Iowa introduces legislation for online gaming, bill not expected to be passed in 2023.
A bill proposing the expansion of Iowa's gambling landscape through online casino games has been presented in the Des Moines capital for the second year in a row. However, state legislators don't seem eager to allow online slot machines and table games just yet.
House Study Bill 227, introduced earlier this month by Rep. Bobby Kaufmann (R-Wilton), is essentially a copy of House Study Bill 604 from the 2022 legislative session. The legislation aims to stimulate discussions about whether or not the state should incorporate interactive slot machines and table games into its existing gambling scene.
Iowa currently houses 19 riverboat and land-based casinos where slots, tables, and sportsbooks are operational. Online sports betting is also legal in the state.
HSB227 has been assigned to the House Ways and Means Committee, chaired by Kaufmann himself. He mentioned that he's putting forth the iGaming study bill merely to keep the debate ongoing. He believes progress won't be made until the state's current gambling operators reach a consensus.
Bill Outline
Kaufmann's iGaming bill suggests the Iowa Racing and Gaming Commission could authorize licensed casinos to run interactive slots and table games online. Only the state's existing casinos would be eligible to operate online gaming.
Each casino would need to pay an initial $45K iGaming fee and renew the license annually for $10K. Under Kaufmann's terms, a casino would be entitled to operate up to two online gaming platforms or "skins." The bill doesn't propose a tax rate for the gross revenue generated by online casinos.
Kaufmann shared that โ since he doesn't intend to push the iGaming bill out of his Ways and Means Committee this year โ he can hold an iGaming hearing anytime before the legislature concludes its 2023 session in April.
Casino Consensus Needed
The likelihood of Iowa seeing any expansion in its gaming industry soon seems remote. The state's current licensed gaming operators only recently managed to convince state lawmakers to impose a moratorium on new licenses. In June 2022, Iowa Gov. Kim Reynolds (R) signed a bill that prohibits the state from approving new gaming projects until at least July 1, 2024.
The casino moratorium was the result of Iowa casinos lobbying state lawmakers to cap the market. The casinos argued that stability is crucial, given the pandemic and the opening of casinos in neighboring Nebraska. Iowa legalized online sports betting in 2019.
Over the past few years, there have been significant changes to the state's gaming laws in Iowa, according to Senate Majority Leader Jack Whitver (R-Polk). He added, "So there might be a little, maybe a lot, of gaming fatigue within the Capitol."
Officials in Cedar Rapids disagreed with the casino freeze. A group of local business people have been trying since 2014 to get state approval to build a $250 million casino resort. Cedar Rapids Mayor Tiffany OโDonnell wrote Reynolds requesting a veto on the casino moratorium, but her plea fell on deaf ears.
