Senate File 2427 H-8392 Amend Senate File 2427, as amended, passed, and reprinted by 1 the Senate, as follows: 2 1. Page 19, after line 29 by inserting: 3 < DIVISION ___ 4 GAMBLING REGULATIONS 5 Sec. ___. Section 99F.4, subsection 24, Code 2024, is 6 amended to read as follows: 7 24. a. To conduct a socioeconomic study on the impact of 8 gambling on Iowans, every eight years beginning in calendar 9 year 2013, and issue a report on that study. The commission 10 shall ensure that the results of each study are readily 11 accessible to the public. 12 b. The report on the study shall include all of the 13 following: 14 (1) Information on the financial and societal impact of 15 gambling. 16 (2) An analysis of problem gambling and treatment programs. 17 (3) An evaluation of existing excursion gambling boats, 18 gambling structures, and pari-mutuel racetracks located in 19 rural areas or near the state border, if a new license is 20 awarded. 21 (4) A comprehensive assessment of potential gambling market 22 conditions. 23 (5) An evaluation of the effects on the gambling market from 24 competitive gambling locations located within sixty miles of 25 the state. 26 (6) An evaluation of the effects on attracting out-of-state 27 tourists to existing excursion gambling boats, gambling 28 structures, and pari-mutuel racetracks located near the state 29 border. 30 (7) An evaluation of the effects on existing qualified 31 sponsoring organizations and potential reductions in annual 32 distributions made by the sponsoring organization, if a new 33 license is awarded. 34 (8) The percentage ownership of existing gambling boats, 35 -1- SF 2427.4510 (1) 90 jm/jh 1/ 7 #1.

gambling structures, and pari-mutuel racetracks by residents of 1 this state versus any applicant. 2 (9) A comprehensive study of new potential adjusted gross 3 receipts after awarding a new license and the level of gambling 4 saturation with a sixty-mile radius of any existing excursion 5 gambling boat, gambling structure, or racetrack enclosure. 6 (10) Criminal statistics near existing excursion gambling 7 boats, gambling structures, or racetrack enclosures, and near 8 any potential locations of an excursion gambling boat, gambling 9 structure, or racetrack enclosure. 10 (11) An analysis of the impact on community services, 11 including public safety expenditures, fire protection, 12 infrastructure improvements, and other capital project 13 expenditures in counties. 14 Sec. ___. Section 99F.5A, Code 2024, is amended to read as 15 follows: 16 99F.5A Limitations on issuance of licenses to conduct 17 gambling games. 18 1. a. Commencing June 1, 2022, through June 30, 2029, 19 the total number of licenses issued by the commission to 20 conduct gambling games on an excursion gambling boat, at a 21 gambling structure, or at a pari-mutuel racetrack shall not 22 exceed nineteen subject to the requirements of this section 23 subsection . 24 2. b. Licenses to conduct gambling games shall be 25 restricted to those counties where an excursion gambling boat, 26 gambling structure, or racetrack enclosure was operating and 27 licensed to conduct gambling games on June 1, 2022. 28 3. c. The commission shall be authorized to take any of 29 the following actions concerning the issuance of licenses to 30 conduct gambling games: 31 a. (1) A gambling games licensee may move to a new location 32 within the same county and retain the gambling games license. 33 b. (2) A licensed facility may be sold and a new gambling 34 games license issued for operation in the same county. 35 -2- SF 2427.4510 (1) 90 jm/jh 2/ 7

c. (3) If a license to conduct gambling games is 1 surrendered, not renewed, or revoked, a new gambling games 2 license may be issued for operation in the same county. 3 4. d. This section subsection is repealed June 30, 2024 4 2029 . 5 2. On or after July 1, 2029, the commission shall not 6 issue a new license until after the commission has issued the 7 required socioeconomic study on the impact of gambling on 8 Iowans during calendar year 2029 in accordance with section 9 99F.4, subsection 24. 10 Sec. ___. Section 99F.6, subsection 5, Code 2024, is amended 11 to read as follows: 12 5. Before a license is granted, an operator of an excursion 13 gambling boat shall work with the economic development 14 authority to promote tourism throughout Iowa and encourage 15 tourism from other states . Tourism information from local 16 civic and private persons may be submitted for dissemination. 17 The commission shall not issue a new license for a new location 18 that would negatively impact an existing licensee located 19 in a county contiguous to the Iowa border or located in a 20 county that qualifies as a rural county. For purposes of this 21 subsection, “rural county” means a county with a population 22 of less than thirty thousand as determined by the most recent 23 population estimate produced by the United States bureau of 24 census or the most recent decennial census released by the 25 United States bureau of the census. 26 Sec. ___. Section 99F.6, Code 2024, is amended by adding the 27 following new subsection: 28 NEW SUBSECTION . 10. a. The commission shall not issue a 29 new license to conduct gambling games if the commission finds 30 the approval of a new license would cause or do any of the 31 following: 32 (1) Negatively impact the adjusted gross receipts of an 33 existing excursion gambling boat, gambling structure, or 34 racetrack enclosure by more than ten percent. 35 -3- SF 2427.4510 (1) 90 jm/jh 3/ 7

(2) Negatively impact the annual distributions of an 1 existing qualified sponsoring organization. 2 b. If the commission does not issue a new license to conduct 3 gambling games in a county, another application shall not be 4 submitted for that county for eight years from the date of the 5 decision not to issue the license. 6 Sec. ___. Section 99F.10, subsection 8, Code 2024, is 7 amended to read as follows: 8 8. a. In addition to any other fees required by this 9 chapter , a person awarded a new license to conduct gambling 10 games pursuant to section 99F.7 on or after January 1, 2004, 11 shall pay the applicable initial license fee to the commission 12 as provided by this subsection . A person awarded a new license 13 shall pay one-fifth of the applicable initial license fee 14 immediately upon the granting of the license, one-fifth of the 15 applicable initial license fee within one year of the granting 16 of the license, one-fifth of the applicable initial license 17 fee within two years of the granting of the license, one-fifth 18 of the applicable initial license fee within three years of 19 the granting of the license, and the remaining one-fifth of 20 the applicable initial license fee within four years of the 21 granting of the license. However, the license fee provided 22 for in this subsection shall only apply when a new license is 23 issued to a person for a facility that increases the number 24 of licensed facilities in the applicable county or counties. 25 Fees paid pursuant to this subsection are not refundable to the 26 licensee. 27 b. (1) The initial license fee set forth in this 28 subparagraph is subject to adjustment pursuant to subparagraph 29 (2). For purposes of this subsection , the applicable initial 30 license fee shall be five million dollars if the population 31 of the county where the licensee shall conduct gambling 32 games is fifteen thousand or less based upon the most recent 33 federal decennial census, shall be ten million dollars if the 34 population of the county where the licensee shall conduct 35 -4- SF 2427.4510 (1) 90 jm/jh 4/ 7

gambling games is more than fifteen thousand and less than one 1 hundred thousand based upon the most recent federal decennial 2 census, and shall be twenty million dollars if the population 3 of the county where the licensee shall conduct gambling games 4 is one hundred thousand or more based upon the most recent 5 federal decennial census. 6 (2) (a) For purposes of this subparagraph unless otherwise 7 required by the context: 8 (i) “Annual inflation factor” means the same as defined in 9 section 422.4. 10 (ii) “Cumulative inflation factor” means the product of 11 the annual inflation factor for the calendar year beginning 12 on January 1, 2004, and all annual inflation factors for 13 subsequent calendar years as determined pursuant to this 14 subparagraph. The cumulative inflation factor applies to years 15 beginning on or after January 1 of the calendar year for which 16 the latest annual inflation factor has been determined. 17 (iii) The annual inflation factor for the calendar year 18 beginning on January 1, 2004, is one hundred percent. 19 (b) Commencing with the calendar year beginning January 1, 20 2005, and for each calendar year thereafter, the commission 21 shall determine the latest cumulative inflation factor for 22 each calendar year, and multiply each applicable initial 23 license fee in subparagraph (1) by the applicable cumulative 24 inflation factor, and shall round off the resulting product to 25 the nearest one dollar, and such resulting product shall be 26 the initial license fee in subparagraph (1) for the year a new 27 license is awarded. 28 c. Moneys collected by the commission from an initial 29 license fee paid under this subsection shall be deposited in 30 the rebuild Iowa infrastructure fund created in section 8.57 . 31 Sec. ___. INTERNET GAMING —— REVIEW. 32 1. The state racing and gaming commission shall initiate 33 and coordinate an independent review of regulation frameworks 34 and the various components implementing internet gaming in the 35 -5- SF 2427.4510 (1) 90 jm/jh 5/ 7

state and its impact on the state’s gaming industry. 1 2. a. The review shall take into account the policy 2 objectives of ensuring and preserving Iowa’s competitiveness 3 in the gaming industry and may consider all of the following: 4 recent trends in Iowa gaming revenue and the correlation to 5 gaming attendance at brick and mortar casino locations and a 6 comparison to gaming trends in other states; estimates of the 7 potential impact on Iowa gaming revenues, profitability, and 8 how that might impact Iowa jobs, business vendors, nonprofit 9 fund sharing, and tax revenues; and the societal impact of 10 internet gaming and how to ensure safety and security for Iowa 11 consumers. 12 b. The review shall analyze and report on the illegal 13 gambling market and the illegal internet gambling market 14 including all of the following: societal impacts, underage 15 access, the integrity of illegal gambling games, the payment of 16 winnings, anti-money laundering aspects, and identity theft. 17 c. The review shall include an assessment of the 18 effectiveness of problem gambling services in the state. 19 d. The review shall include an assessment of the direct 20 and indirect employment effects on the surrounding communities 21 where existing licensees are located. 22 3. The review shall include recommendations for changes in 23 law and administrative rules and identification of internet 24 gaming laws and procedures of other states that, if adopted in 25 Iowa, could enhance and preserve the competitiveness of the 26 existing gaming industry in the state. 27 4. The state racing and gaming commission shall, and 28 existing licensees and other interested persons may, 29 participate in the review. The commission may utilize 30 additional services to assist in the coordination of the review 31 and preparation of the report. The commission shall submit 32 a report with findings and recommendations to the general 33 assembly by January 1, 2025. > 34 2. Title page, lines 1 and 2, by striking < the duties and 35 -6- SF 2427.4510 (1) 90 jm/jh 6/ 7