Iowa Expands Powers To Crack Down on "Illegal Sweepstakes" Gambling

A new bill, SF 2289, has been signed into law in Iowa by Governor Kim Reynolds to give the state's regulators more authority to go after unlicensed gambling operations, including "illegal sweepstakes" platforms. 

The bill doesn't specifically target dual-currency models, but it does give the Iowa Racing and Gaming Commission more tools under the current law. 

Now, with SF 2289, the commission can issue cease-and-desist orders and injunctive relief. This can be applied to any person offering “games of chance, gambling, sports wagering, or illegal sweepstakes” in the state without a license or other authorization to operate. 

The Iowa Legislature unanimously passed the bill last month. 

More About the Bill

Again, it's worth noting that states like Montana, Maine, and Indiana have bills targeting sweepstakes casinos and dual-currency models. However, this law includes "illegal sweepstakes" into the state law, which now gives them more tools to crack down on them as they're considered unlicensed gambling. 

Before this bill, state regulators said they lacked authority under the former law to go after such operators. 

In addition to "illegal sweepstakes," the bill includes advance-deposit wagering, online fantasy sports contests, and pari-mutuel wagering. 

Other Sweepstakes Casino Bills and Laws

There have been many other bills concerning sweepstakes casinos, including but not limited to the following: 

• Oklahoma: Earlier this month, the Oklahoma Congress overrode the Governor's veto of a sweepstakes casino bill, Senate Bill 1589. 
• Connecticut: In June 2025, the Connecticut Congress approved a bill to ban sweepstakes casinos. 
• Montana: Montana became one of the first states to ban sweepstakes casinos with SB555. 
• New York: Before the end of 2025, New York Governor Kathy Hochul signed Senate Bill 5935 into law to ban sweepstakes casinos. 
• California: The biggest state to ban sweepstakes casinos was California. There was a lot of back-and-forth on this, including comments from Native tribes and the SGLA, but ultimately, Governor Gavin Newsom signed Assembly Bill 831 into law.