WATERLOO -- As Iowa prepares for an influx of new casino development, lawmakers earlier this month made it illegal to hold sponsored, organized poker tournaments around the state.

New legislation passed May 4 by Gov. Tom Vilsack will make organized poker tournaments illegal beginning July 1.

The bill, which amends current legislation already contained within the Iowa Code, was written to clarify existing laws against organized gambling in places like bars and social clubs. Current law, state officials said, was ambiguous enough that such events were allowed due to differing interpretations of the law.

"What this does is clarify that a Texas Hold'em tournament, or any other kind of poker tournament, is not legal," said David Werning, spokesman for the Department of Inspections and Appeals. "It removes all doubt."

The current legislation deals with "bona fide contests," which are legal in the state of Iowa. The laws legitimize games like cribbage, dominos, pinochle and "similar contests." Poker tournaments are not mentioned.

The amended subsection specifically states that poker, blackjack, craps, keno and roulette cannot be considered "bona fide" contests.

Black Hawk County Attorney Tom Ferguson said that, while it was difficult to say what action the bill will inspire on the state's behalf, the main point of the new subsection was clear.

"At this point in time, it appears, at least on the face of the statute, that you're not going to be able to participate in these games," he said.

The new legislation will not affect establishments that hold a social-gaming license, which permits games between friends and acquaintances in public places. But regulations in the Iowa Code demand that such games conform to stated rules. Players must have a pre-existing social relationship, no entry fee can be required, and only $50 may be won or lost within a 24-hour period.

So while it's still legal to play small-stakes, penny-ante poker among friends at places holding these licenses, officials said, open tournaments with winnings over $50 are illegal. The amended subsection will also not affect games between friends and acquaintances, but only leagues, contests and tournaments.

There are 49 social-gambling licenses issued in Black Hawk County, mostly to bars, restaurants and fraternal organizations, such as the Knights of Columbus, the American Legion, and the Elks Lodge.

The law could hurt business at bars that hold poker tournaments, said Mike Gruetzmacher, owner of the Sports Page on Kimball Avenue. Tournaments like the one held at the Page for the past five weeks may not be legal after July 1.

"I think it's just kind of a sad thing, because it's a nice evening of entertainment for people to come in for," he said. "This could hurt our business. I don't think they realize the effect it'll have. For Mom-and-Pop places like us, those things really help us out on slow nights. It helps pay the bills."

The tournaments have become popular -- and profitable -- for those who host them, said Daniel Wells, general manager of the Sports Page. For the past five weeks, the bar and restaurant has hosted a weekly Monday Texas Hold'em tournament with a $20 buy-in. While the bar makes no money from the game itself, the action attracts a thirsty clientele.

Already the number of players at the Sports Page's game has begun to swell. The first night, Wells said, 18 people showed up to play. Last week, there were 32.

Wells said the idea to host the tournament was taken from another establishment. The idea, he said, was to increase the draw of the 3-month-old Sports Page to customers and to find something else to bring them in. The game, he said, has been a huge success.

Ed Brown, 29, a poker enthusiast and college student in Waterloo, said the city was a friendly one for the card-savvy.

"Seven nights a week, there's a game in this town," he said.

There's a certain draw, Brown said, to playing cards in the bars and clubs around the Cedar Valley.

"I just do it for fun," he said. "For $20, you get four or five hours of entertainment. And you get to meet new people that you wouldn't have met otherwise."

Werning said that the Department of Inspections and Appeals, which investigates complaints of illegal gambling, had always held the view that such tournaments were illegal. But interpretations among county attorneys, who have the official say as to whether such laws are being violated, have differed from county to county.

In January, a dispute arose between county and state officials over a 10-week Texas Hold'em tournament held in Carter Lake. State officials asked that the game, hosted by the Chez Paree, be stopped, but Pottawattamie County Attorney Matt Wilber disagreed, saying the game was legal under Iowa law.

The new legislation was sponsored by the standing House committee on state government, which has no representatives from Black Hawk County.

Larry Mullen, special agent in the Iowa Department of Public Safety, didn't expect the new laws to result in any charges but rather an "educational period" as tournament organizers become aware of further restrictions against poker tournaments.

Contact Luke Jennett at ljennett@iastate.edu or at (319) 291-1473.