In Iowa, an amendment to state Rep. Bobby Kaufmann’s sports betting bill is attracting equal measures of support and opposition. The amendment would ban betting on Iowa college games. Kaufmann, said, “We are not approving an expansion of gambling. We are choosing to not ignore an expansion that is here. We’re choosing to police, regulate and tax something that is already here. The whole point of this is bringing sports betting out of the black market.”
State Rep. Vicki Lensing favors banning betting on Iowa collegiate sports. She said, “Our concern was college athletes are minors. They are playing for the sport of the game and not to be influenced by money or anything else that might change how they play the game. I’m not assuming that young athletes would be swayed, but we want to take away that temptation.”
But Kaufmann stated, “Cutting out collegiate is just making a niche in the black market for bookies to continue to take advantage of. If anything corrupt is happening right now with a bookie, you’ve got no recourse. This allows the policing of sports betting which currently doesn’t exist.”
Iowa Gaming Association President and Chief Executive Officer Wes Ehrecke agreed. He noted college athletics represent a large share of the sports-betting market; removing those teams from Kaufmann’s legislation would benefit illegal, unregulated gambling activities.
State Senator Joe Bolkcom stated, “Once we regulate it, it’s going to be going on steroids and I think there are going to be people perfecting the art of sports betting. I just think it’s the wrong approach. This is going to make it a more marquee, front-and-center opportunity for people to gamble and, obviously, there will be people who will have problems with it. It might be going on now, but by institutionalizing it and putting it under state control you’re going to get a lot more participation in this kind of gambling.”
The state Board of Regents, which oversees operations of Iowa public universities in Ames, Cedar Falls and Iowa City, has maintained a neutral position on the issue, though it supports banning bets on individual player performances. Board of Regents Communications Director Josh Lehman said, “Maintaining the integrity of our student athletes is of paramount importance to the board. This amendment is a positive step in that direction. We will continue to monitor the language of the bill as it moves through the legislative process. We want to ensure that the integrity of our student-athletes is preserved.”
The legislation would require bettors, at least age 21, to set up an account on-site at a casino within the first 18 months the law would take effect. Remote registration would be permitted after that.
Sports betting revenue would be taxed at 6.75 percent, with annual licensing fees of $15,000 for sports betting and $5,000 for daily fantasy sports. The state’s land-based and riverboat casinos pay 22 percent on gaming revenue in excess of $3 million. However, state Rep. Mary Wolfe, wants to add a 3 percent tax on mobile sports betting handle to be paid by the consumer. She said she’s concerned remote betting will encourage people to stay home, resulting in less money for the Rebuild Iowa Infrastructure Fund. She said the proposed “mobile convenience fee” would be the first of its kind among the states with legal sports betting. Wolfe noted, “The only objection I’ve heard to imposing a mobile convenience fee is that in order to avoid paying it, people might choose to place their mobile sports bets illegally, on the black market. Personally, I don’t think this is a viable objection. Under the bill, placing sports bets on the black market will be a Class D felony, and I doubt that Iowa residents will choose to commit a felony in order to save themselves $3 or $30 or whatever.”
Kaufmann stated, “I want to exercise extreme caution to those who think that sports betting will be a cash cow. It will not.” Dan Kehl, chief executive officer at Elite Casino Resorts, which owns and operates casinos in Riverside, Davenport and Lyon County, said his company does not consider sports betting “a huge financial windfall, but we see it as a good opportunity to attract a new clientele to the property.”
Kaufmann said, “I’m making changes as we go that are necessary to get the votes that I need and I think that we have the momentum.” He added he believes the bill’s chances to pass are “very high.”
