Casinos in Iowa are not rare. There are 19 state-licensed casinos generating revenue around the state and four Native American casinos. But lawmakers are trying to keep a new casino from being built in one of The Hawkeye State's biggest cities.
Legislators are working hard and fast to approve a bill that would block a proposed $275 million casino development in Cedar Rapids.
House Study Bill 80 would retroactively enact a five-year moratorium on issuing new casino licenses in the state from Jan. 1, 2025, through June 30, 2030.
This initiative coincides with the Iowa Racing and Gaming Commission nearing a decision on approving a casino license for Linn County, home to Cedar Rapids, at their February 6 meeting.
Why The Pushback For a Cedar Rapids Casino?
Before the vote, many who supported the legislation were worried that a new casino would cannibalize the market and hurt existing casinos in the area.
"Adding a new casino in Eastern Iowa will have a significant negative impact on the casinos nearest to the proposed casino as well as the non-profits that rely on them," Mary Earnhardt the President and CEO of the Iowa Gaming Association said. "Simply stated, a moratorium on casino licenses will prevent job losses and business closure."
Representative Bobby Kaufmann introduced the moratorium because he believes it's up to the Legislature to make this decision. He, too, is worried about jobs at existing casinos being at risk, since his district is located between casinos in Riverside and the Quad Cities.
Study Says Other Casinos in Iowa Would Suffer
Earnhardt referred to recent studies by state regulators showing that a Cedar Rapids casino would take revenue away from existing casinos.
A study by Marquette Advisors in Minneapolis predicts that a casino in Cedar Rapids would increase the state's commercial gaming revenue by $64 million, reaching about $118 million in yearly revenue by 2029. However, much of that money—about $68 million—would come from other casinos in Iowa, including nearly $34 million from Riverside Casino.
In addition to establishing the five-year moratorium, the bill outlines criteria that the Iowa Gaming and Racing Commission must evaluate before issuing a new license.
What’s Next For House Study Bill 80?
The bill moved quickly through the House Ways & Means Committee, passing with a 17-8 vote It will now go to the full House for discussion and a vote on Thursday.
If lawmakers fail, and the Linn County license is approved, the casino would be built near downtown Cedar Rapids and would become Iowa's 20th state-licensed casino.
Representative Kaufmann — who chairs the House Ways and Means Committee — said he plans to get the legislation passed before state gambling regulators decide on the Cedar Rapids casino license.
Although traditional casinos are found throughout the state, online casinos are not legal in Iowa. Although, as the popularity of sweepstakes casinos grows, they are an option for people there.
But it appears the support to get this casino moratorium bill passed is there, and the chances of a casino being built in Cedar Rapids appear, at least at the moment, to be slim.
