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. Various effective dates; see sections 23, 46, and 52 of bill

“Sports wagering” is further defined to exclude wagering on the performance of an athlete participating in a collegiate sporting event that includes a collegiate team from this state or in an individual olympic event in which any athlete is under years of age. The bill defines “authorized sporting event” as a professional sporting event, collegiate sporting event, international sporting event or professional motor race event.102. The bill further defines each sporting event included in the definition of authorized sporting event and defines and excludes from the definition of “professional sporting event”, a minor league sporting event. “Sports wagering net receipts” is defined as gross receipts less winnings paid to wagerers on sports wagering. “Sports wagering area” is defined as an area, as designated by the commission, in which sports wagering is conducted.4(22), concerning persons voluntarily excluded from wagering or gaming areas, are amended to include internet fantasy sports contests, advance deposit wagering, advance deposit sports wagering, and the sports wagering area.3, concerning authorized wagering under Code chapter 99F, is amended to authorize sports wagering.4, concerning racing and gaming commission powers, is amended to authorize the operation of sports wagering in a sports wagering area on an excursion gambling boat which is also licensed to serve alcoholic beverages, grants the racing and gaming commission the authority to adopt standards under which sports wagering is conducted including the scope and type of wagers allowed.20.6, concerning distribution of gambling game receipts for educational, civic, public, charitable, patriotic, or religious uses, is amended to provide that three-quarters of one percent of sports wagering net receipts shall also be distributed for these purposes.6, concerning licensee applicants, is further amended to provide that net receipts, for purposes of determining purse agreements for horse racing, include sports wagering net receipts.7A provides specific requirements relative to the licensing, operation, and fees applicable to sports wagering. The bill provides that the commission shall, upon payment of an initial license fee of $75,000, 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. The bill provides for an annual renewal fee of $5,000. The new Code section also provides that a licensee shall include on the internet site or mobile application used by the licensee to conduct advance deposit sports wagering the statewide telephone number authorized by the Iowa department of public health to provide problem gambling information and extensive responsible gaming features. The bill provides that a licensee establish, and display and post, sports wagering rules specifying the amounts to be paid on winning wagers, the effect of changes in the scheduling of an authorized sporting event, and the source of information used to determine the outcome of a wager. The bill also provides that a licensee may enter into operating agreements with up to two entities to conduct advance deposit sports wagering. The new Code section also provides that a licensee issued a license to conduct sports wagering shall employ reasonable steps to prohibit coaches, athletic trainers, officials, players, participants, or other persons employed in a position with direct involvement with such individuals from sports wagering under Code chapter 99F.8, concerning licensee bonding requirements, is amended to make such requirements applicable to sports wagering.9, concerning wagering on gambling games, is amended to allow the commission to authorize gambling game licensees under Code chapter 99F to conduct advance deposit sports wagering.7A to enter into an agreement with an advance deposit sports wagering operator licensed by the commission to provide advance deposit sports wagering for the licensee and allows the commission to require the advance deposit sports wagering operator to conduct an audit. The bill would allow for an advance deposit wager to be placed in person at a licensed facility authorized to conduct gambling games or from any other location by telephone or other electronic means. The bill defines “advance deposit sports wagering” as a form of wagering where an eligible individual creates an account with a licensee, deposits money into that account, and can use the balance within the account for sports wagering. Prior to January 1, 2021, an account must be established in person with a licensee. The bill defines an “eligible individual” for purposes of advance deposit sports wagering as an individual years of age or older who is located within this state. The bill provides that an unlicensed person taking sports wagers from Iowa residents is guilty of a class “D” felony, punishable by confinement for no more than five years and a fine of at least $750 but not more than $7,500. The Code section is also amended to provide that a person under the age of shall not make or attempt to make a wager by advance deposit sports wagering.11, concerning the wagering tax, is amended. The bill provides that sports wagering net receipts received each fiscal year by a licensed operator from sports betting shall be taxed at the rate of six and three-quarters percent. The taxes imposed shall be paid by the licensed operator to the treasurer of state as determined by the commission.311 with the remainder of taxes collected to be credited to the state philanthropy, opportunity, reinvestment, and tourism fund as created by the bill.12, concerning certain required reports and records of licensees, is amended to provide that a sports wagering licensee shall promptly report to the commission any criminal or disciplinary proceedings commenced against the licensee, any abnormal sports wagering activity, and any other conduct with the potential to corrupt a wagering outcome of an authorized sporting event. The bill requires the commission to promptly report any information received with any law enforcement entity, sports team, sports governing body, or regulatory agency the commission deems appropriate. The bill also provides that, with the approval of the racing and gaming commission, a sports wagering licensee shall cooperate with investigations conducted by a sports governing body.15, concerning certain prohibited activities and penalties, is amended to provide that current prohibitions on cheating at a gambling game, claiming anything of value from a gambling game with intent to defraud, and knowingly enticing a person to go where a gambling game is conducted in violation of Code chapter 99F also applies to sports wagering.20, concerning the gaming regulatory revolving fund, is amended to provide that regulatory fees by an internet fantasy sports contest service provider and by a licensee authorized to conduct sports wagering shall be deposited in the fund. The Code section is further amended to provide that costs relating to internet fantasy sports contest and sports wagering regulation shall be paid from the gambling regulatory revolving fund as provided in appropriations made for this purpose by the general assembly. The bill also authorizes the racing and gaming commission to issue a temporary license to an advance deposit sports wagering operator. This division of the bill takes effect upon enactment. However, the bill authorizes the racing and gaming commission to adopt emergency rules to implement the bill and provides that the racing and gaming commission shall not implement this division of the bill until the later of July 4, 2019, or the date the commission has adopted rules pursuant to Code chapter 17A providing for such implementation and such rules have become effective. FANTASY SPORTS CONTESTS. Division II of the bill authorizes internet fantasy sports contests and provides for the licensing, regulation, and taxation of internet fantasy sports contests.25, concerning gaming investigation and enforcement by the division of criminal investigation of the department of public safety, is amended to provide for investigation and enforcement concerning the new Code chapter.1 provides for definitions. A “fantasy sports contest” is defined as any fantasy or simulated game or contest in which all prizes and awards offered to winning participants are established and made known in advance of the contest, all winning outcomes reflect the relative knowledge and skill of the participants and are determined predominantly by accumulated statistical results of the performance of individuals, and no winning outcome is solely based on the score, or performance of any single actual team or combination of such teams or solely on any single performance of an individual athlete in any single actual sporting or other event. An “internet fantasy sports contest” is defined as a method of entering a fantasy sports contest by establishing an account with an internet fantasy sports contest service provider. An “internet fantasy sports contest player” is defined as a person who is at least years of age who participates in an internet fantasy sports contest. The bill also defines “internet fantasy sports contest adjusted revenues”, “internet fantasy sports contest service provider”, and “location percentage”.2 provides that the system of entering an internet fantasy sports contest is legal when conducted by a licensed internet fantasy sports contest service provider as provided in the new Code chapter.3 establishes the powers of the racing and gaming commission in relation to internet fantasy sports contests and internet fantasy sports contest service providers. Specifically, the Code section authorizes the commission to investigate and license internet fantasy sports contest service providers, assess fines and revoke or suspend licenses, impose penalties for violations of the Code chapter, and take any other action to enforce the requirements of the new Code chapter.4 establishes the requirements for an applicant to be granted a license to conduct internet fantasy sports contests. The Code section allows the commission to charge the applicant a fee for the department of public safety, division of criminal investigation, to defray the costs associated with any investigation. The new Code section provides that a license shall not be issued if there is evidence that the applicant has failed to meet certain qualifying requirements. The Code section provides that a person who knowingly makes a false statement on the application is guilty of an aggravated misdemeanor.5 establishes the terms and conditions of licenses issued to conduct internet fantasy sports contests. The Code section provides that a license may be issued for a period of not more than three years and provides for an initial license fee of $5,000 and an annual license fee of $1,000 or $5,000 for licensees with annual internet fantasy sports contest adjusted revenues of $150,000 or more. The bill provides that the license fees shall be deposited in the state philanthropy, opportunity, reinvestment, and tourism fund as created by the bill. The Code section also provides for the payment of a regulatory fee to be set by the racing and gaming commission based on the costs of administering and enforcing the new Code chapter. The Code section further provides that each licensee shall receive a credit for the amount of the regulatory fee paid against taxes to be paid pursuant to the new Code chapter. The Code section provides that a licensed internet fantasy sports contest service provider shall use commercially reasonable methods to prevent any employees and certain family members from participating in internet fantasy sports contests on the service provider’s digital platform, verify that internet fantasy sports contest players located in this state are or older, ensure that participants in a game or contest shall not be allowed to enter an internet fantasy sports contest involving that game or contest, permit individuals to establish an account with an internet fantasy sports contest service provider by electronic communication and to restrict themselves from entering an internet fantasy sports contest, conduct an annual audit, and pay the tax imposed by the new Code chapter.6 provides for a tax of six and three-quarters percent on internet fantasy sports contest adjusted revenues. The bill defines “internet fantasy sports contest adjusted revenues” as the total of fees and charges collected, less winnings, in an internet fantasy sports contest multiplied by the percentage of fees and charges paid by participants who are located in this state in that contest. The taxes imposed shall be paid by the internet fantasy sports contest service provider to the treasurer of state as determined by the commission.311 with the remainder of taxes collected to be credited to the state philanthropy, opportunity, reinvestment, and tourism fund as created by the bill.7 provides that a person under the age of shall not enter an internet fantasy sports contest.8C and is subject to a $500 fine.8C is amended to reflect this violation and applicable fine.8 requires an internet fantasy sports contest service provider to keep books and records on internet fantasy sports contest adjusted revenues and to provide the commission with reports and information as the commission may require. The bill provides that a licensee promptly report to the commission any criminal or disciplinary proceedings commenced against the licensee, any abnormal fantasy sports contest activity, and any other conduct with the potential to corrupt an outcome of an internet fantasy sports contest. The bill authorizes the commission to share any information received with the division of criminal investigation, any other law enforcement entity, or regulatory agency the commission deems appropriate. The commission shall promptly report information with a sports team or sports governing body as the commission deems appropriate if it will not interfere with an ongoing criminal investigation.9 requires a licensee to conduct an audit within days after the end of the licensee’s fiscal year.10 establishes civil penalties. The new Code section provides that a person who willfully fails to comply with the requirements of this new Code chapter shall be liable for a civil penalty of not more than $1,000 for each violation, not to exceed $10,000 for violations arising out of the same transaction or occurrence.15 to provide that provisions in those Code sections that list some or all Code chapters that govern lawful gambling also lists the new Code chapter provided in this division of the bill. This division of the bill takes effect upon enactment. However, the bill authorizes the racing and gaming commission to adopt emergency rules to implement the bill and provides that the racing and gaming commission shall not implement this division of the bill until the later of July 4, 2019, or the date the commission has adopted rules pursuant to Code chapter 17A providing for such implementation and such rules have become effective. GAMBLING REGULATION.57 is amended to create a state philanthropy, opportunity, reinvestment, and tourism fund under the control of the department of management. Moneys in the fund shall be used as directed by the general assembly. This provision of this division of the bill takes effect upon enactment.6 is amended to provide that a qualified sponsoring organization licensed to operate gambling games 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.17A, concerning gambling games or implements of gambling, is amended to provide that if a licensee offers gambling games containing a wheel and ball, or virtual simulation, at least one of these games shall provide for a house edge under percent for a single number wager.