after a study to research the social impact of gambling is completed.

In passing a bill permitting gambling expansion, the Legislature also required a $100,000 study.

Commission members agreed to ask the Legislature to complete the study by December so they could consider its results in making their decision.

"Common sense dictates that you seek out as much information as possible," Hartwig said.

Lana Ross, representing the United Methodist Church, also asked the commission to wait until the study is done.

"We have a great concern about gambling in the state of Iowa, concerns about the families that hurt," she said, her voice breaking with emotion.

Commission chairman Michael Mahaffey was the single opposing vote. He said polls have shown a majority of Iowans have serious reservations about more casinos.

The state regulates 10 casinos, two dog racing tracks and one horse track. Voters in Palo Alto, Worth, Black Hawk, Wapello, Franklin and Webster counties have approved referendums to allow gambling, seeking their own piece of the multimillion-dollar activity.

With 13 casinos and three American Indian operations, Iowa is on the road to looking like Nevada or Mississippi in the number of casinos, Mahaffey said.

"I don't know for the life of me why Iowa wants to be like Nevada or Mississippi," he said.

He said the counties relying on gambling to fix their economy problems should look else where.

"I would like to think hope in the state of Iowa is more than a gambling vote," he said.

The four other commission members said counties favoring casinos should have an opportunity to pursue one.

"This gives small communities a chance to improve, to develop their towns a little bit," said commissioner Diane Hamilton.

The commission, which will decide how many licenses it will approve before it makes a decision, set a Nov. 10 deadline for applications for new licenses.

Commission Administrator Jack Ketterer said after a license is approved, a background check of applicants is required.

That process takes six-to-eight months and Ketterer said the soonest a new casino could likely open would be 2006.