Full Text of HB0394 103rd General Assembly
HB0394ham002 103RD GENERAL ASSEMBLY | Rep. Eva-Dina Delgado Filed: 5/22/2024 | | 10300HB0394ham002 | | LRB103 03961 LNS 73961 a |
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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.". |
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