American Wagering, which does business as Caesars Sportsbook, was fined $60,000 by Iowa state regulators for allowing illegal credit card use on its platform. The Iowa Racing and Gaming Commission said there were a total of 485 illegal transactions, totaling $212,000.
Iowa does not allow the use of credit cards for any type of gambling activity
Brian Ohorilko, a director of the Racing and Gaming Commission, commented on the event. He said a specific incident occurred in July 2021. This incident included the disclosure of several credit card transactions. Ohorilko went on to say that many of these transactions were in fact approved and completed.
Additionally, Ohorilko noted that companies are working to ensure they don’t allow credit card transactions. After all, Iowa rules state that bettors cannot use credit cards as a form of payment.
The UK has the same approach in terms of depositing and withdrawing money from online gambling platforms. Even though credit cards were among the most commonly used means of payment in this country, the UKGC decided to ban them in April 2020.
Commission research noted that around 800,000 people use credit cards to gamble and bet on sports. The alarming fact was that 22% of these gamblers were classified as problem gamblers. Therefore, in order to reduce the harms of the game, the UKGC decided to ban them. Ireland also had a similar approach in 2021.
Ohorilko noted that if sportsbooks in Iowa do not follow the rules, they will suffer the consequences. In addition to issuing fines, Ohorilko said the Iowa commission can revoke/suspend licenses.
ClutchBet has been approved by the Iowa Racing and Gaming Commission
ClutchBet, which is a newly launched brand by BlueBet, recently received the green light from the Iowa Racing and Gaming Commission. The regulator has approved a mobile betting license and this marks the first state the operator will go live with its “Capital Lite” market entry strategy.
Bill Richmond, the CEO of BlueBet, said the company was excited to move to the United States. He added that this represents a “huge moment in BlueBet history” and that he is pleased to bring the ClutchBet brand to bettors in Iowa.
Richmond also commented on the Capital Lite strategy. He points out that the launch in Iowa fits perfectly into this strategy. Besides Iowa, the company had access to Colorado, Indiana and Louisiana. He said the second step in the strategy is to secure B2B partners.
In closing, Richmond thanked all parties that helped launch the ClutchBet brand in Iowa.