-The latest projections show Iowa will have a budget shortfall over just over $1 Billion for the coming fiscal year. While area legislators say the decline was predicted and the state has the reserve funds to cover the deficit until revenues begin to increase again, they did show support for a proposal that would add millions in revenue each year without costing Iowa taxpayers anything. During a legislative forum in Algona Saturday, Representative John Wills of Spirit Lake discussed a proposal from Governor Kim Reynolds that would increase the tax rate sports betting companies pay to the state. Companies like FanDuel or Draft Kings currently pay a rate of 6.75% on adjusted gross revenue, compared to a top rate of 22% for the casinos.
Wills says these sports betting companies are not invested in the state and local communities like casinos.
In 2025, gamblers in Iowa wagered approximately $2.92 Billion on Sports, with operators earning approximately $266.7 Million.
Representative Henry Stone of Forest City also showed support for the idea, which could bring in an additional $40 million in tax revenue for the state.
