Cedar Rapids Casino Developers to Apply for Iowa Gaming License

Posted on: June 26, 2024, 02:31h. 

Last updated on: June 26, 2024, 02:35h.

Devin O'Connor @CasinoorgDevinO Read More
Expertise: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics.

The would-be developers of a commercial casino in Iowa’s Cedar Rapids tell Casino.org that they’ll bid for a state gaming license as soon as the moratorium on new concessions expires at the end of the month.

Cedar Rapids casino Iowa gaming
Iowa’s Cedar Rapids has been targeted for a casino development for more than a decade. The would-be developers say they’ll apply for a casino license once the state’s moratorium on new gaming permits lifts. (Image: Wikimedia)

Peninsula Pacific Entertainment (P2E) and the Linn County Gaming Association will apply together to the Iowa Racing and Gaming Commission (IRGC) next month. Iowa’s two-year moratorium on allowing the state gaming regulatory agency to grant additional gaming privileges expires on June 30, 2024.

The time is now for Cedar Crossing,” P2E Board Member Jonathan Swain said of the casino pitch dubbed 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.”

The Iowa Legislature adjourned in April without extending the casino moratorium the General Assembly passed in 2022. The moratorium came at the request of the state’s 19 current casinos, which argued a halt on additional competition was warranted after gaming expanded in neighboring Nebraska.

House lawmakers voted in favor of extending the moratorium for five years through June 2029, but the Senate voted against the plan.

Cedar Rapids Bid

Cedar Rapids, Iowa’s second-most populated city with about 138K residents, has been targeted for a casino for more than a decade.

The Cedar Rapids Development Group counts 80 local businesspeople as investors in the casino project. The consortium has partnered with P2E to help bring the casino to reality.

The Los Angeles-based firm previously owned and/or managed the Colonial Downs Racetrack and Rosie’s brand of historical horse racing (HHR) parlors in Virginia. P2E additionally owned Del Lago Resort Casino in Upstate New York, and operated Hard Rock Hotel & Casino in Sioux City, Iowa.

In 2022, Churchill Downs, Inc., acquired P2E’s gaming portfolio for $2.75 billion. Since unloading its properties, P2E has focused on new investment opportunities.

Though P2E and the Linn County Gaming Association didn’t detail specifics of what its Cedar Rapids casino blueprint might look like, earlier proposals have suggested a $250 million investment. The mockups have encompassed a casino space with roughly 1,000 slot machines, 60 live dealer table games, a sportsbook, several restaurants and bars, and a 1,500-seat concert hall.

The Cedar Rapids Development Group previously attracted the support of one of the city’s most famous athletes, PGA Tour golfer Zach Johnson. An earlier plan for Cedar Crossing included a sportsbook and taproom called “The Clubhouse by Zach Johnson.”?

Community Benefits?

In reestablishing its casino vision, P2E and the Linn County Gaming Association are pledging to help the city through the resort’s operations.

If granted a license, Cedar Crossing plans to support local nonprofits with contributions of 8% of its annual gaming revenue — the highest in the state. While Iowa mandates that licensed casinos donate at least 3% to nonprofit organizations, Cedar Crossing aims to significantly exceed this requirement to make a meaningful impact in the community,” the release to Casino.org detailed.

The developers estimate the casino could direct between $5 million and $7 million annually to local nonprofits.