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Iowa Lottery’s Board of Directors discusses sports betting after court ruling

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Iowa Lottery Board

The five-member board that oversees the Iowa Lottery has directed lottery staff to “explore…the feasibility” of having Iowa retailers use lottery terminals for sports betting.

Sports betting has been legal in the State of Nevada for decades, but a U.S. Supreme Court ruling in May overturned a federal law which had prohibited legalized sports betting in other states. On June 5, Delaware began offering full-scale sports betting in casinos along with a more limited sports lottery in retail locations.

“In the last month, we’ve heard from several of the lottery’s largest retail organizations who have said that if sports betting is legalized in Iowa, they want the option of offering it as a product in their locations,” Neubauer said today during the lottery board’s meeting.

Mary Neubauer

Scientific Games, the company that helps run Delaware’s sports lottery, also has the service contract for Iowa Lottery terminals that handle play slips and print lottery tickets.

“Given the expertise involved, we fully anticipate that our current system provider could allow the Iowa Lottery to offer sports betting,” Neubauer said. “Ultimately, the decision as to whether sports betting will be legalized in Iowa and exactly what sports betting were to look like if that were to occur here is a decision for our state’s lawmakers.”

The casino industry has been lobbying Iowa legislators for several years to pass a bill that would allow sports betting run by the state’s casinos, if the court ruled states could proceed. Mary Rathje of Marion, a member of the Iowa Lottery’s board, said Iowa Lottery retailers “need to be represented,” too, and that’s why lottery staff need to continue doing the research about how a sports lottery could work here.

Rob Porter

“The casinos, I’m sure, have already got their scope and how they want to proceed with this and we need to be able to be on the same page, if and when it’s decided,” Rathje said during today’s board meeting.

Rob Porter, the Iowa Lottery’s legal counsel, said the businesses that sell Iowa lottery products are looking for ways to boost in-store traffic as consumers shift more of their purchases online.

“One of the things that has the most interest for our retailers is if individuals had a convenient option to place legal bets, it certainly would drive traffic to their store, especially in rural locations,” Porter said, “and the potential for economic development and additional traffic in the store is something that helps them and, by extension, helps us.”

Iowa Lottery officials will not lobby legislators to approve a sports lottery option, but have been directed by the board to research, monitor and prepare for a state law that might involve the lottery in sports betting.

A sports lottery would not be a big revenue producer for the state. Lottery officials predict is would yield between $1 million and $6 million annually. Last fiscal year, the Iowa Lottery generated nearly $81 million in revenue for the state.

Regulators approve fine for Harrah’s in Council Bluffs, parking ramp for Hard Rock Sioux City

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The Iowa Racing and Gaming Commission unanimously approved a development agreement today between the Hard Rock Casino and Sioux City for an $11 million parking ramp that will add up to 580 spaces and result in part of the casino being remodeled. Commission member Jeff Lamberti says the ramp helps the casino and city.

“We see it as being really good for both, to be able to provide that kind of parking — because it does matter you know when you get bad weather, I mean we have bad weather half of the year. Quality parking matters and certainly for the Tyson Center…it’s just a win-win for both,” Lamberti says. The commission met at the Hard Rock

and they also approved a 20-thousand dollar penalty for Harvey’s of Council Bluffs after an underage girl got onto the gaming floor. The girl’s parents distracted the casino security guard while her grandparents quickly sneaked her in. Lamberti says this is something that’s been tried at other casinos too.

“This is becoming a little more common. You know I’ve been on the commission now almost seven years and when I was first on I don’t recall where we were seeing family members and other adults really trying to facilitate or assist someone in breaking the underage gaming rules,” according to Lamberti. Lamberti says they commission members want to see everyone involved face a penalty.

“We have spent some time talking about it. We strongly encourage local law enforcement to charge not only the minor — but the family members that assist,” Lamberti says. The girl’s family has been barred from entering the facility following the violation.

(By Woody Gottburg, KSCJ, Sioux City)

 

Hard Rock Casino in Sioux City pays penalty for underage gambling violation

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Slot machines at the Hard Rock Casino.

The Hard Rock Casino in Sioux City agreed to a penalty today from the Iowa Racing and Gaming Commission for allowing minor to gamble.

Racing and Gaming administrator, Brian Ohorilko, says it happened in November. “She was on the floor for 56 minutes and had gambled at two different slot machines. The facility did notice her after she had been on the floor — approached her requested identification — and she refused and exited the casino quickly. It was determined later that she was indeed underage,” Ohorilko says. He says the situation met all the three criteria to be considered a violation of underage gambling.

He says the past precedent is for an administrative penalty of $20,000s and the Hard Rock agreed to pay that penalty. He says the penalty was based on the past history of the casino.

Ohroilko the casino has not had such an incident in the last 365 days, so it is considered a first offense. Ohorilko says state agents will determine if the minor is charged.

“There is a state law which would allow for a minor to be cited criminally,” Ohorilko says. “And so in a situation like this what typically happens — and what happened in this case — is it would be turned over to the Division of Criminal Investigation.” The IRGC took the action at their meeting in Council Bluffs.

Endowment fund sends gambling money to counties without casinos

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Wes Ehrecke

The president of the Iowa Gaming Association presented the annual report on the County Endowment Fund during the recent meeting of the Iowa Racing and Gaming Commission.

The casinos each have a nonprofit partner which receives a percentage of the gambling profits each year to be spent in those counties. IGA president Wes Ehrecke says the County Endowment Fund was created 11 years ago for the 84 counties where there is not state-licensed casino.

“Out of our gaming tax revenue approximately $130,000 goes to every non-casino county. They each have their community foundation, a separate board of directors by which they can then set up and allocate those dollars,” according to Ehrecke. The money has a couple of requirements.

He says 25% of the money has to stay in a permanent endowment and the rest has to go out in grants. Ehrecke says the counties are able to use the money each year to leverage more funding. Those 84 county foundations helped fund several projects last year.

“Nine million dollars to 2,175 grants that you see listed in there for all kinds of innovative and worthwhile projects,” Ehrecke says. The counties with casinos sent approximately $53 million to their nonprofits. Ehrecke says some of the money in the casino counties also helps surrounding counties.

The non-casino counties originally received one-half of one percent of the game tax revenue each year — but that was increased to eight-tenths of one percent in 2006. For more information on the program, go to www.iowacommunityfoundations.org.

 

Casinos in Clinton and Jefferson pay penalties for violations

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State-licensed casinos in Clinton and Jefferson will pay $5,000 penalties for violating the rules for gamblers who banned themselves.

The Wild Rose in Clinton sent a mailing out in September to a person who had signed up for a self-ban in February of 2017. General manager Steve Nauman apologized to the Racing and Gaming Commission and says they take the self-ban issue seriously.

“We’ve spent countless hours to go through this program. We have made some changes, some safeguards,” Nauman says. “This happened when our marketing coordinator…failed to pull a new list,” Nauman says. He’s referring to the list of players who have banned themselves that is used as a reference. He is hoping the changes made in the system will prevent any future problems. “Now the marketing coordinator cannot send out emails until it is proven that she has pulled the new list and our marketing manager needs to sign off on it,” Nauman says.

The Wild Rose in Jefferson also had a violation as a person who had signed a self-ban at another casino was allowed to sign up for a player card at the Greene County facility. General manager Travis Dvorak apologized and said the casino has taken steps to correct the problem.  He says they did an audit and looked at procedures and have retrained all employees in the importance of reviewing identification.

Dvorak says they’ve taken other steps too, which includes the head of security becoming a trainer in I-D identification.  “We’ve also implemented a new audit procedure which we have communicated with our local rep. We will be doing a monthly audit of the state ban list to our internal control system….,” Dvorak says. “We’ve also taken addition steps for training.”

Brian Ohorilko

Iowa Racing and Gaming Commission administrator Brian Ohorilko says the rules governing the self-ban are being reviewed after several recent violations.  Ohorilko says the commission staff created a task force to evaluate all the procedures used to prevent people on the list from receiving marketing materials.

He says they also recently visited with the casino operators.  “To see what’s working well and maybe what’s not working so well,” Ohorilko explains. “At the end of the day the goal is to create a best practices document that can be shared with all of the licensees.”

The casinos face an administrative penalty from $5,000 to $20,000 for a violation of the self-ban rules. The severity of the penalty depends on the number of violations within a calendar year.

Gambling licenses renewed for state casinos

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Members of the Racing and Gaming Commission.

The Iowa Racing and Gaming Commission renewed the licenses for the 19 casinos it oversees during its meeting Tuesday in Altoona. The state issues one license to the gambling company to run the games, and one to a nonprofit organization to distribute the money they are required by the state to set aside.

Several members of the nonprofit spoke to the commissioners during the renewal process — including Dakin Schultz, president of Missouri River Historical Development, or MRHD. “Since August of 2014, Merd has received over 11 million, $500-thousand in funds to distribute as grants,” Schultz says. “We’ve granted over a million dollars in scholarships — with over half of that in the last two years alone.” He says he’s seen

Dakin Schultz

other benefits from moving the casino from a riverboat to the land.

“Our relationship with the Hard Rock Casino Hotel has been very positive….some of the things that you see when you are in Sioux City with the Hard Rock now is the astonishing change in the downtown,” according to Schultz. He says there used to be numerous vacant building in the area.

“Today with what’s going on at the Hard Rock, all those storefronts are filling up quick. It’s been a remarkable transition for what’s happening,” Schultz says.

The president of the Lyon County Riverboat Foundation, Jerry Keizer of Doon, talked about the funding they receive from the Grand Falls Casino. “Last October of 2017 we held our grant review banquet in the events center, where we distributed one million-235-thousand dollars to new projects in the surrounding communities,” Keizer says.

He says they also distribute funds from the casino golf course, with half going to scholarships. “These awards are based on applications. The remaining 50 percent of the funds are given to the Lyon County schools,” Keizer says. “There’s three schools in Lyon County that we fund. Since 2011, each school has received one-million-200-thousand dollars.”

 Steve Staebell is the president of the Southeast Iowa Regional Riverboat Commission which partners with the Catfish Bend Casino. “I’m happy to report that the relationship between the Catfish Bend Casino and the Southeast Iowa Regional Riverboat Commission or SIRRC — continues to thrive to the benefit of the Des Moines and Lee County communities,” Staebell says. He says the benefits are spread across the area.

He says the revenues are equally divided between Keokuk Area Convention and Tourism Bureau, the Fort Madison SIRRC and Grow Greater Burlington. “This year southeast Iowa is sharing the benefits of nearly $1.3 million made possible by these revenues,” according to Staebell. The Racing and Gaming Commission took the action to approve the new licenses at their meeting at the Prairie Meadows Casino in Altoona.

 

It’s National Problem Gambling Awareness Month

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Eric Preuss

Treatment experts are making an extra push this month to let you know there’s help if you think you have a gambling problem. Iowa Gambling Treatment Program manager, Eric Preuss, told state regulators today about National Problem Gambling Awareness Month.

He says groups from across America hold conferences, air public service announcements and host screening days among many other activities to bring awareness to problem gambling. He told the Iowa Racing and Gaming Commission that it is the 14th annual National Problem Gambling Awareness Month.

“Calls to problem gambling helplines jump by an average of 30 percent during the month of March — proving that Problem Gambling Awareness Month and related activities make a measurable and meaningful impact — not only here in Iowa, but also nationwide,” Preuss says. Preuss says one of the keys is educating people on the things that indicate there might be a problem.

“Signs of problem gambling include increasing preoccupation with gambling, a need to bet more and more frequently, restlessness or irritability when attempting to stop,” Preuss says, “chasing one’s loses, the lost of control manifesting by the continuation of gambling behavior in spite of the mounting serious and negative consequences.” Preuss says there is a wide variety of consequences from those who can’t stop gambling.

“In extreme cases, problem gambling can result in financial ruin, legal problems, loss of career and family, and in some cases — even suicide,” according to Preuss. He says for the small percentage of those who have a gambling problem, there is hope.

“The good news in all of this is that we have the Iowa Gambling Treatment Program. Treatment works and recovery is possible,” Preuss says. Studies have shown those who call for help see results.

“Ninety-two percent reported fewer signs of problem gambling at discharge than on admission. And among those who entered treatment having gambled 30 days prior to treatment — the mean number of days gambled decreased from about eight days — to less than one day at discharge,” Preuss says. Preuss says anyone who feels they may be a problem gambler is urged to call 1-800-BETTS-OFF to get help.

 

Restaurant and arcade chain seeks change in Iowa law

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Dave and Buster’s — a national chain of restaurants with video arcades — wants to expand in Iowa and give customers prizes like PlayStations and iPads. Iowa law, however, limits the value of prizes for “concession games” In retail establishments to no more than $100.

David Adelman, a lobbyist for Dave and Buster’s, is urging Iowa legislators to lift the limit and let the business to come to Iowa.

“The construction investment, the property taxes, the sales taxes to the state — I mean, states around the country have seen this as a no-brainer,” Adelman said today during a senate subcommittee meeting. “Again, it’s a job-creating opportunity. This is a family-friendly environment.”

Similar establishments in Iowa such as Chuck E. Cheese’s or Fun City operate under the $100 limit. The bill Adelman was commenting on would raise the limit to $950. The state’s gambling industry warns it’s a slippery slope that could make “amusement devices” in these establishments similar to casino games.

Senator Dan Dawson, a Republican from Council Bluffs, said he patronizes a Dave and Buster’s across the border in Omaha.

“We’ve had a Dave and Buster’s I believe for probably the past 10 years and casinos for at least 20 to 25 (years),” Dawson said. “I’ve never heard anyone in my metro area talk about a canabalizing or businesses or competing operations or anything along those lines.”

Dave and Busters, a Dallas-based business, operates more than 100 locations around the country. The bill it backs in the Iowa legislature must pass a committee by the end of next week or the proposal will be ineligible for consideration again this year.

(By Iowa Public Radio’s Joyce Russell; additional reporting by Radio Iowa’s O. Kay Henderson)

Bill legalizing fantasy sports betting in Iowa clears first hurdle

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Wagering on “fantasy” sports teams would become legal in Iowa under legislation that’s cleared one statehouse hurdle, but it would only be legal if the organization hosting the fantasy gaming is licensed by the state to do so.

John Cacciatore has been hired by DraftKings and FanDuel to lobby legislators and he testified before a House subcommittee yesterday.

“There are hundreds of thousands of Iowans today who play season-long fantasy sports with their friends and neighbors and co-workers, etc.,” he said. “Those same Iowans would like to also play daily fantasy sports which is basically in an online platform but that’s not allowed because, technically, fantasy sports is illegal in Iowa.”

The bill that cleared a five-member House subcommittee Thursday would allow the state’s casinos to take wagers on fantasy sports teams. Businesses like FanDuel and DraftKings would have to apply for a state license, pay state taxes and be subject to oversight from state gambling regulators.

Reverend Brian Carter is lobbying against the bill on behalf of the United Methodist Church. He told the subcommittee gambling “fosters greed” and puts faith in chance.

“We would rather support Iowa values of education, hard work and perserverance,” Carter said. “Gambling is a menace to personal charactger and social morality.”

A lobbyist for the 19 state-licensed casinos told lawmakers DraftKings and FanDuel ultimately aim to “morph” into online sports betting sites. He pointed to what happened last weekend as one site allowed “fantasy” teams to be assembled from NFL playoff game rosters — and he said the other site plans to offer fantasy sports betting on the Super Bowl.

State Regulators approve millions in renovations for Prairie Meadows Casino

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Gary Palmer

The Iowa Racing and Gaming Commission has approved more than eight million dollars in renovations for two projects at the Prairie Meadows Racetrack and Casino in Altoona.

Prairie Meadows CEO, Gary Palmer, says $6 million  of the renovations are for the convention center area adjacent to the casino. “It’s going to be all new carpet, lighting, wallpaper, it will have a whole new look to it when we are done with it,” Palmer says. “We opened this in 2006, so it’s time to remodel before it looks like it needs remodeled.”

He says the new lighting system will allow them to specialize the color of the rooms. “We have so many different people who want different things for conventions, weddings….this new lighting system we are putting in, if we are having a wedding or anniversary and yellow are their colors are say yellow — we can make that whole room yellow for you — it will accent because of our lighting,” Palmer says. He says they are doing the remodeling in stages.

Palmer says they are working on the board room and break out rooms and will work until June when they have a lot of bookings. He says they should be able to finish the rest of the renovations there by August. They also plan to spend $2.7 million to renovate the clubhouse on the fourth floor that is used for racing.

“We are going to completely redo it in colors, carpet, wall coverings, monitors — just completely redo the clubhouse on the east and west side,” Palmer says. “We are going to do the east side now before racing season.” Horse racing starts in April and they will do the renovations the west side of the clubhouse after the season is over.

The Racing and Gaming Commission approved the project at their meeting last week at Prairie Meadows.