Urge return of casino moratorium before Iowa Legislature in 2025

Jack O’Connor
| Iowa Capital Dispatch

Iowa lawmakers say a moratorium on new casino licenses is back on the agenda for the 2025 legislative session.

After a two-year moratorium expired last session, lawmakers concerned about a new casino cannibalizing profits from the current casino industry are promising to introduce a new moratorium bill to the governor.

State Rep. Bobby Kaufmann, Republican of Wilton, chairman of the House Committee on State Government, said he plans to introduce the new casino moratorium bill as soon as the legislative session begins.

“I didn’t introduce the amendment last year to get it through the House, but I’ve given up trying now. So I definitely plan to introduce it again this year,” Kaufmann said.

The previous session’s attempts to extend the moratorium came late in the session, with the Senate deciding not to take up the bill.

Sen. Jason Schultz, Republican of Schleswig, chairman of the chamber’s State Government Committee, said he decided not to pursue the moratorium in the previous Senate session and is not sure he would support it in the next session.

“I decided last year that the industry is certainly capable of operating in a competitive environment,” Schultz said. “I don’t know if I’ll see it that way next year, but every decision would be made through the caucus and determining what direction we want to go in.”

Developer applies for license for new casino in Cedar Rapids

After the moratorium expired on July 1, a Cedar Rapids casino development group began the process of applying for a casino license. The development group includes the Linn County Gaming Association and casino operator partner Peninsula Pacific Entertainment.

If a new moratorium law passes before their application is approved, the Cedar Rapids casino will have to wait.

Kim Pang, vice president of development at Peninsula Pacific, said in a statement that the casino, which will be called Cedar Crossing, will provide many benefits to the local community.

“The potential benefits extend far beyond the gaming, live entertainment and amenities we can provide. Through annual nonprofit contributions of up to $5 (million) to $7 million, Cedar Crossing will help make Linn County a more vibrant place to live and attract tourism to the region,” Pang said in the statement.

State Rep. Ken Croken, D-Davenport, said he would likely support a new moratorium on casino licenses because of the financial impact a new casino would have on casinos in Davenport.

“Casino operators and casino employees in the Quad-Cities region were very concerned that a new major casino in Cedar Rapids would have a negative financial impact on their operations,” Croken said.

He also said more research is needed to truly assess the impact of a new casino on Iowa’s gambling industry.

Cedar Crossing executives believe cannibalization of other casinos’ profits will be minimal.

Pang said in the statement that the group looks forward to submitting its application to the Iowa Racing and Gaming Commission in October.

“Voters in Linn County have repeatedly indicated their support for a casino, and we are prepared to honor their wishes by dutifully working with the IRGC in the process it has established for applications. We look forward to presenting our vision to the commission in the coming months,” Pang said in the statement.

The IRGC plans to vote on the Cedar Crossing application on February 6.

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