Developers of a casino proposed for Cedar Rapids are making their presentation to state regulators today.
The presentation was streamed by KCRG TV, and Suzanne Leckert, a consultant with Convergence Strategy Group says cellphone tracking data shows a need for a new casino. “What all of this tracking data showed us is that Cedar Rapids is underserved and under penetrated,” she says. Peninsula Pacific Entertainment is proposing spending $275 million to develop a casino called Cedar Crossings on the river in Cedar Rapids.
Leckert talked about the economic impact of the casino. “The casino’s construction will create the equivalent of 1,100 full-time jobs over 18 months. And over half of this work is expected to go to Linn County residents. The construction phase will generate $303 million in additional spending for the state of Iowa, and will result in $102 million in wage earnings,” Leckert says.
She told the Racing and Gaming Commission the new casino would generate 80 million new gaming dollars, and more taxes for the state. “Cedar crossing will pay a total of $23.9 million in gaming taxes each year,” she says. Cedar Rapids has been denied a gambling license in the past after studies showed a casino there would take money from existing casinos. Leckert says their study shows that impact has been overstated at other casinos in the state and they believe that is the case here as well. “Much like elsewhere in Iowa, we would expect that the existing facilities in this region will be resilient and competitive and perhaps erasing any losses,” Leckert says.
The IRGC has hired firms to conduct its own market study of the gambling industry it will use in deciding on a license for Cedar Rapids. Regulators will visit the proposed Cedar Rapids site on November 20th review the proposal and make public comments. The IRGC expects to make a decision on a gaming license at its meeting in February.