Iowa casinos have expressed concerns regarding the proposed Cedar Crossing Casino & Entertainment Center in Cedar Rapids, fearing that the development could significantly impact their bottom lines. During a recent Iowa Racing and Gaming Commission (IRGC) meeting, Linn County Gaming Association (LCGA) presented its application for the new casino, identifying its potential effects on nearby markets in Eastern Iowa.
A New Resort Could Disrupt Existing Businesses
Regional casinos, such as the Diamond Jo Casino in Dubuque, were concerned about the potential cannibalization of existing markets, drawing attention to Iowa’s already competitive gaming landscape. They fear the addition of another competitor so close to other regional casinos could negatively impact the viability of current operations and disrupt the region’s gambling industry.
Alex Dixon, President and CEO of Q Casino in Dubuque, said the Linn County Gaming Association research estimated that a new casino resort in Cedar Rapids would cause Dubuque’s casinos to lose around $5 million, Riverside’s would lose $16 million, while Waterloo’s would take a $6.2 million hit.
Dixon reiterated his concerns regarding the new project but was mildly optimistic that Q Casino’s quality product would help it attract new customers despite increased competition. Diamond Jo Casino also commented on this matter for local news outlet KWWL, noting that a Cedar Rapids development would negatively impact Dubuque and other Iowa markets.
The Project Enjoys Significant Support in Cedar Rapids
The Cedar Crossing Casino, proposed by Peninsula Pacific Entertainment (P2E) and LCGA, promises to bring in more than 500 full-time jobs and more than 1,100 construction jobs, significantly contributing to the region’s economy. The developers estimated an annual gaming revenue of $108 million and $80 million in new revenue for Iowa, pledging to give 8% of annual revenue to local non-profits rather than the state-mandated 3%.
Cedar Rapids mayor Tiffany O’Donnell was optimistic regarding the proposed development, imploring the IRGC to give the project a fair chance. She drew attention to the significant financial benefits a high-profile casino would bring to the city, adding that this latest attempt at a Cedar Rapids casino resort stood the best chance of success.
We need to find other ways to support our non-profits and people in our community, and this is a great way to do that.
Cedar Rapids mayor Tiffany O’Donnell
This newest effort marks the third attempt to establish a casino in Cedar Rapids, following previous rejections in 2014 and 2017, primarily due to concerns about market cannibalization. The developers argue the impact on nearby casinos will be less than previously estimated. The next step for the project will be a site visit by commissioners, with a final decision on the casino license expected in February 2025.
