A major casino project in Cedar Rapids, the second-largest city in Iowa, is set for a soft opening next month. This comes after more than a decade of rejected proposals and regulatory hurdles before finally receiving approval in 2025.
The Cedar Crossing Casino and Entertainment Center, with a budget of $275 million, will have its soft opening on November 19, followed by a grand opening on December 5, as announced by officials from the Iowa Racing and Gaming Association.
Kim Pang, the general manager of Cedar Crossing, expressed excitement about the project's launch, stating, “It’s a dream come true. We have opportunities and we want to be the fabric of Cedar Rapids.” She acknowledged the long wait the city has endured for this development.
Previously, the Iowa Racing and Gaming Commission (IRGC) had turned down proposals for a Cedar Rapids casino from Peninsula Pacific Entertainment and the Linn County Gaming Association in 2014 and 2017. After multiple obstacles, including a two-year state moratorium on gaming licenses from 2022 to 2024 and legal challenges from Riverside Casino regarding the license approval, formal permission was finally granted last year.
The emergence of Cedar Crossing adds to the growing number of casinos in Iowa, increasing the total to 20 commercial casinos, alongside four tribal properties. This proliferation has raised concerns about potential revenue cannibalization among existing casinos, which played a significant role in earlier rejections of the project.
Market analyses prepared by Marquette Advisors and the Innovation Group suggest Cedar Crossing could generate approximately $60 million in new gaming revenue, and about $10.5 million in tax revenue for the state. However, this growth could come at the expense of existing casinos in the region, with estimated cannibalization effects reaching around $68 million. Riverside Casino is projected to lose nearly $34 million in adjusted gross revenue, representing a 26% decline by fiscal year 2029. Other properties in central and eastern Iowa are also expected to experience revenue downturns.
Cedar Crossing's plans include 700 slot machines, 22 table games, sports betting kiosks, and a venue capable of seating 1,500 people. The sports betting kiosks are expected to be operational by the grand opening on December 5.
Pang is optimistic about the preparations, stating that while everything is not yet set, the team is making significant progress. “North of 30 days and everything is coming in line. We will be ready with all amenities,” she affirmed.
Despite the focus often placed on major gaming markets such as Las Vegas and Atlantic City, Cedar Crossing aims to take advantage of a recent upswing in regional gaming. Analyst Chad Beynon noted in a report that regional gaming is thriving, with a year-over-year growth of 1.5% in same-store gross gaming revenue. He observed that senior operators have been optimistic, raising their revenue forecasts, suggesting that gaming assets and stocks are currently undervalued.
