American Wagering, operating under the name Caesars Sportsbook, has been fined $60,000 by the Iowa Racing and Gaming Commission for allowing the illegal use of credit cards on its platform. The penalty was issued in response to a specific incident that occurred in July 2021. The commission discovered that numerous transactions had taken place using credit cards, leading to a full audit. A total of 485 transactions amounting to $212,000 were deemed by the commission as an egregious violation.
Caesars Sportsbook Penalized for Credit Card Violation:
The Iowa Racing and Gaming Commission has levied a $60,000 penalty against American Wagering, trading as Caesars Sportsbook, for unlawfully permitting the use of credit cards on its platform. The penalty pertains to a specific incident that occurred in July 2021. An audit revealed that a significant number of transactions were conducted using credit cards, despite Iowa’s regulations prohibiting the use of credit cards for gambling purposes. In total, there were 485 transactions amounting to $212,000, which the commission considered to be a severe violation. This enforcement action highlights the commission’s commitment to ensuring compliance within the sports betting industry.
Regulator’s Actions and Future Penalties:
Brian Ohorilko, the administrator of the Iowa Racing and Gaming Commission, emphasized the importance of addressing the issue of credit card violations within the sports betting sector. He indicated that the commission had already issued a $75,000 penalty against FanDuel for a two-count violation during the previous commission meeting. Ohorilko also hinted at the possibility of further penalties in the future. The commission expects sportsbooks to rectify their processes and implement procedures to prevent such violations. Failure to comply may result in additional penalties, including license suspensions. The commission has expressed its willingness to work with operators to ensure adherence to regulatory requirements.
Iowa’s Sports Betting Revenue:
In July, the Iowa Racing and Gaming Commission reported a sports betting revenue of $11.1 million, marking a 57.7% increase compared to the previous year and a 33.3% increase from June 2023. Online sports betting generated $10.1 million in revenue, while retail sportsbooks accounted for $1.1 million. Despite the revenue surge, the total sports betting handle in July experienced a slight decline compared to the previous month. Players wagered $108.6 million, representing an 11.3% decrease from June’s $122.4 million. However, the handle demonstrated a significant increase of 22.2% compared to July 2021’s $88.9 million. Online betting accounted for $98.4 million of the total wagers, while the remaining $10.2 million was placed through retail sportsbooks.
Caesars Sportsbook, operating under the name American Wagering, has been fined $60,000 by the Iowa Racing and Gaming Commission for allowing the use of credit cards in violation of state regulations. The commission’s enforcement actions underscore its commitment to upholding regulatory standards within the sports betting industry. The penalties serve as a reminder to operators to ensure compliance and implement measures to prevent future violations. In the context of Iowa’s sports betting revenue, the industry has demonstrated significant growth, with July’s revenue marking a notable increase compared to the previous year. While the handle experienced a slight decline month-on-month, it continued to show promising year-on-year growth. As Iowa’s sports betting market evolves, regulatory authorities and operators will collaborate to foster responsible gambling practices and maintain the integrity of the industry.