A new grassroots alliance, Iowans for Common Sense, has begun a campaign to stop a proposed casino in Cedar Rapids, Iowa, citing worries about possible harm to neighboring casinos and nearby towns.
The coalition’s campaign includes an ad in Des Moines inviting locals to sign a petition demanding a statewide moratorium on new gaming facilities.
The proposed Cedar Rapids casino, a $275 million enterprise backed by Peninsula Pacific Entertainment (P2E) and the Linn County Gaming Association (LCGA), will be constructed at the former Cooper’s Mill site in northwest.
The proposal is awaiting a decision from the Iowa Racing and Gaming Commission (IRGC), which will visit Cedar Rapids on November 20 for a review and public feedback, with a final decision likely in February 2025.
The campaign opposing the casino has received backing from a variety of industry stakeholders worried about the economic impact on existing casinos. Alex Dixon, President and CEO of Q Casino in Dubuque, has expressed concern, claiming that a new casino will jeopardize the money required to preserve his facility’s services to Dubuque.
“We fund 10% of the city of Dubuque’s general operating budget,” Dixon informed me. “Any reduction in revenues that we receive is directly going to impact the taxpayers of the city of Dubuque.”
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According to Iowans for Common Sense, over two-thirds of Iowa citizens oppose the planned Cedar Rapids casino, and more than half of Cedar Rapids locals agree.
According to coalition spokesperson Zachary Harnden, “People across the state value what our current casinos bring to their communities, but they oppose further expansion.” Cedar Rapids citizens, in particular, are adamantly opposed, and we’re here to help them raise their voices.”
Other gambling sector leaders are expressing this sentiment. Patty Koller, Executive Director of the Washington County Riverboat Foundation, highlighted the possible impact on nearby casinos and non-profits. “If Cedar Rapids is awarded a license, it would affect nearby casinos and the non-profit organizations that rely on them. These non-profits have invested millions in the corridor, benefitting communities well beyond its borders.
However, P2E and the Cedar Rapids Development Group claim that the proposal is consistent with the community’s goal. The Cedar Rapids Development Group’s President, Jonathan Swain, blasted the Iowans for Common Sense poll, claiming it was financed by industry competitors.
“The Iowans for Common Sense poll is not a credible reflection of public opinion – it was conducted not by a grassroots organization, but coordinated by an individual with personal ties to one of the state’s leading competitors,” Swain told the newspaper.
Swain emphasized the project’s community support and permission from local authorities, citing two Linn County referendums in 2013 and 2021 that resulted in a majority support for casino construction.
“The Cedar Crossing Casino and Entertainment Center enjoys strong, long-standing community support,” the mayor remarked. “With two separate voter referendums in 2013 and 2021 overwhelmingly approved by Linn County residents, the people of Cedar Rapids have made it clear they want this development.”
Cedar Rapids Development Group’s proposal includes an 8% charity donation of its earnings to local NGOs, which is expected to generate more over $6 million per year for community programming in Linn and surrounding counties. This donation exceeds the state’s 3% threshold.
The IRGC has previously refused proposals for a Cedar Rapids casino, citing worries about cannibalizing earnings from adjacent casinos. According to P2E’s most recent market research, a Cedar Rapids casino might earn $80.2 million in additional revenue, while adjacent casinos would lose $27.8 million, with Riverside Casino seeing the greatest impact.
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