This includes bingo, raffles, lotteries, card games, games of chance, games of skill, or any other social event that involves a wager or drawing. Gambling licenses are obtained from the Iowa Department of Inspections and Appeals, Lucas State Office Building, Des Moines, Iowa 50309, 515-281-6848. Licenses must be obtained in advance of the event.

Iowa state law treats gambling rather differently. There is heavy legislation governing exactly what one can and cannot do, yet a wide range of activities are permitted within these strict and somewhat convoluted criteria. Penalties are also levied according to the amount of money wagered in a game, an almost unique legal approach in the USA.

While most forms of gambling are regulated in some capacity, anything not specifically exempted under the law is deemed as illegal gambling and is punishable at the very least as a misdemeanor.

While Iowa was the first state to license riverboat gambling, the history of wagering in the state doesn’t contain any major US legends, although there is one amusing tale of a prop bet gone wrong concerning Des Moines, the sleepy state capital.

John Hennigan, poker professional, bet a number of his friends that he could survive in Des Moines for six weeks. This quiet state capital featured no casinos and Hennigan’s friends surely knew him well as he lasted all of two days before cracking and leaving town.

Considering he could have won a six figure sum just for sitting there for six weeks, this says something about Hennigan’s ability to keep himself amused without recourse to gambling, or at the very least it reveals how little he cares about money! With lifetime tournament winnings in excess of $3.2 million, six figures is… well, still significant actually.

Hennigan’s rather placid prop bet gone wrong has made gambling history, being recorded frequently in prop bet lists such as this one [1].

Despite its somewhat calm and quiet reputation, there are actually quite a lot of options for a state regulated flutter in Iowa, just be sure to attend licensed venues only as penalties for illegal gambling can be quite severe for the players as well as the organizers.

The Letter of the Law

While the law does make frequent reference to both games of chance and of skill, this doesn’t necessarily correlate to a distinction in legal status. Gambling which involves skill may well still be illegal unless it is a game specifically allowed or regulated by the state.

Section 725.1(1) states that a person shall not [2]“participate in a game for any sum of money or other property of any value” or “make any bet”, a quite clear indication that gambling outside of state regulated facilities is illegal.

Penalties for gambling activity range from a misdemeanour to various classes of felony, and it is possible to commit a felony purely by participating in an illegal game, depending upon factors such as prior convictions and amount wagered.
The strictness of state law can be observed by noting that a third offence for gambling where the money involved does not exceed $100 is a class D felony. A first conviction of gambling with money exceeding $5,000 is an instant class C felony.

Gambling equipment and winnings may be forfeit upon arrest, and while there is no specific statute concerning online gambling, it would seem that such activity would fall under more general laws on the subject.

Certain forms of social and charity gaming are allowed, provided they meet strict requirements, which usually include successfully applying for a license, and keeping all winnings by any one player over a period of 12 hours under a total of $50. This clause clearly drastically restricts what might otherwise be quite an effective social gaming policy.

An unlicensed social or company game may be run provided a “bona fide” social or employment-based context exists for the game, and that no house consideration is taken. This clause is quoted on the Gambling Law US site which features a comprehensive account of Iowa’s laws concerning gambling. It is not clear from this website whether the $50 cap applies or not. Best to either consult a lawyer, or assume the cap does apply.

Iowa’s Laws on Legal Gambling Online

Iowa state does not have specific statutes ruling online gambling as illegal, however it is overwhelmingly likely that it would be deemed so under existing state law on gambling.

Section 725.1(1) states that a person shall not “for a fee, directly or indirectly, give or accept anything of value to be wagered … within or without the state of Iowa”, a ruling which could clearly be applied to online wagering.

However, the state has not been silent on this issue in recent years. A number of bills for regulating online gambling have been put forward, but so far all have “failed at adjournment”, usually suggesting that a state faces serious political opposition to the bill, or simply a lack of strong support to push it through to the Governor’s desk.

A recent proposal is Iowa Senate Study 1068, put forward for the 2013 legislative session. The bill proposes regulation for online poker but not for online casinos or other gambling, and contains a “bad actor” clause which would prohibit sites such as Pokerstars from running games in Iowa. The bill seems designed to allow existing land-based and riverboat casinos to run online poker.

The Iowa lottery has actually stated its active opposition to plans to legislate for intra-state online gambling, presenting another potential hurdle to any new legislation being passed.

A 2011 report from the Iowa Racing and Gaming Commission [3] suggested that the potential revenue from regulated intra-state gambling would not be so great, perhaps falling somewhere between $3 and $11 million per year. This estimate was based on an assumed active player pool of 150,000 Iowans, roughly 5% of the total population.
So while the prospects for Iowans of some form of state regulated online gambling (at least online poker) are not as slim as elsewhere in the US, there is no significant indication that the legislature is ready to pass a bill enabling this to take place any time too soon.

What Forms of Gambling Is Legal in Iowa?

There’s actually a really good spread of options in the state of Iowa.

The state has run a lottery [4] since 1985, and funds generated are used for “projects to create new recreation areas, support research at Iowa’s public universities, benefit Iowa veterans, develop new products and techniques for agriculture, and promote tourism”.

Licensed horseracing with pari-mutuel wagering facilities takes place within Iowa, with the most popular place to go being Prairie Meadows [5] in Altoona. Simulcast wagering on national races is also allowed. Prairie Meadows are licensed to run their 2,000 slot machines and table games including a handful of weekly poker tournaments.

Is Social Gambling Legal?

The law surrounding social gambling is complex, and differs in relation to amount wagered, the venue at which the act occurs (whether liquor venue or private home), and the holding of licenses. In some cases licenses are not required for certain games at certain stakes, but only with other requirements in place. In other cases, even with a license for social gaming, one must be very careful of the type and stake of game being played, or risk violating one’s license and the law.
Certain games aren’t allowed at all socially, even when holding a license, including baccarat, blackjack, craps, roulette, dice games or slot machines. For details of the law as it pertains to liquor licensed venues, see this page from Iowa.gov [6].

A good rule of thumb on social gambling for Iowa are that if you wager or scoop a pot of over $50, you’re likely breaking the law. Even if you keep the stakes small, you may well need a license depending on other factors, and are best off consulting a lawyer before playing anything which takes place outside of a regulated venue.

State Regulated Casinos

The big gambling options in Iowa are the casinos, some of which are owned and run by local Native American tribes, others being located off tribal land, and in some cases on the water, in the form of riverboat casinos. There’s a decent selection out there, and although the casinos’ 2013 fiscal report saw another year of decline, the sizeable revenue of $1.444 billion is still a significant sum.

There’s a really quite pleasant guide to Iowa’s casinos to be found here [7]. Featuring a pinboard map and some short descriptions, this site lists 23 venues including three racetracks which are also allowed to run casino games. Dotted around the state with a slight concentration to the southeast, that’s enough to keep even a real gambling aficionado going for a while.

Horseshoe Casino Council Bluffs [8], which claims to offer the best odds of any casino in Iowa, as well as the highest stakes. With 1,900 slot machines, greyhound and simulcast racing, and plenty of table games including 18 poker tables, they cater for many gambling proclivities.

State Of Iowa Social Gambling License

The poker room runs cash Omaha Hi/Lo up to $10-$20, and Texas Hold’em up to $2-$5. They run several hand bonuses as standard including $50 for hitting quads. The card room has also been known to host WSOP circuit stops.

The Diamond Jo Casino [9] in Northwood is a solid option, with seven poker tables and a decent mid stakes tournament schedule with games running five nights a week. This venue is reflective of the spread of casino options across the state, most run poker, but none at so high stakes or on as many tables as the Council Bluffs.

Recent Developments to Regulate Internet Gambling in Iowa

There are always petitions to open new casinos, with business and political negotiations going back and forth, such as this bid by the Winnebago tribe in 2012. The state is cautious to add to the list of regulated casinos, and progress on new bids is usually ponderous as participants navigate the narrow waterways of gambling legislation.

In a rare outpouring of cash money generosity from the casino industry, mogul Steve Wynn donated $25 million [11]to the University of Iowa in August 2013. The money is to be used in research for cures of rare eye diseases such as retinis pigmentosa, which Mr Wynn himself has suffered from.

Some blame his condition for a mishap Wynn famously had with a Picasso he was about to sell for $139 million, when he accidentally tore a dollar-sized hole in the canvas. After restoration he did manage to sell it for $155 million, however!

Busts and Arrests

Illegal gambling arrests do occur in Iowa, but the press is hardly littered with such stories.

In 2011 the police bust an Iowan bar for gambling on mice races. Somehow the story got as far as Reuters [12]. Despite the fact that the bar owners made no money on the $1 contests, they were cited by police for allowing criminal activity on licensed premises.

In a more serious bust two years earlier, police raided a home gambling ring, arresting 13 and charging three with felonies. Police seized over $10,000 in the raid. The homeowners could face up to 25 years in jail as a maximum charge, according to Sioux Land News [13].

In still more serious news, twenty-five were arrested in 2008 [14] for involvement in a ring which allegedly used illegal gambling revenue to fund a drugs business. The group is said to have operated nationally while being based in Iowa.

Summary

Your gambling options in Iowa are fairly varied, and include the state lottery, pari-mutuel horseracing, greyhound racing and simulcast, licensed charitable and social gaming, and land-based as well as riverboat casinos.

Iowa Bingo License

Just bear in mind that in breaking the gambling laws in Iowa you could face up to felony charges for simply gambling socially, depending upon the stakes and the context. If in doubt, seek legal advice or just don’t play outside of the casinos.

Sources for this article

Iowa does have a considerable amount of regulated gambling, and does restrict legal gambling to what is set forth in the regulations under Title 3, Public Services and Regulation, Subtitle 4, Gambling, of which Chapters 99 through 99G deal with the specific gambling regulations in the state of Iowa. (1)

We need not concern ourselves with the specific regulations here as they don’t really apply to poker other than poker that is licensed and regulated by the state, and there are a considerable number of legal live poker rooms in the state, which we will mention later.

What is of not here is that other than explicitly sanctioned gambling, whether it be poker, casino games, bingo, para-mutuel wagering, bingo, raffles, or what have you, these approved forms of gamblingcomprise all of the permitted gambling in Iowa, and all other forms of gambling are deemed illegal, by way of the Iowa Criminal Code.

The crime of “gaming and betting” reads as follows:

“Except as permitted in chapters 99B and 99D, a person shall not do any of the following:
a. Participate in a game for any sum of money or other property of any value.
b. Make any bet.
c. For a fee, directly or indirectly, give or accept anything of value to be wagered or to be
transmitted or delivered for a wager to be placed within or without the state of Iowa.
d. For a fee, deliver anything of value which has been received outside the enclosure of a
racetrack licensed under chapter 99D to be placed as wagers in the pari-mutuel pool or other
authorized systems of wagering.
e. Engage in bookmaking.” (2)

Iowa Doesn’t Mess Around Here With This

So while Iowa doesn’t have a specific definition of gambling, it does outlaw betting or wagering on anything not specifically in accordance with the gambling regulations as set forth in these chapters. So this does serve to provide a lot of clarity, unlike a lot of other states there is no debate as to whether a certain form of betting or wagering is against the law, if it is not permitted specifically in the law then it is against the law.

The penalties in Iowa for illegal gambling are pretty harsh compared to a lot of other states, and the penalties escalate depending on how much money is involved. The least serious offense involves a sum of one hundred dollars or less, although the determination of how this amount is to be counted isn’t made clear.

This involves a serious misdemeanor on the first offense, an aggravated misdemeanor on the second offense, and felony charges for subsequent convictions. The penalties are even harsher for gambling involving higher amounts. All of these offenses involve possible jail time, and the felony charges involve a possible sentence of up to 10 years imprisonment a fine of up to $10,000. (3)

As well, all proceeds of gambling during an arrest for this becomes subject to forfeiture by the state of Iowa, but this is limited to wagers staked, whether this be money or anything else of value that has been wagered or bet. (4)

Of course having harsh laws and enforcing them harshly aren’t necessarily the same thing, and people aren’t being sent to jail in Iowa for merely gambling, although the state does crack down on unauthorized gambling establishments and devices like a lot of states do.

It is still wise to be aware of what the law is of course and all unsanctioned gambling in Iowa, including home games and playing on the internet, is deemed to be a crime and at least potentially risks criminal penalties and forfeiture.

Playing Poker In Iowa

^^ Check out our most trusted poker site for Iowans @ Ignition Poker ^^

Practically speaking, when we are looking at the consequences of actions which may violate laws, we must consider both the legal consequences and the likelihood of conviction. There are two main elements here, the exposure to the risk and the will of the authorities to charge and prosecute for the offense.

For instance if you are gambling in a public place, that obviously involves more exposure than a private game would, although that still may involve some risk. Gambling at home on a computer would involve the least risk, especially if you are not making this known publicly, simply because the authorities would not be aware of the violation even if they wanted to prosecute it.

Then there’s the will to prosecute, and the way to determine that is to look at the history of prosecutions, if something is never being prosecuted then the law may exist basically only on paper and may even serve other functions primarily such as encouraging people to comply and pay fees.

Iowa is actually one of the most liberal states when it comes to gambling regulation, and you can obtain a social gambling license for your establishment or even your home where as long as the stakes are kept fairly small the state has no problem with it provided you qualify and pay the licensing fee. (5)

So it really is more about collecting fees and controlling gambling in this state than going out and looking to throw people in jail for the evils of gambling.

Iowa does have a total of 13 licensed and regulated poker rooms scattered around the state, and the live poker scene there is a pretty lively one. (6).

In addition, in spite of the laws against it, many poker players from Iowa are active in the online poker scene as they perceive the risk as extremely low or even virtually non existent, as do players from a number of other states, due to the complete absence of anyone ever being charged for this.

While we cannot advise you on this or encourage you to do so as well, should you wish to participate in this, we can indeed recommend a couple of very good online poker sites which offer real money play to Iowa residents as well as players from a lot of other states. There are some states which poker sites avoid, but Iowa is fortunately not one of them.

These top sites are Ignition Poker and America’s Cardroom, and should you be interested in learning more, feel free to click on the links we’ve provided to our reviews of them for you.

References:

(1) 2011 Iowa Code, Title 3, Subtitle 4, Gambling.

(2) Iowa Code 2014, Crimes and Punishments, 725-7, Gaming and Betting

(3) Iowa Listing of Common Crimes and Punishments

(4) Iowa Code 2014, Crimes and Punishments, 725-8, Wagers – Forfeiture

(5) 2011 Iowa Code, 3-4-99b

(6) All Live and Online Poker Rooms in Iowa

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