Iowa state lawmakers to contest over opening of new state casinos in next legislative session

Iowa’s 2025 legislative session could revive the debate surrounding the opening of new casinos in the state now that a provision blocking new gambling establishments has been lifted.

Back in 2022, state lawmakers put a two-year moratorium on casinos, and the House tried to extend the block for another five years last session. However, it failed after senators did not act on it, which resulted in the block's expiration on July 1.

“The State House, the legislature there, feels very strongly that there should be a moratorium and that Linn County should not have a casino that might cannibalize other casinos,” Iowa Republican Party Chair Steve Grubbs told Local 4 News. However, Grubbs said he doesn't think that the moratorium will pass "just because the Senate doesn’t look like they have an interest in standing in the way of additional commerce.”

For his part, Democratic Political Consultant Kevin Perkins said: “I was never a big proponent of casinos bringing in a positive economic boost to locations. But it’s part of what our economy is, and because of that I think if you’re going to have competition, you should have competition.”

Meanwhile, some Iowa lawmakers are considering plans to restrict new casinos from coming to the state. State Rep. Bobby Kaufmann (R-Wilton) has expressed concern over a new casino that could impact revenue at Riverside and put his constituents' jobs at risk, according to CBS2Iowa. 

"There's a movement in my caucus for folks that are not a fan of gambling, and then there's a movement of folks in my caucus that are concerned about cannibalization, and so those two groups joined together for that amendment I proposed which is why it passed the House," Kaufmann said, in reference to the legislation that tried to extend the block for another five years last session.

"Whether it has to advance and what form it's in is certainly up for debate, but I didn't floor manage it last year, earlier this year, you know, just for it to go away. So, I certainly plan to file legislation again."

However, State Rep. Jeff Cooling (D-Cedar Rapids) has pushed back on more restrictions. The Democrat said he supports Linn County's request for a new casino and argued the competition is good for the state.

"The residents of Linn County have spoken twice now about their desire to have that casino within Linn County in Cedar Rapids and the legislature should stay, stay out of it and let the process that is the law currently take place," Rep. Cooling said.

Rep. Cooling opposed Kaufmann's amendment and said more casinos would boost gaming revenue in the state while supporting the community through new jobs and tourism attractions.

"Construction jobs and the quality jobs that we'll create to build and maintain the casino are really important for our community," Rep. Cooling said. "Plus, the fact that this particular group wants to give the most in the state as far as their contributions to nonprofits at an 8% of profits."

While the Iowa Gaming Commission plans to vote on new casino applications in February, Rep. Kaufmann said he is not ruling out the potential for a new moratorium before then. "What the commission comes up with will certainly have an impact on us but that does not mean that we will not be pursuing any sort of a moratorium whether it's multiple years or a permanent one," Rep. Kaufmann said.