Proyectos de ley › 91.ª Asamblea General
Concerning the regulation and support of leisure activities, including by providing for gambling enforcement, license fees, tax rates, and the use of associated revenue, establishing the Iowa major events and tourism program and fund, modifying the sports tourism marketing and infrastructure program, making appropriations, and including effective date provisions
Presentado por el comité Ways and Means del Senado
Dónde está ahora
- Hecho: Presentado18 de febrero de 2025
- Hecho: Subcomité19 de febrero de 2025
- Hecho: Comité del Senado18 de marzo de 2025
- Se saltó: Lo aprueba el SenadoSigue como SF 625
- Sigue: Comité de la Cámara
- Sigue: Lo aprueba la Cámara
- Sigue: A gobernador(a)
- Sigue: Firmado como ley
Ahora es SF 625 → Sigue avanzando con el número nuevo. Ir a SF 625 ¿Qué es el embudo (funnel)?
Qué contiene
Resumen con IA This bill changes how Iowa taxes sports betting, gambling boats, and racetracks while providing more money to the Department of Public Safety for equipment. It also creates a new program to give grants to nonprofit organizations that host large events like music festivals, conventions, or athletic contests to help boost tourism. Additionally, the bill updates rules for sports tourism funding to make it available to more types of nonprofit groups. (Todavía no está traducido al español.)1
Lea la explicación oficial (en inglés)
This bill concerns the regulation and support of leisure activities. GAMBLING REGULATION.75 percent, which is deposited in the sports wagering receipts fund. The bill increases the rate to percent. For FY 2026-2027 and each fiscal year thereafter, the bill appropriates $8 million from the sports wagering receipts fund to the public safety equipment fund, which is used by the department of public safety (DPS) for purchase, maintenance, and replacement of equipment. The bill exempts the appropriated moneys from the sports wagering receipts fund reporting requirements under current law, as current law already requires DPS to report on the use of moneys in the public safety equipment fund. 10, the state racing and gaming commission (commission) must use the amount appropriated to the commission plus the gaming enforcement costs of DPS’s division of criminal investigation. The portion of the fees associated with such enforcement costs is deposited in the gaming enforcement revolving fund to be annually appropriated by the general assembly to DPS for gaming enforcement. The bill strikes the portion of the fees that is based on DPS enforcement costs, and the associated deposit in the gaming enforcement revolving fund.4(4)).57(3) (rebuild Iowa infrastructure fund). The bill instead provides that such revenue is to be deposited in the Iowa horse racing fund, created in the bill, to be used by the commission for distribution to entities subject to federal horse racing regulations. Under current law, the annual license fee to operate an excursion gambling boat or gambling structure is $5 per person capacity. The bill increases the rate to $10 per person capacity. Under current law, a tax is imposed on the adjusted gross receipts received each fiscal year from excursion gambling boats, gambling structures, and racetrack enclosures conducting gambling games. The rate is percent on the first $1 million and percent on the next $2 million. Over $3 million, the tax rate is percent for an excursion gambling boat or gambling structure, and between and percent for a racetrack enclosure based on the existence of an excursion gambling boat or gambling structure in the same county, whether the racetrack enclosure has been issued a table games license, and whether adjusted gross receipts reached $100 million.120 percent for a racetrack enclosure, on all adjusted gross receipts each fiscal year. For FY 2026-2027 and each fiscal year thereafter, prior to the remaining amount of the adjusted gross receipts tax being credited to the rebuild Iowa infrastructure fund as provided under current law, an amount is credited to the gaming enforcement revolving fund up to the amount appropriated by the general assembly to DPS for gaming enforcement from that fund for that fiscal year. This division of the bill takes effect January 1, 2026. IOWA MAJOR EVENTS AND TOURISM PROGRAM AND FUND. The bill requires the economic development authority (authority) to establish and administer an Iowa major events and tourism program (program), including an Iowa major events and tourism fund (fund). The purpose of the program is to provide financial assistance, including grants, to an entity supporting an event in this state, or an event involving a geographic region that includes this state, if the event generates large attendance, significant publicity, and measurable economic impact on this state. The financial assistance includes payment or reimbursement of costs incurred by the entity to apply or bid for selection as the site event, to plan or conduct the event, and to pay or reimburse any related fees including hosting fees, sanctioning fees, participation fees, operational fees, and bid fees. The bill defines “entity” to mean an Iowa nonprofit organization established to promote economic development and tourism in an area. The bill defines “event” to mean a tourism-oriented athletic contest, convention, music festival, or art festival. The bill requires the authority to establish eligibility criteria for the program by rule. The eligibility criteria must include the requirement that the entity be currently involved in the bidding and selection process for the event the application is based upon; and that the entity must submit an economic analysis of the event with the entity’s application that includes but is not limited to projected hotel and motel room occupancies, and the projected number of attendees the event attracts from this state, other states, and other countries. An application is deemed to meet all eligibility criteria if the state is selected as the event site after a highly competitive bidding and selection process involving sites in other states, if this state serves as the sole site for the event, or if the sole site for the event involves a geographic region that includes this state and one or more contiguous states. If an entity’s application meets the eligibility criteria established in the bill, the staff of the authority must perform an evaluation of the application and forward the application and evaluation to the economic development authority board (board). In evaluating an application, the bill requires the authority to consider the impact on the economy, the potential to attract visitors, advertising and media coverage, public-to-private investment ratios, and the quality, size, and scope of the event. Upon review of the staff evaluation, the board may approve, deny, defer, or modify the application. The bill allows the board and the authority to negotiate with the entity regarding the details of the event and the amount and terms of the financial assistance. An application remains eligible for consideration by the board for up to two years from the date of receipt of the application by the board. The bill requires applicants to demonstrate the ability to provide matching funds equal to at least percent of the financial assistance awarded to the applicant. The bill requires the authority to establish a fund for the purposes of providing financial assistance under the program. The authority may administer the fund as a revolving fund. Moneys in the fund that are encumbered or obligated pursuant to financial assistance awarded under the program shall be disbursed by the authority within five years of the date of encumbrance or obligation, or the moneys shall revert to the state treasury. Moneys in the fund are appropriated to the authority to provide financial assistance to an entity under the program. An entity that is awarded financial assistance pursuant to the bill is not eligible to receive financial assistance under the sports tourism infrastructure program. For FY 2025-2026, the bill appropriates $15 million from the sports wagering receipts fund to the Iowa major events and tourism fund. SPORTS TOURISM MARKETING PROGRAM AND FUND —— REPEAL. The bill modifies the sports tourism marketing and infrastructure program by repealing the sports tourism marketing program and fund. The bill retains the sports tourism infrastructure program and fund, and provides that any nonprofit organization is eligible for financial assistance under the program, rather than a convention and visitors bureau or certified regional sports authority district. Upon the effective date of this division of the bill, the bill transfers the remaining moneys in the sports tourism marketing program fund to the Iowa major events and tourism fund.
Cambiado después por la enmienda S-3108; vea Enmiendas.
Senate subcommittee
Named March 26, 2025. On March 31, 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
Nota fiscal
Resumen con IA This bill changes gambling regulations, tax rates, and fee structures for various gambling entities. Starting in fiscal year 2027, it creates an $8.0 million annual appropriation from the Sports Wagering Receipts Fund to the Public Safety Equipment Fund and increases the tax rate on sports wagering net receipts from 6.75% to 9.0%. The bill also changes how certain horse racing taxes are distributed and increases license fees for gambling boats and structures. (en inglés)3
Lea la nota fiscal (en inglés)
Description
Senate File 625 relates to gambling regulation, including gambling enforcement, license fees, tax rates, and the use of associated revenue; establishes the Iowa Horse Racing Fund; makes appropriations; and includes effective date provisions.
The Bill does the following:
- Creates a standing appropriation of $8.0 million from the Sports Wagering Receipts Fund (SWRF) to the Public Safety Equipment Fund beginning in FY 2027 for the purchase, maintenance, and replacement of equipment.
- Eliminates the portion of the annual regulatory fees assessed to casino licensees that is associated with the gaming enforcement costs of the Department of Public Safety’s (DPS’s) Division of Criminal Investigation (DCI). Instead, beginning in FY 2027, the Bill transfers to the Gaming Enforcement Fund an amount up to the amount appropriated by the General Assembly to the DPS from the Gaming Enforcement Revolving Fund for that fiscal year from wagering receipts tax received pursuant to Iowa Code section 99F.11. This transfer is made prior to deposit of wagering tax receipts into the Rebuild Iowa Infrastructure Fund (RIIF).
- Eliminates the requirement that the DCI provides the General Assembly, Legislative Services Agency, and Iowa Racing and Gaming Commission (IRGC) with an annual report detailing the activities of the DCI for each casino in the previous fiscal year.
- Redirects the tax imposed on the gross sum wagered in excess of $25.0 million in a year on horse races that are simultaneously telecast by a licensee under Iowa Code section 99D.9D to the Iowa Horse Racing Fund created in the Bill. Currently, these taxes are split between the city and county in which the racetrack is located and State funds as described in Iowa Code section 8.57(3).
- Creates an Iowa Horse Racing Fund to be used by the IRGC for distribution to entities tasked with federal horse racing regulations.
- Creates a 2.0% tax on the gross sum wagered by the pari-mutuel method as an advance deposit wager under Iowa Code section 99D.11(6)(c) in lieu of the tax imposed on the same wagers under Iowa Code section 99D.15. This tax revenue is deposited into the Iowa Horse Racing Fund created by the Bill.
- Increases the annual license fee to operate an excursion gambling boat or gambling structure from $5 per person capacity to $10 per person capacity.
- Eliminates the current tax rate structure imposed on a licensee’s AGR and replaces it with a flat tax of 22.0% for excursion gambling boats or gambling structure licensees and 24.12% if the licensee is a racetrack enclosure conducting gambling games, on all adjusted gross receipts each fiscal year.
- Increases the tax rate on sports wagering net receipts from 6.75% to 9.0%. This Bill is effective July 1, 2026 (FY 2027).
Background
AGR Taxes
Current gambling revenues are taxed by the State based on AGR from gambling games. During the 2021 Legislative Session, SF 619 (Taxation and Other Provisions Act) amended the definition of AGR to include all promotional play receipts on gambling games from the beginning of FY 2022 to the end of FY 2026 with a gradual phaseout of the tax on promotional play receipts during this time. For FY 2026, the scheduled tax rate on promotional play receipts will be 16.7% of the overall AGR tax rate. Beginning July 1, 2026 (FY 2027), AGR will exclude promotional play receipts.
The first $1.0 million in AGR is taxed at a rate of 5.0%, and the next $2.0 million in AGR is taxed at a rate of 10.0%. The tax rate imposed on AGR that exceeds the first $3.0 million is calculated on an individual fiscal year basis as follows:
- Licensees of a gambling entity with a racetrack enclosure claiming AGR of $100.0 million or more are taxed at a rate of 24.0%.
- All other licensees (those without a racetrack enclosure or claiming less than $100.0 million in AGR) are taxed at a rate of 22.0%.
There are currently 19 State-licensed gambling entities operating in Iowa. Of these 19 entities, 2 are taxed at 24.0%, and 17 are taxed at 22.0%.
Iowa Code section 99F.11(4) allocates a portion of State wagering taxes as follows:
- 0.5% of AGR to the county in which a casino is located.
- 0.5% of AGR to the city in which a casino is located.
- 0.8% of AGR tax to the County Endowment Fund. The proceeds of this Fund are distributed equally to counties that do not have a licensed casino for funding charitable organizations.
- 0.2% of AGR tax for several specified purposes: of the amount collected, the first $520,000 is allocated to the Iowa Economic Development Authority (IEDA) for cultural grants and operations. Of the amount remaining, 50.0% is allocated to the IEDA for tourism marketing and the other 50.0% is allocated to the RIIF. The wagering taxes allocated to the IEDA are first deposited into the General Fund before being appropriated back to the Department. Following the 2.0% of AGR tax allocations under Iowa Code section 99F.11(4), Iowa Code section 8.57(3) then distributes the majority of the State wagering tax to several State funds in a prioritized order. The first $144.8 million is allocated to the first six funds. State wagering taxes that are in excess of $144.8 million are deposited into the RIIF. Figure 1 shows the distribution of State wagering taxes over the past three fiscal years and the estimated FY 2025 and FY 2026 distributions. See the State Gaming Revenues — FY 2024 Fiscal Topic for more information on all State gaming revenue.
Figure 1 — Distribution of State Wagering Tax Per Iowa Code Section 8.57
Annual License Renewal Fee
Iowa Code section 99F.5 administers an annual license renewal fee of $5 per person capacity for gambling boats or gambling structures. There are 17 facilities classified as riverboats or gambling structures under Iowa Code chapter 99F. These fees are due at the end of December for a renewal at the beginning of the calendar year. These fees are deposited into the General Fund. In FY 2024, approximately $252,000 was collected in annual license renewal fees under Iowa Code section 99F.5.
Regulatory Fees and Gaming Enforcement Revolving Fund Iowa gaming facilities currently pay an annual regulatory fee assessed monthly to each facility over the course of the fiscal year that consists of two parts:
- The amount appropriated to the IRGC as determined in the annual Administration and Regulation Appropriations Bill. This amount is deposited into the Gaming Regulatory Revolving Fund.
- The DPS’s DCI costs for both pari-mutuel and excursion gambling. The gaming industry is required to pay a regulatory fee for the salaries of no more than three special agents for each gambling facility. This revenue is deposited into the Gaming Enforcement Revolving Fund. Beginning in FY 2022, the seven gaming licensees with the lowest AGR for the previous fiscal year will pay a reduced regulatory fee of 1.0 full-time equivalent (FTE) position. The DPS must annually transfer the portion of the regulatory fee attributable to the indirect support costs of the special agents and gaming enforcement officers to the General Fund of the State. Over the past seven fiscal years, the amount of the fee attributable to the indirect support costs has been $447,000 annually.
The General Assembly appropriates funds from the Gaming Enforcement Revolving Fund to the DPS in the annual Justice System Appropriations Bill. The annual Standing Appropriations Bill has permitted salary adjustments using unappropriated moneys remaining in the Gaming Enforcement Revolving Fund. Figure 2 includes the activities in the Gaming Enforcement Revolving Fund over the past three fiscal years. The total appropriation from the Gaming Enforcement Revolving Fund, including salary adjustments, to the DPS in estimated FY 2025 is approximately $12.2 million.Est. Est.
FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Distribution of Revenue Per Iowa Code Sec. 8.57(5) Revenue Bonds Debt Service Fund 55.0$ 55.0$ 55.0$ 55.0$ 55.0$ Federal Subsidy Holdback Fund 3.8 3.8 3.8 3.8 3.8 Water Quality Infrastructure Fund 15.0 15.0 15.0 15.0 15.0 Iowa Skilled Worker and Job Creation Fund 63.8 63.8 63.8 63.8 63.8 Levee Improvement Fund 0.0 0.0 5.0 5.0 5.0 General Fund 2.3 2.3 2.3 2.3 2.3 Rebuild Iowa Infrastructure Fund 210.1 202.8 186.7 153.7 141.8 Subtotal 349.9$ 342.5$ 331.5$ 298.4$ 286.5$ Source: State Accounting System Figure 2 — Gaming Enforcement Revolving Fund Simultaneous Telecasting and Advance Deposit Wagering In accordance with Iowa Code section 99D.11(6), the IRGC issues advance deposit wagering operator licenses to entities. Advance deposit wagering allows an individual to establish an account, deposit money into the account, and use the account balance to pay for pari-mutuel wagering. Advance deposit wagers may be conducted in person at a licensed racetrack enclosure or from any other location via other electronic means. There are currently four advance deposit wagering operators licensed in the State. These wagers are currently subject to Iowa Code section 99D.15(4)(a), which imposes a 2.0% tax on the gross sum wagered on horse races and dog races that are simultaneously telecast if wagering is not conducted by a licensee under Iowa Code section 99D.9D. These wagers are deposited with the State through the gambling tax distributions in Iowa Code section 8.57(3).
Under Iowa Code section 99D.15(4)(b), the tax is only imposed on the gross sum wagered in excess of $25.0 million in a calendar year if wagering is conducted by a licensee under Iowa Code section 99D.9D. Of the wagering tax, 0.5% is remitted to the city in which the racetrack is located and 0.5% is remitted to the treasurer of the county in which the racetrack is located. The remaining 1.0% is deposited through the gambling tax distribution in Iowa Code section 8.57(3).
In calendar year (CY) 2024, approximately $521,000 was collected in taxes from simultaneous telecasting not conducted by an in-state licensee that was subject to the distributions under Iowa Code section 8.57(3). Of this $521,000, there was $455,000 collected from licensed advance deposit wagering operators.
To date, the State has not collected any taxes under Iowa Code section 99D.15(4)(b), as the annual wagers on simultaneous telecasting conducted by the licensee have been less than $25.0 million.
Sports Wagering Receipts Fund (SWRF) The SWRF was established in FY 2020 by 2019 Iowa Acts, chapter 132 (Sports Wagering and Fantasy Sports Act), which authorized sports wagering and fantasy sports contests in the State. The Fund receives sports wagering taxes and Internet fantasy sports contest taxes. Figure 3 includes the FY 2023, FY 2024, and FY 2025 year-to-date revenue and appropriations from the SWRF.FY 2022 FY 2023 FY 2024
Resources
Beginning Account Balance 1,099,972$ 1,237,235$ 822,661$ Balance Adjustment 267 0 2,335 Fees 10,346,065 9,611,723 11,442,489 Interest 9,858 81,343 119,651 Reversions 337,341 703,898 18,428 Total Revenues 11,793,503$ 11,634,200$ 12,405,564$
Dispostions
Appropriation to DPS 10,556,268$ 10,778,483$ 11,442,487$ Refunds 0 33,056 0 Total Dispostions 10,556,268$ 10,811,539$ 11,442,487$ Ending Balance 1,237,235$ 822,661$ 963,077$ Source: State Accounting System Figure 3 — Sports Wagering Receipts Fund
Public Safety Equipment Fund
The Public Safety Equipment Fund has received annual appropriations totaling $5.0 million since its creation in FY 2022. These appropriations have consisted of $2.5 million from the General Fund and $2.5 million from the RIIF. Moneys in the Fund may be used for the purchase, maintenance, replacement, installation, and licensing costs of equipment used by the DPS.
Assumptions
- FY 2024 annual casino license fees of $252,000 under Iowa Code section 99F.5 are assumed as the base for future fiscal years when calculating the increase to the General Fund in fees from $5 to $10 per person capacity.
- FY 2024 AGR, including promotional play numbers, are assumed as the base for future estimates for wagering tax receipts under the new tax structure.
- Any increase in AGR tax is an increase to wagering taxes deposited into the RIIF.
- It is unknown how much will be appropriated annually by the General Assembly to the DPS from the Gaming Enforcement Revolving Fund. As a result, the wagering taxes that will be credited to the Gaming Enforcement Revolving Fund prior to deposit in the RIIF are unknown. However, for the purposes of this Fiscal Note, the estimated FY 2025 appropriation of approximately $12.2 million from the Gaming Enforcement Revolving Fund to the DPS is used.
- The Iowa Horse Racing Fund created under the Bill will not receive any taxes from wagering on simultaneously telecast horse and dog races conducted by a licensee under Iowa Code section 99D.9D, pursuant to Iowa Code section 99D.15(4)(b).
- Approximately $455,000 of the $521,000 collected in simultaneous telecasting taxes in FY 2024 and deposited pursuant to Iowa Code section 8.57(3) was from advance deposit wagering operators licensed under Iowa Code section 99D.11. This is assumed as the base for future fiscal years when calculating the fiscal impact to advance deposit wagering taxes under the Bill.
- Any simultaneous telecasting advance deposit wagering taxes deposited to the Iowa Horse Racing Fund created will decrease wagering taxes deposited into the RIIF.
- FY 2024 sports wagering net receipts are assumed as the base for future estimates for sports wagering taxes. It is assumed that future sports wagering net receipts will match FY 2024 sports wagering net receipts.FY 2023 FY 2024 FY 2025*
Revenue
Beginning Account Balance 12,228,656$ 15,330,981$ 28,903,431$ Pari-Mutuel Receipts 12,890,229 14,343,838 12,312,022 Interest 462,097 978,612 998,222 Total Revenues 25,580,981$ 30,653,431$ 42,213,675$
Appropriations
Sports Tourism Program 1,500,000$ 0$ 0$ Gambling Treatment Program 1,750,000 1,750,000 1,750,000 General Fund - Endow Iowa Tax Credit 7,000,000 0 0 Total Appropriations 10,250,000$ 1,750,000$ 1,750,000$ Ending Balance 15,330,981$ 28,903,431$ 40,463,675$ Source: State Accounting System *Year-to-date as of April 16, 2025.
Fiscal Impact
Figure 4 summarizes the following changes under the Bill. The fiscal impact by fund is described in greater detail below.
- General Fund: In FY 2027 and after, the estimated net decrease to the General Fund is $195,000 due to the $447,000 decrease in indirect support costs and an increase of $252,000 due to the doubling of the casino annual license fees.
- Rebuild Iowa Infrastructure Fund (RIIF): In FY 2027 and after, the estimated net decrease to the RIIF is $4.3 million. The net changes include an additional $8.4 million in wagering taxes due to the tax rate changes, a decrease of $12.2 million in available wagering taxes due to the off-the-top transfer to the Gaming Enforcement Revolving Fund, and a decrease of $455,000 in revenue due to the change in tax deposit location for advance deposit wagering on simulcast racing.
- Gaming Enforcement Revolving Fund: Stable revenue to the Gaming Enforcement Revolving Fund due to the replacement of the annual regulatory fee with a gambling tax off-the-top transfer. The appropriation will be determined by annual appropriations enacted by the General Assembly.
- Sports Wagering Receipts Fund (SWRF): For FY 2027 and after, the estimated net decrease to the SWRF is $3.2 million due to $4.8 million in additional taxes and an annual appropriation of $8.0 million to the Public Safety Equipment Fund.
- Public Safety Equipment Fund: Appropriations of $8.0 million from the SWRF to the Public Safety Equipment Fund in FY 2027 and after.
- Iowa Horse Racing Fund: For FY 2027 and after, the estimated deposit to the Iowa Horse Racing Fund is $455,000 from the change in tax deposit location for advance deposit wagering on simulcast racing.
Figure 4 — Estimated Fiscal Impact by Fund Beginning in FY 2027
Sources
- Iowa Racing and Gaming Commission
- LSA analysis and calculations
- State Accounting System
- Gambling, Taxation and Enforcement · 18 de abril de 2025 · $447,000
- Gambling, Taxation and Enforcement · 16 de abril de 2025 · $447,000
Lo que cambia del Código de Iowa (Iowa Code)
Crea§15G.1§15G.2§15G.3§15G.4§99D.27B
Modifica§15E.321§15F.401§15F.402§15F.404§8.57I§80.43§99D.14§99D.15§99D.17§99F.10§99F.11§99F.5
Deroga§15F.403
Cabildeo
7 a favor · 1 en contra · 28 indecisos · Quiénes →
Family tree
Study bill
91st General Assembly
Tried before
This idea has been filed in an earlier General Assembly. None got through a chamber.
- SF 2419 Relating to economic development by establishing the Iowa major events and tourism program…90th General Assembly · Approved by committee · similarCleared committee
Similar bills this General Assembly
- SF 621 Relating to economic development by establishing the Iowa major events and tourism program…91st General Assembly · Renumbered as SF 640Similar
Matched by wording or an identical title.