Iowa Racing and Gaming Commission Fines FanDuel $125,000 for Multiple Betting Violations

Due to multiple regulatory violations in the state, the Iowa Racing and Gaming Commission has issued a $125,000 fine against FanDuel, one of the country’s most prominent sports betting companies.

FanDuel was accepting prohibited bets on events such as the Super Bowl, golf matches, and soccer matches, which are not allowed under Iowa sports betting law. FanDuel spokesperson Ben Roth appeared before the commission on June 11 to address the breaches and acknowledge the company’s responsibility.

“We take responsibility for the matters represented in the settlement before the Commission today and understand that we did not meet the high standard that we hold for ourselves,” Roth said during the hearing. He also noted that FanDuel has taken measures to correct the issues and has attempted to refund affected bettors.

In addition to the $125,000 penalty for accepting illegal bets, FanDuel was fined an additional $30,000 for failing to maintain working options for responsible gambling, a requirement in Iowa designed to ensure that bettors have tools and resources to manage their wagering behavior.

Commissioners expressed concern over both the nature and the timing of the violations. Commission Chair Daryle Olsen pointed out that multiple counts occurred quickly, raising alarms about FanDuel’s operational controls in the state. “Five counts within a very short period is just too much, you know, and I know they’re dealing with a big volume,” Olsen said.

The enforcement action demonstrates Iowa’s commitment to closely monitoring its sports betting sector, which has expanded rapidly since its legalization. Regulators emphasized that although the state supports licensed operators, Iowa sports betting apps must comply with betting regulations and adhere to responsible gambling standards, which are non-negotiable.

As FanDuel works to rebuild trust with regulators and bettors alike, the company has promised to improve its internal compliance systems to prevent similar incidents in the future. 

Flutter and Boyd Gaming deal

In a related development highlighting FanDuel’s evolving corporate structure, Flutter Entertainment announced it will acquire Boyd Gaming’s remaining 5% stake in FanDuel for approximately $1.755 billion. The agreement will grant Flutter full ownership of FanDuel, thereby giving it complete control over the US sports betting and real-money online casino brand.

It also extends Flutter’s partnership with Boyd through 2038 and reduces market access costs in key states, which is expected to save around $65 million a year starting in July 2025. 

“Our acquisition of FanDuel in 2018 is one of the most transformational events in our Group’s history, with its natural competitive advantages combined with access to Flutter Edge capabilities driving impressive growth to become the well-established and clear leader in US online sports betting and iGaming. I am really pleased to drive future value for our shareholders by increasing our ownership of FanDuel to 100%. Boyd have been fantastic partners for FanDuel, and we are delighted to be extending our important strategic partnership through to 2038,” Flutter CEO Peter Jackson commented.