As each day passes, the legalization and regulation of online poker in the United States seems to draw nearer. With Nevada already vetting potential operatorsand New Jersey trying to catch up, the state of Iowa has jumped into the fray as well. However, with a population of three million, roughly one-third as large as the Chicago metro area, Iowa offering intrastate online poker could be a hairy proposition due to its small size. In a Des Moines Register article from last week, however, it was revealed that Iowa could soon be investigating interstate, as opposed to intrastate, online poker.

State Senator Jeff Danielson (pictured above) is spearheading the charge for internet poker in Iowa. Late last year, he attended an online gaming conference in Washington, DC that PocketFives was also present at. Danielson sat near the front of the room and attentively asked questions of each panel on topics that included cheating in poker, the growth of internet gambling, and the challenges of state versus Federal licensing.

One month after the summit, Danielson and the rest of the industry have digested an opinion letter from the U.S. Department of Justice saying that the Wire Act only applies to sports betting, seemingly opening the floodgates for state-by-state online poker and online gaming. The State Senator told the Register, “We believe that because of the Department of Justice ruling, we can now have a multi-state compact.”

If you’re familiar with Powerball, then you know that over 30 states and the U.S. Virgin Islands already participate in an interstate game. In fact, it’s still growing in popularity, as the multi-state lottery just bumped its ticket price up to $2 in an effort to create larger jackpots. In case you’re wondering, by the way, tonight’s Powerball jackpot is $100 million and drawings are held every Wednesday and Saturday.

Let’s get back to talking about Iowa. The Register noted that Danielson “plans to draft a bill soon to legalize internet poker in Iowa, and he expects it to be considered this session, although he doesn’t have a timetable yet.”

In Washington, DC, Danielson told the crowd that his rationale for expanding poker online was not financial: “We don’t have a budget problem. Our impulse is not to regulate online gaming for revenue. I think that’s the last reason to contemplate it. As technology explodes, I want every Iowan who wants to avail themselves of [online gambling] to be able to do so safely and securely.”

The Poker Players Alliance (PPA) and FairPlayUSA have been championing a Federal internet poker framework on the grounds that a state-by-state licensing scheme would be difficult for operators to navigate and result in a lower player count. Danielson, however, appears tired of waiting for Congress to act. Speaking in DC, he observed, “Congress is so boggled up, they can’t even pass gas, let alone a good bill. What are the states supposed to do? We have an obligation as states to experiment.”

A network of states participating in an online poker game could be a real possibility. On a conference call last week, gambling law expert I. Nelson Rose remarked that the recent DOJ Wire Act decision paved the way for interstate, and even global, online poker: “There is no Federal law that would apply to interstate or even international online gambling that is legal under state law, except sports betting and lotteries.”

It’s estimated that legalized online poker in Iowa could generate between $3 million and $13 million in annual tax revenue. In addition, a study by California-based U.S. Digital Gaming concluded that the Midwestern state has a large enough population to support its own online poker network if push came to shove.

A representative of U.S. Digital Gaming was quoted in the Register as saying, “We believe that Iowa has enough of a population of players to support a network on its own, that you wouldn’t need the interstate component in order to make it viable. But, it certainly makes for a more robust opportunity if you set up the interstate opportunity.”

Iowa already has a bevy of land-based casinos, including Harrah’s Council Bluffs, which will host a World Series of Poker Circuit Event from March 29th to April 10th. Other casinos can be found in cities like Waterloo, Dubuque, and Sioux City.