Bill Text: IA HSB102 | 2019-2020 | 88th General Assembly | Introduced


Bill Title: A bill for an act relating to wagering, by providing for fantasy sports contests and sports wagering, providing for taxes and fees, making penalties applicable, and including effective date provisions.

Spectrum: Partisan Bill (? 1-0)

Status: (N/A) 2019-01-31 - Subcommittee Meeting: 02/07/2019 11:00AM RM 103, Sup. Ct. Chamber. [HSB102 Detail]

Download: Iowa-2019-HSB102-Introduced.html
House Study Bill 102 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON KAUFMANN) A BILL FOR An Act relating to wagering, by providing for fantasy sports 1 contests and sports wagering, providing for taxes and fees, 2 making penalties applicable, and including effective date 3 provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1459YC (8) 88 ec/rn
H.F. _____ DIVISION I 1 SPORTS WAGERING 2 Section 1. NEW SECTION . 99C.1 Definitions. 3 As used in this chapter, unless the context otherwise 4 requires: 5 1. “Applicant” means a person applying for a license as an 6 interactive sports wagering platform. 7 2. “Commission” means the state racing and gaming commission 8 created under section 99D.5. 9 3. “Division” means the division of criminal investigation 10 of the department of public safety as provided in section 11 80.17. 12 4. “Gaming licensee” means any person licensed under section 13 99F.4A or 99F.7 to conduct gambling games under chapter 99F. 14 5. “Interactive sports wagering platform” means a person 15 licensed by the commission to conduct sports wagering pursuant 16 to this chapter via a telephone-type device or any other 17 electronic means to include an interactive internet site. 18 6. “Official league data” means statistics, results, 19 outcomes, and other data relating to a sporting event obtained 20 pursuant to an agreement with the relevant sports governing 21 body, or an entity expressly authorized by the sports governing 22 body to provide such information to sports wagering operators, 23 which authorizes the use of such data for determining the 24 outcome of tier two sports wagers. 25 7. “Registered sports governing body” means a sports 26 governing body that is headquartered in the United States and 27 has registered with the commission pursuant to this chapter. 28 8. “Sporting event” includes portions of a sporting event or 29 sporting events, and any individual performance statistics of 30 athletes in a sporting event or combination of sporting events. 31 9. “Sports governing body” means the organization that 32 prescribes final rules and enforces codes of conduct with 33 respect to a sporting event and participants therein. 34 10. “Sports wagering” means accepting wagers on a sporting 35 -1- LSB 1459YC (8) 88 ec/rn 1/ 30
H.F. _____ event, by any system or method of wagering, including but not 1 limited to in-person, over the internet through websites, 2 and on mobile devices. “Sports wagering” includes but is not 3 limited to single-game bets, teaser bets, parlays, over-under, 4 moneyline, pools, exchange wagering, in-game wagering, in-play 5 bets, proposition bets, and straight bets. “Sports wagering” 6 does not include entering a fantasy sports contest as defined 7 in section 99E.1. 8 11. “Sports wagering operator” means an interactive sports 9 wagering platform who has entered into an agreement with a 10 gaming licensee to conduct sports wagering on behalf of the 11 gaming licensee or a gaming licensee that conducts sports 12 wagering as provided by this chapter. 13 12. “Tier one sports wager” means a sports wager that is 14 determined solely by the final score or final outcome of the 15 sporting event and is placed before the sporting event has 16 begun. 17 13. “Tier two sports wager” means a sports wager that is not 18 a tier one sports wager. 19 14. “Wager” or “bet” means the staking or risking by a 20 person of something of value upon an agreement or understanding 21 that the person or another person will receive something of 22 value in the event of a certain outcome. “Wager” or “bet” does 23 not include any activity governed by the securities laws of 24 the United States or this state, any contract of indemnity or 25 guarantee, any contract for insurance, or participation in 26 any game or contest in which the participants do not stake 27 or risk anything of value other than personal efforts of the 28 participants in playing the game or contest or obtaining access 29 to the internet, or points or credits that the sponsor of the 30 game or contest provides to participants free of charge and 31 that can be used or redeemed only for participation in games or 32 contests offered by the sponsor. 33 Sec. 2. NEW SECTION . 99C.2 Sports wagering authorized. 34 The system of sports wagering as provided by this chapter is 35 -2- LSB 1459YC (8) 88 ec/rn 2/ 30
H.F. _____ legal, when conducted by a sports wagering operator as provided 1 in this chapter. 2 Sec. 3. NEW SECTION . 99C.3 Commission —— powers. 3 1. The commission shall have full jurisdiction over and 4 shall supervise sports wagering and sports wagering operators 5 as governed by this chapter. 6 2. The commission shall have the following powers and shall 7 adopt rules pursuant to chapter 17A to administer and implement 8 this chapter: 9 a. To review and investigate applicants and determine the 10 eligibility of applicants for a license as an interactive 11 sports wagering platform, pursuant to rules adopted by the 12 commission. 13 b. To license interactive sports wagering platforms and to 14 regulate sports wagering operators subject to the requirements 15 of this chapter. 16 c. To provide for the prevention of practices detrimental 17 to the public and to provide for the best interests of sports 18 wagering. 19 d. To investigate alleged violations of this chapter 20 or the commission rules, orders, or final decisions and 21 to take appropriate disciplinary action against a sports 22 wagering operator, or institute appropriate legal action 23 for enforcement, or both. Information gathered during an 24 investigation is confidential during the pendency of the 25 investigation. 26 e. To assess fines and revoke or suspend licenses and to 27 impose penalties for violations of this chapter. 28 f. To establish procedures for allowing a sports governing 29 body, upon notification of the commission, to restrict, 30 limit, or exclude wagers on sporting events, or portions of 31 sporting events, regulated by the sports governing body from 32 sports wagering as provided by this chapter and to, without 33 limitation, restrict the sources of data and associated video 34 upon which a sports wagering operator may rely in offering 35 -3- LSB 1459YC (8) 88 ec/rn 3/ 30
H.F. _____ and paying wagers and the bet types that may be offered on a 1 sporting event regulated by the sports governing body. The 2 procedures will provide that the commission shall only deny 3 a request made by a sports governing body pursuant to this 4 paragraph if the commission deems such request arbitrary 5 and capricious and shall provide a sports governing body 6 with an opportunity for a hearing under chapter 17A if a 7 request is denied. The procedures shall also provide that the 8 administrator of the commission may temporarily grant a request 9 by a sports governing body pending a final decision on whether 10 to grant the request. 11 g. To provide for a sports governing body to register with 12 the commission if the sports governing body is headquartered 13 in the United States upon completion of such registration form 14 as the commission may require. 15 h. To provide that advertisements for sports wagering by 16 a sports wagering operator does not target minors or other 17 persons who are ineligible to place wagers, problem gamblers, 18 or other vulnerable persons, which may include limitations 19 on the form, content, quantity, timing, and location of 20 advertisements; discloses the identity of the sports wagering 21 operator; provides information about or links to resources 22 relating to gambling addiction; and are not false, misleading, 23 or deceptive to a reasonable consumer. 24 i. To take any other action as may be reasonable or 25 appropriate to enforce this chapter and the commission rules. 26 Sec. 4. NEW SECTION . 99C.4 Authority to conduct sports 27 wagering —— licenses —— fees. 28 1. a. An applicant for a license as an interactive sports 29 wagering platform shall complete and sign an application on 30 the form prescribed and published by the commission. The 31 application shall include such information regarding the 32 applicant that the commission deems necessary for purposes of 33 issuing a license pursuant to this chapter. 34 b. If the commission is satisfied that the requirements 35 -4- LSB 1459YC (8) 88 ec/rn 4/ 30
H.F. _____ of this chapter and its rules adopted under this chapter 1 applicable to licensees have been or will be complied with, 2 the commission may issue a license to an applicant as an 3 interactive sports wagering platform to conduct sports wagering 4 in this state. A licensed interactive sports wagering platform 5 may enter into agreements to offer sports wagering on behalf of 6 one or more gaming licensees without limitation. However, a 7 gaming licensee authorized to conduct sports wagering pursuant 8 to this section may enter into agreements with no more than two 9 licensed interactive sports wagering platforms to offer sports 10 wagering on behalf of the gaming licensee. The interactive 11 sports wagering platform shall pay an initial license fee of 12 ten thousand dollars and shall pay an annual renewal fee of 13 five thousand dollars. Moneys collected by the commission from 14 the license fees paid under this section shall be considered 15 repayment receipts as defined in section 8.2. 16 2. The commission shall grant a gaming licensee, upon 17 written request and agreement to conduct sports wagering in 18 accordance with the requirements of this chapter, the authority 19 to conduct sports wagering as a sports wagering operator under 20 this chapter. 21 Sec. 5. NEW SECTION . 99C.5 Sports wagering operators —— 22 terms and conditions. 23 1. A sports wagering operator shall use commercially 24 reasonable methods to comply with all of the following 25 requirements: 26 a. Prevent employees of the sports wagering operator and 27 relatives living in the same household of such employees from 28 sports wagering. 29 b. Verify that a person placing a wager on a sporting event 30 with a sports wagering operator is twenty-one years of age or 31 older. 32 c. Ensure that coaches, officials, players, contestants, 33 or other individuals who participate in a sporting event 34 sanctioned by a sports governing body that is the subject of 35 -5- LSB 1459YC (8) 88 ec/rn 5/ 30
H.F. _____ sports wagering are restricted from placing a wager on any 1 sporting event sanctioned by that sports governing body. 2 d. Restrict, limit, or exclude wagering on a sporting event 3 regulated by a sports governing body, to include restricting 4 sources of data and associated video upon which a sports 5 wagering operator may rely in offering and paying wagers, 6 pursuant to procedures established by the commission pursuant 7 to section 99C.3. 8 e. Allow individuals to restrict themselves from placing 9 a wager on a sporting event with a sports wagering operator 10 conducted by the sports wagering operator upon request and take 11 reasonable steps to prevent those individuals from placing 12 a wager on a sporting event with a sports wagering operator 13 conducted by the sports wagering operator. 14 f. Allow individuals to establish an account with an 15 interactive sports wagering platform by utilizing electronic 16 communication. 17 g. Conduct background checks on newly hired employees, and 18 annual background checks on all existing employees utilized 19 to conduct sports wagering. Background checks shall search 20 for criminal history, and any charges or convictions involving 21 corruption or manipulation of sporting events and association 22 with organized crime. 23 h. Prohibit any individual with access to nonpublic 24 confidential information held by the sports wagering operator 25 from placing wagers with the sports wagering operator, prohibit 26 persons from placing wagers as agents or proxies for others; 27 and maintain the security of wagering data, customer data, and 28 other confidential information from unauthorized access and 29 dissemination; provided, however, that nothing in this chapter 30 shall preclude the use of internet or cloud-based hosting of 31 such data and information or disclosure as required by court 32 order, other law, or this chapter. 33 i. Report to the commission and a sports governing body any 34 information relating to criminal or disciplinary proceedings 35 -6- LSB 1459YC (8) 88 ec/rn 6/ 30
H.F. _____ commenced against the sports wagering operator in connection 1 with its operations, abnormal betting activity or patterns 2 that may indicate a concern with the integrity of a sporting 3 event, any potential breach of the relevant sports governing 4 body’s internal rules and codes of conduct pertaining to sports 5 wagering, any other conduct that corrupts a betting outcome 6 of a sporting event or events for purposes of financial gain 7 to include match fixing, and suspicious or illegal wagering 8 activities, including use of funds derived from illegal 9 activity, wagers to conceal or launder funds derived from 10 illegal activity, using agents to place wagers, and using false 11 identification. 12 j. Maintain the confidentiality of information provided by 13 a sports governing body to the sports wagering operator, unless 14 disclosure is required by the commission, by law, or court 15 order. 16 k. Except as provided in section 99C.6, sports wagering 17 operators may use any data source to determine the results of 18 wagers on a sporting event, provided the data is not obtained 19 directly or indirectly from live sporting event attendees who 20 collect the data in violation of the terms of admittance to 21 a sporting event or through automated computer programs that 22 compile data from the internet in violation of the terms of 23 service of the relevant website or other internet platform. 24 l. Pay the sports wagering royalty fee as provided in 25 section 99C.6. 26 2. A sports wagering operator shall be authorized to 27 enter into an agreement with a sports governing body to share 28 revenues derived from sports wagering on sporting events 29 conducted by a sports governing body. 30 Sec. 6. NEW SECTION . 99C.6 Sports wagering requirements —— 31 royalty fee. 32 1. A sports governing body may notify the commission, in 33 a form and manner as the commission may require, that the 34 sports governing body desires to supply official league data 35 -7- LSB 1459YC (8) 88 ec/rn 7/ 30
H.F. _____ to sports wagering operators for determining the results of 1 tier two sports wagers. On or after thirty days following such 2 notification by a sports governing body to the commission, 3 sports wagering operators shall use only official league data 4 to determine the results of tier two sports wagers, unless the 5 sports wagering operator can demonstrate to the commission that 6 the sports governing body or its designee cannot provide a feed 7 of official league data to the sports wagering operator on 8 commercially reasonable terms. 9 2. a. Within thirty days of the end of each calendar 10 quarter, a sports wagering operator shall remit to the 11 commission a royalty fee of one-quarter of one percent of the 12 amounts wagered on sporting events conducted by registered 13 sports governing bodies. 14 b. The royalty fee shall be remitted on a form as the 15 commission may require, on which the sports wagering operator 16 shall identify the percentage of wagering during the reporting 17 period attributable to each registered sports governing body’s 18 sporting events. 19 c. No later than the thirtieth of April of each year, a 20 registered sports governing body may submit a request for 21 disbursement of funds remitted by sports wagering operators 22 in the previous calendar year. The commission shall disburse 23 the funds to the registered sports governing body in pro rata 24 proportion of the total amount wagered on its sporting events. 25 A registered sports governing body is not required to obtain 26 a license from the commission in order to lawfully accept the 27 funds provided for in this subsection. 28 d. The commission shall annually publish a report stating 29 the amount received from sports wagering operators in royalty 30 fees and the amount paid to registered sports governing bodies. 31 e. Any unclaimed royalty fees shall be distributed to the 32 sports wagering operators that timely remitted the royalty fees 33 required under this subsection to the commission. Such royalty 34 fees shall be distributed to the eligible sports wagering 35 -8- LSB 1459YC (8) 88 ec/rn 8/ 30
H.F. _____ operators on a pro rata basis. 1 f. The commission shall cooperate with a registered sports 2 governing body and sports wagering operators to ensure the 3 timely, efficient, and accurate sharing of information and 4 the remittance of the royalty fee to the registered sports 5 governing body or its designee. 6 Sec. 7. NEW SECTION . 99C.7 Records —— confidentiality. 7 1. Sports wagering operators shall maintain records of 8 all bets and wagers placed, including personally identifiable 9 information of the bettor, amount and type of bet, time the bet 10 was placed, location of the bet, including internet protocol 11 address if applicable, the outcome of the bet, records of 12 abnormal betting activity, and video camera recordings in 13 the case of in-person wagers for at least three years after 14 the sporting event occurs and make such data available for 15 inspection upon request of the commission or as required by 16 court order. In addition, if a sports governing body has 17 notified the commission that real-time information sharing 18 for wagers placed on its sporting events is necessary and 19 desirable, the commission shall require sports wagering 20 operators to share in real time the information required to be 21 retained pursuant to this subsection, other than video camera 22 recordings, with the sports governing body or its designee with 23 respect to wagers on its sporting events. 24 2. Records provided to the commission pursuant to this 25 chapter shall be governed by the provisions of chapter 26 22, provided that, in addition to records that may be kept 27 confidential pursuant to section 22.7, the following records 28 provided by a sports wagering operator to the commission shall 29 be kept confidential, except as otherwise provided in this 30 section, unless otherwise ordered by a court, by the lawful 31 custodian of the records, or by another person duly authorized 32 to release such information: 33 a. Patron and customer records. 34 b. Surveillance records. 35 -9- LSB 1459YC (8) 88 ec/rn 9/ 30
H.F. _____ c. Security reports and network audits. 1 d. Internal control and compliance records. 2 e. Employee records. 3 f. Marketing expenses. 4 g. Any information specifically requested for inspection by 5 the commission or a representative of the commission. 6 3. Information provided by a sports governing body to a 7 sports wagering operator shall be kept confidential unless 8 otherwise ordered by a court or disclosure is otherwise 9 required by law or the commission. 10 Sec. 8. NEW SECTION . 99C.8 Investigations. 11 1. If the commission has reasonable cause to believe that 12 a sports wagering operator has committed a violation of this 13 chapter, the commission may request the division of criminal 14 investigation of the department of public safety to investigate 15 to determine compliance with the requirements of this chapter. 16 The criminal investigation division and the commission shall 17 cooperate to the maximum extent possible on an investigation. 18 The commission shall assess the sports wagering operator the 19 reasonable costs of the investigation. The costs may be 20 retained by the division and shall be considered repayment 21 receipts as defined in section 8.2. 22 2. The commission and sports wagering operators shall 23 cooperate with investigations conducted by sports governing 24 bodies or the division, including but not limited to providing 25 or facilitating the provision of account-level betting 26 information and audio or video files relating to persons 27 placing wagers. 28 Sec. 9. NEW SECTION . 99C.9 Penalties —— liability. 29 1. A person who willfully fails to comply with the 30 requirements of this chapter and the rules adopted pursuant 31 to chapter 17A under this chapter shall be liable for a 32 civil penalty of not more than one thousand dollars for each 33 violation, not to exceed ten thousand dollars for violations 34 arising out of the same transaction or occurrence, which shall 35 -10- LSB 1459YC (8) 88 ec/rn 10/ 30
H.F. _____ accrue to the state and may be recovered in a civil action 1 brought by the commission. 2 2. A person is guilty of a class “C” felony for any of the 3 following: 4 a. Placing, or causing to be placed, a bet or wager on the 5 basis of material nonpublic information relating to that bet 6 or wager. For purposes of this paragraph, a bet or wager is 7 “on the basis of material nonpublic information relating to 8 that bet or wager” if the person placing the bet or wager, or 9 causing it to be placed, was aware of the material nonpublic 10 information when such person placed the bet or wager or caused 11 it to be placed. 12 b. Knowingly engaging in, facilitating, or concealing 13 conduct that intends to improperly influence a betting 14 outcome of a sporting event for purposes of financial gain, in 15 connection with betting or wagering on a sporting event. 16 3. A person who violates subsection 2, paragraph “b” , shall 17 be liable to the relevant sports governing body, which sports 18 governing body may sue either at law or in equity in any court 19 of competent jurisdiction. 20 Sec. 10. Section 99G.3, subsection 7, Code 2019, is amended 21 to read as follows: 22 7. “Lottery” , “lotteries” , “lottery game” , “lottery games” , 23 or “lottery products” means any game of chance approved by 24 the board and operated pursuant to this chapter and games 25 using mechanical or electronic devices, provided that the 26 authority shall not authorize a monitor vending machine or 27 a player-activated gaming machine that utilizes an internal 28 randomizer to determine winning and nonwinning plays and that 29 upon random internal selection of a winning play dispenses 30 coins, currency, or a ticket, credit, or token to the player 31 that is redeemable for cash or a prize, and excluding gambling 32 or gaming conducted pursuant to chapter 99B , 99C, 99D , or 99F . 33 Sec. 11. Section 123.49, subsection 2, paragraph a, Code 34 2019, is amended to read as follows: 35 -11- LSB 1459YC (8) 88 ec/rn 11/ 30
H.F. _____ a. Knowingly permit any gambling, except in accordance 1 with chapter 99B , 99C, 99D , 99F , or 99G , or knowingly permit 2 solicitation for immoral purposes, or immoral or disorderly 3 conduct on the premises covered by the license or permit. 4 Sec. 12. Section 232C.4, subsection 3, Code 2019, is amended 5 to read as follows: 6 3. An emancipated minor shall remain subject to voting 7 restrictions under chapter 48A , gambling restrictions under 8 chapter 99B , 99C, 99D , 99F , 99G , or 725 , alcohol restrictions 9 under chapter 123 , compulsory attendance requirements under 10 chapter 299 , and cigarette tobacco restrictions under chapter 11 453A . 12 Sec. 13. Section 537A.4, subsection 2, Code 2019, is amended 13 to read as follows: 14 2. This section does not apply to a contract for the 15 operation of or for the sale or rental of equipment for games 16 of skill or games of chance, if both the contract and the games 17 are in compliance with chapter 99B . This section does not 18 apply to wagering authorized by chapter 99C. This section does 19 not apply to wagering under the pari-mutuel method of wagering 20 authorized by chapter 99D . This section does not apply to the 21 sale, purchase, or redemption of a ticket or share in the state 22 lottery in compliance with chapter 99G . This section does not 23 apply to wagering authorized by chapter 99F . This section does 24 not apply to the sale, purchase, or redemption of any ticket 25 or similar gambling device legally purchased in Indian lands 26 within this state. 27 Sec. 14. Section 714B.10, subsection 1, Code 2019, is 28 amended to read as follows: 29 1. Advertising by sponsors registered pursuant to chapter 30 557B , licensed pursuant to chapter 99B , or regulated pursuant 31 to chapter 99C, 99D , 99F , or 99G . 32 Sec. 15. Section 725.13, Code 2019, is amended to read as 33 follows: 34 725.13 Definition of bookmaking. 35 -12- LSB 1459YC (8) 88 ec/rn 12/ 30
H.F. _____ “Bookmaking” means advancing gambling activity by accepting 1 bets upon the outcome of future contingent events as a business 2 other than as permitted in chapters 99B , 99C, 99D , and 99F . 3 These events include, but are not limited to, the results of 4 a trial or contest of skill, speed, power, or endurance of 5 a person or beast or between persons, beasts, fowl, motor 6 vehicles, or mechanical apparatus or upon the result of any 7 chance, casualty, unknown, or contingent event. 8 Sec. 16. Section 725.15, Code 2019, is amended to read as 9 follows: 10 725.15 Exceptions for legal gambling. 11 Sections 725.5 through 725.10 and 725.12 do not apply to 12 a game, activity, ticket, or device when lawfully possessed, 13 used, conducted, or participated in pursuant to chapter 99B , 14 99C, 99F , or 99G . 15 Sec. 17. TRANSITIONAL LICENSE. Notwithstanding any 16 provisions of chapter 99C as enacted by this Act to the 17 contrary, a person granted a license or registration by two 18 or more states to conduct sports wagering as an interactive 19 sports wagering platform may apply for and shall be granted a 20 transitional license by the racing and gaming commission as 21 an interactive sports wagering platform in this state subject 22 to the requirements of chapter 99C, as enacted by this Act. 23 The transitional license shall be valid until the earlier of 24 the date the racing and gaming commission grants or denies a 25 license under section 99C.4 to the person as an interactive 26 sports wagering platform, or twelve months from the date the 27 racing and gaming commission accepts applications for issuance 28 of a license as an interactive sports wagering platform under 29 section 99C.4. 30 Sec. 18. EFFECTIVE DATE. This division of this Act, being 31 deemed of immediate importance, takes effect upon enactment. 32 DIVISION II 33 FANTASY SPORTS CONTESTS 34 Sec. 19. NEW SECTION . 99E.1 Definitions. 35 -13- LSB 1459YC (8) 88 ec/rn 13/ 30
H.F. _____ As used in this chapter, unless the context otherwise 1 requires: 2 1. “Applicant” means an internet fantasy sports contest 3 service provider applying for a license to conduct internet 4 fantasy sports contests under this chapter. 5 2. “Commission” means the state racing and gaming commission 6 created under section 99D.5. 7 3. “Fantasy sports contest” includes any fantasy or 8 simulated game or contest in which the fantasy sports contest 9 operator is not a participant in the game or contest, the value 10 of all prizes and awards offered to winning participants are 11 established and made known to the participants in advance 12 of the contest, all winning outcomes reflect the relative 13 knowledge and skill of the participants and shall be determined 14 by accumulated statistical results of the performance of 15 individuals, including athletes in the case of sporting events, 16 and no winning outcome is based on the score, point spread, or 17 any performance or performances of any single actual team or 18 solely on any single performance of an individual athlete or 19 player in any single actual event. 20 4. “Internet fantasy sports contest” means a method of 21 entering a fantasy sports contest by which a person may 22 establish an account with an internet fantasy sports contest 23 service provider, deposit money into the account, and use 24 the account balance for entering a fantasy sports contest by 25 utilizing electronic communication. 26 5. “Internet fantasy sports contest adjusted revenues” means, 27 for each internet fantasy sports contest, the amount equal to 28 the total charges and fees collected from all participants 29 entering the internet fantasy sports contest less winnings paid 30 to participants in the contest, multiplied by the location 31 percentage. 32 6. “Internet fantasy sports contest player” means a person 33 who is at least twenty-one years of age and participates in an 34 internet fantasy sports contest operated by an internet fantasy 35 -14- LSB 1459YC (8) 88 ec/rn 14/ 30
H.F. _____ sports contest service provider. 1 7. “Internet fantasy sports contest service provider” means 2 a person, including a licensee under chapter 99D or 99F, who 3 conducts an internet fantasy sports contest as authorized by 4 this chapter. 5 8. “Location percentage” means, for each internet fantasy 6 sports contest, the percentage, rounded to the nearest tenth of 7 a percent, equal to the total charges and fees collected from 8 all internet fantasy sports contest players located in this 9 state divided by the total charges and fees collected from all 10 participants in the internet fantasy sports contest. 11 Sec. 20. NEW SECTION . 99E.2 Internet fantasy sports 12 contests authorized. 13 The system of entering an internet fantasy sports contest as 14 provided by this chapter is legal when conducted by a licensed 15 internet fantasy sports contest service provider as provided in 16 this chapter. 17 Sec. 21. NEW SECTION . 99E.3 Commission —— powers. 18 1. The commission shall have full jurisdiction over and 19 shall supervise internet fantasy sports contests and internet 20 fantasy sports contest service providers as governed by this 21 chapter. 22 2. The commission shall have the following powers and shall 23 adopt rules pursuant to chapter 17A to administer and implement 24 this chapter: 25 a. To review and investigate applicants and determine the 26 eligibility of applicants for a license to conduct internet 27 fantasy sports contests, pursuant to rules adopted by the 28 commission. 29 b. To license and regulate internet fantasy sports contest 30 service providers subject to the requirements of this chapter. 31 c. To provide for the prevention of practices detrimental to 32 the public and to provide for the best interests of internet 33 fantasy sports contests. 34 d. To investigate alleged violations of this chapter 35 -15- LSB 1459YC (8) 88 ec/rn 15/ 30
H.F. _____ or the commission rules, orders, or final decisions and to 1 take appropriate disciplinary action against a licensee, or 2 institute appropriate legal action for enforcement, or both. 3 Information gathered during an investigation is confidential 4 during the pendency of the investigation. 5 e. To assess fines and revoke or suspend licenses and to 6 impose penalties for violations of this chapter. 7 f. To take any other action as may be reasonable or 8 appropriate to enforce this chapter and the commission rules. 9 Sec. 22. NEW SECTION . 99E.4 Requirements of applicant —— 10 fee. 11 1. An applicant for a license to conduct internet fantasy 12 sports contests shall complete and sign an application on 13 the form prescribed and published by the commission. The 14 application shall include such information of the applicant 15 that the commission deems necessary for purposes of issuing a 16 license pursuant to this chapter. 17 2. An applicant shall submit fingerprints and information 18 that the commission deems necessary to the commission in the 19 manner prescribed on the application forms. The fingerprints 20 may be submitted to the federal bureau of investigation by 21 the department of public safety through the state criminal 22 history repository for the purpose of a national criminal 23 history check. The results of a criminal history record check 24 conducted pursuant to this subsection shall be considered a 25 confidential record under chapter 22. 26 3. If the commission is not satisfied that it can determine 27 if an applicant meets the requirements necessary for issuing 28 a license pursuant to this chapter, the commission may 29 request the department of public safety, division of criminal 30 investigation, to investigate and obtain the information 31 necessary for the commission to make a determination on whether 32 to issue the applicant a license. 33 4. The commission shall charge the applicant a reasonable 34 fee set by the department of public safety, division of 35 -16- LSB 1459YC (8) 88 ec/rn 16/ 30
H.F. _____ criminal investigation, to defray those costs associated 1 with the fingerprint and national criminal history check 2 requirements of subsection 2 concerning the applicant. In 3 addition, if the commission requests that an additional 4 investigation be conducted by the division of criminal 5 investigation as provided in subsection 3, the commission shall 6 charge the applicant the reasonable costs of this additional 7 investigation. These fees and costs are in addition to any 8 other license fees and costs charged by the commission. The 9 fees and costs may be retained by the department of public 10 safety, division of criminal investigation, and shall be 11 considered repayment receipts as defined in section 8.2. 12 5. The commission shall not grant a license to an applicant 13 if there is substantial evidence that any of the following 14 apply: 15 a. A license issued to the applicant to conduct internet 16 fantasy sports contests in another jurisdiction has been 17 revoked by an entity licensing persons to conduct such contests 18 in that jurisdiction. 19 b. The applicant has not demonstrated financial 20 responsibility sufficient to adequately meet the requirements 21 of the enterprise proposed. 22 c. The applicant does not adequately disclose the true 23 owners of the enterprise proposed. 24 d. The applicant has knowingly made a false statement of a 25 material fact to the commission. 26 e. The applicant has failed to meet a monetary obligation in 27 connection with conducting an internet fantasy sports contest. 28 f. The applicant is not of good repute and moral character 29 or the applicant has pled guilty to, or has been convicted of, 30 a felony. 31 g. Any member of the board of directors of the applicant is 32 not twenty-one years of age or older. 33 6. A person who knowingly makes a false statement on the 34 application is guilty of an aggravated misdemeanor. 35 -17- LSB 1459YC (8) 88 ec/rn 17/ 30
H.F. _____ 7. For the purposes of this section, “applicant” includes 1 each member of the board of directors of an internet fantasy 2 sports contest service provider. 3 Sec. 23. NEW SECTION . 99E.5 Licenses —— fees —— terms and 4 conditions —— revocation. 5 1. If the commission is satisfied that the requirements 6 of this chapter and its rules adopted under this chapter 7 applicable to licensees have been or will be complied with, the 8 commission shall issue a license for a period of not more than 9 three years to an applicant to conduct internet fantasy sports 10 contests in this state. 11 2. A licensed internet fantasy sports contest service 12 provider shall use commercially reasonable methods to comply 13 with all of the following requirements: 14 a. Prevent employees of the internet fantasy sports contest 15 service provider and relatives living in the same household of 16 such employees from competing in any internet fantasy sports 17 contest on the service provider’s digital platform in which the 18 service provider offers a cash prize to the public. 19 b. Verify that an internet fantasy sports contest player 20 located in this state is twenty-one years of age or older. 21 c. Ensure that coaches, officials, players, contestants, 22 or other individuals who participate in a game or contest 23 that is the subject of an internet fantasy sports contest are 24 restricted from entering an internet fantasy sports contest in 25 which the outcome is determined, in whole or in part, by the 26 accumulated statistical results of a team of individuals in the 27 game or contest in which they participate. 28 d. Allow individuals to restrict themselves from entering 29 an internet fantasy sports contest conducted by the internet 30 fantasy sports contest service provider upon request and take 31 reasonable steps to prevent those individuals from entering 32 any internet fantasy sports contests conducted by the internet 33 fantasy sports contest service provider. 34 e. Allow individuals to establish an account with an 35 -18- LSB 1459YC (8) 88 ec/rn 18/ 30
H.F. _____ internet fantasy sports contest service provider by utilizing 1 electronic communication. 2 f. Disclose the number of entries a single internet fantasy 3 sports contest player may submit to each internet fantasy 4 sports contest and take reasonable steps to prevent players 5 from submitting more than the allowable number of entries for 6 that internet fantasy sports contest. 7 g. Segregate internet fantasy sports contest player funds 8 from operational funds or maintain a reserve in the form of 9 cash, cash equivalents, an irrevocable letter of credit, 10 payment processor reserves and receivables, a bond, or a 11 combination thereof in the amount of the deposits in internet 12 fantasy sports contest player accounts for the benefit and 13 protection of internet fantasy sports contest player funds held 14 in internet fantasy sports contest accounts by the internet 15 fantasy sports contest service provider. 16 h. Annually contract with a third party to perform an 17 independent examination, consistent with the attestation 18 standards established by the American institute of certified 19 public accountants, to ensure compliance with all of the 20 requirements in this chapter and submit the results of the 21 independent audit to the commission. The audit shall be 22 submitted to the commission by July 1 of the year following the 23 year subject to the audit. 24 i. Pay the tax as provided in section 99E.6. 25 3. The annual license fee to conduct internet fantasy sports 26 contests shall be five hundred dollars. Moneys collected by 27 the commission from the annual license fee paid under this 28 subsection shall be considered repayment receipts as defined 29 in section 8.2. 30 4. a. A licensed internet fantasy sports contest service 31 provider shall pay a regulatory fee to the commission. The 32 regulatory fee shall be established by the commission based on 33 the costs of administering and enforcing this chapter. 34 b. A licensed internet fantasy sports contest service 35 -19- LSB 1459YC (8) 88 ec/rn 19/ 30
H.F. _____ provider shall receive a credit for the amount of the 1 regulatory fee paid by the provider against the taxes to be 2 paid pursuant to section 99E.6. 3 c. Moneys collected by the commission from the regulatory 4 fees paid under this subsection shall be considered repayment 5 receipts as defined in section 8.2. 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. 24. NEW SECTION . 99E.6 Internet fantasy sports contest 10 tax —— rate —— allocations. 11 1. A tax of seven and one-half percent is imposed on 12 internet fantasy sports contest adjusted revenues. The tax 13 imposed by this section shall be paid by the internet fantasy 14 sports contest service provider to the commission as provided 15 by the commission. 16 2. Of the revenues collected pursuant to this section, an 17 amount equal to one-half of one percent of internet fantasy 18 sports contest adjusted revenues is transferred to a special 19 revenue account in the general fund of the state to be used, 20 subject to an appropriation by the general assembly, by the 21 department of public health for purposes of the gambling 22 treatment program established pursuant to section 135.150. The 23 remaining amount of the revenues collected pursuant to this 24 section shall be deposited in the rebuild Iowa infrastructure 25 fund created in section 8.57. 26 Sec. 25. NEW SECTION . 99E.7 Internet fantasy sports 27 contests —— age restrictions. 28 A person under the age of twenty-one years shall not enter an 29 internet fantasy sports contest. A person who violates this 30 section with respect to entering an internet fantasy sports 31 contest commits a scheduled violation under section 805.8C, 32 subsection 12. 33 Sec. 26. NEW SECTION . 99E.8 Division of criminal 34 investigation. 35 -20- LSB 1459YC (8) 88 ec/rn 20/ 30
H.F. _____ If the commission has reasonable cause to believe that 1 a licensee has committed a violation of this chapter, the 2 commission may request the division of criminal investigation 3 of the department of public safety to investigate to determine 4 licensee compliance with the requirements of this chapter. 5 The criminal investigation division and the commission shall 6 cooperate to the maximum extent possible on an investigation. 7 The commission shall assess the licensee the reasonable costs 8 of the investigation conducted by the division of criminal 9 investigation pursuant to a request by the commission under 10 this section. The costs may be retained by the department of 11 public safety, division of criminal investigation, and shall be 12 considered repayment receipts as defined in section 8.2. 13 Sec. 27. NEW SECTION . 99E.9 Civil penalty. 14 A person who willfully fails to comply with the requirements 15 of this chapter and the rules adopted pursuant to chapter 17A 16 under this chapter shall be liable for a civil penalty of 17 not more than one thousand dollars for each violation, not 18 to exceed ten thousand dollars for violations arising out of 19 the same transaction or occurrence, which shall accrue to the 20 state and may be recovered in a civil action brought by the 21 commission. 22 Sec. 28. Section 232C.4, subsection 3, Code 2019, is amended 23 to read as follows: 24 3. An emancipated minor shall remain subject to voting 25 restrictions under chapter 48A , gambling restrictions under 26 chapter 99B , 99D , 99F , 99G , or 725 , internet fantasy sports 27 contest restrictions under chapter 99E, alcohol restrictions 28 under chapter 123 , compulsory attendance requirements under 29 chapter 299 , and cigarette tobacco restrictions under chapter 30 453A . 31 Sec. 29. Section 714B.10, subsection 1, Code 2019, is 32 amended to read as follows: 33 1. Advertising by sponsors registered pursuant to chapter 34 557B , licensed pursuant to chapter 99B , or regulated pursuant 35 -21- LSB 1459YC (8) 88 ec/rn 21/ 30
H.F. _____ to chapter 99D , 99E, 99F , or 99G . 1 Sec. 30. Section 725.15, Code 2019, is amended to read as 2 follows: 3 725.15 Exceptions for legal gambling. 4 Sections 725.5 through 725.10 and 725.12 do not apply to 5 a game, activity, ticket, or device when lawfully possessed, 6 used, conducted, or participated in pursuant to chapter 99B , 7 99E, 99F , or 99G . 8 Sec. 31. Section 805.8C, Code 2019, is amended by adding the 9 following new subsection: 10 NEW SUBSECTION . 12. Internet fantasy sports contest 11 violations. For violations of legal age for entering an 12 internet fantasy sports contest under section 99E.7, the 13 scheduled fine is five hundred dollars. Failure to pay the 14 fine by a person under the age of eighteen shall not result in 15 the person being detained in a secure facility. 16 Sec. 32. TRANSITIONAL LICENSE. Notwithstanding any 17 provisions of chapter 99E as enacted by this Act to the 18 contrary, a person granted a license or registration by two or 19 more states to conduct internet fantasy sports contests may 20 apply for and shall be granted a transitional license by the 21 racing and gaming commission to conduct internet fantasy sports 22 contests in this state subject to the requirements of chapter 23 99E, as enacted by this Act. The transitional license shall 24 be valid until the earlier of the date the racing and gaming 25 commission grants or denies a license under section 99E.5 to 26 the person to conduct internet fantasy sports contests, or 27 twelve months from the date the racing and gaming commission 28 accepts applications for issuance of a license to conduct 29 internet fantasy sports contests under section 99E.5. 30 Sec. 33. EFFECTIVE DATE. This division of this Act, being 31 deemed of immediate importance, takes effect upon enactment. 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanation’s substance by the members of the general assembly. 35 -22- LSB 1459YC (8) 88 ec/rn 22/ 30
H.F. _____ This bill authorizes wagering on sporting events and fantasy 1 sports contests. 2 SPORTS WAGERING. Division I of the bill authorizes wagering 3 on sporting events and certain sporting contests and provides 4 for the licensing and regulation of sports wagering. 5 New Code section 99C.1 provides for definitions. “Sporting 6 event” is defined to include portions of a sporting event and 7 individual performance statistics of athletes in a sporting 8 event or combination of sporting events. “Interactive sports 9 wagering platform” is defined to mean a person licensed to 10 conduct sports wagering via any electronic means to include 11 an internet site. “Official league data” is defined to mean 12 any data related to a sporting event obtained and authorized 13 for use through the relevant sports governing body of that 14 sporting event. “Sports governing body” is defined to mean 15 the organization that prescribes final rules and codes of 16 conduct with respect to a sporting event and “registered sports 17 governing body” is defined to mean a sports governing body that 18 is headquartered in the United States and has registered with 19 the racing and gaming commission. “Sports wagering operator” 20 is defined to mean an interactive sports wagering platform that 21 has entered into an agreement with a gaming licensee to conduct 22 sports wagering and a gaming licensee that conducts sports 23 wagering pursuant to the requirements of the new Code chapter. 24 “Gaming licensee” is defined as a person licensed to conduct 25 gambling games under Code chapter 99F. “Sports wagering” is 26 defined to exclude entering a fantasy sports contest as defined 27 in new Code section 99E.1. “Tier one sports wager” means a 28 sports wager that is solely determined by the final score or 29 outcome of a sporting event that is placed before the sporting 30 event begins and “tier two sports wager” means a sports wager 31 that is not a tier one sports wager. 32 New Code section 99C.2 provides that the system of sports 33 wagering is legal when conducted by a sports wagering operator 34 as provided in the new Code chapter. 35 -23- LSB 1459YC (8) 88 ec/rn 23/ 30
H.F. _____ New Code section 99C.3 establishes the powers of the 1 racing and gaming commission to license and regulate sports 2 wagering. The Code section authorizes the commission to 3 investigate applicants for a license as an interactive 4 sports wagering platform, assess fines and revoke or suspend 5 licenses, impose penalties for violations of the new Code 6 chapter, regulate advertisements for sports wagering and sports 7 wagering operators, and to take any other action to enforce 8 the requirements of the new Code chapter. The Code section 9 also authorizes the commission to establish procedures for 10 sports governing bodies to register with the commission and 11 to restrict, limit, or exclude wagers on certain sporting 12 events and to restrict sources of data that may be utilized for 13 purposes of sports wagering. 14 New Code section 99C.4 establishes requirements for an 15 applicant receiving a license as an interactive sports wagering 16 platform and for authorizing a gaming licensee to conduct 17 sports wagering. The Code section sets the initial fee for a 18 license as an interactive sports wagering platform at $10,000 19 with an annual renewal fee of $5,000. 20 New Code section 99C.5 establishes terms and conditions for 21 sports wagering operators. The Code section provides that a 22 sports wagering operator shall use commercially reasonable 23 methods to prevent any employees and certain family members 24 from participating in sports wagering, verify that a person 25 placing a wager on a sporting event is age 21 or older, ensure 26 that participants in a sporting event sanctioned by a sports 27 governing body shall not be allowed to place a wager on any 28 sporting event sanctioned by that sports governing body, 29 permit individuals to establish an account with an interactive 30 sports wagering platform by utilizing electronic communication 31 and to restrict themselves from wagering on a sporting event 32 with a sports wagering operator, conduct background checks on 33 employees involved in sports wagering, prevent individuals 34 with nonpublic confidential information from placing wagers, 35 -24- LSB 1459YC (8) 88 ec/rn 24/ 30
H.F. _____ report criminal and disciplinary proceedings and abnormal 1 betting activity to the racing and gaming commission and the 2 relevant sports governing body, maintain the confidentiality 3 of information provided by a sports governing body to the 4 sports wagering operator, and pay the royalty fee imposed by 5 the new Code chapter. In addition, the Code section authorizes 6 a sports wagering operator to share revenue with a sports 7 governing body. 8 New Code section 99C.6 establishes sports wagering 9 requirements and a royalty fee. The Code section provides that 10 30 days after notification by a sports governing body, a sports 11 wagering operator shall use only official league data for tier 12 two sports wagers unless the sports governing body is unable to 13 provide the data on commercially reasonable terms. The Code 14 section also requires sports wagering operators to remit to the 15 racing and gaming commission a royalty fee of one-quarter of 16 one percent of amounts wagered on sporting events conducted by 17 registered sports governing bodies. The Code section provides 18 the mechanism for distributing royalty fee funds remitted to 19 the commission to registered sports governing bodies. 20 New Code section 99C.7 concerns records and confidentiality. 21 The Code section requires sports wagering operators to maintain 22 records of all bets and wagers and to provide information on 23 bets and wagers on sporting events sanctioned by a sports 24 governing body to the sports governing body upon notice to 25 the racing and gaming commission. The Code section provides 26 that certain records provided by a sports wagering operator to 27 the racing and gaming commission shall be kept confidential 28 by the commission, except as otherwise provided by the Code 29 section, unless otherwise ordered by a court, by the lawful 30 custodian of the records, or by another person duly authorized 31 to release such information. The bill lists the records to be 32 kept confidential as promotional play receipts records, patron 33 and customer records, surveillance records, security reports 34 and network audits, internal control records, employee records, 35 -25- LSB 1459YC (8) 88 ec/rn 25/ 30
H.F. _____ marketing expenses, and any information specifically requested 1 for inspection by the commission. 2 New Code section 99C.8 authorizes the division of criminal 3 investigation of the department of public safety to investigate 4 compliance by sports wagering operators with the requirements 5 of the new Code chapter. 6 New Code section 99C.9 establishes civil and criminal 7 penalties for certain violations. The Code section provides 8 that a person who willfully fails to comply with the 9 requirements of this new Code chapter shall be liable for a 10 civil penalty of not more than $1,000 for each violation, 11 not to exceed $10,000 for violations arising out of the same 12 transaction or occurrence. The bill also establishes that a 13 person is guilty of a class “C” felony for placing a bet or 14 wager on the basis of material nonpublic information relating 15 to the bet or wager or knowingly engaging in or concealing 16 conduct intended to improperly influence a betting outcome. 17 A class “C” felony is punishable by confinement for no more 18 than 10 years and a fine of at least $1,000 but not more than 19 $10,000. 20 The bill also makes changes to Code sections 99G.3, 123.49, 21 232C.4, 537A.4, 714B.10, 725.13, and 725.15 to provide that 22 provisions in those Code sections that list some or all Code 23 chapters that govern lawful gambling also lists the new Code 24 chapter provided in the bill. 25 The bill provides for the issuance of a transitional license 26 by the racing and gaming commission to a person to conduct 27 sports wagering as an interactive sports wagering platform 28 in this state if the person has been granted a license or 29 registration by two or more other states to conduct sports 30 wagering. The bill provides that the transitional license 31 shall be valid until the earlier of the date the commission 32 grants or denies a license to the person or 12 months from 33 the date the commission accepts applications for issuance of 34 a license. 35 -26- LSB 1459YC (8) 88 ec/rn 26/ 30
H.F. _____ The bill provides that this division takes effect upon 1 enactment. 2 FANTASY SPORTS CONTESTS. Division II of the bill authorizes 3 internet fantasy sports contests and provides for the 4 licensing, regulation, and taxation of internet fantasy sports 5 contests. 6 New Code section 99E.1 provides for definitions. A “fantasy 7 sports contest” is defined as any fantasy or simulated game 8 or contest in which all prizes and awards offered to winning 9 participants are established and made known in advance of the 10 contest, all winning outcomes reflect the relative knowledge 11 and skill of the participants and are determined predominantly 12 by accumulated statistical results of the performance of 13 individuals, and no winning outcome is based on the score, or 14 performance of any single actual team or combination of such 15 teams or solely on any single performance of an individual 16 athlete in any single actual sporting or other event. An 17 “internet fantasy sports contest” is defined as a method of 18 entering a fantasy sports contest by establishing an account 19 with an internet fantasy sports contest service provider. An 20 “internet fantasy sports contest player” is defined as a person 21 who is at least 21 years of age who participates in an internet 22 fantasy sports contest. The bill also defines “internet 23 fantasy sports contest adjusted revenues”, “internet fantasy 24 sports contest service provider”, and “location percentage”. 25 New Code section 99E.2 provides that the system of entering 26 an internet fantasy sports contest is legal when conducted by a 27 licensed internet fantasy sports contest service provider as 28 provided in the new Code chapter. 29 New Code section 99E.3 establishes the powers of the racing 30 and gaming commission in relation to internet fantasy sports 31 contests and internet fantasy sports contest service providers. 32 Specifically, the Code section authorizes the commission 33 to investigate and license internet fantasy sports contest 34 service providers, assess fines and revoke or suspend licenses, 35 -27- LSB 1459YC (8) 88 ec/rn 27/ 30
H.F. _____ impose penalties for violations of the Code chapter, and take 1 any other action to enforce the requirements of the new Code 2 chapter. 3 New Code section 99E.4 establishes the requirements for an 4 applicant to be granted a license to conduct internet fantasy 5 sports contests. The Code section allows the commission 6 to charge the applicant a fee for the department of public 7 safety, division of criminal investigation, to defray the 8 costs associated with any investigation. The new Code 9 section provides that a license shall not be issued if there 10 is evidence that the applicant has failed to meet certain 11 qualifying requirements. The Code section provides that a 12 person who knowingly makes a false statement on the application 13 is guilty of an aggravated misdemeanor. 14 New Code section 99E.5 establishes the terms and conditions 15 of licenses issued to conduct internet fantasy sports contests. 16 The Code section provides that a license may be issued for a 17 period of not more than three years and provides that the 18 annual license fee shall be $500. The Code section also 19 provides for the payment of a regulatory fee to be set 20 by the racing and gaming commission based on the costs of 21 administering and enforcing the new Code chapter. The Code 22 section further provides that each licensee shall receive 23 a credit for the amount of the regulatory fee paid against 24 taxes to be paid pursuant to the new Code chapter. The Code 25 section provides that a licensed internet fantasy sports 26 contest service provider shall use commercially reasonable 27 methods to prevent any employees and certain family members 28 from participating in internet fantasy sports contests on the 29 service provider’s digital platform, verify that internet 30 fantasy sports contest players located in this state are 21 31 or older, ensure that participants in a game or contest shall 32 not be allowed to enter an internet fantasy sports contest 33 involving that game or contest, permit individuals to establish 34 an account with an internet fantasy sports contest service 35 -28- LSB 1459YC (8) 88 ec/rn 28/ 30
H.F. _____ provider by electronic communication and to restrict themselves 1 from entering an internet fantasy sports contest, perform an 2 independent audit, and pay the tax imposed by the new Code 3 chapter. 4 New Code section 99E.6 provides for a tax of 7.5 percent 5 to be imposed on internet fantasy sports contest adjusted 6 revenues. The bill defines, in new Code section 99E.1, 7 “internet fantasy sports contest adjusted revenues” as the 8 total of fees and charges collected, less winnings, in an 9 internet fantasy sports contest multiplied by the percentage 10 of fees and charges paid by participants who are located in 11 this state in that contest. The bill provides that of the 12 revenues collected, an amount equal to .5 percent of internet 13 fantasy sports contest adjusted revenues is transferred to a 14 special revenue account in the general fund to be used, subject 15 to an appropriation, by the department of public health for 16 gambling treatment with the remainder of revenues collected to 17 be deposited in the rebuild Iowa infrastructure fund. 18 New Code section 99E.7 provides that a person under the 19 age of 21 shall not enter an internet fantasy sports contest. 20 A person who violates this Code section commits a scheduled 21 violation under Code section 805.8C and is subject to a $500 22 fine. Code section 805.8C is amended to reflect this violation 23 and applicable fine. 24 New Code section 99E.8 authorizes the division of criminal 25 investigation of the department of public safety to investigate 26 licensee compliance with the requirements of the new Code 27 chapter. 28 New Code section 99E.9 establishes civil penalties. The 29 new Code section provides that a person who willfully fails to 30 comply with the requirements of this new Code chapter shall be 31 liable for a civil penalty of not more than $1,000 for each 32 violation, not to exceed $10,000 for violations arising out of 33 the same transaction or occurrence. 34 The bill also makes changes to Code sections 232C.4, 35 -29- LSB 1459YC (8) 88 ec/rn 29/ 30
H.F. _____ 714B.10, and 725.15 to provide that provisions in those Code 1 sections that list some or all Code chapters that govern lawful 2 gambling also lists the new Code chapter provided in this 3 division of the bill. 4 This division of the bill takes effect upon enactment. 5 -30- LSB 1459YC (8) 88 ec/rn 30/ 30
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