Iowa state Rep. Jake Highfill said his colleagues are “all in” regarding introducing legislation allowing sports betting next year. In the most recent session, Highfill sponsored a measure in February allowing sports betting at casinos and racetracks pending the U.S. Supreme Court’s ruling. The legislation cleared its first subcommittee and had bipartisan support in both the House and Senate. However, the session ended before the high court issued its ruling.
Opposition comes from churches and problem gambling groups. Iowa Catholic Conference lobbyist Tom Chapman said, “From a Catholic perspective, as long as it’s recreational in an atmosphere of moderation and control, it’s OK. But for many people, that’s not the case. There will be a certain percentage who will become addicted, and we will see more bankruptcies, more family issues. There are a lot of things people do that shouldn’t be legalized.”
Major league sports also oppose Highfill’s legislation, since it does not include the 1 percent integrity fee the leagues are promoting.
The Iowa Lottery met last month to discuss the agency’s role in sports betting. Lottery Vice President Mary Neubauer said several large retailers have expressed interest in offering at least a limited sports betting product. In June, the Lottery board unanimously approved a motion “to explore sports lottery and its feasibility in Iowa with vendors and Iowa lawmakers.”
Iowa Gaming Association Chief Executive Officer Wes Ehrecke noted casino operators also are studying sports betting. “Now that the Supreme Court has ruled, there is a lot more awareness,” Ehrecke said. The IGA supports Highfill’s legislation which would allow sports betting on professional and collegiate sports at the state’s 19 casinos, horse racetracks and other “gambling structures” and on mobile apps. Ehrecke said gaming association members will meet with legislators this summer to educate them about sports betting’s benefits and about setting a tax rate that would allow Iowa casinos to compete with offshore, illegal sites “and certainly the tribal casinos — neither of which will pay any taxes.”
Under Highfill’s bill, casinos would pay $25,000 for a sports betting license, with a $15,000 renewal each year. The proposed tax essentially is 22 percent of revenue.
The lottery predicted sports betting would bring in a maximum of $10 million annually. Highfill said it would generate “tens of millions” a year. In comparison, the casino industry generated more than $319 million in overall taxes, according to Iowa Racing and Gaming Commission figures.
Hard Rock Hotel & Casino Sioux City Jim Franke said sports betting “is just a right fit, and something we would want to do. We want to be in on that opportunity. It’s all about the experience for our guest. For them to be able to come here, and be able to place that type of bet, you know it’s more convenient for them, it’s well-regulated.”
Opened in 2014, Hard Rock recently opened a $5 million addition including a high-stakes room and an upscale wine bar.
