Legalized online poker is one step closer to a reality in Iowa. Senate File 2275, an “Act authorizing licensees… to operate internet wagering on poker,” passed the state Senate Tuesday by a vote of 29 to 20.
The bill was introduced by State Senator Jeff Danielson (D – Cedar Falls) on February 27th, nearly a year after a similar bill he introduced died in the same Senate through which it just passed. At the time, Danielson told the Associated Press, “I just think people need a clearer picture of the evidence and I don’t think they’re ready in this session to legalize it. So we want to give them the best information possible as we go into next year.”
The old bill was amended to request a study by the Iowa Racing and Gaming Commission. The findings of that study were published in December, which estimated that intrastate online poker in Iowa would bring in $3 to $13 million in annual tax revenue. Also in December, the U.S. Department of Justice changed its stance on online poker, saying that the Wire Act of 1961 only made online sports betting illegal. This appears to have been a catalyst for Danielson’s introduction of S.F. 2275. In January, he said, “We believe that because of the Department of Justice ruling, we can now have a multi-state compact.”
It does appear that the bill allows for not just online poker within state borders, but also for interstate online poker. Section 10, reads, in part, “An internet wager may be placed from any location within this state or from any other location where authorized by law, subject to any requirements adopted by the commission.”
In order to acquire an online poker license, potential operators would have to partner with state-licensed brick-and-mortar casinos – no stand-alone internet poker sites allowed. As expected, the minimum gambling age will be 21 and until a potential multi-state compact is drawn up, the operators may only serve poker players within Iowa borders. Tourists will be allowed to play online, but they must establish an account at a brick-and-mortar casino first.
The voting on S.F. 2275 was split largely along party lines in the Senate. Of the 29 “yea” votes, 21 were from Democrats and just 8 were from Republicans. That picture was reversed amongst the “nays,” where 15 of the 20 negative votes were cast by Republicans. It looks to be a tougher go for the bill in the House, where 60 of the 100 Representatives are Republican. House Speaker Kraig Paulsen (R – Hiawatha) told the Quad City Times that the bill “faces dim prospects for passage.”
Rep. Jeff Kaufmann (R – Wilton) paints a grim picture for online poker fans in the state. “From my perspective, I think at this point in the year with the Senate burying a property tax bill and the Senate not moving on so many of our job-creation bills, I don’t see why in the world they would be spending time on online gaming when we have jobs that we need to create in this state,” he told the Times. “I think it’s a waste of our time.”
