House File 748 H-1251 Amend House File 748 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < DIVISION I 4 SPORTS WAGERING 5 Section 1. Section 99D.7, subsection 23, Code 2019, is 6 amended to read as follows: 7 23. To establish a process to allow a person to be 8 voluntarily excluded from advance deposit wagering as defined 9 in section 99D.11, from an internet fantasy sports contest 10 as defined in section 99E.1, from advance deposit sports 11 wagering as defined in section 99F.9, from the wagering area 12 of a racetrack enclosure and from the gaming floor and sports 13 wagering area , as defined in section 99F.1 , of all other 14 licensed facilities under this chapter and chapter 99F as 15 provided in this subsection . The process shall provide that an 16 initial request by a person to be voluntarily excluded shall be 17 for a period of five years or life and any subsequent request 18 following any five-year period shall be for a period of five 19 years or life. The process established shall require that 20 licensees be provided electronic access to names and social 21 security numbers of persons voluntarily excluded through a 22 secured interactive internet site maintained by the commission 23 and information regarding persons voluntarily excluded shall 24 be disseminated to all licensees under this chapter , chapter 25 99E, and chapter 99F . The names, social security numbers, and 26 information regarding persons voluntarily excluded shall be 27 kept confidential unless otherwise ordered by a court or by 28 another person duly authorized to release such information. 29 The process established shall also require a person requesting 30 to be voluntarily excluded be provided information compiled 31 by the Iowa department of public health on gambling treatment 32 options. The state and any licensee under this chapter , 33 chapter 99E, or chapter 99F shall not be liable to any person 34 for any claim which may arise from this process. In addition 35 -1- HF748.2039 (2) 88 (amending this HF 748 to CONFORM to SF 617) ec/rn 1/ 30 #1.

to any other penalty provided by law, any money or thing of 1 value that has been obtained by, or is owed to, a voluntarily 2 excluded person as a result of wagers made by the person after 3 the person has been voluntarily excluded shall be forfeited by 4 the person and shall be credited to the general fund of the 5 state. 6 Sec. 2. Section 99F.1, subsection 1, Code 2019, is amended 7 to read as follows: 8 1. “Adjusted gross receipts” means the gross receipts less 9 winnings paid to wagerers on gambling games . However, “adjusted 10 gross receipts” does not include promotional play receipts 11 received after the date in any fiscal year that the commission 12 determines that the wagering tax imposed pursuant to section 13 99F.11 on all licensees in that fiscal year on promotional 14 play receipts exceeds twenty-five million eight hundred twenty 15 thousand dollars. 16 Sec. 3. Section 99F.1, Code 2019, is amended by adding the 17 following new subsections: 18 NEW SUBSECTION . 2A. “Authorized sporting event” means 19 a professional sporting event, collegiate sporting event, 20 international sporting event, or professional motor race 21 event. “Authorized sporting event” does not include a race as 22 defined in section 99D.2, a fantasy sports contest as defined 23 in section 99E.1, minor league sporting event, or any athletic 24 event or competition of an interscholastic sport as defined in 25 section 9A.102. 26 NEW SUBSECTION . 4A. “Collegiate sporting event” means an 27 athletic event or competition of an intercollegiate sport as 28 defined in section 9A.102. 29 NEW SUBSECTION . 16A. “International sporting event” means 30 an international team or individual sporting event governed by 31 an international sports federation or sports governing body, 32 including sporting events governed by the international olympic 33 committee and the international federation of association 34 football. 35 -2- HF748.2039 (2) 88 (amending this HF 748 to CONFORM to SF 617) ec/rn 2/ 30

NEW SUBSECTION . 18A. “Minor league sporting event” means 1 a sporting event conducted by a sports league which is not 2 regarded as the premier league in the sport as determined by 3 the commission. 4 NEW SUBSECTION . 19A. “Professional sporting event” means an 5 event, excluding a minor league sporting event, at which two 6 or more persons participate in sports or athletic events and 7 receive compensation in excess of actual expenses for their 8 participation in such event. 9 NEW SUBSECTION . 23. “Sports wagering” means the acceptance 10 of wagers on an authorized sporting event by any system of 11 wagering as authorized by the commission. “Sports wagering” 12 does not include placing a wager on the performance or 13 nonperformance of any individual athlete participating in 14 a single game or match of a collegiate sporting event in 15 which a collegiate team from this state is a participant, or 16 placing a wager on the performance of athletes in an individual 17 international sporting event governed by the international 18 olympic committee in which any participant in the international 19 sporting event is under eighteen years of age. 20 NEW SUBSECTION . 24. “Sports wagering area” means an area, 21 as designated by the commission, in which sports wagering is 22 conducted. 23 NEW SUBSECTION . 25. “Sports wagering net receipts” means 24 the gross receipts less winnings paid to wagerers on sports 25 wagering. 26 Sec. 4. Section 99F.1, subsection 17, Code 2019, is amended 27 to read as follows: 28 17. “Licensee” means any person licensed under section 99F.7 29 or 99F.7A . 30 Sec. 5. Section 99F.3, Code 2019, is amended to read as 31 follows: 32 99F.3 Gambling games and sports wagering authorized. 33 The system of wagering on a gambling game and sports wagering 34 as provided by this chapter is legal, when conducted on an 35 -3- HF748.2039 (2) 88 (amending this HF 748 to CONFORM to SF 617) ec/rn 3/ 30

excursion gambling boat, gambling structure, or racetrack 1 enclosure at authorized locations by a licensee as provided in 2 this chapter . 3 Sec. 6. Section 99F.4, subsections 3 and 22, Code 2019, are 4 amended to read as follows: 5 3. To adopt standards under which all excursion gambling 6 boat operations shall be held and standards for the facilities 7 within which the gambling operations are to be held. The 8 commission may authorize the operation of gambling games on 9 an excursion gambling boat and sports wagering in a sports 10 wagering area which is also licensed to sell or serve alcoholic 11 beverages, wine, or beer as defined in section 123.3 . 12 22. To establish a process to allow a person to be 13 voluntarily excluded from advance deposit wagering as defined 14 in section 99D.11, from an internet fantasy sports contest as 15 defined in section 99E.1, from advance deposit sports wagering 16 as defined in section 99F.9, from the gaming floor and sports 17 wagering area of an excursion gambling boat, from the wagering 18 area, as defined in section 99D.2 , and from the gaming floor 19 and sports wagering area of all other licensed facilities under 20 this chapter and chapter 99D as provided in this subsection . 21 The process shall provide that an initial request by a person 22 to be voluntarily excluded shall be for a period of five years 23 or life and any subsequent request following any five-year 24 period shall be for a period of five years or life. The process 25 established shall require that licensees be provided electronic 26 access to names and social security numbers of persons 27 voluntarily excluded through a secured interactive internet 28 site maintained by the commission and information regarding 29 persons voluntarily excluded shall be disseminated to all 30 licensees under this chapter , and chapter 99D , and chapter 99E . 31 The names, social security numbers, and information regarding 32 persons voluntarily excluded shall be kept confidential 33 unless otherwise ordered by a court or by another person 34 duly authorized to release such information. The process 35 -4- HF748.2039 (2) 88 (amending this HF 748 to CONFORM to SF 617) ec/rn 4/ 30

established shall also require a person requesting to be 1 voluntarily excluded be provided information compiled by the 2 Iowa department of public health on gambling treatment options. 3 The state and any licensee under this chapter , or chapter 99D , 4 or chapter 99E shall not be liable to any person for any claim 5 which may arise from this process. In addition to any other 6 penalty provided by law, any money or thing of value that has 7 been obtained by, or is owed to, a voluntarily excluded person 8 as a result of wagers made by the person after the person has 9 been voluntarily excluded shall be forfeited by the person and 10 shall be credited to the general fund of the state. 11 Sec. 7. Section 99F.4, Code 2019, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 27. To adopt standards under which all 14 sports wagering is conducted, including the scope and type of 15 wagers allowed, to identify occupations within sports wagering 16 which require licensing, and to adopt standards for licensing 17 and background qualifications for occupations including 18 establishing fees for the occupational license. All revenue 19 received by the commission under this chapter from license fees 20 shall be deposited in the general fund of the state and shall 21 be subject to the requirements of section 8.60. All revenue 22 received by the commission from regulatory fees shall be 23 deposited into the gaming regulatory revolving fund established 24 in section 99F.20. 25 Sec. 8. Section 99F.5, subsection 1, Code 2019, is amended 26 to read as follows: 27 1. A qualified sponsoring organization may apply to the 28 commission for a license to conduct gambling games on an 29 excursion gambling boat or gambling structure as provided in 30 this chapter . A person may apply to the commission for a 31 license to operate an excursion gambling boat. An operating 32 agreement entered into on or after May 6, 2004, between 33 a qualified sponsoring organization and an operator of an 34 excursion gambling boat or gambling structure shall provide for 35 -5- HF748.2039 (2) 88 (amending this HF 748 to CONFORM to SF 617) ec/rn 5/ 30

a minimum distribution by the qualified sponsoring organization 1 for educational, civic, public, charitable, patriotic, or 2 religious uses as defined in section 99B.1 , that averages at 3 least three percent of the adjusted gross receipts for each 4 license year and, if applicable, three-quarters of one percent 5 of sports wagering net receipts for each license year . The 6 application shall be filed with the administrator of the 7 commission at least ninety days before the first day of the 8 next excursion season as determined by the commission, shall 9 identify the excursion gambling boat upon which gambling games 10 will be authorized, shall specify the exact location where 11 the excursion gambling boat will be docked, and shall be in 12 a form and contain information as the commission prescribes. 13 The minimum capacity of an excursion gambling boat or gambling 14 structure is two hundred fifty persons. 15 Sec. 9. Section 99F.6, subsection 4, paragraph a, 16 subparagraphs (2) and (3), Code 2019, are amended to read as 17 follows: 18 (2) A qualified sponsoring organization licensed to operate 19 gambling games under this chapter shall distribute the receipts 20 of all gambling games, less reasonable expenses, charges, 21 taxes, fees, and deductions allowed under this chapter , as 22 winnings to players or participants or shall distribute the 23 receipts for educational, civic, public, charitable, patriotic, 24 or religious uses as defined in section 99B.1 . However, a 25 licensee to conduct gambling games under this chapter shall, 26 unless an operating agreement for an excursion gambling boat 27 otherwise provides, distribute at least three percent of the 28 adjusted gross receipts and, if applicable, three-quarters of 29 one percent of sports wagering net receipts for each license 30 year for educational, civic, public, charitable, patriotic, 31 or religious uses as defined in section 99B.1 . However, if a 32 licensee who is also licensed to conduct pari-mutuel wagering 33 at a horse racetrack has unpaid debt from the pari-mutuel 34 racetrack operations, the first receipts of the gambling 35 -6- HF748.2039 (2) 88 (amending this HF 748 to CONFORM to SF 617) ec/rn 6/ 30

games operated within the racetrack enclosure less reasonable 1 operating expenses, taxes, and fees allowed under this chapter 2 shall be first used to pay the annual indebtedness. 3 (3) The commission shall authorize, subject to the debt 4 payments for horse racetracks and the provisions of paragraph 5 “b” for dog racetracks, a licensee who is also licensed to 6 conduct pari-mutuel dog or horse racing to use receipts 7 from gambling games and sports wagering within the racetrack 8 enclosure to supplement purses for races particularly for 9 Iowa-bred horses pursuant to an agreement which shall be 10 negotiated between the licensee and representatives of the 11 dog or horse owners. For agreements subject to commission 12 approval concerning purses for horse racing beginning on or 13 after January 1, 2006, the agreements shall provide that total 14 annual purses for all horse racing shall be four percent of 15 sports wagering net receipts and no less than eleven percent of 16 the first two hundred million dollars of net receipts, and six 17 percent of net receipts above two hundred million dollars. In 18 addition, live standardbred horse racing shall not be conducted 19 at the horse racetrack in Polk county, but the purse moneys 20 designated for standardbred racing pursuant to section 99D.7, 21 subsection 5 , paragraph “b” , shall be included in calculating 22 the total annual purses required to be paid pursuant to this 23 subsection . Agreements that are subject to commission approval 24 concerning horse purses for a period of time beginning on 25 or after January 1, 2006, shall be jointly submitted to the 26 commission for approval. 27 Sec. 10. NEW SECTION . 99F.7A Sports wagering —— license —— 28 terms and conditions —— fees. 29 1. The commission shall, upon payment of an initial license 30 fee of forty-five thousand dollars and submission of an 31 application to the commission consistent with the requirements 32 of section 99F.6, issue a license to conduct sports wagering 33 to a licensee authorized to conduct gambling games at a 34 pari-mutuel racetrack enclosure or a licensee authorized to 35 -7- HF748.2039 (2) 88 (amending this HF 748 to CONFORM to SF 617) ec/rn 7/ 30

operate an excursion gambling boat or gambling structure, 1 subject to the requirements of this chapter. The annual 2 renewal fee for a license to conduct sports wagering shall be 3 ten thousand dollars. 4 2. A licensee under this section shall do all of the 5 following: 6 a. Include on the internet site or mobile application used 7 by the licensee to conduct advance deposit sports wagering as 8 authorized in section 99F.9 the statewide telephone number 9 authorized by the Iowa department of public health to provide 10 problem gambling information and extensive responsible gaming 11 features in addition to those described in section 99F.4, 12 subsection 22. 13 b. Establish, subject to commission approval, sports 14 wagering rules that specify the amounts to be paid on winning 15 sports wagers, the effect of changes in the scheduling of an 16 authorized sporting event subject to sports wagering, and the 17 source of the information used to determine the outcome of a 18 sports wager. The sports wagering rules shall be displayed in 19 the licensee’s sports wagering area, posted on the internet 20 site or mobile application used by the licensee to conduct 21 advance deposit sports wagering as authorized in section 99F.9, 22 and included in the terms and conditions of the licensee’s 23 advance deposit sports wagering system. 24 3. A licensee under this section may enter into operating 25 agreements with one or two entities to have up to a total of 26 two individually branded internet sites to conduct advance 27 deposit sports wagering for the licensee, unless one additional 28 operating agreement or individually branded internet site is 29 authorized by the commission. 30 4. A licensee issued a license to conduct sports wagering 31 under this section shall employ reasonable steps to prohibit 32 coaches, athletic trainers, officials, players, or other 33 individuals who participate in an authorized sporting event 34 that is the subject of sports wagering from sports wagering 35 -8- HF748.2039 (2) 88 (amending this HF 748 to CONFORM to SF 617) ec/rn 8/ 30

under this chapter. In addition, a licensee shall employ 1 reasonable steps to prohibit persons who are employed in 2 a position with direct involvement with coaches, players, 3 athletic trainers, officials, players, or participants in 4 an authorized sporting event that is the subject of sports 5 wagering from sports wagering under this chapter. 6 Sec. 11. Section 99F.8, Code 2019, is amended to read as 7 follows: 8 99F.8 Bond of licensee. 9 A licensee licensed under section 99F.7 shall post a bond 10 to the state of Iowa before the license is issued in a sum 11 as the commission shall fix, with sureties to be approved by 12 the commission. The bond shall be used to guarantee that the 13 licensee faithfully makes the payments, keeps its books and 14 records and makes reports, and conducts its gambling games and 15 sports wagering in conformity with this chapter and the rules 16 adopted by the commission. The bond shall not be canceled by 17 a surety on less than thirty days’ notice in writing to the 18 commission. If a bond is canceled and the licensee fails to 19 file a new bond with the commission in the required amount on 20 or before the effective date of cancellation, the licensee’s 21 license shall be revoked. The total and aggregate liability 22 of the surety on the bond is limited to the amount specified in 23 the bond. 24 Sec. 12. Section 99F.9, subsection 1, Code 2019, is amended 25 to read as follows: 26 1. Except as permitted in this section , the licensee shall 27 not permit no sports wagering or any form of wagering on 28 gambling games. 29 Sec. 13. Section 99F.9, Code 2019, is amended by adding the 30 following new subsection: 31 NEW SUBSECTION . 3A. a. For the purposes of this section, 32 unless the context otherwise requires: 33 (1) “Advance deposit sports wagering” means a method of 34 sports wagering in which an eligible individual may, in an 35 -9- HF748.2039 (2) 88 (amending this HF 748 to CONFORM to SF 617) ec/rn 9/ 30

account established with a licensee under section 99F.7A, 1 deposit moneys into the account and use the account balance to 2 pay for sports wagering. Prior to January 1, 2021, an account 3 must be established by an eligible individual in person with 4 a licensee. 5 (2) “Advance deposit sports wagering operator” means an 6 advance deposit sports wagering operator licensed by the 7 commission who has entered into an agreement with a licensee 8 under section 99F.7A to provide advance deposit sports 9 wagering. 10 (3) “Eligible individual” means an individual who is at 11 least twenty-one years of age or older who is located within 12 this state. 13 b. The commission may authorize a licensee under section 14 99F.7A to conduct advance deposit sports wagering. An advance 15 deposit sports wager may be placed in person in the sports 16 wagering area, or from any other location via a telephone-type 17 device or any other electronic means. The commission may also 18 issue an advance deposit sports wagering operator license to 19 an entity who complies with this subsection and section 99F.6 20 and may require the advance deposit sports wagering operator to 21 conduct an audit consistent with the requirements of section 22 99F.13. 23 c. An unlicensed person taking or receiving sports wagers 24 from residents of this state is guilty of a class “D” felony. 25 Sec. 14. Section 99F.9, subsection 4, Code 2019, is amended 26 to read as follows: 27 4. A person under the age of twenty-one years shall not make 28 or attempt to make a wager pursuant to subsection 3A or on an 29 excursion gambling boat, gambling structure, or in a racetrack 30 enclosure and shall not be allowed on the gaming floor of 31 an excursion gambling boat or gambling structure or in the 32 wagering area, as defined in section 99D.2 , or on the gaming 33 floor of a racetrack enclosure. However, a person eighteen 34 years of age or older may be employed to work on the gaming 35 -10- HF748.2039 (2) 88 (amending this HF 748 to CONFORM to SF 617) ec/rn 10/ 30

floor of an excursion gambling boat or gambling structure or 1 in the wagering area or on the gaming floor of a racetrack 2 enclosure. A person who violates this subsection with respect 3 to making or attempting to make a wager commits a scheduled 4 violation under section 805.8C, subsection 5 , paragraph “a” . 5 Sec. 15. Section 99F.11, subsection 3, unnumbered paragraph 6 1, Code 2019, is amended to read as follows: 7 The taxes imposed by this section on adjusted gross receipts 8 from gambling games authorized under this chapter shall be paid 9 by the licensee to the treasurer of state within ten days after 10 the close of the day when the wagers were made and shall be 11 distributed as follows: 12 Sec. 16. Section 99F.11, Code 2019, is amended by adding the 13 following new subsection: 14 NEW SUBSECTION . 4. a. A tax is imposed on the sports 15 wagering net receipts received each fiscal year by a licensed 16 operator from sports wagering authorized under this chapter at 17 the rate of six and three-quarters percent. 18 b. The taxes imposed by this subsection for sports wagering 19 authorized under this chapter shall be paid by the licensed 20 operator to the treasurer of state as determined by the 21 commission and shall be credited as provided in section 8.57, 22 subsection 6. 23 Sec. 17. Section 99F.12, subsection 2, Code 2019, is amended 24 to read as follows: 25 2. a. The licensee shall furnish to the commission reports 26 and information as the commission may require with respect to 27 the licensee’s activities. 28 b. A licensee under section 99F.7A shall promptly report 29 to the commission any criminal or disciplinary proceedings 30 commenced against the licensee or its employees in connection 31 with the licensee conducting sports wagering or advance 32 deposit sports wagering, any abnormal wagering activity or 33 patterns that may indicate a concern about the integrity of an 34 authorized sporting event or events, and any other conduct with 35 -11- HF748.2039 (2) 88 (amending this HF 748 to CONFORM to SF 617) ec/rn 11/ 30

the potential to corrupt a wagering outcome of an authorized 1 sporting event for purposes of financial gain, including 2 but not limited to match fixing, and suspicious or illegal 3 wagering activities, including the use of funds derived from 4 illegal activity, wagers to conceal or launder funds derived 5 from illegal activity, use of agents to place wagers, or use 6 of false identification. The commission is required to share 7 any information received pursuant to this paragraph with the 8 division of criminal investigation, any other law enforcement 9 entity upon request, or any regulatory agency the commission 10 deems appropriate. The commission shall promptly report any 11 information received pursuant to this paragraph with any 12 sports team or sports governing body as the commission deems 13 appropriate, but shall not share any information that would 14 interfere with an ongoing criminal investigation. 15 c. The gross receipts and adjusted gross receipts from 16 gambling shall be separately handled and accounted for from 17 all other moneys received from operation of an excursion 18 gambling boat or from operation of a racetrack enclosure or 19 gambling structure licensed to conduct gambling games. The 20 commission may designate a representative to board a licensed 21 excursion gambling boat or to enter a racetrack enclosure or 22 gambling structure licensed to conduct gambling games. The 23 representative shall have full access to all places within the 24 enclosure of the boat, the gambling structure, or the racetrack 25 enclosure and shall directly supervise the handling and 26 accounting of all gross receipts and adjusted gross receipts 27 from gambling. The representative shall supervise and check 28 the admissions. The compensation of a representative shall be 29 fixed by the commission but shall be paid by the licensee. 30 d. With the approval of the commission, a licensee under 31 section 99F.7A shall cooperate with investigations conducted 32 by sports governing bodies, including but not limited to 33 providing or facilitating the provision of account-level 34 betting information and audio or video files relating to 35 -12- HF748.2039 (2) 88 (amending this HF 748 to CONFORM to SF 617) ec/rn 12/ 30

persons placing wagers. However, a licensee shall not share 1 information that would interfere with an ongoing criminal 2 investigation. 3 Sec. 18. Section 99F.15, subsection 1, paragraph c, Code 4 2019, is amended to read as follows: 5 c. Acting, or employing a person to act, as a shill or 6 decoy to encourage participation in a gambling game or sports 7 wagering . 8 Sec. 19. Section 99F.15, subsection 4, paragraphs d, h, and 9 i, Code 2019, are amended to read as follows: 10 d. Cheats at a gambling game, including but not limited to 11 committing any act which alters the outcome of the game , or 12 cheats at sports wagering . 13 h. Claims, collects, or takes, or attempts to claim, 14 collect, or take, money or anything of value in or from the 15 gambling games or sports wagering , with intent to defraud, 16 without having made a wager contingent on winning a gambling 17 game or sports wager , or claims, collects, or takes an amount 18 of money or thing of value of greater value than the amount 19 won. 20 i. Knowingly entices or induces a person to go to any place 21 where a gambling game or sports wagering is being conducted or 22 operated in violation of the provisions of this chapter with 23 the intent that the other person plays or participates in that 24 gambling game or sports wagering . 25 Sec. 20. Section 99F.20, subsection 1, Code 2019, is amended 26 to read as follows: 27 1. A gaming regulatory revolving fund is created in 28 the state treasury under the control of the department of 29 inspections and appeals. The fund shall consist of fees 30 collected and deposited into the fund paid by licensees 31 pursuant to section 99D.14, subsection 2 , paragraph “c” , fees 32 paid by licensees pursuant to section 99E.5, subsection 4, 33 paragraph “c” , regulatory fees paid by licensees pursuant 34 to section 99F.4, subsection 27, and fees paid by licensees 35 -13- HF748.2039 (2) 88 (amending this HF 748 to CONFORM to SF 617) ec/rn 13/ 30

pursuant to section 99F.10, subsection 4 , paragraph “c” . All 1 costs relating to racetrack, excursion boat, and gambling 2 structure , internet fantasy sports contests as defined in 3 section 99E.1, and sports wagering regulation shall be paid 4 from the fund as provided in appropriations made for this 5 purpose by the general assembly. The department shall provide 6 quarterly reports to the department of management and the 7 legislative services agency specifying revenues billed and 8 collected and expenditures from the fund in a format as 9 determined by the department of management in consultation with 10 the legislative services agency. 11 Sec. 21. EMERGENCY RULES. The state racing and gaming 12 commission created under section 99D.5 may adopt emergency 13 rules under section 17A.4, subsection 3, and section 17A.5, 14 subsection 2, paragraph “b”, to implement the provisions of 15 this division of this Act and the rules shall be effective 16 immediately upon filing unless a later date is specified in the 17 rules but in no event earlier than July 4, 2019. Any rules 18 adopted in accordance with this section shall also be published 19 as a notice of intended action as provided in section 17A.4. 20 Sec. 22. IMPLEMENTATION. The racing and gaming commission 21 shall not implement this division of this Act until the later 22 of July 4, 2019, or the date the commission has adopted rules 23 pursuant to chapter 17A providing for such implementation and 24 such rules have become effective. 25 Sec. 23. EFFECTIVE DATE. This division of this Act, being 26 deemed of immediate importance, takes effect upon enactment. 27 DIVISION II 28 FANTASY SPORTS CONTESTS 29 Sec. 24. Section 80.25A, Code 2019, is amended to read as 30 follows: 31 80.25A Pari-mutuel and gambling game Gaming operations 32 investigation and enforcement. 33 The commissioner of public safety shall direct the chief 34 of the division of criminal investigation to establish a 35 -14- HF748.2039 (2) 88 (amending this HF 748 to CONFORM to SF 617) ec/rn 14/ 30

subdivision to be the primary criminal investigative and 1 enforcement agency for the purpose of enforcement of chapters 2 99D , 99E, and 99F . The commissioner of public safety shall 3 appoint or assign other agents to the division as necessary to 4 enforce chapters 99D , 99E, and 99F . All enforcement officers, 5 assistants, and agents of the division are subject to section 6 80.15 except clerical workers. 7 Sec. 25. Section 80.43, subsection 1, Code 2019, is amended 8 to read as follows: 9 1. A gaming enforcement revolving fund is created in the 10 state treasury under the control of the department. The fund 11 shall consist of fees collected and deposited into the fund 12 paid by licensees pursuant to section 99D.14, subsection 2 , 13 paragraph “b” , fees and costs paid by applicants pursuant 14 to section 99E.4, subsection 4, and fees paid by licensees 15 pursuant to section 99F.10, subsection 4 , paragraph “b” . All 16 costs for agents and officers plus any direct support costs 17 for such agents and officers of the division of criminal 18 investigation’s racetrack, excursion boat, or gambling 19 structure , and internet fantasy sports contests as defined in 20 section 99E.1 enforcement activities shall be paid from the 21 fund as provided in appropriations made for this purpose by the 22 general assembly. 23 Sec. 26. NEW SECTION . 99E.1 Definitions. 24 As used in this chapter, unless the context otherwise 25 requires: 26 1. “Applicant” means an internet fantasy sports contest 27 service provider applying for a license to conduct internet 28 fantasy sports contests under this chapter. 29 2. “Commission” means the state racing and gaming commission 30 created under section 99D.5. 31 3. “Fantasy sports contest” includes any fantasy or 32 simulated game or contest in which the fantasy sports contest 33 operator is not a participant in the game or contest, the value 34 of all prizes and awards offered to winning participants are 35 -15- HF748.2039 (2) 88 (amending this HF 748 to CONFORM to SF 617) ec/rn 15/ 30

established and made known to the participants in advance 1 of the contest, all winning outcomes reflect the relative 2 knowledge and skill of the participants and shall be determined 3 by accumulated statistical results of the performance of 4 individuals, including athletes in the case of sporting events, 5 and no winning outcome is solely based on the score, point 6 spread, or any performance or performances of any single actual 7 team or solely on any single performance of an individual 8 athlete or player in any single actual event. However, until 9 May 1, 2020, “fantasy sports contest” does not include any 10 fantasy or simulated game or contest in which any winning 11 outcomes are based on statistical results from a collegiate 12 sporting event as defined in section 99F.1. 13 4. “Internet fantasy sports contest” means a method of 14 entering a fantasy sports contest by which a person may 15 establish an account with an internet fantasy sports contest 16 service provider, deposit money into the account, and use 17 the account balance for entering a fantasy sports contest by 18 utilizing electronic communication. 19 5. “Internet fantasy sports contest adjusted revenues” means, 20 for each internet fantasy sports contest, the amount equal to 21 the total charges and fees collected from all participants 22 entering the internet fantasy sports contest less winnings paid 23 to participants in the contest, multiplied by the location 24 percentage. 25 6. “Internet fantasy sports contest player” means a person 26 who is at least twenty-one years of age and participates in an 27 internet fantasy sports contest operated by an internet fantasy 28 sports contest service provider. 29 7. “Internet fantasy sports contest service provider” means 30 a person, including a licensee under chapter 99D or 99F, who 31 conducts an internet fantasy sports contest as authorized by 32 this chapter. 33 8. “Licensee” means any person licensed under section 99E.5 34 to conduct internet fantasy sports contests. 35 -16- HF748.2039 (2) 88 (amending this HF 748 to CONFORM to SF 617) ec/rn 16/ 30

9. “Location percentage” means, for each internet fantasy 1 sports contest, the percentage, rounded to the nearest tenth of 2 a percent, equal to the total charges and fees collected from 3 all internet fantasy sports contest players located in this 4 state divided by the total charges and fees collected from all 5 participants in the internet fantasy sports contest. 6 Sec. 27. NEW SECTION . 99E.2 Internet fantasy sports 7 contests authorized. 8 The system of entering an internet fantasy sports contest as 9 provided by this chapter is legal when conducted by a licensed 10 internet fantasy sports contest service provider as provided in 11 this chapter. 12 Sec. 28. NEW SECTION . 99E.3 Commission —— powers. 13 1. The commission shall have full jurisdiction over and 14 shall supervise internet fantasy sports contests and internet 15 fantasy sports contest service providers as governed by this 16 chapter. 17 2. The commission shall have the following powers and shall 18 adopt rules pursuant to chapter 17A to administer and implement 19 this chapter: 20 a. To review and investigate applicants and determine the 21 eligibility of applicants for a license to conduct internet 22 fantasy sports contests, pursuant to rules adopted by the 23 commission. 24 b. To license and regulate internet fantasy sports contest 25 service providers subject to the requirements of this chapter. 26 c. To provide for the prevention of practices detrimental to 27 the public and to provide for the best interests of internet 28 fantasy sports contests. 29 d. To investigate alleged violations of this chapter 30 or the commission rules, orders, or final decisions and to 31 take appropriate disciplinary action against a licensee, or 32 institute appropriate legal action for enforcement, or both. 33 Information gathered during an investigation is confidential 34 during the pendency of the investigation. 35 -17- HF748.2039 (2) 88 (amending this HF 748 to CONFORM to SF 617) ec/rn 17/ 30

e. To assess fines and revoke or suspend licenses and to 1 impose penalties for violations of this chapter. 2 f. To take any other action as may be reasonable or 3 appropriate to enforce this chapter and the commission rules. 4 Sec. 29. NEW SECTION . 99E.4 Requirements of applicant —— 5 fee. 6 1. An applicant for a license to conduct internet fantasy 7 sports contests shall complete and sign an application on 8 the form prescribed and published by the commission. The 9 application shall include such information of the applicant 10 that the commission deems necessary for purposes of issuing a 11 license pursuant to this chapter. 12 2. An applicant shall submit fingerprints and information 13 that the commission deems necessary to the commission in the 14 manner prescribed on the application forms. The fingerprints 15 may be submitted to the federal bureau of investigation by 16 the department of public safety through the state criminal 17 history repository for the purpose of a national criminal 18 history check. The results of a criminal history record check 19 conducted pursuant to this subsection shall be considered a 20 confidential record under chapter 22. 21 3. Before a license is granted, the division of criminal 22 investigation of the department of public safety shall conduct 23 a thorough background investigation of the applicant for a 24 license to conduct internet fantasy sports contests. The 25 applicant shall provide information on a form as required by 26 the division of criminal investigation. 27 4. The commission shall charge the applicant a reasonable 28 fee set by the division of criminal investigation of the 29 department of public safety, to defray those costs associated 30 with the fingerprint and national criminal history check 31 requirements of subsection 2 and background investigations 32 conducted by agents of the division of criminal investigation 33 as provided in subsection 3. These fees and costs are in 34 addition to any other license fees and costs charged by the 35 -18- HF748.2039 (2) 88 (amending this HF 748 to CONFORM to SF 617) ec/rn 18/ 30