Iowa Lottery CEO Terry Rich told state lawmakers at a committee meeting that selling tickets on smart phones is the wave of the future. He says other states are looking at allowing online gambling in various forms, and Iowa doesn't want to be left behind. He says selling lottery tickets online makes sense in a "pay at the pump" era, and when young people are conducting more and more business on their smart phones. Lawmakers are skeptical after the uproar over Touchplay machines. But, other states are moving towards allowing certain forms of online gaming. We'll talk with representatives from New Jersey and Florida. Then, no bills have been requested to formally propose Governor Branstad's tax increase for casinos. The governor wants to increase the tax rate for casinos to 36%. Casino operators say this would put them out of business, or force them to cut operations to "bare bones." So, what happens now? Host Jeneane Beck talks with Terry Rich, State Senator Tom Courtney, Dan Kehl from Riverside Casino and Golf Resort and Gary Palmer of Prairie Meadows Racetrack and Casino about these issues.