Iowa casino moratorium bill fails to advance in Senate committee

February 5, 2025

Iowa casino moratorium bill fails to advance in Senate committee

A proposed five-year moratorium on new casino licenses in Iowa has failed to sail through in the state Senate, allowing regulators to decide on a new casino proposal in Cedar Rapids.

The moratorium bill, House File 144, was passed by the Iowa House last week with a 68-31 vote. Despite this, it stalled in the Senate State Government Committee due to a lack of support from Senate Republicans. Senator Ken Rozenboom, the committee chair, announced on 4 February 2025 that he would not bring the bill forward, effectively killing the proposal for this legislative session.

“I am no fan of gambling, and my decision not to advance this legislation should not be considered in support of casino expansion,” Rozenboom said. He added that the bill lacked Republican support to move through the Senate process.

Iowa casino license moratorium debate

The bill sought to prevent the Iowa Racing and Gaming Commission (IRGC) from issuing new casino licenses until 2030. It also proposed restrictions on future casino applications, including a rule barring licenses if they were projected to reduce revenue at existing casinos by more than 10%.

The moratorium aimed to protect existing casinos, notably Riverside Casino and Isle Casino Hotel Waterloo, from losing revenue to a potential Cedar Rapids casino. A study indicated that over half of Cedar Crossing Casino’s projected revenue would come from existing gambling operations. However, it would generate $60 million in new commercial gambling revenue by 2028.

During a subcommittee hearing, Patty Koller, executive director of the Washington County Riverboat Foundation, accused Cedar Rapids of acting unfairly. “Bullies. The second biggest city in Iowa is a big bully,” she said. “Every few years, our livelihood is threatened. It needs to stop, and only you, Senators, can do it.”

Cedar Rapids Mayor Tiffany O’Donnell rejected this claim, arguing that her city had been unfairly excluded from the casino market. She said, “It was interesting to be called a bully by one of our neighbouring cities. I said that’s ironic because I would use that word too, but certainly not about Cedar Rapids”.

She added, “We got our shot. It’s what we asked for; it’s what a lot of people have worked really hard over the last couple of weeks to get, and we are there.”

Iowa commission to decide casino fate

With the moratorium bill dead, the focus now shifts to the Iowa Racing and Gaming Commission. On Thursday, it is set to decide whether to grant a license for the proposed $275 million Cedar Crossing Casino and Entertainment Center.

“The next hurdle is the Iowa Racing and Gaming Commission, so our focus remains on that now,” O’Donnell said.

“I’m really hopeful that the commission will see the overall economic development opportunity we have with this project. … It’s a $275 million entertainment venue that will bring new life to a part of Cedar Rapids downtown that was decimated in the floods of 2008.”

IRGC Administrator Tina Eick confirmed that the meeting will proceed as planned. She stated, “No changes have been made or are planned to the agenda outside of a room change.” The commission’s decision will determine whether Cedar Rapids finally gets a casino after previous denials in 2014 and 2017.

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