Iowa Temporarily Suspends Casino Expansion
The Iowa Racing and Gaming Commission has announced a decision not to issue new casino licenses for the time being. Rather than continue the state's rapid casino growth, the Commission wants to undertake a study, reviewing the effects on communities of the casinos already operating, as well as possible saturation of the market.
Iowa currently has 20 casinos operating. No new applications have been accepted in the last three years, although four licenses issued at the time have begun operations since then.
Several counties and towns have requested casinos for their areas, wishing to enjoy the job and revenue benefits other cities have received. However, existing casinos are claiming the market cannot handle more casinos, and that new locations would simply dilute current revenues among more venues.
The Commission will meet today to discuss the possible study, as well as set a timetable under which to reconsider the expansion issue. Some members have suggested eighteen months, but that is still on the table.
Of course, existing casinos always oppose new ones. Exclusivity gives management the chance to return fantastic revenue numbers without necessarily providing a first-class, customer-friendly casino environment. Competition should be welcomed in that it will force substandard operations to adjust or fail. Hopefully, Iowa will soon answer the pleas of those areas discriminated against by current license restrictions.
