Studies Show Cedar Rapids Casino Would Saturate Iowa Gaming Market
Two independent market studies commissioned by the Iowa Racing and Gaming Commission (IRGC) indicate Iowa's gaming market has reached saturation, potentially impacting the proposed Cedar Rapids casino project.
The studies, conducted by Marquette Advisors and The Innovation Group, analyzed the economic viability of Cedar Crossing Casino, a proposed development on 25 acres of city-owned land near the Cedar River.
Key Findings:
- Projected first-year revenue: $116.5-118 million
- Cannibalization of existing Iowa casinos: $55.7-68 million
- Riverside Casino & Golf Resort could face 12-30% revenue decline
Innovation Group logo
Market Challenges:
- New competition from eastern Nebraska and Illinois casinos
- Tribal resort development in Wisconsin
- Expected decline in Iowa casino capture rate from 72% to 59%
- 63% of Iowa's casino revenue comes from customers within 45-minute drive
Current Market Status:
- Iowa's casino industry is well-established statewide
- Most residents can easily access existing facilities
- Individual casino markets are relatively tight
The IRGC is scheduled to vote on February 6 regarding the potential addition of this 20th casino to the state's gaming industry.
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