One of the most significant violations involved Twin Spires, which failed to properly restrict individuals who had self-excluded from gambling. The company self-reported the issue, revealing that
“seven individuals were sent 343 promotional offers after they had self-excluded,”
according to IRGC administrator Tina Eick. Meanwhile, Penn Sports Interactive faced a $40,000 fine for offering prohibited wagers on NCAA and NAIA basketball games and for marketing to self-excluded individuals.
To further tighten regulations, Iowa lawmakers are considering new legislation that would make sports betting violations explicitly illegal under state law. Senate Study Bill 1097 and House Study Bill 21 aim to criminalize proxy betting and account sharing, which are already prohibited by administrative code but lack legal enforcement.
“If sports betting is going to remain legal in Iowa, then rules have to meet the letter of the law,”
said Sen. Dan Dawson, a key proponent of the bill. Opponents, like Sen. Janet Petersen, argue that enforcement should target operators rather than individual bettors, criticizing the lack of preventative measures from betting companies.
The move for stricter oversight follows a scandal in 2023 where over two dozen student-athletes from Iowa and Iowa State were investigated for illegal betting. Although most athletes took plea deals, the case raised concerns about how state investigators handled the situation, prompting calls for clearer legal definitions and oversight mechanisms.
A Betting Boom: Record-Setting Wagers in 2024
Despite regulatory hurdles, the Iowa sports betting market is thriving. The state saw a record-setting $2.8 billion in wagers in 2024, a 14% increase from 2023. This surge has been attributed in large part to what analysts call the
“Caitlin Clark effect.”
Clark’s meteoric rise in women’s basketball, culminating in an NCAA National Championship appearance and a WNBA Rookie of the Year campaign, spurred an unprecedented betting frenzy.
Covers.com reported that Iowa’s sports betting handle increased by an average of 18% from November 2023 to September 2024, with growth rates peaking between May and August as Clark’s Indiana Fever played through the WNBA season.
The impact was seen beyond Iowa as well. ESPN BET Iowa reported that 20% of all its WNBA wagers in 2024 involved Clark’s team, while BetMGM Iowa saw a 108% increase in WNBA betting. The Fever’s playoff game against the Connecticut Sun became the most-watched WNBA postseason game ever on ESPN platforms, further solidifying Clark’s influence on the industry.
Iowa’s dual reality — unparalleled market growth alongside mounting regulatory concerns — highlights the complexities of modern sports betting. While the industry’s revenue potential continues to soar, the state is making it clear that compliance and consumer protections cannot be overlooked. As Iowa tightens its grip on enforcement, it remains to be seen whether these measures will enhance the market’s integrity or stifle its momentum.
