What's Happening?
Iowa's sports betting revenue for July 2025 reached $18 million, with a handle of $146.7 million. The state currently taxes sports betting at 6.75%, one of the lowest rates in the U.S., but this is set to increase to 9% in July 2026. A new bill will reshape revenue distribution, directing funds to public safety, racing oversight, and infrastructure, aligning Iowa closer to national tax averages.
Why It's Important?
The increase in sports betting tax rates and the new revenue distribution plan reflect Iowa's efforts to enhance public funding without disrupting the betting market. This change is significant for stakeholders, including operators and public programs, as it promises increased state collections and improved public services.
What's Next?
With the tax rate increase scheduled for 2026, Iowa is expected to see a shift in its sports betting market dynamics. The upcoming football season may boost monthly handle figures, further influencing revenue projections and market strategies.
