Officials in Linn County, Iowa are considering when to hold a referendum on gambling. Voters there overwhelmingly supported a ballot issue on casino gambling by a 22-point margin, 61 percent to 39 percent, in March 2013. That approval is set to expire this year, so another referendum is necessary if a casino in Cedar Rapids, Iowa’s second-largest city, is to become a reality.
Linn County Deputy Commissioner of Elections Rebecca Stonawski said the vote could occur in a special election on September 14 or in the city and school elections on November 2. Whatever date is selected by the Linn County Board of Supervisors, voters would be asked to approve permanently authorizing licensed gambling in Linn County.
Cedar Rapids still has a memorandum of understanding through October 9, 2029, with the Cedar Rapids Development Group, which mostly consists of local investors. As part of the 10-year agreement, the group pays the city $75,000 a year for exclusive consideration for a casino license application. To date, City Finance Director Casey Drew said the group has paid $300,000 to Cedar Rapids.
If voters approve casino gambling once again, moving still would require the blessing of the Iowa Racing and Gaming Commission. The 5-member commission rejected proposals for a Cedar Rapids casino in 2014 and 2017, citing a saturated market and “cannibalization” of revenue from existing casinos in Riverside and Waterloo.
Cedar Rapids Mayor Brad Hart said, “It’s the last big city in Iowa that doesn’t have gambling. So I think there really is a market here for someone to do it right. The local investors are and will be involved if anything moves forward, and that’s a plus, too.”
Racing and Gaming Commission Administrator Brian Ohorilko said there is no casino license application on file at the moment. “There really hasn’t been any discussion with regard to Linn County or any new gaming license for that matter. It’d be a situation where the commission would need to have a discussion and make a decision with regard to how to proceed,” he said.
Karlyn Ollendick, chief operating officer at Elite Casino Resorts, operators of Riverside Casino and Resort near Iowa City, issued a statement noting, “The Cedar Rapids market is well-served and we appreciate all our great employees and customers in Linn County. Regarding the possibility of a new referendum, little has changed in this market’s demographics since the last state commission study and review.”
