H.F. _____ Section 1. Section 99D.7, subsection 23, Code 2019, is 1 amended to read as follows: 2 23. To establish a process to allow a person to be 3 voluntarily excluded from the wagering area of a racetrack 4 enclosure and from the gaming floor and sports betting wagering 5 area , as defined in section 99F.1 , of all other licensed 6 facilities under this chapter and chapter 99F as provided in 7 this subsection . The process shall provide that an initial 8 request by a person to be voluntarily excluded shall be for 9 a period of five years or life and any subsequent request 10 following any five-year period shall be for a period of five 11 years or life. The process established shall require that 12 licensees be provided electronic access to names and social 13 security numbers of persons voluntarily excluded through a 14 secured interactive internet site maintained by the commission 15 and information regarding persons voluntarily excluded 16 shall be disseminated to all licensees under this chapter 17 and chapter 99F . The names, social security numbers, and 18 information regarding persons voluntarily excluded shall be 19 kept confidential unless otherwise ordered by a court or by 20 another person duly authorized to release such information. 21 The process established shall also require a person requesting 22 to be voluntarily excluded be provided information compiled 23 by the Iowa department of public health on gambling treatment 24 options. The state and any licensee under this chapter or 25 chapter 99F shall not be liable to any person for any claim 26 which may arise from this process. In addition to any other 27 penalty provided by law, any money or thing of value that has 28 been obtained by, or is owed to, a voluntarily excluded person 29 as a result of wagers made by the person after the person has 30 been voluntarily excluded shall be forfeited by the person and 31 shall be credited to the general fund of the state. 32 Sec. 2. Section 99F.1, subsection 1, Code 2019, is amended 33 to read as follows: 34 1. “Adjusted gross receipts” means the gross receipts less 35 -1- LSB 2136YC (3) 88 ec/rn 1/ 11

H.F. _____ winnings paid to wagerers on gambling games . However, “adjusted 1 gross receipts” does not include promotional play receipts 2 received after the date in any fiscal year that the commission 3 determines that the wagering tax imposed pursuant to section 4 99F.11 on all licensees in that fiscal year on promotional 5 play receipts exceeds twenty-five million eight hundred twenty 6 thousand dollars. 7 Sec. 3. Section 99F.1, Code 2019, is amended by adding the 8 following new subsections: 9 NEW SUBSECTION . 23. “Sports betting” means the acceptance 10 of wagers on collegiate or professional sporting events by any 11 system of wagering as authorized by the commission. “Sports 12 betting” does not include wagering on a race as defined in 13 section 99D.2. 14 NEW SUBSECTION . 24. “Sports betting net receipts” means 15 the gross receipts less winnings paid to wagerers on sports 16 betting. 17 NEW SUBSECTION . 25. “Sports betting wagering area” means 18 that portion of an excursion gambling boat, gambling structure, 19 or racetrack enclosure in which sports betting is conducted as 20 designated by the commission. 21 Sec. 4. Section 99F.3, Code 2019, is amended to read as 22 follows: 23 99F.3 Gambling games and sports betting authorized. 24 The system of wagering on a gambling game and sports betting 25 as provided by this chapter is legal, when conducted on an 26 excursion gambling boat, gambling structure, or racetrack 27 enclosure at authorized locations by a licensee as provided in 28 this chapter . 29 Sec. 5. Section 99F.4, subsections 3 and 22, Code 2019, are 30 amended to read as follows: 31 3. To adopt standards under which all excursion gambling 32 boat operations shall be held and standards for the facilities 33 within which the gambling operations are to be held. The 34 commission may authorize the operation of gambling games on an 35 -2- LSB 2136YC (3) 88 ec/rn 2/ 11

H.F. _____ excursion gambling boat and sports betting in a sports betting 1 wagering area which is also licensed to sell or serve alcoholic 2 beverages, wine, or beer as defined in section 123.3 . 3 22. To establish a process to allow a person to be 4 voluntarily excluded from the gaming floor and sports betting 5 wagering area of an excursion gambling boat, from the wagering 6 area, as defined in section 99D.2 , and from the gaming 7 floor and sports betting wagering area of all other licensed 8 facilities under this chapter and chapter 99D as provided in 9 this subsection . The process shall provide that an initial 10 request by a person to be voluntarily excluded shall be for 11 a period of five years or life and any subsequent request 12 following any five-year period shall be for a period of five 13 years or life. The process established shall require that 14 licensees be provided electronic access to names and social 15 security numbers of persons voluntarily excluded through a 16 secured interactive internet site maintained by the commission 17 and information regarding persons voluntarily excluded 18 shall be disseminated to all licensees under this chapter 19 and chapter 99D . The names, social security numbers, and 20 information regarding persons voluntarily excluded shall be 21 kept confidential unless otherwise ordered by a court or by 22 another person duly authorized to release such information. 23 The process established shall also require a person requesting 24 to be voluntarily excluded be provided information compiled 25 by the Iowa department of public health on gambling treatment 26 options. The state and any licensee under this chapter or 27 chapter 99D shall not be liable to any person for any claim 28 which may arise from this process. In addition to any other 29 penalty provided by law, any money or thing of value that has 30 been obtained by, or is owed to, a voluntarily excluded person 31 as a result of wagers made by the person after the person has 32 been voluntarily excluded shall be forfeited by the person and 33 shall be credited to the general fund of the state. 34 Sec. 6. Section 99F.4, Code 2019, is amended by adding the 35 -3- LSB 2136YC (3) 88 ec/rn 3/ 11

H.F. _____ following new subsection: 1 NEW SUBSECTION . 27. To adopt standards under which all 2 sports betting is conducted, to identify occupations within 3 sports betting which require licensing, and to adopt standards 4 for licensing and background qualifications for occupations 5 including establishing fees for the occupational license. 6 All revenue received by the commission under this chapter 7 from license fees and regulatory fees shall be deposited in 8 the general fund of the state and shall be subject to the 9 requirements of section 8.60. 10 Sec. 7. NEW SECTION . 99F.7A Sports betting —— license —— 11 terms and conditions. 12 1. The commission shall, upon application to the 13 commission, issue an exclusive license to conduct or operate 14 sports betting to the Iowa horsemen’s benevolent and protective 15 association, subject to the requirements of this chapter. 16 2. The terms and conditions of a license issued pursuant to 17 this section shall, notwithstanding any provision of law to the 18 contrary, authorize the licensee to conduct advanced deposit 19 sports betting wagering as authorized in section 99F.9 and, 20 pursuant to an agreement with a licensee authorized to conduct 21 gambling games under chapter 99F, sports betting in an area 22 designated as a sports betting wagering area by that facility 23 as authorized by this section. An agreement to conduct sports 24 betting in a sports betting wagering area shall include a 25 provision allocating to the licensee of the gambling facility 26 a minimum of three percent of sports betting adjusted gross 27 receipts from sports betting at the facility for each license 28 year to be distributed by the licensee of the gambling facility 29 for educational, civic, public, charitable, patriotic, or 30 religious uses as defined in section 99B.1. 31 3. A licensee issued a license pursuant to this section 32 shall divide sports betting net proceeds for horse purses 33 pursuant to section 99D.7, subsection 5. For purposes of this 34 subsection, “sports betting net proceeds” means, for a license 35 -4- LSB 2136YC (3) 88 ec/rn 4/ 11

H.F. _____ year, sports betting adjusted gross receipts less taxes paid 1 pursuant to section 99F.11 on sports betting adjusted gross 2 receipts and expenses incurred by the licensee in conducting 3 sports betting. 4 4. A licensee issued a license pursuant to this section 5 shall comply with all requirements of this chapter applicable 6 to licensees unless otherwise inconsistent with the provisions 7 of this section. 8 5. 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 2019, is amended to read as 21 follows: 22 99F.8 Bond of licensee. 23 A licensee licensed under section 99F.7 or 99F.7A shall post 24 a bond to the state of Iowa before the license is issued in a 25 sum as the commission shall fix, with sureties to be approved 26 by the commission. The bond shall be used to guarantee that 27 the 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 -5- LSB 2136YC (3) 88 ec/rn 5/ 11

H.F. _____ 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 2019, 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 2019, 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 may, 13 in an account established with a licensee under section 99F.7A, 14 deposit moneys into the account and use the account balance to 15 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 located within 18 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 in 22 the sports betting wagering area, or from any other location 23 via a telephone-type device or any other electronic means. 24 c. An unlicensed person taking or receiving sports betting 25 wagers from residents of this state is guilty of a class “D” 26 felony. 27 Sec. 11. Section 99F.9, subsection 4, Code 2019, 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 -6- LSB 2136YC (3) 88 ec/rn 6/ 11

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. 12. Section 99F.11, subsection 3, unnumbered paragraph 8 1, Code 2019, is amended to read as follows: 9 The taxes imposed by this section on adjusted gross receipts 10 from gambling games authorized under this chapter shall be paid 11 by the licensee to the treasurer of state within ten days after 12 the close of the day when the wagers were made and shall be 13 distributed as follows: 14 Sec. 13. Section 99F.11, Code 2019, is amended by adding the 15 following new subsection: 16 NEW SUBSECTION . 4. A tax is imposed on the sports betting 17 net receipts received each fiscal year by a licensee under 18 section 99F.7A from sports betting authorized under this 19 chapter at the rate of six and three-quarters percent. The 20 taxes imposed by this subsection for sports betting authorized 21 under this chapter shall be paid by the licensee under 22 section 99F.7A to the treasurer of state as determined by the 23 commission and shall be credited as provided in section 8.57, 24 subsection 5. 25 Sec. 14. Section 99F.15, subsection 1, paragraph c, Code 26 2019, is amended to read as follows: 27 c. Acting, or employing a person to act, as a shill or 28 decoy to encourage participation in a gambling game or sports 29 betting . 30 Sec. 15. Section 99F.15, subsection 4, paragraphs d, h, and 31 i, Code 2019, are amended to read as follows: 32 d. Cheats at a gambling game, including but not limited to 33 committing any act which alters the outcome of the game , or 34 cheats at sports betting . 35 -7- LSB 2136YC (3) 88 ec/rn 7/ 11

H.F. _____ h. Claims, collects, or takes, or attempts to claim, 1 collect, or take, money or anything of value in or from the 2 gambling games or sports betting , with intent to defraud, 3 without having made a wager contingent on winning a gambling 4 game or sports betting wager , or claims, collects, or takes an 5 amount of money or thing of value of greater value than the 6 amount won. 7 i. Knowingly entices or induces a person to go to any place 8 where a gambling game or sports betting is being conducted or 9 operated in violation of the provisions of this chapter with 10 the intent that the other person plays or participates in that 11 gambling game or sports betting . 12 EXPLANATION 13 The inclusion of this explanation does not constitute agreement with 14 the explanation’s substance by the members of the general assembly. 15 This bill authorizes the Iowa horsemen’s benevolent and 16 protective association to conduct sports betting. 17 Code section 99F.1, concerning definitions, is amended. 18 The bill defines “sports betting” as acceptance of wagers 19 on collegiate or professional sporting events, except races 20 as defined in Code chapter 99D, by any system of wagering 21 as authorized by the racing and gaming commission. “Sports 22 betting net receipts” is defined as gross receipts less 23 winnings paid to wagerers on sports betting. “Sports betting 24 wagering area” is defined as that portion of a gambling 25 licensee facility in which sports wagering is conducted as 26 designated by the commission. 27 Code sections 99D.7(23) and 99F.4(22), concerning persons 28 voluntarily excluded from wagering or gaming areas, are amended 29 to include the sports betting wagering area. 30 Code section 99F.3, concerning authorized wagering under 31 Code chapter 99F, is amended to authorize wagering on sports 32 betting. 33 Code section 99F.4, concerning racing and gaming commission 34 powers, is amended to authorize the operation of sports betting 35 -8- LSB 2136YC (3) 88 ec/rn 8/ 11

H.F. _____ in a sports betting wagering area on an excursion gambling boat 1 which is also licensed to serve alcoholic beverages, grants the 2 racing and gaming commission the authority to adopt standards 3 under which sports betting is conducted, and provides that 4 all revenue received by the commission from license fees and 5 regulatory fees for sports betting shall be deposited in the 6 general fund of the state. 7 New Code section 99F.7A provides specific requirements 8 relative to the licensing and operation of sports betting. 9 The bill provides that the commission shall issue a license 10 to conduct or operate sports betting to the Iowa horsemen’s 11 benevolent and protective association upon application to 12 the commission. The bill authorizes the licensee to conduct 13 advanced deposit sports betting wagering as authorized by the 14 bill and, pursuant to an agreement with a licensee authorized 15 to conduct gambling games under Code chapter 99F, sports 16 betting in an area designated as a sports betting wagering 17 area by that facility. The bill provides that an agreement 18 to conduct sports betting in a sports betting wagering area 19 shall include a provision allocating a minimum of 3 percent of 20 sports betting adjusted gross receipts from sports betting at 21 the facility to be distributed by the licensee of the gambling 22 facility for educational, civic, public, charitable, patriotic, 23 or religious uses as defined in Code section 99B.1. The bill 24 further provides that a licensee issued a license pursuant to 25 this Code section shall divide sports betting net proceeds 26 for horse purses pursuant to the provisions of Code section 27 99D.7(5). The bill defines “sports betting net proceeds” as 28 sports betting adjusted gross receipts less taxes paid and 29 expenses incurred by the licensee in conducting sports betting. 30 New Code section 99F.7A also provides that a licensee issued 31 a license to conduct or operate sports betting shall employ 32 commercially reasonable steps to prohibit coaches, athletic 33 trainers, officials, players, participants, or other persons 34 employed in a position with direct involvement with such 35 -9- LSB 2136YC (3) 88 ec/rn 9/ 11

H.F. _____ individuals from sports betting under Code chapter 99F. 1 Code section 99F.8, concerning licensee bonding 2 requirements, is amended to make such requirements applicable 3 to sports betting and a sports betting licensee. 4 Code section 99F.9, concerning wagering on gambling games, 5 is amended to allow a licensee under new Code section 99F.7A 6 to conduct advance deposit sports betting wagering. The bill 7 would allow for an advance deposit wager to be placed in person 8 at a licensed facility authorized to conduct gambling games 9 or from any other location by telephone or other electronic 10 means. The bill defines “advance deposit sports betting 11 wagering” as a form of wagering where an eligible individual 12 creates an account with a sports betting licensee, deposits 13 money into that account, and can use the balance within the 14 account for sports betting wagering. The bill defines an 15 “eligible individual” for purposes of advance deposit sports 16 betting wagering as an individual 21 years of age or older 17 who is located within this state. The bill provides that 18 an unlicensed person taking sports betting wagers from Iowa 19 residents is guilty of a class “D” felony, punishable by 20 confinement for no more than five years and a fine of at least 21 $750 but not more than $7,500. The Code section is also 22 amended to provide that a person under the age of 21 shall 23 not make or attempt to make a wager by advance deposit sports 24 betting wagering. 25 Code section 99F.11, concerning the wagering tax, is 26 amended. The bill provides that the wagering tax on sports 27 betting net receipts received each fiscal year by a sports 28 betting licensee from sports betting at the rate of six and 29 three-quarters percent. The taxes imposed shall be paid by the 30 sports betting licensee to the treasurer of state as determined 31 by the commission and shall be credited as provided in Code 32 section 8.57, subsection 5. 33 Code section 99F.15, concerning certain prohibited 34 activities and penalties, is amended to provide that current 35 -10- LSB 2136YC (3) 88 ec/rn 10/ 11