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Amendments › HF 2497

Amendment S-5160 to HF 2497

Relating to gambling regulation and wagering, concerning cashless wagering, forfeiture and withholding of certain gaming winnings, sports wagering, occupational licenses, limitations on gambling game licenses, and simulcasting licensure and taxation, providing penalties and making penalties applicable, and including effective date and retroactive applicability provisions

Adopted · May 23, 2022

Filed May 23, 2022 in the Senate by Sen. Roby Smith (R)

What it changes

AI summary This amendment requires mobile gambling applications to include a problem gambling helpline and extensive responsible gaming features. It also adds rules that limit the number of gambling game licenses to nineteen and restricts them to specific counties. Additionally, it adds penalties for people who use fraudulent identification or pass winning wagers to others to avoid being excluded from gambling.1

Read the amendment’s wording
  1. Page 1, by striking lines 10 and 11 and inserting “to cashless wagering systems where a person accesses a cash account through a mobile application used by the licensee to conduct cashless wagering. The mobile application shall include 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 99D,7, subsection
  2. ”
  3. Page 1, by striking lines 19 and 20 and inserting “apply to cashless wagering systems where a person accesses a cash account through a mobile application used by the licensee to conduct cashless wagering. The mobile application shall include 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
  4. ”
  5. By striking page 1, line 23, through page 6, line 2, and inserting: “Sec. ___. Section 99D.7, subsection 23, Code 2022, is amended to read as follows:
  6. 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 , and from the wagering area of a racetrack enclosure, from the gaming floor, and from the 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 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. The commission shall not initiate any administrative action or impose penalties on a licensee who voluntarily reports to the commission activity described in section 99D.24, subsection 4, paragraph “c” . Sec. ___. Section 99D.24, subsection 4, Code 2022, is amended by adding the following new paragraphs: NEW PARAGRAPH . c. Knowingly or intentionally passes a winning wager or share to another person or provides fraudulent identification in order to avoid the forfeiture of any money or thing of value as a voluntarily excluded person pursuant to the processes established under section 99D.7, subsection
  7. NEW PARAGRAPH . d. Knowingly or intentionally passes a winning wager or share to another person or provides fraudulent identification in order to avoid the application of a setoff as provided in section 99D.28. Sec. ___. Section 99D.28, subsection 7, Code 2022, is amended to read as follows:
  8. A claimant agency or licensee, acting in good faith, shall not be liable to any person for actions taken pursuant to this section . In addition, the commission shall not initiate any administrative action or impose penalties on a licensee who voluntarily reports to the commission activity described in section 99D.24, subsection 4, paragraph “d” . Sec. ___. Section 99F.4, subsection 22, Code 2022, is amended to read as follows:
  9. 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 , 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 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 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. The commission shall not initiate any administrative action or impose penalties on a licensee who voluntarily reports to the commission activity described in section 99F.15, subsection 4, paragraph “n” . Sec. ___. Section 99F.15, subsection 4, Code 2022, is amended by adding the following new paragraphs: NEW PARAGRAPH . n. Knowingly or intentionally passes a winning wager or share to another person or provides fraudulent identification in order to avoid the forfeiture of any money or thing of value as a voluntarily excluded person pursuant to the processes established under section 99F.4, subsection
  10. NEW PARAGRAPH . o. Knowingly or intentionally passes a winning wager or share to another person or provides fraudulent identification in order to avoid the application of a setoff as provided in section 99F.19. Sec. ___. Section 99F.19, subsection 7, Code 2022, is amended to read as follows:
  11. A claimant agency or licensee, acting in good faith, shall not be liable to any person for actions taken pursuant to this section . In addition, the commission shall not initiate any administrative action or impose penalties on a licensee who voluntarily reports to the commission activity described in section 99F.15, subsection 4, paragraph “o” .”
  12. Page 6, by striking lines 5 through
  14. Page 7, by striking lines 12 through 15 and inserting “a collegiate team from this state is a participant, or placing a wager on the performance of athletes”
  15. Page 9, after line 25 by inserting: “DIVISION ___ GAMBLING GAME LICENSE MORATORIUM Sec. ___. NEW SECTION . 99F.5A Limitations on issuance of licenses to conduct gambling games.
  16. Commencing June 1, 2022, the total number of licenses issued by the commission to conduct gambling games on an excursion gambling boat, at a gambling structure, or at a pari-mutuel racetrack shall not exceed nineteen subject to the requirements of this section.
  17. Licenses to conduct gambling games shall be restricted to those counties where an excursion gambling boat, gambling structure, or racetrack enclosure was operating and licensed to conduct gambling games on June 1,
  19. The commission shall be authorized to take any of the following actions concerning the issuance of licenses to conduct gambling games: a. A gambling games licensee may move to a new location within the same county and retain the gambling games license. b. A licensed facility may be sold and a new gambling games license issued for operation in the same county. c. If a license to conduct gambling games is surrendered, not renewed, or revoked, a new gambling games license may be issued for operation in the same county.
  20. This section is repealed June 30,
  21. Sec. ___. EFFECTIVE DATE. This division of this Act, being deemed of immediate importance, takes effect upon enactment. Sec. ___. RETROACTIVE APPLICABILITY. This division of this Act applies retroactively to June 1,
  22. DIVISION ___ SIMULCASTING LICENSURE AND TAXATION Sec. ___. NEW SECTION . 99D.9D Alternative simulcasting licensure —— horse and dog races.
  23. An entity that has entered into an agreement with the Iowa horsemen’s benevolent and protective association for source market fees related to simultaneously telecast horse or dog races may submit an application to the commission for a license under this chapter to conduct pari-mutuel wagering on simultaneously telecast horse or dog races, subject to the requirements of this section. Unless inconsistent with the requirements of this section, an entity submitting an application for a license under this section shall comply with all requirements for submitting an application for a license under this chapter.
  24. If an application for a license under subsection 1 is approved by the commission pursuant to the requirements of this section and section 99D.9, the entity submitting the application shall be granted a license under this section to conduct pari-mutuel wagering on simultaneously telecast horse or dog races conducted at a facility of a licensee authorized to conduct gambling games under chapter 99D or chapter 99F pursuant to an agreement with the licensee of that facility as authorized by this section. A licensee issued a license pursuant to this section shall comply with all requirements of this chapter applicable to licensees unless otherwise inconsistent with the provisions of this section.
  25. A license issued pursuant to this section shall authorize the licensee to enter into an agreement with any licensee authorized to operate an excursion gambling boat or gambling structure under chapter 99F to conduct, without the requirement to conduct live horse or dog races at the facility, pari-mutuel wagering on simultaneously telecast horse or dog races at the facility of the licensee authorized to operate an excursion gambling boat or gambling structure under chapter 99F.
  26. The commission shall establish an annual license fee and regulatory fee for any entity issued a license under this section to conduct pari-mutuel wagering on simultaneously telecast horse or dog races as authorized by this section. The commission shall not impose any other fees for simultaneously telecast horse or dog races conducted by any licensee under this section.
  27. The commission shall require that an annual audit be conducted and submitted to the commission, in a manner determined by the commission, concerning the operation of the simultaneously telecast horse or dog races by any licensee under this section. Sec. ___. Section 99D.15, subsection 4, Code 2022, is amended by striking the subsection and inserting in lieu thereof the following:
  28. A tax is imposed on the gross sum wagered by the pari mutuel method on horse races and dog races which are simultaneously telecast, in lieu of the taxes imposed pursuant to subsection 1 or
  29. The rate of tax is determined as follows: a. If wagering on simultaneously telecast horse races and dog races is not conducted by a licensee under section 99D.9D, a tax of two percent is imposed on the gross sum wagered by the pari-mutuel method on horse races and dog races which are simultaneously telecast. The tax revenue from simulcast horse races under this paragraph shall be distributed as provided in subsection 1 and the tax revenue from simulcast dog races under this paragraph shall be distributed as provided in subsection
  30. b. If wagering on simultaneously telecast horse races and dog races is conducted by a licensee under section 99D.9D, a tax of two percent is imposed on the gross sum wagered by the pari-mutuel method on horse races and dog races which are simultaneously telecast in excess of twenty-five million dollars in a calendar year. Of the tax revenue collected from simulcast horse races under this paragraph, one-half of one percent of the gross sum wagered shall be remitted to the treasurer of the county in which a horse racetrack is located in this state and licensed under this chapter. The remaining amount of tax revenue shall be deposited with the commission.”
  31. Title page, line 3, by striking “and” and inserting “limitations on gambling game licenses, and simulcasting licensure and taxation,”
  32. Title page, line 4, after “penalties” by inserting “and making penalties applicable, and including effective date and retroactive applicability provisions”
  33. By renumbering, redesignating, and correcting internal references as necessary.

Official amendment (PDF) · In the Bill Book