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House File 2497 - IntroducedA Bill ForAn Act 1relating to gambling regulation and wagering, concerning
2cashless wagering, forfeiture and withholding of certain
3gaming winnings, sports wagering, occupational licenses, and
4providing penalties.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2CASHLESS WAGERING
3 Section 1. Section 99D.9, subsection 6, paragraph b, Code
42022, is amended to read as follows:
5b. A licensee shall not permit a financial institution,
6vendor, or other person to dispense cash or credit through an
7electronic or mechanical device including but not limited to a
8satellite terminal as defined in section 527.2, that is located
9in the wagering area. However, this paragraph shall not apply
10to cashless wagering systems where a person accesses a cash
11account through a personal electronic device.
12 Sec. 2. Section 99F.7, subsection 10, paragraph b, Code
132022, is amended to read as follows:
14b. A licensee shall not permit a financial institution,
15vendor, or other person to dispense cash or credit through an
16electronic or mechanical device including but not limited to
17a satellite terminal, as defined in section 527.2, that is
18located on the gaming floor. However, this paragraph shall not
19apply to cashless wagering systems where a person accesses a
20cash account through a personal electronic device.
21DIVISION II
22Gaming winnings forfeiture and withholding
23 Sec. 3. Section 99D.7, subsection 23, Code 2022, is amended
24to read as follows:
2523. To establish a process to allow a person to be
26voluntarily excluded from advance deposit wagering as defined
27in section 99D.11, from an internet fantasy sports contest as
28defined in section 99E.1, from advance deposit sports wagering
29as defined in section 99F.9, and from the wagering area of
30a racetrack enclosure, from the gaming floor, and from the
31sports wagering area, as defined in section 99F.1, of all
32other licensed facilities under this chapter and chapter 99F
33as provided in this subsection. The process shall provide
34that an initial request by a person to be voluntarily excluded
35shall be for a period of five years or life and any subsequent
-1-1request following any five-year period shall be for a period of
2five years or life. The process established shall require that
3licensees be provided electronic access to names and social
4security numbers of persons voluntarily excluded through a
5secured interactive internet site maintained by the commission
6and information regarding persons voluntarily excluded shall
7be disseminated to all licensees under this chapter, chapter
899E, and chapter 99F. The names, social security numbers, and
9information regarding persons voluntarily excluded shall be
10kept confidential unless otherwise ordered by a court or by
11another person duly authorized to release such information.
12The process established shall also require a person requesting
13to be voluntarily excluded be provided information compiled
14by the Iowa department of public health on gambling treatment
15options. The state and any licensee under this chapter,
16chapter 99E, or chapter 99F shall not be liable to any person
17for any claim which may arise from this process. In addition
18to any other penalty provided by law, any money or thing of
19value that has been obtained by, or is owed to, a voluntarily
20excluded person as a result of wagers made by the person after
21the person has been voluntarily excluded shall be forfeited by
22the person and shall be credited to the general fund of the
23state. The state and any licensee under this chapter, chapter
2499E, or chapter 99F shall not be liable to any person for any
25claim, action, or inaction which may arise from processes
26described in this subsection, and any licensee under this
27chapter, chapter 99E, or chapter 99F shall not be responsible
28for payment to the state of any money or thing of value paid
29to a voluntarily excluded person. The commission shall not
30initiate any administrative action or impose penalties for
31unintentional licensee errors which may arise from processes
32described in this subsection.
33 Sec. 4. Section 99D.24, Code 2022, is amended by adding the
34following new subsection:
35 NEW SUBSECTION. 2A. A person who has been voluntarily
-2-1excluded pursuant to section 99D.7, subsection 23, who refuses
2to forfeit money or a thing of value obtained as a result of
3wagers made by the person after the person has been voluntarily
4excluded is guilty of a simple misdemeanor and shall pay
5restitution to the state in an amount equivalent to the money
6or thing of value obtained.
7 Sec. 5. Section 99D.28, subsections 2 and 7, Code 2022, are
8amended to read as follows:
92. The licensee is authorized and directed to withhold
10any winnings of a debtor which are paid out directly by the
11licensee subject to the lien created by this section and
12provide notice of such withholding to the winner when the
13winner appears and claims winnings in person. The licensee may
14retain an amount equal to the lesser of five percent of the
15amount withheld or one hundred dollars, and then shall pay the
16remaining funds over to the collection entity which administers
17the setoff program pursuant to section 8A.504.
187. A claimant agency or licensee, acting in good faith,
19 under this chapter or chapter 99F shall not be liable to any
20person for actions taken pursuant to any claim, action, or
21inaction which may arise from processes described in this
22section. In addition, any licensee under this chapter or
23chapter 99F shall not be responsible for payment to a claimant
24agency of any money or thing of value that has been paid to a
25debtor. The debtor shall be solely responsible for all debts
26owed and not collected under this section. The commission
27shall not initiate any administrative action or impose
28penalties for unintentional licensee errors which may arise
29from processes described in this section.
30 Sec. 6. Section 99F.4, subsection 22, Code 2022, is amended
31to read as follows:
3222. To establish a process to allow a person to be
33voluntarily excluded from advance deposit wagering as defined
34in section 99D.11, from an internet fantasy sports contest
35as defined in section 99E.1, from advance deposit sports
-3-1wagering as defined in section 99F.9, from the gaming floor
2and sports wagering area of an excursion gambling boat, from
3the wagering area, as defined in section 99D.2, and from the
4gaming floor and sports wagering area of all other licensed
5facilities under this chapter and chapter 99D as provided in
6this subsection. The process shall provide that an initial
7request by a person to be voluntarily excluded shall be for
8a period of five years or life and any subsequent request
9following any five-year period shall be for a period of five
10years or life. The process established shall require that
11licensees be provided electronic access to names and social
12security numbers of persons voluntarily excluded through a
13secured interactive internet site maintained by the commission
14and information regarding persons voluntarily excluded shall
15be disseminated to all licensees under this chapter, chapter
1699D, and chapter 99E. The names, social security numbers, and
17information regarding persons voluntarily excluded shall be
18kept confidential unless otherwise ordered by a court or by
19another person duly authorized to release such information.
20The process established shall also require a person requesting
21to be voluntarily excluded be provided information compiled
22by the Iowa department of public health on gambling treatment
23options. The state and any licensee under this chapter,
24chapter 99D, or chapter 99E shall not be liable to any person
25for any claim which may arise from this process. In addition
26to any other penalty provided by law, any money or thing of
27value that has been obtained by, or is owed to, a voluntarily
28excluded person as a result of wagers made by the person after
29the person has been voluntarily excluded shall be forfeited by
30the person and shall be credited to the general fund of the
31state. The state and any licensee under this chapter, chapter
3299D, or chapter 99E shall not be liable to any person for any
33claim, action, or inaction which may arise from processes
34described in this subsection, and any licensee under this
35chapter, chapter 99D, or chapter 99E shall not be responsible
-4-1for payment to the state of any money or thing of value paid
2to a voluntarily excluded person. The commission shall not
3initiate any administrative action or impose penalties for
4unintentional licensee errors which may arise from processes
5described in this subsection.
6 Sec. 7. Section 99F.15, Code 2022, is amended by adding the
7following new subsection:
8 NEW SUBSECTION. 2A. A person who has been voluntarily
9excluded pursuant to section 99F.4, subsection 22, who refuses
10to forfeit money or a thing of value obtained as a result of
11wagers made by the person after the person has been voluntarily
12excluded is guilty of a simple misdemeanor and shall pay
13restitution to the state in an amount equivalent to the money
14or thing of value obtained.
15 Sec. 8. Section 99F.19, subsections 2 and 7, Code 2022, are
16amended to read as follows:
172. The licensee is authorized and directed to withhold
18any winnings of a debtor which are paid out directly by the
19licensee subject to the lien created by this section and
20provide notice of such withholding to the winner when the
21winner appears and claims winnings in person. The licensee may
22retain an amount equal to the lesser of five percent of the
23amount withheld or one hundred dollars, and then shall pay the
24remaining funds over to the collection entity which administers
25the setoff program pursuant to section 8A.504.
267. A claimant agency or licensee, acting in good faith,
27 under this chapter or chapter 99D shall not be liable to any
28person for actions taken pursuant to any claim, action, or
29inaction which may arise from processes described in this
30section. In addition, any licensee under this chapter or
31chapter 99D shall not be responsible for payment to a claimant
32agency of any money or thing of value that has been paid to a
33debtor. The debtor shall be solely responsible for all debts
34owed and not collected under this section. The commission
35shall not initiate any administrative action or impose
-5-1penalties for unintentional licensee errors which may arise
2from processes described in this section.
3DIVISION III
4SPORTS WAGERING
5 Sec. 9. Section 99F.1, subsection 3, Code 2022, is amended
6to read as follows:
73. “Authorized sporting event” means a professional sporting
8event, collegiate sporting event, international sporting
9event, electronic sports event, or professional motor race
10event. “Authorized sporting event” does not include a race as
11defined in section 99D.2, a fantasy sports contest as defined
12in section 99E.1, minor league sporting event, or any athletic
13event or competition of an interscholastic sport as defined in
14section 9A.102.
15 Sec. 10. Section 99F.1, Code 2022, is amended by adding the
16following new subsection:
17 NEW SUBSECTION. 10A. “Electronic sports event” means
18a multiplayer video game event governed by a recognized
19professional, international, or collegiate video game governing
20body.
21 Sec. 11. Section 99F.1, subsection 24, Code 2022, is amended
22to read as follows:
2324. “Professional sporting event” means an event,
24excluding a minor league sporting event, at which two or
25more persons participate in sports or athletic events and
26receive compensation in excess of actual expenses for their
27participation in such event, unless the event includes
28professional athletes participating in a sports or athletic
29event without compensation in excess of actual expenses for a
30charitable purpose.
31 Sec. 12. Section 99F.1, Code 2022, is amended by adding the
32following new subsection:
33 NEW SUBSECTION. 27A. “Sports-related event” means an
34event that takes place in relation to an authorized sporting
35event, but that is not tied to the outcome of a specific
-6-1athletic event or contest as authorized by the commission.
2“Sports-related event” includes but is not limited to
3professional sports drafts and individual player awards.
4 Sec. 13. Section 99F.1, subsection 28, Code 2022, is amended
5to read as follows:
628. “Sports wagering” means the acceptance of wagers on
7an authorized sporting event or sports-related event by any
8system of wagering as authorized by the commission. “Sports
9wagering” does not include placing a wager on the performance
10or nonperformance of any individual athlete participating in a
11single game or match of a collegiate sporting event in which
12a collegiate team from this state is a participant, placing
13a wager on any individual performance or nonperformance of a
14participant in an electronic sports event who is under eighteen
15years of age, or placing a wager on the performance of athletes
16in an individual international sporting event governed by the
17international olympic committee in which any participant in the
18international sporting event is under eighteen years of age.
19 Sec. 14. Section 99F.7A, subsection 2, paragraph b, Code
202022, is amended to read as follows:
21b. Establish, subject to commission approval, sports
22wagering rules that specify the amounts to be paid on winning
23sports wagers, the effect of changes in the scheduling of an
24authorized sporting event or sports-related event subject to
25sports wagering, and the source of the information used to
26determine the outcome of a sports wager. The sports wagering
27rules shall be displayed in the licensee’s sports wagering
28area, posted on the internet site or mobile application used
29by the licensee to conduct advance deposit sports wagering as
30authorized in section 99F.9, and included in the terms and
31conditions of the licensee’s advance deposit sports wagering
32system.
33 Sec. 15. Section 99F.7A, subsection 4, Code 2022, is amended
34to read as follows:
354. A licensee issued a license to conduct sports wagering
-7-1under this section shall employ reasonable steps to prohibit
2coaches, athletic trainers, officials, players, or other
3individuals who participate in an authorized sporting event or
4sports-related event that is the subject of sports wagering
5from sports wagering under this chapter. In addition, a
6licensee shall employ reasonable steps to prohibit persons
7who are employed in a position with direct involvement with
8coaches, players, athletic trainers, officials, players, or
9participants in an authorized sporting event or sports-related
10event that is the subject of sports wagering from sports
11wagering under this chapter.
12 Sec. 16. Section 99F.12, subsection 2, paragraph b, Code
132022, is amended to read as follows:
14b. A licensee under section 99F.7A shall promptly report
15to the commission any criminal or disciplinary proceedings
16commenced against the licensee or its employees in connection
17with the licensee conducting sports wagering or advance
18deposit sports wagering, any abnormal wagering activity or
19patterns that may indicate a concern about the integrity of
20an authorized sporting event or events sports-related event,
21and any other conduct with the potential to corrupt a wagering
22outcome of an authorized sporting event or sports-related
23event for purposes of financial gain, including but not
24limited to match fixing, and suspicious or illegal wagering
25activities, including the use of funds derived from illegal
26activity, wagers to conceal or launder funds derived from
27illegal activity, use of agents to place wagers, or use of
28false identification. The commission is required to share
29any information received pursuant to this paragraph with the
30division of criminal investigation, any other law enforcement
31entity upon request, or any regulatory agency the commission
32deems appropriate. The commission shall promptly report any
33information received pursuant to this paragraph with any
34sports team or sports governing body as the commission deems
35appropriate, but shall not share any information that would
-8-1interfere with an ongoing criminal investigation.
2DIVISION IV
3OCCUPATIONAL LICENSES
4 Sec. 17. Section 99F.1, subsection 18, Code 2022, is amended
5to read as follows:
618. “Holder of occupational license” means a person
7licensed by the commission to perform an occupation which the
8commission has identified as requiring a license to engage in
9the excursion gambling boat industry in Iowa administration,
10control, and conduct of gambling games and sports wagering.
11 Sec. 18. Section 99F.4, subsection 2, Code 2022, is amended
12to read as follows:
132. To license qualified sponsoring organizations, to
14license the operators of excursion gambling boats, to identify
15occupations within the excursion gambling boat operations
16 engaged in the administration, control, and conduct of gambling
17games and sports wagering which require licensing, and to adopt
18standards for licensing the occupations including establishing
19fees for the occupational licenses and licenses for qualified
20sponsoring organizations. The fees shall be paid to the
21commission and deposited in the general fund of the state.
22All revenue received by the commission under this chapter
23from license fees and regulatory fees shall be deposited in
24the general fund of the state and shall be subject to the
25requirements of section 8.60.
26EXPLANATION
27The inclusion of this explanation does not constitute agreement with
28the explanation’s substance by the members of the general assembly.
29This bill concerns gambling regulation and wagering.
30Division I of the bill concerns cashless wagering and allows
31a person to access a cash account through a personal electronic
32device for purposes of cashless wagering on the wagering area
33of a licensee under Code chapter 99D or gaming floor of a
34licensee under Code chapter 99F.
35Division II of the bill relates to the forfeiture and
-9-1withholding of certain gaming winnings.
2The division prevents the state and entities licensed by the
3state racing and gaming commission from being held liable for
4any claim, action, or inaction which may arise from processes
5related to a person voluntarily excluded from pari-mutuel
6wagering, advance deposit wagering, internet fantasy sports
7contests, advance deposit sports wagering, gaming floors and
8sports wagering areas of an excursion gambling boat, wagering
9areas, and gaming floors and sports wagering areas.
10The division releases entities licensed by the state racing
11and gaming commission from any responsibility to pay the state
12any money or thing of value that was paid to a voluntarily
13excluded person. The division also provides that no
14administrative action shall be initiated or penalties imposed
15on licensed entities for any unintentional licensee errors
16concerning actions related to a voluntarily excluded person.
17The division makes it a simple misdemeanor for a voluntarily
18excluded person to refuse to forfeit money or a thing of value
19obtained as a result of wagers made by the person after the
20person has been voluntarily excluded, and directs that a court
21of jurisdiction shall order the voluntarily excluded person
22to pay an amount equivalent to the obtained money or thing of
23value to the state general fund.
24The division allows entities licensed by the state racing
25and gaming commission to retain an amount equal to the lesser
26of 5 percent or $100 of winnings withheld from a collection
27entity debtor. A “collection entity” means the department
28of administrative services and any other public agency that
29maintains a separate accounting system and elects to establish
30a debt collection setoff procedure for the collection of debts
31owed to the public agency.
32In addition, the division provides that the state and
33entities licensed by the state racing and gaming commission
34shall not be held liable for any claim, action, or inaction
35which may arise from processes related to setoffs and releases
-10-1entities licensed by the state racing and gaming commission
2from any responsibility to pay an entity seeking collection
3of a debt through a setoff any money or thing of value that
4was paid to a debtor. The division also provides that no
5administrative action shall be initiated or penalties imposed
6on licensed entities for any unintentional licensee errors
7concerning actions related to setoffs. The division further
8provides that the debtor is solely responsible for all debts
9owed and not collected under setoff procedures.
10Division III of the bill relates to the inclusion of wagering
11on electronic sports events and other sports-related events
12within the provisions governing sports wagering.
13The division adds “electronic sports events” as a type
14of authorized sporting event, and defines “electronic sports
15event” to mean a multiplayer video game event governed by a
16recognized professional, international, or collegiate video
17game governing body.
18The division also provides that a professional sporting
19event includes a charitable event with professional athletes.
20The division defines “sports-related event” as an event that
21takes place in relation to an authorized sporting event, but
22that is not tied to the outcome of a specific athletic event
23or contest as authorized by the commission. “Sports-related
24events” include but are not limited to professional sports
25drafts and individual player awards.
26The division adds wagers on sports-related events as a
27form of sports wagering, and prohibits placing a wager on any
28individual performance or nonperformance of a participant in an
29electronic sports event who is under 18 years of age.
30The division makes conforming changes to Code sections
3199F.7A and 99F.12.
32Division IV of the bill relates to occupational licenses.
33The bill provides that an occupational license is required for
34occupations identified by the racing and gaming commission as
35engaged in the administration, control, and conduct of gambling
-11-1games and sports wagering.
-12-ec/rn
2cashless wagering, forfeiture and withholding of certain
3gaming winnings, sports wagering, occupational licenses, and
4providing penalties.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2CASHLESS WAGERING
3 Section 1. Section 99D.9, subsection 6, paragraph b, Code
42022, is amended to read as follows:
5b. A licensee shall not permit a financial institution,
6vendor, or other person to dispense cash or credit through an
7electronic or mechanical device including but not limited to a
8satellite terminal as defined in section 527.2, that is located
9in the wagering area. However, this paragraph shall not apply
10to cashless wagering systems where a person accesses a cash
11account through a personal electronic device.
12 Sec. 2. Section 99F.7, subsection 10, paragraph b, Code
132022, is amended to read as follows:
14b. A licensee shall not permit a financial institution,
15vendor, or other person to dispense cash or credit through an
16electronic or mechanical device including but not limited to
17a satellite terminal, as defined in section 527.2, that is
18located on the gaming floor. However, this paragraph shall not
19apply to cashless wagering systems where a person accesses a
20cash account through a personal electronic device.
21DIVISION II
22Gaming winnings forfeiture and withholding
23 Sec. 3. Section 99D.7, subsection 23, Code 2022, is amended
24to read as follows:
2523. To establish a process to allow a person to be
26voluntarily excluded from advance deposit wagering as defined
27in section 99D.11, from an internet fantasy sports contest as
28defined in section 99E.1, from advance deposit sports wagering
29as defined in section 99F.9, and from the wagering area of
30a racetrack enclosure, from the gaming floor, and from the
31sports wagering area, as defined in section 99F.1, of all
32other licensed facilities under this chapter and chapter 99F
33as provided in this subsection. The process shall provide
34that an initial request by a person to be voluntarily excluded
35shall be for a period of five years or life and any subsequent
-1-1request following any five-year period shall be for a period of
2five years or life. The process established shall require that
3licensees be provided electronic access to names and social
4security numbers of persons voluntarily excluded through a
5secured interactive internet site maintained by the commission
6and information regarding persons voluntarily excluded shall
7be disseminated to all licensees under this chapter, chapter
899E, and chapter 99F. The names, social security numbers, and
9information regarding persons voluntarily excluded shall be
10kept confidential unless otherwise ordered by a court or by
11another person duly authorized to release such information.
12The process established shall also require a person requesting
13to be voluntarily excluded be provided information compiled
14by the Iowa department of public health on gambling treatment
15options. The state and any licensee under this chapter,
16chapter 99E, or chapter 99F shall not be liable to any person
17for any claim which may arise from this process. In addition
18to any other penalty provided by law, any money or thing of
19value that has been obtained by, or is owed to, a voluntarily
20excluded person as a result of wagers made by the person after
21the person has been voluntarily excluded shall be forfeited by
22the person and shall be credited to the general fund of the
23state. The state and any licensee under this chapter, chapter
2499E, or chapter 99F shall not be liable to any person for any
25claim, action, or inaction which may arise from processes
26described in this subsection, and any licensee under this
27chapter, chapter 99E, or chapter 99F shall not be responsible
28for payment to the state of any money or thing of value paid
29to a voluntarily excluded person. The commission shall not
30initiate any administrative action or impose penalties for
31unintentional licensee errors which may arise from processes
32described in this subsection.
33 Sec. 4. Section 99D.24, Code 2022, is amended by adding the
34following new subsection:
35 NEW SUBSECTION. 2A. A person who has been voluntarily
-2-1excluded pursuant to section 99D.7, subsection 23, who refuses
2to forfeit money or a thing of value obtained as a result of
3wagers made by the person after the person has been voluntarily
4excluded is guilty of a simple misdemeanor and shall pay
5restitution to the state in an amount equivalent to the money
6or thing of value obtained.
7 Sec. 5. Section 99D.28, subsections 2 and 7, Code 2022, are
8amended to read as follows:
92. The licensee is authorized and directed to withhold
10any winnings of a debtor which are paid out directly by the
11licensee subject to the lien created by this section and
12provide notice of such withholding to the winner when the
13winner appears and claims winnings in person. The licensee may
14retain an amount equal to the lesser of five percent of the
15amount withheld or one hundred dollars, and then shall pay the
16remaining funds over to the collection entity which administers
17the setoff program pursuant to section 8A.504.
187. A claimant agency or licensee, acting in good faith,
19 under this chapter or chapter 99F shall not be liable to any
20person for actions taken pursuant to any claim, action, or
21inaction which may arise from processes described in this
22section. In addition, any licensee under this chapter or
23chapter 99F shall not be responsible for payment to a claimant
24agency of any money or thing of value that has been paid to a
25debtor. The debtor shall be solely responsible for all debts
26owed and not collected under this section. The commission
27shall not initiate any administrative action or impose
28penalties for unintentional licensee errors which may arise
29from processes described in this section.
30 Sec. 6. Section 99F.4, subsection 22, Code 2022, is amended
31to read as follows:
3222. To establish a process to allow a person to be
33voluntarily excluded from advance deposit wagering as defined
34in section 99D.11, from an internet fantasy sports contest
35as defined in section 99E.1, from advance deposit sports
-3-1wagering as defined in section 99F.9, from the gaming floor
2and sports wagering area of an excursion gambling boat, from
3the wagering area, as defined in section 99D.2, and from the
4gaming floor and sports wagering area of all other licensed
5facilities under this chapter and chapter 99D as provided in
6this subsection. The process shall provide that an initial
7request by a person to be voluntarily excluded shall be for
8a period of five years or life and any subsequent request
9following any five-year period shall be for a period of five
10years or life. The process established shall require that
11licensees be provided electronic access to names and social
12security numbers of persons voluntarily excluded through a
13secured interactive internet site maintained by the commission
14and information regarding persons voluntarily excluded shall
15be disseminated to all licensees under this chapter, chapter
1699D, and chapter 99E. The names, social security numbers, and
17information regarding persons voluntarily excluded shall be
18kept confidential unless otherwise ordered by a court or by
19another person duly authorized to release such information.
20The process established shall also require a person requesting
21to be voluntarily excluded be provided information compiled
22by the Iowa department of public health on gambling treatment
23options. The state and any licensee under this chapter,
24chapter 99D, or chapter 99E shall not be liable to any person
25for any claim which may arise from this process. In addition
26to any other penalty provided by law, any money or thing of
27value that has been obtained by, or is owed to, a voluntarily
28excluded person as a result of wagers made by the person after
29the person has been voluntarily excluded shall be forfeited by
30the person and shall be credited to the general fund of the
31state. The state and any licensee under this chapter, chapter
3299D, or chapter 99E shall not be liable to any person for any
33claim, action, or inaction which may arise from processes
34described in this subsection, and any licensee under this
35chapter, chapter 99D, or chapter 99E shall not be responsible
-4-1for payment to the state of any money or thing of value paid
2to a voluntarily excluded person. The commission shall not
3initiate any administrative action or impose penalties for
4unintentional licensee errors which may arise from processes
5described in this subsection.
6 Sec. 7. Section 99F.15, Code 2022, is amended by adding the
7following new subsection:
8 NEW SUBSECTION. 2A. A person who has been voluntarily
9excluded pursuant to section 99F.4, subsection 22, who refuses
10to forfeit money or a thing of value obtained as a result of
11wagers made by the person after the person has been voluntarily
12excluded is guilty of a simple misdemeanor and shall pay
13restitution to the state in an amount equivalent to the money
14or thing of value obtained.
15 Sec. 8. Section 99F.19, subsections 2 and 7, Code 2022, are
16amended to read as follows:
172. The licensee is authorized and directed to withhold
18any winnings of a debtor which are paid out directly by the
19licensee subject to the lien created by this section and
20provide notice of such withholding to the winner when the
21winner appears and claims winnings in person. The licensee may
22retain an amount equal to the lesser of five percent of the
23amount withheld or one hundred dollars, and then shall pay the
24remaining funds over to the collection entity which administers
25the setoff program pursuant to section 8A.504.
267. A claimant agency or licensee, acting in good faith,
27 under this chapter or chapter 99D shall not be liable to any
28person for actions taken pursuant to any claim, action, or
29inaction which may arise from processes described in this
30section. In addition, any licensee under this chapter or
31chapter 99D shall not be responsible for payment to a claimant
32agency of any money or thing of value that has been paid to a
33debtor. The debtor shall be solely responsible for all debts
34owed and not collected under this section. The commission
35shall not initiate any administrative action or impose
-5-1penalties for unintentional licensee errors which may arise
2from processes described in this section.
3DIVISION III
4SPORTS WAGERING
5 Sec. 9. Section 99F.1, subsection 3, Code 2022, is amended
6to read as follows:
73. “Authorized sporting event” means a professional sporting
8event, collegiate sporting event, international sporting
9event, electronic sports event, or professional motor race
10event. “Authorized sporting event” does not include a race as
11defined in section 99D.2, a fantasy sports contest as defined
12in section 99E.1, minor league sporting event, or any athletic
13event or competition of an interscholastic sport as defined in
14section 9A.102.
15 Sec. 10. Section 99F.1, Code 2022, is amended by adding the
16following new subsection:
17 NEW SUBSECTION. 10A. “Electronic sports event” means
18a multiplayer video game event governed by a recognized
19professional, international, or collegiate video game governing
20body.
21 Sec. 11. Section 99F.1, subsection 24, Code 2022, is amended
22to read as follows:
2324. “Professional sporting event” means an event,
24excluding a minor league sporting event, at which two or
25more persons participate in sports or athletic events and
26receive compensation in excess of actual expenses for their
27participation in such event, unless the event includes
28professional athletes participating in a sports or athletic
29event without compensation in excess of actual expenses for a
30charitable purpose.
31 Sec. 12. Section 99F.1, Code 2022, is amended by adding the
32following new subsection:
33 NEW SUBSECTION. 27A. “Sports-related event” means an
34event that takes place in relation to an authorized sporting
35event, but that is not tied to the outcome of a specific
-6-1athletic event or contest as authorized by the commission.
2“Sports-related event” includes but is not limited to
3professional sports drafts and individual player awards.
4 Sec. 13. Section 99F.1, subsection 28, Code 2022, is amended
5to read as follows:
628. “Sports wagering” means the acceptance of wagers on
7an authorized sporting event or sports-related event by any
8system of wagering as authorized by the commission. “Sports
9wagering” does not include placing a wager on the performance
10or nonperformance of any individual athlete participating in a
11single game or match of a collegiate sporting event in which
12a collegiate team from this state is a participant, placing
13a wager on any individual performance or nonperformance of a
14participant in an electronic sports event who is under eighteen
15years of age, or placing a wager on the performance of athletes
16in an individual international sporting event governed by the
17international olympic committee in which any participant in the
18international sporting event is under eighteen years of age.
19 Sec. 14. Section 99F.7A, subsection 2, paragraph b, Code
202022, is amended to read as follows:
21b. Establish, subject to commission approval, sports
22wagering rules that specify the amounts to be paid on winning
23sports wagers, the effect of changes in the scheduling of an
24authorized sporting event or sports-related event subject to
25sports wagering, and the source of the information used to
26determine the outcome of a sports wager. The sports wagering
27rules shall be displayed in the licensee’s sports wagering
28area, posted on the internet site or mobile application used
29by the licensee to conduct advance deposit sports wagering as
30authorized in section 99F.9, and included in the terms and
31conditions of the licensee’s advance deposit sports wagering
32system.
33 Sec. 15. Section 99F.7A, subsection 4, Code 2022, is amended
34to read as follows:
354. A licensee issued a license to conduct sports wagering
-7-1under this section shall employ reasonable steps to prohibit
2coaches, athletic trainers, officials, players, or other
3individuals who participate in an authorized sporting event or
4sports-related event that is the subject of sports wagering
5from sports wagering under this chapter. In addition, a
6licensee shall employ reasonable steps to prohibit persons
7who are employed in a position with direct involvement with
8coaches, players, athletic trainers, officials, players, or
9participants in an authorized sporting event or sports-related
10event that is the subject of sports wagering from sports
11wagering under this chapter.
12 Sec. 16. Section 99F.12, subsection 2, paragraph b, Code
132022, is amended to read as follows:
14b. A licensee under section 99F.7A shall promptly report
15to the commission any criminal or disciplinary proceedings
16commenced against the licensee or its employees in connection
17with the licensee conducting sports wagering or advance
18deposit sports wagering, any abnormal wagering activity or
19patterns that may indicate a concern about the integrity of
20an authorized sporting event or events sports-related event,
21and any other conduct with the potential to corrupt a wagering
22outcome of an authorized sporting event or sports-related
23event for purposes of financial gain, including but not
24limited to match fixing, and suspicious or illegal wagering
25activities, including the use of funds derived from illegal
26activity, wagers to conceal or launder funds derived from
27illegal activity, use of agents to place wagers, or use of
28false identification. The commission is required to share
29any information received pursuant to this paragraph with the
30division of criminal investigation, any other law enforcement
31entity upon request, or any regulatory agency the commission
32deems appropriate. The commission shall promptly report any
33information received pursuant to this paragraph with any
34sports team or sports governing body as the commission deems
35appropriate, but shall not share any information that would
-8-1interfere with an ongoing criminal investigation.
2DIVISION IV
3OCCUPATIONAL LICENSES
4 Sec. 17. Section 99F.1, subsection 18, Code 2022, is amended
5to read as follows:
618. “Holder of occupational license” means a person
7licensed by the commission to perform an occupation which the
8commission has identified as requiring a license to engage in
9the excursion gambling boat industry in Iowa administration,
10control, and conduct of gambling games and sports wagering.
11 Sec. 18. Section 99F.4, subsection 2, Code 2022, is amended
12to read as follows:
132. To license qualified sponsoring organizations, to
14license the operators of excursion gambling boats, to identify
15occupations within the excursion gambling boat operations
16 engaged in the administration, control, and conduct of gambling
17games and sports wagering which require licensing, and to adopt
18standards for licensing the occupations including establishing
19fees for the occupational licenses and licenses for qualified
20sponsoring organizations. The fees shall be paid to the
21commission and deposited in the general fund of the state.
22All revenue received by the commission under this chapter
23from license fees and regulatory fees shall be deposited in
24the general fund of the state and shall be subject to the
25requirements of section 8.60.
26EXPLANATION
27The inclusion of this explanation does not constitute agreement with
28the explanation’s substance by the members of the general assembly.
29This bill concerns gambling regulation and wagering.
30Division I of the bill concerns cashless wagering and allows
31a person to access a cash account through a personal electronic
32device for purposes of cashless wagering on the wagering area
33of a licensee under Code chapter 99D or gaming floor of a
34licensee under Code chapter 99F.
35Division II of the bill relates to the forfeiture and
-9-1withholding of certain gaming winnings.
2The division prevents the state and entities licensed by the
3state racing and gaming commission from being held liable for
4any claim, action, or inaction which may arise from processes
5related to a person voluntarily excluded from pari-mutuel
6wagering, advance deposit wagering, internet fantasy sports
7contests, advance deposit sports wagering, gaming floors and
8sports wagering areas of an excursion gambling boat, wagering
9areas, and gaming floors and sports wagering areas.
10The division releases entities licensed by the state racing
11and gaming commission from any responsibility to pay the state
12any money or thing of value that was paid to a voluntarily
13excluded person. The division also provides that no
14administrative action shall be initiated or penalties imposed
15on licensed entities for any unintentional licensee errors
16concerning actions related to a voluntarily excluded person.
17The division makes it a simple misdemeanor for a voluntarily
18excluded person to refuse to forfeit money or a thing of value
19obtained as a result of wagers made by the person after the
20person has been voluntarily excluded, and directs that a court
21of jurisdiction shall order the voluntarily excluded person
22to pay an amount equivalent to the obtained money or thing of
23value to the state general fund.
24The division allows entities licensed by the state racing
25and gaming commission to retain an amount equal to the lesser
26of 5 percent or $100 of winnings withheld from a collection
27entity debtor. A “collection entity” means the department
28of administrative services and any other public agency that
29maintains a separate accounting system and elects to establish
30a debt collection setoff procedure for the collection of debts
31owed to the public agency.
32In addition, the division provides that the state and
33entities licensed by the state racing and gaming commission
34shall not be held liable for any claim, action, or inaction
35which may arise from processes related to setoffs and releases
-10-1entities licensed by the state racing and gaming commission
2from any responsibility to pay an entity seeking collection
3of a debt through a setoff any money or thing of value that
4was paid to a debtor. The division also provides that no
5administrative action shall be initiated or penalties imposed
6on licensed entities for any unintentional licensee errors
7concerning actions related to setoffs. The division further
8provides that the debtor is solely responsible for all debts
9owed and not collected under setoff procedures.
10Division III of the bill relates to the inclusion of wagering
11on electronic sports events and other sports-related events
12within the provisions governing sports wagering.
13The division adds “electronic sports events” as a type
14of authorized sporting event, and defines “electronic sports
15event” to mean a multiplayer video game event governed by a
16recognized professional, international, or collegiate video
17game governing body.
18The division also provides that a professional sporting
19event includes a charitable event with professional athletes.
20The division defines “sports-related event” as an event that
21takes place in relation to an authorized sporting event, but
22that is not tied to the outcome of a specific athletic event
23or contest as authorized by the commission. “Sports-related
24events” include but are not limited to professional sports
25drafts and individual player awards.
26The division adds wagers on sports-related events as a
27form of sports wagering, and prohibits placing a wager on any
28individual performance or nonperformance of a participant in an
29electronic sports event who is under 18 years of age.
30The division makes conforming changes to Code sections
3199F.7A and 99F.12.
32Division IV of the bill relates to occupational licenses.
33The bill provides that an occupational license is required for
34occupations identified by the racing and gaming commission as
35engaged in the administration, control, and conduct of gambling
-11-1games and sports wagering.
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