Iowa’s Senate File 2289 was signed into law by Governor Kim Reynolds late last week, bringing it into effect on July 1, 2026. The bill passed the legislature at the end of April after being introduced in February.
SF 2289 is an omnibus-type bill, with gambling-related changes contained in Division I. Here, it amends multiple sections of Iowa Code Chapter 99, the laws which govern gambling regulation in the state.
Of note for stakeholders in the sweepstakes space are the new provisions expanding the state gaming regulator’s authority to issue cease-and-desist orders to sweeps casino operators.
In fact, the sweepstakes element is one of many verticals now potentially subject to C&Ds if the Iowa Racing and Gaming Commission (IRGC) deems an operator to be doing business without a license. The others are:
- Pari-mutuel wagering
- Advance deposit wagering
- Fantasy sports
- Games of chance
- Gambling
- Sports wagering
The IRGC has lagged behind other state regulators without an official avenue for C&Ds enshrined in law. Now it has this right and could potentially take C&D action or injunctive relief (a court order requiring an operator to stop the activity) against any operation it deems illegal.
Most of the verticals mentioned in the bill can have licensed operators in the state, but sweepstakes casinos have never been afforded such a path to regulation.
That being said, the vast majority of sweepstakes casinos are accessible in Iowa, including McLuck, WOW Vegas, and Chumba. They exist in a gray area of the law, using dual-currency systems and virtual credits rather than real money.
However, the vertical is increasingly becoming targeted by states seeking to restrict it, often with C&Ds. An example of this came in Louisiana last year, leading to a mass exodus of all sweeps brands from the state.
Many states have introduced clear anti-sweeps laws banning the format outright too. Indiana, Maine, and Oklahoma have done so this year, while we wait to see if similar bills in Tennessee and Louisiana will be signed into law.
Is this something that lawmakers in Iowa could pursue next year? It’s tough to say, but for now we’ll just wait and see what direction the IRGC takes with its newly available enforcement powers.
Author: Joseph Allen
Updated:
