Bill Text: IA HF748 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to sports gambling and wagering, by providing for fantasy sports contests and sports betting, providing for taxes and fees, making penalties applicable, and including implementation and effective date provisions. (Formerly HF 648 and HSB 198.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2019-04-22 - Withdrawn. H.J. 945. [HF748 Detail]
Download: Iowa-2019-HF748-Introduced.html
House
File
748
-
Introduced
HOUSE
FILE
748
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HF
648)
(SUCCESSOR
TO
HSB
198)
A
BILL
FOR
An
Act
relating
to
sports
gambling
and
wagering,
by
providing
1
for
fantasy
sports
contests
and
sports
betting,
providing
2
for
taxes
and
fees,
making
penalties
applicable,
and
3
including
implementation
and
effective
date
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
TLSB
2452HZ
(3)
88
ec/rn
H.F.
748
DIVISION
I
1
LICENSED
SPORTS
BETTING
2
Section
1.
Section
99D.7,
subsection
23,
Code
2019,
is
3
amended
to
read
as
follows:
4
23.
To
establish
a
process
to
allow
a
person
to
be
5
voluntarily
excluded
from
advance
deposit
wagering
as
defined
6
in
section
99D.11,
from
an
internet
fantasy
sports
contest
as
7
defined
in
section
99E.1,
from
advance
deposit
sports
betting
8
wagering
as
defined
in
section
99F.9,
from
the
wagering
area
9
of
a
racetrack
enclosure
and
from
the
gaming
floor
and
sports
10
betting
wagering
area
,
as
defined
in
section
99F.1
,
of
all
11
other
licensed
facilities
under
this
chapter
and
chapter
99F
12
as
provided
in
this
subsection
.
The
process
shall
provide
13
that
an
initial
request
by
a
person
to
be
voluntarily
excluded
14
shall
be
for
a
period
of
five
years
or
life
and
any
subsequent
15
request
following
any
five-year
period
shall
be
for
a
period
16
of
five
years
or
life.
The
process
established
shall
require
17
that
licensees
be
provided
electronic
access
to
names
and
18
social
security
numbers
of
persons
voluntarily
excluded
19
through
a
secured
interactive
internet
site
maintained
by
20
the
commission
and
information
regarding
persons
voluntarily
21
excluded
shall
be
disseminated
to
all
licensees
under
this
22
chapter
and
chapter
99F
.
The
names,
social
security
numbers,
23
and
information
regarding
persons
voluntarily
excluded
shall
24
be
kept
confidential
unless
otherwise
ordered
by
a
court
or
by
25
another
person
duly
authorized
to
release
such
information.
26
The
process
established
shall
also
require
a
person
requesting
27
to
be
voluntarily
excluded
be
provided
information
compiled
28
by
the
Iowa
department
of
public
health
on
gambling
treatment
29
options.
The
state
and
any
licensee
under
this
chapter
or
30
chapter
99F
shall
not
be
liable
to
any
person
for
any
claim
31
which
may
arise
from
this
process.
In
addition
to
any
other
32
penalty
provided
by
law,
any
money
or
thing
of
value
that
has
33
been
obtained
by,
or
is
owed
to,
a
voluntarily
excluded
person
34
as
a
result
of
wagers
made
by
the
person
after
the
person
has
35
-1-
LSB
2452HZ
(3)
88
ec/rn
1/
34
H.F.
748
been
voluntarily
excluded
shall
be
forfeited
by
the
person
and
1
shall
be
credited
to
the
general
fund
of
the
state.
2
Sec.
2.
Section
99F.1,
subsection
1,
Code
2019,
is
amended
3
to
read
as
follows:
4
1.
“Adjusted
gross
receipts”
means
the
gross
receipts
less
5
winnings
paid
to
wagerers
on
gambling
games
.
However,
“adjusted
6
gross
receipts”
does
not
include
promotional
play
receipts
7
received
after
the
date
in
any
fiscal
year
that
the
commission
8
determines
that
the
wagering
tax
imposed
pursuant
to
section
9
99F.11
on
all
licensees
in
that
fiscal
year
on
promotional
10
play
receipts
exceeds
twenty-five
million
eight
hundred
twenty
11
thousand
dollars.
12
Sec.
3.
Section
99F.1,
Code
2019,
is
amended
by
adding
the
13
following
new
subsections:
14
NEW
SUBSECTION
.
2A.
“Authorized
sporting
event”
means
a
15
professional
sporting
event,
a
collegiate
sporting
event,
or
an
16
international
team
or
individual
sporting
event
governed
by
the
17
international
olympic
committee.
18
NEW
SUBSECTION
.
23.
“Sports
betting”
means
the
acceptance
19
of
wagers
on
an
authorized
sporting
event
by
any
system
of
20
wagering
as
authorized
by
the
commission.
“Sports
betting”
21
does
not
include
wagering
on
a
race
as
defined
in
section
22
99D.2,
entering
an
internet
fantasy
sports
contest
as
defined
23
in
section
99E.1,
or
placing
a
wager
on
the
performance
or
24
nonperformance
of
any
individual
athlete
participating
in
a
25
single
game
or
match
of
a
collegiate
sporting
event
in
which
26
a
collegiate
team
from
this
state
is
a
participant.
“Sports
27
betting”
also
does
not
include
wagering
on
the
performance
of
28
athletes
in
an
international
individual
sporting
event
governed
29
by
the
international
olympic
committee
in
which
any
participant
30
in
the
sporting
event
is
under
eighteen
years
of
age.
31
NEW
SUBSECTION
.
24.
“Sports
betting
net
receipts”
means
32
the
gross
receipts
less
winnings
paid
to
wagerers
on
sports
33
betting.
34
NEW
SUBSECTION
.
25.
“Sports
betting
wagering
area”
means
an
35
-2-
LSB
2452HZ
(3)
88
ec/rn
2/
34
H.F.
748
area,
as
designated
by
the
commission,
in
which
sports
betting
1
is
conducted.
2
Sec.
4.
Section
99F.1,
subsection
17,
Code
2019,
is
amended
3
to
read
as
follows:
4
17.
“Licensee”
means
any
person
licensed
under
section
99F.7
5
or
99F.7A
.
6
Sec.
5.
Section
99F.3,
Code
2019,
is
amended
to
read
as
7
follows:
8
99F.3
Gambling
games
and
sports
betting
authorized.
9
The
system
of
wagering
on
a
gambling
game
and
sports
betting
10
as
provided
by
this
chapter
is
legal,
when
conducted
on
an
11
excursion
gambling
boat,
gambling
structure,
or
racetrack
12
enclosure
at
authorized
locations
by
a
licensee
as
provided
in
13
this
chapter
.
14
Sec.
6.
Section
99F.4,
subsections
3
and
22,
Code
2019,
are
15
amended
to
read
as
follows:
16
3.
To
adopt
standards
under
which
all
excursion
gambling
17
boat
operations
shall
be
held
and
standards
for
the
facilities
18
within
which
the
gambling
operations
are
to
be
held.
The
19
commission
may
authorize
the
operation
of
gambling
games
on
an
20
excursion
gambling
boat
and
sports
betting
in
a
sports
betting
21
wagering
area
which
is
also
licensed
to
sell
or
serve
alcoholic
22
beverages,
wine,
or
beer
as
defined
in
section
123.3
.
23
22.
To
establish
a
process
to
allow
a
person
to
be
24
voluntarily
excluded
from
advance
deposit
wagering
as
defined
25
in
section
99D.11,
from
an
internet
fantasy
sports
contest
as
26
defined
in
section
99E.1,
from
advance
deposit
sports
betting
27
wagering
as
defined
in
section
99F.9,
from
the
gaming
floor
28
and
sports
betting
wagering
area
of
an
excursion
gambling
29
boat,
from
the
wagering
area,
as
defined
in
section
99D.2
,
30
and
from
the
gaming
floor
and
sports
betting
wagering
area
31
of
all
other
licensed
facilities
under
this
chapter
and
32
chapter
99D
as
provided
in
this
subsection
.
The
process
shall
33
provide
that
an
initial
request
by
a
person
to
be
voluntarily
34
excluded
shall
be
for
a
period
of
five
years
or
life
and
any
35
-3-
LSB
2452HZ
(3)
88
ec/rn
3/
34
H.F.
748
subsequent
request
following
any
five-year
period
shall
be
for
1
a
period
of
five
years
or
life.
The
process
established
shall
2
require
that
licensees
be
provided
electronic
access
to
names
3
and
social
security
numbers
of
persons
voluntarily
excluded
4
through
a
secured
interactive
internet
site
maintained
by
5
the
commission
and
information
regarding
persons
voluntarily
6
excluded
shall
be
disseminated
to
all
licensees
under
this
7
chapter
and
chapter
99D
.
The
names,
social
security
numbers,
8
and
information
regarding
persons
voluntarily
excluded
shall
9
be
kept
confidential
unless
otherwise
ordered
by
a
court
or
by
10
another
person
duly
authorized
to
release
such
information.
11
The
process
established
shall
also
require
a
person
requesting
12
to
be
voluntarily
excluded
be
provided
information
compiled
13
by
the
Iowa
department
of
public
health
on
gambling
treatment
14
options.
The
state
and
any
licensee
under
this
chapter
or
15
chapter
99D
shall
not
be
liable
to
any
person
for
any
claim
16
which
may
arise
from
this
process.
In
addition
to
any
other
17
penalty
provided
by
law,
any
money
or
thing
of
value
that
has
18
been
obtained
by,
or
is
owed
to,
a
voluntarily
excluded
person
19
as
a
result
of
wagers
made
by
the
person
after
the
person
has
20
been
voluntarily
excluded
shall
be
forfeited
by
the
person
and
21
shall
be
credited
to
the
general
fund
of
the
state.
22
Sec.
7.
Section
99F.4,
Code
2019,
is
amended
by
adding
the
23
following
new
subsection:
24
NEW
SUBSECTION
.
27.
To
adopt
standards
under
which
all
25
sports
betting
is
conducted,
including
the
scope
and
type
of
26
wagers
allowed,
to
identify
occupations
within
sports
betting
27
which
require
licensing,
and
to
adopt
standards
for
licensing
28
and
background
qualifications
for
occupations
including
29
establishing
fees
for
the
occupational
license.
In
considering
30
standards
regarding
the
scope
and
type
of
wagers
allowed
for
31
sports
betting,
the
commission
shall
consult
with
interested
32
professional
and
collegiate
sports
leagues
and,
if
interested,
33
the
international
olympic
committee.
All
revenue
received
by
34
the
commission
under
this
chapter
from
license
fees
shall
be
35
-4-
LSB
2452HZ
(3)
88
ec/rn
4/
34
H.F.
748
deposited
in
the
general
fund
of
the
state
and
shall
be
subject
1
to
the
requirements
of
section
8.60.
All
revenue
received
by
2
the
commission
from
regulatory
fees
shall
be
deposited
into
the
3
gaming
regulatory
revolving
fund
established
in
section
99F.20.
4
Sec.
8.
Section
99F.6,
subsection
4,
paragraph
a,
5
subparagraphs
(3)
and
(5),
Code
2019,
are
amended
to
read
as
6
follows:
7
(3)
The
commission
shall
authorize,
subject
to
the
8
debt
payments
for
horse
racetracks
and
the
provisions
of
9
paragraph
“b”
for
dog
racetracks,
a
licensee
who
is
also
10
licensed
to
conduct
pari-mutuel
dog
or
horse
racing
to
use
11
receipts
from
gambling
games
and
sports
betting
within
the
12
racetrack
enclosure
to
support
the
horse
racing
industry
and
to
13
supplement
purses
for
races
particularly
for
Iowa-bred
horses
14
pursuant
to
an
agreement
which
shall
be
negotiated
between
the
15
licensee
and
representatives
of
the
dog
or
horse
owners.
For
16
agreements
subject
to
commission
approval
concerning
purses
17
for
horse
racing
beginning
on
or
after
January
1,
2006,
the
18
agreements
shall
provide
that
total
annual
purses
for
all
horse
19
racing
shall
be
no
less
than
eleven
percent
of
the
first
two
20
hundred
million
dollars
of
net
receipts,
and
six
percent
of
21
net
receipts
above
two
hundred
million
dollars.
In
addition,
22
live
standardbred
horse
racing
shall
not
be
conducted
at
the
23
horse
racetrack
in
Polk
county,
but
the
purse
moneys
designated
24
for
standardbred
racing
pursuant
to
section
99D.7,
subsection
25
5
,
paragraph
“b”
,
shall
be
included
in
calculating
the
total
26
annual
purses
required
to
be
paid
pursuant
to
this
subsection
.
27
Agreements
that
are
subject
to
commission
approval
concerning
28
horse
purses
for
a
period
of
time
beginning
on
or
after
January
29
1,
2006,
shall
be
jointly
submitted
to
the
commission
for
30
approval.
31
(5)
For
purposes
of
this
paragraph,
“net
receipts”
means
32
the
annual
adjusted
gross
receipts
from
all
gambling
games
and
33
sports
betting
net
receipts,
less
the
annual
amount
of
money
34
pledged
by
the
owner
of
the
facility
to
fund
a
project
approved
35
-5-
LSB
2452HZ
(3)
88
ec/rn
5/
34
H.F.
748
to
receive
vision
Iowa
funds
as
of
July
1,
2004.
1
Sec.
9.
NEW
SECTION
.
99F.7A
Sports
betting
——
license
——
2
terms
and
conditions
——
fees.
3
1.
The
commission
shall,
upon
payment
of
an
initial
4
license
fee
of
fifteen
thousand
dollars
and
submission
of
an
5
application
to
the
commission
consistent
with
the
requirements
6
of
section
99F.6,
issue
a
license
to
conduct
sports
betting
7
to
a
licensee
authorized
to
conduct
gambling
games
at
a
8
pari-mutuel
racetrack
enclosure
or
a
licensee
authorized
to
9
operate
an
excursion
gambling
boat
or
gambling
structure,
10
subject
to
the
requirements
of
this
chapter.
The
annual
11
renewal
fee
for
a
license
to
conduct
sports
betting
shall
be
12
fifteen
thousand
dollars.
13
2.
A
licensee
under
this
section
shall
do
all
of
the
14
following:
15
a.
Include
on
the
internet
site
or
mobile
application
used
16
by
the
licensee
to
conduct
advance
deposit
sports
betting
17
wagering
as
authorized
in
section
99F.9
the
statewide
telephone
18
number
authorized
by
the
Iowa
department
of
public
health
to
19
provide
problem
gambling
information
and
extensive
responsible
20
gaming
features
in
addition
to
those
described
in
section
21
99F.4,
subsection
22.
22
b.
Establish,
subject
to
commission
approval,
sports
betting
23
wagering
rules
that
specify
the
amounts
to
be
paid
on
winning
24
sports
betting
wagers,
the
effect
of
changes
in
the
scheduling
25
of
an
authorized
sporting
event
subject
to
sports
betting,
and
26
the
source
of
the
information
used
to
determine
the
outcome
27
of
a
sports
betting
wager.
The
sports
betting
wagering
rules
28
shall
be
displayed
in
the
licensee’s
sports
betting
wagering
29
area,
posted
on
the
internet
site
or
mobile
application
used
by
30
the
licensee
to
conduct
advance
deposit
sports
betting
wagering
31
as
authorized
in
section
99F.9,
and
included
in
the
terms
and
32
conditions
of
the
licensee’s
advance
deposit
account
sports
33
betting
wagering
system.
34
3.
A
licensee
issued
a
license
to
conduct
sports
betting
35
-6-
LSB
2452HZ
(3)
88
ec/rn
6/
34
H.F.
748
under
this
section
shall
employ
commercially
reasonable
steps
1
to
prohibit
coaches,
athletic
trainers,
officials,
players,
or
2
other
individuals
who
participate
in
an
authorized
sporting
3
event
that
is
the
subject
of
sports
betting
from
sports
betting
4
under
this
chapter.
In
addition,
a
licensee
shall
employ
5
commercially
reasonable
steps
to
prohibit
persons
who
are
6
employed
in
a
position
with
direct
involvement
with
coaches,
7
players,
athletic
trainers,
officials,
players,
or
participants
8
in
an
authorized
sporting
event
that
is
the
subject
of
sports
9
betting
from
sports
betting
under
this
chapter.
10
Sec.
10.
Section
99F.8,
Code
2019,
is
amended
to
read
as
11
follows:
12
99F.8
Bond
of
licensee.
13
A
licensee
licensed
under
section
99F.7
shall
post
a
bond
14
to
the
state
of
Iowa
before
the
license
is
issued
in
a
sum
15
as
the
commission
shall
fix,
with
sureties
to
be
approved
by
16
the
commission.
The
bond
shall
be
used
to
guarantee
that
the
17
licensee
faithfully
makes
the
payments,
keeps
its
books
and
18
records
and
makes
reports,
and
conducts
its
gambling
games
and
19
sports
betting
in
conformity
with
this
chapter
and
the
rules
20
adopted
by
the
commission.
The
bond
shall
not
be
canceled
by
21
a
surety
on
less
than
thirty
days’
notice
in
writing
to
the
22
commission.
If
a
bond
is
canceled
and
the
licensee
fails
to
23
file
a
new
bond
with
the
commission
in
the
required
amount
on
24
or
before
the
effective
date
of
cancellation,
the
licensee’s
25
license
shall
be
revoked.
The
total
and
aggregate
liability
26
of
the
surety
on
the
bond
is
limited
to
the
amount
specified
in
27
the
bond.
28
Sec.
11.
Section
99F.9,
subsection
1,
Code
2019,
is
amended
29
to
read
as
follows:
30
1.
Except
as
permitted
in
this
section
,
the
licensee
31
shall
not
permit
no
sports
betting
or
any
form
of
wagering
on
32
gambling
games.
33
Sec.
12.
Section
99F.9,
Code
2019,
is
amended
by
adding
the
34
following
new
subsection:
35
-7-
LSB
2452HZ
(3)
88
ec/rn
7/
34
H.F.
748
NEW
SUBSECTION
.
3A.
a.
For
the
purposes
of
this
section,
1
unless
the
context
otherwise
requires:
2
(1)
“Advance
deposit
sports
betting
wagering”
means
a
method
3
of
sports
betting
in
which
an
eligible
individual
may,
in
an
4
account
established
with
a
licensee
under
section
99F.7A,
5
deposit
moneys
into
the
account
and
use
the
account
balance
to
6
pay
for
sports
betting.
Prior
to
January
1,
2021,
an
account
7
must
be
established
by
an
eligible
individual
in
person
with
8
a
licensee.
9
(2)
“Advance
deposit
sports
betting
wagering
operator”
means
10
an
advance
deposit
sports
betting
wagering
operator
licensed
11
by
the
commission
who
has
entered
into
an
agreement
with
a
12
licensee
under
section
99F.7A
to
provide
advance
deposit
sports
13
betting
wagering.
14
(3)
“Eligible
individual”
means
an
individual
who
is
at
15
least
twenty-one
years
of
age
or
older
who
is
located
within
16
this
state.
17
b.
The
commission
may
authorize
a
licensee
under
section
18
99F.7A
to
conduct
advance
deposit
sports
betting
wagering.
An
19
advance
deposit
sports
betting
wager
may
be
placed
in
person
20
in
the
sports
wagering
area,
or
from
any
other
location
via
21
a
telephone-type
device
or
any
other
electronic
means.
The
22
commission
may
also
issue
an
advance
deposit
sports
betting
23
wagering
operator
license
to
an
entity
who
complies
with
this
24
subsection
and
section
99F.6
and
may
require
the
advance
25
deposit
sports
wagering
operator
to
conduct
an
audit
consistent
26
with
the
requirements
of
section
99F.13.
27
Sec.
13.
Section
99F.9,
subsection
4,
Code
2019,
is
amended
28
to
read
as
follows:
29
4.
A
person
under
the
age
of
twenty-one
years
shall
not
make
30
or
attempt
to
make
a
wager
pursuant
to
subsection
3A
or
on
an
31
excursion
gambling
boat,
gambling
structure,
or
in
a
racetrack
32
enclosure
and
shall
not
be
allowed
on
the
gaming
floor
of
33
an
excursion
gambling
boat
or
gambling
structure
or
in
the
34
wagering
area,
as
defined
in
section
99D.2
,
or
on
the
gaming
35
-8-
LSB
2452HZ
(3)
88
ec/rn
8/
34
H.F.
748
floor
of
a
racetrack
enclosure.
However,
a
person
eighteen
1
years
of
age
or
older
may
be
employed
to
work
on
the
gaming
2
floor
of
an
excursion
gambling
boat
or
gambling
structure
or
3
in
the
wagering
area
or
on
the
gaming
floor
of
a
racetrack
4
enclosure.
A
person
who
violates
this
subsection
with
respect
5
to
making
or
attempting
to
make
a
wager
commits
a
scheduled
6
violation
under
section
805.8C,
subsection
5
,
paragraph
“a”
.
7
Sec.
14.
Section
99F.11,
subsection
3,
unnumbered
paragraph
8
1,
Code
2019,
is
amended
to
read
as
follows:
9
The
taxes
imposed
by
this
section
on
adjusted
gross
receipts
10
from
gambling
games
authorized
under
this
chapter
shall
be
paid
11
by
the
licensee
to
the
treasurer
of
state
within
ten
days
after
12
the
close
of
the
day
when
the
wagers
were
made
and
shall
be
13
distributed
as
follows:
14
Sec.
15.
Section
99F.11,
Code
2019,
is
amended
by
adding
the
15
following
new
subsection:
16
NEW
SUBSECTION
.
4.
a.
A
tax
is
imposed
on
the
sports
17
betting
net
receipts
received
each
fiscal
year
by
a
licensed
18
operator
from
sports
betting
authorized
under
this
chapter
at
19
the
rate
of
six
and
three-quarters
percent.
20
b.
The
taxes
imposed
by
this
subsection
for
sports
betting
21
authorized
under
this
chapter
shall
be
paid
by
the
licensed
22
operator
to
the
treasurer
of
state
as
determined
by
the
23
commission
and
shall
be
distributed
as
follows:
24
(1)
An
amount
equal
to
one-fourth
of
one
percent
of
sports
25
betting
net
receipts
is
appropriated
to
the
Iowa
department
of
26
public
health
for
purposes
of
the
gambling
treatment
program
27
established
in
section
135.150.
28
(2)
The
remaining
amount
of
sports
betting
net
receipts
29
taxes
imposed
pursuant
to
this
subsection
shall
be
credited
as
30
provided
in
section
8.57,
subsection
5.
31
Sec.
16.
Section
99F.12,
subsection
2,
Code
2019,
is
amended
32
to
read
as
follows:
33
2.
a.
The
licensee
shall
furnish
to
the
commission
reports
34
and
information
as
the
commission
may
require
with
respect
to
35
-9-
LSB
2452HZ
(3)
88
ec/rn
9/
34
H.F.
748
the
licensee’s
activities.
1
b.
A
licensee
under
section
99F.7A
shall
promptly
report
2
to
the
commission
any
criminal
or
disciplinary
proceedings
3
commenced
against
the
licensee
or
its
employees
in
connection
4
with
the
licensee
conducting
sports
betting
including
advance
5
deposit
sports
betting
wagering,
any
abnormal
wagering
activity
6
or
patterns
that
may
indicate
a
concern
about
the
integrity
7
of
an
authorized
sporting
event
or
events,
and
any
other
8
conduct
with
the
potential
to
corrupt
a
wagering
outcome
of
9
an
authorized
sporting
event
for
purposes
of
financial
gain,
10
including
but
not
limited
to
match
fixing,
and
suspicious
or
11
illegal
wagering
activities,
including
the
use
of
funds
derived
12
from
illegal
activity,
wagers
to
conceal
or
launder
funds
13
derived
from
illegal
activity,
use
of
agents
to
place
wagers,
14
or
use
of
false
identification.
The
commission
is
required
15
to
share
any
information
received
pursuant
to
this
paragraph
16
with
the
division
of
criminal
investigation,
any
other
law
17
enforcement
entity
upon
request,
or
any
regulatory
agency
the
18
commission
deems
appropriate.
The
commission
may
also
share
19
any
information
received
pursuant
to
this
paragraph
with
any
20
sports
team
or
sports
governing
body
as
the
commission
deems
21
appropriate,
but
shall
not
share
any
information
that
would
22
interfere
with
an
ongoing
criminal
investigation.
23
c.
The
gross
receipts
and
adjusted
gross
receipts
from
24
gambling
shall
be
separately
handled
and
accounted
for
from
25
all
other
moneys
received
from
operation
of
an
excursion
26
gambling
boat
or
from
operation
of
a
racetrack
enclosure
or
27
gambling
structure
licensed
to
conduct
gambling
games.
The
28
commission
may
designate
a
representative
to
board
a
licensed
29
excursion
gambling
boat
or
to
enter
a
racetrack
enclosure
or
30
gambling
structure
licensed
to
conduct
gambling
games.
The
31
representative
shall
have
full
access
to
all
places
within
the
32
enclosure
of
the
boat,
the
gambling
structure,
or
the
racetrack
33
enclosure
and
shall
directly
supervise
the
handling
and
34
accounting
of
all
gross
receipts
and
adjusted
gross
receipts
35
-10-
LSB
2452HZ
(3)
88
ec/rn
10/
34
H.F.
748
from
gambling.
The
representative
shall
supervise
and
check
1
the
admissions.
The
compensation
of
a
representative
shall
be
2
fixed
by
the
commission
but
shall
be
paid
by
the
licensee.
3
Sec.
17.
Section
99F.15,
subsection
1,
paragraph
c,
Code
4
2019,
is
amended
to
read
as
follows:
5
c.
Acting,
or
employing
a
person
to
act,
as
a
shill
or
6
decoy
to
encourage
participation
in
a
gambling
game
or
sports
7
betting
.
8
Sec.
18.
Section
99F.15,
subsection
4,
paragraphs
d,
h,
and
9
i,
Code
2019,
are
amended
to
read
as
follows:
10
d.
Cheats
at
a
gambling
game,
including
but
not
limited
to
11
committing
any
act
which
alters
the
outcome
of
the
game
,
or
12
cheats
at
sports
betting
.
13
h.
Claims,
collects,
or
takes,
or
attempts
to
claim,
14
collect,
or
take,
money
or
anything
of
value
in
or
from
the
15
gambling
games
or
sports
betting
,
with
intent
to
defraud,
16
without
having
made
a
wager
contingent
on
winning
a
gambling
17
game
or
sports
betting
wager
,
or
claims,
collects,
or
takes
an
18
amount
of
money
or
thing
of
value
of
greater
value
than
the
19
amount
won.
20
i.
Knowingly
entices
or
induces
a
person
to
go
to
any
place
21
where
a
gambling
game
or
sports
betting
is
being
conducted
or
22
operated
in
violation
of
the
provisions
of
this
chapter
with
23
the
intent
that
the
other
person
plays
or
participates
in
that
24
gambling
game
or
sports
betting
.
25
Sec.
19.
Section
99F.20,
subsection
1,
Code
2019,
is
amended
26
to
read
as
follows:
27
1.
A
gaming
regulatory
revolving
fund
is
created
in
28
the
state
treasury
under
the
control
of
the
department
of
29
inspections
and
appeals.
The
fund
shall
consist
of
fees
30
collected
and
deposited
into
the
fund
paid
by
licensees
31
pursuant
to
section
99D.14,
subsection
2
,
paragraph
“c”
,
fees
32
paid
by
licensees
pursuant
to
section
99E.5,
subsection
4,
33
paragraph
“c”
,
regulatory
fees
paid
by
licensees
pursuant
34
to
section
99F.4,
subsection
27,
and
fees
paid
by
licensees
35
-11-
LSB
2452HZ
(3)
88
ec/rn
11/
34
H.F.
748
pursuant
to
section
99F.10,
subsection
4
,
paragraph
“c”
.
All
1
costs
relating
to
racetrack,
excursion
boat,
and
gambling
2
structure
regulation
shall
be
paid
from
the
fund
as
provided
in
3
appropriations
made
for
this
purpose
by
the
general
assembly.
4
The
department
shall
provide
quarterly
reports
to
the
5
department
of
management
and
the
legislative
services
agency
6
specifying
revenues
billed
and
collected
and
expenditures
7
from
the
fund
in
a
format
as
determined
by
the
department
8
of
management
in
consultation
with
the
legislative
services
9
agency.
10
Sec.
20.
EMERGENCY
RULES.
The
state
racing
and
gaming
11
commission
created
under
section
99D.5
may
adopt
emergency
12
rules
under
section
17A.4,
subsection
3,
and
section
17A.5,
13
subsection
2,
paragraph
“b”,
to
implement
the
provisions
of
14
this
division
of
this
Act
and
the
rules
shall
be
effective
15
immediately
upon
filing
unless
a
later
date
is
specified
in
the
16
rules.
Any
rules
adopted
in
accordance
with
this
section
shall
17
also
be
published
as
a
notice
of
intended
action
as
provided
18
in
section
17A.4.
19
Sec.
21.
IMPLEMENTATION.
The
racing
and
gaming
commission
20
shall
not
implement
this
division
of
this
Act
until
the
date
21
the
commission
has
adopted
rules
pursuant
to
chapter
17A
22
providing
for
such
implementation
and
such
rules
have
become
23
effective.
24
Sec.
22.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
25
deemed
of
immediate
importance,
takes
effect
upon
enactment.
26
DIVISION
II
27
INTERNET
FANTASY
SPORTS
CONTESTS
28
Sec.
23.
Section
80.25A,
Code
2019,
is
amended
to
read
as
29
follows:
30
80.25A
Pari-mutuel
and
gambling
game
Gaming
operations
——
31
investigation
and
enforcement.
32
The
commissioner
of
public
safety
shall
direct
the
chief
33
of
the
division
of
criminal
investigation
to
establish
a
34
subdivision
to
be
the
primary
criminal
investigative
and
35
-12-
LSB
2452HZ
(3)
88
ec/rn
12/
34
H.F.
748
enforcement
agency
for
the
purpose
of
enforcement
of
chapters
1
99D
,
99E,
and
99F
.
The
commissioner
of
public
safety
shall
2
appoint
or
assign
other
agents
to
the
division
as
necessary
to
3
enforce
chapters
99D
,
99E,
and
99F
.
All
enforcement
officers,
4
assistants,
and
agents
of
the
division
are
subject
to
section
5
80.15
except
clerical
workers.
6
Sec.
24.
NEW
SECTION
.
99E.1
Definitions.
7
As
used
in
this
chapter,
unless
the
context
otherwise
8
requires:
9
1.
“Applicant”
means
an
internet
fantasy
sports
contest
10
service
provider
applying
for
a
license
to
conduct
internet
11
fantasy
sports
contests
under
this
chapter.
12
2.
“Commission”
means
the
state
racing
and
gaming
commission
13
created
under
section
99D.5.
14
3.
“Fantasy
sports
contest”
includes
any
fantasy
or
15
simulated
game
or
contest
in
which
the
fantasy
sports
contest
16
operator
is
not
a
participant
in
the
game
or
contest,
the
value
17
of
all
prizes
and
awards
offered
to
winning
participants
are
18
established
and
made
known
to
the
participants
in
advance
19
of
the
contest,
all
winning
outcomes
reflect
the
relative
20
knowledge
and
skill
of
the
participants
and
shall
be
determined
21
by
accumulated
statistical
results
of
the
performance
of
22
individuals,
including
athletes
in
the
case
of
sporting
events,
23
and
no
winning
outcome
is
based
on
the
score,
point
spread,
or
24
any
performance
or
performances
of
any
single
actual
team
or
25
solely
on
any
single
performance
of
an
individual
athlete
or
26
player
in
any
single
actual
event.
27
4.
“Internet
fantasy
sports
contest”
means
a
method
of
28
entering
a
fantasy
sports
contest
by
which
a
person
may
29
establish
an
account
with
an
internet
fantasy
sports
contest
30
service
provider,
deposit
money
into
the
account,
and
use
31
the
account
balance
for
entering
a
fantasy
sports
contest
by
32
utilizing
electronic
communication.
33
5.
“Internet
fantasy
sports
contest
adjusted
revenues”
means,
34
for
each
internet
fantasy
sports
contest,
the
amount
equal
to
35
-13-
LSB
2452HZ
(3)
88
ec/rn
13/
34
H.F.
748
the
total
charges
and
fees
collected
from
all
participants
1
entering
the
internet
fantasy
sports
contest
less
winnings
paid
2
to
participants
in
the
contest,
multiplied
by
the
location
3
percentage.
4
6.
“Internet
fantasy
sports
contest
player”
means
a
person
5
who
is
at
least
twenty-one
years
of
age
and
participates
in
an
6
internet
fantasy
sports
contest
operated
by
an
internet
fantasy
7
sports
contest
service
provider.
8
7.
“Internet
fantasy
sports
contest
service
provider”
means
9
a
person,
including
a
licensee
under
chapter
99D
or
99F,
who
10
conducts
an
internet
fantasy
sports
contest
as
authorized
by
11
this
chapter.
12
8.
“Licensee”
means
any
person
licensed
under
section
99E.5
13
to
conduct
internet
fantasy
sports
contests.
14
9.
“Location
percentage”
means,
for
each
internet
fantasy
15
sports
contest,
the
percentage,
rounded
to
the
nearest
tenth
of
16
a
percent,
equal
to
the
total
charges
and
fees
collected
from
17
all
internet
fantasy
sports
contest
players
located
in
this
18
state
divided
by
the
total
charges
and
fees
collected
from
all
19
participants
in
the
internet
fantasy
sports
contest.
20
Sec.
25.
NEW
SECTION
.
99E.2
Internet
fantasy
sports
21
contests
authorized.
22
The
system
of
entering
an
internet
fantasy
sports
contest
as
23
provided
by
this
chapter
is
legal
when
conducted
by
a
licensed
24
internet
fantasy
sports
contest
service
provider
as
provided
in
25
this
chapter.
26
Sec.
26.
NEW
SECTION
.
99E.3
Commission
——
powers.
27
1.
The
commission
shall
have
full
jurisdiction
over
and
28
shall
supervise
internet
fantasy
sports
contests
and
internet
29
fantasy
sports
contest
service
providers
as
governed
by
this
30
chapter.
31
2.
The
commission
shall
have
the
following
powers
and
shall
32
adopt
rules
pursuant
to
chapter
17A
to
administer
and
implement
33
this
chapter:
34
a.
To
review
and
investigate
applicants
and
determine
the
35
-14-
LSB
2452HZ
(3)
88
ec/rn
14/
34
H.F.
748
eligibility
of
applicants
for
a
license
to
conduct
internet
1
fantasy
sports
contests,
pursuant
to
rules
adopted
by
the
2
commission.
3
b.
To
license
and
regulate
internet
fantasy
sports
contest
4
service
providers
subject
to
the
requirements
of
this
chapter.
5
c.
To
provide
for
the
prevention
of
practices
detrimental
to
6
the
public
and
to
provide
for
the
best
interests
of
internet
7
fantasy
sports
contests.
8
d.
To
investigate
alleged
violations
of
this
chapter
9
or
the
commission
rules,
orders,
or
final
decisions
and
to
10
take
appropriate
disciplinary
action
against
a
licensee,
or
11
institute
appropriate
legal
action
for
enforcement,
or
both.
12
Information
gathered
during
an
investigation
is
confidential
13
during
the
pendency
of
the
investigation.
14
e.
To
assess
fines
and
revoke
or
suspend
licenses
and
to
15
impose
penalties
for
violations
of
this
chapter.
16
f.
To
take
any
other
action
as
may
be
reasonable
or
17
appropriate
to
enforce
this
chapter
and
the
commission
rules.
18
Sec.
27.
NEW
SECTION
.
99E.4
Requirements
of
applicant
——
19
fee.
20
1.
An
applicant
for
a
license
to
conduct
internet
fantasy
21
sports
contests
shall
complete
and
sign
an
application
on
22
the
form
prescribed
and
published
by
the
commission.
The
23
application
shall
include
such
information
of
the
applicant
24
that
the
commission
deems
necessary
for
purposes
of
issuing
a
25
license
pursuant
to
this
chapter.
26
2.
An
applicant
shall
submit
fingerprints
and
information
27
that
the
commission
deems
necessary
to
the
commission
in
the
28
manner
prescribed
on
the
application
forms.
The
fingerprints
29
may
be
submitted
to
the
federal
bureau
of
investigation
by
30
the
department
of
public
safety
through
the
state
criminal
31
history
repository
for
the
purpose
of
a
national
criminal
32
history
check.
The
results
of
a
criminal
history
record
check
33
conducted
pursuant
to
this
subsection
shall
be
considered
a
34
confidential
record
under
chapter
22.
35
-15-
LSB
2452HZ
(3)
88
ec/rn
15/
34
H.F.
748
3.
Before
a
license
is
granted,
the
division
of
criminal
1
investigation
of
the
department
of
public
safety
shall
conduct
2
a
thorough
background
investigation
of
the
applicant
for
a
3
license
to
conduct
internet
fantasy
sports
contests.
The
4
applicant
shall
provide
information
on
a
form
as
required
by
5
the
division
of
criminal
investigation.
6
4.
The
commission
shall
charge
the
applicant
a
reasonable
7
fee
set
by
the
division
of
criminal
investigation
of
the
8
department
of
public
safety,
to
defray
those
costs
associated
9
with
the
fingerprint
and
national
criminal
history
check
10
requirements
of
subsection
2
and
background
investigations
11
conducted
by
agents
of
the
division
of
criminal
investigation
12
as
provided
in
subsection
3.
These
fees
and
costs
are
in
13
addition
to
any
other
license
fees
and
costs
charged
by
the
14
commission.
15
5.
The
commission
shall
not
grant
a
license
to
an
applicant
16
if
there
is
substantial
evidence
that
any
of
the
following
17
apply:
18
a.
A
license
issued
to
the
applicant
to
conduct
internet
19
fantasy
sports
contests
in
another
jurisdiction
has
been
20
revoked,
or
a
request
for
a
license
to
conduct
internet
fantasy
21
sports
contests
in
another
jurisdiction
has
been
denied,
by
22
an
entity
licensing
persons
to
conduct
such
contests
in
that
23
jurisdiction.
24
b.
The
applicant
has
not
demonstrated
financial
25
responsibility
sufficient
to
adequately
meet
the
requirements
26
of
the
enterprise
proposed.
27
c.
The
applicant
does
not
adequately
disclose
the
true
28
owners
of
the
enterprise
proposed.
29
d.
The
applicant
has
knowingly
made
a
false
statement
of
a
30
material
fact
to
the
commission.
31
e.
The
applicant
has
failed
to
meet
a
monetary
obligation
in
32
connection
with
conducting
an
internet
fantasy
sports
contest.
33
f.
The
applicant
is
not
of
good
repute
and
moral
character
34
or
the
applicant
has
pled
guilty
to,
or
has
been
convicted
of,
35
-16-
LSB
2452HZ
(3)
88
ec/rn
16/
34
H.F.
748
a
felony.
1
g.
Any
member
of
the
board
of
directors
of
the
applicant
is
2
not
twenty-one
years
of
age
or
older.
3
6.
A
person
who
knowingly
makes
a
false
statement
on
the
4
application
is
guilty
of
an
aggravated
misdemeanor.
5
7.
For
the
purposes
of
this
section,
“applicant”
includes
6
each
member
of
the
board
of
directors
of
an
internet
fantasy
7
sports
contest
service
provider.
8
Sec.
28.
NEW
SECTION
.
99E.5
Licenses
——
fees
——
terms
and
9
conditions
——
revocation.
10
1.
If
the
commission
is
satisfied
that
the
requirements
11
of
this
chapter
and
its
rules
adopted
under
this
chapter
12
applicable
to
licensees
have
been
or
will
be
complied
with,
the
13
commission
shall,
upon
payment
of
an
initial
annual
license
14
fee
of
five
thousand
dollars,
issue
a
license
for
a
period
of
15
not
more
than
three
years
to
an
applicant
to
conduct
internet
16
fantasy
sports
contests
in
this
state.
17
2.
A
licensed
internet
fantasy
sports
contest
service
18
provider
shall
use
commercially
reasonable
methods
to
comply
19
with
all
of
the
following
requirements:
20
a.
Prevent
employees
of
the
internet
fantasy
sports
contest
21
service
provider
and
relatives
living
in
the
same
household
of
22
such
employees
from
competing
in
any
internet
fantasy
sports
23
contest
on
the
service
provider’s
digital
platform
in
which
the
24
service
provider
offers
a
cash
prize
to
the
public.
25
b.
Verify
that
an
internet
fantasy
sports
contest
player
26
located
in
this
state
is
twenty-one
years
of
age
or
older.
27
c.
Ensure
that
coaches,
officials,
players,
contestants,
28
or
other
individuals
who
participate
in
a
game
or
contest
29
that
is
the
subject
of
an
internet
fantasy
sports
contest
are
30
restricted
from
entering
an
internet
fantasy
sports
contest
in
31
which
the
outcome
is
determined,
in
whole
or
in
part,
by
the
32
accumulated
statistical
results
of
a
team
of
individuals
in
the
33
game
or
contest
in
which
they
participate.
34
d.
Allow
individuals
to
restrict
themselves
from
entering
35
-17-
LSB
2452HZ
(3)
88
ec/rn
17/
34
H.F.
748
an
internet
fantasy
sports
contest
conducted
by
the
internet
1
fantasy
sports
contest
service
provider
upon
request
and
take
2
reasonable
steps
to
prevent
those
individuals
from
entering
3
any
internet
fantasy
sports
contests
conducted
by
the
internet
4
fantasy
sports
contest
service
provider.
5
e.
Allow
individuals
to
establish
an
account
with
an
6
internet
fantasy
sports
contest
service
provider
by
utilizing
7
electronic
communication.
8
f.
Disclose
the
number
of
entries
a
single
internet
fantasy
9
sports
contest
player
may
submit
to
each
internet
fantasy
10
sports
contest
and
take
reasonable
steps
to
prevent
players
11
from
submitting
more
than
the
allowable
number
of
entries
for
12
that
internet
fantasy
sports
contest.
13
g.
Segregate
internet
fantasy
sports
contest
player
funds
14
from
operational
funds
or
maintain
a
reserve
in
the
form
of
15
cash,
cash
equivalents,
an
irrevocable
letter
of
credit,
16
payment
processor
reserves
and
receivables,
a
bond,
or
a
17
combination
thereof
in
the
amount
of
the
deposits
in
internet
18
fantasy
sports
contest
player
accounts
for
the
benefit
and
19
protection
of
internet
fantasy
sports
contest
player
funds
held
20
in
internet
fantasy
sports
contest
accounts
by
the
internet
21
fantasy
sports
contest
service
provider.
22
h.
Conduct
an
annual
audit
under
section
99E.9.
23
i.
Pay
the
tax
as
provided
in
section
99E.6.
24
3.
The
annual
renewal
fee
for
a
license
to
conduct
internet
25
fantasy
sports
contests
shall
be
five
thousand
dollars.
Moneys
26
collected
by
the
commission
from
the
annual
renewal
fee
for
27
a
license
paid
under
this
subsection
shall
be
considered
28
repayment
receipts
as
defined
in
section
8.2.
29
4.
a.
A
licensed
internet
fantasy
sports
contest
service
30
provider
shall
pay
a
regulatory
fee
to
the
commission.
The
31
regulatory
fee
shall
be
established
by
the
commission
based
on
32
the
costs
of
administering
and
enforcing
this
chapter.
33
b.
A
licensed
internet
fantasy
sports
contest
service
34
provider
shall
receive
a
credit
for
the
amount
of
the
license
35
-18-
LSB
2452HZ
(3)
88
ec/rn
18/
34
H.F.
748
and
regulatory
fee
paid
by
the
provider
against
the
taxes
to
be
1
paid
pursuant
to
section
99E.6.
2
c.
Notwithstanding
section
8.60,
the
portion
of
the
fee
3
paid
pursuant
to
paragraph
“a”
relating
to
the
costs
of
the
4
commission
shall
be
deposited
into
the
gaming
regulatory
5
revolving
fund
established
in
section
99F.20.
6
5.
Upon
a
violation
of
any
of
the
conditions
listed
in
7
section
99E.4
or
this
section
by
a
licensee,
the
commission
8
shall
immediately
revoke
the
license.
9
Sec.
29.
NEW
SECTION
.
99E.6
Internet
fantasy
sports
contest
10
tax
——
rate.
11
1.
A
tax
is
imposed
on
internet
fantasy
sports
contest
12
adjusted
revenues
received
each
fiscal
year
by
an
internet
13
fantasy
sports
contest
service
provider
from
internet
fantasy
14
sports
contests
authorized
under
this
chapter
at
the
rate
of
15
six
and
three-quarters
percent.
16
2.
The
taxes
imposed
by
this
section
for
internet
fantasy
17
sports
contests
authorized
under
this
chapter
shall
be
paid
by
18
the
internet
fantasy
sports
contest
service
provider
to
the
19
treasurer
of
state
as
determined
by
the
commission
and
shall
be
20
distributed
as
follows:
21
a.
An
amount
equal
to
one-fourth
of
one
percent
of
internet
22
fantasy
sports
contest
adjusted
revenues
is
appropriated
to
the
23
Iowa
department
of
public
health
for
purposes
of
the
gambling
24
treatment
program
established
in
section
135.150.
25
b.
The
remaining
amount
of
internet
fantasy
sports
contest
26
adjusted
revenues
taxes
imposed
pursuant
to
this
section
shall
27
be
credited
as
provided
in
section
8.57,
subsection
5.
28
Sec.
30.
NEW
SECTION
.
99E.7
Internet
fantasy
sports
29
contests
——
age
restrictions.
30
A
person
under
the
age
of
twenty-one
years
shall
not
enter
an
31
internet
fantasy
sports
contest.
A
person
who
violates
this
32
section
with
respect
to
entering
an
internet
fantasy
sports
33
contest
commits
a
scheduled
violation
under
section
805.8C,
34
subsection
12.
35
-19-
LSB
2452HZ
(3)
88
ec/rn
19/
34
H.F.
748
Sec.
31.
NEW
SECTION
.
99E.8
Licensees
——
records
——
reports
1
——
confidentiality.
2
1.
An
internet
fantasy
sports
contest
service
provider
3
shall
keep
its
books
and
records
so
as
to
clearly
show
the
4
internet
fantasy
sports
contest
adjusted
revenues
for
each
5
internet
fantasy
sports
contest
subject
to
tax
in
this
state.
6
2.
a.
The
licensee
shall
furnish
to
the
commission
reports
7
and
information
as
the
commission
may
require
with
respect
to
8
the
licensee’s
activities.
9
b.
A
licensee
shall
promptly
report
to
the
commission
any
10
criminal
or
disciplinary
proceedings
commenced
against
the
11
licensee
or
its
employees
in
connection
with
the
licensee
12
conducting
an
internet
fantasy
sports
contest,
any
abnormal
13
contest
activity
or
patterns
that
may
indicate
a
concern
about
14
the
integrity
of
an
internet
fantasy
sports
contest,
and
any
15
other
conduct
with
the
potential
to
corrupt
an
outcome
of
an
16
internet
fantasy
sports
contest
for
purposes
of
financial
gain,
17
including
but
not
limited
to
match
fixing,
and
suspicious
or
18
illegal
internet
fantasy
sports
contest
activities,
including
19
the
use
of
funds
derived
from
illegal
activity,
deposits
20
of
money
to
enter
an
internet
fantasy
sports
contest
to
21
conceal
or
launder
funds
derived
from
illegal
activity,
use
22
of
agents
to
enter
an
internet
fantasy
sports
contest,
or
23
use
of
false
identification.
The
commission
is
authorized
24
to
share
any
information
received
pursuant
to
this
paragraph
25
with
the
division
of
criminal
investigation,
any
other
law
26
enforcement
entity
upon
request,
or
any
regulatory
agency
the
27
commission
deems
appropriate.
The
commission
may
also
share
28
any
information
received
pursuant
to
this
paragraph
with
any
29
sports
team
or
sports
governing
body
as
the
commission
deems
30
appropriate,
but
shall
not
share
any
information
that
would
31
interfere
with
an
ongoing
criminal
investigation.
32
3.
Except
as
provided
in
subsection
4,
the
books
and
records
33
kept
by
a
licensee
as
provided
by
this
section
are
public
34
records
and
the
examination,
publication,
and
dissemination
of
35
-20-
LSB
2452HZ
(3)
88
ec/rn
20/
34
H.F.
748
the
books
and
records
are
governed
by
the
provisions
of
chapter
1
22.
2
4.
The
records
of
the
commission
shall
be
governed
by
the
3
provisions
of
chapter
22,
provided
that,
in
addition
to
records
4
that
may
be
kept
confidential
pursuant
to
section
22.7,
the
5
following
records
provided
by
a
licensee
to
the
commission
6
shall
be
kept
confidential,
unless
otherwise
ordered
by
a
7
court,
by
the
lawful
custodian
of
the
records,
or
by
another
8
person
duly
authorized
to
release
such
information:
9
a.
Patron
and
customer
records.
10
b.
Security
reports
and
network
audits.
11
c.
Internal
control
and
compliance
records.
12
d.
Employee
records.
13
e.
Marketing
expenses.
14
f.
Supplemental
schedules
to
the
certified
audit,
except
for
15
those
books
and
records
as
described
in
subsection
1
of
this
16
section,
that
are
obtained
by
the
commission
in
connection
with
17
the
annual
audit
under
section
99E.9.
18
g.
Any
information
specifically
requested
for
inspection
by
19
the
commission
or
a
representative
of
the
commission.
20
Sec.
32.
NEW
SECTION
.
99E.9
Annual
audit
of
licensee
21
operations.
22
Within
ninety
days
after
the
end
of
the
licensee’s
fiscal
23
year,
the
licensee
shall
transmit
to
the
commission
an
audit
24
of
the
licensee’s
total
internet
fantasy
sports
contest
25
operations,
including
an
itemization
of
all
expenses
and
26
subsidies.
Each
audit
shall
be
conducted
by
a
certified
public
27
accountant
authorized
to
practice
in
the
state
of
Iowa
under
28
chapter
542
who
is
selected
by
the
licensee
and
approved
by
the
29
commission.
30
Sec.
33.
NEW
SECTION
.
99E.10
Civil
penalty.
31
A
person
who
willfully
fails
to
comply
with
the
requirements
32
of
this
chapter
and
the
rules
adopted
pursuant
to
chapter
17A
33
under
this
chapter
shall
be
liable
for
a
civil
penalty
of
34
not
more
than
one
thousand
dollars
for
each
violation,
not
35
-21-
LSB
2452HZ
(3)
88
ec/rn
21/
34
H.F.
748
to
exceed
ten
thousand
dollars
for
violations
arising
out
of
1
the
same
transaction
or
occurrence,
which
shall
accrue
to
the
2
state
and
may
be
recovered
in
a
civil
action
brought
by
the
3
commission.
4
Sec.
34.
Section
99F.2,
Code
2019,
is
amended
to
read
as
5
follows:
6
99F.2
Scope
of
provisions.
7
This
chapter
does
not
apply
to
the
pari-mutuel
system
of
8
wagering
used
or
intended
to
be
used
in
connection
with
the
9
horse-race
or
dog-race
meetings
as
authorized
under
chapter
10
99D
,
internet
fantasy
sports
contests
authorized
under
chapter
11
99E,
lottery
or
lotto
games
authorized
under
chapter
99G
,
or
12
bingo
or
games
of
skill
or
chance
authorized
under
chapter
99B
.
13
Sec.
35.
Section
99F.4B,
Code
2019,
is
amended
to
read
as
14
follows:
15
99F.4B
Rules.
16
The
department
of
inspections
and
appeals
shall
cooperate
17
to
the
maximum
extent
possible
with
the
division
of
criminal
18
investigation
in
adopting
rules
relating
to
the
gaming
19
operations
in
this
chapter
and
chapter
chapters
99D
and
99E
.
20
Sec.
36.
Section
232C.4,
subsection
3,
Code
2019,
is
amended
21
to
read
as
follows:
22
3.
An
emancipated
minor
shall
remain
subject
to
voting
23
restrictions
under
chapter
48A
,
gambling
restrictions
under
24
chapter
99B
,
99D
,
99F
,
99G
,
or
725
,
internet
fantasy
sports
25
contest
restrictions
under
chapter
99E,
alcohol
restrictions
26
under
chapter
123
,
compulsory
attendance
requirements
under
27
chapter
299
,
and
cigarette
tobacco
restrictions
under
chapter
28
453A
.
29
Sec.
37.
Section
714B.10,
subsection
1,
Code
2019,
is
30
amended
to
read
as
follows:
31
1.
Advertising
by
sponsors
registered
pursuant
to
chapter
32
557B
,
licensed
pursuant
to
chapter
99B
,
or
regulated
pursuant
33
to
chapter
99D
,
99E,
99F
,
or
99G
.
34
Sec.
38.
Section
725.15,
Code
2019,
is
amended
to
read
as
35
-22-
LSB
2452HZ
(3)
88
ec/rn
22/
34
H.F.
748
follows:
1
725.15
Exceptions
for
legal
gambling.
2
Sections
725.5
through
725.10
and
725.12
do
not
apply
to
3
a
game,
activity,
ticket,
or
device
when
lawfully
possessed,
4
used,
conducted,
or
participated
in
pursuant
to
chapter
99B
,
5
99E,
99F
,
or
99G
.
6
Sec.
39.
Section
805.8C,
Code
2019,
is
amended
by
adding
the
7
following
new
subsection:
8
NEW
SUBSECTION
.
12.
Internet
fantasy
sports
contest
9
violations.
For
violations
of
legal
age
for
entering
an
10
internet
fantasy
sports
contest
under
section
99E.7,
the
11
scheduled
fine
is
five
hundred
dollars.
Failure
to
pay
the
12
fine
by
a
person
under
the
age
of
eighteen
shall
not
result
in
13
the
person
being
detained
in
a
secure
facility.
14
Sec.
40.
TRANSITIONAL
LICENSE.
Notwithstanding
any
15
provisions
of
chapter
99E
as
enacted
by
this
Act
to
the
16
contrary,
a
person
granted
a
license
or
registration
by
two
or
17
more
states
to
conduct
internet
fantasy
sports
contests
may
18
apply
for
and
shall
be
granted
a
transitional
license
by
the
19
racing
and
gaming
commission
to
conduct
internet
fantasy
sports
20
contests
in
this
state
subject
to
the
requirements
of
chapter
21
99E,
as
enacted
by
this
Act.
The
transitional
license
shall
22
be
valid
until
the
earlier
of
the
date
the
racing
and
gaming
23
commission
grants
or
denies
a
license
under
section
99E.5
to
24
the
person
to
conduct
internet
fantasy
sports
contests,
or
25
twelve
months
from
the
date
the
racing
and
gaming
commission
26
accepts
applications
for
issuance
of
a
license
to
conduct
27
internet
fantasy
sports
contests
under
section
99E.5.
28
Sec.
41.
EMERGENCY
RULES.
The
state
racing
and
gaming
29
commission
created
under
section
99D.5
may
adopt
emergency
30
rules
under
section
17A.4,
subsection
3,
and
section
17A.5,
31
subsection
2,
paragraph
“b”,
to
implement
the
provisions
of
32
this
division
of
this
Act
and
the
rules
shall
be
effective
33
immediately
upon
filing
unless
a
later
date
is
specified
in
the
34
rules.
Any
rules
adopted
in
accordance
with
this
section
shall
35
-23-
LSB
2452HZ
(3)
88
ec/rn
23/
34
H.F.
748
also
be
published
as
a
notice
of
intended
action
as
provided
1
in
section
17A.4.
2
Sec.
42.
IMPLEMENTATION.
The
racing
and
gaming
commission
3
shall
not
implement
this
division
of
this
Act
until
the
date
4
the
commission
has
adopted
rules
pursuant
to
chapter
17A
5
providing
for
such
implementation
and
such
rules
have
become
6
effective.
7
Sec.
43.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
8
deemed
of
immediate
importance,
takes
effect
upon
enactment.
9
DIVISION
III
10
GAMBLING
REGULATION
11
Sec.
44.
Section
99B.41,
Code
2019,
is
amended
by
adding
the
12
following
new
subsection:
13
NEW
SUBSECTION
.
1A.
“Social
fantasy
sports
contest”
means
14
any
fantasy
or
simulated
game
or
contest
in
which
the
value
15
of
all
prizes
and
awards
offered
to
winning
participants
are
16
established
and
made
known
to
the
participants
in
advance
of
17
the
contest
and
do
not
exceed
a
total
of
one
thousand
dollars
18
or
equivalent
consideration,
all
winning
outcomes
reflect
19
the
relative
knowledge
and
skill
of
the
participants
and
20
shall
be
determined
by
accumulated
statistical
results
of
21
the
performance
of
individuals
in
events
occurring
over
more
22
than
a
twenty-four-hour
period,
including
athletes
in
the
case
23
of
sporting
events,
and
no
winning
outcome
is
based
on
the
24
score,
point
spread,
or
any
performance
or
performances
of
25
any
single
actual
team
or
solely
on
any
single
performance
of
26
an
individual
athlete
or
player
in
any
single
actual
event.
27
“Social
fantasy
sports
contest”
does
not
include
an
internet
28
fantasy
sports
contest
as
defined
in
section
99E.1.
29
Sec.
45.
Section
99B.45,
subsection
2,
Code
2019,
is
amended
30
by
adding
the
following
new
paragraph:
31
NEW
PARAGRAPH
.
c.
A
social
fantasy
sports
contest.
32
Sec.
46.
Section
99D.7,
subsection
5,
paragraph
c,
33
subparagraphs
(2)
and
(3),
Code
2019,
are
amended
to
read
as
34
follows:
35
-24-
LSB
2452HZ
(3)
88
ec/rn
24/
34
H.F.
748
(2)
Of
the
purse
moneys
designated
for
thoroughbred
1
racing,
two
percent
shall
be
distributed
to
an
organization
2
representing
owners
of
thoroughbred
race
horses
for
the
3
purpose
purposes
of
paying
the
annual
operating
expenses
of
the
4
organization
,
and
for
the
promotion
and
marketing
of
Iowa-bred
5
horses
,
benevolence,
thoroughbred
aftercare,
breeder
promotions
6
and
awards,
and
improvements
to
the
horse
racetrack
in
Polk
7
county
.
The
organization
receiving
such
purse
moneys
shall
8
complete
and
provide
to
the
commission
an
annual
audit
and
9
accounting
of
the
allocation
of
such
moneys.
10
(3)
Of
the
purse
moneys
designated
for
quarter
horse
11
racing,
two
percent
shall
be
distributed
to
an
organization
12
representing
owners
of
quarter
horse
race
horses
for
the
13
purpose
purposes
of
paying
the
annual
operating
expenses
of
14
the
organization
,
and
for
the
promotion
and
marketing
of
15
Iowa-bred
horses
,
benevolence,
quarter
horse
aftercare,
breeder
16
promotions
and
awards,
and
improvements
to
the
horse
racetrack
17
in
Polk
county
.
The
organization
receiving
such
purse
moneys
18
shall
complete
and
provide
to
the
commission
an
annual
audit
19
and
accounting
of
the
allocation
of
such
moneys.
20
Sec.
47.
Section
99D.11,
subsection
6,
paragraph
c,
21
subparagraph
(4),
Code
2019,
is
amended
by
striking
the
22
subparagraph.
23
EXPLANATION
24
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
25
the
explanation’s
substance
by
the
members
of
the
general
assembly.
26
This
bill
authorizes
sports
gambling
and
wagering,
including
27
sports
betting
and
fantasy
sports
contests.
28
LICENSED
SPORTS
BETTING.
This
division
authorizes
and
29
licenses
sports
betting.
30
Code
section
99F.1,
concerning
definitions,
is
amended.
The
31
bill
defines
“sports
betting”
as
wagering
on
an
authorized
32
sporting
event
by
any
system
of
wagering
as
authorized
by
the
33
racing
and
gaming
commission
(commission).
“Sports
betting”
34
is
further
defined
to
exclude
wagering
on
the
performance
of
35
-25-
LSB
2452HZ
(3)
88
ec/rn
25/
34
H.F.
748
an
athlete
participating
in
a
collegiate
sporting
event
that
1
includes
a
collegiate
team
from
this
state
or
in
an
individual
2
olympic
event
in
which
any
athlete
is
under
eighteen
years
of
3
age,
horse
racing,
and
internet
fantasy
sports
contests.
An
4
“authorized
sporting
event”
is
defined
to
include
professional
5
and
collegiate
sporting
events
and
international
team
and
6
individual
sporting
events
governed
by
the
international
7
olympic
committee.
The
definition
of
“licensee”
is
amended
to
8
include
a
person
licensed
to
conduct
sports
betting.
The
bill
9
defines
“sports
betting
net
receipts”
as
gross
receipts
less
10
winnings
paid
to
wagerers
on
sports
betting.
“Sports
betting
11
wagering
area”
is
defined
as
an
area,
as
designated
by
the
12
commission,
in
which
sports
betting
is
conducted.
13
Code
sections
99D.7(23)
and
99F.4(22),
concerning
persons
14
voluntarily
excluded
from
wagering
or
gaming
areas,
are
amended
15
to
include
internet
fantasy
sports
contests,
advance
deposits
16
wagering,
advance
deposit
sports
betting
wagering,
and
the
17
sports
betting
wagering
area.
18
Code
section
99F.3,
concerning
authorized
wagering
under
19
Code
chapter
99F,
is
amended
to
authorize
sports
betting.
20
Code
section
99F.4,
concerning
racing
and
gaming
commission
21
powers,
is
amended
to
authorize
the
operation
of
sports
betting
22
in
a
sports
betting
wagering
area
on
an
excursion
gambling
23
boat
which
is
also
licensed
to
serve
alcoholic
beverages
and
24
grants
the
racing
and
gaming
commission
the
authority
to
adopt
25
standards
under
which
sports
betting
is
conducted
including
26
the
scope
and
type
of
wagers
allowed.
The
bill
provides
that
27
revenue
received
by
the
commission
from
license
fees
for
sports
28
betting
shall
be
deposited
in
the
general
fund
of
the
state
29
and
revenue
received
by
the
commission
from
regulatory
fees
30
shall
be
deposited
into
the
gaming
regulatory
revolving
fund
31
established
in
Code
section
99F.20.
32
Code
section
99F.6,
concerning
licensee
applicants,
33
is
amended
to
provide
that
net
receipts,
for
purposes
of
34
determining
purse
agreements
for
horse
racing,
include
sports
35
-26-
LSB
2452HZ
(3)
88
ec/rn
26/
34
H.F.
748
betting
net
receipts.
1
New
Code
section
99F.7A
provides
specific
requirements
2
relative
to
the
licensing,
operation,
and
fees
applicable
to
3
sports
betting.
4
The
bill
provides
that
the
commission
shall,
upon
payment
5
of
an
initial
license
fee
of
$15,000,
issue
a
license
to
6
conduct
sports
betting
to
a
licensee
authorized
to
conduct
7
gambling
games
at
a
pari-mutuel
racetrack
enclosure
or
a
8
licensee
authorized
to
operate
an
excursion
gambling
boat
or
9
gambling
structure.
The
bill
provides
that
the
annual
renewal
10
fee
for
a
license
shall
also
be
$15,000.
The
bill
provides
11
that
a
licensee
establish,
and
display
and
post,
sports
12
betting
wagering
rules
specifying
the
amounts
to
be
paid
on
13
winning
wagers,
the
effect
of
changes
in
the
scheduling
of
an
14
authorized
sporting
event,
and
the
source
of
information
used
15
to
determine
the
outcome
of
a
wager.
The
new
Code
section
also
16
provides
that
a
licensee
shall
include
on
the
internet
site
17
or
mobile
application
used
by
the
licensee
to
conduct
advance
18
deposit
sports
betting
wagering
the
statewide
telephone
number
19
authorized
by
the
Iowa
department
of
public
health
to
provide
20
problem
gambling
information
and
extensive
responsible
gaming
21
features.
The
bill
also
provides
that
a
licensee
issued
a
22
license
to
conduct
sports
betting
shall
employ
commercially
23
reasonable
steps
to
prohibit
coaches,
athletic
trainers,
24
officials,
players,
participants,
or
other
persons
employed
in
25
a
position
with
direct
involvement
with
such
individuals
from
26
sports
betting
under
Code
chapter
99F.
27
Code
section
99F.8,
concerning
licensee
bonding
28
requirements,
is
amended
to
make
such
requirements
applicable
29
to
sports
betting.
30
Code
section
99F.9,
concerning
wagering
on
gambling
games,
31
is
amended
to
allow
the
commission
to
authorize
gambling
game
32
licensees
under
Code
chapter
99F
to
conduct
advance
deposit
33
sports
betting
wagering.
The
bill
also
allows
a
licensee
34
under
Code
section
99F.7A
to
enter
into
an
agreement
with
an
35
-27-
LSB
2452HZ
(3)
88
ec/rn
27/
34
H.F.
748
advance
deposit
sports
betting
wagering
operator
licensed
1
by
the
commission
to
provide
advance
deposit
sports
betting
2
wagering
for
the
licensee
and
allows
the
commission
to
require
3
the
advance
deposit
sports
betting
wagering
operator
to
4
conduct
an
audit.
The
bill
would
allow
for
an
advance
deposit
5
sports
betting
wager
to
be
placed
in
person
at
a
licensed
6
facility
authorized
to
conduct
gambling
games
or
from
any
other
7
location
by
telephone
or
other
electronic
means.
The
bill
8
defines
“advance
deposit
sports
betting
wagering”
as
a
form
9
of
wagering
where
an
eligible
individual
creates
an
account
10
with
a
licensee,
deposits
money
into
that
account,
and
can
11
use
the
balance
within
the
account
for
sports
betting.
Prior
12
to
January
1,
2021,
an
account
must
be
established
in
person
13
with
a
licensee.
The
bill
defines
an
“eligible
individual”
14
for
purposes
of
advance
deposit
sports
betting
wagering
as
an
15
individual
21
years
of
age
or
older
who
is
located
within
this
16
state.
The
Code
section
is
also
amended
to
provide
that
a
17
person
under
the
age
of
21
shall
not
make
or
attempt
to
make
a
18
wager
by
advance
deposit
sports
wagering.
19
Code
section
99F.11,
concerning
the
wagering
tax,
is
20
amended.
The
bill
provides
that
sports
betting
net
receipts
21
received
each
fiscal
year
by
a
licensed
operator
from
sports
22
betting
shall
be
taxed
at
the
rate
of
six
and
three-quarters
23
percent.
The
taxes
imposed
shall
be
paid
by
the
licensed
24
operator
to
the
treasurer
of
state
as
determined
by
the
25
commission.
The
bill
provides
that
of
the
taxes
collected,
an
26
amount
equal
to
one-fourth
of
one
percent
of
sports
betting
net
27
receipts
is
appropriated
to
the
department
of
public
health
28
for
the
gambling
treatment
program
with
the
remainder
of
taxes
29
collected
to
be
credited
as
provided
in
Code
section
8.57,
30
subsection
5.
31
Code
section
99F.12,
concerning
certain
required
reports
32
and
records
of
licensees,
is
amended
to
provide
that
a
sports
33
betting
licensee
shall
promptly
report
to
the
commission
any
34
criminal
or
disciplinary
proceedings
commenced
against
the
35
-28-
LSB
2452HZ
(3)
88
ec/rn
28/
34
H.F.
748
licensee,
any
abnormal
sports
wagering
activity,
and
any
other
1
conduct
with
the
potential
to
corrupt
a
wagering
outcome
of
an
2
authorized
sporting
event.
The
bill
requires
the
commission
to
3
share
any
information
received
with
the
division
of
criminal
4
investigation,
any
other
law
enforcement
entity,
or
regulatory
5
agency
the
commission
deems
appropriate.
The
commission
may
6
also
share
information
with
a
sports
team
or
sports
governing
7
body
as
the
commission
deems
appropriate
if
it
will
not
8
interfere
with
an
ongoing
criminal
investigation.
9
Code
section
99F.15,
concerning
certain
prohibited
10
activities
and
penalties,
is
amended
to
provide
that
current
11
prohibitions
on
cheating
at
a
gambling
game,
claiming
anything
12
of
value
from
a
gambling
game
with
intent
to
defraud,
and
13
knowingly
enticing
a
person
to
go
where
a
gambling
game
is
14
conducted
in
violation
of
Code
chapter
99F
also
applies
to
15
sports
betting.
16
Code
section
99F.20,
concerning
the
gaming
regulatory
17
revolving
fund,
is
amended
to
provide
that
regulatory
fees
18
by
an
internet
fantasy
sports
contest
service
provider
and
19
by
a
licensee
authorized
to
conduct
sports
wagering
shall
be
20
deposited
in
the
fund.
21
This
division
of
the
bill
takes
effect
upon
enactment.
22
However,
the
bill
authorizes
the
racing
and
gaming
commission
23
to
adopt
emergency
rules
to
implement
the
bill
and
provides
24
that
the
racing
and
gaming
commission
shall
not
implement
25
this
division
of
the
bill
until
the
date
the
commission
has
26
adopted
rules
pursuant
to
Code
chapter
17A
providing
for
such
27
implementation
and
such
rules
have
become
effective.
28
INTERNET
FANTASY
SPORTS
CONTESTS.
This
division
of
the
bill
29
authorizes
internet
fantasy
sports
contests
and
provides
for
30
the
licensing,
regulation,
and
taxation
of
internet
fantasy
31
sports
contests.
32
Code
section
80.25,
concerning
gaming
investigation
and
33
enforcement
by
the
division
of
criminal
investigation
of
34
the
department
of
public
safety,
is
amended
to
provide
for
35
-29-
LSB
2452HZ
(3)
88
ec/rn
29/
34
H.F.
748
investigation
and
enforcement
concerning
the
new
Code
chapter.
1
New
Code
section
99E.1
provides
for
definitions.
A
“fantasy
2
sports
contest”
is
defined
as
any
fantasy
or
simulated
game
3
or
contest
in
which
all
prizes
and
awards
offered
to
winning
4
participants
are
established
and
made
known
in
advance
of
the
5
contest,
all
winning
outcomes
reflect
the
relative
knowledge
6
and
skill
of
the
participants
and
are
determined
predominantly
7
by
accumulated
statistical
results
of
the
performance
of
8
individuals,
and
no
winning
outcome
is
based
on
the
score,
or
9
performance
of
any
single
actual
team
or
combination
of
such
10
teams
or
solely
on
any
single
performance
of
an
individual
11
athlete
in
any
single
actual
sporting
or
other
event.
An
12
“internet
fantasy
sports
contest”
is
defined
as
a
method
of
13
entering
a
fantasy
sports
contest
by
establishing
an
account
14
with
an
internet
fantasy
sports
contest
service
provider.
An
15
“internet
fantasy
sports
contest
player”
is
defined
as
a
person
16
who
is
at
least
21
years
of
age
who
participates
in
an
internet
17
fantasy
sports
contest.
The
bill
also
defines
“internet
18
fantasy
sports
contest
adjusted
revenues”,
“internet
fantasy
19
sports
contest
service
provider”,
“licensee”,
and
“location
20
percentage”.
21
New
Code
section
99E.2
provides
that
the
system
of
entering
22
an
internet
fantasy
sports
contest
is
legal
when
conducted
by
a
23
licensed
internet
fantasy
sports
contest
service
provider
as
24
provided
in
the
new
Code
chapter.
25
New
Code
section
99E.3
establishes
the
powers
of
the
racing
26
and
gaming
commission
in
relation
to
internet
fantasy
sports
27
contests
and
internet
fantasy
sports
contest
service
providers.
28
Specifically,
the
Code
section
authorizes
the
commission
29
to
investigate
and
license
internet
fantasy
sports
contest
30
service
providers,
assess
fines
and
revoke
or
suspend
licenses,
31
impose
penalties
for
violations
of
the
Code
chapter,
and
take
32
any
other
action
to
enforce
the
requirements
of
the
new
Code
33
chapter.
34
New
Code
section
99E.4
establishes
the
requirements
for
an
35
-30-
LSB
2452HZ
(3)
88
ec/rn
30/
34
H.F.
748
applicant
to
be
granted
a
license
to
conduct
internet
fantasy
1
sports
contests.
The
Code
section
allows
the
commission
2
to
charge
the
applicant
a
fee
for
the
department
of
public
3
safety,
division
of
criminal
investigation,
to
defray
the
4
costs
associated
with
any
investigation.
The
new
Code
5
section
provides
that
a
license
shall
not
be
issued
if
there
6
is
evidence
that
the
applicant
has
failed
to
meet
certain
7
qualifying
requirements.
The
Code
section
provides
that
a
8
person
who
knowingly
makes
a
false
statement
on
the
application
9
is
guilty
of
an
aggravated
misdemeanor.
10
New
Code
section
99E.5
establishes
the
terms
and
conditions
11
of
licenses
issued
to
conduct
internet
fantasy
sports
contests.
12
The
Code
section
provides
that
a
license
may
be
issued
for
13
a
period
of
not
more
than
three
years
and
provides
for
an
14
initial
and
annual
license
fee
of
$5,000.
The
Code
section
15
also
provides
for
the
payment
of
a
regulatory
fee
to
be
set
16
by
the
racing
and
gaming
commission
based
on
the
costs
of
17
administering
and
enforcing
the
new
Code
chapter.
The
Code
18
section
further
provides
that
each
licensee
shall
receive
a
19
credit
for
the
amount
of
the
license
and
regulatory
fee
paid
20
against
taxes
to
be
paid
pursuant
to
the
new
Code
chapter.
The
21
Code
section
provides
that
a
licensed
internet
fantasy
sports
22
contest
service
provider
shall
use
commercially
reasonable
23
methods
to
prevent
any
employees
and
certain
family
members
24
from
participating
in
internet
fantasy
sports
contests
on
the
25
service
provider’s
digital
platform,
verify
that
internet
26
fantasy
sports
contest
players
located
in
this
state
are
21
27
or
older,
ensure
that
participants
in
a
game
or
contest
shall
28
not
be
allowed
to
enter
an
internet
fantasy
sports
contest
29
involving
that
game
or
contest,
permit
individuals
to
establish
30
an
account
with
an
internet
fantasy
sports
contest
service
31
provider
by
electronic
communication
and
to
restrict
themselves
32
from
entering
an
internet
fantasy
sports
contest,
conduct
an
33
annual
audit,
and
pay
the
tax
imposed
by
the
new
Code
chapter.
34
New
Code
section
99E.6
provides
for
a
tax
of
six
and
35
-31-
LSB
2452HZ
(3)
88
ec/rn
31/
34
H.F.
748
three-quarters
percent
on
internet
fantasy
sports
contest
1
adjusted
revenues.
The
bill
defines
“internet
fantasy
sports
2
contest
adjusted
revenues”
as
the
total
of
fees
and
charges
3
collected,
less
winnings,
in
an
internet
fantasy
sports
4
contest
multiplied
by
the
percentage
of
fees
and
charges
5
paid
by
participants
who
are
located
in
this
state
in
that
6
contest.
The
taxes
imposed
shall
be
paid
by
the
internet
7
fantasy
sports
contest
service
provider
to
the
treasurer
of
8
state
as
determined
by
the
commission.
The
bill
provides
9
that
of
the
taxes
collected,
an
amount
equal
to
one-fourth
10
of
one
percent
of
internet
fantasy
sports
contest
adjusted
11
revenues
is
appropriated
to
the
department
of
public
health
12
for
the
gambling
treatment
program
with
the
remainder
of
taxes
13
collected
to
be
credited
as
provided
in
Code
section
8.57,
14
subsection
5.
15
New
Code
section
99E.7
provides
that
a
person
under
the
16
age
of
21
shall
not
enter
an
internet
fantasy
sports
contest.
17
A
person
who
violates
this
Code
section
commits
a
scheduled
18
violation
under
Code
section
805.8C
and
is
subject
to
a
$500
19
fine.
Code
section
805.8C
is
amended
to
reflect
this
violation
20
and
applicable
fine.
21
New
Code
section
99E.8
requires
an
internet
fantasy
sports
22
contest
service
provider
to
keep
books
and
records
on
internet
23
fantasy
sports
contest
adjusted
revenues
and
to
provide
the
24
commission
reports
and
information
as
the
commission
may
25
require.
The
bill
provides
that
a
licensee
promptly
report
26
to
the
commission
any
criminal
or
disciplinary
proceedings
27
commenced
against
the
licensee,
any
abnormal
fantasy
sports
28
contest
activity,
and
any
other
conduct
with
the
potential
to
29
corrupt
an
outcome
of
an
internet
fantasy
sports
contest.
The
30
bill
requires
the
commission
to
share
any
information
received
31
with
the
division
of
criminal
investigation,
any
other
law
32
enforcement
entity,
or
regulatory
agency
the
commission
deems
33
appropriate.
The
commission
may
also
share
information
with
a
34
sports
team
or
sports
governing
body
as
the
commission
deems
35
-32-
LSB
2452HZ
(3)
88
ec/rn
32/
34
H.F.
748
appropriate
if
it
will
not
interfere
with
an
ongoing
criminal
1
investigation.
2
New
Code
section
99E.9
requires
a
licensee
to
conduct
an
3
audit
within
90
days
after
the
end
of
the
licensee’s
fiscal
4
year.
5
New
Code
section
99E.10
establishes
civil
penalties.
The
6
new
Code
section
provides
that
a
person
who
willfully
fails
to
7
comply
with
the
requirements
of
this
new
Code
chapter
shall
be
8
liable
for
a
civil
penalty
of
not
more
than
$1,000
for
each
9
violation,
not
to
exceed
$10,000
for
violations
arising
out
of
10
the
same
transaction
or
occurrence.
11
The
bill
also
makes
changes
to
Code
sections
99F.2,
99F.4B,
12
232C.4,
714B.10,
and
725.15
to
provide
that
provisions
in
those
13
Code
sections
that
list
some
or
all
Code
chapters
that
govern
14
lawful
gambling
also
list
the
new
Code
chapter
provided
in
this
15
division
of
the
bill.
16
The
bill
provides
for
the
issuance
of
a
transitional
license
17
by
the
racing
and
gaming
commission
to
a
person
to
conduct
18
internet
fantasy
sports
contests
in
this
state
if
the
person
19
has
been
granted
a
license
or
registration
by
two
or
more
other
20
states
to
conduct
internet
fantasy
sports
contests.
The
bill
21
provides
that
the
transitional
license
shall
be
valid
until
the
22
earlier
of
the
date
the
commission
grants
or
denies
a
license
23
to
the
person
or
12
months
from
the
date
the
commission
accepts
24
applications
for
issuance
of
a
license.
25
This
division
of
the
bill
takes
effect
upon
enactment.
26
However,
the
bill
authorizes
the
racing
and
gaming
commission
27
to
adopt
emergency
rules
to
implement
this
division
of
the
28
bill
and
provides
that
the
racing
and
gaming
commission
shall
29
not
implement
the
bill
until
the
date
the
commission
has
30
adopted
rules
pursuant
to
Code
chapter
17A
providing
for
such
31
implementation
and
such
rules
have
become
effective.
32
GAMBLING
REGULATION.
This
division
makes
several
changes
33
related
to
gambling
regulation.
Code
section
99B.45,
34
concerning
social
gambling
between
individuals,
is
amended
to
35
-33-
LSB
2452HZ
(3)
88
ec/rn
33/
34
H.F.
748
authorize
social
gambling
on
social
fantasy
sports
contests.
1
Code
section
99B.41
is
amended
to
define
“social
fantasy
sports
2
contest”
as
a
fantasy
sports
contest
in
which
prizes
and
awards
3
offered
to
winning
participants
do
not
exceed
$1,000
and
4
winning
outcomes
are
based
on
the
performance
of
individuals
in
5
events
occurring
over
more
than
a
24-hour
period.
Current
law
6
limits
wins
or
losses
on
social
gambling
to
$200.
7
Code
section
99D.7(5),
concerning
the
purse
structure
for
8
horse
racing,
is
amended
to
provide
that
of
the
percentage
9
of
purse
money
for
thoroughbred
racing
and
for
quarter
horse
10
racing
that
is
distributed
to
organizations
representing
owners
11
of
each
of
the
two
horse
breeds,
that
percentage
of
purse
12
moneys
may
also
be
used
for
benevolence,
horse
aftercare,
13
breeder
promotions
and
awards,
and
improvements
to
the
horse
14
racetrack
in
Polk
county.
15
Code
section
99D.11,
subsection
6,
concerning
criminal
16
penalties,
is
amended
to
strike
the
specific
criminal
penalty
17
relating
to
an
unlicensed
advance
deposit
wagering
operator
or
18
an
individual
taking
or
receiving
wagers
from
residents
of
this
19
state
that
are
not
authorized
by
the
Code
chapter.
20
-34-
LSB
2452HZ
(3)
88
ec/rn
34/
34