A bill for an act relating to state income tax withholdings on winnings from sports wagering, and including effective date provisions.

This bill requires Iowa to withhold state income tax on sports wagering winnings when federal income tax would also be withheld from those winnings. It treats all sports betting winnings as taxable Iowa earned income, aligning state withholding with federal tax rules for such winnings. The law applies to individuals who win amounts triggering federal tax withholding (typically $600 or more for most gambling, but specifically tied to federal requirements for sports betting). The bill takes effect on January 1, 2026, directly affecting Iowa residents who win significant amounts through licensed sports betting.