H.F. _____ Section 1. Section 99D.7, subsection 23, Code 2025, 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 department of health and human services on gambling 28 treatment options. The state and any licensee under this 29 chapter , chapter 99E , or chapter 99F shall not be liable to 30 any person for any claim which may arise from this process. 31 In addition to any other penalty provided by law, any money 32 or thing of value that has been obtained by, or is owed to, a 33 voluntarily excluded person as a result of wagers made by the 34 person after the person has been voluntarily excluded shall be 35 -1- LSB 1393YC (3) 91 ll/ns 1/ 12

H.F. _____ forfeited by the person and shall be credited to the general 1 fund of the state. The commission shall not initiate any 2 administrative action or impose penalties on a licensee who 3 voluntarily reports to the commission activity described in 4 section 99D.24, subsection 4 , paragraph “c” . 5 Sec. 2. Section 99F.1, subsection 20, Code 2025, is amended 6 to read as follows: 7 20. “Licensee” means any person licensed under section 8 99F.7 , or 99F.7A , or 99F.7B . 9 Sec. 3. Section 99F.4, subsection 22, Code 2025, is amended 10 to read as follows: 11 22. To establish a process to allow a person to be 12 voluntarily excluded from advance deposit wagering as defined 13 in section 99D.11 , from an internet fantasy sports contest as 14 defined in section 99E.1 , from advance deposit sports wagering 15 as defined in section 99F.9 , from advance deposit gambling 16 games as defined in section 99F.9, from the gaming floor and 17 sports wagering area of an excursion gambling boat, from the 18 wagering area, as defined in section 99D.2 , and from the 19 gaming floor and sports wagering area of all other licensed 20 facilities under this chapter and chapter 99D as provided in 21 this subsection . The process shall provide that an initial 22 request by a person to be voluntarily excluded shall be for 23 a period of five years or life and any subsequent request 24 following any five-year period shall be for a period of five 25 years or life. The process established shall require that 26 licensees be provided electronic access to names and social 27 security numbers of persons voluntarily excluded through a 28 secured interactive internet site maintained by the commission 29 and information regarding persons voluntarily excluded shall 30 be disseminated to all licensees under this chapter , chapter 31 99D , and chapter 99E . The names, social security numbers, and 32 information regarding persons voluntarily excluded shall be 33 kept confidential unless otherwise ordered by a court or by 34 another person duly authorized to release such information. 35 -2- LSB 1393YC (3) 91 ll/ns 2/ 12

H.F. _____ The process established shall also require a person requesting 1 to be voluntarily excluded be provided information compiled 2 by the department of health and human services on gambling 3 treatment options. The state and any licensee under this 4 chapter , chapter 99D , or chapter 99E shall not be liable to 5 any person for any claim which may arise from this process. 6 In addition to any other penalty provided by law, any money 7 or thing of value that has been obtained by, or is owed to, a 8 voluntarily excluded person as a result of wagers made by the 9 person after the person has been voluntarily excluded shall be 10 forfeited by the person and shall be credited to the general 11 fund of the state. The commission shall not initiate any 12 administrative action or impose penalties on a licensee who 13 voluntarily reports to the commission activity described in 14 section 99F.15, subsection 4 , paragraph “n” . 15 Sec. 4. Section 99F.4, Code 2025, is amended by adding the 16 following new subsection: 17 NEW SUBSECTION . 28. To adopt standards under which 18 advance deposit gambling games as defined in section 99F.9 19 are conducted, to identify occupations within advance deposit 20 gambling games which require licensing, to adopt rules 21 necessary for commercially reasonable know-your-customer 22 controls, and to adopt standards for licensing and background 23 qualifications for occupations including establishing fees 24 for the occupational license. All revenue received by the 25 commission under this chapter from license fees shall be 26 deposited in the general fund of the state. All revenue 27 received by the commission from regulatory fees shall be 28 deposited into the gaming regulatory revolving fund established 29 in section 99F.20. 30 Sec. 5. NEW SECTION . 99F.7B Advance deposit gambling games 31 —— license —— terms and conditions —— fees. 32 1. The commission shall, upon payment of an initial license 33 fee of forty-five thousand dollars and submission of an 34 application to the commission consistent with the requirements 35 -3- LSB 1393YC (3) 91 ll/ns 3/ 12

H.F. _____ of section 99F.6, issue a license to conduct advance deposit 1 gambling games to a licensee authorized to conduct gambling 2 games at a pari-mutuel racetrack enclosure or a licensee 3 authorized to operate an excursion gambling boat or gambling 4 structure, subject to the requirements of this chapter. The 5 annual renewal fee for a license to conduct advance deposit 6 gambling games is ten thousand dollars. 7 2. A licensee under this section shall include on the 8 internet site or mobile application used by the licensee to 9 conduct advance deposit gambling games as authorized in section 10 99F.9 the statewide telephone number authorized by the Iowa 11 department of health and human services to provide problem 12 gambling information and extensive responsible gaming features 13 in addition to those described in section 99F.4, subsection 22. 14 3. A licensee under this section may enter into operating 15 agreements with one or two entities to have up to a total of 16 two individually branded internet sites to conduct advance 17 deposit gambling games for the licensee, unless one additional 18 operating agreement or individually branded internet site 19 is authorized by the commission. However, a person shall 20 not sell, grant, assign, or turn over to another person the 21 operation of an individually branded internet site to conduct 22 advance deposit gambling games for the licensee without the 23 approval of the commission. This section does not prohibit an 24 agreement entered into between a licensee under this section 25 and an advance deposit gambling games operator as approved by 26 the commission. 27 4. The commission may enter into agreements with other 28 similar entities with authority over foreign jurisdictions 29 to facilitate, administer, and regulate multijurisdictional 30 advance deposit gambling games conducted within the United 31 States to the extent that entering into the agreement is 32 consistent with state and federal laws. 33 Sec. 6. Section 99F.9, subsection 4, paragraph a, Code 2025, 34 is amended by adding the following new subparagraphs: 35 -4- LSB 1393YC (3) 91 ll/ns 4/ 12

H.F. _____ NEW SUBPARAGRAPH . (01) “Advance deposit gambling games” 1 means a method of wagering on gambling games in which an 2 eligible individual may, in an account established with a 3 licensee under section 99F.7B, deposit moneys into the account 4 and use the account balance to pay for wagering on gambling 5 games, including but not limited to slots and simulated table 6 games of chance. 7 NEW SUBPARAGRAPH . (001) “Advance deposit gambling games 8 operator” means an advance deposit gambling games operator 9 licensed by the commission who has entered into an agreement 10 with a licensee under section 99F.7B to provide advance deposit 11 gambling games. 12 NEW SUBPARAGRAPH . (4) “Live advance deposit gambling games 13 simulcast” means an interactive live feed of a gambling game 14 that is conducted by a live gambling game studio and in which 15 patrons have the ability to wager in real time. 16 NEW SUBPARAGRAPH . (5) “Live gambling game studio” means a 17 physical location that utilizes live video and audio streaming 18 technology to provide an advance deposit gambling games 19 operator with live advance deposit gambling games simulcasts. 20 NEW SUBPARAGRAPH . (6) “Permissible jurisdiction” means 21 a jurisdiction other than this state from which wagers on 22 interactive gaming may be accepted pursuant to an interactive 23 gaming reciprocal agreement. 24 Sec. 7. Section 99F.9, subsection 4, paragraph a, 25 subparagraph (3), Code 2025, is amended to read as follows: 26 (3) “Eligible individual” means an individual who is at 27 least twenty-one years of age or older who is located within 28 this state or a permissible jurisdiction . 29 Sec. 8. Section 99F.9, subsection 4, Code 2025, is amended 30 by adding the following new paragraphs: 31 NEW PARAGRAPH . 0c. The commission may authorize a licensee 32 under section 99F.7B to conduct advance deposit gambling 33 games. Advance deposit gambling games wagers may be placed 34 from any location by an eligible individual within the state 35 -5- LSB 1393YC (3) 91 ll/ns 5/ 12

H.F. _____ via a telephone-type device, a computer, through the internet, 1 or by any other electronic means. The commission may also 2 issue an advance deposit gambling games operator license to 3 an entity who complies with this subsection and section 99F.6 4 and may require the advance deposit gambling games operator to 5 conduct an audit consistent with the requirements of section 6 99F.13. An applicant for an advance deposit gambling games 7 operator license that holds an advance deposit sports wagering 8 operator license in good standing with the commission may 9 be deemed qualified for an advance deposit gambling games 10 operator license without further investigation and shall not be 11 subject to an additional background investigation, but may be 12 required to submit an affidavit that there has been no change 13 in criminal history. 14 NEW PARAGRAPH . 00c. The commission shall permit an eligible 15 individual to use the same account to conduct advance deposit 16 sports wagering and advance deposit gambling games with an 17 operator licensed to conduct both advance deposit sports 18 wagering and advance deposit gambling games. 19 NEW PARAGRAPH . 000c. An advance deposit gambling games 20 operator may offer live advance deposit gambling games 21 simulcasts from the premises of a live gambling game studio in 22 any location. Live gambling game studios are not required to 23 be located in the state. An advance deposit gambling games 24 operator may utilize a live gambling game studio located in 25 another state regardless of the existence of a reciprocal 26 agreement with such state. 27 (1) The commission may enter into reciprocal agreements 28 with permissible jurisdictions for the conduct of advance 29 deposit gambling games, provided such agreements are not 30 inconsistent with federal law and the law of the jurisdiction 31 in which the person placing a wager is located. 32 (2) An advance deposit gambling games operator may accept 33 advance deposit gambling games wagers from persons physically 34 located in a permissible jurisdiction pursuant to a reciprocal 35 -6- LSB 1393YC (3) 91 ll/ns 6/ 12

H.F. _____ agreement. 1 (3) A reciprocal agreement with a permissible jurisdiction 2 may allow a person physically located in this state to place 3 a wager with a gaming operator provider in such permissible 4 jurisdiction. 5 Sec. 9. Section 99F.9, subsection 4, paragraph c, Code 2025, 6 is amended to read as follows: 7 c. An unlicensed person taking or receiving sports 8 or gambling games wagers from residents of this state or 9 another jurisdiction is guilty of a class “D” felony. A 10 licensed person taking or receiving gambling games wagers 11 from jurisdictions other than this state or a permissible 12 jurisdiction is guilty of a class “D” felony. 13 Sec. 10. Section 99F.11, Code 2025, is amended by adding the 14 following new subsection: 15 NEW SUBSECTION . 6. a. A tax is imposed on the advance 16 deposit gambling games net receipts received each fiscal year 17 by a licensed advance deposit gambling games operator, as 18 defined in section 99F.9, at the rate of ten percent. 19 b. The taxes imposed by this subsection for advance deposit 20 gambling games, as defined in section 99F.9, authorized under 21 this chapter shall be paid by the licensed advance deposit 22 gambling games operator to the treasurer of state as determined 23 by the commission and shall be credited as provided in section 24 8.57, subsection 3. 25 c. For purposes of this subsection: 26 (1) “Advance deposit gambling games gross receipts” means 27 the total of all moneys paid by patrons as wagers in advance 28 deposit gambling games, but does not include the value of 29 promotional credits used to place wagers. 30 (2) “Advance deposit gambling games net receipts” means the 31 advance deposit gambling games gross receipts less winnings 32 paid to patrons. 33 Sec. 11. Section 99F.12, subsection 2, paragraph b, Code 34 2025, is amended to read as follows: 35 -7- LSB 1393YC (3) 91 ll/ns 7/ 12

H.F. _____ b. A licensee under section 99F.7A or 99F.7B shall 1 promptly report to the commission any criminal or disciplinary 2 proceedings commenced against the licensee or its employees in 3 connection with the licensee conducting sports wagering , or 4 advance deposit sports wagering, or advance deposit gambling 5 games, any abnormal wagering activity or patterns that may 6 indicate a concern about the integrity of an authorized 7 sporting event , or sports-related event, or advance deposit 8 gambling game, and any other conduct with the potential to 9 corrupt a wagering outcome of an authorized sporting event , 10 or sports-related event , or advance deposit gambling game 11 for purposes of financial gain, including but not limited to 12 match fixing, and suspicious or illegal wagering activities, 13 including the use of funds derived from illegal activity, 14 wagers to conceal or launder funds derived from illegal 15 activity, use of agents to place wagers, or use of false 16 identification. The commission is required to share any 17 information received pursuant to this paragraph with the 18 division of criminal investigation, any other law enforcement 19 entity upon request, or any regulatory agency the commission 20 deems appropriate. The commission shall promptly report any 21 information received pursuant to this paragraph with any 22 sports team or sports governing body as the commission deems 23 appropriate, but shall not share any information that would 24 interfere with an ongoing criminal investigation. 25 Sec. 12. Section 99F.20, subsection 1, Code 2025, is amended 26 to read as follows: 27 1. A gaming regulatory revolving fund is created in 28 the state treasury under the control of the department of 29 inspections, appeals, and licensing. The fund shall consist of 30 fees collected and deposited into the fund paid by licensees 31 pursuant to section 99D.14, subsection 2 , paragraph “c” , fees 32 paid by licensees pursuant to section 99E.5, subsection 4 , 33 paragraph “c” , regulatory fees paid by licensees pursuant 34 to section 99F.4, subsection subsections 27 and 28 , and fees 35 -8- LSB 1393YC (3) 91 ll/ns 8/ 12

H.F. _____ paid by licensees pursuant to section 99F.10, subsection 4 , 1 paragraph “c” . All costs relating to racetrack, excursion 2 boat, gambling structure, internet fantasy sports contests as 3 defined in section 99E.1 , and sports wagering regulation shall 4 be paid from the fund as provided in appropriations made for 5 this purpose by the general assembly. The department shall 6 provide quarterly reports to the department of management and 7 the legislative services agency specifying revenues billed 8 and collected and expenditures from the fund in a format as 9 determined by the department of management in consultation with 10 the legislative services agency. 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanation’s substance by the members of the general assembly. 14 This bill authorizes advance deposit gambling games. 15 Code sections 99D.7(23) and 99F.4(22), concerning persons 16 voluntarily excluded from wagering or gaming areas, are amended 17 to include advanced deposit gambling games. 18 Code section 99F.4, concerning racing and gaming commission 19 (commission) powers, is amended to grant the commission the 20 authority to adopt standards under which advance deposit 21 gambling games are conducted, identify occupations which 22 require licensing and adopt standards and fees related 23 to occupational licenses, and adopt rules necessary for 24 commercially reasonable know-your-customer controls. The bill 25 provides that revenue received by the commission from license 26 fees for advance deposit gambling games shall be deposited in 27 the general fund and revenue received by the commission from 28 regulatory fees shall be deposited into the gaming regulatory 29 revolving fund established in Code section 99F.20. 30 New Code section 99F.7B provides specific requirements 31 relative to the licensing, operation, and fees applicable to 32 advance deposit gambling games. The bill provides that the 33 commission shall, upon payment of an initial license fee of 34 $45,000, issue a license to conduct advance deposit gambling 35 -9- LSB 1393YC (3) 91 ll/ns 9/ 12

H.F. _____ games to a licensee authorized to conduct gambling games at 1 a pari-mutuel racetrack enclosure or a licensee authorized 2 to operate an excursion gambling boat or gambling structure. 3 The bill provides for an annual renewal fee of $10,000. The 4 bill also provides that a licensee shall include on the 5 internet site or mobile application used by the licensee to 6 conduct advance deposit gambling games the statewide telephone 7 number authorized by the Iowa department of health and human 8 services to provide problem gambling information and extensive 9 responsible gaming features. The bill also provides that a 10 licensee may enter into operating agreements with up to two 11 entities to have a total of two individually branded internet 12 sites to conduct advance deposit gambling games. The bill 13 allows the commission to enter into agreements with other 14 similar entities with authority over foreign jurisdictions 15 to facilitate, administer, and regulate multijurisdictional 16 advance deposit gambling games conducted within the United 17 States to the extent that entering into the agreement is 18 consistent with state and federal laws. 19 Code section 99F.9, concerning wagering on gambling games, 20 is amended to allow the commission to authorize gambling 21 game licensees under Code chapter 99F to conduct advance 22 deposit gambling games. The bill defines terms used in the 23 bill, including “advance deposit gambling games” as a form 24 of wagering on gambling games where an eligible individual 25 creates an account with a licensee, deposits money into 26 that account, and can use the balance within the account for 27 wagering on gambling games. The bill allows an eligible 28 individual, defined as an individual 21 years of age or older 29 who is located within this state or a permissible jurisdiction, 30 to place an advance deposit gambling games wager from any 31 location within this state by telephone, a computer, through 32 the internet, or by other electronic means. The bill allows a 33 licensee under Code section 99F.7B to enter into an agreement 34 with an advance deposit gambling games operator licensed by 35 -10- LSB 1393YC (3) 91 ll/ns 10/ 12

H.F. _____ the commission to provide advance deposit gambling games for 1 the licensee and allows the commission to require the advance 2 deposit gambling games operator to conduct an audit. 3 An applicant for an advance deposit gambling games operator 4 license that holds an advance deposit sports wagering operator 5 license in good standing with the commission may be deemed 6 qualified for an advance deposit gambling games operator 7 license without further investigation. The bill also provides 8 that the commission shall permit an eligible individual to use 9 the same account to conduct advance deposit sports wagering and 10 advance deposit gambling games with an operator licensed to 11 conduct both. 12 The bill provides that an advance deposit gambling games 13 operator may offer live advance deposit gambling games 14 simulcasts from live gambling game studio premises in any 15 location. Live gambling game studios are not required to be 16 located in the state. The commission may enter into reciprocal 17 agreements with permissible jurisdictions that are not 18 inconsistent with federal law or the permissible jurisdiction 19 to allow advance deposit gambling games to be conducted with 20 persons physically located in the permissible jurisdiction or 21 for persons located in this state to place an advance deposit 22 gambling games wager with a gaming operator provider in the 23 permissible jurisdiction. 24 A 10 percent tax is imposed on the advance deposit gambling 25 games net receipts received by a licensed advance deposit 26 gambling games operator to be paid, as directed by the 27 commission, to the treasurer of state and to be credited as 28 provided in Code section 8.57(3). Reporting requirements for 29 sports wagering and advance deposit sports wagering licensees 30 are applied to advance deposit gambling games licensees. 31 Under the bill, an unlicensed person taking or receiving 32 gambling games wagers from residents of this state or 33 another jurisdiction is guilty of a class “D” felony. A 34 licensed person taking or receiving gambling games wagers 35 -11- LSB 1393YC (3) 91 ll/ns 11/ 12