$275M Cedar Rapids Casino Greenlit After Iowa Gaming Commission Gives Blessing

A $275 million casino is set to transform Cedar Rapids, promising a significant boost to the local economy and entertainment landscape. The Iowa Racing and Gaming Commission (IRGC) has officially approved the development of Cedar Crossing Casino, marking a pivotal moment after state lawmakers opted against a licensing moratorium.

The decision was finalized just two days after the Iowa Senate declined to extend the IRGC’s authority to restrict the issuance of new casino licenses for the next five years. This approval paves the way for Cedar Crossing Casino & Entertainment Center, a comprehensive gaming and entertainment destination planned for a 25-acre site west of the Cedar River in Cedar Rapids, spanning between F and I Avenue NW and First and Fifth Streets NW.

“We are deeply grateful to the commission for their confidence in our vision and for enabling Cedar Crossing to become a reality,” stated Jonathan Swain, a board member of Peninsula Pacific Entertainment (P2E), the gaming operator collaborating with the Cedar Rapids Development Group – a coalition of 80 local business leaders. “This is a major milestone in a long-term project, and we are committed to fulfilling our promise to Linn County and the State of Iowa.”

Cedar Rapids Mayor Tiffany O’Donnell, a strong advocate for casino development within the city, hailed the IRGC’s approval as “an exciting new chapter” that will generate numerous jobs, create economic opportunities, and offer diverse entertainment options for residents and visitors alike.

The IRGC’s vote in favor of the project was 4-1, with Commissioner Alan Ostergren casting the dissenting vote. The Cedar Rapids area has been actively pursuing gaming opportunities for over a decade, making this approval a culmination of years of effort.

Concerns Raised by Competitors

The Cedar Crossing Casino project received the green light despite two independent studies indicating that approximately half of its annual gross gaming revenue could potentially be diverted from existing casinos in the region. Riverside Casino & Golf Resort is anticipated to be the most significantly impacted.

Dan Kehl, CEO of Elite Casino Resorts, which operates Riverside Casino, expressed disappointment with the commission’s decision. “While we acknowledge the time and effort invested by the commission and staff, we still maintain that the requirement for a local referendum has not been fully met. We are currently reviewing our options moving forward.”

In November, legal representatives for Riverside challenged the legality of the casino gambling authorization based on a 2021 local ballot referendum in Linn County. This referendum asked voters whether they wished to “continue” allowing gambling in the county. However, since casino gambling was not legally operational at that time, Riverside’s legal team argues that the referendum did not constitute a valid endorsement.

The IRGC had previously declined to issue a declaratory order in response to Riverside’s petition, leaving the legal status of the project uncertain until now.

Cedar Rapids Casino: Key Features and Benefits

The Cedar Crossing Casino will feature a comprehensive gaming floor boasting 700 slot machines, 22 live dealer table games, and a dedicated sportsbook. To complement the gaming experience, three distinct restaurants are planned: World’s Fare, River’s Edge Smokehouse and Tap, and Clubhouse by Zach Johnson. Notably, Zach Johnson, a Cedar Rapids native, is a renowned golfer who secured victories in the 2007 Masters and the 2015 Open Championship.

Beyond gaming and dining, the development will include a large 1,500-seat entertainment venue designed to host prominent performances and events. An arts and cultural center aims to become a vital hub for community engagement. Furthermore, a state-of-the-art STEM lab, accessible via a separate entrance from the casino, is intended to inspire and educate future innovators.

Mayor O’Donnell emphasized the significant role the casino will play in revitalizing the northwest side of Cedar Rapids, an area that remains largely undeveloped 17 years after the devastating Iowa flood of 2008 – often referred to as “Iowa’s Katrina.”

The development team anticipates that construction of the Cedar Crossing Casino will take approximately 18 to 22 months. This project is expected to generate substantial economic benefits for Cedar Rapids, including increased tax revenue and a significant number of new jobs.

Conclusion

The approval of the Cedar Crossing Casino represents a major victory for Cedar Rapids, promising considerable economic growth and entertainment opportunities. While concerns have been raised by existing casino operators regarding potential revenue impact, the project’s developers are confident in its positive contribution to the region. The development is expected to create numerous jobs, stimulate local businesses, and revitalize a key area of the city. With construction slated to begin soon, Cedar Rapids is poised to welcome this exciting new destination.