LAST WEEK THE STORY COUNTY ATTORNEY’S OFFICE DECIDED TO DISCONTINUE PROSECUTION OF FOUR CASES OF ALLEGED ILLEGAL SPORTS BETTING BY IOWA STATE UNIVERSITY ATHLETES.
IOWA DEPARTMENT OF PUBLIC SERVICE COMMISSIONER STEPHAN BAYENS SAYS THE DECISION IS DISAPPOINTING.
BAYENS SAYS ONCE SPORTS BETTING BECAME LEGAL ON DIGITAL DEVICES, IOWA LAW REQUIRED SPORTSBOOKS TO GEO-LOCATE PLAYERS WHEN PLACING WAGERS AND TO NOTIFY ACCOUNT HOLDERS ABOUT INFORMATION GATHERED AND SHARED.
HE SAYS SPORTSBOOKS CONTRACTED WITH GEOCOMPLY TO FACILITATE GEO-LOCATION AND PROVIDE SOFTWARE THAT ALLOWS DATA TO BE FILTERED.
AS A STATE GAMBLING LICENSEE, THE COMPANY PROVIDED THE STATE ACCESS TO THESE TOOLS TO REGULATE THE INDUSTRY AND ENFORCE IOWA LAW AND TRAINED DCI AGENTS ON HOW TO USE THE SOFTWARE.
BAYENS SAYS DURING A REVIEW OF ANONYMOUS DATA POINTS, ANOMALIES WERE OBSERVED AT ATHLETIC FACILITIES THAT ONLY INDIVIDUALS ASSOCIATED WITH NCAA-SANCTIONED SPORTS TEAMS HAD ACCESS.
HE SAYS THIS WAS CONCERNING BECAUSE SPORTSBOOKS MUST SEEK TO PROHIBIT SPORTS WAGERING BY COACHES, ATHLETIC TRAINERS AND PLAYERS AS REQUIRED BY IOWA LAW, AND THAT INDIVIDUALS WITH ACCESS TO THESE FACILITIES WOULD POSSESS INSIDER INFORMATION, COULD IMPACT OUTCOMES, AND TENDED TO BE UNDERAGE.
GIVEN THESE RED FLAGS, AGENTS OBTAINED SUBPOENAS SEEKING THE NAMES ON THE ACCOUNTS AFFILIATED WITH THOSE DATA POINTS. IT BECAME EVIDENT THAT MANY ACCOUNT HOLDERS LACKED ANY REAL CONNECTION TO THE PLACES FLAGGED BY THE DATA, STRONGLY SUGGESTING FRAUDULENT ACTIVITY OR IDENTITY THEFT.
THE DEPARTMENT INVESTIGATED ONLY THESE ACCOUNTS.
AGENTS APPLIED FOR SEARCH WARRANTS TO SEIZE THE DIGITAL DEVICES CONTROLLING THOSE ACCOUNTS WHICH WERE APPROVED BY IMPARTIAL JUDGES.
AT THE CONCLUSION OF THE INVESTIGATION, THE DEPARTMENT’S FINDINGS WERE PRESENTED TO PROSECUTORS WHO THEN MADE CHARGING DECISIONS.
BAYENS SAYS IN THE ELEVEN MONTHS PRECEDING THIS INVESTIGATION, SPORTSBOOKS IN IOWA CLOSED 28,554 SPORTS BETTING ACCOUNTS.
IN THE ELEVEN MONTHS SINCE THE INVESTIGATION, THEY CLOSED 82,559 ACCOUNTS.
