Legalizing online casinos in Iowa has advanced very little since it was introduced in 2021 by state Rep. Bobby Kaufman, who also sponsored a sports betting measure that passed in 2019. Kaufman reintroduced the same online casino bill in 2022. This year, he didn’t introduce a bill until March when he held a subcommittee hearing on the issue.
Recently, state Rep. Jacob Bossman said he’s “a little bit pessimistic” about the near-term prospects of online casino gambling in Iowa. Recently at the National Council of Legislators from Gaming States conference in Denver, Bossman said lawmakers’ concerns about cannibalization, addiction and children’s access are blocking real progress.
Regarding cannibalization, Wes Ehrecke, executive director of the Iowa Gaming Association, recently told PlayUSA that 13 of the state’s 19 commercial casinos favored iGaming. Kaufman said, “We need to get all the casinos on board. Until that happens, the chances of it passing are zero.” But, according to Bossman, casinos are concerned about cannibalization despite the lack of evidence to back up that fear.
Bossman noted there’s a split between Las Vegas-based companies like Caesars Entertainment, which operates four casinos in Iowa, and regional companies like Elite Casino Resorts which runs three.
Bossman told PlayUSA, “Cannibalization is one of the issues that comes up. In rural areas, most of the casinos in Iowa are set up as destination locations with golf courses, concert venues, hotels. And so there’s a lot of concern that they built up this infrastructure and if people can do the same thing online at home, that they’ve sort of wasted that investment.”
Bossman said another reason lawmakers are reluctant to pass online casino is because they recently legalized sports betting. He said, “There’s a lot of pushback from a portion of the members that are really hesitant to do what they perceive as an expansion of gambling. There’s still a lot of hesitation to do something else because there’s a perception that we just expanded in some people’s minds, and there’s some hesitancy to expand that again.”
Bossman added some of his colleagues also were concerned that approving online casinos would lead to an increase in gambling addiction. Also, they feared children would place bets on their parents’ phones.
Bossman noted Iowa has a $2 billion budget surplus, so it’s not seeking an extra source of revenue at the moment. But he said lawmakers are watching to see if Nebraska’s three new racinos, and a fourth planned for 2024, lead to a drop in Iowa casino revenue. If that happens, he said online casinos could make up for the lost revenue.
Bossman’s said for 2024 he hopes online casino gaming legislation will at least pass a committee vote. He told PlayUSA, “I expect it probably will be considered in Ways and Means and might come out. But with these types of bills, it takes multiple years before people become aware and comfortable.”
