House File 2445 - Introduced HOUSE FILE 2445 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HSB 641) A BILL FOR An Act excluding certain promotional play receipts from the 1 definition of adjusted gross receipts for purposes of the 2 wagering tax on gambling games and relating to other matters 3 involving gambling games regulation. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 6033HV (2) 86 ec/nh

H.F. 2445 Section 1. Section 99F.1, subsection 1, Code 2016, is 1 amended to read as follows: 2 1. “Adjusted gross receipts” means the gross receipts less 3 winnings paid to wagerers. However, “adjusted gross receipts” 4 does not include promotional play receipts received after the 5 date in any fiscal year that the commission determines that 6 the wagering tax imposed pursuant to section 99F.11 on all 7 licensees in that fiscal year on promotional play receipts 8 exceeds twenty-five million eight hundred twenty thousand 9 dollars. 10 Sec. 2. Section 99F.1, Code 2016, is amended by adding the 11 following new subsection: 12 NEW SUBSECTION . 19A. “Promotional play receipts” means 13 the total sums wagered on gambling games with tokens, chips, 14 electronic credits, or other forms of cashless wagering 15 provided by the licensee without an exchange of money as 16 described in section 99F.9, subsection 3. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanation’s substance by the members of the general assembly. 20 This bill concerns the definition of adjusted gross receipts 21 for purposes of Code chapter 99F governing gambling games. 22 The bill amends the definition of adjusted gross receipts 23 to provide that adjusted gross receipts does not include 24 promotional play receipts received after the date in any 25 fiscal year that the wagering tax on the portion of adjusted 26 gross receipts representing promotional play receipts exceeds 27 $25,820,000. The bill defines promotional play receipts as 28 the total sums wagered on gambling games with tokens, chips, 29 electronic credits, or other forms of cashless wagering 30 provided by a licensee without an exchange of money. 31 The definition of adjusted gross receipts is used, in part, 32 to calculate required charitable contributions pursuant to 33 Code sections 99F.5 and 99F.6, net receipts for purposes of 34 determining annual purses for horse racing at the racetrack in 35 -1- LSB 6033HV (2) 86 ec/nh 1/ 2

H.F. 2445 Polk county pursuant to Code section 99F.6, and the wagering 1 tax pursuant to Code section 99F.11. 2 -2- LSB 6033HV (2) 86 ec/nh 2/ 2