Bill creating smoke-free Cedar Rapids casino proposed

DES MOINES - As advertised, state Sens. Wally Horn, D-Cedar Rapids, and Dan Zumbach, R-Ryan, have co-sponsored gaming legislation that seeks to pave the way for Iowa's first smoke-free casino in Cedar Rapids.

Senate File 24 includes a provision that will distribute more gaming revenue to the 84 of Iowa's 99 counties that do not now host a casino, as well as a provision that benefits host counties and their non-profit groups by eliminating a state tax on free-play promotions to attract customers to casinos.

Opponents don't like a feature of the legislation that shifts the authority to grant state gaming licenses from the Iowa Racing and Gaming Commission - which turned down a gaming license in April for a casino in Cedar Rapids - to the Iowa Legislature.

The bill also includes a provision to impose a 10-year moratorium beginning Jan. 1, 2016, on new casinos in Iowa - after the smoke-free casino in Cedar Rapids secures a state gaming license - and a provision that would waive the one-time, $20 million state casino license fee for Cedar Rapids investors in trade for casino investors taking the risk of opening the state's first smoke-free casino.

Horn said Wednesday he expects a similar measure to be filed in the Iowa House soon. A subcommittee had not been named for S.F. 24 as of Wednesday.

Sen. Jeff Danielson, D-Waterloo, chairman of the Senate State Government Committee, called the bill 'an interesting and creative proposal” but said he wanted to keep casino licensing decisions within the purview of the state Racing and Gaming Commission. Earlier this month, other state Democrats - including Senate Majority Leader Mike Gronstal and House Minority Leader Mark Smith - said a bill such as Senate File 24 would not face an easy time in the General Assembly.

'I do not support a policy where legislators on the floor of the Iowa House and the Iowa Senate vote to site a casino,” Danielson said. 'That will be a Lord of the Flies scenario for which no Iowan will be proud of when they watch that debate unfold.”

The Senate committee leader said he was willing to provide a forum for Cedar Rapids officials to air their grievances and look a holistic ways to help the community recover from the devastating effects of the 2008 flood, but throwing the state's gaming policy 'overboard” should not be part of that discussion.