Iowa Governor Kim Reynolds has signed legislation that places a 2-year moratorium on new casino licenses. The provision was inserted into House File 2497, a larger bill on state gambling regulations, in the final days of the 2022 session. As a result, plans for a proposed $250 million casino complex in Cedar Rapids have been put on hold until June 2024.
State Senator Roby Smith of Davenport, which has a casino, led the moratorium amendment, which the Republican-led Iowa legislature approved citing “gambling fatigue.” Typically gambling issues have been addressed by the Iowa Racing and Gaming Commission (IRGC), not the legislature. This is the third time Cedar Rapids’ casino ambitions have been thwarted. The IRCG previously denied a gaming license to Linn County in 2014 and 2017, both times citing studies indicating a Cedar Rapids casino would cannibalize revenue from Riverside Casino & Golf Course in Washington County.
Cedar Rapids Mayor Tiffany O’Donnell said she spoke with Reynolds and told her signing the bill was “a disappointing decision for me as mayor and for the city. I expressed to her my disappointment and reassured her that Cedar Rapids would still be here when the moratorium is lifted in two years. She encouraged us to stay the course as she and others pay attention to the gaming industry.”
Jonathan Swain, president of Peninsula Pacific Entertainment, Cedar Rapids’ preferred casino operator, said the bill would not impact local investors’ commitment to building a Linn County casino.
Cedar Rapids City Manager Jeff Pomeranz noted, “Jonathan Swain and the investors have a very significant financial commitment for this project. At this time, the city has every intention of supporting the project and the investors by earmarking the property for a future casino development.”
Iowa Gaming Association Chief Executive Officer Wes Ehrecke said the group, representing Iowa’s 19 state-licensed casinos, supports the moratorium.
IRCG members, however, earlier said they were “disappointed” and “surprised” by the moratorium, and believed the regulatory process kept politics out of licensing decisions. Commissioner Lance Horbach said, “My concern is if this is signed, politics is now in Iowa’s gaming industry.”
However, O’Donnell said, “The city remains committed to bringing this world-class entertainment venue to Cedar Rapids. Our citizens deserve a place to find a wide range of entertainment options and we know it will spur growth around it. It remains a priority of the city to work alongside the developer to get it done.” O’Donnell noted the IRCG panel and the gaming landscape could change. “We have to be prepared for all of it,” she said.
