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SF 173

A bill for an act concerning the licensing and regulation of gambling games, including a moratorium on the issuance of new licenses, and including effective date and retroactive applicability provisions.

2025-2026 Regular Session

SF 173 imposes a moratorium on new gambling licenses in Iowa until 2030, ensuring socioeconomic impacts are studied to protect existing operators and promote tourism.

Subcommittee: Rozenboom, Bisignano, and Schultz.
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Bill Summary · SF 173

Summary of SF 173 - Gambling Licensing and Regulation Bill

Bill Number: SF 173
Introduced On: February 03, 2025
Current Status: Subcommittee: Rozenboom, Bisignano, and Schultz
Classification: Bill
Subject Areas: Economic Development Authority, Gambling, Moratoriums, Pari-Mutuel Wagering, Racing and Gaming Commission, Reports, Tourism

Purpose and Intent

The primary purpose of SF 173 is to regulate the licensing of gambling games in Iowa, implementing a moratorium on the issuance of new licenses until certain conditions are met. The bill aims to ensure a thorough examination of the socioeconomic impacts of gambling on Iowans before expanding the number of gambling licenses available.

Key Provisions

  1. Moratorium on New Licenses:

    • A moratorium on the issuance of new gambling game licenses is established from January 1, 2025, through June 30, 2030.
    • The total number of licenses is capped at 19 during this period.

  2. Socioeconomic Study Requirement:

    • The Iowa Racing and Gaming Commission is mandated to conduct a socioeconomic study every eight years, with specific topics outlined for examination.
    • No new licenses will be issued after July 1, 2030, until the commission has published the required report from the 2029 study.

  3. Restrictions on Licensing:

    • New licenses can only be issued in counties that were conducting gambling games as of January 1, 2025.
    • The commission may allow existing licensees to relocate within the same county or issue new licenses if a previous license has been surrendered, revoked, or not renewed.

  4. Impact Considerations:

    • New licenses cannot be issued if they would negatively affect existing licensees' adjusted gross receipts by more than 10%.
    • Special consideration is given to counties contiguous to the Iowa border and rural counties (defined as those with populations under 30,000).

  5. Tourism Promotion:

    • Operators of excursion gambling boats must collaborate with the Economic Development Authority to promote tourism from other states before a license can be granted.

Affected Parties

  • Gambling Operators: Current and potential operators of gambling facilities will be directly impacted by the moratorium and licensing restrictions.
  • Counties: Only those counties with existing gambling operations as of January 1, 2025, will be eligible for new licenses.
  • Tourism Sector: The bill aims to enhance tourism through collaboration with gambling operators, potentially benefiting local economies.

Procedural Aspects

  • The bill was introduced and placed on the calendar on February 3, 2025, and has since received committee approval.
  • It has been referred to the State Government committee for further consideration.

Conclusion

SF 173 seeks to regulate the gambling industry in Iowa by imposing a moratorium on new licenses until a comprehensive socioeconomic study is completed. This legislation aims to balance the interests of existing gambling operators, promote tourism, and ensure that any expansion in gambling does not adversely affect the state's economy or its residents.

Compiled from official sources — confirm details with the bill’s official record.

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