Cedar Rapids is making another push for a casino, aiming to capitalize on developments in Iowa’s gaming market since the city’s last proposal in 2017. A new market study presented on Monday suggests that a casino in Linn County could boost the state’s gaming revenues and attract over a million visitors annually.
The Convergence Strategy Group conducted the study, forecasting that the proposed Cedar Crossing Casino and Entertainment Center could add more than $80 million in new taxable revenue for Iowa. The study also projects a shift of nearly $28 million in gaming revenue from existing casinos to the new facility. This figure represents an increase from earlier estimates of $51 million in new taxable revenues.
The study utilized advanced cellphone tracking technology to assess casino visitor patterns, providing a more nuanced view of potential market impacts compared to previous studies.
Suzanne Leckert of Convergence Strategy Group emphasized the improvements in data accuracy. “Before models were calibrated to visitation and revenue counts the state reports every month for every casino in the market. Now, we have locations of where those people are coming from and more accurately understand market dynamics and a facility’s penetration of an area,” she said, as per The Gazette.
The proposed $275 million Cedar Crossing project, spearheaded by Peninsula Pacific Entertainment (P2E) and the Linn County Gaming Association, plans to feature a casino with 700 slot machines and 22 table games, alongside a diverse array of entertainment options, including restaurants, bars, and a STEM lab. The development is slated for the former Cooper’s Mill site on Cedar Rapids’ northwest side.
Cedar Rapids Mayor Tiffany O’Donnell supports the proposal, asserting that it aligns with the community’s desire for a vibrant entertainment hub. “Cedar Crossing will be a compelling reason to stay and build lives and futures here for the northwest side of the Cedar River, it will serve as an anchor for much-needed redevelopment, leading life into an area that has long awaited its renaissance,” she said.
The casino is expected to create over 1,000 construction jobs and 524 full-time positions, with additional benefits including enhanced local spending and tax revenues.
Despite the optimism, there are concerns about the potential for market cannibalization, where new casinos might divert revenue from existing ones. The study predicts that the new casino could impact revenues at nearby facilities, such as Riverside Casino, which may see an 11.6 percent decrease. However, proponents argue that the overall increase in state revenue and the boost to local economies will outweigh these concerns.
The Iowa Racing and Gaming Commission is set to review the casino proposal in February 2025, following a separate market study commissioned by the Commission, due at the end of December. The findings from this study will play a critical role in determining the future of the Cedar Rapids casino bid.
The new casino also aims to contribute to local charities, with P2E committing to distribute 8 percent of net adjusted gross revenue, exceeding the state’s minimum requirement. The proposal includes a range of community-focused amenities, such as a STEM lab and an Arts and Cultural Center, designed to engage and benefit the local population.
Original article: https://www.yogonet.com/international/noticias/2024/09/18/79009-iowa-cedar-rapids-eyes-80-million-gaming-revenue-boost-with-new-casino-proposal
