Iowa Supreme Court affirms gaming commission’s ruling denying Cedar Rapids casino license

The Iowa Supreme Court has ruled the Iowa Racing and Gaming Commission has the right to refuse a gambling license for a casino it believes may cannibalize other casinos.

In a unanimous ruling issued Friday, the Supreme Court affirmed decisions made by the commission and the Sixth Judicial District regarding the 2013 application for a gambling license for Cedar Crossing, a casino proposed for the west side of the Cedar River near downtown Cedar Rapids.

Gene Kopecky, a former Linn County prosecutor who had no financial stake in the 2013 Cedar Crossing proposal, argued the commission overstepped its authority by considering the interests of existing gambling license holders when deciding whether to grant the license for Cedar Crossing.

Kopecky filed a petition in 2015 for a declaratory order from the commission on whether it is legal to consider the economic impact on one casino as the basis of deciding whether to approve another license. The commission said Iowa's administrative rules 'allow and/or require” it to review the effect on one casino when considering the bid of another, the Supreme Court noted.

Kopecky appealed to the Sixth Judicial District Court, which affirmed the commission's decision. The Supreme Court's new opinion agrees with the commission and Sixth Judicial District Judge Ian Thornhill.

'In our review of chapter 99F, we find it replete with provisions indicating the legislature's intent that the Commission can consider the economic effect of a new gaming operation on existing gaming facilities when deciding whether to issue a new gaming license,” the Court wrote. 'These Code provisions also evidence a legislative intent that the legislature does not want a new gambling facility to cannibalize an existing gambling facility because the economic impact on an existing facility is an important aspect of furthering economic development in this state.”

Kopecky said Friday he was disappointed by the decision.

'They are ignoring the interests of the people,” he said, adding the state could use the revenue from licensing fees generated by a Cedar Rapids casino.

A revived Cedar Crossing project, now called Cedar Crossing on the River, is one of three new casino proposals vying for a gambling license. The commission may not make a decision until next fall.

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