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Iowa became the 11th US state to launch regulated sports betting, with eight of the region’s 19 casinos debut on the first legalized day. The remaining casinos are expected to have fully operational sportsbooks in time for the beginning of the 2019 NFL season in the fall.
Compared with other states, Iowa has been very efficient in getting legal sports betting up and running. State legislators only approved their betting legislation in late April, and Gov. Kim Reynolds didn’t sign it into law until mid-May. The Hawkeye State is the fifth in the country to launch land-based and online betting in tandem. The Iowa Racing and Gaming Commission issues licences at $45,000 with the tax rate stipulated at 6.75 per cent.
Amongst those entering sports wagering in Iowa on its first day of operation are the Kambi powered Ameristar Casino Council Bluffs, as well as the Catfish Bend Casino which entered a multi-year agreement with PointsBet. William Hill US, the American arm of UK bookmaker William Hill, has secured four deals with Isle Bettendorf, Isle Waterloo, Lakeside and Prairie Meadows, while Bet.Works has partnered with Rhythm City and Riverside.
According to analysts at PlayIA.com, once the fledgeling industry in the Hawkeye State hits full maturity, state’s online and retail sportsbooks could generate more than $4bn a year in bets.
“Once the Iowa market reaches maturity, its potential is on par with what Nevada is today. That means a handle that will exceed $4bn a year, and perhaps approach $5bn. And as we have seen with the success of the early adopters of legal sports betting, such as New Jersey, the state should reap millions in tax revenue,” explained Dustin Gouker, lead analyst for PlayIA.com.
PlayIA estimates that it will take Iowa five years or more to reach full maturity. Once it happens, operators could generate more than $300m a year in revenue, and with a tax rate of 6.75 per cent, Iowa would generate more than $20m a year in tax revenue.
However, the opportunity to generate significant revenue could be limited in the early going, due in large part to a requirement that online bettors sign up in-person at a physical sportsbook until January 1, 2021, which it is believed will initially slow the industry’s growth. In New Jersey, where there is no such requirement, more than 80 per cent of all sports bets are made online.
Iowa’s entry follows Nevada, Delaware, New Jersey, Mississippi, West Virginia, New Mexico, Pennsylvania, Rhode Island, Arkansas and New York. The Hawkeye State is the first in the Midwest to launch legal wagering but it most definitely won’t be the last. Indiana’s gaming regulators plan its own expected launch in September, while their counterparts in Oregon are also pushing hard to make the kickoff of the upcoming NFL season.
