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  Sioux City Casino license at the verge of loss by Penn National Gaming

Penn National Gaming is struggling hard in the court to save its booming Sioux City license to be lost probably to a competitor that is strange so far and wants to get a landside license in the downtown area. Penn is situated in Iowa that is known for harmony among its casinos. Penn has in its possession the M Resort by the south end of the Las Vegas Strip and is going on with its shopping for a second Las Vegas location.  It has the credit of being the third largest and one of the richest casino companies in U.S. with 27 facilities in 19 jurisdictions. However, the officers of Iowa have a strong urge to own landside casino in downtown area.
Argosy, the subordinate of Penn has been in Sioux City since a long time. The riverboat casinos or casinos on the harbor were first of all authorized by Iowa in 1989 and the same style extended via Middle America in the coming years.
While talking to market analysts, Peter Carlino-the CEO of Penn maintained his politeness but the latest actions taken by Racing and Gaming Commission which will knock off the balance of Iowa casino business have left him in annoyance and bewilderment. Penn is operating the Argosy casino under a license granted to the Missouri River Historical Development and it will request for the landside license. But according to Penn officials, the results of this request as well as the court action taken by Penn would not be available for a couple of months owing to a large number of employees involved in the process.
As per statement given by Carlino, Penn aims to continue its functions indefinitely but they are unsure about the actions taken by the other competitors. Without the license, they will lose their business and investment poured into it and it will like a fight to the death for them. The request made by Penn for operating the landside license seems to be granted with difficulty because the company still has some costs linked with the existent license that are to be paid yet. The current license is granted one year extension for its operations since the results of landside casinos’ offer are still awaited by the Commission.
The approach of legislators and administrators in both Iowa and adjoining Illinois in all these years towards their relevant casino industries is that of do or die i.e. they make hard efforts to save their industries or demolish the same completely. According to Carlino, it is just a stupidity to snatch away a license from a successful operator. The action taken by Iowa seems to be a bad example to him and he expects other states to be wise enough not to repeat the same in their jurisdictions.


   2012-08-03






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