Iowa’s Cedar Rapids Casino Developers Presenting Soon to Council

Article ByDavid Weir

June 29, 2023

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Posted in: Iowa Gambling News, US Casino News

Despite previous setbacks, the Cedar Rapids Development Group (CRDG) is persistently pushing for a casino resort in Cedar Rapids, Iowa.

The group is set to present its latest case for a casino to the Cedar Rapids City Council on July 11.

It wants first rights to a city-owned plot of land near downtown for their proposed casino resort (developer’s renderings pictured), which will be called “Cedar Crossing.”

Any purchase can’t go through until 2025, as Iowa has a moratorium on new casino venues until then.

Cedar Rapids Development Group is a group of local businesspeople and investors. It is backed by Peninsula Pacific Entertainment, which is owned by Churchill Downs Incorporated, the operator of the famous Kentucky horse racing track of the same name.

Opportunity Sees New Life

CRDG sees the casino as a potential economic boost for the town.

It has floated a $165,000 figure for the land purchase, and a minimum investment of $150 million in the overall project.

However, their plans were put on hold last year when the Iowa Legislature and Gov. Kim Reynolds enacted a two-year moratorium on new casino licenses.

This pause, which lasts until July 1, 2024, was enacted to slow market saturation and cap the number of casinos at 19.

However, it has frustrated Cedar Rapids casino backers. They feel overlooked by the state gaming agency, the Iowa Racing and Gaming Commission.

Despite those failed attempts to secure a casino license in 2014 and 2017, the city remains hopeful.

Jonathan Swain, president of Peninsula Pacific Entertainment, remains optimistic.

“All we ask for is the opportunity to present our case before both bodies and make this opportunity for Cedar Rapids come to life,” he said.

Related: Our expert guide to the very best online casinos in Iowa

What’s Best for Everyone

The Cedar Crossing proposal features more than just casino gaming. It is envisioned as a $250 million, 160,000-square-foot entertainment and cultural arts complex.

The casino would be part of a larger development, including bars, restaurants, and an expansive entertainment venue.

Some local residents, like Ryan Evans, owner of Iowa River Landing, see the benefits a casino development could bring.

“I’m a Cedar Rapidian, I want what’s best for everyone, and I don’t see how creating jobs and creating something else fun to do doesn’t help Cedar Rapids,” he told CBS2 Iowa.

The casino would occupy at least 45,000 square feet of the one-story, 125,000-square-foot complex.

The developers have also committed to contribute 2.25% of the casino’s gross gaming revenue to a local fund for economic development.

That includes affordable housing, trail and park maintenance, and other infrastructure in the city. The developer also promised to build flood protection for the city in its previous proposals. But it’s not clear if that will be included this time.

Remaining Committed

Despite state government pushback and previous denials from the Iowa Racing and Gaming Commission, Cedar Rapids Mayor Tiffany O’Donnell remains determined to bring a casino to the city.

“When voters approved this for a third time, it became clear that our city saw value in having a casino,” she said.

“We remain committed. We’re not going anywhere. We believe that this is a tremendous opportunity, not only for our downtown, but all the nonprofits that are going to benefit.”

While new retail casino projects like Cedar Crossing might have to wait a while to open in Iowa, the state is busily expanding its online sports betting market.  

British operator Bet365 became the latest operator to open in the Hawkeye State last month. It will supply online sports betting services in partnership with local riverboat gambling venue operator Casino Queen Marquette.