Iowa Lawmakers Debate Casino Moratorium as Cedar Rapids Faces Scrutiny

Iowa lawmakers are taking another look at the idea of a casino moratorium while talks about the planned $275 million Cedar Crossing Casino in Cedar Rapids heat up. 

Grassley Calls for Consensus on Casino Moratorium as Cedar Rapids Project Hangs in Balance

During an appearance on “Iowa Press” on Iowa PBS, House Speaker Pat Grassley stressed that lawmakers, the Senate, and Governor Kim Reynolds need to agree before voting on the measure. Representative Bobby Kaufmann intends to bring in a bill to stop new casino licenses until 2029. This could throw a wrench in the works for the Cedar Rapids project if it passes before the Iowa Racing and Gaming Commission (IRGC) decides on the license in February 2025.

The Cedar Crossing Casino project developers already appealed to the IRGC to dismiss a petition from competitors opposing the license bid. While studies suggest the casino could generate $118 million annually, concerns remain over its potential to harm existing businesses and whether Iowa’s casino market has reached saturation.

Grassley recognized the need to act if the moratorium was to have an impact on the IRGC’s choice, but he pointed out that lawmaking takes time. He stressed the importance of working together across party lines, given the split among politicians on gambling matters. While warning against hurrying without consensus, Grassley remained hopeful about reaching an agreement on this hot topic.

Cedar Crossing Casino Faces Opposition Amid Promises of Economic Growth

The Cedar Crossing Casino project supported by Peninsula Pacific Entertainment and the Linn County Gaming Association (LCGA), has met opposition from existing casino operators. They have voiced worries about too many casinos in the area warning that a Cedar Rapids casino would cut into their earnings. These worries sound a lot like the reasons given when people tried and failed to open a Cedar Rapids casino in 2014 and 2017.

Despite pushback, the Cedar Crossing project enjoys widespread support from locals. Supporters, including Cedar Rapids Mayor Tiffany O’Donnell, claim the development could create more than 1,500 jobs, bring in $80 million in new money for Iowa, and provide significant funds to local charities. The developers have promised to give 8% of yearly earnings to non-profits, which is more than the 3% required by the state. This highlights the project’s potential to boost the economy and help the community.

The argument about the Cedar Crossing Casino shows the bigger issues in trying to balance growing the economy with keeping Iowa’s gambling market steady. Existing casinos worry about losing money, while people who back the new project say it could change Cedar Rapids for the better.

As the IRGC gets ready to decide in February, we still do not know what will happen with the Cedar Rapids casino. The bill proposal to pause new casino licenses for a few years makes things even more complicated.