Components

Davenport Case

Will the City of Davenport Take a Big Gamble?

Brittany Cord, Luther College
January 12, 2021
SKU:
BUS-007292
Region: 
North America
Topic: 
Strategy & General Management
Length: 
10 pages
Keywords: 
government, Governmental Accounting, Nonprofit Management, SWOT Analysis, Stakeholder Model
Copyrighted by: 
Society of Case Research
Student Price: 
$4.00 (€3.68)
Average rating: 
0

Davenport was one of the first cities in Iowa to have riverboat gambling in the early 1990s.  Its riverboat, Rhythm City Riverboat Casino, was not rebounding from the 2008 recession and the riverboat was falling into disrepair.  As a potentially strong revenue source, City leaders blamed the owner, Isle of Capri, and claimed they were letting the Rhythm City riverboat decline in favor of investing and promoting their Isle of Capri riverboat in the neighboring city of Bettendorf.  After years of studies, discussions, and meetings, the City of Davenport proposed it purchase the Rhythm City Casino and redevelop it into a land-based casino.  A city owning a casino was a rare business move and there were a lot of questions from city leaders, the Iowa Racing and Gaming Commission, voters, and investors on how it would all work and would it bring the budget relief some City leaders promised.

Learning Outcomes: 
  1. Develop an appropriate stakeholder analysis for public agencies that desire to engage in owning or operating gambling establishments.
  2. Analyze the relationship between stakeholder actions and socioeconomic concerns for cities that desire public ownership or operation of gambling establishments.
  3. Identify decision-making tools for the City of Davenport.
  4. Evaluate appropriate criteria and strategic management tools for the City of Davenport’s decision-making about gambling establishments.