Other than Nevada and New Jersey – and small stakes gaming in Deadwood, S.D. – Iowa has been in the legal casino business longer than any other state. In many ways, the state’s 19 commercial casinos have grown into the community fabric.
“Gaming has been transformational for Iowa,” said Wes Ehrecke, who has spent 19 years as CEO of the Iowa Gaming Association. Since the first riverboat casino opened in 1991, Ehrecke said the state’s primary goal behind legalizing gaming wasn’t just for casinos to provide tax dollars but also support other parts of the state’s economy.
Wes Ehrecke, CEO of the Iowa Gaming Association
He pointed to the Buy Iowa First program. In 2017, Iowa’s casinos purchased almost 85 percent of their products, supplies and services – $239.3 million – from Iowa-based businesses.
Also, through the County Endowment Fund Program, which was created by Iowa lawmakers in 2004, almost $9 million from commercial casino gaming tax revenues was distributed to non-profit organizations in all 99 Iowa counties – including the 84 counties without a casino. Since it was created, the fund has donated $62 million from casinos to community organizations.
When the American Gaming Association decided to bring its Get to Know Gaming campaign to Des Moines last week, Sara Slane, the trade organization’s senior vice president of public affairs, knew there was an historic story to tell, as well as the financial figures.
“This is a state that has been doing this longer than most other states,” Slane said following the hour-long presentation. “While this is a fully mature gaming market, it was amazing to sit and listen to members of the audience tell us how gaming created so many opportunities.”
According to the AGA, Iowa’s gaming industry employs more than 15,000 people, supports $618 million in wages, and has a total economic impact of $2.5 billion. Iowa’s casinos produced gaming revenue of roughly $1.4 billion in the last fiscal year.
The state has traveled a long road since introducing its first riverboat casinos in Davenport, Dubuque and Bettendorf. In 1994, Iowa became the first Midwestern state to legalize racetrack casinos.
Up until 2011, residents in counties with casinos were required to vote every eight years on a referendum to renew local gaming. Not once did a renewal referendum fail to pass.
As of this year, only three of Iowa’s casinos are located over water. “Those locations have land-based non-gaming amenities,” Ehrecke said.
In a report on the state produced by the AGA, Pete Tulipana, president of the Iowa West Foundation in Council Bluffs, said casinos are responsible for his community’s economic development opportunities.
“The economic impact of gaming runs deep in Iowa,” Slane said. “We as an industry remain focused on engaging with communities, supporting small businesses and creating stable jobs across the Hawkeye state.”
Sometimes, the benefits are not just economic.
The night before the AGA, an estimated 27 tornados tore through parts of the state. Prairie Meadows Casino and Hotel, located in Altoona roughly 20 miles east of Des Moines, turned its casino into an evacuation center until the storms subsided.
“We are proud to call Polk County our home,” said Brad Rhines, chief strategic officer for Prairie Meadows. “As you heard today, there is a real commitment in our industry to give back to the communities we serve.”
Howard Stutz is the executive editor of CDC Gaming Reports. He can be reached at hstutz@cdcgamingreports.com. Follow @howardstutz on Twitter.
