Iowa Lottery Urges Congress To Reject Online Gambling Proposals

According to a recent report by, the Iowa Lottery is appealing Congress to reject the proposals of federal regulation for online gambling. Terry Rich, the CEO of the Lottery, traveled to Washington, D.C. recently to lobby on the issue, alongside the North American Association of State and Provincial Lotteries. Rich released a report to the Iowa Legislature’s Government Oversight Committee which detailed his visit.

In the report, Rich stated: “The lotteries emphasized that the federal government should not infringe on states’ rights to implement and to regulate Internet gaming within their own borders. Lottery staff also stressed that individual states are best equipped to respond to their citizens’ unique local preferences and decide what, if any, intrastate gaming should occur within their jurisdictions.”

According to Rich, the Iowa Lottery is not planning on offering online gambling but he is still concerned about the Harry Reid online gambling proposal. Rich stated in his report that Illinois and Georgia already have the ability to sell lottery tickets online and Delaware has agreed to offer online gambling with their state lottery.

The initiative by Reid sated that it would be illegal for online gambling services to be offered without proper licensing. Licenses would only be available for online poker and sites that offer unlawful online gambling services would have 30 days to shut down or they would be blacklisted from the program to have a license.

Back in November, Rich sent a letter to Reid as well as other leaders of Congress expressing his concerns about federal online gambling legislation that would circumvent state laws. Rich stated in the letter that states would be prohibited of choosing the games they would like to offer online as well as the tax structure set up would override state tax rates.

Rich stated further: “The Iowa Lottery has raised more than $1.4 billion for vital causes, including economic development, education and support for Iowa veterans and their families. Across the nation, in 2011 alone, lotteries provided $25 billion in net profits to local causes. In short, state lotteries are funding important missions. Congress should not enact legislation that supersedes state authority and that selects winners and losers.”



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