The state of Iowa has moved closer to outlawing both proxy betting and account sharing of online sports wagering accounts.
Senate Study Bill 1097 is identical to its House counterpart, House Study Bill 21. The Iowa Department of Public Safety has introduced both Study Bills.
Those wishing to engage in crypto betting struggle to find operators who can obtain licenses from U.S. states. Instead, users often decide to use VPNs or access accounts from elsewhere to have payment processed and accepted.
Instead of widening gambling and crypto regulation and legalizing increasingly popular methods of wagering, American regulators often move the other way and place further restrictions on customers.
How SSB 1097 Could Change Online Gambling Rules in Iowa
SSB 1097 is titled: “A bill for an act relating to illegal gaming, and making penalties applicable.”
Under the proposed legislation, account sharing is defined as “entering into, or participating in an agreement between two or more persons to, either temporarily or permanently, share access to a person’s account with the purpose of concealing a person’s identity, which account has been established with a licensee to participate in gambling games or sports wagering.”
Proxy betting is classed as “any wagering or betting activity, including a request of another to engage in wagering or betting activity, involving two or more persons, where one person places a wager on behalf of another person with the intent to hide or conceal the bettor’s identity.”
Should the legislation pass, any user found guilty of proxy wagering or account sharing can be punished with a serious misdemeanor through to a class C felony, depending on the value of the bets placed and whether it’s a first, second, third, or subsequent offense.
The most severe punishment for breaching rules can be a hefty fine and jail time. Illegal gaming in the first degree (more than $5,000) is the most serious breach under the legislation.
The Iowa Department of Public Safety previously released a memo stating that “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.”
It adds that the goal of this legislation is “to protect the public from falling victim to deceptive practices.”
Account sharing and proxy betting are already prohibited under Iowa’s gambling law, but this looks to heighten penalties and ultimately criminalize the activity.
Crypto Betting Advocates Look to Federal Deregulation
Iowa is the latest State to consider further restrictions on online wagering rather than broadening legalization. Critics suggest that prohibition is why many bettors decide to undertake account sharing or proxy betting, and by criminalizing it, very little will be achieved.
With President Trump’s latest administration looking crypto-positive, those looking to engage in crypto betting will still have to wait a while. It’s considered unlikely that the President will bring sports betting regulation under a federal umbrella, and as such, it will continue to be regulated on a state-by-state basis.
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