In Iowa, Senate File 617, which would legalize betting on professional and collegiate sports events plus daily fantasy sports, awaits Governor Kim Reynolds’ signature. State Senator Liz Mathis said, “The way that I looked at sports betting was that it’s being done already, everywhere. If you’re going to be making it legal, then why wouldn’t the state try to benefit from that and put it to good?”
Under the proposed legislation, within the first 18 months of legalized sports betting, Iowans age 21 or older could establish “virtual wallet” accounts at the state’s 19 licensed casinos and place bets online with the money they deposit. Online registration would be allowed starting January 1, 2021. Players would be able to voluntarily set limits on their wagering. The law includes additional funding for problem gambling services.
Iowa Lottery Chief Executive Officer Matt Strawn earlier warned if legislators don’t allow online lottery ticket purchases, sales will slow and revenue goals will go unmet, even though he noted the lottery posted record sales in 2018, generating $87.1 million for the state; this year sales are exceeding projections.
“Without the ability to modernize our products, we anticipate that lottery proceeds will only be able to continue at their current levels for a few more years and then we anticipate a downturn, due to the decreased use of cash and the overall trend toward e-commerce,” Strawn said.
He added the “fine points and details” of how e-tickets would be offered remain to be resolved. However, Strawn said digital capabilities would provide more security and integrity and promote responsible play. He said e-tickets would allow the lottery to offer incentives through its 2,400-plus licensed outlets, driving foot traffic and economic activity to those retailers.
Reynolds’ spokesman Pat Garrett stated the governor “has confidence in Iowa Lottery’s ability to balance the growing demands of 21st century technology with the need for responsible gaming that is on par with the values of our state.”
Senate Majority Leader Jack Whitver stated legislators were not comfortable with offering sports wagering in convenience and grocery stores alongside lottery products. “We’ll certainly watch their business model and their receipts coming in over the next few years to kind of see what’s happening as everything changes in the economy. But I think once you do go to lottery tickets on the phone, that’s a much bigger step that will have to be a much longer and more thorough step before we’re even willing to go there,” he said.
