How Do I Set Up a Sports Betting Pool?

• The sports betting pool consists of a grid with the following components:
  • Squares on the grid correspond to the numbers of two intersecting sides of the grid.
  • Winners are determined by whether the squares selected corresponds to the numbers relating to an athletic event in the manner prescribed by the posted rules of the pool.
• If the pool involves the use of concealed numbers, the numbers shall be selected by a random method and no person shall be aware of the numbers at the time wagers are made in the pool.
• No participant wagers more than five dollars.
• All moneys wagered are awarded to participants.
• The game is publicly displayed.
• The rules, including the cost per participant and the amount of the winning is conspicuously displayed on or near to the pool.

In addition, the following requirements must be met:

• The holder of the liquor control license or beer permit has been issued and prominently displays a social gambling license on the premises.
• No one under the age of 21 shall participate in the sports betting pool.
• The game is conducted in a fair and honest manner.
• The object of the game is attainable and possible to perform under the stated rules.
• No charge is imposed upon a person for the privilege of participating in or observing the sports betting pool.
• No rebate, discount, credit, or other method is used to discriminate between the charge of the sale of goods or services to participants in gambling and the charge for the sale of goods or services to non participants. 
• No person receives or has a contingent right to receive any amount wagered, except an amount a person wins as a participant while playing on the same basis as every other participant.
• No participant is participating as an agent of another person.
• The game is not adapted with any control device to permit manipulation of the game by the operator in order to prevent a player from winning or to predetermine who the winner will be.
• A representative of the Department of Inspections, Appeals, and Licensing or a law enforcement agency is immediately admitted, upon request, to the premises with or without advance notice.

• Because the maximum payout is limited to $500, the cost per square would be limited to $500 divided by the number of squares.
• Assuming 43 cars start the race, the maximum number of squares on the grid would have to be 1,849 (43 starting positions X 43 finishing positions = 1,849)
• Assuming the operator of the sports betting pool plots all 43 positions, 43 squares would be "winning" squares.
• Assuming the operator of the sports betting pool plots all 43 pole positions, the maximum cost per square would be $0.27 ($500/1,849 = $0.27)

Potential Variations

• Rather than awarding a payout to all 43 winning squares, the rules of the sports betting pool could provide that the person(s) with th greatest number of winning squares receives the pool payout. 
• The operator of the sports betting pool could plot less than 43 starting and finishing positions, thereby reducing the number of squares and increasing the maximum allowable cost per square.
• The operator of the sports betting pool could pay out part of the pool midway through the race and the remainder of the pool at the end of the race.
• The rules of the pool could specify which pole positions will receive payouts, or the rules of the pool could state that numbers will be selected at random during the race to determine which pole positions receive payouts. 

I. Beer & Liquor Establishments—in a beer and liquor establishment gambling by way of filling in NCAA Basketball Tournament brackets is not allowed. Sports Betting Pools are allowed for individual games of the tournament, but must follow the Sports Betting Pool guidelines. To see examples of a Sports Betting Pool, visit our website.

1. All pools must be in a grid format. Participants select a square on a grid. Each grid normally has either 25 or 100 squares. There are numbers along the left side and along the top of the grid. These numbers usually represent the last digit of the score of each team at the end of the half or the end of the game. The winner is determined by where the numbers cross on the grid.
2. All pools must only be for one game or event.
3. The pool and rules of the pool, including the cost per participant and the amount of the winnings must be publicly displayed on or near the pool.
4. No participant may wager more than $5 and the maximum winnings to all participants from the pool shall not exceed $500. Participants are allowed to purchase more than 1 square as long as they aren’t wagering a total of more than $5.
5. The rules of the game must be conspicuously displayed on or near the pool, including the cost per participant and the amount of the prizes.
6. The game is conducted in a fair and honest manner.

II. The establishment must have posted in plain sight a current two-year Social Gambling license, which costs $150. A copy of the grid format and the rules of the pool must accompany the application for a Social Gambling license.

III. All participants in the Sports Betting Pool must be 21 years of age or older, and be in the establishment for reasons other than gambling.

IV. No participant is participating as an agent of another person.

• All other locations including offices and other businesses—in all locations other than Beer & Liquor Establishments gambling on NCAA Basketball Tournament brackets is allowed as long as all rules and regulations are adhered to.
  • No participant wins or loses more than a total of $200 in one or more games at any time during any period of 24 consecutive hours.
  • All participants in the gambling are individuals, and no participant may participate as the agent of another person.
  • The game is conducted in a fair and honest manner.
  • There is no minimum age to participate. III.

Legal basis

• Iowa Code 99B.6 and 99B.12
• Administrative Rules 481—IAC—102