The subcommittee on House Study Bill 80 hears arguments from lobbyists.Photo: JD Snover
(Des Moines, IA) -- Legislation that would disallow the Iowa Racing and Gaming Commission from issuing gaming licenses until July 1, 2030, is moving through committee. House Study Bill 80 went through both a subcommittee and full Ways and Means Committee meeting on Monday.
Supporters of the bill, including Speaker Pat Grassley, are in a race against the clock because a decision on a proposed casino in Cedar Rapids is expected next week. They'd need the Senate to take up and pass the same bill and get Gov. Kim Reynolds' signature on it by February 6th.
"We've been clear in our position of it," Grassley says. "But I also don't think that if the bill were to go over to the Senate...my expectation is it wouldn't be us just passing a bill and it would be dead on arrival."
Supporters of the moratorium say the proposal in Cedar Rapids, and any other casino project, would be a detriment to existing businesses. Frank Chiodo is a lobbyist who represents Elite Casino Resorts, operators of casinos in Davenport, Riverside and Grand Falls.
"The study in which the commission put out shows a 26% hit to our facility," Chiodo says. "That is roughly $35 million. Any business owner or operator not concerned about it in this situation shouldn't be in business."
But opponents argue the state government would be overstepping with this bill. Rep. Sami Scheetz (D-Cedar Rapids) says competition is healthy.
"This bill specifies that if there is a 10% impact on a neighboring casino operation that there should not be any new licenses granted," Scheetz says. "In what industry in the state of Iowa is that a thing?"
Although the bill has passed through the committee phase, leading supporters say they're still interested in conversations on the topic. Rep. Boby Kaufmann (R-Wilton) is sponsoring the bill.
"I do, however, want to make sure that people know that I'm willing to continue conversations as always," Kaufmann says. "I certainly do respect all issues that were brought up today."
The version headed to the floor will be eligible for debate as early as Thursday.