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Iowa Might Have More Difficulty Finding a Path for Legalized Online Casinos

Iowa Might Have More Difficulty Finding a Path for Legalized Online Casinos
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More opposition is emerging to block any potential iGaming effort the state may make

Iowa’s journey toward legalizing online casinos is likely to encounter obstacles as debate grows around gambling expansion within the state. The recent end of a two-year moratorium on new casinos in Iowa has sparked opposition to a proposed casino in Cedar Rapids, Iowa’s second-largest city. However, if Iowans for Common Sense, an activist group opposing this new casino, is successful in lobbying for a renewed moratorium on land-based casinos, it could either slow or support progress toward online casino legalization.

The activist group has already launched a campaign to rally Iowans around the idea of preventing further gambling expansion through ads and a petition. Although the Iowa Racing and Gaming Commission (IRCG) plans to vote on a license for the Cedar Rapids casino in early February 2025, renewed legislative support for a moratorium could make the vote irrelevant if the Iowa legislature intervenes beforehand.

Legislators like Bobby Kaufmann, a longtime advocate of regulated online gambling, may reintroduce the moratorium bill in the 2025 session. Kaufmann has a history of supporting online gaming, having pushed for both sports betting and online casino legislation in previous years. While a new ban on land-based casino licenses could, in theory, limit casino interests opposing online gambling, it could also stall conversations around online casinos if opposition extends to the digital space.

The discussion around online casinos in The Hawkeye State also involves existing casino operators, who are concerned that online gaming might reduce in-person traffic. Supporters of online casinos argue, however, that online options could boost state revenue without directly competing with physical venues.

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