Iowa Might Wait On Gambling Debate

The chairman of the Iowa Racing and Gaming Commission said Thursday it could be mid-fall before commissioners vote on whether to end a five-year moratorium on the issuing of new gambling licenses.


Michael Mahaffey said he is not yet convinced that the cap clamped in place in 1998 should be removed. And before casting his vote, Mahaffey said he wants a new, comprehensive study on how expansion would affect Iowa’s gaming industry. Mahaffey said he expects the five-member commission to agree with his call for a review at its July 17 meeting.


Backers of expansion had hoped the commission would take definitive action on the moratorium issue in July. His desire for more information would mean a longer wait for a growing list of Iowa communities set to roll the dice on new gaming ventures. Worth County residents voted overwhelmingly Tuesday in favor of bringing riverboat gambling to north-central Iowa.


Palo Alto County voters also approved a gaming referendum. Mason City, Hampton, Des Moines, Fort Dodge, Spirit Lake and Cedar Rapids each are looking into riverboat plans, and Waterloo is considering a proposal that could revive Waterloo Greyhound Park. Iowa already is home to 10 riverboat casinos, three racetracks that offer slot machines and three tribal casinos.


Mahaffey wants a study to determine whether expansion is economically feasible alongside existing operations. Any action that ends up hurting the industry, he argues, could also take a bite out of scarce state revenues.


He also wants data on how expansion would affect gambling treatment efforts, which have lost funding amid budget woes. And Mahaffey said he would seek the input of state lawmakers and Gov. Tom Vilsack, even though the board has the power to lift the moratorium without an OK from Statehouse leaders.


Mahaffey wants the study to be conducted by the same Boston-based consulting firm that studied the state’s industry during the 1990s. Even if the racing and gaming commission votes to lift the moratorium, however, it could be several months before new licenses were handed out, said Jack Ketterer, a commission administrator.


Lifting the cap would mean changing administrative rules, a process that can take 100 days or more. The commission’s action would be considered by the Legislature’s Administrative Rules Review Committee, where lawmakers would have a say.


The committee’s legal counsel, Joe Royce, said lawmakers can sign off on the move, delay action for 70 days or put off action until the end of the next legislative session in April. Eventually, unless the full Legislature steps in, the rules changes would take effect.


In the meantime, commissioners would still need to write new ground rules governing the application and licensing process, including how many licenses would be awarded. Then members would turn to sifting through what promises to be a pile of proposals.