Online Gambling License in Iowa

The Iowa Racing and Gaming Commission (IRGC) is a 5-member regulatory body that oversees race betting, fantasy sports contests, and gambling operations in the state. The IRGC was established with the Pari-Mutuel Wagering Act in May of 1983, which outlines the members, responsibilities, and main duties of the Commission.  

According to the PMWA, the Commission comprises five members, all appointed by the governor and confirmed by the Iowa Senate. They have a 3-year term in which they must enact the IRGC’s mission – to enforce the laws and rules for the wagering industry and ensure responsible gaming practices.

According to the current legislation, specifically the Iowa Code Chapters 99D, 99E, and 99F, the Commission has full jurisdiction over all race betting, DFS, and gambling operations. In addition to the members, the Commission appoints an Administrator for a 4-year term. The administrator is responsible for the Commission’s daily operations.

Types of Gambling in Iowa

The Iowa Racing and Gaming Commission regulates several types of gambling.

Retail and Online Sports Betting

Since 2019, Iowans can place sports bets in person at land-based casinos and licensed online sportsbooks. The act legalizing sports betting set up the IRGC’s responsibility to issue licenses to sports books and regulate their operations.

The applicants for a sports wagering license must fulfill a list of requirements and pay the corresponding fees to be able to operate and offer sports betting services legally. Regulated in the Iowa Administrative Rule 13.3, the IRGC has a full list of approved bets. If a bet is not on the list, the operator must obtain explicit approval from the Commission after submitting it for investigation and review.

Currently, the list of approved bets includes money lines, point spreads, total, futures, head-to-heads, points-betting, team and player props, 3-way bets, and a handful of others. Some of these are only allowed for match play and team events. Player proposition and head-to-head bets don’t include placing a wager on the performance of individuals as per Iowa Code 99F.1(29). Proposition bets for individual athletes from college are explicitly forbidden.

Another relevant license to the sports wagering license is the Advance Deposit Wagering Operator license. With this license, the Commission gives the right to operators to offer services to individuals that entail opening an account, depositing money into the account, and using the money to fund pari-mutuel wagering. These activities must be done at licensed racetracks and online operators with the relevant licenses.

Daily Fantasy Sports (DFS)

As of 2019, with the SF 617 Act, daily fantasy sports betting is legal and allowed in the State of Iowa. Participants must be over the age of 21 to be able to make fantasy sports bets. Winnings from DFS are considered taxable income. Winnings over $600 are taxable through the 1099-MISC tax form. Players must report their winnings on their federal and state tax returns.

Operators, on the other hand, must fulfill a list of requirements to ensure that DFS activities are fair, transparent, and in accordance with state laws. You can find the complete list of license requirements in Section 99E.5 of the act. Operators must receive individual authorization and licensing from the IRGC to offer these services. Licensees need to pay an annual fee and follow all rules. The IRGC conducts random audits to ensure compliance.

To apply for a license, the operators must provide business information: company structure, leadership, financial data, and history of operations. They must also offer responsible gambling tools such as self-exclusion options, deposit limits, and clearly visible resources for problem gambling issues. Iowan DFS operators are also subject to a 6.75% state tax on revenues, which they sometimes pass on to players.

Racetracks

IRGC has complete oversight over horse and greyhound races. It enforces rules to maintain a certain quality of racetrack conditions, qualification of participants, and above all – animal welfare. Iowa allows pari-mutuel wagering, and the IRGC oversees whether the operations are conducted fairly. It also collects taxes based on the wagering revenues. Further, the tax revenue must be allocated to fund state and welfare programs.

Amongst the responsibilities of the Commission here, the main one is overseeing the wagering process and ensuring animal welfare (including testing for performance-enhancing drugs on animals). The full list of responsibilities and license requirements for Racetrack operators is in IAC Chapter 10.

Riverboats

Before 2007, riverboat casinos operated strictly on water. Legal changes then allowed them to dock permanently while keeping the “riverboat” name. They now function like land-based casinos and offer all Class III gaming, similar to other commercial casinos.

The IGRC oversees their operation and ensures compliance with state laws. The riverboat casinos are obligated to send financial reports and adhere to all rules for anti-money laundering gaming operation requirements. 

The application fee is $5 million if the population of the county of the licensee’s operation is 15.000 or less and $10 million if the population is higher than 15.000. If the population is over 100.000, the application fee is $20 million. The annual license fee for riverboats is set at $5 per person.

Regulatory Framework of the Iowa Racing and Gaming Commission

The Iowa Administrative Code (IAC 491) outlines how the Iowa Racing and Gaming Commission (IRGC) operates. Chapter 1 explains the Commission’s structure, its members, their terms, and background requirements. It also describes application forms, gaming integrity, economic impact, and safe operations.

Chapters 2 and 3 cover how rules are made, including taking public suggestions, analyzing submissions, voting on new rules, and sharing information.

Chapter 5 provides rules for track betting, casino boats, and gambling structures. Greyhound racing is regulated in Chapter 7, while Chapter 10 covers Thoroughbred and Quarter Horse racing. Rules for gambling games are in Chapter 11, and Chapters 13 and 14 contain specific information on Sports Wagering and Fantasy Sports Contests.

FAQs about Online Gambling License in Iowa