Iowa Not Likely To Approve Online Gaming

Article by : Erik Gibbs Aug 3, 2023

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Iowa stands firm in its stringent gambling regulations and won’t be receptive to fostering the industry’s growth anytime soon. A testament to this lies in the constant rejection of legalizing online casinos in the state and in the recent remarks of a prominent lawmaker.

In 2021, Representative Bobby Kaufmann took the initiative to introduce the Online Casino Bill, although it has remained languishing in obscurity. Now, Representative Jacob Bossman has expressed skepticism about the state’s chances of passing the online casino law in 2024 during his address at the National Council of Legislators of Gaming States conference.
In 2019, Kaufmann lent his backing to a sports betting bill that made it across the legislative finish line. However, in 2022, he revisited casino expansion, almost entirely confident that it wouldn’t survive.

Kaufmann asserts that for the online casino bill to be ratified, all 19 commercial casinos in Iowa must lend their support. Only when such a time will all attempts to push through online casino fees be utterly futile.

At the onset of this year, a mere 13 casinos pledged their backing to online casinos, as Wes Ehrecke from the Iowa Gaming Association noted. Caesars, which has four Iowa-based casinos, actively advocates for the growth of online gambling. In contrast, Elite Casinos Resorts, a state-level casino operator with a portfolio of three casinos, staunchly opposes further expansion of the gambling industry.

Kaufmann was willing to present online casino regulations in March, knowing it would face resistance. During the Denver conference, Jacob reiterated Iowa’s lack of support towards online casinos and pointed out addiction, inefficiency, and limited accessibility as critical factors impeding their endorsement.
Bossman believes that, alongside gambling addiction and limited opportunities, the progression of gambling has reached its end. Having recently embraced sports betting, lawmakers might not be willing to address another bill related to gambling expansion.

In addition, the issue of underage gambling has caught the attention of lawmakers, as Bossman highlighted. It’s a matter of concern for authorities who assert that children can place bets online effortlessly by accessing their parents’ mobile devices.

Lawmakers will also hold back from adding online casinos due to cannibalism concerns. However, evidence exists that the growth of online gambling will not poach patrons from land-based casinos.

New Jersey boasts a total of nine brick-and-mortar casinos. With the onset of the COVID-19 pandemic, a compelling argument arose for the state to embrace online gaming, and the nine casinos have yet to suffer.

The online segment was allowed to launch temporarily to test the waters, and state authorities recently approved an extension for an additional five years. They did so partly because it would not significantly impact the thriving land-based casino industry. Establishments housing additional amenities like hotels, golf courses, and concert halls need to find an incentive to support the emergence of online casinos.

Local casinos are apprehensive about losing patrons to online gambling platforms, arguing that the online segment will lead to a decline in revenue and potential business loss. However, there needs to be proof in any jurisdiction that substantiates the claim.