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The Iowa Racing and Gaming Commission has penalized FanDuel Sportsbook $95,000 after finding the operator offered wagers that were not permitted under state law.
The case involved two separate incidents: one tied to basketball markets in the Philippines and another linked to soccer prop bets. Both were deemed violations of Iowa’s sports wagering rules, which require operators to seek approval before offering new betting markets
FanDuel, which operates in Iowa through Betfair Interactive US LLC, acknowledged the violations and agreed to pay the fines. The Commission approved the stipulated agreement in late July 2026.
Basketball wagers on unapproved Philippine league
The first violation stemmed from wagers offered on the Maharlika Pilipinas Basketball League (MPBL).
FanDuel reported to regulators in May 2025 that it had mistakenly allowed bets on the league from June 2024 through April 2025. Iowa law permits wagers on international basketball only if the league is top‑tier in its country and recognized by FIBA, the sport’s governing body. The MPBL did not meet those standards.
During that period, 21,638 wagers were placed on FanDuel’s mobile app, totaling $1.18 million in handle. The company initially profited $60,692.19 from those bets.
Once the error was discovered, FanDuel refunded all net losses to Iowa customers and allowed winners to keep their proceeds. In July 2025, the operator remediated $154,898.99 to 1,665 patrons.
It also adjusted its revenue submission by subtracting $60,110.03. FanDuel said it reviewed all basketball offerings and introduced stricter checks to ensure international leagues meet regulatory requirements before being listed.
Soccer card markets flagged during compliance check
The second violation came in July 2025 when Commission staff conducted a compliance review of soccer markets.
They found FanDuel’s retail sportsbook was offering bets on yellow and red cards in international matches. Iowa’s approved wagers list specifically bans officiating‑related props, with card issuance cited as an example.
FanDuel removed the markets immediately after being notified. The company later pulled all card markets from its retail catalog while working on a permanent fix. Only one wager was placed during the period, a $134.58 parlay that included an impermissible leg.
The bet lost on all three legs, and because the customer could not be identified, FanDuel surrendered $44.86, the proportional stake, through the unclaimed property process. The operator also deducted that amount from its August 2025 revenue submission.
The Commission determined that both incidents violated Iowa Code § 99F.3 and related administrative rules. FanDuel agreed to pay $50,000 for the basketball violation and $45,000 for the soccer violation.
The penalties were credited to Iowa’s general fund after the Commission formally approved the agreement on July 27, 2026.
FanDuel continues penalty streak
FanDuel’s latest fine in Iowa adds to a growing list of penalties the operator has faced across different jurisdictions.
Regulators in Iowa and Massachusetts had already sanctioned the company for offering wagers that were not approved, with Iowa imposing a $125,000 penalty and Massachusetts issuing a $15,000 fine.
Most of those violations involved golf markets, including bets tied to LPGA events that were not authorized under state rules.
The company’s troubles have not been limited to the United States. In Ontario, FanDuel was reprimanded in January 2026 after regulators discovered it had accepted more than 140 wagers on a Czech table tennis tournament that had been flagged for match‑fixing concerns.
The AGCO fine amounted to CA$350,000 and covered bets placed between October and November 2024.
