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Omaha World Herald wrote: Bluffs Run ups its ante, seeks $85 million expansion

COUNCIL BLUFFS - Bluffs Run Casino would become a Horseshoe Casino if it receives permission to proceed with an $85 million expansion and renovation.

The expansion would more than double the cost of a previously announced project.

The greyhound park would continue to operate as Bluffs Run Greyhound Park, Gaye Gullo, general manager of Harrah's, said Wednesday.

The addition would be 100,000 square feet, including two restaurants. A 20-table "world-class" poker room, where poker tournaments would be played, would be created in existing space, Gullo said.

Harrah's Entertainment Inc. bought Horseshoe Gaming Corp. in July, including rights to the World Series of Poker. Harrah's also runs Harrah's Casino in Council Bluffs.

Horseshoe operates casinos in Mississippi, Louisiana and Indiana.

The company is scheduled to seek approval for the project Thursday from the Iowa Racing and Gaming Commission, Iowa's gambling regulatory body.

In March, Bluffs Run received the commission's OK for a $38.6 million project that included adding 68,000 square feet and renovating other areas. But the project did not move ahead.

New plans filed with the state and the City of Council Bluffs indicate that part of the existing casino would be renovated and that a large casino area with new entrances and a 1,000-space parking garage would be added north of the existing building.

Documents indicated that the upgraded facility would have space for up to 1,900 slot machines and 36 table games, Gullo said.

Bluffs Run has the largest slot floor in Council Bluffs, with 1,640 machines.

The Council Bluffs Planning Commission is expected to consider the proposed changes to Bluffs Run's plan Dec. 14. The City Council also would have to approve the changes.

However, Harrah's officials said in March that they had been planning a renovation and expansion at Bluffs Run since the company took over the Council Bluffs casinos in 2001.

Bob Mundt, president of the Council Bluffs Area Chamber of Commerce, said Wednesday the proposed expansion is a "good indicator that they've got confidence in this market."

"That's part of our economic fabric, and any expansion is a good thing," he said.

The proposal comes on the heels of a number of changes in Iowa gambling rules and in the gambling industry.

Jack Ketterer, the Iowa gambling commission's executive director, said the earlier Bluffs Run expansion plan came before the Iowa Legislature voted in April to allow table games such as blackjack and poker at racetracks, making those facilities full-fledged casinos.

Plan Will Make Bluffs Run Biggest In Iowa

New 'Horseshoe Casino' Would Open In 2006

COUNCIL BLUFFS, Iowa -- Council Bluffs' Bluffs Run Casino could soon be the biggest in Iowa -- and some gambling proponents in Nebraska say it is a direct result of the recent election.

The casino will expand by about 69 percent from its current size. Harrah's Entertainment, the company that owns Bluffs Run, will turn it into a horseshoe-shaped casino and add 250 slot machines, a poker room, 36 additional gaming tables and 300 more employees. The name will change to Horseshoe Casino.

The Iowa Racing and Gaming Commission reviewed the $85 million proposal Thursday and approved it. The new casino is scheduled to be completed by 2006.

On Election Day, Nebraska voters rejected two initiatives to expand gambling in the state. But Bluffs Run said there is demand for casinos in the Omaha metro area, and it will help fill that need.

"In fact, the market is growing by about 10 percent," said Heidi Hamers, with Bluffs Run. "We can fill that demand with our new product."

Hamers said the expansion plans were in the works long before Nebraska's election results were in. But the woman who led the fight to expand gambling in the Cornhusker state said there is a correlation.

"I was very disappointed, and I think the timing is not an accident," said Julie Plucker, who led the group Keep the Money in Nebraska. "Iowa has it figured out. The market is Omaha, the market is Nebraska. Seventy-five percent of the money comes from here. They're going to capitalize even further on that market."

Pat Loontjer fought expanded gambling. She said Bluffs Run's plans just confirm what her group, Gambling With the Good Life, said all along.

"Nevada gambling interests are insatiable. Once they take a state -- get the camel's nose under the tent -- they never stop," Loontjer said.

Nebraska's pro- and anti-gambling groups say the fight isn't over in the state to expand gambling.

redfield wrote:I agree, it's time to let the gambling thing go. Not only did it not pass, it got destroyed by the voters. I think any future attempts to bring casino gambling to NE will be an exercise in futility.

Daily Nonpareil wrote: Expansion to go before City Council

State gaming officials approved it and so have city planners.

The proposed $85 million renovation and expansion of Bluffs Run Casino will now go before the Council Bluffs City Council for its vote Monday night.

The Iowa West Racing Association is requesting an amendment to the approved development plan for Bluffs Run Casino to allow them to make major changes to the site, to include enlarging the building, adding a parking garage and changing signage to reflect its new name - Horseshoe Casino.

On Nov. 18 of last year, the Iowa Racing and Gaming Commission approved the plan. IRGC approval was followed by approval by the city's Community Development Department and the Council Bluffs Planning Commission.

The council Monday night will vote on a resolution to amend the original development plan for the casino to allow the project to start.

Bluffs Run officials want to locate all gaming devices on the main floor, increase and enhance the food offerings and improve guest amenities and services.

They plan to add 133,364 square feet to the existing 93,021- square-foot first floor for a total of 226,385 square feet used for gaming, dining and guest services.

Existing space on the upper level will be used for administrative services and storage.

A new four level parking garage will connect on the northeast of the expanded facility. State gaming officials also approved additional slot machines to a potential maximum of 1,900, 36 table games and 20 poker tables.

Published Thursday
March 17, 2005

Expansion raises stakes in Bluffs

BY ROBYNN TYSVER
COUNCIL BLUFFS - Upping the gambling ante, Bluffs Run broke ground on an $85 million expansion Thursday that will result in the city's biggest and first full-fledged, land-based casino.

The new casino will get a new name - Horseshoe Casino - a new buffet, new cafe, new steakhouse, new poker room, blackjack tables and more slot machines. The dog track will remain.

The project, expected to be completed next spring, is the latest play in a market that has seen many changes over the past two decades, including the addition of riverboats and a series of upgrades.

What's next? Probably more land-based casinos, say those in the business.

That's likely as the new casino puts competitive pressure on the riverboats, especially Ameristar, to stay abreast.

One possibility is river barges. Iowa law lets riverboats expand onto large barges beginning in summer 2007. A barge would be the equivalent of a land-based casino with a moat.

Land-based casinos are considered a step up from riverboats. They are more spacious, with higher ceilings and easier access.

Ed Fasulo, general manager of Ameristar, acknowledges that the new Horseshoe Casino will have an impact on the city's gambling market and, likely, Ameristar's long-term plans.

Ameristar recently began a $26 million expansion of its hotel rooms, buffet table and, eventually, the second and third floors of its riverboat.

"The land-based casino concept is definitely going to have an influence on what we do down the road," Fasulo said.

Ameristar is the current market leader in Council Bluffs and will be the new casino's main competitor. The other riverboat is owned by the same company that owns Bluffs Run, Harrah's Entertainment Inc.

Fasulo said change is an essential component of the industry.

"Las Vegas, in the last 30 years, has virtually remade itself three times. Each time, they remake and re-engineer themselves, they raise the bar and attract a whole new audience," Fasulo said.

Council Bluffs is no different.

Nineteen years ago, there was a simple dog track. On its first day, more than 6,000 tried to get into Bluffs Run before management shut the doors.

In 1995 and 1996, dog racing slipped down the gambling marquee as two riverboats dropped anchor, and slot machines began ringing at Bluffs Run.

At first, the riverboats cruised daily. Then they cruised a few hours of the day for several months a year. Then they stopped cruising entirely.

After that came the expansions and renovations.

All three Bluffs casinos periodically expand the floor space given to slot machines.

Bluffs Run had 1,120 machines in 1995 and has 1,649 today. Harrah's, which opened in 1996, began with 886 slots and now operates 1,220. Ameristar slots grew from 1,200 in 1996 to 1,565 today.

Last year, Iowa lawmakers passed a law that allows Bluffs Run to operate table games. It paved the way for the new, full-service casino.

Jon wrote:Interesting...

The casinos are expanding and reporting record revenues. Yet Council Bluffs is saying they need to raise taxes or cut school programs.

DMRyan wrote:I can't even imagine how much higher the State of Iowa's taxes would be without the casino revenue coming in. Our state budget is increasingly reliant on gambling money, which makes me suspect that we may see up to 4 or 5 new casinos being announced in May when the Gaming Commission makes their decision on locations. That will fund any future economic development intiatives put in place this legislative session.

But no, they haven't done much to ease the tax burden locally.

Sounds like an economy to be very proud of...

DMRyan wrote:

...with casinos in Riverside...

DMRyan wrote:

It provides jobs, gives a token amount back to the community and is a form of entertainment.

Daily Nonpareil wrote:Harrah's Entertainment Inc. is hoping for a little luck.

As Harrah's executives and local dignitaries broke ground on the new $85 million Horseshoe Casino on Thursday, they buried several horseshoes.

"We are planting these lucky horseshoes in the ground under what will be the cornerstone of the new facility," said Gaye Gullo, senior vice president and general manager of Harrah's Council Bluffs and Horseshoe Council Bluffs. "The Horseshoe will literally be built on a foundation of luck."

The casino - which will feature 68,000-square-feet of gaming space, 36 live table games, including a 20-table poker room, and 1,900 slot and video poker machines - is slated to open during the first quarter of 2006.

When the new casino is finished, Horseshoe Council Bluffs will be the region's largest casino - both in terms of square footage and gaming positions.

It will also be the area's only land-based full-service casino, with all of the gaming devices and tables located on a single contiguous floor.

Ten years ago to the day, Bluffs Run Casino broke ground. While the Horseshoe will mark the end of Bluffs Run Casino, the existing race track will continue to operate under Bluffs Run Greyhound Park.

Council Bluffs Mayor Tom Hanafan reflected upon the original ground breaking for Bluffs Run, the opening of Bluffs Run Casino, and Thursday's ground breaking - something he calls the "Bluffs Run Trifecta." He asked the gathered audience to raise their hands if they attended the trifecta, and dozens did.

"All of those hands show the kind of commitment and consistency we have in this community," he said.

Hanafan said that the project will bring more than 300 construction jobs to Council Bluffs, and construction jobs drive the economy.

"We are already seeing the effects of these (construction) jobs," he said.

After the completion of the new casino, an additional 300 employees will be added.

Harrah's projects that the Horseshoe will generate more than $1.4 million in local gaming tax revenue and more than $50 million for the state of Iowa in the next five years.

Hanafan also pointed out that the Horseshoe will bring quality dining, not often seen in the metropolitan area, to the ever-growing entertainment corridor in Council Bluffs.

The new casino will offer three restaurants, including the 400-seat Village Square Buffet, which will offer food from around the globe - including Chinese, Italian and Tex-Mex.

Jack Binion's Steak House will be a 140-seat steak house featuring choice steaks, prime rib, veal and seafood, with a private dining area and an extensive wine list.

JB's Cafe will consist of an 80-seat cafe and offer 24-hour casual dining.

In addition to the restaurants, the "Rockin' Roadhouse" will be a 300-seat bar located off the casino floor. The venue will be expandable to 500 seats to accommodate a wide range of entertainment offerings.

The renovations will also include a 1,000-space parking garage immediately adjacent to the casino.

The legendary Jack Binion, founder of Horseshoe Casino, attended the ground breaking. Binion developed the Horseshoe Casino into a Las Vegas icon by offering high limits and generous odds.

His reputation grew in 1970 when the Horseshoe hosted the first-ever gambling tournament, The World Series of Poker.

"All my life I have tried to make casinos right for gamblers," Binion said. "I have seen the plans for the new Horseshoe, and it is going to be great."

Chuck Smith, president of Iowa West Racing Association, said that revenues generated by the three Council Bluffs casinos have allowed Iowa West to distribute $140 million to the surrounding areas.

"With the capital commitment that Harrah's is making, we will be allowed to take those contributions to a higher level," he said.

"Council Bluffs truly has an exceptional, winning business strategy," Gullo said. "I've been fortunate to work with a number of great collaborators - from members of the city council to the Iowa Racing and Gaming Commission to our architects, designers and employees."

Yes, it provides jobs, but at the expense of numerous businesses that have gone out of business due to casino gambling. IMO, the net increase is very small, if any. I owned a retail store in Omaha when the casinos opened. My store sold outdoor supplies, and relied on leisure time and leisure money. When the casinos opened, I can point to my books and show a definite 20% drop in sales. We eventually gained some of that back, but our net effect was a 15% drop in sales from that point forward.

Besides a few cosmetic changes I really don't see what the casinos have done for CB. Still not very many well paying jobs, the housing stock has improved a little bit and have yet to see any kind of substantial increase in population that these new businesses/ entertainment venues might have brought due to new jobs. It may be that many people will be commuting to Council Bluffs for those minimum wage jobs but don't want to live there.

Besides a few cosmetic changes I really don't see what the casinos have done for CB.

West Omaha has a nice mix of jobs with all income levels, not primarily service positions. As I have driven through the main parts of Council Bluffs the housing stock leaves a lot to be desired. Anyone with money wants to build in the loess hills away from the trailers.

DMRyan wrote: I have to ask, in a relatively wealthy metro of 800,000 people, how can a casino take away 20% of the business in a small business selling outdoor supplies from across the river? Realistically, were there other factors possibly involved too?

Omaha isn't the size of Mayberry and not even close to every customer gambles to the point of having no disposible income for other things.