Iowa Sports Betting Might Reach $5 Billion in Value
Iowa sports betting could be worth almost $5 billion according to analysts from PlayIA.com, which is part of the PlayUSA.com network. A few physical sportsbooks and sportsbook websites are expected to launch this month. The launching of these bookmakers will make Iowa the 11th state that will legally accept bets on sports. The sports gambling industry is expected to pump millions into the state’s purse.
Dustin Gouker, lead analyst from PLayIA.com, told the press that once the sports betting market in Iowa matures the state could see tax revenue worth millions. Gouker, further said that the Iowa sports gambling market could be on par with the Nevada market.
Analysts at PlayIA.com said that it would take a period of five years for the sports gambling industry to reach maturity and rake in multi-billion figures. This analysis is based in the fact that Nevada and Iowa have the same number of people residing in the two states. So, based on the Nevada success, analysts think that Iowa will have the same success. The analysis further showed that gambling operators were likely to receive $300 million annually in winnings.
Tax Rate of Iowa Sports Betting is Favourable to State Revenue
Gouker further estimated that due to the tax rate of 6.75% the state’s revenue could increase by $20 million in profits every year. However, the tax revenue is dependent on bookmakers making $300 million a year.
One of the issues that could prevent Iowa from receiving this amount of revenue would be the requirement of sports bettors to show up in person at retail sportsbooks. The analysts believe that this rule will slow the movement of the industry slightly.
The analysis of the Iowa sports betting industry show that once the requirement for sports bettors to physically show up at sports betting operations ends, the industry will grow. This rule is expected to end in 2021.
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