Bill Text: IA HF2497 | 2021-2022 | 89th General Assembly | Enrolled

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Bill Title: A bill for an act relating to gambling regulation and wagering, concerning cashless wagering, forfeiture and withholding of certain gaming winnings, sports wagering, occupational licenses, limitations on gambling game licenses, and simulcasting licensure and taxation, providing penalties and making penalties applicable, and including effective date and retroactive applicability provisions. (Formerly HSB 578.) Effective date: 07/01/2022, 06/17/2022. Applicability date: 06/01/2022.

Spectrum: Committee Bill

Status: (Passed) 2022-06-22 - Fiscal note. [HF2497 Detail]

Download: Iowa-2021-HF2497-Enrolled.html

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House File 2497 - Enrolled
House File 2497
AN ACT
RELATING TO GAMBLING REGULATION AND WAGERING, CONCERNING
CASHLESS WAGERING, FORFEITURE AND WITHHOLDING OF CERTAIN
GAMING WINNINGS, SPORTS WAGERING, OCCUPATIONAL LICENSES,
LIMITATIONS ON GAMBLING GAME LICENSES, AND SIMULCASTING
LICENSURE AND TAXATION, PROVIDING PENALTIES AND MAKING
PENALTIES APPLICABLE, AND INCLUDING EFFECTIVE DATE AND
RETROACTIVE APPLICABILITY PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
DIVISION I
CASHLESS WAGERING
Section 1. Section 99D.9, subsection 6, paragraph b, Code
2022, is amended to read as follows:
b. A licensee shall not permit a financial institution,
vendor, or other person to dispense cash or credit through
an electronic or mechanical device including but not limited
to a satellite terminal as defined in section 527.2 , that is

House File 2497, p. 2
located in the wagering area. However, this paragraph shall
not apply to cashless wagering systems where a person accesses
a cash account through a mobile application used by the
licensee to conduct cashless wagering. The mobile application
shall include 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 99D.7, subsection 23.
Sec. 2. Section 99F.7, subsection 10, paragraph b, Code
2022, is amended to read as follows:
b. A licensee shall not permit a financial institution,
vendor, or other person to dispense cash or credit through an
electronic or mechanical device including but not limited to
a satellite terminal, as defined in section 527.2 , that is
located on the gaming floor. However, this paragraph shall not
apply to cashless wagering systems where a person accesses a
cash account through a mobile application used by the licensee
to conduct cashless wagering. The mobile application shall
include 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.
DIVISION II
GAMING WINNINGS FORFEITURE AND WITHHOLDING
Sec. 3. Section 99D.7, subsection 23, Code 2022, 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 , and from the wagering area of
a racetrack enclosure, from the gaming floor, and from the
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

House File 2497, p. 3
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
the person has been voluntarily excluded shall be forfeited by
the person and shall be credited to the general fund of the
state. The commission shall not initiate any administrative
action or impose penalties on a licensee who voluntarily
reports to the commission activity described in section 99D.24,
subsection 4, paragraph “c” .
Sec. 4. Section 99D.24, subsection 4, Code 2022, is amended
by adding the following new paragraphs:
NEW PARAGRAPH . c. Knowingly or intentionally passes a
winning wager or share to another person or provides fraudulent
identification in order to avoid the forfeiture of any money or
thing of value as a voluntarily excluded person pursuant to the
processes established under section 99D.7, subsection 23.
NEW PARAGRAPH . d. Knowingly or intentionally passes a
winning wager or share to another person or provides fraudulent
identification in order to avoid the application of a setoff
as provided in section 99D.28.
Sec. 5. Section 99D.28, subsection 7, Code 2022, is amended
to read as follows:
7. A claimant agency or licensee, acting in good faith,

House File 2497, p. 4
shall not be liable to any person for actions taken pursuant to
this section . In addition, the commission shall not initiate
any administrative action or impose penalties on a licensee who
voluntarily reports to the commission activity described in
section 99D.24, subsection 4, paragraph “d” .
Sec. 6. Section 99F.4, subsection 22, Code 2022, is amended
to read as follows:
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 , 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. The state and any licensee under this chapter ,
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

House File 2497, p. 5
the person has been voluntarily excluded shall be forfeited by
the person and shall be credited to the general fund of the
state. The commission shall not initiate any administrative
action or impose penalties on a licensee who voluntarily
reports to the commission activity described in section 99F.15,
subsection 4, paragraph “n” .
Sec. 7. Section 99F.15, subsection 4, Code 2022, is amended
by adding the following new paragraphs:
NEW PARAGRAPH . n. Knowingly or intentionally passes a
winning wager or share to another person or provides fraudulent
identification in order to avoid the forfeiture of any money or
thing of value as a voluntarily excluded person pursuant to the
processes established under section 99F.4, subsection 22.
NEW PARAGRAPH . o. Knowingly or intentionally passes a
winning wager or share to another person or provides fraudulent
identification in order to avoid the application of a setoff
as provided in section 99F.19.
Sec. 8. Section 99F.19, subsection 7, Code 2022, is amended
to read as follows:
7. A claimant agency or licensee, acting in good faith,
shall not be liable to any person for actions taken pursuant to
this section . In addition, the commission shall not initiate
any administrative action or impose penalties on a licensee who
voluntarily reports to the commission activity described in
section 99F.15, subsection 4, paragraph “o” .
DIVISION III
SPORTS WAGERING
Sec. 9. Section 99F.1, subsection 24, Code 2022, is amended
to read as follows:
24. “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 , unless the event includes
professional athletes participating in a sports or athletic
event without compensation in excess of actual expenses for a
charitable purpose .
Sec. 10. Section 99F.1, Code 2022, is amended by adding the
following new subsection:

House File 2497, p. 6
NEW SUBSECTION . 27A. “Sports-related event” means an
event that takes place in relation to an authorized sporting
event, but that is not tied to the outcome of a specific
athletic event or contest as authorized by the commission.
“Sports-related event” includes but is not limited to
professional sports drafts and individual player awards.
Sec. 11. Section 99F.1, subsection 28, Code 2022, is amended
to read as follows:
28. “Sports wagering” means the acceptance of wagers on
an authorized sporting event or sports-related 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.
Sec. 12. Section 99F.7A, subsection 2, paragraph b, Code
2022, is amended to read as follows:
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 or sports-related 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.
Sec. 13. Section 99F.7A, subsection 4, Code 2022, is amended
to read as follows:
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 or

House File 2497, p. 7
sports-related 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, athletic trainers, officials, players, or
participants in an authorized sporting event or sports-related
event that is the subject of sports wagering from sports
wagering under this chapter .
Sec. 14. Section 99F.12, subsection 2, paragraph b, Code
2022, is amended to read as follows:
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 sports-related event ,
and any other conduct with the potential to corrupt a wagering
outcome of an authorized sporting event or sports-related
event for purposes of financial gain, including but not
limited to match fixing, and suspicious or illegal 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.
DIVISION IV
OCCUPATIONAL LICENSES
Sec. 15. Section 99F.1, subsection 18, Code 2022, is amended
to read as follows:
18. “Holder of occupational license” means a person
licensed by the commission to perform an occupation which the

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commission has identified as requiring a license to engage in
the excursion gambling boat industry in Iowa administration,
control, and conduct of gambling games and sports wagering .
Sec. 16. Section 99F.4, subsection 2, Code 2022, is amended
to read as follows:
2. To license qualified sponsoring organizations, to
license the operators of excursion gambling boats, to identify
occupations within the excursion gambling boat operations
engaged in the administration, control, and conduct of gambling
games and sports wagering which require licensing, and to adopt
standards for licensing the occupations including establishing
fees for the occupational licenses and licenses for qualified
sponsoring organizations. The fees shall be paid to the
commission and deposited in the general fund of the state.
All revenue received by the commission under this chapter
from license fees and regulatory fees shall be deposited in
the general fund of the state and shall be subject to the
requirements of section 8.60 .
DIVISION V
GAMBLING GAME LICENSE MORATORIUM
Sec. 17. NEW SECTION . 99F.5A Limitations on issuance of
licenses to conduct gambling games.
1. Commencing June 1, 2022, the total number of licenses
issued by the commission to conduct gambling games on an
excursion gambling boat, at a gambling structure, or at a
pari-mutuel racetrack shall not exceed nineteen subject to the
requirements of this section.
2. Licenses to conduct gambling games shall be restricted
to those counties where an excursion gambling boat, gambling
structure, or racetrack enclosure was operating and licensed to
conduct gambling games on June 1, 2022.
3. The commission shall be authorized to take any of the
following actions concerning the issuance of licenses to
conduct gambling games:
a. A gambling games licensee may move to a new location
within the same county and retain the gambling games license.
b. A licensed facility may be sold and a new gambling games
license issued for operation in the same county.
c. If a license to conduct gambling games is surrendered,

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not renewed, or revoked, a new gambling games license may be
issued for operation in the same county.
4. This section is repealed June 30, 2024.
Sec. 18. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
Sec. 19. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to June 1, 2022.
DIVISION VI
SIMULCASTING LICENSURE AND TAXATION
Sec. 20. NEW SECTION . 99D.9D Alternative simulcasting
licensure —— horse and dog races.
1. An entity that has entered into an agreement with the
Iowa horsemen’s benevolent and protective association for
source market fees related to simultaneously telecast horse
or dog races may submit an application to the commission for
a license under this chapter to conduct pari-mutuel wagering
on simultaneously telecast horse or dog races, subject to
the requirements of this section. Unless inconsistent with
the requirements of this section, an entity submitting an
application for a license under this section shall comply with
all requirements for submitting an application for a license
under this chapter.
2. If an application for a license under subsection 1 is
approved by the commission pursuant to the requirements of
this section and section 99D.9, the entity submitting the
application shall be granted a license under this section to
conduct pari-mutuel wagering on simultaneously telecast horse
or dog races conducted at a facility of a licensee authorized
to conduct gambling games under chapter 99D or chapter 99F
pursuant to an agreement with the licensee of that facility
as authorized by this section. A licensee issued a license
pursuant to this section shall comply with all requirements
of this chapter applicable to licensees unless otherwise
inconsistent with the provisions of this section.
3. A license issued pursuant to this section shall authorize
the licensee to enter into an agreement with any licensee
authorized to operate an excursion gambling boat or gambling
structure under chapter 99F to conduct, without the requirement
to conduct live horse or dog races at the facility, pari-mutuel

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wagering on simultaneously telecast horse or dog races at the
facility of the licensee authorized to operate an excursion
gambling boat or gambling structure under chapter 99F.
4. The commission shall establish an annual license fee
and regulatory fee for any entity issued a license under this
section to conduct pari-mutuel wagering on simultaneously
telecast horse or dog races as authorized by this section. The
commission shall not impose any other fees for simultaneously
telecast horse or dog races conducted by any licensee under
this section.
5. The commission shall require that an annual audit
be conducted and submitted to the commission, in a manner
determined by the commission, concerning the operation of the
simultaneously telecast horse or dog races by any licensee
under this section.
Sec. 21. Section 99D.15, subsection 4, Code 2022, is amended
by striking the subsection and inserting in lieu thereof the
following:
4. A tax is imposed on the gross sum wagered by the
pari-mutuel method on horse races and dog races which are
simultaneously telecast, in lieu of the taxes imposed pursuant
to subsection 1 or 3. The rate of tax is determined as follows:
a. If wagering on simultaneously telecast horse races and
dog races is not conducted by a licensee under section 99D.9D,
a tax of two percent is imposed on the gross sum wagered by
the pari-mutuel method on horse races and dog races which are
simultaneously telecast. The tax revenue from simulcast horse
races under this paragraph shall be distributed as provided in
subsection 1 and the tax revenue from simulcast dog races under
this paragraph shall be distributed as provided in subsection
3.
b. If wagering on simultaneously telecast horse races and
dog races is conducted by a licensee under section 99D.9D,
a tax of two percent is imposed on the gross sum wagered by
the pari-mutuel method on horse races and dog races which
are simultaneously telecast in excess of twenty-five million
dollars in a calendar year. Of the tax revenue collected
from simulcast horse races under this paragraph, one-half of
one percent of the gross sum wagered shall be remitted to the

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treasurer of the county in which a horse racetrack is located
in this state and licensed under this chapter. The remaining
amount of tax revenue shall be deposited with the commission.
______________________________ ______________________________
PAT GRASSLEY JAKE CHAPMAN
Speaker of the House President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 2497, Eighty-ninth General Assembly.
______________________________
MEGHAN NELSON
Chief Clerk of the House
Approved _______________, 2022 ______________________________
KIM REYNOLDS
Governor