Bill Text: IA SF617 | 2019-2020 | 88th General Assembly | Enrolled
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, SF 366.) Various effective dates; see sections 23, 46, and 52 of bill.
Spectrum: Committee Bill
Status: (Passed) 2019-05-13 - Signed by Governor. S.J. 1197. [SF617 Detail]
Download: Iowa-2019-SF617-Enrolled.html
Senate
File
617
-
Enrolled
Senate
File
617
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.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
DIVISION
I
SPORTS
WAGERING
Section
1.
Section
99D.7,
subsection
23,
Code
2019,
is
amended
to
read
as
follows:
23.
To
establish
a
process
to
allow
a
person
to
be
voluntarily
excluded
from
advance
deposit
wagering
as
defined
in
section
99D.11,
from
an
internet
fantasy
sports
contest
as
defined
in
section
99E.1,
from
advance
deposit
sports
wagering
as
defined
in
section
99F.9,
from
the
wagering
area
of
a
racetrack
enclosure
and
from
the
gaming
floor
and
sports
wagering
area
,
as
defined
in
section
99F.1
,
of
all
other
licensed
facilities
under
this
chapter
and
chapter
99F
as
provided
in
this
subsection
.
The
process
shall
provide
that
an
initial
request
by
a
person
to
be
voluntarily
excluded
shall
be
for
a
period
of
five
years
or
life
and
any
subsequent
request
following
any
five-year
period
shall
be
for
a
period
of
five
years
or
life.
The
process
established
shall
require
that
licensees
be
provided
electronic
access
to
names
and
social
security
numbers
of
persons
voluntarily
excluded
through
a
secured
interactive
internet
site
maintained
by
the
commission
Senate
File
617,
p.
2
and
information
regarding
persons
voluntarily
excluded
shall
be
disseminated
to
all
licensees
under
this
chapter
,
chapter
99E,
and
chapter
99F
.
The
names,
social
security
numbers,
and
information
regarding
persons
voluntarily
excluded
shall
be
kept
confidential
unless
otherwise
ordered
by
a
court
or
by
another
person
duly
authorized
to
release
such
information.
The
process
established
shall
also
require
a
person
requesting
to
be
voluntarily
excluded
be
provided
information
compiled
by
the
Iowa
department
of
public
health
on
gambling
treatment
options.
The
state
and
any
licensee
under
this
chapter
,
chapter
99E,
or
chapter
99F
shall
not
be
liable
to
any
person
for
any
claim
which
may
arise
from
this
process.
In
addition
to
any
other
penalty
provided
by
law,
any
money
or
thing
of
value
that
has
been
obtained
by,
or
is
owed
to,
a
voluntarily
excluded
person
as
a
result
of
wagers
made
by
the
person
after
the
person
has
been
voluntarily
excluded
shall
be
forfeited
by
the
person
and
shall
be
credited
to
the
general
fund
of
the
state.
Sec.
2.
Section
99F.1,
subsection
1,
Code
2019,
is
amended
to
read
as
follows:
1.
“Adjusted
gross
receipts”
means
the
gross
receipts
less
winnings
paid
to
wagerers
on
gambling
games
.
However,
“adjusted
gross
receipts”
does
not
include
promotional
play
receipts
received
after
the
date
in
any
fiscal
year
that
the
commission
determines
that
the
wagering
tax
imposed
pursuant
to
section
99F.11
on
all
licensees
in
that
fiscal
year
on
promotional
play
receipts
exceeds
twenty-five
million
eight
hundred
twenty
thousand
dollars.
Sec.
3.
Section
99F.1,
Code
2019,
is
amended
by
adding
the
following
new
subsections:
NEW
SUBSECTION
.
2A.
“Authorized
sporting
event”
means
a
professional
sporting
event,
collegiate
sporting
event,
international
sporting
event,
or
professional
motor
race
event.
“Authorized
sporting
event”
does
not
include
a
race
as
defined
in
section
99D.2,
a
fantasy
sports
contest
as
defined
in
section
99E.1,
minor
league
sporting
event,
or
any
athletic
event
or
competition
of
an
interscholastic
sport
as
defined
in
section
9A.102.
NEW
SUBSECTION
.
4A.
“Collegiate
sporting
event”
means
an
Senate
File
617,
p.
3
athletic
event
or
competition
of
an
intercollegiate
sport
as
defined
in
section
9A.102.
NEW
SUBSECTION
.
16A.
“International
sporting
event”
means
an
international
team
or
individual
sporting
event
governed
by
an
international
sports
federation
or
sports
governing
body,
including
sporting
events
governed
by
the
international
olympic
committee
and
the
international
federation
of
association
football.
NEW
SUBSECTION
.
18A.
“Minor
league
sporting
event”
means
a
sporting
event
conducted
by
a
sports
league
which
is
not
regarded
as
the
premier
league
in
the
sport
as
determined
by
the
commission.
NEW
SUBSECTION
.
19A.
“Professional
sporting
event”
means
an
event,
excluding
a
minor
league
sporting
event,
at
which
two
or
more
persons
participate
in
sports
or
athletic
events
and
receive
compensation
in
excess
of
actual
expenses
for
their
participation
in
such
event.
NEW
SUBSECTION
.
23.
“Sports
wagering”
means
the
acceptance
of
wagers
on
an
authorized
sporting
event
by
any
system
of
wagering
as
authorized
by
the
commission.
“Sports
wagering”
does
not
include
placing
a
wager
on
the
performance
or
nonperformance
of
any
individual
athlete
participating
in
a
single
game
or
match
of
a
collegiate
sporting
event
in
which
a
collegiate
team
from
this
state
is
a
participant,
or
placing
a
wager
on
the
performance
of
athletes
in
an
individual
international
sporting
event
governed
by
the
international
olympic
committee
in
which
any
participant
in
the
international
sporting
event
is
under
eighteen
years
of
age.
NEW
SUBSECTION
.
24.
“Sports
wagering
area”
means
an
area,
as
designated
by
the
commission,
in
which
sports
wagering
is
conducted.
NEW
SUBSECTION
.
25.
“Sports
wagering
net
receipts”
means
the
gross
receipts
less
winnings
paid
to
wagerers
on
sports
wagering.
Sec.
4.
Section
99F.1,
subsection
17,
Code
2019,
is
amended
to
read
as
follows:
17.
“Licensee”
means
any
person
licensed
under
section
99F.7
or
99F.7A
.
Sec.
5.
Section
99F.3,
Code
2019,
is
amended
to
read
as
Senate
File
617,
p.
4
follows:
99F.3
Gambling
games
and
sports
wagering
authorized.
The
system
of
wagering
on
a
gambling
game
and
sports
wagering
as
provided
by
this
chapter
is
legal,
when
conducted
on
an
excursion
gambling
boat,
gambling
structure,
or
racetrack
enclosure
at
authorized
locations
by
a
licensee
as
provided
in
this
chapter
.
Sec.
6.
Section
99F.4,
subsections
3
and
22,
Code
2019,
are
amended
to
read
as
follows:
3.
To
adopt
standards
under
which
all
excursion
gambling
boat
operations
shall
be
held
and
standards
for
the
facilities
within
which
the
gambling
operations
are
to
be
held.
The
commission
may
authorize
the
operation
of
gambling
games
on
an
excursion
gambling
boat
and
sports
wagering
in
a
sports
wagering
area
which
is
also
licensed
to
sell
or
serve
alcoholic
beverages,
wine,
or
beer
as
defined
in
section
123.3
.
22.
To
establish
a
process
to
allow
a
person
to
be
voluntarily
excluded
from
advance
deposit
wagering
as
defined
in
section
99D.11,
from
an
internet
fantasy
sports
contest
as
defined
in
section
99E.1,
from
advance
deposit
sports
wagering
as
defined
in
section
99F.9,
from
the
gaming
floor
and
sports
wagering
area
of
an
excursion
gambling
boat,
from
the
wagering
area,
as
defined
in
section
99D.2
,
and
from
the
gaming
floor
and
sports
wagering
area
of
all
other
licensed
facilities
under
this
chapter
and
chapter
99D
as
provided
in
this
subsection
.
The
process
shall
provide
that
an
initial
request
by
a
person
to
be
voluntarily
excluded
shall
be
for
a
period
of
five
years
or
life
and
any
subsequent
request
following
any
five-year
period
shall
be
for
a
period
of
five
years
or
life.
The
process
established
shall
require
that
licensees
be
provided
electronic
access
to
names
and
social
security
numbers
of
persons
voluntarily
excluded
through
a
secured
interactive
internet
site
maintained
by
the
commission
and
information
regarding
persons
voluntarily
excluded
shall
be
disseminated
to
all
licensees
under
this
chapter
,
and
chapter
99D
,
and
chapter
99E
.
The
names,
social
security
numbers,
and
information
regarding
persons
voluntarily
excluded
shall
be
kept
confidential
unless
otherwise
ordered
by
a
court
or
by
another
person
duly
authorized
to
release
such
information.
The
process
Senate
File
617,
p.
5
established
shall
also
require
a
person
requesting
to
be
voluntarily
excluded
be
provided
information
compiled
by
the
Iowa
department
of
public
health
on
gambling
treatment
options.
The
state
and
any
licensee
under
this
chapter
,
or
chapter
99D
,
or
chapter
99E
shall
not
be
liable
to
any
person
for
any
claim
which
may
arise
from
this
process.
In
addition
to
any
other
penalty
provided
by
law,
any
money
or
thing
of
value
that
has
been
obtained
by,
or
is
owed
to,
a
voluntarily
excluded
person
as
a
result
of
wagers
made
by
the
person
after
the
person
has
been
voluntarily
excluded
shall
be
forfeited
by
the
person
and
shall
be
credited
to
the
general
fund
of
the
state.
Sec.
7.
Section
99F.4,
Code
2019,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
27.
To
adopt
standards
under
which
all
sports
wagering
is
conducted,
including
the
scope
and
type
of
wagers
allowed,
to
identify
occupations
within
sports
wagering
which
require
licensing,
and
to
adopt
standards
for
licensing
and
background
qualifications
for
occupations
including
establishing
fees
for
the
occupational
license.
All
revenue
received
by
the
commission
under
this
chapter
from
license
fees
shall
be
deposited
in
the
general
fund
of
the
state
and
shall
be
subject
to
the
requirements
of
section
8.60.
All
revenue
received
by
the
commission
from
regulatory
fees
shall
be
deposited
into
the
gaming
regulatory
revolving
fund
established
in
section
99F.20.
Sec.
8.
Section
99F.5,
subsection
1,
Code
2019,
is
amended
to
read
as
follows:
1.
A
qualified
sponsoring
organization
may
apply
to
the
commission
for
a
license
to
conduct
gambling
games
on
an
excursion
gambling
boat
or
gambling
structure
as
provided
in
this
chapter
.
A
person
may
apply
to
the
commission
for
a
license
to
operate
an
excursion
gambling
boat.
An
operating
agreement
entered
into
on
or
after
May
6,
2004,
between
a
qualified
sponsoring
organization
and
an
operator
of
an
excursion
gambling
boat
or
gambling
structure
shall
provide
for
a
minimum
distribution
by
the
qualified
sponsoring
organization
for
educational,
civic,
public,
charitable,
patriotic,
or
religious
uses
as
defined
in
section
99B.1
,
that
averages
at
least
three
percent
of
the
adjusted
gross
receipts
for
each
Senate
File
617,
p.
6
license
year
and,
if
applicable,
three-quarters
of
one
percent
of
sports
wagering
net
receipts
for
each
license
year
.
The
application
shall
be
filed
with
the
administrator
of
the
commission
at
least
ninety
days
before
the
first
day
of
the
next
excursion
season
as
determined
by
the
commission,
shall
identify
the
excursion
gambling
boat
upon
which
gambling
games
will
be
authorized,
shall
specify
the
exact
location
where
the
excursion
gambling
boat
will
be
docked,
and
shall
be
in
a
form
and
contain
information
as
the
commission
prescribes.
The
minimum
capacity
of
an
excursion
gambling
boat
or
gambling
structure
is
two
hundred
fifty
persons.
Sec.
9.
Section
99F.6,
subsection
4,
paragraph
a,
subparagraphs
(2)
and
(3),
Code
2019,
are
amended
to
read
as
follows:
(2)
A
qualified
sponsoring
organization
licensed
to
operate
gambling
games
under
this
chapter
shall
distribute
the
receipts
of
all
gambling
games,
less
reasonable
expenses,
charges,
taxes,
fees,
and
deductions
allowed
under
this
chapter
,
as
winnings
to
players
or
participants
or
shall
distribute
the
receipts
for
educational,
civic,
public,
charitable,
patriotic,
or
religious
uses
as
defined
in
section
99B.1
.
However,
a
licensee
to
conduct
gambling
games
under
this
chapter
shall,
unless
an
operating
agreement
for
an
excursion
gambling
boat
otherwise
provides,
distribute
at
least
three
percent
of
the
adjusted
gross
receipts
and,
if
applicable,
three-quarters
of
one
percent
of
sports
wagering
net
receipts
for
each
license
year
for
educational,
civic,
public,
charitable,
patriotic,
or
religious
uses
as
defined
in
section
99B.1
.
However,
if
a
licensee
who
is
also
licensed
to
conduct
pari-mutuel
wagering
at
a
horse
racetrack
has
unpaid
debt
from
the
pari-mutuel
racetrack
operations,
the
first
receipts
of
the
gambling
games
operated
within
the
racetrack
enclosure
less
reasonable
operating
expenses,
taxes,
and
fees
allowed
under
this
chapter
shall
be
first
used
to
pay
the
annual
indebtedness.
(3)
The
commission
shall
authorize,
subject
to
the
debt
payments
for
horse
racetracks
and
the
provisions
of
paragraph
“b”
for
dog
racetracks,
a
licensee
who
is
also
licensed
to
conduct
pari-mutuel
dog
or
horse
racing
to
use
receipts
from
gambling
games
and
sports
wagering
within
the
racetrack
Senate
File
617,
p.
7
enclosure
to
supplement
purses
for
races
particularly
for
Iowa-bred
horses
pursuant
to
an
agreement
which
shall
be
negotiated
between
the
licensee
and
representatives
of
the
dog
or
horse
owners.
For
agreements
subject
to
commission
approval
concerning
purses
for
horse
racing
beginning
on
or
after
January
1,
2006,
the
agreements
shall
provide
that
total
annual
purses
for
all
horse
racing
shall
be
four
percent
of
sports
wagering
net
receipts
and
no
less
than
eleven
percent
of
the
first
two
hundred
million
dollars
of
net
receipts,
and
six
percent
of
net
receipts
above
two
hundred
million
dollars.
In
addition,
live
standardbred
horse
racing
shall
not
be
conducted
at
the
horse
racetrack
in
Polk
county,
but
the
purse
moneys
designated
for
standardbred
racing
pursuant
to
section
99D.7,
subsection
5
,
paragraph
“b”
,
shall
be
included
in
calculating
the
total
annual
purses
required
to
be
paid
pursuant
to
this
subsection
.
Agreements
that
are
subject
to
commission
approval
concerning
horse
purses
for
a
period
of
time
beginning
on
or
after
January
1,
2006,
shall
be
jointly
submitted
to
the
commission
for
approval.
Sec.
10.
NEW
SECTION
.
99F.7A
Sports
wagering
——
license
——
terms
and
conditions
——
fees.
1.
The
commission
shall,
upon
payment
of
an
initial
license
fee
of
forty-five
thousand
dollars
and
submission
of
an
application
to
the
commission
consistent
with
the
requirements
of
section
99F.6,
issue
a
license
to
conduct
sports
wagering
to
a
licensee
authorized
to
conduct
gambling
games
at
a
pari-mutuel
racetrack
enclosure
or
a
licensee
authorized
to
operate
an
excursion
gambling
boat
or
gambling
structure,
subject
to
the
requirements
of
this
chapter.
The
annual
renewal
fee
for
a
license
to
conduct
sports
wagering
shall
be
ten
thousand
dollars.
2.
A
licensee
under
this
section
shall
do
all
of
the
following:
a.
Include
on
the
internet
site
or
mobile
application
used
by
the
licensee
to
conduct
advance
deposit
sports
wagering
as
authorized
in
section
99F.9
the
statewide
telephone
number
authorized
by
the
Iowa
department
of
public
health
to
provide
problem
gambling
information
and
extensive
responsible
gaming
features
in
addition
to
those
described
in
section
99F.4,
Senate
File
617,
p.
8
subsection
22.
b.
Establish,
subject
to
commission
approval,
sports
wagering
rules
that
specify
the
amounts
to
be
paid
on
winning
sports
wagers,
the
effect
of
changes
in
the
scheduling
of
an
authorized
sporting
event
subject
to
sports
wagering,
and
the
source
of
the
information
used
to
determine
the
outcome
of
a
sports
wager.
The
sports
wagering
rules
shall
be
displayed
in
the
licensee’s
sports
wagering
area,
posted
on
the
internet
site
or
mobile
application
used
by
the
licensee
to
conduct
advance
deposit
sports
wagering
as
authorized
in
section
99F.9,
and
included
in
the
terms
and
conditions
of
the
licensee’s
advance
deposit
sports
wagering
system.
3.
A
licensee
under
this
section
may
enter
into
operating
agreements
with
one
or
two
entities
to
have
up
to
a
total
of
two
individually
branded
internet
sites
to
conduct
advance
deposit
sports
wagering
for
the
licensee,
unless
one
additional
operating
agreement
or
individually
branded
internet
site
is
authorized
by
the
commission.
4.
A
licensee
issued
a
license
to
conduct
sports
wagering
under
this
section
shall
employ
reasonable
steps
to
prohibit
coaches,
athletic
trainers,
officials,
players,
or
other
individuals
who
participate
in
an
authorized
sporting
event
that
is
the
subject
of
sports
wagering
from
sports
wagering
under
this
chapter.
In
addition,
a
licensee
shall
employ
reasonable
steps
to
prohibit
persons
who
are
employed
in
a
position
with
direct
involvement
with
coaches,
players,
athletic
trainers,
officials,
players,
or
participants
in
an
authorized
sporting
event
that
is
the
subject
of
sports
wagering
from
sports
wagering
under
this
chapter.
Sec.
11.
Section
99F.8,
Code
2019,
is
amended
to
read
as
follows:
99F.8
Bond
of
licensee.
A
licensee
licensed
under
section
99F.7
shall
post
a
bond
to
the
state
of
Iowa
before
the
license
is
issued
in
a
sum
as
the
commission
shall
fix,
with
sureties
to
be
approved
by
the
commission.
The
bond
shall
be
used
to
guarantee
that
the
licensee
faithfully
makes
the
payments,
keeps
its
books
and
records
and
makes
reports,
and
conducts
its
gambling
games
and
sports
wagering
in
conformity
with
this
chapter
and
the
rules
Senate
File
617,
p.
9
adopted
by
the
commission.
The
bond
shall
not
be
canceled
by
a
surety
on
less
than
thirty
days’
notice
in
writing
to
the
commission.
If
a
bond
is
canceled
and
the
licensee
fails
to
file
a
new
bond
with
the
commission
in
the
required
amount
on
or
before
the
effective
date
of
cancellation,
the
licensee’s
license
shall
be
revoked.
The
total
and
aggregate
liability
of
the
surety
on
the
bond
is
limited
to
the
amount
specified
in
the
bond.
Sec.
12.
Section
99F.9,
subsection
1,
Code
2019,
is
amended
to
read
as
follows:
1.
Except
as
permitted
in
this
section
,
the
licensee
shall
not
permit
no
sports
wagering
or
any
form
of
wagering
on
gambling
games.
Sec.
13.
Section
99F.9,
Code
2019,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
3A.
a.
For
the
purposes
of
this
section,
unless
the
context
otherwise
requires:
(1)
“Advance
deposit
sports
wagering”
means
a
method
of
sports
wagering
in
which
an
eligible
individual
may,
in
an
account
established
with
a
licensee
under
section
99F.7A,
deposit
moneys
into
the
account
and
use
the
account
balance
to
pay
for
sports
wagering.
Prior
to
January
1,
2021,
an
account
must
be
established
by
an
eligible
individual
in
person
with
a
licensee.
(2)
“Advance
deposit
sports
wagering
operator”
means
an
advance
deposit
sports
wagering
operator
licensed
by
the
commission
who
has
entered
into
an
agreement
with
a
licensee
under
section
99F.7A
to
provide
advance
deposit
sports
wagering.
(3)
“Eligible
individual”
means
an
individual
who
is
at
least
twenty-one
years
of
age
or
older
who
is
located
within
this
state.
b.
The
commission
may
authorize
a
licensee
under
section
99F.7A
to
conduct
advance
deposit
sports
wagering.
An
advance
deposit
sports
wager
may
be
placed
in
person
in
the
sports
wagering
area,
or
from
any
other
location
via
a
telephone-type
device
or
any
other
electronic
means.
The
commission
may
also
issue
an
advance
deposit
sports
wagering
operator
license
to
an
entity
who
complies
with
this
subsection
and
section
99F.6
Senate
File
617,
p.
10
and
may
require
the
advance
deposit
sports
wagering
operator
to
conduct
an
audit
consistent
with
the
requirements
of
section
99F.13.
c.
An
unlicensed
person
taking
or
receiving
sports
wagers
from
residents
of
this
state
is
guilty
of
a
class
“D”
felony.
Sec.
14.
Section
99F.9,
subsection
4,
Code
2019,
is
amended
to
read
as
follows:
4.
A
person
under
the
age
of
twenty-one
years
shall
not
make
or
attempt
to
make
a
wager
pursuant
to
subsection
3A
or
on
an
excursion
gambling
boat,
gambling
structure,
or
in
a
racetrack
enclosure
and
shall
not
be
allowed
on
the
gaming
floor
of
an
excursion
gambling
boat
or
gambling
structure
or
in
the
wagering
area,
as
defined
in
section
99D.2
,
or
on
the
gaming
floor
of
a
racetrack
enclosure.
However,
a
person
eighteen
years
of
age
or
older
may
be
employed
to
work
on
the
gaming
floor
of
an
excursion
gambling
boat
or
gambling
structure
or
in
the
wagering
area
or
on
the
gaming
floor
of
a
racetrack
enclosure.
A
person
who
violates
this
subsection
with
respect
to
making
or
attempting
to
make
a
wager
commits
a
scheduled
violation
under
section
805.8C,
subsection
5
,
paragraph
“a”
.
Sec.
15.
Section
99F.11,
subsection
3,
unnumbered
paragraph
1,
Code
2019,
is
amended
to
read
as
follows:
The
taxes
imposed
by
this
section
on
adjusted
gross
receipts
from
gambling
games
authorized
under
this
chapter
shall
be
paid
by
the
licensee
to
the
treasurer
of
state
within
ten
days
after
the
close
of
the
day
when
the
wagers
were
made
and
shall
be
distributed
as
follows:
Sec.
16.
Section
99F.11,
Code
2019,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
4.
a.
A
tax
is
imposed
on
the
sports
wagering
net
receipts
received
each
fiscal
year
by
a
licensed
operator
from
sports
wagering
authorized
under
this
chapter
at
the
rate
of
six
and
three-quarters
percent.
b.
The
taxes
imposed
by
this
subsection
for
sports
wagering
authorized
under
this
chapter
shall
be
paid
by
the
licensed
operator
to
the
treasurer
of
state
as
determined
by
the
commission
and
shall
be
credited
as
provided
in
section
8.57,
subsection
6.
Sec.
17.
Section
99F.12,
subsection
2,
Code
2019,
is
amended
Senate
File
617,
p.
11
to
read
as
follows:
2.
a.
The
licensee
shall
furnish
to
the
commission
reports
and
information
as
the
commission
may
require
with
respect
to
the
licensee’s
activities.
b.
A
licensee
under
section
99F.7A
shall
promptly
report
to
the
commission
any
criminal
or
disciplinary
proceedings
commenced
against
the
licensee
or
its
employees
in
connection
with
the
licensee
conducting
sports
wagering
or
advance
deposit
sports
wagering,
any
abnormal
wagering
activity
or
patterns
that
may
indicate
a
concern
about
the
integrity
of
an
authorized
sporting
event
or
events,
and
any
other
conduct
with
the
potential
to
corrupt
a
wagering
outcome
of
an
authorized
sporting
event
for
purposes
of
financial
gain,
including
but
not
limited
to
match
fixing,
and
suspicious
or
illegal
wagering
activities,
including
the
use
of
funds
derived
from
illegal
activity,
wagers
to
conceal
or
launder
funds
derived
from
illegal
activity,
use
of
agents
to
place
wagers,
or
use
of
false
identification.
The
commission
is
required
to
share
any
information
received
pursuant
to
this
paragraph
with
the
division
of
criminal
investigation,
any
other
law
enforcement
entity
upon
request,
or
any
regulatory
agency
the
commission
deems
appropriate.
The
commission
shall
promptly
report
any
information
received
pursuant
to
this
paragraph
with
any
sports
team
or
sports
governing
body
as
the
commission
deems
appropriate,
but
shall
not
share
any
information
that
would
interfere
with
an
ongoing
criminal
investigation.
c.
The
gross
receipts
and
adjusted
gross
receipts
from
gambling
shall
be
separately
handled
and
accounted
for
from
all
other
moneys
received
from
operation
of
an
excursion
gambling
boat
or
from
operation
of
a
racetrack
enclosure
or
gambling
structure
licensed
to
conduct
gambling
games.
The
commission
may
designate
a
representative
to
board
a
licensed
excursion
gambling
boat
or
to
enter
a
racetrack
enclosure
or
gambling
structure
licensed
to
conduct
gambling
games.
The
representative
shall
have
full
access
to
all
places
within
the
enclosure
of
the
boat,
the
gambling
structure,
or
the
racetrack
enclosure
and
shall
directly
supervise
the
handling
and
accounting
of
all
gross
receipts
and
adjusted
gross
receipts
from
gambling.
The
representative
shall
supervise
and
check
Senate
File
617,
p.
12
the
admissions.
The
compensation
of
a
representative
shall
be
fixed
by
the
commission
but
shall
be
paid
by
the
licensee.
d.
With
the
approval
of
the
commission,
a
licensee
under
section
99F.7A
shall
cooperate
with
investigations
conducted
by
sports
governing
bodies,
including
but
not
limited
to
providing
or
facilitating
the
provision
of
account-level
betting
information
and
audio
or
video
files
relating
to
persons
placing
wagers.
However,
a
licensee
shall
not
share
information
that
would
interfere
with
an
ongoing
criminal
investigation.
Sec.
18.
Section
99F.15,
subsection
1,
paragraph
c,
Code
2019,
is
amended
to
read
as
follows:
c.
Acting,
or
employing
a
person
to
act,
as
a
shill
or
decoy
to
encourage
participation
in
a
gambling
game
or
sports
wagering
.
Sec.
19.
Section
99F.15,
subsection
4,
paragraphs
d,
h,
and
i,
Code
2019,
are
amended
to
read
as
follows:
d.
Cheats
at
a
gambling
game,
including
but
not
limited
to
committing
any
act
which
alters
the
outcome
of
the
game
,
or
cheats
at
sports
wagering
.
h.
Claims,
collects,
or
takes,
or
attempts
to
claim,
collect,
or
take,
money
or
anything
of
value
in
or
from
the
gambling
games
or
sports
wagering
,
with
intent
to
defraud,
without
having
made
a
wager
contingent
on
winning
a
gambling
game
or
sports
wager
,
or
claims,
collects,
or
takes
an
amount
of
money
or
thing
of
value
of
greater
value
than
the
amount
won.
i.
Knowingly
entices
or
induces
a
person
to
go
to
any
place
where
a
gambling
game
or
sports
wagering
is
being
conducted
or
operated
in
violation
of
the
provisions
of
this
chapter
with
the
intent
that
the
other
person
plays
or
participates
in
that
gambling
game
or
sports
wagering
.
Sec.
20.
Section
99F.20,
subsection
1,
Code
2019,
is
amended
to
read
as
follows:
1.
A
gaming
regulatory
revolving
fund
is
created
in
the
state
treasury
under
the
control
of
the
department
of
inspections
and
appeals.
The
fund
shall
consist
of
fees
collected
and
deposited
into
the
fund
paid
by
licensees
pursuant
to
section
99D.14,
subsection
2
,
paragraph
“c”
,
fees
Senate
File
617,
p.
13
paid
by
licensees
pursuant
to
section
99E.5,
subsection
4,
paragraph
“c”
,
regulatory
fees
paid
by
licensees
pursuant
to
section
99F.4,
subsection
27,
and
fees
paid
by
licensees
pursuant
to
section
99F.10,
subsection
4
,
paragraph
“c”
.
All
costs
relating
to
racetrack,
excursion
boat,
and
gambling
structure
,
internet
fantasy
sports
contests
as
defined
in
section
99E.1,
and
sports
wagering
regulation
shall
be
paid
from
the
fund
as
provided
in
appropriations
made
for
this
purpose
by
the
general
assembly.
The
department
shall
provide
quarterly
reports
to
the
department
of
management
and
the
legislative
services
agency
specifying
revenues
billed
and
collected
and
expenditures
from
the
fund
in
a
format
as
determined
by
the
department
of
management
in
consultation
with
the
legislative
services
agency.
Sec.
21.
EMERGENCY
RULES.
The
state
racing
and
gaming
commission
created
under
section
99D.5
may
adopt
emergency
rules
under
section
17A.4,
subsection
3,
and
section
17A.5,
subsection
2,
paragraph
“b”,
to
implement
the
provisions
of
this
division
of
this
Act
and
the
rules
shall
be
effective
immediately
upon
filing
unless
a
later
date
is
specified
in
the
rules
but
in
no
event
earlier
than
July
4,
2019.
Any
rules
adopted
in
accordance
with
this
section
shall
also
be
published
as
a
notice
of
intended
action
as
provided
in
section
17A.4.
Sec.
22.
IMPLEMENTATION.
The
racing
and
gaming
commission
shall
not
implement
this
division
of
this
Act
until
the
later
of
July
4,
2019,
or
the
date
the
commission
has
adopted
rules
pursuant
to
chapter
17A
providing
for
such
implementation
and
such
rules
have
become
effective.
Sec.
23.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
DIVISION
II
FANTASY
SPORTS
CONTESTS
Sec.
24.
Section
80.25A,
Code
2019,
is
amended
to
read
as
follows:
80.25A
Pari-mutuel
and
gambling
game
Gaming
operations
investigation
and
enforcement.
The
commissioner
of
public
safety
shall
direct
the
chief
of
the
division
of
criminal
investigation
to
establish
a
subdivision
to
be
the
primary
criminal
investigative
and
Senate
File
617,
p.
14
enforcement
agency
for
the
purpose
of
enforcement
of
chapters
99D
,
99E,
and
99F
.
The
commissioner
of
public
safety
shall
appoint
or
assign
other
agents
to
the
division
as
necessary
to
enforce
chapters
99D
,
99E,
and
99F
.
All
enforcement
officers,
assistants,
and
agents
of
the
division
are
subject
to
section
80.15
except
clerical
workers.
Sec.
25.
Section
80.43,
subsection
1,
Code
2019,
is
amended
to
read
as
follows:
1.
A
gaming
enforcement
revolving
fund
is
created
in
the
state
treasury
under
the
control
of
the
department.
The
fund
shall
consist
of
fees
collected
and
deposited
into
the
fund
paid
by
licensees
pursuant
to
section
99D.14,
subsection
2
,
paragraph
“b”
,
fees
and
costs
paid
by
applicants
pursuant
to
section
99E.4,
subsection
4,
and
fees
paid
by
licensees
pursuant
to
section
99F.10,
subsection
4
,
paragraph
“b”
.
All
costs
for
agents
and
officers
plus
any
direct
support
costs
for
such
agents
and
officers
of
the
division
of
criminal
investigation’s
racetrack,
excursion
boat,
or
gambling
structure
,
and
internet
fantasy
sports
contests
as
defined
in
section
99E.1
enforcement
activities
shall
be
paid
from
the
fund
as
provided
in
appropriations
made
for
this
purpose
by
the
general
assembly.
Sec.
26.
NEW
SECTION
.
99E.1
Definitions.
As
used
in
this
chapter,
unless
the
context
otherwise
requires:
1.
“Applicant”
means
an
internet
fantasy
sports
contest
service
provider
applying
for
a
license
to
conduct
internet
fantasy
sports
contests
under
this
chapter.
2.
“Commission”
means
the
state
racing
and
gaming
commission
created
under
section
99D.5.
3.
“Fantasy
sports
contest”
includes
any
fantasy
or
simulated
game
or
contest
in
which
the
fantasy
sports
contest
operator
is
not
a
participant
in
the
game
or
contest,
the
value
of
all
prizes
and
awards
offered
to
winning
participants
are
established
and
made
known
to
the
participants
in
advance
of
the
contest,
all
winning
outcomes
reflect
the
relative
knowledge
and
skill
of
the
participants
and
shall
be
determined
by
accumulated
statistical
results
of
the
performance
of
individuals,
including
athletes
in
the
case
of
sporting
events,
Senate
File
617,
p.
15
and
no
winning
outcome
is
solely
based
on
the
score,
point
spread,
or
any
performance
or
performances
of
any
single
actual
team
or
solely
on
any
single
performance
of
an
individual
athlete
or
player
in
any
single
actual
event.
However,
until
May
1,
2020,
“fantasy
sports
contest”
does
not
include
any
fantasy
or
simulated
game
or
contest
in
which
any
winning
outcomes
are
based
on
statistical
results
from
a
collegiate
sporting
event
as
defined
in
section
99F.1.
4.
“Internet
fantasy
sports
contest”
means
a
method
of
entering
a
fantasy
sports
contest
by
which
a
person
may
establish
an
account
with
an
internet
fantasy
sports
contest
service
provider,
deposit
money
into
the
account,
and
use
the
account
balance
for
entering
a
fantasy
sports
contest
by
utilizing
electronic
communication.
5.
“Internet
fantasy
sports
contest
adjusted
revenues”
means,
for
each
internet
fantasy
sports
contest,
the
amount
equal
to
the
total
charges
and
fees
collected
from
all
participants
entering
the
internet
fantasy
sports
contest
less
winnings
paid
to
participants
in
the
contest,
multiplied
by
the
location
percentage.
6.
“Internet
fantasy
sports
contest
player”
means
a
person
who
is
at
least
twenty-one
years
of
age
and
participates
in
an
internet
fantasy
sports
contest
operated
by
an
internet
fantasy
sports
contest
service
provider.
7.
“Internet
fantasy
sports
contest
service
provider”
means
a
person,
including
a
licensee
under
chapter
99D
or
99F,
who
conducts
an
internet
fantasy
sports
contest
as
authorized
by
this
chapter.
8.
“Licensee”
means
any
person
licensed
under
section
99E.5
to
conduct
internet
fantasy
sports
contests.
9.
“Location
percentage”
means,
for
each
internet
fantasy
sports
contest,
the
percentage,
rounded
to
the
nearest
tenth
of
a
percent,
equal
to
the
total
charges
and
fees
collected
from
all
internet
fantasy
sports
contest
players
located
in
this
state
divided
by
the
total
charges
and
fees
collected
from
all
participants
in
the
internet
fantasy
sports
contest.
Sec.
27.
NEW
SECTION
.
99E.2
Internet
fantasy
sports
contests
authorized.
The
system
of
entering
an
internet
fantasy
sports
contest
as
Senate
File
617,
p.
16
provided
by
this
chapter
is
legal
when
conducted
by
a
licensed
internet
fantasy
sports
contest
service
provider
as
provided
in
this
chapter.
Sec.
28.
NEW
SECTION
.
99E.3
Commission
——
powers.
1.
The
commission
shall
have
full
jurisdiction
over
and
shall
supervise
internet
fantasy
sports
contests
and
internet
fantasy
sports
contest
service
providers
as
governed
by
this
chapter.
2.
The
commission
shall
have
the
following
powers
and
shall
adopt
rules
pursuant
to
chapter
17A
to
administer
and
implement
this
chapter:
a.
To
review
and
investigate
applicants
and
determine
the
eligibility
of
applicants
for
a
license
to
conduct
internet
fantasy
sports
contests,
pursuant
to
rules
adopted
by
the
commission.
b.
To
license
and
regulate
internet
fantasy
sports
contest
service
providers
subject
to
the
requirements
of
this
chapter.
c.
To
provide
for
the
prevention
of
practices
detrimental
to
the
public
and
to
provide
for
the
best
interests
of
internet
fantasy
sports
contests.
d.
To
investigate
alleged
violations
of
this
chapter
or
the
commission
rules,
orders,
or
final
decisions
and
to
take
appropriate
disciplinary
action
against
a
licensee,
or
institute
appropriate
legal
action
for
enforcement,
or
both.
Information
gathered
during
an
investigation
is
confidential
during
the
pendency
of
the
investigation.
e.
To
assess
fines
and
revoke
or
suspend
licenses
and
to
impose
penalties
for
violations
of
this
chapter.
f.
To
take
any
other
action
as
may
be
reasonable
or
appropriate
to
enforce
this
chapter
and
the
commission
rules.
Sec.
29.
NEW
SECTION
.
99E.4
Requirements
of
applicant
——
fee.
1.
An
applicant
for
a
license
to
conduct
internet
fantasy
sports
contests
shall
complete
and
sign
an
application
on
the
form
prescribed
and
published
by
the
commission.
The
application
shall
include
such
information
of
the
applicant
that
the
commission
deems
necessary
for
purposes
of
issuing
a
license
pursuant
to
this
chapter.
2.
An
applicant
shall
submit
fingerprints
and
information
Senate
File
617,
p.
17
that
the
commission
deems
necessary
to
the
commission
in
the
manner
prescribed
on
the
application
forms.
The
fingerprints
may
be
submitted
to
the
federal
bureau
of
investigation
by
the
department
of
public
safety
through
the
state
criminal
history
repository
for
the
purpose
of
a
national
criminal
history
check.
The
results
of
a
criminal
history
record
check
conducted
pursuant
to
this
subsection
shall
be
considered
a
confidential
record
under
chapter
22.
3.
Before
a
license
is
granted,
the
division
of
criminal
investigation
of
the
department
of
public
safety
shall
conduct
a
thorough
background
investigation
of
the
applicant
for
a
license
to
conduct
internet
fantasy
sports
contests.
The
applicant
shall
provide
information
on
a
form
as
required
by
the
division
of
criminal
investigation.
4.
The
commission
shall
charge
the
applicant
a
reasonable
fee
set
by
the
division
of
criminal
investigation
of
the
department
of
public
safety,
to
defray
those
costs
associated
with
the
fingerprint
and
national
criminal
history
check
requirements
of
subsection
2
and
background
investigations
conducted
by
agents
of
the
division
of
criminal
investigation
as
provided
in
subsection
3.
These
fees
and
costs
are
in
addition
to
any
other
license
fees
and
costs
charged
by
the
commission.
The
fees
and
costs
received
by
the
commission
shall
be
deposited
in
the
gaming
enforcement
revolving
fund
established
in
section
80.43.
5.
The
commission
shall
not
grant
a
license
to
an
applicant
if
there
is
substantial
evidence
that
any
of
the
following
apply:
a.
A
license
issued
to
the
applicant
to
conduct
internet
fantasy
sports
contests
in
another
jurisdiction
has
been
revoked,
or
a
request
for
a
license
to
conduct
internet
fantasy
sports
contests
in
another
jurisdiction
has
been
denied,
by
an
entity
licensing
persons
to
conduct
such
contests
in
that
jurisdiction.
b.
The
applicant
has
not
demonstrated
financial
responsibility
sufficient
to
adequately
meet
the
requirements
of
the
enterprise
proposed.
c.
The
applicant
does
not
adequately
disclose
the
true
owners
of
the
enterprise
proposed.
Senate
File
617,
p.
18
d.
The
applicant
has
knowingly
made
a
false
statement
of
a
material
fact
to
the
commission.
e.
The
applicant
has
failed
to
meet
a
monetary
obligation
in
connection
with
conducting
an
internet
fantasy
sports
contest.
f.
The
applicant
is
not
of
good
repute
and
moral
character
or
the
applicant
has
pled
guilty
to,
or
has
been
convicted
of,
a
felony.
g.
Any
member
of
the
board
of
directors
of
the
applicant
is
not
twenty-one
years
of
age
or
older.
6.
A
person
who
knowingly
makes
a
false
statement
on
the
application
is
guilty
of
an
aggravated
misdemeanor.
7.
For
the
purposes
of
this
section,
“applicant”
includes
each
member
of
the
board
of
directors
of
an
internet
fantasy
sports
contest
service
provider.
Sec.
30.
NEW
SECTION
.
99E.5
Licenses
——
fees
——
terms
and
conditions
——
revocation.
1.
If
the
commission
is
satisfied
that
the
requirements
of
this
chapter
and
its
rules
adopted
under
this
chapter
applicable
to
licensees
have
been
or
will
be
complied
with,
the
commission
shall,
upon
payment
of
an
initial
license
fee
of
five
thousand
dollars,
issue
a
license
for
a
period
of
not
more
than
three
years
to
an
applicant
to
conduct
internet
fantasy
sports
contests
in
this
state.
2.
A
licensed
internet
fantasy
sports
contest
service
provider
shall
use
reasonable
methods
to
comply
with
all
of
the
following
requirements:
a.
Prevent
employees
of
the
internet
fantasy
sports
contest
service
provider
and
relatives
living
in
the
same
household
of
such
employees
from
competing
in
any
internet
fantasy
sports
contest
on
the
service
provider’s
digital
platform
in
which
the
service
provider
offers
a
cash
prize
to
the
public.
b.
Verify
that
an
internet
fantasy
sports
contest
player
located
in
this
state
is
twenty-one
years
of
age
or
older.
c.
Ensure
that
coaches,
officials,
players,
contestants,
or
other
individuals
who
participate
in
a
game
or
contest
that
is
the
subject
of
an
internet
fantasy
sports
contest
are
restricted
from
entering
an
internet
fantasy
sports
contest
in
which
the
outcome
is
determined,
in
whole
or
in
part,
by
the
accumulated
statistical
results
of
a
team
of
individuals
in
the
Senate
File
617,
p.
19
game
or
contest
in
which
they
participate.
d.
Include
on
the
internet
site
or
mobile
application
used
by
the
licensee
to
conduct
internet
fantasy
sports
contests
the
statewide
telephone
number
authorized
by
the
Iowa
department
of
public
health
to
provide
problem
gambling
information
and
extensive
responsible
gaming
features
in
addition
to
those
described
in
section
99F.4,
subsection
22.
e.
Allow
individuals
to
establish
an
account
with
an
internet
fantasy
sports
contest
service
provider
by
utilizing
electronic
communication.
f.
Disclose
the
number
of
entries
a
single
internet
fantasy
sports
contest
player
may
submit
to
each
internet
fantasy
sports
contest
and
take
reasonable
steps
to
prevent
players
from
submitting
more
than
the
allowable
number
of
entries
for
that
internet
fantasy
sports
contest.
g.
Segregate
internet
fantasy
sports
contest
player
funds
from
operational
funds
or
maintain
a
reserve
in
the
form
of
cash,
cash
equivalents,
an
irrevocable
letter
of
credit,
payment
processor
reserves
and
receivables,
a
bond,
or
a
combination
thereof
in
the
amount
of
the
deposits
in
internet
fantasy
sports
contest
player
accounts
for
the
benefit
and
protection
of
internet
fantasy
sports
contest
player
funds
held
in
internet
fantasy
sports
contest
accounts
by
the
internet
fantasy
sports
contest
service
provider.
h.
Conduct
an
annual
audit
under
section
99E.9.
i.
Pay
the
tax
as
provided
in
section
99E.6.
3.
The
annual
license
fee
to
conduct
internet
fantasy
sports
contests
shall
be
one
thousand
dollars
or,
for
a
licensed
internet
fantasy
sports
contest
service
provider
with
total
annual
internet
fantasy
sports
contest
adjusted
revenues
for
the
year
prior
to
the
annual
license
fee
renewal
date
of
one
hundred
fifty
thousand
dollars
or
greater,
five
thousand
dollars.
Moneys
collected
by
the
commission
from
the
license
fees
paid
under
this
section
shall
be
considered
repayment
receipts
as
defined
in
section
8.2.
4.
a.
A
licensed
internet
fantasy
sports
contest
service
provider
shall
pay
a
regulatory
fee
to
the
commission.
The
regulatory
fee
shall
be
established
by
the
commission
based
on
the
costs
of
administering
and
enforcing
this
chapter.
Senate
File
617,
p.
20
b.
A
licensed
internet
fantasy
sports
contest
service
provider
shall
receive
a
credit
for
the
amount
of
the
regulatory
fee
paid
by
the
provider
against
the
taxes
to
be
paid
pursuant
to
section
99E.6.
c.
Notwithstanding
section
8.60,
the
portion
of
the
fee
paid
pursuant
to
paragraph
“a”
relating
to
the
costs
of
the
commission
shall
be
deposited
into
the
gaming
regulatory
revolving
fund
established
in
section
99F.20.
5.
Upon
a
violation
of
any
of
the
conditions
listed
in
section
99E.4
or
this
section
by
a
licensee,
the
commission
shall
immediately
revoke
the
license.
Sec.
31.
NEW
SECTION
.
99E.6
Internet
fantasy
sports
contest
tax
——
rate.
1.
A
tax
is
imposed
on
internet
fantasy
sports
contest
adjusted
revenues
received
each
fiscal
year
by
an
internet
fantasy
sports
contest
service
provider
from
internet
fantasy
sports
contests
authorized
under
this
chapter
at
the
rate
of
six
and
three-quarters
percent.
2.
The
taxes
imposed
by
this
section
for
internet
fantasy
sports
contests
authorized
under
this
chapter
shall
be
paid
by
the
internet
fantasy
sports
contest
service
provider
to
the
treasurer
of
state
as
determined
by
the
commission
and
shall
be
credited
as
provided
in
section
8.57,
subsection
6.
Sec.
32.
NEW
SECTION
.
99E.7
Internet
fantasy
sports
contests
——
age
restrictions.
A
person
under
the
age
of
twenty-one
years
shall
not
enter
an
internet
fantasy
sports
contest.
A
person
who
violates
this
section
with
respect
to
entering
an
internet
fantasy
sports
contest
commits
a
scheduled
violation
under
section
805.8C,
subsection
12.
Sec.
33.
NEW
SECTION
.
99E.8
Licensees
——
records
——
reports
——
confidentiality.
1.
An
internet
fantasy
sports
contest
service
provider
shall
keep
its
books
and
records
so
as
to
clearly
show
the
internet
fantasy
sports
contest
adjusted
revenues
for
each
internet
fantasy
sports
contest
subject
to
tax
in
this
state.
2.
a.
The
licensee
shall
furnish
to
the
commission
reports
and
information
as
the
commission
may
require
with
respect
to
the
licensee’s
activities.
Senate
File
617,
p.
21
b.
A
licensee
shall
promptly
report
to
the
commission
any
criminal
or
disciplinary
proceedings
commenced
against
the
licensee
or
its
employees
in
connection
with
the
licensee
conducting
an
internet
fantasy
sports
contest,
any
abnormal
contest
activity
or
patterns
that
may
indicate
a
concern
about
the
integrity
of
an
internet
fantasy
sports
contest,
and
any
other
conduct
with
the
potential
to
corrupt
an
outcome
of
an
internet
fantasy
sports
contest
for
purposes
of
financial
gain,
including
but
not
limited
to
match
fixing,
and
suspicious
or
illegal
internet
fantasy
sports
contest
activities,
including
the
use
of
funds
derived
from
illegal
activity,
deposits
of
money
to
enter
an
internet
fantasy
sports
contest
to
conceal
or
launder
funds
derived
from
illegal
activity,
use
of
agents
to
enter
an
internet
fantasy
sports
contest,
or
use
of
false
identification.
The
commission
is
required
to
share
any
information
received
pursuant
to
this
paragraph
with
the
division
of
criminal
investigation,
any
other
law
enforcement
entity
upon
request,
or
any
regulatory
agency
the
commission
deems
appropriate.
The
commission
shall
promptly
report
any
information
received
pursuant
to
this
paragraph
with
any
sports
team
or
sports
governing
body
as
the
commission
deems
appropriate,
but
shall
not
share
any
information
that
would
interfere
with
an
ongoing
criminal
investigation.
3.
Except
as
provided
in
subsection
4,
the
books
and
records
kept
by
a
licensee
as
provided
by
this
section
are
public
records
and
the
examination,
publication,
and
dissemination
of
the
books
and
records
are
governed
by
the
provisions
of
chapter
22.
4.
The
records
of
the
commission
shall
be
governed
by
the
provisions
of
chapter
22,
provided
that,
in
addition
to
records
that
may
be
kept
confidential
pursuant
to
section
22.7,
the
following
records
provided
by
a
licensee
to
the
commission
shall
be
kept
confidential,
unless
otherwise
ordered
by
a
court,
by
the
lawful
custodian
of
the
records,
or
by
another
person
duly
authorized
to
release
such
information:
a.
Patron
and
customer
records.
b.
Security
reports
and
network
audits.
c.
Internal
control
and
compliance
records.
d.
Employee
records.
Senate
File
617,
p.
22
e.
Marketing
expenses.
f.
Supplemental
schedules
to
the
certified
audit,
except
for
those
books
and
records
as
described
in
subsection
1
of
this
section,
that
are
obtained
by
the
commission
in
connection
with
the
annual
audit
under
section
99E.9.
g.
Any
information
specifically
requested
for
inspection
by
the
commission
or
a
representative
of
the
commission.
Sec.
34.
NEW
SECTION
.
99E.9
Annual
audit
of
licensee
operations.
Within
one
hundred
eighty
days
after
the
end
of
the
licensee’s
fiscal
year,
the
licensee
shall
transmit
to
the
commission
an
audit
of
the
licensee’s
total
internet
fantasy
sports
contest
operations,
including
an
itemization
of
all
expenses
and
subsidies.
Each
audit
shall
be
conducted
by
a
certified
public
accountant
authorized
to
practice
in
the
state
of
Iowa
under
chapter
542
who
is
selected
by
the
licensee
and
approved
by
the
commission.
Sec.
35.
NEW
SECTION
.
99E.10
Civil
penalty.
A
person
who
willfully
fails
to
comply
with
the
requirements
of
this
chapter
and
the
rules
adopted
pursuant
to
chapter
17A
under
this
chapter
shall
be
liable
for
a
civil
penalty
of
not
more
than
one
thousand
dollars
for
each
violation,
not
to
exceed
ten
thousand
dollars
for
violations
arising
out
of
the
same
transaction
or
occurrence,
which
shall
accrue
to
the
state
and
may
be
recovered
in
a
civil
action.
Sec.
36.
Section
99F.2,
Code
2019,
is
amended
to
read
as
follows:
99F.2
Scope
of
provisions.
This
chapter
does
not
apply
to
the
pari-mutuel
system
of
wagering
used
or
intended
to
be
used
in
connection
with
the
horse-race
or
dog-race
meetings
as
authorized
under
chapter
99D
,
internet
fantasy
sports
contests
authorized
under
chapter
99E,
lottery
or
lotto
games
authorized
under
chapter
99G
,
or
bingo
or
games
of
skill
or
chance
authorized
under
chapter
99B
.
Sec.
37.
Section
99F.4B,
Code
2019,
is
amended
to
read
as
follows:
99F.4B
Rules.
The
department
of
inspections
and
appeals
shall
cooperate
to
the
maximum
extent
possible
with
the
division
of
criminal
Senate
File
617,
p.
23
investigation
in
adopting
rules
relating
to
the
gaming
operations
in
this
chapter
and
chapter
chapters
99D
and
99E
.
Sec.
38.
Section
232C.4,
subsection
3,
Code
2019,
is
amended
to
read
as
follows:
3.
An
emancipated
minor
shall
remain
subject
to
voting
restrictions
under
chapter
48A
,
gambling
restrictions
under
chapter
99B
,
99D
,
99F
,
99G
,
or
725
,
internet
fantasy
sports
contest
restrictions
under
chapter
99E,
alcohol
restrictions
under
chapter
123
,
compulsory
attendance
requirements
under
chapter
299
,
and
cigarette
tobacco
restrictions
under
chapter
453A
.
Sec.
39.
Section
714B.10,
subsection
1,
Code
2019,
is
amended
to
read
as
follows:
1.
Advertising
by
sponsors
registered
pursuant
to
chapter
557B
,
licensed
pursuant
to
chapter
99B
,
or
regulated
pursuant
to
chapter
99D
,
99E,
99F
,
or
99G
.
Sec.
40.
Section
725.7,
subsection
1,
paragraph
e,
Code
2019,
is
amended
to
read
as
follows:
e.
Engage
in
bookmaking
,
except
as
permitted
in
chapters
99E
and
99F
.
Sec.
41.
Section
725.13,
Code
2019,
is
amended
to
read
as
follows:
725.13
Definition
of
bookmaking.
“Bookmaking”
means
advancing
gambling
activity
by
accepting
bets
upon
the
outcome
of
future
contingent
events
as
a
business
other
than
as
permitted
in
chapters
99B
,
99D
,
99E,
and
99F
.
These
events
include,
but
are
not
limited
to,
the
results
of
a
trial
or
contest
of
skill,
speed,
power,
or
endurance
of
a
person
or
beast
or
between
persons,
beasts,
fowl,
motor
vehicles,
or
mechanical
apparatus
or
upon
the
result
of
any
chance,
casualty,
unknown,
or
contingent
event.
Sec.
42.
Section
725.15,
Code
2019,
is
amended
to
read
as
follows:
725.15
Exceptions
for
legal
gambling.
Sections
725.5
through
725.10
and
725.12
do
not
apply
to
a
game,
activity,
ticket,
or
device
when
lawfully
possessed,
used,
conducted,
or
participated
in
pursuant
to
chapter
99B
,
99E,
99F
,
or
99G
.
Sec.
43.
Section
805.8C,
Code
2019,
is
amended
by
adding
the
Senate
File
617,
p.
24
following
new
subsection:
NEW
SUBSECTION
.
12.
Internet
fantasy
sports
contest
violations.
For
violations
of
legal
age
for
entering
an
internet
fantasy
sports
contest
under
section
99E.7,
the
scheduled
fine
is
five
hundred
dollars.
Failure
to
pay
the
fine
by
a
person
under
the
age
of
eighteen
shall
not
result
in
the
person
being
detained
in
a
secure
facility.
Sec.
44.
EMERGENCY
RULES.
The
state
racing
and
gaming
commission
created
under
section
99D.5
may
adopt
emergency
rules
under
section
17A.4,
subsection
3,
and
section
17A.5,
subsection
2,
paragraph
“b”,
to
implement
the
provisions
of
this
division
of
this
Act
and
the
rules
shall
be
effective
immediately
upon
filing
unless
a
later
date
is
specified
in
the
rules
but
in
no
event
earlier
than
July
4,
2019.
Any
rules
adopted
in
accordance
with
this
section
shall
also
be
published
as
a
notice
of
intended
action
as
provided
in
section
17A.4.
Sec.
45.
IMPLEMENTATION.
The
racing
and
gaming
commission
shall
not
implement
this
division
of
this
Act
until
the
later
of
July
4,
2019,
or
the
date
the
commission
has
adopted
rules
pursuant
to
chapter
17A
providing
for
such
implementation
and
such
rules
have
become
effective.
Sec.
46.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
DIVISION
III
GAMBLING
REGULATION
Sec.
47.
Section
8.57,
Code
2019,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
6.
a.
A
sports
wagering
receipts
fund
is
created
under
the
authority
of
the
department
of
management.
The
fund
shall
consist
of
appropriations
made
to
the
fund
and
transfers
of
interest,
earnings,
and
moneys
from
other
funds
or
sources
as
provided
by
law.
The
sports
wagering
receipts
fund
shall
be
separate
from
the
general
fund
of
the
state
and
the
balance
in
the
sports
wagering
receipts
fund
shall
not
be
considered
part
of
the
balance
of
the
general
fund
of
the
state.
However,
the
sports
wagering
receipts
fund
shall
be
considered
a
special
account
for
the
purposes
of
section
8.53,
relating
to
generally
accepted
accounting
principles.
b.
Moneys
in
the
sports
wagering
receipts
fund
are
not
Senate
File
617,
p.
25
subject
to
section
8.33.
Notwithstanding
section
12C.7,
subsection
2,
interest
or
earnings
on
moneys
in
the
sports
wagering
receipts
fund
shall
be
credited
to
the
fund.
Moneys
in
the
sports
wagering
receipts
fund
may
be
used
for
cash
flow
purposes
during
a
fiscal
year
provided
that
any
moneys
so
allocated
are
returned
to
the
fund
by
the
end
of
that
fiscal
year.
c.
Moneys
in
the
sports
wagering
receipts
fund
in
a
fiscal
year
shall
be
used
as
directed
by
the
general
assembly.
d.
Annually,
on
or
before
January
15
of
each
year,
a
state
agency
that
received
an
appropriation
from
the
sports
wagering
receipts
fund
shall
report
to
the
legislative
services
agency
and
the
department
of
management
the
status
of
all
projects
completed
or
in
progress.
The
report
shall
include
a
description
of
the
project,
the
progress
of
work
completed,
the
total
estimated
cost
of
the
project,
a
list
of
all
revenue
sources
being
used
to
fund
the
project,
the
amount
of
funds
expended,
the
amount
of
funds
obligated,
and
the
date
the
project
was
completed
or
an
estimated
completion
date
of
the
project,
where
applicable.
e.
Annually,
on
or
before
December
31
of
each
year,
a
recipient
of
moneys
from
the
sports
wagering
receipts
fund
for
any
purpose
shall
report
to
the
state
agency
to
which
the
moneys
are
appropriated
the
status
of
all
projects
completed
or
in
progress.
The
report
shall
include
a
description
of
the
project,
the
progress
of
work
completed,
the
total
estimated
cost
of
the
project,
a
list
of
all
revenue
sources
being
used
to
fund
the
project,
the
amount
of
funds
expended,
the
amount
of
funds
obligated,
and
the
date
the
project
was
completed
or
an
estimated
completion
date
of
the
project,
where
applicable.
Sec.
48.
Section
15E.311,
subsection
3,
paragraph
a,
Code
2019,
is
amended
to
read
as
follows:
a.
At
the
end
of
each
fiscal
year,
moneys
in
the
fund
shall
be
transferred
into
separate
accounts
within
the
fund
and
designated
for
use
by
each
county
in
which
no
licensee
authorized
to
conduct
gambling
games
under
chapter
99F
was
located
during
that
fiscal
year.
Moneys
transferred
to
county
accounts
shall
be
divided
equally
among
the
counties.
Moneys
transferred
into
an
account
for
a
county
shall
be
Senate
File
617,
p.
26
transferred
by
the
department
to
an
eligible
county
recipient
for
that
county.
Of
the
moneys
transferred,
an
eligible
county
recipient
shall
distribute
seventy-five
percent
of
the
moneys
as
grants
to
charitable
organizations
for
charitable
purposes
in
that
county
and
shall
retain
twenty-five
percent
of
the
moneys
for
use
in
establishing
a
permanent
endowment
fund
for
the
benefit
of
charitable
organizations
for
charitable
purposes.
In
addition,
of
the
moneys
transferred
from
moneys
appropriated
to
the
fund
from
the
sports
wagering
receipts
fund
created
in
section
8.57,
subsection
6,
and
distributed,
eligible
county
recipients
shall
give
consideration
for
grants,
upon
application,
to
a
charitable
organization
that
operates
a
racetrack
facility
that
conducts
automobile
races
in
that
county.
Of
the
amounts
distributed,
eligible
county
recipients
shall
give
special
consideration
to
grants
for
projects
that
include
significant
vertical
infrastructure
components
designed
to
enhance
quality
of
life
aspects
within
local
communities.
In
addition,
as
a
condition
of
receiving
a
grant,
the
governing
body
of
a
charitable
organization
receiving
a
grant
shall
approve
all
expenditures
of
grant
moneys
and
shall
allow
a
state
audit
of
expenditures
of
all
grant
moneys.
Sec.
49.
Section
99B.41,
Code
2019,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
1A.
“Social
fantasy
sports
contest”
means
any
fantasy
or
simulated
game
or
contest
in
which
the
value
of
all
prizes
and
awards
offered
to
winning
participants
are
established
and
made
known
to
the
participants
in
advance
of
the
contest
and
do
not
exceed
a
total
of
one
thousand
dollars
or
equivalent
consideration,
all
winning
outcomes
reflect
the
relative
knowledge
and
skill
of
the
participants
and
shall
be
determined
by
accumulated
statistical
results
of
the
performance
of
individuals
in
events
occurring
over
more
than
a
twenty-four-hour
period,
including
athletes
in
the
case
of
sporting
events,
and
no
winning
outcome
is
solely
based
on
the
score,
point
spread,
or
any
performance
or
performances
of
any
single
actual
team
or
solely
on
any
single
performance
of
an
individual
athlete
or
player
in
any
single
actual
event.
“Social
fantasy
sports
contest”
does
not
include
an
internet
fantasy
sports
contest
as
defined
in
section
99E.1.
Senate
File
617,
p.
27
Sec.
50.
Section
99B.45,
subsection
2,
Code
2019,
is
amended
by
adding
the
following
new
paragraph:
NEW
PARAGRAPH
.
c.
A
social
fantasy
sports
contest.
Sec.
51.
Section
99F.6,
Code
2019,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
9.
The
board
of
directors
of
a
qualified
sponsoring
organization
licensed
to
operate
gambling
games
under
this
chapter
shall
be
residents
of
this
state
and
shall
include,
as
ex
officio,
nonvoting
members
of
the
board,
a
member
of
the
county
board
of
supervisors
and
a
member
of
a
city
council
for
each
county
and
city
that
has
a
licensed
gambling
games
facility
operated
by
the
qualified
sponsoring
organization.
The
ex
officio
members
shall
serve
terms
of
the
same
duration
as
voting
members
of
the
board.
However,
this
subsection
shall
not
apply
to
an
agency,
instrumentality,
or
political
subdivision
of
the
state
that
is
licensed
to
conduct
gambling
games
under
this
chapter.
Sec.
52.
EFFECTIVE
DATE.
The
following,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment:
The
section
of
this
division
of
this
Act
amending
section
8.57.
______________________________
CHARLES
SCHNEIDER
President
of
the
Senate
______________________________
LINDA
UPMEYER
Speaker
of
the
House
I
hereby
certify
that
this
bill
originated
in
the
Senate
andis
known
as
Senate
File
617,
Eighty-eighth
General
Assembly.
______________________________
W.
CHARLES
SMITHSON
Secretary
of
the
Senate
Approved
_______________,
2019
______________________________
KIM
REYNOLDS
Governor