While the situation looked bleak for the company following a recent Iowa House effort to ban casino expansion for five years, recent developments swung the situation in the operator’s favor
After over a decade of perseverance, Cedar Rapids has been awarded its coveted casino license by the Iowa Racing and Gaming Commission (IRGC.) The historic decision, approved by a 4-1 vote on Thursday, paves the way for the development of the Cedar Crossing Casino on the west side of the Cedar River at the former site of Cooper’s Mill.
The Project Promises to Benefit Local Communities
The casino project will include gaming facilities, restaurants, and a 1,500-person entertainment venue. Other planned amenities are a state-of-the-art complex and even a STEM Lab to foster interest in science and technology. Jonathan Swain, president of Cedar Rapids Development Group, was confident that the project would be a milestone success and was excited to begin construction.
“I’ve been planning a groundbreaking for 12 years. It’ll probably take us 18-22 months to build the project, so we are going to move very quickly.”
Jonathan Swain, Cedar Rapids Development Group president
The successful application marks a pivotal moment for the city. Following the IRGC’s decision, Cedar Rapids mayor Tiffany O’Donnell and project leaders wasted no time announcing that the groundbreaking would begin at 11 o’clock on Friday. Commissioners were optimistic that the casino would benefit surrounding businesses and lead to long-term growth.
Swain noted that this newest proposal was the best one yet, offering the highest value for the region. He believed that the project’s increased focus on benefiting local communities was one of the primary reasons for the IRGC’s approval. Most commissioners echoed this statement, adding that a Cedar Rapids casino could be instrumental in revitalizing the region’s economy.
Not Everybody Was on Board with the IRGC’s Decision
Despite Cedar Crossing Casino’s potential to bring in millions in new revenue, market studies have estimated significant revenue losses for other nearby casinos due to market cannibalization. Riverside Casino CEO Dan Kehl was disappointed in the IRGC’s decision, warning of job losses and reduced revenue for Washington County nonprofits. He also raised questions regarding the decision’s legality.
“We have questions and concerns as we still believe the referendum requirement has not been met and are reviewing our next best steps.”
Dan Kehl, Riverside Casino CEO
IRGC member Alan Ostergren, the sole commissioner who voted against the proposal, cited concerns about the commission’s authority to grant the license and potential market disruption. However, Commission Chairman Daryl Olsen dismissed these concerns, noting that most IRGC members were satisfied with the commission’s authority to proceed.
The Cedar Rapids casino approval comes after years of hurdles, including a moratorium on new gaming licenses proposed in January that failed to advance in the Iowa Senate. With legal and legislative obstacles finally resolved, Cedar Rapids officials and residents are ready to proceed with this long-awaited development, hopefully ushering in a new era of entertainment and economic growth.
