A bill creating a moratorium on new casinos — and skuttle proposed casino in Cedar Rapids — has cleared a House Committee.
There was a statehouse hearing on the proposal yesterday, a few hours before the Ways and Means Committee convened last night. Iowa’s casino industry is urging lawmakers to pass the bill before the Iowa Racing and Gaming Commission votes on the license for the Cedar Rapids casino on February 6.
Frank Chiodo, a lobbyist for the Riverside Casino, said no other casino would take a harder financial hit if Cedar Crossing is built. “We have 23 casinos in the state of Iowa. The longest drive you have to a casino is 45 minute, maybe a little longer. That’s enough. I mean, do we really want more?”
Mary Earnhart is president of the Iowa Gaming Association, which represents the 19 state-licensed casinos. “Simply stated, a moratorium on casino licenses will prevent job losses and business closures,” Earnhart said.
There are four Native American casinos operating in the state as well. Sara Allen, a lobbyist for the Meskwaki Nation, said the tribe’s casino near Tama stands to lose big if a new casino opens just 55 miles away. “We did a study on our own and it suggests that 14.5% of our revenue would go away with the opening of a Cedar Rapids casino,” she said.
Backers of the proposed Cedar Crossing casino pleaded with lawmakers to let the Racing and Gaming Commission decide next week whether the project can go forward.
“Our community continues to fight back from flooding and the derecho, so I cannot understate how important the economic impact from this casino would be on continuing to help us, and the state, in that recovery,” said Ann Poe, mayor pro tempore of Cedar Rapids.
The developer projects nearly 700 people will be employed at the casino when it opens. Trade unions point to the estimated 1000 construction jobs for the $275 million project.
Felicia Hilton is with the North Central States Regional Council of Carpenters. “Our biggest concern is people leaving the state, trying to maintain people in the state, trying to keep young people in the state and actually having places for people to actually be employed,” she told lawmakers.
Todd Bergen, vice president of the Linn County Gaming Association, said he doubts the studies showing a casino in his community would have a big impact on nearby casinos. “Grand Falls Casino in Lyon County, when they applied for a license, it was projected that 27% of the revenue would come from existing Iowa casinos,” he said. “A year after it opened, Sioux City’s casino grew by 2%, with no loss of revenue.”
The House Ways and Means Committee approved the moratorium early Monday evening. The bill is eligible for debate in the Iowa House on Thursday. It’s unclear whether the Senate would take up the legislation next week.