Iowa Online Gambling

Iowa gambling laws have fostered a substantial land-based casino industry. Iowa has 20 brick-and-mortar casinos, which is a lot for the state ranked 31st in population size. Iowa has three racinos, a state lottery which embraces Mega Millions and Powerball, and a large charitable gambling sector. Starting in 2017, Iowa has simulcasting and off-track betting — a sign the current legislature is ready to pass more gaming laws.

At the same time, Iowa has an expansive definition of gambling. Authorities also considered most form of unregulated gaming as illegal. With four degrees of illegality, the state is ready to enforce even minor offenses. With a hardline policy on online poker, daily fantasy sports, and other skill games, Iowa is state where players must think long and hard about unregulated gambling.

Best Iowa Online Casinos, Sportsbooks & Poker Sites 2019

Iowa State Gambling Laws

Laws That Pertain to Iowa Gambling

Iowa gambling laws do not distinguish between a player and an operator. The law does distinguish between the amount of wagering taking place, which obviously means operators tend to be more liable. High rollers are punished more in Iowa than most states, though.

Section 725.1(1)

A person shall not do any of the following:

1. Participate in a game for any sum of money or other property of any value.
2. Make any bet.
3. For a fee, directly or indirectly, give or accept anything of value to be wagered or to be transmitted or delivered for a wager to be placed within or without the state of Iowa.

Almost any form of unregulated gambling is considered illegal, similar to Illinois and Indiana. In fact, Iowa’s definition of gambling is somewhat more expansive. Not only is risking a sum of money or other property gambling, but also giving or accepting anything of value (to make a wager) for a fee is considered gambling. This stipulation covers numbers running, but also would cover fees charged by poker clubs.

Presumably, Section 725.1 could be applied to online gambling sites. If a poker site, online sportsbook, or online casino charged fees of any kind and then offered gambling, it would fall under provisions of the law. In Iowa, players face charges of illegal gambling in “four degrees”. The more you wager, the higher your sentence. Gambling over $5000 is illegal gambling in the 1st degree. Wagering between $501 and $5000 is gambling in the 2nd degree. Betting between $101 and $500 is gambling in the 3rd degree, while risking $100 or less is considered gambling in the 4th degree.

Is Gambling Legal in the State of Iowa?

Yes, land-based forms of gambling are legal in Iowa, including casinos, racetracks, charitable gambling, and lottery ticket sales. Despite a few idiosyncratic laws involving illegal gambling, Iowa lawmakers stay firmly in the mainstream of American statutes when it comes to gambling.

Online gambling is a different matter. Despite attempts in 2012, 2013, and 2018, online poker is unlikely to be legalized anytime soon. An attempt to combine a sports betting and online gambling bill in 2019 has some chance of being passed. Iowa newspapers have endorsed such a move. It remains unlikely, because the revenue stream it would create does not appear great enough to offset the downsides: the costs of implementation, land-based casino revenue cannibalization, and perceived social costs.

Iowa Gambling Laws

Type of Gambling – Offered/Licensed? – Notes & Restrictions

• Online Gambling – No – Online poker and casinos are banned.
• Land-Based Casinos – Yes – 20 land-based casinos and 3 racinos.
• Charitable Gaming – Yes – Both bingo licenses and social gambling licenses.
• Lottery Betting – Yes – State Lottery (1985), Powerball (1988), Mega Millions (2010).
• Minimum Gambling Age – 21 for all forms of gambling.

Is Online Poker Legal in Iowa?

Iowa Online Poker Laws

Iowa has not legalized online poker. In 2012, the Iowa Senate passed Senate File 2275 by a margin of 29-20, but the bill failed in the General Assembly. In 2013, the Senate Study Bill 1068 was introduced. Eventually, SSB 1068’s sponsors realized the Republican-controlled legislature would vote down the bill, so they let it die in committee.

In 2015, the Iowa Racing and Gaming Commission (IRGC) approved a study which showed that online gambling would generate $13 million a year in revenue for the state government. The IRGC report failed to win support, so no bill was introduced until 2018. An attempt to pass online gambling failed in 2018, but might be on the table in 2019 or 2020, due to the inclusion of a sports betting bill that would allow Iowa’s casinos to operate sportsbooks.

On January 15, 2019, The Gazette published an op-ed article by Adam Sullivan which made the case for Iowa to legalize online poker. Sullivan pointed out it is unlikely to happen, because of the large number of land-based casino operators in the state. It’s counterintuitive, but land-based casinos often oppose online gambling, because they think customers will stay home to play online poker and spend less than they would in their casinos.

In the case of Iowa, the land-based casino operators largely supported the sports betting and online gambling bill — but it failed anyway. Adam Sullivan wrote, “There was an unsuccessful bill in the Iowa Legislature last year (2018) to authorize sports betting in-person and online, after the U.S. Supreme Court struck down a federal statute that strictly limited states’ sports betting programs. Gaming lobbyists supported that bill, since it would have put the new system under control of existing licensees.”

It is not out of the realm of possibility that Iowa could pass online poker in the next few years, but it has a history of failure in the legislature.

Is Sports Betting / Daily Fantasy Sports Legal in Iowa?

Sports betting is, in many ways, tied to online poker in Iowa. Since last year’s bill included sports betting and online gambling, it is natural to predict that a 2019 sports betting bill could include online poker and casino betting. Since the state’s land-based casinos supported last year’s bill after 5 years when no bill was introduced, it is likely that support stemmed from a hope for adding sportsbooks.

In that case, then Iowa lawmakers eventually might separate sports betting from online gambling. Sportsbooks in casinos might pass on its own accord, though such a bill might not be forthcoming until 2020 or later, when attempts at an omnibus gambling bill fail (if they fail). Iowa has more activity than some of its neighbors, though.

One point against sports betting legalization is Iowa’s attitude towards daily fantasy sports. Iowa’s legislature refuses to legalize DFS gaming. Worse, DraftKings, FanDuel, and Fantasy Draft do not accept real money players from Iowa. As a good rule of thumb, when daily fantasy sports can’t pass in the legislature, sports betting is doomed.

Does Iowa have land-based casinos?

Iowa has more than its share of land-based casinos. It has 20 brick-and-mortar casinos, including tribal and commercial gaming operations. Indiana also has one horse track casino and two dog track casinos, for a total of 23 land-based casino operations in the state.

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