IowaHF 26091st General Assembly (2025–2026)HouseWALLET

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

6 provisions identified: 1 benefits, 3 costs, 2 mixed.

No lottery jobs for certain convictions

Beginning July 1, 2025, the Iowa Lottery Department does not hire people with a felony conviction or a conviction for bookmaking or other illegal gambling. The director may also deny hiring based on crimes involving moral turpitude. This tightens who can work for the lottery.

Public drawings and stronger lottery security

Beginning July 1, 2025, lottery drawings are open to the public and watched by an independent CPA. The CPA checks the drawing equipment before and after each drawing. The director can hold hearings and give oaths to review security and vendor or retailer compliance. The lottery keeps ticket order history, ticket inventory, and other security‑sensitive records confidential. Security staff may have law‑enforcement training but are not sworn peace officers. The security office must report suspected violations to prosecutors or police and keep central facilities physically secure.

Insiders and households barred from tickets and prizes

Beginning July 1, 2025, certain insiders cannot buy Iowa Lottery tickets or receive prizes. This includes Lottery Commission members, department staff, and state workers who serve the department and have access to confidential lottery information. It also covers vendor officers, employees, agents, and subcontractors who have such confidential access. Their spouse, child, sibling, or parent who lived in the same home for 183 or more days in the past 365 days are barred too.

Tighter rules for self-service kiosks

Beginning July 1, 2025, a self‑service lottery kiosk can only dispense printed lottery products. It cannot show audio or video game play and cannot be a monitor vending machine or a player‑activated gaming machine. Retailers and vendors may need to change or remove devices that do not meet this definition.

More reports and narrower lottery rulemaking

Beginning July 1, 2025, the department sends full quarterly and annual reports of lottery revenues and expenses to the Lottery Commission, Governor, Auditor of State, and Legislature. At the same time, the department’s rulemaking power is limited to rules that deal only with running and managing the lottery, not broader department operations.

New Lottery Fund and transfer deadlines

Beginning July 1, 2025, all lottery receipts go into a new Lottery Fund managed by the Treasurer of State. The director can place money in short‑term interest accounts; interest counts as lottery revenue and goes to the general fund. The director may, with the Treasurer’s approval, keep enough to cover 21 days of expected administrative costs before transferring the rest. Each quarter, the director must certify the amount due before the last day of the next month and transfer it within 45 days after the quarter ends. Lottery revenues are excluded from general fund revenue estimates, except for specialized estimates 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.

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

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

    2/26/2025Senate
  4. Immediate message.

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

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

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

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

    2/24/2025House
  9. Immediate message.

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

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

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

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

    2/6/2025legislature

Bill Text

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