Iowa hopes to close legal loophole, go after illegal gambling operators

• Iowa is still unable to take more decisive actions against black market operators
• This is due to a legal loophole that restricts the local regulator from overseeing the licensed companies locally
• Iowa could be allowed to soon go after illegal platforms, issue cease-and-desist letters, bring them on criminal charges, and more

The state of Iowa wants to muster more resources in counteracting illegal gambling, but presently, the Racing and Gaming Commission is limited to issuing public warnings to consumers to steer clear of unregulated websites.

A new bill is hoping to change that by empowering the regulator to actually go after operators that are peddling their products statewide without an official authorization to do so.

Iowa’s gambling watchdog could soon go after illegal sites

The measures could include the power to issue cease-and-desist letters, seek court injunctions, involve the attorney general’s office, and bring operators and their owners on charges.

The new bill outlining these changes has already been filed with the Iowa Department of Inspections, Appeals, and Licensing.

This is an important piece of draft law, as it would dramatically expand the commission’s power, moving away from the current predicament of only being able to take enforcement action against regulated entities.

The exact figures about illegal gambling are not immediately known, either, but they are high. According to the American Gaming Association, as much as $673bn is channeled through illegal gambling platforms.

Another survey, one by Yield Sec, cites a much lower figure, but still argues that illegal gambling in the United States accounts for 74% of the total action. Iowa's legislative session starts on Monday, January 12.

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