New Bill Seeks To Issue Cease And Desist Orders To Offshore Sportsbooks

The Iowa state government is seeking to give the state’s gambling regulators the power to apply pressure on illegal betting sites to stop them from operating in the state. A bill submitted by the Iowa Department of Inspections, Appeals, and Licensing would provide the Iowa Racing and Gaming Commission (IRGC) with sweeping powers to seek to remove so-called offshore sportsbooks, as well as any other unlicensed betting operation, from offering their services to bettors in Iowa.

If passed, the bill would enable the IRGC to issue cease and desist orders to these illegal gambling sites. Under current legislation, state gambling regulators say the power that they are provided to take action against illegal betting sites is extremely limited in scope. Their authority is solely restricted to governing over legal and regulated sportsbooks operating in the state.

“When Iowans gamble on unlicensed platforms, they’re putting their money and their personal information at serious risk,” Eick told the Iowa Capital Dispatch. “So we’re trying to be proactive here.

“The bottom line is, illegal gaming undermines the public trust and puts Iowans at risk.”

Offshore sportsbooks don’t pay any state taxes, so Iowa earns no revenue from those bets. According to a study conducted by the American Gaming Association, this amounts to a loss of $15.3 billion in state gaming tax revenue.

That same study found that wagering through illegal and unlicensed gambling sites has increased by 22% across the United States since 2022. The total money bet on these offshore sites exceeds $673 billion annually.

Iowa lawmakers will consider the bill when the 2026 Iowa legislative session begins on January 12.

Iowa is the latest state to seek to halt offshore sites

If the bill is passed into law, Iowa will join a long list of US states seeking to shut down offshore sportsbooks in their state.

Since the summer of 2024, the Michigan Gaming Control Board has issued cease and desist orders to 26 offshore sites.

“Illegal online gambling sites operate without oversight, putting players at risk and undermining Michigan’s secure, regulated marketplace,” MGCB Executive Director Henry Williams said in a statement. “We will continue to take relentless, decisive action to prevent unlicensed operators from targeting Michigan residents and ensure that all gaming is conducted lawfully and responsibly.”

Last May, the Tennessee Sports Wagering Council issued similar orders to offshore sportsbooks BetOnline, Sportsbetting.ag, and Lowvig. Massachusetts did likewise in June.

Washington state issued multiple cease and desist orders to Bovada throughout 2025. West Virginia was the first state to go after the unlicensed sites, filing cease and desist orders against them as early as late in 2024.

A selection of more than 40 state attorneys general appealed to the US Department of Justice, urging that the federal government become more proactive in dealing with the issue of offshore gambling sites.

Due to these efforts, Bovada has stopped operating its online sportsbook in 16 US states.

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