Cedar Rapids Casino Expansion Faces Opposition

By Jerry Smith Staff Writer Updated: 11/29/2024

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Cedar Rapids Casino

After a two-year moratorium on gambling expansion, Cedar Rapids can finally begin planning to build a land-based casino. However, there are still a few obstacles, as some Iowa citizens oppose these plans and demand the moratorium be renewed. That is on top of representatives making plans to legalize online gambling.

History of Iowa Gambling

Iowa has had a long history with gambling, being the first state to legalize riverboat casinos in the 19th century. In 1972, Governor Robert D. Ray removed the constitutional ban in September, and gambling was legalized in November. The state is also among the first to open land-based casinos, with more than 20 currently open.

However, in 2022, Governor Kim Reynolds signed an amendment to House File 2497 that imposed a moratorium on casino expansion. That was due to concerns that the market would be saturated and casinos would begin cannibalizing their profits. Now that it has expired, the county is planning to apply for a license.

The Cedar Rapids Casino

Following the moratorium’s end, the Cedar Rapids city council began preparing for a casino. While Linn County has had its license application rejected twice, in 2014 and 2017, there is hope that the third time will be the charm.

This time, the Linn County Gaming Association is making a joint application alongside Peninsula Pacific Entertainment, the planned operator. Even the location is prepared, between F and I Avenue NW and First and Fifth Streets NW.

We are thankful for the opportunity to submit our application for a world-class gaming facility that Linn County has long deserved.

-Kim Pang, Vice President of Development with Peninsula Pacific Entertainment

The city council is also working with the Iowa Racing and Gaming Commission to ensure it meets all requirements for a license. If a moratorium isn’t passed, the commission will decide on February 6th, 2025. Even local voters approved of a casino twice in referendums, so all hopes lie with the IRGC.

Casino Opponents

However, some groups oppose the plans for a new casino. Iowans for Common Sense opposes gambling expansion and has even launched a campaign for a petition to bring back the moratorium. One of their key members is Alex Dixon, CEO and President of Q Casino and Resort, who claims this will impact the revenue of other casinos.

Meanwhile, Representative Bobby Kaufmann wants to reintroduce a bill in 2025 to establish a new moratorium. His last attempt in 2024 added it as an amendment to a Department of Revenue bill, which passed the House but was rejected in the Senate. Iowa legislature’s first regular session in 2025 will be on January 13th, so passing the bill in time may be difficult.

Future and Online Gambling

There is still time before the next regular session and the license decision, so all the parties are making plans. However, the decision could also impact the expansion of online gambling. Kaufmann supported the online sports betting bill and now hopes the House approves a bill for online casinos.

Part of the reason for the moratorium is that many of the land-based casinos can’t agree on expanding online casinos. Adding another one may further upset those plans, although the moratorium may make them less receptive to online casinos. We will keep you updated on any new developments.