Race to Legalize Online Poker in Iowa

A bill proposed by Senator Jeff Danielson, regulating online poker and legalizing online gambling, is being reviewed by an Iowa legislative sub-committee. The deliberation is based upon the results of a study released by the state of Iowa that made the case that the legalization of online casino games would generate between $13-$60 million in one year. This would infuse the state with a $3-$13 million tax revenue boost. As the economy in the State has experienced challenges in the last few years, the income could be significant for the State.

The United States Department of Justice recently changed its position on the 1961 Wire Act, which has now been interpreted as applying only to sports betting. The bill proposed by Senator Danielson is a response to this change. The Senator stated that the Department of Justice’s ruling “took a significant hurdle away from the ability to play poker online.”

He went on to say, “We believe by the end of this year you will see a handful of states continue to authorize it. “Because of the Department of Justice’s opinion, we believe you’ll see very quickly multi-state compacts.”

Last year Senator Danielson proposed Senate Bill 458, but it failed to gain significant momentum. The new bill, SSB 3164, created with the support of United States Digital Gaming, is positioned to receive much more thorough consideration in the State Government Subcommittee in the coming days.