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Debate Continues for Iowa Online Poker

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Many have had the fortune of walking away from a poker table with a few extra dollars in their pockets. The thing is, it probably hasn’t been done in a casino. Online gambling is living large in Iowa despite the fact that legislation hasn’t even been passed to regulate or authorize it. Kyle Devaney, a senior student from the University of Iowa, has visited the virtual poker tables of many an online casino and he’s been doing it for years.

The debate over the legalization of online gambling is as heated as it is pervasive. It’s currently unregulated and consequently untaxed, in all U.S. States. Despite this, a significant number of citizens still enjoy many a game of online poker. Estimates put the current number of Iowans gambling on the internet at 150,000 per year and if that was to be regulated and taxed, the state could have been in a position to collect $30 to $35 million in annual taxes. A bill currently pending in the Iowa State Legislature is looking to do just that. To comply with federal regulations, the bill seeks to legalize online gambling within Iowa’s borders requiring citizens to play with fellow Iowans only. On March 1, that same bill passed the first hurdle towards becoming a law, gaining approval from an Iowa Senate subcommittee. The next step: a review and vote in-front of a full Senate, then House before it can become a law.

New Jersey in particular was at the forefront of legalizing online gambling after a bill cleared Senate and House voting only to be vetoed by New Jersey Governor Chris Christie. In New Jersey’s place, Iowa could become the first U.S. state to authorize, regulate, and tax online gambling. Hot on the heels of Iowa are Florida and California who also have their own versions of the bill that would legalize online gambling. “My friends and I all went off to college, and it was easier to play online,” Devaney said. “I think the regulation of online poker would be better.” The measure formally goes by the name of Senate Study Bill 1165. If approved, it will grant poker licenses to qualified operators. Participating in the games would require one to register for an account either through a personal appearance in a state-regulated casino, or alternatively through email or phone or even online applications. If approved, the player can then deposit money through a special account which the system will use for online transactions. The Iowa Racing and Gaming Commission will solely monitor, oversee and regulate the system.

“The online poker industry now is not contributing monetarily to society in the United States or in Iowa,” said Ned Chiodo, a lobbyist who’s pushing for the bill. “With the passage of this bill, the revenue that this industry will generate will be taxed.” The arguers for the other side contend that online gambling will only lead to a runaway growth of problematic gambling cases. Already, it’s causing division along political lines and beyond. “This issue reaches past party lines,” said Rep. Dave Jacoby, D-Coralville. Rep. Greg Forristall (R-Macedonia) added that he would need “serious convincing” if he is going to support the bill despite him not having read it yet. Rep. Jacoby echoes the sentiment by saying it would require “at least two years” to reach the full House.

Another argument in favor of the bill is the extra protection that the system will afford. “Players can be cheated — they can be taken advantage of,” Chiodo said about the current system. Adds Dan Franz, the general manager of Riverside Casino & Golf Resort, “We are for the legalization of Internet poker … because it provides a regulated and safe place to gamble,” he said. “I don’t think the bill will change Riverside Casino business substantially. A great majority come in for the environment and entertainment.” At least for guys like Kyle Devaney, online gambling will be easier. Adds UI freshman Alex Elatey, who’s been playing online since he was 18, “There’s not much interaction, so it’s easier in terms of concealing your emotions, and you don’t have to go off of other players’ emotions,” he said. “You can just worry about the actual game.”