Skip to main content

Sharp Drop in Sports Betting in Iowa in April

Perry Sandra

Updated as of May 11, 2023 at 2:41 PM EDT • Read time: 1 minute 45 seconds. Find more information on Twitter and Google News.

Caitlin Clark of the Iowa Hawkeyes reacts.
Caitlin Clark of the Iowa Hawkeyes reacts during a game against the Louisville Cardinals in the NCAA Women’s Basketball Tournament at Climate Pledge Arena in Seattle, Washington. Photo by Steph Chambers/Getty Images via AFP.

The start of the seasonal lull in legal sports betting has arrived, with Iowa showcasing the high standards that the nation’s top sportsbooks will maintain in April and beyond.

On Wednesday, the Iowa Racing and Gaming Commission published its April revenue report, which showed significant decreases in handle, revenue, hold rate, and tax contributions from betting sites to the state’s coffers compared to the previous month.

The Iowa Hawkeyes’ baseball team has been at the center of cheating allegations in the state’s legal sports betting scene this week. This potential scandal comes on the heels of a similar incident involving an Alabama university team that broke strict gambling regulations.

Eye-opening financials

The Iowa Racing and Gaming Commission is well aware of the potential slowdown in sports betting in Iowa. The decline in legal sports wagering in the state this year was sudden and significant for Iowa’s top betting sites.

In April, Iowa sportsbooks saw a decrease in bets with a total of $172.5 million, down 25.8% from March’s $232.6 million. This amount was also slightly lower than the $177.4 million wagered in April 2022, with a difference of about $5 million.

Drop in revenues

In April, Iowa’s legal sports betting revenues took a dive, following a decrease in the state’s handle. Gross gaming revenues for the month totaled $14.1 million, marking a significant 28.8% drop from the $19.9 million generated in March. The hold rate for Iowa sports betting providers also decreased, coming in at 8.2% in April compared to 8.5% in the previous month.

In comparison to last year, April revenues from the state’s wagering sector increased. Underscoreg profits totaled $12.4 million in April 2022, down from $14.1 million the previous month.

Taxes paid by sportsbooks to Iowa state and local coffers decreased from $1.29 million in March to $958,605 in April. In April 2022, only $836,881 in tax contributions were made by the state’s betting sites.

Scandal anyone?

Following the recent NCAA baseball betting scandal involving Alabama, a similar issue has now surfaced within the Iowa Buckeyes baseball program.

Earlier this week, the Iowa Racing and Gaming Commission announced that four players were dismissed for a “potential violation,” believed to be related to strict gambling regulations that players must follow.

More updates are expected on this developing story as no states or U.S. sportsbooks have taken Iowa Hawkeyes baseball off their betting boards.

Hopefully, the Iowa situation will not mirror the Alabama NCAA baseball scandal, where the coach was fired due to questionable ties with local bettors.

Written By:
Perry Sandra
Perry Sandra and betting go hand-in-hand. Both are characterized by “odds”. Dave fancies himself as one of the most dedicated sports and pop-culture junkies around, to the chagrin of his family and friends. Following sports for 50 years and writing about it for 20, Dave hasn’t found a sport yet that can’t contribute to 2-3 straight hours of couch time. That search remains ongoing. As a good old Canadian boy, hockey is in Dave’s heart, as is curling sadly. But evolution is a real thing and that’s why football, baseball, and just about every sport on the planet has become a passion. Dave isn’t afraid to kill some time obsessing over politics or the far-too-frequent awards shows the consume the airwaves.