House Study Bill 228 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON KAUFMANN) A BILL FOR An Act relating to advance deposit sports wagering licensees. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 2497YC (2) 90 ec/rn

H.F. _____ Section 1. Section 99F.6, Code 2023, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 3A. Before a license is granted to conduct 3 advance deposit sports wagering as defined in section 99F.9, 4 the commission shall conduct a comprehensive investigation of 5 each applicant to determine whether the applicant or any of its 6 affiliates, including entities under common control, is doing 7 any of the following: 8 a. Knowingly accepting revenue, directly or indirectly, 9 derived from any jurisdiction sanctioned by the office of 10 foreign assets control of the United States treasury. 11 b. Accepting or assisting, directly or indirectly, in the 12 acceptance of online wagers or consideration related to online 13 wagering from any country in which such online gambling is 14 prohibited or illegal. 15 Sec. 2. Section 99F.7, subsection 8, Code 2023, is amended 16 by adding the following new paragraph: 17 NEW PARAGRAPH . h. The applicant for a license to conduct 18 advance deposit sports wagering is determined to be doing any 19 of the activities listed in section 99F.6, subsection 3A. 20 Sec. 3. Section 99F.7, subsection 16, Code 2023, is amended 21 to read as follows: 22 16. Upon a violation of any of the conditions listed in 23 this section or a determination that an advance deposit sports 24 wagering licensee is doing any of the activities listed in 25 section 99F.6, subsection 3A , the commission shall immediately 26 revoke the license. 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 This bill imposes certain requirements relating to the 31 issuance and possible revocation of an advance sports wagering 32 license under Code chapter 99F. 33 The bill requires the racing and gaming commission to 34 conduct a comprehensive investigation of each applicant for a 35 -1- LSB 2497YC (2) 90 ec/rn 1/ 2

H.F. _____ license to conduct advance deposit sports wagering to determine 1 whether the applicant is knowingly accepting revenue derived 2 from any jurisdiction sanctioned by the office of foreign 3 assets control of the United States treasury or is accepting or 4 assisting in the acceptance of online wagers or consideration 5 related to online wagering from any country in which such 6 online gambling is prohibited or illegal. The bill provides 7 that if the commission has substantial evidence that an 8 applicant to conduct advance deposit sports wagering is doing 9 any of the activities described in the bill, the commission 10 shall not grant the applicant a license. In addition, the bill 11 provides that if the commission determines that a licensee to 12 conduct advance deposit sports wagering is doing any of the 13 activities described in the bill, the commission shall revoke 14 the license. 15 -2- LSB 2497YC (2) 90 ec/rn 2/ 2