The Iowa Senate will not consider a proposed five-year moratorium on new casinos in Iowa, reviving plans to build one in Cedar Rapids.
Senator Ken Rozenboom, chairman of the Senate State Government Committee, said: “The bill does not have enough support from Senate Republicans to advance all the way through the process.”
With no moratorium in place, the Iowa Racing and Gaming Commission is expected to make a decision today on granting a license for a Cedar Rapids casino.
Why Did House File 144 Stall in the Iowa Senate?
Last week, the Iowa House passed House File 144, which aims to impose a five-year halt on new casino licenses. It also seeks to introduce new criteria for the Iowa Racing and Gaming Commission to use when evaluating future license applications.
Additionally, the bill would prevent the commission from issuing licenses for casinos predicted to decrease the revenue of an existing Iowa casino by more than 10%. It would also prohibit new applications from counties where a casino proposal was rejected within the past eight years.
Despite a Senate subcommittee advancing House File 144 during their meeting on Tuesday, Rozenboom opened the State Government Committee session by explaining why he chose not to move forward with the bill.
"I am not in favor of gambling, and my choice not to progress with this legislation should not be seen as support for expanding casinos," Rozenboom stated. "Based on my discussions, Senate Republicans did not have enough backing for this bill to pass through the Senate entirely. To prioritize other crucial issues for Iowans, I do not plan to revisit this legislation for the rest of the session."
Will There Be a Casino in Cedar Rapids?
The decision revives the Cedar Rapids casino plan.
Today, the Iowa Racing and Gaming Commission will decide whether to issue a state license for the "Cedar Crossing" casino project in Cedar Rapids.
Casino moratorium supporters in the House hoped the Senate would quickly pass the bill and the governor would sign it into law before the commission's meeting. The bill has a retroactive clause, which means if it passes later in the year, it could nullify the commission's approval of the Cedar Rapids casino project.
Mayor Wants Casino To Help Revitalize Cedar Rapids
Cedar Rapids Mayor Tiffany O'Donnell urged legislators to resist the casino industry's influence and let the Racing and Gaming Commission determine whether her city should receive a casino license. She posted a video on her Facebook page not long after the bill failed.
"It's a $275 million economic development project that includes a casino and so much more," O'Donnell told Radio Iowa. "This is one of the most exciting opportunities we can offer them for relief."
O'Donnell described the casino as part of the city's "revival" from the devastating floods that impacted many Cedar Rapids residents in 2008.
The Iowa Racing and Gaming Commission rejected casino proposals for Cedar Rapids in 2014 and again 2017. Linn County voters approved another gambling referendum in 2021, setting the stage for today’s casino application discussion.
Can Lawmakers Reconsider House File 144?
The Senate State Government Committee has decided not to consider the bill for now, but this doesn't mean the bill is completely dead.
The commission's actions on Thursday may not be the final decision. During an Iowa Press taping on Friday, Senate President Amy Sinclair mentioned that there isn't much pressure in the Senate to pass the measure before the Racing and Gaming Commission meets today, mainly because the bill includes a retroactive start date of January 1, 2025.
Sinclair called it “An Iowa issue.” However, Rozenboom told reporters that he doesn't expect discussions on a moratorium to resume later in the 2025 session.
