Brian Ohorilko, Administrator of the Iowa Racing and Gaming Commission spoke at the May 14th Johnston Rotary Club breakfast. His background includes 12 years in the industry and is currently serving a 4-year term with the commission. In his role, he ensures each facility is complying with the Iowa gaming laws and has 50-75 employees assigned across the state to assist him.
Brian provided some background on Iowa’s racing and gaming. Highlights were:
1984 - The first gaming law was passed, which provided racing licenses for Prairie Meadows, Waterloo, and Dubuque.
1989 - A law was passed to have simulcasting and gaming licenses on riverboats
1994 – Slot machines were authorized at race tracks, with the money being used to supplement racing purses. Loss limits were also established in some locations
2004 – Riverboats could move off water and onto land, but the gaming floor still needed to be over water
2007 – Water requirement lifted
There are 18 facilities in Iowa, including 15 gambling structures, 3 race tracks, and 3 tribal casinos (the commission does not have authority over tribal casinos).
The Governor appoints 5 commission members and no more than 3 can be from the same political party. The commission holds monthly meetings that focus on approvals of contracts (with an emphasis on Iowa vendors) and code violations. When a new facility is being considered, a referendum must be passed in that respective community before it is discussed with the commission.
The commission staff consists of 4 types of classifications. They are: Gaming agents, State Stewards, State veterinarians and Licensing Staff.
The tax rate in Iowa is 22% for gambling and 24% for race tracks, which is about in the middle across the states. In 2012, Iowa paid $314M in gaming taxes (Pennsylvania was the highest). As for revenue generation, the Horseshoe casino in Council Bluffs is tops at $204M. Emmetsburg is the lowest at $30M. In 2012, the commission was able to distribute $41M to non-profit organizations.
There is no significant legislation in 2013, however, they are discussing a decrease in DCI agents assigned to casinos. As for current events, Brian mentioned the following:
· Potential development at existing locations (e.g., Davenport moving off water to land)
· Market analysis work to look at potential for new licenses (e.g., Linn County passed a referendum)
· With the recent referendum not passing in Warren County, they must wait 8 years before considering it again.
· Green County may try to pass a referendum in August
· Advanced deposit wagering (horse racing)