The Iowa Racing and Gaming Commission decided to reject a $164 million proposal to build Cedar Rapids casino, worried that a new casino would hurt the existing business in the area. Cedar Rapids had proposed to build the casino in order to give an economic boost to the area, which was hit by a flood in 2008.
The boost would include millions in tax revenues, new jobs as well as donations towards charities, which could help build up the community once again as they have been struggling with money and jobs since the flood hit. Unfortunately Riverside Casino, Dubuque Casino and Waterloo casino all fought against the plan and were successful as the voting's ended 4 against and 1 for building the casino.
While all panel members believed that the intentions from Cedar Rapids Casino were good, they believe that the market is already overcrowded and would simply just end up having other casino's closing down their business. This would also mean that there might be a chance for a decrease in tax payments as well as local charities would lose their donations from the casinos.
The state of Iowa currently have more than 20 casinos and the casinos already in business feels that the market is overcrowded. For the same reason, no new casinos has been given a license to operate since 2010, as Iowa believes that the gambling industry should be stable.
