KTIV NewsChannel 4 Sioux City IA: News, Weather and SportsRacing and Gaming Commission to accept casino applications

Racing and Gaming Commission to accept casino applications

SIOUX CITY, Iowa (KTIV) -- Five Iowa counties are trying to land a casino, but it looks like only one or two could potentially end up with one.

Lyon County, in extreme Northwest Iowa, is still in the running, as the Racing and Gaming Commission decided to accept applications for new gaming licenses.

Lyon, Webster, Franklin, Tama and Wapello counties have been waiting for more than a month to learn if they can submit an application for a gaming license. With Thursday's approval from the Racing and Gaming Commission, they now have to make their applications as flashy as the machines they're hoping for.

"When the state of Iowa did their study they had two independent studies done over the last 7 or 8 months and the opportunity in Lyon county looks very favorable to them, and looks like it's one of the best opportunities in the state," said Jeff Gallagher, President of Lyon County Riverboat Foundation.

Gallagher believes Lyon County has a good chance for approval of a $90 million casino and golf resort to built on farm land near Larchwood. But a favorable report doesn't mean the license is in the bag; Gallagher says they still have a big application to fill out.

"Sometimes the application can reach 18 inches tall," said Gallagher.

And can carry with it a hefty price tag.

"It's an expensive process, it includes all of your drawings, all of your architectural stuff, all of your permits, it includes a lot of stuff," said Gallagher.

But the commission doesn't want a new casino to benefit at the expense of one that's already open. That is also the concern of Mayor Mike Hobart, who lobbied on Sioux City's behalf in Altoona.

"My primary argument was that it's going to hurt Sioux City financially, in that it would take business away from the Argosy," said Hobart.

Hobart says licensing a casino that close to the South Dakota border could encourage the legislature there to change the rules on gaming in their state.

"It would create a vacuum I believe that would hurt gaming in northwest Iowa altogether and could cause the entire house of cards to fall," said Hobart.

The commission would obviously like those cards to stay right where they are once they make their decision on who will receive a license.

"The Competition is fierce and I think it's going to take them a while to make that decision," said Hobart.

Online Reporter: Rebecca Sunshine RSunshine@ktiv.com