HSB 227 (LSB 2154YC (2) 90)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON KAUFMANN)

A BILL FOR

An Act providing for advance deposit wagering on gambling games.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 99D.7, subsection 23, Code 2023, is amended to read as follows:
   23.  To establish a process to allow a person to be voluntarily excluded from advance deposit wagering as defined in section 99D.11, from an internet fantasy sports contest as defined in section 99E.1, from advance deposit sports wagering as defined in section 99F.9, from advance deposit gambling games as defined in section 99F.9, and from the wagering area of a racetrack enclosure, from the gaming floor, and from the sports wagering area, as defined in section 99F.1, of all other licensed facilities under this chapter and chapter 99F as provided in this subsection. The process shall provide that an initial request by a person to be voluntarily excluded shall be for a period of five years or life and any subsequent request following any five-year period shall be for a period of five years or life. The process established shall require that licensees be provided electronic access to names and social security numbers of persons voluntarily excluded through a secured interactive internet site maintained by the commission and information regarding persons voluntarily excluded shall be disseminated to all licensees under this chapter, chapter 99E, and chapter 99F. The names, social security numbers, and information regarding persons voluntarily excluded shall be kept confidential unless otherwise ordered by a court or by another person duly authorized to release such information. The process established shall also require a person requesting to be voluntarily excluded be provided information compiled by the Iowa department of public health on gambling treatment options. The state and any licensee under this chapter, chapter 99E, or chapter 99F shall not be liable to any person for any claim which may arise from this process. In addition to any other penalty provided by law, any money or thing of value that has been obtained by, or is owed to, a voluntarily excluded person as a result of wagers made by the person after the person has been voluntarily excluded shall be forfeited by the person and shall be credited to the general fund of the state. The commission shall not initiate any administrative action or impose penalties on a licensee who voluntarily reports to the commission activity described in section 99D.24, subsection 4, paragraph “c”.
    Sec. 2.  Section 99F.4, subsection 22, Code 2023, is amended to read as follows:
   22.  To establish a process to allow a person to be voluntarily excluded from advance deposit wagering as defined in section 99D.11, from an internet fantasy sports contest as defined in section 99E.1, from advance deposit sports wagering as defined in section 99F.9, from advance deposit gambling games as defined in section 99F.9, from the gaming floor and sports wagering area of an excursion gambling boat, from the wagering area, as defined in section 99D.2, and from the gaming floor and sports wagering area of all other licensed facilities under this chapter and chapter 99D as provided in this subsection. The process shall provide that an initial request by a person to be voluntarily excluded shall be for a period of five years or life and any subsequent request following any five-year period shall be for a period of five years or life. The process established shall require that licensees be provided electronic access to names and social security numbers of persons voluntarily excluded through a secured interactive internet site maintained by the commission and information regarding persons voluntarily excluded shall be disseminated to all licensees under this chapter, chapter 99D, and chapter 99E. The names, social security numbers, and information regarding persons voluntarily excluded shall be kept confidential unless otherwise ordered by a court or by another person duly authorized to release such information. The process established shall also require a person requesting to be voluntarily excluded be provided information compiled by the Iowa department of public health on gambling treatment options. The state and any licensee under this chapter, chapter 99D, or chapter 99E shall not be liable to any person for any claim which may arise from this process. In addition to any other penalty provided by law, any money or thing of value that has been obtained by, or is owed to, a voluntarily excluded person as a result of wagers made by the person after the person has been voluntarily excluded shall be forfeited by the person and shall be credited to the general fund of the state. The commission shall not initiate any administrative action or impose penalties on a licensee who voluntarily reports to the commission activity described in section 99F.15, subsection 4, paragraph “n”.
    Sec. 3.  Section 99F.4, Code 2023, is amended by adding the following new subsection:
   NEW SUBSECTION.  28.  To adopt standards under which advance deposit gambling games as defined in section 99F.9 are conducted, to identify occupations within advance deposit gambling games which require licensing, and to adopt standards for licensing and background qualifications for occupations including establishing fees for the occupational license. All revenue received by the commission under this chapter from license fees shall be deposited in the general fund of the state and shall be subject to the requirements of section 8.60. All revenue received by the commission from regulatory fees shall be deposited into the gaming regulatory revolving fund established in section 99F.20.
    Sec. 4.  NEW SECTION.  99F.7B  Advance deposit gambling games —— license —— terms and conditions —— fees.
   1.  The commission shall, upon payment of an initial license fee of forty-five thousand dollars and submission of an application to the commission consistent with the requirements of section 99F.6, issue a license to conduct advance deposit gambling games to a licensee authorized to conduct gambling games at a pari-mutuel racetrack enclosure or a licensee authorized to operate an excursion gambling boat or gambling structure, subject to the requirements of this chapter. The annual renewal fee for a license to conduct advance deposit gambling games shall be ten thousand dollars.
   2.  A licensee under this section shall include on the internet site or mobile application used by the licensee to conduct advance deposit gambling games as authorized in section 99F.9 the statewide telephone number authorized by the Iowa department of public health to provide problem gambling information and extensive responsible gaming features in addition to those described in section 99F.4, subsection 22.
   3.  A licensee under this section may enter into operating agreements with one or two entities to have up to a total of two individually branded internet sites to conduct advance deposit gambling games for the licensee, unless one additional operating agreement or individually branded internet site is authorized by the commission. However, a person shall not sell, grant, assign, or turn over to another person the operation of an individually branded internet site to conduct advance deposit gambling games for the licensee without the approval of the commission. This section does not prohibit an agreement entered into between a licensee under this section and an advance deposit gambling games operator as approved by the commission.
   4.  The commission may enter into agreements with other similar entities with authority over foreign jurisdictions to facilitate, administer, and regulate multijurisdictional advance deposit gambling games conducted within the United States to the extent that entering into the agreement is consistent with state and federal laws.
    Sec. 5.  Section 99F.9, subsection 4, paragraph a, Code 2023, is amended by adding the following new subparagraphs:
   NEW SUBPARAGRAPH.  (01)  “Advance deposit gambling games” means a method of wagering on gambling games in which an eligible individual may, in an account established with a licensee under section 99F.7B, deposit moneys into the account and use the account balance to pay for wagering on gambling games.
   NEW SUBPARAGRAPH.  (001)  “Advance deposit gambling games operator” means an advance deposit gambling games operator licensed by the commission who has entered into an agreement with a licensee under section 99F.7B to provide advance deposit gambling games.
    Sec. 6.  Section 99F.9, subsection 4, Code 2023, is amended by adding the following new paragraphs:
   NEW PARAGRAPH.  0c.  The commission may authorize a licensee under section 99F.7B to conduct advance deposit gambling games. Advance deposit gambling games wagers may be placed from any location by an eligible individual within the state via a telephone-type device, a computer, through the internet, or by any other electronic means. The commission may also issue an advance deposit gambling games operator license to an entity who complies with this subsection and section 99F.6 and may require the advance deposit gambling games operator to conduct an audit consistent with the requirements of section 99F.13.
   NEW PARAGRAPH.  00c.  The commission shall permit an eligible individual to use the same account to conduct advance deposit sports wagering and advance deposit gambling games with an operator licensed to conduct both advance deposit sports wagering and advance deposit gambling games.
    Sec. 7.  Section 99F.20, subsection 1, Code 2023, is amended to read as follows:
   1.  A gaming regulatory revolving fund is created in the state treasury under the control of the department of inspections and appeals. The fund shall consist of fees collected and deposited into the fund paid by licensees pursuant to section 99D.14, subsection 2, paragraph “c”, fees paid by licensees pursuant to section 99E.5, subsection 4, paragraph “c”, regulatory fees paid by licensees pursuant to section 99F.4, subsection subsections 27 and 28, and fees paid by licensees pursuant to section 99F.10, subsection 4, paragraph “c”. All costs relating to racetrack, excursion boat, gambling structure, internet fantasy sports contests as defined in section 99E.1, and sports wagering regulation shall be paid from the fund as provided in appropriations made for this purpose by the general assembly. The department shall provide quarterly reports to the department of management and the legislative services agency specifying revenues billed and collected and expenditures from the fund in a format as determined by the department of management in consultation with the legislative services agency.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill authorizes advance deposit gambling games.
   Code sections 99D.7(23) and 99F.4(22), concerning persons voluntarily excluded from wagering or gaming areas, are amended to include internet fantasy sports contests, advance deposit wagering, advance deposit sports wagering, and the sports wagering area.
   Code section 99F.4, concerning racing and gaming commission powers, is amended to grant the racing and gaming commission the authority to adopt standards under which advance deposit gambling games are conducted. The bill provides that revenue received by the commission from license fees for advance deposit gambling games shall be deposited in the general fund and revenue received by the commission from regulatory fees shall be deposited into the gaming regulatory revolving fund established in Code section 99F.20.
   New Code section 99F.7B provides specific requirements relative to the licensing, operation, and fees applicable to advance deposit gambling games. The bill provides that the commission shall, upon payment of an initial license fee of $45,000, issue a license to conduct advance deposit gambling games to a licensee authorized to conduct gambling games at a pari-mutuel racetrack enclosure or a licensee authorized to operate an excursion gambling boat or gambling structure. The bill provides for an annual renewal fee of $10,000. The new Code section also provides that a licensee shall include on the internet site or mobile application used by the licensee to conduct advance deposit gambling games the statewide telephone number authorized by the Iowa department of public health to provide problem gambling information and extensive responsible gaming features. The bill also provides that a licensee may enter into operating agreements with up to two entities to conduct advance deposit gambling games. The bill allows the commission to enter into agreements with other similar entities with authority over foreign jurisdictions to facilitate, administer, and regulate multijurisdictional advance deposit gambling games conducted within the United States to the extent that entering into the agreement is consistent with state and federal laws.
   Code section 99F.9, concerning wagering on gambling games, is amended to allow the commission to authorize gambling game licensees under Code chapter 99F to conduct advance deposit gambling games. The bill defines “advance deposit gambling games” as a form of wagering on gambling games where an eligible individual creates an account with a licensee, deposits money into that account, and can use the balance within the account for wagering on gambling games. The bill would allow an eligible individual, defined as an individual 21 years of age or older who is located within this state, to place an advance deposit gambling games wager from any location within this state by telephone, a computer, through the internet, or by other electronic means. The bill allows a licensee under Code section 99F.7B to enter into an agreement with an advance deposit gambling games operator licensed by the commission to provide advance deposit gambling games for the licensee and allows the commission to require the advance deposit gambling games operator to conduct an audit. The bill also provides that the commission shall permit an eligible individual to use the same account to conduct advance deposit sports wagering and advance deposit gambling games with an operator licensed to conduct both advance deposit sports wagering and advance deposit gambling games for a licensee.