Two market studies examining the potential impact of a Cedar Rapids casino suggest Iowa's gaming market has reached saturation. The studies were commissioned by the Iowa Racing and Gaming Commission (IRGC) to assess the viability of the proposed Cedar Crossing Casino project.

Key Findings:

• Marquette Advisors projects $118 million in first-year gross gaming revenue (GGR)
• The Innovation Group estimates $116.5 million in first-year GGR
• 60% of revenue would come from existing Iowa casinos according to Marquette
• The Innovation Group projects 47.8% cannibalization of current casino revenue

Market Challenges:

• New competition from eastern Nebraska and Illinois commercial casinos
• Additional competition from Wisconsin tribal gaming
• Declining capture rate of Iowa gamblers (projected to fall from 72% to 59%)
• 63% of Iowa casino revenue comes from within 45-minute drive time

Impact on Existing Casinos:

• Riverside Casino & Golf Resort would face the largest impact
• Marquette projects 30% revenue decline for Riverside
• The Innovation Group estimates 12% revenue loss for Riverside

The IRGC will vote on February 6 regarding the proposed Cedar Rapids casino, which would be Iowa's 20th gaming facility. The project, backed by local businesspeople and city officials, would be located on 25 acres of city-owned land west of the Cedar River.

Both studies indicate significant market saturation and potential negative impacts on existing operations, particularly given the mature nature of Iowa's gaming industry and increasing regional competition.

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