A new bill proposed in the Iowa General Assembly would expand the power of the Racing and Gaming Commission to enforce state law against unlicensed gambling operators.
HSB586, and its companion bill in the Senate, would allow the commission to pursue civil penalties against unregulated operators.
Both measures are currently in committees.
Sweepstakes Operators Would Likely Be Targeted
The gaming commission currently regulates the state’s casino and sports betting industry but isn’t granted the ability to pursue unlicensed operators. HSB586 would change that.
The bill also appears to be an effort to go after sweepstakes casino operators, allowing the commission to seek injunctions against them.
The proposal gives the commission the power “to take any other action as may be reasonable or appropriate to enforce this chapter and the commission rules, including but not limited to issuing cease-and-desist orders and obtaining injunctive relief against a person offering games of chance, gambling, sports wagering, or illegal sweepstakes in this state without holding an appropriate license issued by the commission or otherwise being specifically authorized by law.”
The state collected $19 million in taxes on sports betting in 2025. The enforcement action could also be used against illegal sports betting platforms.
Following Other States’ Lead
If approved, Iowa would become the latest state to target sweepstakes sites.
Tennessee’s attorney general recently sent out 40 cease-and-desist letters to sweeps operating in that state.
Earlier last month, Maine and Indiana introduced legislation prohibiting their operation. A Florida lawmaker has introduced a bill to ban them in Florida after a similar effort failed last year.
Several other states have passed laws to eliminate them. California passed a ban in October. New Jersey Gov. Phil Murphy (D) signed legislation to ban sweeps into law in August. Similar efforts are underway in Maryland, Mississippi, Virginia, Oklahoma, and Utah.
