Two independent market studies commissioned by the Iowa Racing and Gaming Commission (IRGC) suggest that adding a casino in Cedar Rapids could oversaturate Iowa's gaming market.

The studies, conducted by Marquette Advisors and The Innovation Group, analyzed the potential impact of the proposed Cedar Crossing Casino project on the state's gaming industry.

Key Findings:

• Projected first-year revenue: $116.5-118 million
• Cannibalization concerns: 48-60% of revenue would come from existing Iowa casinos
• Riverside Casino & Golf Resort could face 12-30% revenue decline
• Market capture rate expected to drop from 72% to 59% due to competition from neighboring states

The Cedar Rapids Development Group seeks to build the casino on 25 acres of city-owned land west of the Cedar River. However, both studies highlight challenges from new gaming establishments in Nebraska, Illinois, and Wisconsin.

The studies emphasize that Iowa's casino market is mature, with 63% of adjusted gross revenue coming from customers within a 45-minute drive of existing facilities. Most Iowans already have convenient access to casino gaming.

The IRGC will vote on February 6 regarding the addition of what would become Iowa's 20th casino.

Related Articles

Previous Articles