Nonprofit Casino? It Could Happen.

Gambling in Iowa could be a model for the Carson Nugget if the downtown casino is managed as a nonprofit by its potential new owner.

The oldest casino in Carson City could be bought by a new owner who wants to redevelop downtown under a plan that could make the current casino owners, the Adams family, managers of a nonprofit operating the casino, Nugget managers said in November.

Nugget General Manager Kevin Beaton confirmed the casino is still in negotiations with a possible developer, but said he couldn’t name the developer or say how the casino will be managed under the new owner.

“This is all in motion,” he said.

But if the casino is managed as a nonprofit, it wouldn’t be the first. Nonprofits must hold gaming licenses for casinos by law in Iowa.

Gaming companies usually run the casinos after negotiating what percent of the gross revenue that will go to the nonprofit, generally between 4 and 6 percent. Two Iowa casinos, however, are operated by the nonprofits that hold their gaming licenses.

For the complete story, please see Dave Frank, Nugget of a nonprofit, Nevada Appeal, December 7, 2008.