Iowa posted an impressive $100 million increase in sports betting handle in September. Sportsbook operators managed a 10.1% hold, resulting in a combined revenue of $27.4 million across all sportsbooks in the state. This, in turn, netted the state $1.8 million in tax revenue, which was nearly double the $1 million raised in August. The rise came as the football season matured and it saw DraftKings, one of the major operators in the state, reaching $100 million in handle.
Iowa has a varied approach to gambling regulation. While sports betting, including mobile sports betting, is legal and regulated, online casinos have yet to be regulated. Gamblers can still bet online, using offshore sites and crypto casinos like Lucky Block. Regulated offshore casinos offer private, secure betting opportunities, as well as access to a wide range of card, table, and slot games. And, thanks to the increased anonymity of cryptocurrency payments, they offer virtual anonymity.
For gamblers who only want to bet on sports, though, Iowa has many options available locally. Sports betting was legalized in Iowa in 2019. Initially, punters had to go to one of the state’s physical casinos to sign up for a mobile sportsbook, but the online sports betting market has been completely open since 2021 when players have been able to register entirely online. There are now more than 15 licensed sports books in the state, although DraftKings is the largest of these.
Since 2021, the sports betting market in Iowa has continued to grow, but it is seasonal and dependent largely on football and other major sporting seasons. September saw the return of the NFL and this helped push sportsbook revenue and handle upwards in the state. The NFL is the single biggest sports betting market across the country so its season is when most US sports books see increased revenue.
In September, Iowa saw a sports betting handle of $270.8 million, which is the total amount of money bet on sports. This was up more than 60% compared to August, showing the impact of the start of the football season. Sportsbooks held 10.1% of that money, which effectively means they won and retained $27.4 million. That hold was up from 9.4% in September which, when combined with the increased handle, led to tax revenue for the state of $1.8 million. Compared to the same month last year, handle was up 10.2%, which means that the market is increasing year on year, too.
DraftKings saw a handle of $108.4 million with revenue of $10.7 million, making it the biggest sportsbook in the state. The only other operator with a handle of more than $50 million was FanDuel, with $64.3 million and a $6.9 million revenue.
Although online casinos are not regulated in Iowa, physical casinos are. The state just saw a two-year moratorium on new casinos end in July. Since then, it has been announced that Linn County Gaming Association has partnered with Peninsula Pacific Entertainment and the pair have submitted plans to build a $250 million casino, called Cedar Crossing Casino, in downtown Cedar Rapids, the state’s second-biggest city. It is the second time the pair have submitted plans for a casino, having tried previously in 2022, but the moratorium brought an abrupt halt to those earlier plans.
The proposal is being pushed forward amidst fears that lawmakers might introduce another moratorium on new venues. Rep. Bobby Kaufmann, who has previously tabled several bills to try and get online casinos licensed in the state, is the man most likely to introduce that moratorium and has previously said that while he doesn’t have a problem with the idea of a casino in Cedar Rapids, he doesn’t want new casinos to cannibalize the existing casino industry in the state.
There will be a vote on February 6th to determine whether any new casino licenses will be granted or new casinos be built, so it is now a question of whether the Cedar Cross Casino plans can get pushed through and gain acceptance from the Iowa Racing & Gaming Commission, which is responsible for making decisions regarding new casinos, by that date.