Update - Judge Denies Penn Gaming's Request for Injunction - News, Weather and Sports for Sioux City, IA: KCAU-TV.com

Update - Judge Denies Penn Gaming's Request for Injunction

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By Staci DaSilva

sdasilva@kcautv.com

There could be some big changes when it comes to gaming in Woodbury County.

On Monday, a Polk County judge ruled that the Argosy Casino's non-profit gaming license holder Missouri River Historical Development, or MRHD, can reach out and try to bring a new gaming operator to Sioux City.

Penn National, the current operator of the Argosy Casino argues that it has a signed agreement with MRHD saying that MRHD will only work with Penn. But MRHD says that agreement was never approved by the Iowa Racing and Gaming Commission.

A point that Polk County District Judge Robert Hanson seems to have agreed with.

He's released his decision saying, "[Penn] has failed to establish the elements necessary for the court to grant a temporary injunction."

That means MRHD can move foreword with it's proposal to bring a Hard Rock-themed land-based casino to Sioux City.

MRHD Board President Mark Monson told Channel 9 Eyewitness News, "MRHD is pleased with Judge Hanson's decision and excited about the court-approved opportunity to partner with Sioux City Entertainment."

A Penn National Representative says he's disappointed with the ruling, but its not over yet.

Penn National's Eric Schippers said, "The judge didn't rule on the substance of the case so our case will continue. In the meantime, we will continue to explore an alternative bid. This is too important an issue to turn back now."

Schippers did not identify what non-profit Penn would be partnering with in its bid.

Because of concerns over how Hurricane Sandy may impact delivery of plans, the IRGC moved the land-based casino application deadline to next Monday.

By: Staci DaSilva

sdasilva@kcautv.com 

The partners who keep Sioux City's riverboat casino afloat are at odds over the future of gaming in town. Non–profit group, Missouri River Historical Development (MRHD) and Penn National Gaming faced each other in Polk County Court Wednesday.

Penn National representatives and attorneys flew from a different time zone to face a Polk County judge and its current gaming license partner, MRHD.

Penn National, the owner of the Argosy Casino had filed an injunction claiming MRHD has no right to partner with other operators to propose a land–based casino. Because Penn already has a deal with them.

"MRHD has been in breach for some number of months. Their constant, regular communication and interactions that I've been describing with potential operators," said Chris Tayback, an attorney for Penn National.

But MRHD thinks otherwise and told that to the court on Wednesday.

"That language does not prevent MRHD from making plans for the future. There are no extension. There is no agreement," commented Doug Phillips, MRHD's attorney.

MRHD Board Member Dave Bernstein took the stand, answering, at length, detailed questions concerning conversations, meetings, and agreements over the last year and a half.

"I did see exclusivity wording in there and I felt that the exclusivity wording strictly applied to MRHD not trying to pursue a second operator during the term of the contract but only through the end of that contract," Bernstein testified.

MRHD has openly partnered with Sioux City Entertainment to bring the land–based, Hard Rock-themed casino to Sioux City.

The hearing took about three and a half hours and MRHD says if the case doesn't go its way, the non profit could be over as we know it.

"MRHD will go away because we're out of time. There's no way to undo or redo," said MRHD President Mark Monson.

Penn National did not wish to speak at this time. The judge said he'd hope to have his decision made by Monday or Tuesday of next week.

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