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1 | AN ACT concerning gaming.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Video Gaming
Act is amended by changing | |||||||||||||||||||||
5 | Section 35 as follows: | |||||||||||||||||||||
6 | (230 ILCS 40/35)
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7 | Sec. 35. Display of license; confiscation; violation as | |||||||||||||||||||||
8 | felony. | |||||||||||||||||||||
9 | (a) Each
video gaming terminal shall be licensed by the | |||||||||||||||||||||
10 | Board before placement
or operation on the premises of a | |||||||||||||||||||||
11 | licensed establishment, licensed truck stop
establishment, | |||||||||||||||||||||
12 | licensed large truck stop establishment, licensed
fraternal | |||||||||||||||||||||
13 | establishment, or licensed veterans establishment. The license | |||||||||||||||||||||
14 | of
each video gaming terminal shall be maintained
at the | |||||||||||||||||||||
15 | location where the video gaming terminal is operated. Failure | |||||||||||||||||||||
16 | to do so
is a petty offense with a fine
not to exceed $100.
Any | |||||||||||||||||||||
17 | licensed establishment, licensed truck stop establishment, | |||||||||||||||||||||
18 | licensed large truck stop establishment, licensed
fraternal | |||||||||||||||||||||
19 | establishment, or licensed
veterans establishment
used for the | |||||||||||||||||||||
20 | conduct of gambling games in violation of this Act shall be
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21 | considered a gambling place in violation of Section 28-3 of | |||||||||||||||||||||
22 | the Criminal
Code of 2012. Every gambling device found in
a | |||||||||||||||||||||
23 | licensed establishment, licensed truck stop establishment, |
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1 | licensed large truck stop establishment, licensed fraternal
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2 | establishment, or licensed
veterans establishment operating | ||||||
3 | gambling games in violation of this
Act shall be subject to | ||||||
4 | seizure, confiscation, and destruction as provided
in Section | ||||||
5 | 28-5 of the Criminal Code of 2012.
Any license issued under the | ||||||
6 | Liquor Control Act
of 1934 to any owner or operator of a | ||||||
7 | licensed establishment, licensed truck
stop establishment, | ||||||
8 | licensed large truck stop establishment, licensed
fraternal | ||||||
9 | establishment, or licensed veterans establishment that | ||||||
10 | operates or
permits the operation of a video gaming terminal | ||||||
11 | within its establishment in
violation of this Act shall be | ||||||
12 | immediately revoked.
No person may own, operate, have in his | ||||||
13 | or her possession or custody or under
his or her control, or | ||||||
14 | permit to be kept in any place under his or her
possession or | ||||||
15 | control, any
device that awards credits and contains a | ||||||
16 | circuit, meter, or switch capable of
removing and recording | ||||||
17 | the removal of credits when the award of credits is
dependent | ||||||
18 | upon chance. | ||||||
19 | Nothing in this Section shall be deemed to prohibit the | ||||||
20 | use of a game device only if the game device is used in an | ||||||
21 | activity that is not gambling under subsection (b) of Section | ||||||
22 | 28-1 of the Criminal Code of 2012. An applicant or licensee | ||||||
23 | under this Act is not in violation of this Act or its rules and | ||||||
24 | shall not be subject to disciplinary action for operating a | ||||||
25 | game device if operation of the game device is in compliance | ||||||
26 | with and not considered gambling under subsection (b) of |
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1 | Section 28-1 of the Criminal Code of 2012. | ||||||
2 | A violation of this Section is a Class 4 felony. All
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3 | devices that are owned, operated, or possessed in violation of | ||||||
4 | this Section are
hereby declared to be public nuisances and | ||||||
5 | shall be subject to seizure,
confiscation, and destruction as | ||||||
6 | provided in Section 28-5 of the Criminal Code
of 2012.
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7 | The provisions of this Section do not apply to devices or | ||||||
8 | electronic video
game terminals licensed pursuant to this Act. | ||||||
9 | A video gaming terminal operated for amusement only and | ||||||
10 | bearing a valid amusement tax sticker shall not be subject to | ||||||
11 | this Section until 30 days after the Board establishes that | ||||||
12 | the central communications system is functional.
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13 | (b) (1) The odds of winning each video game shall be posted | ||||||
14 | on or near each video gaming terminal. The manner in which the | ||||||
15 | odds are calculated and how they are posted shall be | ||||||
16 | determined by the Board by rule. | ||||||
17 | (2) No video gaming terminal licensed under this Act may | ||||||
18 | be played except during the legal hours of operation allowed | ||||||
19 | for the consumption of alcoholic beverages at the licensed | ||||||
20 | establishment, licensed fraternal establishment, or licensed | ||||||
21 | veterans establishment. A licensed establishment, licensed | ||||||
22 | fraternal establishment, or licensed veterans establishment | ||||||
23 | that violates this subsection is subject to termination of its | ||||||
24 | license by the Board. | ||||||
25 | (Source: P.A. 101-31, eff. 6-28-19.) |
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1 | Section 10. The Sports Wagering Act is amended by changing | ||||||
2 | Section 25-70 as follows: | ||||||
3 | (230 ILCS 45/25-70)
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4 | (Section scheduled to be repealed on January 1, 2024) | ||||||
5 | Sec. 25-70. Lottery sports wagering pilot program. | ||||||
6 | (a) As used in this Section: | ||||||
7 | "Central lottery system" means the hardware, software, | ||||||
8 | peripherals, platform, and network components provided by the | ||||||
9 | Department's central system provider that link and support all | ||||||
10 | required lottery games, programs, and terminals, including, | ||||||
11 | but not limited to, sports wagering games and programs through | ||||||
12 | sports lottery terminals and the central site and that are | ||||||
13 | unique and separate from the lottery central system for draw | ||||||
14 | and instant games . | ||||||
15 | "Central lottery system provider" means an individual, | ||||||
16 | partnership, corporation, or limited liability company that | ||||||
17 | provides the hardware, software, peripherals, platform, risk | ||||||
18 | management, operations, support services, and network | ||||||
19 | components that link and support all required lottery games | ||||||
20 | and lottery terminals, including, but not limited to, sports | ||||||
21 | wagering games and programs through has been licensed for the | ||||||
22 | purpose of providing and maintaining a central system and the | ||||||
23 | related management facilities specifically for the management | ||||||
24 | of sports lottery terminals. | ||||||
25 | "Electronic card" means a card purchased from a lottery |
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1 | retailer. | ||||||
2 | "Lottery game" means any game provided for sale or | ||||||
3 | distribution by the Illinois Lottery, including, but not | ||||||
4 | limited to, sports wagering games and programs through sports | ||||||
5 | lottery terminals. | ||||||
6 | "Lottery retailer" means a location licensed by the | ||||||
7 | Department , or otherwise eligible for a license, to sell | ||||||
8 | lottery tickets or shares , including a licensed retail | ||||||
9 | establishment where alcoholic liquor is drawn, poured, mixed, | ||||||
10 | or otherwise served for consumption on premises, regardless of | ||||||
11 | whether the establishment operates on a nonprofit or | ||||||
12 | for-profit basis, any location or establishment that is | ||||||
13 | licensed to operate video gaming terminals, and any other | ||||||
14 | retail food establishment . | ||||||
15 | "Sports lottery systems" means systems provided by the | ||||||
16 | central lottery system provider consisting of sports wagering | ||||||
17 | products, risk management, operations, and support services. | ||||||
18 | "Sports lottery terminal" means a terminal linked to the | ||||||
19 | central lottery system in which bills or coins are deposited | ||||||
20 | or an electronic card is inserted in order to place wagers on a | ||||||
21 | sports event and lottery offerings and includes sports | ||||||
22 | wagering conducted over the Internet or through mobile | ||||||
23 | applications or other digital platforms . | ||||||
24 | (b) Lottery games are a part of the private management | ||||||
25 | agreement and competitive bidding process provided in Section | ||||||
26 | 9.1 of the Illinois Lottery Law. The central lottery system |
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1 | provider shall pay $10,000,000, payable in equal installments | ||||||
2 | over the course of its contract, to the Department upon being | ||||||
3 | issued the central lottery system provider license authorizing | ||||||
4 | sports wagering games and programs under this Section. The | ||||||
5 | fee, however, shall be deducted from the central lottery | ||||||
6 | system provider's operational costs related to the sports | ||||||
7 | lottery infrastructure up to the pro rata amount paid each | ||||||
8 | year. The Department shall issue one central system provider | ||||||
9 | license pursuant to an open and competitive bidding process | ||||||
10 | that uses the following procedures: | ||||||
11 | (1) The Department shall make applications for the | ||||||
12 | central system provider license available to the public | ||||||
13 | and allow a reasonable time for applicants to submit | ||||||
14 | applications to the Department. | ||||||
15 | (2) During the filing period for central system | ||||||
16 | provider license applications, the Department may retain | ||||||
17 | professional services to assist the Department in | ||||||
18 | conducting the open and competitive bidding process. | ||||||
19 | (3) After receiving all of the bid proposals, the | ||||||
20 | Department shall open all of the proposals in a public | ||||||
21 | forum and disclose the prospective central system provider | ||||||
22 | names and venture partners, if any. | ||||||
23 | (4) The Department shall summarize the terms of the | ||||||
24 | bid proposals and may make this summary available to the | ||||||
25 | public. | ||||||
26 | (5) The Department shall evaluate the bid proposals |
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1 | within a reasonable time and select no more than 3 final | ||||||
2 | applicants to make presentations of their bid proposals to | ||||||
3 | the Department. | ||||||
4 | (6) The final applicants shall make their | ||||||
5 | presentations to the Department on the same day during an | ||||||
6 | open session of the Department. | ||||||
7 | (7) As soon as practicable after the public | ||||||
8 | presentations by the final applicants, the Department, in | ||||||
9 | its discretion, may conduct further negotiations among the | ||||||
10 | 3 final applicants. At the conclusion of such | ||||||
11 | negotiations, the Department shall select the winning bid. | ||||||
12 | (8) Upon selection of the winning bid, the Department | ||||||
13 | shall evaluate the winning bid within a reasonable period | ||||||
14 | of time for licensee suitability in accordance with all | ||||||
15 | applicable statutory and regulatory criteria. | ||||||
16 | (9) If the winning bidder is unable or otherwise fails | ||||||
17 | to consummate the transaction, (including if the | ||||||
18 | Department determines that the winning bidder does not | ||||||
19 | satisfy the suitability requirements), the Department may, | ||||||
20 | on the same criteria, select from the remaining bidders. | ||||||
21 | (10) The winning bidder shall pay $20,000,000 to the | ||||||
22 | Department upon being issued the central system provider | ||||||
23 | license. | ||||||
24 | (c) Every sports lottery terminal offered in this State | ||||||
25 | for play shall first be tested and approved pursuant to the | ||||||
26 | rules of the Department, and each sports lottery terminal |
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1 | offered in this State for play shall conform to an approved | ||||||
2 | model. Sports lottery terminals shall be available for play | ||||||
3 | within 90 days after the effective date of this amendatory Act | ||||||
4 | of the 103rd General Assembly and any system testing dates | ||||||
5 | designated by the Department. For the examination of sports | ||||||
6 | lottery terminals and associated equipment as required by this | ||||||
7 | Section, the central lottery system provider may utilize the | ||||||
8 | services of one or more independent outside testing | ||||||
9 | laboratories that have been accredited by a national | ||||||
10 | accreditation body and that, in the judgment of the | ||||||
11 | Department, are qualified to perform such examinations. Every | ||||||
12 | sports lottery terminal offered in this State for play must | ||||||
13 | meet minimum standards set by an independent outside testing | ||||||
14 | laboratory approved by the Department. | ||||||
15 | (d) Sports During the first 360 days after the effective | ||||||
16 | date of this Act, sport lottery terminals may be placed in any | ||||||
17 | lottery no more than 2,500 Lottery retail location locations | ||||||
18 | in the State. Sports lottery terminals may be placed in an | ||||||
19 | additional 2,500 Lottery retail locations during the second | ||||||
20 | year after the effective date of this Act. | ||||||
21 | (e) A sports lottery terminal may not directly dispense | ||||||
22 | coins, cash, tokens, or any other article of exchange or value | ||||||
23 | except for receipt tickets. Tickets shall be dispensed by | ||||||
24 | pressing the ticket dispensing button on the sports lottery | ||||||
25 | terminal at the end of the placement of one's wager or wagers. | ||||||
26 | The ticket shall indicate the total amount wagered, odds for |
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1 | each wager placed, and the cash award for each bet placed, the | ||||||
2 | time of day in a 24-hour format showing hours and minutes, the | ||||||
3 | date, the terminal serial number, the sequential number of the | ||||||
4 | ticket, and an encrypted validation number from which the | ||||||
5 | validity of the prize may be determined. The player shall turn | ||||||
6 | in this ticket to the appropriate person at a lottery retailer | ||||||
7 | to receive the cash award. | ||||||
8 | (f) No lottery retailer may cause or permit any person | ||||||
9 | under the age of 21 years to use a sports lottery terminal or | ||||||
10 | sports wagering application. A lottery retailer who knowingly | ||||||
11 | causes or permits a person under the age of 21 years to use a | ||||||
12 | sports lottery terminal or sports wagering application is | ||||||
13 | guilty of a business offense and shall be fined an amount not | ||||||
14 | to exceed $5,000. | ||||||
15 | (g) A sports lottery terminal shall only accept any wagers | ||||||
16 | as determined by rule by the Department. parlay wagers and | ||||||
17 | fixed odds parlay wagers. The Department shall, by rule, | ||||||
18 | establish the total amount, as a percentage, of all wagers | ||||||
19 | placed that a lottery retailer may retain. | ||||||
20 | (g-5) The payouts for the lottery sports wagering pilot | ||||||
21 | program shall be as follows: | ||||||
22 | (1) 80% or less of gross dollars played to be | ||||||
23 | distributed as prizes and awards; this amount shall be | ||||||
24 | calculated as an average based on a 2-year anniversary | ||||||
25 | date to be determined by the Department and guaranteed by | ||||||
26 | the central lottery system provider; and |
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1 | (2) the remaining 20% gross gaming revenue, which is | ||||||
2 | gross dollars played minus prizes paid, to be distributed | ||||||
3 | as follows: | ||||||
4 | (A) 8% to the central lottery system provider; and | ||||||
5 | (B) except as provided in subparagraphs (i) and | ||||||
6 | (ii), 12% to the State, of which the local | ||||||
7 | municipality shall receive .5% if the State is | ||||||
8 | responsible for the retailer commissions and payment | ||||||
9 | of the sports lottery terminal; | ||||||
10 | (i) if a terminal operator under the Video | ||||||
11 | Gaming Act purchases and distributes the sports | ||||||
12 | lottery terminal, then 4% to the State, 3% to the | ||||||
13 | lottery retailer, 4.5% to the terminal operator, | ||||||
14 | and .5% to the local municipality; or | ||||||
15 | (ii) if a Lottery retail location purchases | ||||||
16 | the sports lottery terminal, then 7.5% goes to the | ||||||
17 | Lottery retail location and 4% to the State, of | ||||||
18 | which the local municipality shall receive .5%. | ||||||
19 | (h) The Department shall have jurisdiction over and shall | ||||||
20 | supervise all lottery sports wagering operations governed by | ||||||
21 | this Section. The Department shall implement and administer | ||||||
22 | the lottery sports wagering pilot program no later than June | ||||||
23 | 30, 2024. The Department shall have all powers necessary and | ||||||
24 | proper to fully and effectively execute the provisions of this | ||||||
25 | Section, including, but not limited to, the following: | ||||||
26 | (1) To investigate applicants and determine the |
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1 | eligibility of applicants for licenses with a goal of | ||||||
2 | advancing minority business opportunities, including | ||||||
3 | lottery retailer ownership of sports lottery terminals and | ||||||
4 | to select among competing applicants the applicants which | ||||||
5 | best serve the interests of the citizens of Illinois . | ||||||
6 | (2) To have jurisdiction and supervision over all | ||||||
7 | lottery sports wagering operations in this State. | ||||||
8 | (3) To adopt rules for the purpose of administering | ||||||
9 | the provisions of this Section and to adopt rules and | ||||||
10 | conditions under which all lottery sports wagering in the | ||||||
11 | State shall be conducted. Such rules are to provide for | ||||||
12 | the prevention of practices detrimental to the public | ||||||
13 | interest and for the best interests of lottery sports | ||||||
14 | wagering, including rules (i) regarding the inspection of | ||||||
15 | such licensees necessary to operate a lottery retailer | ||||||
16 | under any laws or rules applicable to licensees, (ii) to | ||||||
17 | impose penalties for violations of the Act and its rules, | ||||||
18 | and (iii) establishing standards for advertising lottery | ||||||
19 | sports wagering , (iv) to effectuate policies that advance | ||||||
20 | minority business ownership and participation in the | ||||||
21 | sports lottery program, and (v) regarding apportionment of | ||||||
22 | the total revenues accruing from the lottery sports | ||||||
23 | wagering pilot program for the purchase or lease of the | ||||||
24 | hardware . | ||||||
25 | (i) The Department shall adopt emergency rules to | ||||||
26 | administer this Section in accordance with Section 5-45 of the |
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1 | Illinois Administrative Procedure Act. For the purposes of the | ||||||
2 | Illinois Administrative Procedure Act, the General Assembly | ||||||
3 | finds that the adoption of rules to implement this Section is | ||||||
4 | deemed an emergency and necessary to the public interest, | ||||||
5 | safety, and welfare. | ||||||
6 | (j) For the privilege of operating lottery sports wagering | ||||||
7 | under this Section, all proceeds minus net of proceeds | ||||||
8 | returned to players shall be electronically transferred daily | ||||||
9 | or weekly, at the discretion of the Director of the Lottery, | ||||||
10 | into the State Lottery Fund. After amounts owed to the central | ||||||
11 | system provider and licensed agents, as determined by the | ||||||
12 | Department, are paid from the moneys deposited into the State | ||||||
13 | Lottery Fund under this subsection, the remainder shall be | ||||||
14 | transferred on the 15th of each month to the Capital Projects | ||||||
15 | Fund. | ||||||
16 | (j-5) The Department shall be responsible for facilitating | ||||||
17 | either the purchase or lease of all sports lottery terminals, | ||||||
18 | including providing opportunities for minority business | ||||||
19 | lottery retailers to obtain suitable financing. The Department | ||||||
20 | shall allow for any terminal operator under the Video Gaming | ||||||
21 | Act and Lottery retail location to purchase or lease the | ||||||
22 | sports lottery terminals. | ||||||
23 | (k) This Section is repealed on January 1, 2032 2024 .
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24 | (Source: P.A. 101-31, eff. 6-28-19.)
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25 | Section 99. Effective date. This Act takes effect upon | ||||||
26 | becoming law.
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