Iowa lawmakers are contemplating laws that may criminalize proxy betting and sportsbook account sharing, bringing new penalties to people who have interaction in these actions. Companion payments, Senate Examine Invoice 1097 (SSB 1097) and Home Examine Invoice 21, would formally make these practices unlawful beneath Iowa legislation, reinforcing current administrative rules that already prohibit them.
The Iowa Division of Public Security, which launched the invoice (pdf), argues that the adjustments are essential to modernize Iowa’s sports activities betting legal guidelines and guarantee compliance. The invoice defines account sharing as an settlement between two or extra people to share entry to a betting account to hide an individual’s id, both quickly or completely. Proxy betting is described as any wagering exercise the place one particular person locations a wager on behalf of one other with the intent to cover the precise bettor’s id.
Whereas account sharing and proxy betting are already banned beneath Iowa’s current administrative code, the proposed laws would enable legislation enforcement to prosecute people for violating these guidelines. The invoice explicitly provides each phrases to the state’s authorized definition of unlawful gaming, making violations punishable beneath Iowa Code part 725.7.
Beneath the proposed adjustments, people discovered responsible of partaking in unlawful playing by way of proxy betting or account sharing would face a spread of penalties relying on the quantity wagered. Smaller offenses might lead to severe misdemeanor costs, carrying a minimal advantageous of $430 and as much as one yr in confinement. Extra important offenses could possibly be categorized as a Class D felony, which is punishable by as much as 5 years in jail and a minimal advantageous of $1,025. In circumstances the place bigger sums are concerned, violators could possibly be charged with a Class C felony, resulting in potential imprisonment for as much as 10 years and fines between $1,370 and $13,660.
Legislative Debate and Lawmaker Reactions
The Senate Judiciary Committee has already authorised SSB 1097 for additional consideration, and the invoice is predicted to be renumbered as Senate File 395 because it strikes ahead within the legislative course of. Nevertheless, lawmakers stay divided on the need and effectiveness of the invoice, in response to a report revealed by Des Moines Register.
Sen. Dan Dawson, R-Council Bluffs, who chaired a subcommittee listening to on the laws, emphasised that enforcement is essential for sustaining the integrity of Iowa’s sports activities betting legal guidelines. He said that if sports activities betting stays authorized within the state, authorities should make sure that current legal guidelines are successfully enforced fairly than relying solely on operators to stop unauthorized exercise.
Conversely, Sen. Janet Petersen, D-Des Moines, opposed the measure, arguing that it locations the burden completely on particular person bettors fairly than sportsbook operators, which she believes must be liable for enhancing safety measures to stop account sharing and proxy betting. Petersen additionally raised considerations about how the state’s Division of Legal Investigation (DCI) would examine these offenses, questioning whether or not legislation enforcement had the required sources to implement the legislation successfully.
Influence on Iowa’s Sports activities Betting Market
Iowa legalized sports activities betting in 2019, permitting residents aged 21 and older to put bets on fantasy sports activities, skilled leagues, and faculty sports activities by way of licensed operators resembling FanDuel and DraftKings. Since then, the market has skilled regular development, with over $2.8 billion wagered in 2024, reflecting a 14% improve in comparison with the earlier yr, in response to the Iowa Racing and Gaming Fee.
Considerations over proxy betting and account sharing have been heightened following the 2023 faculty sports activities betting scandal, which led to an investigation into greater than two dozen student-athletes on the College of Iowa and Iowa State College. The probe discovered that 35 athletes from varied sports activities—together with soccer, basketball, baseball, and wrestling—had engaged in unlawful betting, together with wagering on their very own groups. Though costs have been dropped attributable to warrant points, a number of athletes misplaced their NCAA eligibility in consequence.
In response to this controversy, members of the Iowa Racing and Gaming Fee beforehand expressed the necessity for rule adjustments to strengthen enforcement towards unlawful betting practices. The proposed laws aligns with these considerations by offering legislation enforcement with clearer authority to cost people concerned in proxy betting and account sharing.
The invoice additionally criminalizes the switch of something of worth for putting wagers in a parimutuel pool or another licensed wagering system if the transaction happens outdoors of an official playing venue. This provision is meant to curb underground betting networks which will try and bypass regulated sportsbooks.
