Iowa fantasy sports players could legally claim prizes and cash payouts under a bill establishing a state regulatory framework for games that was advanced Wednesday by an Iowa Senate subcommittee.
The measure would require Internet fantasy sports providers to be licensed in Iowa and regulated by the Iowa Racing and Gaming Commission. The games would be subject to state taxes of 7.5% of adjusted gross revenues.
Thousands of Iowans play fantasy sports, drafting teams of real-world college and professional athletes, and based on statistics from real contests, win or lose against others in their league or game. It is a reportedly $1 billion annual industry, and more than 56 million players compete in the United States and Canada alone. However, Iowa is among a handful of states where cash payouts are either illegal or subject to ambiguous laws, according to industry officials.