ALTOONA, Iowa (KTIV) -
A new land-based casino in Woodbury County sounds like a certainty. What's not, open doors at Sioux City's Argosy until it's built.
In June, the Iowa Racing and Gaming Commission agreed to start taking gaming applications from operators and nonprofits who want a part of that new casino. In the mean time, the IRGC wants the Argosy to stay running, and its 325 workers employed.
That's easier said then done. The Argosy needs Penn National Gaming, its operator, and Missouri River Historical Development, its nonprofit license holder, to agree to an extension of their operating contract.
The two have been fighting over it for weeks. If they can't work things out, the IRGC says the Argosy could close. If it does, officials say the fault sits with Penn.
Thursday, at their meeting in Altoona, Iowa, the commission voted unanimously to approve a MRHD/Penn contract extension. It's valid until March 2013. Commissioners say it'll keep the Argosy open while they work on getting a new land-based casino stared in Woodbury County.
"We will do whatever is necessary to keep the facility open until the new land based facility is open," said IRGC Chair Jeff Lamberti.
But, for now, the Argosy's fate floats on MRHD and Penn agreeing to the extension. MRHD reps have already said it's likely.
"I think we're prepared to do that. We offered that to Penn back in October. So, in essence, the board has approved that," said MRHD President Mark Monson.
Penn National is another story. The Pennsylvania-based company is fighting the whole situation. They're going to court to overturn the IRGC's move to take gaming applications in the first place. And now, they're saying "no" to the 2013 extension. Instead, Penn suggested a recently signed agreement with MRHD that lasts until 2015.
The commission shot that down, leaving Penn frustrated.
"We have never been faced with the challenge of managing a business to a closing date, or a termination date. We are not going to be in a position today to accept a contract that we don't have in front of us for execution," said Penn National Senior Vice President Steven Snyder.
Will that change in the future? Well, Penn has until the next IRGC meeting, August 23rd, to decide. If they still say "no," commissioners have warned them of the consequences.
"At that point it could entail a closing of the facility. And it is solely in their hands," said Lamberti.
The IRGC released a timeline for selecting that new land-based casino's leaders. Here are some of the notable dates.
The commission says they'll take gaming license applications from nonprofits and operators until November 1st. If Penn or MRHD want in, whether together, or with new partners, they'll have to apply like everyone else.
On January 10th, applicants will present their proposals to the IRGC. On March 26th, the commission will head to Sioux City to visit applicants' potential casino sites. On April 18th, the IRGC will choose the nonprofit and operator victors.
State officials say it's an aggressive timeline, but consistent with previous ones.
"It's consistent with the instances we have been through before. We had an application process in 2009, also in 2004. It's in line with those two times," said IRGC Administrator Brian Ohorilko.
For the full timeline, check out the IRGC's website. They say they'll post it in a few days.
A new gaming license, by the way, costs $20 million. It's a fee Penn would most likely have to pay if they're chosen as the new operator.
