Brian Ohorilko, administrator with the Iowa Racing and Gaming Commission, left, and commissioners Dolores Mertz, right, and Kris Kramer, center, go over papers before the Iowa Racing and Gaming Commission rejected a proposed $164 million casino in Cedar Rapids.(Photo: (AP Photo/Nati Harnik))
COUNCIL BLUFFS – The Iowa Racing and Gaming Commission rejected a proposed $164 million Cedar Rapids casino Thursday, saying it would hurt existing casinos.
Supporters of the Cedar Crossing Casino development have said it would give an economic boost to Cedar Rapids and the region. They also argued it would be a catalyst for development in an area ravaged by a 2008 flood, create jobs and generate millions for tax revenue and charities.
But representatives of casinos in Riverside, Dubuque and Waterloo fought the plan, saying it would take business away from them.
The five-member commission voted 4 to 1 against the new casino during a meeting in Council Bluffs, with more than 300 people attending.
All of the panel members praised Cedar Rapids plans as top-notch, but the four who voted against the proposal cited studies commissioned by the panel last year that found Iowa's gambling market was saturated. One of the studies said the commission should focus on reinvesting in existing casinos rather than licensing new operations.
Iowa currently has more than 20 casinos, and existing casino operators have complained that the market is getting crowded. Additional casino developments would force layoffs and hurt local nonprofit groups that use charitable money given by current casinos, the existing casino operators said.
The commission's vote was consistent with its policy in recent years. The panel hasn't approved a new casino license since 2010, when it called for a three- to five-year moratorium due to concerns about market saturation.
The lone member who voted to approve the proposal, Dolores Mertz of Algona, said she didn't "want to put anyone out of business," but thinks industry — including Iowa's casino gambling industry — should be market driven.
But commission chairman Jeff Lamberti said the panel's goal is to provide a "stable and predictable gaming environment" in Iowa.
"The commission has never taken the position that it's a free market system for gaming in Iowa," Lamberti said.
The most vocal contingent opposing the development came from the Riverside Casino & Golf Resort about 40 miles south of Cedar Rapids. Casino operators there warned they would have to lay off about a third of their 750 workers if the Cedar Rapids project was approved.
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