Lawmakers in Iowa have moved ahead with a bill that would introduce regulations and taxes on prediction market platforms that operate in the state.
Senate File 2470, which has now passed out of a House subcommittee, would require companies that offer event-based trading markets to obtain a state permit, at an initial cost of $20 million, with an annual renewal fee of $100,000.
The bill also includes a 20% tax on adjusted revenue generated from Iowa users, and a 20% excise tax on the purchase price of each contract.
According to estimates from the Iowa Legislative Services Agency, the law could produce approximately $40 million in revenue in fiscal year 2027, largely from the initial permit fees, although projected revenues would decrease over future years.
