The state agency found that the operator allowed bets not permitted under Iowa law and failed to maintain proper responsible gaming tools. FanDuel has agreed to pay the full amount and to take steps to fix the issues.
Details of the Violations
The Iowa Racing and Gaming Commission identified five separate problems in FanDuel’s operations over the past year. These included accepting bets on events that are not legal under Iowa rules, such as the Super Bowl, certain soccer matches, and golf contests.
One small violation involved only $330 in wagers. Another was caught and voided before any money changed hands. However, more serious issues included about $89,000 in golf bets and $62,000 in Olympic wagers placed when those markets were not approved.
The most significant single penalty $30,000, was for failing to provide working responsible gaming options. Regulators noted that customers could not easily access self-exclusion tools or deposit limits when they needed them.
Commission Chair Daryle Olsen said having multiple failures in a short span undermines the fairness of the market. He added that FanDuel, as the second-largest online sportsbook in Iowa, must meet the same standards as brick‑and‑mortar casinos.
“We expect our out‑of‑state providers to comply just as fully as local operators,”
Olsen said, stressing that consistent enforcement helps protect Iowans.
FanDuel’s Response and Next Steps
FanDuel Iowa spokesman Ben Roth appeared before the Commission and took full responsibility for the lapses. He said the company has already begun to remediate each issue. Steps include:
- Increased training for staff who manage market approvals and site updates
- More detailed checklists and runbooks to guide when new betting options go live
- Adding automated checks to reduce human error
Roth also noted that FanDuel refunded any bettors who were affected by unapproved offerings and has “disgorged” any revenue earned through these mistakes. He said the company values Iowa’s market and wants to ensure it matches the high standards set by the Commission.
Looking ahead, the Commission will review FanDuel’s progress at future meetings. Olsen emphasized that repeat violations could lead to steeper fines or other penalties. For now, the state’s goal is to ensure the platform is safe, fair, and fully compliant.
