Iowa Racing & Gaming Commission members voted 4-1 in favor of the Cedar Crossing Casino
CEDAR RAPIDS, Iowa (KCRG) - The Iowa Racing and Gaming Commission (IRGC) has voted to approve a gaming license for Linn County, clearing the way for a proposed casino in Cedar Rapids.
IRGC members voted 4-1 in favor of the application from Cedar Rapids Development Group, LLC and Linn County Gaming Association, LLC during its meeting Thursday at Prairie Meadows in Altoona.
The Cedar Crossing Casino will be built at the former site of the former Cooper’s Mill on the west side of the Cedar River, across from Quaker Oats.
Jonathan Swain, president of Cedar Rapids Development Group, LLC, announced after the IRGC’s decision that groundbreaking will take place Friday morning.
“I’ve been at this for 12 years, I’ve been planning a groundbreaking for 12 years,” Swain said. “So, 11 o’clock tomorrow we’ll be in Cedar Rapids breaking ground.”
Swain believes it will take between 18 and 22 months to build the project.
MORE: ‘This was David versus Goliath!,’ mayor says after new casino license
Cedar Rapids Mayor Tiffany O’Donnell also said Cedar Rapids is ready to get to work right away.
“We’ll be moving dirt tomorrow,” Mayor O’Donnell said. “Wasting no time in getting this up and running. Linn County, Cedar Rapids deserves this. It’s only taken us 12 years to get here. Looking forward to a homecoming this afternoon and breaking ground tomorrow.”
IRGC member Amy Burkhart voted in favor of the Cedar Rapids casino, but called the decision challenging because she is from southeast Iowa where several casinos are located.
“At the end of the day I have to ask myself ‘what is my job and what is my role here?’” Burkhart said during the meeting. “Looking at the State of Iowa, and I won’t requote the numbers, all I see is net gain. I see net gain in terms of tax revenues for our state.”
MORE: Washington County nonprofit funding could be impacted by Cedar Rapids Casino cannibalization
Alan Ostergren was the lone IRGC member to vote against the Cedar Rapids project. Ostergren said he does not believe the IRGC has the legal authority to issue a license to Linn County.
“Obviously I’m one of five votes up here and that position has not carried any support,” Ostergren said. “We’ll see how that plays out.
Ostergren was referencing a petition filed last year by Riverside Casino and the Washington County Riverboat Foundation seeking to prevent the IRGC from granting Linn County a license. The petition argued the IRGC does not have the authority to grant Linn County a license because of language on a ballot measure passed by Linn County voters in 2021 that the petition argued was invalid.
In January, the IRGC opted not to make a decision over that petition. During Thursday’s meeting, IRGC chair Daryl Olsen said after consulting with legal counsel, that the majority of commissioners are satisfied that the IRGC has the authority to grant a gaming license to Linn County.
MORE: Quad Cities concerned after Cedar Rapids gets green light for casino
In a statement, Riverside Casino CEO Dan Kehl said he was disappointed by the commission’s decision.
“We appreciate the time and effort the commission and staff put into this,” Kehl said. “But we do have questions and concerns as we still believe the referendum requirement has not been met and are reviewing our next best steps.”
Mayor O’Donnell was asked about a potential lawsuit to block Linn County’s gaming license. O’Donnell said she expected more legal action.
“I’m really more focused on moving forward and a groundbreaking tomorrow for this casino,” O’Donnell said.
Cedar Rapids has faced multiple obstacles in its bid to get a casino license in addition to that petition.
Last month, Iowa House lawmakers passed a bill that would have placed a moratorium on new gaming licenses in Iowa until July 2030. That same bill would have also restricted the development of future casinos in Iowa beyond the five-year moratorium.
Tuesday, Iowa Senate leaders announced that bill would not advance any further because it did not have enough support in the chamber.
Mayor O’Donnell praised Tuesday’s announcement as a victory.
“Honestly it took my breath away in the senate committee meeting,” O’Donnell said Tuesday. “What a victory for this latest hurdle, keeping in mind we have one more really big one, the ultimate one coming up on Thursday.”
A previous moratorium signed into law by Gov. Kim Reynolds in 2022 expired last summer.
Cedar Rapids has also faced strong opposition from Iowa’s other casinos. Market studies have shown that while a Cedar Rapids casino would generate millions of dollars in new revenue, it could lead to the cannibalization of some of Iowa other casinos.
Riverside Casino in Washington County would stand to lose the most.
“There’s no other way for Washington to get this kind of revenue other than the Riverside Casino,” Patty Koller with the Washington County Riverboat Foundation told TV9 in January. “It will be a significant loss of jobs in Washington County. It’ll be a significant loss of revenue to nonprofit organizations and the municipalities in Washington County because when our revenues go down, then what we can give out is obviously going to go down.”
This is the third time in 11 years that the IRGC has had to make a decision on granting a gaming license to Linn County. The commission previously rejected applications in 2014 and 2017.
How did Commissioners reach their decision?
IRGC Chair Daryl Olsen says if this were just another casino, he wouldn’t have voted for it.
“It provides amenities, restaurants, 1,500 person venue for entertainment, arts and culture center, STEM lab. It is so much more. It’s unique and it provides much more than gaming and that’s so important to me,” he said.
Commissioner Julie Andres said, “I don’t think a project that is desired by a local community, gives that community an opportunity to thrive and develop, meets and even exceeds our standards for quality of design and amenities, and then provides a unique and differentiated product in the market, and provides a net gain of revenues to our state should be denied.”
Commissioner Olsen said the biggest issue with approving Linn County’s license was cannibalization.
“That is the one negative to this entire, to this project that I can look at and it is a negative. And that bothers me, but I can’t let one negative stand in the way of all the positives,” he said.
Commissioner Alan Ostergren, the sole no vote, disagrees.
“I think we’re going to disrupt what is currently in existence too much for the benefits to the, to the Linn County community, which I think will be considerable,” he said.
Ostergren also says he voted no because he doesn’t think the commission had the authority to grant the license.
Copyright 2025 KCRG. All rights reserved.