Petitioner, a nonresident entity, entered into an agreement with an Iowa excursion gambling boat to run their online sportsbook, including serving as its withholding agent. Petitioner asked if it is required to withhold Iowa income tax on payments of sports wagering winnings. The Director found that Petitioner is required to withhold Iowa income tax on sports wagering winnings received by nonresidents, but not on sports wagering winnings received by Iowa resident pursuant to Iowa Code section 422.16.