Two recent studies indicate any of the three proposed Cedar Rapids, Iowa casinos could cannibalize area competitors, especially Riverside Casino & Golf Resort, which could lose up to 25 percent of its 2022 projected earnings. Commissioned in April by the Iowa Racing and Gaming Commission, Marquette Advisors and WhiteSands Gaming recently released their reports regarding the million Wild Rose Cedar Rapids, with 600-700 slots and 15-20 table games; the 5 million Cedar Crossing Central attached to the DoubleTree Hotel, with 550 slots and 15 table games; and the 5 million Cedar Crossing on the River, with 840 slots and 30 table games. The five-member commission will announce November 15 which proposal—if any—will be granted a casino license.
In 2014 commissioners rejected 4-1 an application identical to Cedar Crossing on the River, citing market studies that said it would seriously cannibalize other casinos–again, Riverside Casino in particular. Wild Rose Jefferson ultimately was approved.
According to the Marquette study, Riverside “would be particularly hard hit in terms of lost market share,” with a loss of $18-$22 million in annual gaming revenue, or 20-25 percent of projected revenue in 2022.
WhiteSands stated “the vast majority of gaming income would come from the cannibalization of revenue from existing operations.” WhiteSands also said Riverside would be the hardest hit casino “with over 20 percent of their current revenue at risk.”
Cedar Rapids Mayor Ron Corbett had been an energetic promoter of the casino, starting with the 2014 effort. He and other city leaders called the project a “capstone” in the city’s recovery. When the gaming commission rejected the proposal, Corbett began a lobbying push for a smoke-free casino in Cedar Rapids. He is running for governor and is not seeking a third term as mayor.
Mayoral candidates vary in their enthusiasm regarding keeping the casino issue alive. Supporters include former police chief Gary Hinzman, who said, “The voters of Cedar Rapids/Linn County voted on a referendum to have a casino in Cedar Rapids. Every other major city in the state has a casino. So why can’t Cedar Rapids?” Former council member Monica Vernon said, “We’re the second-largest city in Iowa. If you read the 1980s law, nothing, the word ‘cannibalization’ is not in there. And the gaming commission is just way out of bounds on this.” Vernon said she prefers the original, full-service Cedar Crossing Casino on the river. “I just don’t think, as the second-largest city in Iowa, we should be shoved into some boutique situation. That just doesn’t even make sense to me,” she commented.
Business lawyer Brad Hart stated, “People may lose their appetite for continuing to spend money to get a casino. We’ll be fine either way.” Community activist Jorel Robinson said, “I don’t think it should be our first priority. But I think that we should have something in place and ready to go should something arise.”
City Council member Kris Gulick said it’s time to move forward. “I don’t see this as ‘the economy’s going to go to hell because we don’t have a casino.’ Just to be clear, I’m not willing to hold on to that land and wait for that to happen. If somebody comes along with something else, I’m all over it,” he said. Council member Scott Olson agreed. “I think if we do not get a license, then it’s time to move on. I personally believe we should put the ground that’s city owned on the west side of First Street, put that on the market, RFP. I already know of two developers, one in town, one of out of town, who are ready to present a proposal to redevelop that property.”
And Lemi Tilahun, a former staffer for U.S. Sen. Tom Harkin and the Obama administration, also said efforts to gain a casino must end. “We’ve tried, is it twice now? Doing the same things over and over again and expecting different results is kind of ludicrous to me.”
