Two of the leading figures in the years-long campaign to bring a casino to Cedar Rapids offered their perspectives on recent developments in the process, following the Iowa Racing and Gaming Commission’s Jan. 23 meeting at the Wild Rose Casino in Jefferson.
At that meeting, commissioners decided not to consider a petition for declaratory relief filed by the Riverside Casino and the Washington County Riverboat Foundation, seeking to block the commission’s consideration of a Linn County gaming license.
As a result, the IRGC is still scheduled to issue a decision on Linn County’s gaming application at a commission meeting Feb. 6 at Prairie Meadows Casino in Altoona.
Another potential obstacle awaits, however, as bills have been introduced in both the Iowa House and Senate seeking to impose a five-year moratorium on consideration of new gaming licenses in the state. If a bill is passed before Feb. 6, the IRGC would be unable to vote on Linn County’s application.
Cedar Rapids Mayor Tiffany O’Donnell and Todd Bergen, vice president of the Linn County Gaming Association – the local group that would distribute 8% of net proceeds from the $275 million casino to area nonprofit agencies – spoke recently about the application process, how it’s unfolded to date and what they think might happen on, or before, Feb. 6.
Tiffany O’Donnell
Ms. O’Donnell framed Cedar Rapids’ ongoing fight for a casino in biblical terms.
“This is David versus Goliath,” she said bluntly in an interview after the IRGC’s Jan. 23 meeting.
In this case, Cedar Rapids and its casino supporters would be considered “David,” being opposed by the state’s existing casinos and operators, or “Goliath,” she said.
She continued that analogy in assessing the latest effort to impose a statewide legislative moratorium on consideration of new gaming licenses. A previous two-year moratorium approved by lawmakers expired in June 2024. A late-session move in January 2024 to impose a new moratorium failed when the Iowa Senate declined to take up the measure.
But the moratorium bills in the House and Senate are providing a new and uncertain challenge, Ms. O’Donnell said.
“I don’t think we can predict what the Legislature is going to do,” Ms. O’Donnell said. “We know there’s a process in place, and we’re doing our best to follow the rules. The idea that the Legislature can, once again circumvent the process is incredibly disappointing. I’m not convinced that’s going to happen, truthfully … I just continue to ask the Legislature to get out of the way and let the commission do its work.”
Several market studies have indicated that the Cedar Crossing casino would get a significant portion of its revenue – nearly 60% – from existing state-licensed casinos, particularly the Riverside Casino in Riverside, the Isle of Capri in Waterloo and the Q Casino and Diamond Jo Casino in Dubuque, as well as from the tribally-operated Meskwaki Casino near Tama.
But perhaps predictably, Ms. O’Donnell said she feels that the IRGC’s proper decision should be obvious, based on Iowa’s overall gaming revenue potential.
“If the state’s going to rely on gaming revenue, then I’ve got a pot of $60 million in new money waiting to be used,” she said. “And it can be used for many things. But one of the things I know is important is property tax relief for hard-working Iowans. Right now, it seems like we keep looking at the surplus to fill the gap. That’s not sustainable, but $60 million is. So at what point are we going to stop looking out for self-interested casino cartels, and start looking out for the people of Linn County and the entire state of Iowa?This is going to take courage by lawmakers and the Racing and Gaming Commission to stand up for what’s right.”
Dan Kehl, majority owner of Elite Casino Resorts, which has a majority ownership share of Riverside Casino, has been particularly vocal in his opposition to a Cedar Rapids casino, based on projections that Riverside stands to lose 26% of its revenue – as much as $34 million – to a new Cedar Rapids competitor.
But Ms. O’Donnell said she has doubts about that projection, based on cannibalization projections for the Wild Rose Casino in Jefferson that largely failed to materialize. And, she said, competition is at the heart of economic development projects.
“The state should not be picking winners and losers,” she said. “I don’t doubt that there will be heavy competition between our casinos. But I also know Dan Kehl is a great businessman. He can compete, and he will compete. And the idea that Cedar Rapids has to go without because we want to protect our turf is not only short-sighted from a statewide perspective, but it’s irresponsible if we’re going to be a state that’s going to rely on gaining revenue.
“He runs a very strong business,” she added. “And why people have so little faith that he could compete against another casino is beyond me. I think he knows how to compete.”
Ms. O’Donnell said she remains optimistic about Linn County’s chances of receiving a gaming license, but since Linn County has had license applications rejected by the IRGC twice before, in 2017, she said she’s taking nothing for granted.
“We’ve got new arrows and new bullets being thrown in our direction every day,” she said. “It’s going to take courage for lawmakers who see it for what it is to stand up. And It’s going to take courage for our Racing and Gaming Commission to see the attacks that are happening for what they are … we’ve been underestimated time and time again, and this is no different. This is still David versus Goliath, and we know how that story ended, so I’m going to put my money on David.”
Todd Bergen
As former chair of Priority One, the economic development arm of the onetime Cedar Rapids Chamber of Commerce, Todd Bergen says he’s long been convinced that a Cedar Rapids casino would be an economic driver for the Cedar Rapids area and the entire state of Iowa.
Nothing that he’s heard about the latest push for a casino in Cedar Rapids has altered his viewpoint.
“My reaction is pretty consistent with the way it’s been ever since we started the process, that the economic reasons for building a casino in Cedar Rapids are significant,” he said. “The positive impact that will be generated by building a casino in Linn County, for Cedar Rapids and for the state of Iowa, is a very large number.”
In particular, Mr. Bergen pointed to the results of a recent market study on the overall impact of a Cedar Rapids casino in the decade after construction begins.
The study, conducted by Decision Innovation Solutions (DIS) on behalf of Peninsula Pacific Entertainment, the developer of the proposed casino, projects an overall economic impact of $2.25 billion over the 10-year period, including $257 million during the construction phase and $183 million in the first year of operations.
For Mr. Bergen, the study, along with the two most recent market studies commissioned by the IRGC, only reinforce the potential revenue potential from a Cedar Rapids casino.
“Yes, they talk about the fact that the market is mature,” he said. “But when they point out the fact that you can generate an additional $60 to $80 million in state gaming revenue every year, that means it’s mature, but we’re not maximizing our potential, and the way to maximize that potential is to build a casino in the second-largest city in Iowa, Cedar Rapids. I don’t know commissioners will vote. They seem very committed to making a good decision and analyzing information. But I think the information was compelling, and it says a lot about the potential impact of of Cedar Rapids.
Regarding the petition from Riverside Casino, Mr. Bergen said he didn’t feel there was a lack of clarity in Linn County residents’ minds when they voted by a margin of 54 to 46 percent to permanently authorize gaming in the county.
“I know clearly what the election was about, and the people of Linn County know what the election was about,” he said. “I don’t think anyone in Linn County would say ‘boy, I just didn’t understand it.’ I think the folks in Riverside are trying very hard to create an argument that would make it harder for Cedar Rapids seven to be considered for a casino, and that’s their prerogative. But from my perspective, Linn County clearly supports having a casino. The business community supports it, the population supports it, and we should move on to a decision on whether or not to be granted a license.”
Several obstacles have been initiated to prevent a Linn County casino from being established, but Mr. Bergen gave credit to Peninsula Pacific Entertainment (P2E) and the Cedar Rapids Development Group for their decade-long perseverance.
“It’s a lot of noise,” he said. “It says a lot about the P2E people through all of this, that they’ve stuck with their plan. They’ve been committed to Cedar Rapids. They’ve been committed to building a world-class facility to maximize the potential for the state. They’re quality operators with a long history in Iowa. Other players may have said ‘okay, I’ve had enough,’ but not them. They’ve stepped up, and I really respect them for it.”
Mr. Bergen also stressed the importance of redeveloping the former Cooper’s Mill site, where the casino would be located. The land has sat vacant since the former hotel and restaurant were bulldozed following the 2008 flood.
“The economic impact of the Cooper’s Mill site that’s been vacant for 16 years after the flood, the ability to develop that site, (is important),” he said. “From my perspective, I understand inherently how difficult it is to try to come up with something to put there. This is a unique opportunity for the city. Independent of all of the other important positive reasons why you would want to do it, that’s a dramatically important issue for the city. It’s huge to have that site generating taxes. But it’s very difficult to come up with another option if it’s not this. It’s been there for 16 years and nothing’s happened. This is the opportunity. We need to make sure we do everything to see it through, to try to maximize that opportunity.”
