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Can I offer contests that involve chance-based games in Iowa? What are the requirements?

Based on the documents provided, it is illegal to offer contests that involve chance-based games in Iowa, except for certain limited exceptions.

Prohibited Games

According to [1.1], slot machines are unlawful for all licenses issued under Iowa Code chapter 99B. Other than during an annual game night, games in the following list are unlawful:

  1. Punchboard,
  2. Pushcard,
  3. Pull-tab,
  4. Craps,
  5. Chuck-a-luck,
  6. Roulette,
  7. Klondike,
  8. Blackjack,
  9. Baccarat,
  10. Equality, or
  11. Three-card monte.

[1.2] further clarifies that the following games or devices are not permitted:

  1. Devices that pay coins or currency.
  2. Gambling games permitted in Iowa Code chapter 99F, such as slot machines and roulette wheels, or any similar device.
  3. Any machine that does not conform to the requirements in these rules or Iowa Code chapter 99B.
  4. Any machine designed or resembling a machine which is normally used for casino-type gambling.
  5. Amusement devices designed or adapted to facilitate gambling.
  6. Progressive games.

Social Gambling

[1.3] states that social gambling requirements are located in Iowa Code sections 99B.41 to 99B.45. However, it is important to note that social gambling is only legal if it meets certain requirements, such as being incidental to a bona fide social relationship, being participated in by natural persons only, and not being conducted for profit.

License

[1.4] explains that a license is required in order to conduct a bingo occasion unless all of the following requirements are met: a. Participants in the bingo occasion are not charged to enter the premises where bingo is conducted. b. Participants in the bingo occasion are not charged to play. c. Any prize awarded at the bingo occasion is donated. d. The bingo occasion is conducted as an activity and not for fundraising purposes.

Gambling Game-Based Tournaments

[3.1] allows gambling game-based tournaments, but they must be based on gambling games authorized by the commission. Entry fees, less prizes paid, are subject to the wagering tax pursuant to Iowa Code section 99F.11. In determining adjusted gross receipts, to the extent that prizes paid out exceed entry fees received, the facility shall be deemed to have paid the fees for the participants.

Conclusion

Based on the documents provided, it is illegal to offer contests that involve chance-based games in Iowa, except for certain limited exceptions such as social gambling and bingo occasions that meet specific requirements. Gambling game-based tournaments are allowed, but they must be based on authorized gambling games and subject to wagering tax.

Source(s):
Jurisdiction

Iowa