Bill Text: IA SSB1068 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A study bill for an act authorizing licensees authorized to operate gambling games on an excursion boat, gambling structure, or racetrack enclosure to operate internet wagering on poker and making penalties applicable.
Spectrum: Unknown
Status: (N/A - Dead) 2013-01-23 - State Government: Danielson Chair,Horn, and Feenstra. [SSB1068 Detail]
Download: Iowa-2013-SSB1068-Introduced.html
Senate
Study
Bill
1068
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
STATE
GOVERNMENT
BILL
BY
CHAIRPERSON
DANIELSON)
A
BILL
FOR
An
Act
authorizing
licensees
authorized
to
operate
gambling
1
games
on
an
excursion
boat,
gambling
structure,
or
racetrack
2
enclosure
to
operate
internet
wagering
on
poker
and
making
3
penalties
applicable.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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Section
1.
Section
99F.1,
subsection
1,
Code
2013,
is
1
amended
to
read
as
follows:
2
1.
“Adjusted
gross
receipts”
means
the
gross
receipts
less
3
winnings
paid
to
wagerers.
For
internet
wagering,
“adjusted
4
gross
receipts”
means
the
gross
receipts
for
internet
wagering
5
on
poker
from
rake
and
tournament
fees
less
winnings
and
player
6
incentives
paid
to
wagerers.
7
Sec.
2.
Section
99F.1,
Code
2013,
is
amended
by
adding
the
8
following
new
subsections:
9
NEW
SUBSECTION
.
16A.
“Internet
wagering”
means
a
method
of
10
wagering
by
which
a
person
may
establish
an
account,
deposit
11
money
into
the
account,
and
use
the
account
balance
for
12
wagering
by
utilizing
electronic
communication.
13
NEW
SUBSECTION
.
16B.
“Internet
wagering
service
provider”
14
means
a
person
who
has
entered
into
an
agreement
with
an
15
internet
wagering
licensee
or
licensees
to
provide
internet
16
wagering
for
an
internet
wagering
licensee
as
authorized
by
17
this
chapter.
18
NEW
SUBSECTION
.
19A.
“Player
incentives”
means,
for
19
internet
wagering,
any
bonuses,
rewards,
prizes,
or
other
types
20
of
promotional
items
provided
to
a
person
engaging
in
internet
21
wagering
by
an
internet
wagering
licensee
as
an
incentive
to
22
engage
in
internet
wagering.
23
NEW
SUBSECTION
.
22.
“Rake”
means
a
set
fee
or
percentage
of
24
the
pot
assessed
by
an
internet
wagering
licensee
for
providing
25
the
internet
wagering
services
to
a
person
engaging
in
internet
26
wagering
for
the
right
to
participate
in
internet
wagering.
27
NEW
SUBSECTION
.
23.
“Tournament
fee”
means
a
set
fee
28
assessed
to
a
person
engaging
in
internet
wagering
by
the
29
internet
wagering
licensee
for
providing
internet
wagering
30
tournament
services.
31
Sec.
3.
Section
99F.3,
Code
2013,
is
amended
to
read
as
32
follows:
33
99F.3
Gambling
games
authorized.
34
The
system
of
wagering
on
a
gambling
game
as
provided
35
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S.F.
_____
by
this
chapter
is
legal,
when
conducted
on
an
excursion
1
gambling
boat,
gambling
structure,
or
racetrack
enclosure
at
2
authorized
locations
by
a
licensee
,
or,
for
internet
wagering,
3
when
conducted
by
an
internet
wagering
licensee
pursuant
to
4
requirements
established
by
the
commission,
as
provided
in
this
5
chapter
.
6
Sec.
4.
Section
99F.4,
subsections
14
and
22,
Code
2013,
are
7
amended
to
read
as
follows:
8
14.
To
require
,
except
for
internet
wagering,
all
licensees
9
of
gambling
game
operations
to
utilize
a
cashless
wagering
10
system
whereby
all
players’
money
is
converted
to
tokens,
11
electronic
cards,
or
chips
which
only
can
be
used
for
wagering
12
on
the
excursion
gambling
boat.
13
22.
To
require
licensees
to
establish
a
process
to
allow
a
14
person
to
be
voluntarily
excluded
for
life
from
an
excursion
15
gambling
boat
and
all
other
licensed
facilities
under
this
16
chapter
and
chapter
99D
,
or
from
engaging
in
internet
wagering
17
conducted
by
an
internet
wagering
licensee
under
this
chapter.
18
For
internet
wagering
licensees,
the
process
shall
allow
19
players
to
limit
the
maximum
amount
of
money
that
may
be
20
transferred
by
that
player
into
an
internet
wagering
account
21
in
a
twenty-four-hour
period
.
The
process
established
shall
22
require
that
a
licensee
disseminate
information
regarding
23
persons
voluntarily
excluded
to
all
licensees
under
this
24
chapter
and
chapter
99D
.
The
state
and
any
licensee
under
25
this
chapter
or
chapter
99D
shall
not
be
liable
to
any
person
26
for
any
claim
which
may
arise
from
this
process.
In
addition
27
to
any
other
penalty
provided
by
law,
any
money
or
thing
of
28
value
that
has
been
obtained
by,
or
is
owed
to,
a
voluntarily
29
excluded
person
by
a
licensee
as
a
result
of
wagers
made
by
the
30
person
after
the
person
has
been
voluntarily
excluded
shall
not
31
be
paid
to
the
person
but
shall
be
credited
to
the
general
fund
32
of
the
state.
33
Sec.
5.
Section
99F.4,
Code
2013,
is
amended
by
adding
the
34
following
new
subsection:
35
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NEW
SUBSECTION
.
27.
To
establish
requirements
for
internet
1
wagering
licensees
and
internet
wagering
service
providers
to
2
conduct
internet
wagering
on
poker
as
provided
in
this
chapter.
3
At
a
minimum,
the
requirements
shall
include
security
measures
4
to
insure
the
integrity
of
internet
wagering
and
technical
5
standards
governing
the
technology
used
to
conduct
internet
6
wagering.
In
addition,
the
requirements
shall,
subject
to
7
reasonable
conditions
established
by
the
commission,
allow
8
persons
who
have
registered
with
an
internet
wagering
licensee
9
to
engage
in
internet
wagering
with
other
persons,
regardless
10
of
location,
to
the
extent
permissible
by
law.
11
Sec.
6.
NEW
SECTION
.
99F.4E
Internet
wagering
on
poker
——
12
licensing
——
requirements.
13
1.
Upon
payment
of
the
applicable
internet
wagering
14
license
fee
as
determined
by
the
commission
and
application
15
by
a
licensee
authorized
to
operate
gambling
games
under
this
16
chapter,
the
commission
shall
issue
an
internet
wagering
17
license
to
the
licensee,
following
a
review
of
the
applicant
18
and
internet
wagering
service
provider
in
the
manner
provided
19
in
this
section
and
section
99F.6,
subject
to
the
provisions
20
of
this
chapter
and
rules
adopted
pursuant
to
this
chapter
21
relating
to
gambling
and
internet
wagering.
A
single
joint
22
license
to
conduct
internet
wagering
may
be
issued
to
more
than
23
one
licensee
authorized
to
operate
gambling
games
under
this
24
chapter
as
determined
by
the
commission.
The
issuance
of
a
25
license
to
conduct
internet
wagering
under
this
chapter
shall
26
not
be
considered
the
issuance
of
a
new
license
under
this
27
chapter.
28
2.
An
internet
wagering
licensee
shall
comply
with
the
29
following
requirements:
30
a.
Internet
wagering
shall
be
limited
to
wagering
on
poker
31
and
all
of
its
variations,
including
but
not
limited
to
Texas
32
hold
’em,
Omaha
hold
’em,
draw
poker,
and
stud
poker.
33
b.
Internet
wagering
shall
be
conducted
by
the
licensee
as
34
determined
by
the
commission.
35
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c.
Internet
wagering
shall
be
limited
to
only
those
persons
1
who
have
registered
with
the
licensee
to
engage
in
internet
2
wagering.
To
register,
a
person
shall
provide
sufficient
3
information
to
the
licensee
to
verify
that
the
person
is
at
4
least
twenty-one
years
of
age
and
is
otherwise
authorized
to
5
engage
in
internet
wagering
in
this
state.
6
d.
(1)
If
an
internet
wagering
license
is
issued
to
one
7
licensee
authorized
to
operate
gambling
games
under
this
8
chapter,
adjusted
gross
receipts
received
by
the
gambling
games
9
licensee
under
this
chapter
from
internet
wagering
each
fiscal
10
year
shall
be
added
to
the
adjusted
gross
receipts
received
11
by
the
licensee
from
gambling
games
other
than
from
internet
12
wagering
for
purposes
of
imposing
a
tax
on
the
adjusted
gross
13
receipts
received
by
the
licensee
as
provided
in
section
14
99F.11.
15
(2)
If
a
joint
internet
wagering
license
is
issued
to
more
16
than
one
licensee
authorized
to
operate
gambling
games
under
17
this
chapter,
the
tax
rate
imposed
on
adjusted
gross
receipts
18
from
internet
wagering
on
poker
each
fiscal
year
pursuant
to
19
section
99F.11
shall
be
twenty-two
percent
or,
if
a
majority
20
of
participating
licensees
on
the
joint
license
are
otherwise
21
subject
to
a
tax
rate
of
twenty-four
percent
on
adjusted
gross
22
receipts
from
gambling
games
over
three
million
dollars
under
23
section
99F.11,
twenty-four
percent.
24
e.
An
internet
wagering
licensee
shall
make
distributions
of
25
the
receipts
from
internet
wagering
on
poker
in
the
same
manner
26
as
provided
in
section
99F.6,
subsection
4,
paragraph
“a”
,
27
subparagraph
(2),
or
in
the
operating
agreement
entered
into
28
with
a
qualified
sponsoring
organization
as
provided
in
section
29
99F.5,
whichever
is
applicable.
30
f.
Any
other
requirements
as
the
commission
establishes
31
to
ensure
the
legality
and
integrity
of
conducting
internet
32
wagering
in
this
state.
33
3.
A
person
holding
a
valid
license
pursuant
to
chapter
34
99D
or
section
99F.7
is
exempt
from
further
investigation
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and
examination
for
licensing
to
operate
internet
wagering
1
pursuant
to
this
chapter.
However,
the
commission
may
order
2
future
investigations
or
examinations
as
the
commission
finds
3
appropriate.
4
Sec.
7.
Section
99F.6,
subsection
1,
unnumbered
paragraph
5
1,
Code
2013,
is
amended
to
read
as
follows:
6
A
person
shall
not
be
issued
a
license
to
conduct
gambling
7
games
on
an
excursion
gambling
boat
or
a
license
to
operate
8
an
excursion
gambling
boat
under
this
chapter
,
an
internet
9
wagering
license,
an
internet
wagering
service
provider
10
license,
an
occupational
license,
a
distributor
license,
or
11
a
manufacturer
license
unless
the
person
has
completed
and
12
signed
an
application
on
the
form
prescribed
and
published
13
by
the
commission.
The
application
shall
include
the
full
14
name,
residence,
date
of
birth
and
other
personal
identifying
15
information
of
the
applicant
that
the
commission
deems
16
necessary.
The
application
shall
also
indicate
whether
the
17
applicant
has
any
of
the
following:
18
Sec.
8.
Section
99F.6,
Code
2013,
is
amended
by
adding
the
19
following
new
subsection:
20
NEW
SUBSECTION
.
5A.
Before
a
license
is
granted
to
an
21
internet
wagering
service
provider,
the
commission
shall,
22
in
addition
to
the
requirements
of
this
section,
conduct
23
a
comprehensive
investigation
of
the
service
provider
to
24
determine
whether
the
service
provider
has
accepted
or
assisted
25
in
the
acceptance
of
any
wagers
or
other
consideration
related
26
to
internet
wagering.
The
commission
shall
not
issue
a
license
27
to
an
internet
wagering
service
provider
if
the
commission
28
determines
that
the
service
provider
has
accepted
or
assisted
29
in
the
acceptance
of
any
wagers
or
other
consideration
30
related
to
internet
wagering
in
violation
of
the
laws
of
any
31
jurisdiction
where
the
service
provider
has
operated.
32
Sec.
9.
Section
99F.7,
subsection
1,
Code
2013,
is
amended
33
to
read
as
follows:
34
1.
If
the
commission
is
satisfied
that
this
chapter
and
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its
rules
adopted
under
this
chapter
applicable
to
licensees
1
have
been
or
will
be
complied
with,
the
commission
shall
issue
2
a
license
for
a
period
of
not
more
than
three
years
to
an
3
applicant
to
own
a
gambling
game
operation,
to
an
applicant
to
4
operate
a
gambling
structure,
and
to
an
applicant
to
operate
5
an
excursion
gambling
boat
,
and
to
an
applicant
to
conduct
6
internet
wagering
.
The
commission
shall
decide
which
of
the
7
gambling
games
authorized
under
this
chapter
the
commission
8
will
permit.
The
commission
shall
decide
the
number,
location,
9
and
type
of
gambling
structures
and
excursion
gambling
boats
10
licensed
under
this
chapter
.
The
commission
shall
allow
the
11
operation
of
an
excursion
boat
or
moored
barge
on
or
within
one
12
thousand
feet
of
the
high
water
marks
of
the
rivers,
lakes,
and
13
reservoirs
of
this
state
as
established
by
the
commission
in
14
consultation
with
the
United
States
army
corps
of
engineers,
15
the
department
of
natural
resources,
or
other
appropriate
16
regulatory
agency.
The
license
shall
set
forth,
as
applicable,
17
the
name
of
the
licensee,
the
type
of
license
granted,
the
18
location
of
the
gambling
structure
or
the
place
where
the
19
excursion
gambling
boats
will
operate
and
dock,
and
the
time
20
and
number
of
days
during
the
excursion
season
and
the
off
21
season
when
gambling
may
be
conducted
by
the
licensee.
22
Sec.
10.
Section
99F.9,
subsections
3
and
5,
Code
2013,
are
23
amended
to
read
as
follows:
24
3.
The
licensee
may
receive
wagers
only
from
a
person
25
present
on
a
licensed
excursion
gambling
boat,
licensed
26
gambling
structure,
or
in
a
licensed
racetrack
enclosure
,
or
27
from
a
person
engaging
in
internet
wagering
.
An
internet
wager
28
may
be
placed
from
any
location
within
this
state
or
from
29
any
other
location
where
authorized
by
law,
subject
to
any
30
requirements
adopted
by
the
commission.
31
5.
A
person
under
the
age
of
twenty-one
years
shall
not
32
engage
in
internet
wagering
or
make
or
attempt
to
make
a
wager
33
on
an
excursion
gambling
boat,
gambling
structure,
or
in
a
34
racetrack
enclosure
and
shall
not
be
allowed
on
the
gaming
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floor
of
an
excursion
gambling
boat
or
gambling
structure
or
1
in
the
wagering
area,
as
defined
in
section
99D.2
,
or
on
the
2
gaming
floor
of
a
racetrack
enclosure.
However,
a
person
3
eighteen
years
of
age
or
older
may
be
employed
to
work
on
4
the
gaming
floor
of
an
excursion
gambling
boat
or
gambling
5
structure
or
in
the
wagering
area
or
on
the
gaming
floor
of
a
6
racetrack
enclosure.
A
person
who
violates
this
subsection
7
with
respect
to
engaging
in
internet
wagering
or
making
or
8
attempting
to
make
a
wager
commits
a
scheduled
violation
under
9
section
805.8C,
subsection
5
,
paragraph
“a”
.
10
Sec.
11.
Section
99F.12,
subsection
2,
Code
2013,
is
amended
11
to
read
as
follows:
12
2.
The
licensee
shall
furnish
to
the
commission
reports
13
and
information
as
the
commission
may
require
with
respect
to
14
the
licensee’s
activities.
The
gross
receipts
and
adjusted
15
gross
receipts
from
gambling
shall
be
separately
handled
and
16
accounted
for
from
all
other
moneys
received
from
operation
of
17
an
excursion
gambling
boat
or
from
operation
of
a
racetrack
18
enclosure
or
gambling
structure
licensed
to
conduct
gambling
19
games.
For
an
internet
wagering
licensee,
the
gross
receipts
20
and
adjusted
gross
receipts
from
internet
wagering
shall
be
21
separately
handled
and
accounted
for
from
all
other
moneys
22
received
from
other
licensed
activities
of
the
licensee.
The
23
commission
may
designate
a
representative
to
board
a
licensed
24
excursion
gambling
boat
or
to
enter
a
racetrack
enclosure
or
25
gambling
structure
licensed
to
conduct
gambling
games.
The
26
representative
shall
have
full
access
to
all
places
within
the
27
enclosure
of
the
boat,
the
gambling
structure,
or
the
racetrack
28
enclosure
and
shall
directly
supervise
the
handling
and
29
accounting
of
all
gross
receipts
and
adjusted
gross
receipts
30
from
gambling.
The
representative
shall
supervise
and
check
31
the
admissions.
The
compensation
of
a
representative
shall
be
32
fixed
by
the
commission
but
shall
be
paid
by
the
licensee.
33
Sec.
12.
Section
99F.12,
Code
2013,
is
amended
by
adding
the
34
following
new
subsection:
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NEW
SUBSECTION
.
2A.
a.
An
internet
wagering
licensee
1
shall,
in
addition
to
the
books
and
records
otherwise
required
2
by
this
section,
make
the
following
information
available
to
3
the
commission
upon
request:
4
(1)
Monthly
auditable
and
aggregate
financial
statements
of
5
internet
wagering
transactions.
6
(2)
Calculation
of
all
fees
payable
to
government.
7
(3)
The
identity
of
registered
players.
8
(4)
The
balance
on
a
registered
player’s
account
at
the
9
start
of
a
session
of
play.
10
(5)
The
wagers
placed
on
each
game
time
stamped
by
the
games
11
server.
12
(6)
The
result
of
each
game
time
stamped
by
the
games
13
server.
14
(7)
The
amount
won
or
lost
by
a
registered
player.
15
(8)
The
balance
on
a
registered
player’s
account
at
the
end
16
of
the
game.
17
b.
Information
described
in
paragraph
“a”
,
subparagraphs
(3)
18
through
(8),
shall
be
confidential.
19
Sec.
13.
Section
99F.15,
subsection
3,
Code
2013,
is
amended
20
to
read
as
follows:
21
3.
A
Except
for
internet
wagering
conducted
as
authorized
22
by
this
chapter,
a
person
wagering
or
accepting
a
wager
at
23
any
location
outside
an
excursion
gambling
boat,
gambling
24
structure,
or
a
racetrack
enclosure
is
in
violation
of
section
25
725.7
.
26
Sec.
14.
Section
99F.15,
subsection
4,
unnumbered
paragraph
27
1,
Code
2013,
is
amended
to
read
as
follows:
28
A
person
commits
a
class
“D”
felony
and,
in
addition,
shall
29
be
barred
for
life
from
internet
wagering,
excursion
gambling
30
boats
,
and
gambling
structures
under
the
jurisdiction
of
the
31
commission,
if
the
person
does
any
of
the
following:
32
EXPLANATION
33
This
bill
permits
licensees
authorized
to
conduct
gambling
34
games
under
Code
chapter
99F
to
apply
for
and
receive
a
license
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to
conduct
internet
wagering
on
poker.
1
Code
section
99F.1,
concerning
definitions,
is
amended.
The
2
bill
defines
“internet
wagering”
as
a
method
of
wagering
by
3
which
a
person
may
establish
an
account,
deposit
money
into
the
4
account,
and
use
the
account
balance
for
wagering
by
utilizing
5
electronic
communication.
The
bill
also
defines
“internet
6
wagering
service
provider”
as
a
person
who
has
entered
into
7
an
agreement
to
conduct
internet
wagering
for
an
internet
8
wagering
licensee.
The
definition
of
“adjusted
gross
receipts”
9
is
amended
to
mean,
for
internet
wagering,
the
gross
receipts
10
for
internet
wagering
on
poker
from
rake
and
tournament
fees
11
less
winnings
and
player
incentives
paid
to
wagerers.
The
12
terms
“player
incentives”,
“rake”,
and
“tournament
fees”,
for
13
purposes
of
internet
wagering,
are
also
defined.
14
Code
section
99F.4,
concerning
the
powers
of
the
state
15
racing
and
gaming
commission,
is
amended
to
provide
that
the
16
commission
shall
establish
requirements
for
internet
wagering
17
and
internet
wagering
licensees
and
service
providers.
The
18
Code
section
is
also
amended
to
provide
that
the
current
19
process
that
allows
a
person
to
be
voluntarily
excluded
from
a
20
gambling
facility
shall
also
apply
to
internet
wagering.
21
New
Code
section
99F.4E
establishes
the
process
for
22
licensing
and
conducting
internet
wagering.
The
bill
23
authorizes
current
gambling
games
licensees,
upon
payment
of
24
a
fee
as
determined
by
the
racing
and
gaming
commission,
to
25
apply
for
an
internet
wagering
license
and
allows
more
than
one
26
existing
licensee
to
jointly
apply
for
an
internet
wagering
27
license.
The
bill
provides
that
internet
wagering
licensees
28
shall
make
distributions
of
the
adjusted
gross
receipts
from
29
internet
wagering
for
charitable
purposes
in
the
same
manner
as
30
other
gambling
game
licensees.
The
bill
provides
that
internet
31
wagering
shall
be
limited
to
poker,
shall
be
conducted
as
32
determined
by
the
commission,
and
shall
be
limited
to
persons
33
who
have
registered
with
the
licensee
to
conduct
internet
34
wagering.
The
bill
provides
that
if
a
single
gambling
games
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licensee
is
issued
an
internet
wagering
license,
the
adjusted
1
gross
receipts
from
internet
wagering
shall
be
included
as
2
part
of
the
licensee’s
adjusted
gross
receipts
for
purposes
3
of
applying
the
wagering
tax
pursuant
to
Code
section
99F.11.
4
The
bill
further
provides
that
if
a
joint
internet
wagering
5
license
is
issued
to
more
than
one
gambling
games
licensee,
the
6
wagering
tax
imposed
on
adjusted
gross
receipts
from
internet
7
wagering
pursuant
to
Code
section
99F.11
shall
be
22
percent
8
or,
if
the
majority
of
participating
licensees
are
otherwise
9
subject
to
a
wagering
tax
of
24
percent
under
Code
section
10
99F.11,
24
percent.
11
Code
section
99F.6,
concerning
requirements
for
applications
12
for
a
license
under
Code
chapter
99F,
is
amended
to
provide
13
that
the
requirements
also
apply
to
internet
wagering
service
14
providers
and
applicants
for
an
internet
wagering
license.
The
15
Code
section
is
further
amended
to
provide
that
the
commission
16
shall
not
issue
a
license
to
an
internet
wagering
service
17
provider
if
the
commission
determines
that
the
provider
has
18
accepted
or
assisted
in
the
acceptance
of
wagers
related
to
19
internet
wagering
in
violation
of
the
laws
of
any
jurisdiction
20
in
which
the
provider
has
operated.
21
Code
section
99F.9,
concerning
wagering,
is
amended
to
22
provide
that
wagers
through
internet
wagering
are
authorized
23
and
can
be
made
from
any
location
within
this
state
or
as
24
authorized
by
law
subject
to
any
requirements
adopted
by
the
25
commission.
The
Code
section
is
also
amended
to
provide
26
that
limits
on
wagering
for
persons
under
the
age
of
21
at
27
an
excursion
gambling
boat,
gambling
structure,
or
racetrack
28
enclosure
also
apply
to
internet
wagering.
29
Code
section
99F.12,
concerning
licensee
reporting
30
requirements,
is
amended
to
provide
that
an
internet
wagering
31
licensee
shall
separately
account
for
the
gross
receipts
and
32
adjusted
gross
receipts
from
internet
wagering.
The
bill
33
also
provides
that
an
internet
wagering
licensee
shall
make
34
available
to
the
racing
and
gaming
commission
information
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_____
concerning
the
identity
and
account
balances
of
persons
1
engaging
in
internet
wagering
with
the
licensee
as
well
as
2
information
relative
to
individual
poker
games.
The
bill
3
provides
that
this
information
is
confidential.
4
Code
section
99F.15,
concerning
prohibited
activities
and
5
penalties,
is
amended
to
provide
that
a
person
who
commits
a
6
class
“D”
felony
relative
to
certain
activities
relating
to
7
gambling
shall
also
be
barred
for
life
from
internet
wagering
8
in
the
same
manner
as
the
person
would
be
barred
from
excursion
9
gambling
boats
and
gambling
structures.
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