
Get ready for a Republican majority in the Iowa Senate, Fmr. Governor Mike Gronstal has done it again. Democrats in the Senate Ways & Means Committee passed a stripped-down version of a gambling bill that doesn’t include provisions to legalize in-state Internet poker because it was deemed “too controversial”. Once again the Democrats know better than the 73% of Iowans who oppose the expansion of gambling in the state so instead they did the next best politically cowardly thing as cited in the Des Moines Register:
The panel approved a bill now headed for the Senate floor that asks the Racing and Gaming Commission to prepare a report for the Iowa Legislature by Dec. 1 on creating a framework for state regulation of intrastate Internet poker.
The report would likely set the stage for a debate in the 2012 session on legalizing Internet gambling in Iowa.
The bill, Senate File 458, also includes provisions on:
• Referendums: Counties where voters have twice approved ballot proposals to legalize casino gambling would no longer be required to hold a referendum every eight years. Instead, voters could petition for a referendum in a county eight years after a second referendum.
• Horse wagering: Gamblers would be permitted to make advance deposits to place online or telephone bets on live horse races. This is now legal in 20 other states, lawmakers said.
• Horse purses: Two percent of purse money designated for Thoroughbred and quarter-horse racing in Iowa would be distributed to horse owners’ groups for the promotion and marketing of Iowa-bred horses.
Only Thoroughbred and quarter-horse racing would be allowed at Prairie Meadows Racetrack and Casino in Altoona. Purse money designated for Standardbred racing could only be used for Standardbred harness races at county fairs or other tracks approved by state regulators.
The Thoroughbred season at Prairie Meadows would be at least 67 days, and the quarter-horse season would be at least 26 days.
The state commission’s report on Internet poker would be required to consider the current state of unregulated Internet poker play in Iowa, consumer protection, and responsible gaming measures.
The commission could consult with Iowa casinos and potential Internet poker hub operators in making the report.
Sen. William Dotzler, D-Waterloo, the bill’s manager, said the bill will allow a deliberate approach toward examining Internet gambling, recognizing that thousands of Iowans are already gambling online. Other changes recognize the contributions of gambling to Iowa’s communities, he said.
“This is a good bill and it’s a move in the right direction,” Dotzler said.
The bill passed the committee on a 9-6 vote with several lawmakers criticizing the proposal.
Sen. Brad Zaun, R-Urbandale, said he didn’t support requiring the Internet gambling report, noting a recent Des Moines Register Iowa Poll that showed 73 percent are opposed to legalizing Internet gambling.
“We have the opportunity here to slam the door on this,” Zaun said.
Dotzler said there are enough votes to win Senate approval. That would send the bill to the Iowa House, where he said the measure’s odds for success are less certain.
Last week, opponents of greyhound racing appeared to be gaining support to amend the gambling bill to end dog racing at tracks in Council and Bluffs and Dubuque. But Dotzler said Thursday there weren’t enough votes in the committee to pass the greyhound racing provision, and he doesn’t think it could pass the full Senate, either.
Meanwhile outside the state boarders, here is what is going on in the internet poker industry that Fmr. Gov. Gronstal and his minions on the Senate Ways & Means Committee would like to bring to our communities. From the LA Times:
The founders of the three largest online poker sites were indicted by the FBI on Friday in what could serve as a death blow to the thriving industry.
Eleven executives at PokerStars, Full Tilt Poker, Absolute Poker and a number of their affiliates were charged with bank fraud and money laundering in an indictment unsealed in a Manhattan court. Two of the defendants were arrested on Friday morning in Utah and Nevada. Federal agents are searching for the others.
Prosecutors are seeking to immediately shut down the sites and to eventually send the executives to jail and to recover $3 billion from the companies. By Friday afternoon Full Tilt Poker’s site displayed a message explaining that “this domain name has been seized by the F.B.I. pursuant to an Arrest Warrant.”
… “These defendants concocted an elaborate criminal fraud scheme, alternately tricking some U.S. banks and effectively bribing others to assure the continued flow of billions in illegal gambling profits,” Preet Bharara, the U.S. attorney in Manhattan, said in a statement.
Sen. Zaun is exactly right. This was an opportunity to slam the door on these very gaming entities that would be in our own homes. These are not the “unscrupulous offshore internet sites” that are unregulated by federal laws that Gov. Branstad refered to as a possible reason to allow them in Iowa. Remember Touchplay. Iowans didnt want it, but the legislature and Chet Not Stupid gave it to them anyway and it cost a boatload in legal fees once the state retracted its mistake. And those fees were paid with taxdollars from the very Iowans who opposed Touchplay in the first place.
The Democrat controlled Senate will pass this and send it over to the House where it will hopefully die, but if it does reach Branstad’s desk, the only responsible option is to veto. This is Gronstal’s foolish pipedream. Do you here me Governor Branstad?