The US state of Iowa could be called a gamblers’ paradise. There’s horse and dog racing, the Iowa lottery with its contentious VLTs, bingo, riverboat and dockside casinos and Indian gaming. Between April and September four more riverboat projects are scheduled to open and the existing casinos are expanding to offer players additional facilities. It is anticipated that the new casinos will add $200 million annually to the present $1.1 billion in Iowa’s gambling revenue.

A study completed two years ago for the Iowa Racing and Gaming Commission estimated that the state could generate an annual $1.7 billion if gambling was offered in all 99 counties. The study concluded that with 16,466 slot machines for 2.1 million adult Iowans at that time, an increase would be a viable proposition. It also found that more than 50% of revenue came from out of state gamblers. Both commercial and tribal gaming operators are finding that offering wider entertainment and convention business is proving profitable, hence the multimillion dollar expansion and upgrading projects underway.

In 2004 there were nearly 8,800 casino employees in Iowa and the state spent the $252.67 million gaming tax revenue on infrastructure, education, local government and the environment. The gaming industry and the state legislature will doubtless pay close attention to the additional Iowan casinos to see whether gambling revenue in Iowa does increase or whether it only shifts existing money around the market. Gambling operators are betting big that the payout will be well worth the investment. (E-03.13.06)

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