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Iowa has a fairly healthy gambling industry, with numerous casinos, racinos and sportsbooks operating in the state. However, online gambling is still largely illegal in Iowa, except for online sports betting, which was legalized relatively recently in 2019. Please read our article below to learn more about the gambling laws in Iowa.

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The legality of gambling is covered by Iowa Code 99 (gambling houses) and Iowa Code 725.5 (gambling and betting). The state's approach to gambling is that activities are deemed illegal unless otherwise specified.

That said, several licensed gambling venues and operators in Iowa, including commercial and tribal casinos, racinos, sportsbooks and the Iowa Lottery, are overseen by the Iowa Racing and Gaming Commission. Here's a look at how the laws in Iowa apply to the various gambling activities.

Casino Games

Casino gambling is legal in Iowa, with the state being the first in the country to legalize riverboat casinos in 1989. Over time, the rules regarding gambling on riverboats changed, and operators began to set up land-based venues as laws allowed from the early 1990s. Today, the casino gambling industry in Iowa consists of around 20 commercial casinos and four tribal casinos, with games offered, including slots and table games, including poker at some venues.

Online casino gambling is unregulated in Iowa, but such activities are deemed illegal by default due to the state's definition of gambling. Penalties for breaking the law in Iowa regarding online casino gambling can be steep, reaching a maximum of 10 years in prison. However, there is no record of Iowa residents being punished for playing online casino slots or other casino games via offshore sites.

Poker

Poker gambling in Iowa is legal, with many licensed casinos in the state offering their well-furnished poker rooms. Charitable organizations are also permitted to operate games of poker under certain circumstances. Online poker is illegal in Iowa without specific legislation about online gambling. However, since players are not prosecuted, Iowa residents are generally safe to play at foreign poker sites.

Bingo

Bingo gambling is legal in Iowa, but there are no standalone bingo halls in the state, as these are not permitted. Instead, residents can enjoy bingo games at the tribal casinos or events run by charitable organizations. Online bingo gambling is unregulated and deemed illegal in Iowa without specific legislation. Iowans can still find plenty of bingo casinos online to play at, with prosecution for doing so very unlikely.

Lotteries

Lottery gambling is legal in Iowa, with the Iowa Lottery operating in the state since 1985. Residents can buy tickets for various draw-based games, including the popular Powerball and Mega Millions draws, instant games, scratch cards and pull tab games.

Online lottery gambling is illegal in Iowa. While the Iowa Lottery has a website and even a mobile app, online ticket sales are not permitted, so the website and app serve only as a way of checking results or scanning tickets for promotional purposes. Various online lottery casino sites accept players from Iowa, with those intent on playing such games unlikely to face prosecution for doing so.

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Due to the state's legal stance on gambling, even social games for real money held within private residences are deemed illegal. Lootboxes and skin gambling are yet to be regulated in Iowa, with no laws currently in place about these modern forms of gambling.

Cryptocurrencies are recognized as having a monetary value in Iowa, with politicians permitted to accept donations in Bitcoin. However, virtual coins are not currently accepted as payment at any of the state's legal gambling venues. Iowans can play casino games using their Bitcoins or altcoins at one of many crypto casinos that accept residents of the state.

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Both offline and online sports betting are legal in Iowa, with some 17 sportsbooks currently providing betting markets on a wide range of sports in the state. Sports betting is currently the only form of online gambling legal in Iowa. Daily fantasy sports is also legal in Iowa, with top sites like DraftKings and FanDuel accepting residents of the state.

Parimutuel horse racing betting is legal in Iowa, with two racinos - Q Casino and Prairie Meadows - offering track-side and off-track betting, plus various casino games.

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The Iowa gambling age varies depending on the activity in question. Those aged 18 or over can legally play bingo, lottery and daily fantasy sports, but residents of the state must be at least 21 to play casino games and bet on sports.

Tax Regulation

Iowa gambling tax regulations mean gambling winnings are taxed on both a state-wide and federal level, as in most states. There is a 5% tax on gambling winnings at the state level, with a 24% tax withheld at the federal level.

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Gambling was banned in the state of Iowa right up until the early 1970s when a priest was arrested for organizing gambling games at a charity picnic event in North Buena Vista. Public outrage triggered a referendum in 1972, with the results overturning the ban and leading to the legalization of charitable gambling activities and low-stakes games in 1973.

Betting on horse racing and greyhound racing was legalized in 1983, the Iowa Lottery launched in 1985, and by 1989, restricted gambling on riverboat casinos was legally permitted.

Compacts were negotiated with 3 of today's four native American tribes to operate tribal casinos in 1992, with commercial casinos allowed to establish themselves on land-based premises the following year. Online sports betting was legalized in 2019, and a 4th tribal casino compact was agreed upon in 2020.

Key Facts

Iowa's gambling laws permit various activities, but most forms of online gambling are still illegal in the state. Here's a reminder of the main points regarding gambling regulations in Iowa:

• Casino gambling is legal, but only within the licensed commercial casinos, tribal casinos or racinos.
• Online casino gambling is illegal.
• Poker gambling is legal and available at most of the state's casinos.
• Online poker gambling is illegal.
• Bingo gambling is legal, but only at tribal casinos or charitable events.
• Online bingo gambling is illegal.
• Lottery gambling is legal via the Iowa Lottery, but online ticket sales are prohibited.
• Sports betting is legal in both offline and online forms.