Iowa Casino Challenges Cedar Rapids Resort Bid, Cites Legal Concerns

Iowa Casino Challenges Cedar Rapids Resort Bid, Cites Legal Concerns

By Michael Thompson

November 21, 2024 at 06:35 AM

A casino operator in Iowa has petitioned the state's gaming regulator to dismiss Cedar Rapids' recent casino application, claiming the city lacks proper gambling authorization.

Riverside Casino & Golf Resort argues that Linn County's 2021 gaming referendum didn't authorize new gambling operations but merely extended provisions from a 2013 referendum. Since no gambling currently exists in Linn County, Riverside contends there were no games to "continue" operating.

Petition seeking Iowa gambling license clarification

Petition seeking Iowa gambling license clarification

The proposed $275 million Cedar Crossing Casino project, backed by local businesspeople and Peninsula Pacific Entertainment, would include:

  • 700 slot machines
  • 22 table games
  • Sports betting facilities
  • 1,500-seat concert hall
  • Multiple restaurants and bars
  • STEM lab
  • 500+ full-time jobs

Impact studies suggest the new casino would:

  • Increase Iowa's annual gaming revenue by $80 million
  • Draw 26% of revenue from existing casinos
  • Reduce Riverside Casino's revenue by 11.6%

Cedar Rapids Mayor Tiffany O'Donnell criticized the opposition, stating that existing casinos are trying to "unfairly influence" the Iowa Racing and Gaming Commission (IRGC). The commission is scheduled to vote on the Cedar Crossing Casino proposal on February 6.

State lawmakers are expected to introduce legislation in January to impose a moratorium on new gaming licenses. If the IRGC approves Cedar Rapids' application before any new law takes effect, the project would be grandfathered in.

The Cedar Rapids Development Group has partnered with the Linn County Gaming Association, promising to direct 8% of casino revenues to charitable programs, exceeding the state's 3% requirement.

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