Rep. Eva-Dina Delgado
Filed: 5/22/2024
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1 | AMENDMENT TO HOUSE BILL 394 | ||||||
2 | AMENDMENT NO. ______. Amend House Bill 394, AS AMENDED, by | ||||||
3 | replacing Section 1 with the following: | ||||||
4 | "Article 1. | ||||||
5 | Family Amusement Wagering | ||||||
6 | Section 1. Short title. This Act may be cited as the Family | ||||||
7 | Amusement Wagering Prohibition Act. References to "this Act" | ||||||
8 | in this Article mean this Article."; and | ||||||
9 | by inserting the following immediately below Section 20: | ||||||
10 | "Article 2. | ||||||
11 | Fantasy Sports | ||||||
12 | Section 201. Short title. This Act may be cited as the | ||||||
13 | Fantasy Sports Consumer Protection Act. References to "this |
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1 | Act" in this Article mean this Article. | ||||||
2 | Section 205. Definitions. As used in this Act: | ||||||
3 | "Adjusted gross fantasy contest receipts" means the amount | ||||||
4 | equal to the total of all entry fees that a fantasy contest | ||||||
5 | operator collects from all participants less only the total of | ||||||
6 | all prizes paid out as prizes to all participants multiplied | ||||||
7 | by the location percentage for this State. | ||||||
8 | "Board" means the Illinois Gaming Board. | ||||||
9 | "Entry fee" means a nonrefundable cash or cash equivalent | ||||||
10 | that is paid by a participant and set in advance by a fantasy | ||||||
11 | contest operator granting the participant the right to | ||||||
12 | participate in a fantasy contest. | ||||||
13 | "Fantasy contest" means an online fantasy or simulated | ||||||
14 | game or contest of skill with an entry fee in which: | ||||||
15 | (1) the values of all prizes offered to a winning | ||||||
16 | participant are established and made known to the | ||||||
17 | participant in advance of the contest; | ||||||
18 | (2) all winning outcomes reflect the relative | ||||||
19 | knowledge and skill of the participant; | ||||||
20 | (3) the participant assembles, owns, or manages a | ||||||
21 | fictional entry or roster of actual professional or | ||||||
22 | amateur athletes, in real-world sports events, or an | ||||||
23 | organized video game competition that is regulated by a | ||||||
24 | governing body and that is held between professional | ||||||
25 | players who play individually or as teams; |
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1 | (4) a participant competes for prizes awarded by a | ||||||
2 | fantasy contest operator based on terms and conditions | ||||||
3 | published by the fantasy contest operator and made known | ||||||
4 | to the participant in advance of the contest; | ||||||
5 | (5) winning outcomes are determined solely by clearly | ||||||
6 | established scoring criteria based on one or more | ||||||
7 | statistical results of the performance of an individual | ||||||
8 | athlete, including, but not limited to, a fantasy score; | ||||||
9 | and | ||||||
10 | (6) no winning outcome is entirely based on the score, | ||||||
11 | point spread, or any performance of any single actual team | ||||||
12 | or combination of teams or solely on any single | ||||||
13 | performance of an individual athlete or player in any | ||||||
14 | single actual event. | ||||||
15 | "Fantasy contest" includes both contests wherein | ||||||
16 | participants compete against each other and contests wherein | ||||||
17 | only a single participant competes against a target score set | ||||||
18 | by the fantasy contest operator. "Fantasy contest" does not | ||||||
19 | include any fantasy contest without an entry fee. | ||||||
20 | "Fantasy contest operator" means a person or entity that | ||||||
21 | offers fantasy contests to members of the public. "Fantasy | ||||||
22 | contest operator" does not include an Internet service | ||||||
23 | provider or a provider of mobile data services merely as a | ||||||
24 | result of that entity's transporting general traffic that may | ||||||
25 | include a fantasy contest and does not include a fantasy | ||||||
26 | contest participant by virtue of doing any combination of the |
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1 | following: (i) setting house rules for a contest; (ii) | ||||||
2 | assigning a salary or target score to any eligible athlete or | ||||||
3 | player; (iii) accepting an entry fee from a fantasy contest | ||||||
4 | participant; or (iv) awarding or disbursing prizes in | ||||||
5 | conformance with this Act. | ||||||
6 | "Location percentage" means the percentage rounded to the | ||||||
7 | nearest 0.1% of the total entry fees collected from players | ||||||
8 | located in this State, divided by the total entry fees | ||||||
9 | collected from all players in the fantasy contest. | ||||||
10 | "Participant" means an individual who participates in a | ||||||
11 | fantasy contest offered by a fantasy contest operator. | ||||||
12 | "Prohibited participant" means an individual who has | ||||||
13 | self-excluded under Section 245 or an athlete, coach, referee, | ||||||
14 | trainer, or team staff when there is direct involvement of the | ||||||
15 | athlete, coach, referee, trainer, or staff; the athlete's or | ||||||
16 | staff's team; or the athletes that the coach coaches or the | ||||||
17 | trainer trains. | ||||||
18 | "Qualified applicant" means an applicant for a license | ||||||
19 | under this Act whose application meets the mandatory minimum | ||||||
20 | qualification criteria as required by the Board. | ||||||
21 | Section 210. Board duties and powers. | ||||||
22 | (a) The Board may regulate the conduct of fantasy contest | ||||||
23 | operators under this Act. | ||||||
24 | (b) The Board shall adopt any rules the Board considers | ||||||
25 | necessary for the successful implementation, administration, |
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1 | and enforcement of this Act. The Board shall adopt rules no | ||||||
2 | later than 180 days after the effective date of this Act. Rules | ||||||
3 | proposed by the Board may be adopted as emergency rules under | ||||||
4 | Section 5-45 of the Illinois Administrative Procedure Act. | ||||||
5 | (c) The Board shall levy and collect all fees, surcharges, | ||||||
6 | civil penalties, and, on adjusted gross fantasy contest | ||||||
7 | receipts imposed under this Act, monthly taxes as follows: | ||||||
8 | (1) All registration and renewal fees collected under | ||||||
9 | this Act shall be deposited and distributed as follows: | ||||||
10 | (A) 85% of fees shall be deposited into the State | ||||||
11 | Gaming Fund and used for the administration of this | ||||||
12 | Act; and | ||||||
13 | (B) 15% of fees shall be paid, subject to | ||||||
14 | appropriation by the General Assembly, to the | ||||||
15 | Department of Human Services for administration of | ||||||
16 | programs for the treatment of compulsive gambling. | ||||||
17 | (2) All taxes collected under Section 240 shall be | ||||||
18 | deposited into the Common School Fund. | ||||||
19 | (3) All civil penalties levied as a direct result of | ||||||
20 | violations of this Act, less any costs incurred by the | ||||||
21 | Board during the course of investigation which resulted in | ||||||
22 | the civil penalty, shall be paid, subject to appropriation | ||||||
23 | by the General Assembly, to the Department of Human | ||||||
24 | Services for administration of programs for the treatment | ||||||
25 | of compulsive gambling. | ||||||
26 | (4) All other money collected from civil penalties |
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1 | shall be deposited or disbursed at the discretion of the | ||||||
2 | Board. | ||||||
3 | (d) The Board shall require fantasy contest operators to | ||||||
4 | comply with the anti-money laundering standards, as defined by | ||||||
5 | the federal Bank Secrecy Act of 1970 and the Anti-Money | ||||||
6 | Laundering Act of 2020. | ||||||
7 | (e) The Board shall verify that fantasy contest operators | ||||||
8 | establish technical and operational measures to prevent | ||||||
9 | underage participation in a fantasy contest. | ||||||
10 | (f) The Board shall verify that fantasy contest operators | ||||||
11 | deploy identity verification procedures, which may require the | ||||||
12 | use of a reputable independent third party that is in the | ||||||
13 | business of verifying an individual's personally identifiable | ||||||
14 | information and can detect potential prohibited participants. | ||||||
15 | (g) The Board shall verify that fantasy contest operators | ||||||
16 | employ mechanisms on the operator's platform that are designed | ||||||
17 | to detect and prevent unauthorized accounts and to detect and | ||||||
18 | prevent fraud, money laundering, and collusion. | ||||||
19 | (h) The Board shall require the use of geolocation | ||||||
20 | technology to verify that a participant is not accessing the | ||||||
21 | platform from a restricted jurisdiction. | ||||||
22 | (i) The Board shall adopt rules establishing compulsive | ||||||
23 | and problem gambling standards for fantasy contest operators | ||||||
24 | that are consistent with this Act. | ||||||
25 | (j) The Board may exercise any other powers necessary to | ||||||
26 | enforce the provisions of this Act that it regulates and the |
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1 | rules of the Board. | ||||||
2 | (k) The Board and fantasy contest operator licensees may | ||||||
3 | cooperate with investigations conducted by law enforcement | ||||||
4 | agencies, including, but not limited to, providing and | ||||||
5 | facilitating the provision of account-level entry and | ||||||
6 | participation information. | ||||||
7 | (l) A fantasy contest operator licensee shall make all | ||||||
8 | reasonable efforts to promptly notify the Board of any | ||||||
9 | information relating to: | ||||||
10 | (1) a confirmed breach of the relevant sport's | ||||||
11 | governing body's internal rules and codes of conduct | ||||||
12 | pertaining to participation in real-money fantasy | ||||||
13 | contests; | ||||||
14 | (2) any conduct that corrupts any outcome related to a | ||||||
15 | sports event or sports events for purposes of financial | ||||||
16 | gain, including match fixing; and | ||||||
17 | (3) confirmed illegal activities, including use of | ||||||
18 | funds derived from illegal activity, entries to conceal or | ||||||
19 | launder funds derived from illegal activity, | ||||||
20 | multi-accounting, and using false identification. | ||||||
21 | Section 215. License. | ||||||
22 | (a) Except as otherwise provided in this Section, a person | ||||||
23 | may not offer fantasy contests in this State unless the person | ||||||
24 | is licensed by the Board as a fantasy contest operator. | ||||||
25 | (b) An applicant for a license issued under this Act shall |
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1 | submit an application to the Board in the form the Board | ||||||
2 | requires. The applicant shall submit fingerprints for a | ||||||
3 | national criminal history record check by a law enforcement | ||||||
4 | agency. The fingerprints shall be furnished by the applicant's | ||||||
5 | owners, officers, and directors (if a corporation), managers | ||||||
6 | and members (if a limited liability company), and partners (if | ||||||
7 | a partnership). The fingerprints shall be accompanied by a | ||||||
8 | signed authorization for the release of information by the law | ||||||
9 | enforcement agency. The Board may require additional | ||||||
10 | background checks on licensees when they apply for license | ||||||
11 | renewal, and an applicant convicted of a disqualifying offense | ||||||
12 | shall not be licensed. This subsection does not require an | ||||||
13 | applicant or individual who has submitted to a national | ||||||
14 | criminal history record check in this State or any other state | ||||||
15 | within the 12 months before submitting the application to | ||||||
16 | resubmit to another criminal history record check if the | ||||||
17 | applicant or individual submits the results of the previous | ||||||
18 | criminal history record check and affirms that there has been | ||||||
19 | no material change in the criminal history since the time of | ||||||
20 | the criminal history record check. | ||||||
21 | (c) The information required by the Board shall include | ||||||
22 | documentation of all of the following: | ||||||
23 | (1) The name of the applicant. | ||||||
24 | (2) The location of the applicant's principal place of | ||||||
25 | business. | ||||||
26 | (3) The applicant's contact information. |
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1 | (4) The applicant's social security number or, if | ||||||
2 | applicable, the applicant's federal tax identification | ||||||
3 | number. | ||||||
4 | (5) The name and address of each individual that holds | ||||||
5 | a 10% or more ownership interest in the applicant or in | ||||||
6 | shares of the applicant. | ||||||
7 | (6) The applicant's criminal record, if any, or, if | ||||||
8 | the applicant is a business entity, on request, any | ||||||
9 | criminal record of an individual who is a director, | ||||||
10 | officer, or key employee of the applicant or any | ||||||
11 | individual who has a 10% or more ownership interest in the | ||||||
12 | applicant. | ||||||
13 | (7) Any ownership interest that a director, officer, | ||||||
14 | key employee, or individual owner of 10% or more of the | ||||||
15 | applicant holds in a business that is or was a fantasy | ||||||
16 | contest operator or similar entity in any jurisdiction. | ||||||
17 | (8) An identification of any business in which an | ||||||
18 | applicant or a director, officer, key employee, or | ||||||
19 | individual owner of 10% or more of the applicant has an | ||||||
20 | equity interest of 5% or more. If a business has been | ||||||
21 | identified under this paragraph, documentation must be | ||||||
22 | provided showing the state in which the business is | ||||||
23 | incorporated or registered, if applicable. | ||||||
24 | (9) Whether an applicant, director, officer, key | ||||||
25 | employee, or individual owner of 10% or more of the | ||||||
26 | applicant has ever applied for or been granted any |
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1 | license, registration, or certificate issued by a | ||||||
2 | licensing authority in this State or any other | ||||||
3 | jurisdiction for a gaming activity. | ||||||
4 | (10) Whether an applicant or a director, officer, key | ||||||
5 | employee, or individual owner of 10% or more of the | ||||||
6 | applicant has filed or been served with a complaint or | ||||||
7 | other notice filed by a public body regarding the | ||||||
8 | delinquency in payment of or dispute over filings | ||||||
9 | concerning the payment of any tax required under federal, | ||||||
10 | State, or local law, including the amount of tax, the type | ||||||
11 | of tax, the taxing agency and the time periods involved. | ||||||
12 | (11) Information sufficient to show, as determined by | ||||||
13 | the Board, that the applicant can meet the requirements of | ||||||
14 | procedures submitted by the applicant under the Act and | ||||||
15 | under any rules adopted under this Act. | ||||||
16 | (12) The Board may adopt rules to establish additional | ||||||
17 | qualifications and requirements to preserve the integrity | ||||||
18 | and security of fantasy contests in this State and to | ||||||
19 | promote and maintain a competitive fantasy sports market. | ||||||
20 | (d) On receipt of a completed application and the required | ||||||
21 | fee, the Board shall conduct the necessary background | ||||||
22 | investigation to determine if the applicant meets the | ||||||
23 | qualifications for licensure. On completion of the necessary | ||||||
24 | background investigation, the Board shall either issue a | ||||||
25 | license or deny the application. If the application for | ||||||
26 | licensure is denied, a statement setting forth the grounds for |
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1 | denial shall be forwarded to the applicant together with all | ||||||
2 | other documents relied on by the Board, to the extent allowed | ||||||
3 | by law. | ||||||
4 | Section 220. Fantasy contests. | ||||||
5 | (a) Any fantasy contest conducted under this Act does not | ||||||
6 | constitute gambling for any purpose, including under Article | ||||||
7 | 28 of the Criminal Code of 1961 or the Criminal Code of 2012. | ||||||
8 | (b) Notwithstanding any provision of law to the contrary, | ||||||
9 | the operation of fantasy contests is only lawful when | ||||||
10 | conducted in accordance with the provisions of this Act. | ||||||
11 | (c) A person participating in a fantasy contest under this | ||||||
12 | Act shall be at least 19 years of age. | ||||||
13 | (d) A licensee under this Act may only accept an entry from | ||||||
14 | a person physically located in the State. A fantasy contest | ||||||
15 | operator must use a geolocation system to ensure that a | ||||||
16 | participant is physically present in the State when | ||||||
17 | participating in the fantasy contest unless otherwise | ||||||
18 | authorized by the Board. | ||||||
19 | (e) This Act shall be construed liberally to promote the | ||||||
20 | general welfare of the public and integrity of the fantasy | ||||||
21 | sports industry. However, the Board may not adopt rules | ||||||
22 | limiting or regulating the rules or administration of an | ||||||
23 | individual fantasy contest, the statistical makeup of a | ||||||
24 | fantasy contest, or the digital platform of a fantasy contest | ||||||
25 | operator. |
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1 | (f) No licensed fantasy contest operator shall be forced | ||||||
2 | to surrender or terminate its license prior to the date of | ||||||
3 | expiration of the license solely by virtue of a change in the | ||||||
4 | rules adopted under this Act. | ||||||
5 | Section 225. Issuance and denial of license. | ||||||
6 | (a) The initial license fee for a fantasy contest operator | ||||||
7 | that operated in Illinois before the effective date of this | ||||||
8 | Act shall be 8% of its adjusted gross fantasy contest receipts | ||||||
9 | from the preceding calendar year or $1,000,000, whichever is | ||||||
10 | less. The initial license fee for a fantasy contest operator | ||||||
11 | that did not operate in Illinois for at least 12 months before | ||||||
12 | the effective date of this Act shall be $10,000, except, if a | ||||||
13 | fantasy contest operator has 10,000 or more fantasy contest | ||||||
14 | participants in Illinois with an active account who | ||||||
15 | participated in at least one fantasy contest with an entry | ||||||
16 | fee, then the fantasy contest operator shall notify the Board | ||||||
17 | and remit an application fee in the amount of $990,000 within | ||||||
18 | 10 days of notifying the Board. | ||||||
19 | (b) A fantasy contest operator that was offering contests | ||||||
20 | to persons located in Illinois before the effective date of | ||||||
21 | this Act may continue to offer contests to persons located in | ||||||
22 | Illinois until the fantasy contest operator's application for | ||||||
23 | licensure has been approved or denied under this Act if the | ||||||
24 | fantasy contest operator files an application for licensure | ||||||
25 | with the Board within 90 days after the adoption of rules to |
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1 | effectuate this Act. | ||||||
2 | (c) Licenses issued by the Board shall remain in effect | ||||||
3 | for 4 years. The Board shall establish a process for renewal | ||||||
4 | with a renewal fee being 1% of the adjusted gross fantasy | ||||||
5 | contests receipts for the preceding 4 years. | ||||||
6 | (d) A fantasy contest operator that allows its license to | ||||||
7 | lapse, without requesting an extension of time to file, shall | ||||||
8 | resubmit an initial application. An extension may be granted | ||||||
9 | by the Board upon receipt of a written request. | ||||||
10 | (e) A fantasy contest operator applying for a license or | ||||||
11 | renewal of a license may operate during the application period | ||||||
12 | unless the Board has reasonable cause to believe that the | ||||||
13 | fantasy contest operator is or may be in violation of the | ||||||
14 | provisions of this Act and the Board requires the fantasy | ||||||
15 | contest operator to suspend the operation of any fantasy | ||||||
16 | contest until the license or renewal of a license is issued. | ||||||
17 | Section 230. Independent audits. | ||||||
18 | (a) As part of its submission for licensure or renewal, an | ||||||
19 | applicant shall: (i) contract with a certified public | ||||||
20 | accountant to conduct an independent audit, consistent with | ||||||
21 | generally accepted accounting principles; (ii) annually | ||||||
22 | contract with a testing laboratory recognized by the Board to | ||||||
23 | verify compliance with the provisions of this Act; and (iii) | ||||||
24 | submit to the Board a copy of the audit report and a report of | ||||||
25 | the testing laboratory. |
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1 | (b) An initial applicant is not required to submit an | ||||||
2 | audit report and report of the testing laboratory until the 24 | ||||||
3 | months following the issuance of a licensee to the licensee. | ||||||
4 | Section 235. Reporting prohibited conduct; investigations | ||||||
5 | of prohibited conduct. | ||||||
6 | (a) The Board shall investigate all reasonable allegations | ||||||
7 | of prohibited conduct and refer any allegations it deems | ||||||
8 | credible to the appropriate law enforcement entity. | ||||||
9 | (b) The identity of any reporting person shall remain | ||||||
10 | confidential unless that person authorizes disclosure of the | ||||||
11 | person's identity or until the allegation of prohibited | ||||||
12 | conduct is referred to law enforcement. | ||||||
13 | (c) If the Board receives a complaint of prohibited | ||||||
14 | conduct by an athlete, the Board shall notify the appropriate | ||||||
15 | sports governing body of the athlete to review the complaint | ||||||
16 | as provided by rule of the Board. | ||||||
17 | (d) The Board shall adopt rules governing investigations | ||||||
18 | of prohibited conduct and referrals to law enforcement | ||||||
19 | entities. | ||||||
20 | Section 240. Tax. Beginning on July 1, 2025, for the | ||||||
21 | privilege of holding a license to operate fantasy contests | ||||||
22 | under this Act, this State shall impose and collect a tax at a | ||||||
23 | rate of at least 10% but not more than 15%, as determined by | ||||||
24 | rule of the Board, of the fantasy contest operator's adjusted |
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1 | gross fantasy contests receipts. The accrual method of | ||||||
2 | accounting shall be used for purposes of calculating the | ||||||
3 | amount of the tax owed by the licensee. The fantasy contest | ||||||
4 | operator shall submit to the Board, on or before the last day | ||||||
5 | of each calendar month, a return indicating the amount of tax | ||||||
6 | due under this Section for the previous calendar month as well | ||||||
7 | as any other information the Board shall require by rule and | ||||||
8 | shall remit to the Board payment of the tax due under this | ||||||
9 | Section with that return. | ||||||
10 | Section 245. Compulsive gaming; voluntary self-exclusion. | ||||||
11 | (a) Each licensee shall include a statement regarding | ||||||
12 | obtaining assistance with real-money gaming problems on the | ||||||
13 | licensee's portal, website, or computer or mobile application | ||||||
14 | and on all marketing materials and advertisements of the | ||||||
15 | licensee. | ||||||
16 | (b) A resident, or nonresident if allowed to participate | ||||||
17 | in fantasy contests, may voluntarily prohibit the resident or | ||||||
18 | nonresident from establishing a fantasy contest account with a | ||||||
19 | fantasy contest operator under this Act. The Board shall | ||||||
20 | incorporate the voluntary self-exclusion program for fantasy | ||||||
21 | contests into any existing self-exclusion program that it | ||||||
22 | operates on the effective date of this Act. | ||||||
23 | (c) If a self-excluded person participates in a fantasy | ||||||
24 | contest, the fantasy contest operator shall report to the | ||||||
25 | Board, at a minimum, the name of the self-excluded person, the |
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1 | date of participation, the amount or value of any money, | ||||||
2 | prizes, or awards forfeited, if any, and any other action | ||||||
3 | taken. | ||||||
4 | (d) A fantasy contest operator may not pay any prize or | ||||||
5 | award to a person who is on the Board's self-exclusion list. | ||||||
6 | Any prize or award won by a person on the self-exclusion list | ||||||
7 | is forfeited and shall be donated by the fantasy contest | ||||||
8 | operator to the problem gaming charities or programs as | ||||||
9 | identified and directed by the Board on a quarterly basis by | ||||||
10 | the twenty-fifth day of the following month. | ||||||
11 | (e) A fantasy contest operator shall develop and maintain | ||||||
12 | a program to mitigate compulsive play and curtail compulsive | ||||||
13 | play, which may be in conjunction with the Board. | ||||||
14 | Section 250. Supplier diversity goals for fantasy contest | ||||||
15 | operators. | ||||||
16 | (a) The Board shall require licensees under this Act to | ||||||
17 | submit an annual report, in a searchable Adobe PDF format, on | ||||||
18 | all procurement goals and actual spending for businesses owned | ||||||
19 | by women, minorities, veterans, tribal and indigenous persons, | ||||||
20 | and persons with disabilities and for all small business | ||||||
21 | enterprises in the previous calendar year. These goals shall | ||||||
22 | be expressed as a percentage of the total work performed by the | ||||||
23 | entity submitting the report, and the actual spending for all | ||||||
24 | businesses owned by women, minorities, veterans, tribal and | ||||||
25 | indigenous persons, and persons with disabilities and for all |
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1 | small business enterprises shall also be expressed as a | ||||||
2 | percentage of the total work performed by the entity | ||||||
3 | submitting the report. The initial report shall be due one | ||||||
4 | year after the effective date of this Act and once every 2 | ||||||
5 | years thereafter. | ||||||
6 | (b) Each licensee in its annual report shall include the | ||||||
7 | following information: | ||||||
8 | (1) an explanation of the plan for the next year to | ||||||
9 | increase participation; | ||||||
10 | (2) an explanation of the plan to increase the goals; | ||||||
11 | (3) the areas of procurement each licensee shall be | ||||||
12 | actively seeking more participation in the next year; | ||||||
13 | (4) an outline of the plan to alert and encourage | ||||||
14 | potential vendors in that area to seek business from the | ||||||
15 | licensee; | ||||||
16 | (5) an explanation of the challenges faced in finding | ||||||
17 | quality vendors and offer any suggestions for what the | ||||||
18 | Board could do to be helpful to identify those vendors; | ||||||
19 | (6) a list of the certifications the licensee | ||||||
20 | recognizes; | ||||||
21 | (7) the point of contact for any potential vendor who | ||||||
22 | wishes to do business with the licensee and explain the | ||||||
23 | process for a vendor to enroll with the licensee as a | ||||||
24 | businesses owned by women, minorities, veterans, tribal | ||||||
25 | and indigenous persons, or persons with disabilities; and | ||||||
26 | (8) any particular success stories to encourage other |
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1 | licensees to emulate best practices. | ||||||
2 | (c) Each annual report shall include as much | ||||||
3 | State-specific data as possible. If the submitting entity does | ||||||
4 | not submit State-specific data, then the licensee shall | ||||||
5 | include any national data it does have and explain why it could | ||||||
6 | not submit State-specific data and how it intends to do so in | ||||||
7 | future reports, if possible. | ||||||
8 | (d) Each annual report shall include the rules, | ||||||
9 | regulations, and definitions used for the procurement goals in | ||||||
10 | the licensee's annual report."; and | ||||||
11 | by replacing Section 25 with the following: | ||||||
12 | "Article 3. | ||||||
13 | Amendatory Provisions | ||||||
14 | Section 300. The Illinois Administrative Procedure Act is | ||||||
15 | amended by adding Section 5-45.55 as follows: | ||||||
16 | (5 ILCS 100/5-45.55 new) | ||||||
17 | Sec. 5-45.55. Emergency rulemaking; Illinois Gaming Board. | ||||||
18 | To provide for the expeditious and timely implementation of | ||||||
19 | this amendatory Act of the 103rd General Assembly, emergency | ||||||
20 | rules implementing the Fantasy Sports Consumer Protection Act | ||||||
21 | may be adopted in accordance with Section 5-45 by the Illinois | ||||||
22 | Gaming. The adoption of emergency rules authorized by Section |
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1 | 5-45 and this Section is deemed to be necessary for the public | ||||||
2 | interest, safety, and welfare. | ||||||
3 | This Section is repealed one year after the effective date | ||||||
4 | of this amendatory Act of the 103rd General Assembly. | ||||||
5 | Section 305. The Sports Wagering Act is amended by | ||||||
6 | changing Section 25-10 as follows: | ||||||
7 | (230 ILCS 45/25-10) | ||||||
8 | Sec. 25-10. Definitions. As used in this Act: | ||||||
9 | "Adjusted gross sports wagering receipts" means a master | ||||||
10 | sports wagering licensee's gross sports wagering receipts, | ||||||
11 | less winnings paid to wagerers in such games. | ||||||
12 | "Athlete" means any current or former professional athlete | ||||||
13 | or collegiate athlete. | ||||||
14 | "Board" means the Illinois Gaming Board. | ||||||
15 | "Covered persons" includes athletes; umpires, referees, | ||||||
16 | and officials; personnel associated with clubs, teams, | ||||||
17 | leagues, and athletic associations; medical professionals | ||||||
18 | (including athletic trainers) who provide services to athletes | ||||||
19 | and players; and the family members and associates of these | ||||||
20 | persons where required to serve the purposes of this Act. | ||||||
21 | "Department" means the Department of the Lottery. | ||||||
22 | "Gaming facility" means a facility at which gambling | ||||||
23 | operations are conducted under the Illinois Gambling Act, | ||||||
24 | pari-mutuel wagering is conducted under the Illinois Horse |
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1 | Racing Act of 1975, or sports wagering is conducted under this | ||||||
2 | Act. | ||||||
3 | "Official league data" means statistics, results, | ||||||
4 | outcomes, and other data related to a sports event obtained | ||||||
5 | pursuant to an agreement with the relevant sports governing | ||||||
6 | body, or an entity expressly authorized by the sports | ||||||
7 | governing body to provide such information to licensees, that | ||||||
8 | authorizes the use of such data for determining the outcome of | ||||||
9 | tier 2 sports wagers on such sports events. | ||||||
10 | "Organization licensee" has the meaning given to that term | ||||||
11 | in the Illinois Horse Racing Act of 1975. | ||||||
12 | "Owners licensee" means the holder of an owners license | ||||||
13 | under the Illinois Gambling Act. | ||||||
14 | "Person" means an individual, partnership, committee, | ||||||
15 | association, corporation, or any other organization or group | ||||||
16 | of persons. | ||||||
17 | "Personal biometric data" means an athlete's information | ||||||
18 | derived from DNA, heart rate, blood pressure, perspiration | ||||||
19 | rate, internal or external body temperature, hormone levels, | ||||||
20 | glucose levels, hydration levels, vitamin levels, bone | ||||||
21 | density, muscle density, and sleep patterns. | ||||||
22 | "Prohibited conduct" includes any statement, action, and | ||||||
23 | other communication intended to influence, manipulate, or | ||||||
24 | control a betting outcome of a sporting contest or of any | ||||||
25 | individual occurrence or performance in a sporting contest in | ||||||
26 | exchange for financial gain or to avoid financial or physical |
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1 | harm. "Prohibited conduct" includes statements, actions, and | ||||||
2 | communications made to a covered person by a third party, such | ||||||
3 | as a family member or through social media. "Prohibited | ||||||
4 | conduct" does not include statements, actions, or | ||||||
5 | communications made or sanctioned by a team or sports | ||||||
6 | governing body. | ||||||
7 | "Qualified applicant" means an applicant for a license | ||||||
8 | under this Act whose application meets the mandatory minimum | ||||||
9 | qualification criteria as required by the Board. | ||||||
10 | "Sporting contest" means a sports event or game on which | ||||||
11 | the State allows sports wagering to occur under this Act. | ||||||
12 | "Sports event" means a professional sport or athletic | ||||||
13 | event, a collegiate sport or athletic event, a motor race | ||||||
14 | event, or any other event or competition of relative skill | ||||||
15 | authorized by the Board under this Act. | ||||||
16 | "Sports facility" means a facility that hosts sports | ||||||
17 | events and holds a seating capacity greater than 17,000 | ||||||
18 | persons, except in a municipality with a population of more | ||||||
19 | than 1,000,000, a seating capacity greater than 10,000 | ||||||
20 | persons. | ||||||
21 | "Sports governing body" means the organization that | ||||||
22 | prescribes final rules and enforces codes of conduct with | ||||||
23 | respect to a sports event and participants therein. | ||||||
24 | "Sports wagering" means accepting wagers on sports events | ||||||
25 | or portions of sports events, or on the individual performance | ||||||
26 | statistics of athletes in a sports event or combination of |
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1 | sports events, by any system or method of wagering, including, | ||||||
2 | but not limited to, in person or over the Internet through | ||||||
3 | websites and on mobile devices. "Sports wagering" includes, | ||||||
4 | but is not limited to, single-game bets, teaser bets, parlays, | ||||||
5 | over-under, moneyline, pools, exchange wagering, in-game | ||||||
6 | wagering, in-play bets, proposition bets, and straight bets. | ||||||
7 | "Sports wagering" does not include fantasy contests as that | ||||||
8 | term is defined in Section 5 of the Fantasy Sports Consumer | ||||||
9 | Protection Act. | ||||||
10 | "Sports wagering account" means a financial record | ||||||
11 | established by a master sports wagering licensee for an | ||||||
12 | individual patron in which the patron may deposit and withdraw | ||||||
13 | funds for sports wagering and other authorized purchases and | ||||||
14 | to which the master sports wagering licensee may credit | ||||||
15 | winnings or other amounts due to that patron or authorized by | ||||||
16 | that patron. | ||||||
17 | "Tier 1 sports wager" means a sports wager that is | ||||||
18 | determined solely by the final score or final outcome of the | ||||||
19 | sports event and is placed before the sports event has begun. | ||||||
20 | "Tier 2 sports wager" means a sports wager that is not a | ||||||
21 | tier 1 sports wager. | ||||||
22 | "Wager" means a sum of money or thing of value risked on an | ||||||
23 | uncertain occurrence. | ||||||
24 | "Winning bidder" means a qualified applicant for a master | ||||||
25 | sports wagering license chosen through the competitive | ||||||
26 | selection process under Section 25-45. |
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1 | (Source: P.A. 101-31, eff. 6-28-19; 102-689, eff. 12-17-21.) | ||||||
2 | Section 310. The Criminal Code of 2012 is amended by | ||||||
3 | changing Sections 28-1 and 28-3 as follows: | ||||||
4 | (720 ILCS 5/28-1) (from Ch. 38, par. 28-1) | ||||||
5 | Sec. 28-1. Gambling. | ||||||
6 | (a) A person commits gambling when he or she: | ||||||
7 | (1) knowingly plays a game of chance or skill for | ||||||
8 | money or other thing of value, unless excepted in | ||||||
9 | subsection (b) of this Section; | ||||||
10 | (2) knowingly makes a wager upon the result of any | ||||||
11 | game, contest, or any political nomination, appointment or | ||||||
12 | election; | ||||||
13 | (3) knowingly operates, keeps, owns, uses, purchases, | ||||||
14 | exhibits, rents, sells, bargains for the sale or lease of, | ||||||
15 | manufactures or distributes any gambling device; | ||||||
16 | (4) contracts to have or give himself or herself or | ||||||
17 | another the option to buy or sell, or contracts to buy or | ||||||
18 | sell, at a future time, any grain or other commodity | ||||||
19 | whatsoever, or any stock or security of any company, where | ||||||
20 | it is at the time of making such contract intended by both | ||||||
21 | parties thereto that the contract to buy or sell, or the | ||||||
22 | option, whenever exercised, or the contract resulting | ||||||
23 | therefrom, shall be settled, not by the receipt or | ||||||
24 | delivery of such property, but by the payment only of |
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1 | differences in prices thereof; however, the issuance, | ||||||
2 | purchase, sale, exercise, endorsement or guarantee, by or | ||||||
3 | through a person registered with the Secretary of State | ||||||
4 | pursuant to Section 8 of the Illinois Securities Law of | ||||||
5 | 1953, or by or through a person exempt from such | ||||||
6 | registration under said Section 8, of a put, call, or | ||||||
7 | other option to buy or sell securities which have been | ||||||
8 | registered with the Secretary of State or which are exempt | ||||||
9 | from such registration under Section 3 of the Illinois | ||||||
10 | Securities Law of 1953 is not gambling within the meaning | ||||||
11 | of this paragraph (4); | ||||||
12 | (5) knowingly owns or possesses any book, instrument | ||||||
13 | or apparatus by means of which bets or wagers have been, or | ||||||
14 | are, recorded or registered, or knowingly possesses any | ||||||
15 | money which he has received in the course of a bet or | ||||||
16 | wager; | ||||||
17 | (6) knowingly sells pools upon the result of any game | ||||||
18 | or contest of skill or chance, political nomination, | ||||||
19 | appointment or election; | ||||||
20 | (7) knowingly sets up or promotes any lottery or | ||||||
21 | sells, offers to sell or transfers any ticket or share for | ||||||
22 | any lottery; | ||||||
23 | (8) knowingly sets up or promotes any policy game or | ||||||
24 | sells, offers to sell or knowingly possesses or transfers | ||||||
25 | any policy ticket, slip, record, document or other similar | ||||||
26 | device; |
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1 | (9) knowingly drafts, prints or publishes any lottery | ||||||
2 | ticket or share, or any policy ticket, slip, record, | ||||||
3 | document or similar device, except for such activity | ||||||
4 | related to lotteries, bingo games and raffles authorized | ||||||
5 | by and conducted in accordance with the laws of Illinois | ||||||
6 | or any other state or foreign government; | ||||||
7 | (10) knowingly advertises any lottery or policy game, | ||||||
8 | except for such activity related to lotteries, bingo games | ||||||
9 | and raffles authorized by and conducted in accordance with | ||||||
10 | the laws of Illinois or any other state; | ||||||
11 | (11) knowingly transmits information as to wagers, | ||||||
12 | betting odds, or changes in betting odds by telephone, | ||||||
13 | telegraph, radio, semaphore or similar means; or knowingly | ||||||
14 | installs or maintains equipment for the transmission or | ||||||
15 | receipt of such information; except that nothing in this | ||||||
16 | subdivision (11) prohibits transmission or receipt of such | ||||||
17 | information for use in news reporting of sporting events | ||||||
18 | or contests; or | ||||||
19 | (12) knowingly establishes, maintains, or operates an | ||||||
20 | Internet site that permits a person to play a game of | ||||||
21 | chance or skill for money or other thing of value by means | ||||||
22 | of the Internet or to make a wager upon the result of any | ||||||
23 | game, contest, political nomination, appointment, or | ||||||
24 | election by means of the Internet. This item (12) does not | ||||||
25 | apply to activities referenced in items (6), (6.1), (8), | ||||||
26 | (8.1), and (15) , and (16) of subsection (b) of this |
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1 | Section ; or . | ||||||
2 | (13) knowingly facilitates wagering on amusement | ||||||
3 | devices or knowingly engages in advertising that promotes | ||||||
4 | wagering on amusement devices in violation of the Family | ||||||
5 | Amusement Wagering Prohibition Act. | ||||||
6 | (b) Participants in any of the following activities shall | ||||||
7 | not be convicted of gambling: | ||||||
8 | (1) Agreements to compensate for loss caused by the | ||||||
9 | happening of chance including without limitation contracts | ||||||
10 | of indemnity or guaranty and life or health or accident | ||||||
11 | insurance. | ||||||
12 | (2) Unless prohibited by the Family Amusement Wagering | ||||||
13 | Prohibition Act, offers Offers of prizes, award or | ||||||
14 | compensation to the actual contestants in any bona fide | ||||||
15 | contest for the determination of skill, speed, strength or | ||||||
16 | endurance or to the owners of animals or vehicles entered | ||||||
17 | in such contest. | ||||||
18 | (3) Pari-mutuel betting as authorized by the law of | ||||||
19 | this State. | ||||||
20 | (4) Manufacture of gambling devices, including the | ||||||
21 | acquisition of essential parts therefor and the assembly | ||||||
22 | thereof, for transportation in interstate or foreign | ||||||
23 | commerce to any place outside this State when such | ||||||
24 | transportation is not prohibited by any applicable Federal | ||||||
25 | law; or the manufacture, distribution, or possession of | ||||||
26 | video gaming terminals, as defined in the Video Gaming |
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1 | Act, by manufacturers, distributors, and terminal | ||||||
2 | operators licensed to do so under the Video Gaming Act. | ||||||
3 | (5) The game commonly known as "bingo", when conducted | ||||||
4 | in accordance with the Bingo License and Tax Act. | ||||||
5 | (6) Lotteries when conducted by the State of Illinois | ||||||
6 | in accordance with the Illinois Lottery Law. This | ||||||
7 | exemption includes any activity conducted by the | ||||||
8 | Department of Revenue to sell lottery tickets pursuant to | ||||||
9 | the provisions of the Illinois Lottery Law and its rules. | ||||||
10 | (6.1) The purchase of lottery tickets through the | ||||||
11 | Internet for a lottery conducted by the State of Illinois | ||||||
12 | under the program established in Section 7.12 of the | ||||||
13 | Illinois Lottery Law. | ||||||
14 | (7) Possession of an antique slot machine that is | ||||||
15 | neither used nor intended to be used in the operation or | ||||||
16 | promotion of any unlawful gambling activity or enterprise. | ||||||
17 | For the purpose of this subparagraph (b)(7), an antique | ||||||
18 | slot machine is one manufactured 25 years ago or earlier. | ||||||
19 | (8) Raffles and poker runs when conducted in | ||||||
20 | accordance with the Raffles and Poker Runs Act. | ||||||
21 | (8.1) The purchase of raffle chances for a raffle | ||||||
22 | conducted in accordance with the Raffles and Poker Runs | ||||||
23 | 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 when authorized by the Illinois | ||||||
3 | Gambling Act. | ||||||
4 | (12) Video gaming terminal games at a licensed | ||||||
5 | establishment, licensed truck stop establishment, licensed | ||||||
6 | large truck stop establishment, licensed fraternal | ||||||
7 | establishment, or licensed veterans establishment when | ||||||
8 | conducted in accordance with the Video 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 | ||||||
14 | the Savings Bank Act, Section 42.7 of the Illinois Credit | ||||||
15 | Union Act, Section 5136B of the National Bank Act (12 | ||||||
16 | U.S.C. 25a), or Section 4 of the Home Owners' Loan Act (12 | ||||||
17 | U.S.C. 1463). | ||||||
18 | (15) Sports wagering when conducted in accordance with | ||||||
19 | the Sports Wagering Act. | ||||||
20 | (16) Fantasy contest wagering when conducted in | ||||||
21 | accordance with the Fantasy Sports Consumer Protection | ||||||
22 | Act. | ||||||
23 | (c) Sentence. | ||||||
24 | Gambling is a Class A misdemeanor. A second or subsequent | ||||||
25 | conviction under subsections (a)(3) through (a)(12), is a | ||||||
26 | Class 4 felony. |
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1 | (d) Circumstantial evidence. | ||||||
2 | In prosecutions under this Section circumstantial evidence | ||||||
3 | shall have the same validity and weight as in any criminal | ||||||
4 | prosecution. | ||||||
5 | (Source: P.A. 101-31, Article 25, Section 25-915, eff. | ||||||
6 | 6-28-19; 101-31, Article 35, Section 35-80, eff. 6-28-19; | ||||||
7 | 101-109, eff. 7-19-19; 102-558, eff. 8-20-21.) | ||||||
8 | (720 ILCS 5/28-3) (from Ch. 38, par. 28-3) | ||||||
9 | Sec. 28-3. Keeping a gambling place. A "gambling place" is | ||||||
10 | any real estate, vehicle, boat, or any other property | ||||||
11 | whatsoever used for the purposes of gambling other than | ||||||
12 | gambling conducted in the manner authorized by the Illinois | ||||||
13 | Gambling Act, the Sports Wagering Act, or the Video Gaming | ||||||
14 | Act , or the Fantasy Sports Consumer Protection Act . Any person | ||||||
15 | who knowingly permits any premises or property owned or | ||||||
16 | occupied by him or under his control to be used as a gambling | ||||||
17 | place commits a Class A misdemeanor. Each subsequent offense | ||||||
18 | is a Class 4 felony. When any premises is determined by the | ||||||
19 | circuit court to be a gambling place: | ||||||
20 | (a) Such premises is a public nuisance and may be | ||||||
21 | proceeded against as such, and | ||||||
22 | (b) All licenses, permits or certificates issued by | ||||||
23 | the State of Illinois or any subdivision or public agency | ||||||
24 | thereof authorizing the serving of food or liquor on such | ||||||
25 | premises shall be void; and no license, permit or |
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1 | certificate so cancelled shall be reissued for such | ||||||
2 | premises for a period of 60 days thereafter; nor shall any | ||||||
3 | person convicted of keeping a gambling place be reissued | ||||||
4 | such license for one year from his conviction and, after a | ||||||
5 | second conviction of keeping a gambling place, any such | ||||||
6 | person shall not be reissued such license, and | ||||||
7 | (c) Such premises of any person who knowingly permits | ||||||
8 | thereon a violation of any Section of this Article shall | ||||||
9 | be held liable for, and may be sold to pay any unsatisfied | ||||||
10 | judgment that may be recovered and any unsatisfied fine | ||||||
11 | that may be levied under any Section of this Article. | ||||||
12 | (Source: P.A. 101-31, Article 25, Section 25-915, eff. | ||||||
13 | 6-28-19; 101-31, Article 35, Section 35-80, eff. 6-28-19; | ||||||
14 | 102-558, eff. 8-20-21.) | ||||||
15 | Article 99. | ||||||
16 | Effective Date | ||||||
17 | Section 999. Effective date. This Act takes effect upon | ||||||
18 | becoming law.". |