Iowa Bill Would Let Gaming Regulator Order Cease-and-Desists Against ‘Illegal Sweepstakes’
Iowa regulators could soon gain explicit authority to issue cease-and-desist orders to online sweepstakes operators the state deems illegal.
LISTEN TO THIS ARTICLE:A pre-filed bill from the Iowa Department of Inspections, Appeals and Licensing would let the Iowa Racing and Gaming Commission (IRGC) take direct enforcement action – including issuing cease-and-desist orders and seeking injunctive relief – against persons offering "games of chance, gambling, sports wagering, or illegal sweepstakes" in Iowa without an appropriate commission license.
Under current law, the IRGC mainly regulates licensed casinos, retail sportsbooks and authorized online sportsbooks. The proposed language broadens that remit, allowing the commission to pursue platforms it considers to be unlicensed or operating unlawfully in the state.
Tina Eick, administrator of the IRGC, told the Iowa Capital Dispatch that the measure is aimed at what the commission sees as three primary categories of problematic operators: phishing-style sites that mimic licensed casinos to steal customer data; offshore sports books such as Bovada and MyBookie; and sweepstakes-style platforms that permit cryptocurrency redemptions and have generated complaints when players attempt to withdraw funds.
"We have a strong regulatory system that ensures the games are fair. We hold those [regulated] operators accountable. Their information and their funds are secure, and then they have responsible gaming, self exclusion programs in place, and then we tax them. They pay their fair share of taxes to Iowa. The bottom line is, illegal gaming undermines the public trust and puts Iowans at risk."
Examples of sweepstakes platforms that have drawn scrutiny for accepting crypto or dual-currency payments include Stake.us, Moonspin Casino, Yay! Casino, LuckyRush.io and Luckybird.io. State officials say complaints often center on players who encounter difficulty redeeming balances or receiving payouts after attempting to convert sweepstakes credits to cash or crypto.
The bill does not create a new criminal offense that explicitly outlaws sweepstakes gaming. Rather, it gives the IRGC the administrative tools to remove or bar operators from Iowa markets by treating unlicensed sweepstakes as "illegal" activity subject to enforcement like any other unlicensed gaming product.
More Regulation News
Industry Reaction and Enforcement Challenges
Regulators and industry lawyers say administrative cease-and-desist authority is a useful, if imperfect, instrument. Cease-and-desists can quickly signal a regulator’s intent and force some operators to withdraw, but they rarely stop bad actors permanently, particularly those running services from offshore jurisdictions or pivoting domains and payment rails.
An Iowa-based gaming attorney who asked to remain unnamed described the dynamic as a regulatory game of whack-a-mole. "A cease-and-desist can shut down a site’s access to a market for a time, but many operators simply migrate to new domains, change payment processors or rely on decentralized crypto rails to continue serving players. Robust enforcement requires both administrative tools and statutory clarity", the attorney said.
That distinction matters: in 2025, several states enacted laws explicitly banning dual-currency sweepstakes models or Sweeps Coin redemptions, while other states relied on regulatory actions and warnings. Lawmakers in Montana, Connecticut, New Jersey, New York and California moved to prohibit or tightly restrict Sweeps Coin mechanics last year, and similar bills have been introduced or pre-filed this session in states including Indiana, Maine and Florida.
Legal experts caution that even with expanded authority, the IRGC will face practical hurdles: identifying operators, proving offers are made to Iowa residents, and pursuing relief against entities domiciled outside the U.S. Still, advocates of tighter controls argue the new language would give Iowa a clearer path to protect consumers and preserve tax revenue for licensed businesses.
Whether the bill will pass when the Iowa Legislature convenes remains unclear. If enacted, the measure would join a patchwork of state approaches that regulators and operators will watch closely as they try to balance consumer protection, market integrity and evolving technology in online gaming.
RELATED TOPICS: Regulation
Latest News
Most Read
Must Read
Interviews
Exclusive Interview: Levon Nikoghosyan Shares AffPapa Winning Formula for Successful iGaming Events
Dec 03, 2025
Interviews
Review this New Post
Leave a Comment
User Comments
Comments for Iowa Bill Would Let Gaming Regulator Order Cease-and-Desists Against ‘Illegal Sweepstakes’