Poker Laws in Iowa

Iowa appears to be only a few years away from legalizing poker over the internet, and they will most likely be in the first handful of states to do so. In the meantime, Iowans continue to play poker for real money at the safe and secure BetOnline website.

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Despite attempts being made, the legislature of Iowa has been unable to legalize online poker in the state thus far. Therefore, under the current state laws it’s deemed illegal to operate an online poker website in Iowa but it’s still federally legal to play at offshore sites. Players in Iowa do engage in legal online poker, as do players in the rest of the United States.

Future Outlook of Online Poker in Iowa – Estimated date of legalization: 2019-2020

The following graph tracks our expected legislation of online poker in Iowa on a state law level. It is currently already legal on a Federal level. This graph monitors the current rise or fall of expected legalization.

Recent Activity
In March 2012, the Iowa Senate passed Senate File 2275 by a vote of 29-20. The bill sought to legalize intrastate online poker, but not online casino gambling. Only companies with land casino gaming licenses, such as riverboat casinos, tribal casinos and racetracks, would be eligible for online poker licenses. However, in the Iowa House the bill was not even considered for a vote [B] because of lack of support.  A similar bill Senate Study Bill 1068 [C] was introduced in January 2013 Iowa legislative session.  Ultimately, the sponsors of the bill realized that the Republican controlled House would not consider it, so they let it die.

Despite the double failure, the issue of online poker is being discussed. Lobbyist Matt Eide explained the situation as follows. He said that there was a two-fold need for legalizing online poker. The first was regulatory. A study [D] undertaken by the Iowa Racing and Gaming Commission (IRGC) [E], the oversight body for gambling in Iowa, reported that online poker at unregulated sites does occur in Iowa. There was a need to bring it under regulation to protect the players from unscrupulous operators. The second need was revenue oriented.

An IRGC study showed that online poker could bring in up to $13 million in state tax revenue. Eide pointed out that Iowa was more conservative than New Jersey, Nevada, and Delaware which have legalized online poker. When a few other states also legalize online poker, the conservatives in the Iowa legislature will have to rethink the issue.

In March, 2015, the Iowa State Daily authored an op-ed [F] which called for legalize gambling in the state. It called for individual liberty and for allowing “consenting adults” to do what they please with their own money. It’s a step in the right direction and another good sign for momentum for iGaming regulation in the next few years.

Current Gambling Laws in Iowa

In the Iowa Code gambling is covered under Chapter 725 (Vice) [G] of Title XVI – Criminal Law and Procedure. Section 725.7 [H] defines illegal gaming and betting. Clause (1) of the section states:

“1. Except as permitted in chapters 99B [bingo] and 99D [racetracks], a person shall not do any of the following: (a.)  Participate in a game for any sum of money or other property of any value; (b.)  Make any bet; (c.)  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; (d.)  For a fee, deliver anything of value which has been received outside the enclosure of a racetrack licensed under chapter 99D to be placed as wagers in the pari-mutuel pool or other authorized systems of wagering; (e.)  Engage in bookmaking.” Clause (2) of the section classifies the violations as misdemeanor, aggravated misdemeanor, class D felony and class C felony. The classification depends on the frequency of the offense and the amount involved. The penalties are specified elsewhere in the Iowa Code.

Chapter 99 of Title III Public Services and Regulation covers specific forms of gambling, including charitable gambling, pari-mutuel wagering, state lottery, riverboat gambling and casinos. Tribal casinos are not covered in the Iowa Code. Section 99B.1 lists important definitions.

History of Gambling in Iowa

Land Based Poker in Iowa

Home poker games are illegal in Iowa because they are not excluded from the general illegality of gambling. Under Section 99B.9 any gambling is illegal unless carried out under a license.

However, under Section 99B.6 gambling, including poker, is permitted in a licensed beer or liquor establishment that holds a social gambling license, provided that a stringent set of conditions are met in totality. The holder of the license or his agent does not participate in, sponsor, conduct or act as cashier, except as a participant while playing on the same basis as every other participant. Only social games, as listed under Section 99B.12 (2), are permitted. The participants must be 21 years or older, and cannot win or lose more than $50 in a 24-hour period. This social gambling license only costs $150 and is good for two years.

Also, under Section 99B.7B poker tournaments, along with other specified card game tournaments, are permitted to be conducted by qualified organizations for veterans, subject to the listed conditions being met.

Certain games are permitted for charity in Iowa, but they do not include live poker tournaments.

Apart from the social gambling exceptions described above, live poker is allowed only at Indian casinos, racetrack casinos and riverboat casinos.

Gambling Laws in Iowa

Online gambling is not permitted in Iowa. Casinos are allowed at Indian reservations, racetracks and riverboats. Other forms of legally permitted gambling are pari-mutuel wagering, state lottery and charitable gambling.

Author: Joseph Falchetti (twitter)
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