Herbst Gaming gets ultimatum from Iowa
Iowa gaming regulators renewed the license for Herbst Gaming to operate the Terrible’s Lakeside Casino in Osceola on Thursday, but not without a few conditions.
The Iowa Racing and Gaming Commission demanded the Las Vegas-based company make good on longstanding plans for a $10 million development that would include a hotel and other attractions.
Herbst Gaming executives were told to return in June to outline plans for the 60-room hotel and additional improvements.
According to the Des Moines Register, Iowa Gaming Commissioner Greg Seyfer instructed Herbst Gaming officials to return in June with specific development plans. He wants construction on the project begin by Oct. 1.
Seyfer said he would vote against the casino’s license renewal in 2012 if Herbst Gaming doesn’t comply with the commission’s instructions.
Herbst Gaming Chief Executive Officer David Ross said the company, which recently emerged from Chapter 11 bankruptcy reorganization, was committed to building the hotel.
Ross said the company is in talks with two hotel developers, one of which has already hired an architect. If those plans fall through, Herbst Gaming is prepared to build the hotel on its own.
“We will do the hotel expansion,” Ross told the newspaper. “It is the right thing for us. It is the right thing for the state of Iowa.”
Herbst exited bankruptcy at the end of December with its long-term debt reduced from $1.2 billion to $350 million. The Herbst family no longer has any stake in the casino operator.