Proposed plans for a new land-based casino in Cedar Rapids, Iowa could become obsolete before a Feb. 6 vote from the Iowa Racing and Gaming Commission (IRGC) if a bill that would put a moratorium on new licenses for gaming facilities in Iowa gets passed early in the 2025 legislative session.
Plenty of questions exist about whether the number of commercial brick-and-mortar casinos in Iowa will expand to 20. That premise is controversial and the resolution of that controversy could come down to how quickly the Iowa legislature moves on a bill that could delay such expansion indefinitely.
The IRGC is currently expected to vote on a license for a new gaming facility in Linn County in early February. However, the Iowa legislature will convene for the year prior to that date and one member is expected to take action to circumvent such expansion.
While those facts seem to set up a competition to be the first mover on the issue, it’s not that simple. How quickly the legislature moves on the matter is just one of many moving parts to the future of gambling in Linn County.
Moratorium bill, Cedar Crossing vote imminent
There are two fixed events in the drama over whether Iowa’s second-most populous city, Cedar Rapids, will become home to a land-based casino in the near future right now. One is the looming Feb. 6 vote of the IRGC on whether to grant a license for that project, dubbed Cedar Crossing Casino and Entertainment Center.
The other is the filing of a bill to put a moratorium in place on new licenses for gaming facilities in the state. The last such stay expired on June 30, 2024.
Iowa Rep. Bobby Kaufmann has shared that he will introduce such legislation at the beginning of the 2025 session. That session begins Jan. 13, 2025.
Should lawmakers in Des Moines move quickly on that bill, that would prevent the Feb. 6 vote by the IRGC. Several Iowa gambling industry players would cheer that development.
Significant opposition to Cedar Crossing
While Linn County officials, business owners in Cedar Rapids, and union leaders in the county have voiced support for Cedar Crossing, the gambling industry at large in Iowa seems strongly opposed. Matt Kredell shared a quote for PUSA from Iowa Gaming Association President Wes Ehrecke, who spoke to the IRGC on the matter.
The math simply does not work, and a casino in Linn County only harms all of the existing casinos in eastern Iowa. It does not bring in outside revenue for our state. By shifting the tourism away from the casinos located on our state border, it makes it even more challenging for them to continue to drive out-of-state tourism into their communities and into Iowa.
Research supports Ehrecke’s position. In the license application for Cedar Crossing, a study from the Convergence Strategy Group postulated that nearby casinos would lose as much as $28 million in annual gaming revenue.
Opposition has been most robust from Riverside Casino & Golf Resort, which lies fewer than 30 miles from Cedar Rapids. According to Lacey Reeves of KCRG, Riverside has filed a petition with the IRGC to block the Feb. 6 vote.
The IRGC has yet to schedule a date for the hearing but has pledged to consider the petition. At the same time, as of the IRGC meeting on Nov. 21, the commission planned to proceed with the Feb. 6 vote.
Riverside’s petition might foreshadow courtroom proceedings in Iowa.
Riverside’s argument against Cedar Crossing
In Iowa, there is no limit on the number of physical casino licenses that the IRGC can issue. The law does require potential host counties to hold referendums to gauge resident support for such gaming.
Linn County held that referendum in 2021 and it passed. Riverside’s petition focuses on the language of that referendum.
Riverside’s petition argues that the 2021 referendum in Linn County merely authorized the continuance of the status quo at that time as far as gambling in Linn County goes instead of authorizing an expansion of that gaming. Because there was no brick-and-mortar casino in the county at that time, the referendum cannot be construed to authorize the establishment of such gambling, Riverside contends.
If the IRGC decides to proceed with the vote on Cedar Crossing’s license, that same argument could comprise the basis for a lawsuit seeking to block that vote. That would only be necessary if Kaufmann’s bill fails to pass in time, though.
Support in Des Moines for such legislation is difficult to ascertain.
Fate of Kaufman’s bill uncertain
The time crunch between Jan. 13 and Feb. 6 wouldn’t exist if Kaufmann had his way earlier. Kaufmann sponsored casino license moratorium legislation in the 2024 regular session.
The Iowa House of Representatives approved the bill but the Iowa Senate failed to bring it up for a vote. Kaufmann has not spoken about whether he feels the bill has a better chance of passage in the new term.
Because of the lack of public statements in Des Moines, it’s difficult to read whether the support for the legislation has changed, much less to the extent necessary to enact it in just 18 days. According to Tom Barton of The Gazette, Iowa Gov. Kim Reynolds has not telegraphed her sentiment on the issue.
At this point, there are many hypotheticals. The only real concrete circumstance is that the speed with which the Iowa legislature moves on Kaufmann’s bill will play a huge role in the future of a casino in Cedar Rapids.
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