Casinos in Tama, Waterloo and Riverside Consider Negative Effects of New Linn County Casino

Tribal leaders of Meskwaki Bingo and Casino in Tama have joined other Eastern Iowa casinos in fretting about plans for a new casino venture in Linn County.

A statement from the Sac and Fox Tribe said a Linn County casino would cannibalize revenue from the Meskwaki Casino, which is about an hour from Cedar Rapids, cause unemployment in Tama County to "skyrocket" and lead to local business closures.

"The truth is – this group of wealthy investors led by Steve Gray is willing to do and say whatever it takes to make money and they are expecting the people of Cedar Rapids to blindly follow their lead," the statement said.

Leaders of Riverside Casino and Isle Casino Hotel Waterloo, which are each within an hour's drive of Cedar Rapids, have also said a Linn County casino could have negative effects.

Supporters, which include several public officials and economic development groups in Linn County, say the casino proposal by 22 investors would add jobs, tourism dollars and help the area which is still battling back from the 2008 flood.

A portion of casino revenue is distributed through grants to community projects in the host county.

Linn County Supervisors set March 5 as the date for a special election on a casino, after a successful petition drive to put it to a public vote. Even if voters approve, Iowa Racing and Gaming Commission would still have to grant a license.

A May 2009 gaming market analysis report by GVA Marquette Advisors to the Iowa Racing and Gaming Commission called Cedar Rapids a "'key feeder market' for casinos in Riverside, Waterloo, Dubuque, Clinton and the Quad Cities as well as the casino on the Meskwaki settlement west of Tama."

"A new casino in Cedar Rapids likely would create 'strong cannibalization' from existing casinos," the study stated.

Dan Kehl, chief executive of Riverside Casino, said the market in this area of the state is saturated with casinos and that the Cedar Rapids market is critical to Riverside.

"It would devastate the Riverside casino," Kehl told the Gazette when Linn County casino talk started to resurface.

Beth Knipp, executive director of the Black Hawk County Gaming Association which holds the gaming license for the Isle Casino, told the Waterloo-Cedar Falls Courier they're monitoring the Linn County proposal and it could "negatively impact Waterloo and Riverside, at a minimum.”

Linn County investors are currently eying locations Interstate 380, which connects Waterloo, Cedar Rapids and Riverside, reports the Gazette.

Steve Gray, who is heading up the casino investor group called Cedar Rapids Development LLC, estimated that only $18 million of a projected $80 million in annual revenue would be siphoned from existing casinos, and about half of that would come from Meskwaki, the Gazette reports.