H.F. _____ Section 1. Section 99D.7, subsection 23, Code 2022, is 1 amended to read as follows: 2 23. To establish a process to allow a person to be 3 voluntarily excluded from advance deposit wagering as defined 4 in section 99D.11 , from an internet fantasy sports contest as 5 defined in section 99E.1 , from advance deposit sports wagering 6 as defined in section 99F.9 , from advance deposit gambling 7 games as defined in section 99F.9, and from the wagering area 8 of a racetrack enclosure, from the gaming floor, and from the 9 sports wagering area, as defined in section 99F.1 , of all 10 other licensed facilities under this chapter and chapter 99F 11 as provided in this subsection . The process shall provide 12 that an initial request by a person to be voluntarily excluded 13 shall be for a period of five years or life and any subsequent 14 request following any five-year period shall be for a period of 15 five years or life. The process established shall require that 16 licensees be provided electronic access to names and social 17 security numbers of persons voluntarily excluded through a 18 secured interactive internet site maintained by the commission 19 and information regarding persons voluntarily excluded shall 20 be disseminated to all licensees under this chapter , chapter 21 99E , and chapter 99F . The names, social security numbers, and 22 information regarding persons voluntarily excluded shall be 23 kept confidential unless otherwise ordered by a court or by 24 another person duly authorized to release such information. 25 The process established shall also require a person requesting 26 to be voluntarily excluded be provided information compiled 27 by the Iowa department of public health on gambling treatment 28 options. The state and any licensee under this chapter , 29 chapter 99E , or chapter 99F shall not be liable to any person 30 for any claim which may arise from this process. In addition 31 to any other penalty provided by law, any money or thing of 32 value that has been obtained by, or is owed to, a voluntarily 33 excluded person as a result of wagers made by the person after 34 the person has been voluntarily excluded shall be forfeited by 35 -1- LSB 5494YC (1) 89 ec/rn 1/ 7

H.F. _____ the person and shall be credited to the general fund of the 1 state. 2 Sec. 2. Section 99F.4, subsection 22, Code 2022, is amended 3 to read as follows: 4 22. 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 as 7 defined in section 99E.1 , from advance deposit sports wagering 8 as defined in section 99F.9 , from advance deposit gambling 9 games as defined in section 99F.9, from the gaming floor and 10 sports wagering area of an excursion gambling boat, from the 11 wagering area, as defined in section 99D.2 , and from the gaming 12 floor and sports wagering area of all other licensed facilities 13 under this chapter and chapter 99D as provided in this 14 subsection . The process shall provide that an initial request 15 by a person to be voluntarily excluded shall be for a period 16 of five years or life and any subsequent request following 17 any five-year period shall be for a period of five years or 18 life. The process established shall require that licensees be 19 provided electronic access to names and social security numbers 20 of persons voluntarily excluded through a secured interactive 21 internet site maintained by the commission and information 22 regarding persons voluntarily excluded shall be disseminated to 23 all licensees under this chapter , chapter 99D , and chapter 99E . 24 The names, social security numbers, and information regarding 25 persons voluntarily excluded shall be kept confidential 26 unless otherwise ordered by a court or by another person 27 duly authorized to release such information. The process 28 established shall also require a person requesting to be 29 voluntarily excluded be provided information compiled by the 30 Iowa department of public health on gambling treatment options. 31 The state and any licensee under this chapter , chapter 99D , or 32 chapter 99E shall not be liable to any person for any claim 33 which may arise from this process. In addition to any other 34 penalty provided by law, any money or thing of value that has 35 -2- LSB 5494YC (1) 89 ec/rn 2/ 7

H.F. _____ been obtained by, or is owed to, a voluntarily excluded person 1 as a result of wagers made by the person after the person has 2 been voluntarily excluded shall be forfeited by the person and 3 shall be credited to the general fund of the state. 4 Sec. 3. Section 99F.4, Code 2022, is amended by adding the 5 following new subsection: 6 NEW SUBSECTION . 28. To adopt standards under which 7 advance deposit gambling games as defined in section 99F.9 8 are conducted, to identify occupations within advance deposit 9 gambling games which require licensing, and to adopt standards 10 for licensing and background qualifications for occupations 11 including establishing fees for the occupational license. All 12 revenue received by the commission under this chapter from 13 license fees shall be deposited in the general fund of the 14 state and shall be subject to the requirements of section 8.60. 15 All revenue received by the commission from regulatory fees 16 shall be deposited into the gaming regulatory revolving fund 17 established in section 99F.20. 18 Sec. 4. NEW SECTION . 99F.7B Advance deposit gambling games 19 —— license —— terms and conditions —— fees. 20 1. The commission shall, upon payment of an initial license 21 fee of forty-five thousand dollars and submission of an 22 application to the commission consistent with the requirements 23 of section 99F.6, issue a license to conduct advance deposit 24 gambling games to a licensee authorized to conduct gambling 25 games at a pari-mutuel racetrack enclosure or a licensee 26 authorized to operate an excursion gambling boat or gambling 27 structure, subject to the requirements of this chapter. The 28 annual renewal fee for a license to conduct advance deposit 29 gambling games shall be ten thousand dollars. 30 2. A licensee under this section shall include on the 31 internet site or mobile application used by the licensee 32 to conduct advance deposit gambling games as authorized in 33 section 99F.9 the statewide telephone number authorized by the 34 Iowa department of public health to provide problem gambling 35 -3- LSB 5494YC (1) 89 ec/rn 3/ 7

H.F. _____ information and extensive responsible gaming features in 1 addition to those described in section 99F.4, subsection 22. 2 3. A licensee under this section may enter into operating 3 agreements with one or two entities to have up to a total of 4 two individually branded internet sites to conduct advance 5 deposit gambling games for the licensee, unless one additional 6 operating agreement or individually branded internet site 7 is authorized by the commission. However, a person shall 8 not sell, grant, assign, or turn over to another person the 9 operation of an individually branded internet site to conduct 10 advance deposit gambling games for the licensee without the 11 approval of the commission. This section does not prohibit an 12 agreement entered into between a licensee under this section 13 and an advance deposit gambling games operator as approved by 14 the commission. 15 4. The commission may enter into agreements with other 16 similar entities with authority over foreign jurisdictions 17 to facilitate, administer, and regulate multijurisdictional 18 advance deposit gambling games conducted within the United 19 States to the extent that entering into the agreement is 20 consistent with state and federal laws. 21 Sec. 5. Section 99F.9, subsection 4, paragraph a, Code 2022, 22 is amended by adding the following new subparagraphs: 23 NEW SUBPARAGRAPH . (01) “Advance deposit gambling games” 24 means a method of wagering on gambling games in which an 25 eligible individual may, in an account established with a 26 licensee under section 99F.7B, deposit moneys into the account 27 and use the account balance to pay for wagering on gambling 28 games. 29 NEW SUBPARAGRAPH . (001) “Advance deposit gambling games 30 operator” means an advance deposit gambling games operator 31 licensed by the commission who has entered into an agreement 32 with a licensee under section 99F.7B to provide advance deposit 33 gambling games. 34 Sec. 6. Section 99F.9, subsection 4, Code 2022, is amended 35 -4- LSB 5494YC (1) 89 ec/rn 4/ 7

H.F. _____ by adding the following new paragraphs: 1 NEW PARAGRAPH . 0c. The commission may authorize a licensee 2 under section 99F.7B to conduct advance deposit gambling games. 3 Advance deposit gambling games wagers may be placed from any 4 location by an eligible individual within the state via a 5 telephone-type device, a computer, through the internet, or by 6 any other electronic means. The commission may also issue an 7 advance deposit gambling games operator license to an entity 8 who complies with this subsection and section 99F.6 and may 9 require the advance deposit gambling games operator to conduct 10 an audit consistent with the requirements of section 99F.13. 11 NEW PARAGRAPH . 00c. The commission shall permit an eligible 12 individual to use the same account to conduct advance deposit 13 sports wagering and advance deposit gambling games with an 14 operator licensed to conduct both advance deposit sports 15 wagering and advance deposit gambling games. 16 Sec. 7. Section 99F.20, subsection 1, Code 2022, is amended 17 to read as follows: 18 1. A gaming regulatory revolving fund is created in 19 the state treasury under the control of the department of 20 inspections and appeals. The fund shall consist of fees 21 collected and deposited into the fund paid by licensees 22 pursuant to section 99D.14, subsection 2 , paragraph “c” , fees 23 paid by licensees pursuant to section 99E.5, subsection 4 , 24 paragraph “c” , regulatory fees paid by licensees pursuant 25 to section 99F.4, subsection subsections 27 and 28 , and fees 26 paid by licensees pursuant to section 99F.10, subsection 4 , 27 paragraph “c” . All costs relating to racetrack, excursion 28 boat, gambling structure, internet fantasy sports contests as 29 defined in section 99E.1 , and sports wagering regulation shall 30 be paid from the fund as provided in appropriations made for 31 this purpose by the general assembly. The department shall 32 provide quarterly reports to the department of management and 33 the legislative services agency specifying revenues billed 34 and collected and expenditures from the fund in a format as 35 -5- LSB 5494YC (1) 89 ec/rn 5/ 7

H.F. _____ determined by the department of management in consultation with 1 the legislative services agency. 2 EXPLANATION 3 The inclusion of this explanation does not constitute agreement with 4 the explanation’s substance by the members of the general assembly. 5 This bill authorizes advance deposit gambling games. 6 Code sections 99D.7(23) and 99F.4(22), concerning persons 7 voluntarily excluded from wagering or gaming areas, are amended 8 to include internet fantasy sports contests, advance deposit 9 wagering, advance deposit sports wagering, and the sports 10 wagering area. 11 Code section 99F.4, concerning racing and gaming commission 12 powers, is amended to grant the racing and gaming commission 13 the authority to adopt standards under which advance deposit 14 gambling games are conducted. The bill provides that revenue 15 received by the commission from license fees for advance 16 deposit gambling games shall be deposited in the general fund 17 and revenue received by the commission from regulatory fees 18 shall be deposited into the gaming regulatory revolving fund 19 established in Code section 99F.20. 20 New Code section 99F.7B provides specific requirements 21 relative to the licensing, operation, and fees applicable to 22 advance deposit gambling games. The bill provides that the 23 commission shall, upon payment of an initial license fee of 24 $45,000, issue a license to conduct advance deposit gambling 25 games to a licensee authorized to conduct gambling games at a 26 pari-mutuel racetrack enclosure or a licensee authorized to 27 operate an excursion gambling boat or gambling structure. The 28 bill provides for an annual renewal fee of $10,000. The new 29 Code section also provides that a licensee shall include on the 30 internet site or mobile application used by the licensee to 31 conduct advance deposit gambling games the statewide telephone 32 number authorized by the Iowa department of public health to 33 provide problem gambling information and extensive responsible 34 gaming features. The bill also provides that a licensee may 35 -6- LSB 5494YC (1) 89 ec/rn 6/ 7

H.F. _____ enter into operating agreements with up to two entities to 1 conduct advance deposit gambling games. The bill allows the 2 commission to enter into agreements with other similar entities 3 with authority over foreign jurisdictions to facilitate, 4 administer, and regulate multijurisdictional advance deposit 5 gambling games conducted within the United States to the extent 6 that entering into the agreement is consistent with state and 7 federal laws. 8 Code section 99F.9, concerning wagering on gambling games, 9 is amended to allow the commission to authorize gambling 10 game licensees under Code chapter 99F to conduct advance 11 deposit gambling games. The bill defines “advance deposit 12 gambling games” as a form of wagering on gambling games where 13 an eligible individual creates an account with a licensee, 14 deposits money into that account, and can use the balance 15 within the account for wagering on gambling games. The bill 16 would allow an eligible individual, defined as an individual 17 21 years of age or older who is located within this state, 18 to place an advance deposit gambling games wager from any 19 location within this state by telephone, a computer, through 20 the internet, or by other electronic means. The bill allows a 21 licensee under Code section 99F.7B to enter into an agreement 22 with an advance deposit gambling games operator licensed by 23 the commission to provide advance deposit gambling games for 24 the licensee and allows the commission to require the advance 25 deposit gambling games operator to conduct an audit. The bill 26 also provides that the commission shall permit an eligible 27 individual to use the same account to conduct advance deposit 28 sports wagering and advance deposit gambling games with an 29 operator licensed to conduct both advance deposit sports 30 wagering and advance deposit gambling games for a licensee. 31 -7- LSB 5494YC (1) 89 ec/rn 7/ 7