1846: All gambling forms become illegal.Unfortunately, it’s still illegal to launch and run an online casino from within the state.īelow, you can see a rundown of the most important events in Iowa gambling history: Fast forward to 2019, when Iowa became the 11th US state to legalize sports betting. The state lottery followed suit in 1985, while the first riverboat casinos joined the fold in 1991. First, the state legalized pari-mutuel wagering on horse and dog racing in 1973. Iowa has a long and slightly complicated relationship with gambling.