Iowa lawmakers introduce casino moratorium bills that could thwart $275M Cedar Rapids project

Iowa lawmakers have introduced bills that could block a proposed Cedar Rapids casino by creating a five-year moratorium on state licenses. The legislations were introduced by Republicans in both chambers of the Iowa Legislature this week, potentially thwarting backers' hopes for a new $275 million gambling facility.

Sen. Jeff Reichman, a Republican from Montrose, introduced Senate File 76 on Wednesday, which would prohibit issuing new casino licenses in the state through June 30, 2030. Reichman said gambling in Iowa "has grown and grown" over the last 40 years, arguing that further expansion could be counterproductive. It is currently unclear if there is enough support at the Iowa Senate to pass the bill.

Meanwhile, Rep. Bobby Kaufmann, R-Wilton, chair of the House Ways and Means Committee, said House Republicans intend to fast-track their own bill, reports The Gazette. Kaufmann, who filed separate legislation Thursday in the House, said he worries about potential job losses for his district, which is nearby the Riverside Casino & Golf Resort, should a new facility in Cedar Rapids be built.

Cedar Rapids casino opponents, citing market studies ordered by the Iowa Racing and Gaming Commission, argue that the proposed venue would largely rely on pulling patrons from other state casinos. "The benefit does not outweigh people losing their jobs, in my personal opinion," Kaufmann said, as per The Gazette's report.

Iowa is currently home to 19 commercial casinos and four tribal casinos, which support a moratorium, saying the market is saturated. But while they argue a new facility would cannibalize their revenues, Cedar Rapids casino backers for their part highlight the projected additional $60 million in new gaming revenue for the state and the economic impact on the local economy.

Cedar Rapids officials argue Iowa has seen growing competition from neighboring states, and that a new casino could help Iowa offset losses to Illinois and Nebraska — where Elite has recently built a new casino. However, they face a tough battle, with the Iowa Racing and Gaming Commission having already rejected proposals to bring a casino to Cedar Rapids twice, in 2014 and 2017.

Kaufmann said he expects to quickly pass the proposal out of committee early next week and get it to the House floor. The intent is to get it passed by the Senate and send it to Gov. Kim Reynolds’ desk before the gaming commission decides at its Feb. 6 meeting on whether to grant a license for a Linn County casino. Gov. Kim Reynolds has not publicly indicated where she stands on the issue.

House Speaker Pat Grassley told reporters Thursday he expects Senate lawmakers will take up the House after it’s passed. Kaufmann also said he’s had “productive conversations” with Senate lawmakers, with "a large number of senators" wanting "to see this happen.”