SIOUX CITY, Iowa (AP) – A Sioux City nonprofit and its former casino partner are battling over proceeds from the Argosy Sioux City riverboat casino.
Casino operator Penn National Gaming Co. and Missouri River Historical Development are at odds over the portion of casino revenue that’s supposed to go to a local nonprofit. A July 18 court hearing has been scheduled.
The Sioux City Journal reports that Penn stopped making revenue-sharing payments to Missouri River Historical Development last month and proposed designating a third party to distribute the money.
The nonprofit’s current agreement with Penn expired in July 2012, but the group argues Penn should honor the terms of that deal as long as it’s operating.
Penn is asking the court to appoint a neutral third party to receive 3 percent of the casino’s adjusted gross revenue and distribute the money to charities while the contract dispute is ongoing.
The revenue-sharing dispute is part of a larger legal fight between Penn and the nonprofit over their operating agreement. Penn sued Missouri River Historical Development in September and accused the group of violating an exclusivity clause of their pact by negotiating with other casino operators.
Penn and Missouri River Historical Development spent months in stalled negotiations before the Iowa Racing and Gaming Commission took the unprecedented step of putting the Woodbury County license up for bid.
