HSB 592 (LSB 5640YC (3) 87)

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 licensees, making penalties applicable, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

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