Iowa to Legalize Intrastate Online Poker Soon?

Mar 08, 2011
Draft online poker bill under consideration More and more US states seem to open up to the thought of online gambling legalization, especially when it comes to poker. It all started with the states of California, New Jersey and Florida, and now one more state may join them: namely, Iowa is also currently considering legislation that proposes the intrastate legalization of online poker. According to recent reports, the draft bill is expected to draw the attention of the Legislature's anti-gambling wing, but the fact is that it also has support thanks to the beneficial effect it may have on political and financial problems. It was stated that the bill suggests opening of online poker operations for people over 21 in state-licensed casinos, where pre-approved players would be able put cash into special accounts, set maximum limits for bets and length of play and then start playing poker. In addition to this, the bill would make sure players under the proscribed age are blocked, introduce measures to prevent fraud, money laundering or cheating, and keep the activity within state borders. Also, based on the bill, the Iowa Racing and Gaming Commission would be charged with regulating the state online poker network, with only one operator running a website hub that would serve participating licensed land casinos. The bill also demands responsible gambling provisions, and a state tax on the adjusted gross receipts. As for the service registration part, the residents of Iowa would have to register for an account in person or by carefully vetted mail, telephone or by electronic means. They would also be able to place deposits on horseracing, either via telephone, website or other electronic channels. According to the bill supporters, it would lead to better player security and fairness in games, as well as to significant tax revenues for the state. "What is driving this is the recognition that you have an existing activity that's already taking place in an unregulated environment, and the revenue is all flowing overseas," said Kirk Uhler, vice president of government affairs for U.S. Digital Gaming, a California company that would try to obtain an operating license if online poker gets legalized in the state. About 150,000 punters engage in illegal poker play outside the state, which deprives Iowa of $30 million to $35 million in gaming taxes, he specified. The previous time Iowa legislation had to decide on an online gambling proposal, the case turned into a severe debate, which caused it to fall by the wayside before the bill was even introduced. There's a number of Iowa casinos already interested in the new development, stated Wes Ehrecke, president of the Iowa Gaming Association, which represents all 17 state-regulated casinos and at the moment fights against proposed increases in taxation on land casinos.
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