Iowa Racing and Gaming Commission Approves License for Cedar Rapids Casino

A rendering of the proposed Cedar Crossing Casino, which after a long and arduous fight, got the green light to move forward with licensing and development plans. (Image: courtesy of Peninsula Pacific Entertainment)

The Iowa Racing and Gaming Commission (IRGC) voted 4-1 in favor of approving a gaming license in Linn County on Tuesday, paving the way for the proposed Cedar Crossing Casino & Entertainment Center in northwest Cedar Rapids.

The vote follows an expediated attempt by some state legislators to put a new casino moratorium in place for Iowa, an effort that ultimately failed after the bill stalled in a Senate committee on Tuesday.

Commission Chair Pleased IRGC ‘Allowed to Regulate’

Daryl Olsen, chair of the IRGC, thanked the Iowa legislature for giving the commission the chance to make the determination on a Cedar Rapids casino.

“I’d like to thank the Iowa legislators for trusting this commission, for allowing the process to proceed as I believe it was intended,” Olsen said on Thursday. “This commission, all along, I said, will regulate it, and we do not legislate. But today, we’re allowed to regulate.”

The one dissenting vote came from commission member Alan Ostergren. A lawyer by trade, Ostergren’s dissent came down to two of the same issues that opponents have cited throughout Cedar Rapids’ bid for a casino license.

First, Ostergren agreed with those in the Iowa gaming industry who believe a new casino will primarily cannibalize revenues from existing venues. But Ostergren also cited a legal argument that is likely to produce additional challenges to the commission’s decision going forward.

Legal Challenge Focuses on Referendum Language

The Riverside Casino & Golf Resort and the Wahington County Riverboat Foundation filed a petition for declaratory order in November, claiming that a 2021 ballot referendum in Linn County that sought to allow cities in the county – including Cedar Rapids – to pursue casino expansion was improperly worded. The referendum language said gambling “may continue” in Linn County; opponents argue that since gambling never began there, the referendum is invalid. 

The IRGC denied that petition last week. Olsen said that consultations with legal counsel and the Iowa Attorney General’s Office led “a majority of the commissioners” to believe they had the authority to grant a license to the Cedar Crossing project based on the 2021 referendum. 

However, that ruling could still be challenged in Polk County District Court. Dan Kehl, CEO of Elite Casino Resorts – which owns Riverside Casino – suggested that court action will be coming.

“We appreciate the time and effort the commission and staff put into this, but we do have questions and concerns as we still believe the referendum requirement has not been met and are reviewing our next best steps,” Kehl said in a statement.

Cedar Rapids Mayor Tiffany O’Donnell wasn’t surprised to hear that opponents weren’t yet giving up the fight despite the IRGC granting a license to the Cedar Crossing project. 

“We’ve expected more legal action after this,” O’Donnell said Thursday. “They’ve done this since the beginning of this license application. So I’m more focused on moving forward.”

The proposed casino is being developed by Peninsula Pacific Entertainment in partnership with the nonprofit Linn County Gaming Association. The proposal calls for a $275 million complex that would include a casino, three live entertainment venues, and a cultural center.