The Iowa Department of Inspections, Appeals and Licensing has authored a bill that would empower the state’s gaming regulator to chase unlicensed gambling operators with actions such as cease-and-desist letters.
The bill, pre-filed by the government department for the 2026 session beginning Jan. 12, would give the Iowa Racing and Gaming Commission (IRGC) the kind of powers that the agency’s counterpart in numerous other states already hold. The gaming regulator would get the explicit authority to take actions including but not limited to issuing C&Ds or pursuing injunctive relief against unlicensed gaming operators.
IRGC administrator Tina Eick told the Iowa Capital Dispatch that under current state law, all the regulator can really do against a platform that is offering gaming without a license is issue public warnings to Iowa residents.
Bill targets multiple kinds of operator
The text of the government-backed bill highlights several kinds of gaming operation among those that could be targeted by such enforcement action, including entities offering games of chance, sports betting, pari-mutuel wagering, advance deposit wagering (ADW) or online fantasy sports contests.
It also specifically names “illegal sweepstakes” among the list, although it does not define what it considers a sweepstakes operation by including any language on dual-currency gaming or other characteristics.
Eick said that the bill is primarily intended to target bad actors including entities fraudulently advertising as licensed casinos, sweepstakes platforms that offer cashouts in cryptocurrencies and offshore betting companies.
The bill notes that, under current law, a person who commits certain acts related to unlicensed gambling commits a Class D felony and is banned for life from gambling structures or gambling excursion boats. The legislation would expand that lifetime ban to include sports betting and ADW, and also impose such a ban on anyone who is twice convicted of unlawful betting.
Bringing Iowa in line with other states
The legislation would put Iowa on the same keel as numerous other states. Many state gambling regulators across the U.S. have been proactive in sending C&Ds to platforms they deem to be offering products akin to illegal gambling, most commonly targeting offshore sportsbooks and casinos or sweepstakes gaming sites.
At present, the IRGC only has the power to take regulatory action against the in-state casinos, online sportsbooks and other gaming operators that it licenses to do business. All online casino gaming is illegal in the state.
Other states, including some in which regulators have pursued sweeps or offshore operators with C&Ds, have considered or passed legislation to ban or otherwise legally address sweeps or other ostensibly unauthorized gaming. California, Connecticut, Montana, New Jersey and New York all passed bills in 2025 to ban sweeps, and Indiana, Maine and Florida all have pending proposals to do the same.
How effective are C&Ds anyway?
Some states have claimed great success by using C&Ds as a tool. Tennessee’s Attorney General said last month that almost 40 sweepstakes gaming sites shut down dual-currency play in the state after being told to cease and desist. In some cases, though, one C&D letter is not always been enough to have the regulator’s desired effect, leading to authorities looking to escalate the issue.
Michigan Gaming Control Board (MGCB) Deputy Director of Licensing and Investigations Tina Alagna divulged at a conference last year that while the MGCB had issued at least 200 cease-and-desist letters to offshore entities offering gaming in the state, only around one-third of recipients had complied.
