Iowa DCI counters allegations that sports betting probe used ‘warrantless search’

After being accused by defense lawyers of conducting warrantless searches in their sports gambling investigation that has led to 25 charges, the Iowa Department of Public Safety issued a statement Wednesday saying their use of geofencing software on college campuses had been legally vetted.

“Prior to using the tools provided, the Department of Public Safety conferred with legal counsel to ensure lawful access to and use of the technology,” the statement said. “Two county attorney offices also reviewed all relevant investigative information before making the ultimate decision to file charges.

“We believe the evidence was obtained in a constitutionally permissible manner. Ultimately it is up to the courts to decide.”

The Iowa Division of Criminal Investigation, which is part of the department, last year charged 25 people in Johnson and Story counties with sports betting violations, including University of Iowa and Iowa State University student-athletes, former student-athletes and others associated with their athletic programs.

The Iowa Racing and Gaming Commission, which licenses casinos and sports wagering operators, has use of Kibana software from GeoComply, a Vancouver, B.C., company, as part of being a regulator. Geolocation software can be used to make sure people aren’t placing bets with Iowa sportsbooks from outside state boundaries, which is prohibited.

“The evolution of gaming has given rise to emerging technologies that help regulate the industry and enforce the law,” the Public Safety Department said in its statement.

“Iowa Administrative Rule 491-13.5 requires ‘the sportsbooks to implement location detection procedures to reasonably detect and dynamically monitor the location of a player attempting to place any wager’ and to notify account holders about information being gathered and shared,” the department said.

While in some states the sports betting regulator also is the enforcement arm, that is not the case in Iowa. The DCI is the primary agency that enforces sports wagering in the state and has six agents assigned to the industry that had $2.4 billion in bets in 2023.

“Analytical software programs developed by the licensees that provide mapping and anonymized data points were made available to the DCI to help identify anomalies suggesting suspicious or criminal activity that could undermine sports gambling in Iowa and ensure regulatory compliance,” the department said.

Iowa’s sports betting law says the state must “employ reasonable steps to prohibit coaches, athletic trainers, officials, players, or other individuals who participate in an authorized sporting event that is the subject of sports wagering, from sports wagering.”

The Public Safety Department didn’t say exactly how or where agents used the geofencing tools.

Van Plumb, a Des Moines lawyer representing two former ISU football players, alleged in a court motion filed last week that Special Agent Brian Sanger set up a virtual boundary, or geofence, around a UI residence hall. The software allowed Sanger to see if online betting applications were opened in the dorm and the account numbers in use, the motion states.

“He initially used Kibana to place a warrantless search around a freshman/sophomore dorm at the University of Iowa to investigate underage gambling without any tips, complaints, or evidence that underage gambling was occurring,” Plumb alleged.

Sanger later placed a geofence around UI and ISU sports practice facilities, Plumb said in the motion to compel the DCI to release more information.

What triggered probe?

The department’s statement Wednesday doesn’t say what caused agents to focus on student-athletes at UI and ISU — which has been a question from fans and coaches.

In another motion filed in Story County, Christopher Sandy, an attorney representing ISU wrestler Paniro Johnson, charged with identity theft as part of the probe, said DCI Special Agent Mark Ludwick said in a deposition he felt misled because the sports betting probe initially was focused on sportsbooks, including FanDuel and Draft Kings — but the criminal charges were filed against current and former student-athletes.

The department said in its statement it doesn’t comment on active investigations or litigation involving the agency. “We want to reassure Iowans that the Department always strives to scrupulously uphold the laws and constitutions of the United States and the State of Iowa,” the statement said.

Matt Holt, founder and chief executive officer of U.S. Integrity, a Nevada company that partners with sports teams, leagues and sports-betting operators to ensure integrity of sports betting, told The Gazette this week he’s seen geofencing software used after an operator indicated an abnormality in sports betting.

“Usually the tip of the spear is somebody reporting something to some type of gaming commission, who then reacts to the report,” Holt said. “That may have happened here. Without all the facts it's hard to say.”

He predicted the Iowa investigation will prompt “nationwide conversations” about how the geolocation software is used to enforce sports betting laws.

“I would be willing to wager if somebody launched a similar type investigation at any major university across the country, they would yield some people participating in sports betting in a way they shouldn't,” he said.

Comments: (319) 339-3157; erin.jordan@thegazette.com