Last year, sports bettors wagered more than $2 billion in Iowa, far ahead of the $575 million in bets placed in 2020. Last December Iowans wagered about $266.5 million, or an average of more than $8.5 million per day, still lower than the record set in November. Since the current fiscal year started July 1, Iowa has taken in $4.9 million in sports betting tax revenue, according to state figures.
Observers said last year’s sports betting boom was the result of legalizing online wagering. Now 91 percent of sports betting in Iowa is done online, not in person.
This pot of gold is causing lawmakers to rethink how to allocate the state’s portion of sports betting revenue, or $13 million since 2019 from the 6.75 percent tax on adjusted gross revenue. House Speaker Pat Grassley said, “The money coming in is maybe a little more than expected. Should it just be left out there and you kind of pick-and-choose what to do with it. We’re looking at doing some things with it that benefit Iowans. When you have unobligated funds, there’s probably 100 different ideas. So we’re going to engage in those conversations.”
House State Government Chairman Bobby Kaufmann said he’d like to see sports betting revenue go to counties that do not host one of Iowa’s 19 casinos. He stated, “Casinos with counties have a lot of nice things” due to gambling revenue directed to the nonprofit groups that hold casino licenses. For example, Kaufmann noted Riverside Casino & Golf Resort as attracts residents from Linn, Johnson and Cedar counties but those counties get a “pittance” compared with money that stays in Washington County.
Kaufmann said he’s drafting a bill to direct a portion of sports betting revenue to non-casino-host counties in support of first-responder services, in particular fire and ambulance, plus other community improvements, like youth sports facilities. He said he believes the legislation will receive bipartisan support.
State Rep. Mary Mascher said she would like sports betting revenue directed toward mental health services, and wants to continue to appropriate money from the Sports Wagering Receipts Fund to support problem gambling services. Lawmakers appropriated $300,000 in fiscal 2020 and $1.75 million in fiscal 2021 for the program. The Iowa Economic Development Authority appropriated another $1.5 million for the Sports Tourism Program.
Mascher said she’s concerned gambling addition will increase since the state has made it easy to wager from smartphones and home computers.
“We don’t have enough counselors and social workers to address those problems that have a direct relationship,” she said.
State Rep. Mike Sexton noted besides the possibility of addiction, the overwhelming number of television advertisements is almost as concerning. “If had known we’d have to sit through all those commercials, I would have voted against,” he said.
