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| | 10000SB1531ham001 | - 2 - | LRB100 05772 AMC 27430 a |
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1 | | any one actual team. The outcome of any interactive fantasy |
2 | | sports contest does not correspond to the outcome of any |
3 | | one real-life competitive event. Instead, the outcome |
4 | | depends on how the performances of participants' fantasy |
5 | | roster choices compared to the performance of others' |
6 | | roster choices. |
7 | | (b) Based on the findings in this Section, the General |
8 | | Assembly declares that interactive fantasy sports contests do |
9 | | not constitute gambling as defined in Section 28-1 of the |
10 | | Criminal Code of 2012. |
11 | | (c) The General Assembly further finds that as the Internet |
12 | | has become an integral part of society, and interactive fantasy |
13 | | sports contests a major form of entertainment for many |
14 | | consumers, any interactive fantasy sports enforcement and |
15 | | regulatory structure must begin from the bedrock premise that |
16 | | participation in a lawful and licensed interactive fantasy |
17 | | sports industry is a privilege and not a right, and that |
18 | | regulatory oversight is intended to safeguard the integrity of |
19 | | the games and participants and to ensure accountability and the |
20 | | public trust. |
21 | | Section 10. Definitions. As used in this Act: |
22 | | "Authorized player" means an individual located in this |
23 | | State that participates in an interactive fantasy sports |
24 | | contest offered by an interactive fantasy sports operator.
|
25 | | "Beginner fantasy sports player" means an individual who is |
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1 | | at least 21 years of age and who has entered fewer than 51 |
2 | | interactive fantasy sports contests offered by a single |
3 | | interactive fantasy sports operator. |
4 | | "Board" means the Illinois Gaming Board.
|
5 | | "Collegiate sport or athletic event" means a sport or |
6 | | athletic event offered or sponsored by or played in connection |
7 | | with a public or private institution that offers education |
8 | | services beyond the secondary level. |
9 | | "Entry fee" means cash or cash equivalent that is paid by |
10 | | an authorized player to an interactive fantasy sports operator |
11 | | to participate in an interactive fantasy sports contest offered |
12 | | by that interactive fantasy sports operator. |
13 | | "High school sport or athletic event" means a sport or |
14 | | athletic event offered or sponsored by or played in connection |
15 | | with a public or private institution that offers education |
16 | | services at the secondary level. |
17 | | "Highly experienced player" means an authorized player who |
18 | | has: |
19 | | (1) entered more than 1,000 interactive fantasy sports |
20 | | contests offered by a single interactive fantasy sports |
21 | | operator; or |
22 | | (2) won more than 3 prizes valued at $1,000 each or |
23 | | more from a single interactive fantasy sports operator. |
24 | | "Interactive fantasy sports contest" means a fantasy |
25 | | contest, in which: |
26 | | (1) the value of all prizes and awards offered to |
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1 | | winning participants are established and made known to the |
2 | | participants in advance of the contest and their value is |
3 | | not determined by the number of participants or the amount |
4 | | of any fees paid by those participants; |
5 | | (2) all winning outcomes are determined predominantly |
6 | | by accumulated statistical results of the performance of |
7 | | individual athletes in real-world professional athletic |
8 | | competitions; a professional athletic competition does not |
9 | | include any amateur or collegiate level sport; and |
10 | | (3) no winning outcome is based on the score, point |
11 | | spread, or any performance or performances of any single |
12 | | actual team or combination of such teams or solely on any |
13 | | single performance of an individual athlete or player in |
14 | | any single actual event. |
15 | | "Interactive fantasy sports gross revenue" means the |
16 | | amount equal to the total of all entry fees that an interactive |
17 | | fantasy sports operator collects from all players, multiplied |
18 | | by the location percentage for the State. |
19 | | "Interactive fantasy sports operator" means a person or |
20 | | entity that engages in the business of offering, by means of |
21 | | the Internet, a smart phone application, or other similar |
22 | | electronic or digital media or communication technologies, |
23 | | multiple interactive fantasy sports contests to persons. |
24 | | "Interactive fantasy sports platform" means any website, |
25 | | smart phone application, or other portal providing access to an |
26 | | interactive fantasy sports contest. |
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1 | | "Location percentage" means, for each interactive fantasy |
2 | | sports contest, the percentage, rounded to the nearest tenth of |
3 | | a percent, of the total entry fees collected by an interactive |
4 | | fantasy sports operator from players located in this State, |
5 | | divided by the total entry fees collected by an interactive |
6 | | fantasy sports operator from all players in interactive fantasy |
7 | | sports contests. |
8 | | "Minor" means a person under the age of 21 years. |
9 | | "Permitted sports event" means a professional sport or |
10 | | athletic event or other competitive event. "Permitted sports |
11 | | event" does not include a prohibited sports event. |
12 | | "Prohibited sports event" means an amateur sport or |
13 | | athletic event, a collegiate sport or athletic event, or a high |
14 | | school sport or athletic event. |
15 | | Section 15. Applicability. This Act and all rules adopted |
16 | | under the authority of this Act shall apply only to interactive |
17 | | fantasy sports contests for which an authorized player pays an |
18 | | entry fee. |
19 | | Section 20. Licensing. |
20 | | (a) No interactive fantasy sports operator shall |
21 | | administer, manage, or otherwise make available an interactive |
22 | | fantasy sports platform to persons located in the State unless |
23 | | licensed by the Board under this Act. |
24 | | (b) A qualified person may apply to the Board for an |
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1 | | interactive fantasy sports operator license to conduct |
2 | | interactive fantasy sports contests as provided in this Act. |
3 | | The application shall be made on forms provided by the Board. |
4 | | The burden is upon each applicant to demonstrate suitability |
5 | | for licensure. Each interactive fantasy sports operator shall |
6 | | be licensed by the Board. The Board may issue a license for a |
7 | | period of up to 2 years or, in the case of interactive fantasy |
8 | | sports operators with annual interactive fantasy sports gross |
9 | | revenues less than $100,000, for up to 3 years. |
10 | | (c) Each person seeking and possessing a license as an |
11 | | interactive fantasy sports operator shall submit to a |
12 | | background investigation conducted by the Board with the |
13 | | assistance of the State Police or other law enforcement. To the |
14 | | extent that the corporate structure of the applicant allows, |
15 | | the background investigation shall include any or all of the |
16 | | following as the Board deems appropriate or as provided by |
17 | | rule: (i) each beneficiary of a trust, (ii) each partner of a |
18 | | partnership, (iii) each member of a limited liability company, |
19 | | (iv) each director and officer of a publicly or non-publicly |
20 | | held corporation, (v) each stockholder of a non-publicly held |
21 | | corporation, (vi) each stockholder of 5% or more of a publicly |
22 | | held corporation, or (vii) each stockholder of 5% or more in a |
23 | | parent or subsidiary corporation. |
24 | | (d) Each person seeking and possessing a license as an |
25 | | interactive fantasy sports operator shall disclose the |
26 | | identity of every person, association, trust, corporation, or |
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1 | | limited liability company having a greater than 1% direct or |
2 | | indirect pecuniary interest in the interactive fantasy sports |
3 | | operator for which the license is sought. If the disclosed |
4 | | entity is a trust, the application shall disclose the names and |
5 | | addresses of the beneficiaries; if a corporation, the names and |
6 | | addresses of all stockholders and directors; if a limited |
7 | | liability company, the names and addresses of all members; or |
8 | | if a partnership, the names and addresses of all partners, both |
9 | | general and limited. |
10 | | (e) All information, records, interviews, reports, |
11 | | statements, memoranda, or other data supplied to or used by the |
12 | | Board in the course of its review or investigation of an |
13 | | application for a license or a renewal under this Act shall be |
14 | | privileged and strictly confidential and shall be used only for |
15 | | the purpose of evaluating an applicant for a license or a |
16 | | renewal. The information, records, interviews, reports, |
17 | | statements, memoranda, or other data shall not be admissible as |
18 | | evidence nor discoverable in any action of any kind in any |
19 | | court or before any tribunal, board, agency, or person, except |
20 | | for any action deemed necessary by the Board. |
21 | | (f) No person may be licensed as an interactive fantasy |
22 | | sports operator if that person has been found by the Board to: |
23 | | (1) have a background, including a criminal record, |
24 | | reputation, habits, social or business associations, or |
25 | | prior activities, that poses a threat to the public |
26 | | interests of the State or to the security and integrity of |
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1 | | interactive fantasy sports contests; |
2 | | (2) create or enhance the dangers of unsuitable, |
3 | | unfair, or illegal practices, methods, and activities in |
4 | | the conduct of interactive fantasy sports contests; or |
5 | | (3) present questionable business practices and |
6 | | financial arrangements incidental to the conduct of |
7 | | interactive fantasy sports contests. |
8 | | (g) Any applicant for a license under this Act has the |
9 | | burden of proving his or her qualifications to the satisfaction |
10 | | of the Board. The Board may adopt rules to establish additional |
11 | | qualifications and requirements to preserve the integrity and |
12 | | security of interactive fantasy sports contests in this State. |
13 | | (h) An interactive fantasy sports operator that has been |
14 | | operating in Illinois for at least 6 months on December 23, |
15 | | 2015 may operate in Illinois until a final decision is rendered |
16 | | on the application for an interactive fantasy sports operator |
17 | | license. |
18 | | (i) The Board, by rule, shall establish a process for |
19 | | license renewal. |
20 | | (j) The Board shall publish a list of all interactive |
21 | | fantasy sports operators licensed in this State under this |
22 | | Section on the Board's website for public use. |
23 | | Section 25. Operators; required safeguards; minimum |
24 | | standards. |
25 | | (a) As a condition of licensure in this State, each |
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1 | | interactive fantasy sports operator shall implement and |
2 | | maintain commercially reasonable measures to: |
3 | | (1) limit each authorized player to one username and |
4 | | one account and verify a fantasy sports player's true |
5 | | identity; |
6 | | (2) prohibit minors from participating in an |
7 | | interactive fantasy sports contest, including: |
8 | | (A) if the interactive fantasy sports operator |
9 | | becomes or is made aware that a minor has participated |
10 | | in one of its interactive fantasy sports contests, |
11 | | promptly refund any deposit received from the minor, |
12 | | whether or not the minor has engaged in or attempted to |
13 | | engage in an interactive fantasy sports contest; |
14 | | however, any refund may be offset by any prizes already |
15 | | awarded; |
16 | | (B) publishing and facilitating parental control |
17 | | procedures to allow parents or guardians to exclude |
18 | | minors from access to any interactive fantasy sports |
19 | | contest or interactive fantasy sports platform; and |
20 | | (C) taking appropriate steps to confirm that an |
21 | | individual opening an account is not a minor; |
22 | | (3) when referencing the likelihood of winning in |
23 | | advertisements or upon interactive fantasy sports contest |
24 | | entry, make clear and conspicuous statements that are not |
25 | | inaccurate or misleading concerning the likelihood of |
26 | | winning and the number of winners; |
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1 | | (4) enable authorized players to restrict themselves |
2 | | from interactive fantasy sports contests and take |
3 | | reasonable steps to prevent these players from entering an |
4 | | interactive fantasy sports contest from which they have |
5 | | excluded themselves; these restrictions shall include, but |
6 | | not be limited to: (A) interactive fantasy sports contest |
7 | | entry limits, (B) limiting play to interactive fantasy |
8 | | sports contest with entry fees below an established limit, |
9 | | and (C) self-imposed deposit limits less than allowed under |
10 | | this Act; interactive fantasy sports operators shall |
11 | | implement and prominently publish procedures for fantasy |
12 | | sports players to implement the restrictions; fantasy |
13 | | sports players shall have the option to adjust these limits |
14 | | to make them more restrictive of gameplay as often as they |
15 | | like, but shall not have the option to make limits less |
16 | | restrictive of gameplay within 90 days after setting the |
17 | | limits; |
18 | | (5) offer introductory procedures for authorized |
19 | | players, that shall be prominently displayed on the |
20 | | interactive fantasy sports operator's interactive fantasy |
21 | | sports platform, that explain interactive fantasy sports |
22 | | contest play and how to identify a highly experienced |
23 | | player; |
24 | | (6) identify all highly experienced players in an |
25 | | interactive fantasy sports contest by a symbol attached to |
26 | | the players' user names, or by other easily visible means, |
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1 | | on all interactive fantasy sports platforms supported by an |
2 | | interactive fantasy sports operator; |
3 | | (7) disclose the number of entries a single authorized |
4 | | player may submit to each interactive fantasy sports |
5 | | contest; |
6 | | (8) disclose the maximum number of total entries |
7 | | allowed for each interactive fantasy sports contest; |
8 | | (9) implement measures to comply with all applicable |
9 | | State and federal requirements for data security, |
10 | | including, but not limited to, age verification and |
11 | | location software; |
12 | | (10) offer all authorized players access to his or her |
13 | | account history and account details; |
14 | | (11) ensure funds in fantasy sports players' accounts |
15 | | are held in segregated accounts by the interactive fantasy |
16 | | sports operators for the fantasy sports players that |
17 | | establish the accounts; interactive fantasy sports |
18 | | operators shall implement and prominently publish |
19 | | procedures that: |
20 | | (A) prevent unauthorized withdrawals from fantasy |
21 | | sports player accounts by interactive fantasy sports |
22 | | operators or others; |
23 | | (B) prevent commingling of funds in a fantasy |
24 | | sports player's account with other funds, including, |
25 | | without limitation, funds of the interactive fantasy |
26 | | sports operator; fantasy sports player funds shall be |
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1 | | segregated from interactive fantasy sports operators' |
2 | | operational funds and any other funds held by the |
3 | | interactive fantasy sports operator; and |
4 | | (C) address reporting on complaints by fantasy |
5 | | sports players that their accounts have been |
6 | | misallocated, compromised, or otherwise mishandled; |
7 | | (12) provide on the interactive fantasy sports |
8 | | platform, in a prominent place, information concerning |
9 | | assistance for compulsive play; |
10 | | (13) prohibit the extension of credit from an |
11 | | interactive fantasy sports operator to an authorized |
12 | | player; |
13 | | (14) develop policies to prevent the use of proxy |
14 | | servers for the purpose of misrepresenting a player's |
15 | | location in order to engage in interactive fantasy sports |
16 | | contests; and |
17 | | (15) prevent one fantasy sports player from acting as a |
18 | | proxy for another. |
19 | | (b) No interactive fantasy sports operator employee, |
20 | | principal, officer, director, or contractor shall play any |
21 | | interactive fantasy sports contest offered to the general |
22 | | public or play in such contest through another person as a |
23 | | proxy. For the purposes of this subsection (b), a contractor is |
24 | | limited to a contractor who can access information of an |
25 | | interactive fantasy sports operator related to the conduct of |
26 | | an interactive fantasy sports contest that is not available to |
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1 | | other fantasy sports players. Interactive fantasy sports |
2 | | operators shall make these restrictions known to all affected |
3 | | individuals and corporate entities. |
4 | | (c) No interactive fantasy sports operator employee, |
5 | | principal, officer, director, or contractor shall disclose |
6 | | confidential information that may affect interactive fantasy |
7 | | sports contest gameplay to any person permitted to engage in |
8 | | interactive fantasy sports contest gameplay. Interactive |
9 | | fantasy sports operators shall make these restrictions known to |
10 | | all affected individuals and corporate entities. |
11 | | (d) No interactive fantasy sports operator shall allow a |
12 | | professional athlete whose individual statistics or |
13 | | performance may be used to determine any part of the outcome of |
14 | | any interactive fantasy sports contest to enter interactive |
15 | | fantasy sports contests in the sports in which he or she |
16 | | participates. An interactive fantasy sports operator shall |
17 | | take commercially reasonable efforts to prevent a sports agent, |
18 | | team employee, referee, or league official associated with any |
19 | | competition that is the subject of interactive fantasy sports |
20 | | contests to enter interactive fantasy sports contests in the |
21 | | sport in which he or she participates, nor shall such athlete, |
22 | | sports agent, team official, team representative, referee, or |
23 | | league official play through another person as a proxy. |
24 | | (1) Interactive fantasy sports operators shall take |
25 | | commercially reasonable efforts to obtain lists of persons |
26 | | described in this subsection (d) for the purpose of |
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1 | | implementing this subsection (d). |
2 | | (2) Interactive fantasy sports operators, upon |
3 | | learning of a violation of this subsection (d), shall bar |
4 | | the individual committing the violation from playing in any |
5 | | interactive fantasy sports contest by suspending the |
6 | | individual's account and banning the individual from |
7 | | further play, shall terminate any existing promotional |
8 | | agreements with the individual, and shall refuse to make |
9 | | any new promotional agreements that compensate the |
10 | | individual. |
11 | | (3) Interactive fantasy sports operators shall make |
12 | | these restrictions known to all affected individuals and |
13 | | corporate entities. |
14 | | (e) Each interactive fantasy sports operator shall: |
15 | | (1) ensure the value of any prizes and awards offered |
16 | | to authorized players are established and made known to the |
17 | | players in advance of the interactive fantasy sports |
18 | | contest; |
19 | | (2) ensure all winning outcomes reflect the relative |
20 | | knowledge and skill of the authorized players and are |
21 | | determined predominantly by accumulated statistical |
22 | | results of the performance of individuals in permitted |
23 | | sports events; |
24 | | (3) ensure no winning outcome is based on the score, |
25 | | point spread, or performance of a single sports team, or a |
26 | | combination of sports teams; |
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1 | | (4) ensure no winning outcome is based solely on a |
2 | | single performance of an individual athlete in a single |
3 | | sport or athletic event; and |
4 | | (5) ensure no interactive fantasy sports contest is |
5 | | based on a prohibited sports event. |
6 | | (f) Interactive fantasy sports operators shall implement |
7 | | and prominently publish procedures that allow any fantasy |
8 | | sports player to permanently close an account at any time and |
9 | | for any reason. The procedures shall allow for cancellation by |
10 | | any means, including, without limitation, by a fantasy sports |
11 | | player on any interactive fantasy sports contest used by that |
12 | | fantasy sports player to make deposits into a fantasy sports |
13 | | player account. A copy of an interactive fantasy sports |
14 | | operator's procedures shall be submitted to the Board and any |
15 | | changes shall be submitted within 30 days. |
16 | | (g) When a fantasy sports player account is closed, the |
17 | | interactive fantasy sports operator shall refund all funds in |
18 | | the account no later than 5 business days after submission of |
19 | | the request or 10 business days after submission of any tax |
20 | | reporting information required by law, whichever is later, |
21 | | unless the interactive fantasy sports operator makes a good |
22 | | faith determination that the fantasy sports player engaged in |
23 | | fraudulent or other conduct that would constitute a violation |
24 | | of this Act, rules adopted pursuant to this Act, or the |
25 | | interactive fantasy sports operator's policies, in which case, |
26 | | upon notice to the fantasy sports player of that determination, |
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1 | | the withdrawal may be held pending a reasonable investigative |
2 | | period to resolve its investigation. For the purposes of this |
3 | | subsection (g), a request for withdrawal shall be considered |
4 | | honored if it is processed by the interactive fantasy sports |
5 | | operator, but delayed by a payment processor, a credit card |
6 | | issuer, or the custodian of the financial account. |
7 | | (h) If a prize is awarded to a fantasy sports player with a |
8 | | closed account, that prize, to the extent it consists of funds, |
9 | | shall be distributed by the interactive fantasy sports operator |
10 | | within 5 business days, or 10 business days of submission of |
11 | | any tax reporting information required by law, unless the |
12 | | interactive fantasy sports operator makes a good faith |
13 | | determination that the fantasy sports player engaged in |
14 | | fraudulent or other conduct that would constitute a violation |
15 | | of this Act or rules adopted pursuant to this Act. If such |
16 | | determination is made, then the prize may be withheld, provided |
17 | | that it is then awarded to another fantasy sports player in the |
18 | | same interactive fantasy sports contest who would have won the |
19 | | prize had the fantasy sports player with the closed account not |
20 | | participated. |
21 | | (i) An interactive fantasy sports operator shall |
22 | | prominently publish all contractual terms and conditions and |
23 | | rules of general applicability that affect a fantasy sports |
24 | | player's account. Presentation of such terms, conditions, and |
25 | | rules at the time of on boarding a new fantasy sports player |
26 | | shall not suffice. |
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1 | | (j) Interactive fantasy sports operators shall have |
2 | | prominently published rules that govern when each interactive |
3 | | fantasy sports contest shall close or lock. Each interactive |
4 | | fantasy sports contest operator shall also prominently |
5 | | disclose contest-specific information about the time that the |
6 | | interactive fantasy sports contest closes or locks in |
7 | | connection with each interactive fantasy sports contest |
8 | | offered. An interactive fantasy sports operator shall strictly |
9 | | enforce all disclosed closing or lock times. |
10 | | (k) Fantasy sports player's deposits shall be limited to no |
11 | | more than $1,000 per month. However, an interactive fantasy |
12 | | sports operator may establish and prominently publish |
13 | | procedures for temporarily or permanently increasing a fantasy |
14 | | sports player's deposit limit, at the request of the fantasy |
15 | | sports player, above $1,000 per month. Such procedures shall be |
16 | | submitted to the Board. |
17 | | If established by an interactive fantasy sports operator, |
18 | | such procedures shall include evaluation of information, |
19 | | including income or asset information, sufficient to establish |
20 | | that the fantasy sports player can afford losses that might |
21 | | result from gameplay at the deposit limit level requested. |
22 | | When a temporary or permanent deposit level limit increase |
23 | | is approved, the interactive fantasy sports operator's |
24 | | procedures shall provide for annual re-certification of a |
25 | | player's financial ability to afford losses. |
26 | | (l) The following entry limits apply: |
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| | 10000SB1531ham001 | - 18 - | LRB100 05772 AMC 27430 a |
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1 | | (1) interactive fantasy sports operators shall not |
2 | | allow players to submit more than one entry in an |
3 | | interactive fantasy sports contest involving 12 entries or |
4 | | fewer; |
5 | | (2) interactive fantasy sports operators shall not |
6 | | allow players to submit more than 2 entries in an |
7 | | interactive fantasy sports contest involving more than 13 |
8 | | entries but fewer than 36 entries; |
9 | | (3) interactive fantasy sports operators shall not |
10 | | allow players to submit more than 3 entries in an |
11 | | interactive fantasy sports contest involving 36 or more |
12 | | entries but fewer than 101 entries; and |
13 | | (4) interactive fantasy sports operators shall not |
14 | | allow fantasy sports players to submit more than 3% of all |
15 | | entries in an interactive fantasy sports contest involving |
16 | | 101 or more entries. |
17 | | An interactive fantasy sports operator may establish |
18 | | interactive fantasy sports contests, representing less |
19 | | than 2% of the total number of interactive fantasy sports |
20 | | contests that the interactive fantasy sports operator |
21 | | offers, in which there is no restriction on the number of |
22 | | entries, provided that (i) the interactive fantasy sports |
23 | | operator clearly discloses that there are no limits on the |
24 | | number of entries by each player in the interactive fantasy |
25 | | sports contest and (ii) that the cost of participating in |
26 | | the interactive fantasy sports contest is $50 or more per |
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1 | | entry. |
2 | | (m) Interactive fantasy sports operators shall not offer an |
3 | | interactive fantasy sports contest based on a prohibited sports |
4 | | event. |
5 | | (n) An interactive fantasy sports operator shall not |
6 | | participate in an interactive fantasy sports contest offered by |
7 | | the interactive fantasy sports operator. |
8 | | (o) An interactive fantasy sports operator shall not permit |
9 | | unauthorized scripts to be used on interactive fantasy sports |
10 | | platforms and shall use commercially reasonable efforts to |
11 | | monitor for and to prevent use of such scripts. |
12 | | (p) Interactive fantasy sports operators shall develop and |
13 | | prominently display procedures on the interactive fantasy |
14 | | sports operator's interactive fantasy sports platform for the |
15 | | filing of a complaint by the authorized player against the |
16 | | interactive fantasy sports operator. The interactive fantasy |
17 | | sports operator shall give an initial response to the player |
18 | | within 48 hours after the player files the complaint. The |
19 | | interactive fantasy sports operator shall give a complete |
20 | | response to the player filing the complaint within 10 business |
21 | | days after the initial response is issued. An authorized player |
22 | | may file a complaint alleging a violation of the provisions of |
23 | | this Act with the Board. |
24 | | (q) An interactive fantasy sports operator shall close any |
25 | | fantasy player account that is inactive for 2 years and notify |
26 | | the account holder that the account has been closed by email to |
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| | 10000SB1531ham001 | - 20 - | LRB100 05772 AMC 27430 a |
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1 | | the account holder's last known email address. When a fantasy |
2 | | sports player account is closed due to inactivity, the |
3 | | interactive fantasy sports operator shall take commercially |
4 | | reasonable steps to refund all funds in the fantasy sports |
5 | | player account within 30 days, subject to the receipt of any |
6 | | tax information required by law. In the event that funds in a |
7 | | closed fantasy sports player account exceed $5 and cannot be |
8 | | refunded and remain unclaimed, the interactive fantasy sports |
9 | | operator shall provide notice of the existence of funds to the |
10 | | fantasy sports player. Such notice shall be provided by email |
11 | | to the account holder's last known email address. In the event |
12 | | that funds in a closed fantasy sports player account cannot be |
13 | | refunded and remain unclaimed by the fantasy sports player |
14 | | after 3 years, such funds shall be paid by the interactive |
15 | | fantasy sports operator to the Unclaimed Property Trust Fund in |
16 | | the Office of the State Treasurer. The interactive fantasy |
17 | | sports operator shall provide notice to the fantasy sports |
18 | | player's email address at least 60 days prior to paying the |
19 | | funds to the Unclaimed Property Trust Fund. |
20 | | (r) Interactive fantasy sports operators shall develop |
21 | | games that are limited to beginner fantasy sports players and |
22 | | shall prohibit individuals who are not beginner fantasy sports |
23 | | players from participating in those games either directly or |
24 | | through another person as a proxy. An interactive fantasy |
25 | | sports operator shall suspend the account of an individual who |
26 | | is not a beginner fantasy sports player and who enters a game |
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1 | | limited to beginner fantasy sports players and shall ban the |
2 | | player from future play. |
3 | | (s) All interactive fantasy sports operators shall develop |
4 | | games in which highly experienced fantasy sports players cannot |
5 | | participate either directly or through another person as a |
6 | | proxy. An interactive fantasy sports operator shall suspend the |
7 | | account of a highly experienced fantasy sports player who |
8 | | enters a game that excludes highly experienced fantasy sports |
9 | | players directly or through another person as a proxy and shall |
10 | | ban the individual from future play. |
11 | | Section 30. Multiple interactive fantasy sports platforms; |
12 | | interactive fantasy sports contests. A licensee may use |
13 | | multiple interactive fantasy sports platforms and offer |
14 | | multiple types of interactive fantasy sports contests. |
15 | | Section 35. Advertising. |
16 | | (a) Advertisements of interactive fantasy sports operators |
17 | | shall not feature: (1) minors (other than professional athletes |
18 | | who may be minors), (2) students, (3) schools, colleges, or |
19 | | universities, or (4) school, college, or university settings. |
20 | | However, incidental depiction of non-featured minors or minors |
21 | | accompanying adults shall not be a violation of this subsection |
22 | | (a). |
23 | | (b) Interactive fantasy sports operators shall not |
24 | | advertise on school, college, or university campuses. |
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1 | | (c) Interactive fantasy sports operators shall not |
2 | | advertise at amateur athletic competitions, except to the |
3 | | extent that those competitions are played in stadiums where |
4 | | professional competitions are held and where non-digital |
5 | | advertisements have been posted, erected, or otherwise |
6 | | displayed in a manner that would require substantial effort to |
7 | | remove. |
8 | | Section 40. Powers and duties of the Board. |
9 | | (a) The Board has jurisdiction over and shall supervise all |
10 | | interactive fantasy sports contests governed by this Act. The |
11 | | Board has all powers and duties necessary and proper to fully |
12 | | and exclusively execute the provisions of the Act, including, |
13 | | but not limited to, the following: |
14 | | (1) To investigate applicants and determine the |
15 | | eligibility of applicants that best serve the interests of |
16 | | the citizens of Illinois. |
17 | | (2) To provide for the establishment and collection of |
18 | | all fees, fines, and taxes imposed by this Act and the |
19 | | rules adopted under this Act. |
20 | | (3) To suspend, revoke, or restrict licenses; to |
21 | | require the removal of an interactive fantasy sports |
22 | | operator or an employee of an interactive fantasy sports |
23 | | operator for a violation of this Act; and to impose civil |
24 | | penalties of an amount up to $5,000 against individuals and |
25 | | $10,000 against licensees for each violation of the |
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1 | | provisions of this Act. |
2 | | (4) To approve and deny applications for licensure to |
3 | | conduct interactive fantasy sports contests in this State, |
4 | | and to suspend, refuse or renew, or revoke a license issued |
5 | | under this Act. |
6 | | (5) To accept and investigate complaints of any kind |
7 | | from an authorized player and attempt to mediate the |
8 | | complaints where appropriate. |
9 | | (6) To investigate alleged violations of this Act. |
10 | | (7) To initiate proper enforcement proceedings where |
11 | | such action is deemed by the Board to be necessary or |
12 | | appropriate. |
13 | | (8) To exercise all powers and duties assigned by this |
14 | | Act. |
15 | | (b) The Board shall adopt rules to implement the provisions |
16 | | of and effectuate the policy and objectives of this Act as the |
17 | | Board may deem necessary or advisable, including, but not |
18 | | limited to, the development of the initial form of the |
19 | | application for licensure. These rules shall include, but not |
20 | | be limited to, responsible protections with regard to |
21 | | compulsive play and safeguards for fair play. The Board shall |
22 | | not adopt rules limiting or regulating: |
23 | | (1) the rules or the administration of an individual |
24 | | interactive fantasy sports contest; |
25 | | (2) the statistical makeup of an interactive fantasy |
26 | | sports contest; or |
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1 | | (3) the digital interactive fantasy sports platform of |
2 | | an interactive fantasy sports operator. |
3 | | (c) The Board shall adopt emergency rules to administer |
4 | | this Act in accordance with Section 5-45 of the Illinois |
5 | | Administrative Procedure Act. For the purposes of the Illinois |
6 | | Administrative Procedure Act, the General Assembly finds that |
7 | | the adoption of rules to implement this Act is deemed an |
8 | | emergency and necessary for the public interest, safety, and |
9 | | welfare. |
10 | | Section 45. Annual report. |
11 | | (a) Each licensee shall annually submit a report to the |
12 | | Board by no later than June 30 of each year that shall include |
13 | | the following information as it applies to accounts held by |
14 | | authorized players located in this State: |
15 | | (1) the number of accounts held by authorized players |
16 | | on all interactive fantasy sports platforms offered by the |
17 | | interactive fantasy sports operator and the number of |
18 | | accounts held by highly experienced players on all |
19 | | interactive fantasy sports platforms offered by the |
20 | | interactive fantasy sports operator; |
21 | | (2) the total number of new accounts established in the |
22 | | preceding year as well as the total number of accounts |
23 | | permanently closed in the preceding year; |
24 | | (3) the total amount of entry fees received from |
25 | | authorized players; |
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1 | | (4) the total amount of prizes awarded to authorized |
2 | | players; |
3 | | (5) the total amount of interactive fantasy sports |
4 | | gross revenue received by the licensee; and |
5 | | (6) the total number of authorized players that |
6 | | requested to exclude themselves from interactive fantasy |
7 | | sports contests. |
8 | | (b) The Board shall annually publish a report based on the |
9 | | aggregate information provided by all interactive fantasy |
10 | | sports operators in accordance with this Section, that shall be |
11 | | published on the Board's website no later than 180 days after |
12 | | the deadline for the submission of individual reports as |
13 | | specified in this Section. |
14 | | Section 50. State tax. |
15 | | (a) A privilege tax is imposed on persons engaged in the |
16 | | business of operating an interactive fantasy sports contest in |
17 | | this State. For the privilege of conducting interactive fantasy |
18 | | sports contests in the State, interactive fantasy sports |
19 | | operators shall pay a tax at the following graduated rates: |
20 | | (1) 5% of annual interactive fantasy sports gross |
21 | | revenue up to and including $1,000,000; |
22 | | (2) 7.5% of annual interactive fantasy sports gross |
23 | | revenue in excess of $1,000,000 but not exceeding |
24 | | $3,000,000; |
25 | | (3) 10% of annual interactive fantasy sports gross |
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1 | | revenue in excess of $3,000,000 but not exceeding |
2 | | $8,000,000; |
3 | | (4) 15% of annual interactive fantasy sports gross |
4 | | revenue in excess of $8,000,000. |
5 | | (b) The tax imposed by this Section shall be paid by the |
6 | | interactive fantasy sports operator to the Board not later than |
7 | | the 15th day of every month for the previous month's privilege |
8 | | taxes. |
9 | | Section 55. Disposition of taxes. The Board shall deposit |
10 | | all taxes imposed by this Act, any interest and penalties |
11 | | imposed by the Board relating to those taxes, all penalties |
12 | | levied and collected by the Board, and the appropriate funds, |
13 | | cash, or prizes forfeited from interactive fantasy sports |
14 | | contests into the Mental Health Services Fund. |
15 | | Section 60. Audits. All interactive fantasy sports |
16 | | operators with annual interactive fantasy sports contest gross |
17 | | revenue of $100,000 or more shall annually be subject to an |
18 | | audit of the financial transactions and condition of the |
19 | | interactive fantasy sports operator's total operations as they |
20 | | relate to the offering and operating of interactive fantasy |
21 | | sports contests and to ensure compliance with all of the |
22 | | requirements in this Act. Interactive fantasy sports operators |
23 | | with annual interactive fantasy sports contest gross revenues |
24 | | less than $100,000 shall every 3 years be subject to an audit |
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1 | | of the financial transactions and condition of the interactive |
2 | | fantasy sports operator's total operations as they relate to |
3 | | the offering and operating of interactive fantasy sports |
4 | | contests and to ensure compliance with all of the requirements |
5 | | in this Act. All audits and compliance engagements shall be |
6 | | conducted by certified public accountants or an independent |
7 | | testing laboratory approved by the Board. The compensation for |
8 | | each certified public accountant or independent testing |
9 | | laboratory shall be paid directly by the interactive fantasy |
10 | | sports operator to the certified public accountant or |
11 | | independent testing laboratory. The audit shall be conducted |
12 | | and submitted to the Board by June 30 of each year. |
13 | | Section 65. Limitation on the taxation of interactive |
14 | | fantasy sports operators. Interactive fantasy sports operators |
15 | | shall not be subjected to an excise tax, license tax, permit |
16 | | tax, privilege tax, amusement tax, or occupation tax that is |
17 | | imposed upon the licensee by the State or any political |
18 | | subdivision thereof, except as provided in this Act. |
19 | | Section 70. Application fees; license fees. |
20 | | (a) A non-refundable application fee shall be paid at the |
21 | | time an application for licensure is filed with the Board in |
22 | | the following amounts: |
23 | | (1) Interactive fantasy sports operators with annual |
24 | | interactive fantasy sports gross revenue greater than |
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1 | | $10,000,000 ......................................... $25,000 |
2 | | (2) Interactive fantasy sports operators with annual |
3 | | interactive fantasy sports gross revenue greater than |
4 | | $5,000,000 but not more than $10,000,000 ............ $12,500 |
5 | | (3) Interactive fantasy sports operators with annual |
6 | | interactive fantasy sports gross revenue greater than |
7 | | $1,000,000 but not more than $5,000,000 .............. $7,500 |
8 | | (4) Interactive fantasy sports operators with annual |
9 | | interactive fantasy sports gross revenue of at least |
10 | | $100,000 but not more than $1,000,000 ................ $5,000 |
11 | | (5) Interactive fantasy sports operators with annual |
12 | | interactive fantasy sports gross revenue less than |
13 | | $100,000 ............................................... $500 |
14 | | (b) The Board shall establish a fee for each license not to |
15 | | exceed the following for the initial licensure period: |
16 | | (1) Interactive fantasy sports operators with annual |
17 | | interactive fantasy sports gross revenue greater than |
18 | | $10,000,000 ......................................... $50,000 |
19 | | (2) Interactive fantasy sports operators with annual |
20 | | interactive fantasy sports gross revenue greater than |
21 | | $5,000,000 but not more than $10,000,000 ............ $25,000 |
22 | | (3) Interactive fantasy sports operators with annual |
23 | | interactive fantasy sports gross revenue greater than |
24 | | $1,000,000 but not more than $5,000,000 ..............$15,000 |
25 | | (4) Interactive fantasy sports operators with annual |
26 | | interactive fantasy sports gross revenue of at least |
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1 | | $100,000 but not more than $1,000,000 ............... $10,000 |
2 | | (5) Interactive fantasy sports operators with annual |
3 | | interactive fantasy sports gross revenue less than |
4 | | $100,000 ............................................. $1,500 |
5 | | (c) For subsequent licensure periods, the renewal fee shall |
6 | | not exceed the following: |
7 | | (1) Interactive fantasy sports operators with annual |
8 | | interactive fantasy sports gross revenue greater than |
9 | | $10,000,000 ......................................... $37,500 |
10 | | (2) Interactive fantasy sports operators with annual |
11 | | interactive fantasy sports gross revenue greater than |
12 | | $5,000,000 but not more than $10,000,000 ............ $18,750 |
13 | | (3) Interactive fantasy sports operators with annual |
14 | | interactive fantasy sports gross revenue greater than |
15 | | $1,000,000 but not more than $5,000,000 ............. $11,250 |
16 | | (4) Interactive fantasy sports operators with annual |
17 | | interactive fantasy sports gross revenue of at least |
18 | | $100,000 but not more than $1,000,000 .................$7,500 |
19 | | (5) Interactive fantasy sports operators with annual |
20 | | interactive fantasy sports gross revenue less than |
21 | | $100,000 ............................................. $1,125 |
22 | | (d) All fees collected under this Section shall be |
23 | | deposited into the State Gaming Fund. |
24 | | (e) All fees collected under this Section shall be used for |
25 | | the administration of this Act. |
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1 | | Section 75. Interactive fantasy sports contests |
2 | | authorized. Interactive fantasy sports contests conducted in |
3 | | accordance with the provisions of this Act are hereby |
4 | | authorized. |
5 | | Section 80. Interactive fantasy sports contests |
6 | | prohibited. The conduct of interactive fantasy sports contests |
7 | | by unlicensed operators is prohibited. |
8 | | Section 85. Interactive fantasy sports contests; Criminal |
9 | | Code of 2012. Interactive fantasy sports contests offered in |
10 | | accordance with the provisions of this Act shall not constitute |
11 | | gambling as defined in Section 28-1 of the Criminal Code of |
12 | | 2012. |
13 | | Section 900. Repeal. This Act is repealed on January 1, |
14 | | 2021. |
15 | | Section 905. The Department of Healthcare and Family |
16 | | Services Law of the
Civil Administrative Code of Illinois is |
17 | | amended by adding Section 2205-17 as follows: |
18 | | (20 ILCS 2205/2205-17 new) |
19 | | Sec. 2205-17. The Mental Health Services Fund. The Mental |
20 | | Health Services Fund is created as a special fund in the State |
21 | | treasury. From appropriations to the Department of Healthcare |
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1 | | and Family Services from the Fund, the Department of Healthcare |
2 | | and Family Services shall make grants to support mental health |
3 | | and addiction services in the State. Any federal Medicaid |
4 | | matching funds received by the Department of Healthcare and |
5 | | Family Services for the grants made under this Section shall be |
6 | | deposited into the Fund.
|
7 | | Section 910. The State Finance Act is amended by adding |
8 | | Section 5.878 as follows: |
9 | | (30 ILCS 105/5.878 new) |
10 | | Sec. 5.878. The Mental Health Services Fund. |
11 | | Section 950. The Criminal Code of 2012 is amended by |
12 | | changing Section 28-1 as follows:
|
13 | | (720 ILCS 5/28-1) (from Ch. 38, par. 28-1)
|
14 | | Sec. 28-1. Gambling.
|
15 | | (a) A person commits gambling when he or she:
|
16 | | (1) knowingly plays a game of chance or skill for money |
17 | | or other thing of
value, unless excepted in subsection (b) |
18 | | of this Section;
|
19 | | (2) knowingly makes a wager upon the result of any |
20 | | game, contest, or any
political nomination, appointment or |
21 | | election;
|
22 | | (3) knowingly operates, keeps, owns, uses, purchases, |
|
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1 | | exhibits, rents, sells,
bargains for the sale or lease of, |
2 | | manufactures or distributes any
gambling device;
|
3 | | (4) contracts to have or give himself or herself or |
4 | | another the option to buy
or sell, or contracts to buy or |
5 | | sell, at a future time, any grain or
other commodity |
6 | | whatsoever, or any stock or security of any company,
where |
7 | | it is at the time of making such contract intended by both |
8 | | parties
thereto that the contract to buy or sell, or the |
9 | | option, whenever
exercised, or the contract resulting |
10 | | therefrom, shall be settled, not by
the receipt or delivery |
11 | | of such property, but by the payment only of
differences in |
12 | | prices thereof; however, the issuance, purchase, sale,
|
13 | | exercise, endorsement or guarantee, by or through a person |
14 | | registered
with the Secretary of State pursuant to Section |
15 | | 8 of the Illinois
Securities Law of 1953, or by or through |
16 | | a person exempt from such
registration under said Section |
17 | | 8, of a put, call, or other option to
buy or sell |
18 | | securities which have been registered with the Secretary of
|
19 | | State or which are exempt from such registration under |
20 | | Section 3 of the
Illinois Securities Law of 1953 is not |
21 | | gambling within the meaning of
this paragraph (4);
|
22 | | (5) knowingly owns or possesses any book, instrument or |
23 | | apparatus by
means of which bets or wagers have been, or |
24 | | are, recorded or registered,
or knowingly possesses any |
25 | | money which he has received in the course of
a bet or |
26 | | wager;
|
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1 | | (6) knowingly sells pools upon the result of any game |
2 | | or contest of skill or
chance, political nomination, |
3 | | appointment or election;
|
4 | | (7) knowingly sets up or promotes any lottery or sells, |
5 | | offers to sell or
transfers any ticket or share for any |
6 | | lottery;
|
7 | | (8) knowingly sets up or promotes any policy game or |
8 | | sells, offers to sell or
knowingly possesses or transfers |
9 | | any policy ticket, slip, record,
document or other similar |
10 | | device;
|
11 | | (9) knowingly drafts, prints or publishes any lottery |
12 | | ticket or share,
or any policy ticket, slip, record, |
13 | | document or similar device, except for
such activity |
14 | | related to lotteries, bingo games and raffles authorized by
|
15 | | and conducted in accordance with the laws of Illinois or |
16 | | any other state or
foreign government;
|
17 | | (10) knowingly advertises any lottery or policy game, |
18 | | except for such
activity related to lotteries, bingo games |
19 | | and raffles authorized by and
conducted in accordance with |
20 | | the laws of Illinois or any other state;
|
21 | | (11) knowingly transmits information as to wagers, |
22 | | betting odds, or
changes in betting odds by telephone, |
23 | | telegraph, radio, semaphore or
similar means; or knowingly |
24 | | installs or maintains equipment for the
transmission or |
25 | | receipt of such information; except that nothing in this
|
26 | | subdivision (11) prohibits transmission or receipt of such |
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1 | | information
for use in news reporting of sporting events or |
2 | | contests; or
|
3 | | (12) knowingly establishes, maintains, or operates an |
4 | | Internet site that
permits a person to play a game of
|
5 | | chance or skill for money or other thing of value by means |
6 | | of the Internet or
to make a wager upon the
result of any |
7 | | game, contest, political nomination, appointment, or
|
8 | | election by means of the Internet. This item (12) does not |
9 | | apply to activities referenced in items (6) , and (6.1) , or |
10 | | (15) of subsection (b) of this Section.
|
11 | | (b) Participants in any of the following activities shall |
12 | | not be
convicted of gambling:
|
13 | | (1) Agreements to compensate for loss caused by the |
14 | | happening of
chance including without limitation contracts |
15 | | of indemnity or guaranty
and life or health or accident |
16 | | insurance.
|
17 | | (2) Offers of prizes, award or compensation to the |
18 | | actual
contestants in any bona fide contest for the |
19 | | determination of skill,
speed, strength or endurance or to |
20 | | the owners of animals or vehicles
entered in such contest.
|
21 | | (3) Pari-mutuel betting as authorized by the law of |
22 | | this State.
|
23 | | (4) Manufacture of gambling devices, including the |
24 | | acquisition of
essential parts therefor and the assembly |
25 | | thereof, for transportation in
interstate or foreign |
26 | | commerce to any place outside this State when such
|
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1 | | transportation is not prohibited by any applicable Federal |
2 | | law; or the
manufacture, distribution, or possession of |
3 | | video gaming terminals, as
defined in the Video Gaming Act, |
4 | | by manufacturers, distributors, and
terminal operators |
5 | | licensed to do so under the Video Gaming Act.
|
6 | | (5) The game commonly known as "bingo", when conducted |
7 | | in accordance
with the Bingo License and Tax Act.
|
8 | | (6) Lotteries when conducted by the State of Illinois |
9 | | in accordance
with the Illinois Lottery Law. This exemption |
10 | | includes any activity conducted by the Department of |
11 | | Revenue to sell lottery tickets pursuant to the provisions |
12 | | of the Illinois Lottery Law and its rules.
|
13 | | (6.1) The purchase of lottery tickets through the |
14 | | Internet for a lottery conducted by the State of Illinois |
15 | | under the program established in Section 7.12 of the |
16 | | Illinois Lottery Law.
|
17 | | (7) Possession of an antique slot machine that is |
18 | | neither used nor
intended to be used in the operation or |
19 | | promotion of any unlawful
gambling activity or enterprise. |
20 | | For the purpose of this subparagraph
(b)(7), an antique |
21 | | slot machine is one manufactured 25 years ago or earlier.
|
22 | | (8) Raffles and poker runs when conducted in accordance |
23 | | with the Raffles and Poker Runs Act.
|
24 | | (9) Charitable games when conducted in accordance with |
25 | | the Charitable
Games Act.
|
26 | | (10) Pull tabs and jar games when conducted under the |
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1 | | Illinois Pull
Tabs and Jar Games Act.
|
2 | | (11) Gambling games conducted on riverboats when
|
3 | | authorized by the Riverboat Gambling Act.
|
4 | | (12) Video gaming terminal games at a licensed |
5 | | establishment, licensed truck stop establishment,
licensed
|
6 | | fraternal establishment, or licensed veterans |
7 | | establishment when
conducted in accordance with the Video |
8 | | Gaming Act. |
9 | | (13) Games of skill or chance where money or other |
10 | | things of value can be won but no payment or purchase is |
11 | | required to participate. |
12 | | (14) Savings promotion raffles authorized under |
13 | | Section 5g of the Illinois Banking Act, Section 7008 of the |
14 | | Savings Bank Act, Section 42.7 of the Illinois Credit Union |
15 | | Act, Section 5136B of the National Bank Act (12 U.S.C. |
16 | | 25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C. |
17 | | 1463). |
18 | | (15) Interactive fantasy sports contests and |
19 | | participation in interactive fantasy sports contests |
20 | | authorized under the Fantasy Sports Contest Act. |
21 | | (c) Sentence.
|
22 | | Gambling is a
Class A misdemeanor. A second or
subsequent |
23 | | conviction under subsections (a)(3) through (a)(12),
is a Class |
24 | | 4 felony.
|
25 | | (d) Circumstantial evidence.
|
26 | | In prosecutions under
this
Section circumstantial evidence |