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The Wild Rose Casino in Jefferson is now open. Before you go, take a look inside.
A row of games at the Wild Rose Casino on Wednesday, July 29, 2015, in Jefferson.(Photo: Kelsey Kremer/The Register)
Prairie Meadows Racetrack and Casino remains one of Iowa's most prosperous gambling operations, but its revenue is down from two years ago and it could lose some customers to Jefferson's new casino.
Prairie Meadows Chief Executive Officer Gary Palmer told The Des Moines Register he's taking a wait-and-see attitude on the impact of the Wild Rose Jefferson, which offers a $40 million gambling complex and an adjacent, separately owned 74-room hotel.
Prairie Meadows Chief Executive Officer Gary PalmerGary Palmer (Photo: Special to the Register)
"I am sure there will be some impact. I just don't know how much. But I don't think it will be significant. That's my personal opinion," Palmer said.
The Altoona casino, which is owned by Polk County taxpayers and operated by a nonprofit group, reported $186 million in gross casino revenue for the 12 months ending June 30, 2015. That was the most of any of Iowa's state-regulated gambling businesses, according to the Iowa Racing and Gaming Commission.
However, Prairie Meadows' casino revenue was down 4.6 percent the past 12 months when compared to fiscal year 2013, when gross gambling revenue hit an all-time high of $195 million, state records show.
Two independent market studies commissioned by state regulators suggest the Jefferson casino will take some market share from Prairie Meadows. Union Gaming Analytics of Las Vegas estimates Prairie Meadows will lose $13.1 million annually, or about 7 percent of its gambling revenue, while Marquette Advisors of Minneapolis projects the Jefferson casino will cost Prairie Meadows $6 million, or about 3 percent.
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Palmer says he remains bullish about the future of Prairie Meadows, noting big plans for a new 75-store outlet mall in Altoona, a movie theater and other development. He says all of the commercial growth should help draw more customers to Prairie Meadows, which had 3 million admissions for the 12 months ending June 30.
"A lot of land is being sold out here for development. We are lucky because we are in a boom area," Palmer said. The racetrack and casino, which is adjacent to Adventureland Amusement Park, is also located near key interchanges on Interstate Highway 80 that make it easy for motorists to drive to Prairie Meadows.
In the future, Prairie Meadows — like Las Vegas — is likely to rely more on revenue from food, beverages, hotel guests and other business than its casino, which is currently the primary source of profits, Palmer said. The facility opened a 168-room hotel in 2012 and a conference center in 2006, and both are a big success, he said.
A saturation of Iowa's casino industry is one factor that has restricted the recent growth of gambling revenue at Prairie Meadows, as well as the fact that the Des Moines area has blossomed into a more cosmopolitan community with festivals and other venues that compete for entertainment dollars, Palmer said. The growth of other entertainment is good, and a healthy sign for central Iowa, he added.
Prairie Meadows employs 1,400 people during horse racing season and about 1,200 over the winter months. The casino has 2,024 slot machines and 50 table games. The average casino customer leaves behind $62 per visit.
Since opening in 1989, Prairie Meadows says it's nonprofit status has enabled it to plow back more than $1.4 billion into community benefits, including $808 million in taxes paid, $516 million to Polk County government, $41 million to the City of Des Moines, and $76 million for other community purposes.
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