The Cedar Rapids Casino battle is not over yet.
Another big legal showdown is set to take place on May 7 in Mount Pleasant.
The spotlight will be back on the proposed Cedar Crossing Casino & Entertainment Center in Cedar Rapids. This hearing will be a key moment in a debate that's been brewing with Riverside Casino & Golf Resort.
At the heart of the issue? The details of a 2021 ballot that opened the door to legal gambling in Linn County. The outcome could shape the future of gaming in the area.
Mount Pleasant To Host Pivotal Court Date
The upcoming hearing will see attorneys for both the Cedar Crossing project in Cedar Rapids, and Riverside Casino & Golf Resort, present their arguments.
The Washington County-based Riverside opposes the new Cedar Rapids facility, claiming the state-issued license it received was invalidated by issues with the ballot language approved by voters in 2021.
Riverside claims the ballot language misled voters by implying that gambling was already underway in Linn County, even though no casino had been licensed or built at the time, and argues that these defects warrant preclusion of the license.
The Stakes for Cedar Rapids
The Cedar Rapids camp, backed by the Linn County Gaming Association, is pushing back against Riverside’s claims, labeling them "untimely" and "legally baseless." They argue that Riverside is motivated by competitive interests, given that a new casino in Cedar Rapids could negatively impact Riverside's revenue by drawing patrons away.
Cedar Rapids supporters emphasize Riverside's lack of operations in Linn County and question its legal standing to challenge decisions made in a neighboring region. They insist that considerable time has elapsed since the 2021 referendum, during which these issues could have been raised.
All of this is happening on the heels of an unfavorable revenue report on Iowa casinos. This is also not the first legal battle the project has faced.
A Decade-Long Pursuit Nears Conclusion
After a decade of efforts by Cedar Rapids casino advocates to secure a license, the Iowa Racing and Gaming Commission approved the project on February 6 with a 4-1 vote. However, Riverside swiftly challenged the decision in court, attempting to stay the issuance of the license.
Although a judge recently declined to halt the issuance of the license, the court did acknowledge Riverside's reasonable likelihood of success in challenging the 2021 referendum. As legal proceedings continue, construction plans for the $275 million Cedar Crossing facility hang in the balance.
Vision for the Cedar Rapids Casino
The planned Cedar Crossing Casino aims to bring a comprehensive entertainment experience to northwest Cedar Rapids. Proposed features include 700 slot machines, 22 game tables, multiple dining options, a 1,500-person entertainment venue, an arts and cultural center, and a STEM lab for children.
Supporters of the planned Cedar Crossing Casino & Entertainment Center started the project with a groundbreaking ceremony on February 7. Even though construction hasn't begun, the Cedar Rapids City Council has approved a rezoning for the area.
According to a report by The Gazette, casino developers say they've already spent about $20 million on design, planning, and licensing fees. However, 8th Judicial District Judge Michael Schilling, who is reviewing a challenge to the casino's license, warned that he will not consider the work done so far in his decision.
“The court notes that the Respondents’ decision to move forward, to begin and continue construction in the face of a lawsuit, is not a factor for the court to consider when evaluating the merits of the Petitioners’ claims,” Schilling wrote. “Nor is a decision to forge ahead with construction a defense to a defective ballot measure.”
As both sides prepare for their day in court, supporters of the Cedar Rapids casino are optimistic about overcoming this legal hurdle, hoping for a favorable decision that will allow the project's vision to come to life.