A bill for an act relating to event-driven contracts traded on dedicated contract markets by requiring a permit to conduct business in the state, imposing a tax on adjusted revenues or amounts traded, making adjustments to individual and corporate income taxes, providing for fees, and including contingent effective date, applicability, and retroactive applicability provisions. (Formerly SF 2085.)
Names and comments are public records. Remaining information is considered a confidential record.
Comments Submitted:
04-15-2026
Stefan Stevens
Consider the following points of context around prediction markets (PMs) and tax revenue:1) State sportsbooks limit how much sharp individuals can wager on their platforms. No state lawmakers or regulators have addressed this in the statute. Individuals may decide between state sportsbooks that they may have not heard of, offshore sites, street bookies, PMs, or some combination.2) Despite a drop in handle, revenue is matching or exceeding alltime highs because sharp players are abandoning the headaches of betting in large groups with proxies on state sportsbooks and instead, doing business on highvolume PMs.3) PMs are still the only legal way for individuals & sharps to make their own market & limit orders.4) The $20 million permit fee & 20% tax on revenue is punitive to platforms to the extent they'd not operate in Iowa if SCOTUS rules for states. No revenue would be raised from Phase I.4) Individual traders wouldn't stay & pay 20% tax so no revenue from Phase II either.
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