Iowa's casino scene is facing some uncertainty as new bills have been introduced in the state legislature, targeting a major new development.
The Cedar Crossing Casino, a project in the works for Cedar Rapids, may be stopped even after receiving an official gaming license from the Iowa Racing and Gaming Commission and beginning construction the very next day.
However two companion bills were introduced in the Iowa House and Senate to prohibit casinos from being developed on urban renewal sites.
A subcommittee hearing on the Senate’s version of this new bill to ban casino development is scheduled for today at 11 a.m.
Lawmakers Take Action Against Casino Development
State Rep. Megan Jones from Clay County and State Sen. Scott Webster from Bettendorf introduced bills aimed at banning the Cedar Crossing Casino project.
These pieces of legislation seek to prevent urban renewal projects from hosting new gaming facilities if a license is issued on or after January 1, 2025.
This move comes even after the Iowa Racing & Gaming Commission (IRGC) gave the project the green light by awarding a gaming license on February 6. The approval followed the Iowa House's passage of a bill imposing a five-year moratorium on casino development, but the Senate chose not to consider it.
Cedar Rapids Casino Plans Face Challenges
The Cedar Rapids City Council had previously approved a deal in December to move forward with the casino, using the Urban Renewal Act to plan its development between F and I Avenue NW and 1st and 5th Streets NW. This decision marked a significant step forward, as Cedar Rapids had been denied gaming licenses in 2014 and 2017.
Despite the official approval, the Cedar Crossing Casino development is under legal scrutiny from Riverside Casino and the Washington County Riverboat Foundation.
These entities argue that the 2021 ballot measure, which approved gaming in Linn County, may have been misleading, as it referenced the continuation of gaming when none existed at the time. Although the Iowa Racing & Gaming Commission dismissed these concerns, the matter is still under review by a judge, with a hearing scheduled for Friday.
Construction Begins Amidst Legal and Legislative Hurdles
In a show of confidence, city leaders and developers began construction the same week the gaming license was awarded, breaking ground at the Cedar Rapids site.
Cedar Rapids Mayor Tiffany O'Donnell has described the casino as a key component of the city's "revival" following the devastating floods that affected many residents in 2008. She also stated that she is not surprised further legal action is being taken.
After the IRGC approved a gaming license for Linn County, opponents initiated legal action to halt the casino's construction. Mayor O'Donnell stated that these challenges were anticipated and reaffirmed her commitment to moving the project forward.
"We expected more legal action following the approval—it doesn't surprise us," O'Donnell remarked. "They've been opposing this since the beginning of the license application process. My focus is on moving forward."
However, with new legislative efforts poised to block the casino's completion, the future of casinos in Iowa—particularly at the Cedar Crossing site—hangs in the balance. As the situation unfolds, stakeholders and locals are closely monitoring legislative and judicial actions that could profoundly impact gaming and development in the state.
