The Iowa Department of Inspections, Appeals, and Licensing has put forward a legislative proposal aimed at empowering the state’s gaming regulator to take action against online sweepstakes platforms operating outside the law.
This legislation would grant the Iowa Racing and Gaming Commission the authority to issue cease-and-desist orders, a move that underscores the increasing scrutiny of sweepstakes-style gaming within the state.
As highlighted by the Iowa Racing and Gaming Commission, the proposed legislation targets specific online gambling operations that the regulator identifies as detrimental to consumers. In a discussion with the Iowa Capital Dispatch, IRGC administrator Tina Eick detailed three prominent categories of problematic websites that the commission frequently encounters.
The first category includes fraudulent websites that mimic legitimate casino platforms, often employing similar branding or designs to deceive users into divulging personal or financial information. The second group encompasses offshore sports betting sites like Bovada and MyBookie, which operate outside the purview of U.S. regulations and lack proper licensing in Iowa.
The third category focuses on sweepstakes-style gaming sites that enable players to cash out their winnings in cryptocurrency.
According to Eick, these platforms have generated an increasing number of complaints due to issues related to delayed or unsuccessful payouts. The commission is particularly concerned that some players are struggling to access their funds after trying to redeem their winnings.
https://5star.media/2026/05/01/bill-to-ban-online-sweepstake-introduced-in-iowa/