Senate committee advances moratorium on new Iowa casinos, removes e-gaming study

A Senate committee voted to advance Senate Study Bill 1069 as amended, adopting a moratorium on new casinos in Iowa "until 02/1930" and removing language that would have directed a study of e-gaming, committee members said.

The amendment to remove the e-gaming study was moved by Senator Webster and approved by voice vote; Senator Webster then moved the bill as amended and the committee advanced the measure on a roll call, the clerk reported. The committee record in the meeting transcript shows a recorded "Aye" from Senator Webb; the clerk said the bill "moves under the calendar under rule 40." The bill text as described to the committee places a temporary ban on new casino licenses and directs rules and background guidance for the Racing and Gaming Commission for future casino expansion.

The bill drew split reaction. Senator Webster described the measure as a way to set "guidelines and guardrails" for the Racing and Gaming Commission and said the commission should have "basic policies set by policyholders" — by which he meant the legislature — to guide future licensing and expansion. "This particular bill has given us an opportunity to make that policy, set some guardrails for that particular committee, and allow them in the future to follow those guardrails," Webster said.

Opponents said the bill improperly restricts market entry and usurps the commission's authority. Senator Kornbach, identifying himself as a professional economist, said limiting entry into the casino market is inconsistent with free-market principles and stated plainly, "I'm a no on this bill." Senator Walz questioned the bill's effect on the Racing and Gaming Commission's role, asking, "What's the point of the commission?" and warned the measure amounts to the legislature "putting its thumb on the scale" by preventing new licenses for six years.

Committee discussion also included a procedural amendment, described in the hearing as "amendment SSB 1110" and later referenced as "amendment 110," that removed the sections of the bill that would have created a study of e-gaming. Senator Webster moved the amendment and said, "I simply move the amendment." The amendment passed by voice vote; the committee then advanced the amended bill on a roll call.

Votes at a glance: the committee approved the amendment removing the e-gaming study by voice vote (ayes recorded in the transcript) and advanced Senate Study Bill 1069 as amended on a roll call; the transcript records Senator Webb saying "Aye" during that roll call and the clerk announcing the bill "moves under the calendar under rule 40." The complete roll-call record is not present in the transcript excerpt provided.

The bill, as described at the hearing, would pause issuance of new casino licenses statewide and set statutory guidance for how the Racing and Gaming Commission handles future expansion. Committee members debating the bill framed it as a measure to control the pace and location of casino growth rather than as action targeted at any single proposed project in Cedar Rapids or elsewhere.

The committee chair returned the gavel to Senator Webster after the vote and adjourned the meeting.