Gov. Kim Reynolds has given the green light to sports betting in Iowa, almost one year to the day that the U.S. Supreme Court overturned federal sports wagering ban PASPA.
Reynolds took about a week to sign SF 617, which authorizes sports betting for the state’s 19 casinos, after the bill was delivered to her desk on 6 May.
The Hawkeye State has subsequently become the third state to approve legal sports betting in 2019 after Montana and Indiana.
The two-skin provision could put as many as 38 new sports betting brands in the marketplace, while the new legislation also permits bets on fantasy sports through websites and apps such as DraftKings or FanDuel.
The plan is to have brick-and-mortar sports wagering by the upcoming NFL season, with mobile to follow sometime after the retail books open. However, there will be an in-person registration requirement in place until 1 January, 2021.
American Gaming Association’s Sara Slane (quoted in Legal Sports Report) said that Iowa had “set its legal sports betting market up for success with a reasonable tax rate, mobile wagering, strong consumer protections and provisions that put responsible gaming at the forefront”.
The market will be governed by the Iowa Racing and Gaming Commission. There will be an application fee of $45k and a 7.5 per cent effective tax rate (6.75 per cent state tax), with a $10k annual renewal. It will be legal to bet on college games, but with no prop markets.
A state with a population only just north of 3 million, Iowa’s market might be small compared to the likes of Pennsylvania and New Jersey, but should benefit from a lack of legal sports betting in Nebraska and Minnesota.
