House
Study
Bill
592
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
STATE
GOVERNMENT
BILL
BY
CHAIRPERSON
RIZER)
A
BILL
FOR
An
Act
relating
to
the
conduct
of
sports
betting
by
gambling
1
licensees,
making
penalties
applicable,
and
including
2
effective
date
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
5640YC
(3)
87
ec/rn
H.F.
_____
Section
1.
Section
99F.1,
subsection
1,
Code
2018,
is
1
amended
to
read
as
follows:
2
1.
“Adjusted
gross
receipts”
means
the
gross
receipts
less
3
winnings
paid
to
wagerers
on
gambling
games
other
than
sports
4
betting
.
“Adjusted
gross
receipts”
also
includes
an
amount
5
equal
to
one-third
of
sports
betting
net
receipts.
However,
6
“adjusted
gross
receipts”
does
not
include
promotional
play
7
receipts
received
after
the
date
in
any
fiscal
year
that
the
8
commission
determines
that
the
wagering
tax
imposed
pursuant
9
to
section
99F.11
on
all
licensees
in
that
fiscal
year
on
10
promotional
play
receipts
exceeds
twenty-five
million
eight
11
hundred
twenty
thousand
dollars.
12
Sec.
2.
Section
99F.1,
subsection
12,
Code
2018,
is
amended
13
to
read
as
follows:
14
12.
“Gambling
game”
means
any
game
of
chance
authorized
by
15
the
commission.
However,
for
racetrack
enclosures,
“gambling
16
game”
does
not
include
table
games
of
chance
or
video
machines
17
which
simulate
table
games
of
chance,
unless
otherwise
18
authorized
by
this
chapter
.
“Gambling
game”
does
not
include
19
includes
sports
betting
as
authorized
by
the
commission
.
20
Sec.
3.
Section
99F.1,
Code
2018,
is
amended
by
adding
the
21
following
new
subsections:
22
NEW
SUBSECTION
.
23.
“Sports
betting”
means
the
acceptance
23
of
wagers
on
collegiate
or
professional
sporting
events
by
any
24
system
of
wagering
as
authorized
by
the
commission.
“Sports
25
betting”
does
not
include
wagering
on
a
race
as
defined
in
26
section
99D.2.
27
NEW
SUBSECTION
.
24.
“Sports
betting
net
receipts”
means
28
winnings
paid
to
wagerers
on
sports
betting
less
amounts
paid
29
to
others
as
authorized
by
the
commission.
30
Sec.
4.
Section
99F.9,
subsection
2,
Code
2018,
is
amended
31
to
read
as
follows:
32
2.
The
Except
as
provided
in
subsection
3A,
the
licensee
33
may
receive
wagers
only
from
a
person
present
on
a
licensed
34
excursion
gambling
boat,
licensed
gambling
structure,
or
in
a
35
-1-
LSB
5640YC
(3)
87
ec/rn
1/
5
H.F.
_____
licensed
racetrack
enclosure.
1
Sec.
5.
Section
99F.9,
Code
2018,
is
amended
by
adding
the
2
following
new
subsection:
3
NEW
SUBSECTION
.
3A.
a.
For
the
purposes
of
this
section,
4
unless
the
context
otherwise
requires:
5
(1)
“Advance
deposit
sports
betting
wagering”
means
a
method
6
of
sports
betting
wagering
in
which
an
individual
may
establish
7
an
account,
deposit
money
into
the
account,
and
use
the
account
8
balance
to
pay
for
sports
betting
wagering.
9
(2)
“Advance
deposit
sports
betting
wagering
operator”
means
10
an
entity
licensed
by
the
commission
who
has
entered
into
an
11
agreement
with
the
licensee
to
provide
advance
deposit
sports
12
betting
wagering.
13
b.
The
commission
may
authorize
a
gambling
game
licensee
to
14
conduct
advance
deposit
sports
betting
wagering.
An
advance
15
deposit
sports
betting
wager
may
be
placed
in
person
on
a
16
licensed
excursion
gambling
boat,
licensed
gambling
structure,
17
or
in
a
licensed
racetrack
enclosure,
or
from
any
other
18
location
via
a
telephone-type
device
or
any
other
electronic
19
means.
The
commission
may
also
issue
an
advance
deposit
20
wagering
operator
license,
subject
to
the
terms
established
by
21
the
commission,
to
an
entity
who
complies
with
this
subsection
22
and
section
99F.6.
23
c.
An
unlicensed
advance
deposit
sports
betting
wagering
24
operator
or
an
individual
taking
or
receiving
sports
betting
25
wagers
from
residents
of
this
state
is
guilty
of
a
class
“D”
26
felony.
27
Sec.
6.
Section
99F.9,
subsection
4,
Code
2018,
is
amended
28
to
read
as
follows:
29
4.
A
person
under
the
age
of
twenty-one
years
shall
not
make
30
or
attempt
to
make
a
wager
pursuant
to
subsection
3A
or
on
an
31
excursion
gambling
boat,
gambling
structure,
or
in
a
racetrack
32
enclosure
and
shall
not
be
allowed
on
the
gaming
floor
of
33
an
excursion
gambling
boat
or
gambling
structure
or
in
the
34
wagering
area,
as
defined
in
section
99D.2
,
or
on
the
gaming
35
-2-
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5640YC
(3)
87
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2/
5
H.F.
_____
floor
of
a
racetrack
enclosure.
However,
a
person
eighteen
1
years
of
age
or
older
may
be
employed
to
work
on
the
gaming
2
floor
of
an
excursion
gambling
boat
or
gambling
structure
or
3
in
the
wagering
area
or
on
the
gaming
floor
of
a
racetrack
4
enclosure.
A
person
who
violates
this
subsection
with
respect
5
to
making
or
attempting
to
make
a
wager
commits
a
scheduled
6
violation
under
section
805.8C,
subsection
5
,
paragraph
“a”
.
7
Sec.
7.
Section
99F.19,
Code
2018,
is
amended
by
adding
the
8
following
new
subsection:
9
NEW
SUBSECTION
.
8.
For
purposes
of
this
section,
“licensee”
10
shall
also
include
an
advance
deposit
sports
betting
wagering
11
operator.
12
Sec.
8.
CONTINGENT
EFFECTIVE
DATE.
This
Act
takes
effect
13
on
the
earlier
of
the
date
that
the
federal
Professional
and
14
Amateur
Sports
Protection
Act
of
1992,
28
U.S.C.
§3701
to
3704,
15
is
rendered
void
and
unenforceable
as
it
relates
to
this
Act
as
16
a
result
of
a
final
judgment
of
the
Supreme
Court
of
the
United
17
States,
or
is
repealed
or
otherwise
modified
by
the
Congress
18
of
the
United
States
in
a
manner
that
does
not
prohibit
sports
19
betting
in
this
state.
The
racing
and
gaming
commission
shall
20
submit
a
notice
for
publication
in
the
Iowa
administrative
21
bulletin,
with
a
written
copy
provided
to
the
Iowa
Code
editor,
22
specifying
the
effective
date
of
this
Act.
23
EXPLANATION
24
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
25
the
explanation’s
substance
by
the
members
of
the
general
assembly.
26
This
bill
authorizes
gambling
licensees
to
conduct
sports
27
betting.
28
Code
section
99F.1,
concerning
definitions,
is
amended.
The
29
bill
adds
definitions
for
sports
betting
and
sports
betting
net
30
receipts.
The
bill
defines
sports
betting
as
acceptance
of
31
wagers
on
collegiate
or
professional
sporting
events,
except
32
races
as
defined
in
Code
chapter
99D,
by
any
system
of
wagering
33
as
authorized
by
the
racing
and
gaming
commission.
Sports
34
betting
net
receipts
is
defined
as
winnings
paid
to
wagerers
35
-3-
LSB
5640YC
(3)
87
ec/rn
3/
5
H.F.
_____
on
sports
betting
less
amounts
paid
to
others
as
authorized
by
1
the
commission.
2
Code
section
99F.1(1),
defining
adjusted
gross
receipts,
is
3
amended
to
provide
that
adjusted
gross
receipts
includes
an
4
amount
equal
to
one-third
of
sports
betting
net
receipts.
5
Code
section
99F.1(12),
defining
gambling
game,
is
amended
6
to
provide
that
gambling
game
includes
sports
betting
as
7
authorized
by
the
commission.
8
Code
section
99F.9,
concerning
wagering
on
gambling
games,
9
is
amended
to
allow
the
commission
to
authorize
gambling
game
10
licensees
under
Code
chapter
99F
to
conduct
advance
deposit
11
sports
betting
wagering.
The
bill
would
allow
for
an
advance
12
deposit
wager
to
be
placed
in
person
at
a
licensed
facility
13
authorized
to
conduct
gambling
games
or
from
any
other
location
14
by
telephone
or
other
electronic
means.
The
bill
defines
15
advance
deposit
sports
betting
wagering
as
a
form
of
wagering
16
where
an
individual
creates
an
account,
deposits
money
into
17
that
account,
and
can
use
the
balance
within
the
account
for
18
sports
betting
wagering.
The
bill
also
allows
the
commission
19
to
issue
advance
deposit
sports
betting
wagering
operation
20
licenses
to
entities
which
have
entered
into
an
agreement
21
with
the
commission
to
provide
advance
deposit
sports
betting
22
wagering.
The
bill
provides
that
an
unlicensed
advance
deposit
23
sports
betting
wagering
operator
or
an
individual
taking
sports
24
betting
wagers
from
Iowa
residents
is
guilty
of
a
class
“D”
25
felony,
punishable
by
confinement
for
no
more
than
five
years
26
and
a
fine
of
at
least
$750
but
not
more
than
$7,500.
The
27
Code
section
is
also
amended
to
provide
that
a
person
under
28
the
age
of
21
shall
not
make
or
attempt
to
make
a
wager
by
29
advance
deposit
sports
betting
wagering.
The
bill
also
amends
30
Code
section
99F.19
to
provide
that
an
advance
deposit
sports
31
betting
wagering
operator
is
a
licensee
for
purposes
of
the
32
setoff
provisions
established
in
that
Code
section.
33
The
bill
takes
effect
upon
the
earlier
of
the
date
that
34
the
federal
Professional
and
Amateur
Sports
Protection
Act
35
-4-
LSB
5640YC
(3)
87
ec/rn
4/
5
H.F.
_____
is
rendered
void
and
unenforceable
as
it
relates
to
the
bill
1
by
judgment
of
the
Supreme
Court
of
the
United
States,
or
is
2
repealed
or
otherwise
modified
by
the
Congress
of
the
United
3
States
in
a
manner
that
does
not
prohibit
sports
betting
in
4
this
state.
The
bill
requires
the
racing
and
gaming
commission
5
to
submit
a
notice
for
publication
in
the
Iowa
administrative
6
bulletin,
with
a
written
copy
provided
to
the
Iowa
Code
editor,
7
specifying
the
effective
date
of
the
bill.
8
-5-
LSB
5640YC
(3)
87
ec/rn
5/
5