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Iowa’s Casino Moratorium Bill Advances in 2025

Iowa lawmakers are nearing a decision on a five-year casino moratorium that could block a proposed Cedar Rapids casino and delay discussions on online gambling. With a key Senate vote approaching, the future of Iowa’s gambling industry hangs in the balance.
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Branimir Ivanov | Senior News Contributor

Updated: Feb 4, 2025

Casino Expansion Faces Uncertain Future

A bill imposing a five-year moratorium on new casino licenses in Iowa has advanced through the state’s House of Representatives and a key Senate committee, setting the stage for a crucial vote in the full Senate. If enacted, the moratorium would stall any new casino projects, including a proposed development in Cedar Rapids, one of the state’s largest cities. The outcome of this legislation could not only determine the future of land-based casinos in Iowa but also shape the prospects for online gambling, a topic that remains sidelined while lawmakers debate the immediate issue.

House File 144 (HF 144) passed the Iowa House with a strong 68-31 majority, signaling that lawmakers have enough support to override a potential veto. The bill is a direct successor to a similar 2022 moratorium signed by Gov. Kim Reynolds. While Reynolds has not publicly stated her position this time, Rep. Bobby Kaufmann, the bill’s sponsor, has expressed confidence that she will approve it.

 

The recent Developments

On the Senate side, the bill’s companion, Senate Bill 1069, cleared the Senate Committee on Local Government on Jan. 30, paving the way for a full Senate vote. The urgency of the bill appears tied to an upcoming decision by the Iowa Racing and Gaming Commission (IRGC) regarding Cedar Rapids’ proposed Cedar Crossing casino.

The IRGC is scheduled to meet on Feb. 6 to review the Cedar Crossing casino application. While regulators could approve the license, HF 144’s retroactive clause—dating back to Jan. 1, 2025—would nullify the license if the bill becomes law. That would leave developers of Cedar Crossing in limbo until the moratorium expires in 2030, unless lawmakers extend it further. For Cedar Rapids, this means a major economic development project could be indefinitely postponed. Developers and local officials who have backed the project will have to wait to see whether they can reapply once the moratorium lifts.

While the focus remains on land-based casinos, the moratorium debate could influence future discussions on online gambling. Iowa Gaming Association President Wes Ehrecke previously stated that until the moratorium is settled, casino licensees will remain focused on that issue. However, should HF 144 pass, lawmakers may shift their attention to iGaming.

A major hurdle remains: only six of Iowa’s 19 casino licensees currently support online casino regulation. Rep. Kaufmann has said he will not introduce an iGaming bill until there is unanimous backing. If the moratorium issue is resolved, he and industry leaders may use the coming years to build consensus.

 

The passage of HF 144 would settle that issue, and members can assess if and when there will ever be unified support to advance iGaming.

Conclusions

As Iowa lawmakers prepare for a decisive vote, the state’s gambling industry is at a turning point. The decision on HF 144 will shape the landscape for years, affecting both brick-and-mortar casino expansion and the long-term viability of iGaming. Whether the Senate votes to uphold or block new casino developments will not only determine Cedar Rapids’ immediate prospects but also set the tone for Iowa’s gambling policy in the decade ahead.

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