In August last year, the State of Iowa brought out a new law that allowed the citizens to bet legally on the collegiate and professional sporting events. More than USD 400 million were wagered in the first year, which resulted in a remarkable gambling opportunity that resulted in a USD 30 million boost to the state-licensed casinos. It was a much-needed relief for the Iowa casinos as they were forced to shut down for 11 weeks and resulted in the closure of all kinds of athletic competitions.
The casino operators were thrilled when the legalized betting was introduced last year, and revenue climbed up in the first half of the year. However, everything went downhill when the Governor ordered all gambling parlors and other businesses to close down in March due to the COVID-19 pandemic.
The Coronavirus pandemic also forced major sports cancelation when college basketball and other betting sports were operating in full swing. The casinos’ revenue in Iowa dropped by as much as 20%, and the attendance was also the lowest since 1996. Although the sudden stoppage due to the pandemic was disappointing, the operators were pleased with the overall revenue.
After the legalization of sports betting in the state, the financial experts expected that sports wagering would generate USD 1.8 million in state tax revenue, and wagering activity would increase to USD 560 million. The state has come very close to the projected figures and would have reached the target had it not been for the sudden closure. The betting activity was moving at a monthly pace of USD 60 million per month and had already raked in USD 327 million in March. A requirement that has been put in place that has irked many people. For the first 18 months, it states that sports bettors must travel to a casino that has been licensed by the state to open an account. However, this rule has been created for the rural population in Iowa. The gambling commission believes that when this rule goes off on Jan 01, the wagering numbers would double and add to its coffer.
