Iowa Gaming Regulators Will Review Petition to Disqualify Cedar Rapids Casino

Posted on: November 22, 2024, 10:17h. 

Last updated on: November 22, 2024, 10:37h.

Devin O'Connor @CasinoorgDevinO Read More
Expertise: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics.

On Thursday, the Iowa Racing and Gaming Commission (IRGC) unanimously voted in favor of reviewing a petition filed by the owners of Riverside Casino and Golf Resort that seeks to disqualify Linn County and Cedar Rapids as a permissible host location for a commercial casino.

Iowa casino Cedar Rapids Riverside
The Iowa Racing and Gaming Commission will review a petition challenging the legality of allowing a casino in Cedar Rapids. A proposal called Cedar Crossing Casino is before the state gaming agency. (Image: Casino.org)

Attorneys for Riverside and its charitable arm, the Washington County Riverboat Foundation, are challenging a local ballot referendum passed by Linn County voters in 2021 that permanently authorized gambling in the county so long as the IRGC issues a gaming license to a casino development. Riverside, seeking to prevent competition in Cedar Rapids, a major market for its casino some 30 air miles south, contends that the language of the 2021 Linn County referendum was flawed.

The petition raised by Riverside seeking declaratory relief asserts that the 2021 referendum, which passed with 55% of the Linn County vote, didn’t authorize gambling, but only extended gaming provisions included in a 2013 referendum.  

If approved by a majority of voters, operation of gambling games with no wager or loss limits may continue,” the 2021 ballot question asked.

Riverside alleges that the question only continued gambling operations from 2013. But since Linn County has never been home to gambling games, the 2021 referendum had no consequences other than continuing the county’s nonexistent gaming conditions.

State Review 

The IRGC instructed its staff to set a schedule for the petition to be considered.

Attorneys with the county and Cedar Rapids, along with the Cedar Crossing Casino backers, which includes the Cedar Rapids Development Group, the Linn County Gaming Association, and Peninsula Pacific Entertainment, will first make their case as to why the 2021 referendum authorized the establishment of a casino within the county. The state gaming agency will then give Riverside time to reply before making its decision on the declaratory relief request.

Though the IRGC granted Riverside’s petition for review, the commission didn’t approve another appeal asking the state to halt its consideration of the $275 million Cedar Crossing Casino. A delay in the IRGC’s deliberation of Cedar Crossing would have provided state lawmakers additional time to reimplement a moratorium on new gaming licenses in Iowa, something largely expected to happen after the Legislature convenes in January.

The IRGC’s timeline for reviewing the Cedar Crossing Casino proposal is scheduled to culminate on February 6 when the agency will vote on whether to grant the project a casino license. That means Iowa lawmakers will have only 16 session days to get a new casino moratorium bill to Gov. Kim Reynolds’ (R) desk.

Reynolds has remained impartial to the push for and against a casino in Iowa’s second-largest city. She said in August that she won’t form an opinion until forced to do so by the Legislature.  

Unique State Gaming Law

Iowa’s gaming law doesn’t limit the number of casino licenses the IRGC can issue. However, the state can only grant gaming concessions for projects in counties where a local ballot referendum is held in support of slot machines, table games, and sports betting.

Iowa also requires its casinos to benefit charities. The gaming statute mandates that a minimum of 3% of each casino’s annual gross gaming revenue (GGR) go to its associated charitable arm, which directs the proceeds to community nonprofits.

The Cedar Crossing Casino developers have pledged to give 8% of their gross gaming win to charity.