Linn County casino supporters will learn the fate of their gaming license application at a special Iowa Racing and Gaming Commission meeting Feb. 6, 2025, commission members unanimously decided at a virtual meeting Friday, July 12.
The commission called the special meeting after learning at their July 8 regular meeting that Peninsula Pacific Entertainment (P2E) and the Linn County Gaming Association (LCGA) plan to file a joint gaming license application with the IRGC by the end of July, as well as their own market study on the impact of a potential new casino.
At Friday’s meeting, IRGC chair Daryl Olsen proposed a full timeline for the commission’s consideration of a Linn County application – a timeline which was unanimously approved by the full five-member commission.
Key dates on that timeline:
- Aug. 15 – Deadline for Request for Proposals (RFPs) for research firms interested in preparing a market study on the impacts of a possible Linn County casino on the state’s overall gambling landscape.
- Aug. 29 – Presentations by gaming market study vendors at the commission’s regular meeting in Riverside, followed by the selection of a vendor to complete the study.
- Sept. 16 – Deadline for any new gaming license applications.
- Oct. 3 – Presentations by new gaming license applicants at the commission’s regular meeting in Bettendorf.
- Nov. 20 – A site visit and public input session in Cedar Rapids, at a location to be determined.
- Nov. 21 – Background reports from the Iowa Division of Criminal Investigation (DCI) could be reviewed in executive session at the commission’s regular meeting in Burlington.
- Dec. 30 – Deadline for submissions of market studies, which would allow commissioners time to review the market studies over the holidays, Mr. Olsen said.
- Jan. 23, 2025 – Public presentation of the market study at the commission’s regular meeting in Jefferson.
- Feb. 6, 2025 – A commission vote in a special meeting to approve or reject the Linn County gaming license application.
Mr. Olsen said he felt it was important to complete the review of LInn County’s casino license before the commission’s regular meeting in March – historically a “horribly long” meeting, because the commission considers license renewals for all of the state’s existing gaming operators at that meeting.
Traditionally, the commission has reviewed new gaming license applications in a six- to nine-month time frame, and IRGC administrator Tina Eick confirmed the schedule approved by the commission falls within those parameters.
IRGC commissioner Alan Ostergren said he felt it was important for the review process to include ample opportunity for public comment, especially in written form.
“People are going to be free to tell us what they think about this between Nov. 20 and Feb. 6,” Mr. Ostergren said. “It’s not like your last chance to give input to the commission is going to be in November. We’ll listen to Iowans up until we make the licensing decision. That’s certainly my hope and expectation. I think we all share that.”
“That’s the advantage of setting a timeline,” Mr. Olsen added. “Everyone understands the timeline we’re working under. There are no surprises. That gives everyone the opportunity to get that information or contact us or do whatever they want to do at that point in time.”
Ms. Eick said IRGC staff have already been receiving and compiling input on a proposed Linn County casino, and that input will be provided to commission members in either written or electronic form.
The door was opened for a new Linn County gaming license application after a two-year state gaming license moratorium imposed by the Iowa Legislature expired June 30.
The IRGC has twice rejected casino proposals for Linn County, in 2014 and 2017, after commissioners largely sided with opponents who argued the state’s gaming market was saturated and a new Linn County casino would “cannibalize” revenue from existing state-licensed casinos.
But all five members of the IRGC are newly-appointed since the last decision. And Linn County voters have approved two referendums supporting gaming in Linn County, most recently in November 2021.
As a result of the second vote, developers are now allowed to seek a casino license for the county in perpetuity, without returning to voters for further approvals.
Developers and supporters first unveiled plans for a Linn County casino in Cedar Rapids, dubbed “Cedar Crossing,” in May 2022.
As proposed, Cedar Crossing, with a budget now estimated at $275 million, would incorporate Iowa’s 20th state-licensed casino, as well as bars and restaurants featuring celebrity chefs.
If approved, the casino would be built on city-owned property between F and I avenues NW and First and Fifth streets NW. Most of that property was previously occupied by the Cooper’s Mill restaurant and Best Western Hotel before those facilities were demolished due to damages sustained in the 2008 flood, and the property was subsequently acquired by the city.
Kim Pang, P2E’s vice president of development, has more than 30 years of experience in the gaming industry, including previous stints as general manager at Diamond Jo Casino in Worth County, Iowa, and Treasure Island Resort and Casino in Red Wing, Minnesota.
Mr. Pang said Friday he expects several factors will positively influence the IRGC in their review of Linn County’s gaming application, including “the location, the property, the community interest in getting a casino license, and the opportunity to bring tourism to Linn County, the second largest county in Iowa.”
He also said the IRGC’s market study will be key in addressing previous concerns about a new casino cannibalizing revenue from established gaming operations, pointing to a previous study that showed a Linn County casino would provide a net increase of $51 million in new gaming revenue for the state.
“It’s a positive in light of what’s going on with the expansion of gaming in Nebraska and Illinois,” he said. “That’s impacted the state (gaming revenue) to the tune of $256 million annually. $51 million would help, but it may not take care of that $256 million shortfall.”
That shortfall, he said, includes $193 million in net Iowa gaming losses once Nebraska’s six new casinos are completed, as well as a $56 million impact from Illinois casinos.
Ms. Parmley again stressed the impact of an 8% allocation of gaming revenues to area nonprofit agencies from a Linn County casino. That percentage is well above the state’s minimum 3% allocation, she said, and would be the highest in the state by a large margin.
“My hope is that that’s extremely important to the commission,” Ms. Parmley said. “I’m sure all those folks are community-minded, and they understand what those kinds of funds can do for a local community, our county and adjacent counties, as far as funding programs and projects that help individuals, groups and the community become more vibrant. It’s such a critical part of the equation.”
Mr. Pang said at $275 million, Cedar Crossing would represent the largest-ever initial investment in a single casino operation. He said if a gaming license is granted, he would expect a buildout timeline of 14 to 18 months for a new Cedar Rapids casino.
In terms of local economic impact, he said a new casino would provide significant opportunities for new construction jobs and ongoing staffing. He also said casino operations have historically been known for buying local, noting that according to IRGC reports, 96% of all products in Iowa casinos are bought from Iowa vendors, to the tune of about $1 billion annually.
“Cedar Rapids had been very patient,” he said. “We’ve gone through this process numerous times, and we’ve been very patient. We believe this is the time for Cedar Crossing to come to fruition.”
