Blotter: Iowa may legalize online poker

In the ongoing battle between online poker sites and government jurisdictions, lawmakers in the state of Iowa are working on a truce. Legislators in that Midwestern state are considering a proposal to legalize internet poker for its citizens. The idea also has the support of the state's casino industry, since players would be required to deposit cash into an account with one of their gaming facilities in order to play online poker.

According to the proposal, players would visit an Iowa casino and make a deposit in person, either in the form of cash, check or bank cards. Credit cards, especially those issued by out-of-state banks, would not be a valid means of making a deposit. State Representative Doug Struyk of Council Bluffs has created the bill in order to protect the estimated fifty thousand Iowans who play at various offshore online casinos and poker rooms.

Rep. Struyk voiced his concerns that, due to the unregulated nature of most online poker rooms and other forms of internet gambling, proper means of protecting potential customers were not in place. He said that the state's Racing and Gaming Commission, the agency that supervises Iowa racetracks and casinos, would be in charge of overseeing the regulation process and insuring that online gaming companies operated fairly with their customers.

Some industry observers have credited the idea as the start of a potential nationwide network. Each state could possibly join with the others to supervise the online casinos and increase dwindling tax revenues through licensing fees and revenue sharing. A similar network is currently in place to oversee multi-state lotteries such as Powerball.

Currently, Iowa casinos bring in more than US$1 billion annually, with US$320 million going directly to the state budget. However, some legislators have announced their concerns over the measure. State Representative Mary Mascher of Iowa City said that the proposal would lead to "the largest expansion of gambling" in US history. She also said that she has no "doubt that Iowa is addicted to gambling".

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