Bill Text: IA HF2448 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act relating to the conduct of sports betting by gambling licensees, making penalties applicable, and including effective date provisions. (Formerly HSB 592.)
Sponsorship: Committee Bill
Status: (Introduced - Dead) 2018-03-01 - Subcommittee recommends amendment and passage. [HF2448 Detail]
Download: Iowa-2017-HF2448-Introduced.html
House File 2448 - Introduced HOUSE FILE BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO HSB 592) A BILL FOR 1 An Act relating to the conduct of sports betting by gambling 2 licensees, making penalties applicable, and including 3 effective date provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 5640HV (2) 87 ec/rn PAG LIN 1 1 Section 1. Section 99D.7, subsection 23, Code 2018, is 1 2 amended to read as follows: 1 3 23. To require licensees to establish a process to allow 1 4 a person to be voluntarily excluded from the wagering area of 1 5 a racetrack enclosure and from the gaming floor and sports 1 6 betting wagering area, as defined in section 99F.1, of all 1 7 other licensed facilities under this chapter and chapter 99F 1 8 as provided in this subsection. The process shall provide 1 9 that an initial request by a person to be voluntarily excluded 1 10 shall be for a period of five years or life and any subsequent 1 11 request following any five=year period shall be for a period 1 12 of five years or life. The process established shall require 1 13 that a person requesting to be voluntarily excluded be provided 1 14 information compiled by the Iowa department of public health 1 15 on gambling treatment options and shall also require that a 1 16 licensee disseminate information regarding persons voluntarily 1 17 excluded to all licensees under this chapter and chapter 99F. 1 18 The state and any licensee under this chapter or chapter 99F 1 19 shall not be liable to any person for any claim which may arise 1 20 from this process. In addition to any other penalty provided 1 21 by law, any money or thing of value that has been obtained by, 1 22 or is owed to, a voluntarily excluded person by a licensee as a 1 23 result of wagers made by the person after the person has been 1 24 voluntarily excluded shall not be paid to the person but shall 1 25 be credited to the general fund of the state. 1 26 Sec. 2. Section 99F.1, subsection 1, Code 2018, is amended 1 27 to read as follows: 1 28 1. "Adjusted gross receipts" means the gross receipts less 1 29 winnings paid to wagerers on gambling games. "Adjusted gross 1 30 receipts" also includes an amount equal to one=third of sports 1 31 betting net receipts. However, "adjusted gross receipts" 1 32 does not include promotional play receipts received after the 1 33 date in any fiscal year that the commission determines that 1 34 the wagering tax imposed pursuant to section 99F.11 on all 1 35 licensees in that fiscal year on promotional play receipts 2 1 exceeds twenty=five million eight hundred twenty thousand 2 2 dollars. 2 3 Sec. 3. Section 99F.1, Code 2018, is amended by adding the 2 4 following new subsections: 2 5 NEW SUBSECTION. 23. "Sports betting" means the acceptance 2 6 of wagers on collegiate or professional sporting events by any 2 7 system of wagering as authorized by the commission. "Sports 2 8 betting" does not include wagering on a race as defined in 2 9 section 99D.2. 2 10 NEW SUBSECTION. 24. "Sports betting net receipts" means 2 11 the gross receipts less winnings paid to wagerers on sports 2 12 betting. 2 13 NEW SUBSECTION. 25. "Sports betting wagering area" means 2 14 that portion of an excursion gambling boat, gambling structure, 2 15 or racetrack enclosure in which sports betting is conducted as 2 16 designated by the commission. 2 17 Sec. 4. Section 99F.3, Code 2018, is amended to read as 2 18 follows: 2 19 99F.3 Gambling games and sports betting authorized. 2 20 The system of wagering on a gambling game and sports betting 2 21 as provided by this chapter is legal, when conducted on an 2 22 excursion gambling boat, gambling structure, or racetrack 2 23 enclosure at authorized locations by a licensee as provided in 2 24 this chapter. 2 25 Sec. 5. Section 99F.4, subsections 3 and 22, Code 2018, are 2 26 amended to read as follows: 2 27 3. To adopt standards under which all excursion gambling 2 28 boat operations shall be held and standards for the facilities 2 29 within which the gambling operations are to be held. The 2 30 commission may authorize the operation of gambling games and 2 31 sports betting on an excursion gambling boat which is also 2 32 licensed to sell or serve alcoholic beverages, wine, or beer as 2 33 defined in section 123.3. 2 34 22. To require licensees to establish a process to allow 2 35 a person to be voluntarily excluded from the gaming floor and 3 1 the sports betting wagering area of an excursion gambling boat 3 2 and from the wagering area, as defined in section 99D.2, and 3 3 the gaming floor and the sports betting wagering area of all 3 4 other licensed facilities under this chapter and chapter 99D 3 5 as provided in this subsection. The process shall provide 3 6 that an initial request by a person to be voluntarily excluded 3 7 shall be for a period of five years or life and any subsequent 3 8 request following any five=year period shall be for a period 3 9 of five years or life. The process established shall require 3 10 that a person requesting to be voluntarily excluded be provided 3 11 information compiled by the Iowa department of public health 3 12 on gambling treatment options and shall also require that a 3 13 licensee disseminate information regarding persons voluntarily 3 14 excluded to all licensees under this chapter and chapter 99D. 3 15 The state and any licensee under this chapter or chapter 99D 3 16 shall not be liable to any person for any claim which may arise 3 17 from this process. In addition to any other penalty provided 3 18 by law, any money or thing of value that has been obtained by, 3 19 or is owed to, a voluntarily excluded person by a licensee as a 3 20 result of wagers made by the person after the person has been 3 21 voluntarily excluded shall not be paid to the person but shall 3 22 be credited to the general fund of the state. 3 23 Sec. 6. Section 99F.4, Code 2018, is amended by adding the 3 24 following new subsection: 3 25 NEW SUBSECTION. 27. To adopt standards under which all 3 26 sports betting is conducted. 3 27 Sec. 7. NEW SECTION. 99F.7A Sports betting ==== license ==== 3 28 terms and conditions ==== fees. 3 29 1. The commission shall, upon payment of an initial license 3 30 fee of twenty=five thousand dollars and submission of an 3 31 application to the commission, issue a license to conduct or 3 32 operate sports betting to a licensee authorized to conduct or 3 33 operate gambling games under section 99F.4A or 99F.7, subject 3 34 to the requirements of this chapter. The annual renewal fee 3 35 for a license to conduct or operate sports betting shall be 4 1 fifteen thousand dollars. Of the moneys collected by the 4 2 commission from the license fees paid under this section, an 4 3 amount equal to five thousand dollars of the initial license 4 4 fee and five thousand dollars of the annual renewal fee shall 4 5 be considered repayment receipts as defined in section 8.2. 4 6 The remainder of the moneys collected by the commission from 4 7 fees paid under this subsection shall be deposited in the 4 8 rebuild Iowa infrastructure fund created in section 8.57. 4 9 2. A licensee issued a license to conduct or operate sports 4 10 betting under this section shall employ commercially reasonable 4 11 steps to prohibit coaches, athletic trainers, officials, 4 12 players, or other individuals who participate in a collegiate 4 13 or professional sporting event that is the subject of sports 4 14 betting from sports betting under this chapter. In addition, a 4 15 licensee shall employ commercially reasonable steps to prohibit 4 16 persons who are employed in a position with direct involvement 4 17 with coaches, players, athletic trainers, officials, players, 4 18 or participants in a collegiate or professional sporting event 4 19 that is the subject of sports betting from sports betting under 4 20 this chapter. 4 21 Sec. 8. Section 99F.8, Code 2018, is amended to read as 4 22 follows: 4 23 99F.8 Bond of licensee. 4 24 A licensee licensed under section 99F.7 shall post a bond 4 25 to the state of Iowa before the license is issued in a sum 4 26 as the commission shall fix, with sureties to be approved by 4 27 the commission. The bond shall be used to guarantee that the 4 28 licensee faithfully makes the payments, keeps its books and 4 29 records and makes reports, and conducts its gambling games and 4 30 sports betting in conformity with this chapter and the rules 4 31 adopted by the commission. The bond shall not be canceled by 4 32 a surety on less than thirty days' notice in writing to the 4 33 commission. If a bond is canceled and the licensee fails to 4 34 file a new bond with the commission in the required amount on 4 35 or before the effective date of cancellation, the licensee's 5 1 license shall be revoked. The total and aggregate liability 5 2 of the surety on the bond is limited to the amount specified in 5 3 the bond. 5 4 Sec. 9. Section 99F.9, subsection 1, Code 2018, is amended 5 5 to read as follows: 5 6 1. Except as permitted in this section, the licensee shall 5 7 permit no form of wagering on gambling games or sports betting. 5 8 Sec. 10. Section 99F.9, Code 2018, is amended by adding the 5 9 following new subsection: 5 10 NEW SUBSECTION. 3A. a. For the purposes of this section, 5 11 unless the context otherwise requires: 5 12 (1) "Advance deposit sports betting wagering" means a method 5 13 of sports betting wagering in which an eligible individual 5 14 may, in an account established in person with a licensee under 5 15 section 99F.7A, deposit moneys into the account and use the 5 16 account balance to pay for sports betting wagering. 5 17 (2) "Eligible individual" means an individual who is at 5 18 least twenty=one years of age or older who is either a resident 5 19 of this state or who is domiciled in this state. 5 20 b. The commission may authorize a licensee under section 5 21 99F.7A to conduct advance deposit sports betting wagering. An 5 22 advance deposit sports betting wager may be placed in person 5 23 on a licensed excursion gambling boat, licensed gambling 5 24 structure, or in a licensed racetrack enclosure, or from 5 25 any other location via a telephone=type device or any other 5 26 electronic means. 5 27 c. An unlicensed person taking or receiving sports betting 5 28 wagers from residents of this state is guilty of a class "D" 5 29 felony. 5 30 Sec. 11. Section 99F.9, subsection 4, Code 2018, is amended 5 31 to read as follows: 5 32 4. A person under the age of twenty=one years shall not make 5 33 or attempt to make a wager pursuant to subsection 3A or on an 5 34 excursion gambling boat, gambling structure, or in a racetrack 5 35 enclosure and shall not be allowed on the gaming floor of 6 1 an excursion gambling boat or gambling structure or in the 6 2 wagering area, as defined in section 99D.2, or on the gaming 6 3 floor of a racetrack enclosure. However, a person eighteen 6 4 years of age or older may be employed to work on the gaming 6 5 floor of an excursion gambling boat or gambling structure or 6 6 in the wagering area or on the gaming floor of a racetrack 6 7 enclosure. A person who violates this subsection with respect 6 8 to making or attempting to make a wager commits a scheduled 6 9 violation under section 805.8C, subsection 5, paragraph "a". 6 10 Sec. 12. Section 99F.11, subsection 1, Code 2018, is amended 6 11 to read as follows: 6 12 1. A tax is imposed on the adjusted gross receipts received 6 13 each fiscal yearfrom gambling games authorized under this 6 14 chapterat the rate of five percent on the first one million 6 15 dollars of adjusted gross receipts and at the rate of ten 6 16 percent on the next two million dollars of adjusted gross 6 17 receipts. 6 18 Sec. 13. Section 99F.11, subsection 2, paragraph b, 6 19 subparagraph (2), Code 2018, is amended to read as follows: 6 20 (2) If the licensee of the racetrack enclosure has been 6 21 issued a table games license during the fiscal year or prior 6 22 fiscal year and the adjusted gross receipts from gambling 6 23 games of the licensee in the prior fiscal year were one 6 24 hundred million dollars or more, twenty=two percent on adjusted 6 25 gross receipts received prior to the operational date, and 6 26 twenty=four percent on adjusted gross receipts from gambling 6 27 games and twenty=two percent on adjusted gross receipts from 6 28 sports betting received on or after the operational date. For 6 29 purposes of this subparagraph, the operational date is the date 6 30 the commission determines table games became operational at the 6 31 racetrack enclosure. 6 32 Sec. 14. Section 99F.11, subsection 2, paragraph c, Code 6 33 2018, is amended to read as follows: 6 34 c. If the licensee is a racetrack enclosure conducting 6 35 gambling games and no licensee that is an excursion gambling 7 1 boat or gambling structure is located in the same county, 7 2 twenty=four percent on adjusted gross receipts from gambling 7 3 games and twenty=two percent on adjusted gross receipts from 7 4 sports betting. 7 5 Sec. 15. Section 99F.15, subsection 1, paragraph c, Code 7 6 2018, is amended to read as follows: 7 7 c. Acting, or employing a person to act, as a shill or 7 8 decoy to encourage participation in a gambling game or sports 7 9 betting. 7 10 Sec. 16. Section 99F.15, subsection 4, paragraphs d, h, and 7 11 i, Code 2018, are amended to read as follows: 7 12 d. Cheats at a gambling game, including but not limited to 7 13 committing any act which alters the outcome of the game, or 7 14 cheats at sports betting. 7 15 h. Claims, collects, or takes, or attempts to claim, 7 16 collect, or take, money or anything of value in or from the 7 17 gambling games or sports betting, with intent to defraud, 7 18 without having made a wager contingent on winning a gambling 7 19 game or sports betting wager, or claims, collects, or takes an 7 20 amount of money or thing of value of greater value than the 7 21 amount won. 7 22 i. Knowingly entices or induces a person to go to any place 7 23 where a gambling game or sports betting is being conducted or 7 24 operated in violation of the provisions of this chapter with 7 25 the intent that the other person plays or participates in that 7 26 gambling game or sports betting. 7 27 Sec. 17. CONTINGENT EFFECTIVE DATE. This Act takes effect 7 28 forty=five days after the earlier of the date that the federal 7 29 Professional and Amateur Sports Protection Act of 1992, 28 7 30 U.S.C. {3701 to 3704, is rendered void and unenforceable as 7 31 it relates to this Act as a result of a final judgment of the 7 32 Supreme Court of the United States, or is repealed or otherwise 7 33 modified by the Congress of the United States in a manner that 7 34 does not prohibit sports betting in this state. The racing 7 35 and gaming commission shall submit a notice for publication in 8 1 the Iowa administrative bulletin, with a written copy provided 8 2 to the Iowa Code editor, specifying the effective date of this 8 3 Act. 8 4 EXPLANATION 8 5 The inclusion of this explanation does not constitute agreement with 8 6 the explanation's substance by the members of the general assembly. 8 7 This bill authorizes gambling licensees to conduct sports 8 8 betting. 8 9 Code section 99F.1, concerning definitions, is amended. 8 10 Code section 99F.1(1), defining adjusted gross receipts, is 8 11 amended to provide that adjusted gross receipts includes an 8 12 amount equal to one=third of sports betting net receipts. 8 13 The bill defines "sports betting" as acceptance of wagers 8 14 on collegiate or professional sporting events, except races 8 15 as defined in Code chapter 99D, by any system of wagering 8 16 as authorized by the racing and gaming commission. "Sports 8 17 betting net receipts" is defined as gross receipts less 8 18 winnings paid to wagerers on sports betting. "Sports betting 8 19 wagering area" is defined as that portion of a gambling 8 20 licensee facility in which sports wagering is conducted as 8 21 designated by the commission. 8 22 Code sections 99D.7(23) and 99F.4(22), concerning persons 8 23 voluntarily excluded from wagering or gaming areas, are amended 8 24 to include the sports betting wagering area. 8 25 Code section 99F.3, concerning authorized wagering under 8 26 Code chapter 99F, is amended to authorize wagering on sports 8 27 betting. 8 28 Code section 99F.4, concerning racing and gaming commission 8 29 powers, is amended to authorize the operation of sports betting 8 30 on an excursion gambling boat which is also licensed to serve 8 31 alcoholic beverages and grants the racing and gaming commission 8 32 the authority to adopt standards under which sports betting is 8 33 conducted. 8 34 New Code section 99F.7A provides specific requirements 8 35 relative to the licensing, operation, and fees applicable to 9 1 sports betting. The bill provides that the commission shall, 9 2 upon payment of an initial license fee of $25,000, issue a 9 3 license to conduct or operate sports betting to a licensee 9 4 authorized to conduct or operate gambling games under Code 9 5 section 99F.4A or 99F.7. The bill provides for an annual 9 6 renewal fee of $15,000 and further provides that of the fees 9 7 collected by the racing and gaming commission, $5,000 of the 9 8 initial license fee and of each renewal fee shall be considered 9 9 repayment receipts with the remainder deposited in the rebuild 9 10 Iowa infrastructure fund. The new Code section also provides 9 11 that a licensee issued a license to conduct or operate sports 9 12 betting shall employ commercially reasonable steps to prohibit 9 13 coaches, athletic trainers, officials, players, participants, 9 14 or other persons employed in a position with direct involvement 9 15 with such individuals from sports betting under this Code 9 16 chapter. 9 17 Code section 99F.8, concerning licensee bonding 9 18 requirements, is amended to make such requirements applicable 9 19 to sports betting. 9 20 Code section 99F.9, concerning wagering on gambling games, 9 21 is amended to allow the commission to authorize gambling game 9 22 licensees under Code chapter 99F to conduct advance deposit 9 23 sports betting wagering. The bill would allow for an advance 9 24 deposit wager to be placed in person at a licensed facility 9 25 authorized to conduct gambling games or from any other location 9 26 by telephone or other electronic means. The bill defines 9 27 "advance deposit sports betting wagering" as a form of wagering 9 28 where an eligible individual creates an account in person with 9 29 a licensee, deposits money into that account, and can use the 9 30 balance within the account for sports betting wagering. The 9 31 bill defines an "eligible individual" for purposes of advance 9 32 deposit sports betting wagering as an individual 21 years of 9 33 age or older who resides or is domiciled in this state. The 9 34 bill provides that an unlicensed person taking sports betting 9 35 wagers from Iowa residents is guilty of a class "D" felony, 10 1 punishable by confinement for no more than five years and a 10 2 fine of at least $750 but not more than $7,500. The Code 10 3 section is also amended to provide that a person under the age 10 4 of 21 shall not make or attempt to make a wager by advance 10 5 deposit sports betting wagering. 10 6 Code section 99F.11, concerning the wagering tax, is 10 7 amended. The bill provides that the wagering tax applies 10 8 to adjusted gross receipts and not just the adjusted gross 10 9 receipts on gambling games. In addition, the bill provides 10 10 that the tax rate imposed each fiscal year on any amount of 10 11 adjusted gross receipts on sports betting over $3 million shall 10 12 be 22 percent for all licensees. The bill does not change the 10 13 current 24 percent tax rate on the adjusted gross receipts for 10 14 gambling games at certain racetrack enclosures. 10 15 Code section 99F.15, concerning certain prohibited 10 16 activities and penalties, is amended to provide that current 10 17 prohibitions on cheating at a gambling game, claiming anything 10 18 of value from a gambling game with intent to defraud, and 10 19 knowingly enticing a person to go where a gambling game is 10 20 conducted in violation of Code chapter 99F also applies to 10 21 sports betting. 10 22 The bill takes effect 45 days after the earlier of the date 10 23 that the federal Professional and Amateur Sports Protection Act 10 24 is rendered void and unenforceable as it relates to the bill 10 25 by judgment of the supreme court of the United States, or is 10 26 repealed or otherwise modified by the Congress of the United 10 27 States in a manner that does not prohibit sports betting in 10 28 this state. The bill requires the racing and gaming commission 10 29 to submit a notice for publication in the Iowa administrative 10 30 bulletin, with a written copy provided to the Code editor, 10 31 specifying the effective date of the bill. LSB 5640HV (2) 87 ec/rn
