Iowa Online Poker Study Signed Into Law

Governor Terry Branstad signed a gambling bill today that could lead to the legalization of intrastate online poker in Iowa – eventually.

The bill, which includes many provisions that will alter state gambling laws, includes a provision that will have the Iowa Racing and Gaming Commission perform a study on the possibility of regulating online poker. The study would attempt to determine the impact – both positive and negative – that online poker would have on the state, its citizens, and the existing land-based gambling options in Iowa.

Iowa is just the latest state to look into the possibility of online poker, and has continued to study the issue even during the federal government’s crackdown on foreign online gambling sites. Other jurisdictions that have considered legislation concerning online poker include New Jersey, California, Hawaii, Florida, Washington, D.C., and Nevada.

The bill that was signed into law by Governor Branstad also included several important new regulations that will go into effect immediately, some of which will greatly impact the current state of gambling in Iowa.

Under existing law, casinos in Iowa were forced to win referendum votes in their counties every eight years; losing a vote would force the closure of the casino. The law was changed slightly to require this referendum to be held only twice; after that, voters would have the right to petition for a referendum starting eight years later, but the process would no longer be automatic.

Other parts of the bill were designed to help the state’s horse racing industry. In order to move the state’s laws in line with those in most other states with horse racing, the bill now makes it legal for gamblers to deposit money in advance if they wish to make wagers online or by telephone.

In addition, 2% of the purse money for Thoroughbred and quarter-horse races will now go to horse owners’ groups to help promote and market Iowa-bred horses. Other changes were also made to the types of racing allowed at various tracks, as well as the required length of racing seasons.