CEDAR RAPIDS, Iowa (KCRG) – A proposed Cedar Rapids casino could generate upwards of $120 million in gaming revenue each year, but it would come at a cost to other casinos in the state.
Opponents of a new casino say Iowa’s market is saturated, while casino supporters point toward the money and development it could bring.
Two market studies say Cedar Crossing, the proposed new casino and entertainment center in Cedar Rapids, would take between $55 and $68 million annually from other casinos in the state.
The one that stands to lose the most is Riverside Casino in Washington County.
“If you look at a nearly 30% reduction on our revenues, extrapolating that on our staff of nearly 700 employees here, I mean we’re talking 200 employees, 200 jobs on the line,” said Damon John, Riverside Casino and Golf Resort general manager.
One study estimates Riverside casino is set to lose $34 million annually to cannibalization, but what one side views as cannibalization the other sees as competition.
“Well I’m a free market person, and so I think competition is good. It raises all tides,” said Anne Parmley, president of the Linn County Gaming Association, the group behind the push for Cedar Crossing.
Iowa law requires casinos to donate a percentage of their revenue to area nonprofits. Riverside said if it takes a big hit to its revenue, its charitable contributions will suffer.
“If Cedar Crossing were to go through we’re talking $1.32 million dollars on an annual basis from our commitment to the Riverboat Foundation that would be evaporated,” John said.
On the other side, the Linn County gaming association says Cedar Crossing will contribute 8% of its gross revenue to nonprofits, well above the state requirement.
According to one of the market studies, that means nonprofits in Cedar Rapids could get more than six million dollars annually.
“There is so much competition for the dollars, and the need is growing. Whether it’s human services, the arts, health and education, all those needs are growing as our population grows,” Parmley said.
The Iowa Racing and Gaming Commission is set to decide on a casino license for Linn County on February 6th. That’s assuming lawmakers don’t pass a moratorium and Riverside’s petition fails.
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