Senate File 625 - Reprinted SENATE FILE 625 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO SF 613) (SUCCESSOR TO SSB 1157) (As Amended and Passed by the Senate April 17, 2025 ) A BILL FOR An Act relating to gambling regulation, including enforcement, 1 license fees, tax rates, and the use of associated revenue, 2 making appropriations, and including effective date 3 provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 SF 625 (5) 91 ns/js/mb

S.F. 625 Section 1. Section 8.57, subsection 3, paragraph d, 1 subparagraph (1), Code 2025, is amended by adding the following 2 new subparagraph division: 3 NEW SUBPARAGRAPH DIVISION . (0b) For the fiscal year 4 beginning July 1, 2026, and each fiscal year thereafter, of the 5 wagering tax receipts received pursuant to section 99F.11, the 6 remaining amount shall be credited to the gaming enforcement 7 revolving fund created in section 80.43 until the amount 8 credited to the fund under this subparagraph division equals 9 the amount appropriated from the fund by the general assembly 10 for the fiscal year to the department of public safety for 11 direct support costs for agents and officers of the division 12 of criminal investigation’s excursion gambling boat, gambling 13 structure, and racetrack enclosure enforcement activities, 14 including salaries, support, maintenance, miscellaneous 15 purposes, and full-time equivalent positions. 16 Sec. 2. Section 8.57I, subsection 3, Code 2025, is amended 17 to read as follows: 18 3. a. Moneys in the sports wagering receipts fund in a 19 fiscal year shall be used as directed by the general assembly. 20 b. For the fiscal year beginning July 1, 2026, and each 21 fiscal year thereafter, there is appropriated from the sports 22 wagering receipts fund to the public safety equipment fund 23 created in section 80.48 eight million dollars. Subsections 4 24 and 5 do not apply to moneys appropriated under this paragraph. 25 Sec. 3. Section 80.43, subsection 1, Code 2025, is amended 26 to read as follows: 27 1. A gaming enforcement revolving fund is created in the 28 state treasury under the control of the department. The fund 29 shall consist of fees collected and deposited into the fund 30 paid by licensees pursuant to section 99D.14, subsection 2 , 31 paragraph “b” , fees and costs paid by applicants pursuant 32 to section 99E.4, subsection 4 , and fees paid by licensees 33 pursuant to section 99F.10, subsection 4 , paragraph “b” any 34 other moneys appropriated to, transferred to, or deposited in 35 -1- SF 625 (5) 91 ns/js/mb 1/ 6

S.F. 625 the fund . All costs for agents and officers plus any direct 1 support costs for such agents and officers of the division of 2 criminal investigation’s racetrack, excursion boat, gambling 3 structure, and internet fantasy sports contests , as defined in 4 section 99E.1 , enforcement activities shall be paid from the 5 fund as provided in appropriations made for this purpose by the 6 general assembly. 7 Sec. 4. Section 99D.14, subsection 2, paragraph a, 8 subparagraph (1), Code 2025, is amended to read as follows: 9 (1) A licensee shall pay a regulatory fee to be charged as 10 provided in this section . In determining the regulatory fee 11 to be charged as provided under this section , the commission 12 shall use the amount appropriated to the commission plus 13 the cost of salaries for no more than three special agents 14 assigned pursuant to the provisions of section 80.25A , for 15 each racetrack that has not been issued a table games license 16 under chapter 99F or no more than three special agents 17 assigned pursuant to the provisions of section 80.25A , for each 18 racetrack that has been issued a table games license under 19 chapter 99F , plus any direct and indirect support costs for 20 the division of criminal investigation’s duties pursuant to 21 chapters 99D , 99E , and 99F , and section 80.25A , as the basis 22 for determining the amount of revenue to be raised from the 23 regulatory fee. 24 Sec. 5. Section 99D.14, subsection 2, paragraphs b, e, and 25 f, Code 2025, are amended by striking the paragraphs. 26 Sec. 6. Section 99D.14, subsection 2, paragraph d, Code 27 2025, is amended to read as follows: 28 d. The aggregate amount of the regulatory fee assessed under 29 paragraph “a” during each fiscal year shall be reduced by an 30 amount equal to the unexpended moneys from the previous fiscal 31 year that were deposited into the gaming regulatory revolving 32 funds fund established in sections 80.43 and section 99F.20 33 during that previous fiscal year. 34 Sec. 7. Section 99D.15, subsection 4, paragraph b, Code 35 -2- SF 625 (5) 91 ns/js/mb 2/ 6

S.F. 625 2025, is amended to read as follows: 1 b. If wagering on simultaneously telecast horse races and 2 dog races is conducted by a licensee under section 99D.9D , 3 a tax of two percent is imposed on the gross sum wagered by 4 the pari-mutuel method on horse races and dog races which 5 are simultaneously telecast in excess of twenty-five million 6 dollars in a calendar year. Of the tax revenue collected 7 from simulcast horse races under this paragraph, one-half of 8 one percent of the gross sum wagered shall be remitted to 9 the treasurer of the county in which a horse racetrack is 10 located in this state and licensed under this chapter . The 11 tax revenue from simulcast horse races under this paragraph 12 shall be deposited in the Iowa horse racing fund created in 13 section 99D.27B. The remaining amount of tax revenue shall be 14 deposited with the commission. 15 Sec. 8. Section 99D.17, Code 2025, is amended to read as 16 follows: 17 99D.17 Use of funds moneys . 18 Funds Unless otherwise provided by section 99D.15 or another 19 provision of law, moneys received pursuant to sections 99D.14 20 and 99D.15 shall be deposited as provided in section 8.57, 21 subsection 3 . These funds moneys shall first be used to the 22 extent appropriated by the general assembly. The commission 23 is subject to the budget requirements of chapter 8 and the 24 applicable auditing requirements and procedures of chapter 11 . 25 Sec. 9. NEW SECTION . 99D.27B Iowa horse racing fund —— 26 advance deposit wagering tax. 27 1. An Iowa horse racing fund is created in the state 28 treasury under the control of the commission. 29 2. The fund shall consist of tax revenue collected and 30 deposited in the fund pursuant to subsection 6 and section 31 99D.15, subsection 4, and such other moneys appropriated to, 32 transferred to, or deposited in the fund. 33 3. a. Moneys in the fund are appropriated to the commission 34 for distribution in a manner and in an amount as determined by 35 -3- SF 625 (5) 91 ns/js/mb 3/ 6

S.F. 625 the commission to individual entities or a recognized compact 1 of entities tasked with the regulation of the horse racing 2 industry in accordance with the federal Horseracing Integrity 3 and Safety Act of 2020, 15 U.S.C. ch. 57A. 4 b. In the event that the federal Horseracing Integrity 5 and Safety Act of 2020, 15 U.S.C. ch. 57A, is repealed, 6 moneys in the fund shall be transferred to the rebuild Iowa 7 infrastructure fund created in section 8.57. 8 4. Members of the commission and those acting on behalf of 9 the commission assisting in the distribution of the moneys in 10 the fund shall be held harmless against any claim of liability 11 made by an individual or entity arising out of the distribution 12 of the moneys from the fund by the commission. 13 5. Section 8.33 does not apply to moneys in the fund. 14 Notwithstanding section 12C.7, subsection 2, interest or 15 earnings on moneys deposited in the fund shall be credited to 16 the fund. 17 6. A tax of two percent is imposed on the gross sum wagered 18 by the pari-mutuel method as an advance deposit wager under 19 section 99D.11, subsection 6, paragraph “c” . The tax imposed 20 under this subsection is in lieu of any tax imposed on such 21 wagers under section 99D.15. The tax revenue generated under 22 this subsection shall be deposited in the fund. 23 Sec. 10. Section 99F.5, subsection 2, Code 2025, is amended 24 to read as follows: 25 2. The annual license fee to operate an excursion gambling 26 boat shall be based on the passenger-carrying capacity 27 including crew, for which the excursion gambling boat is 28 registered. For a gambling structure, the annual license fee 29 shall be based on the capacity of the gambling structure. The 30 annual fee shall be five ten dollars per person capacity. 31 Sec. 11. Section 99F.10, subsection 4, paragraph a, Code 32 2025, is amended to read as follows: 33 a. In determining the license fees and state regulatory 34 fees to be charged as provided under section 99F.4 and this 35 -4- SF 625 (5) 91 ns/js/mb 4/ 6

S.F. 625 section , the commission shall use as the basis for determining 1 the amount of revenue to be raised from the license fees and 2 regulatory fees the amount appropriated to the commission plus 3 the cost of salaries for no more than three special agents 4 for each excursion gambling boat or gambling structure as 5 assigned pursuant to the provisions of section 80.25A , plus any 6 direct and indirect support costs for the division of criminal 7 investigation’s duties pursuant to chapters 99D , 99E , and 99F , 8 and section 80.25A . 9 Sec. 12. Section 99F.10, subsection 4, paragraphs b, d, f, 10 and g, Code 2025, are amended by striking the paragraphs. 11 Sec. 13. Section 99F.10, subsection 4, paragraph e, Code 12 2025, is amended to read as follows: 13 e. The aggregate amount of the regulatory fee assessed under 14 paragraph “a” during each fiscal year shall be reduced by an 15 amount equal to the unexpended moneys from the previous fiscal 16 year that were deposited into the gaming regulatory revolving 17 funds fund established in section 80.43 or 99F.20 during that 18 previous fiscal year. 19 Sec. 14. Section 99F.10, subsection 5, Code 2025, is amended 20 by striking the subsection. 21 Sec. 15. Section 99F.11, subsection 1, Code 2025, is amended 22 to read as follows: 23 1. A tax is imposed on the adjusted gross receipts received 24 each fiscal year from gambling games authorized under this 25 chapter at the rate of five percent on the first one million 26 dollars of adjusted gross receipts and at the rate of ten 27 percent on the next two million dollars of adjusted gross 28 receipts. following rates: 29 a. If the licensee is an excursion gambling boat or gambling 30 structure, twenty-two percent. 31 b. If the licensee is a racetrack enclosure conducting 32 gambling games, twenty-four and one hundred twenty thousandths 33 percent, regardless of whether the licensee has been issued a 34 table games license. 35 -5- SF 625 (5) 91 ns/js/mb 5/ 6

S.F. 625 Sec. 16. Section 99F.11, subsection 2, Code 2025, is amended 1 by striking the subsection. 2 Sec. 17. Section 99F.11, subsection 3, paragraph a, Code 3 2025, is amended to read as follows: 4 a. Notwithstanding any provision of this section to the 5 contrary, the tax rate imposed on a licensee each fiscal 6 year on any amount of promotional play receipts on gambling 7 games included as adjusted gross receipts shall be determined 8 by multiplying the adjusted percentage by the wagering tax 9 applicable to the licensee pursuant to subsection 2 1 . 10 Sec. 18. Section 99F.11, subsection 5, paragraph a, Code 11 2025, is amended to read as follows: 12 a. A tax is imposed on the sports wagering net receipts 13 received each fiscal year by a licensed operator from sports 14 wagering authorized under this chapter at the rate of six and 15 three-quarters nine percent. 16 Sec. 19. EFFECTIVE DATE. This Act takes effect July 1, 17 2026. 18 -6- SF 625 (5) 91 ns/js/mb 6/ 6