# Iowa State Law Complete > SKILL: Iowa State Law — Complete Reference - Skill: `nickgallick/iowa-state-law-complete` (Agent Skill) - Install (CLI): `npx skillmds@latest add nickgallick/iowa-state-law-complete` - Raw SKILL.md: https://api.skillmd.com/api/skills/nickgallick/iowa-state-law-complete/raw - Safety review: pending (external: skill-scanner PASS, skillspector PASS) - Works with: Claude Code, Claude.ai, OpenAI Codex - Category: Coding & Dev Tools - Author: nickgallick (https://skillmd.com/u/nickgallick) - Updated: 2026-09-21 - Page: https://skillmd.com/skills/nickgallick/iowa-state-law-complete --- # SKILL: Iowa State Law — Complete Reference **Version:** 1.0.0 | **Domain:** Iowa Gambling, Corporate, Money Transmission, Data Privacy, Tax --- ## Iowa Gambling Law ### Iowa Code Chapter 99B — Games, Amusements, and Contests **§99B.1 — Definitions** - "Game of skill": an activity in which the outcome is determined predominantly by the skill of the participants - "Game of chance": an activity in which the outcome is determined predominantly by chance - "Contest": any competition between persons for prizes or recognition **§99B.5 — Contests of Skill — EXPLICITLY LEGAL** - §99B.5(1): Contests of skill are lawful in Iowa - §99B.5(2): Contests of skill may offer prizes. **Registration required with the Iowa Department of Inspections and Appeals (DIA) if prize value exceeds $500 in a single contest** - §99B.5(3): Entry fees ARE permitted for contests of skill - **Iowa DIA registration**: file with Iowa Department of Inspections and Appeals, Lucas State Office Building, Des Moines, IA 50319; www.dia.iowa.gov - Iowa has NOT passed specific DFS legislation — DFS operates under §99B's general skill-game provisions **§99B.6 — Promotional Contests** - Businesses may conduct promotional contests without a license IF: - No purchase is necessary to enter (no consideration) - Prizes are predetermined - Relevant if building a free-to-play marketing sweepstakes layer **Key statutory distinction:** - Skill → Chapter 99B (legal with registration) - Chance → Chapter 99F (illegal without IRGC license) --- ### Iowa Code Chapter 99F — Gambling **§99F.1(16)** — "Gambling game" means any game of chance. The definition expressly includes: slot machines, roulette, keno, and any other game where outcome is substantially determined by chance. **§99F.3** — Iowa Racing and Gaming Commission (IRGC) regulates ALL gambling in Iowa. Commission contact: www.iowa.gov/irgc; 1300 Des Moines St., Des Moines, IA 50309. **§99F.9** — Only licensed casinos (Class A, B, C, or D licenses) may operate gambling games. Operating an unlicensed gambling game = criminal violation. **§99F.12** — Criminal penalties for unlicensed gambling: Class D felony (up to 5 years imprisonment, up to $7,500 fine). **Prediction markets with chance elements:** If a prediction market outcome is substantially determined by chance → regulated as gambling under 99F. Must have IRGC license. Do NOT operate without one. --- ### Iowa Code Chapter 99G — Iowa Lottery - §99G.1 through §99G.42: Iowa Lottery Authority operations - Lottery = three elements: consideration + chance + prize - **If your contest has all three → lottery → illegal unless you're the Iowa Lottery Authority** - Remove ONE element: (a) no purchase required (no consideration), (b) skill determines outcome (no chance), or (c) no monetary prize → breaks the lottery definition --- ### Iowa Code Chapter 99E — Pari-Mutuel Wagering - §99E.1 through §99E.32: covers horse and greyhound racing - Pari-mutuel = pooled bets, odds determined by relative amount bet on each outcome - **Not directly applicable to AI competitions or prediction markets** - However: regulators may try to analogize a prediction market to pari-mutuel wagering (pooled bets on outcomes). Study the structure to anticipate and rebut this argument. --- ### Iowa Sports Betting (Added 2019 — SF 617) - Iowa legalized sports betting via Senate File 617 (2019), amending Chapter 99F - **§99F.4D** — Sports wagering authorized at licensed casinos and via mobile apps - **§99F.4D(2)** — License required from IRGC (only entities affiliated with a licensed casino may receive this license) - **§99F.4D(8)** — "Sporting event" defined as professional or collegiate athletic events - **Does NOT include:** prediction markets, AI competitions, esports (as of current statute) - Mobile sports betting: geo-fenced to Iowa's borders. Operators must verify user is physically in Iowa. - **Implication:** Iowa's sports betting law is narrowly written. AI competitions and prediction markets don't fall under it — they fall under 99B (skill) or 99F (chance). --- ## Iowa Money Transmission Law ### Iowa Code Chapter 533C — Iowa Uniform Money Services Act **§533C.102 — Definitions** - "Money transmission" means: (i) selling or issuing payment instruments, (ii) selling or issuing stored value, or (iii) **receiving money or monetary value for transmission** - Broad definition — accepting funds from users and distributing them to winners likely qualifies **§533C.201 — License Required** - Any person engaged in money transmission in Iowa must hold a license issued by the Iowa Superintendent of Banking - Iowa Division of Banking: www.idob.iowa.gov; 200 E. Grand Ave., Suite 300, Des Moines, IA 50309 **§533C.202 — License Application Requirements** - Surety bond: minimum $100,000 (Superintendent may require up to $500,000) - Financial statements: audited or reviewed by CPA - Background check: all principals and key individuals - Business plan: describe money transmission activities - Filing fee: $1,000 application fee **§533C.301 — Exemptions** - §533C.301(1): Banks, trust companies, savings associations — exempt - §533C.301(2): Credit unions — exempt - §533C.301(3): Agents of licensed money transmitters acting within scope of agency agreement — exempt (use this for payment processor partnerships) - §533C.301(7): "A person that provides clearance or settlement services pursuant to a registration or exemption under federal securities law" — potentially relevant for certain crypto structures **Crypto/non-custodial question in Iowa:** - Iowa has NOT issued specific guidance on crypto-to-crypto transmission - Iowa follows FinCEN federal guidance as a baseline - Non-custodial platforms (user wallet → smart contract → user wallet, platform never controls funds): strongest argument for exemption from Iowa MTL - This argument is NOT tested in Iowa courts — get an Iowa-specific legal opinion before relying on it --- ## Iowa Corporate Law ### Iowa Code Chapter 489 — Iowa Revised Uniform LLC Act **Formation:** - File Certificate of Organization with Iowa Secretary of State - Fee: $50 (online filing) - Filing: www.sos.iowa.gov - Effective: upon filing (same day for online) **Operating Agreement:** - Not required to be filed, but MUST exist for proper governance - Multi-member LLCs: always have a written operating agreement - Single-member: still advisable for liability protection purposes **Series LLC:** - Iowa does NOT authorize series LLCs - If you need series LLC structure (separate liability cells): use Delaware LLC or consider Nevada **Annual Report:** - Due: April 1 each year - Fee: $60 for LLCs, $45 for corporations - File with Iowa Secretary of State **Iowa Corporate Income Tax:** - Current rate (2026): **5.5% flat rate** (Iowa significantly reformed its corporate tax structure, reducing from graduated rates of up to 9.8%) - Source: Iowa Code §422.33 **Iowa Individual Income Tax:** - Current rate (2026): **3.8% flat rate** (reduced from prior graduated rates under Iowa's multi-year tax reform) - Pass-through LLC income: taxed at Nick's individual rate - Source: Iowa Code §422.5 **Note:** Iowa has no state-level capital gains preference — capital gains taxed as ordinary income at individual rates. --- ## Iowa Consumer Protection ### Iowa Code Chapter 714 — Fraud and Deception **§714.16 — Iowa Consumer Fraud Act** - Prohibits: "unfair practice, deception, fraud, false pretense, false promise, or misrepresentation, or the concealment, suppression, or omission of any material fact" - Applies to: all consumer transactions, including digital products and platform services - Enforcement: Iowa Attorney General has authority to investigate and sue; civil penalties up to $40,000 per violation - Private right of action: YES — consumers can sue individually (unlike ICDPA) - All marketing materials, TOS, pricing disclosures must comply --- ## Iowa Data Privacy ### Iowa Code Chapter 715D — Iowa Consumer Data Protection Act (ICDPA) **Effective: January 1, 2025** **Threshold — Applies if:** - Controls/processes personal data of **100,000+ Iowa consumers** annually, OR - Controls/processes personal data of **25,000+ consumers** AND derives **more than 50% of gross revenue from sale of personal data** **Consumer Rights:** - Right to access personal data - Right to deletion - Right to data portability - Right to opt out of: targeted advertising, sale of personal data, profiling for significant decisions **No private right of action** — Iowa AG enforcement only. AG may bring civil action; no individual lawsuits under ICDPA. **For Nick's platforms:** If prediction market reaches 100K Iowa users, full ICDPA compliance required. Build data governance infrastructure early — it's much harder to retrofit. --- ## Iowa-Specific Regulatory Recommendations | Action | Authority | Timing | |---|---|---| | Form Iowa LLC for operating entity | Iowa SOS (§489) | Before launch | | Register skill contests with DIA (if prize >$500) | Iowa DIA (§99B.5(2)) | Before first paid contest | | Confirm skill-based classification with Iowa gaming attorney | Iowa Code §99B | Before launch | | Iowa MTL application (if custodial) | Iowa Division of Banking (§533C.201) | 3-6 months before launch | | ICDPA compliance assessment | Iowa Code §715D | Before 100K users | | Iowa AG consumer protection review of marketing | Iowa Code §714.16 | Before any advertising | **Iowa AG contact for voluntary compliance inquiries:** www.iowaattorneygeneral.gov/for-consumers --- *This is legal research and intelligence, not legal advice. Consult qualified legal counsel before taking action.*