HSB 630 (LSB 5731YC (2) 90)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON BLOOMINGDALE)

A BILL FOR

An Act relating to fantasy sports contests and internet fantasy sports contest players.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 99E.1, subsection 3, Code 2024, is amended by striking the subsection and inserting in lieu thereof the following:
   3.  a.  “Fantasy sports contest” means any internet fantasy or simulated game or contest of skill for which all of the following are true:
   (1)  All players are required to pay an entry fee in order to participate.
   (2)  The values of all prizes and awards offered to winning players are established and made known to the players in advance of the contest.
   (3)  All winning outcomes reflect the relative knowledge and skill of the players.
   (4)  All players assemble, own, or manage a fictional entry or roster of actual professional or amateur athletes in any of the following:
   (a)  A real-world sporting event.
   (b)  An organized video game competition that is regulated by a governing body and that is held between professional athletes who play individually or as teams.
   (5)  Players compete for prizes awarded by a fantasy sports contest operator based on terms and conditions published by the fantasy sports contest operator and made known to all players prior to the contest.
   (6)  All winning outcomes are determined solely by clearly established scoring criteria based on one or more statistical results of the performance of an individual athlete, including but not limited to a fantasy score, and are not solely based on the score, point spread, or performance or performances of any single actual team or combination of teams, or solely on any single performance of an individual athlete in any single actual event.
   b.  “Fantasy sports contest” includes but is not limited to contests in which multiple players compete against each other and contests in which a single player competes against a target score set by the fantasy sports contest operator.
    Sec. 2.  Section 99E.1, subsection 6, Code 2024, is amended to read as follows:
   6.  a.  “Internet fantasy sports contest player” or “player” means a natural person who is at least twenty-one years of age and participates in an internet fantasy sports contest operated by an internet fantasy sports contest service provider.
   b.  “Internet fantasy sports contest player” or “player” does not include an internet fantasy sports contest service provider by virtue of the provider doing any of the following:
   (1)  Setting house rules for a fantasy sports contest.
   (2)  Assigning a salary or target score to an eligible athlete.
   (3)  Accepting an entry fee from an internet fantasy sports contest player.
   (4)  Awarding or disbursing prizes to a winning internet fantasy sports contest player.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the definitions of “fantasy sports contest” and “internet fantasy sports contest player”.
   Under current law, “fantasy sports contest” (contest) is defined as any fantasy or simulated contest in which the fantasy sports contest operator is not a participant in the contest, the values of all prizes and awards offered to winning participants are established and made known to the participants in advance of the contest, all winning outcomes reflect the relative knowledge and skill of the participants and are determined by accumulated statistical results of the performance of individuals, including athletes, and no winning outcome is solely based on the score, point spread, or any performance or performances of any single actual team or solely on any single performance of an individual athlete or player in any single actual event. Under the bill, the definition of “fantasy sports contest” also requires that players pay an entry fee to participate in the contest, and that all players assemble, own, or manage a fictional entry or roster of athletes in real-world sporting events or a regulated organized video game competition held between professional athletes. The bill provides that “fantasy sports contest” includes a contest in which multiple players compete against each other and a contest in which a single player competes against a target score set by the fantasy sports contest operator.
   Under current law, “internet fantasy sports contest player” (player) is defined as a person who is at least 21 years of age and participates in a contest operated by an internet fantasy sports contest service provider (provider). Under the bill, a player is a natural person who is at least 21 years of age and participates in a contest operated by provider. A player does not include a provider by virtue of the provider setting house rules for a contest, assigning a salary or target score for an athlete, accepting an entry fee from a player, or awarding prizes to a winning player.