A new group called "Iowans for Common Sense" is launching a campaign to halt casino expansion in Iowa. The group has created a petition demanding a moratorium on new casino developments in the state. They say that 66% of Iowans oppose casino expansion.
One expansion they're monitoring closely is the Cedar Crossing Casino in Cedar Rapids. The Linn County Gaming Association and Pennsylvania Pacific Entertainment submitted an application for a gaming license to the Iowa Racing and Gaming Commission in August. The commission plans to vote on the proposal Feb. 6, 2025.
Jonathan Swain, president of the Cedar Rapids Development Group, dismissed "Iowans for Common Sense.” He criticized their poll as not being grassroots-driven but instead organized by someone with personal connections to a major state competitor.
Swain suggested that the poll seems to be more about diminishing competition rather than truly reflecting the views of Linn County residents.
Cedar Rapids mayor Tiffany O'Donnell has pointed out that the people in Cedar Rapids have consistently supported the idea of a casino. She has urged state leaders to let the project proceed in accordance with Iowa regulations.
Gambling Expansion Moratorium Just Ended in Iowa
In 2017, state lawmakers were denied a proposal, but in 2022 they implemented a two-year pause on issuing new gaming licenses.
This moratorium ended on July 1. Shortly thereafter, State Rep. Bobby Kaufmann announced his plan to propose a new casino moratorium bill in 2025. His attempt to extend the current moratorium failed in the final hours of the 2024 legislative session.
Convergence Strategy Group conducted a study for Pennsylvania Pacific Entertainment. It revealed an impact of nearly $28 million on the state's existing casinos.
According to the study, Riverside Casino could see a drop of almost 12% drop in projected revenues, while Isle Casino Waterloo could experience a 6% decrease and Isle Casino Dubuque could lose around 4% of its current business.
The state plans to conduct its own market study, which is expected to be completed by the end of December.
Not the First Fight Over a Cedar Rapids Casino
The state commission rejected two proposals to open a casino in Cedar Rapids in 2014 and 2017. They used the same argument back then that they're using now — that market studies showed a Cedar Rapids casino would reduce profits for casinos in Waterloo, Riverside and Dubuque instead of generating new income.
Part of the reason there is such a struggle to bring a casino to Cedar Rapids is because it is the state's second-most populous city. Some see a lot of potential for a brick-and-mortar casino there.
However, it may continue without one if the "Iowans for Common Sense" movement prevails.
Would Another Casino Ban End Online Casino Talks, Too?
Maybe the study results that are expected in December will clear up some of the uncertainty on whether a new ban on physical casinos in Iowa would help or harm the regulation of online casinos in the state.
The previous ban also stopped any talks about online gambling, and the new one probably would do the same. However, keeping the number of players in the state's casino business low might eventually benefit online gambling efforts.
