Iowa Casinos Focus on License Freeze Over Online Gaming

Iowa’s brick-and-mortar casino operators are putting online gaming discussions on hold, focusing instead on reinstating a moratorium on new casino licenses. The Iowa Gaming Association (IGA) and its members see the potential expansion of retail casinos as a more pressing concern, making it unlikely that online casino legislation will move forward in 2025.

A two-year moratorium on new casino licenses expired in June, paving the way for proposals like the Cedar Crossing Casino and Entertainment Center in Cedar Rapids. The $275 million project, backed by Peninsula Pacific Entertainment and the Linn County Gaming Association, promises economic benefits, including 500 construction jobs, 400 permanent positions, and an estimated $6.3 million in annual community impact.

However, existing casino operators argue the project would cannibalize revenue and siphon skilled workers from other casinos. “Twenty-seven counties will be negatively impacted by a Cedar Rapids casino. Only one county will be positively impacted,” said Chad Moine, Senior Vice President and General Manager at Isle Casino Hotel Waterloo.

The Iowa Racing and Gaming Commission will decide on the proposal on February 6, but the debate has reignited calls to reimpose the moratorium. Representative Bobby Kaufmann, who chairs the Ways and Means Committee, plans to reintroduce a bill reinstating the moratorium when the legislature convenes in January.

While Iowa has entertained online casino legislation in recent years, progress has been minimal. Representative Kaufmann first introduced iGaming legislation in 2022, but divisions within the casino industry have hindered its advancement. PlayUSA reports that 13 of Iowa’s 19 casinos support online gaming, but the IGA remains noncommittal due to lingering opposition from some members.

Wes Ehrecke, IGA President, expressed doubt about iGaming’s chances in 2025, citing the industry’s unified focus on halting new casino development. “If there is a successful outcome to extend the moratorium, then members can assess if and when there will ever be unified support to advance iGaming,” Ehrecke told PlayUSA. Kaufmann, previously a key advocate for online casinos, confirmed he will not push for an iGaming bill next year. Without his leadership in the House State Government Committee, the legislative pathway for iGaming appears even more uncertain.

Supporters of online casinos highlight the opportunity to modernize Iowa’s gaming industry and generate additional revenue. However, opponents remain concerned about potential competition and market cannibalization, both online and in physical spaces. Ehrecke emphasized that until the moratorium is addressed, online gaming will take a backseat. “The IGA will not be involved with it if it happens, as a few gaming companies remain opposed,” he said. “And I’m doubtful it will advance.”

The focus for Iowa’s casinos next session will be extending the freeze on new licenses. Until that happens, discussions on online gaming are unlikely to progress.

Conclusion

As Iowa’s gaming industry grapples with the potential expansion of retail casinos, the debate over online gaming remains unresolved. With the focus on reinstating the moratorium, the prospect of iGaming legislation advancing in 2025 appears slim. Decisions made in the upcoming legislative session and the Racing and Gaming Commission’s February ruling on Cedar Crossing Casino will shape the future of both retail and online gaming in Iowa.