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IRGC Meeting - Altoona

Meeting Time: Tuesday, March 10, 2020
Meeting Location

Prairie Meadows Racetrack and Casino
One Prairie Meadows Drive
Altoona , IA 50009

Meeting Agenda Document:
Meeting Agenda

1.APPROVE AGENDA
2.APPROVE MINUTES – From February 3-4, 2020 Commission Meeting
3.ANNOUNCEMENTS
A. April 16, 2020 – Ameristar Casino, Council Bluffs (Submissions are due by April 2, 2020)
B. May 2020 – No Meeting
C. June 4, 2020 – Grand Falls Casino Resort, Larchwood
4.RULES
A. Notice of Intended Action (See Attached)
B. Final Adopt (See Attached)
5.SPORTRADAR – Zach Schloss, Integrity Strategy Manager
6.NATIONAL PROBLEM GAMBLING AWARENESS MONTH – Eric Preuss, Program Manager, Iowa Gambling Treatment and Prevention Program
7.REMODELING
A. Dubuque Racing Association, Ltd. – Request for Remodeling Pursuant to IAC 4915.4(15)
B. Prairie Meadows Racetrack & Casino, Inc. – Hotel Renovation Project
8.EXCURSION GAMBLING BOAT AND GAMBLING STRUCTURE LICENSE RENEWALS (OSV – OUT OF STATE VENDOR; RP = RELATED PARTY)
A. Iowa West Racing Association/Ameristar Casino Council Bluffs, LLC
B. Iowa West Racing Association/Harveys Iowa Management Company LLC
C. Washington County Riverboat Foundation, Inc./Riverside Casino & Golf Resort, LLC
D. Worth County Development Authority/Diamond Jo Worth, LLC d/b/a Diamond Jo Worth
E. Black Hawk County Gaming Association/IOC Black Hawk County, Inc. d/b/a Isle Casino Hotel Waterloo Contracts:
1.Sealy Corporation – Manufacturer of Mattresses/Bedsprings
2.Home Depot – Maintenance and Housekeeping Supplies
3.Witham Auto Center – Car Dealership for Marketing Promotional Items
F. Missouri River Historical Development, Inc./SCE Partners, LLC d/b/a Hard Rock Hotel & Casino Sioux City
G. Regional Development Authority/Rhythm City Casino, LLC
H. Scott County Regional Authority/Isle of Capri Bettendorf, L.C.
I. Dubuque Racing Association, LTD/Diamond Jo, LLC d/b/a Diamond Jo Casino Contracts:
1.Conlon Construction – Miscellaneous Maintenance Projects
2.Conference Technologies, Inc. (CTI) – Digital Signage Project
J. Dubuque Racing Association, LTD
K. Lyon County Riverboat Foundation, Inc./Grand Falls Casino Resort, LLC Contracts:
1.Atmosphere Commercial Interiors – Renovation Project: Hotel FF&E (OSV)
2.Guest Supply by Sysco – Renovation Project: Hotel Soft Goods
3.Henrickson – Renovation Project: Floor Coverings (OSV)
4.Tim Dally Drywall, Inc. – Renovation Project: Drywall Materials & Labor (OSV)
L. Clarke County Development Corporation/HGI-Lakeside, LLC
M. Southeast Iowa Regional Riverboat Commission/Catfish Bend Casinos II, LLC
N. Clinton County Development Association/Wild Rose Clinton, L.L.C. Contract: Mediacom Business Solutions – High Speed Internet Service
O. Grow Greene County Gaming Corporation/Wild Rose Jefferson, L.L.C.
P. Palo Alto County Gaming Development Corporation/Wild Rose Emmetsburg, L.L.C.
Q. Upper Mississippi Gaming Corporation/Casino Queen Marquette, Inc.
9.CONTRACT APPROVALS (OSV – OUT OF STATE VENDOR; RP – RELATED PARTY)
A. Iowa West Racing Association d/b/a Horseshoe Casino
1.Bry-Lex – Promotional Items (OSV)
2.Philcor TV and Electronic d/b/a Nedco Supply – TV and Electrical Equipment Vendor (OSV)
3.Pinnacle Construction, Inc. – Construction Vendor
B. Prairie Meadows Racetrack & Casino, Inc. d/b/a Prairie Meadows Racetrack & Casino
1.OGN Racing – Potential Supplier for Kiosks that Sell Racing Forms (Profit Sharing Agreement) (OSV)
2.Vest Racing USA Inc. -Potential Supplier for Kiosks that Sell Racing Forms (Profit Sharing Agreement) (OSV)
10.IOWA GREYHOUND ASSOCIATION D/B/A IOWA GREYHOUND PARK
A. Request for Season Approvals
B. Contract: United Healthcare – Renewal of Health Insurance for Full-time Employees
11.HEARINGS
A. Diamond Jo Worth, LLC – For a violation of Iowa Code 99F.4(22) (Self-Exclusion)
B. SCE Partners, LLC -For a violation of Iowa Code 99F.4(22) (Self-Exclusion)
C. Prairie Meadows Racetrack & Casino, Inc. -For a violation of Iowa Code 99F.4(22) (Self-Exclusion)
12.PUBLIC COMMENT
13.ADMINISTRATIVE BUSINESS
A. Review of Year-to-Date Economic Impact Reports
B. Notice of Horse Racing Promotion Fund
14. ADJOURN

Meeting Minutes Document:
Meeting Minutes

The Iowa Racing and Gaming Commission (IRGC) met at Prairie Meadows Racetrack & Casino in Altoona, Iowa. Commission members present were Kris Kramer, Chair; Carl Heinrich, Vice Chair; and members Julie Andres, Pennie Gonseth Cheers, and Jeff Lamberti. 

APPROVE AGENDA:  Chair Kramer called the meeting to order at 8:30 AM and requested a motion to approve the agenda. Commissioner Heinrich moved to approve the agenda as presented. Commissioner Andres seconded the motion, which carried unanimously.  

APPROVE MINUTES:  Chair Kramer requested a motion to approve the minutes from the February 3-4, 2020 Commission meeting. Commissioner Gonseth Cheers moved to approve the minutes as submitted. Commissioner Andres seconded the motion, which carried unanimously. 

ANNOUNCEMENTS: Chair Kramer called on Brian Ohorilko, Administrator of IRGC, for announcements.  Mr. Ohorilko advised the next meeting will be held on April 16th at Ameristar Casino in Council Bluffs.  Submissions for the meeting are due in the Des Moines office by April 2, 2020.  There will be no meeting in May.  The following meeting will be on June 4th at Grand Falls Casino Resort in Larchwood. 

RULES:  Chair Kramer called on Mr. Ohorilko to address the rules before the Commission.  Mr. Ohorilko advised there are two rule packages before the Commission, the first is a Notice for Intended Action.  This package brings the Commission in compliance with legislation that was passed for agencies that issue occupational licenses. Specifically, it rescinds a requirement to deny an occupational license for a receipt of a Certificate of Non-Compliance from the College Student Aid Commission.  These changes should bring the Commission in compliance with that legislation. Mr. Ohorilko requested approval of the rules submitted under Notice of Intended Action. 

Hearing no comments or questions, Chair Kramer requested a motion.  Commissioner Andres moved to approve the Notice for Intended Action.  Commissioner Gonseth Cheers seconded the motion, which carried unanimously. 

Mr. Ohorilko reported the second package is for Final Adoption.  These rules are related to sports wagering and fantasy sports contests.  The process for these rules began last July.  This is the same package that was before the Commission at the November meeting.  At that meeting, Mr. Ohorilko noted Commission staff had received questions and comments from DraftKings.  Commission staff responded to them in November, and have not had additional conversations with them.  No additional comments or questions have been received from stakeholders or the Administrative Rules Committee.  Mr. Ohorilko requested approval of the Final Adoption of the rules.

Hearing no comments or questions concerning the rule, Chair Kramer requested a motion to approve the rule.  Commissioner Andres moved to approve the rules for final adoption, Commissioner Lamberti seconded the motion, which carried unanimously. 

SPORTRADAR – Zach Schloss, Integrity Strategy Manager at Sportradar, stated they are a sports betting technology company operating at the intersection of sports media and betting.  Mr. Schloss is a member of Sportradar Specialized Integrity Services Unit, which partners with sports leagues, regulators, and law enforcement around the world to protect and safeguard sports from various types of corruption with particular focus on betting-related corruption. 

Mr. Schloss focused on three primary areas: introduction to Sportradar; Advanced Technology Monitoring Betting; and Integrity Education on Best Practices.

The Specialized Integrity Services Unit, which has been in existence for 15 years, got their start in 2004/2005 as a result of some match fixing cases in European soccer.  They continued to expand their support to different sports in several countries; and expanded into the United States in 2015-2016 for the first time. 

Mr. Schloss stated he works closely with the Minneapolis bet monitoring hub, which has several integrity analysts monitoring betting activity in real time. They are focused primarily on United States sports, but are supported by four other bet monitoring hubs around the world.

Sportradar partners with more than 85 different sporting bodies around the world across more than 20 sports. If there is betting activity or interest of any kind, Sportradar is providing support in some manner.  Particularly in the United States, Sportradar is working with all of the most prominent sports bodies. 

Mr. Schloss stated that wherever possible, and when it’s not in conflict with their integrity relationship with the sports leagues and regulators, Sportradar supports law enforcement officials.  Over the years, Sportradar has worked with more than 30 different law enforcement agencies around the world.  In some cases, they try to establish a more formal relationship with a Memorandum of Understanding (MOU) in place to facilitate and enable information sharing. 

Mr. Schloss moved to the monitoring and detection piece of Sportradar’s support.  This area of the business provides support to the investigative side of sports betting when suspicious activities are identified; anti-doping programs or consultation services to help draft integrity policies or procedures.  He stated Integrity Education has been very popular in the past couple of years in the United States.  Mr. Schloss reported Sportradar has an Intelligence Investigation Team made up of former law enforcement officials and military police with investigative backgrounds. 

At Sportradar’s core is the Fraud Detection System (FDS), which operates on a two tier approach.  Stage 1 is the automated system which scans odds and lines from more than 600 betting operators around the world and identifies unusual betting preferences, strong odds movements or other anomalies.  Stage 2 is the human element consisting of a global team of 50 integrity analysts worldwide looking at every instance flagged by the system to determine if there was a reasonable explanation. 

Since 2008, Sportradar has identified over 4,700 games across all sports as being very likely to have been fixed for sports betting purposes.  These numbers are going up over time as more games and sports are monitored.  Mr. Scholl noted Sportradar wants to hold people accountable, and their work has played a role in hundreds of individuals being sanctioned by their sport and, in some cases, individuals being held criminally accountable.

NATIONAL PROBLEM GAMBLING AWARENESS MONTH: Eric Preuss, Program Manager of the Iowa Gambling Treatment and Prevention Program (IGTPP) in the Iowa Department of Public Health (IDPH), thanked the Commission for the opportunity to talk about problem gambling, noting this is the 16th year for National Problem Gambling Awareness Month.  Groups are holding conferences, airing public service announcements, providing counselor training, hosting screening days, running social media campaigns, and many other activities to increase public awareness of problem gambling and the availability of prevention, treatment and recovery services across the country. 

Mr. Preuss stated commercials have been airing on TV and radio this month to raise awareness of problem gambling and the help that is available in Iowa.  He noted Iowa has many gambling forms to choose from, including 24 casinos, over 2,400 lottery vendors, over 2,700 annually licensed social and charitable gambling events and over 5,600 amusement games.  Iowans also have access to a broad range of social media and smart phone gambling-like games and applications, as well as an expanding number of internet-based and other illegal gaming.  With the legalization of sports wagering and internet fantasy sports contests in Iowa, Iowans have even more legal choices.  As a serious public health issue, problem gambling requires the IGTPP to continue to work toward a comprehensive solution which involves working with various federal programs, local and state programs, the gambling industry, the non-profit sector, many professional sectors and other organizations.  All play a critical role in successfully addressing problem gambling, including adherence to the responsible gaming standards established by the NCPG in partnerships with problem gambling organizations and assisting with the funding and support of problem gambling related programs across the country. 

Mr. Preuss stated it is important to continue to raise awareness and take the necessary steps to reduce the harmful effects of problem gambling.  Many Iowans impacted by problem gambling continue gambling because they don’t know they have a problem, don’t know what problem gambling is or where to get help.  Gambling-related behaviors can compromise, disrupt, or damage family or vocational pursuits.  Although no substance is ingested, the individual experiencing problem gambling gets the same effects from gambling someone else might get from taking a tranquilizer or having a drink.  Just as tolerance develops to drugs or alcohol, a gambler finds that it takes more and more of that same gambling experience to achieve the same emotional effect, creating an increased craving for the activity.

Mr. Preuss stated the signs and symptoms of problem gambling include a preoccupation with gambling, looking forward to the weekend, needing to bet more and more money, increasing restlessness or irritability, attempting to stop or cut back, becoming argumentative or defensive about their gambling, or asking for loans.  In some extreme cases, problem gambling can result in financial ruin, legal problems, loss of career and family, even suicide.  Anyone who gambles can develop a problem if they are not aware of the risks and do not gamble responsibly.  Groups that are at a higher risk for problem gambling include senior citizens, adolescents, college students, athletes, veterans, and those with mental health or substance use disorders. 

A study conducted in Iowa in 2018 showed nearly 9 out of 10 adults have gambled in their lifetime; a little more than 7 out of 10 adults have gambled in the past twelve months and 50% of adult Iowans have gambled in the last 30 days.  From a global aspect as to how many Iowans might be showing signs or symptoms of problem gambling, it’s about 315,000 adults or about 14% of the adult population.  Approximately 1%, or 19,000 Iowans meet the full criteria for a gambling disorder.  This study also showed that one in 20 adults had bet on sport in the previous 12 months, prior to sports betting being legal in the state. He noted 99% of individuals participating in sports betting also participate in other forms of gambling, and are twice as likely to develop problem gambling issues.

In the past 10 years, over 78,000 hours of prevention services have been provided, reaching every county in Iowa.  Over 9,000 Iowans have sought treatment over the last 10 years.  In any given year, about 5% percent are concerned persons, about 40% are employed full time, 90% have completed high school, about 55% started gambling before the age of 21 and about 45% have received treatment for a substance use disorder.  As of 2019, slots, at 70%, remain the number one primary wagering method reported for individuals seeking treatment.  Other gambling methods reported are: Iowa Lottery tickets - 14.1%, table games at about 12.9%, and sports wagering at 4.1%

Many Iowans are aware of 1-800-Bets-Off, which is now part of Your Life Iowa. This program allows Iowans to seek help for themselves, their families, or family members who may not be willing to seek help or come in for services.  Your Life Iowa is the resource stop for prevention and treatment information for problems related to alcohol, drugs, gambling and suicide.  Help and information is available 24/7 - 365 days a year via phone, text and online chat.  The centerpiece of Your Life Iowa is the Your Life Iowa.org website.  As of SFY 2019 there have been approximately 9,000 contacts specific to all three subjects, with 4,600 of them directly related to problem gambling.  The website itself had 147,000 visits in SFY 2019; over 33,000 were specific to problem gambling.  Help for problems with alcohol, drugs, gambling and suicide are just a call or click away and, if desired, individuals are put in contact with a provider at the time they call, increasing the likelihood that the caller will take the next step to accessing help. 

Last year over 475 referrals were made for gambling help in the state of Iowa; over 700 referrals were made for non-Iowans to get help in the state in which they reside.  Approximately 1,700 Iowans contacted Your Life Iowa and 1-800-Bets-Off, and over 66,000 Iowans visited Your Life Iowa last year. 

Mr. Preuss reported a survey conducted in 2016 showed substance use disorders are about 3.8 times more common than gambling disorders, but public funding for substance use treatment is about 334 times greater than all public funding for problem gambling in the United States.  There is approximately $24.4 billion provided for substance use disorders, but only $73 million is allocated for the treatment and prevention of problem gambling. 

Funding for problem gambling and treatment services in Iowa comes to IDPH as part of the general fund allocation for addiction services.  IDPH receives about $2.99 million; they also received $300,000 from sports tax fund as part of the legalization of sports wagering in Iowa. 

While Iowa remains in the top 10 per capita spending for problem gambling prevention and treatment services, per capita expenses have fallen from just under 90 cents in SFY 2016 to 20 cents in SFY 2020.  The national average is 23 cents; in the forty states that fund problem gambling, the per capita average is 37 cents. 

IGTPP has trained over 30 prevention professionals on how to implement the stacked deck curriculum, which is an evidence-based curriculum specifically for students in grades 9 – 12.  This program helps them understand and raise awareness of problem gambling and assists in developing peer support strategies to reduce the harms associated with gambling. 

The IGTPP completed research with Iowans at risk for problem gambling as well as a focus group of youth and concerned family members to better understand what message needs to be heard to help reduce the stigma and barriers associated with seeking help.  In conjunction with these efforts, a new responsible gaming booklet will be used to provide uniform training on responsible gaming across the state.  Treatment providers are also ratcheting up their efforts to identify Iowans experiencing problems related to their gambling.  Providers are providing early intervention and other treatment services to allow individuals to get their lives back on track. 

In closing, Mr. Preuss expressed his hope the information presented will help raise awareness of problem gambling as a serious public health issue in Iowa, and the availability of help.  He stated the IGTPP and its stakeholders are committed to reducing the harm caused by problem gambling; being aware of problem gambling and how to help is important.  Help is available 24/7 365 days at 1-800-Bets-Off or YourLifeIowa.org.

REMODELING

Dubuque Racing Association, Ltd.: Jesús Avilés, President and CEO of the Dubuque Racing Association (DRA), provided background information about the island on which the Q Casino is located.  Mr. Aviles stated the DRA provided funding to assist in building a sports hockey ice arena on the island, which has been a great success.  Mr. Aviles advised the DRA purchased the hotel five year ago; that is going well and has the highest occupancy rate for Dubuque.  He stated he had presented a project, to be funded by the DRA, regarding improvements to the Chaplain Schmitt Veterans Memorial site.  Work has started on the improvements, and is expected to be completed next year.

Mr. Aviles stated they are here to announce another construction project on Schmitt Island.  Brian Rakestraw, General Manager of Q Casino, advised the proposal is to develop a new hotel tower with an event center adjacent to the existing Q Casino building and Hilton Garden Inn. The new hotel’s site location provides a much-needed improved connection between the existing Hilton Garden Inn and casino. The new hotel will provide additional options for entertainment, community, or private events with a banquet hall on the first floor and additional meeting space on the mezzanine above the second floor.   Floors three through eight will be a mix of 76 to 83 hospitality suites and conventional rooms, which will provide views of downtown Dubuque, the Mississippi River and the bluffs. A roof-top restaurant and bar is also planned that will offer spectacular views. The project will be about 90,000 square feet and has a projected budget of $22 million.  Ground breaking is planned for spring 2020 with a completion date of Spring/Summer 2021.

Mr. Rakestraw introduced Matt Cohen, RDG Planning & Design architect.  Mr. Cohen, represent the entire design and project management team, advised he project manager is Gronen, located in Dubuque, IIW has provided civil & instructional services, and RDG is the design lead on the architecture. Mr. Cohen reviewed the details of the project plans for the Commissioners. 

Hearing no comments or questions, Chair Kramer requested a motion. Commissioner Andres moved to approve the remodeling project as submitted. Commissioner Heinrich seconded the motion, which carried unanimously. 

Prairie Meadows Racetrack & Casino, Inc. (PMR&C): Gary Palmer, General Manager for PMR&C, stated the hotel was opened in 2012, and have had a significant amount of traffic utilizing the hotel services, so it is time for some updates and remodeling.  The schedule shows 168 guest rooms, 39 suites, hallways, lobby, and lounge will be remodeled.  Currently, a couple of model rooms are being constructed.  Remodeling is slated to begin in the third quarter of this year, with completion in the first quarter of 2021.  There is a total of $8 million budget.  They have contracted with The Weitz Co. and will use local union sub-contractors.  Mr. Palmer advised they are not building anything new, but remodeling existing space. 

EXCURSION GAMBLING BOAT AND GAMBLING STRUCTURE LICENSE RENEWALS (OSV – OUT OF STATE VENDOR; RP = RELATED PARTY):  Chair Kramer moved to the license renewals and advised the contracts submitted for approval would be approved separately from the licenses.

Iowa West Racing Association/Ameristar Casino Council Bluffs, LLC (IWRA/Ameristar):  Pete Tulipana, Executive Director of the IWRA, stated Ameristar and IWRA continue to have a healthy partnership, and IWRA is grateful for their commitment to the community.  In December 2019, IWRA reached the milestone of distributing $500 million in grants and initiatives in their 23-year history.  Most of IWRA’s grants require a 50% match; therefore, approximately $1 billion has been invested in southwest Iowa. 

Mr. Tulipana highlighted many projects which have received funding and transformed the community, one of which is the Pottawattamie Arts Culture and Entertainment (PACE).  IWRA made the lead grant of $9 million, and then took the lead in raising an additional $18 million. A historic home was renovated, and is now home to four arts organizations.  Because of gaming and their valued relationship with Ameristar, IWRA is able to have a significant impact on the region.  Mr. Tulipana requested approval of their license.

Paul Czak, General Manager, concurred with Mr. Tulipana’s remarks regarding the relationship between Ameristar and IWRA.   He stated the facility was impacted by flooding from March through November; but continued to invest in their property and community.  Capital spending increased just over $1 million from the previous year, including projects like The Book at Amerisports, which has been very successful.  They remodeled their employee dining area to provide a healthier atmosphere and better choices for team members.  Last year they employed over 700 team members from 26 different Iowa cities and eight counties.  Members of their senior team serve on various boards throughout the area, including Heartland Family Services and the Southwest Iowa Women’s Fund.  Mr. Czak advised they have established new partnerships with Mercy Hospital and Food Bank of the Heartland.  He stated Ameristar understands that having a gaming license in Iowa is a privilege and they work hard every day to reflect that not just for them but across the state.  Mr. Czak requested the approval of their license renewal application.

Hearing no comments or questions, Chair Kramer requested a motion. Commissioner Gonseth Cheers moved to renew the license to conduct gambling games to Iowa West Racing Association, renew the license to operate Ameristar Casino Council Bluffs, LLC as an excursion boat that will not cruise, and approve the facility’s revised security plan included in the application. Commissioner Heinrich seconded the motion, which carried unanimously. 

Iowa West Racing Association/Harveys Iowa Management Company LLC (IWRA/Harrah’s):  Mr. Tulipana talked about their partnership with Harrah’s and the help they have provided to assist with the transgressional changes in the community.  Mr. Tulipana stated the relationship between IWRA and Harrah’s has remained strong during the transition.  He stated IWRA is strengthening their Healthy Families program, which helps the most vulnerable populations via a multi-year funding program.  IWRA also has a scholarship program aimed at PELL-eligible individuals in Pottawattamie County who would not consider a post-secondary education. Mr. Tulipana requested approval of the license renewal application.

Samir Mowad, General Manager, stated they have a great relationship with IWRA.  The parties meet regularly, and partner on activities in the community.  Harrah’s continues to re-invest in the community and property.  In addition to the capital projects listed in the application, there are some pending projects that were put off last year due to flooding.  Executive team members serve on several boards in the community.  Mr. Mowad requested approval of their license renewal application.

Hearing no comments or questions, Chair Kramer requested a motion to approve the renewal. Commissioner Heinrich moved to renew the license to conduct gambling games to Iowa West Racing Association, renew the license to operate Harveys Iowa Management Company, LLC as a gambling structure, and approve the facility’s revised security plan included in the application.

Commissioner Lamberti seconded the motion, which carried unanimously.  

Washington County Riverboat Foundation, Inc./Riverside Casino & Golf Resort, LLC WCRF/RCGR): Dan Franz, General Manager, noted operations were significantly disrupted due to the property renovations and 2019 started off with a couple of tough weather months.  By March of 2019 they were able to make progress, which lasted through the first couple months of 2020.  Mr. Franz reported they set monthly revenue records for 12 straight months.  Mr. Franz believes this is contributed to many things, including the $11 million renovation in 2018.  The legalization of sports wagering by the state, and the great work by Commission staff to get that in place by mid-August prior to the start of football season, provided a very nice addition to what we can offer as a gaming and destination resort.  Mr. Franz thanked the local IRGC gaming representatives for ensuring regulation is seamless and efficient at their property.    

Mr. Franz stated during these challenging times they are focused on their patrons with the idea of being good stewards of the privilege to operate as a gaming company in the state of Iowa.  There are some great things planned for 2020; they will be renovating event center space, which was not done in 2018.  Additional details will be forthcoming.

Mr. Franz is pleased to have the WCRF as the non-profit partner, and indicated the parties have a great relationship.  Tom Basten, President of the WCRF, reported 2019 was another excellent year for the WCRF. They awarded $2.7 million in grants, $1,762,289 during the spring and fall grant cycle and $98,000 through 48 mini-grants over the summer.  Nine municipalities in Washington County received $870,000 this year; and have received over $10 million to date.  Since inception, WCRF has granted $46.8 million in total grants.  Washington County provides grants that fall into the category of community development and beautification; economic development; education and arts; and human and social needs.  WCRF strives to fund great projects that improve lives and strengthens communities. 

Highlights from 2019 include $330,000 for the construction of the new fire station Ainsworth; $10,000 for a river rescue boat in Ottumwa; $82,000 for new windows for the Lincoln Elementary School in Washington; $147,000 for a new MRI machine at Washington County Hospital; and our signature funding project in 2019 was $650,000 for the wellness park in Washington.  Mr. Basten stated WCRF has an excellent relationship with RCGR; they are grateful to have them as a partner. 

Mr. Franz requested approval of Riverside’s license renewal application.

Hearing no comments or questions, Chair Kramer requested a motion. Commissioner Andres moved to renew the license to conduct gambling games to Washington County Riverboat Foundation, Inc., renew the license to operate Riverside Casino & Golf Resort, LLC as a gambling structure, and approve the facility’s revised security plan included in the application. Commissioner Gonseth Cheers seconded the motion, which carried unanimously.

Worth County Development Authority/Diamond Jo Worth, LLC d/b/a Diamond Jo Worth WCDA/DJW):  Scott Smith, General Manager, stated the facility has been a conduit for growth in northern Iowa and southern Minnesota, well beyond Worth County.  Team members participate on various boards and volunteer with various organizations with the encouragement Boyd Gaming and Diamond Jo Worth management.  He stated the facility has been an economic driver in northern Iowa and have distributed over $16 million to the WCDA for projects around north Iowa and southern Minnesota.  A Subway restaurant and FanDuel Sportsbook were added to the facility this past year, along with the completion of smaller projects.  North Iowa has one of the lowest unemployment rates, which creates challenges in finding employees.  Mr. Smith stated DJW has maintained a great relationship with WCDA over the years. Mr. Smith requested approval of their license renewal application.

Mr. Smith introduced Deb Hanson and Ken Abrams from the WCDA.  Mr. Abrams stated Worth County is going to spend $1.8 million on development just south of the casino.  One of his goals is to bring a Cracker Barrel to that area.  Ms. Hanson said their education awards to the local school districts, including scholarship funds, are very important.  Ms. Hanson requested approval of the license renewal application.  

Hearing no comments or questions, Chair Kramer requested a motion. Commissioner Lamberti moved to renew the license to conduct gambling games to Worth County Development Authority, renew the license to operate Diamond Jo Worth, LLC d/b/a Diamond Jo Worth as a gambling structure, and approve the facility’s revised security plan included in the application. Commissioner Heinrich seconded the motion, which carried unanimously.  

Black Hawk County Gaming Association/IOC Black Hawk County, Inc. d/b/a Isle Casino Hotel Waterloo BHCGA/IOCW):  Thomas Roberts, General Manager,   to thank the Commission for the opportunity for Eldorado Resorts to operate in Iowa.  We truly understand it is a privilege.  Since their last license approval, they have invested nearly $1 million in property improvements to improve the gaming experience with the addition of Sportsbook, an arcade, and new wall coverings all over the casino in non-gaming areas.  We are proud of the gaming product we put out and we are excited about what the future will hold, especially with the new waterpark/theme park that is going in across the street and the future development that may bring especially over the next two years. 

Mr. Roberts introduced Betsy Ratchford, President of the BHCGA, to discuss their economic impact in Black Hawk County and the seven surrounding counties. Ms. Ratchford stated the entities have a great partnership.  She stated the IOCW has lived up to all of their commitments and are truly an asset to the community.  Last year BHCGA received $4.7 million from the IOCW.  During the past 12 months, just over $3.5 million was awarded to 64 projects in 17 different municipalities in Black Hawk County and the surrounding counties.  Some examples of the funding commitments last year include support for needed park improvements in Evansdale, a new skate park in Waterloo, main street development in LaPorte City and a new partnership with Iowa Heartland Habitat for Humanity to provide a three year $1.6 million commitment to the Walnut Neighborhood on the east side of Waterloo.  The discretionary fund expanded this year; 27 organizations received just over $340,000. 

Since inception, BHCGA has emphasized investing in quality of life projects that benefit the entire Cedar Valley.  Whether it is engaging in physical fitness activities, exploring the outdoors, purchasing capital equipment or park & trail improvements, funding from BHCGA has supported and enriched parks, recreation, and sports-related projects across our service area.  Keeping residents safe and having access to life saving equipment is costly; BHCGA has supported public safety initiatives and emergency equipment to communities and organizations to ensure emergency personnel have up-to-date equipment to serve and protect their residents.  Funding and support for human service agencies and education are critical to maintaining a commitment to improving overall quality of life in our service area.  Grants in this category include investing in IJ which assists at-risk students in completing high school.  We have collaborated with Hawkeye Community College to provide free and confidential violence prevention education.  Public libraries, museums and arts organizations also received grants last year.  Since July of 2007, BHCGA has awarded $48.6 million to 581 projects. 

While 90% of their funding remains in Black Hawk County, the board reserves up to 10% of the funding for projects in the counties of Bremer, Buchanan, Butler, Chickasaw, Grundy and Tama.  Awards represent just under one-third of a project’s cost; which means their $48 million investment has leveraged an additional $100 million in investments for new facilities, programs, and equipment.  Most importantly, new hope and community pride has been restored in the dozens of Iowa towns and cities with whom BHCGA has been fortunate to work with.  BHCGA’s goal is to help Cedar Valley prosper, which is what drives their funding decisions.  Thousands of individuals have benefited from the funds provided by their partnership with the IOCW.  Ms. Ratchford said the promises made to this Commission over 12 years ago are being fulfilled; BHCGA is changing the face of Cedar Valley one project at a time.  Ms. Ratchford requested approval of the license renewal application.

Mr. Roberts requested approval of their license renewal application.

Hearing no comments or questions Chair Kramer requested a motion.  Commissioner Gonseth Cheers moved to renew the license to conduct gambling games to Black Hawk County Gaming Association and renew the license to operate IOC Black Hawk County, Inc. d/b/a Isle Casino Hotel Waterloo as a gambling structure. Commissioner Lamberti seconded the motion, which carried unanimously. 

Mr. Roberts presented the following contracts for Commission approval:

  • Sealy Corporation – Manufacturer of Mattresses/Bedsprings
  • Home Depot – Maintenance and Housekeeping Supplies
  • Witham Auto Center – Car Dealership for Marketing Promotional Items

Hearing no comments or questions, Chair Kramer requested a motion. Commissioner Lamberti moved to approve the contracts as submitted. Commissioner Heinrich seconded the motion, which carried unanimously. 

Missouri River Historical Development, Inc./SCE Partners, LLC d/b/a Hard Rock Hotel & Casino Sioux City (MRHD/HRHCSC):  Mike Adams, Vice-President of Operations, introduced Doug Fisher, the new General Manager; Stacy Harmelink, the incoming President of MRHD, and Katie Colling,  MRHD’s new Executive Director.  Mr. Adams stated HRHCSC and MRHD have a very collaborative effort.  Mr. Adams stated HRHCSC goes to MRHD’s monthly meetings to provide updates.  In 5 ½ years, MRHD has received just under $19 million to give out in grants and long term commitments.  Mr. Adams requested approval of the license renewal application.

Ms. Harmelink stated MRHD has received $18.8 million, which has allowed them to increase their college scholarship grants at the four colleges from a total of $250,000 to $300,000.  These funds helped more than 100 college students from Woodbury County achieve their education goals this year.  Including the scholarships, MRHD annually distribute $2 million through four different grant cycles.  MRHD grants have been among the first funds available for flood relief in stricken county communities. 

MRHD has granted almost $5 million to quality of life projects to help entice residents and workers to stay in our communities.  Last summer, the MRHD board of directors pledged $1 million over 5 years to Sioux City’s River front enhancement project that will begin this summer.  Other projects include trails, a tubing hill, Ag & Expo Center, and War Eagle Park just to name a few.  MRHD continues to assist the Lewis & Clark Interpretive Center and Betty Strong Encounter Center at $550,000 per year.  The center is an icon of the city and jewel on the riverfront.  The Board of Directors has implemented by-laws that ensure we maintain gender equity and develop leadership opportunities by encouraging turn over in all committees, including the executive committee.  Board members represent a cross section of Woodbury County’s population.  Last year, we asked both the Woodbury County Board of Supervisors and the Sioux City City Council to select their representative on our board so MRHD is in compliance with that requirement of the qualified sponsoring organizations. 

Ms. Harmelink stated HRHCSC continues to set high expectations for the culture of Siouxland.  The entertainment provided by HRHCSC has drawn people from all over the nation and world.  The award winning restaurants and hotel have challenged other businesses to step up and everyone is benefiting from the boom in construction and the tourism industry.  She stated MRHD has a close working relationship with the management team at HRHCSC.  MHRD has met with J & B Gaming representatives and believe they will remain available and be willing to work with them.  MRHD has observed the onset of sports betting and looks forward to the potential growth over time.  Ms. Harmelink stated the Siouxland area is growing and exciting things are happening.   She expressed MRHD’s belief that HRHCSC is the catalyst for getting things moving and the two entities have big plans for the county’s future.  Ms. Harmelink requested approval of the license renewal application on behalf of MRHD and HRHCSC. 

Hearing no comments or questions, Chair Kramer requested a motion. Commissioner Heinrich moved to renew the license to conduct gambling games to Missouri River Historical Development, Inc., renew the license to operate SCE Partners, LLC d/b/a Hard Rock Hotel & Casino Sioux City as a gambling structure, and approve the facility’s revised security plan included in the application. Commissioner Andres seconded the motion, which carried unanimously. 

Regional Development Authority/Rhythm City Casino, LLC (RDA/RCC):  Mo Hyder, General Manager, introduced Marie Ziegler, RDA Board Chair and Matt Mendenhall, President and CEO of the RDA.  Mr. Hyder reported they have a fantastic relationship with the RDA and it is a pleasure to work with them.  He stated RDA and RCC have collaborated on many projects which have contributed to the economic growth of the region.  Mr. Hyder stated RCC continues to reinvest in the property to enhance the experience of their customers. 

Mr. Mendenhall reported they are working hard to create better awareness of the RDA and RCC relationship in their community.  The first is a placard that will be posted at the John Deere Golf Classic and the second is an image on a pull out banner that is used at sponsored events or presentations.  We are learning to better leverage our dollars; partnering with Scott County Regional Authority is an example of creating a local matching fund pool.  Many national grants have a local match requirement, this funding partnership is meant to be helpful to non-profits to bring in more money from outside of the region.  A second example is a new partnership with United Way to create a non-profit institute in order to help non-profits create better capacities and leadership to better serve the communities.  Mr. Mendenhall stated RDA appreciates the new revenue from sports betting; they received just over $5,000 in revenue during the first six months. He feels it is important the QSOs are in the equation so the communities will continue to benefit as the gaming industry evolves. 

Mr. Hyder requested approval of their license renewal application.

Hearing no comments or questions, Chair Kramer requested a motion. Commissioner Andres moved to renew the license to conduct gambling games to Regional Development Authority, renew the license to operate Rhythm City Casino, LLC as a gambling structure and approve the facility’s revised security plan included in the application. Commissioner Lamberti seconded the motion, which carried unanimously. 

Scott County Regional Authority/Isle of Capri Bettendorf, L.C (SCRA/IOCB).:  Nancy Ballenger, General Manager, introduced Ann Kappeler, President of the SCRA, and expressed how much they enjoy their relationship with them.  Ms. Kappeler stated SCRA divides their funds into three categories; government, education and non-profit.  The SCRA received 204 requests and awarded 119 grants.  The total amount requested last year was $6,687,000; SCRA was able to distribute $2,800,011.   Ms. Kappeler highlighted a few of the projects which they funded:

  • The City of Bettendorf is building a new regional park & Pleasant Valley School District building a new elementary school. The entities joined together to build pickle ball & tennis courts and parking in between these two properties. SCRA contributed $450,000 to this project.
  • Worked with the Scott County Housing Council to rehab single and multi-family affordable housing; SCRA provided $130,000 last year.
  • Davenport School District who has a project, Lead the Way, which places equipment resources in middle schools to promote staff education.  The SCRA provided $100,000 in funding to implement additional new up-to-date technology in their middle school classrooms. 
  • Collaborative project – First Tee of the Quad Cities teaches children about golf and the attributes they can learn from the game.  First Tee partners with three other agencies to bring underserved youth in to participate in the program. First Tee and the other three partner agencies collaborated to request funding for the purchase a van for transportation to be used by all the agencies throughout the year. 

Ms. Kappeler reported the SCRA liked the idea and has communicated the benefits of collaborating to other agencies and non-profits to encourage them to look for ways to collaborate.  She noted SCRA has increased the communication and dialogue with the RDA.  As a result of that partnership, they are looking for ways to fund projects that will bring in matching dollars.  Ms. Kappeler stated SCRA values their relationship with the RDA and especially their relationship with the IOCB. 

Ms. Ballenger reported the facility faced some issues the past year with the construction of the new I-74 bridge, which has impacted traffic coming from Illinois.  She stated over $2 million was invested in the property through some upgrades to the HVAC system, the banquet center, and upgraded their Wi-Fi, which is important to the property guests.  She indicated capital expenditures will remain at about that same level for the coming year; upgrades are planned in other areas.   

Ms. Ballenger thanked the Commissioners for the opportunity to have a license in Iowa as they know it is a privilege and they very much appreciate it.  Ms. Ballenger requested the approval of their license renewal application.

Hearing no comments or questions, Chair Kramer requested a motion. Commissioner Lamberti moved to renew the license to conduct gambling games to Scott County Regional Authority, renew the license to operate Isle of Capri Bettendorf, L.C. as a gambling structure and approve the facility’s revised security plan included in the application. Commissioner Heinrich seconded the motion, which carried unanimously.  

Dubuque Racing Association, LTD/Diamond Jo, LLC d/b/a Diamond Jo Casino (DRA/DJ):  Wendy Runde, General Manager, was joined by Jesús Avilés, President and CEO of the DRA and Q Casino.  Ms. Runde stated DJ has a great relationship with DRA; their partnership is going on 26 years strong in May.  Since DJ moved to a land-based casino in 2008, their annual contributions to DRA are about $3 million; they have paid over $44 million to the DRA.  In addition to their contributions to the DRA, DJ has a property donation program, Diamond Jo Cares.  Diamond Jo Cares affords the facility the opportunity to touch 80 to 100 organizations annually on a much smaller scale.  From in-kind gifts to cash, DJ has an outreach in the tri-state area, as well as in the neighboring counties of Jackson, Jones and Linn.  From an operations perspective, 2019 got off to a very rough start due to weather in January and February.  In March, DJ turned a corner, gained a stride and finished with a record gross gaming revenue year for their property.  With the addition of sports betting, Ms. Runde said DJ is seeing new guests walk through the door.  Ms. Runde stated DJ continues to reinvest in their property.  In 2019, in addition to the mini-style Vegas sportsbook, the loyalty program was converted to Be Connected, Boyd’s one card program; upgrades were made to the surveillance system, slot system and many other small projects.  

Mr. Aviles requested approval of DJ’s license, indicating Ms. Runde has done an excellent job as a General Manager.  DRA renewed their contract with Boyd Gaming Corporation; however, DRA is not only a qualified sponsoring organization, but also a competitor and operator.  Mr. Avilés advised both he and Ms. Runde have served as board members for various organizations, especially those pertaining to economic development.  Dubuque’s unemployment rate is less than 2%; looking for talent is a challenge even with four universities in the community.  Besides giving DRA $3 million a year, the organizations participate in community activities such as the Day of Giving and the Day of Revitalizing the Community. Mr. Avilés stated DRA could surpass the $1 billion milestone in grant distributions next year.  Mr. Aviles requested the approval of their license renewal application.

Ms. Runde requested the approval of their license renewal application.

Hearing no comments or questions, Chair Kramer requested a motion. Commissioner Gonseth Cheers moved to renew the license to conduct gambling games to Dubuque Racing Association, LTD, renew the license to operate Diamond Jo, LLC d/b/a Diamond Jo Casino as a gambling structure, and approve the facility’s revised security plan included in the application. Commissioner Andres seconded the motion, which carried unanimously. 

Ms. Runde presented two contracts for Commission approval:

  • Conlon Construction – Miscellaneous Maintenance Projects
  • Conference Technologies, Inc. (CTI) – Digital Signage Project

Hearing no comments or questions, Chair Kramer requested a motion. Commissioner Andres moved to approve the contracts as submitted. Commissioner Gonseth Cheers seconded the motion, which carried unanimously. 

Dubuque Racing Association, LTD:  Brian Rakestraw, General Manager of Q Casino, concurred with Mr. Avilés’ earlier comments regarding the relationship with DJ.  He indicated it an honor to work for an organization that gives so much back to the community.  Mr. Rakestraw reported Q Casino had a great year; they invested over $2 million into the property and will continue to invest in the property with the project presented earlier.   Mr. Rakestraw requested the approval of the license renewal application on behalf of DRA and Q Casino. 

Hearing no comments or questions, Chair Kramer requested a motion. Commissioner Heinrich moved to renew the license to conduct gambling games to Dubuque Racing Association, Ltd, renew the license to operate Dubuque Racing Association, Ltd. as a gambling structure and approve the facility’s revised security plan included in the application. Commissioner Gonseth Cheers seconded the motion, which carried unanimously. 

Lyon County Riverboat Foundation, Inc./Grand Falls Casino Resort, LLC (LCRF/GFCR):  Sharon Haselhoff, General Manager, and Jerry Keizer, President of LCRF, requested approval and renewal of the gaming license.  Ms. Haselhoff reported 2019 gaming revenue was $63.7 million, an 8.2% increase over 2018.  She attributed the increase to continued marketing program changes, but most importantly, the continued investment in their employees and property.  In 2019, they completed the conversion of the existing Show Lounge into their sportsbook; expanded the Center Bar to add an entertainment area called The Center Stage where guests continue to have access to complementary music on Friday and Saturday.  Ms. Haselhoff announced they broke ground last year on the new hotel, which they expect to have that completed by the end of summer. Between construction of the sportsbook and the hotel, over $11 million will have been invested in the property.  Ms. Haselhoff reported GFCR has an excellent partnership with the LCRF; she advised the parties have extended their agreement for another 10 years. 

Mr. Keizer stated LCRF is honored and pleased to partner with GFCR, and the entities have a great working relationship.  The facility has shown a great commitment to Lyon County and neighboring areas with the $11 million investment in the property.  In 2019, the LCRF received $2,368,000 from the casino; the highest amount since the facility opened in 2011.  Last year, a councilman from Larchwood and a supervisor for Lyon County joined the LCRF board.  Mr. Keizer noted sports betting commenced in August of 2019 and seems to be going very well.  The LCRF continues to give the three public schools, eight cities and the county 50% of its revenue through non-competitive grants.  The other 50% is distributed through competitive and mini-grants.  In 2019, the LCRF awarded 26 mini-grants totaling $52,436; competitive grants totaling $648,344 were awarded to 26 of the 34 applicants.  Last year was an exciting year for the foundation and the casino.  Mr. Keizer stated it is rewarding to see the improvements and completed projects in Lyon County due to the funds LCRF receives and distributes from GFCR. 

Mr. Keizer requested approval of the license renewal application.

Hearing no comments or questions, Chair Kramer requested a motion. Commissioner Andres moved to renew the license to conduct gambling games to Lyon County Riverboat Foundation, Inc., renew the license to operate Grand Falls Casino Resort, LLC as a gambling structure, and approve the facility’s revised security plan included in the application.  Commissioner Gonseth Cheers seconded the motion, which carried unanimously.  

Ms. Haselhoff presented the following contracts for Commission approval:

  • Atmosphere Commercial Interiors – Renovation Project: Hotel FF&E (OSV)
  • Guest Supply by Sysco – Renovation Project: Hotel Soft Goods
  • Henrickson – Renovation Project: Floor Coverings (OSV)
  • Tim Dally Drywall, Inc. – Renovation Project: Drywall Materials & Labor (OSV)

Hearing no comments or questions, Chair Kramer requested a motion. Commissioner Lamberti moved to approve the contract as submitted. Commissioner Heinrich seconded the motion, which carried unanimously.

Clarke County Development Corporation/HGI-Lakeside, LLC (CCDC/Lakeside:  David Monroe, General Manager, stated the first couple of months of 2019 were disastrously bad due to the weather.  The facility saw an 8% attendance growth which had not occurred since 2014.  Many, if not all, departments set revenue records, or near records; all operating departments did have revenue growth.  Capital spending was mainly focused on maintenance except for the construction of the sportsbook at approximately $2 million, including gaming products.  Mr. Monroe stated 2020, their 20th year, is off to an amazing start with near records in all metrics.  He stated capital spending of $ 1 million will be focused on guest-based renovations, and represents the first phase of many phases.  Renovations will start late in the second quarter or early third quarter.  They will be seeking Commission approval in the near future.  Mr. Monroe stated they have an amazing partnership and relationship with CCDC, who does amazing work.  He stated it is a privilege to work with them and be a part of everything they do. 

Mr. Monroe introduced Sue Wilder, President of CCDC.  Ms. Wilder stated CCDC is pleased to be standing alongside Lakeside as a partner.  Recent years have been good, which is good for CCDC.  In 2019, CCDC distributed $1.2 million in the community.  CCDC supported efforts to attract doctors to the community, and the community was successful in attracting two last year.  A new community health center just opened up for southern Iowa; they appreciated CCDC’s assistance.  The city recently purchased the golf course/country club; CCDC provided funding for some needed updates.  Attendance is doing very well as people are into fitness; it is a good program to sponsor.  The CCDC finished up five miles of trails; they are six feet. wide and run from one end of town to the other.  The trails encompass the school grounds providing a safe path for children to walk to school. Ms. Wider stated CCDC provided funding to Village Early Learning Child Care Center for new playground equipment and updates to their building, and the school district for new computers.  In the public safety spectrum, CCDC funded an EMS pictometry, which is shared with surrounding counties.  This program assists EMS, fire and law enforcement agencies. The Murray Fire Department received funding for a new fire truck. Ms. Wilder stated none of these projects would be possible without the partnership with Lakeside.  Ms. Wilder requested approval of the license renewal application. 

Hearing no comments or questions, Chair Kramer requested a motion. Commissioner Lamberti moved to renew the license to conduct gambling games to Clarke County Development Corporation, and renew the license to operate HGI-Lakeside, LLC as a moored barge. Commissioner Andres seconded the motion, which carried unanimously. 

Southeast Iowa Regional Riverboat Commission/Catfish Bend Casinos II, LLC (SIRRC/CBC):  Rob Higgins, General Manager, noted they are involved not only with Burlington in Des Moines County, but also Ft. Madison and Keokuk in Lee County.  When CBC moved to Burlington, they continued to support those communities and are proud to do so. Mr. Higgins reported they have a fabulous relationship with SIRRC and continue to grow together.  He introduced Justin Pieper, Vice-President of SIRRC.  Mr. Higgins stated CBC continues to invest in their facility.  This coming year they plan on doing a couple of upgrades on their gaming floor.  A vacant area of the facility was converted to the sportsbook.  This year the facility is hosting the Iowa State Men’s Bowling Championships, with events every Saturday and Sunday beginning the first week of February until the last weekend in May.  Mr. Higgins advised this event has increased foot traffic at the facility every weekend; and sports wagering has also drawn a number of new patrons to the facility for sports wagering.  Both scenarios have had a positive effect on the property. 

Mr. Pieper corroborated Mr. Higgin’s assertion of the positive relationship between CBC and SIRRC.  He stated SIRRC funded $1.2 million in projects in the communities of Burlington, Ft. Madison and Keokuk.  In Burlington, recreational grants were funded: upgrades to the community football stadium and an indoor recreational facility called The Turf, which would not have been possible without the relationship they have with Catfish Bend Casino. In Ft. Madison, it was a cultural year: grants funded enhancements to the restored Sheaffer Pen Museum, and completely renovated the bandstand in Central Park, where the summer city band concerts are held.  In Keokuk, grant funds were used to enhance the riverfront in anticipation of the many guests coming to town with RAGRAI last summer, as well as safety training for their fire and police personnel.  Mr. Pieper stated CBC also supports various non-profit organizations outside of the funds paid to SIRRC. He noted the sportsbook was built almost exclusively with local contractors. 

Mr. Higgins requested approval of their license renewal application. 

Hearing no further comments or questions, Chair Kramer requested a motion. Commissioner Gonseth Cheers moved to renew the license to conduct gambling games to Southeast Iowa Regional Riverboat Commission, renew the license to operate Catfish Bend Casinos II, LLC as a gambling structure, and approve the facility’s revised security plan included in the application. Commissioner Heinrich seconded the motion, which carried unanimously.  

Clinton County Development Association/Wild Rose Clinton, L.L.C. (CCDA/WRC):  Steve Nauman, General Manager, and Les Shields, Vice President of the CCDA, were present to address the license renewal.  Mr. Nauman stated Wild Rose has a long and soon to be 30 year relationship with the CCDA, a group of highly dedicated individuals who strive to enhance the community with projects full of economic development and quality of life.  He advised they are a tremendous partner. 

Mr. Shields reported the CCDA is close to surpassing $30 million in grants in the county since the start of riverboat gambling in 1991.  The Iowa Gaming Association requested a summary of grants awarded to emergency service organizations in recent years due to a request from the legislature.  Mr. Shields admitted he was shocked by the report that was sent to the IGA; in the last five years CCDA has awarded over $1 billion just to emergency services in Clinton County for vehicles, turn-out gear, personal protection equipment, defibrillators, and air packs.  In 2019, CCDA created a new website and a new online grant application and management system.  This spring the local hospital will see a brand new state of the art linear accelerator for cancer radiation treatment; CCDA contributed $500,000 over 4 years.  Mr. Shields stated CCDC continues to see a broad spectrum of grant applications including local government application for public safety and fire department equipment recreational projects, social welfare projects, arts, education and economic development.  Since 2006, the CCDA has enjoyed a mutually beneficial and respectful relationship with Wild Rose Clinton.  Mr. Shields requested approval of the license renewal application. 

Hearing no comments or questions, Chair Kramer requested a motion. Commissioner Heinrich moved to renew the license to conduct gambling games to Clinton County Development Association, renew the license to operate Wild Rose Clinton, L.L.C. as a gambling structure, and approve the facility’s revised security plan included in the application. Commissioner Andres seconded the motion, which carried unanimously. 

Mr. Nauman presented a contract with Mediacom Business Solutions for High Speed Internet Service for Commission approval.

Hearing no comments or questions, requested a motion.  Commissioner Heinrich moved to approve the contract as submitted. Commissioner Gonseth Cheers seconded the motion, which carried unanimously. 

Grow Greene County Gaming Corporation/Wild Rose Jefferson, L.L.C. (GGCGC/WRJ):  Travis Dvorak, General Manager, introduced Norm Fandel, President of Grow Greene County Gaming Corporation.  Mr. Dvorak stated GGCGC has had a significant impact, especially for being in rural Iowa and one of the smallest communities.  Mr. Fandel stated one of the largest projects has been the new high school and career academy. The GGCGC and the County Supervisors committed $9.5 million toward the $35 million facility.   The passage of the bond referendum led to Pillar 4, a software development group located in Des Moines and five other locations throughout the United States, including Silicon Valley.  The organization has committed $1.8 million to the renovation of a downtown building.  Currently there are 40 children waiting for the school to open in the fall of 2021 for software, coding and development classes.  The school district is now contemplating renovation of the middle school; and discussions are being held about building an apartment complex within the community.  Mr. Fandel stated GGCGC and Wild Rose Casino have made a 5-year commitment toward the $20 million expansion of the medical center. 

Mr. Fandel stated GGCGC has awarded $1.2 million to the six contiguous counties, and continue to support the community foundation as well.  The community foundation was established prior to GGCGC and Wild Rose Jefferson receiving their license; Greene County kept the foundation intact as they want the smaller projects the community foundation works with to receive funding; it also allows the community foundation to award the funds where they feel it will be the most beneficial.  Every June GGCGC takes a tour as a board to view the projects that received funding. In 2021, they hope to secure a few buses so some community members can also participate and see some of the projects which GGCGC has supported and the impact they have had within their communities.  Mr. Fandel stated GGCGC their award ceremony will be held in April and feels the fire departments will be satisfied with the funding decisions.  He stated it is a pleasure to partner with Wild Rose, and requested approval of the license renewal application.

Mr. Dvorak noted he drives by the hospital, Career Academy and new high school every day on the way to work and is proud of Wild Rose’s contribution to those projects. He state Wild Rose is going to be a part of the Career Academy going forward, and is working with Iowa Central College and Greene County high school to provide internships, externships and on the job training.  Some of their employees will be teaching some courses, providing continuity between Wild Rose, the college and career academy.  Mr. Dvorak reported they have contributed over $6.5 million to GGCGC; another $150,000 in local donations, have added $120 million to the total economic impact to the state, and paid $125 million in payroll.  He stated Wild Rose has become part of the community; Wild Rose team members are currently serving as president of the chamber, president of the rotary, past president of the Kiwanis, and serve on the various boards or belong to community organizations. 

Mr. Dvorak requested approval of their license renewal application.

Hearing no comments or questions, Chair Kramer requested a motion. Commissioner Andres moved to renew the license to conduct gambling games to Grow Greene County Gaming Corporation, and renew the license to operate Wild Rose Jefferson, L.L.C. as a gambling structure. Commissioner Gonseth Cheers seconded the motion, which carried unanimously.  

Palo Alto County Gaming Development Corporation/Wild Rose Emmetsburg, L.L.C PACGDC/WRE).  Steve Cody, General Manager, was accompanied by Abby Burns, representing the PACGD.   Ms. Burns stated as a newer member of the board she has been able to see the impact the funding from the casino has had on the communities.  She noted many of the grant requests throughout the community would go unfulfilled without the support of the casino.  Ms. Burns stated PACGDC received $1.69 million for distribution last year.  Before making any other distributions, PACGDC distributes one-sixth of the proceeds to the cities and the county based on population.  The cities of Emmetsburg, Graettinger, Ruthven, West Bend, Mallard, Ayrshire, Cylinder, Rodman and Curlew receive funds upon receipt of a signed grant agreement.  Ms. Burns reviewed a few projects funded in the last year.  First, Five Island Trail Corporation continued work on a combined trail for biking, walking, and other outdoor activities, which will go around Five Island Lake.  Other grants receiving funding were: the Cylinder Fire Department received funding for self-contained breathing apparatus; West Bend-Mallard received funds for an oxygen refill station, Emmetsburg received $75,000 for a new ambulance, which serves Emmetsburg and the surrounding cities.  Ms. Burns stated PACGDC partners with other organizations to provide funds for safety, renovations, fairgrounds, freedom rock, and schools.  In rural communities, it is important to fill the gaps and needs in the area and the WRE has done that. 

Mr. Cody requested approval of their license renewal application. 

Hearing no comments or questions, Chair Kramer requested a motion. Commissioner Lamberti moved to renew the license to conduct gambling games to Palo Alto County Gaming Development Corporation, renew the license to operate Wild Rose Emmetsburg, L.L.C. as a gambling structure and approve the facility’s revised security plan included in the application. Commissioner Gonseth Cheers seconded the motion, which carried unanimously.

Upper Mississippi Gaming Corporation/Casino Queen Marquette, Inc. (UMGC/CQM):  Donald Ostert, General Manager, noted 2019 started off with some harsh winter weather.  With prolonged high river levels, tourism in Marquette suffered throughout the year, but 2020 has started out much better.  Thru February, attendance is up 15% and they are looking forward to introducing sports wagering in 2020.  The Marquette property paid $6.2 million in state and local taxes and fees in 2019.  Mr. Ostert reported CQM started their new contract with UMGC in mid-2019 and with the City of Marquette; the City of Marquette received over $400,000 and UMGC received over $600,000, totaling over $1 million.  Mr. Ostert stated CQM has a great working relationship with UMGC and are proud of the money invested in Clayton County.  Sindee Gohde, Executive Director of UMGC, stated that while UMGC will never be able to compete with the larger facilities, they can make a difference in Clayton County.  In the last 25 years, they have made a difference for the fire departments, the EMS, the rescues, the hospitals, the ambulances, the libraries, the museums and all the community projects.  Ms. Gohde is looking to get the communities and organizations involved marketing the county to bring more businesses and visitors to Clayton County and possibly the riverboat.  She feels the increased revenue will be helpful in renewing interest in the area.  Ms. Gohde is very thankful for what the Commission does.  Ms. Gohde reported they have a great working relationship with Mr. Ostert and they are the greatest people to work alongside.  Ms. Gohde requested approval of the license renewal application. 

Hearing no comments or questions, Chair Kramer requested a motion. Commissioner Gonseth Cheers moved to renew the license to conduct gambling games to Upper Mississippi Gaming Corporation, renew the license to operate Casino Queen Marquette, Inc. as an excursion boat that will not cruise and approve the facility’s revised security plan included in the application. Commissioner Andres seconded the motion, which carried unanimously. 

CONTRACT APPROVALS (OSV – OUT OF STATE VENDOR; RP – RELATED PARTY)

Iowa West Racing Association d/b/a Horseshoe Casino:  Mr. Mowad presented the following contracts for Commission approval: 

  • Bry-Lex – Promotional Items (OSV)
  • Philcor TV and Electronic d/b/a Nedco Supply – TV and Electrical Equipment Vendor (OSV)
  • Pinnacle Construction, Inc. – Construction Vendor

Hearing no comments or questions, Chair Kramer requested a motion.  Commissioner Andres moved to approve the contracts as presented. Commissioner Heinrich seconded the motion, which carried unanimously.  

Prairie Meadows Racetrack & Casino, Inc. d/b/a Prairie Meadows Racetrack & Casino:  Mr. Palmer presented the following contracts for Commission approval:

  • OGN Racing – Potential Supplier for Kiosks that Sell Racing Forms (Profit Sharing Agreement) (OSV)
  • Vest Racing USA Inc. -Potential Supplier for Kiosks that Sell Racing Forms (Profit Sharing Agreement) (OSV)

Hearing no comments or questions, Chair Kramer requested a motion.  Commissioner Lamberti moved to approve the contracts as presented. Commissioner Heinrich seconded the motion, which carried unanimously. 

IOWA GREYHOUND ASSOCIATION D/B/A IOWA GREYHOUND PARK:  Brian Carpenter, Director of Racing and General Manager, requested approval of their season approvals.  Mr. Carpenter reported this is the 36th season of live greyhound racing in Dubuque and the 6th season for the Iowa Greyhound Association.  He advised the 2019 season was very successful.  They were close to $1 million ahead of 2018.  In January and February of this year they are already ahead of last year.

Hearing no comments or questions, Chair Kramer requested a motion. Commissioner Heinrich moved to approve the season approvals as submitted with the following conditions:

  • The immediate written notification of any change in racing official positions.
  • The completion of necessary IRGC licensing and DCI background checks of racing officials.
  • The export contracts will continue to have the review and approval of IRGC staff to ensure regulatory compliance.
  • Continuous review of race track maintenance issues and monitoring of injuries, cooperation with the IRGC representatives,
  • Review and testing of the Sportstech software upgrades submitted by IRGC racing stewards prior to the beginning of racing, with approval being subject to the successful testing and approval of that upgrade system by the stewards, and
  • A walk through by IRGC staff to ensure all equipment is in working order and the facility is ready to accept the greyhounds. 

Commissioner Andres seconded the motion, which carried unanimously. 

Mr. Carpenter presented a contract with United Healthcare for the Renewal of Health Insurance for Full-time Employees.

Hearing no comments or questions, Chair Kramer requested a motion.  Commissioner Lamberti moved to approve the contract as presented. Commissioner Gonseth Cheers seconded the motion, which carried unanimously. 

HEARINGS

Diamond Jo Worth, LLC:  Mr. Ohorilko advised the Commission staff and Diamond Jo Worth (DJW) have entered into a Stipulated Agreement for a violation of Iowa Code 99F.4(22) related to the state-wide self-exclusion program.  Mr. Ohorilko stated an individual had signed up to participate in the program in September of 2014.  The individual came in to the casino and won a jackpot in July of 2019.  The casino did correctly identify the individual as someone on the statewide self-exclusion list and withheld the winnings. The individual’s mother contacted DJW in October of 2019 and indicated her son had received some promotional mailings.  After a facility investigation, it was determined that a duplicate player’s club account had been created that enabled the mailing to be sent.  Mr. Ohorilko noted DJW self-reported the incident and have agreed to an administrative penalty in an amount between $5,000 and $20,000 consistent with the resolution.    Mr. Ohorilko stated this is the first offense for Diamond Jo Worth in the last 365 days with respect to this type of violation. 

Mr. Smith stated this is territory the facility is not in normally and deeply regret the incident.  Mr. Smith said they take this situation very seriously.  Due to this incident, DJW found a flaw within their system itself; property compliance and the team were able to quickly correct the issue.  Mr. Smith advised the casino management system has been upgraded so that this situation does not require a duplicate account to be created, which allowed for human error.  Mr. Smith indicated it’s very unfortunate and they took action right away with that one mailing.  Mr. Smith looks forward to not being before the Commission outside of normal reporting. 

Hearing no comments or questions, Chair Kramer requested a motion. Commissioner Andres moved to approve the Stipulated Agreement with an administrative penalty of $5,000.  Commissioner Lamberti seconded the motion, which carried unanimously. 

SCE Partners, LLC:  Mr. Ohorilko advised Commission staff and SCE Partners d/b/a Hard Rock have entered into a Stipulated Agreement for a violation Iowa Code 99F.4(22) related to the state-wide self-exclusion program.  Mr. Ohorilko reported it was discovered the facility had not uploaded individuals who had signed up to participate in the program within the 7 days as required on two separate occasions; it was 8 days when both were uploaded.  Mr. Ohorilko stated Commission staff discovered the inconsistency and notified IRGC management and the facility that the timeline in the state-wide resolution had not been met.  He advised SCE Partners has agreed to an administrative penalty in the amount between $5,000- $20,000.  Mr. Ohorilko noted this is the first offense for Hard Rock in the last 365 days with respect to this type of violation.

Mr. Fisher stated it was very unfortunate they are before the Commission today for this type of penalty.  Mr. Fisher said this violation was the result of a procedure not being followed.  Upon notification, Mr. Fisher indicated the facility immediately revamped their procedures and are now uploading every 2 to 3 days to avoid this type of infraction going forward.  Mr. Fisher said this is the first time they have had this type of offense at their property.

Hearing no comments or questions, Chair Kramer requested a motion. Commissioner Heinrich moved to approve the Stipulated Agreement with an administrative penalty of $5,000.  Commissioner Lamberti seconded the motion, which carried unanimously. 

Prairie Meadows Racetrack & Casino, Inc.:  Mr. Ohorilko advised Commission staff and PMR&C have entered into a Stipulated Agreement for two counts of a violation Iowa Code 99F.4(22) related to the state-wide self-exclusion program.  Mr. Ohorilko advised the first count includes three individuals who had signed up to participate in the program on October 7th or 8th.  The forms were not uploaded within the 7 days.  Commission staff conducted an audit and noticed the late entries; PMR&C was notified.  The second count involves a situation which occurred, and has a history dating back to 2012, for an individual who had signed up to participate in the state-wide self-exclusion program.  The individual had recently asked to be removed from the list.  Commission staff indicated it had been 5 years, but the individual was not showing up on the list.  The individual gambled at another facility in 2019, and contacted PMR&C about returning to the property to gamble. PMR&C referred them back to the Commission, indicating the individual should have been on the state-wide self-exclusion list and to complete a revocation if they wanted to gamble at PMR&C consistent with the 5-year revocation statute. 

Commission staff investigated the matter further with PMR&C; it was determined that the individual was never enrolled in the program back in 2012.  There are some factors PMR&C wanted on the record and that information is included in the packet.  PMR&C has agreed to pay an administrative penalty in an amount between $5,000 and $20,000 for these two counts.  Mr. Ohorilko noted it is a first offense for PMR&C regarding self-exclusions in the past 365 days.

Mr. Palmer introduced Jake Hedgecock, Director of Security at PMR&C.  Mr. Hedgecock stated, with regard to count one, PMR&C takes responsible gaming very seriously.  The employee has been disciplined and retrained accordingly.  He advised PMR&C has incorporated a new policy where each shift manager will do a new upload and download each day to assure they will never need to come before the Commission again for this type of violation.  With respect to count two, Mr. Hedgecock requested this count be dismissed as the database that would house the information for September 3, 2012 when this incident happened no longer exists.  When PMR&C went to review their information from this timeframe, it reflects PMR&C did everything correct, but truly don’t know since the database is no longer available.  Mr. Hedgecock noted PMR&C was one of the first establishments to implement the self-exclusion platform in 1996 and they have never had a violation of this nature. 

Hearing no comments or questions, Chair Kramer requested a motion.  Commissioner Lamberti stated he does not think it is appropriate to just dismiss Count 2, but conceded there are some extenuating circumstances and has taken them into account.  Commissioner Lamberti moved to approve the Stipulated Agreement with an administrative penalty in the amount of $10,000.  Commission Andres seconded the motion, which carried unanimously. 

PUBLIC COMMENT/ADMINISTRATIVE BUSINESS: As there was no Public Comment, Chair Kramer called on Mr. Ohorilko for Administrative Business.

Review of Year-to-Date Economic Impact Reports: Mr. Ohorilko noted these reports are unaudited, however, he believes they provide a true picture of the overall economic impact in the State of Iowa.  What has been reported is astounding when you factor in payroll, equipment, supplies, services, statutorily required payments and charitable contributions, Iowa’s casinos spent over $1.1 billion for the calendar year 2019.  Mr. Ohorilko stated that over 90% of the $1.1 billion was spent with Iowa vendors.  If you were to factor out gaming equipment and specialized sources that essentially have to be purchased outside of the state of Iowa, 96% of that revenue was spent in state.  Mr. Ohorilko stated the industry should be proud of that statistic and wanted to make sure it was noted. 

Mr. Ehrecke noted Mr. Ohorilko used the word astounding.  He noted the first riverboat started cruising 29 years ago on April 1st.  Mr. Ehrecke stated it is impressive to see where the gaming industry is at today in terms of charitable contributions, Buy Iowa First program, and the number of employees.  He stated the industry plays an integral part in the tourism industry, and hopes to remain stable and strong going forward.

Notice of Horse Racing Promotion Fund:  Mr. Ohorilko advised there is $2,507.90 in the Horse Racing Promotion Fund for FY 2020.  Applications need to be submitted to the Commission office by 3:30 PM on April 1st.  The funds will be awarded at the April meeting.

2020 Purse Amounts:  Mr. Ohorilko advised the purse amounts for PMR&C supplement for 2020 is a factor that is based on the percentage of overall gaming receipts will be as follows:

  • Thoroughbreds - $16,484,426.55
  • Quarter Horses -     3,307,730.33
  • Standardbreds -      1,897,878.06

    $21,690,034.94

Hearing no further business to come before the Commission, Chair Kramer called for a motion to adjourn.  Commissioner Heinrich so moved.  Commissioner Gonseth Cheer seconded the motion, which carried unanimously.