Senate approves gambling bill

DES MOINES – The Iowa Senate voted today to approve a bill that seeks a state report assessing the extent of illegal Internet poker activity currently taking place in Iowa and how best to regulate an intrastate online program should the Legislature decide to legalize online poker next session.

Senators voted 38-12 to pass Senate File 526 and send it to the Iowa House for further consideration.

The bill includes other provisions that would end the requirement that existing state-licensed casinos periodically conduct countywide referendum votes and a separate section that seeks to resolve a dispute over purse money among the state's various horse breeders and the Altoona racetrack-casino.

Originally, the legislation authorized the creation of an intrastate online poker network and provided a regulatory structure for its implementation, operation and taxation.

However, backers reworked the package to remove the language seeking to legalize online poker this year. Instead, the state Racing and Gaming Commission would be directed to conduct fact finding regarding the framework for state regulation of a system by which a hub operator would contract with state-licensed casinos to operate affiliated online sites within a “closed loop” in Iowa for registered players ages 21 and older.

Proponents say the legislation is needed because unregulated wagering already is taking place in Iowa via online poker websites offering games illegally via offshore operations. They estimate that up to 150,000 Iowans could be playing online poker now with no consumer protections from the state that would prevent them from being cheated.