The rise of gambling has propelled a Midwestern state into becoming a prominent alternative to Las Vegas, but this prosperity comes with significant consequences for its residents.

According to the state’s Racing and Gaming Commission, Iowa’s gaming revenue surged by 4% in August 2025, reaching an impressive $151.2 million compared to the same period last year, as Las Vegas faces several signs of decline.

Tom Coates, president and co-founder of Consumer Credit of Des Moines and a board member of Stop Predatory Gambling, revealed to the Daily Mail the hidden costs of Iowa’s booming success: addiction and mounting debts.

“Many individuals struggling with gambling addiction are more susceptible to suicide,” Coates explained. “Gambling pushes more people toward that end than even heroin addiction does.”

Since establishing his debt-counseling business in 1987, Coates has assisted over 100,000 individuals and families in regaining their financial stability.

Reflecting on the past, the Iowa native noted that initially, only New Jersey and Nevada were casino states, operating under what was known as the “tourist model.”

‘That means that most of the casinos’ business in New Jersey and Nevada was coming from outside their immediate radius – tourists coming in, spending their money and then going back home.’

Iowa, he explained, became the first in the union to deploy the ‘native model,’ a strategy where the 19-state licensed casinos make their profits from residents within 40 miles.

Iowa’s gaming revenue has increased by 4 percent this August compared with the same month in 2024, now at a whopping $151.2 million

Harrah’s in Council Bluffs is one of the casinos pulling in locals

Sunset over Council Bluffs, Iowa. It is home to three casinos 

‘Once that worked out, many other states followed suit. In fact, that’s probably part of the reason that we had 40 high-paid lobbyists come in and lobby our legislators to be one of the early states to pass the sports gambling bill.’

In the 1990s, the state asked Coates to oversee the 1-800-BETS-OFF hotline – a phone service for those struggling with gambling addiction.

‘We went from a few dozen crisis calls a month to 300 to 400,’ he said.

Coates outlined some of the more tragic stories he encountered while helping those using the hotline.

He recalled a particularly harrowing case of a young wife and mother who had been out all night at the casinos gambling on the slots in the pre-cellphone era.

The woman pulled into a gas station to call the hotline because she had not wanted to go home and ‘face the music.’

‘She was driving on a back road looking for a deep ditch so that she could drive the car off of and kill herself, commit suicide,’ Coates said.

Tom Coates, the president and co-founder of Consumer Credit of Des Moines, and a member of the Stop Predatory Gambling board, explained the true cost of the increased gambling

A particular hotspot in Iowa is Council Bluffs, where Harrah’s, Ameristar and Horseshoe Casino are conveniently located near each other

‘She said as she was looking for that deep ditch, the heavens opened up and an angel came down, sat beside her, and convinced her that this wasn’t the way to go.

‘Her life was saved but many others have not been.’

A 2024 Kindbridge Behavioral Health report that included a study from Rutgers University Center for Gambling Studies found gamblers were more likely than non-gamblers to have morbid thoughts, including an expressed desire to die. 

It also found that 28 percent of problem gamblers reported suicidal ideation, while 20 percent indicated that they had attempted suicide.

‘Around the casinos,’ Coates said, ‘too many people still go and waste their money.

‘If they just spent the money in their pocket, that’d be fine – but they run through that quickly and dip into their plastics [credit cards]. They rack up a lot of debt and they can’t repay it.

‘It’s very sad to see some of these cases.’

With the evolution of sports betting, Coates warned that gambling shows no signs of slowing down.

‘The younger generation is not interested in coming and sitting on a stool all night long,’ he said.

Ameristar Casino Hotel in Council Bluffs is in Pottawattamie County on the Missouri River

Coates said that the target audience for online gambling is young men but he has seen many women struggling with addiction 

Mary Earnhardt, president and CEO of the Iowa Gaming Association, said: ‘Iowa’s casinos have become premier and distinctive tourism attractions that draw visitors from across the Midwest and beyond’

‘Casinos didn’t initially really want online gambling, sports gambling and everything but they saw the future and had to kind of hook up to it. By hooking up to it, I mean they understood that the online gambling was coming.

‘So they’ve got to get some of their games up online and that’s the trend. There’s gonna be more online gambling. 

‘The brick and mortars will be there mostly for other things but the online gambling is what’s coming – and fast action games that have nothing to do with physical sports, intentionally addictive. It already is a huge problem, and it’s gonna be a bigger one.’

Many casinos in Iowa already mirror Las Vegas venues with live music, in-house restaurants and nightclubs.

Mary Earnhardt, the president and CEO of the Iowa Gaming Association, told the Daily Mail why the industry is booming.

‘Through ongoing reinvestment, our operators have created destinations that blend gaming with exceptional entertainment, dining, lodging, event experiences, and amenities,’ Earnhardt said.

She went on to describe how investing in the economy of gambling enhances the overall experience but also strengthens Iowa’s broader tourism economy.

‘Each casino serves as an anchor for local tourism and economic growth. They draw visitors who extend their stays, explore nearby attractions and support local shops and restaurants.

‘The industry’s success translates directly into jobs, local tax revenues and economic strength across the state.’ 

The Iowa casino hub of Council Bluffs has almost half the crime rate of its rival, Las Vegas

The Prairie Meadows Casino Racetrack Hotel in Altoona brought in $21.1 million in August

Casinos contribute $1 billion annually to the state’s economy through salaries, sales of local products and services, charitable contributions and taxes, according to the Iowa Gaming Association.

Thousands are employed in Iowa’s 19 casinos, including the Prairie Meadows Casino in Altoona, which recorded the highest income in August of $21.1 million.

The vast majority of earnings come from slot machines, which brought in $136.7 million while table games collected $14.5 million.

A particular hotspot is Council Bluffs, where Harrah’s, Ameristar and Horseshoe Casino are located near each other in Pottawattamie County on the Missouri River across from Omaha, Nebraska.

The average nightly rates at the resorts and casinos in October range between $100 and $150 – far less than $209 a room at Caesars Palace in Sin City.

Las Vegas recorded 4.56 million passengers for August – an almost 6 percent drop compared to the same month last year, according to Harry Reid International Airport. The city has lost around 300,000 visitors a month this year.

The Bluffs is also a relatively safe place: it has a crime rate of 24.13 per 1,000 residents in a typical year while its competitor in Nevada has 39.17, according to Crime Grade.