COMMENTS ON THE ISLE OF CAPRI CASINO
by Bill Lynn, Fifth Ward Alderman

For many people in Davenport the Isle of Capri Casino has become a major issue.  In this document I want to discuss the Casino.  I believe it is important to understand the current situation and not become wrapped up in the politics. I have heard many suggestions by candidates, but in all honesty under the current situation they may not be viable.

Under the current structure we own the license and the Casino works under this license.  In exchange, they pay a percentage of their revenue.  That revenue goes to the Riverboat Development Authority and is used for projects in Davenport.  Much of this money goes to non-profits in the area.  The city also receives some tax money.  Probably the two big things we get out of the casino is the tax revenue and jobs. 

From a purely economic perspective the only money that can be considered as development money is revenue generated from residents outside the city.  Residents, who spend money at the casino instead of somewhere else in the community, simply move money from one business to the other and there is no net impact on the economy.  Currently, I understand about 70% of the gambling money comes from people in the community. 

One problem related to the casino is that we are building more casinos in Iowa and they are pulling money away from the Davenport casino.  A few years ago, the state had undertaken a study that indicated that increasing the number of casinos might not increase gambling revenue.  This meant that building new casinos would just take money away from existing casinos unless we could attract more gamblers from outside the state.  This seems unlikely since many other states are legalizing gambling. 

The current owner of the Davenport casino owns the Bettendorf casino.  They are making a large investment in Bettendorf with the assistance of City of Bettendorf.  I find it unlikely they will make a large investment in Davenport also.  I believe we need to interject some ground rules and competition into this discussion.  That is the reason I asked we put a minimum lease price on the south side of the River Center.  I also asked we open discussions with the Meskwaki.  I do not necessarily want to lease the River Center, but I believe we need to find out how serious the casino is. 

So far the Isle of Capri has been absent from most public discussions and they have not had many meetings with the city.

I have heard many recommendations about where the casino should be, but it must be understood that this is the casino’s decision.  We cannot force them to do anything and I do not believe we should provide them any incentives.  They may opt to keep the casino as it is and maintain the license.  If this should happen I imagine we will face dwindling revenues from the casino. 

I have heard it suggested that they locate near the interstate.  I believe, if they want to attract people from outside the area, that is a good idea; but I still believe they have little incentive to do much in Davenport given that the Isle of Capri has a casino in Bettendorf, and there is a large casino being built in Rock Island.  Given that there is a limit as to how much gambling revenue can be generated, I do not think the Isle of Capri will want to take that risk. 

A major question for Davenport may be: