Although it's still early and there are plenty of obstacles to overcome, the Iowa legislature is taking some big steps forward in their efforts to legalize professional sports gambling.  Emphasize "professional" as this proposed law would not include college or amateur sports.

The bill is being backed by the Senate president - Jack Kibbie (D - Emmetsburg) - and has already been approved by the Senate subcommittee and was 'OK'd by the full Senate State Government Committee.'  Some of the proposals related to gambling the state is also currently looking at:  'including charging casinos a fee to avoid referendums now required to maintain their licenses, allowing large poker tournaments at casinos, letting bars install video gaming machines and ending live greyhound racing.'

Perhaps the biggest reason why the bill is gaining momentum is that Iowa has a $400 million dollar hole in the state budget.  Kibbie argues that sports gambling will always be alive and well in the shadows of the community and that not legalizing it for the purpose of state income seems absurd.  He believes that Iowa could eventually haul in more than $20 million/year on taxing professional sports gambling as well as tax the tribal casinos (who currently don't pay taxes to the state of Iowa) if they chose to participate.

Lisa Pierce, who is the director of the Central Iowa Gambling Treatment Program Inc., argues that the bill would just continue to feed the growing gambling problems the state already faces.  Said Pierce, "the more access we have to the different forms, the worse the problem.  The thing those lawmakers really need to grasp is yes, this will bring in more money for the state, but it will cost the state, too. How do you put a value on broken homes? On the suicide rate increasing? On people not being able to pay their debts and not being able to pay small businesses or large businesses?"  Also opposed to the bill is Sen. Jerry Behn (R-Boone), who thinks all types of gambling is "a tax on the people who can afford it the least."

Kibbie stated, "I don't have a bookie's phone number, but I could probably go to my barbershop and get one.  People say, 'I would love to do what they can do in Las Vegas.' This is an attempt to start that process. I'd like Iowa to be ahead of the curve."  Exactly.  Sports gambling is bigger than ever and it would be near impossible to put a figure on how much money is wagered every year in the 'underground.'  This would be a great way to put that money wagered to local bookies back into the state.  Sports gambling is going to happen whether it's law or not. The amount of people who gamble on professional sports might increase, but for many of the newbies to professional sports gambling, most are going to bet somehow or another - sports, cards, slots, horses, or dogs.

In 1992, Congress banned sports gambling across the country with exception of four states - Nevada, Oregon, Montana, and Delaware. At the time, these four states were 'grandfathered' in because sports gambling was already law. Therefore, the biggest obstacle the state of Iowa is going to face is getting Congress to lift the ban. Iowa does have backing from the states of New Jersey, Rhode Island, and Missouri, who are all interested in one day legalizing sports gambling.

Consider this.  Gambling911.com estimated that $100 million was wagered in Las Vegas alone on Super Bowl Sunday this year with another several billion wagered online - both considered the highest amounts ever.  Moreover, the American Gaming Association estimates that $81.5 million was wagered on the 2009 Super Bowl in Nevada with the casinos hauling in $6.7 million.  Shockingly, they estimate that the $81.5 million wagered legally was only 1.5% of all wagers on the Super Bowl.  In other words, 98.5% of all bets on the Super Bowl were wagered illegally in 2009.

Iowa just might be on to something here.  Whether it happens or not is still a long, long way away.

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