Casino Moratorium Bill Picks up Speed in Iowa

Earlier this month, a casino moratorium proposal in Iowa picked up speed. The bill called to restrict the awarding of new casino licenses for the next few years and if approved, may threaten the future of a proposed Cedar Rapids project that awaits approval from the state’s gambling regulator, the Iowa Racing and Gaming Commission (IRGC).

Casino Moratorium Bill to Undergo Vote on Thursday

While the gambling watchdog is expected to announce its decision early next month, lawmakers are reportedly trying to fast-track the proposal. On Monday, House Study Bill 80, which seeks to enforce a five-year moratorium on new casino licenses, effective retroactively from January 1, 2025, was passed by the House Ways and Means Committee.

In a 17-8 vote, the Committee recommended passage of the bill which was sent to the House. There, House Study Bill 80 is expected to undergo further discussion and a vote scheduled for Thursday. In case lawmakers successfully pass the proposal, a statewide moratorium may be enforced, effectively prohibiting the awarding of new casino licenses through June 30, 2030.

The aforementioned proposal was introduced by Rep. Bobby Kaufmann, a Republican from Wilton, a district that may be affected by the proposed Cedar Rapids casino which has a price tag of $275 million. The lawmaker argued that the current casino licensing regulations are vague, adding that his bill addresses key concerns and features exact language, as announced by The Gazette.

Kaufmann explained: “It’s a heavily, heavily regulated industry, and I believe decisions of this magnitude should be more compelled to consider things such as cannibalism and how it affects those who invest hundreds of millions of dollars, and most importantly, employing our constituents as we speak.” One of his concerns, similar to the concerns of other opponents of the proposed Cedar Rapids casino project, is the impact the new venue may have on a local scale and the whole gambling sector in the state.

Studies Warn New Casino May Cannibalize on Revenue from Existing Properties

In contrast to the opponents of the casino project, supporters claim it will bring millions in proceeds, help create new jobs and boost tourism. The Cedar Rapids casino project is supported not only by city officials but also by local unions and alliances, including the Cedar Rapids Metro Economic Alliance. Supporters of the casino project claim it will capture tens of millions in new gaming revenue while revitalizing the area.

Despite the described economic benefits the Cedar Rapids casino project can bring, several studies explored the impact the venue may have, recognizing it will likely cannibalize proceeds from other nearby casinos.

One study estimated that Riverside Golf and Casino Resort’s revenue may sustain a $34 million revenue hit, Waterloo’s Isle Casino may record an $8.8 million dip in revenue while Meskwaki Bingo Casino Hotel may be hit with $14.8 million by 2029. In addition to the aforementioned properties, other venues across the state may also collectively lose $11 million, the study suggested.

While the debate for and against the proposed project continues, in the end, it will be up to the lawmakers to decide whether or not to approve the bill that may result in the enforcement of a casino license moratorium in Iowa.