An estimated 350,000 Iowans spend about 0 million annually to play fantasy sports, said Peter Schoenke, a Roto Sports official from Madison who represents the 120-member Fantasy Sports Trade Association. But, he said, many players are unaware they are not legally allowed to collect prizes, money or other winnings under current Iowa law. “You could win the contest but then you don’t get to win the prize. There have been cases in Iowa and the other five states where someone has won a free contest and thought they were going to win a T-shirt and ESPN said they couldn’t mail it to them, so stuff like that happens,” Schoenke said.
According to the state attorney general’s office, Iowa law allows participants to gamble against each other when it’s incidental to a “bona fide social relationship” between the participants and no one wins or loses more than $50 over a 24-hour period. Also, bookmaking is illegal, meaning the wagers/bets only may be made within the physically presence of each other.
To change the situation, currently lawmakers are considering Senate Study Bill 1068 and House Study Bill 47 that would make it legal for Iowans to win cash and other prizes while playing fantasy sports.
State Senator Jeff Danielson, chairman of the Senate State Government Committee, said he’s especially concerned that an Iowan will score a major prize and then discover he can’t collect on it—such as the National Football League’s $1 million prize for its “Perfect Challenge” fantasy game. “We haven’t had an ‘ah-ha’ moment yet where large dollar sums have been in question given our prohibition,” Danielson said. He added, “I personally believe that fantasy sports have economic value. There are a lot of workplaces that come closer together participating in fantasy leagues. It is something we need to have an answer. We can’t have this question whether they’re legal or not.”
Not all legislators support the measures. State Rep. Dan Kelly said he enjoys playing fantasy sports contests with his friends but said he is concerned changing the law might “crack open the door” to sports betting and online gambling.
Stephanie Fawkes-Lee, a lobbyist for the Iowa Annual Conference of the United Methodist Church, said the church opposes the measures which are considered to be expansion of gambling. Officials of Iowa’s gambling treatment program said they’re concerned and are monitoring the legislation.
Wes Ehrecke of the Iowa Gaming Association said the group is concerned that the fantasy sports betting bills do not address age restrictions, like those of state-regulated commercial casinos and the Iowa Lottery.
