Bill
SF 625
SF 625 creates a standing $8 million/year Public Safety Equipment Fund funded by sports wagering receipts (starting FY2027), shifting enforcement costs away from license fees.
Note on title discrepancy
- The materials you provided for SF 625 concern gambling regulation, taxation, and gaming enforcement. The bill text and fiscal notes relate to gambling (sports wagering, pari‑mutuel wagering, casino/regulatory fees), not law‑enforcement use of unmanned aerial vehicles. This summary reflects the gambling/taxation content in the supplied documents.
Summary — SF 625 (as amended by S‑3108)
Purpose
- Revise Iowa gambling taxes, fees, and revenue distributions; create an Iowa Horse Racing Fund; change how gaming enforcement costs are funded; increase certain license fees; and appropriate sports wagering receipts to public safety equipment. Effective July 1, 2026 (FY 2027).
Key provisions
- Standing appropriation: Creates a standing appropriation of $8.0 million annually from the Sports Wagering Receipts Fund (SWRF) to the Public Safety Equipment Fund beginning FY 2027, for purchase/maintenance/replacement of equipment.
- Gaming enforcement funding: Eliminates the portion of regulatory fees charged to casino licensees that funded DPS/Division of Criminal Investigation (DCI) enforcement costs. Instead, prior to other tax distributions, an amount of wagering tax receipts will be credited to the Gaming Enforcement Revolving Fund up to the amount appropriated by the General Assembly to DPS for DCI direct support costs for casino/pari‑mutuel enforcement.
- AGR tax structure replaced: Replaces the current tiered adjusted gross receipts (AGR) tax schedule with flat rates: 22.0% on all AGR for excursion gambling boats/gambling structures and 24.12% for racetrack enclosures conducting gambling.
- Sports wagering tax: Increases the tax on sports wagering net receipts from 6.75% to 9.0%.
- Annual license fee: Increases the annual license renewal fee for an excursion gambling boat or gambling structure from $5 to $10 per person capacity.
- Iowa Horse Racing Fund: Creates the Iowa Horse Racing Fund to receive redirected taxes and new pari‑mutuel advance deposit wager tax revenue; funds are to be used by the Iowa Racing and Gaming Commission (IRGC) to distribute to entities involved in federal horse‑racing regulation (Horseracing Integrity and Safety Act). If that federal law is repealed, funds revert to the Rebuild Iowa Infrastructure Fund.
- Pari‑mutuel advance deposit tax: Imposes a 2.0% tax on gross sums wagered by pari‑mutuel advance deposit wagers under Iowa Code section 99D.11(6)(c), in lieu of the tax under section 99D.15; revenue is deposited into the Iowa Horse Racing Fund.
- Simulcast horse race tax redirect: Redirects the tax on gross sums wagered in excess of $25.0 million on simulcast telecast races conducted by a licensed simulcasting licensee to the Iowa Horse Racing Fund (previously split with local governments and state funds).
- Administrative changes: Eliminates DCI’s requirement to provide an annual casino activities report to the Legislature, LSA, and IRGC.
Who is affected
- Gambling licensees (casino operators, excursion gambling boats, gambling structures, racetrack enclosures): change in AGR taxation method and license fee; potential increases/decreases in tax liability depending on prior AGR composition.
- Pari‑mutuel operators and bettors: new 2% advance deposit wagering tax structure for certain wagers.
- Department of Public Safety / DCI: funding for enforcement activities shifts from billed regulatory fees to pre‑distribution of wagering tax receipts; reporting requirement removed.
- Iowa Racing and Gaming Commission: new Iowa Horse Racing Fund for federal compliance distributions.
- Local governments (cities/counties with racetracks): redistribution of certain simulcast wagering tax receipts to the state horse racing fund could reduce local shares for some races.
- Public Safety Equipment Fund beneficiaries: receive $8.0M/year from sports wagering receipts beginning FY 2027.
Fiscal and timing notes
- Effective date: July 1, 2026 (FY 2027).
- Fiscal effects: Standing $8.0M appropriation to Public Safety Equipment Fund; higher sports wagering tax (from 6.75% to 9.0%) increases state receipts; change to AGR tax structure and elimination of enforcement fees charged to licensees alters revenue flows and may shift amounts among state funds and local governments. The fiscal notes identify changes to distribution mechanics and anticipated impacts on the Gaming Enforcement Revolving Fund and other dedicated funds (details in the legislative fiscal note).
Procedural status (selected)
- Introduced: Jan 27, 2025; referred to Judiciary and Public Safety.
- April 16, 2025: Committee report approving bill; placed on Appropriations calendar.
- April 17, 2025: Amendment S‑3108 filed and adopted; Passed Senate 47–0; message sent to House; referred to House Ways and Means.
- Fiscal notes prepared (versions: New and As amended/passed by Senate).
Related bill
- HF 561 (companion).
If you want, I can:
- Produce a table estimating winners/losers among licensees under the flat AGR tax vs. current tiers, or
- Extract the full fiscal‑note revenue estimates and show fund‑by‑fund impacts.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
