H.F. _____ Section 1. Section 99F.1, subsection 1, Code 2018, is 1 amended to read as follows: 2 1. “Adjusted gross receipts” means the gross receipts less 3 winnings paid to wagerers on gambling games other than sports 4 betting . “Adjusted gross receipts” also includes an amount 5 equal to one-third of sports betting net receipts. However, 6 “adjusted gross receipts” does not include promotional play 7 receipts received after the date in any fiscal year that the 8 commission determines that the wagering tax imposed pursuant 9 to section 99F.11 on all licensees in that fiscal year on 10 promotional play receipts exceeds twenty-five million eight 11 hundred twenty thousand dollars. 12 Sec. 2. Section 99F.1, subsection 12, Code 2018, is amended 13 to read as follows: 14 12. “Gambling game” means any game of chance authorized by 15 the commission. However, for racetrack enclosures, “gambling 16 game” does not include table games of chance or video machines 17 which simulate table games of chance, unless otherwise 18 authorized by this chapter . “Gambling game” does not include 19 includes sports betting as authorized by the commission . 20 Sec. 3. Section 99F.1, Code 2018, is amended by adding the 21 following new subsections: 22 NEW SUBSECTION . 23. “Sports betting” means the acceptance 23 of wagers on collegiate or professional sporting events by any 24 system of wagering as authorized by the commission. “Sports 25 betting” does not include wagering on a race as defined in 26 section 99D.2. 27 NEW SUBSECTION . 24. “Sports betting net receipts” means 28 winnings paid to wagerers on sports betting less amounts paid 29 to others as authorized by the commission. 30 Sec. 4. Section 99F.9, subsection 2, Code 2018, is amended 31 to read as follows: 32 2. The Except as provided in subsection 3A, the licensee 33 may receive wagers only from a person present on a licensed 34 excursion gambling boat, licensed gambling structure, or in a 35 -1- LSB 5640YC (3) 87 ec/rn 1/ 5

H.F. _____ licensed racetrack enclosure. 1 Sec. 5. Section 99F.9, Code 2018, is amended by adding the 2 following new subsection: 3 NEW SUBSECTION . 3A. a. For the purposes of this section, 4 unless the context otherwise requires: 5 (1) “Advance deposit sports betting wagering” means a method 6 of sports betting wagering in which an individual may establish 7 an account, deposit money into the account, and use the account 8 balance to pay for sports betting wagering. 9 (2) “Advance deposit sports betting wagering operator” means 10 an entity licensed by the commission who has entered into an 11 agreement with the licensee to provide advance deposit sports 12 betting wagering. 13 b. The commission may authorize a gambling game licensee to 14 conduct advance deposit sports betting wagering. An advance 15 deposit sports betting wager may be placed in person on a 16 licensed excursion gambling boat, licensed gambling structure, 17 or in a licensed racetrack enclosure, or from any other 18 location via a telephone-type device or any other electronic 19 means. The commission may also issue an advance deposit 20 wagering operator license, subject to the terms established by 21 the commission, to an entity who complies with this subsection 22 and section 99F.6. 23 c. An unlicensed advance deposit sports betting wagering 24 operator or an individual taking or receiving sports betting 25 wagers from residents of this state is guilty of a class “D” 26 felony. 27 Sec. 6. Section 99F.9, subsection 4, Code 2018, is amended 28 to read as follows: 29 4. A person under the age of twenty-one years shall not make 30 or attempt to make a wager pursuant to subsection 3A or on an 31 excursion gambling boat, gambling structure, or in a racetrack 32 enclosure and shall not be allowed on the gaming floor of 33 an excursion gambling boat or gambling structure or in the 34 wagering area, as defined in section 99D.2 , or on the gaming 35 -2- LSB 5640YC (3) 87 ec/rn 2/ 5

H.F. _____ floor of a racetrack enclosure. However, a person eighteen 1 years of age or older may be employed to work on the gaming 2 floor of an excursion gambling boat or gambling structure or 3 in the wagering area or on the gaming floor of a racetrack 4 enclosure. A person who violates this subsection with respect 5 to making or attempting to make a wager commits a scheduled 6 violation under section 805.8C, subsection 5 , paragraph “a” . 7 Sec. 7. Section 99F.19, Code 2018, is amended by adding the 8 following new subsection: 9 NEW SUBSECTION . 8. For purposes of this section, “licensee” 10 shall also include an advance deposit sports betting wagering 11 operator. 12 Sec. 8. CONTINGENT EFFECTIVE DATE. This Act takes effect 13 on the earlier of the date that the federal Professional and 14 Amateur Sports Protection Act of 1992, 28 U.S.C. §3701 to 3704, 15 is rendered void and unenforceable as it relates to this Act as 16 a result of a final judgment of the Supreme Court of the United 17 States, or is repealed or otherwise modified by the Congress 18 of the United States in a manner that does not prohibit sports 19 betting in this state. The racing and gaming commission shall 20 submit a notice for publication in the Iowa administrative 21 bulletin, with a written copy provided to the Iowa Code editor, 22 specifying the effective date of this Act. 23 EXPLANATION 24 The inclusion of this explanation does not constitute agreement with 25 the explanation’s substance by the members of the general assembly. 26 This bill authorizes gambling licensees to conduct sports 27 betting. 28 Code section 99F.1, concerning definitions, is amended. The 29 bill adds definitions for sports betting and sports betting net 30 receipts. The bill defines sports betting as acceptance of 31 wagers on collegiate or professional sporting events, except 32 races as defined in Code chapter 99D, by any system of wagering 33 as authorized by the racing and gaming commission. Sports 34 betting net receipts is defined as winnings paid to wagerers 35 -3- LSB 5640YC (3) 87 ec/rn 3/ 5

H.F. _____ on sports betting less amounts paid to others as authorized by 1 the commission. 2 Code section 99F.1(1), defining adjusted gross receipts, is 3 amended to provide that adjusted gross receipts includes an 4 amount equal to one-third of sports betting net receipts. 5 Code section 99F.1(12), defining gambling game, is amended 6 to provide that gambling game includes sports betting as 7 authorized by the commission. 8 Code section 99F.9, concerning wagering on gambling games, 9 is amended to allow the commission to authorize gambling game 10 licensees under Code chapter 99F to conduct advance deposit 11 sports betting wagering. The bill would allow for an advance 12 deposit wager to be placed in person at a licensed facility 13 authorized to conduct gambling games or from any other location 14 by telephone or other electronic means. The bill defines 15 advance deposit sports betting wagering as a form of wagering 16 where an individual creates an account, deposits money into 17 that account, and can use the balance within the account for 18 sports betting wagering. The bill also allows the commission 19 to issue advance deposit sports betting wagering operation 20 licenses to entities which have entered into an agreement 21 with the commission to provide advance deposit sports betting 22 wagering. The bill provides that an unlicensed advance deposit 23 sports betting wagering operator or an individual taking sports 24 betting wagers from Iowa residents is guilty of a class “D” 25 felony, punishable by confinement for no more than five years 26 and a fine of at least $750 but not more than $7,500. The 27 Code section is also amended to provide that a person under 28 the age of 21 shall not make or attempt to make a wager by 29 advance deposit sports betting wagering. The bill also amends 30 Code section 99F.19 to provide that an advance deposit sports 31 betting wagering operator is a licensee for purposes of the 32 setoff provisions established in that Code section. 33 The bill takes effect upon the earlier of the date that 34 the federal Professional and Amateur Sports Protection Act 35 -4- LSB 5640YC (3) 87 ec/rn 4/ 5

H.F. _____ is rendered void and unenforceable as it relates to the bill 1 by judgment of the Supreme Court of the United States, or is 2 repealed or otherwise modified by the Congress of the United 3 States in a manner that does not prohibit sports betting in 4 this state. The bill requires the racing and gaming commission 5 to submit a notice for publication in the Iowa administrative 6 bulletin, with a written copy provided to the Iowa Code editor, 7 specifying the effective date of the bill. 8 -5- LSB 5640YC (3) 87 ec/rn 5/ 5