A woman plays a slot machine at a casino on April 29, 2009 in Atlantic City, New Jersey. (Photo by Spencer Platt/Getty Images)
As the Iowa Racing and Gaming Commission nears its Feb. 6 meeting on a proposed Cedar Rapids casino, Iowa lawmakers introduced legislation Thursday to set a five-year moratorium on new casino licenses.
Rep. Bobby Kaufmann, R-Wilton, introduced House Study Bill 80, a proposal to retroactively begin a moratorium starting Jan. 1, 2025, through June 30, 2030. It also sets new standards for the Iowa Racing and Gaming Commission, the entity overseeing gaming facilities, from issuing new gambling licenses if the new facility would negatively impact the adjusted gross receipts of existing casinos by more than 10%. If an applicant was denied by the commission, another applicant in the same county could not apply for a license for eight years under the bill.
The bill comes weeks before the gaming commission is set to decide whether Cedar Crossing Casino and Entertainment Center, a proposed $275 million facility in Cedar Rapids, will be approved for a license. The Cedar Rapids project has moved forward quickly since the previous casino moratorium expired June 30, 2024. A moratorium proposed by Kaufmann in the final hours of the 2024 session was not taken up by the Senate.
Kaufmann told reporters he plans to get the legislation passed before the commission meeting. A subcommittee is scheduled on the bill for Monday, and he plans to move the bill in the House Ways and Means Committee next week.
While the Senate did not take up the casino moratorium bill last year, Kaufmann said is “very hopeful” that if the Senate grants the measure a hearing, it will pass — and that the Feb. 6 meeting puts additional pressure on the Senate to act on the bill quickly.
“It was hypothetical last time,” Kaufmann said. “It’s a very, very real, very short window. If action is going to be taken, then it has to done within that timeframe.”
Concerns were brought up by lawmakers about allowing additional casinos in the state — especially in Cedar Rapids — because of the impact new facilities could have on existing casinos. The commission denied two attempts to bring a casino to Cedar Rapids in 2014 and 2017, saying the proposals would not bring in new revenue to the state, but instead take away profits from existing casinos in Waterloo, Riverside and Dubuque.
New studies have shown the Cedar Rapids casino would take away a significant portion of existing casinos’ revenues. A study from Marquette Advisors, commissioned by the IRGC, found that Riverside Golf & Casino Resort could see a loss of 26% of its revenue — $34 million — by 2029 because of competition from Cedar Crossing Casino. Other casinos would also be projected to lose revenue, including $14.1 million at Meskwaki Bingo Casino Hotel and $8.8 million at Isle Casino in Waterloo.
However, the studies also predicted that the Cedar Rapids casino could bring in new revenue, with the Innovation Group projecting growth of $60 million in total statewide commercial gambling revenue.
Rep. Sami Scheetz, D-Cedar Rapids, said it’s “undeniable” cannibalization would occur, but that lawmakers should be looking at the boon to overall gaming revenues that would occur if the casino is approved. He said that more focus should be put on bringing in gaming tourism and competing with casinos in other states.
“As we look at (Rebuild Iowa Infrastructure Fund) funding, we’re losing revenue,” Scheetz said. “What’s really frustrating for me and other folks too, is some of the people who are supporting the moratorium are the folks who are building casinos in Nebraska, that are directly competing in Iowa gaming.”
Scheetz said “Cedar Rapids deserves a fair chance” to have the commission consider its proposal, and called for the Legislature to not interfere with the process.
“Fundamentally, the role of the Legislature shouldn’t be to pick winners and losers when it comes to gaming,” Scheetz said.
Kaufmann acknowledged there was an overall decline in gaming revenue, but called the studies showing increased income from a Cedar Rapids casino “a theory.” He also said while increased revenues would be a benefit, that it “doesn’t outweigh for me, personally, the cannibalization argument.”
“My personal district in Cedar County employs hundreds of individuals at Riverside,” Kaufmann said. “I know that many people in this room have constituents employed by Waterloo, Dubuque, Quad-Cities, the tribes and all the local casinos. So the benefit does not outweigh people losing their jobs, in my personal opinion.”
Sen. Jeff Reichman, R-Montrose, also introduced a casino moratorium bill Wednesday for the same timeframe, through June 30, 2030. The legislation has not yet been assigned a subcommittee meeting. Kaufmann said that in addition to having “productive conversations” with senators on the bill, he believed the proposal could be supported by Gov. Kim Reynolds if it made it to her desk before the commission’s February meeting.
“I’ll just say that I have a personal high level of confidence that the governor would consider signing it if we get it done,” Kaufmann said.