Don't bet on a Cedar Rapids Casino

It's highly unlikely that Cedar Rapids will ever get a casino. I won't say impossible. You never know when it comes to gambling. Ask the Quaker 20, if you know who they are.

Rick Smith reported in The Gazette this week that somebody is doing a phone survey to gauge interest in a casino here. I hope they didn't spend too much scratch. Might have been better off scratching tickets.

That boat has sailed, and Cedar Rapids missed it. The 2003 Linn County vote against gambling was likely the final nail in the coffin. The city missed the last expansion wave for many years to come.

The Racing and Gaming Commission has said it's not interested in issuing new licenses. Gov. Terry Branstad, as a candidate in 2010, said he opposed further expansion. Any new application would face a stiff political headwind.

And does Iowa really need another casino? Nah. But what do I know? I don't go to the ones we have now.

Still, just because I understand all the reasons why we won't get a casino doesn't mean I buy the argument that Cedar Rapids can't have a casino.

Not surprisingly, among the folks in the “can't have” camp are owners of existing casinos. Dan Kehl, who owns casinos in Riverside and Larchwood, told Smith a Cedar Rapids casino would “devastate” his snazzy Riverside Resort. It would “cannibalize” bucks from his joint, from Waterloo and beyond. He also argued that a Cedar Rapids casino wouldn't make money, although if that's the case, how devastating could it be?

Actually, I bet it would make money. Maybe lots of money. And that's why it can't be allowed to happen. The current casino cartel, the communities that depend on its revenues and a state government that relies heavily on a steady, uninterrupted flow of casino taxes simply can't allow the possibility of real competition. You don't go letting your golden cash cow wander into the scary, unpredictable free market. Who knows what might happen?

So if Linn County voters did approve gambling, and a developer came along with a well-financed plan, and thousands of gamblers in Iowa's second-largest city wanted to keep their money here instead of driving to Waterloo or Riverside, the answer from the Racing and Gaming Commission would be “Uh, nope.” And all because it must protect existing casinos from cannibalization, also known as competition.

Regulators and politicians will make noises about Iowans not wanting more gambling. Sure. But what if Linn County Iowans want it? Sorry, your votes would be no match for casino clout.

So the boat has sailed, the deck is stacked and the cartel is closed.