Senate
File
617
-
Introduced
SENATE
FILE
617
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
SF
366)
(SUCCESSOR
TO
SSB
1168)
A
BILL
FOR
An
Act
relating
to
gambling
regulation
and
wagering,
by
1
providing
for
sports
wagering
and
fantasy
sports
contests,
2
providing
for
taxes
and
fees,
making
penalties
applicable,
3
and
including
implementation
and
effective
date
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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2133SZ
(5)
88
ec/rn
S.F.
617
DIVISION
I
1
SPORTS
WAGERING
2
Section
1.
Section
99D.7,
subsection
23,
Code
2019,
is
3
amended
to
read
as
follows:
4
23.
To
establish
a
process
to
allow
a
person
to
be
5
voluntarily
excluded
from
advance
deposit
wagering
as
defined
6
in
section
99D.11,
from
an
internet
fantasy
sports
contest
7
as
defined
in
section
99E.1,
from
advance
deposit
sports
8
wagering
as
defined
in
section
99F.9,
from
the
wagering
area
9
of
a
racetrack
enclosure
and
from
the
gaming
floor
and
sports
10
wagering
area
,
as
defined
in
section
99F.1
,
of
all
other
11
licensed
facilities
under
this
chapter
and
chapter
99F
as
12
provided
in
this
subsection
.
The
process
shall
provide
that
13
an
initial
request
by
a
person
to
be
voluntarily
excluded
14
shall
be
for
a
period
of
five
years
or
life
and
any
subsequent
15
request
following
any
five-year
period
shall
be
for
a
period
16
of
five
years
or
life.
The
process
established
shall
require
17
that
licensees
be
provided
electronic
access
to
names
and
18
social
security
numbers
of
persons
voluntarily
excluded
19
through
a
secured
interactive
internet
site
maintained
by
20
the
commission
and
information
regarding
persons
voluntarily
21
excluded
shall
be
disseminated
to
all
licensees
under
this
22
chapter
and
chapter
99F
.
The
names,
social
security
numbers,
23
and
information
regarding
persons
voluntarily
excluded
shall
24
be
kept
confidential
unless
otherwise
ordered
by
a
court
or
by
25
another
person
duly
authorized
to
release
such
information.
26
The
process
established
shall
also
require
a
person
requesting
27
to
be
voluntarily
excluded
be
provided
information
compiled
28
by
the
Iowa
department
of
public
health
on
gambling
treatment
29
options.
The
state
and
any
licensee
under
this
chapter
or
30
chapter
99F
shall
not
be
liable
to
any
person
for
any
claim
31
which
may
arise
from
this
process.
In
addition
to
any
other
32
penalty
provided
by
law,
any
money
or
thing
of
value
that
has
33
been
obtained
by,
or
is
owed
to,
a
voluntarily
excluded
person
34
as
a
result
of
wagers
made
by
the
person
after
the
person
has
35
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been
voluntarily
excluded
shall
be
forfeited
by
the
person
and
1
shall
be
credited
to
the
general
fund
of
the
state.
2
Sec.
2.
Section
99F.1,
subsection
1,
Code
2019,
is
amended
3
to
read
as
follows:
4
1.
“Adjusted
gross
receipts”
means
the
gross
receipts
less
5
winnings
paid
to
wagerers
on
gambling
games
.
However,
“adjusted
6
gross
receipts”
does
not
include
promotional
play
receipts
7
received
after
the
date
in
any
fiscal
year
that
the
commission
8
determines
that
the
wagering
tax
imposed
pursuant
to
section
9
99F.11
on
all
licensees
in
that
fiscal
year
on
promotional
10
play
receipts
exceeds
twenty-five
million
eight
hundred
twenty
11
thousand
dollars.
12
Sec.
3.
Section
99F.1,
Code
2019,
is
amended
by
adding
the
13
following
new
subsections:
14
NEW
SUBSECTION
.
2A.
“Authorized
sporting
event”
means
15
a
professional
sporting
event,
collegiate
sporting
event,
16
international
sporting
event,
or
professional
motor
race
17
event.
“Authorized
sporting
event”
does
not
include
a
race
as
18
defined
in
section
99D.2,
a
fantasy
sports
contest
as
defined
19
in
section
99E.1,
minor
league
sporting
event,
or
any
athletic
20
event
or
competition
of
an
interscholastic
sport
as
defined
in
21
section
9A.102.
22
NEW
SUBSECTION
.
4A.
“Collegiate
sporting
event”
means
an
23
athletic
event
or
competition
of
an
intercollegiate
sport
as
24
defined
in
section
9A.102.
25
NEW
SUBSECTION
.
16A.
“International
sporting
event”
means
26
an
international
team
or
individual
sporting
event
governed
by
27
an
international
sports
federation
or
sports
governing
body,
28
including
sporting
events
governed
by
the
international
olympic
29
committee
and
the
international
federation
of
association
30
football.
31
NEW
SUBSECTION
.
18A.
“Minor
league
sporting
event”
means
32
a
sporting
event
conducted
by
a
sports
league
which
is
not
33
regarded
as
the
premier
league
in
the
sport
as
determined
by
34
the
commission.
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617
NEW
SUBSECTION
.
19A.
“Professional
sporting
event”
means
an
1
event,
excluding
a
minor
league
sporting
event,
at
which
two
2
or
more
persons
participate
in
sports
or
athletic
events
and
3
receive
compensation
in
excess
of
actual
expenses
for
their
4
participation
in
such
event.
5
NEW
SUBSECTION
.
23.
“Sports
wagering”
means
the
acceptance
6
of
wagers
on
an
authorized
sporting
event
by
any
system
of
7
wagering
as
authorized
by
the
commission.
“Sports
wagering”
8
does
not
include
placing
a
wager
on
the
performance
or
9
nonperformance
of
any
individual
athlete
participating
in
10
a
single
game
or
match
of
a
collegiate
sporting
event
in
11
which
a
collegiate
team
from
this
state
is
a
participant,
or
12
placing
a
wager
on
the
performance
of
athletes
in
an
individual
13
international
sporting
event
governed
by
the
international
14
olympic
committee
in
which
any
participant
in
the
international
15
sporting
event
is
under
eighteen
years
of
age.
16
NEW
SUBSECTION
.
24.
“Sports
wagering
area”
means
an
area,
17
as
designated
by
the
commission,
in
which
sports
wagering
is
18
conducted.
19
NEW
SUBSECTION
.
25.
“Sports
wagering
net
receipts”
means
20
the
gross
receipts
less
winnings
paid
to
wagerers
on
sports
21
wagering.
22
Sec.
4.
Section
99F.1,
subsection
17,
Code
2019,
is
amended
23
to
read
as
follows:
24
17.
“Licensee”
means
any
person
licensed
under
section
99F.7
25
or
99F.7A
.
26
Sec.
5.
Section
99F.3,
Code
2019,
is
amended
to
read
as
27
follows:
28
99F.3
Gambling
games
and
sports
wagering
authorized.
29
The
system
of
wagering
on
a
gambling
game
and
sports
wagering
30
as
provided
by
this
chapter
is
legal,
when
conducted
on
an
31
excursion
gambling
boat,
gambling
structure,
or
racetrack
32
enclosure
at
authorized
locations
by
a
licensee
as
provided
33
in
this
chapter
.
34
Sec.
6.
Section
99F.4,
subsections
3
and
22,
Code
2019,
are
35
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617
amended
to
read
as
follows:
1
3.
To
adopt
standards
under
which
all
excursion
gambling
2
boat
operations
shall
be
held
and
standards
for
the
facilities
3
within
which
the
gambling
operations
are
to
be
held.
The
4
commission
may
authorize
the
operation
of
gambling
games
on
5
an
excursion
gambling
boat
and
sports
wagering
in
a
sports
6
wagering
area
which
is
also
licensed
to
sell
or
serve
alcoholic
7
beverages,
wine,
or
beer
as
defined
in
section
123.3
.
8
22.
To
establish
a
process
to
allow
a
person
to
be
9
voluntarily
excluded
from
advance
deposit
wagering
as
defined
10
in
section
99D.11,
from
an
internet
fantasy
sports
contest
as
11
defined
in
section
99E.1,
from
advance
deposit
sports
wagering
12
as
defined
in
section
99F.9,
from
the
gaming
floor
and
sports
13
wagering
area
of
an
excursion
gambling
boat,
from
the
wagering
14
area,
as
defined
in
section
99D.2
,
and
from
the
gaming
floor
15
and
sports
wagering
area
of
all
other
licensed
facilities
under
16
this
chapter
and
chapter
99D
as
provided
in
this
subsection
.
17
The
process
shall
provide
that
an
initial
request
by
a
person
18
to
be
voluntarily
excluded
shall
be
for
a
period
of
five
years
19
or
life
and
any
subsequent
request
following
any
five-year
20
period
shall
be
for
a
period
of
five
years
or
life.
The
21
process
established
shall
require
that
licensees
be
provided
22
electronic
access
to
names
and
social
security
numbers
of
23
persons
voluntarily
excluded
through
a
secured
interactive
24
internet
site
maintained
by
the
commission
and
information
25
regarding
persons
voluntarily
excluded
shall
be
disseminated
26
to
all
licensees
under
this
chapter
and
chapter
99D
.
The
27
names,
social
security
numbers,
and
information
regarding
28
persons
voluntarily
excluded
shall
be
kept
confidential
29
unless
otherwise
ordered
by
a
court
or
by
another
person
30
duly
authorized
to
release
such
information.
The
process
31
established
shall
also
require
a
person
requesting
to
be
32
voluntarily
excluded
be
provided
information
compiled
by
the
33
Iowa
department
of
public
health
on
gambling
treatment
options.
34
The
state
and
any
licensee
under
this
chapter
or
chapter
99D
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shall
not
be
liable
to
any
person
for
any
claim
which
may
arise
1
from
this
process.
In
addition
to
any
other
penalty
provided
2
by
law,
any
money
or
thing
of
value
that
has
been
obtained
by,
3
or
is
owed
to,
a
voluntarily
excluded
person
as
a
result
of
4
wagers
made
by
the
person
after
the
person
has
been
voluntarily
5
excluded
shall
be
forfeited
by
the
person
and
shall
be
credited
6
to
the
general
fund
of
the
state.
7
Sec.
7.
Section
99F.4,
Code
2019,
is
amended
by
adding
the
8
following
new
subsection:
9
NEW
SUBSECTION
.
27.
To
adopt
standards
under
which
all
10
sports
wagering
is
conducted,
including
the
scope
and
type
11
of
wagers
allowed,
to
identify
occupations
within
sports
12
wagering
which
require
licensing,
and
to
adopt
standards
13
for
licensing
and
background
qualifications
for
occupations
14
including
establishing
fees
for
the
occupational
license.
All
15
revenue
received
by
the
commission
under
this
chapter
from
16
license
fees
shall
be
deposited
in
the
state
philanthropy,
17
opportunity,
reinvestment,
and
tourism
fund
created
in
section
18
8.57.
All
revenue
received
by
the
commission
from
regulatory
19
fees
shall
be
deposited
into
the
gaming
regulatory
revolving
20
fund
established
in
section
99F.20.
21
Sec.
8.
Section
99F.5,
subsection
1,
Code
2019,
is
amended
22
to
read
as
follows:
23
1.
A
qualified
sponsoring
organization
may
apply
to
the
24
commission
for
a
license
to
conduct
gambling
games
on
an
25
excursion
gambling
boat
or
gambling
structure
as
provided
in
26
this
chapter
.
A
person
may
apply
to
the
commission
for
a
27
license
to
operate
an
excursion
gambling
boat.
An
operating
28
agreement
entered
into
on
or
after
May
6,
2004,
between
29
a
qualified
sponsoring
organization
and
an
operator
of
an
30
excursion
gambling
boat
or
gambling
structure
shall
provide
for
31
a
minimum
distribution
by
the
qualified
sponsoring
organization
32
for
educational,
civic,
public,
charitable,
patriotic,
or
33
religious
uses
as
defined
in
section
99B.1
,
that
averages
at
34
least
three
percent
of
the
adjusted
gross
receipts
for
each
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617
license
year
and,
if
also
licensed
to
conduct
sports
wagering,
1
three-quarters
of
one
percent
of
sports
wagering
net
receipts
2
for
each
license
year
.
The
application
shall
be
filed
with
the
3
administrator
of
the
commission
at
least
ninety
days
before
4
the
first
day
of
the
next
excursion
season
as
determined
by
5
the
commission,
shall
identify
the
excursion
gambling
boat
6
upon
which
gambling
games
will
be
authorized,
shall
specify
7
the
exact
location
where
the
excursion
gambling
boat
will
be
8
docked,
and
shall
be
in
a
form
and
contain
information
as
the
9
commission
prescribes.
The
minimum
capacity
of
an
excursion
10
gambling
boat
or
gambling
structure
is
two
hundred
fifty
11
persons.
12
Sec.
9.
Section
99F.6,
subsection
4,
paragraph
a,
13
subparagraphs
(2),
(3),
and
(5),
Code
2019,
are
amended
to
read
14
as
follows:
15
(2)
A
qualified
sponsoring
organization
licensed
to
operate
16
gambling
games
under
this
chapter
shall
distribute
the
receipts
17
of
all
gambling
games,
less
reasonable
expenses,
charges,
18
taxes,
fees,
and
deductions
allowed
under
this
chapter
,
as
19
winnings
to
players
or
participants
or
shall
distribute
the
20
receipts
for
educational,
civic,
public,
charitable,
patriotic,
21
or
religious
uses
as
defined
in
section
99B.1
.
However,
a
22
licensee
to
conduct
gambling
games
under
this
chapter
shall,
23
unless
an
operating
agreement
for
an
excursion
gambling
boat
24
otherwise
provides,
distribute
at
least
three
percent
of
the
25
adjusted
gross
receipts
and,
if
also
licensed
to
conduct
sports
26
wagering,
three-quarters
of
one
percent
of
sports
wagering
net
27
receipts
for
each
license
year
for
educational,
civic,
public,
28
charitable,
patriotic,
or
religious
uses
as
defined
in
section
29
99B.1
.
However,
if
a
licensee
who
is
also
licensed
to
conduct
30
pari-mutuel
wagering
at
a
horse
racetrack
has
unpaid
debt
from
31
the
pari-mutuel
racetrack
operations,
the
first
receipts
of
32
the
gambling
games
operated
within
the
racetrack
enclosure
33
less
reasonable
operating
expenses,
taxes,
and
fees
allowed
34
under
this
chapter
shall
be
first
used
to
pay
the
annual
35
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617
indebtedness.
1
(3)
The
commission
shall
authorize,
subject
to
the
2
debt
payments
for
horse
racetracks
and
the
provisions
of
3
paragraph
“b”
for
dog
racetracks,
a
licensee
who
is
also
4
licensed
to
conduct
pari-mutuel
dog
or
horse
racing
to
use
5
receipts
from
gambling
games
and
sports
wagering
within
the
6
racetrack
enclosure
to
support
the
horse
racing
industry
and
to
7
supplement
purses
for
races
particularly
for
Iowa-bred
horses
8
pursuant
to
an
agreement
which
shall
be
negotiated
between
the
9
licensee
and
representatives
of
the
dog
or
horse
owners.
For
10
agreements
subject
to
commission
approval
concerning
purses
11
for
horse
racing
beginning
on
or
after
January
1,
2006,
the
12
agreements
shall
provide
that
total
annual
purses
for
all
horse
13
racing
shall
be
no
less
than
eleven
percent
of
the
first
two
14
hundred
million
dollars
of
net
receipts,
and
six
percent
of
15
net
receipts
above
two
hundred
million
dollars.
In
addition,
16
live
standardbred
horse
racing
shall
not
be
conducted
at
the
17
horse
racetrack
in
Polk
county,
but
the
purse
moneys
designated
18
for
standardbred
racing
pursuant
to
section
99D.7,
subsection
19
5
,
paragraph
“b”
,
shall
be
included
in
calculating
the
total
20
annual
purses
required
to
be
paid
pursuant
to
this
subsection
.
21
Agreements
that
are
subject
to
commission
approval
concerning
22
horse
purses
for
a
period
of
time
beginning
on
or
after
January
23
1,
2006,
shall
be
jointly
submitted
to
the
commission
for
24
approval.
25
(5)
For
purposes
of
this
paragraph,
“net
receipts”
means
26
the
annual
adjusted
gross
receipts
from
all
gambling
games
and
27
sports
wagering
net
receipts,
less
the
annual
amount
of
money
28
pledged
by
the
owner
of
the
facility
to
fund
a
project
approved
29
to
receive
vision
Iowa
funds
as
of
July
1,
2004.
30
Sec.
10.
NEW
SECTION
.
99F.7A
Sports
wagering
——
license
——
31
terms
and
conditions
——
fees.
32
1.
The
commission
shall,
upon
payment
of
an
initial
license
33
fee
of
seventy-five
thousand
dollars
and
submission
of
an
34
application
to
the
commission
consistent
with
the
requirements
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of
section
99F.6,
issue
a
license
to
conduct
sports
wagering
1
to
a
licensee
authorized
to
conduct
gambling
games
at
a
2
pari-mutuel
racetrack
enclosure
or
a
licensee
authorized
to
3
operate
an
excursion
gambling
boat
or
gambling
structure,
4
subject
to
the
requirements
of
this
chapter.
The
annual
5
renewal
fee
for
a
license
to
conduct
or
operate
sports
wagering
6
shall
be
five
thousand
dollars.
7
2.
A
licensee
under
this
section
shall
do
all
of
the
8
following:
9
a.
Include
on
the
internet
site
or
mobile
application
used
10
by
the
licensee
to
conduct
advance
deposit
sports
wagering
as
11
authorized
in
section
99F.9
the
statewide
telephone
number
12
authorized
by
the
Iowa
department
of
public
health
to
provide
13
problem
gambling
information
and
extensive
responsible
gaming
14
features
in
addition
to
those
described
in
section
99F.4,
15
subsection
22.
16
b.
Establish,
subject
to
commission
approval,
sports
17
wagering
rules
that
specify
the
amounts
to
be
paid
on
winning
18
sports
wagers,
the
effect
of
changes
in
the
scheduling
of
an
19
authorized
sporting
event
subject
to
sports
wagering,
and
the
20
source
of
the
information
used
to
determine
the
outcome
of
a
21
sports
wager.
The
sports
wagering
rules
shall
be
displayed
in
22
the
licensee’s
sports
wagering
area,
posted
on
the
internet
23
site
or
mobile
application
used
by
the
licensee
to
conduct
24
advance
deposit
sports
wagering
as
authorized
in
section
99F.9,
25
and
included
in
the
terms
and
conditions
of
the
licensee’s
26
advance
deposit
sports
wagering
system.
27
3.
A
licensee
under
this
section
may
enter
into
operating
28
agreements
with
one
or
two
entities
to
have
up
to
a
total
of
29
two
individually
branded
internet
sites
to
conduct
advance
30
deposit
sports
wagering
for
the
licensee,
unless
one
additional
31
operating
agreement
or
individually
branded
internet
site
is
32
authorized
by
the
commission.
33
4.
A
licensee
issued
a
license
to
conduct
sports
wagering
34
under
this
section
shall
employ
reasonable
steps
to
prohibit
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coaches,
athletic
trainers,
officials,
players,
or
other
1
individuals
who
participate
in
an
authorized
sporting
event
2
that
is
the
subject
of
sports
wagering
from
sports
wagering
3
under
this
chapter.
In
addition,
a
licensee
shall
employ
4
reasonable
steps
to
prohibit
persons
who
are
employed
in
5
a
position
with
direct
involvement
with
coaches,
players,
6
athletic
trainers,
officials,
players,
or
participants
in
7
an
authorized
sporting
event
that
is
the
subject
of
sports
8
wagering
from
sports
wagering
under
this
chapter.
9
Sec.
11.
Section
99F.8,
Code
2019,
is
amended
to
read
as
10
follows:
11
99F.8
Bond
of
licensee.
12
A
licensee
licensed
under
section
99F.7
shall
post
a
bond
13
to
the
state
of
Iowa
before
the
license
is
issued
in
a
sum
14
as
the
commission
shall
fix,
with
sureties
to
be
approved
by
15
the
commission.
The
bond
shall
be
used
to
guarantee
that
the
16
licensee
faithfully
makes
the
payments,
keeps
its
books
and
17
records
and
makes
reports,
and
conducts
its
gambling
games
and
18
sports
wagering
in
conformity
with
this
chapter
and
the
rules
19
adopted
by
the
commission.
The
bond
shall
not
be
canceled
by
20
a
surety
on
less
than
thirty
days’
notice
in
writing
to
the
21
commission.
If
a
bond
is
canceled
and
the
licensee
fails
to
22
file
a
new
bond
with
the
commission
in
the
required
amount
on
23
or
before
the
effective
date
of
cancellation,
the
licensee’s
24
license
shall
be
revoked.
The
total
and
aggregate
liability
25
of
the
surety
on
the
bond
is
limited
to
the
amount
specified
in
26
the
bond.
27
Sec.
12.
Section
99F.9,
subsection
1,
Code
2019,
is
amended
28
to
read
as
follows:
29
1.
Except
as
permitted
in
this
section
,
the
licensee
shall
30
not
permit
no
sports
wagering
or
any
form
of
wagering
on
31
gambling
games.
32
Sec.
13.
Section
99F.9,
Code
2019,
is
amended
by
adding
the
33
following
new
subsection:
34
NEW
SUBSECTION
.
3A.
a.
For
the
purposes
of
this
section,
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unless
the
context
otherwise
requires:
1
(1)
“Advance
deposit
sports
wagering”
means
a
method
of
2
sports
wagering
in
which
an
eligible
individual
may,
in
an
3
account
established
with
a
licensee
under
section
99F.7A,
4
deposit
moneys
into
the
account
and
use
the
account
balance
to
5
pay
for
sports
wagering.
Prior
to
January
1,
2021,
an
account
6
must
be
established
by
an
eligible
individual
in
person
with
7
a
licensee.
8
(2)
“Advance
deposit
sports
wagering
operator”
means
an
9
advance
deposit
sports
wagering
operator
licensed
by
the
10
commission
who
has
entered
into
an
agreement
with
a
licensee
11
under
section
99F.7A
to
provide
advance
deposit
sports
12
wagering.
13
(3)
“Eligible
individual”
means
an
individual
who
is
at
14
least
twenty-one
years
of
age
or
older
who
is
located
within
15
this
state.
16
b.
The
commission
may
authorize
a
licensee
under
section
17
99F.7A
to
conduct
advance
deposit
sports
wagering.
An
advance
18
deposit
sports
wager
may
be
placed
in
person
in
the
sports
19
wagering
area,
or
from
any
other
location
via
a
telephone-type
20
device
or
any
other
electronic
means.
The
commission
may
also
21
issue
an
advance
deposit
sports
wagering
operator
license
to
22
an
entity
who
complies
with
this
subsection
and
section
99F.6
23
and
may
require
the
advance
deposit
sports
wagering
operator
to
24
conduct
an
audit
consistent
with
the
requirements
of
section
25
99F.13.
26
c.
An
unlicensed
person
taking
or
receiving
sports
wagers
27
from
residents
of
this
state
is
guilty
of
a
class
“D”
felony.
28
Sec.
14.
Section
99F.9,
subsection
4,
Code
2019,
is
amended
29
to
read
as
follows:
30
4.
A
person
under
the
age
of
twenty-one
years
shall
not
make
31
or
attempt
to
make
a
wager
pursuant
to
subsection
3A
or
on
an
32
excursion
gambling
boat,
gambling
structure,
or
in
a
racetrack
33
enclosure
and
shall
not
be
allowed
on
the
gaming
floor
of
34
an
excursion
gambling
boat
or
gambling
structure
or
in
the
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wagering
area,
as
defined
in
section
99D.2
,
or
on
the
gaming
1
floor
of
a
racetrack
enclosure.
However,
a
person
eighteen
2
years
of
age
or
older
may
be
employed
to
work
on
the
gaming
3
floor
of
an
excursion
gambling
boat
or
gambling
structure
or
4
in
the
wagering
area
or
on
the
gaming
floor
of
a
racetrack
5
enclosure.
A
person
who
violates
this
subsection
with
respect
6
to
making
or
attempting
to
make
a
wager
commits
a
scheduled
7
violation
under
section
805.8C,
subsection
5
,
paragraph
“a”
.
8
Sec.
15.
Section
99F.11,
Code
2019,
is
amended
by
adding
the
9
following
new
subsection:
10
NEW
SUBSECTION
.
4.
a.
A
tax
is
imposed
on
the
sports
11
wagering
net
receipts
received
each
fiscal
year
by
a
licensed
12
operator
from
sports
wagering
authorized
under
this
chapter
at
13
the
rate
of
six
and
three-quarters
percent.
14
b.
The
taxes
imposed
by
this
subsection
for
sports
wagering
15
authorized
under
this
chapter
shall
be
paid
by
the
licensed
16
operator
to
the
treasurer
of
state
as
determined
by
the
17
commission
and
shall
be
distributed
as
follows:
18
(1)
An
amount
equal
to
one-half
of
one
percent
of
sports
19
wagering
net
receipts
shall
be
deposited
in
the
county
20
endowment
fund
created
in
section
15E.311.
21
(2)
The
remaining
amount
of
sports
wagering
net
receipts
22
taxes
imposed
pursuant
to
this
subsection
shall
be
credited
as
23
provided
in
section
8.57,
subsection
6.
24
Sec.
16.
Section
99F.12,
subsection
2,
Code
2019,
is
amended
25
to
read
as
follows:
26
2.
a.
The
licensee
shall
furnish
to
the
commission
reports
27
and
information
as
the
commission
may
require
with
respect
to
28
the
licensee’s
activities.
29
b.
A
licensee
under
section
99F.7A
shall
promptly
report
30
to
the
commission
any
criminal
or
disciplinary
proceedings
31
commenced
against
the
licensee
or
its
employees
in
connection
32
with
the
licensee
conducting
sports
wagering
or
advance
33
deposit
sports
wagering,
any
abnormal
wagering
activity
or
34
patterns
that
may
indicate
a
concern
about
the
integrity
of
an
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authorized
sporting
event
or
events,
and
any
other
conduct
with
1
the
potential
to
corrupt
a
wagering
outcome
of
an
authorized
2
sporting
event
for
purposes
of
financial
gain,
including
but
3
not
limited
to
match
fixing,
and
suspicious
or
illegal
wagering
4
activities,
including
the
use
of
funds
derived
from
illegal
5
activity,
wagers
to
conceal
or
launder
funds
derived
from
6
illegal
activity,
use
of
agents
to
place
wagers,
or
use
of
7
false
identification.
The
commission
shall
promptly
report
8
any
information
received
pursuant
to
this
paragraph
with
any
9
law
enforcement
entity,
sports
team,
sports
governing
body,
or
10
regulatory
agency
the
commission
deems
appropriate.
11
c.
The
gross
receipts
and
adjusted
gross
receipts
from
12
gambling
shall
be
separately
handled
and
accounted
for
from
13
all
other
moneys
received
from
operation
of
an
excursion
14
gambling
boat
or
from
operation
of
a
racetrack
enclosure
or
15
gambling
structure
licensed
to
conduct
gambling
games.
The
16
commission
may
designate
a
representative
to
board
a
licensed
17
excursion
gambling
boat
or
to
enter
a
racetrack
enclosure
or
18
gambling
structure
licensed
to
conduct
gambling
games.
The
19
representative
shall
have
full
access
to
all
places
within
the
20
enclosure
of
the
boat,
the
gambling
structure,
or
the
racetrack
21
enclosure
and
shall
directly
supervise
the
handling
and
22
accounting
of
all
gross
receipts
and
adjusted
gross
receipts
23
from
gambling.
The
representative
shall
supervise
and
check
24
the
admissions.
The
compensation
of
a
representative
shall
be
25
fixed
by
the
commission
but
shall
be
paid
by
the
licensee.
26
d.
With
the
approval
of
the
commission,
a
licensee
under
27
section
99F.7A
shall
cooperate
with
investigations
conducted
28
by
sports
governing
bodies,
including
but
not
limited
to
29
providing
or
facilitating
the
provision
of
account-level
30
betting
information
and
audio
or
video
files
relating
to
31
persons
placing
wagers.
32
Sec.
17.
Section
99F.15,
subsection
1,
paragraph
c,
Code
33
2019,
is
amended
to
read
as
follows:
34
c.
Acting,
or
employing
a
person
to
act,
as
a
shill
or
35
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decoy
to
encourage
participation
in
a
gambling
game
or
sports
1
wagering
.
2
Sec.
18.
Section
99F.15,
subsection
4,
paragraphs
d,
h,
and
3
i,
Code
2019,
are
amended
to
read
as
follows:
4
d.
Cheats
at
a
gambling
game,
including
but
not
limited
to
5
committing
any
act
which
alters
the
outcome
of
the
game
,
or
6
cheats
at
sports
wagering
.
7
h.
Claims,
collects,
or
takes,
or
attempts
to
claim,
8
collect,
or
take,
money
or
anything
of
value
in
or
from
the
9
gambling
games
or
sports
wagering
,
with
intent
to
defraud,
10
without
having
made
a
wager
contingent
on
winning
a
gambling
11
game
or
sports
wager
,
or
claims,
collects,
or
takes
an
amount
12
of
money
or
thing
of
value
of
greater
value
than
the
amount
13
won.
14
i.
Knowingly
entices
or
induces
a
person
to
go
to
any
place
15
where
a
gambling
game
or
sports
wagering
is
being
conducted
or
16
operated
in
violation
of
the
provisions
of
this
chapter
with
17
the
intent
that
the
other
person
plays
or
participates
in
that
18
gambling
game
or
sports
wagering
.
19
Sec.
19.
Section
99F.20,
subsection
1,
Code
2019,
is
amended
20
to
read
as
follows:
21
1.
A
gaming
regulatory
revolving
fund
is
created
in
22
the
state
treasury
under
the
control
of
the
department
of
23
inspections
and
appeals.
The
fund
shall
consist
of
fees
24
collected
and
deposited
into
the
fund
paid
by
licensees
25
pursuant
to
section
99D.14,
subsection
2
,
paragraph
“c”
,
fees
26
paid
by
licensees
pursuant
to
section
99E.5,
subsection
4,
27
paragraph
“c”
,
regulatory
fees
paid
by
licensees
pursuant
28
to
section
99F.4,
subsection
27,
and
fees
paid
by
licensees
29
pursuant
to
section
99F.10,
subsection
4
,
paragraph
“c”
.
All
30
costs
relating
to
racetrack,
excursion
boat,
and
gambling
31
structure
,
internet
fantasy
sports
contests
as
defined
in
32
section
99E.1,
and
sports
wagering
regulation
shall
be
paid
33
from
the
fund
as
provided
in
appropriations
made
for
this
34
purpose
by
the
general
assembly.
The
department
shall
provide
35
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quarterly
reports
to
the
department
of
management
and
the
1
legislative
services
agency
specifying
revenues
billed
and
2
collected
and
expenditures
from
the
fund
in
a
format
as
3
determined
by
the
department
of
management
in
consultation
with
4
the
legislative
services
agency.
5
Sec.
20.
TEMPORARY
LICENSE
——
ADVANCE
DEPOSIT
SPORTS
6
WAGERING
OPERATOR.
The
racing
and
gaming
commission
shall,
7
upon
submission
of
an
application
to
the
commission
on
a
form
8
prescribed
by
the
commission,
issue
a
temporary
license
as
an
9
advance
deposit
sports
wagering
operator
to
a
person
that
the
10
commission
has
determined
is
authorized
and
in
good
standing
11
by
another
state,
territory,
or
district
of
the
United
States
12
to
operate
sports
wagering,
has
paid
any
required
fees,
and
13
is
otherwise
in
compliance
with
this
section.
The
temporary
14
license
shall
authorize
the
person
to
provide
advance
deposit
15
sports
wagering
for
a
licensee
under
section
99F.7A,
as
enacted
16
by
this
Act,
as
an
advance
deposit
sports
wagering
operator
17
pursuant
to
an
agreement
with
the
licensee
under
section
18
99F.7A,
as
enacted
by
this
Act.
The
temporary
license
shall
19
be
valid
until
the
earlier
of
the
date
the
racing
and
gaming
20
commission
grants
or
denies
a
license
to
the
advance
deposit
21
sports
wagering
operator
or
twelve
months
from
the
date
the
22
racing
and
gaming
commission
issues
the
temporary
license
23
pursuant
to
this
section.
24
Sec.
21.
EMERGENCY
RULES.
The
state
racing
and
gaming
25
commission
created
under
section
99D.5
may
adopt
emergency
26
rules
under
section
17A.4,
subsection
3,
and
section
17A.5,
27
subsection
2,
paragraph
“b”,
to
implement
the
provisions
of
28
this
division
of
this
Act
and
the
rules
shall
be
effective
29
immediately
upon
filing
unless
a
later
date
is
specified
in
the
30
rules
but
in
no
event
earlier
than
July
4,
2019.
Any
rules
31
adopted
in
accordance
with
this
section
shall
also
be
published
32
as
a
notice
of
intended
action
as
provided
in
section
17A.4.
33
Sec.
22.
IMPLEMENTATION.
The
racing
and
gaming
commission
34
shall
not
implement
this
division
of
this
Act
until
the
later
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of
July
4,
2019,
or
the
date
the
commission
has
adopted
rules
1
pursuant
to
chapter
17A
providing
for
such
implementation
and
2
such
rules
have
become
effective.
3
Sec.
23.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
4
deemed
of
immediate
importance,
takes
effect
upon
enactment.
5
DIVISION
II
6
FANTASY
SPORTS
CONTESTS
7
Sec.
24.
Section
80.25A,
Code
2019,
is
amended
to
read
as
8
follows:
9
80.25A
Pari-mutuel
and
gambling
game
Gaming
operations
10
investigation
and
enforcement.
11
The
commissioner
of
public
safety
shall
direct
the
chief
12
of
the
division
of
criminal
investigation
to
establish
a
13
subdivision
to
be
the
primary
criminal
investigative
and
14
enforcement
agency
for
the
purpose
of
enforcement
of
chapters
15
99D
,
99E,
and
99F
.
The
commissioner
of
public
safety
shall
16
appoint
or
assign
other
agents
to
the
division
as
necessary
to
17
enforce
chapters
99D
,
99E,
and
99F
.
All
enforcement
officers,
18
assistants,
and
agents
of
the
division
are
subject
to
section
19
80.15
except
clerical
workers.
20
Sec.
25.
NEW
SECTION
.
99E.1
Definitions.
21
As
used
in
this
chapter,
unless
the
context
otherwise
22
requires:
23
1.
“Applicant”
means
an
internet
fantasy
sports
contest
24
service
provider
applying
for
a
license
to
conduct
internet
25
fantasy
sports
contests
under
this
chapter.
26
2.
“Commission”
means
the
state
racing
and
gaming
commission
27
created
under
section
99D.5.
28
3.
“Fantasy
sports
contest”
includes
any
fantasy
or
29
simulated
game
or
contest
in
which
the
fantasy
sports
contest
30
operator
is
not
a
participant
in
the
game
or
contest,
the
value
31
of
all
prizes
and
awards
offered
to
winning
participants
are
32
established
and
made
known
to
the
participants
in
advance
33
of
the
contest,
all
winning
outcomes
reflect
the
relative
34
knowledge
and
skill
of
the
participants
and
shall
be
determined
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by
accumulated
statistical
results
of
the
performance
of
1
individuals,
including
athletes
in
the
case
of
sporting
events,
2
and
no
winning
outcome
is
solely
based
on
the
score,
point
3
spread,
or
any
performance
or
performances
of
any
single
actual
4
team
or
solely
on
any
single
performance
of
an
individual
5
athlete
or
player
in
any
single
actual
event.
6
4.
“Internet
fantasy
sports
contest”
means
a
method
of
7
entering
a
fantasy
sports
contest
by
which
a
person
may
8
establish
an
account
with
an
internet
fantasy
sports
contest
9
service
provider,
deposit
money
into
the
account,
and
use
10
the
account
balance
for
entering
a
fantasy
sports
contest
by
11
utilizing
electronic
communication.
12
5.
“Internet
fantasy
sports
contest
adjusted
revenues”
means,
13
for
each
internet
fantasy
sports
contest,
the
amount
equal
to
14
the
total
charges
and
fees
collected
from
all
participants
15
entering
the
internet
fantasy
sports
contest
less
winnings
paid
16
to
participants
in
the
contest,
multiplied
by
the
location
17
percentage.
18
6.
“Internet
fantasy
sports
contest
player”
means
a
person
19
who
is
at
least
twenty-one
years
of
age
and
participates
in
an
20
internet
fantasy
sports
contest
operated
by
an
internet
fantasy
21
sports
contest
service
provider.
22
7.
“Internet
fantasy
sports
contest
service
provider”
means
23
a
person,
including
a
licensee
under
chapter
99D
or
99F,
who
24
conducts
an
internet
fantasy
sports
contest
as
authorized
by
25
this
chapter.
26
8.
“Location
percentage”
means,
for
each
internet
fantasy
27
sports
contest,
the
percentage,
rounded
to
the
nearest
tenth
of
28
a
percent,
equal
to
the
total
charges
and
fees
collected
from
29
all
internet
fantasy
sports
contest
players
located
in
this
30
state
divided
by
the
total
charges
and
fees
collected
from
all
31
participants
in
the
internet
fantasy
sports
contest.
32
Sec.
26.
NEW
SECTION
.
99E.2
Internet
fantasy
sports
33
contests
authorized.
34
The
system
of
entering
an
internet
fantasy
sports
contest
as
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provided
by
this
chapter
is
legal
when
conducted
by
a
licensed
1
internet
fantasy
sports
contest
service
provider
as
provided
in
2
this
chapter.
3
Sec.
27.
NEW
SECTION
.
99E.3
Commission
——
powers.
4
1.
The
commission
shall
have
full
jurisdiction
over
and
5
shall
supervise
internet
fantasy
sports
contests
and
internet
6
fantasy
sports
contest
service
providers
as
governed
by
this
7
chapter.
8
2.
The
commission
shall
have
the
following
powers
and
shall
9
adopt
rules
pursuant
to
chapter
17A
to
administer
and
implement
10
this
chapter:
11
a.
To
review
and
investigate
applicants
and
determine
the
12
eligibility
of
applicants
for
a
license
to
conduct
internet
13
fantasy
sports
contests,
pursuant
to
rules
adopted
by
the
14
commission.
15
b.
To
license
and
regulate
internet
fantasy
sports
contest
16
service
providers
subject
to
the
requirements
of
this
chapter.
17
c.
To
provide
for
the
prevention
of
practices
detrimental
to
18
the
public
and
to
provide
for
the
best
interests
of
internet
19
fantasy
sports
contests.
20
d.
To
investigate
alleged
violations
of
this
chapter
21
or
the
commission
rules,
orders,
or
final
decisions
and
to
22
take
appropriate
disciplinary
action
against
a
licensee,
or
23
institute
appropriate
legal
action
for
enforcement,
or
both.
24
Information
gathered
during
an
investigation
is
confidential
25
during
the
pendency
of
the
investigation.
26
e.
To
assess
fines
and
revoke
or
suspend
licenses
and
to
27
impose
penalties
for
violations
of
this
chapter.
28
f.
To
take
any
other
action
as
may
be
reasonable
or
29
appropriate
to
enforce
this
chapter
and
the
commission
rules.
30
Sec.
28.
NEW
SECTION
.
99E.4
Requirements
of
applicant
——
31
fee.
32
1.
An
applicant
for
a
license
to
conduct
internet
fantasy
33
sports
contests
shall
complete
and
sign
an
application
on
34
the
form
prescribed
and
published
by
the
commission.
The
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application
shall
include
such
information
of
the
applicant
1
that
the
commission
deems
necessary
for
purposes
of
issuing
a
2
license
pursuant
to
this
chapter.
3
2.
An
applicant
shall
submit
fingerprints
and
information
4
that
the
commission
deems
necessary
to
the
commission
in
the
5
manner
prescribed
on
the
application
forms.
The
fingerprints
6
may
be
submitted
to
the
federal
bureau
of
investigation
by
7
the
department
of
public
safety
through
the
state
criminal
8
history
repository
for
the
purpose
of
a
national
criminal
9
history
check.
The
results
of
a
criminal
history
record
check
10
conducted
pursuant
to
this
subsection
shall
be
considered
a
11
confidential
record
under
chapter
22.
12
3.
If
the
commission
is
not
satisfied
that
it
can
determine
13
if
an
applicant
meets
the
requirements
necessary
for
issuing
14
a
license
pursuant
to
this
chapter,
the
commission
may
15
request
the
department
of
public
safety,
division
of
criminal
16
investigation,
to
investigate
and
obtain
the
information
17
necessary
for
the
commission
to
make
a
determination
on
whether
18
to
issue
the
applicant
a
license.
19
4.
The
commission
shall
charge
the
applicant
a
reasonable
20
fee
set
by
the
department
of
public
safety,
division
of
21
criminal
investigation,
to
defray
those
costs
associated
22
with
the
fingerprint
and
national
criminal
history
check
23
requirements
of
subsection
2
concerning
the
applicant.
In
24
addition,
if
the
commission
requests
that
an
additional
25
investigation
be
conducted
by
the
division
of
criminal
26
investigation
as
provided
in
subsection
3,
the
commission
shall
27
charge
the
applicant
the
reasonable
costs
of
this
additional
28
investigation.
These
fees
and
costs
are
in
addition
to
any
29
other
license
fees
and
costs
charged
by
the
commission.
The
30
fees
and
costs
may
be
retained
by
the
department
of
public
31
safety,
division
of
criminal
investigation,
and
shall
be
32
considered
repayment
receipts
as
defined
in
section
8.2.
33
5.
The
commission
shall
not
grant
a
license
to
an
applicant
34
if
there
is
substantial
evidence
that
any
of
the
following
35
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apply:
1
a.
A
license
issued
to
the
applicant
to
conduct
internet
2
fantasy
sports
contests
in
another
jurisdiction
has
been
3
revoked,
or
a
request
for
a
license
to
conduct
internet
fantasy
4
sports
contests
in
another
jurisdiction
has
been
denied,
by
5
an
entity
licensing
persons
to
conduct
such
contests
in
that
6
jurisdiction.
7
b.
The
applicant
has
not
demonstrated
financial
8
responsibility
sufficient
to
adequately
meet
the
requirements
9
of
the
enterprise
proposed.
10
c.
The
applicant
does
not
adequately
disclose
the
true
11
owners
of
the
enterprise
proposed.
12
d.
The
applicant
has
knowingly
made
a
false
statement
of
a
13
material
fact
to
the
commission.
14
e.
The
applicant
has
failed
to
meet
a
monetary
obligation
in
15
connection
with
conducting
an
internet
fantasy
sports
contest.
16
f.
The
applicant
is
not
of
good
repute
and
moral
character
17
or
the
applicant
has
pled
guilty
to,
or
has
been
convicted
of,
18
a
felony.
19
g.
Any
member
of
the
board
of
directors
of
the
applicant
is
20
not
twenty-one
years
of
age
or
older.
21
6.
A
person
who
knowingly
makes
a
false
statement
on
the
22
application
is
guilty
of
an
aggravated
misdemeanor.
23
7.
For
the
purposes
of
this
section,
“applicant”
includes
24
each
member
of
the
board
of
directors
of
an
internet
fantasy
25
sports
contest
service
provider.
26
Sec.
29.
NEW
SECTION
.
99E.5
Licenses
——
fees
——
terms
and
27
conditions
——
revocation.
28
1.
If
the
commission
is
satisfied
that
the
requirements
29
of
this
chapter
and
its
rules
adopted
under
this
chapter
30
applicable
to
licensees
have
been
or
will
be
complied
with,
the
31
commission
shall,
upon
payment
of
an
initial
annual
license
32
fee
of
five
thousand
dollars,
issue
a
license
for
a
period
of
33
not
more
than
three
years
to
an
applicant
to
conduct
internet
34
fantasy
sports
contests
in
this
state.
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2.
A
licensed
internet
fantasy
sports
contest
service
1
provider
shall
use
reasonable
methods
to
comply
with
all
of
the
2
following
requirements:
3
a.
Prevent
employees
of
the
internet
fantasy
sports
contest
4
service
provider
and
relatives
living
in
the
same
household
of
5
such
employees
from
competing
in
any
internet
fantasy
sports
6
contest
on
the
service
provider’s
digital
platform
in
which
the
7
service
provider
offers
a
cash
prize
to
the
public.
8
b.
Verify
that
an
internet
fantasy
sports
contest
player
9
located
in
this
state
is
twenty-one
years
of
age
or
older.
10
c.
Ensure
that
coaches,
officials,
players,
contestants,
11
or
other
individuals
who
participate
in
a
game
or
contest
12
that
is
the
subject
of
an
internet
fantasy
sports
contest
are
13
restricted
from
entering
an
internet
fantasy
sports
contest
in
14
which
the
outcome
is
determined,
in
whole
or
in
part,
by
the
15
accumulated
statistical
results
of
a
team
of
individuals
in
the
16
game
or
contest
in
which
they
participate.
17
d.
Allow
individuals
to
restrict
themselves
from
entering
18
an
internet
fantasy
sports
contest
conducted
by
the
internet
19
fantasy
sports
contest
service
provider
upon
request
and
take
20
reasonable
steps
to
prevent
those
individuals
from
entering
21
any
internet
fantasy
sports
contests
conducted
by
the
internet
22
fantasy
sports
contest
service
provider.
23
e.
Allow
individuals
to
establish
an
account
with
an
24
internet
fantasy
sports
contest
service
provider
by
utilizing
25
electronic
communication.
26
f.
Disclose
the
number
of
entries
a
single
internet
fantasy
27
sports
contest
player
may
submit
to
each
internet
fantasy
28
sports
contest
and
take
reasonable
steps
to
prevent
players
29
from
submitting
more
than
the
allowable
number
of
entries
for
30
that
internet
fantasy
sports
contest.
31
g.
Segregate
internet
fantasy
sports
contest
player
funds
32
from
operational
funds
or
maintain
a
reserve
in
the
form
of
33
cash,
cash
equivalents,
an
irrevocable
letter
of
credit,
34
payment
processor
reserves
and
receivables,
a
bond,
or
a
35
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combination
thereof
in
the
amount
of
the
deposits
in
internet
1
fantasy
sports
contest
player
accounts
for
the
benefit
and
2
protection
of
internet
fantasy
sports
contest
player
funds
held
3
in
internet
fantasy
sports
contest
accounts
by
the
internet
4
fantasy
sports
contest
service
provider.
5
h.
Conduct
an
annual
audit
under
section
99E.9.
6
i.
Pay
the
tax
as
provided
in
section
99E.6.
7
3.
The
annual
license
fee
to
conduct
internet
fantasy
sports
8
contests
shall
be
one
thousand
dollars
or,
for
a
licensed
9
internet
fantasy
sports
contest
service
provider
with
total
10
annual
internet
fantasy
sports
contest
adjusted
revenues
for
11
the
year
prior
to
the
annual
license
fee
renewal
date
of
12
one
hundred
fifty
thousand
dollars
or
greater,
five
thousand
13
dollars.
Moneys
collected
by
the
commission
from
the
annual
14
license
fees
paid
under
this
section
shall
be
deposited
in
the
15
state
philanthropy,
opportunity,
reinvestment,
and
tourism
fund
16
created
in
section
8.57.
17
4.
a.
A
licensed
internet
fantasy
sports
contest
service
18
provider
shall
pay
a
regulatory
fee
to
the
commission.
The
19
regulatory
fee
shall
be
established
by
the
commission
based
on
20
the
costs
of
administering
and
enforcing
this
chapter.
21
b.
A
licensed
internet
fantasy
sports
contest
service
22
provider
shall
receive
a
credit
for
the
amount
of
the
23
regulatory
fee
paid
by
the
provider
against
the
taxes
to
be
24
paid
pursuant
to
section
99E.6.
25
c.
Notwithstanding
section
8.60,
the
portion
of
the
fee
26
paid
pursuant
to
paragraph
“a”
relating
to
the
costs
of
the
27
commission
shall
be
deposited
into
the
gaming
regulatory
28
revolving
fund
established
in
section
99F.20.
29
5.
Upon
a
violation
of
any
of
the
conditions
listed
in
30
section
99E.4
or
this
section
by
a
licensee,
the
commission
31
shall
immediately
revoke
the
license.
32
Sec.
30.
NEW
SECTION
.
99E.6
Internet
fantasy
sports
contest
33
tax
——
rate.
34
1.
A
tax
is
imposed
on
internet
fantasy
sports
contest
35
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adjusted
revenues
received
each
fiscal
year
by
an
internet
1
fantasy
sports
contest
service
provider
from
internet
fantasy
2
sports
contests
authorized
under
this
chapter
at
the
rate
of
3
six
and
three-quarters
percent.
4
2.
The
taxes
imposed
by
this
section
for
internet
fantasy
5
sports
contests
authorized
under
this
chapter
shall
be
paid
by
6
the
internet
fantasy
sports
contest
service
provider
to
the
7
treasurer
of
state
as
determined
by
the
commission
and
shall
be
8
distributed
as
follows:
9
a.
An
amount
equal
to
one-half
of
one
percent
of
internet
10
fantasy
sports
contest
adjusted
revenues
shall
be
deposited
in
11
the
county
endowment
fund
created
in
section
15E.311.
12
b.
The
remaining
amount
of
internet
fantasy
sports
contest
13
adjusted
revenues
taxes
imposed
pursuant
to
this
section
shall
14
be
credited
as
provided
in
section
8.57,
subsection
6.
15
Sec.
31.
NEW
SECTION
.
99E.7
Internet
fantasy
sports
16
contests
——
age
restrictions.
17
A
person
under
the
age
of
twenty-one
years
shall
not
enter
an
18
internet
fantasy
sports
contest.
A
person
who
violates
this
19
section
with
respect
to
entering
an
internet
fantasy
sports
20
contest
commits
a
scheduled
violation
under
section
805.8C,
21
subsection
12.
22
Sec.
32.
NEW
SECTION
.
99E.8
Licensees
——
records
——
reports
23
——
confidentiality.
24
1.
An
internet
fantasy
sports
contest
service
provider
25
shall
keep
its
books
and
records
so
as
to
clearly
show
the
26
internet
fantasy
sports
contest
adjusted
revenues
for
each
27
internet
fantasy
sports
contest
subject
to
tax
in
this
state.
28
2.
a.
The
licensee
shall
furnish
to
the
commission
reports
29
and
information
as
the
commission
may
require
with
respect
to
30
the
licensee’s
activities.
31
b.
A
licensee
shall
promptly
report
to
the
commission
any
32
criminal
or
disciplinary
proceedings
commenced
against
the
33
licensee
or
its
employees
in
connection
with
the
licensee
34
conducting
an
internet
fantasy
sports
contest,
any
abnormal
35
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contest
activity
or
patterns
that
may
indicate
a
concern
about
1
the
integrity
of
an
internet
fantasy
sports
contest,
and
any
2
other
conduct
with
the
potential
to
corrupt
an
outcome
of
an
3
internet
fantasy
sports
contest
for
purposes
of
financial
gain,
4
including
but
not
limited
to
match
fixing,
and
suspicious
or
5
illegal
internet
fantasy
sports
contest
activities,
including
6
the
use
of
funds
derived
from
illegal
activity,
deposits
of
7
money
to
enter
an
internet
fantasy
sports
contest
to
conceal
8
or
launder
funds
derived
from
illegal
activity,
use
of
agents
9
to
enter
an
internet
fantasy
sports
contest,
or
use
of
false
10
identification.
The
commission
is
authorized
to
share
any
11
information
received
pursuant
to
this
paragraph
with
the
12
division
of
criminal
investigation,
any
other
law
enforcement
13
entity
upon
request,
or
any
regulatory
agency
the
commission
14
deems
appropriate.
The
commission
shall
promptly
report
any
15
information
received
pursuant
to
this
paragraph
with
any
16
sports
team
or
sports
governing
body
as
the
commission
deems
17
appropriate,
but
shall
not
share
any
information
that
would
18
interfere
with
an
ongoing
criminal
investigation.
19
3.
Except
as
provided
in
subsection
4,
the
books
and
records
20
kept
by
a
licensee
as
provided
by
this
section
are
public
21
records
and
the
examination,
publication,
and
dissemination
of
22
the
books
and
records
are
governed
by
the
provisions
of
chapter
23
22.
24
4.
The
records
of
the
commission
shall
be
governed
by
the
25
provisions
of
chapter
22,
provided
that,
in
addition
to
records
26
that
may
be
kept
confidential
pursuant
to
section
22.7,
the
27
following
records
provided
by
a
licensee
to
the
commission
28
shall
be
kept
confidential,
unless
otherwise
ordered
by
a
29
court,
by
the
lawful
custodian
of
the
records,
or
by
another
30
person
duly
authorized
to
release
such
information:
31
a.
Patron
and
customer
records.
32
b.
Security
reports
and
network
audits.
33
c.
Internal
control
and
compliance
records.
34
d.
Employee
records.
35
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e.
Marketing
expenses.
1
f.
Supplemental
schedules
to
the
certified
audit,
except
for
2
those
books
and
records
as
described
in
subsection
1
of
this
3
section,
that
are
obtained
by
the
commission
in
connection
with
4
the
annual
audit
under
section
99E.9.
5
g.
Any
information
specifically
requested
for
inspection
by
6
the
commission
or
a
representative
of
the
commission.
7
Sec.
33.
NEW
SECTION
.
99E.9
Annual
audit
of
licensee
8
operations.
9
Within
ninety
days
after
the
end
of
the
licensee’s
fiscal
10
year,
the
licensee
shall
transmit
to
the
commission
an
audit
11
of
the
licensee’s
total
internet
fantasy
sports
contest
12
operations,
including
an
itemization
of
all
expenses
and
13
subsidies.
Each
audit
shall
be
conducted
by
a
certified
public
14
accountant
authorized
to
practice
in
the
state
of
Iowa
under
15
chapter
542
who
is
selected
by
the
licensee
and
approved
by
the
16
commission.
17
Sec.
34.
NEW
SECTION
.
99E.10
Civil
penalty.
18
A
person
who
willfully
fails
to
comply
with
the
requirements
19
of
this
chapter
and
the
rules
adopted
pursuant
to
chapter
17A
20
under
this
chapter
shall
be
liable
for
a
civil
penalty
of
not
21
more
than
one
thousand
dollars
for
each
violation,
not
to
22
exceed
ten
thousand
dollars
for
violations
arising
out
of
the
23
same
transaction
or
occurrence,
which
shall
accrue
to
the
state
24
and
may
be
recovered
in
a
civil
action.
25
Sec.
35.
Section
99F.2,
Code
2019,
is
amended
to
read
as
26
follows:
27
99F.2
Scope
of
provisions.
28
This
chapter
does
not
apply
to
the
pari-mutuel
system
of
29
wagering
used
or
intended
to
be
used
in
connection
with
the
30
horse-race
or
dog-race
meetings
as
authorized
under
chapter
31
99D
,
internet
fantasy
sports
contests
authorized
under
chapter
32
99E,
lottery
or
lotto
games
authorized
under
chapter
99G
,
or
33
bingo
or
games
of
skill
or
chance
authorized
under
chapter
99B
.
34
Sec.
36.
Section
99F.4B,
Code
2019,
is
amended
to
read
as
35
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617
follows:
1
99F.4B
Rules.
2
The
department
of
inspections
and
appeals
shall
cooperate
3
to
the
maximum
extent
possible
with
the
division
of
criminal
4
investigation
in
adopting
rules
relating
to
the
gaming
5
operations
in
this
chapter
and
chapter
chapters
99D
and
99E
.
6
Sec.
37.
Section
232C.4,
subsection
3,
Code
2019,
is
amended
7
to
read
as
follows:
8
3.
An
emancipated
minor
shall
remain
subject
to
voting
9
restrictions
under
chapter
48A
,
gambling
restrictions
under
10
chapter
99B
,
99D
,
99F
,
99G
,
or
725
,
internet
fantasy
sports
11
contest
restrictions
under
chapter
99E,
alcohol
restrictions
12
under
chapter
123
,
compulsory
attendance
requirements
under
13
chapter
299
,
and
cigarette
tobacco
restrictions
under
chapter
14
453A
.
15
Sec.
38.
Section
714B.10,
subsection
1,
Code
2019,
is
16
amended
to
read
as
follows:
17
1.
Advertising
by
sponsors
registered
pursuant
to
chapter
18
557B
,
licensed
pursuant
to
chapter
99B
,
or
regulated
pursuant
19
to
chapter
99D
,
99E,
99F
,
or
99G
.
20
Sec.
39.
Section
725.15,
Code
2019,
is
amended
to
read
as
21
follows:
22
725.15
Exceptions
for
legal
gambling.
23
Sections
725.5
through
725.10
and
725.12
do
not
apply
to
24
a
game,
activity,
ticket,
or
device
when
lawfully
possessed,
25
used,
conducted,
or
participated
in
pursuant
to
chapter
99B
,
26
99E,
99F
,
or
99G
.
27
Sec.
40.
Section
805.8C,
Code
2019,
is
amended
by
adding
the
28
following
new
subsection:
29
NEW
SUBSECTION
.
12.
Internet
fantasy
sports
contest
30
violations.
For
violations
of
legal
age
for
entering
an
31
internet
fantasy
sports
contest
under
section
99E.7,
the
32
scheduled
fine
is
five
hundred
dollars.
Failure
to
pay
the
33
fine
by
a
person
under
the
age
of
eighteen
shall
not
result
in
34
the
person
being
detained
in
a
secure
facility.
35
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Sec.
41.
EMERGENCY
RULES.
The
state
racing
and
gaming
1
commission
created
under
section
99D.5
may
adopt
emergency
2
rules
under
section
17A.4,
subsection
3,
and
section
17A.5,
3
subsection
2,
paragraph
“b”,
to
implement
the
provisions
of
4
this
division
of
this
Act
and
the
rules
shall
be
effective
5
immediately
upon
filing
unless
a
later
date
is
specified
in
the
6
rules
but
in
no
event
earlier
than
July
4,
2019.
Any
rules
7
adopted
in
accordance
with
this
section
shall
also
be
published
8
as
a
notice
of
intended
action
as
provided
in
section
17A.4.
9
Sec.
42.
IMPLEMENTATION.
The
racing
and
gaming
commission
10
shall
not
implement
this
division
of
this
Act
until
the
later
11
of
July
4,
2019,
or
the
date
the
commission
has
adopted
rules
12
pursuant
to
chapter
17A
providing
for
such
implementation
and
13
such
rules
have
become
effective.
14
Sec.
43.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
15
deemed
of
immediate
importance,
takes
effect
upon
enactment.
16
DIVISION
III
17
GAMBLING
REGULATION
18
Sec.
44.
Section
8.57,
Code
2019,
is
amended
by
adding
the
19
following
new
subsection:
20
NEW
SUBSECTION
.
6.
a.
A
state
philanthropy,
opportunity,
21
reinvestment,
and
tourism
fund
is
created
under
the
authority
22
of
the
department
of
management.
The
fund
shall
consist
of
23
appropriations
made
to
the
fund
and
transfers
of
interest,
24
earnings,
and
moneys
from
other
funds
or
sources
as
provided
by
25
law.
The
state
philanthropy,
opportunity,
reinvestment,
and
26
tourism
fund
shall
be
separate
from
the
general
fund
of
the
27
state
and
the
balance
in
the
state
philanthropy,
opportunity,
28
reinvestment,
and
tourism
fund
shall
not
be
considered
part
of
29
the
balance
of
the
general
fund
of
the
state.
However,
the
30
state
philanthropy,
opportunity,
reinvestment,
and
tourism
31
fund
shall
be
considered
a
special
account
for
the
purposes
32
of
section
8.53,
relating
to
generally
accepted
accounting
33
principles.
34
b.
Moneys
in
the
state
philanthropy,
opportunity,
35
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reinvestment,
and
tourism
fund
are
not
subject
to
section
1
8.33.
Notwithstanding
section
12C.7,
subsection
2,
interest
2
or
earnings
on
moneys
in
the
state
philanthropy,
opportunity,
3
reinvestment,
and
tourism
fund
shall
be
credited
to
the
fund.
4
Moneys
in
the
state
philanthropy,
opportunity,
reinvestment,
5
and
tourism
fund
may
be
used
for
cash
flow
purposes
during
a
6
fiscal
year
provided
that
any
moneys
so
allocated
are
returned
7
to
the
fund
by
the
end
of
that
fiscal
year.
8
c.
Moneys
in
the
state
philanthropy,
opportunity,
9
reinvestment,
and
tourism
fund
in
a
fiscal
year
shall
be
used
10
as
directed
by
the
general
assembly.
11
d.
Annually,
on
or
before
January
15
of
each
year,
a
12
state
agency
that
received
an
appropriation
from
the
state
13
philanthropy,
opportunity,
reinvestment,
and
tourism
fund
shall
14
report
to
the
legislative
services
agency
and
the
department
of
15
management
the
status
of
all
projects
completed
or
in
progress.
16
The
report
shall
include
a
description
of
the
project,
the
17
progress
of
work
completed,
the
total
estimated
cost
of
the
18
project,
a
list
of
all
revenue
sources
being
used
to
fund
19
the
project,
the
amount
of
funds
expended,
the
amount
of
20
funds
obligated,
and
the
date
the
project
was
completed
or
an
21
estimated
completion
date
of
the
project,
where
applicable.
22
e.
Annually,
on
or
before
December
31
of
each
year,
a
23
recipient
of
moneys
from
the
state
philanthropy,
opportunity,
24
reinvestment,
and
tourism
fund
for
any
purpose
shall
report
25
to
the
state
agency
to
which
the
moneys
are
appropriated
the
26
status
of
all
projects
completed
or
in
progress.
The
report
27
shall
include
a
description
of
the
project,
the
progress
of
28
work
completed,
the
total
estimated
cost
of
the
project,
a
list
29
of
all
revenue
sources
being
used
to
fund
the
project,
the
30
amount
of
funds
expended,
the
amount
of
funds
obligated,
and
31
the
date
the
project
was
completed
or
an
estimated
completion
32
date
of
the
project,
where
applicable.
33
Sec.
45.
Section
99F.6,
Code
2019,
is
amended
by
adding
the
34
following
new
subsection:
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NEW
SUBSECTION
.
9.
The
board
of
directors
of
a
qualified
1
sponsoring
organization
licensed
to
operate
gambling
games
2
under
this
chapter
shall
include,
as
ex
officio,
nonvoting
3
members
of
the
board,
a
member
of
the
county
board
of
4
supervisors
and
a
member
of
a
city
council
for
each
county
and
5
city
that
has
a
licensed
gambling
games
facility
operated
by
6
the
qualified
sponsoring
organization.
The
ex
officio
members
7
shall
serve
terms
of
the
same
duration
as
voting
members
of
the
8
board.
However,
this
subsection
shall
not
apply
to
an
agency,
9
instrumentality,
or
political
subdivision
of
the
state
that
is
10
licensed
to
conduct
gambling
games
under
this
chapter.
11
Sec.
46.
Section
99F.17A,
Code
2019,
is
amended
to
read
as
12
follows:
13
99F.17A
Inspection
of
gambling
Gambling
games
or
implements
14
of
gambling
——
inspection
——
wagering
requirements
.
15
1.
A
licensed
manufacturer
or
distributor
of
gambling
games
16
or
implements
of
gambling
shall
deliver
the
gambling
games
or
17
implements
of
gambling
to
a
location
approved
by
the
commission
18
for
inspection
and
approval
prior
to
being
placed
in
operation.
19
Gambling
games
or
implements
of
gambling
acquired
pursuant
20
to
section
99F.17,
subsection
6
,
shall
be
inspected
and
21
approved
by
the
commission
prior
to
being
placed
in
operation.
22
Gambling
games
or
implements
of
gambling
passing
inspection
23
and
receiving
approval
may
then
be
placed
in
operation
on
an
24
excursion
gambling
boat.
25
2.
A
licensee
that
offers
gambling
games
containing
a
wheel
26
and
ball,
or
virtual
simulation,
shall
have
at
least
one
of
27
these
games
that
provide
for
a
house
edge
under
three
percent
28
for
a
single
number
wager.
29
Sec.
47.
EFFECTIVE
DATE.
The
following,
being
deemed
of
30
immediate
importance,
takes
effect
upon
enactment:
31
The
section
of
this
division
of
this
Act
amending
section
32
8.57.
33
EXPLANATION
34
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
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the
explanation’s
substance
by
the
members
of
the
general
assembly.
1
This
bill
authorizes
wagering
on
sporting
events
and
fantasy
2
sports
contests
and
amends
provisions
relating
to
gambling
game
3
regulation.
4
SPORTS
WAGERING.
Division
I
of
the
bill
authorizes
wagering
5
on
certain
sporting
events
and
provides
for
the
licensing
and
6
regulation
of
sports
wagering.
7
Code
section
99F.1,
concerning
definitions,
is
amended.
The
8
bill
defines
“sports
wagering”
as
acceptance
of
wagers
on
an
9
authorized
sporting
event
by
any
system
of
wagering
authorized
10
by
the
commission.
“Sports
wagering”
is
further
defined
to
11
exclude
wagering
on
the
performance
of
an
athlete
participating
12
in
a
collegiate
sporting
event
that
includes
a
collegiate
team
13
from
this
state
or
in
an
individual
olympic
event
in
which
any
14
athlete
is
under
18
years
of
age.
15
The
bill
defines
“authorized
sporting
event”
as
a
16
professional
sporting
event,
collegiate
sporting
event,
17
international
sporting
event
or
professional
motor
race
18
event.
The
bill
specifically
excludes
from
the
definition
of
19
“authorized
sporting
event”
a
race
as
defined
in
Code
section
20
99D.2,
a
fantasy
sports
contest
as
defined
in
Code
section
21
99E.1
as
provided
in
the
bill,
a
minor
league
sporting
event,
22
or
any
athletic
event
or
competition
of
an
interscholastic
23
sport
as
defined
in
Code
section
9A.102.
The
bill
further
24
defines
each
sporting
event
included
in
the
definition
of
25
authorized
sporting
event
and
defines
and
excludes
from
the
26
definition
of
“professional
sporting
event”,
a
minor
league
27
sporting
event.
“Sports
wagering
net
receipts”
is
defined
28
as
gross
receipts
less
winnings
paid
to
wagerers
on
sports
29
wagering.
“Sports
wagering
area”
is
defined
as
an
area,
as
30
designated
by
the
commission,
in
which
sports
wagering
is
31
conducted.
32
Code
sections
99D.7(23)
and
99F.4(22),
concerning
persons
33
voluntarily
excluded
from
wagering
or
gaming
areas,
are
amended
34
to
include
internet
fantasy
sports
contests,
advance
deposit
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wagering,
advance
deposit
sports
wagering,
and
the
sports
1
wagering
area.
2
Code
section
99F.3,
concerning
authorized
wagering
under
3
Code
chapter
99F,
is
amended
to
authorize
sports
wagering.
4
Code
section
99F.4,
concerning
racing
and
gaming
commission
5
powers,
is
amended
to
authorize
the
operation
of
sports
6
wagering
in
a
sports
wagering
area
on
an
excursion
gambling
7
boat
which
is
also
licensed
to
serve
alcoholic
beverages,
8
grants
the
racing
and
gaming
commission
the
authority
to
adopt
9
standards
under
which
sports
wagering
is
conducted
including
10
the
scope
and
type
of
wagers
allowed.
The
bill
provides
that
11
revenue
received
by
the
commission
from
license
fees
for
12
sports
wagering
shall
be
deposited
in
the
state
philanthropy,
13
opportunity,
reinvestment,
and
tourism
fund
as
created
by
the
14
bill
and
revenue
received
by
the
commission
from
regulatory
15
fees
shall
be
deposited
into
the
gaming
regulatory
revolving
16
fund
established
in
Code
section
99F.20.
17
Code
sections
99F.5
and
99F.6,
concerning
distribution
18
of
gambling
game
receipts
for
educational,
civic,
public,
19
charitable,
patriotic,
or
religious
uses,
is
amended
to
provide
20
that
three-quarters
of
one
percent
of
sports
wagering
net
21
receipts
shall
also
be
distributed
for
these
purposes.
22
Code
section
99F.6,
concerning
licensee
applicants,
is
23
further
amended
to
provide
that
net
receipts,
for
purposes
of
24
determining
purse
agreements
for
horse
racing,
include
sports
25
wagering
net
receipts.
26
New
Code
section
99F.7A
provides
specific
requirements
27
relative
to
the
licensing,
operation,
and
fees
applicable
to
28
sports
wagering.
29
The
bill
provides
that
the
commission
shall,
upon
payment
of
30
an
initial
license
fee
of
$75,000,
issue
a
license
to
conduct
31
sports
wagering
to
a
licensee
authorized
to
conduct
gambling
32
games
at
a
pari-mutuel
racetrack
enclosure
or
a
licensee
33
authorized
to
operate
an
excursion
gambling
boat
or
gambling
34
structure.
The
bill
provides
for
an
annual
renewal
fee
of
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$5,000.
The
new
Code
section
also
provides
that
a
licensee
1
shall
include
on
the
internet
site
or
mobile
application
used
2
by
the
licensee
to
conduct
advance
deposit
sports
wagering
the
3
statewide
telephone
number
authorized
by
the
Iowa
department
4
of
public
health
to
provide
problem
gambling
information
and
5
extensive
responsible
gaming
features.
The
bill
provides
that
6
a
licensee
establish,
and
display
and
post,
sports
wagering
7
rules
specifying
the
amounts
to
be
paid
on
winning
wagers,
the
8
effect
of
changes
in
the
scheduling
of
an
authorized
sporting
9
event,
and
the
source
of
information
used
to
determine
the
10
outcome
of
a
wager.
The
bill
also
provides
that
a
licensee
11
may
enter
into
operating
agreements
with
up
to
two
entities
to
12
conduct
advance
deposit
sports
wagering.
The
new
Code
section
13
also
provides
that
a
licensee
issued
a
license
to
conduct
14
sports
wagering
shall
employ
reasonable
steps
to
prohibit
15
coaches,
athletic
trainers,
officials,
players,
participants,
16
or
other
persons
employed
in
a
position
with
direct
involvement
17
with
such
individuals
from
sports
wagering
under
Code
chapter
18
99F.
19
Code
section
99F.8,
concerning
licensee
bonding
20
requirements,
is
amended
to
make
such
requirements
applicable
21
to
sports
wagering.
22
Code
section
99F.9,
concerning
wagering
on
gambling
games,
23
is
amended
to
allow
the
commission
to
authorize
gambling
game
24
licensees
under
Code
chapter
99F
to
conduct
advance
deposit
25
sports
wagering.
The
bill
also
allows
a
licensee
under
Code
26
section
99F.7A
to
enter
into
an
agreement
with
an
advance
27
deposit
sports
wagering
operator
licensed
by
the
commission
to
28
provide
advance
deposit
sports
wagering
for
the
licensee
and
29
allows
the
commission
to
require
the
advance
deposit
sports
30
wagering
operator
to
conduct
an
audit.
The
bill
would
allow
31
for
an
advance
deposit
wager
to
be
placed
in
person
at
a
32
licensed
facility
authorized
to
conduct
gambling
games
or
from
33
any
other
location
by
telephone
or
other
electronic
means.
34
The
bill
defines
“advance
deposit
sports
wagering”
as
a
form
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of
wagering
where
an
eligible
individual
creates
an
account
1
with
a
licensee,
deposits
money
into
that
account,
and
can
use
2
the
balance
within
the
account
for
sports
wagering.
Prior
to
3
January
1,
2021,
an
account
must
be
established
in
person
with
4
a
licensee.
The
bill
defines
an
“eligible
individual”
for
5
purposes
of
advance
deposit
sports
wagering
as
an
individual
6
21
years
of
age
or
older
who
is
located
within
this
state.
The
7
bill
provides
that
an
unlicensed
person
taking
sports
wagers
8
from
Iowa
residents
is
guilty
of
a
class
“D”
felony,
punishable
9
by
confinement
for
no
more
than
five
years
and
a
fine
of
at
10
least
$750
but
not
more
than
$7,500.
The
Code
section
is
also
11
amended
to
provide
that
a
person
under
the
age
of
21
shall
12
not
make
or
attempt
to
make
a
wager
by
advance
deposit
sports
13
wagering.
14
Code
section
99F.11,
concerning
the
wagering
tax,
is
15
amended.
The
bill
provides
that
sports
wagering
net
receipts
16
received
each
fiscal
year
by
a
licensed
operator
from
sports
17
betting
shall
be
taxed
at
the
rate
of
six
and
three-quarters
18
percent.
The
taxes
imposed
shall
be
paid
by
the
licensed
19
operator
to
the
treasurer
of
state
as
determined
by
the
20
commission.
The
bill
provides
that
of
the
taxes
collected,
21
an
amount
equal
to
one-half
of
one
percent
of
sports
wagering
22
net
receipts
shall
be
deposited
in
the
county
endowment
23
fund
created
in
Code
section
15E.311
with
the
remainder
of
24
taxes
collected
to
be
credited
to
the
state
philanthropy,
25
opportunity,
reinvestment,
and
tourism
fund
as
created
by
the
26
bill.
27
Code
section
99F.12,
concerning
certain
required
reports
28
and
records
of
licensees,
is
amended
to
provide
that
a
sports
29
wagering
licensee
shall
promptly
report
to
the
commission
any
30
criminal
or
disciplinary
proceedings
commenced
against
the
31
licensee,
any
abnormal
sports
wagering
activity,
and
any
other
32
conduct
with
the
potential
to
corrupt
a
wagering
outcome
of
an
33
authorized
sporting
event.
The
bill
requires
the
commission
34
to
promptly
report
any
information
received
with
any
law
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enforcement
entity,
sports
team,
sports
governing
body,
or
1
regulatory
agency
the
commission
deems
appropriate.
The
bill
2
also
provides
that,
with
the
approval
of
the
racing
and
gaming
3
commission,
a
sports
wagering
licensee
shall
cooperate
with
4
investigations
conducted
by
a
sports
governing
body.
5
Code
section
99F.15,
concerning
certain
prohibited
6
activities
and
penalties,
is
amended
to
provide
that
current
7
prohibitions
on
cheating
at
a
gambling
game,
claiming
anything
8
of
value
from
a
gambling
game
with
intent
to
defraud,
and
9
knowingly
enticing
a
person
to
go
where
a
gambling
game
is
10
conducted
in
violation
of
Code
chapter
99F
also
applies
to
11
sports
wagering.
12
Code
section
99F.20,
concerning
the
gaming
regulatory
13
revolving
fund,
is
amended
to
provide
that
regulatory
fees
14
by
an
internet
fantasy
sports
contest
service
provider
and
15
by
a
licensee
authorized
to
conduct
sports
wagering
shall
be
16
deposited
in
the
fund.
The
Code
section
is
further
amended
to
17
provide
that
costs
relating
to
internet
fantasy
sports
contest
18
and
sports
wagering
regulation
shall
be
paid
from
the
gambling
19
regulatory
revolving
fund
as
provided
in
appropriations
made
20
for
this
purpose
by
the
general
assembly.
21
The
bill
also
authorizes
the
racing
and
gaming
commission
to
22
issue
a
temporary
license
to
an
advance
deposit
sports
wagering
23
operator.
24
This
division
of
the
bill
takes
effect
upon
enactment.
25
However,
the
bill
authorizes
the
racing
and
gaming
commission
26
to
adopt
emergency
rules
to
implement
the
bill
and
provides
27
that
the
racing
and
gaming
commission
shall
not
implement
this
28
division
of
the
bill
until
the
later
of
July
4,
2019,
or
the
29
date
the
commission
has
adopted
rules
pursuant
to
Code
chapter
30
17A
providing
for
such
implementation
and
such
rules
have
31
become
effective.
32
FANTASY
SPORTS
CONTESTS.
Division
II
of
the
bill
authorizes
33
internet
fantasy
sports
contests
and
provides
for
the
34
licensing,
regulation,
and
taxation
of
internet
fantasy
sports
35
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contests.
1
Code
section
80.25,
concerning
gaming
investigation
and
2
enforcement
by
the
division
of
criminal
investigation
of
3
the
department
of
public
safety,
is
amended
to
provide
for
4
investigation
and
enforcement
concerning
the
new
Code
chapter.
5
New
Code
section
99E.1
provides
for
definitions.
A
“fantasy
6
sports
contest”
is
defined
as
any
fantasy
or
simulated
game
7
or
contest
in
which
all
prizes
and
awards
offered
to
winning
8
participants
are
established
and
made
known
in
advance
of
the
9
contest,
all
winning
outcomes
reflect
the
relative
knowledge
10
and
skill
of
the
participants
and
are
determined
predominantly
11
by
accumulated
statistical
results
of
the
performance
of
12
individuals,
and
no
winning
outcome
is
solely
based
on
the
13
score,
or
performance
of
any
single
actual
team
or
combination
14
of
such
teams
or
solely
on
any
single
performance
of
an
15
individual
athlete
in
any
single
actual
sporting
or
other
16
event.
An
“internet
fantasy
sports
contest”
is
defined
as
a
17
method
of
entering
a
fantasy
sports
contest
by
establishing
18
an
account
with
an
internet
fantasy
sports
contest
service
19
provider.
An
“internet
fantasy
sports
contest
player”
is
20
defined
as
a
person
who
is
at
least
21
years
of
age
who
21
participates
in
an
internet
fantasy
sports
contest.
The
22
bill
also
defines
“internet
fantasy
sports
contest
adjusted
23
revenues”,
“internet
fantasy
sports
contest
service
provider”,
24
and
“location
percentage”.
25
New
Code
section
99E.2
provides
that
the
system
of
entering
26
an
internet
fantasy
sports
contest
is
legal
when
conducted
by
a
27
licensed
internet
fantasy
sports
contest
service
provider
as
28
provided
in
the
new
Code
chapter.
29
New
Code
section
99E.3
establishes
the
powers
of
the
racing
30
and
gaming
commission
in
relation
to
internet
fantasy
sports
31
contests
and
internet
fantasy
sports
contest
service
providers.
32
Specifically,
the
Code
section
authorizes
the
commission
33
to
investigate
and
license
internet
fantasy
sports
contest
34
service
providers,
assess
fines
and
revoke
or
suspend
licenses,
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impose
penalties
for
violations
of
the
Code
chapter,
and
take
1
any
other
action
to
enforce
the
requirements
of
the
new
Code
2
chapter.
3
New
Code
section
99E.4
establishes
the
requirements
for
an
4
applicant
to
be
granted
a
license
to
conduct
internet
fantasy
5
sports
contests.
The
Code
section
allows
the
commission
6
to
charge
the
applicant
a
fee
for
the
department
of
public
7
safety,
division
of
criminal
investigation,
to
defray
the
8
costs
associated
with
any
investigation.
The
new
Code
9
section
provides
that
a
license
shall
not
be
issued
if
there
10
is
evidence
that
the
applicant
has
failed
to
meet
certain
11
qualifying
requirements.
The
Code
section
provides
that
a
12
person
who
knowingly
makes
a
false
statement
on
the
application
13
is
guilty
of
an
aggravated
misdemeanor.
14
New
Code
section
99E.5
establishes
the
terms
and
conditions
15
of
licenses
issued
to
conduct
internet
fantasy
sports
contests.
16
The
Code
section
provides
that
a
license
may
be
issued
for
17
a
period
of
not
more
than
three
years
and
provides
for
an
18
initial
license
fee
of
$5,000
and
an
annual
license
fee
of
19
$1,000
or
$5,000
for
licensees
with
annual
internet
fantasy
20
sports
contest
adjusted
revenues
of
$150,000
or
more.
The
bill
21
provides
that
the
license
fees
shall
be
deposited
in
the
state
22
philanthropy,
opportunity,
reinvestment,
and
tourism
fund
as
23
created
by
the
bill.
The
Code
section
also
provides
for
the
24
payment
of
a
regulatory
fee
to
be
set
by
the
racing
and
gaming
25
commission
based
on
the
costs
of
administering
and
enforcing
26
the
new
Code
chapter.
The
Code
section
further
provides
that
27
each
licensee
shall
receive
a
credit
for
the
amount
of
the
28
regulatory
fee
paid
against
taxes
to
be
paid
pursuant
to
the
29
new
Code
chapter.
The
Code
section
provides
that
a
licensed
30
internet
fantasy
sports
contest
service
provider
shall
use
31
commercially
reasonable
methods
to
prevent
any
employees
and
32
certain
family
members
from
participating
in
internet
fantasy
33
sports
contests
on
the
service
provider’s
digital
platform,
34
verify
that
internet
fantasy
sports
contest
players
located
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in
this
state
are
21
or
older,
ensure
that
participants
in
1
a
game
or
contest
shall
not
be
allowed
to
enter
an
internet
2
fantasy
sports
contest
involving
that
game
or
contest,
permit
3
individuals
to
establish
an
account
with
an
internet
fantasy
4
sports
contest
service
provider
by
electronic
communication
and
5
to
restrict
themselves
from
entering
an
internet
fantasy
sports
6
contest,
conduct
an
annual
audit,
and
pay
the
tax
imposed
by
7
the
new
Code
chapter.
8
New
Code
section
99E.6
provides
for
a
tax
of
six
and
9
three-quarters
percent
on
internet
fantasy
sports
contest
10
adjusted
revenues.
The
bill
defines
“internet
fantasy
sports
11
contest
adjusted
revenues”
as
the
total
of
fees
and
charges
12
collected,
less
winnings,
in
an
internet
fantasy
sports
contest
13
multiplied
by
the
percentage
of
fees
and
charges
paid
by
14
participants
who
are
located
in
this
state
in
that
contest.
15
The
taxes
imposed
shall
be
paid
by
the
internet
fantasy
16
sports
contest
service
provider
to
the
treasurer
of
state
as
17
determined
by
the
commission.
The
bill
provides
that
of
the
18
taxes
collected,
an
amount
equal
to
one-half
of
one
percent
19
of
internet
fantasy
sports
contest
adjusted
revenues
shall
be
20
deposited
in
the
county
endowment
fund
created
in
Code
section
21
15E.311
with
the
remainder
of
taxes
collected
to
be
credited
to
22
the
state
philanthropy,
opportunity,
reinvestment,
and
tourism
23
fund
as
created
by
the
bill.
24
New
Code
section
99E.7
provides
that
a
person
under
the
25
age
of
21
shall
not
enter
an
internet
fantasy
sports
contest.
26
A
person
who
violates
this
Code
section
commits
a
scheduled
27
violation
under
Code
section
805.8C
and
is
subject
to
a
$500
28
fine.
Code
section
805.8C
is
amended
to
reflect
this
violation
29
and
applicable
fine.
30
New
Code
section
99E.8
requires
an
internet
fantasy
sports
31
contest
service
provider
to
keep
books
and
records
on
internet
32
fantasy
sports
contest
adjusted
revenues
and
to
provide
the
33
commission
with
reports
and
information
as
the
commission
may
34
require.
The
bill
provides
that
a
licensee
promptly
report
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to
the
commission
any
criminal
or
disciplinary
proceedings
1
commenced
against
the
licensee,
any
abnormal
fantasy
sports
2
contest
activity,
and
any
other
conduct
with
the
potential
3
to
corrupt
an
outcome
of
an
internet
fantasy
sports
contest.
4
The
bill
authorizes
the
commission
to
share
any
information
5
received
with
the
division
of
criminal
investigation,
any
other
6
law
enforcement
entity,
or
regulatory
agency
the
commission
7
deems
appropriate.
The
commission
shall
promptly
report
8
information
with
a
sports
team
or
sports
governing
body
as
the
9
commission
deems
appropriate
if
it
will
not
interfere
with
an
10
ongoing
criminal
investigation.
11
New
Code
section
99E.9
requires
a
licensee
to
conduct
an
12
audit
within
90
days
after
the
end
of
the
licensee’s
fiscal
13
year.
14
New
Code
section
99E.10
establishes
civil
penalties.
The
15
new
Code
section
provides
that
a
person
who
willfully
fails
to
16
comply
with
the
requirements
of
this
new
Code
chapter
shall
be
17
liable
for
a
civil
penalty
of
not
more
than
$1,000
for
each
18
violation,
not
to
exceed
$10,000
for
violations
arising
out
of
19
the
same
transaction
or
occurrence.
20
The
bill
also
makes
changes
to
Code
sections
99F.2,
99F.4B,
21
232C.4,
714B.10,
and
725.15
to
provide
that
provisions
in
those
22
Code
sections
that
list
some
or
all
Code
chapters
that
govern
23
lawful
gambling
also
lists
the
new
Code
chapter
provided
in
24
this
division
of
the
bill.
25
This
division
of
the
bill
takes
effect
upon
enactment.
26
However,
the
bill
authorizes
the
racing
and
gaming
commission
27
to
adopt
emergency
rules
to
implement
the
bill
and
provides
28
that
the
racing
and
gaming
commission
shall
not
implement
this
29
division
of
the
bill
until
the
later
of
July
4,
2019,
or
the
30
date
the
commission
has
adopted
rules
pursuant
to
Code
chapter
31
17A
providing
for
such
implementation
and
such
rules
have
32
become
effective.
33
GAMBLING
REGULATION.
Code
section
8.57
is
amended
to
create
34
a
state
philanthropy,
opportunity,
reinvestment,
and
tourism
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fund
under
the
control
of
the
department
of
management.
Moneys
1
in
the
fund
shall
be
used
as
directed
by
the
general
assembly.
2
This
provision
of
this
division
of
the
bill
takes
effect
upon
3
enactment.
4
Code
section
99F.6
is
amended
to
provide
that
a
qualified
5
sponsoring
organization
licensed
to
operate
gambling
games
6
shall
include,
as
ex
officio,
nonvoting
members
of
the
board,
7
a
member
of
the
county
board
of
supervisors
and
a
member
of
8
a
city
council
for
each
county
and
city
that
has
a
licensed
9
gambling
games
facility
operated
by
the
qualified
sponsoring
10
organization.
11
Code
section
99F.17A,
concerning
gambling
games
or
12
implements
of
gambling,
is
amended
to
provide
that
if
a
13
licensee
offers
gambling
games
containing
a
wheel
and
ball,
or
14
virtual
simulation,
at
least
one
of
these
games
shall
provide
15
for
a
house
edge
under
3
percent
for
a
single
number
wager.
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