SSB 1027 – Exempting promotional play receipts from gaming taxes

SSB 1027 would exempt promotional play gaming receipts from the calculation of adjusted gross receipts (AGR) beginning July 1, 2024. This will make promotional play receipts free from gaming taxes. For the next three-year period promotional play is part of AGR but is taxed separately from AGR and phased out under the reduced rates. Currently, there is a cap on promotional play tax receipts of $25.82 million per year. This cap works by excluding promotional play from the calculation of AGR after the date the Iowa Racing and Gaming Commission determines the cap has been met.

Promotional play is a form of marketing that gaming operators use to increase gambling at their facilities. Promotional play involves the exchange of tokens, chips, credits and other cashless wagering methods provided by a licensed gaming operator to an individual without an exchange of money. [1/26: 12-3 (No: Bolkcom, Petersen, T. Taylor; Absent: Brown, Quirmbach)]