Iowa lawmakers are moving forward with a five-year moratorium on new casino licenses, a move that could derail plans for a $275 million casino in Cedar Rapids. The legislation, which has already passed the House and is under review in the Senate, would retroactively ban new licenses as of January 1, potentially nullifying any decision the Iowa Racing and Gaming Commission (IRGC) makes at its upcoming meeting.
Senate President Amy Sinclair explained that the bill’s retroactive provision allows lawmakers more time to examine its implications without the pressure of acting before the IRGC’s decision. She stated that the issue extends beyond party lines, raising questions about the role of regulatory agencies and the overall saturation of casinos in the state.
“The question is, are there enough casinos in the state or are there not? The question is, should we allow those established boards and commissions to do their jobs that they were created to do or do we not?” Sinclair said on Iowa PBS.
The bill represents Iowa’s second casino moratorium in five years. If enacted, it would prohibit the IRGC from issuing new licenses that would negatively impact existing casinos in rural or border counties. Additionally, new casinos would be barred if they threatened to reduce another casino’s adjusted gross revenue by more than 10 percent or affect community grants funded by casino profits.
The Cedar Rapids project has been years in the making, but market studies suggest it could pull as much as $68 million in annual revenue from existing Iowa casinos. Critics, including Rep. Heather Hora, argue this could harm communities that rely on casino-generated funding, such as her district, home to the Riverside Casino.
“If there were a new casino in Cedar Rapids, it would strain existing operations, jeopardize jobs, and reduce vital funding for communities that rely on casino foundation grants,” Hora stated.
Cedar Rapids officials and business leaders argue that their city deserves the same economic opportunities as other communities with casinos. Mayor Tiffany O’Donnell has urged lawmakers to let the IRGC make the decision rather than imposing a blanket moratorium.
“They’re asked and tasked with ensuring that Iowa’s gaming industry is competitive, it’s sustainable, and it’s beneficial,” O’Donnell said in a Senate subcommittee hearing. “Yet we find ourselves in this debate today, here in front of you, not because of sound policy, but because some want to change the rules mid-game to protect their own interests.”
The proposed Cedar Rapids casino is projected to generate $43 million in tax revenue and contribute at least 8 percent of its adjusted gross revenue to nonprofit organizations, more than double the state-mandated minimum. Proponents say it would create jobs, boost tourism, and strengthen the local economy.
Original article: https://www.yogonet.com/international/news/2025/02/04/94075-iowa-casino-moratorium-under-review-in-senate-putting-cedar-rapids-project-in-jeopardy-
