Senate Study Bill 1069 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON WEBSTER) A BILL FOR An Act concerning the licensing and regulation of gambling 1 games, including a moratorium on the issuance of new 2 licenses, and including effective date and retroactive 3 applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1488XC (2) 91 ll/ns

S.F. _____ Section 1. Section 99F.4, subsection 24, Code 2025, is 1 amended to read as follows: 2 24. a. To conduct a socioeconomic study on the impact of 3 gambling on Iowans, every eight years beginning in calendar 4 year 2013, and issue a report on that study. The commission 5 shall ensure that the results of each study are readily 6 accessible to the public. 7 b. The report on the study must include all of the 8 following: 9 (1) Information on the financial and societal impact of 10 gambling. 11 (2) An analysis of problem gambling and treatment programs. 12 (3) An evaluation of existing excursion gambling boats, 13 gambling structures, and pari-mutuel racetracks located in 14 rural areas or near the state border, if a new license is 15 awarded. 16 (4) A comprehensive assessment of potential gambling market 17 conditions. 18 (5) An evaluation of the effects on the gambling market from 19 competitive gambling locations located within sixty miles of 20 the state. 21 (6) An evaluation of the effects on attracting out-of-state 22 tourists to existing excursion gambling boats, gambling 23 structures, and pari-mutuel racetracks located near the state 24 border. 25 (7) An evaluation of the effects on existing qualified 26 sponsoring organizations and potential reductions in annual 27 distributions made by the sponsoring organization, if a new 28 license is awarded. 29 (8) The percentage ownership of existing gambling boats, 30 gambling structures, and pari-mutuel racetracks by residents of 31 this state versus any applicant. 32 (9) A comprehensive study of new potential adjusted gross 33 receipts after awarding a new license and the level of gambling 34 saturation with a sixty-mile radius of any existing excursion 35 -1- LSB 1488XC (2) 91 ll/ns 1/ 6

S.F. _____ gambling boat, gambling structure, or racetrack enclosure. 1 (10) Criminal statistics near existing excursion gambling 2 boats, gambling structures, or racetrack enclosures, and near 3 any potential locations of an excursion gambling boat, gambling 4 structure, or racetrack enclosure. 5 (11) An analysis of the impact on community services, 6 including public safety expenditures, fire protection, 7 infrastructure improvements, and other capital project 8 expenditures in counties. 9 Sec. 2. NEW SECTION . 99F.5A Limitations on issuance of 10 licenses to conduct gambling games. 11 1. a. Commencing January 1, 2025, through June 30, 2030, 12 the total number of licenses issued by the commission to 13 conduct gambling games on an excursion gambling boat, at a 14 gambling structure, or at a pari-mutuel racetrack shall not 15 exceed nineteen subject to the requirements of this subsection. 16 b. Licenses to conduct gambling games shall be restricted 17 to those counties where an excursion gambling boat, gambling 18 structure, or racetrack enclosure was operating and licensed to 19 conduct gambling games on January 1, 2025. 20 c. The commission shall be authorized to take any of the 21 following actions concerning the issuance of licenses to 22 conduct gambling games: 23 (1) A gambling games licensee may move to a new location 24 within the same county and retain the gambling games license. 25 (2) A licensed facility may be sold and a new gambling games 26 license issued for operation in the same county. 27 (3) If a license to conduct gambling games is surrendered, 28 not renewed, or revoked, a new gambling games license may be 29 issued for operation in the same county. 30 2. On or after July 1, 2030, the commission shall not 31 issue a new license until after the commission has issued the 32 required report on the socioeconomic study on the impact of 33 gambling on Iowans due for calendar year 2029 in accordance 34 with section 99F.4, subsection 24. 35 -2- LSB 1488XC (2) 91 ll/ns 2/ 6

S.F. _____ 3. This section is repealed July 1, 2031. 1 Sec. 3. Section 99F.6, subsection 5, Code 2025, is amended 2 to read as follows: 3 5. Before a license is granted, an operator of an excursion 4 gambling boat shall work with the economic development 5 authority to promote tourism throughout Iowa and encourage 6 tourism from other states . Tourism information from local 7 civic and private persons may be submitted for dissemination. 8 The commission shall not issue a new license for a new location 9 that would negatively impact an existing licensee located 10 in a county contiguous to the Iowa border or located in a 11 county that qualifies as a rural county. For purposes of this 12 subsection, “rural county” means a county with a population 13 of less than thirty thousand as determined by the most recent 14 population estimate produced by the United States bureau of 15 the census or the most recent decennial census released by the 16 United States bureau of the census. 17 Sec. 4. Section 99F.6, Code 2025, is amended by adding the 18 following new subsection: 19 NEW SUBSECTION . 10. a. The commission shall not issue a 20 new license to conduct gambling games if the commission finds 21 the approval of a new license would cause or do any of the 22 following: 23 (1) Negatively impact the adjusted gross receipts of an 24 existing excursion gambling boat, gambling structure, or 25 racetrack enclosure by more than ten percent. 26 (2) Negatively impact the annual distributions of an 27 existing qualified sponsoring organization. 28 b. If the commission does not issue a new license to conduct 29 gambling games in a county, another application shall not be 30 submitted for that county for eight years from the date of the 31 decision not to issue the license. 32 Sec. 5. INTERNET GAMING —— REVIEW. 33 1. The state racing and gaming commission shall initiate 34 and coordinate an independent review of regulation frameworks 35 -3- LSB 1488XC (2) 91 ll/ns 3/ 6

S.F. _____ and the various components implementing internet gaming in the 1 state and its impact on the state’s gaming industry. 2 2. a. The review must take into account the policy 3 objectives of ensuring and preserving Iowa’s competitiveness 4 in the gaming industry and may consider all of the following: 5 recent trends in Iowa gaming revenue and the correlation to 6 gaming attendance at brick and mortar casino locations and a 7 comparison to gaming trends in other states; estimates of the 8 potential impact on Iowa gaming revenues, profitability, and 9 how that might impact Iowa jobs, business vendors, nonprofit 10 fund sharing, and tax revenues; and the societal impact of 11 internet gaming and how to ensure safety and security for Iowa 12 consumers. 13 b. The review must analyze and report on the illegal 14 gambling market and the illegal internet gambling market 15 including all of the following: societal impacts, underage 16 access, the integrity of illegal gambling games, the payment of 17 winnings, anti-money laundering aspects, and identity theft. 18 c. The review must include an assessment of the 19 effectiveness of problem gambling services in the state. 20 d. The review must include an assessment of the direct and 21 indirect employment effects on the surrounding communities 22 where existing licensees are located. 23 3. The review must include recommendations for changes in 24 law and administrative rules and identification of internet 25 gaming laws and procedures of other states that, if adopted in 26 Iowa, could enhance and preserve the competitiveness of the 27 existing gaming industry in the state. 28 4. The state racing and gaming commission shall, and 29 existing licensees and other interested persons may, 30 participate in the review. The commission may utilize 31 additional services to assist in the coordination of the review 32 and preparation of the report. The commission shall submit 33 a report with findings and recommendations to the general 34 assembly by January 1, 2026. 35 -4- LSB 1488XC (2) 91 ll/ns 4/ 6

S.F. _____ Sec. 6. EFFECTIVE DATE. This Act, being deemed of immediate 1 importance, takes effect upon enactment. 2 Sec. 7. RETROACTIVE APPLICABILITY. This Act applies 3 retroactively to January 1, 2025. 4 EXPLANATION 5 The inclusion of this explanation does not constitute agreement with 6 the explanation’s substance by the members of the general assembly. 7 This bill concerns the licensing and regulation of gambling 8 games. Under current law, the state racing and gaming 9 commission (commission) is required to conduct a socioeconomic 10 study on the impact of gambling on Iowans every eight years. 11 The bill identifies certain topics the commission must examine 12 for this socioeconomic study, and prohibits the commission 13 from issuing a new license on or after July 1, 2030, until the 14 required report on the socioeconomic study has been issued by 15 the commission for 2029. 16 The bill places a moratorium on the issuance of new licenses 17 to conduct gambling games in excess of 19 licenses from January 18 1, 2025, through June 30, 2030. The bill restricts gambling 19 games licenses to those counties conducting gambling games on 20 January 1, 2025. The bill allows the commission to authorize a 21 gambling games licensee to move to a new location within the 22 same county, to issue a gambling games license in a county if 23 a licensed facility in that county is sold, and to issue a new 24 license in a county if a previous license to conduct gambling 25 games in that county was surrendered, not renewed, or revoked. 26 Before a license is granted, the bill requires an operator 27 of an excursion gambling boat to work with the economic 28 development authority to encourage tourism from other states. 29 The bill prohibits the commission from issuing a new gambling 30 games license to an excursion gambling boat if the new 31 license would impact an existing licensee located in a county 32 contiguous to the Iowa border or a “rural county” (a county 33 with a population less than 30,000). 34 The bill prohibits the commission from issuing a new 35 -5- LSB 1488XC (2) 91 ll/ns 5/ 6

S.F. _____ gambling games license if the new license would negatively 1 impact the adjusted gross receipts of an existing gambling 2 games licensee by more than 10 percent, or negatively impact 3 the annual distributions of an existing qualified sponsoring 4 organization. If the commission does not issue a gambling 5 games license in a county, another applicant cannot apply for a 6 license in the same county for eight years from the date of the 7 decision not to issue. 8 The bill requires the commission to study internet gaming 9 and its impact on the state’s gaming industry and to issue 10 a report with findings and recommendations to the general 11 assembly by January 1, 2026. 12 The bill takes effect upon enactment and applies 13 retroactively to January 1, 2025. 14 -6- LSB 1488XC (2) 91 ll/ns 6/ 6