Gov. Terry Branstad has long been a master of opposing gambling expansion while milking the casino industry for all it’s worth.
He’s responsible for signing the state lottery and riverboat casinos into law, all the while expressing misgivings and saying the integrity of the state was his top priority. But he had no trouble spending the tax revenues.
During the 2010 campaign, he reiterated his
Yet the governor made clear Monday he’s willing to consider allowing Internet gambling in Iowa. He’s couching his interest in further study as a way to protect Iowans.
“As you know, the people in the state of Iowa have supported legal gaming. However, there is a concern about illegal activity that’s going on and the fact that this is being done offshore,” he said at his weekly news conference.
Illegal offshore gaming has a shady reputation, he said. “I want to make sure the integrity of the state is protected in the process and we certainly prevent our citizens from being defrauded by unscrupulous activities.”
So in order to stop a few foolish Iowans from gambling away their nest eggs on potentially rigged Internet games, we should give everyone the chance to lose their savings on games that we can regulate and tax. Makes sense, doesn’t it? If so, then it should also make sense to stop Iowans from illegally buying bad weed by making marijuana legal and taxable.
Offering state-regulated Internet poker doesn’t get rid of the offshore scammers. It might even expand their market by lowering public resistance to online wagering. The private sector will entice players with higher stakes and more exciting games.
Branstad didn’t try to deny that legalizing Internet poker would expand gambling in Iowa. I asked Branstad whether he agrees people who are unwilling to gamble illegally online might give it a spin if it were legal. He said this isn’t his idea and he’s not advocating it – he’s just not ruling it out.
The governor noted he doesn’t know whether the bill pending in the Iowa Senate will pass. That is an open question. Senate leaders said last week they don’t know yet whether there are sufficient votes to bring up a bill. The lack of clear opposition from the governor won’t hurt.
Branstad wants more state revenue from gaming. His proposal to raise casino taxes to offset a corporate income-tax cut has stalled. He also predicts the casino industry will stagnate.
Internet gaming, on the other hand, has vast potential. Iowans who wouldn’t set foot in a casino, where their friends and neighbors might see them, could double down in the privacy of their living rooms. Indian tribes and the lottery wouldn’t be left out for long. The state treasury would light up like a slot machine, at least for a while. The rush would last long enough for Branstad to pay for his priorities and cut taxes at the same time. If the economy starts to suffer from a glut of gaming, it’ll be on someone else’s watch.
Advocates of online gaming say if states like Iowa don’t stake their claim soon, the federal government will legalize it anyway and snatch the tax money. Maybe that will happen, maybe not. Making sure Iowa catches the gravy train seems like a more honest argument than playing the public-safety card.
If we’re really worried about Iowans getting ripped off by overseas Internet scams, let’s try warning them. Put some state dollars into a public-service campaign. Work with the feds to tighten laws shielding Americans against offshore fraud. Go after winnings from illegal gambling. But don’t curse the cash cow if you really want more moola.
Political columnist Kathie Obradovich can be reached at (515) 284-8126 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Twitter: @kobradovich. Blog: DesMoinesRegister.com/obradovich.
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