A bill for an act relating to event-driven contracts traded on dedicated contract markets by requiring a permit to conduct business in the state, imposing a tax on adjusted revenues, making adjustments to individual and corporate income taxes, providing for fees, and including retroactive applicability provisions.

SF 2085 regulates "event-driven contracts" - financial bets on specific events like sports outcomes or elections traded on digital markets. It requires these markets to obtain a $10 million initial permit and pay $100,000 annually to operate in Iowa. A 20% tax is imposed on the market's "adjusted revenues" (total fees minus payouts, weighted by Iowa trader participation), with tax revenue deposited into the state general fund. The bill also adjusts Iowa income tax rules to treat these contracts differently from federal tax treatment, excluding them from certain federal tax calculations. It explicitly excludes existing systems like horse racing wagering (Chapter 99D), fantasy sports (Chapter 99E), and sports betting (Chapter 99F).