Iowa: P2E renews casino plan for Cedar Rapids as moratorium on gaming licenses ends

With the impending expiration of Iowa's two-year moratorium on new gaming licenses, Peninsula Pacific Entertainment (P2E) and the Linn County Gaming Association (LCGA) have announced plans to apply for a gaming license from the Iowa Racing and Gaming Commission (IRGC). The moratorium is set to end on June 30.

P2E and LCGA are seeking to move forward with their proposed Cedar Crossing Casino project in Cedar Rapids, estimated to cost $250 million and cover 160,000 square feet. The announcement marks the latest chapter in the years-long effort to bring a casino to Linn County.

P2E Board Member Jonathan Swain said: "The time is now for Cedar Crossing... Linn County residents have overwhelmingly passed two gaming referendums and they have been patient. With the moratorium expiring soon, we look forward to bringing an unprecedented casino gaming and entertainment destination to Cedar Rapids."

If developed, the proposed casino has pledged to contribute 8% of its annual gaming revenue to local non-profits, a figure significantly higher than the state's 3% requirement.

Cedar Rapids Mayor Tiffany O'Donnell has voiced support for the casino project, highlighting its potential economic benefits. "It would bring immediate jobs certainly in the construction of the facility. We have workers at the ready for that. It would also provide hundreds of jobs inside, you can’t understand the power of economic development in terms of tourism, and amenities for our city," she said in an April interview with KWWL.

Despite previous rejections of casino proposals for Linn County in 2014 and 2017 due to concerns about market saturation, the recent changes in the IRGC's composition have renewed hopes for approval. A 2021 study commissioned by the commission suggested that a Cedar Rapids casino could increase statewide gaming revenue by $51 million.

LCGA President Anne Parmley underscored the significance of the upcoming IRGC meeting on July 8, where the commission will discuss the expiration of the moratorium.

"We are pleased the Iowa Legislature made the decision to not extend the moratorium," said Parmley. "That decision allows the Iowa Racing and Gaming Commission to do what it has almost always done – review the landscape of Iowa’s gaming industry and make the best decision for the state of Iowa."

In addition to its gaming components, the Cedar Crossing casino, if granted a license, will feature a range of amenities including bars, restaurants with celebrity chefs, and event spaces.

Support for the casino extends beyond local officials and trade unions, with the Cedar Rapids City Council approving preliminary terms for the project's location in July 2023. The city has an agreement with the Cedar Rapids Development Group and LCGA to develop the casino on city-owned property, subject to conditions like flood control accommodations and traffic studies.