There's a fair chance Iowa legislators will take up the issue of preventing the state's gaming authority from granting any more casino licenses.

There are nineteen commercial casinos in Iowa. In 2022, the sector successfully petitioned state lawmakers to halt the approval of new casinos for a two-year period.

The casino lobby and lawmakers both agreed that Iowa's gambling market was at or close to saturation. Following the establishment of casinos in Nebraska, the Legislature decided to pause the development of new casinos in Iowa in order to assess if more competition could be tolerated.

The ban came to an end on June 30, 2024. The Cedar Rapids Development Group, a casino developer, has previously expressed interest in the Iowa Racing & Gaming Commission (IRGC). Through its cooperation with Peninsula Pacific Entertainment, the group hopes to construct a casino resort in the second-most populous city in the state.

Momentum for Moratorium

The casino moratorium was not extended when the Iowa Legislature adjourned for the year in April. The interim freeze was extended by five years to June 2029 by legislation supported by House MPs; however, the Senate did not take any action on the bill.

The unsuccessful extension was supported by Representative Bobby Kaufmann (R-Wilton). He plans to reintroduce the legislation when the legislative body meets for its 2025 session, he told the Iowa Capital Dispatch last week.

"I did not offer the amendment last year to have it pass the House just to abandon my efforts,” Kaufmann said. “I certainly plan to reintroduce it next year.”

Sen. Jason Schultz (R-Schleswig), the chairman of the State Government Committee in the Iowa Senate, fielded Kaufmann's casino bill after the House passed it, which is what caused it to stall. Schultz stated that if Kaufman brings up the casino moratorium again and it makes it to his chamber, he will survey his fellow members once again on the matter.

"Any decision would be run through the caucus to decide what direction we’d like to go,” Schultz explained.

The measure's timing would be crucial. The IRGC explained that the state agency would probably vote on the project in early February 2025 if the Cedar Rapids Development Group filed a formal application for a gaming concession.

Prior to that, a study on the economic effects of permitting a casino in Cedar Rapids is being commissioned by the state gaming regulating body. The IRGC might approve the project as early as February 5, 2025, if the market analysis demonstrates that a casino in Cedar Rapids would expand the state's gaming market and not materially harm existing licensees. 

Contrary to the clock, race

The act would probably face a challenging timeframe, even if Kaufmann were to muster sufficient support for his casino moratorium bill in the House once more and state senators were to show more willingness to support the idea.

In less than a month, Kaufmann's bill would need to pass both House and Senate committees, get full floor consideration in both chambers and subsequent majority votes, and be signed by Governor Kim Reynolds (R) given that the Legislature will meet on January 13 and the IRGC may vote on the Cedar Rapids casino on February 5.

Only 16 session days remain until the casino moratorium is passed into law, taking into account weekends and Martin Luther King Jr. Day on January 20. Only then would the IRGC consider granting the Cedar Rapids casino a gaming permit. The license would be grandfathered into the law if Reynolds signs it after the IRGC takes action.