FanDuel last week became an official player in Iowa’s daily fantasy sports (DFS) market. The designation followed the positive completion of testing by the Iowa Racing and Gaming Commission.
The company already has a presence in the state, operating sportsbooks at the Diamond Jo casinos in Dubuque and Northwood.
“We’re thrilled to be offering Daily Fantasy Sports in Iowa,” Cory Fox, Counsel for FanDuel, said. “It’s a huge step forward for us and sports fans in Iowa.”
Both FanDuel and DraftKings underwent an intensive testing process.
“Some of the issues for both companies for Iowa dealt with the system’s mobile platforms, the system that conducts contests tested by independent lab for Iowa,” said commission Administrator Brian Ohorliko. “The companies were not interested in the two labs for Iowa, so the commission went to a third lab familiar with DFS technology, and the process of took longer.”
Ohorliko noted that when the third lab—RubinBrown—was accepted by all parties involved and authorized by the commission. The issue of change control, such as verifying players are of legal age and geolocation, was the last sizable hurdle.
“It was getting to the point where the commission and DFS companies were comfortable with processes in place,” Ohorliko said. “There are certain changes with no notification, platform changes that require a log, changes to notify the commission, some that require resubmission to the testing lab. There was lengthy discussion for what is appropriate, what isn’t. Two things that took longer than everyone hoped for.”
The acceptance marked the end of a five-year bid to enter the Iowa market for FanDuel. In July, Iowa’s gaming commission passed rules for sports betting and fantasy sports ahead of an August 15 date to begin accepting sports bets, but DraftKings did not receive approval for daily fantasy until October 25.
Until January 1, 2021 patrons must register in person before placing mobile sportsbooks in the state. Such a physical registration is required to access each of the sportsbooks operating online across the state, all of them in conjunction with a physical casino. The Diamond Jo properties are located in north and northeaster Iowa, near Minnesota and Wisconsin.
FanDuel has been a dominant player in growing sports betting markets nationwide, generating $113.9 million in total wagers in Pennsylvania in October and helping account for more than half of New Jersey’s $46.4 million in revenue for the same month.
