Iowa Casino Moratorium Bill Threatens To Permanently Ban Additional Gaming Licenses

Posted on: January 23, 2025, 04:30h. 

Last updated on: January 23, 2025, 04:30h.

Iowa’s commercial gaming industry could essentially be closed should new legislation introduced in Des Moines become law.

Iowa casino moratorium Cedar Rapids
Iowa Rep. Bobby Kaufmann wants to halt new casinos in the state until July 2030. He then thinks the state should only expand gaming should economic impact studies show additional casinos wouldn’t overly impact current operators. (Image: West Liberty Index)

As expected, Iowa House Rep. Bobby Kaufmann (R-Cedar County) has filed a bill that would prevent the Iowa Racing and Gaming Commission (IRGC) from issuing new casino licenses. While it was expected that time would be of the utmost importance, as the state gaming regulator is slated to vote on a casino application for Cedar Rapids during its Feb. 6 meeting, Kaufmann’s House Study Bill 80 seeks to retroactively apply the statute to become effective as of Jan. 1, 2025.

Officials in Cedar Rapids have for many years been trying to bring a casino to the state’s second-most populated city to energize its economy, generate new jobs, and create new tax revenue. The IRGC denied Cedar Rapids’ gaming bids in 2014 and 2017 on market saturation concerns.

In 2022, Iowa lawmakers passed a two-year moratorium on new gaming licenses. The suspension expired on July 1, 2024.

A group of local businesspeople operating as the Cedar Rapids Development Group in partnership with Los Angeles-based gaming firm Peninsula Pacific Entertainment subsequently presented the IRGC with a $275 million scheme called Cedar Crossing Casino.

Not Just Moratorium 

Kaufmann’s measure proposes reimplementing another moratorium on allowing the IRGC to grant new casino concessions from Jan. 1, 2025, through June 30, 2030. That’s not all the bill would do.

Kaufmann has suggested that the IRGC not be allowed come July 2030 to consider any gaming bids should economic studies conclude that the proposed casino’s opening would “negatively impact the adjusted gross receipts of an existing excursion gambling boat, gambling structure, or racetrack enclosure by more than 10%.”

Two independent third-party studies commissioned by the IRGC made public this month estimated that a casino in Cedar Rapids would reduce gross gaming revenue at Riverside Casino & Golf Resort by considerably more than 10%, with one of the forecasts projecting a 26% reduction. However, Kaufmann’s bill would only implement the 10% clause after July 2030.

Finally, House Study Bill 80 would also force the IRGC to “study internet gaming and its impact on the state’s gaming industry and to issue a report with findings and recommendations to the General Assembly by Jan. 1, 2026.”

Bill Backers 

House Study Bill 80 has been directed to the Ways and Means Committee. Kaufmann is optimistic about a swift passage out of committee to get votes underway on the full Assembly floor in the coming days. The Republican is “very hopeful” that the legislation can reach Gov. Kim Reynolds’ (R) desk before the IRGC vote on the Cedar Crossing Casino on Feb. 6.

Last September ahead of Kaufmann’s reelection, Elite Casino Resorts, which owns and operates Riverside, along with Grand Falls Casino & Golf Resort in Larchwood and Rhythm City Casino Resort in Davenport, donated $10K and spent another $2,300 on a fundraiser for the Iowa House Republican whose District 82 is east of District 92 where Riverside resides.

In 2023, Elite gave Kaufmann’s campaign $2,500 and spent over $2,800 on a golf fundraiser for the state lawmaker.