H.F. _____ 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 5510YC (5) 89 ec/rn 1/ 10

H.F. _____ 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 to 28 a voluntarily excluded person. 29 Sec. 4. Section 99D.24, Code 2022, is amended by adding the 30 following new subsection: 31 NEW SUBSECTION . 2A. A person who has been voluntarily 32 excluded pursuant to section 99D.7, subsection 23, who refuses 33 to forfeit money or a thing of value obtained as a result of 34 wagers made by the person after the person has been voluntarily 35 -2- LSB 5510YC (5) 89 ec/rn 2/ 10

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

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

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

H.F. _____ event or competition of an interscholastic sport as defined in 1 section 9A.102 . 2 Sec. 10. Section 99F.1, Code 2022, is amended by adding the 3 following new subsection: 4 NEW SUBSECTION . 10A. “Electronic sports event” means 5 a multiplayer video game event governed by a recognized 6 professional, international, or collegiate video game governing 7 body. 8 Sec. 11. Section 99F.1, subsection 24, Code 2022, is amended 9 to read as follows: 10 24. “Professional sporting event” means an event, 11 excluding a minor league sporting event, at which two or 12 more persons participate in sports or athletic events and 13 receive compensation in excess of actual expenses for their 14 participation in such event , unless the event includes 15 professional athletes participating in a sports or athletic 16 event without compensation in excess of actual expenses for a 17 charitable purpose . 18 Sec. 12. Section 99F.1, Code 2022, is amended by adding the 19 following new subsection: 20 NEW SUBSECTION . 27A. “Sports-related event” means an 21 event that takes place in relation to an authorized sporting 22 event, but that is not tied to the outcome of a specific 23 athletic event or contest as authorized by the commission. 24 “Sports-related event” includes but is not limited to 25 professional sports drafts and individual player awards. 26 Sec. 13. Section 99F.1, subsection 28, Code 2022, is amended 27 to read as follows: 28 28. “Sports wagering” means the acceptance of wagers on 29 an authorized sporting event or sports-related event by any 30 system of wagering as authorized by the commission. “Sports 31 wagering” does not include placing a wager on the performance 32 or nonperformance of any individual athlete participating in a 33 single game or match of a collegiate sporting event in which 34 a collegiate team from this state is a participant, placing 35 -6- LSB 5510YC (5) 89 ec/rn 6/ 10

H.F. _____ a wager on any individual performance or nonperformance of a 1 participant in an electronic sports event who is under eighteen 2 years of age, or placing a wager on the performance of athletes 3 in an individual international sporting event governed by the 4 international olympic committee in which any participant in the 5 international sporting event is under eighteen years of age. 6 Sec. 14. Section 99F.7A, subsection 2, paragraph b, Code 7 2022, is amended to read as follows: 8 b. Establish, subject to commission approval, sports 9 wagering rules that specify the amounts to be paid on winning 10 sports wagers, the effect of changes in the scheduling of an 11 authorized sporting event or sports-related event subject to 12 sports wagering, and the source of the information used to 13 determine the outcome of a sports wager. The sports wagering 14 rules shall be displayed in the licensee’s sports wagering 15 area, posted on the internet site or mobile application used 16 by the licensee to conduct advance deposit sports wagering as 17 authorized in section 99F.9 , and included in the terms and 18 conditions of the licensee’s advance deposit sports wagering 19 system. 20 Sec. 15. Section 99F.7A, subsection 4, Code 2022, is amended 21 to read as follows: 22 4. A licensee issued a license to conduct sports wagering 23 under this section shall employ reasonable steps to prohibit 24 coaches, athletic trainers, officials, players, or other 25 individuals who participate in an authorized sporting event or 26 sports-related event that is the subject of sports wagering 27 from sports wagering under this chapter . In addition, a 28 licensee shall employ reasonable steps to prohibit persons 29 who are employed in a position with direct involvement with 30 coaches, players, athletic trainers, officials, players, or 31 participants in an authorized sporting event or sports-related 32 event that is the subject of sports wagering from sports 33 wagering under this chapter . 34 Sec. 16. Section 99F.12, subsection 2, paragraph b, Code 35 -7- LSB 5510YC (5) 89 ec/rn 7/ 10

H.F. _____ 2022, is amended to read as follows: 1 b. A licensee under section 99F.7A shall promptly report 2 to the commission any criminal or disciplinary proceedings 3 commenced against the licensee or its employees in connection 4 with the licensee conducting sports wagering or advance 5 deposit sports wagering, any abnormal wagering activity or 6 patterns that may indicate a concern about the integrity of 7 an authorized sporting event or events sports-related event , 8 and any other conduct with the potential to corrupt a wagering 9 outcome of an authorized sporting event or sports-related 10 event for purposes of financial gain, including but not 11 limited to match fixing, and suspicious or illegal wagering 12 activities, including the use of funds derived from illegal 13 activity, wagers to conceal or launder funds derived from 14 illegal activity, use of agents to place wagers, or use of 15 false identification. The commission is required to share 16 any information received pursuant to this paragraph with the 17 division of criminal investigation, any other law enforcement 18 entity upon request, or any regulatory agency the commission 19 deems appropriate. The commission shall promptly report any 20 information received pursuant to this paragraph with any 21 sports team or sports governing body as the commission deems 22 appropriate, but shall not share any information that would 23 interfere with an ongoing criminal investigation. 24 EXPLANATION 25 The inclusion of this explanation does not constitute agreement with 26 the explanation’s substance by the members of the general assembly. 27 This bill concerns gambling regulation and wagering. 28 Division I of the bill concerns cashless wagering and allows 29 a person to access a cash account through a personal electronic 30 device for purposes of cashless wagering on the wagering area 31 of a licensee under Code chapter 99D or gaming floor of a 32 licensee under Code chapter 99F. 33 Division II of the bill relates to the forfeiture and 34 withholding of certain gaming winnings. 35 -8- LSB 5510YC (5) 89 ec/rn 8/ 10

H.F. _____ The division prevents the state and entities licensed by the 1 state racing and gaming commission from being held liable for 2 any claim, action, or inaction which may arise from processes 3 related to a person voluntarily excluded from pari-mutuel 4 wagering, advance deposit wagering, internet fantasy sports 5 contests, advance deposit sports wagering, gaming floors and 6 sports wagering areas of an excursion gambling boat, wagering 7 areas, and gaming floors and sports wagering areas. 8 The division releases entities licensed by the state racing 9 and gaming commission from any responsibility to pay the state 10 any money or thing of value that was paid to a voluntarily 11 excluded person. 12 The division makes it a simple misdemeanor for a voluntarily 13 excluded person to refuse to forfeit money or a thing of value 14 obtained as a result of wagers made by the person after the 15 person has been voluntarily excluded, and directs that a court 16 of jurisdiction shall order the voluntarily excluded person 17 to pay an amount equivalent to the obtained money or thing of 18 value to the state general fund. 19 The division allows entities licensed by the state racing 20 and gaming commission to retain an amount equal to the lesser 21 of 5 percent or $100 of winnings withheld from a collection 22 entity debtor. A “collection entity” means the department 23 of administrative services and any other public agency that 24 maintains a separate accounting system and elects to establish 25 a debt collection setoff procedure for the collection of debts 26 owed to the public agency. 27 In addition, the division provides that the state and 28 entities licensed by the state racing and gaming commission 29 shall not be held liable for any claim, action, or inaction 30 which may arise from processes related to setoffs and releases 31 entities licensed by the state racing and gaming commission 32 from any responsibility to pay an entity seeking collection of 33 a debt through a setoff any money or thing of value that was 34 paid to a debtor. The division provides that the debtor is 35 -9- LSB 5510YC (5) 89 ec/rn 9/ 10

H.F. _____ solely responsible for all debts owed and not collected under 1 setoff procedures. 2 Division III of the bill relates to the inclusion of wagering 3 on electronic sports events and other sports-related events 4 within the provisions governing sports wagering. 5 The division adds “electronic sports events” as a type 6 of authorized sporting event, and defines “electronic sports 7 event” to mean a multiplayer video game event governed by a 8 recognized professional, international, or collegiate video 9 game governing body. 10 The division also provides that a professional sporting 11 event includes a charitable event with professional athletes. 12 The division defines “sports-related event” as an event that 13 takes place in relation to an authorized sporting event, but 14 that is not tied to the outcome of a specific athletic event 15 or contest as authorized by the commission. “Sports-related 16 events” include but are not limited to professional sports 17 drafts and individual player awards. 18 The division adds wagers on sports-related events as a 19 form of sports wagering, and prohibits placing a wager on any 20 individual performance or nonperformance of a participant in an 21 electronic sports event who is under 18 years of age. 22 The division makes conforming changes to Code sections 23 99F.7A and 99F.12. 24 -10- LSB 5510YC (5) 89 ec/rn 10/ 10