Two new studies assessing the feasibility of the proposed Cedar Crossing Casino in Iowa are optimistic about its ability to generate profit – but likely at the expense of other properties
A key focal point of any permission issued to a new casino is to ensure that it does not end up cannibalizing existing properties. The proposed Cedar Crossing Casino in Linn County may miss the mark by a wide margin after two new feasibility studies have wrestled with whether the project would be a boon to the state economy or a burden.
Cedar Crossing Casino Feasibility Studies Are Food for Thought
Touted as a worthwhile project with a huge economic impact, the Cedar Crossing Casino has every reason to be given a greenlight and a public hearing due on January 23 will further elaborate on this. However the project currently faces challenges that have to do with two independent reports by Marquette Advisors and The Innovation Group respectively.
The crux of the problem lies in the fact that the proposed Cedar Crossing Casino may end up cannibalizing the revenue of other properties. The Iowa Racing and Gaming Commission will need to decide during a February 6, 2025, hearing, with the new reports potentially throwing sand in the gears.
Marquette Advisors believes that on its own, the Cedar Crossing Casino is a project that would be drawing in $118 million in annual adjusted gaming revenue, but 60% of that result will be cut out from other Iowa casinos.
The most impacted properties will be the Riverside Casino followed by the Meskwaki Casino which could lose around $34 million and $14 million respectively should the new casino be allowed to go through.
These findings track with the figures provided by The Innovation Group, which put annual net gaming revenue at $116.5 million instead, and argued that Riverside Casino stands to lose around $16.6 million, followed by the Isle Casino in Waterloo which will also suffer $6.2 million loss.
Although the studies are not entirely confident about the exact size of the losses generated by neighboring properties, they indicate that Iowa’s land-based casino market may have reached its limits, making it difficult to decide outright if a new casino is feasible.
Do Not Give up on the Cedar Crossing Casino Just Yet
Cedar Crossing Casino, both reports determined, would mostly rely on cannibalizing existing casino footfall rather than drive in new customers or create opportunities for those who had to travel farther afield to gamble. However, it’s possible to see the casino still has a beneficial impact.
The convenience it creates could lead to an increased annual gaming revenue of $1.72 billion by 2029, up from $1.72 billion in 2024. The Cedar Crossing Casino project is aware of these challenges, however.
It has therefore chosen to contribute 8% of its net gaming revenue to various philanthropic causes, giving it a bit of a buffer for February 6. There are some short-term gains to consider, as the construction phase alone will result in 1,300 jobs and possibly bring $115.2 million in local economic benefits.
