The Iowa Racing and Gaming Commission voted 3-2 Thursday to grant a license for a $40 million casino development northwest of Des Moines.
Supporters of the Jefferson casino burst into applause during a meeting in Burlington when commission chairman Jeff Lamberti cast the deciding vote in favor of the license. Lamberti said it was a "very, very difficult decision."
It's the first license granted for a new casino by the commission since 2010. The commission in April rejected a plan for a Cedar Rapids casino, citing market saturation.
Wild Rose Entertainment plans to build a resort that would include slot machines, table games, an events center and a 71-room hotel.
Prairie Meadows casino in Altoona lobbied against the plan, warning that it would hurt its operation.
Jefferson has about 4,200 residents and is 60 miles from Des Moines.