Summary:
- The new project would bring more than 500 full-time jobs to the area.
- Peninsula Pacific Entertainment and Linn County Gaming Association are behind the pitch.
- Annual gaming revenues are expected to reach over $100 million.
Yesterday, Peninsula Pacific Entertainment (PPE) and the Linn County Gaming Association gave a third presentation in the hopes of bringing a new casino project to Cedar Rapids. Mayor Tiffany O’Donnell is optimistic that this time around, the project will gain approvals as the data has been updated and the plan is more robust.
Iowa Racing and Gaming Commission Pitched Again
During the meeting, the Iowa Racing and Gaming Commission listened as the project data was revealed for a third time. The $275 million project, known as “Cedar Crossing“, would provide more than 500 full-time jobs to the area. Based on the development plans, more than 1,100 jobs would be created as the project is constructed.
The plans revealed that projected annual gaming revenues would reach $108 million, of which $80 million will be new revenues for the state. The project would provide 8% of its annual revenues to local nonprofits in Iowa, much higher than the 3% required by the state.
The new property would be located near downtown Cedar Rapids, featuring various entertainment options.
Denied in 2014 and 2017
The Cedar Crossing Casino & Entertainment Center was up for consideration in 2014 and 2017 but failed to gain ground due to concerns about cannibalization. The fear was that a casino in Cedar Rapids would pull revenues from existing gambling outlets in Iowa.
Developers now say that the impact on other casinos would be less than originally expected. Suzanne Leckert, a consultant on the project, stated that the impact on existing venues was reviewed closely, and previous studies overestimated how the Cedar Rapids project would affect other properties.
Leckert pointed out that the gaming industry has evolved since the last time the project was pitched. Riverside Casino is one local venue that earned $85 million in 2017 and now sees around $129 million in revenues.
The Cedar Rapids location is expected to reduce local casino revenues by just over 25%. Much of the impact would come from future growth projections instead of existing revenues.
After hearing the updated plans and projections, the Iowa Racing and Gaming Commission must rule on the matter. The Commission does not have to make its decision until February 6, 2025. Before that, the project will need to complete a public comment session and site visit. The site visit is set for next month with the project trying to complete all necessary steps before the February ruling.
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