- Associated Press - Thursday, December 1, 2016

SIOUX CITY, Iowa (AP) - A Sioux City nonprofit is suing the owner of the former Argosy Sioux City riverboat casino for unpaid revenue.

Community Action Agency of Siouxland, or CAA, is seeking nearly $2 million in revenue-sharing payments on behalf of itself and as many as 54 other nonprofits that have received grants from the Missouri River Historical Development. MRHD is a state-licensed nonprofit group that distributed some of the casino’s gambling profits, the Sioux City Journal (https://bit.ly/2gR4gPg ) reported.

“I believe that the money was to be set aside to be given to agencies like ours,” CAA executive director Jean Logan said. “It would be our intent that the money be distributed to benefit the economy.”

The Belle of Sioux City, which operated the casino, was a subsidiary of Penn National Gaming Inc. Penn, the nation’s largest gaming operator, stopped making payments to MRHD in April 2013 after suing it for breach of contract. Penn had sought an appointment of a third party to distribute the funds until the lawsuit against MRHD was settled, but that request was denied. State regulators also denied Penn’s request to redistribute the funds to a new local nonprofit.

Community Action’s lawsuit is trying to collect those withheld funds. The suit gave two alternatives for collection - one in which Belle would deposit the owed money into a trust that a judge set up, or another in which the case would proceed as a class-action lawsuit with CAA seeking a monetary judgment against Belle.

The riverboat casino was sold to a state shipyard and removed from the shore after its closure.


Information from: Sioux City Journal, https://www.siouxcityjournal.com

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