Penn Gaming through its Sioux City based operation Argosy Casino has filed a “Petition for Receiver” in Polk County Court.
Penn Vice President Karen Bailey says in an e-mailed news release that the purpose of the petition is to have the court appoint a third party “receiver” to receive and hold or distribute the revenues the Argosy currently generates for the Siouxland community.
The funds have previously been turned over to the local license holder of the casino, the Missouri River Historical Development or MRHD.
Bailey's statement says the purpose of a third party receiver in a case like this is to remove the 3% of revenues or approximately $1.8 million annually from the disagreeing parties and to put it with a third party until the matter is resolved.
Argosy cites in the petition the ongoing dispute over whether a contract exists between them and MRHD.
Argosy asserts that it has a contract with MRHD, signed through March 2015 while MRHD disagrees.
The contract dispute between Argosy and MRHD is not scheduled in Polk County Court until April 2014.
Bailey says it is hypocritical of MRHD to dispute the existence of the contract yet still demand the monies from Argosy – they can’t have it both ways.
Bailey says Penn Gaming's intention is to do everything possible to ensure these dollars go to the community as they are intended, not to support a legal war chest or the development of the Hard Rock Casino.