H.F. _____ Section 1. Section 99G.3, Code 2026, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 3A. “Courier service” means a person that 3 purchases and stores a share or ticket on behalf of a customer 4 located in this state and delivers the share or ticket, or the 5 prize from the share or ticket, to the customer in this state 6 as a for-profit service. 7 Sec. 2. Section 99G.24, Code 2026, is amended by adding the 8 following new subsection: 9 NEW SUBSECTION . 10. a. A retailer may sell a share or 10 ticket to a courier service that has entered into a written 11 agreement with the retailer pursuant to paragraph “b” . A 12 retailer shall disclose the agreement to the administrator 13 within three business days after the execution of the 14 agreement. 15 b. A written agreement between a courier service and a 16 retailer to buy and sell shares and tickets must contain all 17 of the following terms: 18 (1) A requirement that a courier service only accept an 19 order for a share or ticket from a customer if the courier 20 service has determined through the use of geolocation software 21 that the customer is physically located in this state, and not 22 located on a federally recognized Indian reservation, at the 23 time the order is placed. 24 (2) A requirement that a courier service employ age 25 verification software that only allows a customer who is of 26 lawful age to purchase a share or ticket pursuant to section 27 99G.30 to order a share or ticket. 28 (3) A requirement that a courier service securely store a 29 share or ticket on behalf of a customer until the prize for the 30 share or ticket is redeemed at retail by the courier service 31 and picked up by or delivered to the customer, or until the 32 share or ticket is picked up by or delivered to the customer. 33 (4) A requirement that a courier service arrange the pickup 34 by or physical delivery to the customer of a share or ticket 35 -1- LSB 5930YC (4) 91 ss/ns 1/ 3

H.F. _____ winning a prize in excess of the amount that can be redeemed at 1 retail as provided by the commission by rule, for the customer 2 to then redeem the prize as otherwise provided by law. 3 (5) A requirement that a courier service maintain 4 appropriate controls for responsible play, including the use 5 of daily, weekly, or monthly limits that may be reduced by 6 the customer, as well as self-exclusion capabilities. The 7 agreement must also require advertisements and communications 8 from the courier service to comply with applicable responsible 9 gambling advertising guidelines. 10 (6) A requirement that a courier service only purchase 11 shares or tickets at a dedicated courier service terminal or 12 dedicated courier service self-service kiosk located at the 13 retailer using cash or an automated clearinghouse transaction. 14 (7) A provision allowing a courier service to assess a 15 reasonable fee to a customer for the cost of order fulfillment 16 and storage. 17 (8) A prohibition on the purchase of a share or ticket 18 through a courier service by a customer using a credit card. 19 (9) A requirement that the courier service annually obtain 20 a report from a firm nationally recognized for providing audit, 21 testing, or certification services that certifies that the 22 courier service is in compliance with the written agreement 23 between the courier service and the retailer, which the courier 24 service shall provide to the retailer. 25 c. The commission shall issue dedicated terminals or 26 self-service kiosks for use by courier services to retailers 27 contracted with a courier service pursuant to this subsection. 28 A retailer shall not commingle retail share and ticket sales 29 with sales to a courier service. 30 d. The commission shall adopt rules pursuant to chapter 17A 31 to implement this subsection. 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanation’s substance by the members of the general assembly. 35 -2- LSB 5930YC (4) 91 ss/ns 2/ 3

H.F. _____ This bill relates to the purchase of lottery shares and 1 tickets by a courier service. The bill allows a courier 2 service, defined in the bill as a person that purchases and 3 stores a share or ticket on behalf of a customer and delivers 4 the share or ticket, or the prize from the share or ticket, to 5 the customer as a for-profit service, to enter into a written 6 agreement with a lottery retailer to purchase, store, and 7 deliver shares, tickets, and prizes on behalf of customers 8 located in this state. 9 The bill specifies certain terms that a written agreement 10 between a courier service and a retailer must contain. These 11 include terms for verifying the location and age of a customer 12 making a purchase through a courier service, a requirement 13 that a share or ticket be securely stored by a courier service 14 before being picked up by or delivered to the customer or 15 redeemed by the courier service for the purpose of pickup or 16 delivery of the prize to the customer, a requirement that a 17 courier service maintain certain responsible play controls 18 and comply with advertising guidelines, a requirement that a 19 courier service only purchase shares or tickets at a dedicated 20 terminal or self-service kiosk, a provision allowing a courier 21 service to charge reasonable fees to customers, a prohibition 22 on the purchase of shares or tickets using a credit card, and 23 a requirement that a courier service annually contract for an 24 audit of the courier service’s compliance with the written 25 agreement. Such agreements must be disclosed by the retailer 26 to the administrator of the Iowa lottery within three business 27 days after execution. 28 The bill requires the Iowa lottery commission to issue 29 dedicated self-service terminals or kiosks for use by courier 30 services and prohibits a retailer from commingling retail share 31 and ticket sales with sales to courier services. 32 -3- LSB 5930YC (4) 91 ss/ns 3/ 3