Debate heats up over proposed Cedar Rapids casino as Iowa Commission weighs license

The Iowa Racing and Gaming Commission (IRGC) will hear legal arguments in January regarding a petition challenging the validity of a 2021 public referendum that authorized gambling in Linn County. The petition, filed by Riverside Casino & Golf Resort and its nonprofit affiliate, argues that the language of the referendum did not comply with state law, potentially barring the commission from granting a casino license in Cedar Rapids.  

Despite the challenge, the IRGC plans to proceed with its review of the Linn County casino license without interruption, with a final vote scheduled for February 6, 2025.  

The petition claims the 2021 referendum extended provisions from a similar 2013 vote but did not authorize new gambling games as required under the Iowa Code. Mark Weinhardt, attorney for Riverside Casino, argues that voters could not authorize games that did not exist.  

“There were no games that the voters could authorize to ‘continue.’ A proposition requiring approval or defeat of the continuation of gambling games is not a proposition that authorizes the origination of gambling games in the county,” Weinhardt stated in the filing.  

Despite the petition, the commission rejected a request to pause the licensing process, emphasizing the need to hear all arguments before making a decision. It also cited insufficient grounds and procedural requirements.

“We ultimately have to decide whether the various criteria to issue a license had been done,” said Commissioner Alan Ostergren. “We can’t avoid this question.”  

Supporters of the proposed Cedar Rapids casino, including the Linn County Gaming Association and local officials, dismissed the petition as an attempt to stall progress.  

Anne Parmley, president of the association, said the casino would generate $6.3 million annually for nonprofits while providing jobs and boosting the local economy.  

“I am confident, personally, that Linn County voters knew exactly what they were voting for and voted to support a second time around gaming in Linn County,” Parmley said.  

Cedar Rapids Mayor Tiffany O’Donnell also criticized efforts to block the project, describing the opposition as anti-competitive.  

“This is a well-funded campaign that is, really, not surprisingly backed very well by rich casino operators playing out their case against what they call cannibalization. The rest of us call it competition,” O’Donnell told the commission during a public hearing.  

The debate over the Linn County license comes as Iowa lawmakers prepare to reconvene in January. Opponents of the casino are pushing for a new moratorium on gaming licenses, following the expiration of a two-year ban in 2023.  

The IRGC’s February vote leaves lawmakers little time to reintroduce and pass such legislation, adding urgency to the discussion.  

Proponents argue that the Cedar Rapids casino will attract tourists, provide entertainment options, and bolster community projects. Critics, including the Iowa Gaming Association, warn that additional casinos could dilute the state’s gambling market and hurt existing operators.