Cedar Rapids City Council Approves Casino Host Agreement in Historic Vote
Cedar Rapids officials have approved a host agreement for a potential $275 million casino resort development. The City Council voted 8-1 in favor of partnering with Cedar Rapids Development Group (CRDG) and the Linn County Gaming Association for the Cedar Crossing Casino project.
Cedar Crossing casino building exterior
Key Details of the Agreement:
- Location: 25 acres of city-owned land west of Cedar River between I and F avenues
- Revenue sharing: 2.25% of gross gaming revenue goes to Cedar Rapids
- Additional 8% of net gaming proceeds allocated to local charities
- State tax rate: 22% of annual gross gaming revenue
Project Specifications:
- 110,000 square-foot facility
- 39,000 square-foot gaming area
- 17,000 square-foot restaurant space
- 16,000 square-foot event space
- 5,000 square-foot cultural center and children's STEM lab
Current Status:
- Iowa Racing and Gaming Commission (IRGC) is reviewing market feasibility studies
- Vote expected on February 6, 2025
- Previous applications denied in 2014 and 2017 due to market saturation concerns
- State moratorium on new gaming licenses expired July 1, 2024
Legal Challenge: Elite Casino Resorts is contesting the validity of the 2021 local referendum that authorized gambling in Linn County. Their legal team argues the referendum language about "continuing" gambling operations was invalid since no previous operations existed.
The project faces opposition from Iowa's 19 existing casinos, particularly Riverside Casino & Golf Resort, citing concerns about market cannibalization. CRDG, partnering with Peninsula Pacific Entertainment, maintains the project will bring economic opportunities and enhanced entertainment options to Iowa's second-largest city.
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