Bill Text: IA HSB124 | 2019-2020 | 88th General Assembly | Introduced

---

Bill Title: A bill for an act relating to the conduct of sports betting, providing for taxes, and making penalties applicable.

Spectrum: Committee Bill

Status: (N/A - Dead) 2019-02-05 - Subcommittee Meeting: 02/07/2019 11:00AM RM 103, Sup. Ct. Chamber. [HSB124 Detail]

Download: Iowa-2019-HSB124-Introduced.html

---

House Study Bill 124 - Introduced
HOUSE FILE _____
BY (PROPOSED COMMITTEE ON
STATE GOVERNMENT BILL BY
CHAIRPERSON KAUFMANN)
A BILL FOR
An Act relating to the conduct of sports betting, providing for
taxes, and making penalties applicable.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
TLSB 2136YC (3) 88
ec/rn

H.F. _____
Section 1. Section 99D.7, subsection 23, Code 2019, is
amended to read as follows:
23. To establish a process to allow a person to be
voluntarily excluded from the wagering area of a racetrack
enclosure and from the gaming floor and sports betting wagering
area , as defined in section 99F.1 , of all other licensed
facilities under this chapter and chapter 99F as provided in
this subsection . The process shall provide that an initial
request by a person to be voluntarily excluded shall be for
a period of five years or life and any subsequent request
following any five-year period shall be for a period of five
years or life. The process established shall require that
licensees be provided electronic access to names and social
security numbers of persons voluntarily excluded through a
secured interactive internet site maintained by the commission
and information regarding persons voluntarily excluded
shall be disseminated to all licensees under this chapter
and chapter 99F . The names, social security numbers, and
information regarding persons voluntarily excluded shall be
kept confidential unless otherwise ordered by a court or by
another person duly authorized to release such information.
The process established shall also require a person requesting
to be voluntarily excluded be provided information compiled
by the Iowa department of public health on gambling treatment
options. The state and any licensee under this chapter or
chapter 99F shall not be liable to any person for any claim
which may arise from this process. In addition to any other
penalty provided by law, any money or thing of value that has
been obtained by, or is owed to, a voluntarily excluded person
as a result of wagers made by the person after the person has
been voluntarily excluded shall be forfeited by the person and
shall be credited to the general fund of the state.
Sec. 2. Section 99F.1, subsection 1, Code 2019, is amended
to read as follows:
1. “Adjusted gross receipts” means the gross receipts less
-1-
LSB 2136YC (3) 88
ec/rn 1/ 11

H.F. _____
winnings paid to wagerers on gambling games . However, “adjusted
gross receipts” does not include promotional play receipts
received after the date in any fiscal year that the commission
determines that the wagering tax imposed pursuant to section
99F.11 on all licensees in that fiscal year on promotional
play receipts exceeds twenty-five million eight hundred twenty
thousand dollars.
Sec. 3. Section 99F.1, Code 2019, is amended by adding the
following new subsections:
NEW SUBSECTION . 23. “Sports betting” means the acceptance
of wagers on collegiate or professional sporting events by any
system of wagering as authorized by the commission. “Sports
betting” does not include wagering on a race as defined in
section 99D.2.
NEW SUBSECTION . 24. “Sports betting net receipts” means
the gross receipts less winnings paid to wagerers on sports
betting.
NEW SUBSECTION . 25. “Sports betting wagering area” means
that portion of an excursion gambling boat, gambling structure,
or racetrack enclosure in which sports betting is conducted as
designated by the commission.
Sec. 4. Section 99F.3, Code 2019, is amended to read as
follows:
99F.3 Gambling games and sports betting authorized.
The system of wagering on a gambling game and sports betting
as provided by this chapter is legal, when conducted on an
excursion gambling boat, gambling structure, or racetrack
enclosure at authorized locations by a licensee as provided in
this chapter .
Sec. 5. Section 99F.4, subsections 3 and 22, Code 2019, are
amended to read as follows:
3. To adopt standards under which all excursion gambling
boat operations shall be held and standards for the facilities
within which the gambling operations are to be held. The
commission may authorize the operation of gambling games on an
-2-
LSB 2136YC (3) 88
ec/rn 2/ 11

H.F. _____
excursion gambling boat and sports betting in a sports betting
wagering area which is also licensed to sell or serve alcoholic
beverages, wine, or beer as defined in section 123.3 .
22. To establish a process to allow a person to be
voluntarily excluded from the gaming floor and sports betting
wagering area of an excursion gambling boat, from the wagering
area, as defined in section 99D.2 , and from the gaming
floor and sports betting wagering area of all other licensed
facilities under this chapter and chapter 99D as provided in
this subsection . The process shall provide that an initial
request by a person to be voluntarily excluded shall be for
a period of five years or life and any subsequent request
following any five-year period shall be for a period of five
years or life. The process established shall require that
licensees be provided electronic access to names and social
security numbers of persons voluntarily excluded through a
secured interactive internet site maintained by the commission
and information regarding persons voluntarily excluded
shall be disseminated to all licensees under this chapter
and chapter 99D . The names, social security numbers, and
information regarding persons voluntarily excluded shall be
kept confidential unless otherwise ordered by a court or by
another person duly authorized to release such information.
The process established shall also require a person requesting
to be voluntarily excluded be provided information compiled
by the Iowa department of public health on gambling treatment
options. The state and any licensee under this chapter or
chapter 99D shall not be liable to any person for any claim
which may arise from this process. In addition to any other
penalty provided by law, any money or thing of value that has
been obtained by, or is owed to, a voluntarily excluded person
as a result of wagers made by the person after the person has
been voluntarily excluded shall be forfeited by the person and
shall be credited to the general fund of the state.
Sec. 6. Section 99F.4, Code 2019, is amended by adding the
-3-
LSB 2136YC (3) 88
ec/rn 3/ 11

H.F. _____
following new subsection:
NEW SUBSECTION . 27. To adopt standards under which all
sports betting is conducted, to identify occupations within
sports betting which require licensing, and to adopt standards
for licensing and background qualifications for occupations
including establishing fees for the occupational license.
All revenue received by the commission under this chapter
from license fees and regulatory fees shall be deposited in
the general fund of the state and shall be subject to the
requirements of section 8.60.
Sec. 7. NEW SECTION . 99F.7A Sports betting —— license ——
terms and conditions.
1. The commission shall, upon application to the
commission, issue an exclusive license to conduct or operate
sports betting to the Iowa horsemen’s benevolent and protective
association, subject to the requirements of this chapter.
2. The terms and conditions of a license issued pursuant to
this section shall, notwithstanding any provision of law to the
contrary, authorize the licensee to conduct advanced deposit
sports betting wagering as authorized in section 99F.9 and,
pursuant to an agreement with a licensee authorized to conduct
gambling games under chapter 99F, sports betting in an area
designated as a sports betting wagering area by that facility
as authorized by this section. An agreement to conduct sports
betting in a sports betting wagering area shall include a
provision allocating to the licensee of the gambling facility
a minimum of three percent of sports betting adjusted gross
receipts from sports betting at the facility for each license
year to be distributed by the licensee of the gambling facility
for educational, civic, public, charitable, patriotic, or
religious uses as defined in section 99B.1.
3. A licensee issued a license pursuant to this section
shall divide sports betting net proceeds for horse purses
pursuant to section 99D.7, subsection 5. For purposes of this
subsection, “sports betting net proceeds” means, for a license
-4-
LSB 2136YC (3) 88
ec/rn 4/ 11

H.F. _____
year, sports betting adjusted gross receipts less taxes paid
pursuant to section 99F.11 on sports betting adjusted gross
receipts and expenses incurred by the licensee in conducting
sports betting.
4. A licensee issued a license pursuant to this section
shall comply with all requirements of this chapter applicable
to licensees unless otherwise inconsistent with the provisions
of this section.
5. A licensee issued a license to conduct or operate sports
betting under this section shall employ commercially reasonable
steps to prohibit coaches, athletic trainers, officials,
players, or other individuals who participate in a collegiate
or professional sporting event that is the subject of sports
betting from sports betting under this chapter. In addition, a
licensee shall employ commercially reasonable steps to prohibit
persons who are employed in a position with direct involvement
with coaches, players, athletic trainers, officials, players,
or participants in a collegiate or professional sporting event
that is the subject of sports betting from sports betting under
this chapter.
Sec. 8. Section 99F.8, Code 2019, is amended to read as
follows:
99F.8 Bond of licensee.
A licensee licensed under section 99F.7 or 99F.7A shall post
a bond to the state of Iowa before the license is issued in a
sum as the commission shall fix, with sureties to be approved
by the commission. The bond shall be used to guarantee that
the licensee faithfully makes the payments, keeps its books and
records and makes reports, and conducts its gambling games and
sports betting in conformity with this chapter and the rules
adopted by the commission. The bond shall not be canceled by
a surety on less than thirty days’ notice in writing to the
commission. If a bond is canceled and the licensee fails to
file a new bond with the commission in the required amount on
or before the effective date of cancellation, the licensee’s
-5-
LSB 2136YC (3) 88
ec/rn 5/ 11

H.F. _____
license shall be revoked. The total and aggregate liability
of the surety on the bond is limited to the amount specified in
the bond.
Sec. 9. Section 99F.9, subsection 1, Code 2019, is amended
to read as follows:
1. Except as permitted in this section , the licensee shall
permit no form of wagering on gambling games or sports betting .
Sec. 10. Section 99F.9, Code 2019, is amended by adding the
following new subsection:
NEW SUBSECTION . 3A. a. For the purposes of this section,
unless the context otherwise requires:
(1) “Advance deposit sports betting wagering” means a method
of sports betting wagering in which an eligible individual may,
in an account established with a licensee under section 99F.7A,
deposit moneys into the account and use the account balance to
pay for sports betting wagering.
(2) “Eligible individual” means an individual who is at
least twenty-one years of age or older who is located within
this state.
b. The commission may authorize a licensee under section
99F.7A to conduct advance deposit sports betting wagering. An
advance deposit sports betting wager may be placed in person in
the sports betting wagering area, or from any other location
via a telephone-type device or any other electronic means.
c. An unlicensed person taking or receiving sports betting
wagers from residents of this state is guilty of a class “D”
felony.
Sec. 11. Section 99F.9, subsection 4, Code 2019, is amended
to read as follows:
4. A person under the age of twenty-one years shall not make
or attempt to make a wager pursuant to subsection 3A or on an
excursion gambling boat, gambling structure, or in a racetrack
enclosure and shall not be allowed on the gaming floor of
an excursion gambling boat or gambling structure or in the
wagering area, as defined in section 99D.2 , or on the gaming
-6-
LSB 2136YC (3) 88
ec/rn 6/ 11

H.F. _____
floor of a racetrack enclosure. However, a person eighteen
years of age or older may be employed to work on the gaming
floor of an excursion gambling boat or gambling structure or
in the wagering area or on the gaming floor of a racetrack
enclosure. A person who violates this subsection with respect
to making or attempting to make a wager commits a scheduled
violation under section 805.8C, subsection 5 , paragraph “a” .
Sec. 12. Section 99F.11, subsection 3, unnumbered paragraph
1, Code 2019, is amended to read as follows:
The taxes imposed by this section on adjusted gross receipts
from gambling games authorized under this chapter shall be paid
by the licensee to the treasurer of state within ten days after
the close of the day when the wagers were made and shall be
distributed as follows:
Sec. 13. Section 99F.11, Code 2019, is amended by adding the
following new subsection:
NEW SUBSECTION . 4. A tax is imposed on the sports betting
net receipts received each fiscal year by a licensee under
section 99F.7A from sports betting authorized under this
chapter at the rate of six and three-quarters percent. The
taxes imposed by this subsection for sports betting authorized
under this chapter shall be paid by the licensee under
section 99F.7A to the treasurer of state as determined by the
commission and shall be credited as provided in section 8.57,
subsection 5.
Sec. 14. Section 99F.15, subsection 1, paragraph c, Code
2019, is amended to read as follows:
c. Acting, or employing a person to act, as a shill or
decoy to encourage participation in a gambling game or sports
betting .
Sec. 15. Section 99F.15, subsection 4, paragraphs d, h, and
i, Code 2019, are amended to read as follows:
d. Cheats at a gambling game, including but not limited to
committing any act which alters the outcome of the game , or
cheats at sports betting .
-7-
LSB 2136YC (3) 88
ec/rn 7/ 11

H.F. _____
h. Claims, collects, or takes, or attempts to claim,
collect, or take, money or anything of value in or from the
gambling games or sports betting , with intent to defraud,
without having made a wager contingent on winning a gambling
game or sports betting wager , or claims, collects, or takes an
amount of money or thing of value of greater value than the
amount won.
i. Knowingly entices or induces a person to go to any place
where a gambling game or sports betting is being conducted or
operated in violation of the provisions of this chapter with
the intent that the other person plays or participates in that
gambling game or sports betting .
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
This bill authorizes the Iowa horsemen’s benevolent and
protective association to conduct sports betting.
Code section 99F.1, concerning definitions, is amended.
The bill defines “sports betting” as acceptance of wagers
on collegiate or professional sporting events, except races
as defined in Code chapter 99D, by any system of wagering
as authorized by the racing and gaming commission. “Sports
betting net receipts” is defined as gross receipts less
winnings paid to wagerers on sports betting. “Sports betting
wagering area” is defined as that portion of a gambling
licensee facility in which sports wagering is conducted as
designated by the commission.
Code sections 99D.7(23) and 99F.4(22), concerning persons
voluntarily excluded from wagering or gaming areas, are amended
to include the sports betting wagering area.
Code section 99F.3, concerning authorized wagering under
Code chapter 99F, is amended to authorize wagering on sports
betting.
Code section 99F.4, concerning racing and gaming commission
powers, is amended to authorize the operation of sports betting
-8-
LSB 2136YC (3) 88
ec/rn 8/ 11

H.F. _____
in a sports betting wagering area on an excursion gambling boat
which is also licensed to serve alcoholic beverages, grants the
racing and gaming commission the authority to adopt standards
under which sports betting is conducted, and provides that
all revenue received by the commission from license fees and
regulatory fees for sports betting shall be deposited in the
general fund of the state.
New Code section 99F.7A provides specific requirements
relative to the licensing and operation of sports betting.
The bill provides that the commission shall issue a license
to conduct or operate sports betting to the Iowa horsemen’s
benevolent and protective association upon application to
the commission. The bill authorizes the licensee to conduct
advanced deposit sports betting wagering as authorized by the
bill and, pursuant to an agreement with a licensee authorized
to conduct gambling games under Code chapter 99F, sports
betting in an area designated as a sports betting wagering
area by that facility. The bill provides that an agreement
to conduct sports betting in a sports betting wagering area
shall include a provision allocating a minimum of 3 percent of
sports betting adjusted gross receipts from sports betting at
the facility to be distributed by the licensee of the gambling
facility for educational, civic, public, charitable, patriotic,
or religious uses as defined in Code section 99B.1. The bill
further provides that a licensee issued a license pursuant to
this Code section shall divide sports betting net proceeds
for horse purses pursuant to the provisions of Code section
99D.7(5). The bill defines “sports betting net proceeds” as
sports betting adjusted gross receipts less taxes paid and
expenses incurred by the licensee in conducting sports betting.
New Code section 99F.7A also provides that a licensee issued
a license to conduct or operate sports betting shall employ
commercially reasonable steps to prohibit coaches, athletic
trainers, officials, players, participants, or other persons
employed in a position with direct involvement with such
-9-
LSB 2136YC (3) 88
ec/rn 9/ 11

H.F. _____
individuals from sports betting under Code chapter 99F.
Code section 99F.8, concerning licensee bonding
requirements, is amended to make such requirements applicable
to sports betting and a sports betting licensee.
Code section 99F.9, concerning wagering on gambling games,
is amended to allow a licensee under new Code section 99F.7A
to conduct advance deposit sports betting wagering. The bill
would allow for an advance deposit wager to be placed in person
at a licensed facility authorized to conduct gambling games
or from any other location by telephone or other electronic
means. The bill defines “advance deposit sports betting
wagering” as a form of wagering where an eligible individual
creates an account with a sports betting licensee, deposits
money into that account, and can use the balance within the
account for sports betting wagering. The bill defines an
“eligible individual” for purposes of advance deposit sports
betting wagering as an individual 21 years of age or older
who is located within this state. The bill provides that
an unlicensed person taking sports betting wagers from Iowa
residents is guilty of a class “D” felony, punishable by
confinement for no more than five years and a fine of at least
$750 but not more than $7,500. The Code section is also
amended to provide that a person under the age of 21 shall
not make or attempt to make a wager by advance deposit sports
betting wagering.
Code section 99F.11, concerning the wagering tax, is
amended. The bill provides that the wagering tax on sports
betting net receipts received each fiscal year by a sports
betting licensee from sports betting at the rate of six and
three-quarters percent. The taxes imposed shall be paid by the
sports betting licensee to the treasurer of state as determined
by the commission and shall be credited as provided in Code
section 8.57, subsection 5.
Code section 99F.15, concerning certain prohibited
activities and penalties, is amended to provide that current
-10-
LSB 2136YC (3) 88
ec/rn 10/ 11

H.F. _____
prohibitions on cheating at a gambling game, claiming anything
of value from a gambling game with intent to defraud, and
knowingly enticing a person to go where a gambling game is
conducted in violation of Code chapter 99F also applies to
sports betting.
-11-
LSB 2136YC (3) 88
ec/rn 11/ 11