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SF 395 – Sports Wagering, Prohibited Activities (LSB1447SV)
Staff Contact: Maria Wagenhofer (515.281.5270) maria.wagenhofer@legis.iowa.gov
Fiscal Note Version – New
Description
Senate File 395 adds that a person who engages in “proxy betting” or “account sharing” is guilty
of illegal gaming under Iowa Code section 725.7.
The Bill defines “proxy betting” as any wagering or betting activity, including the request of
another to engage in wagering or betting activity, involving two or more persons, where one
person places a wager on behalf of another person with the intent to hide or conceal the bettor’s
identity.
The Bill defines “account sharing” as entering into or participating in an agreement between two
or more persons to, either temporarily or permanently, share access to a person’s account with
the purpose of concealing a person’s identity, which account has been established with a
licensee to participate in gambling games or sports wagering under Iowa Code chapter 99F.
Background
A person who violates Iowa Code section 725.7 commits an offense ranging from a serious
misdemeanor to a Class C felony based on the sum of money or value of other property
involved and whether the offense was a first or repeat offense.
A serious misdemeanor is punishable by confinement for no more than one year and a fine of at
least $430 but not more than $2,560. An aggravated misdemeanor is punishable by
confinement for up to two years and a fine of at least $855 but not more than $8,540. A Class D
felony is punishable by confinement for no more than five years and a fine of at least $1,025 but
not more than $10,245. A Class C felony is punishable by confinement for up to 10 years and a
fine of at least $1,370 but not more than $13,660.
In FY 2024, there was one person convicted under Iowa Code section 725.7.
Assumptions
• The following will not change over the projection period: charge, conviction, and sentencing
patterns and trends; prisoner length of stay (LOS); revocation rates; plea bargaining; and
other criminal justice system policies and practices.
• A delay of six months is assumed from the effective date of this Bill to the date of first entry
of affected offenders into the correctional system.
• Marginal costs for county jails cannot be estimated due to a lack of data. For purposes of
this analysis, the marginal cost for county jails is assumed to be $50 per day.
Correctional Impact
The correctional impact of the Bill cannot be determined because the number of new
convictions cannot be estimated. Figure 1 shows estimates for sentencing to State prison,
parole, probation, or Community-Based Corrections (CBC) residential facilities; LOS in months
under those supervisions; and supervision marginal costs per day for a serious misdemeanor,
Fiscal Note
Fiscal Services Division 2
an aggravated misdemeanor, a Class D felony, and a Class C felony. Refer to the Legislative
Services Agency (LSA) memo addressed to the General Assembly, Cost Estimates Used for
Correctional Impact Statements, dated January 13, 2025, for information related to the
correctional system.
Figure 1 — Sentencing Estimates and Length of Stay (LOS) in Months
Minority Impact
The minority impact cannot be determined since it is not known how many additional convictions
would result from the changes under the Bill. Refer to the LSA memo addressed to the General
Assembly, Minority Impact Statements, dated January 13, 2025, for information related to
minorities in the criminal justice system.
Fiscal Impact
Senate File 395 may increase the number of convictions under Iowa Code section 725.7;
however, the extent of the increase in costs to the Department of Corrections (DOC) is
unknown. Figure 2 shows the average State cost per offense for a serious misdemeanor, an
aggravated misdemeanor, a Class D felony, and a Class C felony. The estimated impact to the
General Fund includes operating costs incurred by the Judicial Branch, the Indigent Defense
Fund, and the DOC. The cost would be incurred across multiple fiscal years for prison and
parole supervision.
Figure 2 — Average State Cost Per Offense
Sources
Department of Corrections
Criminal and Juvenile Justice Planning (CJJP), Department of Management (DOM)
/s/ Jennifer Acton
February 26, 2025
Doc ID 1523289
The fiscal note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in
developing this fiscal note is available from the Fiscal Services Division of the Legislative Services
Agency upon request.
www.legis.iowa.gov Conviction Offense Class
Percent
Ordered to
State
Prison
FY 2024 Avg
LOS in Prison
(All Releases)
Marginal
Cost per
Day
Percent
Ordered to
Probation
FY24 Field
Avg LOS on
Probation
Avg Cost per
Day on
Probation
Marginal
Cost CBC
per Day
Marginal
Cost per
Day Jail
FY24
Field Avg
LOS on
Parole
Marginal
Cost per
Day
Parole
C Felony Non-Persons 84.5% 16.9 $24.51 59.3% 48.0 $7.68 $18.37$50.00 21.5 $7.68
D Felony Non-Persons 83.9% 13.1 $24.51 69.5% 39.0 $7.68 $18.37$50.00 16.5 $7.68
Agg Misd Non-Persons 30.5% 8.7 $24.51 46.4% 26.1 $7.68 $18.37$50.00 19.7 $7.68
Serious Misdemeanor 2.4% N/A $24.51 53.4% 18.8 $7.68 $18.37$50.00 N/A $7.68 Offense Class Average Cost
Serious Misdemeanor $420 to $5,000
Aggravated Misdemeanor$6,800 to $11,800
Class D Felony $11,900 to $19,100
Class C Felony $14,900 to $25,600