HOUSE FILE _____

BY  (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON COWNIE)

A BILL FOR

An Act permitting internet wagering by licensees authorized to conduct gambling games on an excursion boat, gambling structure, or racetrack enclosure, and making penalties applicable.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 99F.1, Code 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  16A.  “Internet wagering” means a method of wagering by which a person may establish an account, deposit money into the account, and use the account balance for wagering by utilizing electronic communication. “Internet wagering” is limited to wagering on poker games.
    Sec. 2.  Section 99F.3, Code 2011, is amended to read as follows:
   99F.3  Gambling games authorized.
   The system of wagering on a gambling game as provided by this chapter is legal, when conducted on an excursion gambling boat, gambling structure, or racetrack enclosure at authorized locations by a licensee, or, for internet wagering, when conducted by a licensee pursuant to requirements established by the commission, as provided in this chapter.
    Sec. 3.  Section 99F.4, subsections 14 and 22, Code 2011, are amended to read as follows:
   14.  To require, except for internet wagering, all licensees of gambling game operations to utilize a cashless wagering system whereby all players’ money is converted to tokens, electronic cards, or chips which only can be used for wagering on the excursion gambling boat.
   22.  To require licensees to establish a process to allow a person to be voluntarily excluded for life from an excursion gambling boat and all other licensed facilities under this chapter and chapter 99D, or from engaging in internet wagering conducted by a licensee under this chapter. The process established shall require that a licensee disseminate information regarding persons voluntarily excluded to all licensees under this chapter and chapter 99D. The state and any licensee under this chapter or chapter 99D shall not be liable to any person for any claim which may arise from this process. In addition to any other penalty provided by law, any money or thing of value that has been obtained by, or is owed to, a voluntarily excluded person by a licensee as a result of wagers made by the person after the person has been voluntarily excluded shall not be paid to the person but shall be credited to the general fund of the state.
    Sec. 4.  Section 99F.4, Code 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  27.  To establish requirements for licensees to conduct internet wagering as provided in this chapter.
    Sec. 5.  Section 99F.4A, subsection 1, Code Supplement 2011, is amended to read as follows:
   1.  Upon application, the commission shall license the licensee of a pari-mutuel dog or horse racetrack to operate gambling games at a pari-mutuel racetrack enclosure
 
or to conduct internet wagering subject to the provisions of this chapter and rules adopted pursuant to this chapter relating to gambling except as otherwise provided in this section.
    Sec. 6.  Section 99F.7, subsection 1, Code Supplement 2011, is amended to read as follows:
   1.  If the commission is satisfied that this chapter and its rules adopted under this chapter applicable to licensees have been or will be complied with, the commission shall issue a license for a period of not more than three years to an applicant to own a gambling game operation, to an applicant to operate a gambling structure, and to an applicant to operate an excursion gambling boat. The commission shall decide which of the gambling games authorized under this chapter the commission will permit
 
including whether the licensee can conduct internet wagering. The commission shall decide the number, location, and type of gambling structures and excursion gambling boats licensed under this chapter. The commission shall allow the operation of an excursion boat or moored barge on or within one thousand feet of the high water marks of the rivers, lakes, and reservoirs of this state as established by the commission in consultation with the United States army corps of engineers, the department of natural resources, or other appropriate regulatory agency. The license shall set forth, as applicable, the name of the licensee, the type of license granted, the location of the gambling structure or the place where the excursion gambling boats will operate and dock, and the time and number of days during the excursion season and the off season when gambling may be conducted by the licensee.
    Sec. 7.  Section 99F.9, subsections 3 and 5, Code 2011, are amended to read as follows:
   3.  The licensee may receive wagers only from a person present on a licensed excursion gambling boat, licensed gambling structure, or in a licensed racetrack enclosure, or from a person engaging in internet wagering. 
 
An internet wager may be placed from any location within this state or from any other location where authorized by law, subject to any requirements adopted by the commission.
   5.  A person under the age of twenty-one years shall not
 
engage in internet wagering or make or attempt to make a wager on an excursion gambling boat, gambling structure, or in a racetrack enclosure and shall not be allowed on the gaming floor of an excursion gambling boat or gambling structure or in the wagering area, as defined in section 99D.2, or on the gaming floor of a racetrack enclosure. However, a person eighteen years of age or older may be employed to work on the gaming floor of an excursion gambling boat or gambling structure or in the wagering area or on the gaming floor of a racetrack enclosure. A person who violates this subsection with respect to
 
engaging in internet wagering or making or attempting to make a wager commits a scheduled violation under section 805.8C, subsection 5, paragraph “a”.
    Sec. 8.  Section 99F.15, subsection 3, Code 2011, is amended to read as follows:
   3.  A
 
Except for internet wagering conducted as authorized by this chapter, a person wagering or accepting a wager at any location outside an excursion gambling boat, gambling structure, or a racetrack enclosure is in violation of section 725.7.
EXPLANATION
   This bill permits licensees authorized to conduct gambling games under Code chapter 99F to conduct internet wagering. The bill defines “internet wagering” as a method of wagering by which a person may establish an account, deposit money into the account, and use the account balance for wagering by utilizing electronic communication. The bill provides that internet wagering on gambling games is limited to wagering on poker games.
   Code section 99F.4, concerning powers of the state racing and gaming commission, is amended to provide that the commission establish requirements for internet wagering. The Code section is also amended to provide that the current process that allows a person to be voluntarily excluded from a gambling facility shall also apply to internet wagering.
   Code section 99F.9, concerning wagering, is amended to provide that wagers through internet wagering are authorized and can be made from any location within this state or as authorized by law subject to any requirements adopted by the commission. The Code section is also amended to provide that limits on wagering for persons under the age of 21 at an excursion gambling boat, gambling structure, or racetrack enclosure also apply to internet wagering.