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Fact-checked by Angel Hristov
Iowa House Passes Five-Year Ban on Casino Expansion
This legislative update will have significant implications for the contentious Cedar Rapids casino project, dashing the hopes of local communities

In a move that has sparked debate across the state, the Iowa House of Representatives passed legislation on Thursday imposing a five-year moratorium on approving new casino licenses. The bill, which passed 68-31, effectively freezes the plans for a highly anticipated casino development in Cedar Rapids and could have substantial long-term effects on the region’s gambling sector.
Local Operators Strongly Object to Casino Expansion
Legislators fast-tracked the bill to prevent the Iowa Racing and Gaming Commission (IRGC) from voting on a potential license for Linn County. Industry stakeholders were anticipating a 6 February vote regarding the proposed Cedar Rapids casino in the area. However, the new legislation introduced by Rep. Bobby Kaufmann (R-Wilton) could make this vote moot.
I think the studies show significant cannibalism is very real, and I do believe we are in the correct purview to tell the Iowa Racing and Gaming Commission how they should make major decisions.
Rep. Bobby Kaufmann
Local casino operators, such as Diamond Jo Casino in Dubuque and Q Casino, voiced concerns about the broader impact of a new competitor in the region. Alex Dixon, the CEO of Q Casino, cited a study by the Linn County Gaming Association, which estimated significant revenue losses for nearby casinos due to market cannibalization.
Dixon was cautiously optimistic that established casinos could retain most of their customer base through quality products. However, Diamond Jo Casino representatives were less reassured, remarking that a Cedar Rapids casino would harm the regional gambling market, upsetting the fragile equilibrium in Iowa’s competitive casino sector.
The Cedar Rapids Project Enjoys Local Support
Despite resistance from existing casinos, the Cedar Rapids casino project enjoys the backing of local economic development groups and unions. The Cedar Rapids Metro Economic Alliance contends that the project would generate substantial new revenue and revitalize the region. The organization hoped increased casino traffic would benefit surrounding businesses and lead to long-term growth.
Rep. Sami Scheetz (D-Cedar Rapids) addressed the possible economic benefits, noting that the new casino could bring in an estimated $60 million in new gaming revenue. Scheetz contended that competition would improve the broader gambling market, promote innovation, and enhance consumer choice. He also argued that lawmakers should not interfere with IRGC operations.
Let the Racing and Gaming Commission do its job. It shouldn’t be our job to protect existing casino operators in the state.
Rep. Sami Scheetz
As the debate surrounding the bill continues, Iowa lawmakers remain torn between ensuring market stability and fostering economic development. The proposed legislation must now face a debate in the Senate and approval by Governor Kim Reynolds. If it passes before 6 February, the Cedar Rapids project will be put on ice for the foreseeable future.
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Deyan is an experienced writer, analyst, and seeker of forbidden lore. He has approximate knowledge about many things, which he is always willing to apply when researching and preparing his articles. With a degree in Copy-editing and Proofreading, Deyan is able to ensure that his work writing for Gambling News is always up to scratch.
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