Iowa Riverboat Gambling History
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The Kehl family business started in the 1960’s when Bob and Ruth Kehl bought and ran a café in downtown Dubuque, Iowa. By the 1970’s they were also in the catering business and had purchased a 150-passenger steamwheeler, “River Rogue” for dinner cruises.
In all, the Kehls operated four riverboat casinos in the midwest: Dubuque Casino Bell, the Mississippi Belle II, Catfish Bend Casino, and St. Joe Frontier Casino. When land-based casinos were licensed in 2004, the Kehls led the Iowa gaming industry forward, opening Riverside Casino and Golf Resort in 2006 and Grand Falls Casino and Golf Resort. Forget about riverboats, online gaming is the new frontier when it comes to gambling in Iowa. Ben Kieffer discusses the future of gambling in Iowa and how.
In 1977, the Kehls commissioned a 377-passenger “Spirit of Dubuque.” The Mississippi Belle and Mississippi Belle II followed in the 80’s. In 1986, the business expanded to West Virginian with the West Virginia Belle, a 1000-passenger boat.
Hard work creates success. Bob and Ruth Kehl received the National Small Business of the Year Award from President Reagan in 1986, beating out Microsoft for the honor.
It’s no secret the Kehls were opposed to the idea of gambling on the rivers when the idea was floated in the Iowa Legislature in the late 1980’s because of the threat to their riverboat business. They soon figured out gambling was likely coming. No one was in a better position to be part of this new industry.
The Kehl family has been involved in gaming since its inception in the state of Iowa. On March 8, 1990, the Dubuque Casino Belle, Inc. owned and operated by Robert and Ruth Kehl, was granted the first riverboat gaming operator’s license in Iowa and the license was issued on April 1, 1990. The Dubuque Casino Belle became the first American-flagged vessel to offer gambling cruises in the United States.
The Kehls received their second license in 1991 for the Mississippi Belle II, which started riverboat gaming operation on June 1 in Clinton, Iowa.
The Kehl’s had interest in and operated a total of four riverboat casinos in the Midwest; Dubuque Casino Belle, the Mississippi Belle II, Catfish Bend Casino, Fort Madison/Burlington, Iowa and Saint Joe Frontier Casino, St. Joe, Missouri.
Today, the Kehl’s have majority ownership in Elite Casino Resorts, LLC, which owns and operates Riverside Casino and Golf Resort® in Washington County which opened in 2006, Grand Falls Casino Resort® in Lyon County, Iowa, which opened in 2011, and Rhythm City Casino Resort®, which reopened in 2016. Riverside received one of only four new Iowa gaming licenses awarded by the Iowa Racing and Gaming Commission out of ten applications in 2005. Grand Falls was the only license awarded by the Iowa Racing and Gaming Commission of four applications in 2010. In 2014, the Kehl’s became owners of the existing Rhythm City Casino in Davenport and opened a land-based casino resort to replace the existing riverboat in June 2016.
The owners of a former Sioux City, Iowa, riverboat casino have agreed to pay $1.5 million to a nonprofit group that had filed a lawsuit over unpaid revenue-sharing funds.
The Community Action Agency of Siouxland and the Belle of Sioux City reached a settlement last month, the Sioux City Journal reported. Belle operated the Argosy Sioux City riverboat casino.
The nonprofit sued Belle and Penn National Gaming Inc., the Belle’s parent company, in Nov. 2016 for monthly revenue-sharing payments that the companies withheld from the Missouri River Historical Development Inc. The MRHD collected and distributed the casino’s gambling profits to charitable and civic organizations.
Belle stopped making the payments, which were 3 percent of the boat’s adjusted gross revenues, in May 2013 after it sued MRHD for breach of contract.
“I feel this money was owed to our community, and I’m proud to have played a role in recovering that money. I think it’s going to make a big difference for some of (the nonprofit agencies),” said Jean Logan, executive director of the Community Action Agency.
More than 50 agencies can claim a $10,000 share of the settlement, Logan said. The settlement shares don’t have restrictions, so agencies have the freedom to decide how they spend the money, she said.
“It’s not very often that money comes to us as nonprofits without a lot of strings attached,” Logan said.
Penn National Gaming is pleased the matter has been settled, said Jeff Morris, vice president of Public Affairs and Government Relations at the company.
The breach of contract lawsuit involving MRHD is pending in Polk County District Court.
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- Categories:Midwest NewsTopics:$1.5 million lawsuit settlement, Argosy Sioux City, Belle and Penn National Gaming Inc., Belle of Sioux City, breach of contract, Community Action Agency of Siouxland, Iowa Riverboat Casino, Missouri River Historical Development Inc.
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