4 new casino licenses OK’d

David Pitt

Thursday, May 12, 2005 | 9:05 a.m.

JOHNSTON, Iowa -- The Iowa Racing and Gaming Commission voted Wednesday to approve casino licenses for Emmetsburg, Riverside, Worth County and Waterloo.

The license awarded in Waterloo was for Isle of Capri Black Hawk County, to be built next to an existing water park. The Isle of Capri also runs casinos in Marquette and Bettendorf.

Commissioners chose the Wild Rose Emmetsburg proposal, within the city of Emmetsburg on a 10-acre lake yet to be built. The Riverside proposal, Washington County Casino Resort, would be located near the intersection of U.S. Highways 218 and 22.

The fourth proposal is Diamond Jo Worth, to be located along Interstate 35 near the Top of Iowa Welcome Center in Worth County.

Commissioners voted 4-1 for the new licenses. Commissioner Mike Mahaffey, the lone opponent, said gambling is bad for Iowa.

"I've heard from many citizens across the state and I think I speak for many of them not here today," he said.

On the opposite end of the spectrum, commissioner Kate Cutler favored issuing six licenses, including projects in Ottumwa and Fort Dodge.

The Waterloo project was favored because of the company's track record of reinvesting in its casinos and the potential for attracting tourists, commissioners said.

"This will be a destination site," commissioner Gerald Bair said.

Waterloo attorney Ed Gallagher, who was spearheading the downtown casino site, said divisions in the community from competing projects likely will fade.

"I think we'll pull together for our community," he said.

The Wild Rose Emmetsburg proposal was favored over another on Five Island Lake. Commissioner chairwoman Diane Hamilton said she preferred to leave the lake in its more natural state.

Steve Heldt, who supported the lake project, said Emmetsburg residents had already agreed to reunite behind whichever project won a license.

"We have an opportunity to go and build our little destination point," he said. "The community is already together."

A 18-hole golf course planned as part of the Riverside proposal would be a tourist attraction, commissioners said.

Commissioners supported the Worth County project because it would draw millions of dollars from Minnesotans. Estimates were that 71 percent of the money spent would come from out of state.

"The people of Worth County were the heart and the soul for this and, with everything combined, we rose to the top. I'm so excited," said Kim Miller, of Northwood, executive director of the Worth County Development Authority.

Eugene Meyer, head of the Iowa Division of Criminal Investigation, said the new casinos will require the hiring of 24 additional agents to maintain "the integrity of the gaming industry." The DCI would need six agents for each new casino, he said.

Two other projects in Waterloo, a second proposal in Emmetsburg and a project in Franklin County did not get licenses. Projects in Ottumwa and Fort Dodge were also denied.

"I couldn't be more disappointed and I couldn't be any more hurt," said Steve Daniel, chairman of the Mineral City Hotel and Casino in Fort Dodge.

"It's hard to bring businesses and companies to an area where there isn't good entertainment venues," he said.

Ottumwa project supporter Mike Moreland said the commission's decision was "disappointing, but by the same token, it's not a death knell for our community. We have other things we're working on."