Senate Study Bill 1080 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON SMITH) A BILL FOR An Act relating to the conduct of sports betting by gambling 1 licensees, making penalties applicable, and including 2 implementation and effective date provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1458XC (4) 88 ec/rn
S.F. _____ Section 1. Section 99D.7, subsection 23, Code 2019, is 1 amended to read as follows: 2 23. To establish a process to allow a person to be 3 voluntarily excluded from the wagering area of a racetrack 4 enclosure and from the gaming floor and sports betting wagering 5 area , as defined in section 99F.1 , of all other licensed 6 facilities under this chapter and chapter 99F as provided in 7 this subsection . The process shall provide that an initial 8 request by a person to be voluntarily excluded shall be for 9 a period of five years or life and any subsequent request 10 following any five-year period shall be for a period of five 11 years or life. The process established shall require that 12 licensees be provided electronic access to names and social 13 security numbers of persons voluntarily excluded through a 14 secured interactive internet site maintained by the commission 15 and information regarding persons voluntarily excluded 16 shall be disseminated to all licensees under this chapter 17 and chapter 99F . The names, social security numbers, and 18 information regarding persons voluntarily excluded shall be 19 kept confidential unless otherwise ordered by a court or by 20 another person duly authorized to release such information. 21 The process established shall also require a person requesting 22 to be voluntarily excluded be provided information compiled 23 by the Iowa department of public health on gambling treatment 24 options. The state and any licensee under this chapter or 25 chapter 99F shall not be liable to any person for any claim 26 which may arise from this process. In addition to any other 27 penalty provided by law, any money or thing of value that has 28 been obtained by, or is owed to, a voluntarily excluded person 29 as a result of wagers made by the person after the person has 30 been voluntarily excluded shall be forfeited by the person and 31 shall be credited to the general fund of the state. 32 Sec. 2. Section 99F.1, subsection 1, Code 2019, is amended 33 to read as follows: 34 1. “Adjusted gross receipts” means the gross receipts less 35 -1- LSB 1458XC (4) 88 ec/rn 1/ 10
S.F. _____ winnings paid to wagerers on gambling games . However, “adjusted 1 gross receipts” does not include promotional play receipts 2 received after the date in any fiscal year that the commission 3 determines that the wagering tax imposed pursuant to section 4 99F.11 on all licensees in that fiscal year on promotional 5 play receipts exceeds twenty-five million eight hundred twenty 6 thousand dollars. 7 Sec. 3. Section 99F.1, Code 2019, is amended by adding the 8 following new subsections: 9 NEW SUBSECTION . 23. “Sports betting” means the acceptance 10 of wagers on collegiate or professional sporting events by any 11 system of wagering as authorized by the commission. “Sports 12 betting” does not include wagering on a race as defined in 13 section 99D.2. 14 NEW SUBSECTION . 24. “Sports betting net receipts” means 15 the gross receipts less winnings paid to wagerers on sports 16 betting. 17 NEW SUBSECTION . 25. “Sports betting wagering area” means 18 that portion of an excursion gambling boat, gambling structure, 19 or racetrack enclosure in which sports betting is conducted as 20 designated by the commission. 21 Sec. 4. Section 99F.3, Code 2019, is amended to read as 22 follows: 23 99F.3 Gambling games and sports betting authorized. 24 The system of wagering on a gambling game and sports betting 25 as provided by this chapter is legal, when conducted on an 26 excursion gambling boat, gambling structure, or racetrack 27 enclosure at authorized locations by a licensee as provided in 28 this chapter . 29 Sec. 5. Section 99F.4, subsections 3 and 22, Code 2019, are 30 amended to read as follows: 31 3. To adopt standards under which all excursion gambling 32 boat operations shall be held and standards for the facilities 33 within which the gambling operations are to be held. The 34 commission may authorize the operation of gambling games on an 35 -2- LSB 1458XC (4) 88 ec/rn 2/ 10
S.F. _____ excursion gambling boat and sports betting in a sports betting 1 wagering area which is also licensed to sell or serve alcoholic 2 beverages, wine, or beer as defined in section 123.3 . 3 22. To establish a process to allow a person to be 4 voluntarily excluded from the gaming floor and sports betting 5 wagering area of an excursion gambling boat, from the wagering 6 area, as defined in section 99D.2 , and from the gaming 7 floor and sports betting wagering area of all other licensed 8 facilities under this chapter and chapter 99D as provided in 9 this subsection . The process shall provide that an initial 10 request by a person to be voluntarily excluded shall be for 11 a period of five years or life and any subsequent request 12 following any five-year period shall be for a period of five 13 years or life. The process established shall require that 14 licensees be provided electronic access to names and social 15 security numbers of persons voluntarily excluded through a 16 secured interactive internet site maintained by the commission 17 and information regarding persons voluntarily excluded 18 shall be disseminated to all licensees under this chapter 19 and chapter 99D . The names, social security numbers, and 20 information regarding persons voluntarily excluded shall be 21 kept confidential unless otherwise ordered by a court or by 22 another person duly authorized to release such information. 23 The process established shall also require a person requesting 24 to be voluntarily excluded be provided information compiled 25 by the Iowa department of public health on gambling treatment 26 options. The state and any licensee under this chapter or 27 chapter 99D shall not be liable to any person for any claim 28 which may arise from this process. In addition to any other 29 penalty provided by law, any money or thing of value that has 30 been obtained by, or is owed to, a voluntarily excluded person 31 as a result of wagers made by the person after the person has 32 been voluntarily excluded shall be forfeited by the person and 33 shall be credited to the general fund of the state. 34 Sec. 6. Section 99F.4, Code 2019, is amended by adding the 35 -3- LSB 1458XC (4) 88 ec/rn 3/ 10
S.F. _____ following new subsection: 1 NEW SUBSECTION . 27. To adopt standards under which all 2 sports betting is conducted, to identify occupations within 3 sports betting which require licensing, and to adopt standards 4 for licensing and background qualifications for occupations 5 including establishing fees for the occupational license. 6 All revenue received by the commission under this chapter 7 from license fees and regulatory fees shall be deposited in 8 the general fund of the state and shall be subject to the 9 requirements of section 8.60. 10 Sec. 7. NEW SECTION . 99F.7A Sports betting —— license —— 11 terms and conditions —— fees. 12 1. The commission shall, upon payment of a license fee 13 of one thousand dollars and submission of an application to 14 the commission, issue a license to conduct or operate sports 15 betting only to a licensee authorized to conduct or operate 16 gambling games under section 99F.4A or 99F.7, subject to the 17 requirements of this chapter. 18 2. A licensee issued a license to conduct or operate sports 19 betting under this section shall employ commercially reasonable 20 steps to prohibit coaches, athletic trainers, officials, 21 players, or other individuals who participate in a collegiate 22 or professional sporting event that is the subject of sports 23 betting from sports betting under this chapter. In addition, a 24 licensee shall employ commercially reasonable steps to prohibit 25 persons who are employed in a position with direct involvement 26 with coaches, players, athletic trainers, officials, players, 27 or participants in a collegiate or professional sporting event 28 that is the subject of sports betting from sports betting under 29 this chapter. 30 Sec. 8. Section 99F.8, Code 2019, is amended to read as 31 follows: 32 99F.8 Bond of licensee. 33 A licensee licensed under section 99F.7 shall post a bond 34 to the state of Iowa before the license is issued in a sum 35 -4- LSB 1458XC (4) 88 ec/rn 4/ 10
S.F. _____ as the commission shall fix, with sureties to be approved by 1 the commission. The bond shall be used to guarantee that the 2 licensee faithfully makes the payments, keeps its books and 3 records and makes reports, and conducts its gambling games and 4 sports betting in conformity with this chapter and the rules 5 adopted by the commission. The bond shall not be canceled by 6 a surety on less than thirty days’ notice in writing to the 7 commission. If a bond is canceled and the licensee fails to 8 file a new bond with the commission in the required amount on 9 or before the effective date of cancellation, the licensee’s 10 license shall be revoked. The total and aggregate liability 11 of the surety on the bond is limited to the amount specified in 12 the bond. 13 Sec. 9. Section 99F.9, subsection 1, Code 2019, is amended 14 to read as follows: 15 1. Except as permitted in this section , the licensee shall 16 permit no form of wagering on gambling games or sports betting . 17 Sec. 10. Section 99F.9, Code 2019, is amended by adding the 18 following new subsection: 19 NEW SUBSECTION . 3A. a. For the purposes of this section, 20 unless the context otherwise requires: 21 (1) “Advance deposit sports betting wagering” means a method 22 of sports betting wagering in which an eligible individual may, 23 in an account established with a licensee under section 99F.7A, 24 deposit moneys into the account and use the account balance to 25 pay for sports betting wagering. Prior to January 1, 2021, an 26 account must be established by an eligible individual in person 27 with a licensee. 28 (2) “Eligible individual” means an individual who is at 29 least twenty-one years of age or older who is located within 30 this state. 31 b. The commission may authorize a licensee under section 32 99F.7A to conduct advance deposit sports betting wagering. An 33 advance deposit sports betting wager may be placed in person in 34 the sports betting wagering area, or from any other location 35 -5- LSB 1458XC (4) 88 ec/rn 5/ 10
S.F. _____ via a telephone-type device or any other electronic means. 1 c. An unlicensed person taking or receiving sports betting 2 wagers from residents of this state is guilty of a class “D” 3 felony. 4 Sec. 11. Section 99F.9, subsection 4, Code 2019, is amended 5 to read as follows: 6 4. A person under the age of twenty-one years shall not make 7 or attempt to make a wager pursuant to subsection 3A or on an 8 excursion gambling boat, gambling structure, or in a racetrack 9 enclosure and shall not be allowed on the gaming floor of 10 an excursion gambling boat or gambling structure or in the 11 wagering area, as defined in section 99D.2 , or on the gaming 12 floor of a racetrack enclosure. However, a person eighteen 13 years of age or older may be employed to work on the gaming 14 floor of an excursion gambling boat or gambling structure or 15 in the wagering area or on the gaming floor of a racetrack 16 enclosure. A person who violates this subsection with respect 17 to making or attempting to make a wager commits a scheduled 18 violation under section 805.8C, subsection 5 , paragraph “a” . 19 Sec. 12. Section 99F.11, subsection 3, unnumbered paragraph 20 1, Code 2019, is amended to read as follows: 21 The taxes imposed by this section on adjusted gross receipts 22 from gambling games authorized under this chapter shall be paid 23 by the licensee to the treasurer of state within ten days after 24 the close of the day when the wagers were made and shall be 25 distributed as follows: 26 Sec. 13. Section 99F.11, Code 2019, is amended by adding the 27 following new subsection: 28 NEW SUBSECTION . 4. A tax is imposed on the sports betting 29 net receipts received each fiscal year by a licensed operator 30 from sports betting authorized under this chapter at the rate 31 of six and three-quarters percent. The taxes imposed by this 32 subsection for sports betting authorized under this chapter 33 shall be paid by the licensed operator to the treasurer of 34 state as determined by the commission and shall be credited as 35 -6- LSB 1458XC (4) 88 ec/rn 6/ 10
S.F. _____ provided in section 8.57, subsection 5. 1 Sec. 14. Section 99F.15, subsection 1, paragraph c, Code 2 2019, is amended to read as follows: 3 c. Acting, or employing a person to act, as a shill or 4 decoy to encourage participation in a gambling game or sports 5 betting . 6 Sec. 15. Section 99F.15, subsection 4, paragraphs d, h, and 7 i, Code 2019, are amended to read as follows: 8 d. Cheats at a gambling game, including but not limited to 9 committing any act which alters the outcome of the game , or 10 cheats at sports betting . 11 h. Claims, collects, or takes, or attempts to claim, 12 collect, or take, money or anything of value in or from the 13 gambling games or sports betting , with intent to defraud, 14 without having made a wager contingent on winning a gambling 15 game or sports betting wager , or claims, collects, or takes an 16 amount of money or thing of value of greater value than the 17 amount won. 18 i. Knowingly entices or induces a person to go to any place 19 where a gambling game or sports betting is being conducted or 20 operated in violation of the provisions of this chapter with 21 the intent that the other person plays or participates in that 22 gambling game or sports betting . 23 Sec. 16. IMPLEMENTATION. The racing and gaming commission 24 shall not implement this Act until the commission has adopted 25 rules pursuant to chapter 17A providing for such implementation 26 and such rules have become effective. 27 Sec. 17. EFFECTIVE DATE. This Act, being deemed of 28 immediate importance, takes effect upon enactment. 29 EXPLANATION 30 The inclusion of this explanation does not constitute agreement with 31 the explanation’s substance by the members of the general assembly. 32 This bill authorizes gambling licensees to conduct sports 33 betting. 34 Code section 99F.1, concerning definitions, is amended. 35 -7- LSB 1458XC (4) 88 ec/rn 7/ 10
S.F. _____ The bill defines “sports betting” as acceptance of wagers 1 on collegiate or professional sporting events, except races 2 as defined in Code chapter 99D, by any system of wagering 3 as authorized by the racing and gaming commission. “Sports 4 betting net receipts” is defined as gross receipts less 5 winnings paid to wagerers on sports betting. “Sports betting 6 wagering area” is defined as that portion of a gambling 7 licensee facility in which sports wagering is conducted as 8 designated by the commission. 9 Code sections 99D.7(23) and 99F.4(22), concerning persons 10 voluntarily excluded from wagering or gaming areas, are amended 11 to include the sports betting wagering area. 12 Code section 99F.3, concerning authorized wagering under 13 Code chapter 99F, is amended to authorize wagering on sports 14 betting. 15 Code section 99F.4, concerning racing and gaming commission 16 powers, is amended to authorize the operation of sports betting 17 in a sports betting wagering area on an excursion gambling boat 18 which is also licensed to serve alcoholic beverages, grants the 19 racing and gaming commission the authority to adopt standards 20 under which sports betting is conducted, and provides that 21 all revenue received by the commission from license fees and 22 regulatory fees for sports betting shall be deposited in the 23 general fund of the state. 24 New Code section 99F.7A provides specific requirements 25 relative to the licensing, operation, and fees applicable to 26 sports betting. The bill provides that the commission shall, 27 upon payment of a license fee of $1,000, issue a license to 28 conduct or operate sports betting to a licensee authorized to 29 conduct or operate gambling games under Code section 99F.4A 30 or 99F.7. The new Code section also provides that a licensee 31 issued a license to conduct or operate sports betting shall 32 employ commercially reasonable steps to prohibit coaches, 33 athletic trainers, officials, players, participants, or other 34 persons employed in a position with direct involvement with 35 -8- LSB 1458XC (4) 88 ec/rn 8/ 10
S.F. _____ such individuals from sports betting under this Code chapter. 1 Code section 99F.8, concerning licensee bonding 2 requirements, is amended to make such requirements applicable 3 to sports betting. 4 Code section 99F.9, concerning wagering on gambling games, 5 is amended to allow the commission to authorize gambling 6 game licensees under Code chapter 99F to conduct advance 7 deposit sports betting wagering. The bill would allow for an 8 advance deposit wager to be placed in person at a licensed 9 facility authorized to conduct gambling games or from any other 10 location by telephone or other electronic means. The bill 11 defines “advance deposit sports betting wagering” as a form of 12 wagering where an eligible individual creates an account with 13 a licensee, deposits money into that account, and can use the 14 balance within the account for sports betting wagering. Prior 15 to January 1, 2021, an account must be established in person 16 with a licensee. The bill defines an “eligible individual” 17 for purposes of advance deposit sports betting wagering as an 18 individual 21 years of age or older who is located within this 19 state. The bill provides that an unlicensed person taking 20 sports betting wagers from Iowa residents is guilty of a class 21 “D” felony, punishable by confinement for no more than five 22 years and a fine of at least $750 but not more than $7,500. The 23 Code section is also amended to provide that a person under the 24 age of 21 shall not make or attempt to make a wager by advance 25 deposit sports betting wagering. 26 Code section 99F.11, concerning the wagering tax, is 27 amended. The bill provides that the wagering tax on 28 sports betting net receipts received each fiscal year by a 29 licensed operator from sports betting at the rate of six and 30 three-quarters percent. The taxes imposed shall be paid by 31 the licensed operator to the treasurer of state as determined 32 by the commission and shall be credited as provided in Code 33 section 8.57, subsection 5. 34 Code section 99F.15, concerning certain prohibited 35 -9- LSB 1458XC (4) 88 ec/rn 9/ 10
S.F. _____ activities and penalties, is amended to provide that current 1 prohibitions on cheating at a gambling game, claiming anything 2 of value from a gambling game with intent to defraud, and 3 knowingly enticing a person to go where a gambling game is 4 conducted in violation of Code chapter 99F also applies to 5 sports betting. 6 The bill takes effect upon enactment. However, the bill 7 provides that the racing and gaming commission shall not 8 implement the bill until the commission has adopted rules 9 pursuant to Code chapter 17A providing for such implementation 10 and such rules have become effective. 11 -10- LSB 1458XC (4) 88 ec/rn 10/ 10