{"id":578,"date":"2026-01-26T14:58:06","date_gmt":"2026-01-26T15:58:06","guid":{"rendered":"https:\/\/cerulepillar.com\/?p=578"},"modified":"2026-03-25T13:26:04","modified_gmt":"2026-03-25T13:26:04","slug":"prediction-markets-in-iowa-could-soon-need-state-license","status":"publish","type":"post","link":"https:\/\/cerulepillar.com\/index.php\/2026\/01\/26\/prediction-markets-in-iowa-could-soon-need-state-license\/","title":{"rendered":"Prediction Markets in Iowa Could Soon Need State License"},"content":{"rendered":"<ul>\n<li><strong>Legislation in Iowa seeks to force prediction markets to obtain state licenses<\/strong><\/li>\n<li><strong>The licenses would come with hefty costs, including an upfront $10 million fee<\/strong><\/li>\n<li><strong>Prediction markets say their federal regulation supersedes state laws<\/strong><\/li>\n<\/ul>\n<hr \/>\n<p class=\"p1\"><span class=\"s1\">Prediction markets are regulated by the Commodity Futures Trading Commission (CFTC), but lawmakers in Iowa want to have a say in how they conduct business in the Hawkeye State.<\/span><\/p>\n<figure id=\"attachment_374444\" aria-describedby=\"caption-attachment-374444\" data-style=\"width: 858px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" class=\"size-post-thumbnail-858xAUTO wp-image-374444 lazyload\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" alt=\"prediction markets Iowa gaming license\" width=\"858\" height=\"572\" data-src=\"https:\/\/cerulepillar.com\/wp-content\/uploads\/2026\/01\/shutterstock_2160552525-858x572-1.jpg\"><figcaption>The University of Iowa campus in Iowa City is pictured. Iowa lawmakers are considering legislation that would seek to force prediction markets to obtain a state license to conduct trading in the state. (Image: Shutterstock)<\/figcaption><\/figure>\n<p class=\"p1\"><span class=\"s1\"><a href=\"https:\/\/www.casino.org\/us\/predictions\/\">Prediction markets<\/a> have attracted the scorn of state attorneys general, gaming regulators, and lawmakers since the derivative trading platforms began offering contracts involving sports last year. The American Gaming Association (AGA) and Indian Gaming Association (IGA) have called on the CFTC and Congress to force prediction markets to cease offering sports contracts on the grounds that the trading constitutes sports betting and violates state gaming laws.<\/span><\/p>\n<p class=\"p1\"><strong><span class=\"s1\">In Iowa, state lawmakers are trying to take the prediction markets matter into their own hands.<\/span><\/strong><\/p>\n<p class=\"p1\"><span class=\"s1\">Senate File 2085, introduced by Iowa Majority Leader Mike Klimesh (R-Howard), would require prediction markets to obtain a permit to conduct business in the state.<\/span><span class=\"s1\">\u00a0<\/span><\/p>\n<h2 class=\"p1\"><span class=\"s1\"><b>Iowa Prediction Markets Bill<\/b><\/span><span class=\"s1\"><b>\u00a0<\/b><\/span><\/h2>\n<p class=\"p1\"><span class=\"s1\">SF2085 would only allow prediction markets licensed by the Iowa Department of Revenue to conduct derivative trading within the state.<\/span><\/p>\n<div class=\"callout\">\n<p class=\"p1\"><span class=\"s1\">The cost for entry would be high, with PM licenses going for an upfront fee of $10 million. Licenses would need to be renewed annually at $100K. The cost of doing business doesn&#8217;t end there. Prediction markets would need to send 20% of their gross revenues from trading in Iowa to the state.<\/span><\/p>\n<\/div>\n<p class=\"p1\"><span class=\"s1\">PMs currently operating in Iowa that stand to be impacted include <a href=\"https:\/\/www.casino.org\/us\/predictions\/kalshi\/\">Kalshi<\/a>, DraftKings Predictions, FanDuel Predicts, PrizePicks, and Fanatics Markets.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Klimesh was elected to succeed state Sen. Jack Whitver (R-Polk) last September. The former mayor of Spillville, Klimesh&#8217;s focus points for the 2026 legislative session, along with regulating prediction markets on the state level, include expanding carbon dioxide pipeline projects, making energy more affordable, and fostering bipartisanship in Des Moines.<\/span><\/p>\n<h2 class=\"p1\"><span class=\"s1\"><b>PM Pushback<\/b><\/span><\/h2>\n<p class=\"p1\"><span class=\"s1\">Kalshi and the like continue to defend their online prediction markets in various state courthouses. The financial exchanges claim that their CFTC regulation supersedes state laws, including gaming laws, under the Supremacy Clause of the US Constitution.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">However, CFTC-regulated derivative markets are not to engage in contracts that involve gambling.<\/span><\/p>\n<blockquote class=\"main-blockquote\">\n<p class=\"p1\"><span class=\"s1\">An event contract, also known as a prediction or information contract, is a derivative contract whose payoff is based on a specified event, occurrence, or value such as the value of a macroeconomic indicator, corporate earnings, level of snowfall, or dollar value of damages caused by a hurricane. CFTC Regulation 40.11 prohibits event contracts that reference terrorism, assassination, war, gaming, or an activity that is unlawful under any State or Federal law, or that involves, relates to, or references an activity that is similar to any of those activities and that the CFTC determines by rule or regulation to be contrary to the public interest,&#8221; the CFTC explains.<\/span><\/p>\n<\/blockquote>\n<p class=\"p1\"><span class=\"s1\">SF2085 has been directed to the Iowa Senate Ways and Means Committee for initial review.<\/span><\/p>\n<p>The post <a href=\"https:\/\/www.casino.org\/news\/prediction-markets-in-iowa-could-soon-need-state-license\/\">Prediction Markets in Iowa Could Soon Need State License<\/a> appeared first on <a href=\"https:\/\/www.casino.org\/news\">Casino.org<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Legislation in Iowa seeks to force prediction markets to obtain state licenses The licenses would come with hefty costs, including an upfront $10 million fee Prediction markets say their federal regulation supersedes state laws Prediction markets are regulated by the Commodity Futures Trading Commission (CFTC), but lawmakers in Iowa want to have a say in&#8230;<\/p>\n","protected":false},"author":1,"featured_media":580,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[13],"tags":[],"_links":{"self":[{"href":"https:\/\/cerulepillar.com\/index.php\/wp-json\/wp\/v2\/posts\/578"}],"collection":[{"href":"https:\/\/cerulepillar.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cerulepillar.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cerulepillar.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cerulepillar.com\/index.php\/wp-json\/wp\/v2\/comments?post=578"}],"version-history":[{"count":2,"href":"https:\/\/cerulepillar.com\/index.php\/wp-json\/wp\/v2\/posts\/578\/revisions"}],"predecessor-version":[{"id":581,"href":"https:\/\/cerulepillar.com\/index.php\/wp-json\/wp\/v2\/posts\/578\/revisions\/581"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cerulepillar.com\/index.php\/wp-json\/wp\/v2\/media\/580"}],"wp:attachment":[{"href":"https:\/\/cerulepillar.com\/index.php\/wp-json\/wp\/v2\/media?parent=578"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cerulepillar.com\/index.php\/wp-json\/wp\/v2\/categories?post=578"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cerulepillar.com\/index.php\/wp-json\/wp\/v2\/tags?post=578"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}