Casino moratorium: Iowa House halts Cedar Crossing Casino’s million-dollar dreams

Sankunni K January 31, 2025
Casino moratorium: Iowa House halts Cedar Crossing Casino’s million-dollar dreams

The Iowa House has passed House File 144, imposing a moratorium on new gambling licenses from 1 January 2025 to 30 June 2030. This decision, which passed by a vote of 68-31-1, is a major blow to proposed projects like the Cedar Crossing Casino in Cedar Rapids.

Key details of the moratorium

The move is aimed at preventing market oversaturation and protect existing casinos. As a result, no new licenses will be issued for over five years.

The $275 million Cedar Crossing Casino project in Cedar Rapids is effectively halted if the Senate passes this bill.

The primary concern is the economic impact on existing casinos. According to a study by Marquette Advisors, new casinos could significantly affect revenue for current establishments:

  • Riverside Casino & Golf Resort: Projected 26 percent revenue drop, equating to a $34 million loss by 2029.
  • Meskwaki Bingo Casino Hotel: Estimated revenue decline of $14.1 million.
  • Isle Casino, Waterloo: Potential $8.8 million loss.

Proponents of the moratorium argue that protecting current businesses and employees outweighs the economic benefits of new casinos.

Controversy behind Cedar Rapids Casino

Supporters of the Cedar Crossing Casino believe the project could add $60 million in statewide gambling revenue annually.

“Based on all the subcommittee meetings, we knew this was going to go the way it went,” Kim Pang, vice president of development for Peninsula Pacific Entertainment (P2E), developer of the proposed Cedar Crossing Casino & Entertainment Center told The Gazette.

“We continue to believe that we should let the Iowa Racing and Gaming Commission make a decision, and we’ll see what happens next week with the Senate.”

However, opponents like Representative Bobby Kaufmann (featured in the image above) stress the risks.

The benefit does not outweigh people losing their jobs, in my personal opinion,” Kaufmann said.

What happens next?

The bill now moves to the Iowa Senate for consideration. If approved before the Iowa Racing and Gaming Commission’s next meeting on 6 February 2024, it will block any pending applications, including Cedar Rapids’ casino proposal.

This moratorium reflects a larger debate about gambling’s role in Iowa:

  • For economic growth: New projects like Cedar Rapids’ casino could create jobs and generate revenue.
  • For sustainability: Protecting existing businesses and jobs is crucial to avoid market cannibalisation.

The decision ultimately lies with the Senate, shaping the future of Iowa’s gambling landscape.

Subscribe HERE to SiGMA’s Top 10 News countdown and SiGMA’s weekly newsletter to stay up to date with all the latest iGaming News from the biggest iGaming community in the world and benefit from subscriber-only offers.

Recommended for you