In Iowa, the Cedar Crossing Casino and Entertainment Center, poised to be the second-largest city’s newest gaming spot in Cedar Rapids, is set to hold a soft opening on November 19. This casino project has faced significant hurdles, having been rejected several times over the past decade before finally receiving approval last year.
With a budget of $275 million, the casino's grand opening is scheduled for December 5, according to officials from the Iowa Racing and Gaming Association (IRGC).
Kim Pang, the general manager of Cedar Crossing, expressed excitement about the project, stating, "It’s a dream come true. We have opportunities and we want to be the fabric of Cedar Rapids. Cedar Rapids has been waiting for this for many, many years."
The IRGC previously denied proposals from Peninsula Pacific Entertainment and the Linn County Gaming Association in 2014 and 2017. Additionally, stakeholders had to work around a two-year moratorium on gaming licenses instituted from 2022 to 2024, as well as the potential threat of another moratorium being proposed around the time of last year’s approval. Riverside Casino, located in the region, even challenged the license in court.
The emergence of Cedar Crossing marks the 20th commercial casino in Iowa, joining a landscape that already includes four tribal casinos. This expansion raises concerns about revenue cannibalization, a factor that contributed to the prior rejection of the casino.
As the IRGC reviewed the project's impact, two market studies by Marquette Advisors and the Innovation Group indicated that Cedar Crossing is expected to generate around $60 million in new gaming revenue, along with $10.5 million in state tax revenue. However, both studies warned that new developments could negatively affect the financial performance of existing casinos.
According to the Marquette report, “Cannibalization is estimated at approximately $68 million from other casinos in the region, including $54 million from Iowa commercial casinos and $14 million from the Meskwaki Tribe’s nearby casino.” Riverside is projected to experience the most significant impact, with an estimated decline in adjusted gross revenue of nearly $34 million, equating to a 26% drop in fiscal year 2029. Isle-Waterloo’s revenue could decline by approximately $8.8 million, or 9.6%. More moderate effects are anticipated for other central and eastern Iowa casinos.
The casino plans to feature 700 slot machines, 22 table games, sports betting kiosks, and a 1,500-seat entertainment venue, among other attractions. The sports betting kiosks are expected to be operational in time for the grand opening on December 5.
Pang stated, "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. We will be ready with all amenities. All amenities will be ready."
While regions like Las Vegas and Atlantic City often draw the spotlight, Cedar Crossing aims to benefit from a recent uptick in the regional gaming market. Macquarie gaming analyst Chad Beynon noted in a September report that regional gaming is "a bright spot, with same-store gaming revenue up 1.5% year-over-year."
Beynon emphasized that regional gaming estimates are continuing to rise, with many operators increasing their projections, suggesting that both gaming assets and equities remain undervalued.
