Iowa has approved legislation that targets sweepstakes casinos and other forms of illegal gambling. Governor Kim Reynolds signed the bill that empowers state authorities to issue cease-and-desist orders to operators.
Lawmakers in the House and the Senate both passed Senate File 2289 unanimously last month. It enables the Iowa Racing and Gaming Commission (IRGC) to take action, “including but not limited to issuing cease and desist orders and obtaining injunctive relief against a person offering games of chance, gambling, sports wagering, or illegal sweepstakes in this state without holding an appropriate license issued by the commission”.
At the moment, no major sweepstakes casino platform excludes Iowa residents. It also allows the Commission to take action against operators offering pari-mutuel wagering, advance deposit wagering, and fantasy sports without a valid license.
Iowa legally allows tribal and commercial casinos, sports betting, lotteries, and fantasy sports, but only if holding a valid license. The new legislation does not explicitly provide a punishment for illegal operators, but only states that the Commission can take action against companies.
The bill was introduced in January and made smooth progress through the Senate and House, with no dissenting votes.
Racing and Gaming Commission Back Bill
IRGC administrator Tina Eick publicly backed the legislation that empowers her agency. She said the current laws mean the Commission does not have the “clear authority” to take action against anyone other than the casinos and sportsbooks that it currently licenses.
Licensed companies are held to high standards, while the Commission is unable to do anything against unlicensed operators.
“We have a strong regulatory system that ensures the games are fair,” Eick said. “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.”
In addition to targeting unregulated gambling, the bill also raises the expenses for Commission members. Under the new terms, members can receive up to $45,000 in yearly expenses, up from the current $30,000.
Iowa Joins Other States Targeting Sweepstakes Casinos
Iowa becomes the fifth state to pass legislation against sweepstakes casinos this year. Oklahoma approved a ban earlier this month, with lawmakers overriding Governor Kevin Stitt’s veto.
Before Oklahoma, Tennessee, Indiana, and Maine all passed legislation to ban the platforms. A bill in Louisiana has also been approved and awaits Governor Jeff Landry’s signature. Landry vetoed similar legislation last year, citing the state’s existing powers to target unlicensed gambling.
While most platforms continue to operate in Iowa, they have largely exited Louisiana. Last year, several states also outlawed sweepstakes casinos, including California, Nevada, New York, New Jersey, Montana, and Connecticut.
