Encyclopedia Dubuque
"Encyclopedia Dubuque is the online authority for all things Dubuque, written by the people who know the city best.”
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Affiliated with the Local History Network of the State Historical Society of Iowa, and the Iowa Museum Association.
RIVERBOAT GAMBLING
RIVERBOAT GAMBLING. In March 1989 the Excursion Gambling Boat Act was passed by the Iowa Legislature. This law allowed limited, low-stakes casino gambling on Iowa's rivers and lakes beginning April 1, 1991. Iowa became the fourth state to adopt non-Indian, commercial casino gambling preceded by Nevada (1931), New Jersey (1976), and South Dakota (1988) and the first state to introduce riverboat gambling. While the legislation was promoted as economic development, the regulatory nature of the legislation was designed to maintain the wholesome image of Iowa. There was a $5 minimum wager and a $200 loss limit per excursion. Only 30% of the boat's square footage could be devoted to the casino, sailing was mandated rather than dockside gambling, and sections of the boat had to be devoted to persons under 21 years of age and to Iowa arts and crafts. Riverboats were chosen over land-based casinos because it was thought they would provide the greatest economic stimulus for surrounding businesses.
Dubuque interests were quick to capitalize on the new legislation. Robert KEHL had the DUBUQUE CASINO BELLE constructed and quickly moved to the ICE HARBOR. Combining gambling with his popular dinner cruises made Kehl's operation very successful. In 1991, Iowa's riverboats earned $63.8 million from 2.1 million visitors. In 1992 the revenue increased to $70.5 million and 2.2 million guests.
The success of Iowa riverboats brought quick competition from surrounding states. In January 1990 the Illinois Legislature passed the Riverboat Gambling Act, and boats began operating from Illinois on September 11, 1991. The first boats at Alton and Peoria were distant enough not to affect the Iowa market, but in 1992 Illinois boats operating with less regulation opened in Rock Island and East Dubuque.
The effect of the increased competition hit the Iowa riverboat gambling industry quickly. In 1992 the three riverboats located in Bettendorf, Dubuque, and Burlington closed. In 1993 total revenue fell to $54.3 million and the number of visitors to 1.7 million.