Higher than projected gambling revenue will make it possible for the Legislature to bump up the Rebuild Iowa Infrastructure Fund (RIIF) by $87 million in the coming year to nearly $290 million in fiscal 2023.
116 3rd St SE
Cedar Rapids, Iowa 52401
Articles Tagged: Iowa State Racing and Gaming Commission
In Cedar Rapids’ third attempt to secure a gaming license from Iowa regulators, local casino backers will argue against longtime opponents who are now expanding their operations in neighboring states where gaming expansions threaten Iowa revenues.
The panel that regulates Iowa gaming facilities will take applications from those seeking a license to operate a gaming facility in Linn County, potentially opening the door to a casino in Cedar Rapids
More than $87 billion has been legally wagered on sports since the U.S. Supreme Court struck down the law, and some 40 million Americans were expected to place bets on the NFL regular season that just ended.
Although the $13 million in tax revenue Iowa collects from sports betting is a relatively small pot of money in the state’s $9 billion-plus annual revenue stream, it has caught the attention of lawmakers.
New studies show expansions of gambling in neighboring states will eat into Iowa’s industry revenue. Cedar Rapids officials hope this will nudge state regulators to finally sign off on a casino in Iowa’s second-largest city.
Iowans placed more than $2 billion in wagers on sporting events in 2021, according to recently published state figures. That number envelopes the $575 million that was bet on sports in 2020.
Iowa Lottery sales have continued to be “strong and resilient,” totaling $178.5 million in the first five months of fiscal 2022 – a 6.7 percent increase from the same period a year earlier. However, Lottery CEO Matt Strawn is monitoring the growth in sports betting and the increased competition for discretionary entertainment dollars.
Community support, population shifts and whether a new casino would take business away from others in the region are factors state regulators would consider to approve a new casino in the Cedar Rapids area.
Linn County voters on Nov. 2 approved the gaming referendum by a slimmer margin compared with 2013, but the likely developer says he and other investors are pressing forward with Cedar Rapids on identifying a casino location and preparing a license application for the Iowa Racing and Gaming Commission.
Details remain in the works for where developers would build a potential casino ahead of the Nov. 2 vote on the Linn County gaming referendum, which leaves open the door for cities to seek a casino license. If passed, the matter will never come before county voters again.
“Futures betting and a handful of college games are enough to move the needle. That’s how important football is to the sports betting industry,” said Eric Ramsey, analyst for the PlayUSA.com Network.
The Linn County Gaming Association rallying for passage of the gaming referendum again on the Nov. 2 ballot on Wednesday committed 8 percent of revenue from a potential future gaming operation to local nonprofits.
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