A new legislation in Iowa proposes harsh penalties to individuals who use proxy betting or share sportsbook account access.
Introduced on Thursday, House Study Bill 21 would classify illegal gaming and felony gambling for amounts over $500 as a Class D felony, which carries a maximum sentence of five years in “confinement” and thousands of dollars in fines.
The legislation defines proxy betting as having someone wager or requesting someone to place bets on their behalf between two or more persons with the “intent to hide or conceal the bettor’s identity.”
NEW: A bill to ban proxy betting has been filed in the Iowa Legislature. HB 21 would treat proxy betting and sports betting account sharing as "illegal gambling" punishable as a Class D felony (for amounts over $500) with up to 5 years "confinement." https://t.co/IM6zH60szY pic.twitter.com/Mf3db0T3kl
— Daniel Wallach (@WALLACHLEGAL) January 16, 2025
The Iowa sports betting bill also aims to make the act of “delivering anything of value to place as a wager in a pari-mutuel pool or other authorized system of wagering after receiving that thing of value, for a fee, outside of gambling structure.”
HSB 21 is scheduled to go in front of a subcommittee during a Jan. 23 meeting.
‘Deceptive practices’
A week before the bill was filed, the Iowa Department of Public Safety sent a letter to the legislative agencies detailing why a bill should be enacted in the Hawkeye State.
“Online sports betting has grown tremendously since legalization in 2019,” the Public Safety letter stated. “In 2024, Iowans wagered a record-breaking $2.8 billion on sporting events. This rapid expansion has created a new platform for fraudulent activity, such as account sharing and proxy betting. Fraud, money laundering, and underage gambling are major risks associated with proxy betting, and the prevalence of account sharing further emphasizes the need to strengthen the laws to prevent these methods of wagering.”
The department said the goal is to “protect the public from falling victim to deceptive practices.”
Not acceptable
Proxy betting is a legal act in Nevada, where an individual places wagers on behalf of another who typically doesn’t live in the Silver State. It’s not commonly acceptable in other U.S. jurisdictions. Sports betting operators have been fined in some states by regulators for allowing the practice to take place.
Sportsbooks forbid account sharing and consider it a violation of the Terms of Use in order to keep people in non-legal betting states and underage individuals from placing wagers.
Popular sports betting operator DraftKings clearly states that it has a “one person, one account policy.” FanDuel specifically prohibits third-party wagering as well.
