The Q Casino + Resort marked a major milestone this week with the opening of the Key Hotel, a seven-story, 90-room property that represents the latest stage of a broad renovation and expansion effort on Chaplain Schmitt Island in Dubuque, Iowa. Community members and local leaders toured the new hotel during a ribbon-cutting ceremony, signaling a renewed push by the casino to strengthen its appeal as gaming competition increases across the region.
The hotel’s debut brings Q Casino closer to completing a renovation initiative valued at more than $75 million overall. The project includes updates to the gaming floor, the addition of the Island Social family entertainment area, and construction of a new outdoor amphitheater. The Key Hotel, which joins Hilton’s Tapestry Collection, also adds on-site lodging to a property that previously operated without a hotel.
Anthony Williams, president and CEO of Q Casino + Resort, described the expansion as a necessary step as the property works to attract a wider range of visitors. “This really elevates our ability to provide an excellent experience,” said Williams, according to KCRG. “This gives us the ability to speak to a broader audience of customers, whether it’s the business traveler, the weekend gamer, or the weekly gamer.”
Expansion Tied to Revenue Pressures
State gaming data shows that the investment comes during a period of softer performance for the Dubuque casino. According to the Iowa Racing & Gaming Commission, Q Casino generated $46,264,724 in revenue during fiscal year 2025. While that figure reflected a modest increase from the previous year, it remained about 12.7% below revenue reported in fiscal year 2022 and roughly 8% under fiscal year 2021 levels.
Williams said the numbers made clear that standing still was not an option. “Listen, we wouldn’t be doing it if we didn’t expect a return on our investment, and so absolutely, we expect all of the $75 million and more to help elevate earnings potential here in the island,” Williams said. “You have to have a growth strategy.”
The casino’s leadership views the Key Hotel as a way to recapture visitors and lengthen stays, especially as new gaming destinations open within driving distance. Hard Rock Casino Rockford launched in Illinois in August 2024 and quickly became one of the strongest performers in the Chicagoland area, generating $143.7 million in gross gaming revenue in its first year. In Iowa, the $275 million Cedar Crossing Casino in Cedar Rapids remains under construction and is scheduled to open in December 2026.
Unlike those competitors, Q Casino now offers gaming and lodging in a single location. While Hard Rock Rockford relies on nearby hotels and Cedar Crossing may consider a hotel after opening, Q Casino stands alone among the three in providing on-site accommodations.
Hotel Features and Broader Development Plans
Only a portion of the Key Hotel’s rooms are available to guests so far, with additional rooms and multi-room suites on the sixth floor nearing completion. A rooftop restaurant is also expected to open soon. The ground floor includes a finished fitness center and a lobby bar that serves coffee and breakfast items in the morning before switching to alcoholic beverages later in the day. Designers aimed to create a calm setting that works for both evening relaxation and daytime remote work.
The hotel itself represents a $47 million investment and forms part of a larger $83 million renovation and expansion effort by the casino and Dubuque Racing Association (DRA), the nonprofit license holder for the city’s casinos. Since 1985, the casino has directed more than $244 million to local nonprofit organizations. In 2025 alone, DRA shared $8.55 million in profit with the city, helping support municipal services while easing property tax pressures.
Local officials emphasized the role of collaboration in bringing the project to completion. “This is what private-public partnerships look like,” Williams said. “It took a lot of work in terms of understanding projections of what we could afford to build and the return on investment we could expect to see. At the end of the day, it took a strong partnership. … It turned out to be a beautiful project that people are going to be able to enjoy for many years to come.”
Construction continues nearby on a new outdoor amphitheater that Williams said should be finished around July. The venue is expected to extend the event season on the island from a few months each year to a year-round schedule. “We’re going to actually book regional entertainment,” Williams said. “We really want to explore the world of festivals and corporate events. We can offer a fully integrated resort. Whether you’re a gamer, a transient customer — a business or convention traveler, we can host something for you.”
Mayor Brad Cavanagh said the hotel had been discussed since he took office in 2021, when the former Iowa Greyhound Park still occupied the island. “To see (Schmitt Island) come alive in this way after that era has ended has been really exciting,” he said.
