Earlier this week, a bipartisan plan for changes in local gambling laws was introduced in the state of Iowa. It is expected to be discussed at the 2015 session, scheduled for January. However, it was reported that local Legislature did not particularly welcome the proposal.
Special attention was paid to the development of a smoke-free casino in Cedar Rapids. A few months ago, local regulators rejected the $164-million project. This is why Ron Corbett, Mayor of Cedar Rapids, and lawmakers decided to bring up the matter during the 2015 session.
Mayor Corbett has been trying to get the casino development approved for years. He pointed out that this will create new jobs, boost the local economy, and help the region recover from a severe flooding. The Iowa Racing and Gaming Commission, however, rejected the project, for it is expected to have a negative impact on the casino venues in Riverside,Waterloo, and Dubuque.
What is more, it seems that Mayor Corbett had spent quite some time in preparing the plan in question that was later welcomed by both lawmakers and constituencies. His proposal was supported by Sen. Wally Horn and Sen. Dan Zumbach, who are known to be representatives of two opposing parties.
Mayor Corbett stated at a special press conference that they have tried to prepare a plan that will meet all the needs of the local gambling industry. In addition to this, the plan suggested that 84 of all 99 counties which do not have casinos within their territories will receive a total gambling revenue of $22 million. Currently, each of these counties is given $130,000 every year.
Last but not least, the proposal states that no casino licenses should be granted within the next ten years. Back in July, the state’s gaming regulator implemented an unofficial three-year moratorium on the grounds that local market is currently saturated with gambling venues.
Mayor Corbett stated that the longer period he proposed will certainly help casinos renovate their premises and thus, remain competitive without having to worry about potential new rivals.
The proposal evoked mixed reactions among officials.
Iowa Gov. Terry Branstad, for instance, stated that he will certainly consider the opportunity for a smoke-free casino to be established.
Wes Ehrecke, the current CEO of the Iowa Gaming Association, shared that Corbett’s proposal has its merits, but it is not a good idea for it to be related to the Cedar Rapids casino project.
Rep. Guy Vander Linden said that the plan really needs to be considered, yet the fact that it included information about the Cedar Rapids gambling venue, which had already been rejected by the commission, will certainly affect regulators’ opinion in a negative manner. He also added that he expects a robust debate.
