Iowa Daily Fantasy Sports

Iowa daily fantasy sports sites are legal, licensed, and open to players 21 or older. Prominent fantasy sports operators like FanDuel and DraftKings blocked access to Iowa residents for years, but they are now open for business in the Hawkeye State.

The Iowa Racing and Gaming Commission regulates daily fantasy sports, issues licenses to operators, and adopts additional rules as needed to protect consumers.

Iowa regulates daily fantasy sports with a heavy hand, which has limited the number of operators willing to apply for licenses. However, the upside for sports fans is that they can play daily fantasy online with confidence that they’ll be treated fairly and receive prompt payouts.

Iowa Daily Fantasy Sports Sites

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Only two fantasy sports operators have received Iowa DFS licenses to date, but both are industry leaders and boast the nation’s largest real-money contests:

Recommended Iowa Fantasy Sites
FanDuel Daily Fantasy Sports Iowa
DraftKings Daily Fantasy Sports Iowa

FanDuel and DraftKings are the nation’s two largest daily fantasy sites and boast the industry’s largest DFS prize pools. Both operators also offer legal online sports betting in Iowa through a single customer account at each.

Licensed Iowa fantasy sports sites undergo a demanding application process when applying for licenses, much of it geared toward verifying that every operator can protect the integrity of DFS contests and treat customers fairly.

Fans can visit the Iowa Racing and Gaming Commission’s website to operators’ daily fantasy licenses.

Iowa Fantasy Sports Law

and regulate daily fantasy sports in Iowa.

State law places the Iowa Racing & Gaming Commission () in charge of overseeing sports betting and daily fantasy sports and issuing licenses. DFS operators must apply for licenses from the IRGC and restrict anyone under 21 from participating.

In addition, the law requires Iowa fantasy apps and websites to implement reasonable standards for safety and fairness.

Iowa taxes daily fantasy sports 6.75% on revenue and requires a $5,000 initial licensing fee. Annual renewal fees vary based on operators’ annual revenue:

  • Licensed fantasy sports sites with less than $150,000 in annual revenue pay a renewal fee of $1,000 each year
  • Operators with more than $150,000 in revenue pay an annual fee of $5,000

Once licensed, Iowa fantasy sports apps and websites must:

  • Pay winnings to players within 48 hours of the end of the contest
  • Honor withdrawal requests within five business days unless the operator has a good faith belief that the player has engaged in fraud or violated Iowa DFS law
  • Provide means for players to file patron disputes
  • Segregate all contest funds from operational funds
  • Maintain cash or other approved cash alternatives equal to the sum of all customers’ account balances
  • Undergo annual third-party audits by qualified CPAs

Iowa law requires operators to promote responsible gambling by:

  • Offering players a means to voluntarily self-exclude from entering paid fantasy contests
  • Not placing advertisements that target prohibited persons, minors, and anyone who has self-excluded
  • Establishing policies to identify and respond to signs of problem gambling
  • Providing methods for players to self-exclude and set spending limits

Additional rules designed to protect the integrity of DFS contests and ensure a level playing field require licensed fantasy sports sites to:

  • Prevent access to minors, fantasy site employees, athletes, coaches, sports league officials, and anyone who has self-excluded
  • Prevent the sharing of confidential information that could affect DFS contests
  • Submit the rules of new contest types to the IRGC for approval
  • Identify highly experienced players by attaching an easily visible symbol to their usernames
  • Prohibit the use of unauthorized third-party scripts and tools

How Daily Fantasy Sports in Iowa Was Legalized

Iowa prohibited daily fantasy sports for longer than most other states, remaining one of the country’s last holdouts. At one point, it was estimated that 1 in 10 Iowans participated in real money fantasy leagues before doing so was legal.

Iowa’s longstanding fantasy sports prohibition wasn’t the result of widespread opposition on moral grounds or competing stakeholder interests. Instead, it was a matter of existing law; Iowa’s criminal code relied on a definition of illegal gambling that authorities interpreted as applicable to daily fantasy sports.

So, unlike some states, Iowa needed new legislation for fantasy sports sites to enter the market. Fantasy sports trade associations lobbied Iowa lawmakers for years to pass a law legalizing DFS, and eventually, lawmakers came around to their point of view.

Plus, with so many people already participating in daily fantasy sports, it made more sense to formally legalize the activity, tax it, and implement consumer protection measures.

Iowa lawmakers finally acted in April 2019 by introducing to legalize daily fantasy contests and sports betting. Governor Reynolds signed the bill that May, DraftKings launched in October, and FanDuel launched in November.

The Iowa daily fantasy market got off to a rough start due to that delayed the launch of the state’s first operators. Those issues resulted in the unexpected outcome of Iowa’s first online sportsbooks launching before daily fantasy could get off the ground.

FanDuel and DraftKings made it through the licensing process, but all other operators have shied away from the market since.

The Iowa Racing and Gaming Commission could simplify the licensing process to promote a more competitive DFS market and give players more choices. However, the advantage of the current system is that it provides high levels of consumer protection.

Iowa’s efforts to legalize daily fantasy sports and continued with multiple bills introduced over the ensuing years.

Early attempts through 2016 met , but Iowa lawmakers mounted to legalize and regulate fantasy sports in 2017. The bill would have legalized DFS contests, issued licenses to operators, implemented a 7.5% tax on revenue, and prohibited anyone under 21 from participating.

Lawmakers reintroduced in 2018, but it too failed to make it far along in the legislative process. Iowa finally got the job done in 2019 via HF 617, which received the governor’s signature later that year.

Iowa Daily Fantasy Sports FAQ

Yes. Iowa legalized daily fantasy sports and established a licensing process for operators in 2019.

Iowa law requires daily fantasy sites to prevent anyone under 21 from participating in real-money fantasy contests.

FanDuel and DraftKings are the only DFS sites licensed to offer paid fantasy sports contests in Iowa.

The Iowa Racing and Gaming Commission is responsible for regulating fantasy sports and issuing licenses to qualified operators.

Yes. Iowa considers winnings from all forms of gaming as . Readers should contact a certified tax professional for help understanding their tax obligations.