The City of Cedar Rapids is moving forward with plans for a $275 million dollar casino after the Iowa Racing Gaming Commission authorized a gaming license for Linn County on Feb. 6. After two failed attempts, the commission approved the application with a 4-1 vote.
The project’s approval has also come with pushback and concern, with questions surrounding the necessity of a casino in the area and how it would affect the existing Riverside Casino in Iowa City.
Tina Eick, administrator of the Iowa Racing Gaming Commission, acknowledged the potential effects of the new development on Riverside Casino.
“I think certainly the market studies that were done by the two different firms that were hired by the commission as a part of this application process did indicate that there could be some market share redistribution,” she said.
The firm, Marquette Advisors and Innovation Group, pointed to potential negative effects on existing casinos with the new development.
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Iowa City’s Riverside Casino and the Washington County Riverboat Association filed a formal lawsuit on Feb. 6 in an attempt to halt progress on the Cedar Rapids project.
The Racing and Gaming Commission voted to deny consideration of a petition following the lawsuit.
Riverside Casino declined to comment on the developments, only providing its Feb. 6 statement from Dan Kehl, CEO of Elite Casino Resorts.
“We are disappointed by the commission’s decision today,” he said. “We appreciate the time and effort the commission and staff put into this, but we do have questions and concerns, as we still believe the referendum requirement has not been met and are reviewing our next best steps.”
The casino, developed by Peninsula Pacific Entertainment, or P2E, will feature 700 slot machines and 22 table games. However, Kim Pang, vice president of development at P2E, said a new Cedar Rapids casino is about more than gambling.
“It’s about entertainment. It’s about adding another reason for people to come to Cedar Rapids,” he said.
Pang continued elaborating on the amenities he said would make the casino stand out. The most prominent plans include an Arts and Culture Center, a STEM Lab, and a 1,500-person entertainment venue.
“If we can bring different demographics at different times of the day, that means we’ve met our goal of being everything to everyone. We believe it is not just about the gambling anymore,” Pang said.
Pang also emphasized the importance of giving back to the Cedar Rapids community.
By law, casinos are required to give 3 percent of Adjusted Gaming Revenue, or AGR, to a nonprofit partner. Cedar Crossing has committed to giving 8 percent.
“There is a lot of need from nonprofits in Cedar Rapids and Linn County and also surrounding counties,” she said. “So, you know, a lot of our people work in Cedar Rapids, and hopefully, our future employees in Cedar Rapids come from surrounding communities, so our goal is to give back to the surrounding community.”
Eick said the Racing and Gaming Commission had considered concerns but saw a promising opportunity for the state and the city of Cedar Rapids.
“I thought they looked at the greater picture of the increase of revenue to the state, from gaming taxes was certainly one consideration,” she said.
Eick also referenced the community’s influx of jobs, entertainment, and money as essential factors in the commission’s decision.
She added the commission is working with a legal team regarding the lawsuit, as Riverside Casino is moving forward with the judicial review process.
“The commission is working with the Attorney’s General Office on responding to the lawsuit. There was a request for a motion for stay this past Monday to the commission,” she said. “The commission opted to deny that motion to stay.”
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