In Iowa, the Cedar Crossing Casino and Entertainment Center in Cedar Rapids, the state’s second-largest city, is set to open next month after a decade-long journey marked by repeated rejections from state regulators. The $275 million facility will have a soft opening on November 19, with a more comprehensive grand opening scheduled for December 5, as announced by officials from the Iowa Racing and Gaming Association (IRGC).
Kim Pang, the general manager of Cedar Crossing, expressed excitement about the upcoming launch, 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,” as reported by local news outlet KCRG.
The IRGC had previously turned down proposals from Peninsula Pacific Entertainment and the Linn County Gaming Association for a casino in Cedar Rapids in 2014 and 2017, before finally granting approval last year. The project faced additional challenges due to a two-year moratorium on new gaming licenses from 2022 to 2024, as well as the threat of a new moratorium around the same time the IRGC gave its approval. Riverside Casino, another casino in the state, also mounted a legal challenge against the license.
Concerns over potential revenue cannibalization were significant factors that led to the prior denials. With Cedar Crossing, Iowa will welcome its 20th commercial casino, alongside four tribal casinos. The saturation of gaming properties in a state with a population that ranks 32nd in the U.S. has raised fears about cannibalization of revenues, a topic heavily considered by the IRGC.
Before the IRGC's approval, market studies from Marquette Advisors and Innovation Group projected Cedar Crossing would generate approximately $60 million in new gaming revenue and $10.5 million in state tax revenue, although they warned that its introduction would negatively impact existing properties. The Marquette report estimated a total cannibalization figure of around $68 million from other regional casinos, estimating a $54 million hit from Iowa's commercial casinos and a $14 million decline from the nearby Meskwaki Tribe’s casino. Riverside Casino is expected to bear the brunt of the impact, with AGI projected to drop by nearly $34 million, or 26%, by FY 2029. Isle-Waterloo is forecasted to see a decline of $8.8 million, or 9.6%, alongside more modest losses expected at other casinos in central and eastern Iowa.
The plans for Cedar Crossing include 700 slot machines, 22 table games, sports betting kiosks, and a 1,500-seat entertainment venue, with the sports betting kiosks set to launch on December 5. Pang emphasized the commitment to readiness, stating, "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."
Cedar Crossing aims to tap into the growing regional gaming market, despite the spotlight often falling on premium locations like Las Vegas and Atlantic City. In a note to investors, Macquarie gaming analyst Chad Beynon highlighted that regional gaming is witnessing a positive trend, with same-store gross gaming revenue (GGR) increasing by 1.5% year-over-year. Beynon noted that estimates for regional gaming have been rising, with several operators adjusting their guidance upwards and reinforcing the notion that gaming assets and equities remain undervalued.
