IowaHF 26091st General Assembly (2025–2026)House

A bill for an act relating to the Iowa lottery. (Formerly HSB 69.) Effective date: 07/01/2025.

Sponsored By: COMMITTEE ON STATE GOVERNMENT

Signed by Governor

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 1 benefits, 2 costs, 2 mixed.

Some lottery job applicants face fewer bans

Beginning July 1, 2025, a conviction involving 'moral turpitude'—a legal term for serious misconduct—is no longer an automatic lottery employment ban. Felony, bookmaking, and other illegal-gambling convictions still bar employment under the lottery law. The director decides how other crimes affect hiring.

Lottery insiders and families face ticket bans

Beginning July 1, 2025, Iowa Lottery Commission members and lottery department officers and employees cannot buy lottery tickets or shares or receive prizes. The ban also covers state officers and employees providing lottery services who have confidential information that could compromise lottery integrity. Vendor officers, employees, agents, and subcontractors with that access are also barred. A covered person's spouse, child, sibling, or parent is barred if they shared that person's principal home for at least 183 of the preceding 365 days.

Lottery kiosks limited to printed products

Beginning July 1, 2025, self-service lottery kiosks may dispense only printed products, including lotto, instant, and pull-tab tickets. They cannot show or play audio or video of lottery game play. The kiosk definition excludes monitor vending machines and player-activated gaming machines. The law defines lotto as a game linked to a central computer where players select numbers, symbols, or characters from a set range.

Lottery security changes reduce drawing oversight

Beginning July 1, 2025, drawings remain public, but an independent certified public accountant no longer must witness them. An independent accountant must still check the equipment before and after each drawing. Ticket order histories, inventories, and other records are protected from release when disclosure could harm game security, integrity, fairness, or retailer security. Staff with law-enforcement training and experience can support security work as needed without sworn peace officer status; security duties include protecting central facilities. The department must report suspected violations, but chooses the appropriate county attorney, attorney general, or law enforcement agency with jurisdiction.

State lottery transfers get more time

Beginning July 1, 2025, a dedicated Lottery Fund in the state treasurer's office receives lottery revenue and other lawful deposits. The director must certify the quarterly transfer amount before the last day of the month following each quarter. Transfers to the state General Fund are due within 45 days after quarter-end, replacing the previous 30-day deadline. Upon request and with the state treasurer's approval, the director may keep enough money for 21 days of expected administrative expenses. Before transfer deadlines, the director may place lottery revenue in designated interest-bearing accounts; the interest follows the same transfer rules. Full revenue and expense statements are required quarterly and annually for the Lottery Commission, governor, state auditor, and legislature. Lottery revenue generally stays outside the Department of Management's General Fund revenue estimates, except as allowed under section 8.22A.

Sponsors & Cosponsors

Sponsor

  • COMMITTEE ON STATE GOVERNMENT

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 133 • No: 0

Senate vote • 2/25/2025

Passed Senate

Yes: 41 • No: 0

House vote • 2/20/2025

Passed House

Yes: 92 • No: 0

Actions Timeline

  1. Signed by Governor.

    3/28/2025House
  2. Reported correctly enrolled, signed by Speaker and President, and sent to Governor.

    3/28/2025House
  3. Message from Senate.

    2/26/2025House
  4. Immediate message.

    2/25/2025Senate
  5. Passed Senate, yeas 41, nays 0.

    2/25/2025Senate
  6. Substituted for SF 306.

    2/25/2025Senate
  7. Read first time, attached to SF 306.

    2/24/2025Senate
  8. Message from House.

    2/24/2025Senate
  9. Immediate message.

    2/20/2025House
  10. Passed House, yeas 92, nays 0.

    2/20/2025House
  11. Amendment H-1014 adopted.

    2/20/2025House
  12. Amendment H-1014 filed.

    2/18/2025House
  13. Introduced, placed on calendar.

    2/6/2025House

Bill Text

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