Published on: December 18, 2024, 01:45h.
Last updated on: December 18, 2024, 01:45h.
City officials in Cedar Rapids have approved a host agreement for a potential casino resort.
The Cedar Rapids City Council has approved a resolution in an 8-1 vote, supporting the Casino Development Agreement with the Cedar Rapids Development Group (CRDG) and the Linn County Gaming Association. The agreement gives exclusive backing to the construction of a casino development, with CRDG as the designated partner.
If the Iowa Racing and Gaming Commission (IRGC) grants a casino license for Cedar Rapids, CRDG will acquire approximately 25 acres of city-owned land at fair market value. The agreement stipulates that 2.25% of the casino’s gross gaming revenue will go to Cedar Rapids.
In addition to the local tax share, CRDG has pledged 8% of net gaming proceeds to the Linn County Gaming Association for charitable causes. The state will also tax the casino, taking 22% of its annual gross gaming revenue from riverboat and land-based casinos.
The host agreement includes provisions for flood mitigation, a traffic study, and necessary site improvements to be funded by CRDP.
Community Support
Seven of the eight Cedar Rapids City Council members voiced their support for introducing a casino to the city. The $275 million Cedar Crossing Casino project also received approval from Mayor Tiffany O’Donnell.
CRDG President Jonathan Swain expressed gratitude for the city council’s support, stating, “Cedar Crossing will be a transformative addition to the region by providing premier entertainment options, creating economic opportunities, and providing nonprofit support.”
Councilor Ashley Vanorny was the sole dissenting vote against the Casino Development Agreement due to concerns about indoor tobacco smoking in the casino.
CRDG is made up of around 80 local investors who have been working to secure a gaming concession from the state for over a decade. Previous gaming applications for Cedar Rapids were denied in 2014 and 2017.
After a two-year moratorium, the IRGC is now reviewing the feasibility of allowing a casino in Cedar Rapids following the expiration of the moratorium on July 1, 2024.
CRDG is collaborating with Peninsula Pacific Entertainment, with Swain serving as a board member of the gaming developer and operator based in Los Angeles.
The IRGC is currently evaluating market studies on the potential impact of a casino in Cedar Rapids. Other casinos in the state are predominantly against the Cedar Crossing Casino project, fearing it will draw away their customers.
Cedar Crossing is a proposed 110,000-square-foot facility with gaming, restaurant, event, and cultural center amenities. The IRGC is scheduled to vote on the casino bid on February 6, 2025.
Legal Dispute
Elite Casino Resorts, owner of Riverside Casino & Golf Resort, is challenging the legality of gambling in Cedar Rapids.
Cedar Rapids conducted successful local referendums in 2013 and 2021 supporting a casino. The 2021 referendum authorized casino gaming in Linn County if the IRGC issues a license.
Elite’s attorneys argue that the 2021 referendum was invalid as there were no existing casino games to allow to continue, rendering the vote meaningless.
The IRGC is reviewing this legal challenge along with state attorneys.