Iowa's commercial gaming sector could effectively shut down if new legislation proposed in Des Moines is enacted.
As anticipated, Iowa House Representative Bobby Kaufmann (R-Cedar County) has introduced a bill that would stop the Iowa Racing and Gaming Commission (IRGC) from granting new casino licenses. Although it was anticipated that time would be critically important, given that the state gaming regulator is scheduled to vote on a casino application for Cedar Rapids in its meeting on Feb. 6, Kaufmann’s House Study Bill 80 aims to retroactively enforce the statute to take effect as of Jan. 1, 2025.
For several years, officials in Cedar Rapids have been attempting to introduce a casino to Iowa's second-largest city to stimulate its economy, produce new employment opportunities, and increase tax revenue. The IRGC rejected Cedar Rapids’ gaming proposals in 2014 and 2017 due to concerns about market saturation.
In 2022, Iowa legislators enacted a two-year freeze on new gaming permits. The suspension ended on July 1, 2024.
A consortium of local entrepreneurs working as the Cedar Rapids Development Group, in collaboration with the Los Angeles gaming company Peninsula Pacific Entertainment, later offered the IRGC a $275 million proposal known as Cedar Crossing Casino.
Not Only Suspension
Kaufmann’s proposal suggests reinstating a moratorium on permitting the IRGC to issue new casino concessions from January 1, 2025, until June 30, 2030. The bill would do more than just that.
Kaufmann has proposed that the IRGC should not be permitted to review any gaming proposals by July 2030 if economic analyses determine that the launch of the proposed casino would “adversely affect the adjusted gross receipts of an established excursion gambling boat, gambling facility, or racetrack enclosure by over 10%.”
This month, two separate third-party studies commissioned by the IRGC revealed that a casino in Cedar Rapids would significantly decrease gross gaming revenue at Riverside Casino & Golf Resort by more than 10%, with one analysis predicting a 26% drop. Nonetheless, Kaufmann’s legislation would only enforce the 10% provision post-July 2030.
Ultimately, House Study Bill 80 would require the IRGC to “analyze internet gaming and its influence on the state’s gaming sector and to present a report with conclusions and suggestions to the General Assembly by Jan. 1, 2026.”
Supporters of the Bill
House Study Bill 80 has been referred to the Ways and Means Committee. Kaufmann believes that there will be a quick move out of committee to initiate voting on the entire Assembly floor in the next few days. The Republican feels “very optimistic” that the bill will arrive at Gov. Kim Reynolds’ (R) office before the IRGC voting on the Cedar Crossing Casino occurs on Feb. 6.
In September, prior to Kaufmann's reelection, Elite Casino Resorts, owner of Riverside, as well as Grand Falls Casino & Golf Resort in Larchwood and Rhythm City Casino Resort in Davenport, contributed $10K and invested an additional $2,300 on a fundraiser for the Iowa House Republican whose District 82 is to the east of District 92, where Riverside is located.
In 2023, Elite donated $2,500 to Kaufmann’s campaign and contributed more than $2,800 on a golf fundraiser for the state legislator.