Gaming News

County wary of Prairie Meadows plans

IOWA -- As reported by the Des Moines Register: "Officials at Prairie Meadows Racetrack and Casino in Altoona say they might have to ask Polk County taxpayers to guarantee up to $40 million in bonds for a new hotel, but county officials have serious doubts about the idea.

"Adding a hotel and a parking garage at the Altoona gaming facility has been discussed for at least the past four years. However, financing has been difficult to obtain. Advertisement

"Prairie Meadows chief executive Gary Palmer last week told the Iowa Racing and Gaming Commission "we are definitely looking at a hotel" with 150 to 200 rooms. He said a hotel is needed to remain competitive in Iowa's casino industry.

"But bankers are reluctant to loan money for a hotel because Polk County voters will decide in November 2010 whether county-owned Prairie Meadows' casino will stay in business, Palmer said. Casino officials have been unable to persuade lawmakers to change the referendum requirement.

"...Taxpayers backed $40 million in bonds that financed Prairie Meadows in 1986. The horse track went bankrupt, leaving taxpayers stuck with millions of dollars in bond payments until it struck gold when slot machines were installed in 1995. The borrowed money was eventually repaid..."

< Gaming News