For many years, Iowa has earned a prominent place among the leaders in the gaming industry thanks to state-regulated casinos. From gaming to hotels, restaurants, spas, and golf, these establishments offer a complete entertainment package and constantly innovate to maintain competitiveness in an evolving industry. The sector has flourished with strong community support, steady tourism, and continued investments. This challenge has been met brilliantly so far, with one exception; we’ll explain why in the rest of this article.

Current Landscape of Iowa’s Gaming Industry

Iowa is home to 19 state-regulated casinos that have long been pillars of the gaming industry. In the fiscal year 2024, these establishments reported a combined adjusted gross revenue (AGR) of approximately $1.72 billion, a slight decline from $1.76 billion in the previous fiscal year. Despite this dip, revenues remain robust compared to pre-pandemic figures, which hovered around $1.46 billion in 2018 and 2019.

Attendance figures have mirrored this trend. After a rebound to 17.5 million admissions in the fiscal year 2022, numbers declined to 17.1 million in 2023 and 16.9 million in 2024. While these decreases are noteworthy, they suggest a stabilization rather than a steep decline.

The slight downturn in Iowa’s casino revenues can be partially attributed to increased competition from neighboring states. For instance, the Horseshoe Casino in Council Bluffs experienced a decline in adjusted gross revenue from $212 million in the fiscal year 2022 to $187 million in the fiscal year 2024. This decline coincides with the introduction of casino gaming in nearby Nebraska.

The Rise of Sports Betting in Iowa

On the contrary, sports betting revenue has been growing. In the fiscal year 2024, the total sports wagering handle, the amount bet by patrons, reached a record $2.6 billion, averaging over $7 million in daily bets. This rebound from the previous year’s $2.2 billion, surpassing the $2.5 billion recorded in 2022. Almost $45 million was collected in state taxes to pay for philanthropic projects, charitable giving, and gambling addiction treatment programs.

November 2024 was particularly noteworthy, with sportsbooks handling $315.2 million in bets, a 6.8% increase from October and an 8.8% rise year-over-year. Operators’ revenue soared to $30.1 million, reflecting a 63% month-over-month and 113% year-over-year increase. These figures show the strong demand for sports wagering among Iowans and the sector’s potential for further expansion.

Not Just Casino Gaming

Iowa is popular not only for its casinos and sports betting but also for its indie gaming scene. In the early 2000s, the state was home to Budcat Creations, the creator of major franchises like “Guitar Hero” and “Madden NFL.” Although Budcat Creations closed its doors in 2010, its legacy has inspired a new wave of game developers in the state.

Today, Iowa hosts several indie gaming studios, such as Fair Weather Studios, Numinous Games, and Random Seed Games. These studios craft unique titles and provide comprehensive game development services to clients. The local industry’s growth is supported by a community passionate about gaming, continuous technological advancements, and an educational system that nurtures future talent.

Online Gaming — An Untapped Opportunity

While Iowa has embraced sports betting in 2019, the state has yet to legalize online casinos. Considering other states that jumped on the iGaming trend earlier, this is a missed opportunity. Some legislative efforts were to legalize online gambling, such as State Representative Bobby Kaufmann’s HSB 227 bill, but the bill has stalled in committee stages. For 2025, no active bills are seeking to legalize online casinos in Iowa, leaving this potential revenue stream untapped.

The national trend indicates a growing consumer preference for online gaming platforms. States that have integrated online casino games into their offerings have reported substantial revenue boosts, suggesting that Iowa could benefit similarly by exploring legislative avenues to regulate online casino gaming. However, this isn’t on the agenda for now. By not offering iGaming options, Iowa’s casinos potentially forego millions in additional revenue.