Iowa Debates iCasino Legalization Amid Problem Gambling Concerns
Iowa lawmakers are considering legalizing interactive online slots and table games, known as iCasino or iGaming, as a new source of state tax revenue. However, the proposal faces heavy opposition from existing land-based casino interests. Opponents fear that expanding casino-style gambling to mobile devices will significantly increase rates of problem gambling within the state.
Representative Bobby Kaufmann (Republican, Wilton) has championed the cause for iGaming, proposing legislation in both 2022 and 2024. Supporters view the measure as a practical way to capture additional revenue from a market that is growing quickly across the United States.
Land-Based Casino Warns of Social Harm
Leading the opposition is Gary Palmer, the retiring CEO of Prairie Meadows. His facility, located in Altoona, operates as the country’s only non-profit racetrack and casino, making his voice unique in the debate. Palmer argues that authorizing online casino-style gambling on phones, at home, or in bars “is a terrible idea” that “would ruin lives.”
Palmer stated, “You’ll ruin your community when people are gambling at home.” Opponents highlight the potential social costs of increased problem gambling, including mental health crises, increased rates of suicide, family violence, poverty, and child neglect.
The concern is particularly high because slot machines, which would be central to iCasino, are a major source of revenue for land-based casinos and often account for a large portion of revenue derived from problem gamblers.
Problem Gambling Surges Post-Sports Betting
The current debate takes place against the backdrop of a marked rise in problem gambling since Iowa legalized sports betting in 2019. Since legalization, there has been a significant increase in people seeking help for gambling addiction.
In 2024, the state saw a massive surge in traffic to problem gambler help lines and websites. Traffic to 1800BETSOFF.org reached 118,183 visits, exceeding the total traffic recorded in 2021 and 2022 combined.
While lawmakers like Woerner in New York suggest legalization brings gamblers out of the illegal shadows, opponents in Iowa point to this data as proof that legal access worsens social harm. Curiously, despite the rising need for help following the sports betting legalization, state funding for gambling addiction treatment in Iowa has been reduced during the same period.
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