Iowa Legislature to discuss moratorium on new casino licenses for 2025

Plans for a new Cedar Rapids casino may be dead before arrival if the Legislature approves another moratorium on casino licenses in the next session. (Photo by Spencer Platt/Getty Images)

State legislators say a moratorium on new casino licenses will be back on the table for the 2025 legislative session.

After allowing the two-year moratorium to expire last session, lawmakers concerned about a new casino cannibalizing the profits of the current casino industry vow to bring a new moratorium law to the governor’s desk.

State Rep. Bobby Kaufmann, R-Wilton, chairman of the House State Government Committee, said he plans to introduce a new casino moratorium bill once the legislative session begins.

“I did not offer the amendment last year to have it pass the House just to abandon my efforts, so I certainly plan to reintroduce it this year,” Kaufmann said.

Last session’s efforts to extend the moratorium came in late in the session with the state Senate opting not to hear the bill.

Sen. Jason Schultz, R-Schleswig, chairman of the chamber’s State Government Committee, said he decided against pushing the moratorium in the Senate last session and is unsure whether he would support one in the next session.

“I made the decision that the industry is certainly capable of operating in a competitive environment last year,” Schultz said. “I don’t know if that’s how I’ll see it this coming year, but any decision would be run through the caucus and to just decide what direction we’d like to go.”

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

If a new moratorium law is passed before their application is approved, hopes for a Cedar Rapids casino will need to wait.

Kim Pang, vice president of development at Peninsula Pacific, said in a statement that a Cedar Rapids casino, known as Cedar Crossing, would provide many benefits to the local community.

“The potential benefits extend far beyond the gaming, live entertainment and amenities we will be able to 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 as well as draw tourism to the region,” Pang said in the statement.

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

“The casino operators and casino employees that are in the Quad-Cities region were deeply concerned that a new major casino in Cedar Rapids would have an adverse financial impact on their operations,” Croken said.

Croken also said more research is needed to truly assess the effect of a new casino on Iowa’s gaming industry.

Cedar Crossing officials say they believe the cannibalization of other casinos’ profits would likely be minimal. 

Pang said in the statement that the group is looking forward to presenting their application to the Iowa Racing and Gaming Commission (IRGC) in October. 

“Linn County voters have said time and again that they support a casino, and we are ready to honor their wishes by working dutifully with the IRGC on the process it has set for applications – and we are thrilled to present 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 Feb. 6, 2025.

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