Divided panel approves license limit

The Racing and Gaming Commission approved the ban on a 3-2 vote a day after Gov. Terry Branstad vetoed legislation aimed at limiting new licenses, a measure the governor said was flawed.

"I think the public has had its fill," said panel member Brad Peyton. "I think that's clear."

But Commissioner Bill Hansen said lawmakers and governors were elected to make such decisions.

"It's like building a giant trap door under the Iowa House and the Iowa Senate," Hansen said. "To pass this rule would be a stain on our record."

The measure approved by the panel bans new casino licenses and prohibits expansion of existing facilities. In addition, it requires that bank and credit card machines be moved out of the gambling facilities.

The Legislature had approved a measure dealing with many of those issues, but Branstad argued that gambling forces had managed to insert provisions weakening the proposal to the point where it would actually allow more gambling.

Peyton argued that gambling regulators are the best suited to place limits on the state's legalized gambling industry because they are insulated from political pressures.

"The Legislature had a shot at it," said Peyton. "The legislative process is not well suited to setting limits."

But Hansen, a former legislator, said state regulators are limited to writing regulations enforcing laws approved by politicians, not writing those laws themselves.

"You've got three commissioners substituting themselves for 150 legislators," Hansen said.

The decision Thursday would be the same as the governor vetoing abortion restrictions that aren't tough enough, only to have the Board of Health write the tougher restrictions.

"We would laugh at some kind of proposal like that," Hansen said.

The vote Thursday is far from the last word on the issue. The gambling regulators agreed to draft regulations banning new licenses and expansion but must approve the effort again this summer after holding a public hearing.

In addition, they must submit the proposed restrictions to the Legislature's Administrative Rules Review Committee, which can delay them until lawmakers convene again to debate the issue.

Legislative leaders have vowed to mount a campaign for that delay. Joe Royce, counsel to the committee, said it was likely that Attorney General Tom Miller would be asked to rule on the legality of the panel's decision.

Hansen and panel head Rita Sealock opposed the effort.

Panel member Harold White said gambling regulators have no real power if they cannot limit the industry.

"We operate in a different forum; we're different from the Legislature," White said. "It's not fair to say you've got this Gaming Commission but the Legislature won't let it do anything."

"This is not an enviable position to be in today," said panel member Jackie Allen. "These are difficult decisions that this commission has to make. We do have the power to limit numbers and location."

The political struggle is certain to continue as well. Given that Branstad has vetoed the measure approved by the Legislature, the move by the Racing and Gaming Commission is the last remaining shot at reining in the legalized gambling industry.

If the measure proposed Thursday is derailed, there would be no gambling restrictions this year.

"I'm really uncomfortable with that," said Carlos Jayne, a lobbyist for the Iowa Methodist Council. "I would rather have accomplished this legislatively. I wish them all the luck in the world."

Jayne said he was worried that the restrictions would be blocked, a clear victory for gambling interests.

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