In an extended legislative session, Iowa lawmakers passed a bill this week that gives the state’s gambling regulators greater power to police sweepstakes casinos.
Iowa legislators passed Senate File 2289 Tuesday, with the Senate concurring with a House version sent over last week. The bill now heads to Gov. Kim Reynolds.
The bill, with negative implications for sweepstakes casinos, crossed the finish line after lawmakers extended the session beyond its initial April 21 adjournment date. It is the latest bill with some form of anti-sweeps language that has passed as state legislatures across the country look to reel them in.
Granting Iowa regulators enforcement powers
The legislation expands the Iowa Racing and Gaming Commission’s enforcement powers, including issuing cease-and-desist letters and seeking court injunctions. Those powers can be used against companies offering games of chance, sports betting and sweeps casinos without proper gambling licensing.
In an interview with the Iowa Capital Dispatch earlier this year, IRGC Director Tina Eck cited common offenders like scam websites and offshore sportsbooks like MyBookie and Bovada. Iowa does not regulate or license sweepstakes casinos, and SF2289’s language includes sweeps.
Under the state’s current law, the IRGC does not have the power to act against unlicensed operators. It can only issue warnings and advisories for residents to avoid unlicensed operators.
So while the bill does not explicitly outlaw sweepstakes casinos, it does grant the IRGC the power to take regulatory action against unlicensed operators rather than just the licensed operators it oversees.
Safe passage through Iowa legislature
While it did not pass before the initial adjournment date, SF 2289 had relatively smooth sailing through the chambers. It passed the Senate in February by a 44-0 vote.
The bill passed the House 93-0 on April 21. The bill was amended in the lower chamber, taking the IRGC’s available reimbursement pool from $70,000 to $45,000.
The Senate concurred with the House version on a 47-0 vote.
2026 sweepstakes casinos legislative roundup
Last year, several state legislatures took action and banned sweepstakes casinos, including the massive markets of California, New York and New Jersey.
This year, Indiana and Maine enacted sweepstakes bans. Tennessee lawmakers also recently passed a ban on sweepstakes casinos, and there are still bills alive in Oklahoma, Louisiana, Minnesota and Washington, D.C.
Similar legislation failed to pass in Florida, Hawaii, Maryland, Massachusetts, Mississippi and Virginia.
