Sioux City reaches lease agreement on casino

Published On: Dec 12 2012 01:54:39 PM CST
SIOUX CITY, Iowa (AP) -

Sioux City has reached an agreement to extend a lease for the floating Argosy Casino.

The Sioux City Journal reports the city and casino operator Penn National Gaming Inc. agreed to extend the casino's lease for another year, with an option to extend it for an additional 18 months after that.

The City Council must approve the extension. The existing lease expires at the end of January.

The city collects about 3 percent of Argosy's adjusted gross revenue under the contract. About 300 people work at the casino.

A land-based casino will replace the riverboat casino. Three developers are seeking a state license to develop it.