- SSB 1068 now requires committee approval before it can be voted on by the full Senate.
- The poker-only bill would allow Iowa players “to engage in internet wagering with other persons, regardless of location.”
- Service providers determined to have violated “the laws of any jurisdiction where the service provider has operated” will not be eligible to receive a license.
Iowa legislators revived a bill last week that may lead to the regulation of online poker in the Hawkeye State.
State Senate Study Bill 1068 (SSB 1068), to be considered by the State Government Committee, is the starting point for the 2013 version of Iowa’s attempt to enact internet poker regulations.
The bill closely resembles Senate File 2275, the 2012 version that passed through the Senate but ultimately did not progress beyond the Republican controlled State House of Representatives.
SSB 1068, which requires committee approval before it can be voted on by the full Senate, is a poker-only bill that would allow Iowa players to engage in internet wagering with other persons “regardless of location,” to the extent permissible by law.
Other states are also considering permitting online poker to be played with players outside their jurisdictions. It is a proposed change in Nevada, where online poker is already legal, and New Jersey, where a bill to regulate a wide variety of online gaming has passed through the legislature and will become law unless the Governor vetoes the bill by February 7.
The Iowa bill also allows for the licensing of service providers; however, those that are determined to have violated “the laws of any jurisdiction where the service provider has operated” will not be eligible to receive a license, a so-called “bad actor” clause.
Iowa seeks to tax operators at a rate between 22-24% of adjusted gross receipts allowing operators to deduct player rewards from their tax base. This rate is significantly higher than Nevada’s 6.75% rate on gross gaming revenues, and still higher than some European jurisdictions.
In December 2011, the Iowa Racing & Gaming Commission published a study on the prospect of regulating online poker.
“Based on aggregate projections of poker play in the US,” and based on the population of Iowa, the study concluded that a 22% tax rate would yield “approximately $3m to $13m” in annual revenue for the state.
Player protection provisions contained in this year’s version include a mandate for operators to provide “security measures to ensure the integrity” of online wagers, as well as the ability for players to self-exclude and set daily deposit limits. The bill does not provide for the segregation of player funds.
The proposed legislation also does not include criminal penalties for players that place wagers with unlicensed operators.
Those caught cheating or otherwise engaging in prohibited activities related to gambling can be charged with a class “D” felony and be banned for life.
Licenses will be issued for “a period of not more than three years,” and no limit is stipulated on the number of licenses that can be issued. In addition, the bill allows for operators to join forces and apply for joint internet wagering licenses.
Last month Iowa Racing & Gaming Commission chairman Jeff Lamberti told a local public television audience that his office was ready to regulate online poker should legislators decide to authorize the activity.