Under the new law, tax rate on sports betting revenue will be 6.75%, while a license fee will cost $45,000.
In-person registration is required for those choosing to use mobile apps, which is in place until January 2021.
Betting on college games will be allowed, but prop bets involving in-state college teams will be prohibited.
Iowa has 19 casinos that are now eligible to offer sports betting.
Prairie Meadows formed a partnership with William Hill back in January, before Catfish Bend joined alliances with US newcomer PointsBet.
It is expected both DraftKings and FanDuel’s sportsbook will be granted access to the market. DraftKing’s formed a partnership with Caesars and FanDuel struck a deal with Boyd Gaming. Both of these casino companies own properties within the state of Iowa.
American Gaming Association (AGA) executive Sara Slane published a statement in response to the news.
She said: “The state of Iowa has set its legal sports betting market up for success with a reasonable tax rate, mobile wagering, strong consumer protections and provisions that put responsible gaming at the forefront.”
