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Senate File 366 - IntroducedA Bill ForAn Act 1relating to gambling regulation and wagering, by
2providing for sports wagering and fantasy sports contests,
3providing for taxes and fees, making penalties applicable,
4and including implementation and effective date provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2SPORTS WAGERING
3 Section 1. Section 99D.7, subsection 23, Code 2019, is
4amended to read as follows:
523. To establish a process to allow a person to be
6voluntarily excluded from advance deposit wagering as defined
7in section 99D.11, from an internet fantasy sports contest
8as defined in section 99E.1, from advance deposit sports
9wagering as defined in section 99F.9, from the wagering area
10of a racetrack enclosure and from the gaming floor and sports
11wagering area, as defined in section 99F.1, of all other
12licensed facilities under this chapter and chapter 99F as
13provided in this subsection. The process shall provide that
14an initial request by a person to be voluntarily excluded
15shall be for a period of five years or life and any subsequent
16request following any five-year period shall be for a period
17of five years or life. The process established shall require
18that licensees be provided electronic access to names and
19social security numbers of persons voluntarily excluded
20through a secured interactive internet site maintained by
21the commission and information regarding persons voluntarily
22excluded shall be disseminated to all licensees under this
23chapter and chapter 99F. The names, social security numbers,
24and information regarding persons voluntarily excluded shall
25be kept confidential unless otherwise ordered by a court or by
26another person duly authorized to release such information.
27The process established shall also require a person requesting
28to be voluntarily excluded be provided information compiled
29by the Iowa department of public health on gambling treatment
30options. The state and any licensee under this chapter or
31chapter 99F shall not be liable to any person for any claim
32which may arise from this process. In addition to any other
33penalty provided by law, any money or thing of value that has
34been obtained by, or is owed to, a voluntarily excluded person
35as a result of wagers made by the person after the person has
-1-1been voluntarily excluded shall be forfeited by the person and
2shall be credited to the general fund of the state.
3 Sec. 2. Section 99F.1, subsection 1, Code 2019, is amended
4to read as follows:
51. “Adjusted gross receipts” means the gross receipts less
6winnings paid to wagerers on gambling games. However, “adjusted
7gross receipts” does not include promotional play receipts
8received after the date in any fiscal year that the commission
9determines that the wagering tax imposed pursuant to section
1099F.11 on all licensees in that fiscal year on promotional
11play receipts exceeds twenty-five million eight hundred twenty
12thousand dollars.
13 Sec. 3. Section 99F.1, Code 2019, is amended by adding the
14following new subsections:
15 NEW SUBSECTION. 2A. “Authorized sporting event” means
16a professional sporting event, collegiate sporting event,
17international sporting event, professional motor race event, or
18any other minor league or amateur sporting event as authorized
19by the commission pursuant to section 99F.7A, subsection
203. “Authorized sporting event” does not include a race as
21defined in section 99D.2, a fantasy sports contest as defined
22in section 99E.1, or any athletic event or competition of an
23interscholastic sport as defined in section 9A.102.
24 NEW SUBSECTION. 4A. “Collegiate sporting event” means an
25athletic event or competition of an intercollegiate sport as
26defined in section 9A.102.
27 NEW SUBSECTION. 16A. “International sporting event” means
28an international team or individual sporting event governed by
29an international sports federation or sports governing body,
30including sporting events governed by the international olympic
31committee and the international federation of association
32football.
33 NEW SUBSECTION. 18A. “Minor league sporting event” means
34a sporting event conducted by a sports league which is not
35regarded as the premier league in the sport as determined by
-2-1the commission.
2 NEW SUBSECTION. 19A. “Professional sporting event” means an
3event, excluding a minor league sporting event, at which two
4or more persons participate in sports or athletic events and
5receive compensation in excess of actual expenses for their
6participation in such event.
7 NEW SUBSECTION. 23. “Sports wagering” means the acceptance
8of wagers on an authorized sporting event by any system of
9wagering as authorized by the commission.
10 NEW SUBSECTION. 24. “Sports wagering area” means an area,
11as designated by the commission, in which sports wagering is
12conducted.
13 NEW SUBSECTION. 25. “Sports wagering net receipts” means
14the gross receipts less winnings paid to wagerers on sports
15wagering.
16 Sec. 4. Section 99F.1, subsection 17, Code 2019, is amended
17to read as follows:
1817. “Licensee” means any person licensed under section 99F.7
19or 99F.7A.
20 Sec. 5. Section 99F.3, Code 2019, is amended to read as
21follows:
2299F.3 Gambling games and sports wagering authorized.
23The system of wagering on a gambling game and sports wagering
24 as provided by this chapter is legal, when conducted on an
25excursion gambling boat, gambling structure, or racetrack
26enclosure at authorized locations by a licensee as provided in
27this chapter.
28 Sec. 6. Section 99F.4, subsections 3 and 22, Code 2019, are
29amended to read as follows:
303. To adopt standards under which all excursion gambling
31boat operations shall be held and standards for the facilities
32within which the gambling operations are to be held. The
33commission may authorize the operation of gambling games on
34an excursion gambling boat and sports wagering in a sports
35wagering area which is also licensed to sell or serve alcoholic
-3-1beverages, wine, or beer as defined in section 123.3.
222. To establish a process to allow a person to be
3voluntarily excluded from advance deposit wagering as defined
4in section 99D.11, from an internet fantasy sports contest as
5defined in section 99E.1, from advance deposit sports wagering
6as defined in section 99F.9, from the gaming floor and sports
7wagering area of an excursion gambling boat, from the wagering
8area, as defined in section 99D.2, and from the gaming floor
9and sports wagering area of all other licensed facilities under
10this chapter and chapter 99D as provided in this subsection.
11The process shall provide that an initial request by a person
12to be voluntarily excluded shall be for a period of five years
13or life and any subsequent request following any five-year
14period shall be for a period of five years or life. The
15process established shall require that licensees be provided
16electronic access to names and social security numbers of
17persons voluntarily excluded through a secured interactive
18internet site maintained by the commission and information
19regarding persons voluntarily excluded shall be disseminated
20to all licensees under this chapter and chapter 99D. The
21names, social security numbers, and information regarding
22persons voluntarily excluded shall be kept confidential
23unless otherwise ordered by a court or by another person
24duly authorized to release such information. The process
25established shall also require a person requesting to be
26voluntarily excluded be provided information compiled by the
27Iowa department of public health on gambling treatment options.
28The state and any licensee under this chapter or chapter 99D
29shall not be liable to any person for any claim which may arise
30from this process. In addition to any other penalty provided
31by law, any money or thing of value that has been obtained by,
32or is owed to, a voluntarily excluded person as a result of
33wagers made by the person after the person has been voluntarily
34excluded shall be forfeited by the person and shall be credited
35to the general fund of the state.
-4-1 Sec. 7. Section 99F.4, Code 2019, is amended by adding the
2following new subsection:
3 NEW SUBSECTION. 27. To adopt standards under which all
4sports wagering is conducted, including the scope and type of
5wagers allowed, to identify occupations within sports wagering
6which require licensing, and to adopt standards for licensing
7and background qualifications for occupations including
8establishing fees for the occupational license. All revenue
9received by the commission under this chapter from license fees
10shall be deposited in the general fund of the state and shall
11be subject to the requirements of section 8.60. All revenue
12received by the commission from regulatory fees shall be
13deposited into the gaming regulatory revolving fund established
14in section 99F.20.
15 Sec. 8. NEW SECTION. 99F.7A Sports wagering — license —
16terms and conditions — fees.
171. The commission shall, upon payment of an initial license
18fee of an amount as determined by the general assembly and
19submission of an application to the commission consistent with
20the requirements of section 99F.6, issue a license to conduct
21sports wagering to a licensee authorized to conduct gambling
22games at a pari-mutuel racetrack enclosure or a licensee
23authorized to operate an excursion gambling boat or gambling
24structure, subject to the requirements of this chapter. The
25annual renewal fee for a license to conduct or operate sports
26wagering shall be an amount as determined by the general
27assembly.
282. A licensee under this section shall include on the
29internet site or mobile application used by the licensee to
30conduct advance deposit sports wagering as authorized in
31section 99F.9 the statewide telephone number authorized by the
32Iowa department of public health to provide problem gambling
33information, extensive responsible gaming features in addition
34to those described in section 99F.4, subsection 22, and a
35link to the internet site or mobile application used by an
-5-1advance deposit wagering operator to conduct advance deposit
2wagering pursuant to section 99D.11. In addition, a licensee
3may enter into operating agreements with one or two entities to
4have up to a total of two individually branded internet sites
5to conduct advance deposit sports wagering for the licensee,
6unless one additional operating agreement or individually
7branded internet site is authorized by the commission.
83. Except as provided by this subsection, sports wagering
9on minor league sporting events or amateur athletic contests
10or competitions is prohibited. However, the commission shall
11have the authority, in its sole discretion and upon application
12to the commission in a manner as provided by the commission,
13to authorize sports wagering on minor league sporting events
14or amateur athletic contests or competitions subject to the
15requirements of this subsection. The application to the
16commission shall specify what minor league sporting events
17or amateur athletic contests or competitions the applicant
18seeks commission authorization for sports wagering. In
19determining whether to authorize sports wagering pursuant to
20the requirements of this subsection, the commission shall, at a
21minimum, consider whether allowing wagers on the results of the
22sporting events that are the subject of the application will
23not create a significant risk for manipulation and corruption
24of the sporting events and will provide a quality and fair
25wagering experience for bettors.
264. A licensee issued a license to conduct sports wagering
27under this section shall employ commercially reasonable steps
28to prohibit coaches, athletic trainers, officials, players, or
29other individuals who participate in an authorized sporting
30event that is the subject of sports wagering from sports
31wagering under this chapter. In addition, a licensee shall
32employ commercially reasonable steps to prohibit persons
33who are employed in a position with direct involvement with
34coaches, players, athletic trainers, officials, players, or
35participants in an authorized sporting event that is the
-6-1subject of sports wagering from sports wagering under this
2chapter.
3 Sec. 9. Section 99F.8, Code 2019, is amended to read as
4follows:
599F.8 Bond of licensee.
6A licensee licensed under section 99F.7 shall post a bond
7to the state of Iowa before the license is issued in a sum
8as the commission shall fix, with sureties to be approved by
9the commission. The bond shall be used to guarantee that the
10licensee faithfully makes the payments, keeps its books and
11records and makes reports, and conducts its gambling games and
12sports wagering in conformity with this chapter and the rules
13adopted by the commission. The bond shall not be canceled by
14a surety on less than thirty days’ notice in writing to the
15commission. If a bond is canceled and the licensee fails to
16file a new bond with the commission in the required amount on
17or before the effective date of cancellation, the licensee’s
18license shall be revoked. The total and aggregate liability
19of the surety on the bond is limited to the amount specified in
20the bond.
21 Sec. 10. Section 99F.9, subsection 1, Code 2019, is amended
22to read as follows:
231. Except as permitted in this section, the licensee shall
24not permit no sports wagering or any form of wagering on
25gambling games.
26 Sec. 11. Section 99F.9, Code 2019, is amended by adding the
27following new subsection:
28 NEW SUBSECTION. 3A. a. For the purposes of this section,
29unless the context otherwise requires:
30(1) “Advance deposit sports wagering” means a method of
31sports wagering in which an eligible individual may, in an
32account established with a licensee under section 99F.7A,
33deposit moneys into the account and use the account balance to
34pay for sports wagering. Prior to January 1, 2021, an account
35must be established by an eligible individual in person with
-7-1a licensee.
2(2) “Advance deposit sports wagering operator” means an
3advance deposit sports wagering operator licensed by the
4commission who has entered into an agreement with a licensee
5under section 99F.7A to provide advance deposit sports
6wagering.
7(3) “Eligible individual” means an individual who is at
8least twenty-one years of age or older who is located within
9this state.
10b. The commission may authorize a licensee under section
1199F.7A to conduct advance deposit sports wagering. An advance
12deposit sports wager may be placed in person in the sports
13wagering area, or from any other location via a telephone-type
14device or any other electronic means. The commission may also
15issue an advance deposit sports wagering operator license to
16an entity who complies with this subsection and section 99F.6
17and may require the advance deposit sports wagering operator to
18conduct an audit consistent with the requirements of section
1999F.13.
20c. An unlicensed person taking or receiving sports wagers
21from residents of this state is guilty of a class “D” felony.
22 Sec. 12. Section 99F.9, subsection 4, Code 2019, is amended
23to read as follows:
244. A person under the age of twenty-one years shall not make
25or attempt to make a wager pursuant to subsection 3A or on an
26excursion gambling boat, gambling structure, or in a racetrack
27enclosure and shall not be allowed on the gaming floor of
28an excursion gambling boat or gambling structure or in the
29wagering area, as defined in section 99D.2, or on the gaming
30floor of a racetrack enclosure. However, a person eighteen
31years of age or older may be employed to work on the gaming
32floor of an excursion gambling boat or gambling structure or
33in the wagering area or on the gaming floor of a racetrack
34enclosure. A person who violates this subsection with respect
35to making or attempting to make a wager commits a scheduled
-8-1violation under section 805.8C, subsection 5, paragraph “a”.
2 Sec. 13. Section 99F.12, subsection 2, Code 2019, is amended
3to read as follows:
42. a. The licensee shall furnish to the commission reports
5and information as the commission may require with respect to
6the licensee’s activities.
7b. A licensee under section 97F.7A shall promptly report
8to the commission any criminal or disciplinary proceedings
9commenced against the licensee or its employees in connection
10with the licensee conducting sports wagering or advance
11deposit sports wagering, any abnormal wagering activity or
12patterns that may indicate a concern about the integrity of an
13authorized sporting event or events, and any other conduct with
14the potential to corrupt a wagering outcome of an authorized
15sporting event for purposes of financial gain, including but
16not limited to match fixing, and suspicious or illegal wagering
17activities, including the use of funds derived from illegal
18activity, wagers to conceal or launder funds derived from
19illegal activity, use of agents to place wagers, or use of
20false identification. The commission is authorized to share
21any information received pursuant to this paragraph with any
22law enforcement entity, sports team, sports governing body, or
23regulatory agency the commission deems appropriate.
24c. The gross receipts and adjusted gross receipts from
25gambling shall be separately handled and accounted for from
26all other moneys received from operation of an excursion
27gambling boat or from operation of a racetrack enclosure or
28gambling structure licensed to conduct gambling games. The
29commission may designate a representative to board a licensed
30excursion gambling boat or to enter a racetrack enclosure or
31gambling structure licensed to conduct gambling games. The
32representative shall have full access to all places within the
33enclosure of the boat, the gambling structure, or the racetrack
34enclosure and shall directly supervise the handling and
35accounting of all gross receipts and adjusted gross receipts
-9-1from gambling. The representative shall supervise and check
2the admissions. The compensation of a representative shall be
3fixed by the commission but shall be paid by the licensee.
4 Sec. 14. Section 99F.15, subsection 1, paragraph c, Code
52019, is amended to read as follows:
6c. Acting, or employing a person to act, as a shill or
7decoy to encourage participation in a gambling game or sports
8wagering.
9 Sec. 15. Section 99F.15, subsection 4, paragraphs d, h, and
10i, Code 2019, are amended to read as follows:
11d. Cheats at a gambling game, including but not limited to
12committing any act which alters the outcome of the game, or
13cheats at sports wagering.
14h. Claims, collects, or takes, or attempts to claim,
15collect, or take, money or anything of value in or from the
16gambling games or sports wagering, with intent to defraud,
17without having made a wager contingent on winning a gambling
18game or sports wager, or claims, collects, or takes an amount
19of money or thing of value of greater value than the amount
20won.
21i. Knowingly entices or induces a person to go to any place
22where a gambling game or sports wagering is being conducted or
23operated in violation of the provisions of this chapter with
24the intent that the other person plays or participates in that
25gambling game or sports wagering.
26 Sec. 16. Section 99F.20, subsection 1, Code 2019, is amended
27to read as follows:
281. A gaming regulatory revolving fund is created in
29the state treasury under the control of the department of
30inspections and appeals. The fund shall consist of fees
31collected and deposited into the fund paid by licensees
32pursuant to section 99D.14, subsection 2, paragraph “c”, fees
33paid by licensees pursuant to section 99E.5, subsection 4,
34paragraph “c”, regulatory fees paid by licensees pursuant
35to section 99F.4, subsection 27, and fees paid by licensees
-10-1pursuant to section 99F.10, subsection 4, paragraph “c”. All
2costs relating to racetrack, excursion boat, and gambling
3structure regulation shall be paid from the fund as provided in
4appropriations made for this purpose by the general assembly.
5The department shall provide quarterly reports to the
6department of management and the legislative services agency
7specifying revenues billed and collected and expenditures
8from the fund in a format as determined by the department
9of management in consultation with the legislative services
10agency.
11 Sec. 17. SPORTS WAGERING TAX — FEES — ALLOCATIONS. It is
12the intent of the general assembly to establish sports wagering
13licensee fees, a tax on sports wagering net receipts, and to
14provide for the allocation of revenues derived from the tax.
15DIVISION II
16FANTASY SPORTS CONTESTS
17 Sec. 18. NEW SECTION. 99E.1 Definitions.
18As used in this chapter, unless the context otherwise
19requires:
201. “Applicant” means an internet fantasy sports contest
21service provider applying for a license to conduct internet
22fantasy sports contests under this chapter.
232. “Commission” means the state racing and gaming commission
24created under section 99D.5.
253. “Fantasy sports contest” includes any fantasy or
26simulated game or contest in which the fantasy sports contest
27operator is not a participant in the game or contest, the value
28of all prizes and awards offered to winning participants are
29established and made known to the participants in advance
30of the contest, all winning outcomes reflect the relative
31knowledge and skill of the participants and shall be determined
32by accumulated statistical results of the performance of
33individuals, including athletes in the case of sporting events,
34and no winning outcome is based on the score, point spread, or
35any performance or performances of any single actual team or
-11-1solely on any single performance of an individual athlete or
2player in any single actual event.
34. “Internet fantasy sports contest” means a method of
4entering a fantasy sports contest by which a person may
5establish an account with an internet fantasy sports contest
6service provider, deposit money into the account, and use
7the account balance for entering a fantasy sports contest by
8utilizing electronic communication.
95. “Internet fantasy sports contest adjusted revenues” means,
10for each internet fantasy sports contest, the amount equal to
11the total charges and fees collected from all participants
12entering the internet fantasy sports contest less winnings paid
13to participants in the contest, multiplied by the location
14percentage.
156. “Internet fantasy sports contest player” means a person
16who is at least twenty-one years of age and participates in an
17internet fantasy sports contest operated by an internet fantasy
18sports contest service provider.
197. “Internet fantasy sports contest service provider” means
20a person, including a licensee under chapter 99D or 99F, who
21conducts an internet fantasy sports contest as authorized by
22this chapter.
238. “Location percentage” means, for each internet fantasy
24sports contest, the percentage, rounded to the nearest tenth of
25a percent, equal to the total charges and fees collected from
26all internet fantasy sports contest players located in this
27state divided by the total charges and fees collected from all
28participants in the internet fantasy sports contest.
29 Sec. 19. NEW SECTION. 99E.2 Internet fantasy sports
30contests authorized.
31The system of entering an internet fantasy sports contest as
32provided by this chapter is legal when conducted by a licensed
33internet fantasy sports contest service provider as provided in
34this chapter.
35 Sec. 20. NEW SECTION. 99E.3 Commission — powers.
-12- 11. The commission shall have full jurisdiction over and
2shall supervise internet fantasy sports contests and internet
3fantasy sports contest service providers as governed by this
4chapter.
52. The commission shall have the following powers and shall
6adopt rules pursuant to chapter 17A to administer and implement
7this chapter:
8a. To review and investigate applicants and determine the
9eligibility of applicants for a license to conduct internet
10fantasy sports contests, pursuant to rules adopted by the
11commission.
12b. To license and regulate internet fantasy sports contest
13service providers subject to the requirements of this chapter.
14c. To provide for the prevention of practices detrimental to
15the public and to provide for the best interests of internet
16fantasy sports contests.
17d. To investigate alleged violations of this chapter
18or the commission rules, orders, or final decisions and to
19take appropriate disciplinary action against a licensee, or
20institute appropriate legal action for enforcement, or both.
21Information gathered during an investigation is confidential
22during the pendency of the investigation.
23e. To assess fines and revoke or suspend licenses and to
24impose penalties for violations of this chapter.
25f. To take any other action as may be reasonable or
26appropriate to enforce this chapter and the commission rules.
27 Sec. 21. NEW SECTION. 99E.4 Requirements of applicant —
28fee.
291. An applicant for a license to conduct internet fantasy
30sports contests shall complete and sign an application on
31the form prescribed and published by the commission. The
32application shall include such information of the applicant
33that the commission deems necessary for purposes of issuing a
34license pursuant to this chapter.
352. An applicant shall submit fingerprints and information
-13-1that the commission deems necessary to the commission in the
2manner prescribed on the application forms. The fingerprints
3may be submitted to the federal bureau of investigation by
4the department of public safety through the state criminal
5history repository for the purpose of a national criminal
6history check. The results of a criminal history record check
7conducted pursuant to this subsection shall be considered a
8confidential record under chapter 22.
93. If the commission is not satisfied that it can determine
10if an applicant meets the requirements necessary for issuing
11a license pursuant to this chapter, the commission may
12request the department of public safety, division of criminal
13investigation, to investigate and obtain the information
14necessary for the commission to make a determination on whether
15to issue the applicant a license.
164. The commission shall charge the applicant a reasonable
17fee set by the department of public safety, division of
18criminal investigation, to defray those costs associated
19with the fingerprint and national criminal history check
20requirements of subsection 2 concerning the applicant. In
21addition, if the commission requests that an additional
22investigation be conducted by the division of criminal
23investigation as provided in subsection 3, the commission shall
24charge the applicant the reasonable costs of this additional
25investigation. These fees and costs are in addition to any
26other license fees and costs charged by the commission. The
27fees and costs may be retained by the department of public
28safety, division of criminal investigation, and shall be
29considered repayment receipts as defined in section 8.2.
305. The commission shall not grant a license to an applicant
31if there is substantial evidence that any of the following
32apply:
33a. A license issued to the applicant to conduct internet
34fantasy sports contests in another jurisdiction has been
35revoked, or a request for a license to conduct internet fantasy
-14-1sports contests in another jurisdiction has been denied, by
2an entity licensing persons to conduct such contests in that
3jurisdiction.
4b. The applicant has not demonstrated financial
5responsibility sufficient to adequately meet the requirements
6of the enterprise proposed.
7c. The applicant does not adequately disclose the true
8owners of the enterprise proposed.
9d. The applicant has knowingly made a false statement of a
10material fact to the commission.
11e. The applicant has failed to meet a monetary obligation in
12connection with conducting an internet fantasy sports contest.
13f. The applicant is not of good repute and moral character
14or the applicant has pled guilty to, or has been convicted of,
15a felony.
16g. Any member of the board of directors of the applicant is
17not twenty-one years of age or older.
186. A person who knowingly makes a false statement on the
19application is guilty of an aggravated misdemeanor.
207. For the purposes of this section, “applicant” includes
21each member of the board of directors of an internet fantasy
22sports contest service provider.
23 Sec. 22. NEW SECTION. 99E.5 Licenses — fees — terms and
24conditions — revocation.
251. If the commission is satisfied that the requirements
26of this chapter and its rules adopted under this chapter
27applicable to licensees have been or will be complied with, the
28commission shall issue a license for a period of not more than
29three years to an applicant to conduct internet fantasy sports
30contests in this state.
312. A licensed internet fantasy sports contest service
32provider shall use commercially reasonable methods to comply
33with all of the following requirements:
34a. Prevent employees of the internet fantasy sports contest
35service provider and relatives living in the same household of
-15-1such employees from competing in any internet fantasy sports
2contest on the service provider’s digital platform in which the
3service provider offers a cash prize to the public.
4b. Verify that an internet fantasy sports contest player
5located in this state is twenty-one years of age or older.
6c. Ensure that coaches, officials, players, contestants,
7or other individuals who participate in a game or contest
8that is the subject of an internet fantasy sports contest are
9restricted from entering an internet fantasy sports contest in
10which the outcome is determined, in whole or in part, by the
11accumulated statistical results of a team of individuals in the
12game or contest in which they participate.
13d. Allow individuals to restrict themselves from entering
14an internet fantasy sports contest conducted by the internet
15fantasy sports contest service provider upon request and take
16reasonable steps to prevent those individuals from entering
17any internet fantasy sports contests conducted by the internet
18fantasy sports contest service provider.
19e. Allow individuals to establish an account with an
20internet fantasy sports contest service provider by utilizing
21electronic communication.
22f. Disclose the number of entries a single internet fantasy
23sports contest player may submit to each internet fantasy
24sports contest and take reasonable steps to prevent players
25from submitting more than the allowable number of entries for
26that internet fantasy sports contest.
27g. Segregate internet fantasy sports contest player funds
28from operational funds or maintain a reserve in the form of
29cash, cash equivalents, an irrevocable letter of credit,
30payment processor reserves and receivables, a bond, or a
31combination thereof in the amount of the deposits in internet
32fantasy sports contest player accounts for the benefit and
33protection of internet fantasy sports contest player funds held
34in internet fantasy sports contest accounts by the internet
35fantasy sports contest service provider.
-16- 1h. Annually contract with a third party to perform an
2independent examination, consistent with the attestation
3standards established by the American institute of certified
4public accountants, to ensure compliance with all of the
5requirements in this chapter and submit the results of the
6independent audit to the commission. The audit shall be
7submitted to the commission by July 1 of the year following the
8year subject to the audit.
9i. Pay the tax as provided in section 99E.6.
103. The annual license fee to conduct internet fantasy
11sports contests shall be an amount as determined by the general
12assembly. Moneys collected by the commission from the annual
13license fee paid under this subsection shall be considered
14repayment receipts as defined in section 8.2.
154. a. A licensed internet fantasy sports contest service
16provider shall pay a regulatory fee to the commission. The
17regulatory fee shall be established by the commission based on
18the costs of administering and enforcing this chapter.
19b. A licensed internet fantasy sports contest service
20provider shall receive a credit for the amount of the
21regulatory fee paid by the provider against the taxes to be
22paid pursuant to section 99E.6.
23c. Notwithstanding section 8.60, the portion of the fee
24paid pursuant to paragraph “a” relating to the costs of the
25commission shall be deposited into the gaming regulatory
26revolving fund established in section 99F.20.
275. Upon a violation of any of the conditions listed in
28section 99E.4 or this section by a licensee, the commission
29shall immediately revoke the license.
30 Sec. 23. NEW SECTION. 99E.6 Internet fantasy sports contest
31tax — fees — intent.
32It is the intent of the general assembly to establish
33internet fantasy sports contest license fees, a tax on internet
34fantasy sports contest adjusted revenues, and to provide for
35the allocation of revenues derived from the tax.
-17-1 Sec. 24. NEW SECTION. 99E.7 Internet fantasy sports
2contests — age restrictions.
3A person under the age of twenty-one years shall not enter an
4internet fantasy sports contest. A person who violates this
5section with respect to entering an internet fantasy sports
6contest commits a scheduled violation under section 805.8C,
7subsection 12.
8 Sec. 25. NEW SECTION. 99E.8 Division of criminal
9investigation.
10If the commission has reasonable cause to believe that
11a licensee has committed a violation of this chapter, the
12commission may request the division of criminal investigation
13of the department of public safety to investigate to determine
14licensee compliance with the requirements of this chapter.
15The criminal investigation division and the commission shall
16cooperate to the maximum extent possible on an investigation.
17The commission shall assess the licensee the reasonable costs
18of the investigation conducted by the division of criminal
19investigation pursuant to a request by the commission under
20this section. The costs may be retained by the department of
21public safety, division of criminal investigation, and shall be
22considered repayment receipts as defined in section 8.2.
23 Sec. 26. NEW SECTION. 99E.9 Civil penalty.
24A person who willfully fails to comply with the requirements
25of this chapter and the rules adopted pursuant to chapter 17A
26under this chapter shall be liable for a civil penalty of not
27more than one thousand dollars for each violation, not to
28exceed ten thousand dollars for violations arising out of the
29same transaction or occurrence, which shall accrue to the state
30and may be recovered in a civil action.
31 Sec. 27. Section 99F.2, Code 2019, is amended to read as
32follows:
3399F.2 Scope of provisions.
34This chapter does not apply to the pari-mutuel system of
35wagering used or intended to be used in connection with the
-18-1horse-race or dog-race meetings as authorized under chapter
299D, internet fantasy sports contests authorized under chapter
399E, lottery or lotto games authorized under chapter 99G, or
4bingo or games of skill or chance authorized under chapter 99B.
5 Sec. 28. Section 232C.4, subsection 3, Code 2019, is amended
6to read as follows:
73. An emancipated minor shall remain subject to voting
8restrictions under chapter 48A, gambling restrictions under
9chapter 99B, 99D, 99F, 99G, or 725, internet fantasy sports
10contest restrictions under chapter 99E, alcohol restrictions
11under chapter 123, compulsory attendance requirements under
12chapter 299, and cigarette tobacco restrictions under chapter
13453A.
14 Sec. 29. Section 714B.10, subsection 1, Code 2019, is
15amended to read as follows:
161. Advertising by sponsors registered pursuant to chapter
17557B, licensed pursuant to chapter 99B, or regulated pursuant
18to chapter 99D, 99E, 99F, or 99G.
19 Sec. 30. Section 725.15, Code 2019, is amended to read as
20follows:
21725.15 Exceptions for legal gambling.
22Sections 725.5 through 725.10 and 725.12 do not apply to
23a game, activity, ticket, or device when lawfully possessed,
24used, conducted, or participated in pursuant to chapter 99B,
2599E, 99F, or 99G.
26 Sec. 31. Section 805.8C, Code 2019, is amended by adding the
27following new subsection:
28 NEW SUBSECTION. 12. Internet fantasy sports contest
29violations. For violations of legal age for entering an
30internet fantasy sports contest under section 99E.7, the
31scheduled fine is five hundred dollars. Failure to pay the
32fine by a person under the age of eighteen shall not result in
33the person being detained in a secure facility.
34DIVISION III
35GAMBLING REGULATION
-19-1 Sec. 32. Section 99F.6, Code 2019, is amended by adding the
2following new subsection:
3 NEW SUBSECTION. 9. The board of directors of a qualified
4sponsoring organization licensed to operate gambling games
5under this chapter shall include, as ex officio, nonvoting
6members of the board, a member of the county board of
7supervisors and a member of a city council for each county and
8city that has a licensed gambling games facility operated by
9the qualified sponsoring organization. The ex officio members
10shall serve terms of the same duration as voting members of the
11board.
12 Sec. 33. Section 99F.17A, Code 2019, is amended to read as
13follows:
1499F.17A Inspection of gambling Gambling games or implements
15of gambling — inspection — wagering requirements.
161. A licensed manufacturer or distributor of gambling games
17or implements of gambling shall deliver the gambling games or
18implements of gambling to a location approved by the commission
19for inspection and approval prior to being placed in operation.
20Gambling games or implements of gambling acquired pursuant
21to section 99F.17, subsection 6, shall be inspected and
22approved by the commission prior to being placed in operation.
23Gambling games or implements of gambling passing inspection
24and receiving approval may then be placed in operation on an
25excursion gambling boat.
262. A licensee that offers gambling games containing a wheel
27and ball, or virtual simulation, shall have at least one of
28these games that provide for a house edge under three percent
29for a single number wager.
30DIVISION IV
31EFFECTIVE DATE AND IMPLEMENTATION PROVISIONS
32 Sec. 34. EMERGENCY RULES. The state racing and gaming
33commission created under section 99D.5 may adopt emergency
34rules under section 17A.4, subsection 3, and section 17A.5,
35subsection 2, paragraph “b”, to implement the provisions of
-20-1this Act and the rules shall be effective immediately upon
2filing unless a later date is specified in the rules but in
3no event earlier than July 4, 2019. Any rules adopted in
4accordance with this section shall also be published as a
5notice of intended action as provided in section 17A.4.
6 Sec. 35. IMPLEMENTATION. The racing and gaming commission
7shall not implement this Act until the later of July 4, 2019,
8or the date the commission has adopted rules pursuant to
9chapter 17A providing for such implementation and such rules
10have become effective.
11 Sec. 36. EFFECTIVE DATE. This Act, being deemed of
12immediate importance, takes effect upon enactment.
13EXPLANATION
14The inclusion of this explanation does not constitute agreement with
15the explanation’s substance by the members of the general assembly.
16This bill authorizes wagering on sporting events and fantasy
17sports contests and amends provisions relating to gambling game
18regulation.
19SPORTS WAGERING. Division I of the bill authorizes wagering
20on certain sporting events and provides for the licensing and
21regulation of sports wagering.
22Code section 99F.1, concerning definitions, is amended. The
23bill defines “sports wagering” as acceptance of wagers on an
24authorized sporting event by any system of wagering authorized
25by the commission.
26The bill defines “authorized sporting event” as a
27professional sporting event, collegiate sporting event,
28international sporting event, professional motor race event, or
29any other minor league or amateur sporting event as authorized
30by the commission pursuant to the bill. The bill specifically
31excludes from the definition of “authorized sporting event” a
32race as defined in Code section 99D.2, a fantasy sports contest
33as defined in Code section 99E.1 as provided in the bill, or
34any athletic event or competition of an interscholastic sport
35as defined in Code section 9A.102. The bill further defines
-21-1each sporting event included in the definition of authorized
2sporting event and defines and excludes from the definition of
3“professional sporting event”, a minor league sporting event.
4“Sports wagering net receipts” is defined as gross receipts
5less winnings paid to wagerers on sports wagering. “Sports
6wagering area” is defined as an area, as designated by the
7commission, in which sports wagering is conducted.
8Code sections 99D.7(23) and 99F.4(22), concerning persons
9voluntarily excluded from wagering or gaming areas, are amended
10to include internet fantasy sports contests, advance deposit
11wagering, advance deposit sports wagering, and the sports
12wagering area.
13Code section 99F.3, concerning authorized wagering under
14Code chapter 99F, is amended to authorize sports wagering.
15Code section 99F.4, concerning racing and gaming commission
16powers, is amended to authorize the operation of sports
17wagering in a sports wagering area on an excursion gambling
18boat which is also licensed to serve alcoholic beverages,
19grants the racing and gaming commission the authority to adopt
20standards under which sports wagering is conducted including
21the scope and type of wagers allowed. The bill provides that
22revenue received by the commission from license fees for sports
23wagering shall be deposited in the general fund of the state
24and revenue received by the commission from regulatory fees
25shall be deposited into the gaming regulatory revolving fund
26established in Code section 99F.20.
27New Code section 99F.7A provides specific requirements
28relative to the licensing, operation, and fees applicable to
29sports wagering.
30The bill provides that the commission shall, upon payment
31of an initial license fee, issue a license to conduct sports
32wagering to a licensee authorized to conduct gambling games at
33a pari-mutuel racetrack enclosure or a licensee authorized to
34operate an excursion gambling boat or gambling structure. The
35bill provides for an annual renewal fee. The new Code section
-22-1also provides that a licensee shall include on the internet
2site or mobile application used by the licensee to conduct
3advance deposit sports wagering the statewide telephone number
4authorized by the Iowa department of public health to provide
5problem gambling information, extensive responsible gaming
6features, and a link to the internet site or mobile application
7used to conduct advance deposit wagering as authorized by Code
8section 99D.11. The new Code section also provides that the
9commission, upon application, may authorize sports wagering
10on minor league sporting events or amateur athletic contests
11or competitions. The new Code section also provides that a
12licensee issued a license to conduct sports wagering shall
13employ commercially reasonable steps to prohibit coaches,
14athletic trainers, officials, players, participants, or other
15persons employed in a position with direct involvement with
16such individuals from sports wagering under Code chapter 99F.
17Code section 99F.8, concerning licensee bonding
18requirements, is amended to make such requirements applicable
19to sports wagering.
20Code section 99F.9, concerning wagering on gambling games,
21is amended to allow the commission to authorize gambling game
22licensees under Code chapter 99F to conduct advance deposit
23sports wagering. The bill also allows a licensee under Code
24section 99F.7A to enter into an agreement with an advance
25deposit sports wagering operator licensed by the commission to
26provide advance deposit sports wagering for the licensee and
27allows the commission to require the advance deposit sports
28wagering operator to conduct an audit. The bill would allow
29for an advance deposit wager to be placed in person at a
30licensed facility authorized to conduct gambling games or from
31any other location by telephone or other electronic means.
32The bill defines “advance deposit sports wagering” as a form
33of wagering where an eligible individual creates an account
34with a licensee, deposits money into that account, and can use
35the balance within the account for sports wagering. Prior to
-23-1January 1, 2021, an account must be established in person with
2a licensee. The bill defines an “eligible individual” for
3purposes of advance deposit sports wagering as an individual
421 years of age or older who is located within this state. The
5bill provides that an unlicensed person taking sports wagers
6from Iowa residents is guilty of a class “D” felony, punishable
7by confinement for no more than five years and a fine of at
8least $750 but not more than $7,500. The Code section is also
9amended to provide that a person under the age of 21 shall
10not make or attempt to make a wager by advance deposit sports
11wagering.
12Code section 99F.12, concerning certain required reports
13and records of licensees, is amended to provide that a sports
14wagering licensee shall promptly report to the commission any
15criminal or disciplinary proceedings commenced against the
16licensee, any abnormal sports wagering activity, and any other
17conduct with the potential to corrupt a wagering outcome of an
18authorized sporting event. The bill authorizes the commission
19to share any information received with any law enforcement
20entity, sports team, sports governing body, or regulatory
21agency the commission deems appropriate.
22Code section 99F.15, concerning certain prohibited
23activities and penalties, is amended to provide that current
24prohibitions on cheating at a gambling game, claiming anything
25of value from a gambling game with intent to defraud, and
26knowingly enticing a person to go where a gambling game is
27conducted in violation of Code chapter 99F also applies to
28sports wagering.
29Code section 99F.20, concerning the gaming regulatory
30revolving fund, is amended to provide that regulatory fees
31by an internet fantasy sports contest service provider and
32by a licensee authorized to conduct sports wagering shall be
33deposited in the fund.
34The bill also provides that it is the intent of the general
35assembly to establish sports wagering license fees, a tax on
-24-1sports wagering net receipts, and to provide for the allocation
2of revenues derived from the tax.
3FANTASY SPORTS CONTESTS. Division II of the bill authorizes
4internet fantasy sports contests and provides for the
5licensing, regulation, and taxation of internet fantasy sports
6contests.
7New Code section 99E.1 provides for definitions. A “fantasy
8sports contest” is defined as any fantasy or simulated game
9or contest in which all prizes and awards offered to winning
10participants are established and made known in advance of the
11contest, all winning outcomes reflect the relative knowledge
12and skill of the participants and are determined predominantly
13by accumulated statistical results of the performance of
14individuals, and no winning outcome is based on the score, or
15performance of any single actual team or combination of such
16teams or solely on any single performance of an individual
17athlete in any single actual sporting or other event. An
18“internet fantasy sports contest” is defined as a method of
19entering a fantasy sports contest by establishing an account
20with an internet fantasy sports contest service provider. An
21“internet fantasy sports contest player” is defined as a person
22who is at least 21 years of age who participates in an internet
23fantasy sports contest. The bill also defines “internet
24fantasy sports contest adjusted revenues”, “internet fantasy
25sports contest service provider”, and “location percentage”.
26New Code section 99E.2 provides that the system of entering
27an internet fantasy sports contest is legal when conducted by a
28licensed internet fantasy sports contest service provider as
29provided in the new Code chapter.
30New Code section 99E.3 establishes the powers of the racing
31and gaming commission in relation to internet fantasy sports
32contests and internet fantasy sports contest service providers.
33Specifically, the Code section authorizes the commission
34to investigate and license internet fantasy sports contest
35service providers, assess fines and revoke or suspend licenses,
-25-1impose penalties for violations of the Code chapter, and take
2any other action to enforce the requirements of the new Code
3chapter.
4New Code section 99E.4 establishes the requirements for an
5applicant to be granted a license to conduct internet fantasy
6sports contests. The Code section allows the commission
7to charge the applicant a fee for the department of public
8safety, division of criminal investigation, to defray the
9costs associated with any investigation. The new Code
10section provides that a license shall not be issued if there
11is evidence that the applicant has failed to meet certain
12qualifying requirements. The Code section provides that a
13person who knowingly makes a false statement on the application
14is guilty of an aggravated misdemeanor.
15New Code section 99E.5 establishes the terms and conditions
16of licenses issued to conduct internet fantasy sports contests.
17The Code section provides that a license may be issued for
18a period of not more than three years and provides for an
19annual license fee. The Code section also provides for the
20payment of a regulatory fee to be set by the racing and gaming
21commission based on the costs of administering and enforcing
22the new Code chapter. The Code section further provides that
23each licensee shall receive a credit for the amount of the
24regulatory fee paid against taxes to be paid pursuant to the
25new Code chapter. The Code section provides that a licensed
26internet fantasy sports contest service provider shall use
27commercially reasonable methods to prevent any employees and
28certain family members from participating in internet fantasy
29sports contests on the service provider’s digital platform,
30verify that internet fantasy sports contest players located
31in this state are 21 or older, ensure that participants in
32a game or contest shall not be allowed to enter an internet
33fantasy sports contest involving that game or contest, permit
34individuals to establish an account with an internet fantasy
35sports contest service provider by electronic communication and
-26-1to restrict themselves from entering an internet fantasy sports
2contest, perform an independent audit, and pay the tax imposed
3by the new Code chapter.
4New Code section 99E.6 provides that it is the intent of
5the general assembly to establish internet fantasy sports
6contest license fees and to tax internet fantasy sports contest
7adjusted revenues. The bill defines, in new Code section
899E.1, “internet fantasy sports contest adjusted revenues” as
9the total of fees and charges collected, less winnings, in an
10internet fantasy sports contest multiplied by the percentage of
11fees and charges paid by participants who are located in this
12state in that contest.
13New Code section 99E.7 provides that a person under the
14age of 21 shall not enter an internet fantasy sports contest.
15A person who violates this Code section commits a scheduled
16violation under Code section 805.8C and is subject to a $500
17fine. Code section 805.8C is amended to reflect this violation
18and applicable fine.
19New Code section 99E.8 authorizes the division of criminal
20investigation of the department of public safety to investigate
21licensee compliance with the requirements of the new Code
22chapter.
23New Code section 99E.9 establishes civil penalties. The
24new Code section provides that a person who willfully fails to
25comply with the requirements of this new Code chapter shall be
26liable for a civil penalty of not more than $1,000 for each
27violation, not to exceed $10,000 for violations arising out of
28the same transaction or occurrence.
29The bill also makes changes to Code sections 99F.2, 232C.4,
30714B.10, and 725.15 to provide that provisions in those Code
31sections that list some or all Code chapters that govern lawful
32gambling also lists the new Code chapter provided in this
33division of the bill.
34GAMBLING REGULATION. Code section 99F.6 is amended to
35provide that a qualified sponsoring organization licensed
-27-1to operate gambling games shall include, as ex officio,
2nonvoting members of the board, a member of the county board of
3supervisors and a member of a city council for each county and
4city that has a licensed gambling games facility operated by
5the qualified sponsoring organization.
6Code section 99F.17A, concerning gambling games or
7implements of gambling, is amended to provide that if a
8licensee offers gambling games containing a wheel and ball, or
9virtual simulation, at least one of these games shall provide
10for a house edge under 3 percent for a single number wager.
11EFFECTIVE DATE AND IMPLEMENTATION PROVISIONS. The bill
12takes effect upon enactment. However, the bill authorizes
13the racing and gaming commission to adopt emergency rules to
14implement the bill and provides that the racing and gaming
15commission shall not implement the bill until the later of July
164, 2019, or the date the commission has adopted rules pursuant
17to Code chapter 17A providing for such implementation and such
18rules have become effective.
-28-ec/rn
2providing for sports wagering and fantasy sports contests,
3providing for taxes and fees, making penalties applicable,
4and including implementation and effective date provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2SPORTS WAGERING
3 Section 1. Section 99D.7, subsection 23, Code 2019, is
4amended to read as follows:
523. To establish a process to allow a person to be
6voluntarily excluded from advance deposit wagering as defined
7in section 99D.11, from an internet fantasy sports contest
8as defined in section 99E.1, from advance deposit sports
9wagering as defined in section 99F.9, from the wagering area
10of a racetrack enclosure and from the gaming floor and sports
11wagering area, as defined in section 99F.1, of all other
12licensed facilities under this chapter and chapter 99F as
13provided in this subsection. The process shall provide that
14an initial request by a person to be voluntarily excluded
15shall be for a period of five years or life and any subsequent
16request following any five-year period shall be for a period
17of five years or life. The process established shall require
18that licensees be provided electronic access to names and
19social security numbers of persons voluntarily excluded
20through a secured interactive internet site maintained by
21the commission and information regarding persons voluntarily
22excluded shall be disseminated to all licensees under this
23chapter and chapter 99F. The names, social security numbers,
24and information regarding persons voluntarily excluded shall
25be kept confidential unless otherwise ordered by a court or by
26another person duly authorized to release such information.
27The process established shall also require a person requesting
28to be voluntarily excluded be provided information compiled
29by the Iowa department of public health on gambling treatment
30options. The state and any licensee under this chapter or
31chapter 99F shall not be liable to any person for any claim
32which may arise from this process. In addition to any other
33penalty provided by law, any money or thing of value that has
34been obtained by, or is owed to, a voluntarily excluded person
35as a result of wagers made by the person after the person has
-1-1been voluntarily excluded shall be forfeited by the person and
2shall be credited to the general fund of the state.
3 Sec. 2. Section 99F.1, subsection 1, Code 2019, is amended
4to read as follows:
51. “Adjusted gross receipts” means the gross receipts less
6winnings paid to wagerers on gambling games. However, “adjusted
7gross receipts” does not include promotional play receipts
8received after the date in any fiscal year that the commission
9determines that the wagering tax imposed pursuant to section
1099F.11 on all licensees in that fiscal year on promotional
11play receipts exceeds twenty-five million eight hundred twenty
12thousand dollars.
13 Sec. 3. Section 99F.1, Code 2019, is amended by adding the
14following new subsections:
15 NEW SUBSECTION. 2A. “Authorized sporting event” means
16a professional sporting event, collegiate sporting event,
17international sporting event, professional motor race event, or
18any other minor league or amateur sporting event as authorized
19by the commission pursuant to section 99F.7A, subsection
203. “Authorized sporting event” does not include a race as
21defined in section 99D.2, a fantasy sports contest as defined
22in section 99E.1, or any athletic event or competition of an
23interscholastic sport as defined in section 9A.102.
24 NEW SUBSECTION. 4A. “Collegiate sporting event” means an
25athletic event or competition of an intercollegiate sport as
26defined in section 9A.102.
27 NEW SUBSECTION. 16A. “International sporting event” means
28an international team or individual sporting event governed by
29an international sports federation or sports governing body,
30including sporting events governed by the international olympic
31committee and the international federation of association
32football.
33 NEW SUBSECTION. 18A. “Minor league sporting event” means
34a sporting event conducted by a sports league which is not
35regarded as the premier league in the sport as determined by
-2-1the commission.
2 NEW SUBSECTION. 19A. “Professional sporting event” means an
3event, excluding a minor league sporting event, at which two
4or more persons participate in sports or athletic events and
5receive compensation in excess of actual expenses for their
6participation in such event.
7 NEW SUBSECTION. 23. “Sports wagering” means the acceptance
8of wagers on an authorized sporting event by any system of
9wagering as authorized by the commission.
10 NEW SUBSECTION. 24. “Sports wagering area” means an area,
11as designated by the commission, in which sports wagering is
12conducted.
13 NEW SUBSECTION. 25. “Sports wagering net receipts” means
14the gross receipts less winnings paid to wagerers on sports
15wagering.
16 Sec. 4. Section 99F.1, subsection 17, Code 2019, is amended
17to read as follows:
1817. “Licensee” means any person licensed under section 99F.7
19or 99F.7A.
20 Sec. 5. Section 99F.3, Code 2019, is amended to read as
21follows:
2299F.3 Gambling games and sports wagering authorized.
23The system of wagering on a gambling game and sports wagering
24 as provided by this chapter is legal, when conducted on an
25excursion gambling boat, gambling structure, or racetrack
26enclosure at authorized locations by a licensee as provided in
27this chapter.
28 Sec. 6. Section 99F.4, subsections 3 and 22, Code 2019, are
29amended to read as follows:
303. To adopt standards under which all excursion gambling
31boat operations shall be held and standards for the facilities
32within which the gambling operations are to be held. The
33commission may authorize the operation of gambling games on
34an excursion gambling boat and sports wagering in a sports
35wagering area which is also licensed to sell or serve alcoholic
-3-1beverages, wine, or beer as defined in section 123.3.
222. To establish a process to allow a person to be
3voluntarily excluded from advance deposit wagering as defined
4in section 99D.11, from an internet fantasy sports contest as
5defined in section 99E.1, from advance deposit sports wagering
6as defined in section 99F.9, from the gaming floor and sports
7wagering area of an excursion gambling boat, from the wagering
8area, as defined in section 99D.2, and from the gaming floor
9and sports wagering area of all other licensed facilities under
10this chapter and chapter 99D as provided in this subsection.
11The process shall provide that an initial request by a person
12to be voluntarily excluded shall be for a period of five years
13or life and any subsequent request following any five-year
14period shall be for a period of five years or life. The
15process established shall require that licensees be provided
16electronic access to names and social security numbers of
17persons voluntarily excluded through a secured interactive
18internet site maintained by the commission and information
19regarding persons voluntarily excluded shall be disseminated
20to all licensees under this chapter and chapter 99D. The
21names, social security numbers, and information regarding
22persons voluntarily excluded shall be kept confidential
23unless otherwise ordered by a court or by another person
24duly authorized to release such information. The process
25established shall also require a person requesting to be
26voluntarily excluded be provided information compiled by the
27Iowa department of public health on gambling treatment options.
28The state and any licensee under this chapter or chapter 99D
29shall not be liable to any person for any claim which may arise
30from this process. In addition to any other penalty provided
31by law, any money or thing of value that has been obtained by,
32or is owed to, a voluntarily excluded person as a result of
33wagers made by the person after the person has been voluntarily
34excluded shall be forfeited by the person and shall be credited
35to the general fund of the state.
-4-1 Sec. 7. Section 99F.4, Code 2019, is amended by adding the
2following new subsection:
3 NEW SUBSECTION. 27. To adopt standards under which all
4sports wagering is conducted, including the scope and type of
5wagers allowed, to identify occupations within sports wagering
6which require licensing, and to adopt standards for licensing
7and background qualifications for occupations including
8establishing fees for the occupational license. All revenue
9received by the commission under this chapter from license fees
10shall be deposited in the general fund of the state and shall
11be subject to the requirements of section 8.60. All revenue
12received by the commission from regulatory fees shall be
13deposited into the gaming regulatory revolving fund established
14in section 99F.20.
15 Sec. 8. NEW SECTION. 99F.7A Sports wagering — license —
16terms and conditions — fees.
171. The commission shall, upon payment of an initial license
18fee of an amount as determined by the general assembly and
19submission of an application to the commission consistent with
20the requirements of section 99F.6, issue a license to conduct
21sports wagering to a licensee authorized to conduct gambling
22games at a pari-mutuel racetrack enclosure or a licensee
23authorized to operate an excursion gambling boat or gambling
24structure, subject to the requirements of this chapter. The
25annual renewal fee for a license to conduct or operate sports
26wagering shall be an amount as determined by the general
27assembly.
282. A licensee under this section shall include on the
29internet site or mobile application used by the licensee to
30conduct advance deposit sports wagering as authorized in
31section 99F.9 the statewide telephone number authorized by the
32Iowa department of public health to provide problem gambling
33information, extensive responsible gaming features in addition
34to those described in section 99F.4, subsection 22, and a
35link to the internet site or mobile application used by an
-5-1advance deposit wagering operator to conduct advance deposit
2wagering pursuant to section 99D.11. In addition, a licensee
3may enter into operating agreements with one or two entities to
4have up to a total of two individually branded internet sites
5to conduct advance deposit sports wagering for the licensee,
6unless one additional operating agreement or individually
7branded internet site is authorized by the commission.
83. Except as provided by this subsection, sports wagering
9on minor league sporting events or amateur athletic contests
10or competitions is prohibited. However, the commission shall
11have the authority, in its sole discretion and upon application
12to the commission in a manner as provided by the commission,
13to authorize sports wagering on minor league sporting events
14or amateur athletic contests or competitions subject to the
15requirements of this subsection. The application to the
16commission shall specify what minor league sporting events
17or amateur athletic contests or competitions the applicant
18seeks commission authorization for sports wagering. In
19determining whether to authorize sports wagering pursuant to
20the requirements of this subsection, the commission shall, at a
21minimum, consider whether allowing wagers on the results of the
22sporting events that are the subject of the application will
23not create a significant risk for manipulation and corruption
24of the sporting events and will provide a quality and fair
25wagering experience for bettors.
264. A licensee issued a license to conduct sports wagering
27under this section shall employ commercially reasonable steps
28to prohibit coaches, athletic trainers, officials, players, or
29other individuals who participate in an authorized sporting
30event that is the subject of sports wagering from sports
31wagering under this chapter. In addition, a licensee shall
32employ commercially reasonable steps to prohibit persons
33who are employed in a position with direct involvement with
34coaches, players, athletic trainers, officials, players, or
35participants in an authorized sporting event that is the
-6-1subject of sports wagering from sports wagering under this
2chapter.
3 Sec. 9. Section 99F.8, Code 2019, is amended to read as
4follows:
599F.8 Bond of licensee.
6A licensee licensed under section 99F.7 shall post a bond
7to the state of Iowa before the license is issued in a sum
8as the commission shall fix, with sureties to be approved by
9the commission. The bond shall be used to guarantee that the
10licensee faithfully makes the payments, keeps its books and
11records and makes reports, and conducts its gambling games and
12sports wagering in conformity with this chapter and the rules
13adopted by the commission. The bond shall not be canceled by
14a surety on less than thirty days’ notice in writing to the
15commission. If a bond is canceled and the licensee fails to
16file a new bond with the commission in the required amount on
17or before the effective date of cancellation, the licensee’s
18license shall be revoked. The total and aggregate liability
19of the surety on the bond is limited to the amount specified in
20the bond.
21 Sec. 10. Section 99F.9, subsection 1, Code 2019, is amended
22to read as follows:
231. Except as permitted in this section, the licensee shall
24not permit no sports wagering or any form of wagering on
25gambling games.
26 Sec. 11. Section 99F.9, Code 2019, is amended by adding the
27following new subsection:
28 NEW SUBSECTION. 3A. a. For the purposes of this section,
29unless the context otherwise requires:
30(1) “Advance deposit sports wagering” means a method of
31sports wagering in which an eligible individual may, in an
32account established with a licensee under section 99F.7A,
33deposit moneys into the account and use the account balance to
34pay for sports wagering. Prior to January 1, 2021, an account
35must be established by an eligible individual in person with
-7-1a licensee.
2(2) “Advance deposit sports wagering operator” means an
3advance deposit sports wagering operator licensed by the
4commission who has entered into an agreement with a licensee
5under section 99F.7A to provide advance deposit sports
6wagering.
7(3) “Eligible individual” means an individual who is at
8least twenty-one years of age or older who is located within
9this state.
10b. The commission may authorize a licensee under section
1199F.7A to conduct advance deposit sports wagering. An advance
12deposit sports wager may be placed in person in the sports
13wagering area, or from any other location via a telephone-type
14device or any other electronic means. The commission may also
15issue an advance deposit sports wagering operator license to
16an entity who complies with this subsection and section 99F.6
17and may require the advance deposit sports wagering operator to
18conduct an audit consistent with the requirements of section
1999F.13.
20c. An unlicensed person taking or receiving sports wagers
21from residents of this state is guilty of a class “D” felony.
22 Sec. 12. Section 99F.9, subsection 4, Code 2019, is amended
23to read as follows:
244. A person under the age of twenty-one years shall not make
25or attempt to make a wager pursuant to subsection 3A or on an
26excursion gambling boat, gambling structure, or in a racetrack
27enclosure and shall not be allowed on the gaming floor of
28an excursion gambling boat or gambling structure or in the
29wagering area, as defined in section 99D.2, or on the gaming
30floor of a racetrack enclosure. However, a person eighteen
31years of age or older may be employed to work on the gaming
32floor of an excursion gambling boat or gambling structure or
33in the wagering area or on the gaming floor of a racetrack
34enclosure. A person who violates this subsection with respect
35to making or attempting to make a wager commits a scheduled
-8-1violation under section 805.8C, subsection 5, paragraph “a”.
2 Sec. 13. Section 99F.12, subsection 2, Code 2019, is amended
3to read as follows:
42. a. The licensee shall furnish to the commission reports
5and information as the commission may require with respect to
6the licensee’s activities.
7b. A licensee under section 97F.7A shall promptly report
8to the commission any criminal or disciplinary proceedings
9commenced against the licensee or its employees in connection
10with the licensee conducting sports wagering or advance
11deposit sports wagering, any abnormal wagering activity or
12patterns that may indicate a concern about the integrity of an
13authorized sporting event or events, and any other conduct with
14the potential to corrupt a wagering outcome of an authorized
15sporting event for purposes of financial gain, including but
16not limited to match fixing, and suspicious or illegal wagering
17activities, including the use of funds derived from illegal
18activity, wagers to conceal or launder funds derived from
19illegal activity, use of agents to place wagers, or use of
20false identification. The commission is authorized to share
21any information received pursuant to this paragraph with any
22law enforcement entity, sports team, sports governing body, or
23regulatory agency the commission deems appropriate.
24c. The gross receipts and adjusted gross receipts from
25gambling shall be separately handled and accounted for from
26all other moneys received from operation of an excursion
27gambling boat or from operation of a racetrack enclosure or
28gambling structure licensed to conduct gambling games. The
29commission may designate a representative to board a licensed
30excursion gambling boat or to enter a racetrack enclosure or
31gambling structure licensed to conduct gambling games. The
32representative shall have full access to all places within the
33enclosure of the boat, the gambling structure, or the racetrack
34enclosure and shall directly supervise the handling and
35accounting of all gross receipts and adjusted gross receipts
-9-1from gambling. The representative shall supervise and check
2the admissions. The compensation of a representative shall be
3fixed by the commission but shall be paid by the licensee.
4 Sec. 14. Section 99F.15, subsection 1, paragraph c, Code
52019, is amended to read as follows:
6c. Acting, or employing a person to act, as a shill or
7decoy to encourage participation in a gambling game or sports
8wagering.
9 Sec. 15. Section 99F.15, subsection 4, paragraphs d, h, and
10i, Code 2019, are amended to read as follows:
11d. Cheats at a gambling game, including but not limited to
12committing any act which alters the outcome of the game, or
13cheats at sports wagering.
14h. Claims, collects, or takes, or attempts to claim,
15collect, or take, money or anything of value in or from the
16gambling games or sports wagering, with intent to defraud,
17without having made a wager contingent on winning a gambling
18game or sports wager, or claims, collects, or takes an amount
19of money or thing of value of greater value than the amount
20won.
21i. Knowingly entices or induces a person to go to any place
22where a gambling game or sports wagering is being conducted or
23operated in violation of the provisions of this chapter with
24the intent that the other person plays or participates in that
25gambling game or sports wagering.
26 Sec. 16. Section 99F.20, subsection 1, Code 2019, is amended
27to read as follows:
281. A gaming regulatory revolving fund is created in
29the state treasury under the control of the department of
30inspections and appeals. The fund shall consist of fees
31collected and deposited into the fund paid by licensees
32pursuant to section 99D.14, subsection 2, paragraph “c”, fees
33paid by licensees pursuant to section 99E.5, subsection 4,
34paragraph “c”, regulatory fees paid by licensees pursuant
35to section 99F.4, subsection 27, and fees paid by licensees
-10-1pursuant to section 99F.10, subsection 4, paragraph “c”. All
2costs relating to racetrack, excursion boat, and gambling
3structure regulation shall be paid from the fund as provided in
4appropriations made for this purpose by the general assembly.
5The department shall provide quarterly reports to the
6department of management and the legislative services agency
7specifying revenues billed and collected and expenditures
8from the fund in a format as determined by the department
9of management in consultation with the legislative services
10agency.
11 Sec. 17. SPORTS WAGERING TAX — FEES — ALLOCATIONS. It is
12the intent of the general assembly to establish sports wagering
13licensee fees, a tax on sports wagering net receipts, and to
14provide for the allocation of revenues derived from the tax.
15DIVISION II
16FANTASY SPORTS CONTESTS
17 Sec. 18. NEW SECTION. 99E.1 Definitions.
18As used in this chapter, unless the context otherwise
19requires:
201. “Applicant” means an internet fantasy sports contest
21service provider applying for a license to conduct internet
22fantasy sports contests under this chapter.
232. “Commission” means the state racing and gaming commission
24created under section 99D.5.
253. “Fantasy sports contest” includes any fantasy or
26simulated game or contest in which the fantasy sports contest
27operator is not a participant in the game or contest, the value
28of all prizes and awards offered to winning participants are
29established and made known to the participants in advance
30of the contest, all winning outcomes reflect the relative
31knowledge and skill of the participants and shall be determined
32by accumulated statistical results of the performance of
33individuals, including athletes in the case of sporting events,
34and no winning outcome is based on the score, point spread, or
35any performance or performances of any single actual team or
-11-1solely on any single performance of an individual athlete or
2player in any single actual event.
34. “Internet fantasy sports contest” means a method of
4entering a fantasy sports contest by which a person may
5establish an account with an internet fantasy sports contest
6service provider, deposit money into the account, and use
7the account balance for entering a fantasy sports contest by
8utilizing electronic communication.
95. “Internet fantasy sports contest adjusted revenues” means,
10for each internet fantasy sports contest, the amount equal to
11the total charges and fees collected from all participants
12entering the internet fantasy sports contest less winnings paid
13to participants in the contest, multiplied by the location
14percentage.
156. “Internet fantasy sports contest player” means a person
16who is at least twenty-one years of age and participates in an
17internet fantasy sports contest operated by an internet fantasy
18sports contest service provider.
197. “Internet fantasy sports contest service provider” means
20a person, including a licensee under chapter 99D or 99F, who
21conducts an internet fantasy sports contest as authorized by
22this chapter.
238. “Location percentage” means, for each internet fantasy
24sports contest, the percentage, rounded to the nearest tenth of
25a percent, equal to the total charges and fees collected from
26all internet fantasy sports contest players located in this
27state divided by the total charges and fees collected from all
28participants in the internet fantasy sports contest.
29 Sec. 19. NEW SECTION. 99E.2 Internet fantasy sports
30contests authorized.
31The system of entering an internet fantasy sports contest as
32provided by this chapter is legal when conducted by a licensed
33internet fantasy sports contest service provider as provided in
34this chapter.
35 Sec. 20. NEW SECTION. 99E.3 Commission — powers.
-12- 11. The commission shall have full jurisdiction over and
2shall supervise internet fantasy sports contests and internet
3fantasy sports contest service providers as governed by this
4chapter.
52. The commission shall have the following powers and shall
6adopt rules pursuant to chapter 17A to administer and implement
7this chapter:
8a. To review and investigate applicants and determine the
9eligibility of applicants for a license to conduct internet
10fantasy sports contests, pursuant to rules adopted by the
11commission.
12b. To license and regulate internet fantasy sports contest
13service providers subject to the requirements of this chapter.
14c. To provide for the prevention of practices detrimental to
15the public and to provide for the best interests of internet
16fantasy sports contests.
17d. To investigate alleged violations of this chapter
18or the commission rules, orders, or final decisions and to
19take appropriate disciplinary action against a licensee, or
20institute appropriate legal action for enforcement, or both.
21Information gathered during an investigation is confidential
22during the pendency of the investigation.
23e. To assess fines and revoke or suspend licenses and to
24impose penalties for violations of this chapter.
25f. To take any other action as may be reasonable or
26appropriate to enforce this chapter and the commission rules.
27 Sec. 21. NEW SECTION. 99E.4 Requirements of applicant —
28fee.
291. An applicant for a license to conduct internet fantasy
30sports contests shall complete and sign an application on
31the form prescribed and published by the commission. The
32application shall include such information of the applicant
33that the commission deems necessary for purposes of issuing a
34license pursuant to this chapter.
352. An applicant shall submit fingerprints and information
-13-1that the commission deems necessary to the commission in the
2manner prescribed on the application forms. The fingerprints
3may be submitted to the federal bureau of investigation by
4the department of public safety through the state criminal
5history repository for the purpose of a national criminal
6history check. The results of a criminal history record check
7conducted pursuant to this subsection shall be considered a
8confidential record under chapter 22.
93. If the commission is not satisfied that it can determine
10if an applicant meets the requirements necessary for issuing
11a license pursuant to this chapter, the commission may
12request the department of public safety, division of criminal
13investigation, to investigate and obtain the information
14necessary for the commission to make a determination on whether
15to issue the applicant a license.
164. The commission shall charge the applicant a reasonable
17fee set by the department of public safety, division of
18criminal investigation, to defray those costs associated
19with the fingerprint and national criminal history check
20requirements of subsection 2 concerning the applicant. In
21addition, if the commission requests that an additional
22investigation be conducted by the division of criminal
23investigation as provided in subsection 3, the commission shall
24charge the applicant the reasonable costs of this additional
25investigation. These fees and costs are in addition to any
26other license fees and costs charged by the commission. The
27fees and costs may be retained by the department of public
28safety, division of criminal investigation, and shall be
29considered repayment receipts as defined in section 8.2.
305. The commission shall not grant a license to an applicant
31if there is substantial evidence that any of the following
32apply:
33a. A license issued to the applicant to conduct internet
34fantasy sports contests in another jurisdiction has been
35revoked, or a request for a license to conduct internet fantasy
-14-1sports contests in another jurisdiction has been denied, by
2an entity licensing persons to conduct such contests in that
3jurisdiction.
4b. The applicant has not demonstrated financial
5responsibility sufficient to adequately meet the requirements
6of the enterprise proposed.
7c. The applicant does not adequately disclose the true
8owners of the enterprise proposed.
9d. The applicant has knowingly made a false statement of a
10material fact to the commission.
11e. The applicant has failed to meet a monetary obligation in
12connection with conducting an internet fantasy sports contest.
13f. The applicant is not of good repute and moral character
14or the applicant has pled guilty to, or has been convicted of,
15a felony.
16g. Any member of the board of directors of the applicant is
17not twenty-one years of age or older.
186. A person who knowingly makes a false statement on the
19application is guilty of an aggravated misdemeanor.
207. For the purposes of this section, “applicant” includes
21each member of the board of directors of an internet fantasy
22sports contest service provider.
23 Sec. 22. NEW SECTION. 99E.5 Licenses — fees — terms and
24conditions — revocation.
251. If the commission is satisfied that the requirements
26of this chapter and its rules adopted under this chapter
27applicable to licensees have been or will be complied with, the
28commission shall issue a license for a period of not more than
29three years to an applicant to conduct internet fantasy sports
30contests in this state.
312. A licensed internet fantasy sports contest service
32provider shall use commercially reasonable methods to comply
33with all of the following requirements:
34a. Prevent employees of the internet fantasy sports contest
35service provider and relatives living in the same household of
-15-1such employees from competing in any internet fantasy sports
2contest on the service provider’s digital platform in which the
3service provider offers a cash prize to the public.
4b. Verify that an internet fantasy sports contest player
5located in this state is twenty-one years of age or older.
6c. Ensure that coaches, officials, players, contestants,
7or other individuals who participate in a game or contest
8that is the subject of an internet fantasy sports contest are
9restricted from entering an internet fantasy sports contest in
10which the outcome is determined, in whole or in part, by the
11accumulated statistical results of a team of individuals in the
12game or contest in which they participate.
13d. Allow individuals to restrict themselves from entering
14an internet fantasy sports contest conducted by the internet
15fantasy sports contest service provider upon request and take
16reasonable steps to prevent those individuals from entering
17any internet fantasy sports contests conducted by the internet
18fantasy sports contest service provider.
19e. Allow individuals to establish an account with an
20internet fantasy sports contest service provider by utilizing
21electronic communication.
22f. Disclose the number of entries a single internet fantasy
23sports contest player may submit to each internet fantasy
24sports contest and take reasonable steps to prevent players
25from submitting more than the allowable number of entries for
26that internet fantasy sports contest.
27g. Segregate internet fantasy sports contest player funds
28from operational funds or maintain a reserve in the form of
29cash, cash equivalents, an irrevocable letter of credit,
30payment processor reserves and receivables, a bond, or a
31combination thereof in the amount of the deposits in internet
32fantasy sports contest player accounts for the benefit and
33protection of internet fantasy sports contest player funds held
34in internet fantasy sports contest accounts by the internet
35fantasy sports contest service provider.
-16- 1h. Annually contract with a third party to perform an
2independent examination, consistent with the attestation
3standards established by the American institute of certified
4public accountants, to ensure compliance with all of the
5requirements in this chapter and submit the results of the
6independent audit to the commission. The audit shall be
7submitted to the commission by July 1 of the year following the
8year subject to the audit.
9i. Pay the tax as provided in section 99E.6.
103. The annual license fee to conduct internet fantasy
11sports contests shall be an amount as determined by the general
12assembly. Moneys collected by the commission from the annual
13license fee paid under this subsection shall be considered
14repayment receipts as defined in section 8.2.
154. a. A licensed internet fantasy sports contest service
16provider shall pay a regulatory fee to the commission. The
17regulatory fee shall be established by the commission based on
18the costs of administering and enforcing this chapter.
19b. A licensed internet fantasy sports contest service
20provider shall receive a credit for the amount of the
21regulatory fee paid by the provider against the taxes to be
22paid pursuant to section 99E.6.
23c. Notwithstanding section 8.60, the portion of the fee
24paid pursuant to paragraph “a” relating to the costs of the
25commission shall be deposited into the gaming regulatory
26revolving fund established in section 99F.20.
275. Upon a violation of any of the conditions listed in
28section 99E.4 or this section by a licensee, the commission
29shall immediately revoke the license.
30 Sec. 23. NEW SECTION. 99E.6 Internet fantasy sports contest
31tax — fees — intent.
32It is the intent of the general assembly to establish
33internet fantasy sports contest license fees, a tax on internet
34fantasy sports contest adjusted revenues, and to provide for
35the allocation of revenues derived from the tax.
-17-1 Sec. 24. NEW SECTION. 99E.7 Internet fantasy sports
2contests — age restrictions.
3A person under the age of twenty-one years shall not enter an
4internet fantasy sports contest. A person who violates this
5section with respect to entering an internet fantasy sports
6contest commits a scheduled violation under section 805.8C,
7subsection 12.
8 Sec. 25. NEW SECTION. 99E.8 Division of criminal
9investigation.
10If the commission has reasonable cause to believe that
11a licensee has committed a violation of this chapter, the
12commission may request the division of criminal investigation
13of the department of public safety to investigate to determine
14licensee compliance with the requirements of this chapter.
15The criminal investigation division and the commission shall
16cooperate to the maximum extent possible on an investigation.
17The commission shall assess the licensee the reasonable costs
18of the investigation conducted by the division of criminal
19investigation pursuant to a request by the commission under
20this section. The costs may be retained by the department of
21public safety, division of criminal investigation, and shall be
22considered repayment receipts as defined in section 8.2.
23 Sec. 26. NEW SECTION. 99E.9 Civil penalty.
24A person who willfully fails to comply with the requirements
25of this chapter and the rules adopted pursuant to chapter 17A
26under this chapter shall be liable for a civil penalty of not
27more than one thousand dollars for each violation, not to
28exceed ten thousand dollars for violations arising out of the
29same transaction or occurrence, which shall accrue to the state
30and may be recovered in a civil action.
31 Sec. 27. Section 99F.2, Code 2019, is amended to read as
32follows:
3399F.2 Scope of provisions.
34This chapter does not apply to the pari-mutuel system of
35wagering used or intended to be used in connection with the
-18-1horse-race or dog-race meetings as authorized under chapter
299D, internet fantasy sports contests authorized under chapter
399E, lottery or lotto games authorized under chapter 99G, or
4bingo or games of skill or chance authorized under chapter 99B.
5 Sec. 28. Section 232C.4, subsection 3, Code 2019, is amended
6to read as follows:
73. An emancipated minor shall remain subject to voting
8restrictions under chapter 48A, gambling restrictions under
9chapter 99B, 99D, 99F, 99G, or 725, internet fantasy sports
10contest restrictions under chapter 99E, alcohol restrictions
11under chapter 123, compulsory attendance requirements under
12chapter 299, and cigarette tobacco restrictions under chapter
13453A.
14 Sec. 29. Section 714B.10, subsection 1, Code 2019, is
15amended to read as follows:
161. Advertising by sponsors registered pursuant to chapter
17557B, licensed pursuant to chapter 99B, or regulated pursuant
18to chapter 99D, 99E, 99F, or 99G.
19 Sec. 30. Section 725.15, Code 2019, is amended to read as
20follows:
21725.15 Exceptions for legal gambling.
22Sections 725.5 through 725.10 and 725.12 do not apply to
23a game, activity, ticket, or device when lawfully possessed,
24used, conducted, or participated in pursuant to chapter 99B,
2599E, 99F, or 99G.
26 Sec. 31. Section 805.8C, Code 2019, is amended by adding the
27following new subsection:
28 NEW SUBSECTION. 12. Internet fantasy sports contest
29violations. For violations of legal age for entering an
30internet fantasy sports contest under section 99E.7, the
31scheduled fine is five hundred dollars. Failure to pay the
32fine by a person under the age of eighteen shall not result in
33the person being detained in a secure facility.
34DIVISION III
35GAMBLING REGULATION
-19-1 Sec. 32. Section 99F.6, Code 2019, is amended by adding the
2following new subsection:
3 NEW SUBSECTION. 9. The board of directors of a qualified
4sponsoring organization licensed to operate gambling games
5under this chapter shall include, as ex officio, nonvoting
6members of the board, a member of the county board of
7supervisors and a member of a city council for each county and
8city that has a licensed gambling games facility operated by
9the qualified sponsoring organization. The ex officio members
10shall serve terms of the same duration as voting members of the
11board.
12 Sec. 33. Section 99F.17A, Code 2019, is amended to read as
13follows:
1499F.17A Inspection of gambling Gambling games or implements
15of gambling — inspection — wagering requirements.
161. A licensed manufacturer or distributor of gambling games
17or implements of gambling shall deliver the gambling games or
18implements of gambling to a location approved by the commission
19for inspection and approval prior to being placed in operation.
20Gambling games or implements of gambling acquired pursuant
21to section 99F.17, subsection 6, shall be inspected and
22approved by the commission prior to being placed in operation.
23Gambling games or implements of gambling passing inspection
24and receiving approval may then be placed in operation on an
25excursion gambling boat.
262. A licensee that offers gambling games containing a wheel
27and ball, or virtual simulation, shall have at least one of
28these games that provide for a house edge under three percent
29for a single number wager.
30DIVISION IV
31EFFECTIVE DATE AND IMPLEMENTATION PROVISIONS
32 Sec. 34. EMERGENCY RULES. The state racing and gaming
33commission created under section 99D.5 may adopt emergency
34rules under section 17A.4, subsection 3, and section 17A.5,
35subsection 2, paragraph “b”, to implement the provisions of
-20-1this Act and the rules shall be effective immediately upon
2filing unless a later date is specified in the rules but in
3no event earlier than July 4, 2019. Any rules adopted in
4accordance with this section shall also be published as a
5notice of intended action as provided in section 17A.4.
6 Sec. 35. IMPLEMENTATION. The racing and gaming commission
7shall not implement this Act until the later of July 4, 2019,
8or the date the commission has adopted rules pursuant to
9chapter 17A providing for such implementation and such rules
10have become effective.
11 Sec. 36. EFFECTIVE DATE. This Act, being deemed of
12immediate importance, takes effect upon enactment.
13EXPLANATION
14The inclusion of this explanation does not constitute agreement with
15the explanation’s substance by the members of the general assembly.
16This bill authorizes wagering on sporting events and fantasy
17sports contests and amends provisions relating to gambling game
18regulation.
19SPORTS WAGERING. Division I of the bill authorizes wagering
20on certain sporting events and provides for the licensing and
21regulation of sports wagering.
22Code section 99F.1, concerning definitions, is amended. The
23bill defines “sports wagering” as acceptance of wagers on an
24authorized sporting event by any system of wagering authorized
25by the commission.
26The bill defines “authorized sporting event” as a
27professional sporting event, collegiate sporting event,
28international sporting event, professional motor race event, or
29any other minor league or amateur sporting event as authorized
30by the commission pursuant to the bill. The bill specifically
31excludes from the definition of “authorized sporting event” a
32race as defined in Code section 99D.2, a fantasy sports contest
33as defined in Code section 99E.1 as provided in the bill, or
34any athletic event or competition of an interscholastic sport
35as defined in Code section 9A.102. The bill further defines
-21-1each sporting event included in the definition of authorized
2sporting event and defines and excludes from the definition of
3“professional sporting event”, a minor league sporting event.
4“Sports wagering net receipts” is defined as gross receipts
5less winnings paid to wagerers on sports wagering. “Sports
6wagering area” is defined as an area, as designated by the
7commission, in which sports wagering is conducted.
8Code sections 99D.7(23) and 99F.4(22), concerning persons
9voluntarily excluded from wagering or gaming areas, are amended
10to include internet fantasy sports contests, advance deposit
11wagering, advance deposit sports wagering, and the sports
12wagering area.
13Code section 99F.3, concerning authorized wagering under
14Code chapter 99F, is amended to authorize sports wagering.
15Code section 99F.4, concerning racing and gaming commission
16powers, is amended to authorize the operation of sports
17wagering in a sports wagering area on an excursion gambling
18boat which is also licensed to serve alcoholic beverages,
19grants the racing and gaming commission the authority to adopt
20standards under which sports wagering is conducted including
21the scope and type of wagers allowed. The bill provides that
22revenue received by the commission from license fees for sports
23wagering shall be deposited in the general fund of the state
24and revenue received by the commission from regulatory fees
25shall be deposited into the gaming regulatory revolving fund
26established in Code section 99F.20.
27New Code section 99F.7A provides specific requirements
28relative to the licensing, operation, and fees applicable to
29sports wagering.
30The bill provides that the commission shall, upon payment
31of an initial license fee, issue a license to conduct sports
32wagering to a licensee authorized to conduct gambling games at
33a pari-mutuel racetrack enclosure or a licensee authorized to
34operate an excursion gambling boat or gambling structure. The
35bill provides for an annual renewal fee. The new Code section
-22-1also provides that a licensee shall include on the internet
2site or mobile application used by the licensee to conduct
3advance deposit sports wagering the statewide telephone number
4authorized by the Iowa department of public health to provide
5problem gambling information, extensive responsible gaming
6features, and a link to the internet site or mobile application
7used to conduct advance deposit wagering as authorized by Code
8section 99D.11. The new Code section also provides that the
9commission, upon application, may authorize sports wagering
10on minor league sporting events or amateur athletic contests
11or competitions. The new Code section also provides that a
12licensee issued a license to conduct sports wagering shall
13employ commercially reasonable steps to prohibit coaches,
14athletic trainers, officials, players, participants, or other
15persons employed in a position with direct involvement with
16such individuals from sports wagering under Code chapter 99F.
17Code section 99F.8, concerning licensee bonding
18requirements, is amended to make such requirements applicable
19to sports wagering.
20Code section 99F.9, concerning wagering on gambling games,
21is amended to allow the commission to authorize gambling game
22licensees under Code chapter 99F to conduct advance deposit
23sports wagering. The bill also allows a licensee under Code
24section 99F.7A to enter into an agreement with an advance
25deposit sports wagering operator licensed by the commission to
26provide advance deposit sports wagering for the licensee and
27allows the commission to require the advance deposit sports
28wagering operator to conduct an audit. The bill would allow
29for an advance deposit wager to be placed in person at a
30licensed facility authorized to conduct gambling games or from
31any other location by telephone or other electronic means.
32The bill defines “advance deposit sports wagering” as a form
33of wagering where an eligible individual creates an account
34with a licensee, deposits money into that account, and can use
35the balance within the account for sports wagering. Prior to
-23-1January 1, 2021, an account must be established in person with
2a licensee. The bill defines an “eligible individual” for
3purposes of advance deposit sports wagering as an individual
421 years of age or older who is located within this state. The
5bill provides that an unlicensed person taking sports wagers
6from Iowa residents is guilty of a class “D” felony, punishable
7by confinement for no more than five years and a fine of at
8least $750 but not more than $7,500. The Code section is also
9amended to provide that a person under the age of 21 shall
10not make or attempt to make a wager by advance deposit sports
11wagering.
12Code section 99F.12, concerning certain required reports
13and records of licensees, is amended to provide that a sports
14wagering licensee shall promptly report to the commission any
15criminal or disciplinary proceedings commenced against the
16licensee, any abnormal sports wagering activity, and any other
17conduct with the potential to corrupt a wagering outcome of an
18authorized sporting event. The bill authorizes the commission
19to share any information received with any law enforcement
20entity, sports team, sports governing body, or regulatory
21agency the commission deems appropriate.
22Code section 99F.15, concerning certain prohibited
23activities and penalties, is amended to provide that current
24prohibitions on cheating at a gambling game, claiming anything
25of value from a gambling game with intent to defraud, and
26knowingly enticing a person to go where a gambling game is
27conducted in violation of Code chapter 99F also applies to
28sports wagering.
29Code section 99F.20, concerning the gaming regulatory
30revolving fund, is amended to provide that regulatory fees
31by an internet fantasy sports contest service provider and
32by a licensee authorized to conduct sports wagering shall be
33deposited in the fund.
34The bill also provides that it is the intent of the general
35assembly to establish sports wagering license fees, a tax on
-24-1sports wagering net receipts, and to provide for the allocation
2of revenues derived from the tax.
3FANTASY SPORTS CONTESTS. Division II of the bill authorizes
4internet fantasy sports contests and provides for the
5licensing, regulation, and taxation of internet fantasy sports
6contests.
7New Code section 99E.1 provides for definitions. A “fantasy
8sports contest” is defined as any fantasy or simulated game
9or contest in which all prizes and awards offered to winning
10participants are established and made known in advance of the
11contest, all winning outcomes reflect the relative knowledge
12and skill of the participants and are determined predominantly
13by accumulated statistical results of the performance of
14individuals, and no winning outcome is based on the score, or
15performance of any single actual team or combination of such
16teams or solely on any single performance of an individual
17athlete in any single actual sporting or other event. An
18“internet fantasy sports contest” is defined as a method of
19entering a fantasy sports contest by establishing an account
20with an internet fantasy sports contest service provider. An
21“internet fantasy sports contest player” is defined as a person
22who is at least 21 years of age who participates in an internet
23fantasy sports contest. The bill also defines “internet
24fantasy sports contest adjusted revenues”, “internet fantasy
25sports contest service provider”, and “location percentage”.
26New Code section 99E.2 provides that the system of entering
27an internet fantasy sports contest is legal when conducted by a
28licensed internet fantasy sports contest service provider as
29provided in the new Code chapter.
30New Code section 99E.3 establishes the powers of the racing
31and gaming commission in relation to internet fantasy sports
32contests and internet fantasy sports contest service providers.
33Specifically, the Code section authorizes the commission
34to investigate and license internet fantasy sports contest
35service providers, assess fines and revoke or suspend licenses,
-25-1impose penalties for violations of the Code chapter, and take
2any other action to enforce the requirements of the new Code
3chapter.
4New Code section 99E.4 establishes the requirements for an
5applicant to be granted a license to conduct internet fantasy
6sports contests. The Code section allows the commission
7to charge the applicant a fee for the department of public
8safety, division of criminal investigation, to defray the
9costs associated with any investigation. The new Code
10section provides that a license shall not be issued if there
11is evidence that the applicant has failed to meet certain
12qualifying requirements. The Code section provides that a
13person who knowingly makes a false statement on the application
14is guilty of an aggravated misdemeanor.
15New Code section 99E.5 establishes the terms and conditions
16of licenses issued to conduct internet fantasy sports contests.
17The Code section provides that a license may be issued for
18a period of not more than three years and provides for an
19annual license fee. The Code section also provides for the
20payment of a regulatory fee to be set by the racing and gaming
21commission based on the costs of administering and enforcing
22the new Code chapter. The Code section further provides that
23each licensee shall receive a credit for the amount of the
24regulatory fee paid against taxes to be paid pursuant to the
25new Code chapter. The Code section provides that a licensed
26internet fantasy sports contest service provider shall use
27commercially reasonable methods to prevent any employees and
28certain family members from participating in internet fantasy
29sports contests on the service provider’s digital platform,
30verify that internet fantasy sports contest players located
31in this state are 21 or older, ensure that participants in
32a game or contest shall not be allowed to enter an internet
33fantasy sports contest involving that game or contest, permit
34individuals to establish an account with an internet fantasy
35sports contest service provider by electronic communication and
-26-1to restrict themselves from entering an internet fantasy sports
2contest, perform an independent audit, and pay the tax imposed
3by the new Code chapter.
4New Code section 99E.6 provides that it is the intent of
5the general assembly to establish internet fantasy sports
6contest license fees and to tax internet fantasy sports contest
7adjusted revenues. The bill defines, in new Code section
899E.1, “internet fantasy sports contest adjusted revenues” as
9the total of fees and charges collected, less winnings, in an
10internet fantasy sports contest multiplied by the percentage of
11fees and charges paid by participants who are located in this
12state in that contest.
13New Code section 99E.7 provides that a person under the
14age of 21 shall not enter an internet fantasy sports contest.
15A person who violates this Code section commits a scheduled
16violation under Code section 805.8C and is subject to a $500
17fine. Code section 805.8C is amended to reflect this violation
18and applicable fine.
19New Code section 99E.8 authorizes the division of criminal
20investigation of the department of public safety to investigate
21licensee compliance with the requirements of the new Code
22chapter.
23New Code section 99E.9 establishes civil penalties. The
24new Code section provides that a person who willfully fails to
25comply with the requirements of this new Code chapter shall be
26liable for a civil penalty of not more than $1,000 for each
27violation, not to exceed $10,000 for violations arising out of
28the same transaction or occurrence.
29The bill also makes changes to Code sections 99F.2, 232C.4,
30714B.10, and 725.15 to provide that provisions in those Code
31sections that list some or all Code chapters that govern lawful
32gambling also lists the new Code chapter provided in this
33division of the bill.
34GAMBLING REGULATION. Code section 99F.6 is amended to
35provide that a qualified sponsoring organization licensed
-27-1to operate gambling games shall include, as ex officio,
2nonvoting members of the board, a member of the county board of
3supervisors and a member of a city council for each county and
4city that has a licensed gambling games facility operated by
5the qualified sponsoring organization.
6Code section 99F.17A, concerning gambling games or
7implements of gambling, is amended to provide that if a
8licensee offers gambling games containing a wheel and ball, or
9virtual simulation, at least one of these games shall provide
10for a house edge under 3 percent for a single number wager.
11EFFECTIVE DATE AND IMPLEMENTATION PROVISIONS. The bill
12takes effect upon enactment. However, the bill authorizes
13the racing and gaming commission to adopt emergency rules to
14implement the bill and provides that the racing and gaming
15commission shall not implement the bill until the later of July
164, 2019, or the date the commission has adopted rules pursuant
17to Code chapter 17A providing for such implementation and such
18rules have become effective.
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