ALTOONA
It wasn’t the result Washington County was hoping for, and leaders fought hard to prevent it, but the Iowa Racing and Gaming Commission concluded Thursday that the proposed Cedar Crossing Casino and Entertainment Center met or exceeded all criteria for a gaming license, and by a 4:1 vote, granted it one.
While Cedar Rapids residents cheered, in Washington County the immediate reaction was disappointment.
“We are very disappointed,” Patty Koller, Executive Director of the Washington County Riverboat Foundation, said. “This is a huge loss for rural Iowa.”
However, neither those in Riverside nor in Cedar Rapids took a breath before acting. The Riverside Casino and Washington County Riverboat Foundation filed a petition challenging the IRGC’s legal authority to issue the license that same day, while the Cedar Rapids Development Group broke ground on the new casino Friday, less than 26 hours later.
IRGC’s Justification
Each of the IRGC’s five commissioners explained the reasoning behind their vote at the Feb. 6 meeting at Prairie Meadows Casino in Altoona.
Julie Andres acknowledged the difficulty in making such a decision, and the impossibility of making all parties happy.
“The financial impact to Cedar Rapids in job growth, grants to nonprofits and revitalization of the area are understandable, but at what cost to other casinos in the area?” she said, noting that projected gaming revenue for Cedar Rapids is $116 to $118 million, but almost half of that would be cannibalized from other nearby casinos, including those in Riverside, Waterloo, and Davenport.
However, she still believed the license should be granted.
“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 net gain of revenues to our state should be denied. For those reasons, I will vote yes to grant this gaming license to the Cedar Rapids development group,” Andres said.
Amy Burkhart, a Burlington resident and the commissioner closest to the area impacted by a Cedar Rapids casino, also admitted the decision was a challenging one.
“I have been contacted by numerous individuals who I greatly respect and admire that are in the business community that I live, work, and play, and I understand that any decision I make today has an opportunity to impact their lives and financial well-being,” she said. “At the end of the day, I have to ask myself, what is my job and what is my role here?”
Burkhart noted that no commissioner represents a specific geographical area, and thus, “I am an Iowan today and not representing a particular area, and looking at the state of Iowa, and I won’t re-quote the numbers, but all I see is net gain. I see net gain in terms of tax revenues for our state,” she said, adding that studies show a decline of state revenue should Cedar Crossing not become a reality, as bordering states will compete for those gambling dollars.
The potential $4 million in additional revenue to the state “goes into county endowment funds and is distributed amongst those 84 counties across our state based on our tax revenues,” she said, thus benefiting all Iowans.
Vice Chair Mark Campbell also voted to grant the new gaming license, which he considered “a positive step forward for Iowa.”
“After conducting a careful review of the various studies, I can confidently say that the market has the ability to support this project,” he said. “These studies also indicate that there will be market shift; however, it’s important to note that every gaming license issued in Iowa has experienced some degree of cannibalization or market share redistribution, yet the industry continues to thrive. It’s a reality that many licensees were aware of when they applied, fully understanding that temporary shifts might occur.”
“A more equitable distribution of these funds across the state could provide a wider range of communities with the opportunity to benefit,” Campbell added.
The lone dissenter was Alan Ostergren, a lawyer who was still concerned by an objection brought forward by the Riverside Casino and Washington County Riverboat Foundation months ago arguing Linn County’s 2021 gambling referendum contained legally defective language.
“That has not been resolved to my satisfaction, so I don’t believe that this commission has the legal authority to issue this license,” he said.
That issue aside, Ostergren found the Cedar Rapids casino proposal “exemplary”; however, the “negligible increase in revenue to the state as a whole” – well under 1% -- did not justify for him the amount of cannibalization that would occur.
“I think the cannibalization would be too much, but I can also count, and I think we’ll find out, and I hope that I will be proven wrong on that, but I think we’re going to disrupt what is currently in existence too much for the benefits to the Linn County community, which I think will be considerable,” he said.
Last to weigh in was Chair Daryl Olsen, who was satisfied the commission does have the authority to grant the license, which he voted in favor of. He reviewed the seven criteria for granting the license again, noting that the only strike against the Cedar Rapids casino was “there will be market shift.”
“That is the one negative to this entire project, and it is a negative, and that bothers me, but I can’t let one negative stand in the way of all the other positives,” he said.
He added that if the proposed Cedar Crossing were to only be a casino, he would not support it, but “It provides amenities, restaurants, a 1500-person venue for entertainment, arts, and culture, a STEM lab. It is so much more. It’s unique, and it provides much more than gaming, and that’s so important to me.”
Olsen acknowledged a casino moratorium bill that stalled in a state Senate committee on Tuesday and appreciated that legislators allowed the commission to do its job, which is to regulate.
“The last license was issued more than 10 years ago,” he said. “It’s been a long time, and Linn County makes sense to me. I mean, everything about it makes sense.”
The commission granted an initial license valid from Feb. 6, 2025, through Jan. 31, 2028. They expect to see an anticipated construction timeline presented at their June 2025 meeting with substantial completion of the entire project by April 30, 2027. If not completed by October 31, 2027, fines will be imposed.
Moving Forward
On Friday, Feb. 7, Brent Stevens, president of Peninsula Pacific Entertainment, told the crowd gathered for the groundbreaking ceremony they hope the casino will open for New Year’s Eve, 2026.
The Linn County Gaming Association, the nonprofit affiliate and charitable arm of the Cedar Rapids casino, has pledged to distribute 8% of net adjusted gross revenue – about $6 million annually – to nonprofit organizations, 10% of which would be distributed to nonprofits in adjacent counties.
However, should the Iowa District Court respond favorably the to the Riverside Casino’s motion to immediately pause the issuance of the Linn County gambling license, construction on the new facility could be halted.
Whatever happens with the casinos going forward, Mary Audia, Executive Director of the Washington Economic Development Group, remains focused on the bigger picture for Washington County.
“We remain committed to pursuing opportunities that will enhance the quality of life and economic prosperity of Washington County,” she said in a statement on Feb. 6. “We appreciate the support of our community throughout this process and assure our residents that we will continue to advocate for projects and initiatives that benefit Washington County."
Keywords
Cedar Rapids casino, Riverside Casino, license granted, contested, IRGC