Bill Text: IA HF648 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to sports gambling and wagering, by providing for fantasy sports contests and sports betting, providing for taxes and fees, making penalties applicable, and including implementation and effective date provisions. (Formerly HSB 198; See HF 748.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2019-04-22 - Withdrawn. H.J. 945. [HF648 Detail]
Download: Iowa-2019-HF648-Introduced.html
House
File
648
-
Introduced
HOUSE
FILE
648
BY
COMMITTEE
ON
STATE
GOVERNMENT
(SUCCESSOR
TO
HSB
198)
A
BILL
FOR
An
Act
relating
to
sports
gambling
and
wagering,
by
providing
1
for
fantasy
sports
contests
and
sports
betting,
providing
2
for
taxes
and
fees,
making
penalties
applicable,
and
3
including
implementation
and
effective
date
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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648
DIVISION
I
1
LICENSED
SPORTS
BETTING
2
Section
1.
Section
99D.7,
subsection
23,
Code
2019,
is
3
amended
to
read
as
follows:
4
23.
To
establish
a
process
to
allow
a
person
to
be
5
voluntarily
excluded
from
advance
deposit
wagering
as
defined
6
in
section
99D.11,
from
an
internet
fantasy
sports
contest
as
7
defined
in
section
99E.1,
from
advance
deposit
sports
betting
8
wagering
as
defined
in
section
99F.9,
from
the
wagering
area
9
of
a
racetrack
enclosure
and
from
the
gaming
floor
and
sports
10
betting
wagering
area
,
as
defined
in
section
99F.1
,
of
all
11
other
licensed
facilities
under
this
chapter
and
chapter
99F
12
as
provided
in
this
subsection
.
The
process
shall
provide
13
that
an
initial
request
by
a
person
to
be
voluntarily
excluded
14
shall
be
for
a
period
of
five
years
or
life
and
any
subsequent
15
request
following
any
five-year
period
shall
be
for
a
period
16
of
five
years
or
life.
The
process
established
shall
require
17
that
licensees
be
provided
electronic
access
to
names
and
18
social
security
numbers
of
persons
voluntarily
excluded
19
through
a
secured
interactive
internet
site
maintained
by
20
the
commission
and
information
regarding
persons
voluntarily
21
excluded
shall
be
disseminated
to
all
licensees
under
this
22
chapter
and
chapter
99F
.
The
names,
social
security
numbers,
23
and
information
regarding
persons
voluntarily
excluded
shall
24
be
kept
confidential
unless
otherwise
ordered
by
a
court
or
by
25
another
person
duly
authorized
to
release
such
information.
26
The
process
established
shall
also
require
a
person
requesting
27
to
be
voluntarily
excluded
be
provided
information
compiled
28
by
the
Iowa
department
of
public
health
on
gambling
treatment
29
options.
The
state
and
any
licensee
under
this
chapter
or
30
chapter
99F
shall
not
be
liable
to
any
person
for
any
claim
31
which
may
arise
from
this
process.
In
addition
to
any
other
32
penalty
provided
by
law,
any
money
or
thing
of
value
that
has
33
been
obtained
by,
or
is
owed
to,
a
voluntarily
excluded
person
34
as
a
result
of
wagers
made
by
the
person
after
the
person
has
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been
voluntarily
excluded
shall
be
forfeited
by
the
person
and
1
shall
be
credited
to
the
general
fund
of
the
state.
2
Sec.
2.
Section
99F.1,
subsection
1,
Code
2019,
is
amended
3
to
read
as
follows:
4
1.
“Adjusted
gross
receipts”
means
the
gross
receipts
less
5
winnings
paid
to
wagerers
on
gambling
games
.
However,
“adjusted
6
gross
receipts”
does
not
include
promotional
play
receipts
7
received
after
the
date
in
any
fiscal
year
that
the
commission
8
determines
that
the
wagering
tax
imposed
pursuant
to
section
9
99F.11
on
all
licensees
in
that
fiscal
year
on
promotional
10
play
receipts
exceeds
twenty-five
million
eight
hundred
twenty
11
thousand
dollars.
12
Sec.
3.
Section
99F.1,
Code
2019,
is
amended
by
adding
the
13
following
new
subsections:
14
NEW
SUBSECTION
.
2A.
“Authorized
sporting
event”
means
a
15
professional
sporting
event,
a
collegiate
sporting
event,
or
an
16
international
team
or
individual
sporting
event
governed
by
the
17
international
olympic
committee
in
which
no
participant
in
the
18
sporting
event
is
under
eighteen
years
of
age.
19
NEW
SUBSECTION
.
23.
“Sports
betting”
means
the
acceptance
20
of
wagers
on
an
authorized
sporting
event
by
any
system
of
21
wagering
as
authorized
by
the
commission.
“Sports
betting”
22
does
not
include
wagering
on
a
race
as
defined
in
section
99D.2
23
or
entering
an
internet
fantasy
sports
contest
as
defined
in
24
section
99E.1.
25
NEW
SUBSECTION
.
24.
“Sports
betting
net
receipts”
means
26
the
gross
receipts
less
winnings
paid
to
wagerers
on
sports
27
betting.
28
NEW
SUBSECTION
.
25.
“Sports
betting
wagering
area”
means
an
29
area,
as
designated
by
the
commission,
in
which
sports
betting
30
is
conducted.
31
Sec.
4.
Section
99F.1,
subsection
17,
Code
2019,
is
amended
32
to
read
as
follows:
33
17.
“Licensee”
means
any
person
licensed
under
section
99F.7
34
or
99F.7A
.
35
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Sec.
5.
Section
99F.3,
Code
2019,
is
amended
to
read
as
1
follows:
2
99F.3
Gambling
games
and
sports
betting
authorized.
3
The
system
of
wagering
on
a
gambling
game
and
sports
betting
4
as
provided
by
this
chapter
is
legal,
when
conducted
on
an
5
excursion
gambling
boat,
gambling
structure,
or
racetrack
6
enclosure
at
authorized
locations
by
a
licensee
as
provided
in
7
this
chapter
.
8
Sec.
6.
Section
99F.4,
subsections
3
and
22,
Code
2019,
are
9
amended
to
read
as
follows:
10
3.
To
adopt
standards
under
which
all
excursion
gambling
11
boat
operations
shall
be
held
and
standards
for
the
facilities
12
within
which
the
gambling
operations
are
to
be
held.
The
13
commission
may
authorize
the
operation
of
gambling
games
on
an
14
excursion
gambling
boat
and
sports
betting
in
a
sports
betting
15
wagering
area
which
is
also
licensed
to
sell
or
serve
alcoholic
16
beverages,
wine,
or
beer
as
defined
in
section
123.3
.
17
22.
To
establish
a
process
to
allow
a
person
to
be
18
voluntarily
excluded
from
advance
deposit
wagering
as
defined
19
in
section
99D.11,
from
an
internet
fantasy
sports
contest
as
20
defined
in
section
99E.1,
from
advance
deposit
sports
betting
21
wagering
as
defined
in
section
99F.9,
from
the
gaming
floor
22
and
sports
betting
wagering
area
of
an
excursion
gambling
23
boat,
from
the
wagering
area,
as
defined
in
section
99D.2
,
24
and
from
the
gaming
floor
and
sports
betting
wagering
area
25
of
all
other
licensed
facilities
under
this
chapter
and
26
chapter
99D
as
provided
in
this
subsection
.
The
process
shall
27
provide
that
an
initial
request
by
a
person
to
be
voluntarily
28
excluded
shall
be
for
a
period
of
five
years
or
life
and
any
29
subsequent
request
following
any
five-year
period
shall
be
for
30
a
period
of
five
years
or
life.
The
process
established
shall
31
require
that
licensees
be
provided
electronic
access
to
names
32
and
social
security
numbers
of
persons
voluntarily
excluded
33
through
a
secured
interactive
internet
site
maintained
by
34
the
commission
and
information
regarding
persons
voluntarily
35
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excluded
shall
be
disseminated
to
all
licensees
under
this
1
chapter
and
chapter
99D
.
The
names,
social
security
numbers,
2
and
information
regarding
persons
voluntarily
excluded
shall
3
be
kept
confidential
unless
otherwise
ordered
by
a
court
or
by
4
another
person
duly
authorized
to
release
such
information.
5
The
process
established
shall
also
require
a
person
requesting
6
to
be
voluntarily
excluded
be
provided
information
compiled
7
by
the
Iowa
department
of
public
health
on
gambling
treatment
8
options.
The
state
and
any
licensee
under
this
chapter
or
9
chapter
99D
shall
not
be
liable
to
any
person
for
any
claim
10
which
may
arise
from
this
process.
In
addition
to
any
other
11
penalty
provided
by
law,
any
money
or
thing
of
value
that
has
12
been
obtained
by,
or
is
owed
to,
a
voluntarily
excluded
person
13
as
a
result
of
wagers
made
by
the
person
after
the
person
has
14
been
voluntarily
excluded
shall
be
forfeited
by
the
person
and
15
shall
be
credited
to
the
general
fund
of
the
state.
16
Sec.
7.
Section
99F.4,
Code
2019,
is
amended
by
adding
the
17
following
new
subsection:
18
NEW
SUBSECTION
.
27.
To
adopt
standards
under
which
all
19
sports
betting
is
conducted,
including
the
scope
and
type
of
20
wagers
allowed,
to
identify
occupations
within
sports
betting
21
which
require
licensing,
and
to
adopt
standards
for
licensing
22
and
background
qualifications
for
occupations
including
23
establishing
fees
for
the
occupational
license.
In
considering
24
standards
regarding
the
scope
and
type
of
wagers
allowed
for
25
sports
betting,
the
commission
shall
consult
with
interested
26
professional
and
collegiate
sports
leagues
and,
if
interested,
27
the
international
olympic
committee.
All
revenue
received
by
28
the
commission
under
this
chapter
from
license
fees
shall
be
29
deposited
in
the
general
fund
of
the
state
and
shall
be
subject
30
to
the
requirements
of
section
8.60.
All
revenue
received
by
31
the
commission
from
regulatory
fees
shall
be
deposited
into
the
32
gaming
regulatory
revolving
fund
established
in
section
99F.20.
33
Sec.
8.
NEW
SECTION
.
99F.7A
Sports
betting
——
license
——
34
terms
and
conditions
——
fees.
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1.
The
commission
shall,
upon
payment
of
an
initial
1
license
fee
of
fifteen
thousand
dollars
and
submission
of
an
2
application
to
the
commission
consistent
with
the
requirements
3
of
section
99F.6,
issue
a
license
to
conduct
sports
betting
4
to
a
licensee
authorized
to
conduct
gambling
games
at
a
5
pari-mutuel
racetrack
enclosure
or
a
licensee
authorized
to
6
operate
an
excursion
gambling
boat
or
gambling
structure,
7
subject
to
the
requirements
of
this
chapter.
The
annual
8
renewal
fee
for
a
license
to
conduct
sports
betting
shall
be
9
fifteen
thousand
dollars.
10
2.
A
licensee
under
this
section
shall
do
all
of
the
11
following:
12
a.
Include
on
the
internet
site
or
mobile
application
used
13
by
the
licensee
to
conduct
advance
deposit
sports
betting
14
wagering
as
authorized
in
section
99F.9
the
statewide
telephone
15
number
authorized
by
the
Iowa
department
of
public
health
to
16
provide
problem
gambling
information
and
extensive
responsible
17
gaming
features
in
addition
to
those
described
in
section
18
99F.4,
subsection
22.
19
b.
Establish,
subject
to
commission
approval,
sports
betting
20
wagering
rules
that
specify
the
amounts
to
be
paid
on
winning
21
sports
betting
wagers,
the
effect
of
changes
in
the
scheduling
22
of
an
authorized
sporting
event
subject
to
sports
betting,
and
23
the
source
of
the
information
used
to
determine
the
outcome
24
of
a
sports
betting
wager.
The
sports
betting
wagering
rules
25
shall
be
displayed
in
the
licensee’s
sports
betting
wagering
26
area,
posted
on
the
internet
site
or
mobile
application
used
by
27
the
licensee
to
conduct
advance
deposit
sports
betting
wagering
28
as
authorized
in
section
99F.9,
and
included
in
the
terms
and
29
conditions
of
the
licensee’s
advance
deposit
account
sports
30
betting
wagering
system.
31
3.
A
licensee
issued
a
license
to
conduct
sports
betting
32
under
this
section
shall
employ
commercially
reasonable
steps
33
to
prohibit
coaches,
athletic
trainers,
officials,
players,
or
34
other
individuals
who
participate
in
an
authorized
sporting
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event
that
is
the
subject
of
sports
betting
from
sports
betting
1
under
this
chapter.
In
addition,
a
licensee
shall
employ
2
commercially
reasonable
steps
to
prohibit
persons
who
are
3
employed
in
a
position
with
direct
involvement
with
coaches,
4
players,
athletic
trainers,
officials,
players,
or
participants
5
in
an
authorized
sporting
event
that
is
the
subject
of
sports
6
betting
from
sports
betting
under
this
chapter.
7
Sec.
9.
Section
99F.8,
Code
2019,
is
amended
to
read
as
8
follows:
9
99F.8
Bond
of
licensee.
10
A
licensee
licensed
under
section
99F.7
shall
post
a
bond
11
to
the
state
of
Iowa
before
the
license
is
issued
in
a
sum
12
as
the
commission
shall
fix,
with
sureties
to
be
approved
by
13
the
commission.
The
bond
shall
be
used
to
guarantee
that
the
14
licensee
faithfully
makes
the
payments,
keeps
its
books
and
15
records
and
makes
reports,
and
conducts
its
gambling
games
and
16
sports
betting
in
conformity
with
this
chapter
and
the
rules
17
adopted
by
the
commission.
The
bond
shall
not
be
canceled
by
18
a
surety
on
less
than
thirty
days’
notice
in
writing
to
the
19
commission.
If
a
bond
is
canceled
and
the
licensee
fails
to
20
file
a
new
bond
with
the
commission
in
the
required
amount
on
21
or
before
the
effective
date
of
cancellation,
the
licensee’s
22
license
shall
be
revoked.
The
total
and
aggregate
liability
23
of
the
surety
on
the
bond
is
limited
to
the
amount
specified
in
24
the
bond.
25
Sec.
10.
Section
99F.9,
subsection
1,
Code
2019,
is
amended
26
to
read
as
follows:
27
1.
Except
as
permitted
in
this
section
,
the
licensee
28
shall
not
permit
no
sports
betting
or
any
form
of
wagering
on
29
gambling
games.
30
Sec.
11.
Section
99F.9,
Code
2019,
is
amended
by
adding
the
31
following
new
subsection:
32
NEW
SUBSECTION
.
3A.
a.
For
the
purposes
of
this
section,
33
unless
the
context
otherwise
requires:
34
(1)
“Advance
deposit
sports
betting
wagering”
means
a
method
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of
sports
betting
in
which
an
eligible
individual
may,
in
an
1
account
established
with
a
licensee
under
section
99F.7A,
2
deposit
moneys
into
the
account
and
use
the
account
balance
to
3
pay
for
sports
betting.
4
(2)
“Advance
deposit
sports
betting
wagering
operator”
means
5
an
advance
deposit
sports
betting
wagering
operator
licensed
6
by
the
commission
who
has
entered
into
an
agreement
with
a
7
licensee
under
section
99F.7A
to
provide
advance
deposit
sports
8
betting
wagering.
9
(3)
“Eligible
individual”
means
an
individual
who
is
at
10
least
twenty-one
years
of
age
or
older
who
is
located
within
11
this
state.
12
b.
The
commission
may
authorize
a
licensee
under
section
13
99F.7A
to
conduct
advance
deposit
sports
betting
wagering.
An
14
advance
deposit
sports
betting
wager
may
be
placed
in
person
15
in
the
sports
wagering
area,
or
from
any
other
location
via
16
a
telephone-type
device
or
any
other
electronic
means.
The
17
commission
may
also
issue
an
advance
deposit
sports
betting
18
wagering
operator
license
to
an
entity
who
complies
with
this
19
subsection
and
section
99F.6
and
may
require
the
advance
20
deposit
sports
wagering
operator
to
conduct
an
audit
consistent
21
with
the
requirements
of
section
99F.13.
22
c.
An
unlicensed
person
taking
or
receiving
sports
betting
23
wagers
from
residents
of
this
state
is
guilty
of
a
class
“D”
24
felony.
25
Sec.
12.
Section
99F.9,
subsection
4,
Code
2019,
is
amended
26
to
read
as
follows:
27
4.
A
person
under
the
age
of
twenty-one
years
shall
not
make
28
or
attempt
to
make
a
wager
pursuant
to
subsection
3A
or
on
an
29
excursion
gambling
boat,
gambling
structure,
or
in
a
racetrack
30
enclosure
and
shall
not
be
allowed
on
the
gaming
floor
of
31
an
excursion
gambling
boat
or
gambling
structure
or
in
the
32
wagering
area,
as
defined
in
section
99D.2
,
or
on
the
gaming
33
floor
of
a
racetrack
enclosure.
However,
a
person
eighteen
34
years
of
age
or
older
may
be
employed
to
work
on
the
gaming
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floor
of
an
excursion
gambling
boat
or
gambling
structure
or
1
in
the
wagering
area
or
on
the
gaming
floor
of
a
racetrack
2
enclosure.
A
person
who
violates
this
subsection
with
respect
3
to
making
or
attempting
to
make
a
wager
commits
a
scheduled
4
violation
under
section
805.8C,
subsection
5
,
paragraph
“a”
.
5
Sec.
13.
Section
99F.11,
subsection
3,
unnumbered
paragraph
6
1,
Code
2019,
is
amended
to
read
as
follows:
7
The
taxes
imposed
by
this
section
on
adjusted
gross
receipts
8
from
gambling
games
authorized
under
this
chapter
shall
be
paid
9
by
the
licensee
to
the
treasurer
of
state
within
ten
days
after
10
the
close
of
the
day
when
the
wagers
were
made
and
shall
be
11
distributed
as
follows:
12
Sec.
14.
Section
99F.11,
Code
2019,
is
amended
by
adding
the
13
following
new
subsection:
14
NEW
SUBSECTION
.
4.
A
tax
is
imposed
on
the
sports
betting
15
net
receipts
received
each
fiscal
year
by
a
licensed
operator
16
from
sports
betting
authorized
under
this
chapter
at
the
rate
17
of
six
and
three-quarters
percent.
The
taxes
imposed
by
this
18
subsection
for
sports
betting
authorized
under
this
chapter
19
shall
be
paid
by
the
licensed
operator
to
the
treasurer
of
20
state
as
determined
by
the
commission
and
shall
be
credited
as
21
provided
in
section
8.57,
subsection
5.
22
Sec.
15.
Section
99F.12,
subsection
2,
Code
2019,
is
amended
23
to
read
as
follows:
24
2.
a.
The
licensee
shall
furnish
to
the
commission
reports
25
and
information
as
the
commission
may
require
with
respect
to
26
the
licensee’s
activities.
27
b.
A
licensee
under
section
99F.7A
shall
promptly
report
28
to
the
commission
any
criminal
or
disciplinary
proceedings
29
commenced
against
the
licensee
or
its
employees
in
connection
30
with
the
licensee
conducting
sports
betting
including
advance
31
deposit
sports
betting
wagering,
any
abnormal
wagering
activity
32
or
patterns
that
may
indicate
a
concern
about
the
integrity
33
of
an
authorized
sporting
event
or
events,
and
any
other
34
conduct
with
the
potential
to
corrupt
a
wagering
outcome
of
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an
authorized
sporting
event
for
purposes
of
financial
gain,
1
including
but
not
limited
to
match
fixing,
and
suspicious
or
2
illegal
wagering
activities,
including
the
use
of
funds
derived
3
from
illegal
activity,
wagers
to
conceal
or
launder
funds
4
derived
from
illegal
activity,
use
of
agents
to
place
wagers,
5
or
use
of
false
identification.
The
commission
is
required
to
6
share
any
information
received
pursuant
to
this
paragraph
with
7
any
law
enforcement
entity,
sports
team,
sports
governing
body,
8
or
regulatory
agency
the
commission
deems
appropriate.
9
c.
The
gross
receipts
and
adjusted
gross
receipts
from
10
gambling
shall
be
separately
handled
and
accounted
for
from
11
all
other
moneys
received
from
operation
of
an
excursion
12
gambling
boat
or
from
operation
of
a
racetrack
enclosure
or
13
gambling
structure
licensed
to
conduct
gambling
games.
The
14
commission
may
designate
a
representative
to
board
a
licensed
15
excursion
gambling
boat
or
to
enter
a
racetrack
enclosure
or
16
gambling
structure
licensed
to
conduct
gambling
games.
The
17
representative
shall
have
full
access
to
all
places
within
the
18
enclosure
of
the
boat,
the
gambling
structure,
or
the
racetrack
19
enclosure
and
shall
directly
supervise
the
handling
and
20
accounting
of
all
gross
receipts
and
adjusted
gross
receipts
21
from
gambling.
The
representative
shall
supervise
and
check
22
the
admissions.
The
compensation
of
a
representative
shall
be
23
fixed
by
the
commission
but
shall
be
paid
by
the
licensee.
24
Sec.
16.
Section
99F.15,
subsection
1,
paragraph
c,
Code
25
2019,
is
amended
to
read
as
follows:
26
c.
Acting,
or
employing
a
person
to
act,
as
a
shill
or
27
decoy
to
encourage
participation
in
a
gambling
game
or
sports
28
betting
.
29
Sec.
17.
Section
99F.15,
subsection
4,
paragraphs
d,
h,
and
30
i,
Code
2019,
are
amended
to
read
as
follows:
31
d.
Cheats
at
a
gambling
game,
including
but
not
limited
to
32
committing
any
act
which
alters
the
outcome
of
the
game
,
or
33
cheats
at
sports
betting
.
34
h.
Claims,
collects,
or
takes,
or
attempts
to
claim,
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648
collect,
or
take,
money
or
anything
of
value
in
or
from
the
1
gambling
games
or
sports
betting
,
with
intent
to
defraud,
2
without
having
made
a
wager
contingent
on
winning
a
gambling
3
game
or
sports
betting
wager
,
or
claims,
collects,
or
takes
an
4
amount
of
money
or
thing
of
value
of
greater
value
than
the
5
amount
won.
6
i.
Knowingly
entices
or
induces
a
person
to
go
to
any
place
7
where
a
gambling
game
or
sports
betting
is
being
conducted
or
8
operated
in
violation
of
the
provisions
of
this
chapter
with
9
the
intent
that
the
other
person
plays
or
participates
in
that
10
gambling
game
or
sports
betting
.
11
Sec.
18.
Section
99F.20,
subsection
1,
Code
2019,
is
amended
12
to
read
as
follows:
13
1.
A
gaming
regulatory
revolving
fund
is
created
in
14
the
state
treasury
under
the
control
of
the
department
of
15
inspections
and
appeals.
The
fund
shall
consist
of
fees
16
collected
and
deposited
into
the
fund
paid
by
licensees
17
pursuant
to
section
99D.14,
subsection
2
,
paragraph
“c”
,
fees
18
paid
by
licensees
pursuant
to
section
99E.5,
subsection
5,
19
paragraph
“c”
,
regulatory
fees
paid
by
licensees
pursuant
20
to
section
99F.4,
subsection
27,
and
fees
paid
by
licensees
21
pursuant
to
section
99F.10,
subsection
4
,
paragraph
“c”
.
All
22
costs
relating
to
racetrack,
excursion
boat,
and
gambling
23
structure
regulation
shall
be
paid
from
the
fund
as
provided
in
24
appropriations
made
for
this
purpose
by
the
general
assembly.
25
The
department
shall
provide
quarterly
reports
to
the
26
department
of
management
and
the
legislative
services
agency
27
specifying
revenues
billed
and
collected
and
expenditures
28
from
the
fund
in
a
format
as
determined
by
the
department
29
of
management
in
consultation
with
the
legislative
services
30
agency.
31
Sec.
19.
EMERGENCY
RULES.
The
state
racing
and
gaming
32
commission
created
under
section
99D.5
may
adopt
emergency
33
rules
under
section
17A.4,
subsection
3,
and
section
17A.5,
34
subsection
2,
paragraph
“b”,
to
implement
the
provisions
of
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648
this
division
of
this
Act
and
the
rules
shall
be
effective
1
immediately
upon
filing
unless
a
later
date
is
specified
in
the
2
rules.
Any
rules
adopted
in
accordance
with
this
section
shall
3
also
be
published
as
a
notice
of
intended
action
as
provided
4
in
section
17A.4.
5
Sec.
20.
IMPLEMENTATION.
The
racing
and
gaming
commission
6
shall
not
implement
this
division
of
this
Act
until
the
date
7
the
commission
has
adopted
rules
pursuant
to
chapter
17A
8
providing
for
such
implementation
and
such
rules
have
become
9
effective.
10
Sec.
21.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
11
deemed
of
immediate
importance,
takes
effect
upon
enactment.
12
DIVISION
II
13
INTERNET
FANTASY
SPORTS
CONTESTS
14
Sec.
22.
Section
80.25A,
Code
2019,
is
amended
to
read
as
15
follows:
16
80.25A
Pari-mutuel
and
gambling
game
Gaming
operations
——
17
investigation
and
enforcement.
18
The
commissioner
of
public
safety
shall
direct
the
chief
19
of
the
division
of
criminal
investigation
to
establish
a
20
subdivision
to
be
the
primary
criminal
investigative
and
21
enforcement
agency
for
the
purpose
of
enforcement
of
chapters
22
99D
,
99E,
and
99F
.
The
commissioner
of
public
safety
shall
23
appoint
or
assign
other
agents
to
the
division
as
necessary
to
24
enforce
chapters
99D
,
99E,
and
99F
.
All
enforcement
officers,
25
assistants,
and
agents
of
the
division
are
subject
to
section
26
80.15
except
clerical
workers.
27
Sec.
23.
NEW
SECTION
.
99E.1
Definitions.
28
As
used
in
this
chapter,
unless
the
context
otherwise
29
requires:
30
1.
“Applicant”
means
an
internet
fantasy
sports
contest
31
service
provider
applying
for
a
license
to
conduct
internet
32
fantasy
sports
contests
under
this
chapter.
33
2.
“Commission”
means
the
state
racing
and
gaming
commission
34
created
under
section
99D.5.
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3.
“Fantasy
sports
contest”
includes
any
fantasy
or
1
simulated
game
or
contest
in
which
the
fantasy
sports
contest
2
operator
is
not
a
participant
in
the
game
or
contest,
the
value
3
of
all
prizes
and
awards
offered
to
winning
participants
are
4
established
and
made
known
to
the
participants
in
advance
5
of
the
contest,
all
winning
outcomes
reflect
the
relative
6
knowledge
and
skill
of
the
participants
and
shall
be
determined
7
by
accumulated
statistical
results
of
the
performance
of
8
individuals,
including
athletes
in
the
case
of
sporting
events,
9
and
no
winning
outcome
is
based
on
the
score,
point
spread,
or
10
any
performance
or
performances
of
any
single
actual
team
or
11
solely
on
any
single
performance
of
an
individual
athlete
or
12
player
in
any
single
actual
event.
13
4.
“Internet
fantasy
sports
contest”
means
a
method
of
14
entering
a
fantasy
sports
contest
by
which
a
person
may
15
establish
an
account
with
an
internet
fantasy
sports
contest
16
service
provider,
deposit
money
into
the
account,
and
use
17
the
account
balance
for
entering
a
fantasy
sports
contest
by
18
utilizing
electronic
communication.
19
5.
“Internet
fantasy
sports
contest
adjusted
revenues”
means,
20
for
each
internet
fantasy
sports
contest,
the
amount
equal
to
21
the
total
charges
and
fees
collected
from
all
participants
22
entering
the
internet
fantasy
sports
contest
less
winnings
paid
23
to
participants
in
the
contest,
multiplied
by
the
location
24
percentage.
25
6.
“Internet
fantasy
sports
contest
player”
means
a
person
26
who
is
at
least
twenty-one
years
of
age
and
participates
in
an
27
internet
fantasy
sports
contest
operated
by
an
internet
fantasy
28
sports
contest
service
provider.
29
7.
“Internet
fantasy
sports
contest
service
provider”
means
30
a
person,
including
a
licensee
under
chapter
99D
or
99F,
who
31
conducts
an
internet
fantasy
sports
contest
as
authorized
by
32
this
chapter.
33
8.
“Licensee”
means
any
person
licensed
under
section
99E.5
34
to
conduct
internet
fantasy
sports
contests.
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9.
“Location
percentage”
means,
for
each
internet
fantasy
1
sports
contest,
the
percentage,
rounded
to
the
nearest
tenth
of
2
a
percent,
equal
to
the
total
charges
and
fees
collected
from
3
all
internet
fantasy
sports
contest
players
located
in
this
4
state
divided
by
the
total
charges
and
fees
collected
from
all
5
participants
in
the
internet
fantasy
sports
contest.
6
Sec.
24.
NEW
SECTION
.
99E.2
Internet
fantasy
sports
7
contests
authorized.
8
The
system
of
entering
an
internet
fantasy
sports
contest
as
9
provided
by
this
chapter
is
legal
when
conducted
by
a
licensed
10
internet
fantasy
sports
contest
service
provider
as
provided
in
11
this
chapter.
12
Sec.
25.
NEW
SECTION
.
99E.3
Commission
——
powers.
13
1.
The
commission
shall
have
full
jurisdiction
over
and
14
shall
supervise
internet
fantasy
sports
contests
and
internet
15
fantasy
sports
contest
service
providers
as
governed
by
this
16
chapter.
17
2.
The
commission
shall
have
the
following
powers
and
shall
18
adopt
rules
pursuant
to
chapter
17A
to
administer
and
implement
19
this
chapter:
20
a.
To
review
and
investigate
applicants
and
determine
the
21
eligibility
of
applicants
for
a
license
to
conduct
internet
22
fantasy
sports
contests,
pursuant
to
rules
adopted
by
the
23
commission.
24
b.
To
license
and
regulate
internet
fantasy
sports
contest
25
service
providers
subject
to
the
requirements
of
this
chapter.
26
c.
To
provide
for
the
prevention
of
practices
detrimental
to
27
the
public
and
to
provide
for
the
best
interests
of
internet
28
fantasy
sports
contests.
29
d.
To
investigate
alleged
violations
of
this
chapter
30
or
the
commission
rules,
orders,
or
final
decisions
and
to
31
take
appropriate
disciplinary
action
against
a
licensee,
or
32
institute
appropriate
legal
action
for
enforcement,
or
both.
33
Information
gathered
during
an
investigation
is
confidential
34
during
the
pendency
of
the
investigation.
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e.
To
assess
fines
and
revoke
or
suspend
licenses
and
to
1
impose
penalties
for
violations
of
this
chapter.
2
f.
To
take
any
other
action
as
may
be
reasonable
or
3
appropriate
to
enforce
this
chapter
and
the
commission
rules.
4
Sec.
26.
NEW
SECTION
.
99E.4
Requirements
of
applicant
——
5
fee.
6
1.
An
applicant
for
a
license
to
conduct
internet
fantasy
7
sports
contests
shall
complete
and
sign
an
application
on
8
the
form
prescribed
and
published
by
the
commission.
The
9
application
shall
include
such
information
of
the
applicant
10
that
the
commission
deems
necessary
for
purposes
of
issuing
a
11
license
pursuant
to
this
chapter.
12
2.
An
applicant
shall
submit
fingerprints
and
information
13
that
the
commission
deems
necessary
to
the
commission
in
the
14
manner
prescribed
on
the
application
forms.
The
fingerprints
15
may
be
submitted
to
the
federal
bureau
of
investigation
by
16
the
department
of
public
safety
through
the
state
criminal
17
history
repository
for
the
purpose
of
a
national
criminal
18
history
check.
The
results
of
a
criminal
history
record
check
19
conducted
pursuant
to
this
subsection
shall
be
considered
a
20
confidential
record
under
chapter
22.
21
3.
Before
a
license
is
granted,
the
division
of
criminal
22
investigation
of
the
department
of
public
safety
shall
conduct
23
a
thorough
background
investigation
of
the
applicant
for
a
24
license
to
conduct
internet
fantasy
sports
contests.
The
25
applicant
shall
provide
information
on
a
form
as
required
by
26
the
division
of
criminal
investigation.
27
4.
The
commission
shall
charge
the
applicant
a
reasonable
28
fee
set
by
the
division
of
criminal
investigation
of
the
29
department
of
public
safety,
to
defray
those
costs
associated
30
with
the
fingerprint
and
national
criminal
history
check
31
requirements
of
subsection
2
and
background
investigations
32
conducted
by
agents
of
the
division
of
criminal
investigation
33
as
provided
in
subsection
3.
These
fees
and
costs
are
in
34
addition
to
any
other
license
fees
and
costs
charged
by
the
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commission.
1
5.
The
commission
shall
not
grant
a
license
to
an
applicant
2
if
there
is
substantial
evidence
that
any
of
the
following
3
apply:
4
a.
A
license
issued
to
the
applicant
to
conduct
internet
5
fantasy
sports
contests
in
another
jurisdiction
has
been
6
revoked,
or
a
request
for
a
license
to
conduct
internet
fantasy
7
sports
contests
in
another
jurisdiction
has
been
denied,
by
8
an
entity
licensing
persons
to
conduct
such
contests
in
that
9
jurisdiction.
10
b.
The
applicant
has
not
demonstrated
financial
11
responsibility
sufficient
to
adequately
meet
the
requirements
12
of
the
enterprise
proposed.
13
c.
The
applicant
does
not
adequately
disclose
the
true
14
owners
of
the
enterprise
proposed.
15
d.
The
applicant
has
knowingly
made
a
false
statement
of
a
16
material
fact
to
the
commission.
17
e.
The
applicant
has
failed
to
meet
a
monetary
obligation
in
18
connection
with
conducting
an
internet
fantasy
sports
contest.
19
f.
The
applicant
is
not
of
good
repute
and
moral
character
20
or
the
applicant
has
pled
guilty
to,
or
has
been
convicted
of,
21
a
felony.
22
g.
Any
member
of
the
board
of
directors
of
the
applicant
is
23
not
twenty-one
years
of
age
or
older.
24
6.
A
person
who
knowingly
makes
a
false
statement
on
the
25
application
is
guilty
of
an
aggravated
misdemeanor.
26
7.
For
the
purposes
of
this
section,
“applicant”
includes
27
each
member
of
the
board
of
directors
of
an
internet
fantasy
28
sports
contest
service
provider.
29
Sec.
27.
NEW
SECTION
.
99E.5
Licenses
——
fees
——
terms
and
30
conditions
——
revocation.
31
1.
If
the
commission
is
satisfied
that
the
requirements
32
of
this
chapter
and
its
rules
adopted
under
this
chapter
33
applicable
to
licensees
have
been
or
will
be
complied
with,
the
34
commission
shall,
upon
payment
of
an
initial
annual
license
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fee
of
five
thousand
dollars,
issue
a
license
for
a
period
of
1
not
more
than
three
years
to
an
applicant
to
conduct
internet
2
fantasy
sports
contests
in
this
state.
3
2.
A
licensee
under
this
section
shall
establish,
subject
to
4
commission
approval,
internet
fantasy
sports
contest
rules
that
5
specify
the
prizes
and
awards
offered
to
winning
participants
6
in
an
internet
fantasy
sports
contest,
the
effect
of
changes
7
in
the
scheduling
of
an
event
subject
to
an
internet
fantasy
8
sports
contest,
and
the
source
of
the
information
used
to
9
determine
the
outcome
of
an
internet
fantasy
sports
contest.
10
The
internet
fantasy
sports
contest
rules
shall
be
displayed
on
11
the
internet
site
or
mobile
application
used
by
the
licensee
12
to
conduct
internet
fantasy
sports
contests
and
included
in
13
the
terms
and
conditions
of
the
licensee’s
system
to
conduct
14
internet
fantasy
sports
contests.
15
3.
A
licensed
internet
fantasy
sports
contest
service
16
provider
shall
use
commercially
reasonable
methods
to
comply
17
with
all
of
the
following
requirements:
18
a.
Prevent
employees
of
the
internet
fantasy
sports
contest
19
service
provider
and
relatives
living
in
the
same
household
of
20
such
employees
from
competing
in
any
internet
fantasy
sports
21
contest
on
the
service
provider’s
digital
platform
in
which
the
22
service
provider
offers
a
cash
prize
to
the
public.
23
b.
Verify
that
an
internet
fantasy
sports
contest
player
24
located
in
this
state
is
twenty-one
years
of
age
or
older.
25
c.
Ensure
that
coaches,
officials,
players,
contestants,
26
or
other
individuals
who
participate
in
a
game
or
contest
27
that
is
the
subject
of
an
internet
fantasy
sports
contest
are
28
restricted
from
entering
an
internet
fantasy
sports
contest
in
29
which
the
outcome
is
determined,
in
whole
or
in
part,
by
the
30
accumulated
statistical
results
of
a
team
of
individuals
in
the
31
game
or
contest
in
which
they
participate.
32
d.
Allow
individuals
to
restrict
themselves
from
entering
33
an
internet
fantasy
sports
contest
conducted
by
the
internet
34
fantasy
sports
contest
service
provider
upon
request
and
take
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reasonable
steps
to
prevent
those
individuals
from
entering
1
any
internet
fantasy
sports
contests
conducted
by
the
internet
2
fantasy
sports
contest
service
provider.
3
e.
Allow
individuals
to
establish
an
account
with
an
4
internet
fantasy
sports
contest
service
provider
by
utilizing
5
electronic
communication.
6
f.
Disclose
the
number
of
entries
a
single
internet
fantasy
7
sports
contest
player
may
submit
to
each
internet
fantasy
8
sports
contest
and
take
reasonable
steps
to
prevent
players
9
from
submitting
more
than
the
allowable
number
of
entries
for
10
that
internet
fantasy
sports
contest.
11
g.
Segregate
internet
fantasy
sports
contest
player
funds
12
from
operational
funds
or
maintain
a
reserve
in
the
form
of
13
cash,
cash
equivalents,
an
irrevocable
letter
of
credit,
14
payment
processor
reserves
and
receivables,
a
bond,
or
a
15
combination
thereof
in
the
amount
of
the
deposits
in
internet
16
fantasy
sports
contest
player
accounts
for
the
benefit
and
17
protection
of
internet
fantasy
sports
contest
player
funds
held
18
in
internet
fantasy
sports
contest
accounts
by
the
internet
19
fantasy
sports
contest
service
provider.
20
h.
Conduct
an
annual
audit
under
section
99E.9.
21
i.
Pay
the
tax
as
provided
in
section
99E.6.
22
4.
The
annual
renewal
fee
for
a
license
to
conduct
internet
23
fantasy
sports
contests
shall
be
five
thousand
dollars.
Moneys
24
collected
by
the
commission
from
the
annual
renewal
fee
for
25
a
license
paid
under
this
subsection
shall
be
considered
26
repayment
receipts
as
defined
in
section
8.2.
27
5.
a.
A
licensed
internet
fantasy
sports
contest
service
28
provider
shall
pay
a
regulatory
fee
to
the
commission.
The
29
regulatory
fee
shall
be
established
by
the
commission
based
on
30
the
costs
of
administering
and
enforcing
this
chapter.
31
b.
A
licensed
internet
fantasy
sports
contest
service
32
provider
shall
receive
a
credit
for
the
amount
of
the
33
regulatory
fee
paid
by
the
provider
against
the
taxes
to
be
34
paid
pursuant
to
section
99E.6.
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c.
Notwithstanding
section
8.60,
the
portion
of
the
fee
1
paid
pursuant
to
paragraph
“a”
relating
to
the
costs
of
the
2
commission
shall
be
deposited
into
the
gaming
regulatory
3
revolving
fund
established
in
section
99F.20.
4
6.
Upon
a
violation
of
any
of
the
conditions
listed
in
5
section
99E.4
or
this
section
by
a
licensee,
the
commission
6
shall
immediately
revoke
the
license.
7
Sec.
28.
NEW
SECTION
.
99E.6
Internet
fantasy
sports
contest
8
tax
——
rate.
9
A
tax
is
imposed
on
internet
fantasy
sports
contest
adjusted
10
revenues
received
each
fiscal
year
by
an
internet
fantasy
11
sports
contest
service
provider
from
internet
fantasy
sports
12
contests
authorized
under
this
chapter
at
the
rate
of
six
and
13
three-quarters
percent.
The
taxes
imposed
by
this
section
14
for
internet
fantasy
sports
contests
authorized
under
this
15
chapter
shall
be
paid
by
the
internet
fantasy
sports
contest
16
service
provider
to
the
treasurer
of
state
as
determined
by
the
17
commission
and
shall
be
credited
as
provided
in
section
8.57,
18
subsection
5.
19
Sec.
29.
NEW
SECTION
.
99E.7
Internet
fantasy
sports
20
contests
——
age
restrictions.
21
A
person
under
the
age
of
twenty-one
years
shall
not
enter
an
22
internet
fantasy
sports
contest.
A
person
who
violates
this
23
section
with
respect
to
entering
an
internet
fantasy
sports
24
contest
commits
a
scheduled
violation
under
section
805.8C,
25
subsection
12.
26
Sec.
30.
NEW
SECTION
.
99E.8
Licensees
——
records
——
reports
27
——
confidentiality.
28
1.
An
internet
fantasy
sports
contest
service
provider
29
shall
keep
its
books
and
records
so
as
to
clearly
show
the
30
internet
fantasy
sports
contest
adjusted
revenues
for
each
31
internet
fantasy
sports
contest
subject
to
tax
in
this
state.
32
2.
a.
The
licensee
shall
furnish
to
the
commission
reports
33
and
information
as
the
commission
may
require
with
respect
to
34
the
licensee’s
activities.
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b.
A
licensee
shall
promptly
report
to
the
commission
any
1
criminal
or
disciplinary
proceedings
commenced
against
the
2
licensee
or
its
employees
in
connection
with
the
licensee
3
conducting
an
internet
fantasy
sports
contest,
any
abnormal
4
contest
activity
or
patterns
that
may
indicate
a
concern
about
5
the
integrity
of
an
internet
fantasy
sports
contest,
and
any
6
other
conduct
with
the
potential
to
corrupt
an
outcome
of
an
7
internet
fantasy
sports
contest
for
purposes
of
financial
gain,
8
including
but
not
limited
to
match
fixing,
and
suspicious
or
9
illegal
internet
fantasy
sports
contest
activities,
including
10
the
use
of
funds
derived
from
illegal
activity,
deposits
of
11
money
to
enter
an
internet
fantasy
sports
contest
to
conceal
12
or
launder
funds
derived
from
illegal
activity,
use
of
agents
13
to
enter
an
internet
fantasy
sports
contest,
or
use
of
false
14
identification.
The
commission
is
authorized
to
share
any
15
information
received
pursuant
to
this
paragraph
with
any
law
16
enforcement
entity,
sports
team,
sports
governing
body,
or
17
regulatory
agency
the
commission
deems
appropriate.
18
3.
Except
as
provided
in
subsection
4,
the
books
and
records
19
kept
by
a
licensee
as
provided
by
this
section
are
public
20
records
and
the
examination,
publication,
and
dissemination
of
21
the
books
and
records
are
governed
by
the
provisions
of
chapter
22
22.
23
4.
The
records
of
the
commission
shall
be
governed
by
the
24
provisions
of
chapter
22,
provided
that,
in
addition
to
records
25
that
may
be
kept
confidential
pursuant
to
section
22.7,
the
26
following
records
provided
by
a
licensee
to
the
commission
27
shall
be
kept
confidential,
unless
otherwise
ordered
by
a
28
court,
by
the
lawful
custodian
of
the
records,
or
by
another
29
person
duly
authorized
to
release
such
information:
30
a.
Patron
and
customer
records.
31
b.
Security
reports
and
network
audits.
32
c.
Internal
control
and
compliance
records.
33
d.
Employee
records.
34
e.
Marketing
expenses.
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f.
Supplemental
schedules
to
the
certified
audit,
except
for
1
those
books
and
records
as
described
in
subsection
1
of
this
2
section,
that
are
obtained
by
the
commission
in
connection
with
3
the
annual
audit
under
section
99E.9.
4
g.
Any
information
specifically
requested
for
inspection
by
5
the
commission
or
a
representative
of
the
commission.
6
Sec.
31.
NEW
SECTION
.
99E.9
Annual
audit
of
licensee
7
operations.
8
Within
ninety
days
after
the
end
of
the
licensee’s
fiscal
9
year,
the
licensee
shall
transmit
to
the
commission
an
audit
10
of
the
licensee’s
total
gambling
operations,
including
an
11
itemization
of
all
expenses
and
subsidies.
Each
audit
shall
12
be
conducted
by
a
certified
public
accountant
authorized
to
13
practice
in
the
state
of
Iowa
under
chapter
542
who
is
selected
14
by
the
licensee
and
approved
by
the
commission.
15
Sec.
32.
NEW
SECTION
.
99E.10
Civil
penalty.
16
A
person
who
willfully
fails
to
comply
with
the
requirements
17
of
this
chapter
and
the
rules
adopted
pursuant
to
chapter
17A
18
under
this
chapter
shall
be
liable
for
a
civil
penalty
of
19
not
more
than
one
thousand
dollars
for
each
violation,
not
20
to
exceed
ten
thousand
dollars
for
violations
arising
out
of
21
the
same
transaction
or
occurrence,
which
shall
accrue
to
the
22
state
and
may
be
recovered
in
a
civil
action
brought
by
the
23
commission.
24
Sec.
33.
Section
99F.2,
Code
2019,
is
amended
to
read
as
25
follows:
26
99F.2
Scope
of
provisions.
27
This
chapter
does
not
apply
to
the
pari-mutuel
system
of
28
wagering
used
or
intended
to
be
used
in
connection
with
the
29
horse-race
or
dog-race
meetings
as
authorized
under
chapter
30
99D
,
internet
fantasy
sports
contests
authorized
under
chapter
31
99E,
lottery
or
lotto
games
authorized
under
chapter
99G
,
or
32
bingo
or
games
of
skill
or
chance
authorized
under
chapter
99B
.
33
Sec.
34.
Section
99F.4B,
Code
2019,
is
amended
to
read
as
34
follows:
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99F.4B
Rules.
1
The
department
of
inspections
and
appeals
shall
cooperate
2
to
the
maximum
extent
possible
with
the
division
of
criminal
3
investigation
in
adopting
rules
relating
to
the
gaming
4
operations
in
this
chapter
and
chapter
chapters
99D
and
99E
.
5
Sec.
35.
Section
232C.4,
subsection
3,
Code
2019,
is
amended
6
to
read
as
follows:
7
3.
An
emancipated
minor
shall
remain
subject
to
voting
8
restrictions
under
chapter
48A
,
gambling
restrictions
under
9
chapter
99B
,
99D
,
99F
,
99G
,
or
725
,
internet
fantasy
sports
10
contest
restrictions
under
chapter
99E,
alcohol
restrictions
11
under
chapter
123
,
compulsory
attendance
requirements
under
12
chapter
299
,
and
cigarette
tobacco
restrictions
under
chapter
13
453A
.
14
Sec.
36.
Section
714B.10,
subsection
1,
Code
2019,
is
15
amended
to
read
as
follows:
16
1.
Advertising
by
sponsors
registered
pursuant
to
chapter
17
557B
,
licensed
pursuant
to
chapter
99B
,
or
regulated
pursuant
18
to
chapter
99D
,
99E,
99F
,
or
99G
.
19
Sec.
37.
Section
725.15,
Code
2019,
is
amended
to
read
as
20
follows:
21
725.15
Exceptions
for
legal
gambling.
22
Sections
725.5
through
725.10
and
725.12
do
not
apply
to
23
a
game,
activity,
ticket,
or
device
when
lawfully
possessed,
24
used,
conducted,
or
participated
in
pursuant
to
chapter
99B
,
25
99E,
99F
,
or
99G
.
26
Sec.
38.
Section
805.8C,
Code
2019,
is
amended
by
adding
the
27
following
new
subsection:
28
NEW
SUBSECTION
.
12.
Internet
fantasy
sports
contest
29
violations.
For
violations
of
legal
age
for
entering
an
30
internet
fantasy
sports
contest
under
section
99E.7,
the
31
scheduled
fine
is
five
hundred
dollars.
Failure
to
pay
the
32
fine
by
a
person
under
the
age
of
eighteen
shall
not
result
in
33
the
person
being
detained
in
a
secure
facility.
34
Sec.
39.
TRANSITIONAL
LICENSE.
Notwithstanding
any
35
-21-
LSB
2452HV
(3)
88
ec/rn
21/
31
H.F.
648
provisions
of
chapter
99E
as
enacted
by
this
Act
to
the
1
contrary,
a
person
granted
a
license
or
registration
by
two
or
2
more
states
to
conduct
internet
fantasy
sports
contests
may
3
apply
for
and
shall
be
granted
a
transitional
license
by
the
4
racing
and
gaming
commission
to
conduct
internet
fantasy
sports
5
contests
in
this
state
subject
to
the
requirements
of
chapter
6
99E,
as
enacted
by
this
Act.
The
transitional
license
shall
7
be
valid
until
the
earlier
of
the
date
the
racing
and
gaming
8
commission
grants
or
denies
a
license
under
section
99E.5
to
9
the
person
to
conduct
internet
fantasy
sports
contests,
or
10
twelve
months
from
the
date
the
racing
and
gaming
commission
11
accepts
applications
for
issuance
of
a
license
to
conduct
12
internet
fantasy
sports
contests
under
section
99E.5.
13
Sec.
40.
EMERGENCY
RULES.
The
state
racing
and
gaming
14
commission
created
under
section
99D.5
may
adopt
emergency
15
rules
under
section
17A.4,
subsection
3,
and
section
17A.5,
16
subsection
2,
paragraph
“b”,
to
implement
the
provisions
of
17
this
division
of
this
Act
and
the
rules
shall
be
effective
18
immediately
upon
filing
unless
a
later
date
is
specified
in
the
19
rules.
Any
rules
adopted
in
accordance
with
this
section
shall
20
also
be
published
as
a
notice
of
intended
action
as
provided
21
in
section
17A.4.
22
Sec.
41.
IMPLEMENTATION.
The
racing
and
gaming
commission
23
shall
not
implement
this
division
of
this
Act
until
the
date
24
the
commission
has
adopted
rules
pursuant
to
chapter
17A
25
providing
for
such
implementation
and
such
rules
have
become
26
effective.
27
Sec.
42.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
28
deemed
of
immediate
importance,
takes
effect
upon
enactment.
29
DIVISION
III
30
SOCIAL
SPORTS
GAMBLING
31
Sec.
43.
Section
99B.41,
Code
2019,
is
amended
by
adding
the
32
following
new
subsection:
33
NEW
SUBSECTION
.
1A.
“Social
fantasy
sports
contest”
means
34
any
fantasy
or
simulated
game
or
contest
in
which
the
value
35
-22-
LSB
2452HV
(3)
88
ec/rn
22/
31
H.F.
648
of
all
prizes
and
awards
offered
to
winning
participants
are
1
established
and
made
known
to
the
participants
in
advance
of
2
the
contest
and
do
not
exceed
a
total
of
one
thousand
dollars
3
or
equivalent
consideration,
all
winning
outcomes
reflect
4
the
relative
knowledge
and
skill
of
the
participants
and
5
shall
be
determined
by
accumulated
statistical
results
of
6
the
performance
of
individuals
in
events
occurring
over
more
7
than
a
twenty-four-hour
period,
including
athletes
in
the
case
8
of
sporting
events,
and
no
winning
outcome
is
based
on
the
9
score,
point
spread,
or
any
performance
or
performances
of
10
any
single
actual
team
or
solely
on
any
single
performance
of
11
an
individual
athlete
or
player
in
any
single
actual
event.
12
“Social
fantasy
sports
contest”
does
not
include
an
internet
13
fantasy
sports
contest
as
defined
in
section
99E.1.
14
Sec.
44.
Section
99B.45,
subsection
2,
Code
2019,
is
amended
15
by
adding
the
following
new
paragraph:
16
NEW
PARAGRAPH
.
c.
A
social
fantasy
sports
contest.
17
EXPLANATION
18
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
19
the
explanation’s
substance
by
the
members
of
the
general
assembly.
20
This
bill
authorizes
sports
gambling
and
wagering,
including
21
sports
betting
and
fantasy
sports
contests.
22
LICENSED
SPORTS
BETTING.
This
division
authorizes
and
23
licenses
sports
betting.
24
Code
section
99F.1,
concerning
definitions,
is
amended.
The
25
bill
defines
“sports
betting”
as
wagering
on
an
authorized
26
sporting
event
by
any
system
of
wagering
as
authorized
by
27
the
racing
and
gaming
commission
(commission)
and
defines
28
“authorized
sporting
event”
to
include
professional
and
29
collegiate
sporting
events
and
international
team
and
30
individual
sporting
events
governed
by
the
international
31
olympic
committee
in
which
no
participant
is
under
18
years
32
of
age.
The
definition
of
“licensee”
is
amended
to
include
a
33
person
licensed
to
conduct
sports
betting.
The
bill
defines
34
“sports
betting
net
receipts”
as
gross
receipts
less
winnings
35
-23-
LSB
2452HV
(3)
88
ec/rn
23/
31
H.F.
648
paid
to
wagerers
on
sports
betting.
“Sports
betting
wagering
1
area”
is
defined
as
an
area,
as
designated
by
the
commission,
2
in
which
sports
betting
is
conducted.
3
Code
sections
99D.7(23)
and
99F.4(22),
concerning
persons
4
voluntarily
excluded
from
wagering
or
gaming
areas,
are
amended
5
to
include
internet
fantasy
sports
contests,
advance
deposits
6
wagering,
advance
deposit
sports
betting
wagering,
and
the
7
sports
betting
wagering
area.
8
Code
section
99F.3,
concerning
authorized
wagering
under
9
Code
chapter
99F,
is
amended
to
authorize
sports
betting.
10
Code
section
99F.4,
concerning
racing
and
gaming
commission
11
powers,
is
amended
to
authorize
the
operation
of
sports
betting
12
in
a
sports
betting
wagering
area
on
an
excursion
gambling
13
boat
which
is
also
licensed
to
serve
alcoholic
beverages
and
14
grants
the
racing
and
gaming
commission
the
authority
to
adopt
15
standards
under
which
sports
betting
is
conducted
including
16
the
scope
and
type
of
wagers
allowed.
The
bill
provides
that
17
revenue
received
by
the
commission
from
license
fees
for
sports
18
betting
shall
be
deposited
in
the
general
fund
of
the
state
19
and
revenue
received
by
the
commission
from
regulatory
fees
20
shall
be
deposited
into
the
gaming
regulatory
revolving
fund
21
established
in
Code
section
99F.20.
22
New
Code
section
99F.7A
provides
specific
requirements
23
relative
to
the
licensing,
operation,
and
fees
applicable
to
24
sports
betting.
25
The
bill
provides
that
the
commission
shall,
upon
payment
26
of
an
initial
license
fee
of
$15,000,
issue
a
license
to
27
conduct
sports
betting
to
a
licensee
authorized
to
conduct
28
gambling
games
at
a
pari-mutuel
racetrack
enclosure
or
a
29
licensee
authorized
to
operate
an
excursion
gambling
boat
or
30
gambling
structure.
The
bill
provides
that
the
annual
renewal
31
fee
for
a
license
shall
also
be
$15,000.
The
bill
provides
32
that
a
licensee
establish,
and
display
and
post,
sports
33
betting
wagering
rules
specifying
the
amounts
to
be
paid
on
34
winning
wagers,
the
effect
of
changes
in
the
scheduling
of
an
35
-24-
LSB
2452HV
(3)
88
ec/rn
24/
31
H.F.
648
authorized
sporting
event,
and
the
source
of
information
used
1
to
determine
the
outcome
of
a
wager.
The
new
Code
section
also
2
provides
that
a
licensee
shall
include
on
the
internet
site
3
or
mobile
application
used
by
the
licensee
to
conduct
advance
4
deposit
sports
betting
wagering
the
statewide
telephone
number
5
authorized
by
the
Iowa
department
of
public
health
to
provide
6
problem
gambling
information
and
extensive
responsible
gaming
7
features.
The
bill
also
provides
that
a
licensee
issued
a
8
license
to
conduct
sports
betting
shall
employ
commercially
9
reasonable
steps
to
prohibit
coaches,
athletic
trainers,
10
officials,
players,
participants,
or
other
persons
employed
in
11
a
position
with
direct
involvement
with
such
individuals
from
12
sports
betting
under
Code
chapter
99F.
13
Code
section
99F.8,
concerning
licensee
bonding
14
requirements,
is
amended
to
make
such
requirements
applicable
15
to
sports
betting.
16
Code
section
99F.9,
concerning
wagering
on
gambling
games,
17
is
amended
to
allow
the
commission
to
authorize
gambling
game
18
licensees
under
Code
chapter
99F
to
conduct
advance
deposit
19
sports
betting
wagering.
The
bill
also
allows
a
licensee
20
under
Code
section
99F.7A
to
enter
into
an
agreement
with
an
21
advance
deposit
sports
betting
wagering
operator
licensed
22
by
the
commission
to
provide
advance
deposit
sports
betting
23
wagering
for
the
licensee
and
allows
the
commission
to
require
24
the
advance
deposit
sports
betting
wagering
operator
to
25
conduct
an
audit.
The
bill
would
allow
for
an
advance
deposit
26
sports
betting
wager
to
be
placed
in
person
at
a
licensed
27
facility
authorized
to
conduct
gambling
games
or
from
any
other
28
location
by
telephone
or
other
electronic
means.
The
bill
29
defines
“advance
deposit
sports
betting
wagering”
as
a
form
30
of
wagering
where
an
eligible
individual
creates
an
account
31
with
a
licensee,
deposits
money
into
that
account,
and
can
32
use
the
balance
within
the
account
for
sports
betting.
The
33
bill
defines
an
“eligible
individual”
for
purposes
of
advance
34
deposit
sports
betting
wagering
as
an
individual
21
years
35
-25-
LSB
2452HV
(3)
88
ec/rn
25/
31
H.F.
648
of
age
or
older
who
is
located
within
this
state.
The
bill
1
provides
that
an
unlicensed
person
taking
sports
betting
wagers
2
from
Iowa
residents
is
guilty
of
a
class
“D”
felony,
punishable
3
by
confinement
for
no
more
than
five
years
and
a
fine
of
at
4
least
$750
but
not
more
than
$7,500.
The
Code
section
is
also
5
amended
to
provide
that
a
person
under
the
age
of
21
shall
6
not
make
or
attempt
to
make
a
wager
by
advance
deposit
sports
7
wagering.
8
Code
section
99F.11,
concerning
the
wagering
tax,
is
9
amended.
The
bill
provides
that
sports
betting
net
receipts
10
received
each
fiscal
year
by
a
licensed
operator
from
sports
11
betting
shall
be
taxed
at
the
rate
of
six
and
three-quarters
12
percent.
The
taxes
imposed
shall
be
paid
by
the
licensed
13
operator
to
the
treasurer
of
state
as
determined
by
the
14
commission
and
shall
be
credited
as
provided
in
Code
section
15
8.57,
subsection
5.
16
Code
section
99F.12,
concerning
certain
required
reports
17
and
records
of
licensees,
is
amended
to
provide
that
a
sports
18
betting
licensee
shall
promptly
report
to
the
commission
any
19
criminal
or
disciplinary
proceedings
commenced
against
the
20
licensee,
any
abnormal
sports
wagering
activity,
and
any
other
21
conduct
with
the
potential
to
corrupt
a
wagering
outcome
of
an
22
authorized
sporting
event.
The
bill
requires
the
commission
to
23
share
any
information
received
with
any
law
enforcement
entity,
24
sports
team,
sports
governing
body,
or
regulatory
agency
the
25
commission
deems
appropriate.
26
Code
section
99F.15,
concerning
certain
prohibited
27
activities
and
penalties,
is
amended
to
provide
that
current
28
prohibitions
on
cheating
at
a
gambling
game,
claiming
anything
29
of
value
from
a
gambling
game
with
intent
to
defraud,
and
30
knowingly
enticing
a
person
to
go
where
a
gambling
game
is
31
conducted
in
violation
of
Code
chapter
99F
also
applies
to
32
sports
betting.
33
Code
section
99F.20,
concerning
the
gaming
regulatory
34
revolving
fund,
is
amended
to
provide
that
regulatory
fees
35
-26-
LSB
2452HV
(3)
88
ec/rn
26/
31
H.F.
648
by
an
internet
fantasy
sports
contest
service
provider
and
1
by
a
licensee
authorized
to
conduct
sports
wagering
shall
be
2
deposited
in
the
fund.
3
This
division
of
the
bill
takes
effect
upon
enactment.
4
However,
the
bill
authorizes
the
racing
and
gaming
commission
5
to
adopt
emergency
rules
to
implement
the
bill
and
provides
6
that
the
racing
and
gaming
commission
shall
not
implement
7
this
division
of
the
bill
until
the
date
the
commission
has
8
adopted
rules
pursuant
to
Code
chapter
17A
providing
for
such
9
implementation
and
such
rules
have
become
effective.
10
INTERNET
FANTASY
SPORTS
CONTESTS.
This
division
of
the
bill
11
authorizes
internet
fantasy
sports
contests
and
provides
for
12
the
licensing,
regulation,
and
taxation
of
internet
fantasy
13
sports
contests.
14
Code
section
80.25,
concerning
gaming
investigation
and
15
enforcement
by
the
division
of
criminal
investigation
of
16
the
department
of
public
safety,
is
amended
to
provide
for
17
investigation
and
enforcement
concerning
the
new
Code
chapter.
18
New
Code
section
99E.1
provides
for
definitions.
A
“fantasy
19
sports
contest”
is
defined
as
any
fantasy
or
simulated
game
20
or
contest
in
which
all
prizes
and
awards
offered
to
winning
21
participants
are
established
and
made
known
in
advance
of
the
22
contest,
all
winning
outcomes
reflect
the
relative
knowledge
23
and
skill
of
the
participants
and
are
determined
predominantly
24
by
accumulated
statistical
results
of
the
performance
of
25
individuals,
and
no
winning
outcome
is
based
on
the
score,
or
26
performance
of
any
single
actual
team
or
combination
of
such
27
teams
or
solely
on
any
single
performance
of
an
individual
28
athlete
in
any
single
actual
sporting
or
other
event.
An
29
“internet
fantasy
sports
contest”
is
defined
as
a
method
of
30
entering
a
fantasy
sports
contest
by
establishing
an
account
31
with
an
internet
fantasy
sports
contest
service
provider.
An
32
“internet
fantasy
sports
contest
player”
is
defined
as
a
person
33
who
is
at
least
21
years
of
age
who
participates
in
an
internet
34
fantasy
sports
contest.
The
bill
also
defines
“internet
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fantasy
sports
contest
adjusted
revenues”,
“internet
fantasy
1
sports
contest
service
provider”,
“licensee”,
and
“location
2
percentage”.
3
New
Code
section
99E.2
provides
that
the
system
of
entering
4
an
internet
fantasy
sports
contest
is
legal
when
conducted
by
a
5
licensed
internet
fantasy
sports
contest
service
provider
as
6
provided
in
the
new
Code
chapter.
7
New
Code
section
99E.3
establishes
the
powers
of
the
racing
8
and
gaming
commission
in
relation
to
internet
fantasy
sports
9
contests
and
internet
fantasy
sports
contest
service
providers.
10
Specifically,
the
Code
section
authorizes
the
commission
11
to
investigate
and
license
internet
fantasy
sports
contest
12
service
providers,
assess
fines
and
revoke
or
suspend
licenses,
13
impose
penalties
for
violations
of
the
Code
chapter,
and
take
14
any
other
action
to
enforce
the
requirements
of
the
new
Code
15
chapter.
16
New
Code
section
99E.4
establishes
the
requirements
for
an
17
applicant
to
be
granted
a
license
to
conduct
internet
fantasy
18
sports
contests.
The
Code
section
allows
the
commission
19
to
charge
the
applicant
a
fee
for
the
department
of
public
20
safety,
division
of
criminal
investigation,
to
defray
the
21
costs
associated
with
any
investigation.
The
new
Code
22
section
provides
that
a
license
shall
not
be
issued
if
there
23
is
evidence
that
the
applicant
has
failed
to
meet
certain
24
qualifying
requirements.
The
Code
section
provides
that
a
25
person
who
knowingly
makes
a
false
statement
on
the
application
26
is
guilty
of
an
aggravated
misdemeanor.
27
New
Code
section
99E.5
establishes
the
terms
and
conditions
28
of
licenses
issued
to
conduct
internet
fantasy
sports
contests.
29
The
Code
section
provides
that
a
license
may
be
issued
for
30
a
period
of
not
more
than
three
years
and
provides
for
an
31
initial
and
annual
license
fee
of
$5,000.
The
Code
section
32
also
provides
for
the
payment
of
a
regulatory
fee
to
be
set
33
by
the
racing
and
gaming
commission
based
on
the
costs
of
34
administering
and
enforcing
the
new
Code
chapter.
The
Code
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section
provides
that
a
licensee
establish,
and
display
and
1
post,
internet
fantasy
sports
contest
rules
specifying
the
2
amounts
to
be
paid
to
winning
participants,
the
effect
of
3
changes
in
the
scheduling
of
an
event
subject
to
an
internet
4
fantasy
sports
contest,
and
the
source
of
information
used
to
5
determine
the
outcome
of
an
internet
fantasy
sports
contest.
6
The
Code
section
further
provides
that
each
licensee
shall
7
receive
a
credit
for
the
amount
of
the
regulatory
fee
paid
8
against
taxes
to
be
paid
pursuant
to
the
new
Code
chapter.
The
9
Code
section
provides
that
a
licensed
internet
fantasy
sports
10
contest
service
provider
shall
use
commercially
reasonable
11
methods
to
prevent
any
employees
and
certain
family
members
12
from
participating
in
internet
fantasy
sports
contests
on
the
13
service
provider’s
digital
platform,
verify
that
internet
14
fantasy
sports
contest
players
located
in
this
state
are
21
15
or
older,
ensure
that
participants
in
a
game
or
contest
shall
16
not
be
allowed
to
enter
an
internet
fantasy
sports
contest
17
involving
that
game
or
contest,
permit
individuals
to
establish
18
an
account
with
an
internet
fantasy
sports
contest
service
19
provider
by
electronic
communication
and
to
restrict
themselves
20
from
entering
an
internet
fantasy
sports
contest,
conduct
an
21
annual
audit,
and
pay
the
tax
imposed
by
the
new
Code
chapter.
22
New
Code
section
99E.6
provides
for
a
tax
of
six
and
23
three-quarters
percent
on
internet
fantasy
sports
contest
24
adjusted
revenues.
The
bill
defines
“internet
fantasy
sports
25
contest
adjusted
revenues”
as
the
total
of
fees
and
charges
26
collected,
less
winnings,
in
an
internet
fantasy
sports
contest
27
multiplied
by
the
percentage
of
fees
and
charges
paid
by
28
participants
who
are
located
in
this
state
in
that
contest.
29
The
taxes
imposed
shall
be
paid
by
the
internet
fantasy
30
sports
contest
service
provider
to
the
treasurer
of
state
as
31
determined
by
the
commission
and
shall
be
credited
as
provided
32
in
Code
section
8.57,
subsection
5.
33
New
Code
section
99E.7
provides
that
a
person
under
the
34
age
of
21
shall
not
enter
an
internet
fantasy
sports
contest.
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A
person
who
violates
this
Code
section
commits
a
scheduled
1
violation
under
Code
section
805.8C
and
is
subject
to
a
$500
2
fine.
Code
section
805.8C
is
amended
to
reflect
this
violation
3
and
applicable
fine.
4
New
Code
section
99E.8
requires
an
internet
fantasy
sports
5
contest
service
provider
to
keep
books
and
records
on
internet
6
fantasy
sports
contest
adjusted
revenues
and
to
provide
the
7
commission
reports
and
information
as
the
commission
may
8
require.
The
bill
provides
that
a
licensee
promptly
report
9
to
the
commission
any
criminal
or
disciplinary
proceedings
10
commenced
against
the
licensee,
any
abnormal
fantasy
sports
11
contest
activity,
and
any
other
conduct
with
the
potential
to
12
corrupt
an
outcome
of
an
internet
fantasy
sports
contest.
The
13
bill
requires
the
commission
to
share
any
information
received
14
with
any
law
enforcement
entity,
sports
team,
sports
governing
15
body,
or
regulatory
agency
the
commission
deems
appropriate.
16
New
Code
section
99E.9
requires
a
licensee
to
conduct
an
17
audit
within
90
days
after
the
end
of
the
licensee’s
fiscal
18
year.
19
New
Code
section
99E.10
establishes
civil
penalties.
The
20
new
Code
section
provides
that
a
person
who
willfully
fails
to
21
comply
with
the
requirements
of
this
new
Code
chapter
shall
be
22
liable
for
a
civil
penalty
of
not
more
than
$1,000
for
each
23
violation,
not
to
exceed
$10,000
for
violations
arising
out
of
24
the
same
transaction
or
occurrence.
25
The
bill
also
makes
changes
to
Code
sections
99F.2,
99F.4B,
26
232C.4,
714B.10,
and
725.15
to
provide
that
provisions
in
those
27
Code
sections
that
list
some
or
all
Code
chapters
that
govern
28
lawful
gambling
also
list
the
new
Code
chapter
provided
in
this
29
division
of
the
bill.
30
The
bill
provides
for
the
issuance
of
a
transitional
license
31
by
the
racing
and
gaming
commission
to
a
person
to
conduct
32
internet
fantasy
sports
contests
in
this
state
if
the
person
33
has
been
granted
a
license
or
registration
by
two
or
more
other
34
states
to
conduct
internet
fantasy
sports
contests.
The
bill
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provides
that
the
transitional
license
shall
be
valid
until
the
1
earlier
of
the
date
the
commission
grants
or
denies
a
license
2
to
the
person
or
12
months
from
the
date
the
commission
accepts
3
applications
for
issuance
of
a
license.
4
This
division
of
the
bill
takes
effect
upon
enactment.
5
However,
the
bill
authorizes
the
racing
and
gaming
commission
6
to
adopt
emergency
rules
to
implement
this
division
of
the
7
bill
and
provides
that
the
racing
and
gaming
commission
shall
8
not
implement
the
bill
until
the
date
the
commission
has
9
adopted
rules
pursuant
to
Code
chapter
17A
providing
for
such
10
implementation
and
such
rules
have
become
effective.
11
SOCIAL
SPORTS
GAMBLING.
This
division
concerns
social
12
gambling
authorized
under
Code
chapter
99B.
Code
section
13
99B.45,
concerning
social
gambling
between
individuals,
is
14
amended
to
authorize
social
gambling
on
social
fantasy
sports
15
contests.
Code
section
99B.41
is
amended
to
define
“social
16
fantasy
sports
contest”
as
a
fantasy
sports
contest
in
which
17
prizes
and
awards
offered
to
winning
participants
do
not
exceed
18
$1,000
and
winning
outcomes
are
based
on
the
performance
of
19
individuals
in
events
occurring
over
more
than
a
24-hour
20
period.
Current
law
limits
wins
or
losses
on
social
gambling
21
to
$200.
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