By Lynn Campbell IowaPolitics.com
DES MOINES — The House State Government Committee on Wednesday approved a gambling bill on a 20-3 vote, despite some concerns that allowing Iowans to bet on live horse races online or by telephone will increase the risk for underage gambling.
Wednesday’s vote clears the way for House floor debate and final legislative approval of the gambling bill next week.
The portion of the bill that drew the most discussion would permit Iowa gamblers to make advance deposits to place online or telephone bets on live horse races as it’s done in 20 other states.
“Right now, people are able to bet and wager on races at Prairie Meadows outside of the state of Iowa but they’re not able to do it in the state of Iowa,” said Rep. Peter Cownie, R-West Des Moines. “This codifies that as well as being able to collect on the wagers that are taken from outside of the state.”
Rep. Mary Mascher, D-Iowa City, said she fears the change will open the door to underage gambling despite the Iowa Racing and Gaming Commission establishing guidelines for advanced deposit wagering. Individuals must be 21 to gamble in Iowa.
“The concern is that we will now be allowing people to place bets, either in person, by phone or electronic device which means computers,” Mascher said. “How do you anticipate them controlling that in homes where minors may be able to get passwords and get into accounts, and in essence, gamble from home?”
Cownie, the bill’s floor manager, said he’s hopeful there will be safeguards and that Iowa’s system will be modeled after those in other states. However, he said he also shares similar concerns about underage gambling.
Mascher said she didn’t know how those concerns would be addressed adequately.
“If somebody goes to a track and they’re placing a bet, you know that they’re of age,” she said. “When you start allowing it to be done outside of the place where you’re betting, then you’re opening yourself up to problems and that’s a concern. I think this is an expansion of gambling as a result of this section alone and that concerns me a great deal.”
Rep. Stewart Iverson, R-Clarion, said Mascher’s concerns are shared by all lawmakers. But he disagreed that the bill expands gambling.
“I know this is not an expansion of gambling because Representative Raecker agreed with it,” Iverson said somewhat jokingly. Raecker has been an opponent of gambling.
Senate File 526 calls for two state reports on Internet poker. Iverson said it’s in every Iowan’s best interest to find out how big Internet gambling is in the state. He said he believes it’s especially prevalent on college campuses.
“It’s something we do need to get a handle on, but it’s kind of tough to get a handle on when we don’t actually know what’s going on out there,” Iverson said. “I think that report would be helpful.”
Also under the bill, casinos that have successfully passed two referendums would no longer be subject to an automatic county referendum every eight years on its gambling license. However, voters could petition for a referendum if they gather signatures of at least 10 percent of the voters from the previous general election.
In addition, the bill only allows for quarter horse and thoroughbred live racing at Iowa racetracks. Standardbred racing would be conducted at county fairs. The move would save Prairie Meadows Racetrack and Casino in Altoona $1.5 million to $2 million on its yearly racing costs, since it wouldn’t have to handle standardbred racing.
Iverson said this is the first time in two decades that he’s ever seen representatives from the different breeds of horses come to agreement on this issue.
“I think that’s historic all by itself,” he said. “The horse breeders of Iowa are all going to be better served by this bill.”
Wednesday’s action on the gambling bill came as the Iowa Capitol started to empty out.
Friday is the projected last day of the 2011 legislative session, and even if adjournment is nowhere in sight, Thursday is the last day that House and Senate clerks get paid. That means most of them will no longer be at the Capitol.
House Speaker Kraig Paulsen, R-Hiawatha, told lawmakers that there will be no more House floor debate this week, so many lawmakers have gone home for the week.
Lawmakers’ daily expense allowance, or “per diem” for the legislative session, ends this week. That’s $100.50 a day for Polk County lawmakers and $134 a day for all other lawmakers.
