The Iowa House has approved a bill that sets up a distribution formula for the taxes the state is collecting from casinos that offer sports wagering across Iowa. Sports betting has been legal in Iowa since August of 2019, but unlike the rest of state gambling revenue, the taxes from sports betting have not been deposited in a state infrastructure fund. About 19-and-a-half million dollars in taxes paid so far from sports betting apps and sports book areas in Iowa casinos is essentially sitting in an escrow account today. The bill uses seven million dollars in that account to cover a backlog of applications for the Endow Iowa Tax Credit for donations to community foundations. Representative Jacob Bossman of Sioux City says the bill also sets up a yearly spending plan for sports wagering taxes.
Community foundations and non-profit corporations around the state will be eligible for that block of taxes from sports wagering.
Representative Timi Brown-Powers of Waterloo says the plan will put a little extra money for non-profits in areas of the state that have casinos.
The bill passed the House unanimously on Thursday night. It now goes to the Senate for consideration.
