Senate File 617 - EnrolledAn Actrelating to gambling regulation and wagering, by
providing for sports wagering and fantasy sports contests,
providing for taxes and fees, making penalties applicable,
and including implementation and effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
DIVISION I
SPORTS WAGERING
Section 1. Section 99D.7, subsection 23, Code 2019, is
amended to read as follows:
23. To establish a process to allow a person to be
voluntarily excluded from advance deposit wagering as defined
in section 99D.11, from an internet fantasy sports contest
as defined in section 99E.1, from advance deposit sports
wagering as defined in section 99F.9, from the wagering area
of a racetrack enclosure and from the gaming floor and sports
wagering area, as defined in section 99F.1, of all other
licensed facilities under this chapter and chapter 99F as
provided in this subsection. The process shall provide that an
initial request by a person to be voluntarily excluded shall be
for a period of five years or life and any subsequent request
following any five-year period shall be for a period of five
years or life. The process established shall require that
licensees be provided electronic access to names and social
security numbers of persons voluntarily excluded through a
secured interactive internet site maintained by the commission
and information regarding persons voluntarily excluded shall
be disseminated to all licensees under this chapter, chapter
99E, and chapter 99F. The names, social security numbers, and
information regarding persons voluntarily excluded shall be
kept confidential unless otherwise ordered by a court or by
another person duly authorized to release such information.
The process established shall also require a person requesting
to be voluntarily excluded be provided information compiled
by the Iowa department of public health on gambling treatment
options. The state and any licensee under this chapter,
chapter 99E, or chapter 99F shall not be liable to any person
for any claim which may arise from this process. In addition
to any other penalty provided by law, any money or thing of
value that has been obtained by, or is owed to, a voluntarily
excluded person as a result of wagers made by the person after
-1-the person has been voluntarily excluded shall be forfeited by
the person and shall be credited to the general fund of the
state.
Sec. 2. Section 99F.1, subsection 1, Code 2019, is amended
to read as follows:
1. “Adjusted gross receipts” means the gross receipts less
winnings paid to wagerers on gambling games. However, “adjusted
gross receipts” does not include promotional play receipts
received after the date in any fiscal year that the commission
determines that the wagering tax imposed pursuant to section
99F.11 on all licensees in that fiscal year on promotional
play receipts exceeds twenty-five million eight hundred twenty
thousand dollars.
Sec. 3. Section 99F.1, Code 2019, is amended by adding the
following new subsections:
NEW SUBSECTION. 2A. “Authorized sporting event” means
a professional sporting event, collegiate sporting event,
international sporting event, or professional motor race
event. “Authorized sporting event” does not include a race as
defined in section 99D.2, a fantasy sports contest as defined
in section 99E.1, minor league sporting event, or any athletic
event or competition of an interscholastic sport as defined in
section 9A.102.
NEW SUBSECTION. 4A. “Collegiate sporting event” means an
athletic event or competition of an intercollegiate sport as
defined in section 9A.102.
NEW SUBSECTION. 16A. “International sporting event” means
an international team or individual sporting event governed by
an international sports federation or sports governing body,
including sporting events governed by the international olympic
committee and the international federation of association
football.
NEW SUBSECTION. 18A. “Minor league sporting event” means
a sporting event conducted by a sports league which is not
regarded as the premier league in the sport as determined by
-2-the commission.
NEW SUBSECTION. 19A. “Professional sporting event” means an
event, excluding a minor league sporting event, at which two
or more persons participate in sports or athletic events and
receive compensation in excess of actual expenses for their
participation in such event.
NEW SUBSECTION. 23. “Sports wagering” means the acceptance
of wagers on an authorized sporting event by any system of
wagering as authorized by the commission. “Sports wagering”
does not include placing a wager on the performance or
nonperformance of any individual athlete participating in
a single game or match of a collegiate sporting event in
which a collegiate team from this state is a participant, or
placing a wager on the performance of athletes in an individual
international sporting event governed by the international
olympic committee in which any participant in the international
sporting event is under eighteen years of age.
NEW SUBSECTION. 24. “Sports wagering area” means an area,
as designated by the commission, in which sports wagering is
conducted.
NEW SUBSECTION. 25. “Sports wagering net receipts” means
the gross receipts less winnings paid to wagerers on sports
wagering.
Sec. 4. Section 99F.1, subsection 17, Code 2019, is amended
to read as follows:
17. “Licensee” means any person licensed under section 99F.7
or 99F.7A.
Sec. 5. Section 99F.3, Code 2019, is amended to read as
follows:
99F.3 Gambling games and sports wagering authorized.
The system of wagering on a gambling game and sports wagering
as provided by this chapter is legal, when conducted on an
excursion gambling boat, gambling structure, or racetrack
enclosure at authorized locations by a licensee as provided in
this chapter.
-3- Sec. 6. Section 99F.4, subsections 3 and 22, Code 2019, are
amended to read as follows:
3. To adopt standards under which all excursion gambling
boat operations shall be held and standards for the facilities
within which the gambling operations are to be held. The
commission may authorize the operation of gambling games on
an excursion gambling boat and sports wagering in a sports
wagering area which is also licensed to sell or serve alcoholic
beverages, wine, or beer as defined in section 123.3.
22. To establish a process to allow a person to be
voluntarily excluded from advance deposit wagering as defined
in section 99D.11, from an internet fantasy sports contest as
defined in section 99E.1, from advance deposit sports wagering
as defined in section 99F.9, from the gaming floor and sports
wagering area of an excursion gambling boat, from the wagering
area, as defined in section 99D.2, and from the gaming floor
and sports wagering area of all other licensed facilities under
this chapter and chapter 99D as provided in this subsection.
The process shall provide that an initial request by a person
to be voluntarily excluded shall be for a period of five years
or life and any subsequent request following any five-year
period shall be for a period of five years or life. The process
established shall require that licensees be provided electronic
access to names and social security numbers of persons
voluntarily excluded through a secured interactive internet
site maintained by the commission and information regarding
persons voluntarily excluded shall be disseminated to all
licensees under this chapter ,and chapter 99D, and chapter 99E.
The names, social security numbers, and information regarding
persons voluntarily excluded shall be kept confidential
unless otherwise ordered by a court or by another person
duly authorized to release such information. The process
established shall also require a person requesting to be
voluntarily excluded be provided information compiled by the
Iowa department of public health on gambling treatment options.
-4-The state and any licensee under this chapter, or chapter 99D,
or chapter 99E shall not be liable to any person for any claim
which may arise from this process. In addition to any other
penalty provided by law, any money or thing of value that has
been obtained by, or is owed to, a voluntarily excluded person
as a result of wagers made by the person after the person has
been voluntarily excluded shall be forfeited by the person and
shall be credited to the general fund of the state.
Sec. 7. Section 99F.4, Code 2019, is amended by adding the
following new subsection:
NEW SUBSECTION. 27. To adopt standards under which all
sports wagering is conducted, including the scope and type of
wagers allowed, to identify occupations within sports wagering
which require licensing, and to adopt standards for licensing
and background qualifications for occupations including
establishing fees for the occupational license. All revenue
received by the commission under this chapter from license fees
shall be deposited in the general fund of the state and shall
be subject to the requirements of section 8.60. All revenue
received by the commission from regulatory fees shall be
deposited into the gaming regulatory revolving fund established
in section 99F.20.
Sec. 8. Section 99F.5, subsection 1, Code 2019, is amended
to read as follows:
1. A qualified sponsoring organization may apply to the
commission for a license to conduct gambling games on an
excursion gambling boat or gambling structure as provided in
this chapter. A person may apply to the commission for a
license to operate an excursion gambling boat. An operating
agreement entered into on or after May 6, 2004, between
a qualified sponsoring organization and an operator of an
excursion gambling boat or gambling structure shall provide for
a minimum distribution by the qualified sponsoring organization
for educational, civic, public, charitable, patriotic, or
religious uses as defined in section 99B.1, that averages at
-5-least three percent of the adjusted gross receipts for each
license year and, if applicable, three-quarters of one percent
of sports wagering net receipts for each license year. The
application shall be filed with the administrator of the
commission at least ninety days before the first day of the
next excursion season as determined by the commission, shall
identify the excursion gambling boat upon which gambling games
will be authorized, shall specify the exact location where
the excursion gambling boat will be docked, and shall be in
a form and contain information as the commission prescribes.
The minimum capacity of an excursion gambling boat or gambling
structure is two hundred fifty persons.
Sec. 9. Section 99F.6, subsection 4, paragraph a,
subparagraphs (2) and (3), Code 2019, are amended to read as
follows:
(2) A qualified sponsoring organization licensed to operate
gambling games under this chapter shall distribute the receipts
of all gambling games, less reasonable expenses, charges,
taxes, fees, and deductions allowed under this chapter, as
winnings to players or participants or shall distribute the
receipts for educational, civic, public, charitable, patriotic,
or religious uses as defined in section 99B.1. However, a
licensee to conduct gambling games under this chapter shall,
unless an operating agreement for an excursion gambling boat
otherwise provides, distribute at least three percent of the
adjusted gross receipts and, if applicable, three-quarters of
one percent of sports wagering net receipts for each license
year for educational, civic, public, charitable, patriotic,
or religious uses as defined in section 99B.1. However, if a
licensee who is also licensed to conduct pari-mutuel wagering
at a horse racetrack has unpaid debt from the pari-mutuel
racetrack operations, the first receipts of the gambling
games operated within the racetrack enclosure less reasonable
operating expenses, taxes, and fees allowed under this chapter
shall be first used to pay the annual indebtedness.
-6- (3) The commission shall authorize, subject to the debt
payments for horse racetracks and the provisions of paragraph
“b” for dog racetracks, a licensee who is also licensed to
conduct pari-mutuel dog or horse racing to use receipts
from gambling games and sports wagering within the racetrack
enclosure to supplement purses for races particularly for
Iowa-bred horses pursuant to an agreement which shall be
negotiated between the licensee and representatives of the
dog or horse owners. For agreements subject to commission
approval concerning purses for horse racing beginning on or
after January 1, 2006, the agreements shall provide that total
annual purses for all horse racing shall be four percent of
sports wagering net receipts and no less than eleven percent of
the first two hundred million dollars of net receipts, and six
percent of net receipts above two hundred million dollars. In
addition, live standardbred horse racing shall not be conducted
at the horse racetrack in Polk county, but the purse moneys
designated for standardbred racing pursuant to section 99D.7,
subsection 5, paragraph “b”, shall be included in calculating
the total annual purses required to be paid pursuant to this
subsection. Agreements that are subject to commission approval
concerning horse purses for a period of time beginning on
or after January 1, 2006, shall be jointly submitted to the
commission for approval.
Sec. 10. NEW SECTION. 99F.7A Sports wagering — license —
terms and conditions — fees.
1. The commission shall, upon payment of an initial license
fee of forty-five thousand dollars and submission of an
application to the commission consistent with the requirements
of section 99F.6, issue a license to conduct sports wagering
to a licensee authorized to conduct gambling games at a
pari-mutuel racetrack enclosure or a licensee authorized to
operate an excursion gambling boat or gambling structure,
subject to the requirements of this chapter. The annual
renewal fee for a license to conduct sports wagering shall be
-7-ten thousand dollars.
2. A licensee under this section shall do all of the
following:
a. Include on the internet site or mobile application used
by the licensee to conduct advance deposit sports wagering as
authorized in section 99F.9 the statewide telephone number
authorized by the Iowa department of public health to provide
problem gambling information and extensive responsible gaming
features in addition to those described in section 99F.4,
subsection 22.
b. Establish, subject to commission approval, sports
wagering rules that specify the amounts to be paid on winning
sports wagers, the effect of changes in the scheduling of an
authorized sporting event subject to sports wagering, and the
source of the information used to determine the outcome of a
sports wager. The sports wagering rules shall be displayed in
the licensee’s sports wagering area, posted on the internet
site or mobile application used by the licensee to conduct
advance deposit sports wagering as authorized in section 99F.9,
and included in the terms and conditions of the licensee’s
advance deposit sports wagering system.
3. A licensee under this section may enter into operating
agreements with one or two entities to have up to a total of
two individually branded internet sites to conduct advance
deposit sports wagering for the licensee, unless one additional
operating agreement or individually branded internet site is
authorized by the commission.
4. A licensee issued a license to conduct sports wagering
under this section shall employ reasonable steps to prohibit
coaches, athletic trainers, officials, players, or other
individuals who participate in an authorized sporting event
that is the subject of sports wagering from sports wagering
under this chapter. In addition, a licensee shall employ
reasonable steps to prohibit persons who are employed in
a position with direct involvement with coaches, players,
-8-athletic trainers, officials, players, or participants in
an authorized sporting event that is the subject of sports
wagering from sports wagering under this chapter.
Sec. 11. Section 99F.8, Code 2019, is amended to read as
follows:
99F.8 Bond of licensee.
A licensee licensed under section 99F.7 shall post a bond
to the state of Iowa before the license is issued in a sum
as the commission shall fix, with sureties to be approved by
the commission. The bond shall be used to guarantee that the
licensee faithfully makes the payments, keeps its books and
records and makes reports, and conducts its gambling games and
sports wagering in conformity with this chapter and the rules
adopted by the commission. The bond shall not be canceled by
a surety on less than thirty days’ notice in writing to the
commission. If a bond is canceled and the licensee fails to
file a new bond with the commission in the required amount on
or before the effective date of cancellation, the licensee’s
license shall be revoked. The total and aggregate liability
of the surety on the bond is limited to the amount specified in
the bond.
Sec. 12. Section 99F.9, subsection 1, Code 2019, is amended
to read as follows:
1. Except as permitted in this section, the licensee shall
not permit no sports wagering or any form of wagering on
gambling games.
Sec. 13. Section 99F.9, Code 2019, is amended by adding the
following new subsection:
NEW SUBSECTION. 3A. a. For the purposes of this section,
unless the context otherwise requires:
(1) “Advance deposit sports wagering” means a method of
sports wagering in which an eligible individual may, in an
account established with a licensee under section 99F.7A,
deposit moneys into the account and use the account balance to
pay for sports wagering. Prior to January 1, 2021, an account
-9-must be established by an eligible individual in person with
a licensee.
(2) “Advance deposit sports wagering operator” means an
advance deposit sports wagering operator licensed by the
commission who has entered into an agreement with a licensee
under section 99F.7A to provide advance deposit sports
wagering.
(3) “Eligible individual” means an individual who is at
least twenty-one years of age or older who is located within
this state.
b. The commission may authorize a licensee under section
99F.7A to conduct advance deposit sports wagering. An advance
deposit sports wager may be placed in person in the sports
wagering area, or from any other location via a telephone-type
device or any other electronic means. The commission may also
issue an advance deposit sports wagering operator license to
an entity who complies with this subsection and section 99F.6
and may require the advance deposit sports wagering operator to
conduct an audit consistent with the requirements of section
99F.13.
c. An unlicensed person taking or receiving sports wagers
from residents of this state is guilty of a class “D” felony.
Sec. 14. Section 99F.9, subsection 4, Code 2019, is amended
to read as follows:
4. A person under the age of twenty-one years shall not make
or attempt to make a wager pursuant to subsection 3A or on an
excursion gambling boat, gambling structure, or in a racetrack
enclosure and shall not be allowed on the gaming floor of
an excursion gambling boat or gambling structure or in the
wagering area, as defined in section 99D.2, or on the gaming
floor of a racetrack enclosure. However, a person eighteen
years of age or older may be employed to work on the gaming
floor of an excursion gambling boat or gambling structure or
in the wagering area or on the gaming floor of a racetrack
enclosure. A person who violates this subsection with respect
-10-to making or attempting to make a wager commits a scheduled
violation under section 805.8C, subsection 5, paragraph “a”.
Sec. 15. Section 99F.11, subsection 3, unnumbered paragraph
1, Code 2019, is amended to read as follows:
The taxes imposed by this section on adjusted gross receipts
from gambling games authorized under this chapter shall be paid
by the licensee to the treasurer of state within ten days after
the close of the day when the wagers were made and shall be
distributed as follows:
Sec. 16. Section 99F.11, Code 2019, is amended by adding the
following new subsection:
NEW SUBSECTION. 4. a. A tax is imposed on the sports
wagering net receipts received each fiscal year by a licensed
operator from sports wagering authorized under this chapter at
the rate of six and three-quarters percent.
b. The taxes imposed by this subsection for sports wagering
authorized under this chapter shall be paid by the licensed
operator to the treasurer of state as determined by the
commission and shall be credited as provided in section 8.57,
subsection 6.
Sec. 17. Section 99F.12, subsection 2, Code 2019, is amended
to read as follows:
2. a. The licensee shall furnish to the commission reports
and information as the commission may require with respect to
the licensee’s activities.
b. A licensee under section 99F.7A shall promptly report
to the commission any criminal or disciplinary proceedings
commenced against the licensee or its employees in connection
with the licensee conducting sports wagering or advance
deposit sports wagering, any abnormal wagering activity or
patterns that may indicate a concern about the integrity of an
authorized sporting event or events, and any other conduct with
the potential to corrupt a wagering outcome of an authorized
sporting event for purposes of financial gain, including
but not limited to match fixing, and suspicious or illegal
-11-wagering activities, including the use of funds derived from
illegal activity, wagers to conceal or launder funds derived
from illegal activity, use of agents to place wagers, or use
of false identification. The commission is required to share
any information received pursuant to this paragraph with the
division of criminal investigation, any other law enforcement
entity upon request, or any regulatory agency the commission
deems appropriate. The commission shall promptly report any
information received pursuant to this paragraph with any
sports team or sports governing body as the commission deems
appropriate, but shall not share any information that would
interfere with an ongoing criminal investigation.
c. The gross receipts and adjusted gross receipts from
gambling shall be separately handled and accounted for from
all other moneys received from operation of an excursion
gambling boat or from operation of a racetrack enclosure or
gambling structure licensed to conduct gambling games. The
commission may designate a representative to board a licensed
excursion gambling boat or to enter a racetrack enclosure or
gambling structure licensed to conduct gambling games. The
representative shall have full access to all places within the
enclosure of the boat, the gambling structure, or the racetrack
enclosure and shall directly supervise the handling and
accounting of all gross receipts and adjusted gross receipts
from gambling. The representative shall supervise and check
the admissions. The compensation of a representative shall be
fixed by the commission but shall be paid by the licensee.
d. With the approval of the commission, a licensee under
section 99F.7A shall cooperate with investigations conducted
by sports governing bodies, including but not limited to
providing or facilitating the provision of account-level
betting information and audio or video files relating to
persons placing wagers. However, a licensee shall not share
information that would interfere with an ongoing criminal
investigation.
-12- Sec. 18. Section 99F.15, subsection 1, paragraph c, Code
2019, is amended to read as follows:
c. Acting, or employing a person to act, as a shill or
decoy to encourage participation in a gambling game or sports
wagering.
Sec. 19. Section 99F.15, subsection 4, paragraphs d, h, and
i, Code 2019, are amended to read as follows:
d. Cheats at a gambling game, including but not limited to
committing any act which alters the outcome of the game, or
cheats at sports wagering.
h. Claims, collects, or takes, or attempts to claim,
collect, or take, money or anything of value in or from the
gambling games or sports wagering, with intent to defraud,
without having made a wager contingent on winning a gambling
game or sports wager, or claims, collects, or takes an amount
of money or thing of value of greater value than the amount
won.
i. Knowingly entices or induces a person to go to any place
where a gambling game or sports wagering is being conducted or
operated in violation of the provisions of this chapter with
the intent that the other person plays or participates in that
gambling game or sports wagering.
Sec. 20. Section 99F.20, subsection 1, Code 2019, is amended
to read as follows:
1. A gaming regulatory revolving fund is created in
the state treasury under the control of the department of
inspections and appeals. The fund shall consist of fees
collected and deposited into the fund paid by licensees
pursuant to section 99D.14, subsection 2, paragraph “c”, fees
paid by licensees pursuant to section 99E.5, subsection 4,
paragraph “c”, regulatory fees paid by licensees pursuant
to section 99F.4, subsection 27, and fees paid by licensees
pursuant to section 99F.10, subsection 4, paragraph “c”. All
costs relating to racetrack, excursion boat, and gambling
structure, internet fantasy sports contests as defined in
-13-section 99E.1, and sports wagering regulation shall be paid
from the fund as provided in appropriations made for this
purpose by the general assembly. The department shall provide
quarterly reports to the department of management and the
legislative services agency specifying revenues billed and
collected and expenditures from the fund in a format as
determined by the department of management in consultation with
the legislative services agency.
Sec. 21. EMERGENCY RULES. The state racing and gaming
commission created under section 99D.5 may adopt emergency
rules under section 17A.4, subsection 3, and section 17A.5,
subsection 2, paragraph “b”, to implement the provisions of
this division of this Act and the rules shall be effective
immediately upon filing unless a later date is specified in the
rules but in no event earlier than July 4, 2019. Any rules
adopted in accordance with this section shall also be published
as a notice of intended action as provided in section 17A.4.
Sec. 22. IMPLEMENTATION. The racing and gaming commission
shall not implement this division of this Act until the later
of July 4, 2019, or the date the commission has adopted rules
pursuant to chapter 17A providing for such implementation and
such rules have become effective.
Sec. 23. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
DIVISION II
FANTASY SPORTS CONTESTS
Sec. 24. Section 80.25A, Code 2019, is amended to read as
follows:
80.25A Pari-mutuel and gambling game Gaming operations
investigation and enforcement.
The commissioner of public safety shall direct the chief
of the division of criminal investigation to establish a
subdivision to be the primary criminal investigative and
enforcement agency for the purpose of enforcement of chapters
99D, 99E, and 99F. The commissioner of public safety shall
-14-appoint or assign other agents to the division as necessary to
enforce chapters 99D, 99E, and 99F. All enforcement officers,
assistants, and agents of the division are subject to section
80.15 except clerical workers.
Sec. 25. Section 80.43, subsection 1, Code 2019, is amended
to read as follows:
1. A gaming enforcement revolving fund is created in the
state treasury under the control of the department. The fund
shall consist of fees collected and deposited into the fund
paid by licensees pursuant to section 99D.14, subsection 2,
paragraph “b”, fees and costs paid by applicants pursuant
to section 99E.4, subsection 4, and fees paid by licensees
pursuant to section 99F.10, subsection 4, paragraph “b”. All
costs for agents and officers plus any direct support costs
for such agents and officers of the division of criminal
investigation’s racetrack, excursion boat, or gambling
structure, and internet fantasy sports contests as defined in
section 99E.1 enforcement activities shall be paid from the
fund as provided in appropriations made for this purpose by the
general assembly.
Sec. 26. NEW SECTION. 99E.1 Definitions.
As used in this chapter, unless the context otherwise
requires:
1. “Applicant” means an internet fantasy sports contest
service provider applying for a license to conduct internet
fantasy sports contests under this chapter.
2. “Commission” means the state racing and gaming commission
created under section 99D.5.
3. “Fantasy sports contest” includes any fantasy or
simulated game or contest in which the fantasy sports contest
operator is not a participant in the game or contest, the value
of all prizes and awards offered to winning participants are
established and made known to the participants in advance
of the contest, all winning outcomes reflect the relative
knowledge and skill of the participants and shall be determined
-15-by accumulated statistical results of the performance of
individuals, including athletes in the case of sporting events,
and no winning outcome is solely based on the score, point
spread, or any performance or performances of any single actual
team or solely on any single performance of an individual
athlete or player in any single actual event. However, until
May 1, 2020, “fantasy sports contest” does not include any
fantasy or simulated game or contest in which any winning
outcomes are based on statistical results from a collegiate
sporting event as defined in section 99F.1.
4. “Internet fantasy sports contest” means a method of
entering a fantasy sports contest by which a person may
establish an account with an internet fantasy sports contest
service provider, deposit money into the account, and use
the account balance for entering a fantasy sports contest by
utilizing electronic communication.
5. “Internet fantasy sports contest adjusted revenues” means,
for each internet fantasy sports contest, the amount equal to
the total charges and fees collected from all participants
entering the internet fantasy sports contest less winnings paid
to participants in the contest, multiplied by the location
percentage.
6. “Internet fantasy sports contest player” means a person
who is at least twenty-one years of age and participates in an
internet fantasy sports contest operated by an internet fantasy
sports contest service provider.
7. “Internet fantasy sports contest service provider” means
a person, including a licensee under chapter 99D or 99F, who
conducts an internet fantasy sports contest as authorized by
this chapter.
8. “Licensee” means any person licensed under section 99E.5
to conduct internet fantasy sports contests.
9. “Location percentage” means, for each internet fantasy
sports contest, the percentage, rounded to the nearest tenth of
a percent, equal to the total charges and fees collected from
-16-all internet fantasy sports contest players located in this
state divided by the total charges and fees collected from all
participants in the internet fantasy sports contest.
Sec. 27. NEW SECTION. 99E.2 Internet fantasy sports
contests authorized.
The system of entering an internet fantasy sports contest as
provided by this chapter is legal when conducted by a licensed
internet fantasy sports contest service provider as provided in
this chapter.
Sec. 28. NEW SECTION. 99E.3 Commission — powers.
1. The commission shall have full jurisdiction over and
shall supervise internet fantasy sports contests and internet
fantasy sports contest service providers as governed by this
chapter.
2. The commission shall have the following powers and shall
adopt rules pursuant to chapter 17A to administer and implement
this chapter:
a. To review and investigate applicants and determine the
eligibility of applicants for a license to conduct internet
fantasy sports contests, pursuant to rules adopted by the
commission.
b. To license and regulate internet fantasy sports contest
service providers subject to the requirements of this chapter.
c. To provide for the prevention of practices detrimental to
the public and to provide for the best interests of internet
fantasy sports contests.
d. To investigate alleged violations of this chapter
or the commission rules, orders, or final decisions and to
take appropriate disciplinary action against a licensee, or
institute appropriate legal action for enforcement, or both.
Information gathered during an investigation is confidential
during the pendency of the investigation.
e. To assess fines and revoke or suspend licenses and to
impose penalties for violations of this chapter.
f. To take any other action as may be reasonable or
-17-appropriate to enforce this chapter and the commission rules.
Sec. 29. NEW SECTION. 99E.4 Requirements of applicant —
fee.
1. An applicant for a license to conduct internet fantasy
sports contests shall complete and sign an application on
the form prescribed and published by the commission. The
application shall include such information of the applicant
that the commission deems necessary for purposes of issuing a
license pursuant to this chapter.
2. An applicant shall submit fingerprints and information
that the commission deems necessary to the commission in the
manner prescribed on the application forms. The fingerprints
may be submitted to the federal bureau of investigation by
the department of public safety through the state criminal
history repository for the purpose of a national criminal
history check. The results of a criminal history record check
conducted pursuant to this subsection shall be considered a
confidential record under chapter 22.
3. Before a license is granted, the division of criminal
investigation of the department of public safety shall conduct
a thorough background investigation of the applicant for a
license to conduct internet fantasy sports contests. The
applicant shall provide information on a form as required by
the division of criminal investigation.
4. The commission shall charge the applicant a reasonable
fee set by the division of criminal investigation of the
department of public safety, to defray those costs associated
with the fingerprint and national criminal history check
requirements of subsection 2 and background investigations
conducted by agents of the division of criminal investigation
as provided in subsection 3. These fees and costs are in
addition to any other license fees and costs charged by the
commission. The fees and costs received by the commission
shall be deposited in the gaming enforcement revolving fund
established in section 80.43.
-18- 5. The commission shall not grant a license to an applicant
if there is substantial evidence that any of the following
apply:
a. A license issued to the applicant to conduct internet
fantasy sports contests in another jurisdiction has been
revoked, or a request for a license to conduct internet fantasy
sports contests in another jurisdiction has been denied, by
an entity licensing persons to conduct such contests in that
jurisdiction.
b. The applicant has not demonstrated financial
responsibility sufficient to adequately meet the requirements
of the enterprise proposed.
c. The applicant does not adequately disclose the true
owners of the enterprise proposed.
d. The applicant has knowingly made a false statement of a
material fact to the commission.
e. The applicant has failed to meet a monetary obligation in
connection with conducting an internet fantasy sports contest.
f. The applicant is not of good repute and moral character
or the applicant has pled guilty to, or has been convicted of,
a felony.
g. Any member of the board of directors of the applicant is
not twenty-one years of age or older.
6. A person who knowingly makes a false statement on the
application is guilty of an aggravated misdemeanor.
7. For the purposes of this section, “applicant” includes
each member of the board of directors of an internet fantasy
sports contest service provider.
Sec. 30. NEW SECTION. 99E.5 Licenses — fees — terms and
conditions — revocation.
1. If the commission is satisfied that the requirements
of this chapter and its rules adopted under this chapter
applicable to licensees have been or will be complied with, the
commission shall, upon payment of an initial license fee of
five thousand dollars, issue a license for a period of not more
-19-than three years to an applicant to conduct internet fantasy
sports contests in this state.
2. A licensed internet fantasy sports contest service
provider shall use reasonable methods to comply with all of the
following requirements:
a. Prevent employees of the internet fantasy sports contest
service provider and relatives living in the same household of
such employees from competing in any internet fantasy sports
contest on the service provider’s digital platform in which the
service provider offers a cash prize to the public.
b. Verify that an internet fantasy sports contest player
located in this state is twenty-one years of age or older.
c. Ensure that coaches, officials, players, contestants,
or other individuals who participate in a game or contest
that is the subject of an internet fantasy sports contest are
restricted from entering an internet fantasy sports contest in
which the outcome is determined, in whole or in part, by the
accumulated statistical results of a team of individuals in the
game or contest in which they participate.
d. Include on the internet site or mobile application used
by the licensee to conduct internet fantasy sports contests the
statewide telephone number authorized by the Iowa department
of public health to provide problem gambling information and
extensive responsible gaming features in addition to those
described in section 99F.4, subsection 22.
e. Allow individuals to establish an account with an
internet fantasy sports contest service provider by utilizing
electronic communication.
f. Disclose the number of entries a single internet fantasy
sports contest player may submit to each internet fantasy
sports contest and take reasonable steps to prevent players
from submitting more than the allowable number of entries for
that internet fantasy sports contest.
g. Segregate internet fantasy sports contest player funds
from operational funds or maintain a reserve in the form of
-20-cash, cash equivalents, an irrevocable letter of credit,
payment processor reserves and receivables, a bond, or a
combination thereof in the amount of the deposits in internet
fantasy sports contest player accounts for the benefit and
protection of internet fantasy sports contest player funds held
in internet fantasy sports contest accounts by the internet
fantasy sports contest service provider.
h. Conduct an annual audit under section 99E.9.
i. Pay the tax as provided in section 99E.6.
3. The annual license fee to conduct internet fantasy sports
contests shall be one thousand dollars or, for a licensed
internet fantasy sports contest service provider with total
annual internet fantasy sports contest adjusted revenues for
the year prior to the annual license fee renewal date of
one hundred fifty thousand dollars or greater, five thousand
dollars. Moneys collected by the commission from the license
fees paid under this section shall be considered repayment
receipts as defined in section 8.2.
4. a. A licensed internet fantasy sports contest service
provider shall pay a regulatory fee to the commission. The
regulatory fee shall be established by the commission based on
the costs of administering and enforcing this chapter.
b. A licensed internet fantasy sports contest service
provider shall receive a credit for the amount of the
regulatory fee paid by the provider against the taxes to be
paid pursuant to section 99E.6.
c. Notwithstanding section 8.60, the portion of the fee
paid pursuant to paragraph “a” relating to the costs of the
commission shall be deposited into the gaming regulatory
revolving fund established in section 99F.20.
5. Upon a violation of any of the conditions listed in
section 99E.4 or this section by a licensee, the commission
shall immediately revoke the license.
Sec. 31. NEW SECTION. 99E.6 Internet fantasy sports contest
tax — rate.
-21- 1. A tax is imposed on internet fantasy sports contest
adjusted revenues received each fiscal year by an internet
fantasy sports contest service provider from internet fantasy
sports contests authorized under this chapter at the rate of
six and three-quarters percent.
2. The taxes imposed by this section for internet fantasy
sports contests authorized under this chapter shall be paid by
the internet fantasy sports contest service provider to the
treasurer of state as determined by the commission and shall be
credited as provided in section 8.57, subsection 6.
Sec. 32. NEW SECTION. 99E.7 Internet fantasy sports
contests — age restrictions.
A person under the age of twenty-one years shall not enter an
internet fantasy sports contest. A person who violates this
section with respect to entering an internet fantasy sports
contest commits a scheduled violation under section 805.8C,
subsection 12.
Sec. 33. NEW SECTION. 99E.8 Licensees — records — reports
— confidentiality.
1. An internet fantasy sports contest service provider
shall keep its books and records so as to clearly show the
internet fantasy sports contest adjusted revenues for each
internet fantasy sports contest subject to tax in this state.
2. a. The licensee shall furnish to the commission reports
and information as the commission may require with respect to
the licensee’s activities.
b. A licensee shall promptly report to the commission any
criminal or disciplinary proceedings commenced against the
licensee or its employees in connection with the licensee
conducting an internet fantasy sports contest, any abnormal
contest activity or patterns that may indicate a concern about
the integrity of an internet fantasy sports contest, and any
other conduct with the potential to corrupt an outcome of an
internet fantasy sports contest for purposes of financial gain,
including but not limited to match fixing, and suspicious or
-22-illegal internet fantasy sports contest activities, including
the use of funds derived from illegal activity, deposits of
money to enter an internet fantasy sports contest to conceal
or launder funds derived from illegal activity, use of agents
to enter an internet fantasy sports contest, or use of false
identification. The commission is required to share any
information received pursuant to this paragraph with the
division of criminal investigation, any other law enforcement
entity upon request, or any regulatory agency the commission
deems appropriate. The commission shall promptly report any
information received pursuant to this paragraph with any
sports team or sports governing body as the commission deems
appropriate, but shall not share any information that would
interfere with an ongoing criminal investigation.
3. Except as provided in subsection 4, the books and records
kept by a licensee as provided by this section are public
records and the examination, publication, and dissemination of
the books and records are governed by the provisions of chapter
22.
4. The records of the commission shall be governed by the
provisions of chapter 22, provided that, in addition to records
that may be kept confidential pursuant to section 22.7, the
following records provided by a licensee to the commission
shall be kept confidential, unless otherwise ordered by a
court, by the lawful custodian of the records, or by another
person duly authorized to release such information:
a. Patron and customer records.
b. Security reports and network audits.
c. Internal control and compliance records.
d. Employee records.
e. Marketing expenses.
f. Supplemental schedules to the certified audit, except for
those books and records as described in subsection 1 of this
section, that are obtained by the commission in connection with
the annual audit under section 99E.9.
-23- g. Any information specifically requested for inspection by
the commission or a representative of the commission.
Sec. 34. NEW SECTION. 99E.9 Annual audit of licensee
operations.
Within one hundred eighty days after the end of the
licensee’s fiscal year, the licensee shall transmit to the
commission an audit of the licensee’s total internet fantasy
sports contest operations, including an itemization of all
expenses and subsidies. Each audit shall be conducted by a
certified public accountant authorized to practice in the state
of Iowa under chapter 542 who is selected by the licensee and
approved by the commission.
Sec. 35. NEW SECTION. 99E.10 Civil penalty.
A person who willfully fails to comply with the requirements
of this chapter and the rules adopted pursuant to chapter 17A
under this chapter shall be liable for a civil penalty of not
more than one thousand dollars for each violation, not to
exceed ten thousand dollars for violations arising out of the
same transaction or occurrence, which shall accrue to the state
and may be recovered in a civil action.
Sec. 36. Section 99F.2, Code 2019, is amended to read as
follows:
99F.2 Scope of provisions.
This chapter does not apply to the pari-mutuel system of
wagering used or intended to be used in connection with the
horse-race or dog-race meetings as authorized under chapter
99D, internet fantasy sports contests authorized under chapter
99E, lottery or lotto games authorized under chapter 99G, or
bingo or games of skill or chance authorized under chapter 99B.
Sec. 37. Section 99F.4B, Code 2019, is amended to read as
follows:
99F.4B Rules.
The department of inspections and appeals shall cooperate
to the maximum extent possible with the division of criminal
investigation in adopting rules relating to the gaming
-24-operations in this chapter and chapter chapters 99D and 99E.
Sec. 38. Section 232C.4, subsection 3, Code 2019, is amended
to read as follows:
3. An emancipated minor shall remain subject to voting
restrictions under chapter 48A, gambling restrictions under
chapter 99B, 99D, 99F, 99G, or 725, internet fantasy sports
contest restrictions under chapter 99E, alcohol restrictions
under chapter 123, compulsory attendance requirements under
chapter 299, and cigarette tobacco restrictions under chapter
453A.
Sec. 39. Section 714B.10, subsection 1, Code 2019, is
amended to read as follows:
1. Advertising by sponsors registered pursuant to chapter
557B, licensed pursuant to chapter 99B, or regulated pursuant
to chapter 99D, 99E, 99F, or 99G.
Sec. 40. Section 725.7, subsection 1, paragraph e, Code
2019, is amended to read as follows:
e. Engage in bookmaking, except as permitted in chapters 99E
and 99F.
Sec. 41. Section 725.13, Code 2019, is amended to read as
follows:
725.13 Definition of bookmaking.
“Bookmaking” means advancing gambling activity by accepting
bets upon the outcome of future contingent events as a business
other than as permitted in chapters 99B, 99D, 99E, and 99F.
These events include, but are not limited to, the results of
a trial or contest of skill, speed, power, or endurance of
a person or beast or between persons, beasts, fowl, motor
vehicles, or mechanical apparatus or upon the result of any
chance, casualty, unknown, or contingent event.
Sec. 42. Section 725.15, Code 2019, is amended to read as
follows:
725.15 Exceptions for legal gambling.
Sections 725.5 through 725.10 and 725.12 do not apply to
a game, activity, ticket, or device when lawfully possessed,
-25-used, conducted, or participated in pursuant to chapter 99B,
99E, 99F, or 99G.
Sec. 43. Section 805.8C, Code 2019, is amended by adding the
following new subsection:
NEW SUBSECTION. 12. Internet fantasy sports contest
violations. For violations of legal age for entering an
internet fantasy sports contest under section 99E.7, the
scheduled fine is five hundred dollars. Failure to pay the
fine by a person under the age of eighteen shall not result in
the person being detained in a secure facility.
Sec. 44. EMERGENCY RULES. The state racing and gaming
commission created under section 99D.5 may adopt emergency
rules under section 17A.4, subsection 3, and section 17A.5,
subsection 2, paragraph “b”, to implement the provisions of
this division of this Act and the rules shall be effective
immediately upon filing unless a later date is specified in the
rules but in no event earlier than July 4, 2019. Any rules
adopted in accordance with this section shall also be published
as a notice of intended action as provided in section 17A.4.
Sec. 45. IMPLEMENTATION. The racing and gaming commission
shall not implement this division of this Act until the later
of July 4, 2019, or the date the commission has adopted rules
pursuant to chapter 17A providing for such implementation and
such rules have become effective.
Sec. 46. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
DIVISION III
GAMBLING REGULATION
Sec. 47. Section 8.57, Code 2019, is amended by adding the
following new subsection:
NEW SUBSECTION. 6. a. A sports wagering receipts fund is
created under the authority of the department of management.
The fund shall consist of appropriations made to the fund and
transfers of interest, earnings, and moneys from other funds
or sources as provided by law. The sports wagering receipts
-26-fund shall be separate from the general fund of the state and
the balance in the sports wagering receipts fund shall not
be considered part of the balance of the general fund of the
state. However, the sports wagering receipts fund shall be
considered a special account for the purposes of section 8.53,
relating to generally accepted accounting principles.
b. Moneys in the sports wagering receipts fund are not
subject to section 8.33. Notwithstanding section 12C.7,
subsection 2, interest or earnings on moneys in the sports
wagering receipts fund shall be credited to the fund. Moneys
in the sports wagering receipts fund may be used for cash flow
purposes during a fiscal year provided that any moneys so
allocated are returned to the fund by the end of that fiscal
year.
c. Moneys in the sports wagering receipts fund in a fiscal
year shall be used as directed by the general assembly.
d. Annually, on or before January 15 of each year, a
state agency that received an appropriation from the sports
wagering receipts fund shall report to the legislative services
agency and the department of management the status of all
projects completed or in progress. The report shall include
a description of the project, the progress of work completed,
the total estimated cost of the project, a list of all revenue
sources being used to fund the project, the amount of funds
expended, the amount of funds obligated, and the date the
project was completed or an estimated completion date of the
project, where applicable.
e. Annually, on or before December 31 of each year, a
recipient of moneys from the sports wagering receipts fund
for any purpose shall report to the state agency to which the
moneys are appropriated the status of all projects completed
or in progress. The report shall include a description of the
project, the progress of work completed, the total estimated
cost of the project, a list of all revenue sources being used
to fund the project, the amount of funds expended, the amount
-27-of funds obligated, and the date the project was completed or
an estimated completion date of the project, where applicable.
Sec. 48. Section 15E.311, subsection 3, paragraph a, Code
2019, is amended to read as follows:
a. At the end of each fiscal year, moneys in the fund
shall be transferred into separate accounts within the fund
and designated for use by each county in which no licensee
authorized to conduct gambling games under chapter 99F was
located during that fiscal year. Moneys transferred to
county accounts shall be divided equally among the counties.
Moneys transferred into an account for a county shall be
transferred by the department to an eligible county recipient
for that county. Of the moneys transferred, an eligible county
recipient shall distribute seventy-five percent of the moneys
as grants to charitable organizations for charitable purposes
in that county and shall retain twenty-five percent of the
moneys for use in establishing a permanent endowment fund
for the benefit of charitable organizations for charitable
purposes. In addition, of the moneys transferred from moneys
appropriated to the fund from the sports wagering receipts
fund created in section 8.57, subsection 6, and distributed,
eligible county recipients shall give consideration for grants,
upon application, to a charitable organization that operates
a racetrack facility that conducts automobile races in that
county. Of the amounts distributed, eligible county recipients
shall give special consideration to grants for projects that
include significant vertical infrastructure components designed
to enhance quality of life aspects within local communities.
In addition, as a condition of receiving a grant, the governing
body of a charitable organization receiving a grant shall
approve all expenditures of grant moneys and shall allow a
state audit of expenditures of all grant moneys.
Sec. 49. Section 99B.41, Code 2019, is amended by adding the
following new subsection:
NEW SUBSECTION. 1A. “Social fantasy sports contest” means
-28-any fantasy or simulated game or contest in which the value
of all prizes and awards offered to winning participants are
established and made known to the participants in advance of
the contest and do not exceed a total of one thousand dollars
or equivalent consideration, all winning outcomes reflect
the relative knowledge and skill of the participants and
shall be determined by accumulated statistical results of the
performance of individuals in events occurring over more than
a twenty-four-hour period, including athletes in the case of
sporting events, and no winning outcome is solely based on the
score, point spread, or any performance or performances of
any single actual team or solely on any single performance of
an individual athlete or player in any single actual event.
“Social fantasy sports contest” does not include an internet
fantasy sports contest as defined in section 99E.1.
Sec. 50. Section 99B.45, subsection 2, Code 2019, is amended
by adding the following new paragraph:
NEW PARAGRAPH. c. A social fantasy sports contest.
Sec. 51. Section 99F.6, Code 2019, is amended by adding the
following new subsection:
NEW SUBSECTION. 9. The board of directors of a qualified
sponsoring organization licensed to operate gambling games
under this chapter shall be residents of this state and shall
include, as ex officio, nonvoting members of the board, a
member of the county board of supervisors and a member of a
city council for each county and city that has a licensed
gambling games facility operated by the qualified sponsoring
organization. The ex officio members shall serve terms of the
same duration as voting members of the board. However, this
subsection shall not apply to an agency, instrumentality, or
political subdivision of the state that is licensed to conduct
gambling games under this chapter.
Sec. 52. EFFECTIVE DATE. The following, being deemed of
immediate importance, takes effect upon enactment:
The section of this division of this Act amending section
-29-8.57.
______________________________
CHARLES SCHNEIDER
President of the Senate
______________________________
LINDA UPMEYER
Speaker of the House
I hereby certify that this bill originated in the Senate and
is known as Senate File 617, Eighty-eighth General Assembly.
______________________________
W. CHARLES SMITHSON
Secretary of the Senate
Approved _______________, 2019
______________________________
KIM REYNOLDS
Governor
-30-ec/rn/mb
providing for sports wagering and fantasy sports contests,
providing for taxes and fees, making penalties applicable,
and including implementation and effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
DIVISION I
SPORTS WAGERING
Section 1. Section 99D.7, subsection 23, Code 2019, is
amended to read as follows:
23. To establish a process to allow a person to be
voluntarily excluded from advance deposit wagering as defined
in section 99D.11, from an internet fantasy sports contest
as defined in section 99E.1, from advance deposit sports
wagering as defined in section 99F.9, from the wagering area
of a racetrack enclosure and from the gaming floor and sports
wagering area, as defined in section 99F.1, of all other
licensed facilities under this chapter and chapter 99F as
provided in this subsection. The process shall provide that an
initial request by a person to be voluntarily excluded shall be
for a period of five years or life and any subsequent request
following any five-year period shall be for a period of five
years or life. The process established shall require that
licensees be provided electronic access to names and social
security numbers of persons voluntarily excluded through a
secured interactive internet site maintained by the commission
and information regarding persons voluntarily excluded shall
be disseminated to all licensees under this chapter, chapter
99E, and chapter 99F. The names, social security numbers, and
information regarding persons voluntarily excluded shall be
kept confidential unless otherwise ordered by a court or by
another person duly authorized to release such information.
The process established shall also require a person requesting
to be voluntarily excluded be provided information compiled
by the Iowa department of public health on gambling treatment
options. The state and any licensee under this chapter,
chapter 99E, or chapter 99F shall not be liable to any person
for any claim which may arise from this process. In addition
to any other penalty provided by law, any money or thing of
value that has been obtained by, or is owed to, a voluntarily
excluded person as a result of wagers made by the person after
-1-the person has been voluntarily excluded shall be forfeited by
the person and shall be credited to the general fund of the
state.
Sec. 2. Section 99F.1, subsection 1, Code 2019, is amended
to read as follows:
1. “Adjusted gross receipts” means the gross receipts less
winnings paid to wagerers on gambling games. However, “adjusted
gross receipts” does not include promotional play receipts
received after the date in any fiscal year that the commission
determines that the wagering tax imposed pursuant to section
99F.11 on all licensees in that fiscal year on promotional
play receipts exceeds twenty-five million eight hundred twenty
thousand dollars.
Sec. 3. Section 99F.1, Code 2019, is amended by adding the
following new subsections:
NEW SUBSECTION. 2A. “Authorized sporting event” means
a professional sporting event, collegiate sporting event,
international sporting event, or professional motor race
event. “Authorized sporting event” does not include a race as
defined in section 99D.2, a fantasy sports contest as defined
in section 99E.1, minor league sporting event, or any athletic
event or competition of an interscholastic sport as defined in
section 9A.102.
NEW SUBSECTION. 4A. “Collegiate sporting event” means an
athletic event or competition of an intercollegiate sport as
defined in section 9A.102.
NEW SUBSECTION. 16A. “International sporting event” means
an international team or individual sporting event governed by
an international sports federation or sports governing body,
including sporting events governed by the international olympic
committee and the international federation of association
football.
NEW SUBSECTION. 18A. “Minor league sporting event” means
a sporting event conducted by a sports league which is not
regarded as the premier league in the sport as determined by
-2-the commission.
NEW SUBSECTION. 19A. “Professional sporting event” means an
event, excluding a minor league sporting event, at which two
or more persons participate in sports or athletic events and
receive compensation in excess of actual expenses for their
participation in such event.
NEW SUBSECTION. 23. “Sports wagering” means the acceptance
of wagers on an authorized sporting event by any system of
wagering as authorized by the commission. “Sports wagering”
does not include placing a wager on the performance or
nonperformance of any individual athlete participating in
a single game or match of a collegiate sporting event in
which a collegiate team from this state is a participant, or
placing a wager on the performance of athletes in an individual
international sporting event governed by the international
olympic committee in which any participant in the international
sporting event is under eighteen years of age.
NEW SUBSECTION. 24. “Sports wagering area” means an area,
as designated by the commission, in which sports wagering is
conducted.
NEW SUBSECTION. 25. “Sports wagering net receipts” means
the gross receipts less winnings paid to wagerers on sports
wagering.
Sec. 4. Section 99F.1, subsection 17, Code 2019, is amended
to read as follows:
17. “Licensee” means any person licensed under section 99F.7
or 99F.7A.
Sec. 5. Section 99F.3, Code 2019, is amended to read as
follows:
99F.3 Gambling games and sports wagering authorized.
The system of wagering on a gambling game and sports wagering
as provided by this chapter is legal, when conducted on an
excursion gambling boat, gambling structure, or racetrack
enclosure at authorized locations by a licensee as provided in
this chapter.
-3- Sec. 6. Section 99F.4, subsections 3 and 22, Code 2019, are
amended to read as follows:
3. To adopt standards under which all excursion gambling
boat operations shall be held and standards for the facilities
within which the gambling operations are to be held. The
commission may authorize the operation of gambling games on
an excursion gambling boat and sports wagering in a sports
wagering area which is also licensed to sell or serve alcoholic
beverages, wine, or beer as defined in section 123.3.
22. To establish a process to allow a person to be
voluntarily excluded from advance deposit wagering as defined
in section 99D.11, from an internet fantasy sports contest as
defined in section 99E.1, from advance deposit sports wagering
as defined in section 99F.9, from the gaming floor and sports
wagering area of an excursion gambling boat, from the wagering
area, as defined in section 99D.2, and from the gaming floor
and sports wagering area of all other licensed facilities under
this chapter and chapter 99D as provided in this subsection.
The process shall provide that an initial request by a person
to be voluntarily excluded shall be for a period of five years
or life and any subsequent request following any five-year
period shall be for a period of five years or life. The process
established shall require that licensees be provided electronic
access to names and social security numbers of persons
voluntarily excluded through a secured interactive internet
site maintained by the commission and information regarding
persons voluntarily excluded shall be disseminated to all
licensees under this chapter ,and chapter 99D, and chapter 99E.
The names, social security numbers, and information regarding
persons voluntarily excluded shall be kept confidential
unless otherwise ordered by a court or by another person
duly authorized to release such information. The process
established shall also require a person requesting to be
voluntarily excluded be provided information compiled by the
Iowa department of public health on gambling treatment options.
-4-The state and any licensee under this chapter, or chapter 99D,
or chapter 99E shall not be liable to any person for any claim
which may arise from this process. In addition to any other
penalty provided by law, any money or thing of value that has
been obtained by, or is owed to, a voluntarily excluded person
as a result of wagers made by the person after the person has
been voluntarily excluded shall be forfeited by the person and
shall be credited to the general fund of the state.
Sec. 7. Section 99F.4, Code 2019, is amended by adding the
following new subsection:
NEW SUBSECTION. 27. To adopt standards under which all
sports wagering is conducted, including the scope and type of
wagers allowed, to identify occupations within sports wagering
which require licensing, and to adopt standards for licensing
and background qualifications for occupations including
establishing fees for the occupational license. All revenue
received by the commission under this chapter from license fees
shall be deposited in the general fund of the state and shall
be subject to the requirements of section 8.60. All revenue
received by the commission from regulatory fees shall be
deposited into the gaming regulatory revolving fund established
in section 99F.20.
Sec. 8. Section 99F.5, subsection 1, Code 2019, is amended
to read as follows:
1. A qualified sponsoring organization may apply to the
commission for a license to conduct gambling games on an
excursion gambling boat or gambling structure as provided in
this chapter. A person may apply to the commission for a
license to operate an excursion gambling boat. An operating
agreement entered into on or after May 6, 2004, between
a qualified sponsoring organization and an operator of an
excursion gambling boat or gambling structure shall provide for
a minimum distribution by the qualified sponsoring organization
for educational, civic, public, charitable, patriotic, or
religious uses as defined in section 99B.1, that averages at
-5-least three percent of the adjusted gross receipts for each
license year and, if applicable, three-quarters of one percent
of sports wagering net receipts for each license year. The
application shall be filed with the administrator of the
commission at least ninety days before the first day of the
next excursion season as determined by the commission, shall
identify the excursion gambling boat upon which gambling games
will be authorized, shall specify the exact location where
the excursion gambling boat will be docked, and shall be in
a form and contain information as the commission prescribes.
The minimum capacity of an excursion gambling boat or gambling
structure is two hundred fifty persons.
Sec. 9. Section 99F.6, subsection 4, paragraph a,
subparagraphs (2) and (3), Code 2019, are amended to read as
follows:
(2) A qualified sponsoring organization licensed to operate
gambling games under this chapter shall distribute the receipts
of all gambling games, less reasonable expenses, charges,
taxes, fees, and deductions allowed under this chapter, as
winnings to players or participants or shall distribute the
receipts for educational, civic, public, charitable, patriotic,
or religious uses as defined in section 99B.1. However, a
licensee to conduct gambling games under this chapter shall,
unless an operating agreement for an excursion gambling boat
otherwise provides, distribute at least three percent of the
adjusted gross receipts and, if applicable, three-quarters of
one percent of sports wagering net receipts for each license
year for educational, civic, public, charitable, patriotic,
or religious uses as defined in section 99B.1. However, if a
licensee who is also licensed to conduct pari-mutuel wagering
at a horse racetrack has unpaid debt from the pari-mutuel
racetrack operations, the first receipts of the gambling
games operated within the racetrack enclosure less reasonable
operating expenses, taxes, and fees allowed under this chapter
shall be first used to pay the annual indebtedness.
-6- (3) The commission shall authorize, subject to the debt
payments for horse racetracks and the provisions of paragraph
“b” for dog racetracks, a licensee who is also licensed to
conduct pari-mutuel dog or horse racing to use receipts
from gambling games and sports wagering within the racetrack
enclosure to supplement purses for races particularly for
Iowa-bred horses pursuant to an agreement which shall be
negotiated between the licensee and representatives of the
dog or horse owners. For agreements subject to commission
approval concerning purses for horse racing beginning on or
after January 1, 2006, the agreements shall provide that total
annual purses for all horse racing shall be four percent of
sports wagering net receipts and no less than eleven percent of
the first two hundred million dollars of net receipts, and six
percent of net receipts above two hundred million dollars. In
addition, live standardbred horse racing shall not be conducted
at the horse racetrack in Polk county, but the purse moneys
designated for standardbred racing pursuant to section 99D.7,
subsection 5, paragraph “b”, shall be included in calculating
the total annual purses required to be paid pursuant to this
subsection. Agreements that are subject to commission approval
concerning horse purses for a period of time beginning on
or after January 1, 2006, shall be jointly submitted to the
commission for approval.
Sec. 10. NEW SECTION. 99F.7A Sports wagering — license —
terms and conditions — fees.
1. The commission shall, upon payment of an initial license
fee of forty-five thousand dollars and submission of an
application to the commission consistent with the requirements
of section 99F.6, issue a license to conduct sports wagering
to a licensee authorized to conduct gambling games at a
pari-mutuel racetrack enclosure or a licensee authorized to
operate an excursion gambling boat or gambling structure,
subject to the requirements of this chapter. The annual
renewal fee for a license to conduct sports wagering shall be
-7-ten thousand dollars.
2. A licensee under this section shall do all of the
following:
a. Include on the internet site or mobile application used
by the licensee to conduct advance deposit sports wagering as
authorized in section 99F.9 the statewide telephone number
authorized by the Iowa department of public health to provide
problem gambling information and extensive responsible gaming
features in addition to those described in section 99F.4,
subsection 22.
b. Establish, subject to commission approval, sports
wagering rules that specify the amounts to be paid on winning
sports wagers, the effect of changes in the scheduling of an
authorized sporting event subject to sports wagering, and the
source of the information used to determine the outcome of a
sports wager. The sports wagering rules shall be displayed in
the licensee’s sports wagering area, posted on the internet
site or mobile application used by the licensee to conduct
advance deposit sports wagering as authorized in section 99F.9,
and included in the terms and conditions of the licensee’s
advance deposit sports wagering system.
3. A licensee under this section may enter into operating
agreements with one or two entities to have up to a total of
two individually branded internet sites to conduct advance
deposit sports wagering for the licensee, unless one additional
operating agreement or individually branded internet site is
authorized by the commission.
4. A licensee issued a license to conduct sports wagering
under this section shall employ reasonable steps to prohibit
coaches, athletic trainers, officials, players, or other
individuals who participate in an authorized sporting event
that is the subject of sports wagering from sports wagering
under this chapter. In addition, a licensee shall employ
reasonable steps to prohibit persons who are employed in
a position with direct involvement with coaches, players,
-8-athletic trainers, officials, players, or participants in
an authorized sporting event that is the subject of sports
wagering from sports wagering under this chapter.
Sec. 11. Section 99F.8, Code 2019, is amended to read as
follows:
99F.8 Bond of licensee.
A licensee licensed under section 99F.7 shall post a bond
to the state of Iowa before the license is issued in a sum
as the commission shall fix, with sureties to be approved by
the commission. The bond shall be used to guarantee that the
licensee faithfully makes the payments, keeps its books and
records and makes reports, and conducts its gambling games and
sports wagering in conformity with this chapter and the rules
adopted by the commission. The bond shall not be canceled by
a surety on less than thirty days’ notice in writing to the
commission. If a bond is canceled and the licensee fails to
file a new bond with the commission in the required amount on
or before the effective date of cancellation, the licensee’s
license shall be revoked. The total and aggregate liability
of the surety on the bond is limited to the amount specified in
the bond.
Sec. 12. Section 99F.9, subsection 1, Code 2019, is amended
to read as follows:
1. Except as permitted in this section, the licensee shall
not permit no sports wagering or any form of wagering on
gambling games.
Sec. 13. Section 99F.9, Code 2019, is amended by adding the
following new subsection:
NEW SUBSECTION. 3A. a. For the purposes of this section,
unless the context otherwise requires:
(1) “Advance deposit sports wagering” means a method of
sports wagering in which an eligible individual may, in an
account established with a licensee under section 99F.7A,
deposit moneys into the account and use the account balance to
pay for sports wagering. Prior to January 1, 2021, an account
-9-must be established by an eligible individual in person with
a licensee.
(2) “Advance deposit sports wagering operator” means an
advance deposit sports wagering operator licensed by the
commission who has entered into an agreement with a licensee
under section 99F.7A to provide advance deposit sports
wagering.
(3) “Eligible individual” means an individual who is at
least twenty-one years of age or older who is located within
this state.
b. The commission may authorize a licensee under section
99F.7A to conduct advance deposit sports wagering. An advance
deposit sports wager may be placed in person in the sports
wagering area, or from any other location via a telephone-type
device or any other electronic means. The commission may also
issue an advance deposit sports wagering operator license to
an entity who complies with this subsection and section 99F.6
and may require the advance deposit sports wagering operator to
conduct an audit consistent with the requirements of section
99F.13.
c. An unlicensed person taking or receiving sports wagers
from residents of this state is guilty of a class “D” felony.
Sec. 14. Section 99F.9, subsection 4, Code 2019, is amended
to read as follows:
4. A person under the age of twenty-one years shall not make
or attempt to make a wager pursuant to subsection 3A or on an
excursion gambling boat, gambling structure, or in a racetrack
enclosure and shall not be allowed on the gaming floor of
an excursion gambling boat or gambling structure or in the
wagering area, as defined in section 99D.2, or on the gaming
floor of a racetrack enclosure. However, a person eighteen
years of age or older may be employed to work on the gaming
floor of an excursion gambling boat or gambling structure or
in the wagering area or on the gaming floor of a racetrack
enclosure. A person who violates this subsection with respect
-10-to making or attempting to make a wager commits a scheduled
violation under section 805.8C, subsection 5, paragraph “a”.
Sec. 15. Section 99F.11, subsection 3, unnumbered paragraph
1, Code 2019, is amended to read as follows:
The taxes imposed by this section on adjusted gross receipts
from gambling games authorized under this chapter shall be paid
by the licensee to the treasurer of state within ten days after
the close of the day when the wagers were made and shall be
distributed as follows:
Sec. 16. Section 99F.11, Code 2019, is amended by adding the
following new subsection:
NEW SUBSECTION. 4. a. A tax is imposed on the sports
wagering net receipts received each fiscal year by a licensed
operator from sports wagering authorized under this chapter at
the rate of six and three-quarters percent.
b. The taxes imposed by this subsection for sports wagering
authorized under this chapter shall be paid by the licensed
operator to the treasurer of state as determined by the
commission and shall be credited as provided in section 8.57,
subsection 6.
Sec. 17. Section 99F.12, subsection 2, Code 2019, is amended
to read as follows:
2. a. The licensee shall furnish to the commission reports
and information as the commission may require with respect to
the licensee’s activities.
b. A licensee under section 99F.7A shall promptly report
to the commission any criminal or disciplinary proceedings
commenced against the licensee or its employees in connection
with the licensee conducting sports wagering or advance
deposit sports wagering, any abnormal wagering activity or
patterns that may indicate a concern about the integrity of an
authorized sporting event or events, and any other conduct with
the potential to corrupt a wagering outcome of an authorized
sporting event for purposes of financial gain, including
but not limited to match fixing, and suspicious or illegal
-11-wagering activities, including the use of funds derived from
illegal activity, wagers to conceal or launder funds derived
from illegal activity, use of agents to place wagers, or use
of false identification. The commission is required to share
any information received pursuant to this paragraph with the
division of criminal investigation, any other law enforcement
entity upon request, or any regulatory agency the commission
deems appropriate. The commission shall promptly report any
information received pursuant to this paragraph with any
sports team or sports governing body as the commission deems
appropriate, but shall not share any information that would
interfere with an ongoing criminal investigation.
c. The gross receipts and adjusted gross receipts from
gambling shall be separately handled and accounted for from
all other moneys received from operation of an excursion
gambling boat or from operation of a racetrack enclosure or
gambling structure licensed to conduct gambling games. The
commission may designate a representative to board a licensed
excursion gambling boat or to enter a racetrack enclosure or
gambling structure licensed to conduct gambling games. The
representative shall have full access to all places within the
enclosure of the boat, the gambling structure, or the racetrack
enclosure and shall directly supervise the handling and
accounting of all gross receipts and adjusted gross receipts
from gambling. The representative shall supervise and check
the admissions. The compensation of a representative shall be
fixed by the commission but shall be paid by the licensee.
d. With the approval of the commission, a licensee under
section 99F.7A shall cooperate with investigations conducted
by sports governing bodies, including but not limited to
providing or facilitating the provision of account-level
betting information and audio or video files relating to
persons placing wagers. However, a licensee shall not share
information that would interfere with an ongoing criminal
investigation.
-12- Sec. 18. Section 99F.15, subsection 1, paragraph c, Code
2019, is amended to read as follows:
c. Acting, or employing a person to act, as a shill or
decoy to encourage participation in a gambling game or sports
wagering.
Sec. 19. Section 99F.15, subsection 4, paragraphs d, h, and
i, Code 2019, are amended to read as follows:
d. Cheats at a gambling game, including but not limited to
committing any act which alters the outcome of the game, or
cheats at sports wagering.
h. Claims, collects, or takes, or attempts to claim,
collect, or take, money or anything of value in or from the
gambling games or sports wagering, with intent to defraud,
without having made a wager contingent on winning a gambling
game or sports wager, or claims, collects, or takes an amount
of money or thing of value of greater value than the amount
won.
i. Knowingly entices or induces a person to go to any place
where a gambling game or sports wagering is being conducted or
operated in violation of the provisions of this chapter with
the intent that the other person plays or participates in that
gambling game or sports wagering.
Sec. 20. Section 99F.20, subsection 1, Code 2019, is amended
to read as follows:
1. A gaming regulatory revolving fund is created in
the state treasury under the control of the department of
inspections and appeals. The fund shall consist of fees
collected and deposited into the fund paid by licensees
pursuant to section 99D.14, subsection 2, paragraph “c”, fees
paid by licensees pursuant to section 99E.5, subsection 4,
paragraph “c”, regulatory fees paid by licensees pursuant
to section 99F.4, subsection 27, and fees paid by licensees
pursuant to section 99F.10, subsection 4, paragraph “c”. All
costs relating to racetrack, excursion boat, and gambling
structure, internet fantasy sports contests as defined in
-13-section 99E.1, and sports wagering regulation shall be paid
from the fund as provided in appropriations made for this
purpose by the general assembly. The department shall provide
quarterly reports to the department of management and the
legislative services agency specifying revenues billed and
collected and expenditures from the fund in a format as
determined by the department of management in consultation with
the legislative services agency.
Sec. 21. EMERGENCY RULES. The state racing and gaming
commission created under section 99D.5 may adopt emergency
rules under section 17A.4, subsection 3, and section 17A.5,
subsection 2, paragraph “b”, to implement the provisions of
this division of this Act and the rules shall be effective
immediately upon filing unless a later date is specified in the
rules but in no event earlier than July 4, 2019. Any rules
adopted in accordance with this section shall also be published
as a notice of intended action as provided in section 17A.4.
Sec. 22. IMPLEMENTATION. The racing and gaming commission
shall not implement this division of this Act until the later
of July 4, 2019, or the date the commission has adopted rules
pursuant to chapter 17A providing for such implementation and
such rules have become effective.
Sec. 23. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
DIVISION II
FANTASY SPORTS CONTESTS
Sec. 24. Section 80.25A, Code 2019, is amended to read as
follows:
80.25A Pari-mutuel and gambling game Gaming operations
investigation and enforcement.
The commissioner of public safety shall direct the chief
of the division of criminal investigation to establish a
subdivision to be the primary criminal investigative and
enforcement agency for the purpose of enforcement of chapters
99D, 99E, and 99F. The commissioner of public safety shall
-14-appoint or assign other agents to the division as necessary to
enforce chapters 99D, 99E, and 99F. All enforcement officers,
assistants, and agents of the division are subject to section
80.15 except clerical workers.
Sec. 25. Section 80.43, subsection 1, Code 2019, is amended
to read as follows:
1. A gaming enforcement revolving fund is created in the
state treasury under the control of the department. The fund
shall consist of fees collected and deposited into the fund
paid by licensees pursuant to section 99D.14, subsection 2,
paragraph “b”, fees and costs paid by applicants pursuant
to section 99E.4, subsection 4, and fees paid by licensees
pursuant to section 99F.10, subsection 4, paragraph “b”. All
costs for agents and officers plus any direct support costs
for such agents and officers of the division of criminal
investigation’s racetrack, excursion boat, or gambling
structure, and internet fantasy sports contests as defined in
section 99E.1 enforcement activities shall be paid from the
fund as provided in appropriations made for this purpose by the
general assembly.
Sec. 26. NEW SECTION. 99E.1 Definitions.
As used in this chapter, unless the context otherwise
requires:
1. “Applicant” means an internet fantasy sports contest
service provider applying for a license to conduct internet
fantasy sports contests under this chapter.
2. “Commission” means the state racing and gaming commission
created under section 99D.5.
3. “Fantasy sports contest” includes any fantasy or
simulated game or contest in which the fantasy sports contest
operator is not a participant in the game or contest, the value
of all prizes and awards offered to winning participants are
established and made known to the participants in advance
of the contest, all winning outcomes reflect the relative
knowledge and skill of the participants and shall be determined
-15-by accumulated statistical results of the performance of
individuals, including athletes in the case of sporting events,
and no winning outcome is solely based on the score, point
spread, or any performance or performances of any single actual
team or solely on any single performance of an individual
athlete or player in any single actual event. However, until
May 1, 2020, “fantasy sports contest” does not include any
fantasy or simulated game or contest in which any winning
outcomes are based on statistical results from a collegiate
sporting event as defined in section 99F.1.
4. “Internet fantasy sports contest” means a method of
entering a fantasy sports contest by which a person may
establish an account with an internet fantasy sports contest
service provider, deposit money into the account, and use
the account balance for entering a fantasy sports contest by
utilizing electronic communication.
5. “Internet fantasy sports contest adjusted revenues” means,
for each internet fantasy sports contest, the amount equal to
the total charges and fees collected from all participants
entering the internet fantasy sports contest less winnings paid
to participants in the contest, multiplied by the location
percentage.
6. “Internet fantasy sports contest player” means a person
who is at least twenty-one years of age and participates in an
internet fantasy sports contest operated by an internet fantasy
sports contest service provider.
7. “Internet fantasy sports contest service provider” means
a person, including a licensee under chapter 99D or 99F, who
conducts an internet fantasy sports contest as authorized by
this chapter.
8. “Licensee” means any person licensed under section 99E.5
to conduct internet fantasy sports contests.
9. “Location percentage” means, for each internet fantasy
sports contest, the percentage, rounded to the nearest tenth of
a percent, equal to the total charges and fees collected from
-16-all internet fantasy sports contest players located in this
state divided by the total charges and fees collected from all
participants in the internet fantasy sports contest.
Sec. 27. NEW SECTION. 99E.2 Internet fantasy sports
contests authorized.
The system of entering an internet fantasy sports contest as
provided by this chapter is legal when conducted by a licensed
internet fantasy sports contest service provider as provided in
this chapter.
Sec. 28. NEW SECTION. 99E.3 Commission — powers.
1. The commission shall have full jurisdiction over and
shall supervise internet fantasy sports contests and internet
fantasy sports contest service providers as governed by this
chapter.
2. The commission shall have the following powers and shall
adopt rules pursuant to chapter 17A to administer and implement
this chapter:
a. To review and investigate applicants and determine the
eligibility of applicants for a license to conduct internet
fantasy sports contests, pursuant to rules adopted by the
commission.
b. To license and regulate internet fantasy sports contest
service providers subject to the requirements of this chapter.
c. To provide for the prevention of practices detrimental to
the public and to provide for the best interests of internet
fantasy sports contests.
d. To investigate alleged violations of this chapter
or the commission rules, orders, or final decisions and to
take appropriate disciplinary action against a licensee, or
institute appropriate legal action for enforcement, or both.
Information gathered during an investigation is confidential
during the pendency of the investigation.
e. To assess fines and revoke or suspend licenses and to
impose penalties for violations of this chapter.
f. To take any other action as may be reasonable or
-17-appropriate to enforce this chapter and the commission rules.
Sec. 29. NEW SECTION. 99E.4 Requirements of applicant —
fee.
1. An applicant for a license to conduct internet fantasy
sports contests shall complete and sign an application on
the form prescribed and published by the commission. The
application shall include such information of the applicant
that the commission deems necessary for purposes of issuing a
license pursuant to this chapter.
2. An applicant shall submit fingerprints and information
that the commission deems necessary to the commission in the
manner prescribed on the application forms. The fingerprints
may be submitted to the federal bureau of investigation by
the department of public safety through the state criminal
history repository for the purpose of a national criminal
history check. The results of a criminal history record check
conducted pursuant to this subsection shall be considered a
confidential record under chapter 22.
3. Before a license is granted, the division of criminal
investigation of the department of public safety shall conduct
a thorough background investigation of the applicant for a
license to conduct internet fantasy sports contests. The
applicant shall provide information on a form as required by
the division of criminal investigation.
4. The commission shall charge the applicant a reasonable
fee set by the division of criminal investigation of the
department of public safety, to defray those costs associated
with the fingerprint and national criminal history check
requirements of subsection 2 and background investigations
conducted by agents of the division of criminal investigation
as provided in subsection 3. These fees and costs are in
addition to any other license fees and costs charged by the
commission. The fees and costs received by the commission
shall be deposited in the gaming enforcement revolving fund
established in section 80.43.
-18- 5. The commission shall not grant a license to an applicant
if there is substantial evidence that any of the following
apply:
a. A license issued to the applicant to conduct internet
fantasy sports contests in another jurisdiction has been
revoked, or a request for a license to conduct internet fantasy
sports contests in another jurisdiction has been denied, by
an entity licensing persons to conduct such contests in that
jurisdiction.
b. The applicant has not demonstrated financial
responsibility sufficient to adequately meet the requirements
of the enterprise proposed.
c. The applicant does not adequately disclose the true
owners of the enterprise proposed.
d. The applicant has knowingly made a false statement of a
material fact to the commission.
e. The applicant has failed to meet a monetary obligation in
connection with conducting an internet fantasy sports contest.
f. The applicant is not of good repute and moral character
or the applicant has pled guilty to, or has been convicted of,
a felony.
g. Any member of the board of directors of the applicant is
not twenty-one years of age or older.
6. A person who knowingly makes a false statement on the
application is guilty of an aggravated misdemeanor.
7. For the purposes of this section, “applicant” includes
each member of the board of directors of an internet fantasy
sports contest service provider.
Sec. 30. NEW SECTION. 99E.5 Licenses — fees — terms and
conditions — revocation.
1. If the commission is satisfied that the requirements
of this chapter and its rules adopted under this chapter
applicable to licensees have been or will be complied with, the
commission shall, upon payment of an initial license fee of
five thousand dollars, issue a license for a period of not more
-19-than three years to an applicant to conduct internet fantasy
sports contests in this state.
2. A licensed internet fantasy sports contest service
provider shall use reasonable methods to comply with all of the
following requirements:
a. Prevent employees of the internet fantasy sports contest
service provider and relatives living in the same household of
such employees from competing in any internet fantasy sports
contest on the service provider’s digital platform in which the
service provider offers a cash prize to the public.
b. Verify that an internet fantasy sports contest player
located in this state is twenty-one years of age or older.
c. Ensure that coaches, officials, players, contestants,
or other individuals who participate in a game or contest
that is the subject of an internet fantasy sports contest are
restricted from entering an internet fantasy sports contest in
which the outcome is determined, in whole or in part, by the
accumulated statistical results of a team of individuals in the
game or contest in which they participate.
d. Include on the internet site or mobile application used
by the licensee to conduct internet fantasy sports contests the
statewide telephone number authorized by the Iowa department
of public health to provide problem gambling information and
extensive responsible gaming features in addition to those
described in section 99F.4, subsection 22.
e. Allow individuals to establish an account with an
internet fantasy sports contest service provider by utilizing
electronic communication.
f. Disclose the number of entries a single internet fantasy
sports contest player may submit to each internet fantasy
sports contest and take reasonable steps to prevent players
from submitting more than the allowable number of entries for
that internet fantasy sports contest.
g. Segregate internet fantasy sports contest player funds
from operational funds or maintain a reserve in the form of
-20-cash, cash equivalents, an irrevocable letter of credit,
payment processor reserves and receivables, a bond, or a
combination thereof in the amount of the deposits in internet
fantasy sports contest player accounts for the benefit and
protection of internet fantasy sports contest player funds held
in internet fantasy sports contest accounts by the internet
fantasy sports contest service provider.
h. Conduct an annual audit under section 99E.9.
i. Pay the tax as provided in section 99E.6.
3. The annual license fee to conduct internet fantasy sports
contests shall be one thousand dollars or, for a licensed
internet fantasy sports contest service provider with total
annual internet fantasy sports contest adjusted revenues for
the year prior to the annual license fee renewal date of
one hundred fifty thousand dollars or greater, five thousand
dollars. Moneys collected by the commission from the license
fees paid under this section shall be considered repayment
receipts as defined in section 8.2.
4. a. A licensed internet fantasy sports contest service
provider shall pay a regulatory fee to the commission. The
regulatory fee shall be established by the commission based on
the costs of administering and enforcing this chapter.
b. A licensed internet fantasy sports contest service
provider shall receive a credit for the amount of the
regulatory fee paid by the provider against the taxes to be
paid pursuant to section 99E.6.
c. Notwithstanding section 8.60, the portion of the fee
paid pursuant to paragraph “a” relating to the costs of the
commission shall be deposited into the gaming regulatory
revolving fund established in section 99F.20.
5. Upon a violation of any of the conditions listed in
section 99E.4 or this section by a licensee, the commission
shall immediately revoke the license.
Sec. 31. NEW SECTION. 99E.6 Internet fantasy sports contest
tax — rate.
-21- 1. A tax is imposed on internet fantasy sports contest
adjusted revenues received each fiscal year by an internet
fantasy sports contest service provider from internet fantasy
sports contests authorized under this chapter at the rate of
six and three-quarters percent.
2. The taxes imposed by this section for internet fantasy
sports contests authorized under this chapter shall be paid by
the internet fantasy sports contest service provider to the
treasurer of state as determined by the commission and shall be
credited as provided in section 8.57, subsection 6.
Sec. 32. NEW SECTION. 99E.7 Internet fantasy sports
contests — age restrictions.
A person under the age of twenty-one years shall not enter an
internet fantasy sports contest. A person who violates this
section with respect to entering an internet fantasy sports
contest commits a scheduled violation under section 805.8C,
subsection 12.
Sec. 33. NEW SECTION. 99E.8 Licensees — records — reports
— confidentiality.
1. An internet fantasy sports contest service provider
shall keep its books and records so as to clearly show the
internet fantasy sports contest adjusted revenues for each
internet fantasy sports contest subject to tax in this state.
2. a. The licensee shall furnish to the commission reports
and information as the commission may require with respect to
the licensee’s activities.
b. A licensee shall promptly report to the commission any
criminal or disciplinary proceedings commenced against the
licensee or its employees in connection with the licensee
conducting an internet fantasy sports contest, any abnormal
contest activity or patterns that may indicate a concern about
the integrity of an internet fantasy sports contest, and any
other conduct with the potential to corrupt an outcome of an
internet fantasy sports contest for purposes of financial gain,
including but not limited to match fixing, and suspicious or
-22-illegal internet fantasy sports contest activities, including
the use of funds derived from illegal activity, deposits of
money to enter an internet fantasy sports contest to conceal
or launder funds derived from illegal activity, use of agents
to enter an internet fantasy sports contest, or use of false
identification. The commission is required to share any
information received pursuant to this paragraph with the
division of criminal investigation, any other law enforcement
entity upon request, or any regulatory agency the commission
deems appropriate. The commission shall promptly report any
information received pursuant to this paragraph with any
sports team or sports governing body as the commission deems
appropriate, but shall not share any information that would
interfere with an ongoing criminal investigation.
3. Except as provided in subsection 4, the books and records
kept by a licensee as provided by this section are public
records and the examination, publication, and dissemination of
the books and records are governed by the provisions of chapter
22.
4. The records of the commission shall be governed by the
provisions of chapter 22, provided that, in addition to records
that may be kept confidential pursuant to section 22.7, the
following records provided by a licensee to the commission
shall be kept confidential, unless otherwise ordered by a
court, by the lawful custodian of the records, or by another
person duly authorized to release such information:
a. Patron and customer records.
b. Security reports and network audits.
c. Internal control and compliance records.
d. Employee records.
e. Marketing expenses.
f. Supplemental schedules to the certified audit, except for
those books and records as described in subsection 1 of this
section, that are obtained by the commission in connection with
the annual audit under section 99E.9.
-23- g. Any information specifically requested for inspection by
the commission or a representative of the commission.
Sec. 34. NEW SECTION. 99E.9 Annual audit of licensee
operations.
Within one hundred eighty days after the end of the
licensee’s fiscal year, the licensee shall transmit to the
commission an audit of the licensee’s total internet fantasy
sports contest operations, including an itemization of all
expenses and subsidies. Each audit shall be conducted by a
certified public accountant authorized to practice in the state
of Iowa under chapter 542 who is selected by the licensee and
approved by the commission.
Sec. 35. NEW SECTION. 99E.10 Civil penalty.
A person who willfully fails to comply with the requirements
of this chapter and the rules adopted pursuant to chapter 17A
under this chapter shall be liable for a civil penalty of not
more than one thousand dollars for each violation, not to
exceed ten thousand dollars for violations arising out of the
same transaction or occurrence, which shall accrue to the state
and may be recovered in a civil action.
Sec. 36. Section 99F.2, Code 2019, is amended to read as
follows:
99F.2 Scope of provisions.
This chapter does not apply to the pari-mutuel system of
wagering used or intended to be used in connection with the
horse-race or dog-race meetings as authorized under chapter
99D, internet fantasy sports contests authorized under chapter
99E, lottery or lotto games authorized under chapter 99G, or
bingo or games of skill or chance authorized under chapter 99B.
Sec. 37. Section 99F.4B, Code 2019, is amended to read as
follows:
99F.4B Rules.
The department of inspections and appeals shall cooperate
to the maximum extent possible with the division of criminal
investigation in adopting rules relating to the gaming
-24-operations in this chapter and chapter chapters 99D and 99E.
Sec. 38. Section 232C.4, subsection 3, Code 2019, is amended
to read as follows:
3. An emancipated minor shall remain subject to voting
restrictions under chapter 48A, gambling restrictions under
chapter 99B, 99D, 99F, 99G, or 725, internet fantasy sports
contest restrictions under chapter 99E, alcohol restrictions
under chapter 123, compulsory attendance requirements under
chapter 299, and cigarette tobacco restrictions under chapter
453A.
Sec. 39. Section 714B.10, subsection 1, Code 2019, is
amended to read as follows:
1. Advertising by sponsors registered pursuant to chapter
557B, licensed pursuant to chapter 99B, or regulated pursuant
to chapter 99D, 99E, 99F, or 99G.
Sec. 40. Section 725.7, subsection 1, paragraph e, Code
2019, is amended to read as follows:
e. Engage in bookmaking, except as permitted in chapters 99E
and 99F.
Sec. 41. Section 725.13, Code 2019, is amended to read as
follows:
725.13 Definition of bookmaking.
“Bookmaking” means advancing gambling activity by accepting
bets upon the outcome of future contingent events as a business
other than as permitted in chapters 99B, 99D, 99E, and 99F.
These events include, but are not limited to, the results of
a trial or contest of skill, speed, power, or endurance of
a person or beast or between persons, beasts, fowl, motor
vehicles, or mechanical apparatus or upon the result of any
chance, casualty, unknown, or contingent event.
Sec. 42. Section 725.15, Code 2019, is amended to read as
follows:
725.15 Exceptions for legal gambling.
Sections 725.5 through 725.10 and 725.12 do not apply to
a game, activity, ticket, or device when lawfully possessed,
-25-used, conducted, or participated in pursuant to chapter 99B,
99E, 99F, or 99G.
Sec. 43. Section 805.8C, Code 2019, is amended by adding the
following new subsection:
NEW SUBSECTION. 12. Internet fantasy sports contest
violations. For violations of legal age for entering an
internet fantasy sports contest under section 99E.7, the
scheduled fine is five hundred dollars. Failure to pay the
fine by a person under the age of eighteen shall not result in
the person being detained in a secure facility.
Sec. 44. EMERGENCY RULES. The state racing and gaming
commission created under section 99D.5 may adopt emergency
rules under section 17A.4, subsection 3, and section 17A.5,
subsection 2, paragraph “b”, to implement the provisions of
this division of this Act and the rules shall be effective
immediately upon filing unless a later date is specified in the
rules but in no event earlier than July 4, 2019. Any rules
adopted in accordance with this section shall also be published
as a notice of intended action as provided in section 17A.4.
Sec. 45. IMPLEMENTATION. The racing and gaming commission
shall not implement this division of this Act until the later
of July 4, 2019, or the date the commission has adopted rules
pursuant to chapter 17A providing for such implementation and
such rules have become effective.
Sec. 46. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
DIVISION III
GAMBLING REGULATION
Sec. 47. Section 8.57, Code 2019, is amended by adding the
following new subsection:
NEW SUBSECTION. 6. a. A sports wagering receipts fund is
created under the authority of the department of management.
The fund shall consist of appropriations made to the fund and
transfers of interest, earnings, and moneys from other funds
or sources as provided by law. The sports wagering receipts
-26-fund shall be separate from the general fund of the state and
the balance in the sports wagering receipts fund shall not
be considered part of the balance of the general fund of the
state. However, the sports wagering receipts fund shall be
considered a special account for the purposes of section 8.53,
relating to generally accepted accounting principles.
b. Moneys in the sports wagering receipts fund are not
subject to section 8.33. Notwithstanding section 12C.7,
subsection 2, interest or earnings on moneys in the sports
wagering receipts fund shall be credited to the fund. Moneys
in the sports wagering receipts fund may be used for cash flow
purposes during a fiscal year provided that any moneys so
allocated are returned to the fund by the end of that fiscal
year.
c. Moneys in the sports wagering receipts fund in a fiscal
year shall be used as directed by the general assembly.
d. Annually, on or before January 15 of each year, a
state agency that received an appropriation from the sports
wagering receipts fund shall report to the legislative services
agency and the department of management the status of all
projects completed or in progress. The report shall include
a description of the project, the progress of work completed,
the total estimated cost of the project, a list of all revenue
sources being used to fund the project, the amount of funds
expended, the amount of funds obligated, and the date the
project was completed or an estimated completion date of the
project, where applicable.
e. Annually, on or before December 31 of each year, a
recipient of moneys from the sports wagering receipts fund
for any purpose shall report to the state agency to which the
moneys are appropriated the status of all projects completed
or in progress. The report shall include a description of the
project, the progress of work completed, the total estimated
cost of the project, a list of all revenue sources being used
to fund the project, the amount of funds expended, the amount
-27-of funds obligated, and the date the project was completed or
an estimated completion date of the project, where applicable.
Sec. 48. Section 15E.311, subsection 3, paragraph a, Code
2019, is amended to read as follows:
a. At the end of each fiscal year, moneys in the fund
shall be transferred into separate accounts within the fund
and designated for use by each county in which no licensee
authorized to conduct gambling games under chapter 99F was
located during that fiscal year. Moneys transferred to
county accounts shall be divided equally among the counties.
Moneys transferred into an account for a county shall be
transferred by the department to an eligible county recipient
for that county. Of the moneys transferred, an eligible county
recipient shall distribute seventy-five percent of the moneys
as grants to charitable organizations for charitable purposes
in that county and shall retain twenty-five percent of the
moneys for use in establishing a permanent endowment fund
for the benefit of charitable organizations for charitable
purposes. In addition, of the moneys transferred from moneys
appropriated to the fund from the sports wagering receipts
fund created in section 8.57, subsection 6, and distributed,
eligible county recipients shall give consideration for grants,
upon application, to a charitable organization that operates
a racetrack facility that conducts automobile races in that
county. Of the amounts distributed, eligible county recipients
shall give special consideration to grants for projects that
include significant vertical infrastructure components designed
to enhance quality of life aspects within local communities.
In addition, as a condition of receiving a grant, the governing
body of a charitable organization receiving a grant shall
approve all expenditures of grant moneys and shall allow a
state audit of expenditures of all grant moneys.
Sec. 49. Section 99B.41, Code 2019, is amended by adding the
following new subsection:
NEW SUBSECTION. 1A. “Social fantasy sports contest” means
-28-any fantasy or simulated game or contest in which the value
of all prizes and awards offered to winning participants are
established and made known to the participants in advance of
the contest and do not exceed a total of one thousand dollars
or equivalent consideration, all winning outcomes reflect
the relative knowledge and skill of the participants and
shall be determined by accumulated statistical results of the
performance of individuals in events occurring over more than
a twenty-four-hour period, including athletes in the case of
sporting events, and no winning outcome is solely based on the
score, point spread, or any performance or performances of
any single actual team or solely on any single performance of
an individual athlete or player in any single actual event.
“Social fantasy sports contest” does not include an internet
fantasy sports contest as defined in section 99E.1.
Sec. 50. Section 99B.45, subsection 2, Code 2019, is amended
by adding the following new paragraph:
NEW PARAGRAPH. c. A social fantasy sports contest.
Sec. 51. Section 99F.6, Code 2019, is amended by adding the
following new subsection:
NEW SUBSECTION. 9. The board of directors of a qualified
sponsoring organization licensed to operate gambling games
under this chapter shall be residents of this state and shall
include, as ex officio, nonvoting members of the board, a
member of the county board of supervisors and a member of a
city council for each county and city that has a licensed
gambling games facility operated by the qualified sponsoring
organization. The ex officio members shall serve terms of the
same duration as voting members of the board. However, this
subsection shall not apply to an agency, instrumentality, or
political subdivision of the state that is licensed to conduct
gambling games under this chapter.
Sec. 52. EFFECTIVE DATE. The following, being deemed of
immediate importance, takes effect upon enactment:
The section of this division of this Act amending section
-29-8.57.
______________________________
CHARLES SCHNEIDER
President of the Senate
______________________________
LINDA UPMEYER
Speaker of the House
I hereby certify that this bill originated in the Senate and
is known as Senate File 617, Eighty-eighth General Assembly.
______________________________
W. CHARLES SMITHSON
Secretary of the Senate
Approved _______________, 2019
______________________________
KIM REYNOLDS
Governor
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