Newer Iowa casinos give bigger payouts to non-profits. SIOUX CITY -- Deb Hanson was moved to tears at a meeting of the state Racing and Gaming Commission last month as she described what casino gaming has meant for her Iowa community.
Hanson is chief financial officer for the Worth County Development Authority, the local nonprofit sponsor for the Diamond Worth Jo Casino. Under a long-term agreement, the authority collects 5.75 percent of the adjusted gross revenue, or about $5 million annually, from the land-based casino, which opened in 2006. On a percentage basis, the charitable group's take is the second highest in Iowa, just behind the 6 percent that goes to the Palo Alto County Gaming Development, the nonprofit sponsor of the Wild Rose Casino in Emmetsburg.
Four other land-based casinos built in the last six years also distribute at least 4.5 percent to the local groups holding their state gaming licenses. Gambling Review News » Blog Archive » Iowa problem gambling center misused funds. A portion of the revenue from the Iowa Lottery and Iowa casinos goes to “nonprofit” organizations tasked with treating problem gambling.
A recent state audit, however, found that one such center wasn’t using those funds as directed and criminal prosecution may be in the future. State auditors found more than $114,000 in alleged misspending by the Eastern Iowa Center for Problem Gambling located in Davenport. The Davenport location closed in June 2008. The problem may have been much bigger than that. Auditors were missing a lot of information due to records that were either shredded or lost (both are violations).
On Monday, State Auditor David Vaudt said that his staff had begun investigating the treatment center after receiving a tip in March of 2008, only three months before the center closed, alleging a misuse of funds. “The director and her attorney definitely fought giving us access to their records. Tags: Iowa gambling, problem gambling.
Prairie Meadows charitable contributions. Anti-casino Activist Accuses Cedar Rapids Mayor of Conflict of Interest. CEDAR RAPIDS, Iowa - A Cedar Rapids woman who is working to defeat Tuesday’s vote on casino gaming in Linn County is accusing Ron Corbett of an ethics violation related to the proposed Cedar Rapids casino.
Lisa Kuzela, 49, of 341 Carter St. NW, says Corbett violated state ethics rules by casting a City Council vote in October for the casino venture in which two CRST Inc. executives have invested. Corbett works on special projects at CRST. On Monday, Corbett said Kuzela’s ethical accusation is groundless and misstates the facts. On Oct. 9, the Cedar Rapids City Council voted unanimously to support a Cedar Rapids group of investors led by Steve Gray in a proposed Cedar Rapids casino project if two things occurred: the investors succeeded in obtaining petition signatures to force a public referendum and if the referendum passed.
Wisconsin’s Scott Walker to help Branstad raise money for 2014. Tomorrow night Iowa’s Republican governor and lieutenant governor are holding a fundraiser in Cedar Rapids.
Terry Branstad was elected to a fifth term as governor in 2010. The money Branstad will be raising tomorrow night isn’t for the 2012 election. It will go into Branstad’s campaign fund. This morning during his weekly news conference, Branstad said this about whether he’s raising money for race #6: “Let’s just say, we’re keeping our options open.” Gambling Review News » Blog Archive » Study: IA governor’s plans would close casinos.
Posted on: March 22nd, 2011 1:45 pm | By: Jeremy Schrute As soon as Iowa Governor Terry Branstad (R) proposed drastically increasing the tax rate for the state’s casinos, the industry has been livid.
The casinos and anyone who has a basic understanding of economics concluded that it would hurt business and result in reduced profits and reduced employment. Now there is a study to back that up. Governor Branstad’s proposal would tax casinos at a 36% rate, which is a large hike from the current level of 22% or 24%, depending on the casino. Today a study conducted by Harvey Siegelman of the Strategic Economics Group was released, showing just how bad the tax hike would be for the state. In the report, Siegelman says that the massive tax increase would result in four of the 17 casinos going out of business.
In addition to four casinos closing shop and another four being put in a severe financial situation, the tax increase would also result in the layoff of 2,600 workers. Gambling Review News » Blog Archive » Iowa considers increasing gambling tax. With most U.S. states in debt, the country is looking for ways to close budget gaps.
Whenever that happens, the issue of gambling is likely to come up. After all, gambling and casinos are major sources of revenue. A lot of money changes hands and a lot of money is to be made. Iowa is now looking at gambling as a way to increase revenue, but not in a way that’s beneficial to residents. Some states, such as Pennsylvania and New Jersey, have looked to gambling expansion as a way to generate more revenue.