After months of political horse-trading and high stakes haggling, the Iowa Senate approved major gambling legislation Monday and sent the bill to Gov. Tom Vilsack's desk.
Senators punctuated the legislative gambling saga with a 37-11 vote after just 45 minutes of debate. Passage cleared one of the last remaining barriers between lawmakers and final adjournment, which is expected sometime today.
Vilsack said he would sign the bill.
"I've indicated before that that's something we can do," Vilsack said.
The bill rewrites Iowa's gambling tax structure in the wake of a long legal battle between state officials and racetrack casinos. The legislation also leaves the door open to the possibility of new gaming licenses after voters in six counties gave a green light to riverboat casinos.
Local leaders in Black Hawk, Worth, Franklin, Palo Alto, Wapello and Webster counties see new riverboat casinos as economic engines capable of creating jobs and related development. Lawmakers declined to block those hopes, leaving the final say on new licenses with the Racing and Gaming Commission.
"That's their job. That's what they're hired to do," said Sen. Mark Zieman, R-Postville, who guided the bill to passage in the Senate. "We've got six counties who passed it and I know they're not all going to get a license."
But lawmakers from towns with riverboat ambitions, who fought off efforts to kill expansion, praised the bill.
"I think we've got a very good bill. I'm very happy with it," said Sen. Bill Dotzler, D-Waterloo, who backs expansion. "I'm very happy with it."
For the existing gambling industry, the bill contains trade-offs.
Racetrack operators agreed to pay a higher tax rate and make one-time payments intended to help the state get past budget difficulties. Track interests also agreed to forgive $117 million overpaid taxes while allowing the state to pursue a final legal appeal.
Riverboat casino operators also agreed to pay a higher tax rate and make similar one-time payments.
But racetrack operators, for a fee, could be given state permission to offer table games --- such as blackjack, craps or poker --- alongside existing slot machines.
And riverboats no longer would be required to take costly, periodic cruises. Removal of that cruising requirement would also pave the way for casinos to be placed on powerless barges.
The measure moves cash and credit-dispensing ATMs out of casino wagering areas. And the bill pumps more money into treatment programs for addicted gamblers, with roughly $5 million for treatment in the next fiscal year.
But gambling opponents saw the legislation as one more misguided step in the march to expand Iowa's gambling industry, despite what they contend are its devastating social effects.
"I think we need to pause a moment to consider the impact of our actions," said Sen. Jack Holveck, D-Des Moines. "Eventually, we'll have gambling in every tavern. Eventually (gambling) will sink of its own weight."
Among the 11 senators who voted against the measure were Sens. Bob Brunkhorst, R-Waverly, Richard Drake, R-Muscatine, David Johnson, R-Ocheyedan, Steve Kettering, R-Lake View, Kitty Rehberg, R-Rowley and Ken Veenstra, R-Orange City.
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