Two recent market studies examining the potential impact of a Cedar Rapids casino suggest Iowa's gaming market has reached saturation point. The studies were commissioned by the Iowa Racing and Gaming Commission (IRGC) to evaluate a proposed casino project on 25 acres of city-owned land near the Cedar River.

Key Findings:

• Marquette Advisors projects $118 million in first-year gross gaming revenue (GGR)
• The Innovation Group estimates $116.5 million in first-year GGR
• 60% of revenue would come from existing Iowa casinos according to Marquette
• The Innovation Group projects 48% cannibalization of current casino revenue

Market Challenges:

• New competition from eastern Nebraska and Illinois commercial casinos
• Additional competition from Wisconsin tribal resort
• Expected decline in Iowa casino market capture from 72% to 59%
• 63% of current Iowa casino revenue comes from within 45-minute drive time

Impact on Existing Casinos:

• Riverside Casino & Golf Resort would face the largest impact
• Marquette projects 30% revenue decline for Riverside
• The Innovation Group estimates 12% revenue loss for Riverside

The IRGC will vote on February 6 whether to approve what would be Iowa's 20th casino. The studies suggest the state's gaming market is mature with most residents already having convenient access to casino facilities.

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