Online poker clears Senate subcommittee

DES MOINES - A Senate subcommittee on Monday approved a bill designed to legalize online poker in Iowa and bring it under state regulation, despite warnings from opponents that computer-based gaming is highly addictive and likely would usher in full-blown online gambling.

“This is just the beginning,” said Danny Carroll, a former state lawmaker and official with the conservative Family Leader group, who asked the three-member Senate panel to consider Iowa families and the impact more gambling will have. Senators, though, voted to send Senate Study Bill 3164 to the Senate State Government Committee, which may consider it as early as Wednesday.

“The people of Iowa do not want it,” he said, citing Iowa and national polls indicating a plurality of opposition to legalizing online poker.

But Sen. Jeff Danielson, D-Waterloo, said that prohibition has failed in other areas, and the preferred approach is to bring an illegal wagering activity - estimated at between $30 million and $100 million annually - under state regulation to protect Iowans and curb underage players.

The proposed legislation would authorize the creation of an online poker network and provide a regulatory structure for its implementation, operation and taxation. The bill would allow intrastate, interstate and international arrangements and the expansion would operate under the state's current gaming fee structure, he said.

Competing hub operators would be able to partner with state-licensed casinos under the control of the state Racing and Gaming Commission to operate online sites for registered players ages 21 and older within Iowa.

Danielson said out-of-state residents would be able to come to an Iowa casino, establish an account and play during their time in the state.

“We have it out there. It needs to be controlled,” said Sen. Wally Horn, D-Cedar Rapids.

“I agree something has to be done at this point,” said Sen. Rick Bertrand, R-Sioux City. “I see this as an opportunity for Iowa to get out in front of this.”

Senate Majority Leader Mike Gronstal, D-Council Bluffs, gives the measure a 50-50 chance of passing if it moves to the full Senate.