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Iowa Senate Debates Gambling Late into Night

DES MOINES, Iowa – As reported by the Quad-City Times: "The Iowa Senate plunged into a late-night debate on major gambling legislation Tuesday after Republican leaders finally pushed reluctant racetrack casinos to come to terms on several key issues.

"Racetrack representatives from Dubuque and Polk County took the Senate's latest offer one day after lawmakers threatened to auction those facilities' gaming licenses to the highest bidder at year's end.

"…The Senate bill also kept hope alive for six counties vying to host new riverboat casinos.

"…Under the deal, racetrack casino operators would forgive repayment of all but $117 million in state taxes they overpaid under a previous tax structure tossed out by the Iowa Supreme Court. But $11 million in overpaid dollars would remain locked in escrow while state lawyers pursue an appeal of that ruling before the U.S. Supreme Court.

"…Racetrack tax rates would jump from the current 20 percent to as much as 24 percent. And the tracks would be required to fork over a one-time, $23 million payment to head off potential cuts in state programs funded with gaming dollars.

"…Riverboat casinos also would pay a higher tax rate, jumping from 20 to 22 percent, while agreeing to come up with a pair of $15 million payments to the state in fiscal years 2005 and 2006.

"…Racetracks would get permission to add lucrative table games such as black jack, poker and craps alongside slot machines. And riverboat casinos no longer would be forced to take costly cruises…"

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