Sports Gambling Debt Collection Delayed by Iowa Panel
A delay of debt collection from sports gambling winnings was voted into practice on Monday by the Iowa Legislative Panel. This delay is in line with the sports gambling rule that permits the state to collect the winnings of sports gamblers who owe taxes, child support or have criminal debt.
Iowa is amongst three states in the United States that is planning to take a portion of gamblers’ winning over unpaid child support. Other states include Indiana and Maine, but they have not implemented this regulation as yet. Iowa sports gamblers are expected to start placing bets on Thursday.
The sports betting rules in Iowa permitted casinos in the state to request Social Security numbers of sports gamblers. The number can only be requested if the sports gambler has won $1,200. Casinos can also check the names of winners on their database against the social security numbers given.
The amount of $1,200 is a federal threshold which requires gamblers to report their winnings for tax purposes. For the past decade, the state of Iowa has checked the database to see whether slot winners have reneged on paying taxes.
The State of Iowa has received $34 million in slots Winnings Debt Collection
So far, Iowa has collected $34 million from players who have won playing slots. This is according to the president of the Iowa Gaming Association, Wes Ehrecke. The federal law does not require sports bettors to submit their Social Security number unless they have won $600 or more.
The debt collection delay by the Iowa panel comes as a relief for casinos because they would have been put in the awkward position because there is no legal obligation to disclose to the casino. Ehrecke further told the media that the Iowa Gaming Association would propose a bill in 2020 that will be aligned with the federal tax requirements. The bill is also most likely to include table games, such as blackjack and roulette, which means debt collection will be on more gambling winnings.
There were a few panellists in the committee that did not agree with the delay of the debt collection. The opposers included Senator Rob Hogg stating that people who owe taxes and child supports should pay immediately without delay.
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