How the Iowa Casino Moratorium Bill Could Permanently Halt the Issuance of New Casino Licenses

The stability of Iowa’s commercial gaming industry hangs in the balance as new legislation introduced in Des Moines could effectively jeopardize the validity of existing casino licenses. The stability of Iowa’s commercial gaming industry hangs in the balance, as new legislation introduced in Des Moines could effectively jeopardize the validity of existing casino licenses and force the entire sector to close.

Iowa House Rep. Bobby Kaufmann (R-Cedar County) has filed a bill that would prevent the Iowa Racing and Gaming Commission (IRGC) from issuing new casino licenses. While it was expected that time would be of the utmost importance, as the state gaming regulator is slated to vote on a casino application for Cedar Rapids during its Feb. 6 meeting, Kaufmann’s House Study Bill 80 seeks to retroactively apply the statute to become effective as of Jan. 1, 2025.

Officials in Cedar Rapids have for many years been trying to bring a casino to the state’s second-most populated city to energize its economy, generate new jobs, and create new tax revenue. The IRGC denied Cedar Rapids’ gaming bids in 2014 and 2017 on market saturation concerns.

In 2022, Iowa lawmakers passed a two-year moratorium on new gaming licenses. The suspension expired on July 1, 2024.

A group of local businesspeople operating as the Cedar Rapids Development Group in partnership with Los Angeles-based gaming firm Peninsula Pacific Entertainment subsequently presented the IRGC with a $275 million scheme called Cedar Crossing Casino.

Not Just Moratorium

Kaufmann’s measure proposes reimplementing another moratorium on allowing the IRGC to grant new casino concessions from Jan. 1, 2025, through June 30, 2030. That’s not all the bill would do.

Kaufmann has suggested that the IRGC not be allowed come July 2030 to consider any gaming bids should economic studies conclude that the proposed casino’s opening would

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