A proposed bill in Iowa would give the state’s gaming regulator the power to send cease-and-desist orders to what it deems illegal online gambling operators.
And if the Iowa Racing and Gaming Commission groups sweepstakes gaming in that illicit category, Iowa may become another whack-a-mole regulatory minefield for sweeps casinos.
According to the Iowa Capital Dispatch, the Iowa Department of Inspections, Appeals and Licensing has pre-filed a bill before the state’s legislative session begins Jan. 12 that would allow the IRGC to send the same type of illegal iGaming cease-and-desist orders we see from the likes of the Arizona Department of Gaming or the Michigan Gaming Control Board.
Under current Iowa law, the IRGC really only has authority to take regulatory action against the casinos, retail sportsbooks, and online sportsbooks it governs.
3 categories of ‘bad actors’ in Iowa
In a conversation with the Iowa Capital Dispatch, Tina Eick, the IRGC’s administrator, said the bill would target what the commission considers “bad actors” in the online gambling space.
She said there are usually three main types of bad actors experienced in Iowa:
- One — spam sites that attempt to fool customers by closely replicating a legitimate casino’s online site in an attempt to steal customer information.
- Two — offshore sports betting sites, like Bovada or MyBookie.
- Three — sites Eick describes as those running sweepstakes promotions that then allow players to cash out in cryptocurrency.
Reading between the lines, Eick is likely referring to sweeps casinos that accept crypto as a payment and redemption option, such as Stake.us, Moonspin Casino, Yay! Casino, LuckyRush.io, and Luckybird.io. Per the Iowa Capital Dispatch, Eick said the IRGC receives concerns about these types of crypto redemption sweeps sites stemming from players not receiving their funds when they attempt to redeem.
Currently, the IRGC’s only recourse against sites it deems bad actors is to issue public service announcements or warnings about such platforms.
“We have a strong regulatory system that ensures the games are fair,” Eick said. “We hold those [regulated] operators accountable. Their information and their funds are secure, and then they have responsible gaming, self exclusion programs in place, and then we tax them. They pay their fair share of taxes to Iowa.
“The bottom line is, illegal gaming undermines the public trust and puts Iowans at risk.”
Bill language likely covers all types of sweeps casinos
Although Eick didn’t specifically mention non-crypto dual-currency sweepstakes casinos in her conversation with the Iowa Capital Dispatch, it’s not exactly a reach to think this proposed legislation may also allow Iowa’s gaming commission the authority to issue cease-and-desists to sweeps operators that don’t use cryptocurrency, too.
In fact, language added to current Iowa law under this proposed bill spells it out pretty clearly. Specific sections relate to specific aspects of gambling the IRGC oversees — like pari-mutuel betting and advanced deposit wagering, daily fantasy sports, etc.
The section directly pertaining to sweeps uses the all-encompassing term “illegal sweepstakes” that can and likely would be construed to mean all types of online sweepstakes casinos.
Here is the exact language this bill would add (changes in bold): The commission is allowed 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.”
Not like anything we’ve seen introduced so far
This bill is unique from the other sweeps casino bills introduced in 2026, and from any introduced or passed in 2025 for that matter.
Those pieces of legislation dealt with the legality of sweepstakes gaming, officially outlawing any type of Sweeps Coin gameplay, as Sweeps Coins can be redeemed for cash and, thus, lawmakers in a handful of states have determined, constitute a means of real online gambling.
But Iowa’s bill doesn’t create any new laws that officially criminalize sweeps gaming.
Instead, this bill simply grants the authority to Iowa’s gaming commission to boot online sweepstakes casinos out if they want to.
/Cease-and-desists vs. legislation
The truth is that cease-and-desist orders are truly a game of whack-a-mole for authorities trying to rid states of sweepstakes casinos.
Yes, many sweeps operators will leave a state even if they don’t directly receive a cease-and-desist from an authority in that state.
However, many operators will also stay and only shut down sweeps operations in a market if they receive a cease-and-deist and are effectively forced out. In other words: Make revenue as quietly as possible until the person or regulatory body in charge finds out about you and sends you a cease-and-desist.
For that reason, cease-and-desists, while effective at signalling a state’s general attitude and intentions regarding sweeps gaming, will never be as effective as a bill getting passed, where dual-currency sweeps casinos with Sweeps Coins become officially against the law.
Those are the types of bills we saw get passed in Montana, Connecticut, New Jersey, New York, and California in 2025, and those are the types of bills that have been introduced or pre-filed so far in 2026 in Indiana, Maine, and Florida.
