CBJ's Largest Privately Held Companies 2018

Elite Casino Resorts
4
“We try to do things that will change the landscape
here in the state,” said Dan Kehl, whose family obtained
the first riverboat gambling license in Iowa
more than 25 years ago, pioneering the state’s modern
gaming industry.
Mr. Kehl, CEO of Elite Casino Resorts, which owns
three gaming complexes generating more than $225 million
per year in combined revenue, is currently overseeing a $10
million revamp of its first
land-based venture, Riverside
Casino & Golf Resort, located
south of Iowa City. Elite’s
other properties are Grand
Falls Casino, near Larchwood
in far northwest Iowa, and
Rhythm City Casino Resort,
located at the intersection of
I-80 and I-74 in Davenport.
Riverside has seen tens of
millions of visitors in its 12-
year lifetime and was due for
renewal, Mr. Kehl said. The rehab
includes upgrading all the
DAN KEHL
CEO
finishes and furniture, redoing
two food venues, reworking a
bar, installing facilities for “grab
and go” dining and giving the
show lounge a makeover. Work at the Rees Jones-designed casino,
hotel, golf course and spa is expected to be complete in August.
The improvements are also aimed at making the casino
“more relevant to millennial clientele,” he said. Elite is “dabbling
in some skill-based gaming,” such as Topgolf Swing Suites
– golf simulators featuring comfy lounges, massive screens and
a selection of virtual games for golfers and non-golfers – although
90 percent of the gaming floor will remain devoted to
slot machines and table games.
Rees Jones’ firm also designed the Grand Falls Casino &
Golf Resort, serving the Sioux City-Sioux Falls market. The facility
has been open seven years, with the golf course featuring
a 30-foot waterfall since 2014.
“It’s going well up there. We will start a remodel of our facility
there in a couple of years,” Mr. Kehl said.
Elite’s latest venture, Rhythm City, began with purchase
of the old Treble Clef
gambling boat docked
on Davenport’s riverfront
in 2014. Its
gaming moved inland
to the Elmore Avenue
corridor two years ago
with the completion
of the $100-million
casino-hotel-events
center complex. That
change has been “well
received in the marketplace,”
Mr. Kehl said.
THE TEAM
EXECUTIVE TEAM
Dan Kehl, CEO
Ken Bonnet, COO
Bobby Kehl, Executive Director
of Golf
Dan White, GM Shared Services
Karlyn Ollendick, CIO
Each of Elite’s casinos are outperforming Iowa’s broader
gaming industry, which saw its gambling revenue tick up just
1.1 percent last year according to the Iowa Racing and Gaming
Commission. Adjusted gross gaming revenue increased 4.75
percent at Riverside to $88.1 million, 2 percent at Grand Falls
to $55.6 million, and a whopping 25 percent at Rhythm City,
reaching $65.3 million.
Three separate casino companies were combined in 2015
to form Elite, which is owned by 1,200 Iowans. That’s a fairly
large number of shareholders for a privately held firm, so Elite
acts somewhat like a public company, Mr. Kehl said, but with
key differences. The company is not burdened with quarterly
reports to the Securities Exchange Commission, worries “about
what the stock price did this quarter” or regulations that govern
publicly traded firms.
Adequate financing has been available thus far from local
banks, so going public would “create a lot of issues we don’t
have to worry about,” Mr. Kehl said.
“We look to increase our revenue every year. Our focus is
on maintaining a strong balance sheet through debt reduction
and deploying capital where it makes sense,” he added. A small
executive team allows the firm to make decisions and investments
quickly and easily. “That makes us pretty nimble.”
Elite keeps a close eye on the state for game-changing opportunities.
If the right situation comes along, the company
might consider expanding outside the state, or even a public
offering, Mr. Kehl said. A new division, Elite Hospitality Group,
is pursuing non-gaming opportunities as well.
— Emery Styron
RIVERSIDE CASINO
& GOLF RESORT
12 CBJ’S LARGEST PRIVATELY HELD COMPANIES 2018