The Iowa Senate has unanimously approved legislation that would expand the authority of the state’s gaming regulator to act against unlicensed gambling operators. Lawmakers voted 44-0 in favor of Senate File 2289 on Monday, advancing a proposal designed to strengthen enforcement tools against offshore platforms and sweepstakes-style casinos.
Senate File 2289 originated from the state Department of Inspections, Appeals and Licensing and received sponsorship in the chamber from the State Government Committee. Following the floor vote, Sen. Mike Klimesh sought unanimous consent to send the measure directly to the House, and senators granted that request.
Expanded Enforcement Authority Proposed
If enacted, the bill would broaden the powers of the Iowa Racing and Gaming Commission. The proposal authorizes the commission to issue cease-and-desist letters and pursue injunctive relief against operators offering gambling services in Iowa without approval.
Iowa law permits certain forms of licensed gambling, including land-based and riverboat casinos as well as online sports betting. The state does not authorize online casino gaming. Regulators have stated that current statutes limit their ability to respond to unauthorized sites beyond warning residents to exercise caution.
IRGC administrator Tina Eick said earlier this year that the commission can hold licensed operators accountable but lacks meaningful tools to curb unlicensed activity under existing law. Passage of SF 2289 would align the commission’s powers with those held by regulators in many other states.
Presenting the bill before the vote, Sen. Dan Dawson addressed fellow lawmakers on the chamber floor. “Not only do we have a responsibility in the legislature to ensure that our regulators are regulating the gambling industry, we also have a responsibility to protect those licensees from illegal operators,” he said. “Probably the most important provision is to ensure that we allow our regulator to attack — legally — these out-of-state actors who are providing an illegal service here in the state. There has to be a value to holding a gambling license in the state of Iowa.”
For the proposal to take effect, the House must approve the measure and Kim Reynolds must sign it into law.
Offshore, Sweepstakes And Repeat Offenders Targeted
The bill text identifies several categories of operators that could fall under enforcement actions. These include entities offering games of chance, sports wagering, pari-mutuel wagering, advance deposit wagering, online fantasy sports and what the legislation terms “illegal sweepstakes.” The measure does not provide a specific definition of a sweepstakes gaming site.
Under the proposal, offering such products without a license would constitute a Class D felony. The legislation also introduces enhanced penalties for repeat offenders. Individuals convicted twice of unlawful betting would face a lifetime ban from sports wagering and advance deposit wagering in the state.
Prediction markets do not appear among the listed categories. Platforms such as Kalshi and Crypto.com currently offer sports event contracts in Iowa. Licensed sportsbooks FanDuel and DraftKings also provide prediction-style products in the state, though they do not include sports markets within those offerings.
Separately, lawmakers introduced another Senate bill this year that proposes licensing, regulating and taxing prediction markets. That measure has remained in the Ways and Means Committee since January and has not advanced.
Source:
“Iowa Senate unanimously approves more powers for gaming regulator”, sbcamericas.com, February 24, 2026
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