Iowa Gaming Revenue Dips for Third Straight Year

Despite the dip, revenues remain 15.2% above pre-pandemic levels, with the state’s 19 casinos continuing to generate significant tax contributions.

Ziv Chen

Last Updated: July 28, 2025 3:19 PM EDT • 3 minute read

Pictured: Televisions play sports shows on the casino floor above table games in Iowa, as we look at a decline in FY gaming revenue in the state. Photo by Joseph Cress/Iowa City Press-Citizen via Imagn Content Services, LLC.

According to data from the Iowa Racing and Gaming Commission, Iowa casinos generated $1.68 billion in adjusted gross revenue for the fiscal year ending June 30, a 2.6% decline from the previous year and marking the third consecutive year of revenue decreases. Despite the dip, revenues remain 15.2% above pre-pandemic levels, with the state’s 19 casinos continuing to generate significant tax contributions.

Prairie Meadows led all casinos with adjusted gross revenue (AGR) of $234.8 million in FY 2025, followed by Horseshoe Casino Council Bluffs with $178.7 million and Ameristar II Casino Queen, Marquette with $170.7 million.

Statewide gaming revenue peaked in fiscal year 2022 at $1.77 billion, after recovering from pandemic-era lows. However, recent figures reflect what industry leaders describe as a “rightsizing” of the market. Mary Earnhardt, President and CEO of the Iowa Gaming Association, said that the industry remains stable.

“What we are seeing is very much in line with what has been described over the past couple of years as a rightsizing after the unprecedented spike in gaming revenue that followed the pandemic,” Earnhardt told The Gazette.

Despite naming the industry stable, admissions still declined by 2.1%, and Iowa gaming tax revenue dropped 5% year-over-year.

The state’s casino tax system generated $314.5 million in state taxes, in addition to $15.7 million in city and county taxes, and $12.6 million for endowment funds. Slot machines remained the main revenue source, producing $1.52 billion, while table games generated $159.9 million.

The state doesn't have a legal real money online casino market.

Cedar Crossing fuels growth

Cedar Crossing Casino & Entertainment Center, a $275 million development in Cedar Rapids, is scheduled to open on New Year’s Eve 2026, becoming the state’s 20th casino. Two market studies commissioned by the Iowa Racing and Gaming Association project that the new casino will add $50 million to $60 million in annual revenue.

“At the end of the day, we feel that we enhance the state of Iowa by opening Cedar Crossing,” said Kim Pang, Vice President of Development at Peninsula Pacific, parent company of the project. “We believe we’re still in a growth stage in Iowa.”

Earnhardt noted that inflation and competition from neighboring states are influencing revenue patterns, but emphasized that Iowa’s gaming industry remains “a mature and responsibly regulated industry” that is well-positioned for long-term stability.

FanDuel fined $125K

Alongside the revenue report, regulators also issued significant penalties to US sportsbook operator FanDuel over the compliance failures.

According to Radio Iowa, the Iowa Racing and Gaming Commission fined the Iowa sports betting app $125,000 for allowing illegal bets on the Super Bowl, golf, and soccer matches. FanDuel was also fined $30,000 for failing to provide functional responsible gambling options.

Company spokesman Ben Roth addressed the violations at a June 11 commission meeting, stating, “We take responsibility for the matters represented in the settlement before the Commission today and understand that we did not meet the high standard that we hold for ourselves.”

Written by:
Ziv Chen

Ziv has over two decades of experience in the igaming and sports betting industry, having served in senior marketing and business development positions with both B2C and B2B companies, including Playtech and Microgaming. In 2019, Ziv decided to pursue his passion for writing and became a fulltime industry journalist, covering casino, sports, and gambling business news. He’s specialties include casino games and technology, US state gambling regulation, company performance, as well as gambling affiliates and marketing. As a Pitt graduate, Ziv is a diehard fan of all Pittsburgh sports teams, with the Steelers at the top of the list. In his free time, he enjoys reading crime fiction, biographies (mainly of sports personalities, but not only) and American history. Ziv’s Favorite quote: “We're going to pursue perfection, knowing full well we won't catch it, but we're going to relentlessly chase it," Mike Tomlin, Pittsburgh Steelers Head Coach.