May 23, 2012

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Racing and Gaming Commission administrator to retire in March

January 12, 2012 By

Jack Ketterer

The man who has overseen most of the major advances in the casino gambling industry in Iowa announced today that he is retiring.

Iowa Racing and Gaming Commission administrator, Jack Ketterer, says he has been considering retirement for the last couple of years, but there were major issues that had to be completed.

“You know we were tied up with the applications of the facilities (for gambling licenses) in 2010, and then last year we had the (online) poker report and the advance deposit wagering, and I really didn’t want to dump that on the staff,” Ketterer says.

The 64-year-old Ketterer led the commission in the early 1980′s when casinos, horse racing and dog racing were introduced, then left for a job in Arizona in 1988. He returned to the state in 1993 and says his 20 some years on the job have been interesting.

 ”It’s a vast industry that we regulate because most states have two separate commissions for parimutuel racing and for gaming, and we have everything, so you deal with a lot of different people,” Ketterer explained.

Ketterer says he has been lucky to always have great commissioners to work with and said he’s always had great support from the governors he’s worked with. The development and expansion of gambling has been controversial, but Ketterer is pleased with the way things have gone under his leadership.

“We had a lot of trying times,” Ketterer said and laughed. “But I think the main thing is that we, we regulated the industry, we never had any major scandals, we upheld the integrity of the industry. And at the same time we had a climate that fostered a lot of economic development in Iowa.”

Ketterer said the economic impact of the industry on the state may be the thing he is most proud of. “When you look at all of the racing and gaming facilities, the number of jobs that they created, and the number of amenities and suppliers around them that they supported, I think in trying to minimize what many people feel are the negative impacts of gambling, I think I probably remember that.”

Greg Seyfer of Cedar Rapids has the longest tenure on the current commission. He says Ketterer brought a lot to the industry.

“His knowledge is I think just unsurpassed in the country. He does a very good job of not being an advocate, but giving us all the information we need to be able to make a decision,” Seyfer says.

Ketterer will leave the job on March 30th, and the commission today appointed its director of gaming, Brian Ohorilko to succeed him.

“You know these are big shoes to fill, Jack Ketterer is man of great integrity, great character and is an exceptional regulator. You know, I am fortunate I’ve had the opportunity to work with Jack over the years and learn from him,” Ohorilko told reporters.

Ohorilko doesn’t anticipate any major changes when he takes over. “My goal is really…with that knowledge that I’ve learned from Jack and my experiences as a fan in both the racing and gaming industries and working in the industry to just continue to maintain and serve the citizens in Iowa with the highest integrity of gaming,” Ohorilko. “You know we have great leadership by the commission and we have great staff, and I am confident we can fulfill that goal.”

Ohorilko is 31, and an Iowa State University graduate who lives in Mitchellville. He must be confirmed by the Iowa Senate. If confirmed, he would start in April and serve out the remainder of Ketterer’s term which expires on April 30, 2014.

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Supreme Court upholds ruling in Clinton casino development

December 9, 2011 By

The Iowa Supreme Court has ruled a $10-million settlement awarded a casino consultant in a dispute with a developer is all the company can collect. Signature Management Group successfully sued Wild Rose Entertainment and developer Gary Kirke after Wild Rose received a gaming license for a casino in Emmetsburg in 2005, and then terminated its consulting contract with Signature.

The court ruled the action by Wild Rose was a breach of contract and awarded the $10-million to Signature. While the Emmetsburg lawsuit was still going on, the Racing and Gaming Commission awarded a license to Wild Rose to build another casino in Clinton.

Signature then sued, saying the contract with Wild Rose included any casino development and the company should also be compensated for a breach of contract in the Clinton casino development. The district and appeals courts ruled settlement over the Emmetsburg casino precluded any further court action against Wild Rose.

The Iowa Supreme Court reviewed the lower court rulings and found that Signature knew that Wild Rose had won a license for the Clinton casino before the Emmetsburg case was decided, and had plenty of time to amend the case to seek additional damages. But since Signature did not amend its case, the Supreme Court says it did not find any reason to approve a new lawsuit.

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Report details possible revenue, technology for state on-line poker

December 1, 2011 By

The Iowa Racing and Gaming Commission’s report on internet poker released today shows there are several ways the state could set up and regulate the on-line gambling in the state. The Iowa legislature asked for the report to determine the feasibility and possible income that could come from the enterprise.

Commission gaming director, Brian Ohorilko, says they used three national surveys on potential profit to try and project Iowa’s take. “The range is pretty wide, based on those projections it was anywhere maybe 2.9 million to 13.2, and we did include that in the report,” Ohorilko says.

Estimates given to the legislature last year said revenue could total between 30 and 35-million dollars, but the commission report says privacy concerns prevent those estimates from being verified. there are not on-line operations that can be used to directly compare the potential revenue that could be generated in Iowa, making the projections a best guess.

 ”It is just speculation, and so I think it would be difficult to really get a good handle (on the income),” Ohorilko says. The published studies used in the report varied widely in their projections of potential nationwide income.

 The report also examines a number of systems for regulating internet poker. He says there are different levels the state could regulate and the report identifies those levels and tries to explain what could be regulated and what could not.

Ohorilko says for example, some type of “geo-location” technology is recommended to ensure gamblers are actually in the state. “There are a number of companies that provide technology to identify the I-P address for individuals when they are using their computer, so that was one of the recommendations, or one of the ideas of how you would regulate that area, is you would use geo-location technology,” Ohorilko explained.

The geo-location technology is not the perfect answer for keeping tabs on players, as they could use what’s called a “spoof” I-P address. Ohorilko says the system also can have a range of error that could be as much as five miles. The report suggests a layered approach that would use other types of technology to follow up the geo-location system.

The report also outlines some of the things that cannot be controlled. An example according to Ohorilko, is an adult who sets up an account and gives the password to a minor. There would be no way for the state to know the minor was using the account illegally. The report does not make a recommendation on whether or not the state should move ahead with internet gambling as that is not what the legislature asked.

Ohorilko says it simply gives the legislature information to work with if they decided to look at creating an internet gambling system in the next session. The report also did not examine how much it might cost to set up the on-line system within the state.

See the report at: www.iowa.gov/irgc.

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Report on on-line gambling due on December 1st

November 14, 2011 By

The Iowa Racing and Gaming Commission is just about three weeks away from releasing its report on internet poker. Division administrator, Jack Ketterer, says the report will give information, but not advice.

Ketterer says the legislature asked them to look at internet gambling in the state and a regulatory framework for it. He says lawmakers did not ask for a recommendation on moving ahead with internet gambling. Ketterer says they want to provide the information to let the legislature make its own decision on the issue.

Ketterer says their role is to gather information and collect facts so the legislature is up to speed when bills are introduced so “they can make an informed decision on what’s the best public policy for Iowa.” Ketterer says the issue of internet gambling is one that’s hot nationwide.

“It’s somewhat fascinating in that you see something on it about every day, it changes,” Ketterer says. He laughed and said there may be changes to the report. Ketterer says nailing down one key factor on the impact of internet gambling has not been easy.

He says one of the things the legislature and everyone else wants to know is how many people would do it and how much money it would bring in. Ketterer says the answer to that is “pretty speculative.” He says they are getting information from the sources they feel are the best informed and they will reveal those in the report.

Ketterer says they did see a survey of some of the people who play poker in state-licensed casinos and about half of them said they would play on-line if it was available, and half said they wouldn’t. The report will be released to the legislature on December first.

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Two casinos pay fines for illegal gambling

November 11, 2011 By

The Iowa Racing and Gaming Commission issued penalties for two casinos Thursday for gambling violations. Lakeside Casino in Osceola agreed to a penalty of three-thousand dollars after a man who had signed an agreement blocking him from gambling was allowed to conduct a cash transaction at the casino to obtain $15,900.

The man later cashed in $11,400in chips. Casino spokesman Jim Quilty told the commission they made changes to prevent this from happening. He says mistakes are made as the result of human error and they are making efforts to be sure they learn from those mistakes.

Quilty says the employee who allowed the transaction to happen was disciplined. Quilty says all of the personnel were trained so they better understand their obligations.

The Mystique Casino in Dubuque agreed to a penalty of $20,000 after an underage person was allowed onto the gambling floor four times and was able to gamble. Roger Hager of the Mystic Casino spoke to the commission.

Hager says they have re-trained all the employees involved in the incident and says they have been disciplined as well. The penalties were handed out at the Racing and Gaming Commission’s meeting in Johnston.

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Racing and Gaming Commission approves on-line betting for horse races

November 10, 2011 By

The Iowa Racing and Gaming Commission approved emergency rules today that would allow on-line gambling at the state licensed Prairie Meadows horse track in Altoona. Racing and Gaming administrator, Jack Ketterer, says the rules will allow what’s called “Advanced Deposit Wagering.”

Ketterer says gamblers set up an account with an advanced deposit wagering operator, and they could then wager on races around the country or at Prairie Meadows if they are an Iowan. He says they could place the bets on-line, over the phone or with a mobile device. Ketterer says the commission does not normally use emergency rules, but they did so in this case to allow Prairie Meadows to begin offering the option as soon as they are ready.

He says the legislature approved the procedure and there were no comments at a public hearing on November 8th. Ketterer says if they had gone through the normal process, final approval would not come until March. He says they did not want to be “the fly in the ointment that is holding the thing up.”

Ketterer says another consideration is the economic benefit it will have for the state. Ketterer says Prairie Meadows and Iowa horsemen will start receiving the revenue for the on-line betting that has been going out of state, and that will benefit Iowans.

Ketterer says the rules approved today make sure the betting is done legally. He says the rules are specific on the process and procedures for the advance deposit wagering company so they have things like password protected accounts, and make sure the people wagering are not underage.

Prairie Meadows C.E.O. Gary Palmer, told the commission they are in the process of setting up their A-D-W system. Palmer says they’ve had a lot of A-D-W companies come in and show them what they do and he says they’ve decided along with the horsemen to hire a consultant to help them decide how to set up the system. Palmer says they should be able to start offering A-D-W by the new year.

He says it has been an “interesting and exciting proposition thus far.” Palmer says they are moving along quickly and hope to be able to meet the goal of starting on January first.

Ketterer says it’s not yet know how much money the A-D-W system might bring into the state.

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Changes in the works for casinos in Davenport, Osceola

June 9, 2011 By

The owners of state-licensed casinos in Davenport and Osceola announced plans today to answer concerns raised at their license renewals in March. The vice president of the Isle of Capri Casino in Davenport told the Racing and Gaming Commission his company has reached an agreement with developer M-S-E-G to negoitiate to sell the casino.

City officials identified M-S-E-G as their preferred developer, and Isle V.P. Ed Quatmann says they are trying to work out an agreement.

“The terms were quite frankly, hard for us to swallow, we understand what the city is trying to accomplish, we said we would be cooperative, and we have been,” Quatmann said.

He says the deal gives the developer 60-day exclusivity to work out an agreement. Davenport Mayor Bill Gluba says they look forward to seeing development of a downtown casino plan. Gluba says he is delighted that the Isle of Capri has moved ahead with their developer. “Because for far too long we felt that we have been treated as an afterthought in Davenport,” Gluba said, “revenues have declined every year, attendance has dropped.”

Gluba says the Isle of Capri had decided to put its main focus on it’s other eastern Iowa properties, which caused Davenport’s casino to lose money. He says the state and local governments are losing about 25-thousand dollars a day because of “failure to develop this boat the way it should be and to compete.”

Gluba says the developer promises to make a Davenport record investment of 75-million dollars into a new hotel and casino in the Davenport area. Quatmann said the 60-day negotiation period will run into August, but he says if they are close to an agreement they would continue talking.

The non-profit organization that holds the license for the Terrible’s Lakeside Casino in Osceola had complained to the commission in March that the owners were not doing anything to upgrade the casino to compete. The casino owners responded today with a 10-million dollar plan to upgrade the facility. Architect Pierce Cody presented the Herbst Gaming plan which he says adds to the current hotel.

Cody says the plan includes a 90-bed expansion to the existing hotel, and the current 60 rooms will be refurbished. They will include amenities along the water, such as an outdoor stage and amphitheater. Contractor Brent Cooper says they are seeking the appropriate permits and would like to start construction as soon as possible.

Cooper says they are prepared to break ground on July 11th and would start pouring concrete in early August. He says the goal is to have the wood structure up in October and be enclosed by January, so they would be able to work inside during the bulk of the winter. Clarke County Development Corporation attorney Doug Gross, says they are pleased the company has followed through .

Gross says this was the first they had seen the project they don’t want to hold up the project and don’t have any objections to it. He says they are pleased with the aggressive timeline for the improvements. Gross says the improvements are a good step to addressing their concerns.

Gross says they still have an issue that the non-profit gets only one-and-a-half percent of the gross gaming revenue. He says that amount half of what other non-profits get and less than half of the statutory minimum set by the legislature in 2004. Gross says that means less of the casino money stays in the community.

The manager of the casino said they inherited many problems from the previous owner, and are trying to work with the non-profit as they move ahead. The Racing and Gaming Commission gave the casino the okay to move ahead with plans and will vote on their final approval at its July meeting.

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