DES MOINES ? Legalized online poker may be coming to Iowa.
A Senate subcommittee gave initial approval Tuesday to a bill that would authorize the creation of an intrastate Internet poker network and provide a regulatory structure for its implementation, operation and taxation.
The plan envisions an authorized online poker hub operator under the control of the state Racing and Gaming Commission that would contract with state-licensed casinos to operate affiliate online sites within a ?closed loop? in Iowa for registered players at least 21 years old.
?It?s a modest first step,? said Sen. Jeff Danielson, D-Waterloo, chairman of the Senate State Government Committee, who expects his committee to pass the measure Wednesday to the full Senate ahead of Friday?s deadline for bills to clear one legislative panel to stay eligible this session.
Danielson said the bill is designed to address a ?generational disconnect? that forces younger, computer-savvy Iowans caught up in the expanding popularity of poker to seek out illegally operated online Web sites run by off-shore operations that may cheat them.
?I see this as a consumer protection law,? he said. ?I think technology has gotten ahead of our policy on gaming laws. We think it is time to modernize Iowa?s laws relative to this aspect of gaming. We want it to be a narrowly focused bill.?
If approved, the measure would make Iowa one of the first U.S. states to offer online poker to residents who could play on their personal computers using a secured password on a protected website once they had placed funds into their individual accounts. Players could not be provided credit, and online poker games would be subject to maximum wagering limits and play lengths.
The Senate bill also would end the requirement that existing state-licensed casinos periodically conduct county-wide referenda votes. Another provision sought to resolve a dispute over purse money among the state?s various horse breeders and the Altoona racetrack-casino.
Ned Chiodo, a registered lobbyist and former legislator representing the Riverside Casino and online gaming interests, estimated that 150,000 Iowans play Internet poker ?right now, every day, 24-7, illegally? linked to online operators located off-shore or in foreign countries that are ?highly suspicious.?
If legalized in Iowa, Chiodo said he expected Iowa would generate about $30 million to $35 million in tax revenue annually on the new online gaming option.
?This activity is not going to go away,? he said. ?It?s growing by leaps and bounds.?
Danielson noted that Internet-based gaming currently is illegal, but federal law gives states authority to legalize and regulate the activity within their borders.
Representatives of religious and family-based organizations told legislators they were opposed to the measure, citing concerns that the activity would be addictive and regressive for a state where gambling opportunities already are pervasive.
Sen. Bill Dix, R-Shell Rock, said he supported the bill in subcommittee because it resolves issues that have been contentious within the horse industry, regulates online wagering that already is happening and likely has bipartisan support. He and Danielson said they would resist efforts to attach other issues, such as Gov. Terry Branstad?s proposal to raise state revenue by increasing the tax rates paid by state-licensed casinos.
Jack Ketterer, administrator of the state Racing and Gaming Commission, said there is ?no blueprint? for doing this, but he expected the online activity envisioned in the bill could be accomplished.
A Senate subcommittee gave initial approval Tuesday to a bill that would authorize the creation of an intrastate Internet poker network and provide a regulatory structure for its implementation, operation and taxation.
The plan envisions an authorized online poker hub operator under the control of the state Racing and Gaming Commission that would contract with state-licensed casinos to operate affiliate online sites within a ?closed loop? in Iowa for registered players at least 21 years old.
?It?s a modest first step,? said Sen. Jeff Danielson, D-Waterloo, chairman of the Senate State Government Committee, who expects his committee to pass the measure Wednesday to the full Senate ahead of Friday?s deadline for bills to clear one legislative panel to stay eligible this session.
Danielson said the bill is designed to address a ?generational disconnect? that forces younger, computer-savvy Iowans caught up in the expanding popularity of poker to seek out illegally operated online Web sites run by off-shore operations that may cheat them.
?I see this as a consumer protection law,? he said. ?I think technology has gotten ahead of our policy on gaming laws. We think it is time to modernize Iowa?s laws relative to this aspect of gaming. We want it to be a narrowly focused bill.?
If approved, the measure would make Iowa one of the first U.S. states to offer online poker to residents who could play on their personal computers using a secured password on a protected website once they had placed funds into their individual accounts. Players could not be provided credit, and online poker games would be subject to maximum wagering limits and play lengths.
The Senate bill also would end the requirement that existing state-licensed casinos periodically conduct county-wide referenda votes. Another provision sought to resolve a dispute over purse money among the state?s various horse breeders and the Altoona racetrack-casino.
Ned Chiodo, a registered lobbyist and former legislator representing the Riverside Casino and online gaming interests, estimated that 150,000 Iowans play Internet poker ?right now, every day, 24-7, illegally? linked to online operators located off-shore or in foreign countries that are ?highly suspicious.?
If legalized in Iowa, Chiodo said he expected Iowa would generate about $30 million to $35 million in tax revenue annually on the new online gaming option.
?This activity is not going to go away,? he said. ?It?s growing by leaps and bounds.?
Danielson noted that Internet-based gaming currently is illegal, but federal law gives states authority to legalize and regulate the activity within their borders.
Representatives of religious and family-based organizations told legislators they were opposed to the measure, citing concerns that the activity would be addictive and regressive for a state where gambling opportunities already are pervasive.
Sen. Bill Dix, R-Shell Rock, said he supported the bill in subcommittee because it resolves issues that have been contentious within the horse industry, regulates online wagering that already is happening and likely has bipartisan support. He and Danielson said they would resist efforts to attach other issues, such as Gov. Terry Branstad?s proposal to raise state revenue by increasing the tax rates paid by state-licensed casinos.
Jack Ketterer, administrator of the state Racing and Gaming Commission, said there is ?no blueprint? for doing this, but he expected the online activity envisioned in the bill could be accomplished.
