Branstad said he would need to learn more about the proposal if it cleared the Legislature and reached his desk, and acknowledged that many Iowans already play poker illegally on the Internet using sites based outside the country.
"Some of the people who are promoting it are saying, 'You've got this illegal offshore gambling that's going on,'" Branstad said at a news conference. "We want to prevent that from occurring and this would be a way of having it done legally instead of it being done illegally without the state getting any benefit from it."
The measure to legalize Internet poker has won approval in a Senate committee, and is awaiting debate in the full Senate.
During his initial tenure as governor, Branstad signed into law much of the legalized gambling that is on the books, yet he argues that he doesn't support gambling. During the last campaign, Branstad said the state, which is in the process of building its 18th casino, "is saturated" with gambling.
Money also gives the issue momentum. Lawmakers are struggling to close a projected budget gap of more than US$ 500 million next year, and Internet gambling has been projected to generate about US$ 30 million for the state.
Branstad said voters have demonstrated they support the legitimate gambling industry, but that they have voiced concerns that online gambling is rife.
One of the key arguments made by backers of the Internet gambling measure is that state regulation is the best way to protect Iowans who are already playing poker on the Internet. Branstad agreed.