H.F. _____ Section 1. Section 99D.7, subsection 23, Code 2023, 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 2154YC (2) 90 ec/rn 1/ 8

H.F. _____ the person and shall be credited to the general fund of the 1 state. The commission shall not initiate any administrative 2 action or impose penalties on a licensee who voluntarily 3 reports to the commission activity described in section 99D.24, 4 subsection 4 , paragraph “c” . 5 Sec. 2. Section 99F.4, subsection 22, Code 2023, is amended 6 to read as follows: 7 22. To establish a process to allow a person to be 8 voluntarily excluded from advance deposit wagering as defined 9 in section 99D.11 , from an internet fantasy sports contest as 10 defined in section 99E.1 , from advance deposit sports wagering 11 as defined in section 99F.9 , from advance deposit gambling 12 games as defined in section 99F.9, from the gaming floor and 13 sports wagering area of an excursion gambling boat, from the 14 wagering area, as defined in section 99D.2 , and from the 15 gaming floor and sports wagering area of all other licensed 16 facilities under this chapter and chapter 99D as provided in 17 this subsection . The process shall provide that an initial 18 request by a person to be voluntarily excluded shall be for 19 a period of five years or life and any subsequent request 20 following any five-year period shall be for a period of five 21 years or life. The process established shall require that 22 licensees be provided electronic access to names and social 23 security numbers of persons voluntarily excluded through a 24 secured interactive internet site maintained by the commission 25 and information regarding persons voluntarily excluded shall 26 be disseminated to all licensees under this chapter , chapter 27 99D , and chapter 99E . The names, social security numbers, and 28 information regarding persons voluntarily excluded shall be 29 kept confidential unless otherwise ordered by a court or by 30 another person duly authorized to release such information. 31 The process established shall also require a person requesting 32 to be voluntarily excluded be provided information compiled 33 by the Iowa department of public health on gambling treatment 34 options. The state and any licensee under this chapter , 35 -2- LSB 2154YC (2) 90 ec/rn 2/ 8

H.F. _____ chapter 99D , or chapter 99E shall not be liable to any person 1 for any claim which may arise from this process. In addition 2 to any other penalty provided by law, any money or thing of 3 value that has been obtained by, or is owed to, a voluntarily 4 excluded person as a result of wagers made by the person after 5 the person has been voluntarily excluded shall be forfeited by 6 the person and shall be credited to the general fund of the 7 state. The commission shall not initiate any administrative 8 action or impose penalties on a licensee who voluntarily 9 reports to the commission activity described in section 99F.15, 10 subsection 4 , paragraph “n” . 11 Sec. 3. Section 99F.4, Code 2023, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 28. To adopt standards under which 14 advance deposit gambling games as defined in section 99F.9 15 are conducted, to identify occupations within advance deposit 16 gambling games which require licensing, and to adopt standards 17 for licensing and background qualifications for occupations 18 including establishing fees for the occupational license. All 19 revenue received by the commission under this chapter from 20 license fees shall be deposited in the general fund of the 21 state and shall be subject to the requirements of section 8.60. 22 All revenue received by the commission from regulatory fees 23 shall be deposited into the gaming regulatory revolving fund 24 established in section 99F.20. 25 Sec. 4. NEW SECTION . 99F.7B Advance deposit gambling games 26 —— license —— terms and conditions —— fees. 27 1. The commission shall, upon payment of an initial license 28 fee of forty-five thousand dollars and submission of an 29 application to the commission consistent with the requirements 30 of section 99F.6, issue a license to conduct advance deposit 31 gambling games 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, subject to the requirements of this chapter. The 35 -3- LSB 2154YC (2) 90 ec/rn 3/ 8

H.F. _____ annual renewal fee for a license to conduct advance deposit 1 gambling games shall be ten thousand dollars. 2 2. A licensee under this section shall include on the 3 internet site or mobile application used by the licensee 4 to conduct advance deposit gambling games as authorized in 5 section 99F.9 the statewide telephone number authorized by the 6 Iowa department of public health to provide problem gambling 7 information and extensive responsible gaming features in 8 addition to those described in section 99F.4, subsection 22. 9 3. A licensee under this section may enter into operating 10 agreements with one or two entities to have up to a total of 11 two individually branded internet sites to conduct advance 12 deposit gambling games for the licensee, unless one additional 13 operating agreement or individually branded internet site 14 is authorized by the commission. However, a person shall 15 not sell, grant, assign, or turn over to another person the 16 operation of an individually branded internet site to conduct 17 advance deposit gambling games for the licensee without the 18 approval of the commission. This section does not prohibit an 19 agreement entered into between a licensee under this section 20 and an advance deposit gambling games operator as approved by 21 the commission. 22 4. The commission may enter into agreements with other 23 similar entities with authority over foreign jurisdictions 24 to facilitate, administer, and regulate multijurisdictional 25 advance deposit gambling games conducted within the United 26 States to the extent that entering into the agreement is 27 consistent with state and federal laws. 28 Sec. 5. Section 99F.9, subsection 4, paragraph a, Code 2023, 29 is amended by adding the following new subparagraphs: 30 NEW SUBPARAGRAPH . (01) “Advance deposit gambling games” 31 means a method of wagering on gambling games in which an 32 eligible individual may, in an account established with a 33 licensee under section 99F.7B, deposit moneys into the account 34 and use the account balance to pay for wagering on gambling 35 -4- LSB 2154YC (2) 90 ec/rn 4/ 8

H.F. _____ games. 1 NEW SUBPARAGRAPH . (001) “Advance deposit gambling games 2 operator” means an advance deposit gambling games operator 3 licensed by the commission who has entered into an agreement 4 with a licensee under section 99F.7B to provide advance deposit 5 gambling games. 6 Sec. 6. Section 99F.9, subsection 4, Code 2023, is amended 7 by adding the following new paragraphs: 8 NEW PARAGRAPH . 0c. The commission may authorize a licensee 9 under section 99F.7B to conduct advance deposit gambling games. 10 Advance deposit gambling games wagers may be placed from any 11 location by an eligible individual within the state via a 12 telephone-type device, a computer, through the internet, or by 13 any other electronic means. The commission may also issue an 14 advance deposit gambling games operator license to an entity 15 who complies with this subsection and section 99F.6 and may 16 require the advance deposit gambling games operator to conduct 17 an audit consistent with the requirements of section 99F.13. 18 NEW PARAGRAPH . 00c. The commission shall permit an eligible 19 individual to use the same account to conduct advance deposit 20 sports wagering and advance deposit gambling games with an 21 operator licensed to conduct both advance deposit sports 22 wagering and advance deposit gambling games. 23 Sec. 7. Section 99F.20, subsection 1, Code 2023, is amended 24 to read as follows: 25 1. A gaming regulatory revolving fund is created in 26 the state treasury under the control of the department of 27 inspections and appeals. The fund shall consist of fees 28 collected and deposited into the fund paid by licensees 29 pursuant to section 99D.14, subsection 2 , paragraph “c” , fees 30 paid by licensees pursuant to section 99E.5, subsection 4 , 31 paragraph “c” , regulatory fees paid by licensees pursuant 32 to section 99F.4, subsection subsections 27 and 28 , and fees 33 paid by licensees pursuant to section 99F.10, subsection 4 , 34 paragraph “c” . All costs relating to racetrack, excursion 35 -5- LSB 2154YC (2) 90 ec/rn 5/ 8

H.F. _____ boat, gambling structure, internet fantasy sports contests as 1 defined in section 99E.1 , and sports wagering regulation shall 2 be paid from the fund as provided in appropriations made for 3 this purpose by the general assembly. The department shall 4 provide quarterly reports to the department of management and 5 the legislative services agency specifying revenues billed 6 and collected and expenditures from the fund in a format as 7 determined by the department of management in consultation with 8 the legislative services agency. 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanation’s substance by the members of the general assembly. 12 This bill authorizes advance deposit gambling games. 13 Code sections 99D.7(23) and 99F.4(22), concerning persons 14 voluntarily excluded from wagering or gaming areas, are amended 15 to include internet fantasy sports contests, advance deposit 16 wagering, advance deposit sports wagering, and the sports 17 wagering area. 18 Code section 99F.4, concerning racing and gaming commission 19 powers, is amended to grant the racing and gaming commission 20 the authority to adopt standards under which advance deposit 21 gambling games are conducted. The bill provides that revenue 22 received by the commission from license fees for advance 23 deposit gambling games shall be deposited in the general fund 24 and revenue received by the commission from regulatory fees 25 shall be deposited into the gaming regulatory revolving fund 26 established in Code section 99F.20. 27 New Code section 99F.7B provides specific requirements 28 relative to the licensing, operation, and fees applicable to 29 advance deposit gambling games. The bill provides that the 30 commission shall, upon payment of an initial license fee of 31 $45,000, issue a license to conduct advance deposit gambling 32 games to a licensee authorized to conduct gambling games at a 33 pari-mutuel racetrack enclosure or a licensee authorized to 34 operate an excursion gambling boat or gambling structure. The 35 -6- LSB 2154YC (2) 90 ec/rn 6/ 8

H.F. _____ bill provides for an annual renewal fee of $10,000. The new 1 Code section also provides that a licensee shall include on the 2 internet site or mobile application used by the licensee to 3 conduct advance deposit gambling games the statewide telephone 4 number authorized by the Iowa department of public health to 5 provide problem gambling information and extensive responsible 6 gaming features. The bill also provides that a licensee may 7 enter into operating agreements with up to two entities to 8 conduct advance deposit gambling games. The bill allows the 9 commission to enter into agreements with other similar entities 10 with authority over foreign jurisdictions to facilitate, 11 administer, and regulate multijurisdictional advance deposit 12 gambling games conducted within the United States to the extent 13 that entering into the agreement is consistent with state and 14 federal laws. 15 Code section 99F.9, concerning wagering on gambling games, 16 is amended to allow the commission to authorize gambling 17 game licensees under Code chapter 99F to conduct advance 18 deposit gambling games. The bill defines “advance deposit 19 gambling games” as a form of wagering on gambling games where 20 an eligible individual creates an account with a licensee, 21 deposits money into that account, and can use the balance 22 within the account for wagering on gambling games. The bill 23 would allow an eligible individual, defined as an individual 24 21 years of age or older who is located within this state, 25 to place an advance deposit gambling games wager from any 26 location within this state by telephone, a computer, through 27 the internet, or by other electronic means. The bill allows a 28 licensee under Code section 99F.7B to enter into an agreement 29 with an advance deposit gambling games operator licensed by 30 the commission to provide advance deposit gambling games for 31 the licensee and allows the commission to require the advance 32 deposit gambling games operator to conduct an audit. The bill 33 also provides that the commission shall permit an eligible 34 individual to use the same account to conduct advance deposit 35 -7- LSB 2154YC (2) 90 ec/rn 7/ 8