Full Text of HB4323 99th General Assembly
HB4323 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 HB4323 Introduced , by Rep. Michael J. Zalewski SYNOPSIS AS INTRODUCED: |
| New Act | |
720 ILCS 5/28-1 | from Ch. 38, par. 28-1 |
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Creates the Fantasy Contests Act. Establishes certain requirements for policies and procedures for the operation of fantasy contests. Provides that any person, firm, corporation, association, agent, or employee who violates any provision of the Act shall be liable for a civil penalty of not more than $1,000 for each violation, which may be recovered in a civil action brought by the Attorney General. Amends the Gambling Article of the Criminal Code of 2012. Provides that participants in fantasy contests as defined under the Fantasy Contests Act shall not be convicted of gambling. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning fantasy contests.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 1. Short title. This Act may be cited as the | 5 | | Fantasy Contests Act. | 6 | | Section 5. Definitions. As used in this Act: | 7 | | "Confidential information" means information related to | 8 | | the play of a fantasy contest by fantasy contest players | 9 | | obtained as a result of or by virtue of a person's employment. | 10 | | "Fantasy contest" means any fantasy or simulated game or | 11 | | contest in which: | 12 | | (1) winning participants are eligible to receive cash | 13 | | or anything else of value; | 14 | | (2) the value of all prizes and awards offered to | 15 | | winning participants are established and made known to the | 16 | | participants in advance of the contest; | 17 | | (3) all winning outcomes reflect the relative | 18 | | knowledge and skill of the participants and shall be | 19 | | determined predominantly by accumulated statistical | 20 | | results of the performance of individuals, including | 21 | | athletes in the case of sports events; and | 22 | | (4) no winning outcome is based on the score, point | 23 | | spread, or any performance or performances of any single |
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| 1 | | actual team or combination of such teams or solely on any | 2 | | single performance of an individual athlete or player in | 3 | | any single actual event. | 4 | | "Fantasy contest operator" means a person or entity that | 5 | | offers a fantasy contest for a cash or cash equivalent prize to | 6 | | members of the public. | 7 | | "Fantasy contest player" means a person who participates in | 8 | | a fantasy contest offered by a fantasy contest operator. | 9 | | Section 10. Policies and procedures. A fantasy contest | 10 | | operator offering fantasy contests in this State shall | 11 | | implement policies and procedures that are intended to: | 12 | | (1) prevent employees of the fantasy contest operator | 13 | | from competing in any fantasy contest offered by a fantasy | 14 | | contest operator; | 15 | | (2) prevent sharing of confidential information that | 16 | | could affect fantasy contest play with third parties until | 17 | | the information is made publicly available; | 18 | | (3) have a mechanism in place that is designed to | 19 | | verify that a fantasy contest player is 18 years of age or | 20 | | older; | 21 | | (4) ensure that individuals who participate in a game | 22 | | or contest that is the subject of a fantasy contest are | 23 | | restricted from entering a fantasy contest that is | 24 | | determined, in whole or in part, on the accumulated | 25 | | statistical results of a team of individuals in the game or |
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| 1 | | contest in which they are a player; | 2 | | (5) allow individuals to restrict themselves from | 3 | | entering a fantasy contest upon request and take reasonable | 4 | | steps to prevent those individuals from entering the | 5 | | operator's fantasy contests; | 6 | | (6) post the number of entries a single fantasy contest | 7 | | player may submit to each fantasy contest and take | 8 | | reasonable steps to prevent players from submitting more | 9 | | than the allowable number; | 10 | | (7) check for tax liens and child support obligations | 11 | | of greater than $10,000 prior to paying a cash prize to a | 12 | | fantasy contest player of greater than $5,000; | 13 | | (8) segregate player funds from operational funds and | 14 | | maintain a reserve in the form of cash, cash equivalents, | 15 | | an irrevocable letter of credit, or a bond, or a | 16 | | combination of any of these types, in the amount of the | 17 | | deposits in player accounts for the benefit and protection | 18 | | of authorized fantasy contest players' funds held in | 19 | | fantasy contest accounts; | 20 | | (9) annually contract with a third party to perform an | 21 | | independent audit, consistent with the standards | 22 | | established by the Public Company Accounting Oversight | 23 | | Board, to ensure compliance with all of the requirements in | 24 | | this Act; and | 25 | | (10) submit the results of the independent audit to the | 26 | | Office of the Attorney General. |
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| 1 | | Section 15. Penalties. Any person, firm, corporation, | 2 | | association, agent, or employee who violates any provision of | 3 | | this Act shall be liable for a civil penalty of not more than | 4 | | $1,000 for each such violation, which shall accrue to the State | 5 | | and may be recovered in a civil action brought by the Attorney | 6 | | General. | 7 | | Section 90. The Criminal Code of 2012 is amended by | 8 | | changing Section 28-1 as follows:
| 9 | | (720 ILCS 5/28-1) (from Ch. 38, par. 28-1)
| 10 | | (Text of Section before amendment by P.A. 99-149 )
| 11 | | Sec. 28-1. Gambling.
| 12 | | (a) A person commits gambling when he or she:
| 13 | | (1) knowingly plays a game of chance or skill for money | 14 | | or other thing of
value, unless excepted in subsection (b) | 15 | | of this Section;
| 16 | | (2) knowingly makes a wager upon the result of any | 17 | | game, contest, or any
political nomination, appointment or | 18 | | election;
| 19 | | (3) knowingly operates, keeps, owns, uses, purchases, | 20 | | exhibits, rents, sells,
bargains for the sale or lease of, | 21 | | manufactures or distributes any
gambling device;
| 22 | | (4) contracts to have or give himself or herself or | 23 | | another the option to buy
or sell, or contracts to buy or |
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| 1 | | sell, at a future time, any grain or
other commodity | 2 | | whatsoever, or any stock or security of any company,
where | 3 | | it is at the time of making such contract intended by both | 4 | | parties
thereto that the contract to buy or sell, or the | 5 | | option, whenever
exercised, or the contract resulting | 6 | | therefrom, shall be settled, not by
the receipt or delivery | 7 | | of such property, but by the payment only of
differences in | 8 | | prices thereof; however, the issuance, purchase, sale,
| 9 | | exercise, endorsement or guarantee, by or through a person | 10 | | registered
with the Secretary of State pursuant to Section | 11 | | 8 of the Illinois
Securities Law of 1953, or by or through | 12 | | a person exempt from such
registration under said Section | 13 | | 8, of a put, call, or other option to
buy or sell | 14 | | securities which have been registered with the Secretary of
| 15 | | State or which are exempt from such registration under | 16 | | Section 3 of the
Illinois Securities Law of 1953 is not | 17 | | gambling within the meaning of
this paragraph (4);
| 18 | | (5) knowingly owns or possesses any book, instrument or | 19 | | apparatus by
means of which bets or wagers have been, or | 20 | | are, recorded or registered,
or knowingly possesses any | 21 | | money which he has received in the course of
a bet or | 22 | | wager;
| 23 | | (6) knowingly sells pools upon the result of any game | 24 | | or contest of skill or
chance, political nomination, | 25 | | appointment or election;
| 26 | | (7) knowingly sets up or promotes any lottery or sells, |
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| 1 | | offers to sell or
transfers any ticket or share for any | 2 | | lottery;
| 3 | | (8) knowingly sets up or promotes any policy game or | 4 | | sells, offers to sell or
knowingly possesses or transfers | 5 | | any policy ticket, slip, record,
document or other similar | 6 | | device;
| 7 | | (9) knowingly drafts, prints or publishes any lottery | 8 | | ticket or share,
or any policy ticket, slip, record, | 9 | | document or similar device, except for
such activity | 10 | | related to lotteries, bingo games and raffles authorized by
| 11 | | and conducted in accordance with the laws of Illinois or | 12 | | any other state or
foreign government;
| 13 | | (10) knowingly advertises any lottery or policy game, | 14 | | except for such
activity related to lotteries, bingo games | 15 | | and raffles authorized by and
conducted in accordance with | 16 | | the laws of Illinois or any other state;
| 17 | | (11) knowingly transmits information as to wagers, | 18 | | betting odds, or
changes in betting odds by telephone, | 19 | | telegraph, radio, semaphore or
similar means; or knowingly | 20 | | installs or maintains equipment for the
transmission or | 21 | | receipt of such information; except that nothing in this
| 22 | | subdivision (11) prohibits transmission or receipt of such | 23 | | information
for use in news reporting of sporting events or | 24 | | contests; or
| 25 | | (12) knowingly establishes, maintains, or operates an | 26 | | Internet site that
permits a person to play a game of
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| 1 | | chance or skill for money or other thing of value by means | 2 | | of the Internet or
to make a wager upon the
result of any | 3 | | game, contest, political nomination, appointment, or
| 4 | | election by means of the Internet. This item (12) does not | 5 | | apply to activities referenced in items (6) and (6.1) of | 6 | | subsection (b) of this Section.
| 7 | | (b) Participants in any of the following activities shall | 8 | | not be
convicted of gambling:
| 9 | | (1) Agreements to compensate for loss caused by the | 10 | | happening of
chance including without limitation contracts | 11 | | of indemnity or guaranty
and life or health or accident | 12 | | insurance.
| 13 | | (2) Offers of prizes, award or compensation to the | 14 | | actual
contestants in any bona fide contest for the | 15 | | determination of skill,
speed, strength or endurance or to | 16 | | the owners of animals or vehicles
entered in such contest.
| 17 | | (3) Pari-mutuel betting as authorized by the law of | 18 | | this State.
| 19 | | (4) Manufacture of gambling devices, including the | 20 | | acquisition of
essential parts therefor and the assembly | 21 | | thereof, for transportation in
interstate or foreign | 22 | | commerce to any place outside this State when such
| 23 | | transportation is not prohibited by any applicable Federal | 24 | | law; or the
manufacture, distribution, or possession of | 25 | | video gaming terminals, as
defined in the Video Gaming Act, | 26 | | by manufacturers, distributors, and
terminal operators |
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| 1 | | licensed to do so under the Video Gaming Act.
| 2 | | (5) The game commonly known as "bingo", when conducted | 3 | | in accordance
with the Bingo License and Tax Act.
| 4 | | (6) Lotteries when conducted by the State of Illinois | 5 | | in accordance
with the Illinois Lottery Law. This exemption | 6 | | includes any activity conducted by the Department of | 7 | | Revenue to sell lottery tickets pursuant to the provisions | 8 | | of the Illinois Lottery Law and its rules.
| 9 | | (6.1) The purchase of lottery tickets through the | 10 | | Internet for a lottery conducted by the State of Illinois | 11 | | under the program established in Section 7.12 of the | 12 | | Illinois Lottery Law.
| 13 | | (7) Possession of an antique slot machine that is | 14 | | neither used nor
intended to be used in the operation or | 15 | | promotion of any unlawful
gambling activity or enterprise. | 16 | | For the purpose of this subparagraph
(b)(7), an antique | 17 | | slot machine is one manufactured 25 years ago or earlier.
| 18 | | (8) Raffles and poker runs when conducted in accordance | 19 | | with the Raffles and Poker Runs Act.
| 20 | | (9) Charitable games when conducted in accordance with | 21 | | the Charitable
Games Act.
| 22 | | (10) Pull tabs and jar games when conducted under the | 23 | | Illinois Pull
Tabs and Jar Games Act.
| 24 | | (11) Gambling games conducted on riverboats when
| 25 | | authorized by the Riverboat Gambling Act.
| 26 | | (12) Video gaming terminal games at a licensed |
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| 1 | | establishment, licensed truck stop establishment,
licensed
| 2 | | fraternal establishment, or licensed veterans | 3 | | establishment when
conducted in accordance with the Video | 4 | | Gaming Act. | 5 | | (13) Games of skill or chance where money or other | 6 | | things of value can be won but no payment or purchase is | 7 | | required to participate. | 8 | | (15) Fantasy contests as defined under the Fantasy | 9 | | Contests Act. | 10 | | (c) Sentence.
| 11 | | Gambling is a
Class A misdemeanor. A second or
subsequent | 12 | | conviction under subsections (a)(3) through (a)(12),
is a Class | 13 | | 4 felony.
| 14 | | (d) Circumstantial evidence.
| 15 | | In prosecutions under
this
Section circumstantial evidence | 16 | | shall have the same validity and weight as
in any criminal | 17 | | prosecution.
| 18 | | (Source: P.A. 97-1108, eff. 1-1-13; 98-644, eff. 6-10-14.)
| 19 | | (Text of Section after amendment by P.A. 99-149 )
| 20 | | Sec. 28-1. Gambling.
| 21 | | (a) A person commits gambling when he or she:
| 22 | | (1) knowingly plays a game of chance or skill for money | 23 | | or other thing of
value, unless excepted in subsection (b) | 24 | | of this Section;
| 25 | | (2) knowingly makes a wager upon the result of any |
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| 1 | | game, contest, or any
political nomination, appointment or | 2 | | election;
| 3 | | (3) knowingly operates, keeps, owns, uses, purchases, | 4 | | exhibits, rents, sells,
bargains for the sale or lease of, | 5 | | manufactures or distributes any
gambling device;
| 6 | | (4) contracts to have or give himself or herself or | 7 | | another the option to buy
or sell, or contracts to buy or | 8 | | sell, at a future time, any grain or
other commodity | 9 | | whatsoever, or any stock or security of any company,
where | 10 | | it is at the time of making such contract intended by both | 11 | | parties
thereto that the contract to buy or sell, or the | 12 | | option, whenever
exercised, or the contract resulting | 13 | | therefrom, shall be settled, not by
the receipt or delivery | 14 | | of such property, but by the payment only of
differences in | 15 | | prices thereof; however, the issuance, purchase, sale,
| 16 | | exercise, endorsement or guarantee, by or through a person | 17 | | registered
with the Secretary of State pursuant to Section | 18 | | 8 of the Illinois
Securities Law of 1953, or by or through | 19 | | a person exempt from such
registration under said Section | 20 | | 8, of a put, call, or other option to
buy or sell | 21 | | securities which have been registered with the Secretary of
| 22 | | State or which are exempt from such registration under | 23 | | Section 3 of the
Illinois Securities Law of 1953 is not | 24 | | gambling within the meaning of
this paragraph (4);
| 25 | | (5) knowingly owns or possesses any book, instrument or | 26 | | apparatus by
means of which bets or wagers have been, or |
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| 1 | | are, recorded or registered,
or knowingly possesses any | 2 | | money which he has received in the course of
a bet or | 3 | | wager;
| 4 | | (6) knowingly sells pools upon the result of any game | 5 | | or contest of skill or
chance, political nomination, | 6 | | appointment or election;
| 7 | | (7) knowingly sets up or promotes any lottery or sells, | 8 | | offers to sell or
transfers any ticket or share for any | 9 | | lottery;
| 10 | | (8) knowingly sets up or promotes any policy game or | 11 | | sells, offers to sell or
knowingly possesses or transfers | 12 | | any policy ticket, slip, record,
document or other similar | 13 | | device;
| 14 | | (9) knowingly drafts, prints or publishes any lottery | 15 | | ticket or share,
or any policy ticket, slip, record, | 16 | | document or similar device, except for
such activity | 17 | | related to lotteries, bingo games and raffles authorized by
| 18 | | and conducted in accordance with the laws of Illinois or | 19 | | any other state or
foreign government;
| 20 | | (10) knowingly advertises any lottery or policy game, | 21 | | except for such
activity related to lotteries, bingo games | 22 | | and raffles authorized by and
conducted in accordance with | 23 | | the laws of Illinois or any other state;
| 24 | | (11) knowingly transmits information as to wagers, | 25 | | betting odds, or
changes in betting odds by telephone, | 26 | | telegraph, radio, semaphore or
similar means; or knowingly |
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| 1 | | installs or maintains equipment for the
transmission or | 2 | | receipt of such information; except that nothing in this
| 3 | | subdivision (11) prohibits transmission or receipt of such | 4 | | information
for use in news reporting of sporting events or | 5 | | contests; or
| 6 | | (12) knowingly establishes, maintains, or operates an | 7 | | Internet site that
permits a person to play a game of
| 8 | | chance or skill for money or other thing of value by means | 9 | | of the Internet or
to make a wager upon the
result of any | 10 | | game, contest, political nomination, appointment, or
| 11 | | election by means of the Internet. This item (12) does not | 12 | | apply to activities referenced in items (6) and (6.1) of | 13 | | subsection (b) of this Section.
| 14 | | (b) Participants in any of the following activities shall | 15 | | not be
convicted of gambling:
| 16 | | (1) Agreements to compensate for loss caused by the | 17 | | happening of
chance including without limitation contracts | 18 | | of indemnity or guaranty
and life or health or accident | 19 | | insurance.
| 20 | | (2) Offers of prizes, award or compensation to the | 21 | | actual
contestants in any bona fide contest for the | 22 | | determination of skill,
speed, strength or endurance or to | 23 | | the owners of animals or vehicles
entered in such contest.
| 24 | | (3) Pari-mutuel betting as authorized by the law of | 25 | | this State.
| 26 | | (4) Manufacture of gambling devices, including the |
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| 1 | | acquisition of
essential parts therefor and the assembly | 2 | | thereof, for transportation in
interstate or foreign | 3 | | commerce to any place outside this State when such
| 4 | | transportation is not prohibited by any applicable Federal | 5 | | law; or the
manufacture, distribution, or possession of | 6 | | video gaming terminals, as
defined in the Video Gaming Act, | 7 | | by manufacturers, distributors, and
terminal operators | 8 | | licensed to do so under the Video Gaming Act.
| 9 | | (5) The game commonly known as "bingo", when conducted | 10 | | in accordance
with the Bingo License and Tax Act.
| 11 | | (6) Lotteries when conducted by the State of Illinois | 12 | | in accordance
with the Illinois Lottery Law. This exemption | 13 | | includes any activity conducted by the Department of | 14 | | Revenue to sell lottery tickets pursuant to the provisions | 15 | | of the Illinois Lottery Law and its rules.
| 16 | | (6.1) The purchase of lottery tickets through the | 17 | | Internet for a lottery conducted by the State of Illinois | 18 | | under the program established in Section 7.12 of the | 19 | | Illinois Lottery Law.
| 20 | | (7) Possession of an antique slot machine that is | 21 | | neither used nor
intended to be used in the operation or | 22 | | promotion of any unlawful
gambling activity or enterprise. | 23 | | For the purpose of this subparagraph
(b)(7), an antique | 24 | | slot machine is one manufactured 25 years ago or earlier.
| 25 | | (8) Raffles and poker runs when conducted in accordance | 26 | | with the Raffles and Poker Runs Act.
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| 1 | | (9) Charitable games when conducted in accordance with | 2 | | the Charitable
Games Act.
| 3 | | (10) Pull tabs and jar games when conducted under the | 4 | | Illinois Pull
Tabs and Jar Games Act.
| 5 | | (11) Gambling games conducted on riverboats when
| 6 | | authorized by the Riverboat Gambling Act.
| 7 | | (12) Video gaming terminal games at a licensed | 8 | | establishment, licensed truck stop establishment,
licensed
| 9 | | fraternal establishment, or licensed veterans | 10 | | establishment when
conducted in accordance with the Video | 11 | | Gaming Act. | 12 | | (13) Games of skill or chance where money or other | 13 | | things of value can be won but no payment or purchase is | 14 | | required to participate. | 15 | | (14) Savings promotion raffles authorized under | 16 | | Section 5g of the Illinois Banking Act, Section 7008 of the | 17 | | Savings Bank Act, Section 42.7 of the Illinois Credit Union | 18 | | Act, Section 5136B of the National Bank Act (12 U.S.C. | 19 | | 25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C. | 20 | | 1463). | 21 | | (15) Fantasy contests as defined under the Fantasy | 22 | | Contests 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 Class | 26 | | 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. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)
| 6 | | Section 95. No acceleration or delay. Where this Act makes | 7 | | changes in a statute that is represented in this Act by text | 8 | | that is not yet or no longer in effect (for example, a Section | 9 | | represented by multiple versions), the use of that text does | 10 | | not accelerate or delay the taking effect of (i) the changes | 11 | | made by this Act or (ii) provisions derived from any other | 12 | | Public Act.
| 13 | | Section 99. Effective date. This Act takes effect upon | 14 | | becoming law.
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