- In six months, sports betting in Iowa has made over $22 million in revenue which is a far cry from original estimates.
- A new poll taken in the Hawkeye State showed that over half of Iowans are in favor of gambling on sports matchups.
- DraftKings has now entered the market and will hopefully give the boost in revenue the state is looking for when it comes to wagering on sports.
DES MOINES, Iowa – A poll taken by the Des Moines Register/Mediacom on sports betting legalization in Iowa showed that 59% of the 800 polled were in favor of the legislation. In May 2019, gambling on sporting events became a legal activity when Governor Kim Reynolds made it the law.
From March 2-5, the poll was done by phone using residents over the age of 18 and their opinions.
Sports Betting In Iowa
The poll not only showed that 59% of the state was in favor of sports betting, it then broke it down by age group. The group of those surveyed that were 45 or younger had a 74% approval rate of the law. Those that were 45 and over had a much lower approval rating of 47% for gambling on sports.
Despite the overall majority of residents within the poll backing legal sports betting in the state, the revenue numbers show otherwise.
Iowa has one of the lower tax rates on revenue from gambling on sports matches, set at 6.75% a month. This has led the state to collect a minimal amount of revenue in the last six months from what is typically a very lucrative market worldwide.
Iowa is not a huge tourist destination and it isn’t home to a number of college and professional teams like that of other states, all of which can hinder their capitalization of the market. That coupled with almost half of the people in the state that were polled not supporting sports betting has made it hard to gain the revenue lawmakers expected to gain when the activity first became legal.
The sports betting market in Iowa needs a boost to become profitable. The entrance of DraftKings might be able to help with that. The total revenue in six months’ time has been $22,516,168. It could be much better when compared to annual estimates going beyond $300 million when the activity first became legal.
While the numbers have been low, DraftKings Sportsbook has just entered the Hawkeye State. Based on revenue numbers in other state, DraftKings is arguably the most popular platform in those sports betting markets which could allow their presence to help boost Iowa’s revenue immensely.
The only catch is the in-person registration at one of the Wild Rose Casino locations which is required by Iowa law to activate an online account.
Christina has been writing for as long as she can remember and does dedicated research on the newly regulated sports betting market. She comes from a family of sports lovers that engage in friendly bets from time to time. During the winter months, you can find Christina baking cookies and beating the entire staff at Mario Kart…the N64 version of course.