The Iowa Racing and Gaming Commission (IRGC) approved the Cedar Rapids casino project earlier this month, but it is still facing a legal challenge from a potential rival.
Lawyers representing Iowa's Elite Casino Resorts and its Riverside Casino & Golf Resort argue that the state gaming authority made a mistake in approving a $275 million casino proposal for Cedar Rapids named Cedar Crossing. A lawsuit for judicial review submitted to the Washington County District Court claims that the IRGC was wrong to support the project.
Top lawyers contend that a 2021 local vote in Linn County did not permit casino gambling but merely prolonged the terms of a 2013 referendum result. They also assert that state gaming regulators failed to sufficiently evaluate the negative impacts a casino in Cedar Rapids will impose on existing gaming facilities, particularly Riverside.
The grievance states that the IRGC must take into account “all the elements it usually evaluates, encompassing but not exclusively community backing, funding, gaming fairness, and potential harm to other establishments.”
Court Date Established
The IRGC had previously rejected a comparable request for assistance. IRGC Chair Daryl Olsen stated that the agency's assessment, carried out alongside the state attorney general's team, determined that granting the Cedar Crossing development team a gaming concession was suitable.
In its motion to dismiss the Elite/Riverside petition, the IRGC stated that Attorney General Breanna Bird's office deemed many of the plaintiffs' assertions as "factually incorrect." The agency’s response indicated that the state AG found that the 2021 Linn County referendum did authorize slot machines, table games, and sports betting, and that the IRGC thoroughly evaluated all aspects prior to issuing the license.
In a separate motion to dismiss, lawyers representing the Cedar Rapids Development Group, the team responsible for the Cedar Crossing Casino, along with its charitable organization, the Linn County Gaming Association, contended that Elite and Riverside are merely resisting competition.
"This Affidavit, part of the one-sided record submitted by Riverside, is from an individual with a direct, financial interest in ensuring there are no competing casinos affecting Riverside,” the filing alleged.
This Friday, February 21, both parties involved are prepared to present their cases before the Washington County District Court.
Riverside Water Shortage?
A study conducted by Marquette Advisors and commissioned by the IRGC revealed that a casino in Cedar Rapids would lead to a decrease of around $34 million in Riverside gambling revenue for the fiscal year 2029.
Elite Casino Resort's CFO Karlyn Ollendick stated that this would signify a 26% decline in gross gaming revenue (GGR) for the casino when compared to its anticipated FY2029 revenue of about $130.8 million. In the 2024 fiscal year, Riverside produced gross gaming revenue of roughly $129.2 million. The total for Riverside GGR in the previous year was $130 million.
The plan for Cedar Crossing Casino & Entertainment Center features a casino equipped with 700 slot machines, 22 table games, and a sportsbook. Three eateries showcased by Iowa native Zach Johnson’s Clubhouse are also in the works.
A concert hall with 1,500 seats, an arts and cultural center, and a STEM Lab featuring a separate entrance are some of the benefits that the developers claim will help the community. The casino will also allocate 8% of its gaming earnings to charitable causes, which is 5% above the state-required 3%.