H.F. 2497 DIVISION I 1 CASHLESS WAGERING 2 Section 1. Section 99D.9, subsection 6, paragraph b, Code 3 2022, is amended to read as follows: 4 b. A licensee shall not permit a financial institution, 5 vendor, or other person to dispense cash or credit through an 6 electronic or mechanical device including but not limited to a 7 satellite terminal as defined in section 527.2 , that is located 8 in the wagering area. However, this paragraph shall not apply 9 to cashless wagering systems where a person accesses a cash 10 account through a personal electronic device. 11 Sec. 2. Section 99F.7, subsection 10, paragraph b, Code 12 2022, is amended to read as follows: 13 b. A licensee shall not permit a financial institution, 14 vendor, or other person to dispense cash or credit through an 15 electronic or mechanical device including but not limited to 16 a satellite terminal, as defined in section 527.2 , that is 17 located on the gaming floor. However, this paragraph shall not 18 apply to cashless wagering systems where a person accesses a 19 cash account through a personal electronic device. 20 DIVISION II 21 GAMING WINNINGS FORFEITURE AND WITHHOLDING 22 Sec. 3. Section 99D.7, subsection 23, Code 2022, is amended 23 to read as follows: 24 23. To establish a process to allow a person to be 25 voluntarily excluded from advance deposit wagering as defined 26 in section 99D.11 , from an internet fantasy sports contest as 27 defined in section 99E.1 , from advance deposit sports wagering 28 as defined in section 99F.9 , and from the wagering area of 29 a racetrack enclosure, from the gaming floor, and from the 30 sports wagering area, as defined in section 99F.1 , of all 31 other licensed facilities under this chapter and chapter 99F 32 as provided in this subsection . The process shall provide 33 that an initial request by a person to be voluntarily excluded 34 shall be for a period of five years or life and any subsequent 35 -1- LSB 5510HV (2) 89 ec/rn 1/ 12

H.F. 2497 request following any five-year period shall be for a period of 1 five years or life. The process established shall require that 2 licensees be provided electronic access to names and social 3 security numbers of persons voluntarily excluded through a 4 secured interactive internet site maintained by the commission 5 and information regarding persons voluntarily excluded shall 6 be disseminated to all licensees under this chapter , chapter 7 99E , and chapter 99F . The names, social security numbers, and 8 information regarding persons voluntarily excluded shall be 9 kept confidential unless otherwise ordered by a court or by 10 another person duly authorized to release such information. 11 The process established shall also require a person requesting 12 to be voluntarily excluded be provided information compiled 13 by the Iowa department of public health on gambling treatment 14 options. The state and any licensee under this chapter , 15 chapter 99E , or chapter 99F shall not be liable to any person 16 for any claim which may arise from this process. In addition 17 to any other penalty provided by law, any money or thing of 18 value that has been obtained by, or is owed to, a voluntarily 19 excluded person as a result of wagers made by the person after 20 the person has been voluntarily excluded shall be forfeited by 21 the person and shall be credited to the general fund of the 22 state. The state and any licensee under this chapter, chapter 23 99E, or chapter 99F shall not be liable to any person for any 24 claim, action, or inaction which may arise from processes 25 described in this subsection, and any licensee under this 26 chapter, chapter 99E, or chapter 99F shall not be responsible 27 for payment to the state of any money or thing of value paid 28 to a voluntarily excluded person. The commission shall not 29 initiate any administrative action or impose penalties for 30 unintentional licensee errors which may arise from processes 31 described in this subsection. 32 Sec. 4. Section 99D.24, Code 2022, is amended by adding the 33 following new subsection: 34 NEW SUBSECTION . 2A. A person who has been voluntarily 35 -2- LSB 5510HV (2) 89 ec/rn 2/ 12

H.F. 2497 excluded pursuant to section 99D.7, subsection 23, who refuses 1 to forfeit money or a thing of value obtained as a result of 2 wagers made by the person after the person has been voluntarily 3 excluded is guilty of a simple misdemeanor and shall pay 4 restitution to the state in an amount equivalent to the money 5 or thing of value obtained. 6 Sec. 5. Section 99D.28, subsections 2 and 7, Code 2022, are 7 amended to read as follows: 8 2. The licensee is authorized and directed to withhold 9 any winnings of a debtor which are paid out directly by the 10 licensee subject to the lien created by this section and 11 provide notice of such withholding to the winner when the 12 winner appears and claims winnings in person. The licensee may 13 retain an amount equal to the lesser of five percent of the 14 amount withheld or one hundred dollars, and then shall pay the 15 remaining funds over to the collection entity which administers 16 the setoff program pursuant to section 8A.504 . 17 7. A claimant agency or licensee , acting in good faith, 18 under this chapter or chapter 99F shall not be liable to any 19 person for actions taken pursuant to any claim, action, or 20 inaction which may arise from processes described in this 21 section . In addition, any licensee under this chapter or 22 chapter 99F shall not be responsible for payment to a claimant 23 agency of any money or thing of value that has been paid to a 24 debtor. The debtor shall be solely responsible for all debts 25 owed and not collected under this section. The commission 26 shall not initiate any administrative action or impose 27 penalties for unintentional licensee errors which may arise 28 from processes described in this section. 29 Sec. 6. Section 99F.4, subsection 22, Code 2022, is amended 30 to read as follows: 31 22. To establish a process to allow a person to be 32 voluntarily excluded from advance deposit wagering as defined 33 in section 99D.11 , from an internet fantasy sports contest 34 as defined in section 99E.1 , from advance deposit sports 35 -3- LSB 5510HV (2) 89 ec/rn 3/ 12

H.F. 2497 wagering as defined in section 99F.9 , from the gaming floor 1 and sports wagering area of an excursion gambling boat, from 2 the wagering area, as defined in section 99D.2 , and from the 3 gaming floor and sports wagering area of all other licensed 4 facilities under this chapter and chapter 99D as provided in 5 this subsection . The process shall provide that an initial 6 request by a person to be voluntarily excluded shall be for 7 a period of five years or life and any subsequent request 8 following any five-year period shall be for a period of five 9 years or life. The process established shall require that 10 licensees be provided electronic access to names and social 11 security numbers of persons voluntarily excluded through a 12 secured interactive internet site maintained by the commission 13 and information regarding persons voluntarily excluded shall 14 be disseminated to all licensees under this chapter , chapter 15 99D , and chapter 99E . The names, social security numbers, and 16 information regarding persons voluntarily excluded shall be 17 kept confidential unless otherwise ordered by a court or by 18 another person duly authorized to release such information. 19 The process established shall also require a person requesting 20 to be voluntarily excluded be provided information compiled 21 by the Iowa department of public health on gambling treatment 22 options. The state and any licensee under this chapter , 23 chapter 99D , or chapter 99E shall not be liable to any person 24 for any claim which may arise from this process. In addition 25 to any other penalty provided by law, any money or thing of 26 value that has been obtained by, or is owed to, a voluntarily 27 excluded person as a result of wagers made by the person after 28 the person has been voluntarily excluded shall be forfeited by 29 the person and shall be credited to the general fund of the 30 state. The state and any licensee under this chapter, chapter 31 99D, or chapter 99E shall not be liable to any person for any 32 claim, action, or inaction which may arise from processes 33 described in this subsection, and any licensee under this 34 chapter, chapter 99D, or chapter 99E shall not be responsible 35 -4- LSB 5510HV (2) 89 ec/rn 4/ 12

H.F. 2497 for payment to the state of any money or thing of value paid 1 to a voluntarily excluded person. The commission shall not 2 initiate any administrative action or impose penalties for 3 unintentional licensee errors which may arise from processes 4 described in this subsection. 5 Sec. 7. Section 99F.15, Code 2022, is amended by adding the 6 following new subsection: 7 NEW SUBSECTION . 2A. A person who has been voluntarily 8 excluded pursuant to section 99F.4, subsection 22, who refuses 9 to forfeit money or a thing of value obtained as a result of 10 wagers made by the person after the person has been voluntarily 11 excluded is guilty of a simple misdemeanor and shall pay 12 restitution to the state in an amount equivalent to the money 13 or thing of value obtained. 14 Sec. 8. Section 99F.19, subsections 2 and 7, Code 2022, are 15 amended to read as follows: 16 2. The licensee is authorized and directed to withhold 17 any winnings of a debtor which are paid out directly by the 18 licensee subject to the lien created by this section and 19 provide notice of such withholding to the winner when the 20 winner appears and claims winnings in person. The licensee may 21 retain an amount equal to the lesser of five percent of the 22 amount withheld or one hundred dollars, and then shall pay the 23 remaining funds over to the collection entity which administers 24 the setoff program pursuant to section 8A.504 . 25 7. A claimant agency or licensee , acting in good faith, 26 under this chapter or chapter 99D shall not be liable to any 27 person for actions taken pursuant to any claim, action, or 28 inaction which may arise from processes described in this 29 section . In addition, any licensee under this chapter or 30 chapter 99D shall not be responsible for payment to a claimant 31 agency of any money or thing of value that has been paid to a 32 debtor. The debtor shall be solely responsible for all debts 33 owed and not collected under this section. The commission 34 shall not initiate any administrative action or impose 35 -5- LSB 5510HV (2) 89 ec/rn 5/ 12

H.F. 2497 penalties for unintentional licensee errors which may arise 1 from processes described in this section. 2 DIVISION III 3 SPORTS WAGERING 4 Sec. 9. Section 99F.1, subsection 3, Code 2022, is amended 5 to read as follows: 6 3. “Authorized sporting event” means a professional sporting 7 event, collegiate sporting event, international sporting 8 event, electronic sports event, or professional motor race 9 event. “Authorized sporting event” does not include a race as 10 defined in section 99D.2 , a fantasy sports contest as defined 11 in section 99E.1 , minor league sporting event, or any athletic 12 event or competition of an interscholastic sport as defined in 13 section 9A.102 . 14 Sec. 10. Section 99F.1, Code 2022, is amended by adding the 15 following new subsection: 16 NEW SUBSECTION . 10A. “Electronic sports event” means 17 a multiplayer video game event governed by a recognized 18 professional, international, or collegiate video game governing 19 body. 20 Sec. 11. Section 99F.1, subsection 24, Code 2022, is amended 21 to read as follows: 22 24. “Professional sporting event” means an event, 23 excluding a minor league sporting event, at which two or 24 more persons participate in sports or athletic events and 25 receive compensation in excess of actual expenses for their 26 participation in such event , unless the event includes 27 professional athletes participating in a sports or athletic 28 event without compensation in excess of actual expenses for a 29 charitable purpose . 30 Sec. 12. Section 99F.1, Code 2022, is amended by adding the 31 following new subsection: 32 NEW SUBSECTION . 27A. “Sports-related event” means an 33 event that takes place in relation to an authorized sporting 34 event, but that is not tied to the outcome of a specific 35 -6- LSB 5510HV (2) 89 ec/rn 6/ 12

H.F. 2497 athletic event or contest as authorized by the commission. 1 “Sports-related event” includes but is not limited to 2 professional sports drafts and individual player awards. 3 Sec. 13. Section 99F.1, subsection 28, Code 2022, is amended 4 to read as follows: 5 28. “Sports wagering” means the acceptance of wagers on 6 an authorized sporting event or sports-related event by any 7 system of wagering as authorized by the commission. “Sports 8 wagering” does not include placing a wager on the performance 9 or nonperformance of any individual athlete participating in a 10 single game or match of a collegiate sporting event in which 11 a collegiate team from this state is a participant, placing 12 a wager on any individual performance or nonperformance of a 13 participant in an electronic sports event who is under eighteen 14 years of age, or placing a wager on the performance of athletes 15 in an individual international sporting event governed by the 16 international olympic committee in which any participant in the 17 international sporting event is under eighteen years of age. 18 Sec. 14. Section 99F.7A, subsection 2, paragraph b, Code 19 2022, is amended to read as follows: 20 b. Establish, subject to commission approval, sports 21 wagering rules that specify the amounts to be paid on winning 22 sports wagers, the effect of changes in the scheduling of an 23 authorized sporting event or sports-related event subject to 24 sports wagering, and the source of the information used to 25 determine the outcome of a sports wager. The sports wagering 26 rules shall be displayed in the licensee’s sports wagering 27 area, posted on the internet site or mobile application used 28 by the licensee to conduct advance deposit sports wagering as 29 authorized in section 99F.9 , and included in the terms and 30 conditions of the licensee’s advance deposit sports wagering 31 system. 32 Sec. 15. Section 99F.7A, subsection 4, Code 2022, is amended 33 to read as follows: 34 4. A licensee issued a license to conduct sports wagering 35 -7- LSB 5510HV (2) 89 ec/rn 7/ 12

H.F. 2497 under this section shall employ reasonable steps to prohibit 1 coaches, athletic trainers, officials, players, or other 2 individuals who participate in an authorized sporting event or 3 sports-related event that is the subject of sports wagering 4 from sports wagering under this chapter . In addition, a 5 licensee shall employ reasonable steps to prohibit persons 6 who are employed in a position with direct involvement with 7 coaches, players, athletic trainers, officials, players, or 8 participants in an authorized sporting event or sports-related 9 event that is the subject of sports wagering from sports 10 wagering under this chapter . 11 Sec. 16. Section 99F.12, subsection 2, paragraph b, Code 12 2022, is amended to read as follows: 13 b. A licensee under section 99F.7A shall promptly report 14 to the commission any criminal or disciplinary proceedings 15 commenced against the licensee or its employees in connection 16 with the licensee conducting sports wagering or advance 17 deposit sports wagering, any abnormal wagering activity or 18 patterns that may indicate a concern about the integrity of 19 an authorized sporting event or events sports-related event , 20 and any other conduct with the potential to corrupt a wagering 21 outcome of an authorized sporting event or sports-related 22 event for purposes of financial gain, including but not 23 limited to match fixing, and suspicious or illegal wagering 24 activities, including the use of funds derived from illegal 25 activity, wagers to conceal or launder funds derived from 26 illegal activity, use of agents to place wagers, or use of 27 false identification. The commission is required to share 28 any information received pursuant to this paragraph with the 29 division of criminal investigation, any other law enforcement 30 entity upon request, or any regulatory agency the commission 31 deems appropriate. The commission shall promptly report any 32 information received pursuant to this paragraph with any 33 sports team or sports governing body as the commission deems 34 appropriate, but shall not share any information that would 35 -8- LSB 5510HV (2) 89 ec/rn 8/ 12

H.F. 2497 interfere with an ongoing criminal investigation. 1 DIVISION IV 2 OCCUPATIONAL LICENSES 3 Sec. 17. Section 99F.1, subsection 18, Code 2022, is amended 4 to read as follows: 5 18. “Holder of occupational license” means a person 6 licensed by the commission to perform an occupation which the 7 commission has identified as requiring a license to engage in 8 the excursion gambling boat industry in Iowa administration, 9 control, and conduct of gambling games and sports wagering . 10 Sec. 18. Section 99F.4, subsection 2, Code 2022, is amended 11 to read as follows: 12 2. To license qualified sponsoring organizations, to 13 license the operators of excursion gambling boats, to identify 14 occupations within the excursion gambling boat operations 15 engaged in the administration, control, and conduct of gambling 16 games and sports wagering which require licensing, and to adopt 17 standards for licensing the occupations including establishing 18 fees for the occupational licenses and licenses for qualified 19 sponsoring organizations. The fees shall be paid to the 20 commission and deposited in the general fund of the state. 21 All revenue received by the commission under this chapter 22 from license fees and regulatory fees shall be deposited in 23 the general fund of the state and shall be subject to the 24 requirements of section 8.60 . 25 EXPLANATION 26 The inclusion of this explanation does not constitute agreement with 27 the explanation’s substance by the members of the general assembly. 28 This bill concerns gambling regulation and wagering. 29 Division I of the bill concerns cashless wagering and allows 30 a person to access a cash account through a personal electronic 31 device for purposes of cashless wagering on the wagering area 32 of a licensee under Code chapter 99D or gaming floor of a 33 licensee under Code chapter 99F. 34 Division II of the bill relates to the forfeiture and 35 -9- LSB 5510HV (2) 89 ec/rn 9/ 12

H.F. 2497 withholding of certain gaming winnings. 1 The division prevents the state and entities licensed by the 2 state racing and gaming commission from being held liable for 3 any claim, action, or inaction which may arise from processes 4 related to a person voluntarily excluded from pari-mutuel 5 wagering, advance deposit wagering, internet fantasy sports 6 contests, advance deposit sports wagering, gaming floors and 7 sports wagering areas of an excursion gambling boat, wagering 8 areas, and gaming floors and sports wagering areas. 9 The division releases entities licensed by the state racing 10 and gaming commission from any responsibility to pay the state 11 any money or thing of value that was paid to a voluntarily 12 excluded person. The division also provides that no 13 administrative action shall be initiated or penalties imposed 14 on licensed entities for any unintentional licensee errors 15 concerning actions related to a voluntarily excluded person. 16 The division makes it a simple misdemeanor for a voluntarily 17 excluded person to refuse to forfeit money or a thing of value 18 obtained as a result of wagers made by the person after the 19 person has been voluntarily excluded, and directs that a court 20 of jurisdiction shall order the voluntarily excluded person 21 to pay an amount equivalent to the obtained money or thing of 22 value to the state general fund. 23 The division allows entities licensed by the state racing 24 and gaming commission to retain an amount equal to the lesser 25 of 5 percent or $100 of winnings withheld from a collection 26 entity debtor. A “collection entity” means the department 27 of administrative services and any other public agency that 28 maintains a separate accounting system and elects to establish 29 a debt collection setoff procedure for the collection of debts 30 owed to the public agency. 31 In addition, the division provides that the state and 32 entities licensed by the state racing and gaming commission 33 shall not be held liable for any claim, action, or inaction 34 which may arise from processes related to setoffs and releases 35 -10- LSB 5510HV (2) 89 ec/rn 10/ 12

H.F. 2497 entities licensed by the state racing and gaming commission 1 from any responsibility to pay an entity seeking collection 2 of a debt through a setoff any money or thing of value that 3 was paid to a debtor. The division also provides that no 4 administrative action shall be initiated or penalties imposed 5 on licensed entities for any unintentional licensee errors 6 concerning actions related to setoffs. The division further 7 provides that the debtor is solely responsible for all debts 8 owed and not collected under setoff procedures. 9 Division III of the bill relates to the inclusion of wagering 10 on electronic sports events and other sports-related events 11 within the provisions governing sports wagering. 12 The division adds “electronic sports events” as a type 13 of authorized sporting event, and defines “electronic sports 14 event” to mean a multiplayer video game event governed by a 15 recognized professional, international, or collegiate video 16 game governing body. 17 The division also provides that a professional sporting 18 event includes a charitable event with professional athletes. 19 The division defines “sports-related event” as an event that 20 takes place in relation to an authorized sporting event, but 21 that is not tied to the outcome of a specific athletic event 22 or contest as authorized by the commission. “Sports-related 23 events” include but are not limited to professional sports 24 drafts and individual player awards. 25 The division adds wagers on sports-related events as a 26 form of sports wagering, and prohibits placing a wager on any 27 individual performance or nonperformance of a participant in an 28 electronic sports event who is under 18 years of age. 29 The division makes conforming changes to Code sections 30 99F.7A and 99F.12. 31 Division IV of the bill relates to occupational licenses. 32 The bill provides that an occupational license is required for 33 occupations identified by the racing and gaming commission as 34 engaged in the administration, control, and conduct of gambling 35 -11- LSB 5510HV (2) 89 ec/rn 11/ 12