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Iowa's governor has signed a measure into law that improves enforcement against sweepstakes casino operators though they are not outwardly banned
Iowa already treats certain forms of unlicensed gambling activity as criminal offenses under existing law.
Sweepstakes casino operators now have a new state to worry about.
Lawmakers in Iowa pushed forth legislation that, while not explicitly banning sweepstakes casinos, moves to dramatically expand enforcement powers against unlicensed operators — especially dual-currency sweepstakes casinos that mimic real-money online casinos.
Governor Kim Reynolds signed the measure into law with it set to kick in on July 1.
The Iowa Racing and Gaming Commission previously could only issue warnings or consumer advisories against unlicensed gambling operators.
The new law allows for cease-and-desist orders to be issued against website operators, seek court injunctions and even take direct enforcement against operators offering unauthorized gambling or sweepstakes-style gaming in the state.
Iowa already treats certain forms of unlicensed gambling activity as criminal offenses under existing law.
The law also applies to fantasy sports and offshore gambling sites, including sports betting and casinos. Most of these businesses operate from jurisdictions where the activity is legal and do not explicitly target Iowa residents. Sweepstakes casinos, and to some extent daily fantasy sports sites, do advertise in the state.
Few, if any, sweepstakes casinos appear to restrict customers from Iowa.
- Aaron Goldstein, Gambling911.com
