Racing commission approves new wagering option for Prairie Meadows

State regulators on Thursday authorized a system whereby Iowa gamblers will be able to place bets on horse races either online or by phone, via “advance deposit wagering” accounts they can set up with a state-licensed racetrack-casino in Altoona.

On a 5-0 vote, members of the state Racing and Gaming Commission approved emergency rules that could enable Prairie Meadows Racetrack and Casino to have the online service up and running by January, if an agreement is struck with a private vendor and the association representing the Iowa horsemen's association.

Commission's administrator Jack Ketterer said the regulatory structure is in place to allow the activity authorized by the Iowa Legislature last session to begin whenever advance deposit horse betting is in place. Currently, people who want to bet on pari-mutuel races must drive to state-licensed tracks in Altoona, Council Bluffs or Dubuque to do so.

“This is a new venture for all of us trying to figure out where we're going, what's the best way to do it,” said Gary Palmer, Prairie Meadows chief executive officer. “Things are moving pretty fast. Hopefully we can meet the schedule of Jan. 1 or close to that.”

Palmer said his track and the horsemen's association have hired a California consultant with expertise in advance deposit wagering to help them get through the earlier stages of the new wagering option. Ketterer said there are about 20 jurisdictions nationwide where such wagering currently is legal.

Under the process, currently only authorized at Prairie Meadows, Iowa residents aged 21 or over can set up a password-protected account with an advanced deposit wagering operator, place money in the account and be able to wager on horse races around the country. Funds in the account will be debited or credited depending on the results of the races where money was wagered via bets placed through the Internet, by telephone or some other electronic device, Ketterer said.

The new online activity – the only Internet wagering exemption authorized by Congress – will enable Prairie Meadows, the horsemen association, the state and nonprofit groups holding a state gaming license where the betting is authorized to receive a share of the money that currently is being wagered, but is leaving the state without benefitting Iowa, he added. How much money is involved would be “purely speculative” to estimate, he said.

On a related topic, Ketterer said his staff is slated to send the Legislature a report by Dec. 1 that will outline a regulatory structure and safeguards the commission would use if lawmakers decide to allow intrastate online poker games. The report will not include a recommendation whether the activity should be legalized, but will bring legislators “up to speed so they can make an informed decision for or against it” if the issue is debated during the 2012 session, he added.

“Hopefully we'll have as much of the information that is out there,” he said. “One of the things obviously that the Legislature and everybody wants to know is how many people do it and how much money are we talking about, and that's pretty speculative, I've got to tell you. We're trying to get as much information in front of them and they can decide what's credible and what's not.”

Gambling industry officials contended last session that estimated 150,000 Iowa players already are engaging in online poker, via illegal offshore operations.

Key features of legislation that stalled last session would have authorized the creation of an intrastate online poker network and provide a regulatory structure for its implementation, operation and taxation. Senate File 458 also envisioned an authorized online poker hub operator under the control of the state Racing and Gaming Commission that would contract with state-licensed casinos to operate affiliated online sites within a "closed loop" in Iowa for registered players ages 21 and older.