H.F. 2448 Section 1. Section 99D.7, subsection 23, Code 2018, is 1 amended to read as follows: 2 23. To require licensees to establish a process to allow 3 a person to be voluntarily excluded from the wagering area of 4 a racetrack enclosure and from the gaming floor and sports 5 betting wagering area , as defined in section 99F.1 , of all 6 other licensed facilities under this chapter and chapter 99F 7 as provided in this subsection . The process shall provide 8 that an initial request by a person to be voluntarily excluded 9 shall be for a period of five years or life and any subsequent 10 request following any five-year period shall be for a period 11 of five years or life. The process established shall require 12 that a person requesting to be voluntarily excluded be provided 13 information compiled by the Iowa department of public health 14 on gambling treatment options and shall also require that a 15 licensee disseminate information regarding persons voluntarily 16 excluded to all licensees under this chapter and chapter 99F . 17 The state and any licensee under this chapter or chapter 99F 18 shall not be liable to any person for any claim which may arise 19 from this process. In addition to any other penalty provided 20 by law, any money or thing of value that has been obtained by, 21 or is owed to, a voluntarily excluded person by a licensee as a 22 result of wagers made by the person after the person has been 23 voluntarily excluded shall not be paid to the person but shall 24 be credited to the general fund of the state. 25 Sec. 2. Section 99F.1, subsection 1, Code 2018, is amended 26 to read as follows: 27 1. “Adjusted gross receipts” means the gross receipts less 28 winnings paid to wagerers on gambling games . “Adjusted gross 29 receipts” also includes an amount equal to one-third of sports 30 betting net receipts. However, “adjusted gross receipts” 31 does not include promotional play receipts received after the 32 date in any fiscal year that the commission determines that 33 the wagering tax imposed pursuant to section 99F.11 on all 34 licensees in that fiscal year on promotional play receipts 35 -1- LSB 5640HV (2) 87 ec/rn 1/ 10

H.F. 2448 exceeds twenty-five million eight hundred twenty thousand 1 dollars. 2 Sec. 3. Section 99F.1, Code 2018, is amended by adding the 3 following new subsections: 4 NEW SUBSECTION . 23. “Sports betting” means the acceptance 5 of wagers on collegiate or professional sporting events by any 6 system of wagering as authorized by the commission. “Sports 7 betting” does not include wagering on a race as defined in 8 section 99D.2. 9 NEW SUBSECTION . 24. “Sports betting net receipts” means 10 the gross receipts less winnings paid to wagerers on sports 11 betting. 12 NEW SUBSECTION . 25. “Sports betting wagering area” means 13 that portion of an excursion gambling boat, gambling structure, 14 or racetrack enclosure in which sports betting is conducted as 15 designated by the commission. 16 Sec. 4. Section 99F.3, Code 2018, is amended to read as 17 follows: 18 99F.3 Gambling games and sports betting authorized. 19 The system of wagering on a gambling game and sports betting 20 as provided by this chapter is legal, when conducted on an 21 excursion gambling boat, gambling structure, or racetrack 22 enclosure at authorized locations by a licensee as provided in 23 this chapter . 24 Sec. 5. Section 99F.4, subsections 3 and 22, Code 2018, are 25 amended to read as follows: 26 3. To adopt standards under which all excursion gambling 27 boat operations shall be held and standards for the facilities 28 within which the gambling operations are to be held. The 29 commission may authorize the operation of gambling games and 30 sports betting on an excursion gambling boat which is also 31 licensed to sell or serve alcoholic beverages, wine, or beer as 32 defined in section 123.3 . 33 22. To require licensees to establish a process to allow 34 a person to be voluntarily excluded from the gaming floor and 35 -2- LSB 5640HV (2) 87 ec/rn 2/ 10

H.F. 2448 the sports betting wagering area of an excursion gambling boat 1 and from the wagering area, as defined in section 99D.2 , and 2 the gaming floor and the sports betting wagering area of all 3 other licensed facilities under this chapter and chapter 99D 4 as provided in this subsection . The process shall provide 5 that an initial request by a person to be voluntarily excluded 6 shall be for a period of five years or life and any subsequent 7 request following any five-year period shall be for a period 8 of five years or life. The process established shall require 9 that a person requesting to be voluntarily excluded be provided 10 information compiled by the Iowa department of public health 11 on gambling treatment options and shall also require that a 12 licensee disseminate information regarding persons voluntarily 13 excluded to all licensees under this chapter and chapter 99D . 14 The state and any licensee under this chapter or chapter 99D 15 shall not be liable to any person for any claim which may arise 16 from this process. In addition to any other penalty provided 17 by law, any money or thing of value that has been obtained by, 18 or is owed to, a voluntarily excluded person by a licensee as a 19 result of wagers made by the person after the person has been 20 voluntarily excluded shall not be paid to the person but shall 21 be credited to the general fund of the state. 22 Sec. 6. Section 99F.4, Code 2018, is amended by adding the 23 following new subsection: 24 NEW SUBSECTION . 27. To adopt standards under which all 25 sports betting is conducted. 26 Sec. 7. NEW SECTION . 99F.7A Sports betting —— license —— 27 terms and conditions —— fees. 28 1. The commission shall, upon payment of an initial license 29 fee of twenty-five thousand dollars and submission of an 30 application to the commission, issue a license to conduct or 31 operate sports betting to a licensee authorized to conduct or 32 operate gambling games under section 99F.4A or 99F.7, subject 33 to the requirements of this chapter. The annual renewal fee 34 for a license to conduct or operate sports betting shall be 35 -3- LSB 5640HV (2) 87 ec/rn 3/ 10

H.F. 2448 fifteen thousand dollars. Of the moneys collected by the 1 commission from the license fees paid under this section, an 2 amount equal to five thousand dollars of the initial license 3 fee and five thousand dollars of the annual renewal fee shall 4 be considered repayment receipts as defined in section 8.2. 5 The remainder of the moneys collected by the commission from 6 fees paid under this subsection shall be deposited in the 7 rebuild Iowa infrastructure fund created in section 8.57. 8 2. A licensee issued a license to conduct or operate sports 9 betting under this section shall employ commercially reasonable 10 steps to prohibit coaches, athletic trainers, officials, 11 players, or other individuals who participate in a collegiate 12 or professional sporting event that is the subject of sports 13 betting from sports betting under this chapter. In addition, a 14 licensee shall employ commercially reasonable steps to prohibit 15 persons who are employed in a position with direct involvement 16 with coaches, players, athletic trainers, officials, players, 17 or participants in a collegiate or professional sporting event 18 that is the subject of sports betting from sports betting under 19 this chapter. 20 Sec. 8. Section 99F.8, Code 2018, is amended to read as 21 follows: 22 99F.8 Bond of licensee. 23 A licensee licensed under section 99F.7 shall post a bond 24 to the state of Iowa before the license is issued in a sum 25 as the commission shall fix, with sureties to be approved by 26 the commission. The bond shall be used to guarantee that the 27 licensee faithfully makes the payments, keeps its books and 28 records and makes reports, and conducts its gambling games and 29 sports betting in conformity with this chapter and the rules 30 adopted by the commission. The bond shall not be canceled by 31 a surety on less than thirty days’ notice in writing to the 32 commission. If a bond is canceled and the licensee fails to 33 file a new bond with the commission in the required amount on 34 or before the effective date of cancellation, the licensee’s 35 -4- LSB 5640HV (2) 87 ec/rn 4/ 10

H.F. 2448 license shall be revoked. The total and aggregate liability 1 of the surety on the bond is limited to the amount specified in 2 the bond. 3 Sec. 9. Section 99F.9, subsection 1, Code 2018, is amended 4 to read as follows: 5 1. Except as permitted in this section , the licensee shall 6 permit no form of wagering on gambling games or sports betting . 7 Sec. 10. Section 99F.9, Code 2018, is amended by adding the 8 following new subsection: 9 NEW SUBSECTION . 3A. a. For the purposes of this section, 10 unless the context otherwise requires: 11 (1) “Advance deposit sports betting wagering” means a method 12 of sports betting wagering in which an eligible individual 13 may, in an account established in person with a licensee under 14 section 99F.7A, deposit moneys into the account and use the 15 account balance to pay for sports betting wagering. 16 (2) “Eligible individual” means an individual who is at 17 least twenty-one years of age or older who is either a resident 18 of this state or who is domiciled in this state. 19 b. The commission may authorize a licensee under section 20 99F.7A to conduct advance deposit sports betting wagering. An 21 advance deposit sports betting wager may be placed in person 22 on a licensed excursion gambling boat, licensed gambling 23 structure, or in a licensed racetrack enclosure, or from 24 any other location via a telephone-type device or any other 25 electronic means. 26 c. An unlicensed person taking or receiving sports betting 27 wagers from residents of this state is guilty of a class “D” 28 felony. 29 Sec. 11. Section 99F.9, subsection 4, Code 2018, is amended 30 to read as follows: 31 4. A person under the age of twenty-one years shall not make 32 or attempt to make a wager pursuant to subsection 3A or on an 33 excursion gambling boat, gambling structure, or in a racetrack 34 enclosure and shall not be allowed on the gaming floor of 35 -5- LSB 5640HV (2) 87 ec/rn 5/ 10

H.F. 2448 an excursion gambling boat or gambling structure or in the 1 wagering area, as defined in section 99D.2 , or on the gaming 2 floor of a racetrack enclosure. However, a person eighteen 3 years of age or older may be employed to work on the gaming 4 floor of an excursion gambling boat or gambling structure or 5 in the wagering area or on the gaming floor of a racetrack 6 enclosure. A person who violates this subsection with respect 7 to making or attempting to make a wager commits a scheduled 8 violation under section 805.8C, subsection 5 , paragraph “a” . 9 Sec. 12. Section 99F.11, subsection 1, Code 2018, is amended 10 to read as follows: 11 1. A tax is imposed on the adjusted gross receipts received 12 each fiscal year from gambling games authorized under this 13 chapter at the rate of five percent on the first one million 14 dollars of adjusted gross receipts and at the rate of ten 15 percent on the next two million dollars of adjusted gross 16 receipts. 17 Sec. 13. Section 99F.11, subsection 2, paragraph b, 18 subparagraph (2), Code 2018, is amended to read as follows: 19 (2) If the licensee of the racetrack enclosure has been 20 issued a table games license during the fiscal year or prior 21 fiscal year and the adjusted gross receipts from gambling 22 games of the licensee in the prior fiscal year were one 23 hundred million dollars or more, twenty-two percent on adjusted 24 gross receipts received prior to the operational date , and 25 twenty-four percent on adjusted gross receipts from gambling 26 games and twenty-two percent on adjusted gross receipts from 27 sports betting received on or after the operational date. For 28 purposes of this subparagraph, the operational date is the date 29 the commission determines table games became operational at the 30 racetrack enclosure. 31 Sec. 14. Section 99F.11, subsection 2, paragraph c, Code 32 2018, is amended to read as follows: 33 c. If the licensee is a racetrack enclosure conducting 34 gambling games and no licensee that is an excursion gambling 35 -6- LSB 5640HV (2) 87 ec/rn 6/ 10

H.F. 2448 boat or gambling structure is located in the same county, 1 twenty-four percent on adjusted gross receipts from gambling 2 games and twenty-two percent on adjusted gross receipts from 3 sports betting . 4 Sec. 15. Section 99F.15, subsection 1, paragraph c, Code 5 2018, is amended to read as follows: 6 c. Acting, or employing a person to act, as a shill or 7 decoy to encourage participation in a gambling game or sports 8 betting . 9 Sec. 16. Section 99F.15, subsection 4, paragraphs d, h, and 10 i, Code 2018, are amended to read as follows: 11 d. Cheats at a gambling game, including but not limited to 12 committing any act which alters the outcome of the game , or 13 cheats at sports betting . 14 h. Claims, collects, or takes, or attempts to claim, 15 collect, or take, money or anything of value in or from the 16 gambling games or sports betting , with intent to defraud, 17 without having made a wager contingent on winning a gambling 18 game or sports betting wager , or claims, collects, or takes an 19 amount of money or thing of value of greater value than the 20 amount won. 21 i. Knowingly entices or induces a person to go to any place 22 where a gambling game or sports betting is being conducted or 23 operated in violation of the provisions of this chapter with 24 the intent that the other person plays or participates in that 25 gambling game or sports betting . 26 Sec. 17. CONTINGENT EFFECTIVE DATE. This Act takes effect 27 forty-five days after the earlier of the date that the federal 28 Professional and Amateur Sports Protection Act of 1992, 28 29 U.S.C. §3701 to 3704, is rendered void and unenforceable as 30 it relates to this Act as a result of a final judgment of the 31 Supreme Court of the United States, or is repealed or otherwise 32 modified by the Congress of the United States in a manner that 33 does not prohibit sports betting in this state. The racing 34 and gaming commission shall submit a notice for publication in 35 -7- LSB 5640HV (2) 87 ec/rn 7/ 10

H.F. 2448 the Iowa administrative bulletin, with a written copy provided 1 to the Iowa Code editor, specifying the effective date of this 2 Act. 3 EXPLANATION 4 The inclusion of this explanation does not constitute agreement with 5 the explanation’s substance by the members of the general assembly. 6 This bill authorizes gambling licensees to conduct sports 7 betting. 8 Code section 99F.1, concerning definitions, is amended. 9 Code section 99F.1(1), defining adjusted gross receipts, is 10 amended to provide that adjusted gross receipts includes an 11 amount equal to one-third of sports betting net receipts. 12 The bill defines “sports betting” as acceptance of wagers 13 on collegiate or professional sporting events, except races 14 as defined in Code chapter 99D, by any system of wagering 15 as authorized by the racing and gaming commission. “Sports 16 betting net receipts” is defined as gross receipts less 17 winnings paid to wagerers on sports betting. “Sports betting 18 wagering area” is defined as that portion of a gambling 19 licensee facility in which sports wagering is conducted as 20 designated by the commission. 21 Code sections 99D.7(23) and 99F.4(22), concerning persons 22 voluntarily excluded from wagering or gaming areas, are amended 23 to include the sports betting wagering area. 24 Code section 99F.3, concerning authorized wagering under 25 Code chapter 99F, is amended to authorize wagering on sports 26 betting. 27 Code section 99F.4, concerning racing and gaming commission 28 powers, is amended to authorize the operation of sports betting 29 on an excursion gambling boat which is also licensed to serve 30 alcoholic beverages and grants the racing and gaming commission 31 the authority to adopt standards under which sports betting is 32 conducted. 33 New Code section 99F.7A provides specific requirements 34 relative to the licensing, operation, and fees applicable to 35 -8- LSB 5640HV (2) 87 ec/rn 8/ 10

H.F. 2448 sports betting. The bill provides that the commission shall, 1 upon payment of an initial license fee of $25,000, issue a 2 license to conduct or operate sports betting to a licensee 3 authorized to conduct or operate gambling games under Code 4 section 99F.4A or 99F.7. The bill provides for an annual 5 renewal fee of $15,000 and further provides that of the fees 6 collected by the racing and gaming commission, $5,000 of the 7 initial license fee and of each renewal fee shall be considered 8 repayment receipts with the remainder deposited in the rebuild 9 Iowa infrastructure fund. The new Code section also provides 10 that a licensee issued a license to conduct or operate sports 11 betting shall employ commercially reasonable steps to prohibit 12 coaches, athletic trainers, officials, players, participants, 13 or other persons employed in a position with direct involvement 14 with such individuals from sports betting under this Code 15 chapter. 16 Code section 99F.8, concerning licensee bonding 17 requirements, is amended to make such requirements applicable 18 to sports betting. 19 Code section 99F.9, concerning wagering on gambling games, 20 is amended to allow the commission to authorize gambling game 21 licensees under Code chapter 99F to conduct advance deposit 22 sports betting wagering. The bill would allow for an advance 23 deposit wager to be placed in person at a licensed facility 24 authorized to conduct gambling games or from any other location 25 by telephone or other electronic means. The bill defines 26 “advance deposit sports betting wagering” as a form of wagering 27 where an eligible individual creates an account in person with 28 a licensee, deposits money into that account, and can use the 29 balance within the account for sports betting wagering. The 30 bill defines an “eligible individual” for purposes of advance 31 deposit sports betting wagering as an individual 21 years of 32 age or older who resides or is domiciled in this state. The 33 bill provides that an unlicensed person taking sports betting 34 wagers from Iowa residents is guilty of a class “D” felony, 35 -9- LSB 5640HV (2) 87 ec/rn 9/ 10

H.F. 2448 punishable by confinement for no more than five years and a 1 fine of at least $750 but not more than $7,500. The Code 2 section is also amended to provide that a person under the age 3 of 21 shall not make or attempt to make a wager by advance 4 deposit sports betting wagering. 5 Code section 99F.11, concerning the wagering tax, is 6 amended. The bill provides that the wagering tax applies 7 to adjusted gross receipts and not just the adjusted gross 8 receipts on gambling games. In addition, the bill provides 9 that the tax rate imposed each fiscal year on any amount of 10 adjusted gross receipts on sports betting over $3 million shall 11 be 22 percent for all licensees. The bill does not change the 12 current 24 percent tax rate on the adjusted gross receipts for 13 gambling games at certain racetrack enclosures. 14 Code section 99F.15, concerning certain prohibited 15 activities and penalties, is amended to provide that current 16 prohibitions on cheating at a gambling game, claiming anything 17 of value from a gambling game with intent to defraud, and 18 knowingly enticing a person to go where a gambling game is 19 conducted in violation of Code chapter 99F also applies to 20 sports betting. 21 The bill takes effect 45 days after the earlier of the date 22 that the federal Professional and Amateur Sports Protection Act 23 is rendered void and unenforceable as it relates to the bill 24 by judgment of the supreme court of the United States, or is 25 repealed or otherwise modified by the Congress of the United 26 States in a manner that does not prohibit sports betting in 27 this state. The bill requires the racing and gaming commission 28 to submit a notice for publication in the Iowa administrative 29 bulletin, with a written copy provided to the Code editor, 30 specifying the effective date of the bill. 31 -10- LSB 5640HV (2) 87 ec/rn 10/ 10