Revenue collected from Iowa’s 19 gaming establishments totaled $324.2 million in the fiscal year that ended June 30, $1.6 million less than was collected the previous year, according to a state report issued this week.

The decrease was mostly due to a drop in revenue from wagering fees. In addition, the state did not collect any revenue from licensing fees for new casinos, according to the report.

The revenue collected by Iowa from its casinos includes money from wagering taxes and license and regulatory fees. The wagering taxes, imposed on casino table games and slot machines, make up most of the revenue collected from gaming venues. 

Iowa had a new source of gambling revenue in 2018-19: sports wagering licensing fees, which generated $700,000. A 2018 U.S. Supreme Court decision opened the door to bookmaking and betting at casinos and racetracks located in states other than Nevada. In 2019, Iowa Gov. Kim Reynolds signed into law a bill that legalized wagers on most professional and college sports in state-regulated casinos and online.

Before they could offer sports betting, gaming establishments had to obtain a license, whose application included a fee. Fifteen of the state’s 19 casinos were able to offer sports betting on Aug. 15, the first day it was legal in Iowa. By mid-November, all 19 casinos had licenses.

The state did not collect any initial licensing fees in 2018-19, according to the state report. All new casinos are required to pay a one-time fee, which can be paid over five years. Wild Rose Casino and Resort in Jefferson, which opened in August 2015, made its final license fee payment of $1 million in 2017-18. The total licensing fee was $5 million, according to the report.

Iowa code specifies how money collected from gaming establishments is disbursed. Of the $324.2 million collected in 2018-19, $151.6 million was earmarked for the Rebuild Iowa Infrastructure Fund and $63.8 million to the Iowa Skilled Worker and Job Creation Fund. To read the full report, click here.