Iowa Revisits Casino Moratorium amid Cedar Rapids Project
Iowa’s lawmakers are reexamining the possibility of a casino moratorium despite being in the middle of advanced discussions over the proposed $275 million Cedar Crossing Casino in Cedar Rapids.
Iowa flag. Proposed casino freeze in Iowa could impact the Cedar Rapids project.
LISTEN TO THIS ARTICLE:Representative Bobby Kaufmann has announced plans to introduce legislation that would prevent new casino licenses from being awarded until 2029. If the legislation is passed before the Iowa Racing and Gaming Commission (IRGC) makes its decision on the Cedar Rapids license in February 2025, it could jeopardize the entire project.
Speaking on Iowa PBS’s “Iowa Press,” House Speaker Pat Grassley stressed the need for agreement among lawmakers, the Senate, and Governor Kim Reynolds before moving forward with a vote on the moratorium.
Has Iowa’s Casino Market Reached Saturation?
The developers of Cedar Crossing Casino have already requested that the IRGC dismiss a petition from competitors opposing their license application. Studies have projected annual revenues of $118 million from the casino, but there are concerns about potential harm to existing businesses and whether Iowa’s casino market has reached its capacity.
Grassley acknowledged that legislative action must be taken quickly if the moratorium is to influence the IRGC’s decision. However, he also recognized that legislative processes take time and believed that bipartisan cooperation is essential, given the divided opinions on gambling in Iowa. Therefore, while he warned against rushing, he remained optimistic that common ground could be found.
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Stiff Opposition from Established Casinos
The Cedar Crossing Casino, a project backed by the Peninsula Pacific Entertainment and the Linn County Gaming Association (LCGA), has faced resistance from the state’s existing land-based casinos. They argue that adding another casino in the region would reduce revenues at existing establishments. The same objections prevented the advancement of Cedar Rapids casino proposals in both 2014 and 2017.
However, despite this opposition, the Cedar Crossing project is largely supported by locals. Those backing the project, including Cedar Rapids Mayor Tiffany O’Donnell, have spoken of its potential to create over 1,500 jobs, contribute $80 million in new revenue to Iowa, and provide substantial funding for local charities. Developers have promised to allocate 8% of annual earnings to nonprofit organizations, well above the state-mandated 3%.
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