Iowa

From 2019 onward, Iowa has opened its doors to 17 sportsbook operators, which is impressive considering there are no major sports teams within the state.

Bettors in Iowa have free reign to wager on both professional and collegiate sports, including events that include in-state colleges. Outside of those two categories, the ability to wager on horse racing is available, along with the opportunity to utilize daily fantasy sports apps.

Customers in Iowa are not permitted to bet on politics or entertainment events like the Oscars.

Online sports betting in The Hawkeye State

Some states are just set up perfectly to hit the ground running once sports betting is legalized, and Iowa was one of those states. With plenty of casinos already in operation throughout the state prior to the legalization, Iowa was able to welcome a wide range of big-name mobile sportsbook operators right away.

When PASPA was overturned in 2018, the state of Iowa had already been working on a bill to get sports betting legal prior to that ruling from the Supreme Court. Even though they seemed the most prepared to get a bill passed that same year, they were unable to do so. However, shortly after, in May 2019, the state was able to get a bill passed, and by August of 2019, both retail and mobile sports betting had gone live.

When Governor Kim Reynolds signed the state’s sports betting bill, one requirement was that all online sportsbooks partner with a land-based casino to obtain a license. In fact, each casino can partner with three online operators, so while there are a little over 15 mobile sportsbooks already active in the state, on paper, there could technically be 57 active at one time.

Heading into 2024, there are 17 operators that are active in Iowa, and that number seems to be consistently changing due to sportsbooks leaving the state or merging with another operator. Regardless, this still allows residents of the Hawkeye State to have quite the selection of mobile betting apps available to them at all times.

In 2022, the Hawkeye State would pass HF 2497, which allowed for esports betting to become legal in the state with regulations. The bill also allowed bettors to wager on things like the NFL MVP or other similar awards.

All legal IA sports betting apps in 2024 (from newest to oldest):

Sports betting & gambling legislation in IA

When sports betting was first made legal in Iowa, it was required that all bettors looking to create a mobile betting account be on location at a partner casino. However, that rule expired in 2021, and customers can now create accounts through remote registration. The only guideline is that they must be within state lines.

Once an account has been created, bettors must be at least 21 years old to place a legal wager online or at a retail location. The Iowa Racing and Gaming Commission enforces all of these rules and regulations.

As far as taxes go for bettors, winnings are subject to a 5% state income tax rate and a 24% federal income tax rate. It is important to note that even if a bettor is not an Iowa resident but received their winnings while within state lines, they are still taxable by the state.

Outside of sports betting, there are plenty of other ways Iowa residents or people passing through the state can get their gambling fix. While online casinos and poker remain illegal in The Hawkeye State, social casinos are still widely available in the state.

Most recent updates from the IA sports betting scene

• April 27, 2024: Over two dozen of the students who were involved in the Iowa and Iowa State sports betting scandal have filed a federal lawsuit. These students believe their rights were violated.

• April 15, 2024: Former Iowa Hawkeyes megastar Catilin Clark has been selected first overall in the 2024 WNBA Draft to the Indiana Fever. She is currently (-700) to win Rookie of the Year and (-280) to lead the Fever in scoring.

• March 1, 2024: Criminal charges against four of the Iowa State student-athletes involved in the NCAA sports betting scandal have been dropped.

• February 6, 2024: Fanatics Sportsbook has officially launched in the state of Iowa.

• December 12, 2023: In November, Iowa sees a significant increase in sports betting with $289.7 million in wagers, marking a 17.1% rise from the previous year. This is the highest monthly total since January 2022 and a 13.5% increase compared to October 2023. Online operators accounted for $265.8 million of the total bets, while retail sportsbooks contributed $23.9 million.

• September 6, 2023: Five current or former Iowa State athletes plead guilty to underage gambling as part of a state investigation into sports betting. They accepted reduced charges, dropping the original records tampering charge, and each received a $645 fine without further criminal action.

In-person sports betting sites and locations

Gambling was already prevalent in Iowa well before the passing of the state’s sports betting law in May 2019. Many casinos had been staples in cities all across the Hawkeye State, but once sports betting became legalized, they could expand their business to reach a wider audience by partnering with online sportsbooks.

With well over a dozen casinos active in the state, online sportsbooks had their fair share of options to choose from when it came to finding a retail partner. In terms of consistent success with sports betting revenue production, the Diamond Jo Casino in Dubuque and the Wild Rose Casinos have been some of the biggest contributors to the state's monthly numbers in terms of handle and revenue.

Sports betting in neighboring states

IIowa is surrounded by states that have both retail and mobile betting legal to nothing legal at all. If making a trip over state lines, Iowa residents could end up in a state like Illinois, where there are a ton of sports betting operators and casinos that are active, or they could end up in Minnesota, where local tribes have continued to fight against any sort of sports betting legislation.

By clicking on the respective states down below, you can read more about what each state currently has or doesn’t have to offer when it comes to sports betting.

Sports betting revenue impact on Iowa's economy

The sheer volume of operators and retail locations in Iowa has allowed the state to continually churn out substantial monthly and yearly numbers for handle, revenue, and tax income. In 2024, the Hawkeye State recently lost its streak of three consecutive months with a handle of at least $220 million.

Regarding licenses and taxes, Iowa goes pretty easy on operators compared to other states. The fee to obtain a license is $45,000, and the tax rate for both online and retail sports betting is 6.75%. Only two states in the U.S. currently have an equal or lower tax rate than Iowa.

Since the state still has plenty of licenses to be applied for on what could be considered a discount for a licensing fee compared to other states, there is a real possibility that the state gambling market will get even bigger. With that, Iowa could cement itself as one of the highest-earning states monthly in the post-PASPA era.

Top 3 sportsbooks in the state in April 2024 (Retail + Online):

1. DraftKings: Handle: $73.1m, Revenue: $6.2m

2. FanDuel: Handle: $57.4m, Revenue: $5.8m

3. Caesars Sportsbook: Handle: $20.6m, Revenue: $934,300

Iowa sports betting record months:

1. Sports betting handle: November 2023 ($289,698,466)

2. Revenue: December 2023 ($26,286,446)

3. Tax income: December 2023 ($1,774,335)

IA sports betting revenue in 2024