The NBA and MLB have "officially registered against an Iowa House bill aimed at legalizing sports betting in the event the U.S. Supreme Court strikes down a federal law that bans it in most states," according to William Petroski of the DES MOINES REGISTER. Iowa Gaming Association President Wes Ehrecke said that the dispute over the bill "appears to focus on whether professional sports leagues would be guaranteed a slice of profits for a so-called 'integrity fee,' rather than whether Iowa wagering on sports should be legalized." Iowa's casino industry says that the major league sports fee is "unrealistic and would make Iowa sports books unprofitable." The Iowa sports gambling legislation's proposal is "scheduled for consideration" tomorrow before an Iowa House subcommittee. NBA and MLB officials suggested that the proposed Iowa legislation "falls short of what's needed to protect the integrity of sports betting." Neither league "specifically mentioned" the 1% fee, although it is "part of model state legislation proposed by the NBA." Ehrecke said that the 1% fee on the total amount of money gambled "wouldn't generate enough profits for legal sports betting to be sustainable for Iowa's casinos." That is because for every $1,000 wagered, about 95% would be "returned to gamblers," while the remaining 5% would be "needed to pay state and federal taxes, overhead expenses and a small share of profits for casinos and community groups." Ehrecke added that the 1% fee sought by sports leagues on the gross amount of money bet by gamblers would effectively take 20% of what is left "after winnings are paid out" (DES MOINES REGISTER, 2/6).
