A bill to establish a five-year moratorium on new casino licenses in Iowa has cleared the state’s House of Representatives and an Iowa Senate committee. A potential vote on the legislation is now pending on the Senate floor. So is a vote on whether to grant a license for a proposed casino in the state’s second-most populous city, Cedar Rapids.
Even if the Cedar Rapids project gets the green light, passing the moratorium would block the execution of that license until it expires.
How lawmakers choose to resolve this situation for land-based casinos could affect the chances for later discussions on iGaming in Iowa. At the moment, the moratorium and Cedar Rapids project are of such concern that online casinos aren’t even on the radar.
Moratorium bill nears governor’s desk
On Jan. 31, the Iowa House approved HF 144, which is a reprint of HSB 80. The bill passed by a 68-31 margin, meaning that the House has the votes to override a potential gubernatorial veto.
On Jan. 30, the Iowa Senate Committee on Local Government advanced HF 144’s companion, SB 1069. With that approval, HF 144 is available for the full Senate to take up at any time its members like.
At this time, Iowa Gov. Kim Reynolds has not voiced her sentiment on the issue. She did sign the last moratorium into law in 2022. The bill’s sponsor, Rep. Bobby Kaufmann, told Robin Opsahl of the Iowa Capital Dispatch in January that he was confident that Reynolds would sign the bill.
There will be movement on the issue of new casinos in Iowa elsewhere during the first week of February as well. The forthcoming meeting of the state’s gaming regulators is part of the reason why HF 144 has moved through the Iowa legislature so quickly.
Cedar Crossing license vote forthcoming
On Feb. 6, the Iowa Racing and Gaming Commission (IRGC) will meet to, among other things, consider the application for Cedar Crossing casino. Cedar Crossing Casino and Entertainment Center is a proposed complex that will occupy a riverfront tract in Cedar Rapids if approved.
Despite the progress HF 144 has made, the IRGC could still approve the license on Friday. That might be nothing more than a technicality, though.
HF 144 is retroactive to Jan. 1, 2025. That means if it becomes law in its current form, it would nullify the awarding of the license for Cedar Crossing until the moratorium expires.
Individuals and organizations behind the casino’s development could re-apply at that time, barring the enactment of another moratorium. In the meantime, the Iowa legislature’s attention could turn to other matters related to gambling.
Moratorium could make space for online casino debate
In November 2024, Iowa Gaming Association President Wes Ehrecke told PlayUSA that until the moratorium was settled, gaming licensees would treat that as a sole focus. The passage of HF 144 would settle that issue and Ehrecke also stated that in that event, “members can assess if and when there will ever be unified support to advance iGaming.”
Ehrecke previously held that six of the 19 casino licensees in Iowa opposed the regulation of online casino play in the state. At the same time, Kaufmann has shared that he will not introduce an online casino bill until all 19 licensees are on board.
Putting the moratorium issue in the rearview mirror could give Kaufmann time to drive home the benefits of iGaming with those in dissent. The events of the first week of February in Des Moines could have long-lasting ramifications for the gambling industry in Iowa.