Iowa Approves Legislation Targeting Sweepstakes Casinos and Illegal Gambling

(AsiaGameHub) –   Legislation aimed at sweepstakes casinos and various illegal gambling activities has been approved in Iowa. Governor Kim Reynolds endorsed the bill, granting state authorities the power to issue cease-and-desist orders to operators.

Last month, both the House and the Senate unanimously approved Senate File 2289. This legislation authorizes the Iowa Racing and Gaming Commission (IRGC) to intervene, “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”.

Currently, no prominent sweepstakes casino platforms prohibit Iowa residents from participating. Furthermore, the bill permits the Commission to pursue operators providing pari-mutuel wagering, advance deposit wagering, and fantasy sports without proper licensing.

In Iowa, tribal and commercial casinos, sports betting, lotteries, and fantasy sports are legally permitted, provided they possess a valid license. The recently enacted legislation does not explicitly outline penalties for illegal operators, but rather empowers the Commission to take measures against such entities.

Introduced in January, the bill advanced smoothly through both the Senate and House, receiving no dissenting votes.

Racing and Gaming Commission Supports Legislation

Tina Eick, the IRGC administrator, publicly endorsed the legislation, which strengthens her agency’s powers. She noted that existing laws do not grant the Commission “clear authority” to act against entities other than the casinos and sportsbooks it currently licenses.

While licensed companies are subject to rigorous standards, the Commission lacks the ability to address unlicensed operators.

“Our robust regulatory framework guarantees fair games,” Eick stated. “We hold these operators accountable – ensuring their information and funds are secure, implementing responsible gaming and self-exclusion programs, and collecting taxes from them. They contribute their equitable share of taxes to Iowa.”

Beyond its focus on unregulated gambling, the legislation also increases the expense allowance for Commission members. The new provisions permit members to receive up to $45,000 in annual expenses, an increase from the previous $30,000.

Iowa Aligns with Other States in Targeting Sweepstakes Casinos

Iowa marks the fifth state this year to enact legislation against sweepstakes casinos. Earlier this month, Oklahoma approved a prohibition, with lawmakers successfully overriding Governor Kevin Stitt’s veto.

Prior to Oklahoma, Tennessee, Indiana, and Maine had all passed laws to outlaw these platforms. In Louisiana, a bill has also been approved and is awaiting Governor Jeff Landry’s signature. Last year, Landry vetoed comparable legislation, citing the state’s existing authority to address unlicensed gambling.

Although most platforms persist in operating within Iowa, they have largely withdrawn from Louisiana. Last year, several other states also prohibited sweepstakes casinos, including California, Nevada, New York, New Jersey, Montana, and Connecticut.