Bill Text: IA HSB80 | 2025-2026 | 91st General Assembly | Introduced


Bill Title: A bill for an act concerning the licensing and regulation of gambling games, including a moratorium on the issuance of new licenses, providing fees, and including effective date and retroactive applicability provisions.(See HF 144.)

Spectrum: Committee Bill

Status: (Introduced) 2025-01-27 - Committee report approving bill, renumbered as HF 144. [HSB80 Detail]

Download: Iowa-2025-HSB80-Introduced.html
House Study Bill 80 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON KAUFMANN) A BILL FOR An Act concerning the licensing and regulation of gambling 1 games, including a moratorium on the issuance of new 2 licenses, providing fees, and including effective date and 3 retroactive applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1488YC (7) 91 ll/ns
H.F. _____ Section 1. Section 99F.4, subsection 24, Code 2025, is 1 amended to read as follows: 2 24. a. To conduct a socioeconomic study on the impact of 3 gambling on Iowans, every eight years beginning in calendar 4 year 2013, and issue a report on that study. The commission 5 shall ensure that the results of each study are readily 6 accessible to the public. 7 b. The report on the study must include all of the 8 following: 9 (1) Information on the financial and societal impact of 10 gambling. 11 (2) An analysis of problem gambling and treatment programs. 12 (3) An evaluation of existing excursion gambling boats, 13 gambling structures, and pari-mutuel racetracks located in 14 rural areas or near the state border, if a new license is 15 awarded. 16 (4) A comprehensive assessment of potential gambling market 17 conditions. 18 (5) An evaluation of the effects on the gambling market from 19 competitive gambling locations located within sixty miles of 20 the state. 21 (6) An evaluation of the effects on attracting out-of-state 22 tourists to existing excursion gambling boats, gambling 23 structures, and pari-mutuel racetracks located near the state 24 border. 25 (7) An evaluation of the effects on existing qualified 26 sponsoring organizations and potential reductions in annual 27 distributions made by the sponsoring organization, if a new 28 license is awarded. 29 (8) The percentage ownership of existing gambling boats, 30 gambling structures, and pari-mutuel racetracks by residents of 31 this state versus any applicant. 32 (9) A comprehensive study of new potential adjusted gross 33 receipts after awarding a new license and the level of gambling 34 saturation with a sixty-mile radius of any existing excursion 35 -1- LSB 1488YC (7) 91 ll/ns 1/ 8
H.F. _____ gambling boat, gambling structure, or racetrack enclosure. 1 (10) Criminal statistics near existing excursion gambling 2 boats, gambling structures, or racetrack enclosures, and near 3 any potential locations of an excursion gambling boat, gambling 4 structure, or racetrack enclosure. 5 (11) An analysis of the impact on community services, 6 including public safety expenditures, fire protection, 7 infrastructure improvements, and other capital project 8 expenditures in counties. 9 Sec. 2. NEW SECTION . 99F.5A Limitations on issuance of 10 licenses to conduct gambling games. 11 1. a. Commencing January 1, 2025, through June 30, 2030, 12 the total number of licenses issued by the commission to 13 conduct gambling games on an excursion gambling boat, at a 14 gambling structure, or at a pari-mutuel racetrack shall not 15 exceed nineteen subject to the requirements of this subsection. 16 b. Licenses to conduct gambling games shall be restricted 17 to those counties where an excursion gambling boat, gambling 18 structure, or racetrack enclosure was operating and licensed to 19 conduct gambling games on January 1, 2025. 20 c. The commission shall be authorized to take any of the 21 following actions concerning the issuance of licenses to 22 conduct gambling games: 23 (1) A gambling games licensee may move to a new location 24 within the same county and retain the gambling games license. 25 (2) A licensed facility may be sold and a new gambling games 26 license issued for operation in the same county. 27 (3) If a license to conduct gambling games is surrendered, 28 not renewed, or revoked, a new gambling games license may be 29 issued for operation in the same county. 30 2. On or after July 1, 2030, the commission shall not 31 issue a new license until after the commission has issued the 32 required report on the socioeconomic study on the impact of 33 gambling on Iowans due for calendar year 2029 in accordance 34 with section 99F.4, subsection 24. 35 -2- LSB 1488YC (7) 91 ll/ns 2/ 8
H.F. _____ 3. This section is repealed July 1, 2031. 1 Sec. 3. Section 99F.6, subsection 5, Code 2025, is amended 2 to read as follows: 3 5. Before a license is granted, an operator of an excursion 4 gambling boat shall work with the economic development 5 authority to promote tourism throughout Iowa and encourage 6 tourism from other states . Tourism information from local 7 civic and private persons may be submitted for dissemination. 8 The commission shall not issue a new license for a new location 9 that would negatively impact an existing licensee located 10 in a county contiguous to the Iowa border or located in a 11 county that qualifies as a rural county. For purposes of this 12 subsection, “rural county” means a county with a population 13 of less than thirty thousand as determined by the most recent 14 population estimate produced by the United States bureau of 15 the census or the most recent decennial census released by the 16 United States bureau of the census. 17 Sec. 4. Section 99F.6, Code 2025, is amended by adding the 18 following new subsection: 19 NEW SUBSECTION . 10. a. The commission shall not issue a 20 new license to conduct gambling games if the commission finds 21 the approval of a new license would cause or do any of the 22 following: 23 (1) Negatively impact the adjusted gross receipts of an 24 existing excursion gambling boat, gambling structure, or 25 racetrack enclosure by more than ten percent. 26 (2) Negatively impact the annual distributions of an 27 existing qualified sponsoring organization. 28 b. If the commission does not issue a new license to conduct 29 gambling games in a county, another application shall not be 30 submitted for that county for eight years from the date of the 31 decision not to issue the license. 32 Sec. 5. Section 99F.10, subsection 8, Code 2025, is amended 33 to read as follows: 34 8. a. In addition to any other fees required by this 35 -3- LSB 1488YC (7) 91 ll/ns 3/ 8
H.F. _____ chapter , a person awarded a new license to conduct gambling 1 games pursuant to section 99F.7 on or after January 1, 2004, 2 shall pay the applicable initial license fee to the commission 3 as provided by this subsection . A person awarded a new license 4 shall pay one-fifth of the applicable initial license fee 5 immediately upon the granting of the license, one-fifth of the 6 applicable initial license fee within one year of the granting 7 of the license, one-fifth of the applicable initial license 8 fee within two years of the granting of the license, one-fifth 9 of the applicable initial license fee within three years of 10 the granting of the license, and the remaining one-fifth of 11 the applicable initial license fee within four years of the 12 granting of the license. However, the license fee provided 13 for in this subsection shall only apply when a new license is 14 issued to a person for a facility that increases the number 15 of licensed facilities in the applicable county or counties. 16 Fees paid pursuant to this subsection are not refundable to the 17 licensee. 18 b. (1) The initial license fee set forth in this 19 subparagraph is subject to adjustment pursuant to subparagraph 20 (2). For purposes of this subsection , the applicable initial 21 license fee shall be five million dollars if the population 22 of the county where the licensee shall conduct gambling 23 games is fifteen thousand or less based upon the most recent 24 federal decennial census, shall be ten million dollars if the 25 population of the county where the licensee shall conduct 26 gambling games is more than fifteen thousand and less than one 27 hundred thousand based upon the most recent federal decennial 28 census, and shall be twenty million dollars if the population 29 of the county where the licensee shall conduct gambling games 30 is one hundred thousand or more based upon the most recent 31 federal decennial census. 32 (2) (a) For purposes of this subparagraph: 33 (i) “Annual inflation factor” means the same as defined in 34 section 422.4. 35 -4- LSB 1488YC (7) 91 ll/ns 4/ 8
H.F. _____ (ii) “Cumulative inflation factor” means the product of 1 the annual inflation factor for the calendar year beginning 2 on January 1, 2004, and all annual inflation factors for 3 subsequent calendar years as determined pursuant to this 4 subparagraph. The cumulative inflation factor applies to years 5 beginning on or after January 1 of the calendar year for which 6 the latest annual inflation factor has been determined. 7 (iii) The annual inflation factor for the calendar year 8 beginning on January 1, 2004, is one hundred percent. 9 (b) Commencing with the calendar year beginning January 1, 10 2005, and for each calendar year thereafter, the commission 11 shall determine the latest cumulative inflation factor for 12 each calendar year, and multiply each applicable initial 13 license fee in subparagraph (1) by the applicable cumulative 14 inflation factor, and shall round off the resulting product to 15 the nearest one dollar, and such resulting product shall be 16 the initial license fee in subparagraph (1) for the year a new 17 license is awarded. 18 c. Moneys collected by the commission from an initial 19 license fee paid under this subsection shall be deposited in 20 the rebuild Iowa infrastructure fund created in section 8.57 . 21 Sec. 6. INTERNET GAMING —— REVIEW. 22 1. The state racing and gaming commission shall initiate 23 and coordinate an independent review of regulation frameworks 24 and the various components implementing internet gaming in the 25 state and its impact on the state’s gaming industry. 26 2. a. The review must take into account the policy 27 objectives of ensuring and preserving Iowa’s competitiveness 28 in the gaming industry and may consider all of the following: 29 recent trends in Iowa gaming revenue and the correlation to 30 gaming attendance at brick and mortar casino locations and a 31 comparison to gaming trends in other states; estimates of the 32 potential impact on Iowa gaming revenues, profitability, and 33 how that might impact Iowa jobs, business vendors, nonprofit 34 fund sharing, and tax revenues; and the societal impact of 35 -5- LSB 1488YC (7) 91 ll/ns 5/ 8
H.F. _____ internet gaming and how to ensure safety and security for Iowa 1 consumers. 2 b. The review must analyze and report on the illegal 3 gambling market and the illegal internet gambling market 4 including all of the following: societal impacts, underage 5 access, the integrity of illegal gambling games, the payment of 6 winnings, anti-money laundering aspects, and identity theft. 7 c. The review must include an assessment of the 8 effectiveness of problem gambling services in the state. 9 d. The review must include an assessment of the direct and 10 indirect employment effects on the surrounding communities 11 where existing licensees are located. 12 3. The review must include recommendations for changes in 13 law and administrative rules and identification of internet 14 gaming laws and procedures of other states that, if adopted in 15 Iowa, could enhance and preserve the competitiveness of the 16 existing gaming industry in the state. 17 4. The state racing and gaming commission shall, and 18 existing licensees and other interested persons may, 19 participate in the review. The commission may utilize 20 additional services to assist in the coordination of the review 21 and preparation of the report. The commission shall submit 22 a report with findings and recommendations to the general 23 assembly by January 1, 2026. 24 Sec. 7. EFFECTIVE DATE. This Act, being deemed of immediate 25 importance, takes effect upon enactment. 26 Sec. 8. RETROACTIVE APPLICABILITY. This Act applies 27 retroactively to January 1, 2025. 28 EXPLANATION 29 The inclusion of this explanation does not constitute agreement with 30 the explanation’s substance by the members of the general assembly. 31 This bill concerns the licensing and regulation of gambling 32 games. Under current law, the state racing and gaming 33 commission (commission) is required to conduct a socioeconomic 34 study on the impact of gambling on Iowans every eight years. 35 -6- LSB 1488YC (7) 91 ll/ns 6/ 8
H.F. _____ The bill identifies certain topics the commission must examine 1 for this socioeconomic study, and prohibits the commission 2 from issuing a new license on or after July 1, 2030, until the 3 required report on the socioeconomic study has been issued by 4 the commission for 2029. 5 The bill places a moratorium on the issuance of new licenses 6 to conduct gambling games in excess of 19 licenses from January 7 1, 2025, through June 30, 2030. The bill restricts gambling 8 games licenses to those counties conducting gambling games on 9 January 1, 2025. The bill allows the commission to authorize a 10 gambling games licensee to move to a new location within the 11 same county, to issue a gambling games license in a county if 12 a licensed facility in that county is sold, and to issue a new 13 license in a county if a previous license to conduct gambling 14 games in that county was surrendered, not renewed, or revoked. 15 Before a license is granted, the bill requires an operator 16 of an excursion gambling boat to work with the economic 17 development authority to encourage tourism from other states. 18 The bill prohibits the commission from issuing a new gambling 19 games license to an excursion gambling boat if the new 20 license would impact an existing licensee located in a county 21 contiguous to the Iowa border or a “rural county” (a county 22 with a population less than 30,000). 23 The bill prohibits the commission from issuing a new 24 gambling games license if the new license would negatively 25 impact the adjusted gross receipts of an existing gambling 26 games licensee by more than 10 percent, or negatively impact 27 the annual distributions of an existing qualified sponsoring 28 organization. If the commission does not issue a gambling 29 games license in a county, another applicant cannot apply for a 30 license in the same county for eight years from the date of the 31 decision not to issue. 32 The bill places an inflation adjustment on the initial 33 license fees in Code section 99F.10(8). 34 The bill requires the commission to study internet gaming 35 -7- LSB 1488YC (7) 91 ll/ns 7/ 8
H.F. _____ and its impact on the state’s gaming industry and to issue 1 a report with findings and recommendations to the general 2 assembly by January 1, 2026. 3 The bill takes effect upon enactment and applies 4 retroactively to January 1, 2025. 5 -8- LSB 1488YC (7) 91 ll/ns 8/ 8
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