Iowa Lawmakers Fast-Track Bill to Block Cedar Rapids Casino Plan

^{Legislators at the Iowa capitol in Des Moines are split, with some wanting to help the community in Cedar Rapids, and others wanting to limit competition for their current casino constituents. (Image: Dan Michalski / Casinos.com)}

The Iowa House Ways and Means Committee passed a five-year moratorium on new casinos in the state on Monday, moving the ban closer to getting a full vote and preventing a potential casino development in Cedar Rapids.

Legislators in Iowa are hoping to pass their moratorium before the Iowa Racing and Gaming Commission (IRGC) can grant a license for a Linn County casino, a decision that would likely come at a Feb. 6 meeting.

Kaufmann Wants IRGC to Protect Existing Casinos

The legislation, known as House Study Bill 80, would enact a five-year moratorium that would retroactively apply from Jan. 1, 2025 through June 30, 2030. During that period, the state would be prohibited from issuing any new casino licenses.

The bill also prevents the IRGC from issuing licenses beyond that date if they would “negatively impact an existing licensee” located in a rural county or a county touching the state border. Additionally, if an applicant is denied by the IRGC, other applicants in the same county can’t apply for a license for eight years.

“It’s a heavily, heavily regulated industry, and I believe decisions of this magnitude should be more compelled to consider things such as cannibalism and how it affects those who invest hundreds of millions of dollars,” State Rep. Bobby Kaufmann (R-Wilton) said, via The Gazette.

Notably, Kaufmann’s district includes Riverside Casino & Golf Resort, one of the closest competitors that could be negatively impacted by a casino in Cedar Rapids. Kauffman also chairs the Ways and Means Committee, which passed the bill 17-8 on Monday evening.

Supporters: Cedar Rapids Needs Economic Development 

But while multiple economic studies have shown that at least some of the revenue from a Cedar Rapids casino would be cannibalized from other casinos, supporters of the project don’t see that as a problem. Developers Peninsula Pacific Entertainment and the Linn County Gaming Association, who are partnering on what is known as the Cedar Crossing Casino & Entertainment Center, say the local community needs the benefits that a casino would bring.

“Our community continues to fight back from flooding and the derecho,” Cedar Rapids City Council member Ann Poe told a subcommittee during an afternoon meeting before the evening vote. “So I cannot understate how important the economic impact from this casino would be on continuing to help us and the state in that recovery.” 

Other representatives agreed for the need for regulation, but argued that it already exists. Rep. Sami Scheetz (D-Cedar Rapids) pointed out that the IRGC had already rejected licenses in Cedar Rapids in 2014 and 2017 because it considered cannibalization and other factors when making licensing determinations.

“I understand it is not a complete free market. It’s a regulated market,” Scheetz said. “But also, the state government, specifically the Legislature, should not be putting its foot down to the level that it is.”

The Cedar Crossing Casino & Entertainment Center has been proposed as a $275 million development. The complex would include three live entertainment venues geared towards hosting sporting events, comedy shows, trade shows, and musical acts, as well as a dedicated arts and cultural center that could be entered by families without walking through the casino.