The Iowa Racing and Gaming Commission (IRGC) recently decided not to take action on a Cedar Rapids investor group‘s application for a Linn County gaming license.
Commissioners said they wanted to see if Governor Kim Reynolds will sign legislation allowing a 2-year moratorium on accepting new license applications. The measure would place a ban on new casino licenses retroactively from June 1, 2022 through July 2024, if it’s signed by Reynolds, who has not indicated where she stands.
Gaming commissioners expressed concern that the legislation brings politics into Iowa’s gaming operations. Commissioner Lance Horbach, a former Republican lawmaker, noted, “My concern is if this is signed, politics is now in Iowa’s gaming industry.” Horbach said the purpose of an independent commission is to keep politics, money and influence away from regulating Iowa casinos.
Commissioner Mark Campbell stated he and other commissioners “were all surprised” by the legislature’s action. He said, “We value the integrity of the process, and I think this commission values that and is going to work extremely hard to maintain that in the process of licensing regulation and how we move forward.”
Commissioner Daryl Olsen also said commissioners were “surprised” and “disappointed” with the moratorium. He said, “I truly believe these decisions should stay at the level of the commission, but our job is to regulate and not legislate, so we will continue to regulate.”
Senate Majority Leader Jack Whitver said the moratorium bill, which passed quickly in the waning hours of the session, succeeded because of “gaming fatigue within the Capitol.” He stated, “People just said, ‘We want a pause and see how this shakes out over the next couple of years. Especially after the sports gaming bill that passed, there’s so many ads, so much talk about gaming, that people said: ‘We just need to put a pause on this.’”
In response, Cedar Rapids Mayor Tiffany O’Donnell sent a letter to Reynolds, asking her to veto the measure. She wrote, “The best course for Iowa is to keep gaming decisions under the purview of the Iowa Racing and Gaming Commission. They are best suited to determine the appropriate path forward for our gaming industry.”
O’Connell noted Whitver commented on Iowa PBS’ “Iowa Press” that lawmakers discussed the moratorium for “probably 20 seconds.” She also noted the legislation does not consider the threat of expanded gambling in Nebraska and the net revenue gain of more than $50 million from a Linn County casino.
“Given that the amended bill was filed and passed both chambers in a matter of hours, the city and commission were unable to share this critically important information with the legislature,” O’Donnell wrote.
The moratorium was rushed through the legislature by state Senator Roby Smith, who along with other Republican lawmakers, have received campaign contributions from Dan Kehl, chief executive officer at Elite Casino Resorts. Elite operates casinos in Riverside and Davenport; Kehl has been a vocal opponent of a Cedar Rapids casino.
Meanwhile, the Cedar Rapids Development Group, consisting of mostly local investors, and the Linn County Gaming Association, the nonprofit that would allocate a portion of gaming revenue to local organizations, released plans for the $250 million Cedar Crossing entertainment complex, located near downtown on the site of the former Cooper’s Mill.
Jonathan Swain, president of Peninsula Pacific Entertainment, the city’s preferred casino operator, previously said the company would remain committed to Cedar Rapids and Linn County even if Reynolds signs the moratorium measure. He said, “Whatever the outcome is, whether there’s a veto or not a veto, we will be there for Linn County. We look forward to eventually bringing this project to fruition and bringing all the benefits to the nonprofits, jobs and all the economic opportunity that Cedar Crossing brings. Whatever happens, we’re ready for it, so let’s go.”
