SIOUX CITY (KTIV) - An Iowa Racing and Gaming Commission study released Tuesday, dealing with the saturation of casinos in the state of Iowa, seems to have caused some confusion over an application for a second gaming license in Woodbury County.
The market study of gaming in the state of Iowa, done for the Iowa Racing and Gaming Commission, shows that Woodbury County may not be able to sustain two casinos.
But an application for a second gaming license was turned in by the nonprofit group Greater Siouxland Improvement Association.
However, the President of the GSIA says having two casinos in Sioux City was never his intention.
"Contrary to what we've heard before, there's absolutely no intention to have two casinos in Sioux City. Again, we only need to do this so we can collect the funds and distribute them to the nonprofit organizations," Bob Knowler, GSIA president said.
However, the IRGC has confirmed with KTIV that an application for a license for a second casino in Sioux City was turned in.
Brian Ohorilko with the IRGC says while two casinos in Sioux City may not have been the intention of the application, it was for a completely separate gaming license, and it was submitted by the GSIA.
"There have been some questions, or maybe misunderstanding, as to how to apply," Brian Ohorilko, IRGC Administrator said.
Ohorilko says the application, which would effectively make for two Sioux City casinos if approved, is the necessary paperwork for GSIA to acquire the money the Argosy legally owes to a nonprofit, which the Argosy casino doesn't currently have.
"I can't say for sure what the GSIA's intent is, but I can say that in order for a QSO to be linked with an operator, they first have to obtain a license," Ohorilko said.
If the IRGC heeds the study released Tuesday on Iowa's gambling saturation, Sioux City isn't likely to land another casino.
The study found that the Argosy's revenue is projected to decrease by 18 to 23 percent from 2012 to 2014, and that the market across the entire state of Iowa is all but full when it comes to potential revenue.
Ohorilko says that the IRGC certainly takes into account whether or not new revenue could be generated, but that if the GSIA isn't approved as the Argosy's QSO, the Argosy has other options to distribute the funds they owe to a nonprofit.
The study done for the IRGC was originally intended to look into the effect a brand new casino in Cedar Rapids, Iowa, would have on the surrounding area.
The study found that the new casino would only find revenue by sucking it from the existing casinos in Emmetsburg, Riverside and Altoona.
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