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IA SF2085
Bill
Status
1/21/2026
Primary Sponsor
Mike Klimesh
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AI Summary
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Requires designated contract markets trading event-driven contracts (binary payout derivatives on sports, elections, legislative actions, and economic indicators) to obtain a state permit from the Iowa Department of Revenue before conducting business in Iowa.
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Imposes a $10 million initial permit fee and $100,000 annual renewal fee for designated contract market operators, with permits expiring June 30 each year.
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Establishes a tax on "adjusted revenues," calculated as total charges and fees collected from traders minus payouts, multiplied by the percentage of traders located in Iowa.
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Excludes pari-mutuel wagering, fantasy sports contests, sports wagering under existing Iowa law, and traditional financial derivatives that are not event-driven contracts from the chapter's scope.
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Administration and enforcement authority is assigned to the Iowa Department of Revenue, with the director authorized to adopt rules, designate employees, and request assistance from the attorney general or law enforcement.
Legislative Description
A bill for an act relating to event-driven contracts traded on dedicated contract markets by requiring a permit to conduct business in the state, imposing a tax on adjusted revenues, making adjustments to individual and corporate income taxes, providing for fees, and including retroactive applicability provisions.(See SF 2470.)
Last Action
Committee report approving bill, renumbered as SF 2470. S.J. 563.
3/12/2026