The Iowa House cleared a bill Thursday that includes provisions to prohibit the use of credit cards for the act of legal online/mobile sports wagering.
House File 2623 cleared the chamber by a 95-2 vote. It moves for consideration to the Senate, where the proposal originated and is likely to have support.
The bill was amended to include the provisions for the credit card prohibition.
“If you want you lose your paycheck, that’s fine. I don’t know how long you get away with that from your family, but with a credit card, you can run a debt that can’t possibly be paid and so I thank the body for clarifying that,” state Sen. Tony Bisignano told Radio Iowa. “We never did legalize it, but it got to be interpreted by fantasy sports that they have been using credit cards, and this body has spoken.”
Iowa reportedly doesn’t allow credit cards for other forms of gambling.
It’s unclear how meaningful the restriction will be.
This is a false flag anyway. The major credit card companies have never allowed their cards to be used for legal online gambling anyway. Even if you find a way to make it work, they typically flag and suspend your account.
— Captain Jack Andrews (@capjack2000) June 5, 2020
State of the market
Since Iowa launched sports betting in August 2019, the state has seen nearly $350 million in sports betting handle. Sportsbooks have won about $24.5 million during that span, paying more than $1.7 million in taxes.
Iowa’s market has been held back by an in-person registration requirement, but it will expire in 2021.
With casinos closing in March due to the COVID-19 crisis, preventing sportsbooks from acquiring new customers, they have been especially hurt by that requirement.
Though Iowa was an early adopter of legal sports wagering, which included an extremely industry-friendly tax rate of 6.75%, the state has in some ways been cautious on the new form of gambling. This week, regulators declined to allow traditional sports wagering on eSports.
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