Bills › 91st General Assembly
Relating to illegal gaming, and making penalties applicable
Proposed by the Department of Public Safety · their explanation · all agency proposals
Where it is now
- Done: IntroducedJanuary 15, 2025
- Done: SubcommitteeJanuary 15, 2025
- Done: House committeeMarch 5, 2025
- Skipped: Passes the HouseContinued as HF 850
- Next: Senate committee
- Next: Passes the Senate
- Next: To the Governor
- Next: Signed into law
Became HF 850 → Its progress continues under the new number. Go to HF 850 What’s a funnel?
What’s in it
AI summary New rules would make sharing gambling accounts, betting for someone else, and charging fees to place bets illegal. People who break these laws could face different criminal penalties depending on how much money is involved and if they have been caught before. These changes affect anyone participating in these specific types of unauthorized gambling activities.1
Read the official explanation
This bill relates to illegal gaming.7(1). A person who violates these prohibitions is guilty of illegal gaming and is subject to criminal penalties. The bill defines “account sharing” and “proxy betting” and includes those activities in the list of activities considered illegal gaming. The bill also includes in the activities considered illegal gaming the act of delivering anything of value to place as a wager in a pari-mutuel pool or other authorized system of wagering after receiving that thing of value, for a fee, outside of a gambling structure. A person guilty of illegal gaming commits an offense ranging from a serious misdemeanor to a class “C” felony based on the sum of money or value of other property involved and whether the offense was a first or repeat offense. Illegal gaming in the fourth degree ($100 or less) constitutes a serious misdemeanor for a first offense, an aggravated misdemeanor for a second offense, a class “D” felony for a third offense, and a class “C” felony for a fourth or subsequent offense. Illegal gaming in the third degree ($100 to $500) constitutes an aggravated misdemeanor for a first offense, a class “D” felony for a second offense, and a class “C” felony for a third or subsequent offense. Illegal gaming in the second degree ($500 to $5,000) constitutes a class “D” felony for a first offense and a class “C” felony for a second or subsequent offense. Illegal gaming in the first degree (more than $5,000) constitutes a class “C” felony. _____ $2,560. An aggravated misdemeanor is punishable by confinement for no more than two years and a fine of at least $855 but not more than $8,540. A class “D” felony is punishable by confinement for no more than five years and a fine of at least $1,025 but not more than $10,245. A class “C” felony is punishable by confinement for no more than years and a fine of at least $1,370 but not more than $13,660.
House subcommittee
Named January 15, 2025. On January 23, 2025 it recommended passage.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Fiscal note
AI summary This bill makes proxy betting and account sharing illegal activities under Iowa gaming laws. The impact on the state's General Fund, including costs for the Judicial Branch, the Indigent Defense Fund, and the Department of Corrections, cannot be determined because the number of new convictions cannot be estimated.3
Read the fiscal note
Description
House File 850 adds that a person who engages in “proxy betting” or “account sharing” is guilty of illegal gaming under Iowa Code section 725.7.
The Bill defines “proxy betting” as any wagering or betting activity, including the request of another to engage in wagering or betting activity, involving two or more persons, where one person places a wager on behalf of another person with the intent to hide or conceal the bettor’s identity.
The Bill defines “account sharing” as entering into or participating in an agreement between two or more persons to, either temporarily or permanently, share access to a person’s account with the purpose of concealing a person’s identity, which account has been established with a licensee to participate in gambling games or sports wagering under Iowa Code chapter 99F.
Background
A person who violates Iowa Code section 725.7 commits an offense ranging from a serious misdemeanor to a Class C felony based on the sum of money or value of other property involved and whether the offense was a first or repeat offense.
A serious misdemeanor is punishable by confinement for no more than one year and a fine of at least $430 but not more than $2,560. An aggravated misdemeanor is punishable by confinement for up to two years and a fine of at least $855 but not more than $8,540. A Class D felony is punishable by confinement for no more than five years and a fine of at least $1,025 but not more than $10,245. A Class C felony is punishable by confinement for up to 10 years and a fine of at least $1,370 but not more than $13,660.
In FY 2024, there was one person convicted under Iowa Code section 725.7.
Assumptions
- The following will not change over the projection period: charge, conviction, and sentencing patterns and trends; prisoner length of stay (LOS); revocation rates; plea bargaining; and other criminal justice system policies and practices.
- A delay of six months is assumed from the effective date of this Bill to the date of first entry of affected offenders into the correctional system.
- Marginal costs for county jails cannot be estimated due to a lack of data. For purposes of this analysis, the marginal cost for county jails is assumed to be $50 per day.
Correctional Impact
The correctional impact of the Bill cannot be determined because the number of new convictions cannot be estimated. Figure 1 shows estimates for sentencing to State prison, parole, probation, or Community-Based Corrections (CBC) residential facilities; LOS in months under those supervisions; and supervision marginal costs per day for a serious misdemeanor, an aggravated misdemeanor, a Class D felony, and a Class C felony. Refer to the Legislative Services Agency (LSA) memo addressed to the General Assembly, Cost Estimates Used for Correctional Impact Statements, dated January 13, 2025, for information related to the correctional system.
Figure 1 — Sentencing Estimates and Length of Stay (LOS) in Months
Minority Impact
The minority impact cannot be determined since it is not known how many additional convictions would result from the changes under the Bill. Refer to the LSA memo addressed to the General Assembly, Minority Impact Statements, dated January 13, 2025, for information related to minorities in the criminal justice system.
Fiscal Impact
House File 850 may increase the number of convictions under Iowa Code section 725.7; however, the extent of the increase in costs to the Department of Corrections (DOC) is unknown. Figure 2 shows the average State cost per offense for a serious misdemeanor, an aggravated misdemeanor, a Class D felony, and a Class C felony. The estimated impact to the General Fund includes operating costs incurred by the Judicial Branch, the Indigent Defense Fund, and the DOC. The cost would be incurred across multiple fiscal years for prison and parole supervision.
Figure 2 — Average State Cost Per Offense
Sources
- Department of Corrections
- Criminal and Juvenile Justice Planning (CJJP), Department of Management (DOM)
- Sports Wagering, Prohibited Activities · March 10, 2025
- Sports Wagering, Prohibited Activities · February 26, 2025
Iowa Code it changes
Lobbying
2 for · 0 against · 13 undecided · Who →
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91st General Assembly