Iowa

Legal fight over ex-Sioux City floating casino comes to an end

The Iowa Supreme Court brought an end to a long legal battle between the former Argosy Sioux City riverboat casino and state gambling regulators and the casino's former local partner.
2016-05-25
Reading time 1:45 min
The Iowa Supreme Court brought an end to a long legal battle between the former Argosy Sioux City riverboat casino and state gambling regulators and the casino's former local partner.

The court denied the Belle of Sioux City's request to review an Iowa Court of Appeals ruling that upheld previous rulings that led to the casino's closure. The Belle's application for review was the company's last chance to keep the case alive.

"I am very happy that the Supreme Court ruled the way they have, and we would hope that's closure on that," said Mark Monson, board president for Missouri River Historical Development, the state-licensed nonprofit gaming group that had held Woodbury County's gambling license with Argosy.

A three-judge panel of the Iowa Court of Appeals in March ruled that the Argosy's incomplete gambling license renewal applications with the Iowa Racing and Gaming Commission in 2012 and 2013 did not trigger protections spelled out in Iowa law and that the IRGC's subsequent actions to deny the Argosy's Iowa-based operator, Belle of Sioux City, a gaming license and award a license to another applicant did not violate the Belle's right to due process.

In his application to the Supreme Court for review of that ruling, the Belle's attorney, Mark Weinhardt, of Des Moines, said the Court of Appeals misinterpreted the state's casino license renewal statute, the court incorrectly and inconsistently determined the extent to which agencies are bound by their words and actions, and the court's ruling damages litigants' due process rights before state agencies. The one-sentence order denying further review upheld that ruling.

"The Court of Appeals issued a thorough and well-reasoned decision. We're pleased with the Supreme Court's affirmation, which now ends this litigation," said Geoff Greenwood, a spokesman for the Iowa Attorney General's Office, which represented the IRGC.

Throughout the case, Weinhardt had continually argued that the IRGC had given Argosy officials inconsistent messages throughout the license-renewal process and had denied them due process by deciding to close the casino long before granting the casino operators a hearing in which to contest the decision, which ultimately led to the opening of the Hard Rock Hotel & Casino Sioux City.
Weinhardt did not immediately respond to requests for comment Monday.

IRGC administrator Brian Ohorilko said the Supreme Court's action affirms the regulating board's belief that it had followed the law throughout the process.

"We always felt confident that we had been complying with Iowa law and had given everyone an opportunity," Ohorilko said. "It does give us a little bit of affirmation, and we're grateful we had the chance to argue our position."

 

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