Bill Text: IA SF366 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to gambling regulation and wagering, by providing for sports wagering and fantasy sports contests, providing for taxes and fees, making penalties applicable, and including implementation and effective date provisions. (Formerly SSB 1168; See SF 617.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2019-04-08 - Committee report approving bill, renumbered as SF 617. S.J. 890. [SF366 Detail]
Download: Iowa-2019-SF366-Introduced.html
Senate
File
366
-
Introduced
SENATE
FILE
366
BY
COMMITTEE
ON
STATE
GOVERNMENT
(SUCCESSOR
TO
SSB
1168)
A
BILL
FOR
An
Act
relating
to
gambling
regulation
and
wagering,
by
1
providing
for
sports
wagering
and
fantasy
sports
contests,
2
providing
for
taxes
and
fees,
making
penalties
applicable,
3
and
including
implementation
and
effective
date
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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DIVISION
I
1
SPORTS
WAGERING
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
7
as
defined
in
section
99E.1,
from
advance
deposit
sports
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
wagering
area
,
as
defined
in
section
99F.1
,
of
all
other
11
licensed
facilities
under
this
chapter
and
chapter
99F
as
12
provided
in
this
subsection
.
The
process
shall
provide
that
13
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
15
a
professional
sporting
event,
collegiate
sporting
event,
16
international
sporting
event,
professional
motor
race
event,
or
17
any
other
minor
league
or
amateur
sporting
event
as
authorized
18
by
the
commission
pursuant
to
section
99F.7A,
subsection
19
3.
“Authorized
sporting
event”
does
not
include
a
race
as
20
defined
in
section
99D.2,
a
fantasy
sports
contest
as
defined
21
in
section
99E.1,
or
any
athletic
event
or
competition
of
an
22
interscholastic
sport
as
defined
in
section
9A.102.
23
NEW
SUBSECTION
.
4A.
“Collegiate
sporting
event”
means
an
24
athletic
event
or
competition
of
an
intercollegiate
sport
as
25
defined
in
section
9A.102.
26
NEW
SUBSECTION
.
16A.
“International
sporting
event”
means
27
an
international
team
or
individual
sporting
event
governed
by
28
an
international
sports
federation
or
sports
governing
body,
29
including
sporting
events
governed
by
the
international
olympic
30
committee
and
the
international
federation
of
association
31
football.
32
NEW
SUBSECTION
.
18A.
“Minor
league
sporting
event”
means
33
a
sporting
event
conducted
by
a
sports
league
which
is
not
34
regarded
as
the
premier
league
in
the
sport
as
determined
by
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the
commission.
1
NEW
SUBSECTION
.
19A.
“Professional
sporting
event”
means
an
2
event,
excluding
a
minor
league
sporting
event,
at
which
two
3
or
more
persons
participate
in
sports
or
athletic
events
and
4
receive
compensation
in
excess
of
actual
expenses
for
their
5
participation
in
such
event.
6
NEW
SUBSECTION
.
23.
“Sports
wagering”
means
the
acceptance
7
of
wagers
on
an
authorized
sporting
event
by
any
system
of
8
wagering
as
authorized
by
the
commission.
9
NEW
SUBSECTION
.
24.
“Sports
wagering
area”
means
an
area,
10
as
designated
by
the
commission,
in
which
sports
wagering
is
11
conducted.
12
NEW
SUBSECTION
.
25.
“Sports
wagering
net
receipts”
means
13
the
gross
receipts
less
winnings
paid
to
wagerers
on
sports
14
wagering.
15
Sec.
4.
Section
99F.1,
subsection
17,
Code
2019,
is
amended
16
to
read
as
follows:
17
17.
“Licensee”
means
any
person
licensed
under
section
99F.7
18
or
99F.7A
.
19
Sec.
5.
Section
99F.3,
Code
2019,
is
amended
to
read
as
20
follows:
21
99F.3
Gambling
games
and
sports
wagering
authorized.
22
The
system
of
wagering
on
a
gambling
game
and
sports
wagering
23
as
provided
by
this
chapter
is
legal,
when
conducted
on
an
24
excursion
gambling
boat,
gambling
structure,
or
racetrack
25
enclosure
at
authorized
locations
by
a
licensee
as
provided
in
26
this
chapter
.
27
Sec.
6.
Section
99F.4,
subsections
3
and
22,
Code
2019,
are
28
amended
to
read
as
follows:
29
3.
To
adopt
standards
under
which
all
excursion
gambling
30
boat
operations
shall
be
held
and
standards
for
the
facilities
31
within
which
the
gambling
operations
are
to
be
held.
The
32
commission
may
authorize
the
operation
of
gambling
games
on
33
an
excursion
gambling
boat
and
sports
wagering
in
a
sports
34
wagering
area
which
is
also
licensed
to
sell
or
serve
alcoholic
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beverages,
wine,
or
beer
as
defined
in
section
123.3
.
1
22.
To
establish
a
process
to
allow
a
person
to
be
2
voluntarily
excluded
from
advance
deposit
wagering
as
defined
3
in
section
99D.11,
from
an
internet
fantasy
sports
contest
as
4
defined
in
section
99E.1,
from
advance
deposit
sports
wagering
5
as
defined
in
section
99F.9,
from
the
gaming
floor
and
sports
6
wagering
area
of
an
excursion
gambling
boat,
from
the
wagering
7
area,
as
defined
in
section
99D.2
,
and
from
the
gaming
floor
8
and
sports
wagering
area
of
all
other
licensed
facilities
under
9
this
chapter
and
chapter
99D
as
provided
in
this
subsection
.
10
The
process
shall
provide
that
an
initial
request
by
a
person
11
to
be
voluntarily
excluded
shall
be
for
a
period
of
five
years
12
or
life
and
any
subsequent
request
following
any
five-year
13
period
shall
be
for
a
period
of
five
years
or
life.
The
14
process
established
shall
require
that
licensees
be
provided
15
electronic
access
to
names
and
social
security
numbers
of
16
persons
voluntarily
excluded
through
a
secured
interactive
17
internet
site
maintained
by
the
commission
and
information
18
regarding
persons
voluntarily
excluded
shall
be
disseminated
19
to
all
licensees
under
this
chapter
and
chapter
99D
.
The
20
names,
social
security
numbers,
and
information
regarding
21
persons
voluntarily
excluded
shall
be
kept
confidential
22
unless
otherwise
ordered
by
a
court
or
by
another
person
23
duly
authorized
to
release
such
information.
The
process
24
established
shall
also
require
a
person
requesting
to
be
25
voluntarily
excluded
be
provided
information
compiled
by
the
26
Iowa
department
of
public
health
on
gambling
treatment
options.
27
The
state
and
any
licensee
under
this
chapter
or
chapter
99D
28
shall
not
be
liable
to
any
person
for
any
claim
which
may
arise
29
from
this
process.
In
addition
to
any
other
penalty
provided
30
by
law,
any
money
or
thing
of
value
that
has
been
obtained
by,
31
or
is
owed
to,
a
voluntarily
excluded
person
as
a
result
of
32
wagers
made
by
the
person
after
the
person
has
been
voluntarily
33
excluded
shall
be
forfeited
by
the
person
and
shall
be
credited
34
to
the
general
fund
of
the
state.
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Sec.
7.
Section
99F.4,
Code
2019,
is
amended
by
adding
the
1
following
new
subsection:
2
NEW
SUBSECTION
.
27.
To
adopt
standards
under
which
all
3
sports
wagering
is
conducted,
including
the
scope
and
type
of
4
wagers
allowed,
to
identify
occupations
within
sports
wagering
5
which
require
licensing,
and
to
adopt
standards
for
licensing
6
and
background
qualifications
for
occupations
including
7
establishing
fees
for
the
occupational
license.
All
revenue
8
received
by
the
commission
under
this
chapter
from
license
fees
9
shall
be
deposited
in
the
general
fund
of
the
state
and
shall
10
be
subject
to
the
requirements
of
section
8.60.
All
revenue
11
received
by
the
commission
from
regulatory
fees
shall
be
12
deposited
into
the
gaming
regulatory
revolving
fund
established
13
in
section
99F.20.
14
Sec.
8.
NEW
SECTION
.
99F.7A
Sports
wagering
——
license
——
15
terms
and
conditions
——
fees.
16
1.
The
commission
shall,
upon
payment
of
an
initial
license
17
fee
of
an
amount
as
determined
by
the
general
assembly
and
18
submission
of
an
application
to
the
commission
consistent
with
19
the
requirements
of
section
99F.6,
issue
a
license
to
conduct
20
sports
wagering
to
a
licensee
authorized
to
conduct
gambling
21
games
at
a
pari-mutuel
racetrack
enclosure
or
a
licensee
22
authorized
to
operate
an
excursion
gambling
boat
or
gambling
23
structure,
subject
to
the
requirements
of
this
chapter.
The
24
annual
renewal
fee
for
a
license
to
conduct
or
operate
sports
25
wagering
shall
be
an
amount
as
determined
by
the
general
26
assembly.
27
2.
A
licensee
under
this
section
shall
include
on
the
28
internet
site
or
mobile
application
used
by
the
licensee
to
29
conduct
advance
deposit
sports
wagering
as
authorized
in
30
section
99F.9
the
statewide
telephone
number
authorized
by
the
31
Iowa
department
of
public
health
to
provide
problem
gambling
32
information,
extensive
responsible
gaming
features
in
addition
33
to
those
described
in
section
99F.4,
subsection
22,
and
a
34
link
to
the
internet
site
or
mobile
application
used
by
an
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advance
deposit
wagering
operator
to
conduct
advance
deposit
1
wagering
pursuant
to
section
99D.11.
In
addition,
a
licensee
2
may
enter
into
operating
agreements
with
one
or
two
entities
to
3
have
up
to
a
total
of
two
individually
branded
internet
sites
4
to
conduct
advance
deposit
sports
wagering
for
the
licensee,
5
unless
one
additional
operating
agreement
or
individually
6
branded
internet
site
is
authorized
by
the
commission.
7
3.
Except
as
provided
by
this
subsection,
sports
wagering
8
on
minor
league
sporting
events
or
amateur
athletic
contests
9
or
competitions
is
prohibited.
However,
the
commission
shall
10
have
the
authority,
in
its
sole
discretion
and
upon
application
11
to
the
commission
in
a
manner
as
provided
by
the
commission,
12
to
authorize
sports
wagering
on
minor
league
sporting
events
13
or
amateur
athletic
contests
or
competitions
subject
to
the
14
requirements
of
this
subsection.
The
application
to
the
15
commission
shall
specify
what
minor
league
sporting
events
16
or
amateur
athletic
contests
or
competitions
the
applicant
17
seeks
commission
authorization
for
sports
wagering.
In
18
determining
whether
to
authorize
sports
wagering
pursuant
to
19
the
requirements
of
this
subsection,
the
commission
shall,
at
a
20
minimum,
consider
whether
allowing
wagers
on
the
results
of
the
21
sporting
events
that
are
the
subject
of
the
application
will
22
not
create
a
significant
risk
for
manipulation
and
corruption
23
of
the
sporting
events
and
will
provide
a
quality
and
fair
24
wagering
experience
for
bettors.
25
4.
A
licensee
issued
a
license
to
conduct
sports
wagering
26
under
this
section
shall
employ
commercially
reasonable
steps
27
to
prohibit
coaches,
athletic
trainers,
officials,
players,
or
28
other
individuals
who
participate
in
an
authorized
sporting
29
event
that
is
the
subject
of
sports
wagering
from
sports
30
wagering
under
this
chapter.
In
addition,
a
licensee
shall
31
employ
commercially
reasonable
steps
to
prohibit
persons
32
who
are
employed
in
a
position
with
direct
involvement
with
33
coaches,
players,
athletic
trainers,
officials,
players,
or
34
participants
in
an
authorized
sporting
event
that
is
the
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subject
of
sports
wagering
from
sports
wagering
under
this
1
chapter.
2
Sec.
9.
Section
99F.8,
Code
2019,
is
amended
to
read
as
3
follows:
4
99F.8
Bond
of
licensee.
5
A
licensee
licensed
under
section
99F.7
shall
post
a
bond
6
to
the
state
of
Iowa
before
the
license
is
issued
in
a
sum
7
as
the
commission
shall
fix,
with
sureties
to
be
approved
by
8
the
commission.
The
bond
shall
be
used
to
guarantee
that
the
9
licensee
faithfully
makes
the
payments,
keeps
its
books
and
10
records
and
makes
reports,
and
conducts
its
gambling
games
and
11
sports
wagering
in
conformity
with
this
chapter
and
the
rules
12
adopted
by
the
commission.
The
bond
shall
not
be
canceled
by
13
a
surety
on
less
than
thirty
days’
notice
in
writing
to
the
14
commission.
If
a
bond
is
canceled
and
the
licensee
fails
to
15
file
a
new
bond
with
the
commission
in
the
required
amount
on
16
or
before
the
effective
date
of
cancellation,
the
licensee’s
17
license
shall
be
revoked.
The
total
and
aggregate
liability
18
of
the
surety
on
the
bond
is
limited
to
the
amount
specified
in
19
the
bond.
20
Sec.
10.
Section
99F.9,
subsection
1,
Code
2019,
is
amended
21
to
read
as
follows:
22
1.
Except
as
permitted
in
this
section
,
the
licensee
shall
23
not
permit
no
sports
wagering
or
any
form
of
wagering
on
24
gambling
games.
25
Sec.
11.
Section
99F.9,
Code
2019,
is
amended
by
adding
the
26
following
new
subsection:
27
NEW
SUBSECTION
.
3A.
a.
For
the
purposes
of
this
section,
28
unless
the
context
otherwise
requires:
29
(1)
“Advance
deposit
sports
wagering”
means
a
method
of
30
sports
wagering
in
which
an
eligible
individual
may,
in
an
31
account
established
with
a
licensee
under
section
99F.7A,
32
deposit
moneys
into
the
account
and
use
the
account
balance
to
33
pay
for
sports
wagering.
Prior
to
January
1,
2021,
an
account
34
must
be
established
by
an
eligible
individual
in
person
with
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a
licensee.
1
(2)
“Advance
deposit
sports
wagering
operator”
means
an
2
advance
deposit
sports
wagering
operator
licensed
by
the
3
commission
who
has
entered
into
an
agreement
with
a
licensee
4
under
section
99F.7A
to
provide
advance
deposit
sports
5
wagering.
6
(3)
“Eligible
individual”
means
an
individual
who
is
at
7
least
twenty-one
years
of
age
or
older
who
is
located
within
8
this
state.
9
b.
The
commission
may
authorize
a
licensee
under
section
10
99F.7A
to
conduct
advance
deposit
sports
wagering.
An
advance
11
deposit
sports
wager
may
be
placed
in
person
in
the
sports
12
wagering
area,
or
from
any
other
location
via
a
telephone-type
13
device
or
any
other
electronic
means.
The
commission
may
also
14
issue
an
advance
deposit
sports
wagering
operator
license
to
15
an
entity
who
complies
with
this
subsection
and
section
99F.6
16
and
may
require
the
advance
deposit
sports
wagering
operator
to
17
conduct
an
audit
consistent
with
the
requirements
of
section
18
99F.13.
19
c.
An
unlicensed
person
taking
or
receiving
sports
wagers
20
from
residents
of
this
state
is
guilty
of
a
class
“D”
felony.
21
Sec.
12.
Section
99F.9,
subsection
4,
Code
2019,
is
amended
22
to
read
as
follows:
23
4.
A
person
under
the
age
of
twenty-one
years
shall
not
make
24
or
attempt
to
make
a
wager
pursuant
to
subsection
3A
or
on
an
25
excursion
gambling
boat,
gambling
structure,
or
in
a
racetrack
26
enclosure
and
shall
not
be
allowed
on
the
gaming
floor
of
27
an
excursion
gambling
boat
or
gambling
structure
or
in
the
28
wagering
area,
as
defined
in
section
99D.2
,
or
on
the
gaming
29
floor
of
a
racetrack
enclosure.
However,
a
person
eighteen
30
years
of
age
or
older
may
be
employed
to
work
on
the
gaming
31
floor
of
an
excursion
gambling
boat
or
gambling
structure
or
32
in
the
wagering
area
or
on
the
gaming
floor
of
a
racetrack
33
enclosure.
A
person
who
violates
this
subsection
with
respect
34
to
making
or
attempting
to
make
a
wager
commits
a
scheduled
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violation
under
section
805.8C,
subsection
5
,
paragraph
“a”
.
1
Sec.
13.
Section
99F.12,
subsection
2,
Code
2019,
is
amended
2
to
read
as
follows:
3
2.
a.
The
licensee
shall
furnish
to
the
commission
reports
4
and
information
as
the
commission
may
require
with
respect
to
5
the
licensee’s
activities.
6
b.
A
licensee
under
section
97F.7A
shall
promptly
report
7
to
the
commission
any
criminal
or
disciplinary
proceedings
8
commenced
against
the
licensee
or
its
employees
in
connection
9
with
the
licensee
conducting
sports
wagering
or
advance
10
deposit
sports
wagering,
any
abnormal
wagering
activity
or
11
patterns
that
may
indicate
a
concern
about
the
integrity
of
an
12
authorized
sporting
event
or
events,
and
any
other
conduct
with
13
the
potential
to
corrupt
a
wagering
outcome
of
an
authorized
14
sporting
event
for
purposes
of
financial
gain,
including
but
15
not
limited
to
match
fixing,
and
suspicious
or
illegal
wagering
16
activities,
including
the
use
of
funds
derived
from
illegal
17
activity,
wagers
to
conceal
or
launder
funds
derived
from
18
illegal
activity,
use
of
agents
to
place
wagers,
or
use
of
19
false
identification.
The
commission
is
authorized
to
share
20
any
information
received
pursuant
to
this
paragraph
with
any
21
law
enforcement
entity,
sports
team,
sports
governing
body,
or
22
regulatory
agency
the
commission
deems
appropriate.
23
c.
The
gross
receipts
and
adjusted
gross
receipts
from
24
gambling
shall
be
separately
handled
and
accounted
for
from
25
all
other
moneys
received
from
operation
of
an
excursion
26
gambling
boat
or
from
operation
of
a
racetrack
enclosure
or
27
gambling
structure
licensed
to
conduct
gambling
games.
The
28
commission
may
designate
a
representative
to
board
a
licensed
29
excursion
gambling
boat
or
to
enter
a
racetrack
enclosure
or
30
gambling
structure
licensed
to
conduct
gambling
games.
The
31
representative
shall
have
full
access
to
all
places
within
the
32
enclosure
of
the
boat,
the
gambling
structure,
or
the
racetrack
33
enclosure
and
shall
directly
supervise
the
handling
and
34
accounting
of
all
gross
receipts
and
adjusted
gross
receipts
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from
gambling.
The
representative
shall
supervise
and
check
1
the
admissions.
The
compensation
of
a
representative
shall
be
2
fixed
by
the
commission
but
shall
be
paid
by
the
licensee.
3
Sec.
14.
Section
99F.15,
subsection
1,
paragraph
c,
Code
4
2019,
is
amended
to
read
as
follows:
5
c.
Acting,
or
employing
a
person
to
act,
as
a
shill
or
6
decoy
to
encourage
participation
in
a
gambling
game
or
sports
7
wagering
.
8
Sec.
15.
Section
99F.15,
subsection
4,
paragraphs
d,
h,
and
9
i,
Code
2019,
are
amended
to
read
as
follows:
10
d.
Cheats
at
a
gambling
game,
including
but
not
limited
to
11
committing
any
act
which
alters
the
outcome
of
the
game
,
or
12
cheats
at
sports
wagering
.
13
h.
Claims,
collects,
or
takes,
or
attempts
to
claim,
14
collect,
or
take,
money
or
anything
of
value
in
or
from
the
15
gambling
games
or
sports
wagering
,
with
intent
to
defraud,
16
without
having
made
a
wager
contingent
on
winning
a
gambling
17
game
or
sports
wager
,
or
claims,
collects,
or
takes
an
amount
18
of
money
or
thing
of
value
of
greater
value
than
the
amount
19
won.
20
i.
Knowingly
entices
or
induces
a
person
to
go
to
any
place
21
where
a
gambling
game
or
sports
wagering
is
being
conducted
or
22
operated
in
violation
of
the
provisions
of
this
chapter
with
23
the
intent
that
the
other
person
plays
or
participates
in
that
24
gambling
game
or
sports
wagering
.
25
Sec.
16.
Section
99F.20,
subsection
1,
Code
2019,
is
amended
26
to
read
as
follows:
27
1.
A
gaming
regulatory
revolving
fund
is
created
in
28
the
state
treasury
under
the
control
of
the
department
of
29
inspections
and
appeals.
The
fund
shall
consist
of
fees
30
collected
and
deposited
into
the
fund
paid
by
licensees
31
pursuant
to
section
99D.14,
subsection
2
,
paragraph
“c”
,
fees
32
paid
by
licensees
pursuant
to
section
99E.5,
subsection
4,
33
paragraph
“c”
,
regulatory
fees
paid
by
licensees
pursuant
34
to
section
99F.4,
subsection
27,
and
fees
paid
by
licensees
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pursuant
to
section
99F.10,
subsection
4
,
paragraph
“c”
.
All
1
costs
relating
to
racetrack,
excursion
boat,
and
gambling
2
structure
regulation
shall
be
paid
from
the
fund
as
provided
in
3
appropriations
made
for
this
purpose
by
the
general
assembly.
4
The
department
shall
provide
quarterly
reports
to
the
5
department
of
management
and
the
legislative
services
agency
6
specifying
revenues
billed
and
collected
and
expenditures
7
from
the
fund
in
a
format
as
determined
by
the
department
8
of
management
in
consultation
with
the
legislative
services
9
agency.
10
Sec.
17.
SPORTS
WAGERING
TAX
——
FEES
——
ALLOCATIONS.
It
is
11
the
intent
of
the
general
assembly
to
establish
sports
wagering
12
licensee
fees,
a
tax
on
sports
wagering
net
receipts,
and
to
13
provide
for
the
allocation
of
revenues
derived
from
the
tax.
14
DIVISION
II
15
FANTASY
SPORTS
CONTESTS
16
Sec.
18.
NEW
SECTION
.
99E.1
Definitions.
17
As
used
in
this
chapter,
unless
the
context
otherwise
18
requires:
19
1.
“Applicant”
means
an
internet
fantasy
sports
contest
20
service
provider
applying
for
a
license
to
conduct
internet
21
fantasy
sports
contests
under
this
chapter.
22
2.
“Commission”
means
the
state
racing
and
gaming
commission
23
created
under
section
99D.5.
24
3.
“Fantasy
sports
contest”
includes
any
fantasy
or
25
simulated
game
or
contest
in
which
the
fantasy
sports
contest
26
operator
is
not
a
participant
in
the
game
or
contest,
the
value
27
of
all
prizes
and
awards
offered
to
winning
participants
are
28
established
and
made
known
to
the
participants
in
advance
29
of
the
contest,
all
winning
outcomes
reflect
the
relative
30
knowledge
and
skill
of
the
participants
and
shall
be
determined
31
by
accumulated
statistical
results
of
the
performance
of
32
individuals,
including
athletes
in
the
case
of
sporting
events,
33
and
no
winning
outcome
is
based
on
the
score,
point
spread,
or
34
any
performance
or
performances
of
any
single
actual
team
or
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solely
on
any
single
performance
of
an
individual
athlete
or
1
player
in
any
single
actual
event.
2
4.
“Internet
fantasy
sports
contest”
means
a
method
of
3
entering
a
fantasy
sports
contest
by
which
a
person
may
4
establish
an
account
with
an
internet
fantasy
sports
contest
5
service
provider,
deposit
money
into
the
account,
and
use
6
the
account
balance
for
entering
a
fantasy
sports
contest
by
7
utilizing
electronic
communication.
8
5.
“Internet
fantasy
sports
contest
adjusted
revenues”
means,
9
for
each
internet
fantasy
sports
contest,
the
amount
equal
to
10
the
total
charges
and
fees
collected
from
all
participants
11
entering
the
internet
fantasy
sports
contest
less
winnings
paid
12
to
participants
in
the
contest,
multiplied
by
the
location
13
percentage.
14
6.
“Internet
fantasy
sports
contest
player”
means
a
person
15
who
is
at
least
twenty-one
years
of
age
and
participates
in
an
16
internet
fantasy
sports
contest
operated
by
an
internet
fantasy
17
sports
contest
service
provider.
18
7.
“Internet
fantasy
sports
contest
service
provider”
means
19
a
person,
including
a
licensee
under
chapter
99D
or
99F,
who
20
conducts
an
internet
fantasy
sports
contest
as
authorized
by
21
this
chapter.
22
8.
“Location
percentage”
means,
for
each
internet
fantasy
23
sports
contest,
the
percentage,
rounded
to
the
nearest
tenth
of
24
a
percent,
equal
to
the
total
charges
and
fees
collected
from
25
all
internet
fantasy
sports
contest
players
located
in
this
26
state
divided
by
the
total
charges
and
fees
collected
from
all
27
participants
in
the
internet
fantasy
sports
contest.
28
Sec.
19.
NEW
SECTION
.
99E.2
Internet
fantasy
sports
29
contests
authorized.
30
The
system
of
entering
an
internet
fantasy
sports
contest
as
31
provided
by
this
chapter
is
legal
when
conducted
by
a
licensed
32
internet
fantasy
sports
contest
service
provider
as
provided
in
33
this
chapter.
34
Sec.
20.
NEW
SECTION
.
99E.3
Commission
——
powers.
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1.
The
commission
shall
have
full
jurisdiction
over
and
1
shall
supervise
internet
fantasy
sports
contests
and
internet
2
fantasy
sports
contest
service
providers
as
governed
by
this
3
chapter.
4
2.
The
commission
shall
have
the
following
powers
and
shall
5
adopt
rules
pursuant
to
chapter
17A
to
administer
and
implement
6
this
chapter:
7
a.
To
review
and
investigate
applicants
and
determine
the
8
eligibility
of
applicants
for
a
license
to
conduct
internet
9
fantasy
sports
contests,
pursuant
to
rules
adopted
by
the
10
commission.
11
b.
To
license
and
regulate
internet
fantasy
sports
contest
12
service
providers
subject
to
the
requirements
of
this
chapter.
13
c.
To
provide
for
the
prevention
of
practices
detrimental
to
14
the
public
and
to
provide
for
the
best
interests
of
internet
15
fantasy
sports
contests.
16
d.
To
investigate
alleged
violations
of
this
chapter
17
or
the
commission
rules,
orders,
or
final
decisions
and
to
18
take
appropriate
disciplinary
action
against
a
licensee,
or
19
institute
appropriate
legal
action
for
enforcement,
or
both.
20
Information
gathered
during
an
investigation
is
confidential
21
during
the
pendency
of
the
investigation.
22
e.
To
assess
fines
and
revoke
or
suspend
licenses
and
to
23
impose
penalties
for
violations
of
this
chapter.
24
f.
To
take
any
other
action
as
may
be
reasonable
or
25
appropriate
to
enforce
this
chapter
and
the
commission
rules.
26
Sec.
21.
NEW
SECTION
.
99E.4
Requirements
of
applicant
——
27
fee.
28
1.
An
applicant
for
a
license
to
conduct
internet
fantasy
29
sports
contests
shall
complete
and
sign
an
application
on
30
the
form
prescribed
and
published
by
the
commission.
The
31
application
shall
include
such
information
of
the
applicant
32
that
the
commission
deems
necessary
for
purposes
of
issuing
a
33
license
pursuant
to
this
chapter.
34
2.
An
applicant
shall
submit
fingerprints
and
information
35
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366
that
the
commission
deems
necessary
to
the
commission
in
the
1
manner
prescribed
on
the
application
forms.
The
fingerprints
2
may
be
submitted
to
the
federal
bureau
of
investigation
by
3
the
department
of
public
safety
through
the
state
criminal
4
history
repository
for
the
purpose
of
a
national
criminal
5
history
check.
The
results
of
a
criminal
history
record
check
6
conducted
pursuant
to
this
subsection
shall
be
considered
a
7
confidential
record
under
chapter
22.
8
3.
If
the
commission
is
not
satisfied
that
it
can
determine
9
if
an
applicant
meets
the
requirements
necessary
for
issuing
10
a
license
pursuant
to
this
chapter,
the
commission
may
11
request
the
department
of
public
safety,
division
of
criminal
12
investigation,
to
investigate
and
obtain
the
information
13
necessary
for
the
commission
to
make
a
determination
on
whether
14
to
issue
the
applicant
a
license.
15
4.
The
commission
shall
charge
the
applicant
a
reasonable
16
fee
set
by
the
department
of
public
safety,
division
of
17
criminal
investigation,
to
defray
those
costs
associated
18
with
the
fingerprint
and
national
criminal
history
check
19
requirements
of
subsection
2
concerning
the
applicant.
In
20
addition,
if
the
commission
requests
that
an
additional
21
investigation
be
conducted
by
the
division
of
criminal
22
investigation
as
provided
in
subsection
3,
the
commission
shall
23
charge
the
applicant
the
reasonable
costs
of
this
additional
24
investigation.
These
fees
and
costs
are
in
addition
to
any
25
other
license
fees
and
costs
charged
by
the
commission.
The
26
fees
and
costs
may
be
retained
by
the
department
of
public
27
safety,
division
of
criminal
investigation,
and
shall
be
28
considered
repayment
receipts
as
defined
in
section
8.2.
29
5.
The
commission
shall
not
grant
a
license
to
an
applicant
30
if
there
is
substantial
evidence
that
any
of
the
following
31
apply:
32
a.
A
license
issued
to
the
applicant
to
conduct
internet
33
fantasy
sports
contests
in
another
jurisdiction
has
been
34
revoked,
or
a
request
for
a
license
to
conduct
internet
fantasy
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sports
contests
in
another
jurisdiction
has
been
denied,
by
1
an
entity
licensing
persons
to
conduct
such
contests
in
that
2
jurisdiction.
3
b.
The
applicant
has
not
demonstrated
financial
4
responsibility
sufficient
to
adequately
meet
the
requirements
5
of
the
enterprise
proposed.
6
c.
The
applicant
does
not
adequately
disclose
the
true
7
owners
of
the
enterprise
proposed.
8
d.
The
applicant
has
knowingly
made
a
false
statement
of
a
9
material
fact
to
the
commission.
10
e.
The
applicant
has
failed
to
meet
a
monetary
obligation
in
11
connection
with
conducting
an
internet
fantasy
sports
contest.
12
f.
The
applicant
is
not
of
good
repute
and
moral
character
13
or
the
applicant
has
pled
guilty
to,
or
has
been
convicted
of,
14
a
felony.
15
g.
Any
member
of
the
board
of
directors
of
the
applicant
is
16
not
twenty-one
years
of
age
or
older.
17
6.
A
person
who
knowingly
makes
a
false
statement
on
the
18
application
is
guilty
of
an
aggravated
misdemeanor.
19
7.
For
the
purposes
of
this
section,
“applicant”
includes
20
each
member
of
the
board
of
directors
of
an
internet
fantasy
21
sports
contest
service
provider.
22
Sec.
22.
NEW
SECTION
.
99E.5
Licenses
——
fees
——
terms
and
23
conditions
——
revocation.
24
1.
If
the
commission
is
satisfied
that
the
requirements
25
of
this
chapter
and
its
rules
adopted
under
this
chapter
26
applicable
to
licensees
have
been
or
will
be
complied
with,
the
27
commission
shall
issue
a
license
for
a
period
of
not
more
than
28
three
years
to
an
applicant
to
conduct
internet
fantasy
sports
29
contests
in
this
state.
30
2.
A
licensed
internet
fantasy
sports
contest
service
31
provider
shall
use
commercially
reasonable
methods
to
comply
32
with
all
of
the
following
requirements:
33
a.
Prevent
employees
of
the
internet
fantasy
sports
contest
34
service
provider
and
relatives
living
in
the
same
household
of
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such
employees
from
competing
in
any
internet
fantasy
sports
1
contest
on
the
service
provider’s
digital
platform
in
which
the
2
service
provider
offers
a
cash
prize
to
the
public.
3
b.
Verify
that
an
internet
fantasy
sports
contest
player
4
located
in
this
state
is
twenty-one
years
of
age
or
older.
5
c.
Ensure
that
coaches,
officials,
players,
contestants,
6
or
other
individuals
who
participate
in
a
game
or
contest
7
that
is
the
subject
of
an
internet
fantasy
sports
contest
are
8
restricted
from
entering
an
internet
fantasy
sports
contest
in
9
which
the
outcome
is
determined,
in
whole
or
in
part,
by
the
10
accumulated
statistical
results
of
a
team
of
individuals
in
the
11
game
or
contest
in
which
they
participate.
12
d.
Allow
individuals
to
restrict
themselves
from
entering
13
an
internet
fantasy
sports
contest
conducted
by
the
internet
14
fantasy
sports
contest
service
provider
upon
request
and
take
15
reasonable
steps
to
prevent
those
individuals
from
entering
16
any
internet
fantasy
sports
contests
conducted
by
the
internet
17
fantasy
sports
contest
service
provider.
18
e.
Allow
individuals
to
establish
an
account
with
an
19
internet
fantasy
sports
contest
service
provider
by
utilizing
20
electronic
communication.
21
f.
Disclose
the
number
of
entries
a
single
internet
fantasy
22
sports
contest
player
may
submit
to
each
internet
fantasy
23
sports
contest
and
take
reasonable
steps
to
prevent
players
24
from
submitting
more
than
the
allowable
number
of
entries
for
25
that
internet
fantasy
sports
contest.
26
g.
Segregate
internet
fantasy
sports
contest
player
funds
27
from
operational
funds
or
maintain
a
reserve
in
the
form
of
28
cash,
cash
equivalents,
an
irrevocable
letter
of
credit,
29
payment
processor
reserves
and
receivables,
a
bond,
or
a
30
combination
thereof
in
the
amount
of
the
deposits
in
internet
31
fantasy
sports
contest
player
accounts
for
the
benefit
and
32
protection
of
internet
fantasy
sports
contest
player
funds
held
33
in
internet
fantasy
sports
contest
accounts
by
the
internet
34
fantasy
sports
contest
service
provider.
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h.
Annually
contract
with
a
third
party
to
perform
an
1
independent
examination,
consistent
with
the
attestation
2
standards
established
by
the
American
institute
of
certified
3
public
accountants,
to
ensure
compliance
with
all
of
the
4
requirements
in
this
chapter
and
submit
the
results
of
the
5
independent
audit
to
the
commission.
The
audit
shall
be
6
submitted
to
the
commission
by
July
1
of
the
year
following
the
7
year
subject
to
the
audit.
8
i.
Pay
the
tax
as
provided
in
section
99E.6.
9
3.
The
annual
license
fee
to
conduct
internet
fantasy
10
sports
contests
shall
be
an
amount
as
determined
by
the
general
11
assembly.
Moneys
collected
by
the
commission
from
the
annual
12
license
fee
paid
under
this
subsection
shall
be
considered
13
repayment
receipts
as
defined
in
section
8.2.
14
4.
a.
A
licensed
internet
fantasy
sports
contest
service
15
provider
shall
pay
a
regulatory
fee
to
the
commission.
The
16
regulatory
fee
shall
be
established
by
the
commission
based
on
17
the
costs
of
administering
and
enforcing
this
chapter.
18
b.
A
licensed
internet
fantasy
sports
contest
service
19
provider
shall
receive
a
credit
for
the
amount
of
the
20
regulatory
fee
paid
by
the
provider
against
the
taxes
to
be
21
paid
pursuant
to
section
99E.6.
22
c.
Notwithstanding
section
8.60,
the
portion
of
the
fee
23
paid
pursuant
to
paragraph
“a”
relating
to
the
costs
of
the
24
commission
shall
be
deposited
into
the
gaming
regulatory
25
revolving
fund
established
in
section
99F.20.
26
5.
Upon
a
violation
of
any
of
the
conditions
listed
in
27
section
99E.4
or
this
section
by
a
licensee,
the
commission
28
shall
immediately
revoke
the
license.
29
Sec.
23.
NEW
SECTION
.
99E.6
Internet
fantasy
sports
contest
30
tax
——
fees
——
intent.
31
It
is
the
intent
of
the
general
assembly
to
establish
32
internet
fantasy
sports
contest
license
fees,
a
tax
on
internet
33
fantasy
sports
contest
adjusted
revenues,
and
to
provide
for
34
the
allocation
of
revenues
derived
from
the
tax.
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Sec.
24.
NEW
SECTION
.
99E.7
Internet
fantasy
sports
1
contests
——
age
restrictions.
2
A
person
under
the
age
of
twenty-one
years
shall
not
enter
an
3
internet
fantasy
sports
contest.
A
person
who
violates
this
4
section
with
respect
to
entering
an
internet
fantasy
sports
5
contest
commits
a
scheduled
violation
under
section
805.8C,
6
subsection
12.
7
Sec.
25.
NEW
SECTION
.
99E.8
Division
of
criminal
8
investigation.
9
If
the
commission
has
reasonable
cause
to
believe
that
10
a
licensee
has
committed
a
violation
of
this
chapter,
the
11
commission
may
request
the
division
of
criminal
investigation
12
of
the
department
of
public
safety
to
investigate
to
determine
13
licensee
compliance
with
the
requirements
of
this
chapter.
14
The
criminal
investigation
division
and
the
commission
shall
15
cooperate
to
the
maximum
extent
possible
on
an
investigation.
16
The
commission
shall
assess
the
licensee
the
reasonable
costs
17
of
the
investigation
conducted
by
the
division
of
criminal
18
investigation
pursuant
to
a
request
by
the
commission
under
19
this
section.
The
costs
may
be
retained
by
the
department
of
20
public
safety,
division
of
criminal
investigation,
and
shall
be
21
considered
repayment
receipts
as
defined
in
section
8.2.
22
Sec.
26.
NEW
SECTION
.
99E.9
Civil
penalty.
23
A
person
who
willfully
fails
to
comply
with
the
requirements
24
of
this
chapter
and
the
rules
adopted
pursuant
to
chapter
17A
25
under
this
chapter
shall
be
liable
for
a
civil
penalty
of
not
26
more
than
one
thousand
dollars
for
each
violation,
not
to
27
exceed
ten
thousand
dollars
for
violations
arising
out
of
the
28
same
transaction
or
occurrence,
which
shall
accrue
to
the
state
29
and
may
be
recovered
in
a
civil
action.
30
Sec.
27.
Section
99F.2,
Code
2019,
is
amended
to
read
as
31
follows:
32
99F.2
Scope
of
provisions.
33
This
chapter
does
not
apply
to
the
pari-mutuel
system
of
34
wagering
used
or
intended
to
be
used
in
connection
with
the
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horse-race
or
dog-race
meetings
as
authorized
under
chapter
1
99D
,
internet
fantasy
sports
contests
authorized
under
chapter
2
99E,
lottery
or
lotto
games
authorized
under
chapter
99G
,
or
3
bingo
or
games
of
skill
or
chance
authorized
under
chapter
99B
.
4
Sec.
28.
Section
232C.4,
subsection
3,
Code
2019,
is
amended
5
to
read
as
follows:
6
3.
An
emancipated
minor
shall
remain
subject
to
voting
7
restrictions
under
chapter
48A
,
gambling
restrictions
under
8
chapter
99B
,
99D
,
99F
,
99G
,
or
725
,
internet
fantasy
sports
9
contest
restrictions
under
chapter
99E,
alcohol
restrictions
10
under
chapter
123
,
compulsory
attendance
requirements
under
11
chapter
299
,
and
cigarette
tobacco
restrictions
under
chapter
12
453A
.
13
Sec.
29.
Section
714B.10,
subsection
1,
Code
2019,
is
14
amended
to
read
as
follows:
15
1.
Advertising
by
sponsors
registered
pursuant
to
chapter
16
557B
,
licensed
pursuant
to
chapter
99B
,
or
regulated
pursuant
17
to
chapter
99D
,
99E,
99F
,
or
99G
.
18
Sec.
30.
Section
725.15,
Code
2019,
is
amended
to
read
as
19
follows:
20
725.15
Exceptions
for
legal
gambling.
21
Sections
725.5
through
725.10
and
725.12
do
not
apply
to
22
a
game,
activity,
ticket,
or
device
when
lawfully
possessed,
23
used,
conducted,
or
participated
in
pursuant
to
chapter
99B
,
24
99E,
99F
,
or
99G
.
25
Sec.
31.
Section
805.8C,
Code
2019,
is
amended
by
adding
the
26
following
new
subsection:
27
NEW
SUBSECTION
.
12.
Internet
fantasy
sports
contest
28
violations.
For
violations
of
legal
age
for
entering
an
29
internet
fantasy
sports
contest
under
section
99E.7,
the
30
scheduled
fine
is
five
hundred
dollars.
Failure
to
pay
the
31
fine
by
a
person
under
the
age
of
eighteen
shall
not
result
in
32
the
person
being
detained
in
a
secure
facility.
33
DIVISION
III
34
GAMBLING
REGULATION
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Sec.
32.
Section
99F.6,
Code
2019,
is
amended
by
adding
the
1
following
new
subsection:
2
NEW
SUBSECTION
.
9.
The
board
of
directors
of
a
qualified
3
sponsoring
organization
licensed
to
operate
gambling
games
4
under
this
chapter
shall
include,
as
ex
officio,
nonvoting
5
members
of
the
board,
a
member
of
the
county
board
of
6
supervisors
and
a
member
of
a
city
council
for
each
county
and
7
city
that
has
a
licensed
gambling
games
facility
operated
by
8
the
qualified
sponsoring
organization.
The
ex
officio
members
9
shall
serve
terms
of
the
same
duration
as
voting
members
of
the
10
board.
11
Sec.
33.
Section
99F.17A,
Code
2019,
is
amended
to
read
as
12
follows:
13
99F.17A
Inspection
of
gambling
Gambling
games
or
implements
14
of
gambling
——
inspection
——
wagering
requirements
.
15
1.
A
licensed
manufacturer
or
distributor
of
gambling
games
16
or
implements
of
gambling
shall
deliver
the
gambling
games
or
17
implements
of
gambling
to
a
location
approved
by
the
commission
18
for
inspection
and
approval
prior
to
being
placed
in
operation.
19
Gambling
games
or
implements
of
gambling
acquired
pursuant
20
to
section
99F.17,
subsection
6
,
shall
be
inspected
and
21
approved
by
the
commission
prior
to
being
placed
in
operation.
22
Gambling
games
or
implements
of
gambling
passing
inspection
23
and
receiving
approval
may
then
be
placed
in
operation
on
an
24
excursion
gambling
boat.
25
2.
A
licensee
that
offers
gambling
games
containing
a
wheel
26
and
ball,
or
virtual
simulation,
shall
have
at
least
one
of
27
these
games
that
provide
for
a
house
edge
under
three
percent
28
for
a
single
number
wager.
29
DIVISION
IV
30
EFFECTIVE
DATE
AND
IMPLEMENTATION
PROVISIONS
31
Sec.
34.
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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this
Act
and
the
rules
shall
be
effective
immediately
upon
1
filing
unless
a
later
date
is
specified
in
the
rules
but
in
2
no
event
earlier
than
July
4,
2019.
Any
rules
adopted
in
3
accordance
with
this
section
shall
also
be
published
as
a
4
notice
of
intended
action
as
provided
in
section
17A.4.
5
Sec.
35.
IMPLEMENTATION.
The
racing
and
gaming
commission
6
shall
not
implement
this
Act
until
the
later
of
July
4,
2019,
7
or
the
date
the
commission
has
adopted
rules
pursuant
to
8
chapter
17A
providing
for
such
implementation
and
such
rules
9
have
become
effective.
10
Sec.
36.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
11
immediate
importance,
takes
effect
upon
enactment.
12
EXPLANATION
13
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
14
the
explanation’s
substance
by
the
members
of
the
general
assembly.
15
This
bill
authorizes
wagering
on
sporting
events
and
fantasy
16
sports
contests
and
amends
provisions
relating
to
gambling
game
17
regulation.
18
SPORTS
WAGERING.
Division
I
of
the
bill
authorizes
wagering
19
on
certain
sporting
events
and
provides
for
the
licensing
and
20
regulation
of
sports
wagering.
21
Code
section
99F.1,
concerning
definitions,
is
amended.
The
22
bill
defines
“sports
wagering”
as
acceptance
of
wagers
on
an
23
authorized
sporting
event
by
any
system
of
wagering
authorized
24
by
the
commission.
25
The
bill
defines
“authorized
sporting
event”
as
a
26
professional
sporting
event,
collegiate
sporting
event,
27
international
sporting
event,
professional
motor
race
event,
or
28
any
other
minor
league
or
amateur
sporting
event
as
authorized
29
by
the
commission
pursuant
to
the
bill.
The
bill
specifically
30
excludes
from
the
definition
of
“authorized
sporting
event”
a
31
race
as
defined
in
Code
section
99D.2,
a
fantasy
sports
contest
32
as
defined
in
Code
section
99E.1
as
provided
in
the
bill,
or
33
any
athletic
event
or
competition
of
an
interscholastic
sport
34
as
defined
in
Code
section
9A.102.
The
bill
further
defines
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each
sporting
event
included
in
the
definition
of
authorized
1
sporting
event
and
defines
and
excludes
from
the
definition
of
2
“professional
sporting
event”,
a
minor
league
sporting
event.
3
“Sports
wagering
net
receipts”
is
defined
as
gross
receipts
4
less
winnings
paid
to
wagerers
on
sports
wagering.
“Sports
5
wagering
area”
is
defined
as
an
area,
as
designated
by
the
6
commission,
in
which
sports
wagering
is
conducted.
7
Code
sections
99D.7(23)
and
99F.4(22),
concerning
persons
8
voluntarily
excluded
from
wagering
or
gaming
areas,
are
amended
9
to
include
internet
fantasy
sports
contests,
advance
deposit
10
wagering,
advance
deposit
sports
wagering,
and
the
sports
11
wagering
area.
12
Code
section
99F.3,
concerning
authorized
wagering
under
13
Code
chapter
99F,
is
amended
to
authorize
sports
wagering.
14
Code
section
99F.4,
concerning
racing
and
gaming
commission
15
powers,
is
amended
to
authorize
the
operation
of
sports
16
wagering
in
a
sports
wagering
area
on
an
excursion
gambling
17
boat
which
is
also
licensed
to
serve
alcoholic
beverages,
18
grants
the
racing
and
gaming
commission
the
authority
to
adopt
19
standards
under
which
sports
wagering
is
conducted
including
20
the
scope
and
type
of
wagers
allowed.
The
bill
provides
that
21
revenue
received
by
the
commission
from
license
fees
for
sports
22
wagering
shall
be
deposited
in
the
general
fund
of
the
state
23
and
revenue
received
by
the
commission
from
regulatory
fees
24
shall
be
deposited
into
the
gaming
regulatory
revolving
fund
25
established
in
Code
section
99F.20.
26
New
Code
section
99F.7A
provides
specific
requirements
27
relative
to
the
licensing,
operation,
and
fees
applicable
to
28
sports
wagering.
29
The
bill
provides
that
the
commission
shall,
upon
payment
30
of
an
initial
license
fee,
issue
a
license
to
conduct
sports
31
wagering
to
a
licensee
authorized
to
conduct
gambling
games
at
32
a
pari-mutuel
racetrack
enclosure
or
a
licensee
authorized
to
33
operate
an
excursion
gambling
boat
or
gambling
structure.
The
34
bill
provides
for
an
annual
renewal
fee.
The
new
Code
section
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also
provides
that
a
licensee
shall
include
on
the
internet
1
site
or
mobile
application
used
by
the
licensee
to
conduct
2
advance
deposit
sports
wagering
the
statewide
telephone
number
3
authorized
by
the
Iowa
department
of
public
health
to
provide
4
problem
gambling
information,
extensive
responsible
gaming
5
features,
and
a
link
to
the
internet
site
or
mobile
application
6
used
to
conduct
advance
deposit
wagering
as
authorized
by
Code
7
section
99D.11.
The
new
Code
section
also
provides
that
the
8
commission,
upon
application,
may
authorize
sports
wagering
9
on
minor
league
sporting
events
or
amateur
athletic
contests
10
or
competitions.
The
new
Code
section
also
provides
that
a
11
licensee
issued
a
license
to
conduct
sports
wagering
shall
12
employ
commercially
reasonable
steps
to
prohibit
coaches,
13
athletic
trainers,
officials,
players,
participants,
or
other
14
persons
employed
in
a
position
with
direct
involvement
with
15
such
individuals
from
sports
wagering
under
Code
chapter
99F.
16
Code
section
99F.8,
concerning
licensee
bonding
17
requirements,
is
amended
to
make
such
requirements
applicable
18
to
sports
wagering.
19
Code
section
99F.9,
concerning
wagering
on
gambling
games,
20
is
amended
to
allow
the
commission
to
authorize
gambling
game
21
licensees
under
Code
chapter
99F
to
conduct
advance
deposit
22
sports
wagering.
The
bill
also
allows
a
licensee
under
Code
23
section
99F.7A
to
enter
into
an
agreement
with
an
advance
24
deposit
sports
wagering
operator
licensed
by
the
commission
to
25
provide
advance
deposit
sports
wagering
for
the
licensee
and
26
allows
the
commission
to
require
the
advance
deposit
sports
27
wagering
operator
to
conduct
an
audit.
The
bill
would
allow
28
for
an
advance
deposit
wager
to
be
placed
in
person
at
a
29
licensed
facility
authorized
to
conduct
gambling
games
or
from
30
any
other
location
by
telephone
or
other
electronic
means.
31
The
bill
defines
“advance
deposit
sports
wagering”
as
a
form
32
of
wagering
where
an
eligible
individual
creates
an
account
33
with
a
licensee,
deposits
money
into
that
account,
and
can
use
34
the
balance
within
the
account
for
sports
wagering.
Prior
to
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January
1,
2021,
an
account
must
be
established
in
person
with
1
a
licensee.
The
bill
defines
an
“eligible
individual”
for
2
purposes
of
advance
deposit
sports
wagering
as
an
individual
3
21
years
of
age
or
older
who
is
located
within
this
state.
The
4
bill
provides
that
an
unlicensed
person
taking
sports
wagers
5
from
Iowa
residents
is
guilty
of
a
class
“D”
felony,
punishable
6
by
confinement
for
no
more
than
five
years
and
a
fine
of
at
7
least
$750
but
not
more
than
$7,500.
The
Code
section
is
also
8
amended
to
provide
that
a
person
under
the
age
of
21
shall
9
not
make
or
attempt
to
make
a
wager
by
advance
deposit
sports
10
wagering.
11
Code
section
99F.12,
concerning
certain
required
reports
12
and
records
of
licensees,
is
amended
to
provide
that
a
sports
13
wagering
licensee
shall
promptly
report
to
the
commission
any
14
criminal
or
disciplinary
proceedings
commenced
against
the
15
licensee,
any
abnormal
sports
wagering
activity,
and
any
other
16
conduct
with
the
potential
to
corrupt
a
wagering
outcome
of
an
17
authorized
sporting
event.
The
bill
authorizes
the
commission
18
to
share
any
information
received
with
any
law
enforcement
19
entity,
sports
team,
sports
governing
body,
or
regulatory
20
agency
the
commission
deems
appropriate.
21
Code
section
99F.15,
concerning
certain
prohibited
22
activities
and
penalties,
is
amended
to
provide
that
current
23
prohibitions
on
cheating
at
a
gambling
game,
claiming
anything
24
of
value
from
a
gambling
game
with
intent
to
defraud,
and
25
knowingly
enticing
a
person
to
go
where
a
gambling
game
is
26
conducted
in
violation
of
Code
chapter
99F
also
applies
to
27
sports
wagering.
28
Code
section
99F.20,
concerning
the
gaming
regulatory
29
revolving
fund,
is
amended
to
provide
that
regulatory
fees
30
by
an
internet
fantasy
sports
contest
service
provider
and
31
by
a
licensee
authorized
to
conduct
sports
wagering
shall
be
32
deposited
in
the
fund.
33
The
bill
also
provides
that
it
is
the
intent
of
the
general
34
assembly
to
establish
sports
wagering
license
fees,
a
tax
on
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sports
wagering
net
receipts,
and
to
provide
for
the
allocation
1
of
revenues
derived
from
the
tax.
2
FANTASY
SPORTS
CONTESTS.
Division
II
of
the
bill
authorizes
3
internet
fantasy
sports
contests
and
provides
for
the
4
licensing,
regulation,
and
taxation
of
internet
fantasy
sports
5
contests.
6
New
Code
section
99E.1
provides
for
definitions.
A
“fantasy
7
sports
contest”
is
defined
as
any
fantasy
or
simulated
game
8
or
contest
in
which
all
prizes
and
awards
offered
to
winning
9
participants
are
established
and
made
known
in
advance
of
the
10
contest,
all
winning
outcomes
reflect
the
relative
knowledge
11
and
skill
of
the
participants
and
are
determined
predominantly
12
by
accumulated
statistical
results
of
the
performance
of
13
individuals,
and
no
winning
outcome
is
based
on
the
score,
or
14
performance
of
any
single
actual
team
or
combination
of
such
15
teams
or
solely
on
any
single
performance
of
an
individual
16
athlete
in
any
single
actual
sporting
or
other
event.
An
17
“internet
fantasy
sports
contest”
is
defined
as
a
method
of
18
entering
a
fantasy
sports
contest
by
establishing
an
account
19
with
an
internet
fantasy
sports
contest
service
provider.
An
20
“internet
fantasy
sports
contest
player”
is
defined
as
a
person
21
who
is
at
least
21
years
of
age
who
participates
in
an
internet
22
fantasy
sports
contest.
The
bill
also
defines
“internet
23
fantasy
sports
contest
adjusted
revenues”,
“internet
fantasy
24
sports
contest
service
provider”,
and
“location
percentage”.
25
New
Code
section
99E.2
provides
that
the
system
of
entering
26
an
internet
fantasy
sports
contest
is
legal
when
conducted
by
a
27
licensed
internet
fantasy
sports
contest
service
provider
as
28
provided
in
the
new
Code
chapter.
29
New
Code
section
99E.3
establishes
the
powers
of
the
racing
30
and
gaming
commission
in
relation
to
internet
fantasy
sports
31
contests
and
internet
fantasy
sports
contest
service
providers.
32
Specifically,
the
Code
section
authorizes
the
commission
33
to
investigate
and
license
internet
fantasy
sports
contest
34
service
providers,
assess
fines
and
revoke
or
suspend
licenses,
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impose
penalties
for
violations
of
the
Code
chapter,
and
take
1
any
other
action
to
enforce
the
requirements
of
the
new
Code
2
chapter.
3
New
Code
section
99E.4
establishes
the
requirements
for
an
4
applicant
to
be
granted
a
license
to
conduct
internet
fantasy
5
sports
contests.
The
Code
section
allows
the
commission
6
to
charge
the
applicant
a
fee
for
the
department
of
public
7
safety,
division
of
criminal
investigation,
to
defray
the
8
costs
associated
with
any
investigation.
The
new
Code
9
section
provides
that
a
license
shall
not
be
issued
if
there
10
is
evidence
that
the
applicant
has
failed
to
meet
certain
11
qualifying
requirements.
The
Code
section
provides
that
a
12
person
who
knowingly
makes
a
false
statement
on
the
application
13
is
guilty
of
an
aggravated
misdemeanor.
14
New
Code
section
99E.5
establishes
the
terms
and
conditions
15
of
licenses
issued
to
conduct
internet
fantasy
sports
contests.
16
The
Code
section
provides
that
a
license
may
be
issued
for
17
a
period
of
not
more
than
three
years
and
provides
for
an
18
annual
license
fee.
The
Code
section
also
provides
for
the
19
payment
of
a
regulatory
fee
to
be
set
by
the
racing
and
gaming
20
commission
based
on
the
costs
of
administering
and
enforcing
21
the
new
Code
chapter.
The
Code
section
further
provides
that
22
each
licensee
shall
receive
a
credit
for
the
amount
of
the
23
regulatory
fee
paid
against
taxes
to
be
paid
pursuant
to
the
24
new
Code
chapter.
The
Code
section
provides
that
a
licensed
25
internet
fantasy
sports
contest
service
provider
shall
use
26
commercially
reasonable
methods
to
prevent
any
employees
and
27
certain
family
members
from
participating
in
internet
fantasy
28
sports
contests
on
the
service
provider’s
digital
platform,
29
verify
that
internet
fantasy
sports
contest
players
located
30
in
this
state
are
21
or
older,
ensure
that
participants
in
31
a
game
or
contest
shall
not
be
allowed
to
enter
an
internet
32
fantasy
sports
contest
involving
that
game
or
contest,
permit
33
individuals
to
establish
an
account
with
an
internet
fantasy
34
sports
contest
service
provider
by
electronic
communication
and
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to
restrict
themselves
from
entering
an
internet
fantasy
sports
1
contest,
perform
an
independent
audit,
and
pay
the
tax
imposed
2
by
the
new
Code
chapter.
3
New
Code
section
99E.6
provides
that
it
is
the
intent
of
4
the
general
assembly
to
establish
internet
fantasy
sports
5
contest
license
fees
and
to
tax
internet
fantasy
sports
contest
6
adjusted
revenues.
The
bill
defines,
in
new
Code
section
7
99E.1,
“internet
fantasy
sports
contest
adjusted
revenues”
as
8
the
total
of
fees
and
charges
collected,
less
winnings,
in
an
9
internet
fantasy
sports
contest
multiplied
by
the
percentage
of
10
fees
and
charges
paid
by
participants
who
are
located
in
this
11
state
in
that
contest.
12
New
Code
section
99E.7
provides
that
a
person
under
the
13
age
of
21
shall
not
enter
an
internet
fantasy
sports
contest.
14
A
person
who
violates
this
Code
section
commits
a
scheduled
15
violation
under
Code
section
805.8C
and
is
subject
to
a
$500
16
fine.
Code
section
805.8C
is
amended
to
reflect
this
violation
17
and
applicable
fine.
18
New
Code
section
99E.8
authorizes
the
division
of
criminal
19
investigation
of
the
department
of
public
safety
to
investigate
20
licensee
compliance
with
the
requirements
of
the
new
Code
21
chapter.
22
New
Code
section
99E.9
establishes
civil
penalties.
The
23
new
Code
section
provides
that
a
person
who
willfully
fails
to
24
comply
with
the
requirements
of
this
new
Code
chapter
shall
be
25
liable
for
a
civil
penalty
of
not
more
than
$1,000
for
each
26
violation,
not
to
exceed
$10,000
for
violations
arising
out
of
27
the
same
transaction
or
occurrence.
28
The
bill
also
makes
changes
to
Code
sections
99F.2,
232C.4,
29
714B.10,
and
725.15
to
provide
that
provisions
in
those
Code
30
sections
that
list
some
or
all
Code
chapters
that
govern
lawful
31
gambling
also
lists
the
new
Code
chapter
provided
in
this
32
division
of
the
bill.
33
GAMBLING
REGULATION.
Code
section
99F.6
is
amended
to
34
provide
that
a
qualified
sponsoring
organization
licensed
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S.F.
366
to
operate
gambling
games
shall
include,
as
ex
officio,
1
nonvoting
members
of
the
board,
a
member
of
the
county
board
of
2
supervisors
and
a
member
of
a
city
council
for
each
county
and
3
city
that
has
a
licensed
gambling
games
facility
operated
by
4
the
qualified
sponsoring
organization.
5
Code
section
99F.17A,
concerning
gambling
games
or
6
implements
of
gambling,
is
amended
to
provide
that
if
a
7
licensee
offers
gambling
games
containing
a
wheel
and
ball,
or
8
virtual
simulation,
at
least
one
of
these
games
shall
provide
9
for
a
house
edge
under
3
percent
for
a
single
number
wager.
10
EFFECTIVE
DATE
AND
IMPLEMENTATION
PROVISIONS.
The
bill
11
takes
effect
upon
enactment.
However,
the
bill
authorizes
12
the
racing
and
gaming
commission
to
adopt
emergency
rules
to
13
implement
the
bill
and
provides
that
the
racing
and
gaming
14
commission
shall
not
implement
the
bill
until
the
later
of
July
15
4,
2019,
or
the
date
the
commission
has
adopted
rules
pursuant
16
to
Code
chapter
17A
providing
for
such
implementation
and
such
17
rules
have
become
effective.
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