Iowa judge clears way for $275 million Cedar Rapids casino project

An Iowa judge has cleared a major legal hurdle for the $275 million Cedar Crossing Casino & Entertainment Center, ruling that a 2021 Linn County gaming referendum was valid and affirming the state’s decision to grant a gaming license.

Judge Michael Schilling of Iowa’s Eighth Judicial District rejected a challenge brought by Riverside Casino & Golf Resort and its nonprofit affiliate, upholding the Iowa Racing and Gaming Commission’s (IRGC) February decision to license the Cedar Rapids project.

“The court concludes that the decision to grant a gambling license for a Linn County casino Feb. 6, 2025, cannot be fairly characterized as an erroneous interpretation of law,” Schilling wrote in his decision.

The ruling allows construction of the Cedar Crossing facility to continue as scheduled, with developers targeting a Dec. 31, 2026 opening date.

“We’re full-speed ahead and from what I understand from P2E we’re still on schedule for New Year’s Eve, 2026,” said Anne Parmley, president of the Linn County Gaming Association. “We felt that the argument we made on behalf of Linn County was strong, and the judge agreed.”

The lawsuit centered on the language of the 2021 ballot referendum, which asked voters whether the operation of gambling games “may continue” in Linn County - despite the county not having a licensed casino at the time. Plaintiffs argued the phrasing misled voters and invalidated the measure.

Judge Schilling disagreed, said: “The petitioners’ argument that voters were misled or confused does not adequately acknowledge the facts connected with the election.” He noted that the vote followed “extensive media coverage” and “a decade of community conversations.”

The IRGC’s issuance of the license was also upheld as lawful and procedurally sound. Schilling said the agency had “met their duty” by evaluating market studies showing both potential cannibalization and overall growth in Iowa’s gaming sector.

The Cedar Crossing Casino is being developed by the Cedar Rapids Development Group, a consortium of local businesspeople, in partnership with Los Angeles-based Peninsula Pacific Entertainment (P2E). The facility will feature 700 slot machines, 22 table games, a sportsbook, and amenities including three restaurants, a 1,500-seat entertainment venue, an arts and cultural center, a children’s STEM lab, and a sports bar named after Iowa native and PGA Tour golfer Zach Johnson.

Developers have pledged a $50 million minimum property assessment, expected to generate $2 million annually in local taxes, and will contribute 8% of net adjusted gross revenue to local nonprofits—more than double the state’s required 3%.

Meanwhile, Riverside Casino warned that the new venue could trigger layoffs and reduce charitable giving. Independent analysts forecast revenue losses of $28.9 million to $34 million at Riverside in the years following Cedar Crossing’s launch.

“This is a huge opportunity for Cedar Rapids,” said Mayor Tiffany O’Donnell. “I couldn’t be more proud of our community for sticking with it … and doing what’s best for our city.”