Iowa to take cut from gamblers who owe
BY THE ASSOCIATED PRESS
POSTED: June 8, 2008
DES MOINES — Gamblers who win a big jackpot at an Iowa casino could go home empty-handed — if they owe income taxes, child support or other payments.
Under a new state law that takes effect July 1, casinos will be required to run government database checks on the names of all players winning $10,000 or more on a slot machine or on a horse or dog race.
Jennifer Acton, an analyst with the Iowa Legislative Services Agency, said cash will be deducted up to the entire jackpot. Debts owned to cities, such as past-due water bills, can also be collected, she said.
The Iowa Racing and Gaming Commission talked about the new law on Thursday during its meeting at the Wild Rose Casino in Emmetsburg. Kevin Kelp, a truck driver from Terril who was at the casino gambling, said he didn’t think the change was a good idea.
‘‘I would kind of disagree with it,’’ said Kelp. ‘‘I think they could go through other channels to get the money. Maybe if you are way behind on income tax, but if you are like a month or so behind I don’t think they should take your winnings.’’
State official said that although the law takes effect July 1, the debt-collection network won’t actually be operational until about the beginning of August.
Brian Lehman, a spokesman for the Washington D.C.-based American Gaming Association, a trade group for commercial casinos, said Iowa appears to be the first state to make such a move.
‘‘To our knowledge, there is no other state that has such a program,’’ Lehman said. ‘‘There is nothing on the federal level to collect debts in such a manner.’’
Opponents of the measure have said they want to keep the gambling industry as a means to provide entertainment, not debt collection.
According to state records, 799 gamblers filled out tax forms in 2005 after winning more than $10,000 in Iowa’s casinos and racetracks. Among them, 125 people — or 15.6 percent — owed money to the state for a variety of debts, records showed.
State officials said the average debt totaled $2,884, and that if the collection program had been in place in 2005, Iowa would have collected about $360,500.
Iowa Lottery Vice President Mary Neubauer said the lottery has had a similar government debt collection program in place since at least the early 1990s.
