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Curious Iowa: Why does Iowa have nonprofit casinos?
Two of Iowa’s 19 state-licensed gaming facilities operate as nonprofit operations.
Feb. 2, 2026 5:30 am, Updated: Feb. 2, 2026 7:52 am
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DUBUQUE — Two of Iowa’s 19 state-licensed gaming facilities operate as nonprofits in a unique private-public partnership that has plowed millions back into the surrounding communities.
A reader of The Gazette wondered why that was, so they wrote to Curious Iowa — a series that answers readers’ questions about our state and how it works.
To answer that question, we looked into the history of gambling in Iowa, the connection between gaming and charitable giving and the impact that overlap has on Iowa communities.
Why does Iowa have nonprofit casinos?
Before Iowa had casinos, it had racetracks.
In May of 1983, the Iowa Legislature passed the Pari-Mutuel Wagering Act to allow organizations to seek state-issued racing licenses to conduct parimutuel wagering, or pool betting, on horse or dog races.
It was the first time pool betting was allowed under state law, and it passed in large part thanks to proponents’ arguments that the bill would promote economic development and job creation in struggling Iowa communities.
Racing licenses were only made available to qualified nonprofit organizations, however, as a way to promote the reinvestment of gaming funds back into host communities.
Iowa Racing and Gaming Commission Administrator Tina Eick said that requirement shifted under the 1989 law that allowed for the licensing of riverboat casinos.
“When the river boat casinos came in, those could have commercial operators, but they were required to have a qualified sponsoring organization, or a nonprofit partner,” Eick explained.
Rather than operate as nonprofits themselves, Eick explained that riverboat casinos — and later land-based gaming operations — partner with QSOs to pay out at least 3 percent of their adjusted gross revenue each year to area nonprofits.
The result was that gaming facilities that started as racetracks operated as nonprofits, while those without tracks were commercial operations.
Where can you find nonprofit casinos in Iowa?
Of those early applicants for state racing licenses, two continue to operate as nonprofits today: Prairie Meadows Racetrack & Casino in Altoona and Q Casino + Resort in Dubuque.
The Iowa Racing and Gaming Association in 1984 approved a license for greyhound racing to the Dubuque Racing Association, the present day nonprofit licenseholder of the Q Casino + Resort.
The Dubuque Greyhound Park opened soon after and held its first set of races on June 1, 1985, when more than 4,200 people packed into the track to bet a total of $212,720 on the inaugural day.
The track was eventually allowed to add slot machines and, over time, became the full-fledged gambling operation known today as Q Casino + Resort.
The facility phased out greyhound races in 2022 but has since added several new amenities to its repertoire such as an all-ages arcade and boutique hotel.
Prairie Meadows opened its horse racing track on March 1, 1989, following a successful license application from the Racing Association of Central Iowa. It similarly expanded over the years to grow to its current footprint of more than 85,000 square feet.
The casino continues to host horse races annually to complement its robust selection of table games, slots and other gaming amenities. It also has more standard hospitality offerings with its own hotel and multiple restaurants.
Both facilities operate as 501(c)4 nonprofit corporations and are the only such casinos to do so in the country.
How do they work?
Prairie Meadows CEO Brian Ohorilko explained that running a nonprofit casino means working to maximize community benefit rather than shareholder returns.
For Prairie Meadows, that means “all profits go back to the community in some way, either through charitable distributions or through civic arrangements” with area municipalities.
The Altoona casino pays a regular lease payment to Polk County each year, for example, and directs another portion of its revenue to the city of Des Moines for municipal projects.
The remainder gets put toward grants to area nonprofits.
“It really is just an amazing setup … because our guests can come into Prairie Meadows and have a great experience where they know their entertainment dollars will go back into their community,” Ohorilko said.
In Dubuque, the Q Casino + Resort — through the Dubuque Racing Association — splits its revenue into thirds with one portion going directly to the city of Dubuque’s general fund, another portion going to area nonprofits and the final chunk going toward reinvestment into the surrounding Chaplain Schmitt Island.
Between its annual allocation and monthly lease payments, City Manager Mike Van Milligen said the city of Dubuque has been able to support a wide variety of city projects using funds generated by the casino.
“In round numbers, it provides the city about $7 million a year to support the operating budget,” he said. “It helps hold down property taxes for residents.”
What kinds of community projects do they support?
Prairie Meadows splits its annual grant allocations into three categories.
Legacy grants are those between $100,000 and $1 million that support large-scale projects in central Iowa. Community betterment grants fund small- to medium-sized projects with allocations ranging from $100 to $999,999.
There’s also the youth sports and recreational grant program aimed specifically at supporting qualified youth sports organizations through grants between $1,000 and $50,000.
Last year, some of the projects to receive funding included:
- $600,000 to Drake University for the renovation of Drake Stadium
- $450,000 to the Iowa State Fair Blue Ribbon Foundation for a horse barn renovation
- $250,000 to the Colfax Economic Development Corp. for the construction of the Colfax Childcare Center
- $100,000 to the Urbandale Food Pantry for its capital campaign to construct a new facility.
The Dubuque Racing Association offers two kinds of grants each year: Core grants for organizations requesting up to $50,000 and mission grants for any request above $50,000.
In 2025, the organization awarded just over $1 million in core grants and $100,000 in mission grants. Some of those awardees included:
- $50,000 to Dubuque and Jackson County Habitat for Humanity for construction of affordable single-family homes.
- just under $47,000 to the Dubuque Childcare Collaborative to support construction of the Bright Minds Childcare Campus and Training Center
- $35,000 to Crescent Community Health Center for its oral health workforce capacity building project.
“Every application has those elements that really tug at the heartstrings,” said DRA and Q Casino + Resort CEO Anthony Williams. “It’s a process that ultimately works to continue advancing growth in this community.”
How will the new Cedar Rapids casino compare?
The Cedar Crossing Casino and Entertainment Center will be a for-profit operation run by the Cedar Rapids Development Group, a subsidiary of casino development company Peninsula Pacific Entertainment.
Developers have agreed to a minimum assessment of $50 million for the casino — bringing in what it estimates at $2 million a year in local property taxes — and have pledged 8 percent of the casino’s annual net adjusted gross revenue to nonprofit organizations.
As proposed, the facility will include 700 slot machines and 22 table games, as well as an assortment of restaurants, bars and other entertainment amenities that include a STEM lab for kids and a 1,500-person entertainment facility.
Construction is underway on the northwest Cedar Rapids facility, which is set to open Dec. 31, 2026.
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