The Iowa Racing and Gaming Commission (IRGC) has said no to a request to stop giving out a gambling license for the $275 million Cedar Crossing Casino in Cedar Rapids. All members of the commission agreed on this decision. This happens while Riverside Casino & Golf Resort is taking legal action saying the IRGC went too far when it said yes to the project.
Riverside Casino Sues IRGC Over Linn County Gambling License Approval
Riverside Casino and its nonprofit partner, the Washington County Riverboat Foundation, have sued the IRGC for its decision. They argue that the commission had no legal right to give a gambling license in Linn County. Their main point focuses on the 2021 Linn County gambling referendum. They say this referendum had wrong wording and did not clearly allow a new casino to open.
Despite asking for a pause on the license approval, the IRGC did not budge, as reported by The Gazette. They said courts should settle this, not regulators. Alan Ostergren, the only lawyer on the five-person panel, stressed that those against the license can still take it to court. He noted that a judge would be in a better position to decide if the commission had the right to give out the license in the first place.
Riverside Casino worries about the money problems a Cedar Rapids casino might cause. They point to market studies that show it could have a big impact on their business. An outside look at the numbers says the new place could take about $34 million a year from Riverside by 2029. This could lead to people losing jobs and hurt the whole Washington County economy.
Karlyn Ollendick from Elite Casino Resorts, which runs Riverside, says losing that much money would mean letting workers go. She points out that around 200 people might end up without jobs if the Cedar Rapids casino goes ahead.
IRGC Favors Economic Gains Over Market Concerns in Linn County Casino Decision
The IRGC recognized worries about market rivalry and money redistribution but in the end decided that the economic advantages for Linn County such as new jobs and more tax money were more important than these potential problems.
Riverside Casino wants a quick court decision, but lawyers for Cedar Rapids Development Group and the IRGC do not agree that there is an urgent need to step in. They say the project’s schedule gives enough time for legal talks without having to stop building right away.
A ceremony marking the start of construction for Cedar Crossing Casino took place on February 7, and the developers aim to open on December 31, 2026. Brent Stevens, who heads Peninsula Pacific Entertainment, the main company behind the project, stays hopeful that legal challenges will not delay the planned schedule.
Since the IRGC decided not to step in, the case is now going to the courts. Riverside Casino has already sued in Washington County District Court to undo the IRGC’s approval of the Cedar Rapids casino. They claim that the commission’s decision misused its power and goes against Iowa law.
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