Lawmakers Propose Changes to Iowa Sportsbook Regulations

Across the US, nearly 40 states currently offer some form of legal sports betting. While the regulated sector benefits local communities and helps generate funds for different statewide programs, the expansion of wagering on sports raises concerns about the integrity of professional and collegiate competitions.

Professional leagues such as the NHL, NFL, NBA, MLB and NCAA currently prohibit individuals involved in the sport from participating in betting. This covers a wide range of people, including athletes, coaches, administrators, trainers and other personnel involved in sports.

Despite the measures of the leagues, Iowa is the single US state that has a rule that would require sportsbooks to keep lists of people who are prohibited from wagering on sports. The rule came together with the legalization of wagering back in 2019. However, lawmakers at the time decided to temporarily delay the implementation of the rule until early in 2025.

Now, efforts of lawmakers seek to remove the whole provision. Supporters of removing the requirement for sportsbooks to keep lists of coaches, athletes and other officials prohibited from wagering, say the provision is redundant as there are similar regulations established by professional and collegiate sports leagues.

According to Rep. Megan Jones of Sioux Rapids, who supports the removal of the provision, Iowa is currently the only US state that has such a requirement. She explained that legal sports wagering is available in 38 US states but only Iowa requires its sportsbooks to keep a list of people who cannot participate in the activity.

The Proposal Picks up Speed after Approval in the House

Jones criticized the provision, explaining that if implemented, sportsbooks would have significant difficulty in keeping such lists up to date. Considering that sports officials, coaches and athletes may change positions, it will be a significant challenge for the state’s retail and mobile sports betting operators to ensure they have the latest data about people who are not allowed to wager on sports.

Jones said that if a betting operator doesn’t collect and update this data on its own, it would need to hire a company to deal with that matter. Still, she added that keeping an accurate list of all sports-related officials would be “nearly impossible.”

A proposal that called to remove the unique rule, supported by Rep. Jones, successfully passed the House after a 92-1 vote. The resolution’s next stop is now in the Senate where it will seek further approval.