S.F. 625 Section 1. Section 8.57I, subsection 3, Code 2025, is 1 amended to read as follows: 2 3. a. Moneys in the sports wagering receipts fund in a 3 fiscal year shall be used as directed by the general assembly. 4 b. For the fiscal year beginning July 1, 2026, and each 5 fiscal year thereafter, there is appropriated from the sports 6 wagering receipts fund to the public safety equipment fund 7 created in section 80.48 eight million dollars. Subsections 4 8 and 5 do not apply to moneys appropriated under this paragraph. 9 Sec. 2. Section 80.43, subsection 1, Code 2025, is amended 10 to read as follows: 11 1. A gaming enforcement revolving fund is created in the 12 state treasury under the control of the department. The fund 13 shall consist of fees collected and deposited into the fund 14 paid by licensees pursuant to section 99D.14, subsection 2 , 15 paragraph “b” , fees and costs paid by applicants pursuant 16 to section 99E.4, subsection 4 , and fees paid by licensees 17 pursuant to section 99F.10, subsection 4 , paragraph “b” any 18 other moneys appropriated to, transferred to, or deposited in 19 the fund . All costs for agents and officers plus any direct 20 support costs for such agents and officers of the division of 21 criminal investigation’s racetrack, excursion boat, gambling 22 structure, and internet fantasy sports contests , as defined in 23 section 99E.1 , enforcement activities shall be paid from the 24 fund as provided in appropriations made for this purpose by the 25 general assembly. 26 Sec. 3. Section 99D.14, subsection 2, paragraph a, 27 subparagraph (1), Code 2025, is amended to read as follows: 28 (1) A licensee shall pay a regulatory fee to be charged as 29 provided in this section . In determining the regulatory fee 30 to be charged as provided under this section , the commission 31 shall use the amount appropriated to the commission plus 32 the cost of salaries for no more than three special agents 33 assigned pursuant to the provisions of section 80.25A , for 34 each racetrack that has not been issued a table games license 35 -1- LSB 1774SZ (4) 91 ns/js 1/ 8

S.F. 625 under chapter 99F or no more than three special agents 1 assigned pursuant to the provisions of section 80.25A , for each 2 racetrack that has been issued a table games license under 3 chapter 99F , plus any direct and indirect support costs for 4 the division of criminal investigation’s duties pursuant to 5 chapters 99D , 99E , and 99F , and section 80.25A , as the basis 6 for determining the amount of revenue to be raised from the 7 regulatory fee. 8 Sec. 4. Section 99D.14, subsection 2, paragraphs b, e, and 9 f, Code 2025, are amended by striking the paragraphs. 10 Sec. 5. Section 99D.14, subsection 2, paragraph d, Code 11 2025, is amended to read as follows: 12 d. The aggregate amount of the regulatory fee assessed under 13 paragraph “a” during each fiscal year shall be reduced by an 14 amount equal to the unexpended moneys from the previous fiscal 15 year that were deposited into the gaming regulatory revolving 16 funds fund established in sections 80.43 and section 99F.20 17 during that previous fiscal year. 18 Sec. 6. Section 99D.15, subsection 4, paragraph b, Code 19 2025, is amended to read as follows: 20 b. If wagering on simultaneously telecast horse races and 21 dog races is conducted by a licensee under section 99D.9D , 22 a tax of two percent is imposed on the gross sum wagered by 23 the pari-mutuel method on horse races and dog races which 24 are simultaneously telecast in excess of twenty-five million 25 dollars in a calendar year. Of the tax revenue collected 26 from simulcast horse races under this paragraph, one-half of 27 one percent of the gross sum wagered shall be remitted to 28 the treasurer of the county in which a horse racetrack is 29 located in this state and licensed under this chapter . The 30 tax revenue from simulcast horse races under this paragraph 31 shall be deposited in the Iowa horse racing fund created in 32 section 99D.27B. The remaining amount of tax revenue shall be 33 deposited with the commission. 34 Sec. 7. Section 99D.17, Code 2025, is amended to read as 35 -2- LSB 1774SZ (4) 91 ns/js 2/ 8

S.F. 625 follows: 1 99D.17 Use of funds moneys . 2 Funds Unless otherwise provided by section 99D.15 or another 3 provision of law, moneys received pursuant to sections 99D.14 4 and 99D.15 shall be deposited as provided in section 8.57, 5 subsection 3 . These funds moneys shall first be used to the 6 extent appropriated by the general assembly. The commission 7 is subject to the budget requirements of chapter 8 and the 8 applicable auditing requirements and procedures of chapter 11 . 9 Sec. 8. NEW SECTION . 99D.27B Iowa horse racing fund. 10 1. An Iowa horse racing fund is created in the state 11 treasury under the control of the commission. 12 2. The fund shall consist of tax revenue collected and 13 deposited in the fund pursuant to section 99D.15, subsection 14 4, and such other moneys appropriated to, transferred to, or 15 deposited in the fund. 16 3. a. Moneys in the fund are appropriated to the commission 17 for distribution in a manner and in an amount as determined by 18 the commission to individual entities or a recognized compact 19 of entities subject to the regulation of the horse racing 20 industry in accordance with the federal Horseracing Integrity 21 and Safety Act of 2020, 15 U.S.C. ch. 57A. 22 b. In the event that the federal Horseracing Integrity 23 and Safety Act of 2020, 15 U.S.C. ch. 57A, is repealed, 24 moneys in the fund shall be transferred to the rebuild Iowa 25 infrastructure fund created in section 8.57. 26 4. Members of the commission and those acting on behalf of 27 the commission assisting in the distribution of the moneys in 28 the fund shall be held harmless against any claim of liability 29 made by an individual or entity arising out of the distribution 30 of the moneys from the fund by the commission. 31 5. Section 8.33 does not apply to moneys in the fund. 32 Notwithstanding section 12C.7, subsection 2, interest or 33 earnings on moneys deposited in the fund shall be credited to 34 the fund. 35 -3- LSB 1774SZ (4) 91 ns/js 3/ 8

S.F. 625 Sec. 9. Section 99F.5, subsection 2, Code 2025, is amended 1 to read as follows: 2 2. The annual license fee to operate an excursion gambling 3 boat shall be based on the passenger-carrying capacity 4 including crew, for which the excursion gambling boat is 5 registered. For a gambling structure, the annual license fee 6 shall be based on the capacity of the gambling structure. The 7 annual fee shall be five ten dollars per person capacity. 8 Sec. 10. Section 99F.10, subsection 4, paragraph a, Code 9 2025, is amended to read as follows: 10 a. In determining the license fees and state regulatory 11 fees to be charged as provided under section 99F.4 and this 12 section , the commission shall use as the basis for determining 13 the amount of revenue to be raised from the license fees and 14 regulatory fees the amount appropriated to the commission plus 15 the cost of salaries for no more than three special agents 16 for each excursion gambling boat or gambling structure as 17 assigned pursuant to the provisions of section 80.25A , plus any 18 direct and indirect support costs for the division of criminal 19 investigation’s duties pursuant to chapters 99D , 99E , and 99F , 20 and section 80.25A . 21 Sec. 11. Section 99F.10, subsection 4, paragraphs b, d, f, 22 and g, Code 2025, are amended by striking the paragraphs. 23 Sec. 12. Section 99F.10, subsection 4, paragraph e, Code 24 2025, is amended to read as follows: 25 e. The aggregate amount of the regulatory fee assessed under 26 paragraph “a” during each fiscal year shall be reduced by an 27 amount equal to the unexpended moneys from the previous fiscal 28 year that were deposited into the gaming regulatory revolving 29 funds fund established in section 80.43 or 99F.20 during that 30 previous fiscal year. 31 Sec. 13. Section 99F.10, subsection 5, Code 2025, is amended 32 by striking the subsection. 33 Sec. 14. Section 99F.11, subsection 1, Code 2025, is amended 34 to read as follows: 35 -4- LSB 1774SZ (4) 91 ns/js 4/ 8

S.F. 625 1. A tax is imposed on the adjusted gross receipts received 1 each fiscal year from gambling games authorized under this 2 chapter at the rate of five percent on the first one million 3 dollars of adjusted gross receipts and at the rate of ten 4 percent on the next two million dollars of adjusted gross 5 receipts. following rates: 6 a. If the licensee is an excursion gambling boat or gambling 7 structure, twenty-two percent. 8 b. If the licensee is a racetrack enclosure conducting 9 gambling games, twenty-four and one hundred twenty thousandths 10 percent, regardless of whether the licensee has been issued a 11 table games license. 12 Sec. 15. Section 99F.11, subsection 2, Code 2025, is amended 13 by striking the subsection. 14 Sec. 16. Section 99F.11, subsection 3, paragraph a, Code 15 2025, is amended to read as follows: 16 a. Notwithstanding any provision of this section to the 17 contrary, the tax rate imposed on a licensee each fiscal 18 year on any amount of promotional play receipts on gambling 19 games included as adjusted gross receipts shall be determined 20 by multiplying the adjusted percentage by the wagering tax 21 applicable to the licensee pursuant to subsection 2 1 . 22 Sec. 17. Section 99F.11, subsection 4, Code 2025, is amended 23 by adding the following new paragraph: 24 NEW PARAGRAPH . 0e. For the fiscal year beginning July 1, 25 2026, and each fiscal year thereafter, the remaining amount of 26 the adjusted gross receipts tax shall be credited to the gaming 27 enforcement revolving fund created in section 80.43 until the 28 amount credited to the fund under this paragraph equals the 29 amount appropriated from the fund by the general assembly 30 for the fiscal year to the department of public safety for 31 direct support costs for agents and officers of the division 32 of criminal investigation’s excursion gambling boat, gambling 33 structure, and racetrack enclosure enforcement activities, 34 including salaries, support, maintenance, miscellaneous 35 -5- LSB 1774SZ (4) 91 ns/js 5/ 8

S.F. 625 purposes, and full-time equivalent positions. 1 Sec. 18. Section 99F.11, subsection 5, paragraph a, Code 2 2025, is amended to read as follows: 3 a. A tax is imposed on the sports wagering net receipts 4 received each fiscal year by a licensed operator from sports 5 wagering authorized under this chapter at the rate of six and 6 three-quarters nine percent. 7 Sec. 19. EFFECTIVE DATE. This Act takes effect July 1, 8 2026. 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanation’s substance by the members of the general assembly. 12 Under current law, the tax rate imposed on sports wagering 13 net receipts of a licensed operator is 6.75 percent, which 14 revenues are deposited in the sports wagering receipts fund. 15 This bill increases the rate to 9 percent. For FY 2026-2027 16 and each fiscal year thereafter, the bill appropriates $8 17 million from the sports wagering receipts fund to the public 18 safety equipment fund, which is used by the department of 19 public safety (DPS) for the purchase, maintenance, and 20 replacement of equipment. The bill exempts the appropriated 21 moneys from the sports wagering receipts fund reporting 22 requirements under current law, as current law already requires 23 DPS to report on the use of moneys in the public safety 24 equipment fund. 25 Under current law, to determine the license fees and 26 regulatory fees to be charged in accordance with Code sections 27 99D.14 and 99F.10, the state racing and gaming commission 28 (commission) must use the amount appropriated to the commission 29 plus the gaming enforcement costs of DPS’s division of criminal 30 investigation. The portion of the fees associated with such 31 enforcement costs is deposited in the gaming enforcement 32 revolving fund to be annually appropriated by the general 33 assembly to DPS for gaming enforcement. The bill strikes 34 the portion of the fees that is based on DPS enforcement 35 -6- LSB 1774SZ (4) 91 ns/js 6/ 8

S.F. 625 costs, and the associated deposit in the gaming enforcement 1 revolving fund. The bill does not amend the fees associated 2 with DPS costs for fingerprinting, national criminal history 3 check requirements, and background investigations for licenses 4 to conduct internet fantasy sports contests (Code section 5 99E.4(4)). 6 Current law provides that the tax imposed on pari-mutuel 7 wagers on simulcast horse races is split in specified 8 percentages between the city and county in which the racetrack 9 is located and the commission for deposit as described in Code 10 section 8.57(3) (rebuild Iowa infrastructure fund). The bill 11 instead provides that such revenue from races conducted by a 12 licensee under Code section 99D.9D (simulcasting licensure) is 13 to be deposited in the Iowa horse racing fund, created in the 14 bill, to be used by the commission for distribution to entities 15 subject to federal horse racing regulations. The disposition 16 of revenues from races not conducted by a licensee is not 17 changed under the bill. 18 Under current law, the annual license fee to operate an 19 excursion gambling boat or gambling structure is $5 per person 20 capacity. The bill increases the rate to $10 per person 21 capacity. 22 Under current law, a tax is imposed on the adjusted gross 23 receipts received each fiscal year from excursion gambling 24 boats, gambling structures, and racetrack enclosures conducting 25 gambling games. The rate is 5 percent on the first $1 million 26 and 10 percent on the next $2 million. Over $3 million, 27 the tax rate is 22 percent for an excursion gambling boat 28 or gambling structure, and between 22 and 24 percent for a 29 racetrack enclosure based on the existence of an excursion 30 gambling boat or gambling structure in the same county, whether 31 the racetrack enclosure has been issued a table games license, 32 and whether adjusted gross receipts reached $100 million. The 33 bill eliminates this tax rate structure and imposes a tax of 22 34 percent for an excursion gambling boat or gambling structure, 35 -7- LSB 1774SZ (4) 91 ns/js 7/ 8

S.F. 625 and 24.120 percent for a racetrack enclosure, on all adjusted 1 gross receipts each fiscal year. 2 For FY 2026-2027 and each fiscal year thereafter, prior 3 to the remaining amount of the adjusted gross receipts tax 4 being credited to the rebuild Iowa infrastructure fund as 5 provided under current law, an amount is credited to the gaming 6 enforcement revolving fund up to the amount appropriated by the 7 general assembly to DPS for gaming enforcement from that fund 8 for that fiscal year. 9 The bill takes effect July 1, 2026. 10 -8- LSB 1774SZ (4) 91 ns/js 8/ 8