DEFENDING ACCESS TO SAFE AND SECURE PREDICTION MARKETS IN IOWA
Our Position
The Coalition for Prediction Markets advocates for a strong federal standard that keeps prediction markets secure, transparent, and domestic. We believe consenting Iowans have the right to access these forecasting tools and make their own decisions about where to invest their money.
Why SF 2470 Fails Iowa
Unlawful State Overreach: SF 2470 is an unlawful proposal. It violates federal law by requiring a massive $10M permitting fee for a federally regulated exchange.
Taxes Innovation Out of Existence: The prediction markets tax in SF 2470 won’t raise revenue – it will force legitimate, regulated platforms to shut down.
Fuels Dangerous Shadow Markets: Putting legal prediction markets out of business will push Iowans toward illegal platforms that scam users, evade U.S. taxes, and lack basic consumer protections.
Regulatory Inefficiency: A disjointed patchwork of state laws creates an inefficient framework. A single federal standard is the only way to universally mandate prediction markets surveillance and prevent insider trading.
Prediction markets are distinct from traditional gambling
Prediction markets are neutral, fee-based exchanges where the platform never trades against the public. They are structurally distinct from traditional gaming and should not be governed by rules written for a different industry.
The bottom line
We oppose state-level bans and taxes that threaten the right to trade. Iowa should foster innovation and protect its citizens by supporting a federal framework that enables these tools to thrive safely within the U.S. financial system.