Iowa has been exploring the possibility of regulating online poker for the past year. The state only has a population of a little more than 3 million people, so player liquidity will definitely be an issue should the state pass any legislation.

But some lawmakers in the state see a way around that.

From the Des Moines Register:

Sen. Jeff Danielson, D-Cedar Falls, said Tuesday that he believes a recent U.S. Department of Justice opinion will allow Iowa to enter into agreements with other jurisdictions that have approved Internet gambling, including Washington, D.C., and Nevada, and possibly some foreign countries.

The Justice Department opinion, made public last month, says a federal law known as the Wire Act prohibits only sports betting over the Internet. In the past, the federal government has used the law to justify opposition to most forms of Internet gambling, which had led Iowa lawmakers to consider offering only Internet poker games within the state’s borders.

“We believe that because of the Department of Justice ruling, we can now have a multistate compact,” said Danielson, chairman of the Senate State Government Committee. He compares his proposal to the agreement the Iowa Lottery uses to participate in Powerball, a lotto game with big jackpots offered in 31 states, plus Washington, D.C., and the U.S. Virgin Islands.