Adam Roarty is a journalist covering sports betting, regulation, and industry innovation for CasinoBeats. His coverage includes tax increases in the UK, covering breaking stories in the ever-evolving landscape of US betting such as the...
Read Full BioA new bill in Iowa would empower the state’s gambling regulator, the Iowa Racing and Gaming Commission (IRGC), to take action against unlicensed gambling platforms.
Currently, the IRGC’s authority is limited to licensed casinos and sportsbooks. If passed, the bill would allow the regulator to take action against companies it deems are offering gambling without a valid license.
The bill states that the action includes, but is not limited to, “issuing cease and desist orders and obtaining injunctive relief.” It specifically mentions taking action against “a person offering games of chance, gambling, sports wagering, or illegal sweepstakes” as well as fantasy sports.
The Iowa Department of Inspections, Appeals, and Licensing filed the proposal ahead of the new legislative session that begins in Iowa on January 12.
Iowa legalized online sports betting in 2019, but despite some efforts has not yet approved online casinos. The bill targets companies that have found legal loopholes to offer casino-style games to Iowans, such as sweepstakes casinos.
IRGC Backs Bill to Increase Regulatory Control
IRGC administrator Tina Eick has publicly backed the bill to increase the agency’s powers. In comments to Iowa Capitol Dispatch, Eick stated that the Commission aims to be proactive in addressing unregulated gambling. She said, “When Iowans gamble on unlicensed platforms, they’re putting their money and their personal information at serious risk.”
She added that her office holds licensed operators to account, ensuring their actions follow strict guidelines, and wants any companies operating outside of these rules to be held accountable.
She stated, “We have a strong regulatory system that ensures the games are fair. We hold those operators accountable – their information and their funds are secure, and then they have responsible gaming, self-exclusion programs in place, and then we tax them. They pay their fair share of taxes to Iowa.”
She went on to assert, “The bottom line is, illegal gaming undermines the public trust and puts Iowans at risk.”
Bill Doesn’t Cover ‘Complex’ Prediction Markets
The bill does not attempt to address prediction markets, and Eick does not appear ready to take a firm stance against platforms that are now offering Iowans access to a range of markets, including sports.
She said the issue is “more complex,” but voiced concerns over the industry, which has experienced significant growth in recent months. She added, “It lacks some of the consumer protections that we see in the regulated gaming industry that we currently have in Iowa.”
Other state regulators have been active in opposing sweepstakes casinos and prediction markets. A host of states took action last year against sweepstakes operators, with many arguing they operate outside state gaming laws.
Prediction markets have also attracted attention, with the first group of states issuing cease-and-desist letters to Kalshi and other operators in April of last year. This year will likely see further legal action taken as states attempt to get to grips with new forms of gambling.
Eick added, “For the integrity of the industry, and so that Iowans don’t lose faith in the regulated and secure market, we need to do something about these other markets.”
