Iowa Sports Betting Revenue Hits New Heights in Recent Reports

7 min read
Dec 11, 2024, 6:09 PM

All About Iowa Sports Betting

Iowa sports betting launched in August 2019 after the legislation was passed earlier that year (Iowa Legislature, 2019).

The Hawkeye State was among the first to legalize sports betting after a 2018 Supreme Court ruling overturning the federal ban. Initially, bettors had to register in person at licensed casinos, but that was lifted in 2021 to make online betting more accessible.

Since its launch, Iowa’s sports betting market has grown, and 16 online sports betting operators have entered the space, offering many options for players. 

Now, bettors can make wagers in person, on desktop, or mobile betting apps, making it more convenient for consumers. The industry provides consistently rising tax revenue for Iowa, which goes towards funding state budgets, including the “Rebuild Iowa Infrastructure Fund, which provides important infrastructure projects.

Many areas are supported, including agricultural and land stewardship, public safety, economic development, public defense, state university buildings, technology projects, and more (Iowa Gaming and Racing Commission, 2023).

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Annual Sports Betting Growth in Iowa

Monthly Sports Betting Growth in Iowa

2023

Iowa Gross Gaming Revenue

Since legal sports betting launched in 2019, Iowa’s gross gaming revenue (GGR) has increased. In the first year, the state reported a GGR $19.3 million, a slow start with in-person registration requirements. By 2020, that number had more than doubled to $41.6 million, even with the COVID-19 pandemic disrupting events.

Removing the in-person registration requirement in 2021 really opened things up, and revenue soared to $125.5 million that year—a 201% increase over 2020. That trend continued in 2022, with GGR reaching $165.5 million and then again in 2023 to $198.8 million.

These numbers show that the market is maturing with more operators and mobile options and that Iowans are strongly interested in sports betting.

Latest Updates in Iowa Sports Wagering

  • May 13, 2019: Governor Kim Reynolds signs SF 617 into law, legalizing sports betting in Iowa. (Iowa Legislature, 2019)
  • August 15, 2019: The first legal sports bets are placed in Iowa. (DesMoines Register, 2019)
  • January 1, 2021: The in-person registration requirement for mobile betting is lifted, allowing remote sign-ups for users.
  • December 31, 2021: Iowans have placed more than $1 billion on sports bets for the first time in a single year. The state earns $11.1 million in tax revenue.
  • 2024: Iowa shows signs of significant growth late in the year. Its monthly handle in October ($294.9 million) is 15.5% higher than 2023. (Iowa Racing and Gaming Commission, 2024)

Iowa Sports Betting Market Performance

Below is a breakdown of the state’s performance from 2019 to 2023 based on Annual Reports of the Iowa Racing and Gaming Commission, 2024:

2019

Sports betting became legal in August, and Iowans bet $212.2 million in the last months of the year, generating $1.3 million in tax revenue for the state.

2020

Iowa's sports betting market is limited in its first full year due to the event cancellations caused by the COVID-19 pandemic. The state's sports betting handle is a relatively modest $575.2 million.

2021

The sports calendar is far more full than the previous year, and Iowans' ability to register for online sportsbooks from anywhere also causes betting activity to skyrocket. Sports betting handle jumps 257.01% to $2,053,708,513.00.

2022

The rise in sports betting handle (14.33%) is more modest than the previous year, with no significant regulation change. Tax revenue increases 31.9%, exceeding $10 million for the first time.

2023

Iowa's upward betting trajectory continues, but growth is modest in terms of total handle. That increased by 3.08%, but GGR and tax revenues went up 20.09%.

Online Sports Betting Revenue Key Highlights:

The Iowa sports betting handle increased more than 4x since the market’s first full year, a rise from $575.2 million in 2020 to $2.4 billion in 2023.

Iowa’s revenue growth demonstrates strong bettor engagement, with year-on-year increases of 31.90% in 2022 and 20.09% in 2023.

Tax revenue from sports betting has grown more than 10x since 2019, with revenues going to a variety of funds, including the Water Infrastructure Quality Fund and Iowa Skilled Worker & Job Creation Fund. (Iowa Racing and Gaming Commission, 2024)

Iowa's performance showcases the success of entering the sports betting market earlier than many other states. The tax revenue associated with legal gambling continues to grow, providing a useful income stream for the state budget.

Iowa Snapshot

Key AspectDetails
PopulationApproximately 3.2 million residents as of 2024. (World Population Review, 2024)
Political AffiliationPredominantly Republican, the state has a Republican trifecta, controlling the governorship and both legislative chambers. (270towin.com, 2024)
Year Sports Betting LegalizedPermitted from May 13, 2019. (Des Moines Register 2019)
Number of Sportsbooks Operating15 licensed operators, including market leaders like DraftKings, BetMGM, BetRivers, Hard Rock Bet, FanDuel, and Caesars.
Gross Gaming Revenue (GGR) 2023$198,810,523.00
Sports Betting Handle 2023$2,420,464,385.00
Professional Sports TeamsIowa does not have professional teams. However, sports fans in Iowa enjoy local NCAA teams and nearby American football franchises like the Minnesota Vikings, Green Bay Packers, and Chicago Bears.

FAQs on Iowa Sports Betting Revenue

Basic Info

When was sports betting permitted in Iowa?

Sports betting in the Iowa market was permitted beginning on May 13, 2019.

How many sportsbooks operate in Iowa?

There are 17 licensed Iowa sportsbooks: Caesars, BallyBet, FanDuel, Betfred, BetMGM, Circa Sports, DraftKings, Betway, Q Sportsbook, bet365, ESPN Bet, Fanatics Sportsbook, BetRivers, Superbook, Hard Rock Sportsbook, Daily Racing Form, and Sporttrade.

What is covered on this page?

This page provides a breakdown of Iowa's betting market, including handle, revenues, and operator updates, all backed by official reports. (Iowa Racing and Gaming Commission, 2024)

Market Statistics

What was Iowa’s total sports wagering handle in 2023?

According to Iowa Racing and Gaming Commission reports, the state reported a wagering handle of $2,420,464,385.00 in 2023.

How much revenue was generated in 2023?

Iowa’s GGR in 2023 exceeded $198.8 million with more than $13 million collected in taxes.