Because the Iowa Racing and Gaming Fee (IRGC) approaches its essential February sixth assembly to resolve whether or not to approve a gaming license for a proposed Cedar Rapids on line casino, the talk over the undertaking has intensified. Key gamers, together with state lawmakers and present on line casino operators, are working behind the scenes to sway the result. The proposed $275 million Cedar Crossing On line casino in Cedar Rapids has turn out to be a flashpoint, with opponents arguing that it’s going to negatively affect close by casinos, whereas supporters spotlight the financial potential and elevated state income the on line casino may convey.
A crucial determination looms for Cedar Rapids On line casino proposal:
On Thursday, the IRGC heard a petition from Riverside On line casino and Washington County Riverboat Basis, looking for to dam the approval of the gaming license for Linn County, which incorporates Cedar Rapids. The petition claims that the wording of the poll referendum used to increase voter approval for a gaming license is invalid. In keeping with Riverside’s authorized illustration, the referendum’s use of the phrase “proceed” was deceptive, as there had been no present on line casino in Linn County to proceed. Riverside argues that this invalidates all the course of, a declare which the Cedar Rapids Growth Group, LLC, behind the Cedar Crossing On line casino, vehemently disputes.
As reported by KCRG, through the listening to, the lawyer representing Cedar Rapids’ pursuits, Man Prepare dinner, asserted that the petition was filed in dangerous religion. “This petition is just not actual, it’s not real,” Prepare dinner argued, emphasizing that it was merely a tactic to undermine the IRGC’s authority and convey the problem earlier than a district courtroom choose.
Nonetheless, Riverside’s lawyer, Mike Weinhardt, sharply countered, calling the petition a respectable effort to handle what he sees as a doubtlessly damaging transfer for the Riverside On line casino, which may lose vital income if the Cedar Rapids on line casino opens. “An get together, Riverside, the one who’s going to be most cannibalized within the occasion that this on line casino is in-built Cedar Rapids, raised a respectable query at its earliest alternative,” Weinhardt stated.
The IRGC additionally reviewed research it had commissioned on the potential financial affect of a Cedar Rapids on line casino. These research confirmed that whereas the undertaking would enhance general state gaming income, the earnings would largely come on the expense of present casinos. Riverside On line casino, specifically, may lose as a lot as 26% of its income as a result of competitors from the brand new Cedar Rapids facility. Different close by casinos, like Meskwaki Bingo On line casino Resort and Isle On line casino in Waterloo, may additionally see vital income losses.
Political push for a on line casino moratorium:
Because the IRGC prepares for its determination, a broader political battle is unfolding on the state legislative stage. Opponents of the Cedar Rapids on line casino, led by key figures like Rep. Bobby Kaufmann and Sen. Jeff Reichman, are pushing for a five-year moratorium on new on line casino licenses. This proposal is transferring via the legislative course of in an effort to stop any new licenses from being issued, notably concentrating on the Cedar Rapids proposal.
A invoice launched by Kaufmann, Home Research Invoice 80, goals to dam new casinos till June 30, 2030. The invoice, which has already gained traction within the Iowa Home, would additionally impose new standards for the IRGC, limiting new licenses if a proposed on line casino would lower the income of present casinos by greater than 10%. In keeping with Iowa Capital Dispatch, Kaufmann’s invoice is designed to guard established casinos within the state, notably these like Riverside that may very well be straight impacted by the brand new Cedar Rapids facility.
In the meantime, Republican state Sen. Jeff Reichman launched an analogous moratorium invoice within the Senate, which might additionally prolong till 2030. These payments come simply weeks earlier than the IRGC is ready to vote on the Cedar Rapids proposal, including urgency to the legislative course of. Rep. Kaufmann has indicated that the legislature may act swiftly, however the invoice faces vital hurdles, together with the necessity to go via subcommittees and full chambers in each the Home and Senate earlier than the February sixth IRGC determination.
For some lawmakers, the talk over the Cedar Rapids on line casino facilities on a broader difficulty: the potential financial advantages versus the dangers to present jobs and companies. Whereas the proposed on line casino is projected to herald new income, Rep. Sami Scheetz, D-Cedar Rapids, has argued that the advantages outweigh the challenges. He believes that Cedar Rapids deserves a good probability to compete within the state’s gaming market, notably given the income losses Iowa has skilled from neighboring states with increasing casinos.
Scheetz additionally expressed frustration that some supporters of the moratorium are concerned in constructing casinos in neighboring Nebraska, straight competing with Iowa’s gaming market. He contends that specializing in the financial positive factors from gaming tourism and new income ought to take precedence over defending the pursuits of established casinos.
Conversely, Kaufmann argues that the potential losses for native casinos like Riverside can’t be ignored. “The profit doesn’t outweigh individuals shedding their jobs,” Kaufmann stated, reflecting his issues in regards to the affect a brand new on line casino would have on staff at present gaming amenities. The argument is grounded in his private expertise in Cedar County, the place Riverside On line casino employs a whole bunch of people.
The legislative and IRGC battles come at a time when Iowa’s gaming panorama is already present process vital shifts. In recent times, there was rising competitors from neighboring states, and the state has seen a gradual decline in general gaming income. With the state’s price range below strain, some legislators are cautious of including new casinos that may siphon income from present companies reasonably than producing actually new financial development.
