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Can I obtain a fantasy sports license in Iowa? What are the requirements?

Yes, you can obtain a fantasy sports license in Iowa. The Iowa Administrative Code outlines the requirements for obtaining a license to operate a fantasy sports contest service [1.1][1.2][1.3]. Here are the requirements:

Licensing Requirements

To obtain a fantasy sports license in Iowa, you need to submit a description of internal controls, ensure compliance with various requirements related to player protection, provide information requested by the commission, pay taxes, and maintain a reserve [1.1][1.2][1.3].

Internal Controls

  • Submit a description of internal controls to the administrator at least 30 days before fantasy sports contest operations are to commence, unless otherwise approved by the administrator. All internal controls must be approved by the administrator prior to commencement of contest operations.
  • Submit to the administrator any changes to the internal controls previously approved at least 15 days before the changes are to become effective unless otherwise directed by the administrator.

Player Protection

  • Prevention of employees of the internet fantasy sports contest service provider and relatives living in the same household of such employees from competing in any internet fantasy sports contest on the service provider’s digital platform in which the service provider offers a prize to the public.
  • Verification that any fantasy sports contest player is 21 years of age or older.
  • Restriction of entries from coaches, officials, athletes, contestants, or other individuals who participate in a game or contest that is the subject of an internet fantasy sports contest in which the outcome is determined, in whole or in part, by the accumulated statistical results of a team of individuals in the game or contest in which they participate.
  • An easy and obvious method for a player to make a complaint and to enable the player to notify the commission if such complaint has not been or cannot be resolved by the licensee.
  • Measures used to determine the true identity, date of birth, and address of each player seeking to open an account.
  • Standards and procedures used to monitor fantasy sports contests to detect the use of unauthorized scripts and restrict players found to have used such scripts from further fantasy sports contests.
  • Prevention of unauthorized withdrawals from a registered player’s account by the service provider or others.
  • How the service provider will accept wagers within the permitted boundary.
  • How the service provider will segregate fantasy sports contest player funds from operational funds.
  • Protection of a fantasy sports contestant’s personal and private information.

Information Requested by the Commission

  • The identity and date of birth of each member of the board of directors or other governing body of the applicant.
  • The identity of each director, corporate officer, owner, partner, joint venture participant, trustee, or any other person who has any beneficial interest of 5 percent or more, direct or indirect, in the business entity.
  • A list of employees of the aforementioned who may be conducting business directly or indirectly on behalf of the applicant in the state of Iowa.
  • A bond or irrevocable letter of credit on behalf of the applicant or other satisfactory evidence, as determined by the commission, of a safe and reliable means of fulfilling the applicant’s obligations to customers and the state of Iowa in an amount determined by the commission.

Taxes and Reserve

  • Pay a tax rate pursuant to Iowa Code section 99E.6 on adjusted revenue from fantasy sports contests [1.1][1.5].
  • Maintain a reserve in the form of cash, cash equivalents, an irrevocable letter of credit, payment processor reserves and receivables, a bond, or a combination thereof in the amount of the deposits in internet fantasy sports contest player accounts [1.4].

To summarize, to obtain a fantasy sports license in Iowa, you need to submit a description of internal controls, ensure compliance with various requirements related to player protection, provide information requested by the commission, pay taxes, and maintain a reserve [1.1][1.2][1.3][1.4][1.5].

Source(s):
Jurisdiction

Iowa