American Wagering, which conducts business as Caesars Sportsbook, has been fined $60,000 by Iowa state regulators for allowing the illegal use of credit cards on its platform. The Racing and Gaming Commission of Iowa stated that there were a total of 485 illegal transactions, which totaled $212,000.
Iowa Does Not Permit the Use of Credit Cards for Any Type of Gambling Activity
Brian Ohorilko, a Racing and Gaming Commission administrator, commented on the event. He stated that a specific incident occurred in July 2021. This incident included the unveiling of several transactions which were conducted with a credit card. Ohorilko went on to say that a large number of those transactions were actually approved and they went through.
Additionally, Ohorilko noted that companies are making efforts to make sure that they do not allow credit card transactions. After all, Iowa’s rules state that bettors cannot use credit cards as a payment method.
The UK has the same approach in terms of depositing and withdrawing money at online gambling platforms. Even though credit cards were among the most commonly used payment methods in this country, the UKGC decided to ban them in April 2020.
Research by the Commission noted that around 800,000 people use credit cards to gamble and bet on sports. The alarming fact was that 22% of these gamblers were classed as problem gamblers. Hence, as a way to reduce gambling harm, the UKGC decided to ban them. Ireland had a similar approach in 2021, as well.
Ohorilko noted that if sportsbooks in Iowa fail to respect the rules, they will face the consequences. Apart from issuing fines, Ohorilko stated that Iowa’s commission can revoke/suspend licenses.
ClutchBet Was Approved by the Iowa Racing and Gaming Commission
ClutchBet, which is a newly-launched brand by BlueBet, was recently greenlit by the Iowa Racing and Gaming Commission. The regulator approved a mobile betting license and this marks the first state where the operator will go live with its “Capital Lite” market entry strategy.
Bill Richmond, the CEO of BlueBet, stated that the company is delighted to go live in the US. He added that this represents a “huge moment in BlueBet’s history” and that he’s happy to bring the ClutchBet brand to bettors in Iowa.
Richmond also commented on the Capital Lite strategy. He said that the launch in Iowa falls perfectly in line with this strategy. Apart from Iowa, the company gained access to Colorado, Indiana, and Louisiana. He stated that the second stage of the strategy is to secure B2B partners.
As a concluding note, Richmond thanked all parties that helped the ClutchBet brand launch in Iowa.