Iowa Bill Could Criminalize Proxy Betting and Account Sharing

Iowa lawmakers are advancing legislation to criminalize proxy betting and sportsbook account sharing. Senate Study Bill 1097 (SSB 1097) and House Study Bill 21 would formalize these bans under state law, allowing law enforcement to prosecute violators.

Strengthening Iowa's Sports Betting Laws

The Iowa Department of Public Safety argues the bill modernizes state laws and ensures compliance. Proxy betting involves placing bets for another person to conceal their identity, while account sharing allows multiple users to access one betting account fraudulently. Both practices are already banned under administrative regulations, but this legislation adds criminal penalties.

Violators could face serious misdemeanor charges, with fines starting at $430 and up to a year in jail. Larger offenses may lead to felony charges, carrying sentences of up to 10 years and fines exceeding $13,000.

Debate Among Lawmakers

The Senate Judiciary Committee has approved the bill for further consideration. Supporters, like Sen. Dan Dawson, argue it reinforces the integrity of Iowa's sports betting market. However, Sen. Janet Petersen believes sportsbooks should be responsible for security rather than punishing individual bettors. She also questions law enforcement's ability to enforce the law effectively.

Impact on Iowa's Betting Industry

Since legalizing sports betting in 2019, Iowa's market has grown significantly, with $2.8 billion wagered in 2024. Concerns over proxy betting surged after a 2023 college sports betting scandal involving student-athletes. The bill also aims to curb underground betting networks by criminalizing unauthorised wager transfers.