NBA opposes Iowa sports betting bill

The NBA is lobbying against a new sports betting bill in Iowa that does not contain the so-called 1% integrity fee the NBA has proposed.

The bill was lodged Tuesday in the Iowa House and gives the state’s Racing and Gaming Commission the power to regulate ADW sports betting, with bets able to be placed at a casino, by telephone and “other electronic means.”

Crucially the effective tax rate comes in at around 8%, and does not include the 1% fee on turnover that the NBA publicly called for in the New York Senate last week.

And according to state lobbyist declarations, lobbyists employed by the NBA and MLB are against the bill, suggesting the leagues are willing to back sports betting bills that give them a cut of action, and oppose those which don’t.

Steve Brubaker, a fantasy sports lobbyist, noted he hadn’t seen this kind of opposition for the leagues before, but Iowa was one of the few states that publicizes lobbyist positions.

Bookmakers have labeled the proposed integrity fee unworkable, with it equating to approximately 20% of revenues.

Of course the lobbying in New York and Iowa could be negotiating tactics from the pro leagues, with a 0.25% cut of turnover a more reasonable figure to pay, according to bookmakers.

Cedar Rapids Mayor Ron Cobett, who is running for Iowa governor, has previously said the state could raise $13-24m annually from sports betting.

Representative Ken Rizer, who was part of the subcommittee that introduced the bill described it as a “blank canvas.”

“We don’t have clear guidance on where Iowans want to go with this,” said Rizer, adding that he hoped the bill would drive the discussion around sports betting.

Iowa is one of the five states where DFS is explicitly banned.