Iowa’s gaming regulator is behind the curve when it comes to being able to enforce against gaming operators it deems illegal, including IA sweepstakes casinos (e.g., Stake.us, Modo, Fortune Coins).
According to state law, the Iowa Racing and Gaming Commission (IRGC) doesn’t have the power to issue cease-and-desist letters as things stand.
Minnesota is another state that lacks this power, and we saw this manifest in October last year, when its regulator was limited to issuing letters recommending sweepstakes casino operators halt activity, rather than sending fully-fledged cease-and-desists.
C&Ds typically carry considerable legal force, demanding compliance and allowing regulators to escalate enforcement if operators refuse.
So this year, the Iowa legislature is considering Senate Study Bill 3040 and House Study Bill 586, two identical companion proposals that would expand the IRGC’s enforcement powers, allowing it to formally issue C&D orders and seek injunctive relief through the courts.
‘Injunctive relief’ refers to court orders forcing operators to immediately stop their activities, a far stronger power than informal warnings or voluntary compliance requests.
SSB 3040 and HSB 586 would award these powers in relation to operators offering:
- “pari-mutuel wagering or advance deposit wagering”
- “internet fantasy sports contests in this state without holding an appropriate license”
- “games of chance, gambling, sports wagering, or illegal sweepstakes in this state without holding an appropriate license”
And so far both proposals have been introduced and heard in committee. While full floor votes are still a ways off, steady movement so far suggests growing momentum.
Fortunately for sweepstakes casinos offering their platforms in Iowa, a full banning of the format is still a while away, but if SSB 3040 and HSB 586 are successful, those operators might expect a wave of C&Ds later on in the year. At least the possibility would be there.
Author: Jon Ridehalgh
Updated:
