Iowa Prepares for Competition from US Regulated Online Casinos

The Iowa state lottery director told the governor and assorted gaming authorities that online casinos are likely to receive federal regulation, and it would behoove the state to move first.

A report by the head of the Iowa Lottery to the state board overseeing lottery gaming says Iowa needs to take measures to be ready for the passage of Barney Frank's bill regulating online casinos. Terry Rich told the Lottery Board that it should develop ideas to protect state gaming revenues when competition increases.

"Based upon what we are seeing, I think that the federal government may pass something," Rich said.

Rich told the board about the bills presently awaiting committee hearings in both the US House and Senate. He urged that state officials prepare to defend Iowa's right to tax Internet gambling within its borders.

A statement by Iowa Governor Chet Culver said Culver was aware of the potential thorn of online gambling, and would work to protect whatever is best for the state.

The Iowa Racing and Gambling Commission, which controls the state's seventeen casinos and three race tracks, is neutral toward the Frank bill, according to Commissioner Jack Ketterer.

Rich says the state should move to either license or illegalize online casinos, and set a tax, before federal laws take the opportunity away from Iowa.