The Iowa House of Representatives passed a bill to stop the state from issuing new casino licenses for five years. House Bill 144, originally known as House Study Bill 80, passed with a strong 68-31 vote.
Rep. Bobby Kaufmann (R-Wilton) introduced this bill, which would prevent the Iowa Racing and Gaming Commission (IRGC) from granting new gaming permits until July 1, 2030. If Kaufmann’s bill becomes law, it would take effect retroactively from January 1, 2025.
That’s significant because of the plan to open a new casino in Cedar Rapids.
If the Senate approves HB 144 and the governor signs it, the IRGC’s scheduled vote on February 6 to grant a casino license near downtown Cedar Rapids would be disrupted, potentially canceling the casino's permit even if approved.
Why Are Some Opposed to a Cedar Rapids Casino?
Supporters of the legislation feared that a new casino would take business away from existing casinos in the area, along with the nonprofits that rely on them, potentially leading to job losses and business closures. They argue that pausing the issuance of new casino licenses would help protect these jobs.
Studies that the IRGC commissioned found that more than half of Cedar Crossing's projected revenue would come from money currently going to existing Iowa casinos. However, the Cedar Rapids project is expected to add $60 million in new commercial gambling revenue statewide by 2028.
Representative Kaufmann argues that the decision to grant licenses should rest with the Legislature. He is particularly worried about job losses at current casinos since his district is between the Riverside and Quad Cities casinos.
A group named "Iowans for Common Sense" started a campaign to stop casino expansion in Iowa. They have initiated a petition calling for a pause on new casino developments in the state, claiming that 66% of Iowans are against further expansion.
Casinos in Iowa Experiencing Attendance Decline
Another factor driving the push for a moratorium on new licenses may be the decline in attendance at Iowa's casinos. State gaming data shows that attendance and revenue at Iowa's 19 state-regulated casinos have dropped for the second consecutive year.
According to the state's nonpartisan Legislative Services Agency, casino revenue dropped to $1.72 billion in fiscal year 2024, down from $1.76 billion in 2023. This is a decrease from the record $1.77 billion in revenue the casinos, excluding sports betting, achieved in 2022.
What About Online Casinos in Iowa?
Online sports betting is legal in Iowa, but online casinos are not.
Although only seven states currently permit legal online casinos, more might soon do the same as they recognize the financial benefits.
The moratorium in Iowa could stop discussions about online gambling. However, limiting the number of participants in the state's casino industry might ultimately help online gambling efforts.
What’s Next for Iowa Casino Bill?
Lawmakers in the Senate are quickly moving to allow debate on the measure, along with advancing casino moratorium legislation.
This week, a subcommittee and the Senate Local Government Committee approved a companion bill, Senate Study Bill 1069, even though it faced opposition from officials in Cedar Rapids and Linn County, as well as trade organization advocates.
If the Senate approves the bill, it will go to Governor Kim Reynolds for a final decision. The Iowa Capital Dispatch reported that although the governor hasn't said whether she supports a moratorium, Kaufmann told reporters he is confident she would consider signing it if it passes.
“I’ll just say that I have a personal high level of confidence that the governor would consider signing it if we get it done,” Kaufmann said.
