Iowa law gives gaming regulators cease-and-desist power over illegal sweepstakes

Iowa Gov. Kim Reynolds signed Senate File 2289 on May 15, giving the Iowa Racing and Gaming Commission new tools against unlicensed gambling. The gambling provisions sit in the first division of a broader Department of Inspections, Appeals and Licensing bill.

Under the law, the commission may take reasonable or appropriate action to enforce Iowa Code chapter 99F, issue cease-and-desist orders, and seek injunctive relief against anyone offering games of chance, gambling, sports wagering or sweepstakes gaming in Iowa without a commission license or other specific legal authorization. Similar enforcement language applies to pari-mutuel and advance deposit wagering and internet fantasy sports contests.

Unlike the 2026 laws in Indiana, Maine and Oklahoma, SF 2289 does not define or prohibit dual-currency sweepstakes casinos by name, and it does not create a licensing system for them. It is an enforcement law rather than a standalone ban.

The bill passed the Senate 44-0 and the House 93-0, according to Lines.com. A provision on withholding from gambling winnings took effect on enactment, while the enforcement powers follow Iowa's standard July 1 effective date for new laws.