Iowa enforces debt collections from citizens' gambling winnings

by Iowa residents who win jackpots of $1,200 or more in the state's casinos and racetracks are subject to database searches to determine if they owe the government money.
 The Associated Press reports that a 2011 change in the state's law allows casinos and racetracks to take outstanding debts from winnings beginning at $1,200. The previous amount required to take money from winnings was $10,000. The law has been in effect since July 2010, and Iowa has over $5 million in debt collections from citizens. Approximately 3,800 winners had their debts taken out of their jackpots since the implementation, says the AP. When an individual wins more than $1,200 from gambling, casino and racetrack employees are required to enter the winner's name in a statewide database to check for owed money. The database is comprised of debts owed due to unpaid child support, court fees, income taxes and other amounts. However, the law applies only to state-run casinos, and none of Iowa's three American Indian casinos are required to deduct debt from winnings. Additionally, lottery laws work in a different way and are determined by the Iowa Lottery "There are rules for everything, and if people owe court debt, they ought to be paying it," said State Senator Robert Dvorsky.