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Senate File 617 - ReprintedA 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 an
14initial request by a person to be voluntarily excluded shall be
15for a period of five years or life and any subsequent request
16following any five-year period shall be for a period of five
17years or life. The process established shall require that
18licensees be provided electronic access to names and social
19security numbers of persons voluntarily excluded through a
20secured interactive internet site maintained by the commission
21and information regarding persons voluntarily excluded shall
22be disseminated to all licensees under this chapter, chapter
2399E, and chapter 99F. The names, social security numbers, and
24information regarding persons voluntarily excluded shall be
25kept 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,
31chapter 99E, or chapter 99F shall not be liable to any person
32for any claim which may arise from this process. In addition
33to any other penalty provided by law, any money or thing of
34value that has been obtained by, or is owed to, a voluntarily
35excluded person as a result of wagers made by the person after
-1-1the person has been voluntarily excluded shall be forfeited by
2the person and shall be credited to the general fund of the
3state.
4 Sec. 2. Section 99F.1, subsection 1, Code 2019, is amended
5to read as follows:
61. “Adjusted gross receipts” means the gross receipts less
7winnings paid to wagerers on gambling games. However, “adjusted
8gross receipts” does not include promotional play receipts
9received after the date in any fiscal year that the commission
10determines that the wagering tax imposed pursuant to section
1199F.11 on all licensees in that fiscal year on promotional
12play receipts exceeds twenty-five million eight hundred twenty
13thousand dollars.
14 Sec. 3. Section 99F.1, Code 2019, is amended by adding the
15following new subsections:
16 NEW SUBSECTION. 2A. “Authorized sporting event” means
17a professional sporting event, collegiate sporting event,
18international sporting event, or professional motor race
19event. “Authorized sporting event” does not include a race as
20defined in section 99D.2, a fantasy sports contest as defined
21in section 99E.1, minor league sporting event, or any athletic
22event or competition of an interscholastic sport as defined in
23section 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. “Sports wagering”
10does not include placing a wager on the performance or
11nonperformance of any individual athlete participating in
12a single game or match of a collegiate sporting event in
13which a collegiate team from this state is a participant, or
14placing a wager on the performance of athletes in an individual
15international sporting event governed by the international
16olympic committee in which any participant in the international
17sporting event is under eighteen years of age.
18 NEW SUBSECTION. 24. “Sports wagering area” means an area,
19as designated by the commission, in which sports wagering is
20conducted.
21 NEW SUBSECTION. 25. “Sports wagering net receipts” means
22the gross receipts less winnings paid to wagerers on sports
23wagering.
24 Sec. 4. Section 99F.1, subsection 17, Code 2019, is amended
25to read as follows:
2617. “Licensee” means any person licensed under section 99F.7
27or 99F.7A.
28 Sec. 5. Section 99F.3, Code 2019, is amended to read as
29follows:
3099F.3 Gambling games and sports wagering authorized.
31The system of wagering on a gambling game and sports wagering
32as provided by this chapter is legal, when conducted on an
33excursion gambling boat, gambling structure, or racetrack
34enclosure at authorized locations by a licensee as provided in
35this chapter.
-3-1 Sec. 6. Section 99F.4, subsections 3 and 22, Code 2019, are
2amended to read as follows:
33. To adopt standards under which all excursion gambling
4boat operations shall be held and standards for the facilities
5within which the gambling operations are to be held. The
6commission may authorize the operation of gambling games on
7an excursion gambling boat and sports wagering in a sports
8wagering area which is also licensed to sell or serve alcoholic
9beverages, wine, or beer as defined in section 123.3.
1022. To establish a process to allow a person to be
11voluntarily excluded from advance deposit wagering as defined
12in section 99D.11, from an internet fantasy sports contest as
13defined in section 99E.1, from advance deposit sports wagering
14as defined in section 99F.9, from the gaming floor and sports
15wagering area of an excursion gambling boat, from the wagering
16area, as defined in section 99D.2, and from the gaming floor
17and sports wagering area of all other licensed facilities under
18this chapter and chapter 99D as provided in this subsection.
19The process shall provide that an initial request by a person
20to be voluntarily excluded shall be for a period of five years
21or life and any subsequent request following any five-year
22period shall be for a period of five years or life. The process
23established shall require that licensees be provided electronic
24access to names and social security numbers of persons
25voluntarily excluded through a secured interactive internet
26site maintained by the commission and information regarding
27persons voluntarily excluded shall be disseminated to all
28licensees underthis chapter ,and chapter 99D, and chapter 99E.
29 The names, social security numbers, and information regarding
30persons voluntarily excluded shall be kept confidential
31unless otherwise ordered by a court or by another person
32duly authorized to release such information. The process
33established shall also require a person requesting to be
34voluntarily excluded be provided information compiled by the
35Iowa department of public health on gambling treatment options.
-4-1The state and any licensee under this chapter, or chapter 99D ,
2or chapter 99Eshall not be liable to any person for any claim
3which may arise from this process. In addition to any other
4penalty provided by law, any money or thing of value that has
5been obtained by, or is owed to, a voluntarily excluded person
6as a result of wagers made by the person after the person has
7been voluntarily excluded shall be forfeited by the person and
8shall be credited to the general fund of the state.
9 Sec. 7. Section 99F.4, Code 2019, is amended by adding the
10following new subsection:
11 NEW SUBSECTION. 27. To adopt standards under which all
12sports wagering is conducted, including the scope and type of
13wagers allowed, to identify occupations within sports wagering
14which require licensing, and to adopt standards for licensing
15and background qualifications for occupations including
16establishing fees for the occupational license. All revenue
17received by the commission under this chapter from license fees
18shall be deposited in the general fund of the state and shall
19be subject to the requirements of section 8.60. All revenue
20received by the commission from regulatory fees shall be
21deposited into the gaming regulatory revolving fund established
22in section 99F.20.
23 Sec. 8. Section 99F.5, subsection 1, Code 2019, is amended
24to read as follows:
251. A qualified sponsoring organization may apply to the
26commission for a license to conduct gambling games on an
27excursion gambling boat or gambling structure as provided in
28this chapter. A person may apply to the commission for a
29license to operate an excursion gambling boat. An operating
30agreement entered into on or after May 6, 2004, between
31a qualified sponsoring organization and an operator of an
32excursion gambling boat or gambling structure shall provide for
33a minimum distribution by the qualified sponsoring organization
34for educational, civic, public, charitable, patriotic, or
35religious uses as defined in section 99B.1, that averages at
-5-1least three percent of the adjusted gross receipts for each
2license year and, if applicable, three-quarters of one percent
3of sports wagering net receipts for each license year. The
4application shall be filed with the administrator of the
5commission at least ninety days before the first day of the
6next excursion season as determined by the commission, shall
7identify the excursion gambling boat upon which gambling games
8will be authorized, shall specify the exact location where
9the excursion gambling boat will be docked, and shall be in
10a form and contain information as the commission prescribes.
11The minimum capacity of an excursion gambling boat or gambling
12structure is two hundred fifty persons.
13 Sec. 9. Section 99F.6, subsection 4, paragraph a,
14subparagraphs (2) and (3), Code 2019, are amended to read as
15follows:
16(2) A qualified sponsoring organization licensed to operate
17gambling games under this chapter shall distribute the receipts
18of all gambling games, less reasonable expenses, charges,
19taxes, fees, and deductions allowed under this chapter, as
20winnings to players or participants or shall distribute the
21receipts for educational, civic, public, charitable, patriotic,
22or religious uses as defined in section 99B.1. However, a
23licensee to conduct gambling games under this chapter shall,
24unless an operating agreement for an excursion gambling boat
25otherwise provides, distribute at least three percent of the
26adjusted gross receipts and, if applicable, three-quarters of
27one percent of sports wagering net receipts for each license
28year for educational, civic, public, charitable, patriotic,
29or religious uses as defined in section 99B.1. However, if a
30licensee who is also licensed to conduct pari-mutuel wagering
31at a horse racetrack has unpaid debt from the pari-mutuel
32racetrack operations, the first receipts of the gambling
33games operated within the racetrack enclosure less reasonable
34operating expenses, taxes, and fees allowed under this chapter
35shall be first used to pay the annual indebtedness.
-6- 1(3) The commission shall authorize, subject to the debt
2payments for horse racetracks and the provisions of paragraph
3“b” for dog racetracks, a licensee who is also licensed to
4conduct pari-mutuel dog or horse racing to use receipts
5from gambling games and sports wagering within the racetrack
6enclosure to supplement purses for races particularly for
7Iowa-bred horses pursuant to an agreement which shall be
8negotiated between the licensee and representatives of the
9dog or horse owners. For agreements subject to commission
10approval concerning purses for horse racing beginning on or
11after January 1, 2006, the agreements shall provide that total
12annual purses for all horse racing shall be four percent of
13sports wagering net receipts and no less than eleven percent of
14the first two hundred million dollars of net receipts, and six
15percent of net receipts above two hundred million dollars. In
16addition, live standardbred horse racing shall not be conducted
17at the horse racetrack in Polk county, but the purse moneys
18designated for standardbred racing pursuant to section 99D.7,
19subsection 5, paragraph “b”, shall be included in calculating
20the total annual purses required to be paid pursuant to this
21subsection. Agreements that are subject to commission approval
22concerning horse purses for a period of time beginning on
23or after January 1, 2006, shall be jointly submitted to the
24commission for approval.
25 Sec. 10. NEW SECTION. 99F.7A Sports wagering — license —
26terms and conditions — fees.
271. The commission shall, upon payment of an initial license
28fee of forty-five thousand dollars and submission of an
29application to the commission consistent with the requirements
30of section 99F.6, issue a license to conduct sports wagering
31to a licensee authorized to conduct gambling games at a
32pari-mutuel racetrack enclosure or a licensee authorized to
33operate an excursion gambling boat or gambling structure,
34subject to the requirements of this chapter. The annual
35renewal fee for a license to conduct sports wagering shall be
-7-1ten thousand dollars.
22. A licensee under this section shall do all of the
3following:
4a. Include on the internet site or mobile application used
5by the licensee to conduct advance deposit sports wagering as
6authorized in section 99F.9 the statewide telephone number
7authorized by the Iowa department of public health to provide
8problem gambling information and extensive responsible gaming
9features in addition to those described in section 99F.4,
10subsection 22.
11b. Establish, subject to commission approval, sports
12wagering rules that specify the amounts to be paid on winning
13sports wagers, the effect of changes in the scheduling of an
14authorized sporting event subject to sports wagering, and the
15source of the information used to determine the outcome of a
16sports wager. The sports wagering rules shall be displayed in
17the licensee’s sports wagering area, posted on the internet
18site or mobile application used by the licensee to conduct
19advance deposit sports wagering as authorized in section 99F.9,
20and included in the terms and conditions of the licensee’s
21advance deposit sports wagering system.
223. A licensee under this section may enter into operating
23agreements with one or two entities to have up to a total of
24two individually branded internet sites to conduct advance
25deposit sports wagering for the licensee, unless one additional
26operating agreement or individually branded internet site is
27authorized by the commission.
284. A licensee issued a license to conduct sports wagering
29under this section shall employ reasonable steps to prohibit
30coaches, athletic trainers, officials, players, or other
31individuals who participate in an authorized sporting event
32that is the subject of sports wagering from sports wagering
33under this chapter. In addition, a licensee shall employ
34reasonable steps to prohibit persons who are employed in
35a position with direct involvement with coaches, players,
-8-1athletic trainers, officials, players, or participants in
2an authorized sporting event that is the subject of sports
3wagering from sports wagering under this chapter.
4 Sec. 11. Section 99F.8, Code 2019, is amended to read as
5follows:
699F.8 Bond of licensee.
7A licensee licensed under section 99F.7 shall post a bond
8to the state of Iowa before the license is issued in a sum
9as the commission shall fix, with sureties to be approved by
10the commission. The bond shall be used to guarantee that the
11licensee faithfully makes the payments, keeps its books and
12records and makes reports, and conducts its gambling games and
13sports wagering in conformity with this chapter and the rules
14adopted by the commission. The bond shall not be canceled by
15a surety on less than thirty days’ notice in writing to the
16commission. If a bond is canceled and the licensee fails to
17file a new bond with the commission in the required amount on
18or before the effective date of cancellation, the licensee’s
19license shall be revoked. The total and aggregate liability
20of the surety on the bond is limited to the amount specified in
21the bond.
22 Sec. 12. Section 99F.9, subsection 1, Code 2019, is amended
23to read as follows:
241. Except as permitted in this section, the licensee shall
25not permit no sports wagering or any form of wagering on
26gambling games.
27 Sec. 13. Section 99F.9, Code 2019, is amended by adding the
28following new subsection:
29 NEW SUBSECTION. 3A. a. For the purposes of this section,
30unless the context otherwise requires:
31(1) “Advance deposit sports wagering” means a method of
32sports wagering in which an eligible individual may, in an
33account established with a licensee under section 99F.7A,
34deposit moneys into the account and use the account balance to
35pay for sports wagering. Prior to January 1, 2021, an account
-9-1must be established by an eligible individual in person with
2a licensee.
3(2) “Advance deposit sports wagering operator” means an
4advance deposit sports wagering operator licensed by the
5commission who has entered into an agreement with a licensee
6under section 99F.7A to provide advance deposit sports
7wagering.
8(3) “Eligible individual” means an individual who is at
9least twenty-one years of age or older who is located within
10this state.
11b. The commission may authorize a licensee under section
1299F.7A to conduct advance deposit sports wagering. An advance
13deposit sports wager may be placed in person in the sports
14wagering area, or from any other location via a telephone-type
15device or any other electronic means. The commission may also
16issue an advance deposit sports wagering operator license to
17an entity who complies with this subsection and section 99F.6
18and may require the advance deposit sports wagering operator to
19conduct an audit consistent with the requirements of section
2099F.13.
21c. An unlicensed person taking or receiving sports wagers
22from residents of this state is guilty of a class “D” felony.
23 Sec. 14. Section 99F.9, subsection 4, Code 2019, is amended
24to read as follows:
254. A person under the age of twenty-one years shall not make
26or attempt to make a wager pursuant to subsection 3A or on an
27excursion gambling boat, gambling structure, or in a racetrack
28enclosure and shall not be allowed on the gaming floor of
29an excursion gambling boat or gambling structure or in the
30wagering area, as defined in section 99D.2, or on the gaming
31floor of a racetrack enclosure. However, a person eighteen
32years of age or older may be employed to work on the gaming
33floor of an excursion gambling boat or gambling structure or
34in the wagering area or on the gaming floor of a racetrack
35enclosure. A person who violates this subsection with respect
-10-1to making or attempting to make a wager commits a scheduled
2violation under section 805.8C, subsection 5, paragraph “a”.
3 Sec. 15. Section 99F.11, subsection 3, unnumbered paragraph
41, Code 2019, is amended to read as follows:
5The taxes imposed by this section on adjusted gross receipts
6from gambling games authorized under this chapter shall be paid
7by the licensee to the treasurer of state within ten days after
8the close of the day when the wagers were made and shall be
9distributed as follows:
10 Sec. 16. Section 99F.11, Code 2019, is amended by adding the
11following new subsection:
12 NEW SUBSECTION. 4. a. A tax is imposed on the sports
13wagering net receipts received each fiscal year by a licensed
14operator from sports wagering authorized under this chapter at
15the rate of six and three-quarters percent.
16b. The taxes imposed by this subsection for sports wagering
17authorized under this chapter shall be paid by the licensed
18operator to the treasurer of state as determined by the
19commission and shall be credited as provided in section 8.57,
20subsection 6.
21 Sec. 17. Section 99F.12, subsection 2, Code 2019, is amended
22to read as follows:
232. a. The licensee shall furnish to the commission reports
24and information as the commission may require with respect to
25the licensee’s activities.
26b. A licensee under section 99F.7A shall promptly report
27to the commission any criminal or disciplinary proceedings
28commenced against the licensee or its employees in connection
29with the licensee conducting sports wagering or advance
30deposit sports wagering, any abnormal wagering activity or
31patterns that may indicate a concern about the integrity of an
32authorized sporting event or events, and any other conduct with
33the potential to corrupt a wagering outcome of an authorized
34sporting event for purposes of financial gain, including
35but not limited to match fixing, and suspicious or illegal
-11-1wagering activities, including the use of funds derived from
2illegal activity, wagers to conceal or launder funds derived
3from illegal activity, use of agents to place wagers, or use
4of false identification. The commission is required to share
5any information received pursuant to this paragraph with the
6division of criminal investigation, any other law enforcement
7entity upon request, or any regulatory agency the commission
8deems appropriate. The commission shall promptly report any
9information received pursuant to this paragraph with any
10sports team or sports governing body as the commission deems
11appropriate, but shall not share any information that would
12interfere with an ongoing criminal investigation.
13c. The gross receipts and adjusted gross receipts from
14gambling shall be separately handled and accounted for from
15all other moneys received from operation of an excursion
16gambling boat or from operation of a racetrack enclosure or
17gambling structure licensed to conduct gambling games. The
18commission may designate a representative to board a licensed
19excursion gambling boat or to enter a racetrack enclosure or
20gambling structure licensed to conduct gambling games. The
21representative shall have full access to all places within the
22enclosure of the boat, the gambling structure, or the racetrack
23enclosure and shall directly supervise the handling and
24accounting of all gross receipts and adjusted gross receipts
25from gambling. The representative shall supervise and check
26the admissions. The compensation of a representative shall be
27fixed by the commission but shall be paid by the licensee.
28d. With the approval of the commission, a licensee under
29section 99F.7A shall cooperate with investigations conducted
30by sports governing bodies, including but not limited to
31providing or facilitating the provision of account-level
32betting information and audio or video files relating to
33persons placing wagers. However, a licensee shall not share
34information that would interfere with an ongoing criminal
35investigation.
-12-1 Sec. 18. Section 99F.15, subsection 1, paragraph c, Code
22019, is amended to read as follows:
3c. Acting, or employing a person to act, as a shill or
4decoy to encourage participation in a gambling game or sports
5wagering.
6 Sec. 19. Section 99F.15, subsection 4, paragraphs d, h, and
7i, Code 2019, are amended to read as follows:
8d. Cheats at a gambling game, including but not limited to
9committing any act which alters the outcome of the game, or
10cheats at sports wagering.
11h. Claims, collects, or takes, or attempts to claim,
12collect, or take, money or anything of value in or from the
13gambling games or sports wagering, with intent to defraud,
14without having made a wager contingent on winning a gambling
15game or sports wager, or claims, collects, or takes an amount
16of money or thing of value of greater value than the amount
17won.
18i. Knowingly entices or induces a person to go to any place
19where a gambling game or sports wagering is being conducted or
20operated in violation of the provisions of this chapter with
21the intent that the other person plays or participates in that
22gambling game or sports wagering.
23 Sec. 20. Section 99F.20, subsection 1, Code 2019, is amended
24to read as follows:
251. A gaming regulatory revolving fund is created in
26the state treasury under the control of the department of
27inspections and appeals. The fund shall consist of fees
28collected and deposited into the fund paid by licensees
29pursuant to section 99D.14, subsection 2, paragraph “c”, fees
30paid by licensees pursuant to section 99E.5, subsection 4,
31paragraph “c”, regulatory fees paid by licensees pursuant
32to section 99F.4, subsection 27, and fees paid by licensees
33pursuant to section 99F.10, subsection 4, paragraph “c”. All
34costs relating to racetrack, excursion boat, and gambling
35structure, internet fantasy sports contests as defined in
-13-1section 99E.1, and sports wagering regulation shall be paid
2from the fund as provided in appropriations made for this
3purpose by the general assembly. The department shall provide
4quarterly reports to the department of management and the
5legislative services agency specifying revenues billed and
6collected and expenditures from the fund in a format as
7determined by the department of management in consultation with
8the legislative services agency.
9 Sec. 21. EMERGENCY RULES. The state racing and gaming
10commission created under section 99D.5 may adopt emergency
11rules under section 17A.4, subsection 3, and section 17A.5,
12subsection 2, paragraph “b”, to implement the provisions of
13this division of this Act and the rules shall be effective
14immediately upon filing unless a later date is specified in the
15rules but in no event earlier than July 4, 2019. Any rules
16adopted in accordance with this section shall also be published
17as a notice of intended action as provided in section 17A.4.
18 Sec. 22. IMPLEMENTATION. The racing and gaming commission
19shall not implement this division of this Act until the later
20of July 4, 2019, or the date the commission has adopted rules
21pursuant to chapter 17A providing for such implementation and
22such rules have become effective.
23 Sec. 23. EFFECTIVE DATE. This division of this Act, being
24deemed of immediate importance, takes effect upon enactment.
25DIVISION II
26FANTASY SPORTS CONTESTS
27 Sec. 24. Section 80.25A, Code 2019, is amended to read as
28follows:
2980.25A Pari-mutuel and gambling game Gaming operations
30 investigation and enforcement.
31The commissioner of public safety shall direct the chief
32of the division of criminal investigation to establish a
33subdivision to be the primary criminal investigative and
34enforcement agency for the purpose of enforcement of chapters
3599D, 99E, and 99F. The commissioner of public safety shall
-14-1appoint or assign other agents to the division as necessary to
2enforce chapters 99D, 99E, and 99F. All enforcement officers,
3assistants, and agents of the division are subject to section
480.15 except clerical workers.
5 Sec. 25. Section 80.43, subsection 1, Code 2019, is amended
6to read as follows:
71. A gaming enforcement revolving fund is created in the
8state treasury under the control of the department. The fund
9shall consist of fees collected and deposited into the fund
10paid by licensees pursuant to section 99D.14, subsection 2,
11paragraph “b”, fees and costs paid by applicants pursuant
12to section 99E.4, subsection 4, and fees paid by licensees
13pursuant to section 99F.10, subsection 4, paragraph “b”. All
14costs for agents and officers plus any direct support costs
15for such agents and officers of the division of criminal
16investigation’s racetrack, excursion boat, or gambling
17structure, and internet fantasy sports contests as defined in
18section 99E.1 enforcement activities shall be paid from the
19fund as provided in appropriations made for this purpose by the
20general assembly.
21 Sec. 26. NEW SECTION. 99E.1 Definitions.
22As used in this chapter, unless the context otherwise
23requires:
241. “Applicant” means an internet fantasy sports contest
25service provider applying for a license to conduct internet
26fantasy sports contests under this chapter.
272. “Commission” means the state racing and gaming commission
28created under section 99D.5.
293. “Fantasy sports contest” includes any fantasy or
30simulated game or contest in which the fantasy sports contest
31operator is not a participant in the game or contest, the value
32of all prizes and awards offered to winning participants are
33established and made known to the participants in advance
34of the contest, all winning outcomes reflect the relative
35knowledge and skill of the participants and shall be determined
-15-1by accumulated statistical results of the performance of
2individuals, including athletes in the case of sporting events,
3and no winning outcome is solely based on the score, point
4spread, or any performance or performances of any single actual
5team or solely on any single performance of an individual
6athlete or player in any single actual event. However, until
7May 1, 2020, “fantasy sports contest” does not include any
8fantasy or simulated game or contest in which any winning
9outcomes are based on statistical results from a collegiate
10sporting event as defined in section 99F.1.
114. “Internet fantasy sports contest” means a method of
12entering a fantasy sports contest by which a person may
13establish an account with an internet fantasy sports contest
14service provider, deposit money into the account, and use
15the account balance for entering a fantasy sports contest by
16utilizing electronic communication.
175. “Internet fantasy sports contest adjusted revenues” means,
18for each internet fantasy sports contest, the amount equal to
19the total charges and fees collected from all participants
20entering the internet fantasy sports contest less winnings paid
21to participants in the contest, multiplied by the location
22percentage.
236. “Internet fantasy sports contest player” means a person
24who is at least twenty-one years of age and participates in an
25internet fantasy sports contest operated by an internet fantasy
26sports contest service provider.
277. “Internet fantasy sports contest service provider” means
28a person, including a licensee under chapter 99D or 99F, who
29conducts an internet fantasy sports contest as authorized by
30this chapter.
318. “Licensee” means any person licensed under section 99E.5
32to conduct internet fantasy sports contests.
339. “Location percentage” means, for each internet fantasy
34sports contest, the percentage, rounded to the nearest tenth of
35a percent, equal to the total charges and fees collected from
-16-1all internet fantasy sports contest players located in this
2state divided by the total charges and fees collected from all
3participants in the internet fantasy sports contest.
4 Sec. 27. NEW SECTION. 99E.2 Internet fantasy sports
5contests authorized.
6The system of entering an internet fantasy sports contest as
7provided by this chapter is legal when conducted by a licensed
8internet fantasy sports contest service provider as provided in
9this chapter.
10 Sec. 28. NEW SECTION. 99E.3 Commission — powers.
111. The commission shall have full jurisdiction over and
12shall supervise internet fantasy sports contests and internet
13fantasy sports contest service providers as governed by this
14chapter.
152. The commission shall have the following powers and shall
16adopt rules pursuant to chapter 17A to administer and implement
17this chapter:
18a. To review and investigate applicants and determine the
19eligibility of applicants for a license to conduct internet
20fantasy sports contests, pursuant to rules adopted by the
21commission.
22b. To license and regulate internet fantasy sports contest
23service providers subject to the requirements of this chapter.
24c. To provide for the prevention of practices detrimental to
25the public and to provide for the best interests of internet
26fantasy sports contests.
27d. To investigate alleged violations of this chapter
28or the commission rules, orders, or final decisions and to
29take appropriate disciplinary action against a licensee, or
30institute appropriate legal action for enforcement, or both.
31Information gathered during an investigation is confidential
32during the pendency of the investigation.
33e. To assess fines and revoke or suspend licenses and to
34impose penalties for violations of this chapter.
35f. To take any other action as may be reasonable or
-17-1appropriate to enforce this chapter and the commission rules.
2 Sec. 29. NEW SECTION. 99E.4 Requirements of applicant —
3fee.
41. An applicant for a license to conduct internet fantasy
5sports contests shall complete and sign an application on
6the form prescribed and published by the commission. The
7application shall include such information of the applicant
8that the commission deems necessary for purposes of issuing a
9license pursuant to this chapter.
102. An applicant shall submit fingerprints and information
11that the commission deems necessary to the commission in the
12manner prescribed on the application forms. The fingerprints
13may be submitted to the federal bureau of investigation by
14the department of public safety through the state criminal
15history repository for the purpose of a national criminal
16history check. The results of a criminal history record check
17conducted pursuant to this subsection shall be considered a
18confidential record under chapter 22.
193. Before a license is granted, the division of criminal
20investigation of the department of public safety shall conduct
21a thorough background investigation of the applicant for a
22license to conduct internet fantasy sports contests. The
23applicant shall provide information on a form as required by
24the division of criminal investigation.
254. The commission shall charge the applicant a reasonable
26fee set by the division of criminal investigation of the
27department of public safety, to defray those costs associated
28with the fingerprint and national criminal history check
29requirements of subsection 2 and background investigations
30conducted by agents of the division of criminal investigation
31as provided in subsection 3. These fees and costs are in
32addition to any other license fees and costs charged by the
33commission. The fees and costs received by the commission
34shall be deposited in the gaming enforcement revolving fund
35established in section 80.43.
-18- 15. The commission shall not grant a license to an applicant
2if there is substantial evidence that any of the following
3apply:
4a. A license issued to the applicant to conduct internet
5fantasy sports contests in another jurisdiction has been
6revoked, or a request for a license to conduct internet fantasy
7sports contests in another jurisdiction has been denied, by
8an entity licensing persons to conduct such contests in that
9jurisdiction.
10b. The applicant has not demonstrated financial
11responsibility sufficient to adequately meet the requirements
12of the enterprise proposed.
13c. The applicant does not adequately disclose the true
14owners of the enterprise proposed.
15d. The applicant has knowingly made a false statement of a
16material fact to the commission.
17e. The applicant has failed to meet a monetary obligation in
18connection with conducting an internet fantasy sports contest.
19f. The applicant is not of good repute and moral character
20or the applicant has pled guilty to, or has been convicted of,
21a felony.
22g. Any member of the board of directors of the applicant is
23not twenty-one years of age or older.
246. A person who knowingly makes a false statement on the
25application is guilty of an aggravated misdemeanor.
267. For the purposes of this section, “applicant” includes
27each member of the board of directors of an internet fantasy
28sports contest service provider.
29 Sec. 30. NEW SECTION. 99E.5 Licenses — fees — terms and
30conditions — revocation.
311. If the commission is satisfied that the requirements
32of this chapter and its rules adopted under this chapter
33applicable to licensees have been or will be complied with, the
34commission shall, upon payment of an initial license fee of
35five thousand dollars, issue a license for a period of not more
-19-1than three years to an applicant to conduct internet fantasy
2sports contests in this state.
32. A licensed internet fantasy sports contest service
4provider shall use reasonable methods to comply with all of the
5following requirements:
6a. Prevent employees of the internet fantasy sports contest
7service provider and relatives living in the same household of
8such employees from competing in any internet fantasy sports
9contest on the service provider’s digital platform in which the
10service provider offers a cash prize to the public.
11b. Verify that an internet fantasy sports contest player
12located in this state is twenty-one years of age or older.
13c. Ensure that coaches, officials, players, contestants,
14or other individuals who participate in a game or contest
15that is the subject of an internet fantasy sports contest are
16restricted from entering an internet fantasy sports contest in
17which the outcome is determined, in whole or in part, by the
18accumulated statistical results of a team of individuals in the
19game or contest in which they participate.
20d. Include on the internet site or mobile application used
21by the licensee to conduct internet fantasy sports contests the
22statewide telephone number authorized by the Iowa department
23of public health to provide problem gambling information and
24extensive responsible gaming features in addition to those
25described in section 99F.4, subsection 22.
26e. Allow individuals to establish an account with an
27internet fantasy sports contest service provider by utilizing
28electronic communication.
29f. Disclose the number of entries a single internet fantasy
30sports contest player may submit to each internet fantasy
31sports contest and take reasonable steps to prevent players
32from submitting more than the allowable number of entries for
33that internet fantasy sports contest.
34g. Segregate internet fantasy sports contest player funds
35from operational funds or maintain a reserve in the form of
-20-1cash, cash equivalents, an irrevocable letter of credit,
2payment processor reserves and receivables, a bond, or a
3combination thereof in the amount of the deposits in internet
4fantasy sports contest player accounts for the benefit and
5protection of internet fantasy sports contest player funds held
6in internet fantasy sports contest accounts by the internet
7fantasy sports contest service provider.
8h. Conduct an annual audit under section 99E.9.
9i. Pay the tax as provided in section 99E.6.
103. The annual license fee to conduct internet fantasy sports
11contests shall be one thousand dollars or, for a licensed
12internet fantasy sports contest service provider with total
13annual internet fantasy sports contest adjusted revenues for
14the year prior to the annual license fee renewal date of
15one hundred fifty thousand dollars or greater, five thousand
16dollars. Moneys collected by the commission from the license
17fees paid under this section shall be considered repayment
18receipts as defined in section 8.2.
194. a. A licensed internet fantasy sports contest service
20provider shall pay a regulatory fee to the commission. The
21regulatory fee shall be established by the commission based on
22the costs of administering and enforcing this chapter.
23b. A licensed internet fantasy sports contest service
24provider shall receive a credit for the amount of the
25regulatory fee paid by the provider against the taxes to be
26paid pursuant to section 99E.6.
27c. Notwithstanding section 8.60, the portion of the fee
28paid pursuant to paragraph “a” relating to the costs of the
29commission shall be deposited into the gaming regulatory
30revolving fund established in section 99F.20.
315. Upon a violation of any of the conditions listed in
32section 99E.4 or this section by a licensee, the commission
33shall immediately revoke the license.
34 Sec. 31. NEW SECTION. 99E.6 Internet fantasy sports contest
35tax — rate.
-21- 11. A tax is imposed on internet fantasy sports contest
2adjusted revenues received each fiscal year by an internet
3fantasy sports contest service provider from internet fantasy
4sports contests authorized under this chapter at the rate of
5six and three-quarters percent.
62. The taxes imposed by this section for internet fantasy
7sports contests authorized under this chapter shall be paid by
8the internet fantasy sports contest service provider to the
9treasurer of state as determined by the commission and shall be
10credited as provided in section 8.57, subsection 6.
11 Sec. 32. NEW SECTION. 99E.7 Internet fantasy sports
12contests — age restrictions.
13A person under the age of twenty-one years shall not enter an
14internet fantasy sports contest. A person who violates this
15section with respect to entering an internet fantasy sports
16contest commits a scheduled violation under section 805.8C,
17subsection 12.
18 Sec. 33. NEW SECTION. 99E.8 Licensees — records — reports
19— confidentiality.
201. An internet fantasy sports contest service provider
21shall keep its books and records so as to clearly show the
22internet fantasy sports contest adjusted revenues for each
23internet fantasy sports contest subject to tax in this state.
242. a. The licensee shall furnish to the commission reports
25and information as the commission may require with respect to
26the licensee’s activities.
27b. A licensee shall promptly report to the commission any
28criminal or disciplinary proceedings commenced against the
29licensee or its employees in connection with the licensee
30conducting an internet fantasy sports contest, any abnormal
31contest activity or patterns that may indicate a concern about
32the integrity of an internet fantasy sports contest, and any
33other conduct with the potential to corrupt an outcome of an
34internet fantasy sports contest for purposes of financial gain,
35including but not limited to match fixing, and suspicious or
-22-1illegal internet fantasy sports contest activities, including
2the use of funds derived from illegal activity, deposits of
3money to enter an internet fantasy sports contest to conceal
4or launder funds derived from illegal activity, use of agents
5to enter an internet fantasy sports contest, or use of false
6identification. The commission is required to share any
7information received pursuant to this paragraph with the
8division of criminal investigation, any other law enforcement
9entity upon request, or any regulatory agency the commission
10deems appropriate. The commission shall promptly report any
11information received pursuant to this paragraph with any
12sports team or sports governing body as the commission deems
13appropriate, but shall not share any information that would
14interfere with an ongoing criminal investigation.
153. Except as provided in subsection 4, the books and records
16kept by a licensee as provided by this section are public
17records and the examination, publication, and dissemination of
18the books and records are governed by the provisions of chapter
1922.
204. The records of the commission shall be governed by the
21provisions of chapter 22, provided that, in addition to records
22that may be kept confidential pursuant to section 22.7, the
23following records provided by a licensee to the commission
24shall be kept confidential, unless otherwise ordered by a
25court, by the lawful custodian of the records, or by another
26person duly authorized to release such information:
27a. Patron and customer records.
28b. Security reports and network audits.
29c. Internal control and compliance records.
30d. Employee records.
31e. Marketing expenses.
32f. Supplemental schedules to the certified audit, except for
33those books and records as described in subsection 1 of this
34section, that are obtained by the commission in connection with
35the annual audit under section 99E.9.
-23- 1g. Any information specifically requested for inspection by
2the commission or a representative of the commission.
3 Sec. 34. NEW SECTION. 99E.9 Annual audit of licensee
4operations.
5Within one hundred eighty days after the end of the
6licensee’s fiscal year, the licensee shall transmit to the
7commission an audit of the licensee’s total internet fantasy
8sports contest operations, including an itemization of all
9expenses and subsidies. Each audit shall be conducted by a
10certified public accountant authorized to practice in the state
11of Iowa under chapter 542 who is selected by the licensee and
12approved by the commission.
13 Sec. 35. NEW SECTION. 99E.10 Civil penalty.
14A person who willfully fails to comply with the requirements
15of this chapter and the rules adopted pursuant to chapter 17A
16under this chapter shall be liable for a civil penalty of not
17more than one thousand dollars for each violation, not to
18exceed ten thousand dollars for violations arising out of the
19same transaction or occurrence, which shall accrue to the state
20and may be recovered in a civil action.
21 Sec. 36. Section 99F.2, Code 2019, is amended to read as
22follows:
2399F.2 Scope of provisions.
24This chapter does not apply to the pari-mutuel system of
25wagering used or intended to be used in connection with the
26horse-race or dog-race meetings as authorized under chapter
2799D, internet fantasy sports contests authorized under chapter
2899E, lottery or lotto games authorized under chapter 99G, or
29bingo or games of skill or chance authorized under chapter 99B.
30 Sec. 37. Section 99F.4B, Code 2019, is amended to read as
31follows:
3299F.4B Rules.
33The department of inspections and appeals shall cooperate
34to the maximum extent possible with the division of criminal
35investigation in adopting rules relating to the gaming
-24-1operations in this chapter and chapter chapters 99D and 99E.
2 Sec. 38. Section 232C.4, subsection 3, Code 2019, is amended
3to read as follows:
43. An emancipated minor shall remain subject to voting
5restrictions under chapter 48A, gambling restrictions under
6chapter 99B, 99D, 99F, 99G, or 725, internet fantasy sports
7contest restrictions under chapter 99E, alcohol restrictions
8under chapter 123, compulsory attendance requirements under
9chapter 299, and cigarette tobacco restrictions under chapter
10453A.
11 Sec. 39. Section 714B.10, subsection 1, Code 2019, is
12amended to read as follows:
131. Advertising by sponsors registered pursuant to chapter
14557B, licensed pursuant to chapter 99B, or regulated pursuant
15to chapter 99D, 99E, 99F, or 99G.
16 Sec. 40. Section 725.7, subsection 1, paragraph e, Code
172019, is amended to read as follows:
18e. Engage in bookmaking, except as permitted in chapters 99E
19and 99F.
20 Sec. 41. Section 725.13, Code 2019, is amended to read as
21follows:
22725.13 Definition of bookmaking.
23“Bookmaking” means advancing gambling activity by accepting
24bets upon the outcome of future contingent events as a business
25other than as permitted in chapters 99B, 99D, 99E, and 99F.
26These events include, but are not limited to, the results of
27a trial or contest of skill, speed, power, or endurance of
28a person or beast or between persons, beasts, fowl, motor
29vehicles, or mechanical apparatus or upon the result of any
30chance, casualty, unknown, or contingent event.
31 Sec. 42. Section 725.15, Code 2019, is amended to read as
32follows:
33725.15 Exceptions for legal gambling.
34Sections 725.5 through 725.10 and 725.12 do not apply to
35a game, activity, ticket, or device when lawfully possessed,
-25-1used, conducted, or participated in pursuant to chapter 99B,
299E, 99F, or 99G.
3 Sec. 43. Section 805.8C, Code 2019, is amended by adding the
4following new subsection:
5 NEW SUBSECTION. 12. Internet fantasy sports contest
6violations. For violations of legal age for entering an
7internet fantasy sports contest under section 99E.7, the
8scheduled fine is five hundred dollars. Failure to pay the
9fine by a person under the age of eighteen shall not result in
10the person being detained in a secure facility.
11 Sec. 44. EMERGENCY RULES. The state racing and gaming
12commission created under section 99D.5 may adopt emergency
13rules under section 17A.4, subsection 3, and section 17A.5,
14subsection 2, paragraph “b”, to implement the provisions of
15this division of this Act and the rules shall be effective
16immediately upon filing unless a later date is specified in the
17rules but in no event earlier than July 4, 2019. Any rules
18adopted in accordance with this section shall also be published
19as a notice of intended action as provided in section 17A.4.
20 Sec. 45. IMPLEMENTATION. The racing and gaming commission
21shall not implement this division of this Act until the later
22of July 4, 2019, or the date the commission has adopted rules
23pursuant to chapter 17A providing for such implementation and
24such rules have become effective.
25 Sec. 46. EFFECTIVE DATE. This division of this Act, being
26deemed of immediate importance, takes effect upon enactment.
27DIVISION III
28GAMBLING REGULATION
29 Sec. 47. Section 8.57, Code 2019, is amended by adding the
30following new subsection:
31 NEW SUBSECTION. 6. a. A sports wagering receipts fund is
32created under the authority of the department of management.
33The fund shall consist of appropriations made to the fund and
34transfers of interest, earnings, and moneys from other funds
35or sources as provided by law. The sports wagering receipts
-26-1fund shall be separate from the general fund of the state and
2the balance in the sports wagering receipts fund shall not
3be considered part of the balance of the general fund of the
4state. However, the sports wagering receipts fund shall be
5considered a special account for the purposes of section 8.53,
6relating to generally accepted accounting principles.
7b. Moneys in the sports wagering receipts fund are not
8subject to section 8.33. Notwithstanding section 12C.7,
9subsection 2, interest or earnings on moneys in the sports
10wagering receipts fund shall be credited to the fund. Moneys
11in the sports wagering receipts fund may be used for cash flow
12purposes during a fiscal year provided that any moneys so
13allocated are returned to the fund by the end of that fiscal
14year.
15c. Moneys in the sports wagering receipts fund in a fiscal
16year shall be used as directed by the general assembly.
17d. Annually, on or before January 15 of each year, a
18state agency that received an appropriation from the sports
19wagering receipts fund shall report to the legislative services
20agency and the department of management the status of all
21projects completed or in progress. The report shall include
22a description of the project, the progress of work completed,
23the total estimated cost of the project, a list of all revenue
24sources being used to fund the project, the amount of funds
25expended, the amount of funds obligated, and the date the
26project was completed or an estimated completion date of the
27project, where applicable.
28e. Annually, on or before December 31 of each year, a
29recipient of moneys from the sports wagering receipts fund
30for any purpose shall report to the state agency to which the
31moneys are appropriated the status of all projects completed
32or in progress. The report shall include a description of the
33project, the progress of work completed, the total estimated
34cost of the project, a list of all revenue sources being used
35to fund the project, the amount of funds expended, the amount
-27-1of funds obligated, and the date the project was completed or
2an estimated completion date of the project, where applicable.
3 Sec. 48. Section 15E.311, subsection 3, paragraph a, Code
42019, is amended to read as follows:
5a. At the end of each fiscal year, moneys in the fund
6shall be transferred into separate accounts within the fund
7and designated for use by each county in which no licensee
8authorized to conduct gambling games under chapter 99F was
9located during that fiscal year. Moneys transferred to
10county accounts shall be divided equally among the counties.
11Moneys transferred into an account for a county shall be
12transferred by the department to an eligible county recipient
13for that county. Of the moneys transferred, an eligible county
14recipient shall distribute seventy-five percent of the moneys
15as grants to charitable organizations for charitable purposes
16in that county and shall retain twenty-five percent of the
17moneys for use in establishing a permanent endowment fund
18for the benefit of charitable organizations for charitable
19purposes. In addition, of the moneys transferred from moneys
20appropriated to the fund from the sports wagering receipts
21fund created in section 8.57, subsection 6, and distributed,
22eligible county recipients shall give consideration for grants,
23upon application, to a charitable organization that operates
24a racetrack facility that conducts automobile races in that
25county. Of the amounts distributed, eligible county recipients
26shall give special consideration to grants for projects that
27include significant vertical infrastructure components designed
28to enhance quality of life aspects within local communities.
29In addition, as a condition of receiving a grant, the governing
30body of a charitable organization receiving a grant shall
31approve all expenditures of grant moneys and shall allow a
32state audit of expenditures of all grant moneys.
33 Sec. 49. Section 99B.41, Code 2019, is amended by adding the
34following new subsection:
35 NEW SUBSECTION. 1A. “Social fantasy sports contest” means
-28-1any fantasy or simulated game or contest in which the value
2of all prizes and awards offered to winning participants are
3established and made known to the participants in advance of
4the contest and do not exceed a total of one thousand dollars
5or equivalent consideration, all winning outcomes reflect
6the relative knowledge and skill of the participants and
7shall be determined by accumulated statistical results of the
8performance of individuals in events occurring over more than
9a twenty-four-hour period, including athletes in the case of
10sporting events, and no winning outcome is solely based on the
11score, point spread, or any performance or performances of
12any single actual team or solely on any single performance of
13an individual athlete or player in any single actual event.
14“Social fantasy sports contest” does not include an internet
15fantasy sports contest as defined in section 99E.1.
16 Sec. 50. Section 99B.45, subsection 2, Code 2019, is amended
17by adding the following new paragraph:
18 NEW PARAGRAPH. c. A social fantasy sports contest.
19 Sec. 51. Section 99F.6, Code 2019, is amended by adding the
20following new subsection:
21 NEW SUBSECTION. 9. The board of directors of a qualified
22sponsoring organization licensed to operate gambling games
23under this chapter shall be residents of this state and shall
24include, as ex officio, nonvoting members of the board, a
25member of the county board of supervisors and a member of a
26city council for each county and city that has a licensed
27gambling games facility operated by the qualified sponsoring
28organization. The ex officio members shall serve terms of the
29same duration as voting members of the board. However, this
30subsection shall not apply to an agency, instrumentality, or
31political subdivision of the state that is licensed to conduct
32gambling games under this chapter.
33 Sec. 52. EFFECTIVE DATE. The following, being deemed of
34immediate importance, takes effect upon enactment:
35The section of this division of this Act amending section
-29-18.57.
ec/rn/mb
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 an
14initial request by a person to be voluntarily excluded shall be
15for a period of five years or life and any subsequent request
16following any five-year period shall be for a period of five
17years or life. The process established shall require that
18licensees be provided electronic access to names and social
19security numbers of persons voluntarily excluded through a
20secured interactive internet site maintained by the commission
21and information regarding persons voluntarily excluded shall
22be disseminated to all licensees under this chapter, chapter
2399E, and chapter 99F. The names, social security numbers, and
24information regarding persons voluntarily excluded shall be
25kept 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,
31chapter 99E, or chapter 99F shall not be liable to any person
32for any claim which may arise from this process. In addition
33to any other penalty provided by law, any money or thing of
34value that has been obtained by, or is owed to, a voluntarily
35excluded person as a result of wagers made by the person after
-1-1the person has been voluntarily excluded shall be forfeited by
2the person and shall be credited to the general fund of the
3state.
4 Sec. 2. Section 99F.1, subsection 1, Code 2019, is amended
5to read as follows:
61. “Adjusted gross receipts” means the gross receipts less
7winnings paid to wagerers on gambling games. However, “adjusted
8gross receipts” does not include promotional play receipts
9received after the date in any fiscal year that the commission
10determines that the wagering tax imposed pursuant to section
1199F.11 on all licensees in that fiscal year on promotional
12play receipts exceeds twenty-five million eight hundred twenty
13thousand dollars.
14 Sec. 3. Section 99F.1, Code 2019, is amended by adding the
15following new subsections:
16 NEW SUBSECTION. 2A. “Authorized sporting event” means
17a professional sporting event, collegiate sporting event,
18international sporting event, or professional motor race
19event. “Authorized sporting event” does not include a race as
20defined in section 99D.2, a fantasy sports contest as defined
21in section 99E.1, minor league sporting event, or any athletic
22event or competition of an interscholastic sport as defined in
23section 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. “Sports wagering”
10does not include placing a wager on the performance or
11nonperformance of any individual athlete participating in
12a single game or match of a collegiate sporting event in
13which a collegiate team from this state is a participant, or
14placing a wager on the performance of athletes in an individual
15international sporting event governed by the international
16olympic committee in which any participant in the international
17sporting event is under eighteen years of age.
18 NEW SUBSECTION. 24. “Sports wagering area” means an area,
19as designated by the commission, in which sports wagering is
20conducted.
21 NEW SUBSECTION. 25. “Sports wagering net receipts” means
22the gross receipts less winnings paid to wagerers on sports
23wagering.
24 Sec. 4. Section 99F.1, subsection 17, Code 2019, is amended
25to read as follows:
2617. “Licensee” means any person licensed under section 99F.7
27or 99F.7A.
28 Sec. 5. Section 99F.3, Code 2019, is amended to read as
29follows:
3099F.3 Gambling games and sports wagering authorized.
31The system of wagering on a gambling game and sports wagering
32as provided by this chapter is legal, when conducted on an
33excursion gambling boat, gambling structure, or racetrack
34enclosure at authorized locations by a licensee as provided in
35this chapter.
-3-1 Sec. 6. Section 99F.4, subsections 3 and 22, Code 2019, are
2amended to read as follows:
33. To adopt standards under which all excursion gambling
4boat operations shall be held and standards for the facilities
5within which the gambling operations are to be held. The
6commission may authorize the operation of gambling games on
7an excursion gambling boat and sports wagering in a sports
8wagering area which is also licensed to sell or serve alcoholic
9beverages, wine, or beer as defined in section 123.3.
1022. To establish a process to allow a person to be
11voluntarily excluded from advance deposit wagering as defined
12in section 99D.11, from an internet fantasy sports contest as
13defined in section 99E.1, from advance deposit sports wagering
14as defined in section 99F.9, from the gaming floor and sports
15wagering area of an excursion gambling boat, from the wagering
16area, as defined in section 99D.2, and from the gaming floor
17and sports wagering area of all other licensed facilities under
18this chapter and chapter 99D as provided in this subsection.
19The process shall provide that an initial request by a person
20to be voluntarily excluded shall be for a period of five years
21or life and any subsequent request following any five-year
22period shall be for a period of five years or life. The process
23established shall require that licensees be provided electronic
24access to names and social security numbers of persons
25voluntarily excluded through a secured interactive internet
26site maintained by the commission and information regarding
27persons voluntarily excluded shall be disseminated to all
28licensees underthis chapter ,and chapter 99D, and chapter 99E.
29 The names, social security numbers, and information regarding
30persons voluntarily excluded shall be kept confidential
31unless otherwise ordered by a court or by another person
32duly authorized to release such information. The process
33established shall also require a person requesting to be
34voluntarily excluded be provided information compiled by the
35Iowa department of public health on gambling treatment options.
-4-1The state and any licensee under this chapter, or chapter 99D ,
2or chapter 99Eshall not be liable to any person for any claim
3which may arise from this process. In addition to any other
4penalty provided by law, any money or thing of value that has
5been obtained by, or is owed to, a voluntarily excluded person
6as a result of wagers made by the person after the person has
7been voluntarily excluded shall be forfeited by the person and
8shall be credited to the general fund of the state.
9 Sec. 7. Section 99F.4, Code 2019, is amended by adding the
10following new subsection:
11 NEW SUBSECTION. 27. To adopt standards under which all
12sports wagering is conducted, including the scope and type of
13wagers allowed, to identify occupations within sports wagering
14which require licensing, and to adopt standards for licensing
15and background qualifications for occupations including
16establishing fees for the occupational license. All revenue
17received by the commission under this chapter from license fees
18shall be deposited in the general fund of the state and shall
19be subject to the requirements of section 8.60. All revenue
20received by the commission from regulatory fees shall be
21deposited into the gaming regulatory revolving fund established
22in section 99F.20.
23 Sec. 8. Section 99F.5, subsection 1, Code 2019, is amended
24to read as follows:
251. A qualified sponsoring organization may apply to the
26commission for a license to conduct gambling games on an
27excursion gambling boat or gambling structure as provided in
28this chapter. A person may apply to the commission for a
29license to operate an excursion gambling boat. An operating
30agreement entered into on or after May 6, 2004, between
31a qualified sponsoring organization and an operator of an
32excursion gambling boat or gambling structure shall provide for
33a minimum distribution by the qualified sponsoring organization
34for educational, civic, public, charitable, patriotic, or
35religious uses as defined in section 99B.1, that averages at
-5-1least three percent of the adjusted gross receipts for each
2license year and, if applicable, three-quarters of one percent
3of sports wagering net receipts for each license year. The
4application shall be filed with the administrator of the
5commission at least ninety days before the first day of the
6next excursion season as determined by the commission, shall
7identify the excursion gambling boat upon which gambling games
8will be authorized, shall specify the exact location where
9the excursion gambling boat will be docked, and shall be in
10a form and contain information as the commission prescribes.
11The minimum capacity of an excursion gambling boat or gambling
12structure is two hundred fifty persons.
13 Sec. 9. Section 99F.6, subsection 4, paragraph a,
14subparagraphs (2) and (3), Code 2019, are amended to read as
15follows:
16(2) A qualified sponsoring organization licensed to operate
17gambling games under this chapter shall distribute the receipts
18of all gambling games, less reasonable expenses, charges,
19taxes, fees, and deductions allowed under this chapter, as
20winnings to players or participants or shall distribute the
21receipts for educational, civic, public, charitable, patriotic,
22or religious uses as defined in section 99B.1. However, a
23licensee to conduct gambling games under this chapter shall,
24unless an operating agreement for an excursion gambling boat
25otherwise provides, distribute at least three percent of the
26adjusted gross receipts and, if applicable, three-quarters of
27one percent of sports wagering net receipts for each license
28year for educational, civic, public, charitable, patriotic,
29or religious uses as defined in section 99B.1. However, if a
30licensee who is also licensed to conduct pari-mutuel wagering
31at a horse racetrack has unpaid debt from the pari-mutuel
32racetrack operations, the first receipts of the gambling
33games operated within the racetrack enclosure less reasonable
34operating expenses, taxes, and fees allowed under this chapter
35shall be first used to pay the annual indebtedness.
-6- 1(3) The commission shall authorize, subject to the debt
2payments for horse racetracks and the provisions of paragraph
3“b” for dog racetracks, a licensee who is also licensed to
4conduct pari-mutuel dog or horse racing to use receipts
5from gambling games and sports wagering within the racetrack
6enclosure to supplement purses for races particularly for
7Iowa-bred horses pursuant to an agreement which shall be
8negotiated between the licensee and representatives of the
9dog or horse owners. For agreements subject to commission
10approval concerning purses for horse racing beginning on or
11after January 1, 2006, the agreements shall provide that total
12annual purses for all horse racing shall be four percent of
13sports wagering net receipts and no less than eleven percent of
14the first two hundred million dollars of net receipts, and six
15percent of net receipts above two hundred million dollars. In
16addition, live standardbred horse racing shall not be conducted
17at the horse racetrack in Polk county, but the purse moneys
18designated for standardbred racing pursuant to section 99D.7,
19subsection 5, paragraph “b”, shall be included in calculating
20the total annual purses required to be paid pursuant to this
21subsection. Agreements that are subject to commission approval
22concerning horse purses for a period of time beginning on
23or after January 1, 2006, shall be jointly submitted to the
24commission for approval.
25 Sec. 10. NEW SECTION. 99F.7A Sports wagering — license —
26terms and conditions — fees.
271. The commission shall, upon payment of an initial license
28fee of forty-five thousand dollars and submission of an
29application to the commission consistent with the requirements
30of section 99F.6, issue a license to conduct sports wagering
31to a licensee authorized to conduct gambling games at a
32pari-mutuel racetrack enclosure or a licensee authorized to
33operate an excursion gambling boat or gambling structure,
34subject to the requirements of this chapter. The annual
35renewal fee for a license to conduct sports wagering shall be
-7-1ten thousand dollars.
22. A licensee under this section shall do all of the
3following:
4a. Include on the internet site or mobile application used
5by the licensee to conduct advance deposit sports wagering as
6authorized in section 99F.9 the statewide telephone number
7authorized by the Iowa department of public health to provide
8problem gambling information and extensive responsible gaming
9features in addition to those described in section 99F.4,
10subsection 22.
11b. Establish, subject to commission approval, sports
12wagering rules that specify the amounts to be paid on winning
13sports wagers, the effect of changes in the scheduling of an
14authorized sporting event subject to sports wagering, and the
15source of the information used to determine the outcome of a
16sports wager. The sports wagering rules shall be displayed in
17the licensee’s sports wagering area, posted on the internet
18site or mobile application used by the licensee to conduct
19advance deposit sports wagering as authorized in section 99F.9,
20and included in the terms and conditions of the licensee’s
21advance deposit sports wagering system.
223. A licensee under this section may enter into operating
23agreements with one or two entities to have up to a total of
24two individually branded internet sites to conduct advance
25deposit sports wagering for the licensee, unless one additional
26operating agreement or individually branded internet site is
27authorized by the commission.
284. A licensee issued a license to conduct sports wagering
29under this section shall employ reasonable steps to prohibit
30coaches, athletic trainers, officials, players, or other
31individuals who participate in an authorized sporting event
32that is the subject of sports wagering from sports wagering
33under this chapter. In addition, a licensee shall employ
34reasonable steps to prohibit persons who are employed in
35a position with direct involvement with coaches, players,
-8-1athletic trainers, officials, players, or participants in
2an authorized sporting event that is the subject of sports
3wagering from sports wagering under this chapter.
4 Sec. 11. Section 99F.8, Code 2019, is amended to read as
5follows:
699F.8 Bond of licensee.
7A licensee licensed under section 99F.7 shall post a bond
8to the state of Iowa before the license is issued in a sum
9as the commission shall fix, with sureties to be approved by
10the commission. The bond shall be used to guarantee that the
11licensee faithfully makes the payments, keeps its books and
12records and makes reports, and conducts its gambling games and
13sports wagering in conformity with this chapter and the rules
14adopted by the commission. The bond shall not be canceled by
15a surety on less than thirty days’ notice in writing to the
16commission. If a bond is canceled and the licensee fails to
17file a new bond with the commission in the required amount on
18or before the effective date of cancellation, the licensee’s
19license shall be revoked. The total and aggregate liability
20of the surety on the bond is limited to the amount specified in
21the bond.
22 Sec. 12. Section 99F.9, subsection 1, Code 2019, is amended
23to read as follows:
241. Except as permitted in this section, the licensee shall
25not permit no sports wagering or any form of wagering on
26gambling games.
27 Sec. 13. Section 99F.9, Code 2019, is amended by adding the
28following new subsection:
29 NEW SUBSECTION. 3A. a. For the purposes of this section,
30unless the context otherwise requires:
31(1) “Advance deposit sports wagering” means a method of
32sports wagering in which an eligible individual may, in an
33account established with a licensee under section 99F.7A,
34deposit moneys into the account and use the account balance to
35pay for sports wagering. Prior to January 1, 2021, an account
-9-1must be established by an eligible individual in person with
2a licensee.
3(2) “Advance deposit sports wagering operator” means an
4advance deposit sports wagering operator licensed by the
5commission who has entered into an agreement with a licensee
6under section 99F.7A to provide advance deposit sports
7wagering.
8(3) “Eligible individual” means an individual who is at
9least twenty-one years of age or older who is located within
10this state.
11b. The commission may authorize a licensee under section
1299F.7A to conduct advance deposit sports wagering. An advance
13deposit sports wager may be placed in person in the sports
14wagering area, or from any other location via a telephone-type
15device or any other electronic means. The commission may also
16issue an advance deposit sports wagering operator license to
17an entity who complies with this subsection and section 99F.6
18and may require the advance deposit sports wagering operator to
19conduct an audit consistent with the requirements of section
2099F.13.
21c. An unlicensed person taking or receiving sports wagers
22from residents of this state is guilty of a class “D” felony.
23 Sec. 14. Section 99F.9, subsection 4, Code 2019, is amended
24to read as follows:
254. A person under the age of twenty-one years shall not make
26or attempt to make a wager pursuant to subsection 3A or on an
27excursion gambling boat, gambling structure, or in a racetrack
28enclosure and shall not be allowed on the gaming floor of
29an excursion gambling boat or gambling structure or in the
30wagering area, as defined in section 99D.2, or on the gaming
31floor of a racetrack enclosure. However, a person eighteen
32years of age or older may be employed to work on the gaming
33floor of an excursion gambling boat or gambling structure or
34in the wagering area or on the gaming floor of a racetrack
35enclosure. A person who violates this subsection with respect
-10-1to making or attempting to make a wager commits a scheduled
2violation under section 805.8C, subsection 5, paragraph “a”.
3 Sec. 15. Section 99F.11, subsection 3, unnumbered paragraph
41, Code 2019, is amended to read as follows:
5The taxes imposed by this section on adjusted gross receipts
6from gambling games authorized under this chapter shall be paid
7by the licensee to the treasurer of state within ten days after
8the close of the day when the wagers were made and shall be
9distributed as follows:
10 Sec. 16. Section 99F.11, Code 2019, is amended by adding the
11following new subsection:
12 NEW SUBSECTION. 4. a. A tax is imposed on the sports
13wagering net receipts received each fiscal year by a licensed
14operator from sports wagering authorized under this chapter at
15the rate of six and three-quarters percent.
16b. The taxes imposed by this subsection for sports wagering
17authorized under this chapter shall be paid by the licensed
18operator to the treasurer of state as determined by the
19commission and shall be credited as provided in section 8.57,
20subsection 6.
21 Sec. 17. Section 99F.12, subsection 2, Code 2019, is amended
22to read as follows:
232. a. The licensee shall furnish to the commission reports
24and information as the commission may require with respect to
25the licensee’s activities.
26b. A licensee under section 99F.7A shall promptly report
27to the commission any criminal or disciplinary proceedings
28commenced against the licensee or its employees in connection
29with the licensee conducting sports wagering or advance
30deposit sports wagering, any abnormal wagering activity or
31patterns that may indicate a concern about the integrity of an
32authorized sporting event or events, and any other conduct with
33the potential to corrupt a wagering outcome of an authorized
34sporting event for purposes of financial gain, including
35but not limited to match fixing, and suspicious or illegal
-11-1wagering activities, including the use of funds derived from
2illegal activity, wagers to conceal or launder funds derived
3from illegal activity, use of agents to place wagers, or use
4of false identification. The commission is required to share
5any information received pursuant to this paragraph with the
6division of criminal investigation, any other law enforcement
7entity upon request, or any regulatory agency the commission
8deems appropriate. The commission shall promptly report any
9information received pursuant to this paragraph with any
10sports team or sports governing body as the commission deems
11appropriate, but shall not share any information that would
12interfere with an ongoing criminal investigation.
13c. The gross receipts and adjusted gross receipts from
14gambling shall be separately handled and accounted for from
15all other moneys received from operation of an excursion
16gambling boat or from operation of a racetrack enclosure or
17gambling structure licensed to conduct gambling games. The
18commission may designate a representative to board a licensed
19excursion gambling boat or to enter a racetrack enclosure or
20gambling structure licensed to conduct gambling games. The
21representative shall have full access to all places within the
22enclosure of the boat, the gambling structure, or the racetrack
23enclosure and shall directly supervise the handling and
24accounting of all gross receipts and adjusted gross receipts
25from gambling. The representative shall supervise and check
26the admissions. The compensation of a representative shall be
27fixed by the commission but shall be paid by the licensee.
28d. With the approval of the commission, a licensee under
29section 99F.7A shall cooperate with investigations conducted
30by sports governing bodies, including but not limited to
31providing or facilitating the provision of account-level
32betting information and audio or video files relating to
33persons placing wagers. However, a licensee shall not share
34information that would interfere with an ongoing criminal
35investigation.
-12-1 Sec. 18. Section 99F.15, subsection 1, paragraph c, Code
22019, is amended to read as follows:
3c. Acting, or employing a person to act, as a shill or
4decoy to encourage participation in a gambling game or sports
5wagering.
6 Sec. 19. Section 99F.15, subsection 4, paragraphs d, h, and
7i, Code 2019, are amended to read as follows:
8d. Cheats at a gambling game, including but not limited to
9committing any act which alters the outcome of the game, or
10cheats at sports wagering.
11h. Claims, collects, or takes, or attempts to claim,
12collect, or take, money or anything of value in or from the
13gambling games or sports wagering, with intent to defraud,
14without having made a wager contingent on winning a gambling
15game or sports wager, or claims, collects, or takes an amount
16of money or thing of value of greater value than the amount
17won.
18i. Knowingly entices or induces a person to go to any place
19where a gambling game or sports wagering is being conducted or
20operated in violation of the provisions of this chapter with
21the intent that the other person plays or participates in that
22gambling game or sports wagering.
23 Sec. 20. Section 99F.20, subsection 1, Code 2019, is amended
24to read as follows:
251. A gaming regulatory revolving fund is created in
26the state treasury under the control of the department of
27inspections and appeals. The fund shall consist of fees
28collected and deposited into the fund paid by licensees
29pursuant to section 99D.14, subsection 2, paragraph “c”, fees
30paid by licensees pursuant to section 99E.5, subsection 4,
31paragraph “c”, regulatory fees paid by licensees pursuant
32to section 99F.4, subsection 27, and fees paid by licensees
33pursuant to section 99F.10, subsection 4, paragraph “c”. All
34costs relating to racetrack, excursion boat, and gambling
35structure, internet fantasy sports contests as defined in
-13-1section 99E.1, and sports wagering regulation shall be paid
2from the fund as provided in appropriations made for this
3purpose by the general assembly. The department shall provide
4quarterly reports to the department of management and the
5legislative services agency specifying revenues billed and
6collected and expenditures from the fund in a format as
7determined by the department of management in consultation with
8the legislative services agency.
9 Sec. 21. EMERGENCY RULES. The state racing and gaming
10commission created under section 99D.5 may adopt emergency
11rules under section 17A.4, subsection 3, and section 17A.5,
12subsection 2, paragraph “b”, to implement the provisions of
13this division of this Act and the rules shall be effective
14immediately upon filing unless a later date is specified in the
15rules but in no event earlier than July 4, 2019. Any rules
16adopted in accordance with this section shall also be published
17as a notice of intended action as provided in section 17A.4.
18 Sec. 22. IMPLEMENTATION. The racing and gaming commission
19shall not implement this division of this Act until the later
20of July 4, 2019, or the date the commission has adopted rules
21pursuant to chapter 17A providing for such implementation and
22such rules have become effective.
23 Sec. 23. EFFECTIVE DATE. This division of this Act, being
24deemed of immediate importance, takes effect upon enactment.
25DIVISION II
26FANTASY SPORTS CONTESTS
27 Sec. 24. Section 80.25A, Code 2019, is amended to read as
28follows:
2980.25A Pari-mutuel and gambling game Gaming operations
30 investigation and enforcement.
31The commissioner of public safety shall direct the chief
32of the division of criminal investigation to establish a
33subdivision to be the primary criminal investigative and
34enforcement agency for the purpose of enforcement of chapters
3599D, 99E, and 99F. The commissioner of public safety shall
-14-1appoint or assign other agents to the division as necessary to
2enforce chapters 99D, 99E, and 99F. All enforcement officers,
3assistants, and agents of the division are subject to section
480.15 except clerical workers.
5 Sec. 25. Section 80.43, subsection 1, Code 2019, is amended
6to read as follows:
71. A gaming enforcement revolving fund is created in the
8state treasury under the control of the department. The fund
9shall consist of fees collected and deposited into the fund
10paid by licensees pursuant to section 99D.14, subsection 2,
11paragraph “b”, fees and costs paid by applicants pursuant
12to section 99E.4, subsection 4, and fees paid by licensees
13pursuant to section 99F.10, subsection 4, paragraph “b”. All
14costs for agents and officers plus any direct support costs
15for such agents and officers of the division of criminal
16investigation’s racetrack, excursion boat, or gambling
17structure, and internet fantasy sports contests as defined in
18section 99E.1 enforcement activities shall be paid from the
19fund as provided in appropriations made for this purpose by the
20general assembly.
21 Sec. 26. NEW SECTION. 99E.1 Definitions.
22As used in this chapter, unless the context otherwise
23requires:
241. “Applicant” means an internet fantasy sports contest
25service provider applying for a license to conduct internet
26fantasy sports contests under this chapter.
272. “Commission” means the state racing and gaming commission
28created under section 99D.5.
293. “Fantasy sports contest” includes any fantasy or
30simulated game or contest in which the fantasy sports contest
31operator is not a participant in the game or contest, the value
32of all prizes and awards offered to winning participants are
33established and made known to the participants in advance
34of the contest, all winning outcomes reflect the relative
35knowledge and skill of the participants and shall be determined
-15-1by accumulated statistical results of the performance of
2individuals, including athletes in the case of sporting events,
3and no winning outcome is solely based on the score, point
4spread, or any performance or performances of any single actual
5team or solely on any single performance of an individual
6athlete or player in any single actual event. However, until
7May 1, 2020, “fantasy sports contest” does not include any
8fantasy or simulated game or contest in which any winning
9outcomes are based on statistical results from a collegiate
10sporting event as defined in section 99F.1.
114. “Internet fantasy sports contest” means a method of
12entering a fantasy sports contest by which a person may
13establish an account with an internet fantasy sports contest
14service provider, deposit money into the account, and use
15the account balance for entering a fantasy sports contest by
16utilizing electronic communication.
175. “Internet fantasy sports contest adjusted revenues” means,
18for each internet fantasy sports contest, the amount equal to
19the total charges and fees collected from all participants
20entering the internet fantasy sports contest less winnings paid
21to participants in the contest, multiplied by the location
22percentage.
236. “Internet fantasy sports contest player” means a person
24who is at least twenty-one years of age and participates in an
25internet fantasy sports contest operated by an internet fantasy
26sports contest service provider.
277. “Internet fantasy sports contest service provider” means
28a person, including a licensee under chapter 99D or 99F, who
29conducts an internet fantasy sports contest as authorized by
30this chapter.
318. “Licensee” means any person licensed under section 99E.5
32to conduct internet fantasy sports contests.
339. “Location percentage” means, for each internet fantasy
34sports contest, the percentage, rounded to the nearest tenth of
35a percent, equal to the total charges and fees collected from
-16-1all internet fantasy sports contest players located in this
2state divided by the total charges and fees collected from all
3participants in the internet fantasy sports contest.
4 Sec. 27. NEW SECTION. 99E.2 Internet fantasy sports
5contests authorized.
6The system of entering an internet fantasy sports contest as
7provided by this chapter is legal when conducted by a licensed
8internet fantasy sports contest service provider as provided in
9this chapter.
10 Sec. 28. NEW SECTION. 99E.3 Commission — powers.
111. The commission shall have full jurisdiction over and
12shall supervise internet fantasy sports contests and internet
13fantasy sports contest service providers as governed by this
14chapter.
152. The commission shall have the following powers and shall
16adopt rules pursuant to chapter 17A to administer and implement
17this chapter:
18a. To review and investigate applicants and determine the
19eligibility of applicants for a license to conduct internet
20fantasy sports contests, pursuant to rules adopted by the
21commission.
22b. To license and regulate internet fantasy sports contest
23service providers subject to the requirements of this chapter.
24c. To provide for the prevention of practices detrimental to
25the public and to provide for the best interests of internet
26fantasy sports contests.
27d. To investigate alleged violations of this chapter
28or the commission rules, orders, or final decisions and to
29take appropriate disciplinary action against a licensee, or
30institute appropriate legal action for enforcement, or both.
31Information gathered during an investigation is confidential
32during the pendency of the investigation.
33e. To assess fines and revoke or suspend licenses and to
34impose penalties for violations of this chapter.
35f. To take any other action as may be reasonable or
-17-1appropriate to enforce this chapter and the commission rules.
2 Sec. 29. NEW SECTION. 99E.4 Requirements of applicant —
3fee.
41. An applicant for a license to conduct internet fantasy
5sports contests shall complete and sign an application on
6the form prescribed and published by the commission. The
7application shall include such information of the applicant
8that the commission deems necessary for purposes of issuing a
9license pursuant to this chapter.
102. An applicant shall submit fingerprints and information
11that the commission deems necessary to the commission in the
12manner prescribed on the application forms. The fingerprints
13may be submitted to the federal bureau of investigation by
14the department of public safety through the state criminal
15history repository for the purpose of a national criminal
16history check. The results of a criminal history record check
17conducted pursuant to this subsection shall be considered a
18confidential record under chapter 22.
193. Before a license is granted, the division of criminal
20investigation of the department of public safety shall conduct
21a thorough background investigation of the applicant for a
22license to conduct internet fantasy sports contests. The
23applicant shall provide information on a form as required by
24the division of criminal investigation.
254. The commission shall charge the applicant a reasonable
26fee set by the division of criminal investigation of the
27department of public safety, to defray those costs associated
28with the fingerprint and national criminal history check
29requirements of subsection 2 and background investigations
30conducted by agents of the division of criminal investigation
31as provided in subsection 3. These fees and costs are in
32addition to any other license fees and costs charged by the
33commission. The fees and costs received by the commission
34shall be deposited in the gaming enforcement revolving fund
35established in section 80.43.
-18- 15. The commission shall not grant a license to an applicant
2if there is substantial evidence that any of the following
3apply:
4a. A license issued to the applicant to conduct internet
5fantasy sports contests in another jurisdiction has been
6revoked, or a request for a license to conduct internet fantasy
7sports contests in another jurisdiction has been denied, by
8an entity licensing persons to conduct such contests in that
9jurisdiction.
10b. The applicant has not demonstrated financial
11responsibility sufficient to adequately meet the requirements
12of the enterprise proposed.
13c. The applicant does not adequately disclose the true
14owners of the enterprise proposed.
15d. The applicant has knowingly made a false statement of a
16material fact to the commission.
17e. The applicant has failed to meet a monetary obligation in
18connection with conducting an internet fantasy sports contest.
19f. The applicant is not of good repute and moral character
20or the applicant has pled guilty to, or has been convicted of,
21a felony.
22g. Any member of the board of directors of the applicant is
23not twenty-one years of age or older.
246. A person who knowingly makes a false statement on the
25application is guilty of an aggravated misdemeanor.
267. For the purposes of this section, “applicant” includes
27each member of the board of directors of an internet fantasy
28sports contest service provider.
29 Sec. 30. NEW SECTION. 99E.5 Licenses — fees — terms and
30conditions — revocation.
311. If the commission is satisfied that the requirements
32of this chapter and its rules adopted under this chapter
33applicable to licensees have been or will be complied with, the
34commission shall, upon payment of an initial license fee of
35five thousand dollars, issue a license for a period of not more
-19-1than three years to an applicant to conduct internet fantasy
2sports contests in this state.
32. A licensed internet fantasy sports contest service
4provider shall use reasonable methods to comply with all of the
5following requirements:
6a. Prevent employees of the internet fantasy sports contest
7service provider and relatives living in the same household of
8such employees from competing in any internet fantasy sports
9contest on the service provider’s digital platform in which the
10service provider offers a cash prize to the public.
11b. Verify that an internet fantasy sports contest player
12located in this state is twenty-one years of age or older.
13c. Ensure that coaches, officials, players, contestants,
14or other individuals who participate in a game or contest
15that is the subject of an internet fantasy sports contest are
16restricted from entering an internet fantasy sports contest in
17which the outcome is determined, in whole or in part, by the
18accumulated statistical results of a team of individuals in the
19game or contest in which they participate.
20d. Include on the internet site or mobile application used
21by the licensee to conduct internet fantasy sports contests the
22statewide telephone number authorized by the Iowa department
23of public health to provide problem gambling information and
24extensive responsible gaming features in addition to those
25described in section 99F.4, subsection 22.
26e. Allow individuals to establish an account with an
27internet fantasy sports contest service provider by utilizing
28electronic communication.
29f. Disclose the number of entries a single internet fantasy
30sports contest player may submit to each internet fantasy
31sports contest and take reasonable steps to prevent players
32from submitting more than the allowable number of entries for
33that internet fantasy sports contest.
34g. Segregate internet fantasy sports contest player funds
35from operational funds or maintain a reserve in the form of
-20-1cash, cash equivalents, an irrevocable letter of credit,
2payment processor reserves and receivables, a bond, or a
3combination thereof in the amount of the deposits in internet
4fantasy sports contest player accounts for the benefit and
5protection of internet fantasy sports contest player funds held
6in internet fantasy sports contest accounts by the internet
7fantasy sports contest service provider.
8h. Conduct an annual audit under section 99E.9.
9i. Pay the tax as provided in section 99E.6.
103. The annual license fee to conduct internet fantasy sports
11contests shall be one thousand dollars or, for a licensed
12internet fantasy sports contest service provider with total
13annual internet fantasy sports contest adjusted revenues for
14the year prior to the annual license fee renewal date of
15one hundred fifty thousand dollars or greater, five thousand
16dollars. Moneys collected by the commission from the license
17fees paid under this section shall be considered repayment
18receipts as defined in section 8.2.
194. a. A licensed internet fantasy sports contest service
20provider shall pay a regulatory fee to the commission. The
21regulatory fee shall be established by the commission based on
22the costs of administering and enforcing this chapter.
23b. A licensed internet fantasy sports contest service
24provider shall receive a credit for the amount of the
25regulatory fee paid by the provider against the taxes to be
26paid pursuant to section 99E.6.
27c. Notwithstanding section 8.60, the portion of the fee
28paid pursuant to paragraph “a” relating to the costs of the
29commission shall be deposited into the gaming regulatory
30revolving fund established in section 99F.20.
315. Upon a violation of any of the conditions listed in
32section 99E.4 or this section by a licensee, the commission
33shall immediately revoke the license.
34 Sec. 31. NEW SECTION. 99E.6 Internet fantasy sports contest
35tax — rate.
-21- 11. A tax is imposed on internet fantasy sports contest
2adjusted revenues received each fiscal year by an internet
3fantasy sports contest service provider from internet fantasy
4sports contests authorized under this chapter at the rate of
5six and three-quarters percent.
62. The taxes imposed by this section for internet fantasy
7sports contests authorized under this chapter shall be paid by
8the internet fantasy sports contest service provider to the
9treasurer of state as determined by the commission and shall be
10credited as provided in section 8.57, subsection 6.
11 Sec. 32. NEW SECTION. 99E.7 Internet fantasy sports
12contests — age restrictions.
13A person under the age of twenty-one years shall not enter an
14internet fantasy sports contest. A person who violates this
15section with respect to entering an internet fantasy sports
16contest commits a scheduled violation under section 805.8C,
17subsection 12.
18 Sec. 33. NEW SECTION. 99E.8 Licensees — records — reports
19— confidentiality.
201. An internet fantasy sports contest service provider
21shall keep its books and records so as to clearly show the
22internet fantasy sports contest adjusted revenues for each
23internet fantasy sports contest subject to tax in this state.
242. a. The licensee shall furnish to the commission reports
25and information as the commission may require with respect to
26the licensee’s activities.
27b. A licensee shall promptly report to the commission any
28criminal or disciplinary proceedings commenced against the
29licensee or its employees in connection with the licensee
30conducting an internet fantasy sports contest, any abnormal
31contest activity or patterns that may indicate a concern about
32the integrity of an internet fantasy sports contest, and any
33other conduct with the potential to corrupt an outcome of an
34internet fantasy sports contest for purposes of financial gain,
35including but not limited to match fixing, and suspicious or
-22-1illegal internet fantasy sports contest activities, including
2the use of funds derived from illegal activity, deposits of
3money to enter an internet fantasy sports contest to conceal
4or launder funds derived from illegal activity, use of agents
5to enter an internet fantasy sports contest, or use of false
6identification. The commission is required to share any
7information received pursuant to this paragraph with the
8division of criminal investigation, any other law enforcement
9entity upon request, or any regulatory agency the commission
10deems appropriate. The commission shall promptly report any
11information received pursuant to this paragraph with any
12sports team or sports governing body as the commission deems
13appropriate, but shall not share any information that would
14interfere with an ongoing criminal investigation.
153. Except as provided in subsection 4, the books and records
16kept by a licensee as provided by this section are public
17records and the examination, publication, and dissemination of
18the books and records are governed by the provisions of chapter
1922.
204. The records of the commission shall be governed by the
21provisions of chapter 22, provided that, in addition to records
22that may be kept confidential pursuant to section 22.7, the
23following records provided by a licensee to the commission
24shall be kept confidential, unless otherwise ordered by a
25court, by the lawful custodian of the records, or by another
26person duly authorized to release such information:
27a. Patron and customer records.
28b. Security reports and network audits.
29c. Internal control and compliance records.
30d. Employee records.
31e. Marketing expenses.
32f. Supplemental schedules to the certified audit, except for
33those books and records as described in subsection 1 of this
34section, that are obtained by the commission in connection with
35the annual audit under section 99E.9.
-23- 1g. Any information specifically requested for inspection by
2the commission or a representative of the commission.
3 Sec. 34. NEW SECTION. 99E.9 Annual audit of licensee
4operations.
5Within one hundred eighty days after the end of the
6licensee’s fiscal year, the licensee shall transmit to the
7commission an audit of the licensee’s total internet fantasy
8sports contest operations, including an itemization of all
9expenses and subsidies. Each audit shall be conducted by a
10certified public accountant authorized to practice in the state
11of Iowa under chapter 542 who is selected by the licensee and
12approved by the commission.
13 Sec. 35. NEW SECTION. 99E.10 Civil penalty.
14A person who willfully fails to comply with the requirements
15of this chapter and the rules adopted pursuant to chapter 17A
16under this chapter shall be liable for a civil penalty of not
17more than one thousand dollars for each violation, not to
18exceed ten thousand dollars for violations arising out of the
19same transaction or occurrence, which shall accrue to the state
20and may be recovered in a civil action.
21 Sec. 36. Section 99F.2, Code 2019, is amended to read as
22follows:
2399F.2 Scope of provisions.
24This chapter does not apply to the pari-mutuel system of
25wagering used or intended to be used in connection with the
26horse-race or dog-race meetings as authorized under chapter
2799D, internet fantasy sports contests authorized under chapter
2899E, lottery or lotto games authorized under chapter 99G, or
29bingo or games of skill or chance authorized under chapter 99B.
30 Sec. 37. Section 99F.4B, Code 2019, is amended to read as
31follows:
3299F.4B Rules.
33The department of inspections and appeals shall cooperate
34to the maximum extent possible with the division of criminal
35investigation in adopting rules relating to the gaming
-24-1operations in this chapter and chapter chapters 99D and 99E.
2 Sec. 38. Section 232C.4, subsection 3, Code 2019, is amended
3to read as follows:
43. An emancipated minor shall remain subject to voting
5restrictions under chapter 48A, gambling restrictions under
6chapter 99B, 99D, 99F, 99G, or 725, internet fantasy sports
7contest restrictions under chapter 99E, alcohol restrictions
8under chapter 123, compulsory attendance requirements under
9chapter 299, and cigarette tobacco restrictions under chapter
10453A.
11 Sec. 39. Section 714B.10, subsection 1, Code 2019, is
12amended to read as follows:
131. Advertising by sponsors registered pursuant to chapter
14557B, licensed pursuant to chapter 99B, or regulated pursuant
15to chapter 99D, 99E, 99F, or 99G.
16 Sec. 40. Section 725.7, subsection 1, paragraph e, Code
172019, is amended to read as follows:
18e. Engage in bookmaking, except as permitted in chapters 99E
19and 99F.
20 Sec. 41. Section 725.13, Code 2019, is amended to read as
21follows:
22725.13 Definition of bookmaking.
23“Bookmaking” means advancing gambling activity by accepting
24bets upon the outcome of future contingent events as a business
25other than as permitted in chapters 99B, 99D, 99E, and 99F.
26These events include, but are not limited to, the results of
27a trial or contest of skill, speed, power, or endurance of
28a person or beast or between persons, beasts, fowl, motor
29vehicles, or mechanical apparatus or upon the result of any
30chance, casualty, unknown, or contingent event.
31 Sec. 42. Section 725.15, Code 2019, is amended to read as
32follows:
33725.15 Exceptions for legal gambling.
34Sections 725.5 through 725.10 and 725.12 do not apply to
35a game, activity, ticket, or device when lawfully possessed,
-25-1used, conducted, or participated in pursuant to chapter 99B,
299E, 99F, or 99G.
3 Sec. 43. Section 805.8C, Code 2019, is amended by adding the
4following new subsection:
5 NEW SUBSECTION. 12. Internet fantasy sports contest
6violations. For violations of legal age for entering an
7internet fantasy sports contest under section 99E.7, the
8scheduled fine is five hundred dollars. Failure to pay the
9fine by a person under the age of eighteen shall not result in
10the person being detained in a secure facility.
11 Sec. 44. EMERGENCY RULES. The state racing and gaming
12commission created under section 99D.5 may adopt emergency
13rules under section 17A.4, subsection 3, and section 17A.5,
14subsection 2, paragraph “b”, to implement the provisions of
15this division of this Act and the rules shall be effective
16immediately upon filing unless a later date is specified in the
17rules but in no event earlier than July 4, 2019. Any rules
18adopted in accordance with this section shall also be published
19as a notice of intended action as provided in section 17A.4.
20 Sec. 45. IMPLEMENTATION. The racing and gaming commission
21shall not implement this division of this Act until the later
22of July 4, 2019, or the date the commission has adopted rules
23pursuant to chapter 17A providing for such implementation and
24such rules have become effective.
25 Sec. 46. EFFECTIVE DATE. This division of this Act, being
26deemed of immediate importance, takes effect upon enactment.
27DIVISION III
28GAMBLING REGULATION
29 Sec. 47. Section 8.57, Code 2019, is amended by adding the
30following new subsection:
31 NEW SUBSECTION. 6. a. A sports wagering receipts fund is
32created under the authority of the department of management.
33The fund shall consist of appropriations made to the fund and
34transfers of interest, earnings, and moneys from other funds
35or sources as provided by law. The sports wagering receipts
-26-1fund shall be separate from the general fund of the state and
2the balance in the sports wagering receipts fund shall not
3be considered part of the balance of the general fund of the
4state. However, the sports wagering receipts fund shall be
5considered a special account for the purposes of section 8.53,
6relating to generally accepted accounting principles.
7b. Moneys in the sports wagering receipts fund are not
8subject to section 8.33. Notwithstanding section 12C.7,
9subsection 2, interest or earnings on moneys in the sports
10wagering receipts fund shall be credited to the fund. Moneys
11in the sports wagering receipts fund may be used for cash flow
12purposes during a fiscal year provided that any moneys so
13allocated are returned to the fund by the end of that fiscal
14year.
15c. Moneys in the sports wagering receipts fund in a fiscal
16year shall be used as directed by the general assembly.
17d. Annually, on or before January 15 of each year, a
18state agency that received an appropriation from the sports
19wagering receipts fund shall report to the legislative services
20agency and the department of management the status of all
21projects completed or in progress. The report shall include
22a description of the project, the progress of work completed,
23the total estimated cost of the project, a list of all revenue
24sources being used to fund the project, the amount of funds
25expended, the amount of funds obligated, and the date the
26project was completed or an estimated completion date of the
27project, where applicable.
28e. Annually, on or before December 31 of each year, a
29recipient of moneys from the sports wagering receipts fund
30for any purpose shall report to the state agency to which the
31moneys are appropriated the status of all projects completed
32or in progress. The report shall include a description of the
33project, the progress of work completed, the total estimated
34cost of the project, a list of all revenue sources being used
35to fund the project, the amount of funds expended, the amount
-27-1of funds obligated, and the date the project was completed or
2an estimated completion date of the project, where applicable.
3 Sec. 48. Section 15E.311, subsection 3, paragraph a, Code
42019, is amended to read as follows:
5a. At the end of each fiscal year, moneys in the fund
6shall be transferred into separate accounts within the fund
7and designated for use by each county in which no licensee
8authorized to conduct gambling games under chapter 99F was
9located during that fiscal year. Moneys transferred to
10county accounts shall be divided equally among the counties.
11Moneys transferred into an account for a county shall be
12transferred by the department to an eligible county recipient
13for that county. Of the moneys transferred, an eligible county
14recipient shall distribute seventy-five percent of the moneys
15as grants to charitable organizations for charitable purposes
16in that county and shall retain twenty-five percent of the
17moneys for use in establishing a permanent endowment fund
18for the benefit of charitable organizations for charitable
19purposes. In addition, of the moneys transferred from moneys
20appropriated to the fund from the sports wagering receipts
21fund created in section 8.57, subsection 6, and distributed,
22eligible county recipients shall give consideration for grants,
23upon application, to a charitable organization that operates
24a racetrack facility that conducts automobile races in that
25county. Of the amounts distributed, eligible county recipients
26shall give special consideration to grants for projects that
27include significant vertical infrastructure components designed
28to enhance quality of life aspects within local communities.
29In addition, as a condition of receiving a grant, the governing
30body of a charitable organization receiving a grant shall
31approve all expenditures of grant moneys and shall allow a
32state audit of expenditures of all grant moneys.
33 Sec. 49. Section 99B.41, Code 2019, is amended by adding the
34following new subsection:
35 NEW SUBSECTION. 1A. “Social fantasy sports contest” means
-28-1any fantasy or simulated game or contest in which the value
2of all prizes and awards offered to winning participants are
3established and made known to the participants in advance of
4the contest and do not exceed a total of one thousand dollars
5or equivalent consideration, all winning outcomes reflect
6the relative knowledge and skill of the participants and
7shall be determined by accumulated statistical results of the
8performance of individuals in events occurring over more than
9a twenty-four-hour period, including athletes in the case of
10sporting events, and no winning outcome is solely based on the
11score, point spread, or any performance or performances of
12any single actual team or solely on any single performance of
13an individual athlete or player in any single actual event.
14“Social fantasy sports contest” does not include an internet
15fantasy sports contest as defined in section 99E.1.
16 Sec. 50. Section 99B.45, subsection 2, Code 2019, is amended
17by adding the following new paragraph:
18 NEW PARAGRAPH. c. A social fantasy sports contest.
19 Sec. 51. Section 99F.6, Code 2019, is amended by adding the
20following new subsection:
21 NEW SUBSECTION. 9. The board of directors of a qualified
22sponsoring organization licensed to operate gambling games
23under this chapter shall be residents of this state and shall
24include, as ex officio, nonvoting members of the board, a
25member of the county board of supervisors and a member of a
26city council for each county and city that has a licensed
27gambling games facility operated by the qualified sponsoring
28organization. The ex officio members shall serve terms of the
29same duration as voting members of the board. However, this
30subsection shall not apply to an agency, instrumentality, or
31political subdivision of the state that is licensed to conduct
32gambling games under this chapter.
33 Sec. 52. EFFECTIVE DATE. The following, being deemed of
34immediate importance, takes effect upon enactment:
35The section of this division of this Act amending section
-29-18.57.
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