Iowa’s gambling industry saw a decline in revenue for February 2025, compared to February 2024. According to the Iowa Racing and Gaming Commission, total revenue fell by 11.1% year-over-year, amounting to $127.3 million. This is a decrease of over $15 million from the $143.3 million generated in February the previous year. The decline in revenue is not surprising, given the various factors affecting the casino industry. These factors can significantly influence casino earnings, including shifting consumer preferences, economic uncertainties, and increased competition from online gaming platforms.
Some individuals now prefer online casino game versions over their physical counterparts for various reasons. For instance, a gamer might choose online BTC baccarat, poker, or blackjack instead of land-based table games due to the convenience and variety of payment options. For example, players can make deposits and withdrawals using cryptocurrency like Bitcoin, which provides privacy and anonymity. Online crypto casinos typically offer players exclusive crypto bonuses and promotions, making them more appealing than brick-and-mortar casinos. Matching these rewards and promotions can be challenging for physical casinos since they incur overhead expenses that online casinos do not.
For traditional casinos to remain profitable, they must attract more visitors to their establishments. This would include looking at their marketing strategies differently and offering bonuses and promotions that are competitive, without straining their budgets.
In February 2025, the Iowa Racing and Gaming Commission approved a license application for a new casino in Cedar Rapids, a decision that was met with discontent from the state’s 23 casinos. The concern is that a new casino would economically harm their businesses. Some lawmakers agreed with this observation and proposed a five-year moratorium on new casinos in the state. Unfortunately, the proposal did not progress.
Had the moratorium been sanctioned, the Iowa Racing and Gaming Commission would have been barred from issuing new gaming licenses until June 30, 2030. There have been two earlier efforts to set up a casino in Cedar Rapids, but both were unsuccessful. In both cases, the Gaming Commission contended that launching a new casino would negatively impact the current 19 commercial casinos in the state.
The 11.1% decline in revenue observed in February suggests that casino earnings can be influenced by factors other than the opening of a new casino nearby. The casinos must devise strategies to enhance their income to stay relevant in the industry. Out of the 19 casinos, merely three indicated revenues that surpassed $10 million in February 2025. The three venues, Ameristar II, Horseshoe Casino Council Bluffs, and Prairie Meadows Racetrack & Casino, together produced almost $43 million.
Aside from these three, only nine casinos exceeded the $5 million mark, with Riverside Casino and Golf Resort falling slightly more than half a million short of hitting $10 million. Out of the 19 licensed casinos in Iowa, just two saw an increase in their revenues. Although the growth might not be substantial, Q Casino and Catfish Bend Casino both announced a rise in their revenues, in contrast to the other casinos, which saw revenue drops of as much as 20%.
While the Iowa casino industry is still coming to terms with a decline in revenue, the House Study Bill 148 could further affect their earnings if approved. The bill aims to remove the exemption for casinos under Iowa’s Smoke-Free Air Act. The Act was passed in 2008 to protect residents from the dangers of secondhand smoke, and casinos were previously exempt from its provisions. Iowa’s Smoke-Free Air Act does not allow smoking in most public places, including restaurants and bars, and also workplaces such as office buildings. Currently, smoking is permitted on the gaming floor of licensed casinos, as well as in designated hotel and motel rooms.
The lawmakers who are in support of the bill argue that all workers have the right to work in an environment that is free from smoke, while their opponents’ argument is based on economic factors. They are worried that removing casinos from exemption could result in reduced overall gaming revenue. Some casino patrons are smokers, and banning smoking in casinos could drive away these customers. The bill is currently pending further debate and potential passage.