Encyclopedia Dubuque
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Affiliated with the Local History Network of the State Historical Society of Iowa, and the Iowa Museum Association.
RIVERBOAT GAMBLING: Difference between revisions
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The effect of the increased competition hit the Iowa riverboat gambling industry quickly. In 1992 the three riverboats located in Bettendorf, Dubuque, and Burlington closed. In 1993 total revenue fell to $54.3 million and the number of visitors to 1.7 million. | The effect of the increased competition hit the Iowa riverboat gambling industry quickly. In 1992 the three riverboats located in Bettendorf, Dubuque, and Burlington closed. In 1993 total revenue fell to $54.3 million and the number of visitors to 1.7 million. | ||
In April of 1993, the Belle departed the Ice Harbor, after being sold to St. Charles Riverfront Station which moved the boat south to eventually start up a Missouri gaming operation. (4) The sale of the Casino Belle forced hotel operators to contact groups and associations that had booked rooms about other possibilities including the [[DUBUQUE GREYHOUND PARK]] or gambling on the Silver Eagle docked in East Dubuque, Illinois. (5) The decision to sell the boat did not surprise gambling regulators. Chuck Patton, riverboat gambling director of the Iowa Racing and Gaming Commission, was quoted as saying gambling operators in other states with no limits soon discovered that it took two years to build a top of the line quality boat. It was easier to buy one. (6) | In April of 1993, the Belle departed the Ice Harbor, after being sold to St. Charles Riverfront Station which moved the boat south to eventually start up a Missouri gaming operation. (4) The sale of the Casino Belle forced hotel operators to contact groups and associations that had booked rooms about other possibilities including the [[DUBUQUE GREYHOUND PARK AND CASINO]] or gambling on the Silver Eagle docked in East Dubuque, Illinois. (5) The decision to sell the boat did not surprise gambling regulators. Chuck Patton, riverboat gambling director of the Iowa Racing and Gaming Commission, was quoted as saying gambling operators in other states with no limits soon discovered that it took two years to build a top of the line quality boat. It was easier to buy one. (6) | ||
Despite the poor performance and then closing of three of Iowa's riverboats, legislation to relax gambling regulation repeatedly failed. Riverboat gambling according to many had been successful in promoting tourism and was never intended to become an industry. Despite setbacks, pressure continued from riverboat owners to lift betting/loss limits and space restrictions. These people were joined by parimutuel racetrack owners who wanted slot machines and even Iowans who favored less restriction. Concerns about the effects of gambling eventually led the Iowa House to only approve the new legislation by a 51-49 vote. Before gambling laws could be eased, local approval was required in counties where riverboats and racetracks were operated. This occurred in May 1994. While expanding casino space took time, the removal of betting/loss limits and sailing requirement were made almost immediately. | Despite the poor performance and then closing of three of Iowa's riverboats, legislation to relax gambling regulation repeatedly failed. Riverboat gambling according to many had been successful in promoting tourism and was never intended to become an industry. Despite setbacks, pressure continued from riverboat owners to lift betting/loss limits and space restrictions. These people were joined by parimutuel racetrack owners who wanted slot machines and even Iowans who favored less restriction. Concerns about the effects of gambling eventually led the Iowa House to only approve the new legislation by a 51-49 vote. Before gambling laws could be eased, local approval was required in counties where riverboats and racetracks were operated. This occurred in May 1994. While expanding casino space took time, the removal of betting/loss limits and sailing requirement were made almost immediately. |
Revision as of 01:09, 26 May 2016
RIVERBOAT GAMBLING. In March 1989 the Excursion Gambling Boat Act was passed by the Iowa Legislature. This law allowed limited, low-stakes casino gambling on Iowa's rivers and lakes beginning April 1, 1991. Iowa became the fourth state to adopt non-Indian, commercial casino gambling preceded by Nevada (1931), New Jersey (1976), and South Dakota (1988) and the first state to introduce riverboat gambling. While the legislation was promoted as economic development, the regulatory nature of the legislation was designed to maintain the wholesome image of Iowa. There was a $5 minimum wager and a $200 loss limit per excursion. Only 30% of the boat's square footage could be devoted to the casino, sailing was mandated rather than dockside gambling, and sections of the boat had to be devoted to persons under 21 years of age and to Iowa arts and crafts. Riverboats were chosen over land-based casinos because it was thought they would provide the greatest economic stimulus for surrounding businesses.
Dubuque interests were quick to capitalize on the new legislation. In 1990 The DUBUQUE RACING ASSOCIATION was first applicant approved to operate a river gambling boat in the state of Iowa. Robert KEHL had the DUBUQUE CASINO BELLE constructed and quickly moved to the ICE HARBOR. The Dubuque Casino Belle made her maiden voyage on April 1st 1991. From April 1, 1991, to March 31, 1992, Dubuque Casino Belle Inc. sold single-price admission tickets to the riverboat that entitled a patron to: (1) admission to the boat; (2) a cruise on the MISSISSIPPI RIVER during cruising season; (3) admission to the gambling casinos on the boat if the patron was more than twenty-one years old; (4) a buffet meal; and (5) admission to any entertainment. Tickets were $39.95 for a dinner cruise and $29.95 for a lunch or brunch cruise. During 1990 season, more than 250,000 people cruised with Roberts River Rides.
In the first year of riverboat operation, the Dubuque Racing Association prepaid, in its entirety, Ice Harbor improvement financing in excess of $4 million. (1) This resulted in the DRA remaining Iowa’s only nonprofit, debt-free pari-mutuel and riverboat licensee.
In 1991, Iowa's riverboats earned $63.8 million from 2.1 million visitors. In 1992 the revenue increased to $70.5 million and 2.2 million guests.
The success of riverboat gambling led to the construction of four new lodging facilities with 350 rooms, new restaurants, shopping facilities and tourist amenities in Dubuque. The DRA also pledged a large portion of its profits from the boat to the city. For the fiscal year ending June 30, 1992 the city received about $333,000. (2) In 1992 the city and county applied money raised from gambling to the general fund rather than target it to specific projects. (3)
The success of Iowa riverboats brought quick competition from surrounding states. In January 1990 the Illinois Legislature passed the Riverboat Gambling Act, and boats began operating from Illinois on September 11, 1991. The first boats at Alton and Peoria were distant enough not to affect the Iowa market, but in 1992 Illinois boats operating with less regulation opened in Rock Island and East Dubuque.
The effect of the increased competition hit the Iowa riverboat gambling industry quickly. In 1992 the three riverboats located in Bettendorf, Dubuque, and Burlington closed. In 1993 total revenue fell to $54.3 million and the number of visitors to 1.7 million.
In April of 1993, the Belle departed the Ice Harbor, after being sold to St. Charles Riverfront Station which moved the boat south to eventually start up a Missouri gaming operation. (4) The sale of the Casino Belle forced hotel operators to contact groups and associations that had booked rooms about other possibilities including the DUBUQUE GREYHOUND PARK AND CASINO or gambling on the Silver Eagle docked in East Dubuque, Illinois. (5) The decision to sell the boat did not surprise gambling regulators. Chuck Patton, riverboat gambling director of the Iowa Racing and Gaming Commission, was quoted as saying gambling operators in other states with no limits soon discovered that it took two years to build a top of the line quality boat. It was easier to buy one. (6)
Despite the poor performance and then closing of three of Iowa's riverboats, legislation to relax gambling regulation repeatedly failed. Riverboat gambling according to many had been successful in promoting tourism and was never intended to become an industry. Despite setbacks, pressure continued from riverboat owners to lift betting/loss limits and space restrictions. These people were joined by parimutuel racetrack owners who wanted slot machines and even Iowans who favored less restriction. Concerns about the effects of gambling eventually led the Iowa House to only approve the new legislation by a 51-49 vote. Before gambling laws could be eased, local approval was required in counties where riverboats and racetracks were operated. This occurred in May 1994. While expanding casino space took time, the removal of betting/loss limits and sailing requirement were made almost immediately.
In addition to riverboats, racetracks also benefited from the new legislation. Racetracks were permitted to have slot machines and operated 24 hours daily. Slot machines quickly subsidized the racing. In 1996 the total parimutuel revenue at Iowa three tracks was $18.8 million. Slot machine revenue, however, for the same period was $257.6 million.
Soon after the Casino Belle sale, the DRA began a search for an alternate boat, and selected the Greater Dubuque Riverboat Entertainment Company as the new boat operator. The GDREC’s boat, the Dubuque Diamond Jo Casino, was stretched and refurbished for a capacity of 700 people, and became operational May 18, 1994. In early October 1995, GDREC replaced the original Diamond Jo Casino with a larger 1,500-passenger, 305-foot vessel, which was placed in operation at Dubuque’s Ice Harbor. In July 1999 Peninsula Gaming purchased the Diamond Jo Casino. Peninsula Gaming continued to operate the vessel.
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Source:
1. Webber, Steve. "Kehl Writes Another Chapter," Telegraph Herald, August 24, 1992, p. 1
2. Hanson, Lynn and Webber, Steve. "City Officials Find Belle Rumors True," Telegraph Herald, August 24, 1992, p. 10A
3. Arnold, Bill and Japsen, Bruce. "Wanted: 1 Revenue Riverboat," Telegraph Herald, August 26, 1992, p. 1.
4. Bergstrom, Kathy. "DRA Reviews Contract," Telegraph Herald, August 25, 1992, p. 1
5. Bergstrom, Kathy. "Belle Decision Leaves Rough Wake," Telegraph Herald, August 25, 1992, p. 1
6. Webber, Steve and Bergstrom, Kathy. "Gambling Regulators Not Shocked by Kehl Announcement," Telegraph Herald, August 25, 1992, p. 4A.
Dubuque Greyhound Park and Casino, http://cicotello.com/Pictures%20and%20Information/USA/States/Iowa/Cities/D-L/Dubuque/Dubuque%20Greyhound%20Park%20&%20Casino/Dubuque%20Greyhound%20Park%20and%20Casino.htm
Iowa Tax Law Library Document 03300031
Nichols, Mark W. "History and Deregulation of Riverboat Gambling in Iowa and Illinois," Journal of Gambling Studies, online:www.business.unr.edu/faculty/.../cross%20border%20substitution.pdf