19Mar

Online Gambling in Iowa

Countries around the globe are legalizing online gambling and sports betting. The reason why they are doing that is pretty simple to understand. For starters, a high level of demand comes from the local people. Online gambling is an entertaining activity that can potentially earn profit. Also, online gambling is one of the richest industries that can support the financial stability of the national economy.

Things were, are, and have always been confusing in the United States of America. Each state has different gambling laws. Because of that, tourists often get confused as they are not sure whether playing gambling games online is legal or not.

Well, this time, we are going to focus on Iowa. Iowa gambling laws appeared in 1983 for the first time. However, the law developed during that year only allowed certain forms of gambling. People could bet on dogs and horse racing only.

Things started to change during 1991. For the first time in Iowa history, the responsible authorities within the state approved the appearance of land-based gambling. Since then, things started to develop a lot, and people could find more and more casinos within the state. From 2011, the biggest fans of sports could also bet on different leagues and matches.

But, if you are a big fan of online sports betting, then you know something like that is hard to find in Iowa. More precisely, only a small number of Iowa online operators have gotten the license to legally operate within the state. However, guess what?! It seems that things are going to change in the future!

Iowa Is Expanding Online Gambling

Generally speaking, everything started to change in 2019. During that year, 18 commercial and tribal operators got the license from the responsible authorities that allows them to offer sports betting services. Despite that, there are dozens (or even hundreds) of online operators that could not afford to reach the same achievement.

For starters, it is worth mentioning that there are certain rules that all sports betting business owners need to meet. The first rule is probably the toughest one – the initial license will cost them 45 thousand dollars. However, the license costs do not end there. All the casino operators will need to reapply for the license every single year. Renewal of the license costs around 10 thousand dollars.

Despite that, one of the requirements is associated with the betting revenues. Everyone who manages to establish revenue will have to pay a fixed tax rate of 6.75%. It is a state rule and there are no excuses for that.

However, it seems that things are changing. Believe it or not, for the first time since online gambling exists within the state, the Iowa Gaming Association supports online gambling expansion.

This is not a rumor, as we would never share disinformation. Our source is the interview of the president of the organization Wes Ehercke. He said that online gambling expansion is going to happen sooner or later. However, he also suggests that there is no precise deadline for when something like that will happen. Most of the members of the Association support such an idea, but there are many things that the organization needs to work on before the law changes.

Logically, That Form of Expansion Will Affect Casinos and Sportsbooks

The taxes we talked about before are only relevant for sports betting operators that work online. However, they are also applicable for riverboat venues as well as land-based sportsbooks. But, in case the mentioned changes become a reality one day, the online gambling taxes will become way more regulated.

Because of that, the online gambling industry within the state will drastically change or improve. More regulated laws will ensure that the online gambling world experiences a big number of innovative solutions that will boost the gambling experience of each individual.

That change will positively affect the state’s economy that went through a tough period during the pandemic. With the existing laws (once that exist since 1991), Iowa has managed to earn more than 6 billion dollars from the gambling taxes.

Is There a Downside of the Expansion?

Unfortunately, the decline in revenue is expected in case the new law changes become a reality. The taxes will potentially become higher which will automatically reduce the income that brick-and-mortar venues have. But, this is only a prediction as no one precisely knows how the online gambling expansion will look. Despite that, the lawmakers are those that make the final decision, so we will let time pass to hear answers.

Bonus: Where is Online Gambling Legal in the USA?

As previously mentioned, people outside of the USA will probably consider gambling laws within the country strange. There is a set of rules determined a long time ago in one state, while in another one, the same rules do count at all.

Before we move to the states where online gambling is completely legal, it is worth mentioning that some regions are working on the legalization of this activity. Those states (discluding Iowa) are:

  • Nevada
  • New York
  • Massachusetts
  • Illinois
  • Connecticut
  • California
  • Indiana

Whether things will change in these states is something we are about to see in further years. However, in some states, online gambling is fully legalized. There are five of them:

  • New Jersey
  • Pennsylvania
  • Michigan
  • Delaware
  • West Virginia

New Jersey

In 2013, New Jersey became the first state that legalized online gambling. That is probably the main reason why most gambling platforms are located in this state. The lawmakers of the state realized that revenue from the gambling taxes would support the state economy a lot. That’s exactly what appended as the state budget gathered millions of dollars in the last nine years.

Pennsylvania

The responsible authority that regulates the gambling market is the Pennsylvania Gaming Control Board. Compared to New Jersey, there are no big differences – all the gambling games are allowed. However, it is worth mentioning that poker is extremely popular among residents of Pennsylvania.

Michigan

Michigan is one of the “youngest” states in the gambling world. In 2019, the governor of the state signed the so-called Lawful Internet Gaming Act that made mobile sports and online spots completely legal. People can also enjoy fantasy sports betting. The responsible authority that provides licenses to the most responsible operators is Michigan Gaming Control Board.

Delaware

Online gambling is completely legal within the state. However, there is a small exception – you can’t bet on sports online, while in-person betting is legal. However, there is a big chance something like that will change. The responsible authority is The Delaware Division of Gaming Enforcement.

West Virginia

The Act established in 2018 is the one that allowed companies that offer different gambling games to legally operate within the state. Today, the West Virginia Lottery is the regulator of the entire market and the responsible authority for licenses.