Hard-fought Cedar Rapids casino will open next month

In Iowa, a sizable casino project in Cedar Rapids, the state’s second-largest city, will host a soft opening next month after being rejected multiple times by state regulators for over 10 years prior to winning approval in 2025.

The $275 million Cedar Crossing Casino and Entertainment Center will debut 19 November with a larger grand opening on 5 December, officials told the Iowa Racing and Gaming Association on Thursday.

“It’s a dream come true. We have opportunities and we want to be the fabric of Cedar Rapids,” said Kim Pang, Cedar Crossing general manager, per KCRG. “Cedar Rapids have been waiting for this for many, many years.”

The ICRG had previously rejected pitches from Peninsula Pacific Entertainment and the Linn County Gaming Association for a Cedar Rapids casino in 2014 and 2017 before eventually signing off last year. Stakeholders also had to navigate a two-year state moratorium on gaming licences from 2022-2024 and the threat of a new moratorium that was pitched around the same time as the ICRG’s approval. Riverside Casino, another property in the state, also challenged the licence in court.

Fears of cannibalisation

Cedar Crossing will become the 20th commercial casino in Iowa, in addition to its four tribal casinos. This glut of properties for a state that ranks 32 in the US in terms of population has sparked fears of revenue cannibalisation, which was a key factor for why the project was denied in previous years.

In the lead-up to the ICRG’s approval, two market studies were published on the impact of a Cedar Rapids casino. Analysts from Marquette Advisors and Innovation Group both estimated that Cedar Crossing would generate some $60 million in new gaming revenue and $10.5 million in state tax revenue, but its development would come at a cost for existing properties.

“Cannibalization is estimated at approximately $68 million from other casinos in the region, including $54 million from IA commercial casinos and $14 million from the Meskwaki Tribe’s nearby casino,” the Marquette report said. “The most significant impact is expected at Riverside, where AGR is estimated to decline by nearly $34 million (-26% in FY 2029). The revenue decline at Isle-Waterloo is estimated at $8.8 million (-9.6%). More modest cannibalization is anticipated at other casinos in central and eastern Iowa.”

Regional trend?

Plans call for 700 slots, 22 tables, sports betting kiosks and a 1,500-seat entertainment venue, among other amenities. The sports betting kiosks will go live for the 5 December grand opening.

“North of 30 days and everything is coming in line. Not to say we are ready yet, but we’re going through a lot of our checklists,” Pang said, per KCRG. “We will be ready with all amenities. All amenities will be ready.”

While much attention is given to premium markets like Las Vegas and Atlantic City, Cedar Crossing is hoping to capitalise on an upswing for regional gaming. Macquarie gaming analyst Chad Beynon wrote in a September note to investors that regional gaming “remains a bright spot, with same-store GGR +1.5% YoY”.

“Importantly, regional gaming estimates have continued to move modestly higher, several operators have raised guidance, and recent industry take-private activity has reinforced management teams’ views that both gaming assets and gaming equities remain undervalued,” Beynon wrote.