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
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_____
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
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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
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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
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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
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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
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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
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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
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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
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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.
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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
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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:
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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.
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“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.
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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
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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
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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
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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.
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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
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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
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_____
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
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_____
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
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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.
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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.
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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,
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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,
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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.
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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,
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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
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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,
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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.
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