Iowa regulator fines sportsbook for allowing use of credit cards
The Iowa Racing and Gaming Commission has issued a $60,000 penalty to a sportsbook for illegally allowing the use of credit cards on its site.
US.- American Wagering, which does business as Caesars Sportsbook, has been fined by the Iowa Racing and Gaming Commission for illegally allowing the use of credit cards on its site. The regulator issued a $60,000 penalty.
According to Iowa Racing and Gaming administrator Brian Ohorilko, the penalty was for a specific incident in July of 2021. He said: “It was discovered that there were a number of transactions that took place using a credit card. And so it was discovered at that time, a full audit was completed.
“Throughout certain periods in 2020, 2021, prepaid debit cards were purchased using a credit card and a number of those transactions were permitted and went through.”
There were a total of 485 transactions worth $212,000, which Ohorilko said the Racing and Gaming Commission said it felt was egregious.
At the last commission meeting, a $75,000 penalty was levied against FanDuel for a two-count violation. Ohorilko suggested there would be more penalties issued at future meetings and said the issue was “important for the sportsbooks to get a handle on.”
Ohorilko noted that in Iowa, credit cards cannot be used for any form of gambling. He said companies were working to make corrections. Commissioners could issue other penalties such as licence suspensions if the problems persist.
“We’ve heard some positive things from the different operators that have had problems and that they are taking steps to not only correct the action – but to develop procedures to audit these types of things – so that they’re doing their own self checks,” he said.
See also: Iowa casinos post record revenue for fiscal year 2022
The Iowa Racing and Gaming Commission reported sports betting revenue of $11.1m for July. That’s an increase of 57.7 per cent year-on-year and 33.3 per cent from June of this year. Online sports betting generated $10.1m in revenue and retail $1.1m.
Despite the revenue rise, Iowa’s sports betting handle was down a month-on-month. Players bet $108.6m in July, down 11.3 per cent from $122.4m in June, but, up by 22.2 per cent from $88.9m in July 2021.
Of the bets placed in July, $98.4m was spent online, while the remaining $10.2m was wagered through retail sportsbooks.
