Iowa Rides New Remote Mobile Betting Sign-Ups to Monthly Handle Record

January was great month for the legal sports betting industry in Iowa. Not only did the state finally shed its antiquated in-person sign-up requirement for mobile betting but it also set a sports betting handle record for the fifth month in a row according to the Iowa Racing and Gaming Commission’s report on Friday. It represented the second month that Iowa has surpassed the $100 million mark in terms of its legal sports betting handle.

January 1 saw a seismic shift in the way that Iowans could access sportsbooks and place a bet. Not only were bettors in the state now allowed to sign up for betting apps from the comfort of their own homes, but they were also introduced to some new high-end betting providers looking to take advantage of a more expansive Iowa scene.

A January to Remember

Sports betting and the revenues generated off of the Iowa legal sports betting scene set records in January. Sportsbooks in the state reported $149.5 million in bets last month which easily set a new standard for the state's platform. January bested the previous record of $104.8 million generated in December by an eye-opening 42.7%.

Revenues also easily eclipsed the record-pace it set in December. Iowa sportsbooks made $11.3 million in January for a 7.6% hold. That number beat the previous revenue-record of $9.1 million set in October and eclipsed December's $7.5 million by a stunning 50.5%. $765,673 in state taxes was reported off of the revenues.

Year-over-year figures show even more explosive growth for the legal sports betting industry in Iowa. The $149.5 million handle represents an incredible 157% spike from January 2020 when $58 million was taken in by the state's sportsbooks.

In-person vs. Remote Mobile Sign-up

January's record sports betting handle in Iowa can be traced back to the state's move from in-person sign-up requirements for mobile apps to a remote one. January's mobile betting handle was $120.76 million, a 54.7% increase from December’s $78.1 million. That $120.76 million was 80.7% of the overall monthly handle according to figures posted Friday by the Iowa Gaming Commission. The 80%+ figure finally puts Iowa in line with other Heavyweight states in terms of the mobile betting haul.

“January was the first test of an unshackled market, but it didn’t take long to realize just how much Iowa’s sportsbooks have been held back by the state’s in-person registration requirements,” said Dustin Gouker, lead analyst for PlayIA.com, regulator of all gaming in the state.

“These will be an exciting next few months in the market, with some of the biggest sports-betting holidays — namely the Super Bowl and March Madness — buoying what should be rapid expansion. This is a whole new era in Iowa sports betting.”

Sportsbook revenues also benefitted from Iowa's mobile betting registration policy. There is no better indication of this fact than the year-over-year mobile betting increase. In January 2020, mobile apps made $3.2 million in revenues, 250.7% lower than January 2021's $11.3 million.

A cautionary Tale

Iowa saw a mistake with their initial rollout of their legal sports betting platform, and they fixed it. Now with modernized remote sign-up mobile betting procedures and the subsequent attracting of some top-end providers, the system is on another level and ready to keep setting new standards.

It should be a cautionary tale to other states with a single-vendor, Lottery regulated sports betting platform like Washington DC, which has been moving away from such a regulatory fiasco and Montana, which has seen its sports betting scene suffer largely because of the way they have chosen to do business.

Iowa’s January handle spike should also be something that states with current in-person only sign-up requirements for mobile betting should take a serious look at. Nevada, the grand-daddy of legal betting has officially fallen out of the race to be America’s #1 bet-friendly state thanks to its in-person mobile platform that has been generating between 50% and 60% of its overall handle the last few years. Most “Top-5” states are reporting about 90% of their handles coming from mobile means.

The future is bright in Iowa thanks to an evolution of the way they do business and the related addition of a few new Heavyweight providers. “It’s reasonable to anticipate that February numbers will be in line, if not more,” said Brian Ohorilko, administrator of the state Racing and Gaming Commission.

Iowa will become the sixth state to eclipse the $1 billion mark in terms of its overall sports betting handle after February’s figures are released. Iowa’s new reality will only accelerate their legal sports betting bottom line.