On Thursday, the Iowa Racing and Gaming Commission (IRGC) unanimously voted to review a petition filed by the owners of Riverside Casino and Golf Resort, which aims to disqualify Linn County and Cedar Rapids as a permissible location for a commercial casino.
Riverside’s attorneys and its charitable arm, the Washington County Riverboat Foundation, are challenging a local ballot referendum passed by Linn County voters in 2021. This referendum permanently authorized gambling in the county, contingent on the IRGC issuing a gaming license to a casino development. Riverside argues that the language of the 2021 referendum was flawed, aiming to prevent competition in Cedar Rapids, a significant market for its casino located about 30 air miles south.
The petition for declaratory relief contends that the 2021 referendum, which passed with 55% of the vote, didn’t authorize new gambling but merely extended gaming provisions from a 2013 referendum. The 2021 ballot question stated: “If approved by a majority of voters, operation of gambling games with no wager or loss limits may continue.” Riverside claims that this question only continued non-existent gambling operations from 2013, as Linn County has never had gambling games.
The IRGC has instructed its staff to schedule a review for the petition. Attorneys representing Linn County, Cedar Rapids, and the Cedar Crossing Casino backers—which include the Cedar Rapids Development Group, the Linn County Gaming Association, and Peninsula Pacific Entertainment—will first present their case as to why the 2021 referendum authorized a casino within the county. Riverside will then have an opportunity to respond before the IRGC makes its decision on the declaratory relief request.
Although the IRGC agreed to review Riverside’s petition, the commission did not approve another request to halt consideration of the $275 million Cedar Crossing Casino. A delay would have given state lawmakers additional time to reimplement a moratorium on new gaming licenses in Iowa, something expected to happen after the Legislature convenes in January.
The IRGC’s review of the Cedar Crossing Casino proposal is set to conclude on February 6, when the agency will vote on whether to grant the project a casino license. This timeline leaves Iowa lawmakers with only 16 session days to pass a new casino moratorium bill and get it to Gov. Kim Reynolds’ (R) desk.
Reynolds has remained neutral regarding the push for and against a casino in Iowa’s second-largest city. She stated in August that she would not form an opinion until required to do so by the Legislature.
Iowa’s gaming law does not limit the number of casino licenses the IRGC can issue. However, the state can only grant gaming concessions for projects in counties where a local ballot referendum supports slot machines, table games, and sports betting.
Iowa also mandates that its casinos benefit charities, with a minimum of 3% of each casino’s annual gross gaming revenue (GGR) going to its associated charitable arm, which directs proceeds to community nonprofits. The Cedar Crossing Casino developers have pledged to allocate 8% of their gross gaming win to charity.
