In Iowa, state Rep. Bobby Kaufmann predicted H 648, which would legalize sports betting, will pass the House in the first week of April. “I think the momentum is on our side. I know it’s a priority among leadership of both chambers to get this done. I’m shepherding it through and making the changes I have to make. I’m very confident in getting this done and think we have the wind at our backs.” He added, “Sports betting and fantasy sports are coming, and I will do my best to make sure Iowa does it the right way.”
The bill, which has bipartisan support, would allow players, who must be age 21 or older, to place a bet at a casino sports book or on a mobile device after registering at a casino. Areas of disagreement among lawmakers include whether betting on college sports should be allowed. Also, some want to ban those bets along with in-play wagers on an individual athlete’s performance in collegiate and professional sports; professional sports leagues support in-play wagering.
Kauffman said the Iowa Racing and Gaming Commission should have the authority to determine which wagers would be allowed. He added, “Black-market betting is going on at a very large scale right now, and I think if you prohibit any particular bet from being considered, those people are just going to stay doing it in the black market.”
The legislation calls for taxing tax gross sports betting revenue at 6.75 percent with 0.25 percent directed to problem gambling services. Under those conditions, a 2017 study by Oxford Economics indicated sports betting could generate more than $4 billion in annual sports betting handle, with $250 million in taxable sports wagering revenue. However, those numbers would be dramatically reduced without betting on college sports.
Kauffman said, “Those expecting a windfall in state dollars will probably be disappointed. Sports betting will not generate significant dollars for the state budget.”
Sports betting is supported by the Iowa Gaming Association, which represents the state’s 19 commercial casinos, and DraftKings and FanDuel. The state’s Board of Regents, which oversees the University of Iowa, Iowa State University and the University of Northern Iowa, is neutral about sports betting in general and betting on college sports in particular. In a recent Des Moines Register/Mediacom Iowa Poll of 803 Iowa adults, only 25 percent of Iowans favor legalizing betting on college sports, with 68 percent opposed. Betting on professional sports drew 40 percent in favor and 52 percent against.
State Senator Roby Smith sponsored a companion bill in the state Senate, SF 366. The legislation session will end May 3.
