House Study Bill 626 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON COWNIE) A BILL FOR An Act permitting internet wagering by licensees authorized 1 to conduct gambling games on an excursion boat, gambling 2 structure, or racetrack enclosure, and making penalties 3 applicable. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 6012YC (5) 84 ec/nh

H.F. _____ Section 1. Section 99F.1, Code 2011, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 16A. “Internet wagering” means a method 3 of wagering by which a person may establish an account, 4 deposit money into the account, and use the account balance 5 for wagering by utilizing electronic communication. “Internet 6 wagering” is limited to wagering on poker games. 7 Sec. 2. Section 99F.3, Code 2011, is amended to read as 8 follows: 9 99F.3 Gambling games authorized. 10 The system of wagering on a gambling game as provided by 11 this chapter is legal, when conducted on an excursion gambling 12 boat, gambling structure, or racetrack enclosure at authorized 13 locations by a licensee , or, for internet wagering, when 14 conducted by a licensee pursuant to requirements established by 15 the commission, as provided in this chapter . 16 Sec. 3. Section 99F.4, subsections 14 and 22, Code 2011, are 17 amended to read as follows: 18 14. To require , except for internet wagering, all licensees 19 of gambling game operations to utilize a cashless wagering 20 system whereby all players’ money is converted to tokens, 21 electronic cards, or chips which only can be used for wagering 22 on the excursion gambling boat. 23 22. To require licensees to establish a process to 24 allow a person to be voluntarily excluded for life from an 25 excursion gambling boat and all other licensed facilities under 26 this chapter and chapter 99D , or from engaging in internet 27 wagering conducted by a licensee under this chapter . The 28 process established shall require that a licensee disseminate 29 information regarding persons voluntarily excluded to all 30 licensees under this chapter and chapter 99D . The state and 31 any licensee under this chapter or chapter 99D shall not be 32 liable to any person for any claim which may arise from this 33 process. In addition to any other penalty provided by law, any 34 money or thing of value that has been obtained by, or is owed 35 -1- LSB 6012YC (5) 84 ec/nh 1/ 4

H.F. _____ to, a voluntarily excluded person by a licensee as a result of 1 wagers made by the person after the person has been voluntarily 2 excluded shall not be paid to the person but shall be credited 3 to the general fund of the state. 4 Sec. 4. Section 99F.4, Code 2011, is amended by adding the 5 following new subsection: 6 NEW SUBSECTION . 27. To establish requirements for 7 licensees to conduct internet wagering as provided in this 8 chapter. 9 Sec. 5. Section 99F.4A, subsection 1, Code Supplement 2011, 10 is amended to read as follows: 11 1. Upon application, the commission shall license the 12 licensee of a pari-mutuel dog or horse racetrack to operate 13 gambling games at a pari-mutuel racetrack enclosure or to 14 conduct internet wagering subject to the provisions of this 15 chapter and rules adopted pursuant to this chapter relating to 16 gambling except as otherwise provided in this section . 17 Sec. 6. Section 99F.7, subsection 1, Code Supplement 2011, 18 is amended to read as follows: 19 1. If the commission is satisfied that this chapter and 20 its rules adopted under this chapter applicable to licensees 21 have been or will be complied with, the commission shall issue 22 a license for a period of not more than three years to an 23 applicant to own a gambling game operation, to an applicant to 24 operate a gambling structure, and to an applicant to operate an 25 excursion gambling boat. The commission shall decide which of 26 the gambling games authorized under this chapter the commission 27 will permit including whether the licensee can conduct internet 28 wagering . The commission shall decide the number, location, 29 and type of gambling structures and excursion gambling boats 30 licensed under this chapter . The commission shall allow the 31 operation of an excursion boat or moored barge on or within one 32 thousand feet of the high water marks of the rivers, lakes, and 33 reservoirs of this state as established by the commission in 34 consultation with the United States army corps of engineers, 35 -2- LSB 6012YC (5) 84 ec/nh 2/ 4

H.F. _____ the department of natural resources, or other appropriate 1 regulatory agency. The license shall set forth, as applicable, 2 the name of the licensee, the type of license granted, the 3 location of the gambling structure or the place where the 4 excursion gambling boats will operate and dock, and the time 5 and number of days during the excursion season and the off 6 season when gambling may be conducted by the licensee. 7 Sec. 7. Section 99F.9, subsections 3 and 5, Code 2011, are 8 amended to read as follows: 9 3. The licensee may receive wagers only from a person 10 present on a licensed excursion gambling boat, licensed 11 gambling structure, or in a licensed racetrack enclosure , or 12 from a person engaging in internet wagering . An internet wager 13 may be placed from any location within this state or from 14 any other location where authorized by law, subject to any 15 requirements adopted by the commission. 16 5. A person under the age of twenty-one years shall not 17 engage in internet wagering or make or attempt to make a wager 18 on an excursion gambling boat, gambling structure, or in a 19 racetrack enclosure and shall not be allowed on the gaming 20 floor of an excursion gambling boat or gambling structure or 21 in the wagering area, as defined in section 99D.2 , or on the 22 gaming floor of a racetrack enclosure. However, a person 23 eighteen years of age or older may be employed to work on 24 the gaming floor of an excursion gambling boat or gambling 25 structure or in the wagering area or on the gaming floor of a 26 racetrack enclosure. A person who violates this subsection 27 with respect to engaging in internet wagering or making or 28 attempting to make a wager commits a scheduled violation under 29 section 805.8C, subsection 5 , paragraph “a” . 30 Sec. 8. Section 99F.15, subsection 3, Code 2011, is amended 31 to read as follows: 32 3. A Except for internet wagering conducted as authorized 33 by this chapter, a person wagering or accepting a wager at 34 any location outside an excursion gambling boat, gambling 35 -3- LSB 6012YC (5) 84 ec/nh 3/ 4

H.F. _____ structure, or a racetrack enclosure is in violation of section 1 725.7 . 2 EXPLANATION 3 This bill permits licensees authorized to conduct gambling 4 games under Code chapter 99F to conduct internet wagering. The 5 bill defines “internet wagering” as a method of wagering by 6 which a person may establish an account, deposit money into the 7 account, and use the account balance for wagering by utilizing 8 electronic communication. The bill provides that internet 9 wagering on gambling games is limited to wagering on poker 10 games. 11 Code section 99F.4, concerning powers of the state 12 racing and gaming commission, is amended to provide that the 13 commission establish requirements for internet wagering. The 14 Code section is also amended to provide that the current 15 process that allows a person to be voluntarily excluded from a 16 gambling facility shall also apply to internet wagering. 17 Code section 99F.9, concerning wagering, is amended to 18 provide that wagers through internet wagering are authorized 19 and can be made from any location within this state or as 20 authorized by law subject to any requirements adopted by the 21 commission. The Code section is also amended to provide 22 that limits on wagering for persons under the age of 21 at 23 an excursion gambling boat, gambling structure, or racetrack 24 enclosure also apply to internet wagering. 25 -4- LSB 6012YC (5) 84 ec/nh 4/ 4