SSB 1081

“Official league data” is defined to mean any data related to a sporting event obtained and authorized for use through the relevant sports governing body of that sporting event. “Sports governing body” is defined to mean the organization that prescribes final rules and codes of conduct with respect to a sporting event and “registered sports governing body” is defined to mean a sports governing body that is headquartered in the United States and has registered with the racing and gaming commission. “Sports wagering operator” is defined to mean an interactive sports wagering platform that has entered into an agreement with a gaming licensee to conduct sports wagering and a gaming licensee that conducts sports wagering pursuant to the requirements of the new Code chapter. “Gaming licensee” is defined as a person licensed to conduct gambling games under Code chapter 99F.1. “Tier one sports wager” means a sports wager that is solely determined by the final score or outcome of a sporting event that is placed before the sporting event begins and “tier two sports wager” means a sports wager that is not a tier one sports wager.2 provides that the system of sports wagering is legal when conducted by a sports wagering operator as provided in the new Code chapter.3 establishes the powers of the racing and gaming commission to license and regulate sports wagering. The Code section authorizes the commission to investigate applicants for a license as an interactive sports wagering platform, assess fines and revoke or suspend licenses, impose penalties for violations of the new Code chapter, regulate advertisements for sports wagering and sports wagering operators, and to take any other action to enforce the requirements of the new Code chapter. The Code section also authorizes the commission to establish procedures for sports governing bodies to register with the commission and to restrict, limit, or exclude wagers on certain sporting events and to restrict sources of data that may be utilized for purposes of sports wagering.4 establishes requirements for an applicant receiving a license as an interactive sports wagering platform and for authorizing a gaming licensee to conduct sports wagering. The Code section sets the initial fee for a license as an interactive sports wagering platform at $10,000 with an annual renewal fee of $5,000.5 establishes terms and conditions for sports wagering operators. _____ report criminal and disciplinary proceedings and abnormal betting activity to the racing and gaming commission and the relevant sports governing body, maintain the confidentiality of information provided by a sports governing body to the sports wagering operator, and pay the royalty fee imposed by the new Code chapter. In addition, the Code section authorizes a sports wagering operator to share revenue with a sports governing body.6 establishes sports wagering requirements and a royalty fee. The Code section provides that 30 days after notification by a sports governing body, a sports wagering operator shall use only official league data for tier two sports wagers unless the sports governing body is unable to provide the data on commercially reasonable terms. The Code section also requires sports wagering operators to remit to the racing and gaming commission a royalty fee of one-quarter of one percent of amounts wagered on sporting events conducted by registered sports governing bodies. The Code section provides the mechanism for distributing royalty fee funds remitted to the commission to registered sports governing bodies.7 concerns records and confidentiality. The Code section requires sports wagering operators to maintain records of all bets and wagers and to provide information on bets and wagers on sporting events sanctioned by a sports governing body to the sports governing body upon notice to the racing and gaming commission. The Code section provides that certain records provided by a sports wagering operator to the racing and gaming commission shall be kept confidential by the commission, except as otherwise provided by the Code section, unless otherwise ordered by a court, by the lawful custodian of the records, or by another person duly authorized to release such information. _____ marketing expenses, and any information specifically requested for inspection by the commission.8 authorizes the division of criminal investigation of the department of public safety to investigate compliance by sports wagering operators with the requirements of the new Code chapter.9 establishes civil and criminal penalties for certain violations. The 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. The bill also establishes that a person is guilty of a class “C” felony for placing a bet or wager on the basis of material nonpublic information relating to the bet or wager or knowingly engaging in or concealing conduct intended to improperly influence a betting outcome. A class “C” felony is punishable by confinement for no more than 10 years and a fine of at least $1,000 but not more than $10,000.15 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 the bill. The bill provides for the issuance of a transitional license by the racing and gaming commission to a person to conduct sports wagering as an interactive sports wagering platform in this state if the person has been granted a license or registration by two or more other states to conduct sports wagering. The bill provides that the transitional license shall be valid until the earlier of the date the commission grants or denies a license to the person or 12 months from the date the commission accepts applications for issuance of a license. _____ The bill provides that this division takes effect upon enactment. 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.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 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 21 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. _____ 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 that the annual license fee shall be $500. 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. _____ provider by electronic communication and to restrict themselves from entering an internet fantasy sports contest, perform an independent audit, and pay the tax imposed by the new Code chapter.5 percent to be imposed on internet fantasy sports contest adjusted revenues.1, “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.5 percent of internet fantasy sports contest adjusted revenues is transferred to a special revenue account in the general fund to be used, subject to an appropriation, by the department of public health for gambling treatment with the remainder of revenues collected to be deposited in the rebuild Iowa infrastructure fund.7 provides that a person under the age of 21 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 authorizes the division of criminal investigation of the department of public safety to investigate licensee compliance with the requirements of the new Code chapter.9 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.