A proposed sports betting rule in Iowa that would mandate casinos to keep lists of coaches, athletes, and other officials has been put on pause by a legislative panel.
Those working in college sports and fantasy games would be banned from making sports wagers. Iowa betting was legalized in 2019 and the new rule would have stood out in the industry. Sportsbooks regularly play a role in detecting unusual betting trends and there have even been instances of athletes and coaches detected gambling by operators. But having casinos keeping lists of those who are involved with the industry and games on the field would be an outlier among legalized states.
“There are 38 states that participate in sports gaming, but Iowa is the first one to request or require this list and so we’re sort of on the forefront here, and I’m not sure these are waters we’re prepared to go through,” state Rep. Megan Jones (R) told Radio Iowa.
Burden on Casinos
Iowa has seen its own share of sports betting controversies involving athletes. In 2023, law enforcement alleged 16 current and former Iowa and Iowa State athletes and other people were involved with placing illegal bets. Some are alleged to have even wagered on games they played in.
Eyioma Uwazurike, a former Iowa State football player who was drafted by the Denver Broncos in 2022, and Paniro Johnson, a current Iowa State wrestler, were among the group and charged with felony identity theft. Both face up to five years in jail and have pleaded not guilty.
Police allege Johnson made 1,300 bets of more than $45,000. Uwazurike was suspended by the league and authorities say he made 800 bets totaling $21,000 in 2021-22, including twice on his own team. The two men face the most serious charges while some of the other athletes could also be disciplined by the NCAA.
While Iowa lawmakers have hoped the new rule would help prevent similar scenarios, many believe the plan puts an unnecessary burden on the legal casinos in Iowa. Creating the list or receiving this type of information could be a cumbersome process and legislators felt the rule wouldn’t be fair as keeping an updated, comprehensive list would be difficult.
“What is problematic in this set of rules is that casinos are required to maintain a list of athletes, athletic trainers, coaches, and other affiliated persons or they can buy a subscription from a company that purports to do the same,” Jones said. “However, there’s only one entity that’s really doing this and their list, for instance, does not include the University of Iowa.”
The Administrative Rules Review Committee has paused the rule until spring 2025, but the state house voted 92-1 to reject the rule. The state senate will also now consider taking action.
