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House File 2380 - IntroducedA Bill ForAn Act 1relating to promotional play receipts, gambling games,
2and sports wagering.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 99F.1, subsections 1, 25, and 30, Code
22020, are amended to read as follows:
31. “Adjusted gross receipts” means the gross receipts on
4gambling games less winnings paid to wagerers on gambling games
5and less promotional play receipts on gambling games. However,
6for each fiscal year during the time period beginning July 1,
72020, and ending June 30, 2024, “adjusted gross receipts” does
8not shall include promotional play receipts received after the
9date in any fiscal year that the commission determines that
10the wagering tax imposed pursuant to section 99F.11 on all
11licensees in that fiscal year on promotional play receipts
12exceeds twenty-five million eight hundred twenty thousand
13dollars on gambling games.
1425. “Promotional play receipts” means the total sums wagered
15on gambling games with tokens, chips, electronic credits, or
16other forms of cashless wagering provided by the licensee
17without an exchange of money as described in section 99F.9,
18subsection 3.
1930. “Sports wagering net receipts” means the gross receipts
20less winnings paid to wagerers and less promotional play
21receipts on sports wagering.
22 Sec. 2. Section 99F.6, subsection 4, paragraph a,
23subparagraphs (3) and (5), Code 2020, are amended to read as
24follows:
25(3) The commission shall authorize, subject to the debt
26payments for horse racetracks and the provisions of paragraph
27“b” for dog racetracks, a licensee who is also licensed to
28conduct pari-mutuel dog or horse racing to use receipts
29from gambling games and sports wagering within the racetrack
30enclosure to supplement purses for races particularly for
31Iowa-bred horses pursuant to an agreement which shall be
32negotiated between the licensee and representatives of the
33dog or horse owners. For agreements subject to commission
34approval concerning purses for horse racing beginning on or
35after January 1, 2006, the agreements shall provide that total
-1-1annual purses for all horse racing shall be four percent of
2sports wagering net receipts and promotional play receipts on
3sports wagering and no less than eleven percent of the first
4two hundred million dollars of net receipts, and six percent of
5net receipts above two hundred million dollars. In addition,
6live standardbred horse racing shall not be conducted at the
7horse racetrack in Polk county, but the purse moneys designated
8for standardbred racing pursuant to section 99D.7, subsection
95, paragraph “b”, shall be included in calculating the total
10annual purses required to be paid pursuant to this subsection.
11Agreements that are subject to commission approval concerning
12horse purses for a period of time beginning on or after January
131, 2006, shall be jointly submitted to the commission for
14approval.
15(5) For purposes of this paragraph, “net receipts” means
16the annual adjusted gross receipts from all gambling games
17and, beginning July 1, 2024, promotional play receipts on all
18gambling games less the annual amount of money pledged by the
19owner of the facility to fund a project approved to receive
20vision Iowa funds as of July 1, 2004.
21 Sec. 3. Section 99F.11, Code 2020, is amended by adding the
22following new subsection:
23 NEW SUBSECTION. 2A. a. Notwithstanding any provision
24of this section to the contrary, the tax rate imposed on a
25licensee each fiscal year on any amount of promotional pay
26receipts on gambling games included as adjusted gross receipts
27shall be determined by multiplying the adjusted percentage
28by the wagering tax applicable to the licensee pursuant to
29subsection 2.
30b. For purposes of this subsection, “adjusted percentage”
31means as follows:
32(1) For the fiscal year beginning July 1, 2020, and ending
33June 30, 2021, eighty percent.
34(2) For the fiscal year beginning July 1, 2021, and ending
35June 30, 2022, sixty percent.
-2- 1(3) For the fiscal year beginning July 1, 2022, and ending
2June 30, 2023, forty percent.
3(4) For the fiscal year beginning July 1, 2023, and ending
4June 30, 2024, twenty percent.
5c. This subsection is repealed July 1, 2024.
6EXPLANATION
7The inclusion of this explanation does not constitute agreement with
8the explanation’s substance by the members of the general assembly.
9This bill concerns promotional play receipts for purposes of
10Code chapter 99F governing gambling games and sports wagering.
11Code section 99F.1, concerning definitions, is amended.
12The bill amends the definition of adjusted gross receipts on
13gambling games to provide that adjusted gross receipts includes
14promotional play receipts through June 30, 2024, and excludes
15them thereafter. Currently, adjusted gross receipts includes
16promotional play receipts until the date in any fiscal year
17that the wagering tax on the portion of adjusted gross receipts
18representing promotional play receipts exceeds $25,820,000.
19The bill also amends the definition of sports wagering net
20receipts to exclude promotional play receipts on sports
21wagering.
22Code section 99F.6, concerning applicant requirements, is
23amended to provide that promotional play receipts on sports
24wagering and gambling games shall be included for purposes of
25determining total annual purses for horse racing.
26Code section 99F.11, establishing tax rates for gambling
27games and sports wagering, is amended. The bill establishes
28a new subsection that provides for a different tax rate to be
29applied to promotional play receipts as a portion of adjusted
30gross receipts on gambling games. The bill provides that the
31applicable tax rate is the rate applied per licensee pursuant
32to subsection 2 multiplied by an adjusted percentage. The bill
33provides that the adjusted percentage for FY 2020-2021 is 80
34percent, for FY 2021-2022, 60 percent, for FY 2022-2023, 40
35percent, and for FY 2023-2024, 20 percent. This new subsection
-3-1is repealed July 1, 2024.
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2and sports wagering.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 99F.1, subsections 1, 25, and 30, Code
22020, are amended to read as follows:
31. “Adjusted gross receipts” means the gross receipts on
4gambling games less winnings paid to wagerers on gambling games
5and less promotional play receipts on gambling games. However,
6for each fiscal year during the time period beginning July 1,
72020, and ending June 30, 2024, “adjusted gross receipts” does
8not shall include promotional play receipts received after the
9date in any fiscal year that the commission determines that
10the wagering tax imposed pursuant to section 99F.11 on all
11licensees in that fiscal year on promotional play receipts
12exceeds twenty-five million eight hundred twenty thousand
13dollars on gambling games.
1425. “Promotional play receipts” means the total sums wagered
15on gambling games with tokens, chips, electronic credits, or
16other forms of cashless wagering provided by the licensee
17without an exchange of money as described in section 99F.9,
18subsection 3.
1930. “Sports wagering net receipts” means the gross receipts
20less winnings paid to wagerers and less promotional play
21receipts on sports wagering.
22 Sec. 2. Section 99F.6, subsection 4, paragraph a,
23subparagraphs (3) and (5), Code 2020, are amended to read as
24follows:
25(3) The commission shall authorize, subject to the debt
26payments for horse racetracks and the provisions of paragraph
27“b” for dog racetracks, a licensee who is also licensed to
28conduct pari-mutuel dog or horse racing to use receipts
29from gambling games and sports wagering within the racetrack
30enclosure to supplement purses for races particularly for
31Iowa-bred horses pursuant to an agreement which shall be
32negotiated between the licensee and representatives of the
33dog or horse owners. For agreements subject to commission
34approval concerning purses for horse racing beginning on or
35after January 1, 2006, the agreements shall provide that total
-1-1annual purses for all horse racing shall be four percent of
2sports wagering net receipts and promotional play receipts on
3sports wagering and no less than eleven percent of the first
4two hundred million dollars of net receipts, and six percent of
5net receipts above two hundred million dollars. In addition,
6live standardbred horse racing shall not be conducted at the
7horse racetrack in Polk county, but the purse moneys designated
8for standardbred racing pursuant to section 99D.7, subsection
95, paragraph “b”, shall be included in calculating the total
10annual purses required to be paid pursuant to this subsection.
11Agreements that are subject to commission approval concerning
12horse purses for a period of time beginning on or after January
131, 2006, shall be jointly submitted to the commission for
14approval.
15(5) For purposes of this paragraph, “net receipts” means
16the annual adjusted gross receipts from all gambling games
17and, beginning July 1, 2024, promotional play receipts on all
18gambling games less the annual amount of money pledged by the
19owner of the facility to fund a project approved to receive
20vision Iowa funds as of July 1, 2004.
21 Sec. 3. Section 99F.11, Code 2020, is amended by adding the
22following new subsection:
23 NEW SUBSECTION. 2A. a. Notwithstanding any provision
24of this section to the contrary, the tax rate imposed on a
25licensee each fiscal year on any amount of promotional pay
26receipts on gambling games included as adjusted gross receipts
27shall be determined by multiplying the adjusted percentage
28by the wagering tax applicable to the licensee pursuant to
29subsection 2.
30b. For purposes of this subsection, “adjusted percentage”
31means as follows:
32(1) For the fiscal year beginning July 1, 2020, and ending
33June 30, 2021, eighty percent.
34(2) For the fiscal year beginning July 1, 2021, and ending
35June 30, 2022, sixty percent.
-2- 1(3) For the fiscal year beginning July 1, 2022, and ending
2June 30, 2023, forty percent.
3(4) For the fiscal year beginning July 1, 2023, and ending
4June 30, 2024, twenty percent.
5c. This subsection is repealed July 1, 2024.
6EXPLANATION
7The inclusion of this explanation does not constitute agreement with
8the explanation’s substance by the members of the general assembly.
9This bill concerns promotional play receipts for purposes of
10Code chapter 99F governing gambling games and sports wagering.
11Code section 99F.1, concerning definitions, is amended.
12The bill amends the definition of adjusted gross receipts on
13gambling games to provide that adjusted gross receipts includes
14promotional play receipts through June 30, 2024, and excludes
15them thereafter. Currently, adjusted gross receipts includes
16promotional play receipts until the date in any fiscal year
17that the wagering tax on the portion of adjusted gross receipts
18representing promotional play receipts exceeds $25,820,000.
19The bill also amends the definition of sports wagering net
20receipts to exclude promotional play receipts on sports
21wagering.
22Code section 99F.6, concerning applicant requirements, is
23amended to provide that promotional play receipts on sports
24wagering and gambling games shall be included for purposes of
25determining total annual purses for horse racing.
26Code section 99F.11, establishing tax rates for gambling
27games and sports wagering, is amended. The bill establishes
28a new subsection that provides for a different tax rate to be
29applied to promotional play receipts as a portion of adjusted
30gross receipts on gambling games. The bill provides that the
31applicable tax rate is the rate applied per licensee pursuant
32to subsection 2 multiplied by an adjusted percentage. The bill
33provides that the adjusted percentage for FY 2020-2021 is 80
34percent, for FY 2021-2022, 60 percent, for FY 2022-2023, 40
35percent, and for FY 2023-2024, 20 percent. This new subsection
-3-1is repealed July 1, 2024.
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