Floating Casino Creates Controversy

Miller eventually resigned from the Riverbend Regional Authority in Muscatine, disturbed by the socio-economic problems he saw. He was a featured speaker at a rally organized by "Citizens Voting No on Oct. 7," which is working to defeat the gambling referendum here.Nearly 200 people showed up at the Five Sullivan Brothers Convention Center to pick up red-and-white "Boat No" signs and pink ribbons, and to hear gambling foes like Miller explain why they believe allowing Isle of Capri's proposed $80 million casino on a man-made lake and hotel near the Lost Island Adventurepark would bring more cost and problems than benefits.

Miller, a past president of the Muscatine Chamber of Commerce and past director of the Muscatine Development Corp., said small businesses suffered when people began spending their money at casinos instead of on other goods and services. Restaurants and hotels were especially hard hit.

Meanwhile, he said, gambling would boost the rates of divorce, bankruptcy, suicide and crime. The National Gambling Impact Study Commission Report in 1999 said when gambling comes to an area it creates 1.9 percent more pathological gamblers and 3 to 4 percent more problem gamblers, which equates to nearly 4,400 people in Black Hawk County.

Jay Nardini, spokesman of Citizens Voting No, said the tax relief and economic benefits touted by gambling supporters are hollow promises.

"They will say, they will do, they will promise anything to get their hooks into our local economy," he said. "Only a pittance (of the profit) will stay here for us, while the rest is in a pipeline to Biloxi, Miss.," home of Isle of Capri's headquarters.

"The gambling isn't going to bring you much in the way of tax relief," he added, noting state law only allocates 1 percent of the adjusted net revenues - the amount lost at the casino --- to be split by the host city and the county.

Members of the Black Hawk County Gaming Association, promoting the Oct. 7 referendum, have said Isle of Capri will pay an additional 5.75 percent of its adjusted net revenues to the association, which will distribute it for property tax relief, projects and charities throughout the county.

Even if that's true, Nardini said, the $6 million to $8 million in annual revenue being projected by gambling proponents is inflated. And he noted the "money that goes into the belly of that boat is not subject to state sales tax," which will rob the local governments of local option sales tax revenue used for street repairs and school construction.

"Taxes have never gone down in a county where there's gambling," he said. "Gambling tax is the crack cocaine of government. They will take that money and spend it five times over. Then they'll look to add more gambling."