SIOUX CITY, Iowa (KTIV) -
Gambling brings big bucks to Siouxland. But at stake right now more than 300 jobs. There are only eight weeks left to reach an agreement to save those jobs.
Owner of Sioux City's Argosy Casino, Penn National Gaming, and the non-profit that shares its gaming license, Missouri River Historic Development, have not been able to agree on a new operating contract.
The groups need that contract before their gaming license expires on July 7th.
Negotiations started about a year ago, when MRHD and Penn's 20-year contract came up for renewal.
Originally, MRHD saw it as an opportunity to move the Argosy ashore, putting it downtown and attracting much more business.
So, Penn drafted some rough proposals for a new casino. One of MRHD's biggest concerns is the percentage of casino revenue turned over to the community.
Right now, MRHD gets 3%. They say other license holders in the state get more than 6%.
Penn counters, even at three percent, MRHD will get 27% more revenue, because a new casino will earn more.
If MRHD and Penn National Gaming can't work out differences by July 7th, the casino's gaming license will expire. Penn says that would force them to close the Argosy, putting an estimated 325 people out of work.
"If we cannot break this impasse, then unfortunately we would have no choice but to close down," said Eric Schippers, Penn National's Senior VP of Public Affairs.
Schippers said they have no other option, but MRHD president Mark Monson said different.
He claims twice now, they've offered Penn a chance to temporarily extend their current contract, until a new one is finalized.
"We want the best deal we can get for Woodbury County and the people that live here," said Mark Monson, MRHD Board President.
At a meeting with the Iowa Racing and Gaming Commission last month, MRHD reps said by turning down their offers, Penn is using employees as a bargaining chip, holding them "hostage" in negotiations.
Penn sees it differently, saying they're just protecting their investment.
"We fear that they may be using the notion of an extension to be able to go out and shop for another operator. So our desire is to stay in Sioux City, protect our investment there, protect the 325 jobs that we have generated," said Schippers.
Monson says looking for other operators is an option, but for now they're still trying to work things out with Penn.
"I'm still somewhat optimistic we can make this work," said Monson.
Penn agrees, and if anything, they're confident they'll meet deadline.
"We have eight weeks left and believe that should be sufficient time to develop a resolution," said Schippers.
