Bill Text: IA HSB101 | 2019-2020 | 88th 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 implementation and effective date provisions.
Spectrum: Committee Bill
Status: (N/A - Dead) 2019-01-31 - Subcommittee Meeting: 02/07/2019 11:00AM RM 103, Sup. Ct. Chamber. [HSB101 Detail]
Download: Iowa-2019-HSB101-Introduced.html
House
Study
Bill
101
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
STATE
GOVERNMENT
BILL
BY
CHAIRPERSON
KAUFMANN)
A
BILL
FOR
An
Act
relating
to
the
conduct
of
sports
betting
by
gambling
1
licensees,
making
penalties
applicable,
and
including
2
implementation
and
effective
date
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
1458YC
(3)
88
ec/rn
H.F.
_____
Section
1.
Section
99D.7,
subsection
23,
Code
2019,
is
1
amended
to
read
as
follows:
2
23.
To
establish
a
process
to
allow
a
person
to
be
3
voluntarily
excluded
from
the
wagering
area
of
a
racetrack
4
enclosure
and
from
the
gaming
floor
and
sports
betting
wagering
5
area
,
as
defined
in
section
99F.1
,
of
all
other
licensed
6
facilities
under
this
chapter
and
chapter
99F
as
provided
in
7
this
subsection
.
The
process
shall
provide
that
an
initial
8
request
by
a
person
to
be
voluntarily
excluded
shall
be
for
9
a
period
of
five
years
or
life
and
any
subsequent
request
10
following
any
five-year
period
shall
be
for
a
period
of
five
11
years
or
life.
The
process
established
shall
require
that
12
licensees
be
provided
electronic
access
to
names
and
social
13
security
numbers
of
persons
voluntarily
excluded
through
a
14
secured
interactive
internet
site
maintained
by
the
commission
15
and
information
regarding
persons
voluntarily
excluded
16
shall
be
disseminated
to
all
licensees
under
this
chapter
17
and
chapter
99F
.
The
names,
social
security
numbers,
and
18
information
regarding
persons
voluntarily
excluded
shall
be
19
kept
confidential
unless
otherwise
ordered
by
a
court
or
by
20
another
person
duly
authorized
to
release
such
information.
21
The
process
established
shall
also
require
a
person
requesting
22
to
be
voluntarily
excluded
be
provided
information
compiled
23
by
the
Iowa
department
of
public
health
on
gambling
treatment
24
options.
The
state
and
any
licensee
under
this
chapter
or
25
chapter
99F
shall
not
be
liable
to
any
person
for
any
claim
26
which
may
arise
from
this
process.
In
addition
to
any
other
27
penalty
provided
by
law,
any
money
or
thing
of
value
that
has
28
been
obtained
by,
or
is
owed
to,
a
voluntarily
excluded
person
29
as
a
result
of
wagers
made
by
the
person
after
the
person
has
30
been
voluntarily
excluded
shall
be
forfeited
by
the
person
and
31
shall
be
credited
to
the
general
fund
of
the
state.
32
Sec.
2.
Section
99F.1,
subsection
1,
Code
2019,
is
amended
33
to
read
as
follows:
34
1.
“Adjusted
gross
receipts”
means
the
gross
receipts
less
35
-1-
LSB
1458YC
(3)
88
ec/rn
1/
10
H.F.
_____
winnings
paid
to
wagerers
on
gambling
games
.
However,
“adjusted
1
gross
receipts”
does
not
include
promotional
play
receipts
2
received
after
the
date
in
any
fiscal
year
that
the
commission
3
determines
that
the
wagering
tax
imposed
pursuant
to
section
4
99F.11
on
all
licensees
in
that
fiscal
year
on
promotional
5
play
receipts
exceeds
twenty-five
million
eight
hundred
twenty
6
thousand
dollars.
7
Sec.
3.
Section
99F.1,
Code
2019,
is
amended
by
adding
the
8
following
new
subsections:
9
NEW
SUBSECTION
.
23.
“Sports
betting”
means
the
acceptance
10
of
wagers
on
collegiate
or
professional
sporting
events
by
any
11
system
of
wagering
as
authorized
by
the
commission.
“Sports
12
betting”
does
not
include
wagering
on
a
race
as
defined
in
13
section
99D.2.
14
NEW
SUBSECTION
.
24.
“Sports
betting
net
receipts”
means
15
the
gross
receipts
less
winnings
paid
to
wagerers
on
sports
16
betting.
17
NEW
SUBSECTION
.
25.
“Sports
betting
wagering
area”
means
18
that
portion
of
an
excursion
gambling
boat,
gambling
structure,
19
or
racetrack
enclosure
in
which
sports
betting
is
conducted
as
20
designated
by
the
commission.
21
Sec.
4.
Section
99F.3,
Code
2019,
is
amended
to
read
as
22
follows:
23
99F.3
Gambling
games
and
sports
betting
authorized.
24
The
system
of
wagering
on
a
gambling
game
and
sports
betting
25
as
provided
by
this
chapter
is
legal,
when
conducted
on
an
26
excursion
gambling
boat,
gambling
structure,
or
racetrack
27
enclosure
at
authorized
locations
by
a
licensee
as
provided
in
28
this
chapter
.
29
Sec.
5.
Section
99F.4,
subsections
3
and
22,
Code
2019,
are
30
amended
to
read
as
follows:
31
3.
To
adopt
standards
under
which
all
excursion
gambling
32
boat
operations
shall
be
held
and
standards
for
the
facilities
33
within
which
the
gambling
operations
are
to
be
held.
The
34
commission
may
authorize
the
operation
of
gambling
games
on
an
35
-2-
LSB
1458YC
(3)
88
ec/rn
2/
10
H.F.
_____
excursion
gambling
boat
and
sports
betting
in
a
sports
betting
1
wagering
area
which
is
also
licensed
to
sell
or
serve
alcoholic
2
beverages,
wine,
or
beer
as
defined
in
section
123.3
.
3
22.
To
establish
a
process
to
allow
a
person
to
be
4
voluntarily
excluded
from
the
gaming
floor
and
sports
betting
5
wagering
area
of
an
excursion
gambling
boat,
from
the
wagering
6
area,
as
defined
in
section
99D.2
,
and
from
the
gaming
7
floor
and
sports
betting
wagering
area
of
all
other
licensed
8
facilities
under
this
chapter
and
chapter
99D
as
provided
in
9
this
subsection
.
The
process
shall
provide
that
an
initial
10
request
by
a
person
to
be
voluntarily
excluded
shall
be
for
11
a
period
of
five
years
or
life
and
any
subsequent
request
12
following
any
five-year
period
shall
be
for
a
period
of
five
13
years
or
life.
The
process
established
shall
require
that
14
licensees
be
provided
electronic
access
to
names
and
social
15
security
numbers
of
persons
voluntarily
excluded
through
a
16
secured
interactive
internet
site
maintained
by
the
commission
17
and
information
regarding
persons
voluntarily
excluded
18
shall
be
disseminated
to
all
licensees
under
this
chapter
19
and
chapter
99D
.
The
names,
social
security
numbers,
and
20
information
regarding
persons
voluntarily
excluded
shall
be
21
kept
confidential
unless
otherwise
ordered
by
a
court
or
by
22
another
person
duly
authorized
to
release
such
information.
23
The
process
established
shall
also
require
a
person
requesting
24
to
be
voluntarily
excluded
be
provided
information
compiled
25
by
the
Iowa
department
of
public
health
on
gambling
treatment
26
options.
The
state
and
any
licensee
under
this
chapter
or
27
chapter
99D
shall
not
be
liable
to
any
person
for
any
claim
28
which
may
arise
from
this
process.
In
addition
to
any
other
29
penalty
provided
by
law,
any
money
or
thing
of
value
that
has
30
been
obtained
by,
or
is
owed
to,
a
voluntarily
excluded
person
31
as
a
result
of
wagers
made
by
the
person
after
the
person
has
32
been
voluntarily
excluded
shall
be
forfeited
by
the
person
and
33
shall
be
credited
to
the
general
fund
of
the
state.
34
Sec.
6.
Section
99F.4,
Code
2019,
is
amended
by
adding
the
35
-3-
LSB
1458YC
(3)
88
ec/rn
3/
10
H.F.
_____
following
new
subsection:
1
NEW
SUBSECTION
.
27.
To
adopt
standards
under
which
all
2
sports
betting
is
conducted,
to
identify
occupations
within
3
sports
betting
which
require
licensing,
and
to
adopt
standards
4
for
licensing
and
background
qualifications
for
occupations
5
including
establishing
fees
for
the
occupational
license.
6
All
revenue
received
by
the
commission
under
this
chapter
7
from
license
fees
and
regulatory
fees
shall
be
deposited
in
8
the
general
fund
of
the
state
and
shall
be
subject
to
the
9
requirements
of
section
8.60.
10
Sec.
7.
NEW
SECTION
.
99F.7A
Sports
betting
——
license
——
11
terms
and
conditions
——
fees.
12
1.
The
commission
shall,
upon
payment
of
a
license
fee
13
of
one
thousand
dollars
and
submission
of
an
application
to
14
the
commission,
issue
a
license
to
conduct
or
operate
sports
15
betting
only
to
a
licensee
authorized
to
conduct
or
operate
16
gambling
games
under
section
99F.4A
or
99F.7,
subject
to
the
17
requirements
of
this
chapter.
18
2.
A
licensee
issued
a
license
to
conduct
or
operate
sports
19
betting
under
this
section
shall
employ
commercially
reasonable
20
steps
to
prohibit
coaches,
athletic
trainers,
officials,
21
players,
or
other
individuals
who
participate
in
a
collegiate
22
or
professional
sporting
event
that
is
the
subject
of
sports
23
betting
from
sports
betting
under
this
chapter.
In
addition,
a
24
licensee
shall
employ
commercially
reasonable
steps
to
prohibit
25
persons
who
are
employed
in
a
position
with
direct
involvement
26
with
coaches,
players,
athletic
trainers,
officials,
players,
27
or
participants
in
a
collegiate
or
professional
sporting
event
28
that
is
the
subject
of
sports
betting
from
sports
betting
under
29
this
chapter.
30
Sec.
8.
Section
99F.8,
Code
2019,
is
amended
to
read
as
31
follows:
32
99F.8
Bond
of
licensee.
33
A
licensee
licensed
under
section
99F.7
shall
post
a
bond
34
to
the
state
of
Iowa
before
the
license
is
issued
in
a
sum
35
-4-
LSB
1458YC
(3)
88
ec/rn
4/
10
H.F.
_____
as
the
commission
shall
fix,
with
sureties
to
be
approved
by
1
the
commission.
The
bond
shall
be
used
to
guarantee
that
the
2
licensee
faithfully
makes
the
payments,
keeps
its
books
and
3
records
and
makes
reports,
and
conducts
its
gambling
games
and
4
sports
betting
in
conformity
with
this
chapter
and
the
rules
5
adopted
by
the
commission.
The
bond
shall
not
be
canceled
by
6
a
surety
on
less
than
thirty
days’
notice
in
writing
to
the
7
commission.
If
a
bond
is
canceled
and
the
licensee
fails
to
8
file
a
new
bond
with
the
commission
in
the
required
amount
on
9
or
before
the
effective
date
of
cancellation,
the
licensee’s
10
license
shall
be
revoked.
The
total
and
aggregate
liability
11
of
the
surety
on
the
bond
is
limited
to
the
amount
specified
in
12
the
bond.
13
Sec.
9.
Section
99F.9,
subsection
1,
Code
2019,
is
amended
14
to
read
as
follows:
15
1.
Except
as
permitted
in
this
section
,
the
licensee
shall
16
permit
no
form
of
wagering
on
gambling
games
or
sports
betting
.
17
Sec.
10.
Section
99F.9,
Code
2019,
is
amended
by
adding
the
18
following
new
subsection:
19
NEW
SUBSECTION
.
3A.
a.
For
the
purposes
of
this
section,
20
unless
the
context
otherwise
requires:
21
(1)
“Advance
deposit
sports
betting
wagering”
means
a
method
22
of
sports
betting
wagering
in
which
an
eligible
individual
may,
23
in
an
account
established
with
a
licensee
under
section
99F.7A,
24
deposit
moneys
into
the
account
and
use
the
account
balance
to
25
pay
for
sports
betting
wagering.
Prior
to
January
1,
2021,
an
26
account
must
be
established
by
an
eligible
individual
in
person
27
with
a
licensee.
28
(2)
“Eligible
individual”
means
an
individual
who
is
at
29
least
twenty-one
years
of
age
or
older
who
is
located
within
30
this
state.
31
b.
The
commission
may
authorize
a
licensee
under
section
32
99F.7A
to
conduct
advance
deposit
sports
betting
wagering.
An
33
advance
deposit
sports
betting
wager
may
be
placed
in
person
in
34
the
sports
betting
wagering
area,
or
from
any
other
location
35
-5-
LSB
1458YC
(3)
88
ec/rn
5/
10
H.F.
_____
via
a
telephone-type
device
or
any
other
electronic
means.
1
c.
An
unlicensed
person
taking
or
receiving
sports
betting
2
wagers
from
residents
of
this
state
is
guilty
of
a
class
“D”
3
felony.
4
Sec.
11.
Section
99F.9,
subsection
4,
Code
2019,
is
amended
5
to
read
as
follows:
6
4.
A
person
under
the
age
of
twenty-one
years
shall
not
make
7
or
attempt
to
make
a
wager
pursuant
to
subsection
3A
or
on
an
8
excursion
gambling
boat,
gambling
structure,
or
in
a
racetrack
9
enclosure
and
shall
not
be
allowed
on
the
gaming
floor
of
10
an
excursion
gambling
boat
or
gambling
structure
or
in
the
11
wagering
area,
as
defined
in
section
99D.2
,
or
on
the
gaming
12
floor
of
a
racetrack
enclosure.
However,
a
person
eighteen
13
years
of
age
or
older
may
be
employed
to
work
on
the
gaming
14
floor
of
an
excursion
gambling
boat
or
gambling
structure
or
15
in
the
wagering
area
or
on
the
gaming
floor
of
a
racetrack
16
enclosure.
A
person
who
violates
this
subsection
with
respect
17
to
making
or
attempting
to
make
a
wager
commits
a
scheduled
18
violation
under
section
805.8C,
subsection
5
,
paragraph
“a”
.
19
Sec.
12.
Section
99F.11,
subsection
3,
unnumbered
paragraph
20
1,
Code
2019,
is
amended
to
read
as
follows:
21
The
taxes
imposed
by
this
section
on
adjusted
gross
receipts
22
from
gambling
games
authorized
under
this
chapter
shall
be
paid
23
by
the
licensee
to
the
treasurer
of
state
within
ten
days
after
24
the
close
of
the
day
when
the
wagers
were
made
and
shall
be
25
distributed
as
follows:
26
Sec.
13.
Section
99F.11,
Code
2019,
is
amended
by
adding
the
27
following
new
subsection:
28
NEW
SUBSECTION
.
4.
A
tax
is
imposed
on
the
sports
betting
29
net
receipts
received
each
fiscal
year
by
a
licensed
operator
30
from
sports
betting
authorized
under
this
chapter
at
the
rate
31
of
six
and
three-quarters
percent.
The
taxes
imposed
by
this
32
subsection
for
sports
betting
authorized
under
this
chapter
33
shall
be
paid
by
the
licensed
operator
to
the
treasurer
of
34
state
as
determined
by
the
commission
and
shall
be
credited
as
35
-6-
LSB
1458YC
(3)
88
ec/rn
6/
10
H.F.
_____
provided
in
section
8.57,
subsection
5.
1
Sec.
14.
Section
99F.15,
subsection
1,
paragraph
c,
Code
2
2019,
is
amended
to
read
as
follows:
3
c.
Acting,
or
employing
a
person
to
act,
as
a
shill
or
4
decoy
to
encourage
participation
in
a
gambling
game
or
sports
5
betting
.
6
Sec.
15.
Section
99F.15,
subsection
4,
paragraphs
d,
h,
and
7
i,
Code
2019,
are
amended
to
read
as
follows:
8
d.
Cheats
at
a
gambling
game,
including
but
not
limited
to
9
committing
any
act
which
alters
the
outcome
of
the
game
,
or
10
cheats
at
sports
betting
.
11
h.
Claims,
collects,
or
takes,
or
attempts
to
claim,
12
collect,
or
take,
money
or
anything
of
value
in
or
from
the
13
gambling
games
or
sports
betting
,
with
intent
to
defraud,
14
without
having
made
a
wager
contingent
on
winning
a
gambling
15
game
or
sports
betting
wager
,
or
claims,
collects,
or
takes
an
16
amount
of
money
or
thing
of
value
of
greater
value
than
the
17
amount
won.
18
i.
Knowingly
entices
or
induces
a
person
to
go
to
any
place
19
where
a
gambling
game
or
sports
betting
is
being
conducted
or
20
operated
in
violation
of
the
provisions
of
this
chapter
with
21
the
intent
that
the
other
person
plays
or
participates
in
that
22
gambling
game
or
sports
betting
.
23
Sec.
16.
IMPLEMENTATION.
The
racing
and
gaming
commission
24
shall
not
implement
this
Act
until
the
commission
has
adopted
25
rules
pursuant
to
chapter
17A
providing
for
such
implementation
26
and
such
rules
have
become
effective.
27
Sec.
17.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
28
immediate
importance,
takes
effect
upon
enactment.
29
EXPLANATION
30
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
31
the
explanation’s
substance
by
the
members
of
the
general
assembly.
32
This
bill
authorizes
gambling
licensees
to
conduct
sports
33
betting.
34
Code
section
99F.1,
concerning
definitions,
is
amended.
35
-7-
LSB
1458YC
(3)
88
ec/rn
7/
10
H.F.
_____
The
bill
defines
“sports
betting”
as
acceptance
of
wagers
1
on
collegiate
or
professional
sporting
events,
except
races
2
as
defined
in
Code
chapter
99D,
by
any
system
of
wagering
3
as
authorized
by
the
racing
and
gaming
commission.
“Sports
4
betting
net
receipts”
is
defined
as
gross
receipts
less
5
winnings
paid
to
wagerers
on
sports
betting.
“Sports
betting
6
wagering
area”
is
defined
as
that
portion
of
a
gambling
7
licensee
facility
in
which
sports
wagering
is
conducted
as
8
designated
by
the
commission.
9
Code
sections
99D.7(23)
and
99F.4(22),
concerning
persons
10
voluntarily
excluded
from
wagering
or
gaming
areas,
are
amended
11
to
include
the
sports
betting
wagering
area.
12
Code
section
99F.3,
concerning
authorized
wagering
under
13
Code
chapter
99F,
is
amended
to
authorize
wagering
on
sports
14
betting.
15
Code
section
99F.4,
concerning
racing
and
gaming
commission
16
powers,
is
amended
to
authorize
the
operation
of
sports
betting
17
in
a
sports
betting
wagering
area
on
an
excursion
gambling
boat
18
which
is
also
licensed
to
serve
alcoholic
beverages,
grants
the
19
racing
and
gaming
commission
the
authority
to
adopt
standards
20
under
which
sports
betting
is
conducted,
and
provides
that
21
all
revenue
received
by
the
commission
from
license
fees
and
22
regulatory
fees
for
sports
betting
shall
be
deposited
in
the
23
general
fund
of
the
state.
24
New
Code
section
99F.7A
provides
specific
requirements
25
relative
to
the
licensing,
operation,
and
fees
applicable
to
26
sports
betting.
The
bill
provides
that
the
commission
shall,
27
upon
payment
of
a
license
fee
of
$1,000,
issue
a
license
to
28
conduct
or
operate
sports
betting
to
a
licensee
authorized
to
29
conduct
or
operate
gambling
games
under
Code
section
99F.4A
30
or
99F.7.
The
new
Code
section
also
provides
that
a
licensee
31
issued
a
license
to
conduct
or
operate
sports
betting
shall
32
employ
commercially
reasonable
steps
to
prohibit
coaches,
33
athletic
trainers,
officials,
players,
participants,
or
other
34
persons
employed
in
a
position
with
direct
involvement
with
35
-8-
LSB
1458YC
(3)
88
ec/rn
8/
10
H.F.
_____
such
individuals
from
sports
betting
under
this
Code
chapter.
1
Code
section
99F.8,
concerning
licensee
bonding
2
requirements,
is
amended
to
make
such
requirements
applicable
3
to
sports
betting.
4
Code
section
99F.9,
concerning
wagering
on
gambling
games,
5
is
amended
to
allow
the
commission
to
authorize
gambling
6
game
licensees
under
Code
chapter
99F
to
conduct
advance
7
deposit
sports
betting
wagering.
The
bill
would
allow
for
an
8
advance
deposit
wager
to
be
placed
in
person
at
a
licensed
9
facility
authorized
to
conduct
gambling
games
or
from
any
other
10
location
by
telephone
or
other
electronic
means.
The
bill
11
defines
“advance
deposit
sports
betting
wagering”
as
a
form
of
12
wagering
where
an
eligible
individual
creates
an
account
with
13
a
licensee,
deposits
money
into
that
account,
and
can
use
the
14
balance
within
the
account
for
sports
betting
wagering.
Prior
15
to
January
1,
2021,
an
account
must
be
established
in
person
16
with
a
licensee.
The
bill
defines
an
“eligible
individual”
17
for
purposes
of
advance
deposit
sports
betting
wagering
as
an
18
individual
21
years
of
age
or
older
who
is
located
within
this
19
state.
The
bill
provides
that
an
unlicensed
person
taking
20
sports
betting
wagers
from
Iowa
residents
is
guilty
of
a
class
21
“D”
felony,
punishable
by
confinement
for
no
more
than
five
22
years
and
a
fine
of
at
least
$750
but
not
more
than
$7,500.
The
23
Code
section
is
also
amended
to
provide
that
a
person
under
the
24
age
of
21
shall
not
make
or
attempt
to
make
a
wager
by
advance
25
deposit
sports
betting
wagering.
26
Code
section
99F.11,
concerning
the
wagering
tax,
is
27
amended.
The
bill
provides
that
the
wagering
tax
on
28
sports
betting
net
receipts
received
each
fiscal
year
by
a
29
licensed
operator
from
sports
betting
at
the
rate
of
six
and
30
three-quarters
percent.
The
taxes
imposed
shall
be
paid
by
31
the
licensed
operator
to
the
treasurer
of
state
as
determined
32
by
the
commission
and
shall
be
credited
as
provided
in
Code
33
section
8.57,
subsection
5.
34
Code
section
99F.15,
concerning
certain
prohibited
35
-9-
LSB
1458YC
(3)
88
ec/rn
9/
10
H.F.
_____
activities
and
penalties,
is
amended
to
provide
that
current
1
prohibitions
on
cheating
at
a
gambling
game,
claiming
anything
2
of
value
from
a
gambling
game
with
intent
to
defraud,
and
3
knowingly
enticing
a
person
to
go
where
a
gambling
game
is
4
conducted
in
violation
of
Code
chapter
99F
also
applies
to
5
sports
betting.
6
The
bill
takes
effect
upon
enactment.
However,
the
bill
7
provides
that
the
racing
and
gaming
commission
shall
not
8
implement
the
bill
until
the
commission
has
adopted
rules
9
pursuant
to
Code
chapter
17A
providing
for
such
implementation
10
and
such
rules
have
become
effective.
11
-10-
LSB
1458YC
(3)
88
ec/rn
10/
10