HB5702 104TH GENERAL ASSEMBLY

LRB104 20827 LNS 34396 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5702

Introduced 2/24/2026, by Rep. Yolonda Morris

SYNOPSIS AS INTRODUCED:

230 ILCS 10/5.5 new
230 ILCS 40/35

Amends the Illinois Gambling Act. Creates the position of Illinois Gaming Oversight Officer within the Illinois Gaming Board under the Administrator. Provides that the Officer may: maintain a staff; make recommendations for policy, statute, and rule changes; collect data regarding the regulation of gaming and exempted or quasi-gaming; compile or assist in the compilation of any reports; ensure the coordination of efforts between various State agencies involved in regulating and taxing gaming and exempted or quasi-gaming in the State; and encourage, promote, suggest, and report best practices for ensuring diversity in the gaming and exempted or quasi-gaming industry in the State. Requires the Officer to commission and publish a disparity and availability study on a biannual basis. Provides that the Officer may compile, collect, or otherwise gather data necessary for the administration of the Act and to carry out the Officer's duty relating to the recommendation of policy changes. Requires the Officer to pair eligible minority businesses with terminal operator licensees or owners licensees for mentoring. Amends the Video Gaming Act. Provides that an applicant or licensee is not in violation of the Act or any of the Illinois Gaming Board rules, and shall not be subject to disciplinary action, delay of any Board consideration, or denial of any license for operating a game device if operation of the gaming device is in compliance with and not considered gambling under the Criminal Code of 2012. Provides that any applicant previously denied by the Board based in whole or part for participation in specified lawful sweepstakes devices shall have the denial rescinded and a license shall be issued instantly. Provides that an applicant for a license that discloses participation in specified lawful sweepstakes devices shall have the application processed for Board consideration within not more than 90 days after the filing of the application. Makes other changes. Effective immediately.

A BILL FOR

AN ACT concerning gaming.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Gambling Act is amended by adding Section 5.5 as follows:

(230 ILCS 10/5.5 new)

Sec. 5.5. Illinois Gaming Oversight Officer.

(a) The position of Illinois Gaming Oversight Officer is created within the Illinois Gaming Board under the Administrator. The Illinois Gaming Oversight Officer shall be appointed by the Speaker of the House of Representatives following consultation with the Black Legislative Caucus. The Illinois Gaming Oversight Officer shall serve at the discretion of the Speaker of the House of Representatives.

(b) The Illinois Gaming Oversight Officer may:

(1) maintain a staff;

(2) make recommendations for policy, statute, and rule changes;

(3) collect data both in the State and outside the State regarding the regulation of gaming and exempted or quasi-gaming;

(4) compile or assist in the compilation of any reports required by this Act;

(5) ensure the coordination of efforts between various State agencies involved in regulating and taxing gaming and exempted or quasi-gaming in the State; and

(6) encourage, promote, suggest, and report best practices for ensuring diversity in the gaming and exempted or quasi-gaming industry in the State.

(c) Any funding required for the Illinois Gaming Oversight Officer, its staff, or its activities shall be appropriated as part of the funding for the Illinois Gaming Board.

(d) The Illinois Gaming Oversight Officer shall commission and publish a disparity and availability study on a biannual basis that:

(1) evaluates whether there exists discrimination in the State's gaming industry; and

(2) if so, evaluates the impact of such discrimination on the State and includes recommendations to the Speaker of the House of Representatives for reducing or eliminating any identified barriers to entry in the gaming market. The Illinois Gaming Oversight Officer shall submit a copy of its findings and recommendations to the Illinois Gaming Board, the Department of Commerce and Economic Opportunity, the General Assembly, and the Governor.

(e) The Illinois Gaming Oversight Officer shall have a budget set by the General Assembly for the purpose of contracting with a third party to assist in completing the disparity study. The Illinois Gaming Oversight Officer shall have the authority to select and hire outside firms for the purpose of completing the disparity study.

(f) The Illinois Gaming Oversight Officer may compile, collect, or otherwise gather data necessary for the administration of this Act and to carry out the Illinois Gaming Oversight Officer's duty relating to the recommendation of policy changes. The Illinois Gaming Oversight Officer may direct the Illinois Gaming Board and the Department of Commerce and Economic Opportunity to assist in the compilation, collection, and data gathering authorized under this subsection. The Illinois Gaming Oversight Officer shall compile the data into a single report and submit the report to the Governor and the General Assembly and publish the report on its website.

(g) The Illinois Gaming Oversight Officer shall pair eligible minority businesses with terminal operator licensees or owners licensees for mentoring. The Illinois Gaming Oversight Officer shall develop a mentorship program to assist black-owned and brown-owned businesses to transition into gaming opportunities under this Act and the Video Gaming Act. An eligible minority business is one that operates or has applied to operate any activity covered under subsection (b) of Section 28-1 of the Criminal Code of 2012.

Section 10. The Video Gaming Act is amended by changing Section 35 as follows:

(230 ILCS 40/35)

Sec. 35. Display of license; confiscation; violation as felony.

(a) Each video gaming terminal shall be licensed by the Board before placement or operation on the premises of a licensed establishment, licensed truck stop establishment, licensed large truck stop establishment, licensed fraternal establishment, or licensed veterans establishment. The license of each video gaming terminal shall be maintained at the location where the video gaming terminal is operated. Failure to do so is a petty offense with a fine not to exceed $100. Any licensed establishment, licensed truck stop establishment, licensed large truck stop establishment, licensed fraternal establishment, or licensed veterans establishment used for the conduct of gambling games in violation of this Act shall be considered a gambling place in violation of Section 28-3 of the Criminal Code of 2012. Every gambling device found in a licensed establishment, licensed truck stop establishment, licensed large truck stop establishment, licensed fraternal establishment, or licensed veterans establishment operating gambling games in violation of this Act shall be subject to seizure, confiscation, and destruction as provided in Section 28-5 of the Criminal Code of 2012. Any license issued under the Liquor Control Act of 1934 to any owner or operator of a licensed establishment, licensed truck stop establishment, licensed large truck stop establishment, licensed fraternal establishment, or licensed veterans establishment that operates or permits the operation of a video gaming terminal within its establishment in violation of this Act shall be immediately revoked. No person may own, operate, have in his or her possession or custody or under his or her control, or permit to be kept in any place under his or her possession or control, any device that awards credits and contains a circuit, meter, or switch capable of removing and recording the removal of credits when the award of credits is dependent upon chance.

Nothing in this Section shall be deemed to prohibit the use of a game device only if the game device is used in an activity that is not gambling under subsection (b) of Section 28-1 of the Criminal Code of 2012. An applicant or licensee under this Act is not in violation of this Act or any of the Illinois Gaming Board rules, specifically Section 1800.420 of the Illinois Administrative Code, and shall not be subject to disciplinary action, delay of any Board consideration, or denial of any license for operating a game device if operation of the gaming device is in compliance with and not considered gambling under subsection (b) of Section 28-1 or paragraph (3) of subsection (a) of Section 28-2 of the Criminal Code of 2012. Any applicant previously denied by the Board based in whole or part for participation in lawful sweepstakes devices otherwise lawful under subsection (b) of Section 28-1 or paragraph (3) of subsection (a) of Section 28-2 of the Criminal Code of 2012 shall have the denial rescinded and a license shall be issued instantly. An applicant for a license under this Act that discloses participation in lawful sweepstakes devices otherwise lawful under subsection (b) of Section 28-1 or paragraph (3) of subsection (a) of Section 28-2 of the Criminal Code of 2012 shall have the application processed for Board consideration within not more than 90 days after the filing of the application.

A violation of this Section is a Class 4 felony. All devices that are owned, operated, or possessed in violation of this Section are hereby declared to be public nuisances and shall be subject to seizure, confiscation, and destruction as provided in Section 28-5 of the Criminal Code of 2012.

The provisions of this Section do not apply to devices or electronic video game terminals licensed pursuant to this Act. A video gaming terminal operated for amusement only and bearing a valid amusement tax sticker shall not be subject to this Section until 30 days after the Board establishes that the central communications system is functional.

(b) (1) The odds of winning each video game shall be posted on or near each video gaming terminal. The manner in which the odds are calculated and how they are posted shall be determined by the Board by rule.

(2) No video gaming terminal licensed under this Act may be played except during the legal hours of operation allowed for the consumption of alcoholic beverages at the licensed establishment, licensed fraternal establishment, or licensed veterans establishment. A licensed establishment, licensed fraternal establishment, or licensed veterans establishment that violates this subsection is subject to termination of its license by the Board.

(Source: P.A. 101-31, eff. 6-28-19.)

Section 99. Effective date. This Act takes effect upon becoming law.