DES MOINES -- The Iowa Racing and Gaming Commission approved a pair of studies on Thursday to identify areas of the state that could support new casinos or gaming establishments.

The studies will determine if Iowans have an appetite for expanded gambling options, and could guide the commission on decisions regarding new licenses for gambling establishments.

The studies will be required to analyze the demand in Tama, Franklin, Webster, Wapello and Lyon counties because those counties have already passed referendums to approve gambling, an important step before gaining a license.

But the studies aren't limited to those counties.

Chairman Greg Seyfer said the panel reviewed proposals from four consulting firms before deciding to accept contracts with Minneapolis-based GVA Marquette Advisors and Innovation Group, which has its main headquarters in New Orleans.

GVA Marquette Advisors will receive $75,000 for its study, and Innovation Group will receive $106,500.

"We looked at the dollars, and we decided we had an opportunity to have the two studies done, which would give us, obviously, that much more information when we have to make these decisions," Seyfer said.

The studies will identify markets in the state that are "underserved" or where existing gaming establishments are "underperforming" and not meeting the demand that exists for them.

Seyfer said the studies are scheduled to be completed by the middle of May, and the commission could act based upon the information contained in the reports by June.

He said the current economic slowdown could curb interest in gambling in the state, but the studies will take into account the economic and financial environment as well as the impact new casinos could have on currently existing gaming establishments and state tourism.

Seyfer said the commission accepted the two cheapest study proposals to grant commission members access to more information on which to base their decisions.

Both studies will cover the same ground and the commission gave the firms the same set of requirements and subjects to analyze.

"Once we get the reports, at that stage we'll decide whether or not there should be another round for applications for [casino] licenses," Seyfer said.

Contact Fred Love at (515) 243-0138 or fred.love@lee.net.