Opening nears for $84 million casino in Dubuque
December 8, 2008
DUBUQUE (AP) — In the midst of an office buzzing with activity, Todd Moyer took a moment to direct the ordering of some new staff shirts.
They should be in by early this week, instructed Moyer, the general manager of the Diamond Jo Casino.
Of late, Moyer’s days — and often nights — are filled with such details as the final hours wind down before the opening of the new $84.1 million Diamond Jo Casino.
The 188,000-square-foot entertainment complex at the Port of Dubuque is set to open Thursday, Dec. 11. It includes a casino with more than 900 slot machines, a 30-lane bowling center with two party rooms, three restaurants, three bars, broadcast center and 5,000 square feet in meeting and banquet space.
It’s a massive project, but after five years of working in Las Vegas and over a decade in Atlantic City, N.J., Moyer knows a thing or two about the gambling business and directing such ventures.
He started at the Diamond Jo in the spring of 2007, brought in largely to take the lead on the Diamond Jo project, and is confident as the finishing touches are put on over the next few days that the general public will be awed when the doors finally open.
“I think they’re going to be surprised how comfortable and warm the tones are,” he said, describing how the gambling house is meant to create a sense of escape.
This is not like the stereotypical glare of casinos, he said, but is meant to be a softer set of twinkling slot machine lights in an entertainment complex with widespread appeal.
The details everywhere emphasize that approach — from the artwork sections to small things like specially designed granite countertops, according to Moyer.
The general manager and other project leaders have emphasized throughout the development process that the complex includes a lot more than a collection of slot machines. It is filled to the brim with entertainment venues, from a sports bar and grill to a theater with the capacity to hold 800. Entertainers like pop and country star Jewel, Collective Soul, Darius Rucker, the Doobie Brothers and Cheap Trick are slated for upcoming performances.
Jack Ketterer, administrator of the Iowa Racing and Gaming Commission, said offering an array of entertainment options is a common trend among modern casinos.
“Even our smallest casinos that have been built most recently put in hotels, put in restaurants, put in an entertainment venue or conference facility,” he said.
Those that don’t, he said, sometimes find their business suffers.
“You have that issue in Marquette, it’s pretty much a day trip in and out,” he said, noting that there aren’t a lot of hotel and motel options in the region near the Lady Luck Casino.
One thing is clear: the new Diamond Jo will raise the stakes in the Dubuque area gambling scene. But how will crosstown rival Dubuque Greyhound Park & Casino, in the midst of its own $10 million renovation, be able to compete with the massive Diamond Jo complex?
“The big question this summer will be how much will (the two facilities) expand the market?” said Ketterer, who said both Dubuque casinos have a core market in a 25-mile radius, but there is potential to reach much farther.
Jesús Aviles couldn’t be reached for comment, but the racetrack casino general manager has emphasized in recent months that the renovation at the racetrack casino is about “growing the market.” And it’s clear the Dubuque Racing Association, the track’s nonprofit license holder, is concerned about the stepped-up competition.
“I feel if we don’t do this now, we will be behind the eight ball,” Aviles told DRA board this fall, making the case for the renovation.
What started as a $7 million project now has reached $10 million and will include an overhaul of the racetrack casino’s kitchen, the addition of a fine dining restaurant and an events center that seats 500.
Aviles has described the face-lift as creating a “bright and lively” atmosphere with a Parisian theme that touches on the area’s French-Canadian roots. It is slated for completion this spring.
Dubuque Greyhound Park & Casino has a lot to lose, and a lot of stakeholders counting on its success. In the three-plus years since its approximately $30 million expansion, the property has dominated the Dubuque casino scene, controlling about two-thirds of the marketplace.
In October, the latest figures available from the racing and gaming commission, the racetrack casino posted $6.73 million in adjusted growth revenue, welcoming nearly 136,000 patrons. The Diamond Jo recorded $3.57 million in revenue, counting some 61,000 patrons.
Market dominance has produced record distributions to DRA stakeholders. Under its lease with the city of Dubuque, the nonprofit is mandated to distribute 40 percent of its post-expense revenue to the city, with 30 percent going to charities. The racetrack casino retains the remaining 30 percent in reserve.
Turnabout in the Dubuque casino market could come by early next year, as the comparatively colossal Diamond Jo goes head-to-head with its smaller river city rival.
But Moyer is determined that both gambling houses can be sustained in the area, pointing to the healthy and successful marketplace in Las Vegas.
“I think we both recognize we have to work together to succeed,” he said, adding that multiple venues will make trips to the area worthwhile for visitors.
“Success breeds success,” Moyer said.
He added that he and Aviles have a good rapport, especially having moved in the same industry circles for so long, and they agree that the expansion of both properties will be a major economic boost for the area.
If Vegas isn’t an apt comparison, Ketterer pointed to coexisting facilities in smaller cities in the area, like Council Bluffs.
He believes the two Dubuque rivals can coexist, especially given the array of options being added.
“Those are reasons to come that wouldn’t necessarily just attract people if they were just slot machines and table games in a building and that’s all they have to offer,” Ketterer said.
“They offer people a reason to come to Dubuque more often, to stay longer when they do come and to come from longer distances,” he said.
The idea that bigger casino/entertainment venues will draw more visitors is a concept Dubuque tourism leaders are banking on.
“What people are always looking for is what’s new out there,” said Keith Rahe, director of the Dubuque Area Convention and Visitors Bureau.
“To have these two establishments in our community, with the commitment they’ve made, it’s just going to help everyone bring in more people. That’s what all of us are trying to do is make Dubuque a destination for a variety of people, and this just adds to our assortment of things,” he said.
Moyer believes that all of the attractions of the area — from shops to the new casino — will provide an overall appeal as a tourist destination.
“When you look at why people come to Dubuque, we’re just part of it,” he said, adding that the idea is to keep people in the area more than a few hours. “Everything goes hand-in-hand; we’re not building an island here,” Moyer said.
He noted that only about 20 percent of the new facility is devoted to gambling.
Moyer noted a top survey of those going to gambling destinations found their top reason for going was not gambling, but shopping. People are looking for a variety of venues in which to spend their money, according to Moyer.
And since the new Diamond Jo doesn’t include major retail — although there are gift and pro shops — Moyer said that the downtown stores are bound to benefit.
For every one event the Diamond Jo takes away, Moyer estimates it will bring 10 more receptions, meetings or other gatherings to the area.
Today also brings the end of an era in Dubuque, the conclusion of riverboat gambling, as the Diamond Jo staff formally leaves the boat behind to move to the new building.
“Certainly, people are going to be sad,” Moyer said.
He has solicited stories from employees about their experiences on the boat but said the memories weren’t necessarily bittersweet. Most of the Diamond Jo staff has been part of the new project since it began, and he said their enthusiasm about working in the new facility so far is trumping any feelings of nostalgia.
The National Mississippi River Museum & Aquarium will use the former building adjoining the boat for its planned expansion.
The museum is in the midst of a $38 million project that museum executive director Jerry Enzler and others hope will be the premier point of discovery and education along the river. The museum plans to take possession of the casino’s Portside building a month after the Diamond Jo exits.
But since the boat doesn’t contain any specific historical significance, and the museum already has the decommissioned steamboat dredge William M. Black, the old Diamond Jo boat is on the market.
Moyer said there has been some interest expressed, but no buyers yet.
When it comes to staffing the new Diamond Jo, which will total around 450 employees, most of the jobs have been filled, but Moyer said there are still a few positions open.
In general, the Jo’s general manager said he is pleased with the level of expertise in the employees that were hired following job fairs in the past few months.
But is the bigger Jo as big as it can go?
The complex was supposed to house all the offices, but Moyer said 15 corporate officials from parent company Peninsula Gaming Co. have had to set up shop at the nearby Star Brewery.
“We’re a little landlocked right now,” he said.