Bill Amendment: IL HB0479 | 2017-2018 | 100th General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: ILLINOIS STATE SEAL
Status: 2019-01-08 - Session Sine Die [HB0479 Detail]
Download: Illinois-2017-HB0479-Senate_Amendment_001.html
Bill Title: ILLINOIS STATE SEAL
Status: 2019-01-08 - Session Sine Die [HB0479 Detail]
Download: Illinois-2017-HB0479-Senate_Amendment_001.html
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1 | AMENDMENT TO HOUSE BILL 479
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2 | AMENDMENT NO. ______. Amend House Bill 479 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Article 1. Fantasy Sports Contest Act | ||||||
5 | Section 1-1. Short title. This Article may be cited as the | ||||||
6 | Fantasy Sports Contest Act. References in
this Article to "this | ||||||
7 | Act" mean this Article.
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8 | Section 1-5. Legislative intent. | ||||||
9 | (a) The General Assembly hereby finds and declares that: | ||||||
10 | (1) Interactive fantasy sports contests are contests | ||||||
11 | of skill in which fantasy or simulation teams are selected | ||||||
12 | based upon the skill and knowledge of the participants and | ||||||
13 | not based solely on the membership of an actual team. | ||||||
14 | (2) Interactive fantasy sports contests are not wagers | ||||||
15 | on future contingent events not under the contestants' |
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1 | control or influence because contestants have control over | ||||||
2 | which players they choose and the outcome of each contest | ||||||
3 | is not dependent upon the performance of any one player or | ||||||
4 | any one actual team. The outcome of any interactive fantasy | ||||||
5 | sports contest does not correspond to the outcome of any | ||||||
6 | one real-life competitive event. Instead, the outcome | ||||||
7 | depends on how the performances of participants' fantasy | ||||||
8 | roster choices compared to the performance of others' | ||||||
9 | roster choices. | ||||||
10 | (b) Based on the findings in this Section, the General | ||||||
11 | Assembly declares that interactive fantasy sports contests do | ||||||
12 | not constitute gambling as defined in Section 28-1 of the | ||||||
13 | Criminal Code of 2012. | ||||||
14 | (c) The General Assembly further finds that as the Internet | ||||||
15 | has become an integral part of society, and interactive fantasy | ||||||
16 | sports contests a major form of entertainment for many | ||||||
17 | consumers, any interactive fantasy sports enforcement and | ||||||
18 | regulatory structure must begin from the bedrock premise that | ||||||
19 | participation in a lawful and licensed interactive fantasy | ||||||
20 | sports industry is a privilege and not a right, and that | ||||||
21 | regulatory oversight is intended to safeguard the integrity of | ||||||
22 | the games and participants and to ensure accountability and the | ||||||
23 | public trust.
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24 | Section 1-10. Definitions. As used in this Act: | ||||||
25 | "Authorized player" means an individual located in this |
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1 | State that participates in an interactive fantasy sports | ||||||
2 | contest offered by an interactive fantasy sports operator.
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3 | "Beginner fantasy sports player" means an individual who is | ||||||
4 | at least 21 years of age and who has entered fewer than 51 | ||||||
5 | interactive fantasy sports contests offered by a single | ||||||
6 | interactive fantasy sports operator. | ||||||
7 | "Board" means the Illinois Gaming Board.
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8 | "Collegiate sport or athletic event" means a sport or | ||||||
9 | athletic event offered or sponsored by or played in connection | ||||||
10 | with a public or private institution that offers education | ||||||
11 | services beyond the secondary level. | ||||||
12 | "Entry fee" means cash or cash equivalent that is paid by | ||||||
13 | an authorized player to an interactive fantasy sports operator | ||||||
14 | to participate in an interactive fantasy sports contest offered | ||||||
15 | by that interactive fantasy sports operator. | ||||||
16 | "High school sport or athletic event" means a sport or | ||||||
17 | athletic event offered or sponsored by or played in connection | ||||||
18 | with a public or private institution that offers education | ||||||
19 | services at the secondary level. | ||||||
20 | "Highly experienced player" means an authorized player who | ||||||
21 | has: | ||||||
22 | (1) entered more than 1,000 interactive fantasy sports | ||||||
23 | contests offered by a single interactive fantasy sports | ||||||
24 | operator; or | ||||||
25 | (2) won more than 3 prizes valued at $1,000 each or | ||||||
26 | more from a single interactive fantasy sports operator. |
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1 | "Interactive fantasy sports contest" means a fantasy | ||||||
2 | contest, in which: | ||||||
3 | (1) the value of all prizes and awards offered to | ||||||
4 | winning participants are established and made known to the | ||||||
5 | participants in advance of the contest and their value is | ||||||
6 | not determined by the number of participants or the amount | ||||||
7 | of any fees paid by those participants; | ||||||
8 | (2) all winning outcomes are determined predominantly | ||||||
9 | by accumulated statistical results of the performance of | ||||||
10 | individual athletes in real-world professional athletic | ||||||
11 | competitions; a professional athletic competition does not | ||||||
12 | include any amateur or collegiate level sport; and | ||||||
13 | (3) no winning outcome is based on the score, point | ||||||
14 | spread, or any performance or performances of any single | ||||||
15 | actual team or combination of such teams or solely on any | ||||||
16 | single performance of an individual athlete or player in | ||||||
17 | any single actual event. | ||||||
18 | "Interactive fantasy sports gross revenue" means the | ||||||
19 | amount equal to the total of all entry fees that an interactive | ||||||
20 | fantasy sports operator collects from all players, multiplied | ||||||
21 | by the location percentage for the State. | ||||||
22 | "Interactive fantasy sports operator" means a person or | ||||||
23 | entity that engages in the business of offering, by means of | ||||||
24 | the Internet, a smart phone application, or other similar | ||||||
25 | electronic or digital media or communication technologies, | ||||||
26 | multiple interactive fantasy sports contests to persons. |
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1 | "Interactive fantasy sports platform" means any website, | ||||||
2 | smart phone application, or other portal providing access to an | ||||||
3 | interactive fantasy sports contest. | ||||||
4 | "Location percentage" means, for each interactive fantasy | ||||||
5 | sports contest, the percentage, rounded to the nearest tenth of | ||||||
6 | a percent, of the total entry fees collected by an interactive | ||||||
7 | fantasy sports operator from players located in this State, | ||||||
8 | divided by the total entry fees collected by an interactive | ||||||
9 | fantasy sports operator from all players in interactive fantasy | ||||||
10 | sports contests. | ||||||
11 | "Minor" means a person under the age of 21 years. | ||||||
12 | "Permitted sports event" means a professional sport or | ||||||
13 | athletic event or other competitive event. "Permitted sports | ||||||
14 | event" does not include a prohibited sports event. | ||||||
15 | "Prohibited sports event" means an amateur sport or | ||||||
16 | athletic event, a collegiate sport or athletic event, or a high | ||||||
17 | school sport or athletic event.
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18 | Section 1-15. Applicability. This Act and all rules adopted | ||||||
19 | under the authority of this Act shall apply only to interactive | ||||||
20 | fantasy sports contests for which an authorized player pays an | ||||||
21 | entry fee.
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22 | Section 1-20. Licensing. | ||||||
23 | (a) No interactive fantasy sports operator shall | ||||||
24 | administer, manage, or otherwise make available an interactive |
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1 | fantasy sports platform to persons located in the State unless | ||||||
2 | licensed by the Board under this Act. | ||||||
3 | (b) A qualified person may apply to the Board for an | ||||||
4 | interactive fantasy sports operator license to conduct | ||||||
5 | interactive fantasy sports contests as provided in this Act. | ||||||
6 | The application shall be made on forms provided by the Board. | ||||||
7 | The burden is upon each applicant to demonstrate suitability | ||||||
8 | for licensure. Each interactive fantasy sports operator shall | ||||||
9 | be licensed by the Board. The Board may issue a license for a | ||||||
10 | period of up to 2 years or, in the case of interactive fantasy | ||||||
11 | sports operators with annual interactive fantasy sports gross | ||||||
12 | revenues less than $100,000, for up to 3 years. | ||||||
13 | (c) Each person seeking and possessing a license as an | ||||||
14 | interactive fantasy sports operator shall submit to a | ||||||
15 | background investigation conducted by the Board with the | ||||||
16 | assistance of the State Police or other law enforcement. To the | ||||||
17 | extent that the corporate structure of the applicant allows, | ||||||
18 | the background investigation shall include any or all of the | ||||||
19 | following as the Board deems appropriate or as provided by | ||||||
20 | rule: (i) each beneficiary of a trust, (ii) each partner of a | ||||||
21 | partnership, (iii) each member of a limited liability company, | ||||||
22 | (iv) each director and officer of a publicly or non-publicly | ||||||
23 | held corporation, (v) each stockholder of a non-publicly held | ||||||
24 | corporation, (vi) each stockholder of 5% or more of a publicly | ||||||
25 | held corporation, or (vii) each stockholder of 5% or more in a | ||||||
26 | parent or subsidiary corporation. |
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1 | (d) Each person seeking and possessing a license as an | ||||||
2 | interactive fantasy sports operator shall disclose the | ||||||
3 | identity of every person, association, trust, corporation, or | ||||||
4 | limited liability company having a greater than 1% direct or | ||||||
5 | indirect pecuniary interest in the interactive fantasy sports | ||||||
6 | operator for which the license is sought. If the disclosed | ||||||
7 | entity is a trust, the application shall disclose the names and | ||||||
8 | addresses of the beneficiaries; if a corporation, the names and | ||||||
9 | addresses of all stockholders and directors; if a limited | ||||||
10 | liability company, the names and addresses of all members; or | ||||||
11 | if a partnership, the names and addresses of all partners, both | ||||||
12 | general and limited. | ||||||
13 | (e) All information, records, interviews, reports, | ||||||
14 | statements, memoranda, or other data supplied to or used by the | ||||||
15 | Board in the course of its review or investigation of an | ||||||
16 | application for a license or a renewal under this Act shall be | ||||||
17 | privileged and strictly confidential and shall be used only for | ||||||
18 | the purpose of evaluating an applicant for a license or a | ||||||
19 | renewal. The information, records, interviews, reports, | ||||||
20 | statements, memoranda, or other data shall not be admissible as | ||||||
21 | evidence nor discoverable in any action of any kind in any | ||||||
22 | court or before any tribunal, board, agency, or person, except | ||||||
23 | for any action deemed necessary by the Board. | ||||||
24 | (f) No person may be licensed as an interactive fantasy | ||||||
25 | sports operator if that person has been found by the Board to: | ||||||
26 | (1) have a background, including a criminal record, |
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1 | reputation, habits, social or business associations, or | ||||||
2 | prior activities, that poses a threat to the public | ||||||
3 | interests of the State or to the security and integrity of | ||||||
4 | interactive fantasy sports contests; | ||||||
5 | (2) create or enhance the dangers of unsuitable, | ||||||
6 | unfair, or illegal practices, methods, and activities in | ||||||
7 | the conduct of interactive fantasy sports contests; or | ||||||
8 | (3) present questionable business practices and | ||||||
9 | financial arrangements incidental to the conduct of | ||||||
10 | interactive fantasy sports contests. | ||||||
11 | (g) Any applicant for a license under this Act has the | ||||||
12 | burden of proving his or her qualifications to the satisfaction | ||||||
13 | of the Board. The Board may adopt rules to establish additional | ||||||
14 | qualifications and requirements to preserve the integrity and | ||||||
15 | security of interactive fantasy sports contests in this State. | ||||||
16 | (h) An interactive fantasy sports operator that has been | ||||||
17 | operating in Illinois for at least 6 months on December 23, | ||||||
18 | 2015 may operate in Illinois until a final decision is rendered | ||||||
19 | on the application for an interactive fantasy sports operator | ||||||
20 | license. | ||||||
21 | (i) The Board, by rule, shall establish a process for | ||||||
22 | license renewal. | ||||||
23 | (j) The Board shall publish a list of all interactive | ||||||
24 | fantasy sports operators licensed in this State under this | ||||||
25 | Section on the Board's website for public use.
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1 | Section 1-25. Operators; required safeguards; minimum | ||||||
2 | standards. | ||||||
3 | (a) As a condition of licensure in this State, each | ||||||
4 | interactive fantasy sports operator shall implement and | ||||||
5 | maintain commercially reasonable measures to: | ||||||
6 | (1) limit each authorized player to one username and | ||||||
7 | one account and verify a fantasy sports player's true | ||||||
8 | identity; | ||||||
9 | (2) prohibit minors from participating in an | ||||||
10 | interactive fantasy sports contest, including: | ||||||
11 | (A) if the interactive fantasy sports operator | ||||||
12 | becomes or is made aware that a minor has participated | ||||||
13 | in one of its interactive fantasy sports contests, | ||||||
14 | promptly refund any deposit received from the minor, | ||||||
15 | whether or not the minor has engaged in or attempted to | ||||||
16 | engage in an interactive fantasy sports contest; | ||||||
17 | however, any refund may be offset by any prizes already | ||||||
18 | awarded; | ||||||
19 | (B) publishing and facilitating parental control | ||||||
20 | procedures to allow parents or guardians to exclude | ||||||
21 | minors from access to any interactive fantasy sports | ||||||
22 | contest or interactive fantasy sports platform; and | ||||||
23 | (C) taking appropriate steps to confirm that an | ||||||
24 | individual opening an account is not a minor; | ||||||
25 | (3) when referencing the likelihood of winning in | ||||||
26 | advertisements or upon interactive fantasy sports contest |
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1 | entry, make clear and conspicuous statements that are not | ||||||
2 | inaccurate or misleading concerning the likelihood of | ||||||
3 | winning and the number of winners; | ||||||
4 | (4) enable authorized players to restrict themselves | ||||||
5 | from interactive fantasy sports contests and take | ||||||
6 | reasonable steps to prevent these players from entering an | ||||||
7 | interactive fantasy sports contest from which they have | ||||||
8 | excluded themselves; these restrictions shall include, but | ||||||
9 | not be limited to: (A) interactive fantasy sports contest | ||||||
10 | entry limits, (B) limiting play to interactive fantasy | ||||||
11 | sports contest with entry fees below an established limit, | ||||||
12 | and (C) self-imposed deposit limits less than allowed under | ||||||
13 | this Act; interactive fantasy sports operators shall | ||||||
14 | implement and prominently publish procedures for fantasy | ||||||
15 | sports players to implement the restrictions; fantasy | ||||||
16 | sports players shall have the option to adjust these limits | ||||||
17 | to make them more restrictive of gameplay as often as they | ||||||
18 | like, but shall not have the option to make limits less | ||||||
19 | restrictive of gameplay within 90 days after setting the | ||||||
20 | limits; | ||||||
21 | (5) offer introductory procedures for authorized | ||||||
22 | players, that shall be prominently displayed on the | ||||||
23 | interactive fantasy sports operator's interactive fantasy | ||||||
24 | sports platform, that explain interactive fantasy sports | ||||||
25 | contest play and how to identify a highly experienced | ||||||
26 | player; |
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1 | (6) identify all highly experienced players in an | ||||||
2 | interactive fantasy sports contest by a symbol attached to | ||||||
3 | the players' user names, or by other easily visible means, | ||||||
4 | on all interactive fantasy sports platforms supported by an | ||||||
5 | interactive fantasy sports operator; | ||||||
6 | (7) disclose the number of entries a single authorized | ||||||
7 | player may submit to each interactive fantasy sports | ||||||
8 | contest; | ||||||
9 | (8) disclose the maximum number of total entries | ||||||
10 | allowed for each interactive fantasy sports contest; | ||||||
11 | (9) implement measures to comply with all applicable | ||||||
12 | State and federal requirements for data security, | ||||||
13 | including, but not limited to, age verification and | ||||||
14 | location software; | ||||||
15 | (10) offer all authorized players access to his or her | ||||||
16 | account history and account details; | ||||||
17 | (11) ensure funds in fantasy sports players' accounts | ||||||
18 | are held in segregated accounts by the interactive fantasy | ||||||
19 | sports operators for the fantasy sports players that | ||||||
20 | establish the accounts; interactive fantasy sports | ||||||
21 | operators shall implement and prominently publish | ||||||
22 | procedures that: | ||||||
23 | (A) prevent unauthorized withdrawals from fantasy | ||||||
24 | sports player accounts by interactive fantasy sports | ||||||
25 | operators or others; | ||||||
26 | (B) prevent commingling of funds in a fantasy |
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1 | sports player's account with other funds, including, | ||||||
2 | without limitation, funds of the interactive fantasy | ||||||
3 | sports operator; fantasy sports player funds shall be | ||||||
4 | segregated from interactive fantasy sports operators' | ||||||
5 | operational funds and any other funds held by the | ||||||
6 | interactive fantasy sports operator; and | ||||||
7 | (C) address reporting on complaints by fantasy | ||||||
8 | sports players that their accounts have been | ||||||
9 | misallocated, compromised, or otherwise mishandled; | ||||||
10 | (12) provide on the interactive fantasy sports | ||||||
11 | platform, in a prominent place, information concerning | ||||||
12 | assistance for compulsive play; | ||||||
13 | (13) prohibit the extension of credit from an | ||||||
14 | interactive fantasy sports operator to an authorized | ||||||
15 | player; | ||||||
16 | (14) develop policies to prevent the use of proxy | ||||||
17 | servers for the purpose of misrepresenting a player's | ||||||
18 | location in order to engage in interactive fantasy sports | ||||||
19 | contests; and | ||||||
20 | (15) prevent one fantasy sports player from acting as a | ||||||
21 | proxy for another. | ||||||
22 | (b) No interactive fantasy sports operator employee, | ||||||
23 | principal, officer, director, or contractor shall play any | ||||||
24 | interactive fantasy sports contest offered to the general | ||||||
25 | public or play in such contest through another person as a | ||||||
26 | proxy. For the purposes of this subsection (b), a contractor is |
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1 | limited to a contractor who can access information of an | ||||||
2 | interactive fantasy sports operator related to the conduct of | ||||||
3 | an interactive fantasy sports contest that is not available to | ||||||
4 | other fantasy sports players. Interactive fantasy sports | ||||||
5 | operators shall make these restrictions known to all affected | ||||||
6 | individuals and corporate entities. | ||||||
7 | (c) No interactive fantasy sports operator employee, | ||||||
8 | principal, officer, director, or contractor shall disclose | ||||||
9 | confidential information that may affect interactive fantasy | ||||||
10 | sports contest gameplay to any person permitted to engage in | ||||||
11 | interactive fantasy sports contest gameplay. Interactive | ||||||
12 | fantasy sports operators shall make these restrictions known to | ||||||
13 | all affected individuals and corporate entities. | ||||||
14 | (d) No interactive fantasy sports operator shall allow a | ||||||
15 | professional athlete whose individual statistics or | ||||||
16 | performance may be used to determine any part of the outcome of | ||||||
17 | any interactive fantasy sports contest to enter interactive | ||||||
18 | fantasy sports contests in the sports in which he or she | ||||||
19 | participates. An interactive fantasy sports operator shall | ||||||
20 | take commercially reasonable efforts to prevent a sports agent, | ||||||
21 | team employee, referee, or league official associated with any | ||||||
22 | competition that is the subject of interactive fantasy sports | ||||||
23 | contests to enter interactive fantasy sports contests in the | ||||||
24 | sport in which he or she participates, nor shall such athlete, | ||||||
25 | sports agent, team official, team representative, referee, or | ||||||
26 | league official play through another person as a proxy. |
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1 | (1) Interactive fantasy sports operators shall take | ||||||
2 | commercially reasonable efforts to obtain lists of persons | ||||||
3 | described in this subsection (d) for the purpose of | ||||||
4 | implementing this subsection (d). | ||||||
5 | (2) Interactive fantasy sports operators, upon | ||||||
6 | learning of a violation of this subsection (d), shall bar | ||||||
7 | the individual committing the violation from playing in any | ||||||
8 | interactive fantasy sports contest by suspending the | ||||||
9 | individual's account and banning the individual from | ||||||
10 | further play, shall terminate any existing promotional | ||||||
11 | agreements with the individual, and shall refuse to make | ||||||
12 | any new promotional agreements that compensate the | ||||||
13 | individual. | ||||||
14 | (3) Interactive fantasy sports operators shall make | ||||||
15 | these restrictions known to all affected individuals and | ||||||
16 | corporate entities. | ||||||
17 | (e) Each interactive fantasy sports operator shall: | ||||||
18 | (1) ensure the value of any prizes and awards offered | ||||||
19 | to authorized players are established and made known to the | ||||||
20 | players in advance of the interactive fantasy sports | ||||||
21 | contest; | ||||||
22 | (2) ensure all winning outcomes reflect the relative | ||||||
23 | knowledge and skill of the authorized players and are | ||||||
24 | determined predominantly by accumulated statistical | ||||||
25 | results of the performance of individuals in permitted | ||||||
26 | sports events; |
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1 | (3) ensure no winning outcome is based on the score, | ||||||
2 | point spread, or performance of a single sports team, or a | ||||||
3 | combination of sports teams; | ||||||
4 | (4) ensure no winning outcome is based solely on a | ||||||
5 | single performance of an individual athlete in a single | ||||||
6 | sport or athletic event; and | ||||||
7 | (5) ensure no interactive fantasy sports contest is | ||||||
8 | based on a prohibited sports event. | ||||||
9 | (f) Interactive fantasy sports operators shall implement | ||||||
10 | and prominently publish procedures that allow any fantasy | ||||||
11 | sports player to permanently close an account at any time and | ||||||
12 | for any reason. The procedures shall allow for cancellation by | ||||||
13 | any means, including, without limitation, by a fantasy sports | ||||||
14 | player on any interactive fantasy sports contest used by that | ||||||
15 | fantasy sports player to make deposits into a fantasy sports | ||||||
16 | player account. A copy of an interactive fantasy sports | ||||||
17 | operator's procedures shall be submitted to the Board and any | ||||||
18 | changes shall be submitted within 30 days. | ||||||
19 | (g) When a fantasy sports player account is closed, the | ||||||
20 | interactive fantasy sports operator shall refund all funds in | ||||||
21 | the account no later than 5 business days after submission of | ||||||
22 | the request or 10 business days after submission of any tax | ||||||
23 | reporting information required by law, whichever is later, | ||||||
24 | unless the interactive fantasy sports operator makes a good | ||||||
25 | faith determination that the fantasy sports player engaged in | ||||||
26 | fraudulent or other conduct that would constitute a violation |
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1 | of this Act, rules adopted pursuant to this Act, or the | ||||||
2 | interactive fantasy sports operator's policies, in which case, | ||||||
3 | upon notice to the fantasy sports player of that determination, | ||||||
4 | the withdrawal may be held pending a reasonable investigative | ||||||
5 | period to resolve its investigation. For the purposes of this | ||||||
6 | subsection (g), a request for withdrawal shall be considered | ||||||
7 | honored if it is processed by the interactive fantasy sports | ||||||
8 | operator, but delayed by a payment processor, a credit card | ||||||
9 | issuer, or the custodian of the financial account. | ||||||
10 | (h) If a prize is awarded to a fantasy sports player with a | ||||||
11 | closed account, that prize, to the extent it consists of funds, | ||||||
12 | shall be distributed by the interactive fantasy sports operator | ||||||
13 | within 5 business days, or 10 business days of submission of | ||||||
14 | any tax reporting information required by law, unless the | ||||||
15 | interactive fantasy sports operator makes a good faith | ||||||
16 | determination that the fantasy sports player engaged in | ||||||
17 | fraudulent or other conduct that would constitute a violation | ||||||
18 | of this Act or rules adopted pursuant to this Act. If such | ||||||
19 | determination is made, then the prize may be withheld, provided | ||||||
20 | that it is then awarded to another fantasy sports player in the | ||||||
21 | same interactive fantasy sports contest who would have won the | ||||||
22 | prize had the fantasy sports player with the closed account not | ||||||
23 | participated. | ||||||
24 | (i) An interactive fantasy sports operator shall | ||||||
25 | prominently publish all contractual terms and conditions and | ||||||
26 | rules of general applicability that affect a fantasy sports |
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1 | player's account. Presentation of such terms, conditions, and | ||||||
2 | rules at the time of on boarding a new fantasy sports player | ||||||
3 | shall not suffice. | ||||||
4 | (j) Interactive fantasy sports operators shall have | ||||||
5 | prominently published rules that govern when each interactive | ||||||
6 | fantasy sports contest shall close or lock. Each interactive | ||||||
7 | fantasy sports contest operator shall also prominently | ||||||
8 | disclose contest-specific information about the time that the | ||||||
9 | interactive fantasy sports contest closes or locks in | ||||||
10 | connection with each interactive fantasy sports contest | ||||||
11 | offered. An interactive fantasy sports operator shall strictly | ||||||
12 | enforce all disclosed closing or lock times. | ||||||
13 | (k) Fantasy sports player's deposits shall be limited to no | ||||||
14 | more than $1,000 per month. However, an interactive fantasy | ||||||
15 | sports operator may establish and prominently publish | ||||||
16 | procedures for temporarily or permanently increasing a fantasy | ||||||
17 | sports player's deposit limit, at the request of the fantasy | ||||||
18 | sports player, above $1,000 per month. Such procedures shall be | ||||||
19 | submitted to the Board. | ||||||
20 | If established by an interactive fantasy sports operator, | ||||||
21 | such procedures shall include evaluation of information, | ||||||
22 | including income or asset information, sufficient to establish | ||||||
23 | that the fantasy sports player can afford losses that might | ||||||
24 | result from gameplay at the deposit limit level requested. | ||||||
25 | When a temporary or permanent deposit level limit increase | ||||||
26 | is approved, the interactive fantasy sports operator's |
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1 | procedures shall provide for annual re-certification of a | ||||||
2 | player's financial ability to afford losses. | ||||||
3 | (l) The following entry limits apply: | ||||||
4 | (1) interactive fantasy sports operators shall not | ||||||
5 | allow players to submit more than one entry in an | ||||||
6 | interactive fantasy sports contest involving 12 entries or | ||||||
7 | fewer; | ||||||
8 | (2) interactive fantasy sports operators shall not | ||||||
9 | allow players to submit more than 2 entries in an | ||||||
10 | interactive fantasy sports contest involving more than 13 | ||||||
11 | entries but fewer than 36 entries; | ||||||
12 | (3) interactive fantasy sports operators shall not | ||||||
13 | allow players to submit more than 3 entries in an | ||||||
14 | interactive fantasy sports contest involving 36 or more | ||||||
15 | entries but fewer than 101 entries; and | ||||||
16 | (4) interactive fantasy sports operators shall not | ||||||
17 | allow fantasy sports players to submit more than 3% of all | ||||||
18 | entries in an interactive fantasy sports contest involving | ||||||
19 | 101 or more entries. | ||||||
20 | An interactive fantasy sports operator may establish | ||||||
21 | interactive fantasy sports contests, representing less | ||||||
22 | than 2% of the total number of interactive fantasy sports | ||||||
23 | contests that the interactive fantasy sports operator | ||||||
24 | offers, in which there is no restriction on the number of | ||||||
25 | entries, provided that (i) the interactive fantasy sports | ||||||
26 | operator clearly discloses that there are no limits on the |
| |||||||
| |||||||
1 | number of entries by each player in the interactive fantasy | ||||||
2 | sports contest and (ii) that the cost of participating in | ||||||
3 | the interactive fantasy sports contest is $50 or more per | ||||||
4 | entry. | ||||||
5 | (m) Interactive fantasy sports operators shall not offer an | ||||||
6 | interactive fantasy sports contest based on a prohibited sports | ||||||
7 | event. | ||||||
8 | (n) An interactive fantasy sports operator shall not | ||||||
9 | participate in an interactive fantasy sports contest offered by | ||||||
10 | the interactive fantasy sports operator. | ||||||
11 | (o) An interactive fantasy sports operator shall not permit | ||||||
12 | unauthorized scripts to be used on interactive fantasy sports | ||||||
13 | platforms and shall use commercially reasonable efforts to | ||||||
14 | monitor for and to prevent use of such scripts. | ||||||
15 | (p) Interactive fantasy sports operators shall develop and | ||||||
16 | prominently display procedures on the interactive fantasy | ||||||
17 | sports operator's interactive fantasy sports platform for the | ||||||
18 | filing of a complaint by the authorized player against the | ||||||
19 | interactive fantasy sports operator. The interactive fantasy | ||||||
20 | sports operator shall give an initial response to the player | ||||||
21 | within 48 hours after the player files the complaint. The | ||||||
22 | interactive fantasy sports operator shall give a complete | ||||||
23 | response to the player filing the complaint within 10 business | ||||||
24 | days after the initial response is issued. An authorized player | ||||||
25 | may file a complaint alleging a violation of the provisions of | ||||||
26 | this Act with the Board. |
| |||||||
| |||||||
1 | (q) An interactive fantasy sports operator shall close any | ||||||
2 | fantasy player account that is inactive for 2 years and notify | ||||||
3 | the account holder that the account has been closed by email to | ||||||
4 | the account holder's last known email address. When a fantasy | ||||||
5 | sports player account is closed due to inactivity, the | ||||||
6 | interactive fantasy sports operator shall take commercially | ||||||
7 | reasonable steps to refund all funds in the fantasy sports | ||||||
8 | player account within 30 days, subject to the receipt of any | ||||||
9 | tax information required by law. In the event that funds in a | ||||||
10 | closed fantasy sports player account exceed $5 and cannot be | ||||||
11 | refunded and remain unclaimed, the interactive fantasy sports | ||||||
12 | operator shall provide notice of the existence of funds to the | ||||||
13 | fantasy sports player. Such notice shall be provided by email | ||||||
14 | to the account holder's last known email address. In the event | ||||||
15 | that funds in a closed fantasy sports player account cannot be | ||||||
16 | refunded and remain unclaimed by the fantasy sports player | ||||||
17 | after 3 years, such funds shall be paid by the interactive | ||||||
18 | fantasy sports operator to the Unclaimed Property Trust Fund in | ||||||
19 | the Office of the State Treasurer. The interactive fantasy | ||||||
20 | sports operator shall provide notice to the fantasy sports | ||||||
21 | player's email address at least 60 days prior to paying the | ||||||
22 | funds to the Unclaimed Property Trust Fund. | ||||||
23 | (r) Interactive fantasy sports operators shall develop | ||||||
24 | games that are limited to beginner fantasy sports players and | ||||||
25 | shall prohibit individuals who are not beginner fantasy sports | ||||||
26 | players from participating in those games either directly or |
| |||||||
| |||||||
1 | through another person as a proxy. An interactive fantasy | ||||||
2 | sports operator shall suspend the account of an individual who | ||||||
3 | is not a beginner fantasy sports player and who enters a game | ||||||
4 | limited to beginner fantasy sports players and shall ban the | ||||||
5 | player from future play. | ||||||
6 | (s) All interactive fantasy sports operators shall develop | ||||||
7 | games in which highly experienced fantasy sports players cannot | ||||||
8 | participate either directly or through another person as a | ||||||
9 | proxy. An interactive fantasy sports operator shall suspend the | ||||||
10 | account of a highly experienced fantasy sports player who | ||||||
11 | enters a game that excludes highly experienced fantasy sports | ||||||
12 | players directly or through another person as a proxy and shall | ||||||
13 | ban the individual from future play.
| ||||||
14 | Section 1-30. Multiple interactive fantasy sports | ||||||
15 | platforms; interactive fantasy sports contests. A licensee may | ||||||
16 | use multiple interactive fantasy sports platforms and offer | ||||||
17 | multiple types of interactive fantasy sports contests.
| ||||||
18 | Section 1-35. Advertising. | ||||||
19 | (a) Advertisements of interactive fantasy sports operators | ||||||
20 | shall not feature: (1) minors (other than professional athletes | ||||||
21 | who may be minors), (2) students, (3) schools, colleges, or | ||||||
22 | universities, or (4) school, college, or university settings. | ||||||
23 | However, incidental depiction of non-featured minors or minors | ||||||
24 | accompanying adults shall not be a violation of this subsection |
| |||||||
| |||||||
1 | (a). | ||||||
2 | (b) Interactive fantasy sports operators shall not | ||||||
3 | advertise on school, college, or university campuses. | ||||||
4 | (c) Interactive fantasy sports operators shall not | ||||||
5 | advertise at amateur athletic competitions, except to the | ||||||
6 | extent that those competitions are played in stadiums where | ||||||
7 | professional competitions are held and where non-digital | ||||||
8 | advertisements have been posted, erected, or otherwise | ||||||
9 | displayed in a manner that would require substantial effort to | ||||||
10 | remove.
| ||||||
11 | Section 1-40. Powers and duties of the Board. | ||||||
12 | (a) The Board has jurisdiction over and shall supervise all | ||||||
13 | interactive fantasy sports contests governed by this Act. The | ||||||
14 | Board has all powers and duties necessary and proper to fully | ||||||
15 | and exclusively execute the provisions of the Act, including, | ||||||
16 | but not limited to, the following: | ||||||
17 | (1) To investigate applicants and determine the | ||||||
18 | eligibility of applicants that best serve the interests of | ||||||
19 | the citizens of Illinois. | ||||||
20 | (2) To provide for the establishment and collection of | ||||||
21 | all fees, fines, and taxes imposed by this Act and the | ||||||
22 | rules adopted under this Act. | ||||||
23 | (3) To suspend, revoke, or restrict licenses; to | ||||||
24 | require the removal of an interactive fantasy sports | ||||||
25 | operator or an employee of an interactive fantasy sports |
| |||||||
| |||||||
1 | operator for a violation of this Act; and to impose civil | ||||||
2 | penalties of an amount up to $5,000 against individuals and | ||||||
3 | $10,000 against licensees for each violation of the | ||||||
4 | provisions of this Act. | ||||||
5 | (4) To approve and deny applications for licensure to | ||||||
6 | conduct interactive fantasy sports contests in this State, | ||||||
7 | and to suspend, refuse or renew, or revoke a license issued | ||||||
8 | under this Act. | ||||||
9 | (5) To accept and investigate complaints of any kind | ||||||
10 | from an authorized player and attempt to mediate the | ||||||
11 | complaints where appropriate. | ||||||
12 | (6) To investigate alleged violations of this Act. | ||||||
13 | (7) To initiate proper enforcement proceedings where | ||||||
14 | such action is deemed by the Board to be necessary or | ||||||
15 | appropriate. | ||||||
16 | (8) To exercise all powers and duties assigned by this | ||||||
17 | Act. | ||||||
18 | (b) The Board shall adopt rules to implement the provisions | ||||||
19 | of and effectuate the policy and objectives of this Act as the | ||||||
20 | Board may deem necessary or advisable, including, but not | ||||||
21 | limited to, the development of the initial form of the | ||||||
22 | application for licensure. These rules shall include, but not | ||||||
23 | be limited to, responsible protections with regard to | ||||||
24 | compulsive play and safeguards for fair play. The Board shall | ||||||
25 | not adopt rules limiting or regulating: | ||||||
26 | (1) the rules or the administration of an individual |
| |||||||
| |||||||
1 | interactive fantasy sports contest; | ||||||
2 | (2) the statistical makeup of an interactive fantasy | ||||||
3 | sports contest; or | ||||||
4 | (3) the digital interactive fantasy sports platform of | ||||||
5 | an interactive fantasy sports operator. | ||||||
6 | (c) The Board shall adopt emergency rules to administer | ||||||
7 | this Act in accordance with Section 5-45 of the Illinois | ||||||
8 | Administrative Procedure Act. For the purposes of the Illinois | ||||||
9 | Administrative Procedure Act, the General Assembly finds that | ||||||
10 | the adoption of rules to implement this Act is deemed an | ||||||
11 | emergency and necessary for the public interest, safety, and | ||||||
12 | welfare.
| ||||||
13 | Section 1-45. Annual report. | ||||||
14 | (a) Each licensee shall annually submit a report to the | ||||||
15 | Board by no later than June 30 of each year that shall include | ||||||
16 | the following information as it applies to accounts held by | ||||||
17 | authorized players located in this State: | ||||||
18 | (1) the number of accounts held by authorized players | ||||||
19 | on all interactive fantasy sports platforms offered by the | ||||||
20 | interactive fantasy sports operator and the number of | ||||||
21 | accounts held by highly experienced players on all | ||||||
22 | interactive fantasy sports platforms offered by the | ||||||
23 | interactive fantasy sports operator; | ||||||
24 | (2) the total number of new accounts established in the | ||||||
25 | preceding year as well as the total number of accounts |
| |||||||
| |||||||
1 | permanently closed in the preceding year; | ||||||
2 | (3) the total amount of entry fees received from | ||||||
3 | authorized players; | ||||||
4 | (4) the total amount of prizes awarded to authorized | ||||||
5 | players; | ||||||
6 | (5) the total amount of interactive fantasy sports | ||||||
7 | gross revenue received by the licensee; and | ||||||
8 | (6) the total number of authorized players that | ||||||
9 | requested to exclude themselves from interactive fantasy | ||||||
10 | sports contests. | ||||||
11 | (b) The Board shall annually publish a report based on the | ||||||
12 | aggregate information provided by all interactive fantasy | ||||||
13 | sports operators in accordance with this Section, that shall be | ||||||
14 | published on the Board's website no later than 180 days after | ||||||
15 | the deadline for the submission of individual reports as | ||||||
16 | specified in this Section.
| ||||||
17 | Section 1-50. State tax. | ||||||
18 | (a) A privilege tax is imposed on persons engaged in the | ||||||
19 | business of operating an interactive fantasy sports contest in | ||||||
20 | this State. For the privilege of conducting interactive fantasy | ||||||
21 | sports contests in the State, interactive fantasy sports | ||||||
22 | operators shall pay a tax at the following graduated rates: | ||||||
23 | (1) 5% of annual interactive fantasy sports gross | ||||||
24 | revenue up to and including $1,000,000; | ||||||
25 | (2) 7.5% of annual interactive fantasy sports gross |
| |||||||
| |||||||
1 | revenue in excess of $1,000,000 but not exceeding | ||||||
2 | $3,000,000; | ||||||
3 | (3) 10% of annual interactive fantasy sports gross | ||||||
4 | revenue in excess of $3,000,000 but not exceeding | ||||||
5 | $8,000,000; | ||||||
6 | (4) 15% of annual interactive fantasy sports gross | ||||||
7 | revenue in excess of $8,000,000. | ||||||
8 | (b) The tax imposed by this Section shall be paid by the | ||||||
9 | interactive fantasy sports operator to the Board not later than | ||||||
10 | the 15th day of every month for the previous month's privilege | ||||||
11 | taxes.
| ||||||
12 | Section 1-55. Disposition of taxes. The Board shall pay | ||||||
13 | into the Education Assistance Fund all taxes imposed by this | ||||||
14 | Act, any interest and penalties imposed by the Board relating | ||||||
15 | to those taxes, all penalties levied and collected by the | ||||||
16 | Board, and the appropriate funds, cash, or prizes forfeited | ||||||
17 | from interactive fantasy sports contests.
| ||||||
18 | Section 1-60. Audits. All interactive fantasy sports | ||||||
19 | operators with annual interactive fantasy sports contest gross | ||||||
20 | revenue of $100,000 or more shall annually be subject to an | ||||||
21 | audit of the financial transactions and condition of the | ||||||
22 | interactive fantasy sports operator's total operations as they | ||||||
23 | relate to the offering and operating of interactive fantasy | ||||||
24 | sports contests and to ensure compliance with all of the |
| |||||||
| |||||||
1 | requirements in this Act. Interactive fantasy sports operators | ||||||
2 | with annual interactive fantasy sports contest gross revenues | ||||||
3 | less than $100,000 shall every 3 years be subject to an audit | ||||||
4 | of the financial transactions and condition of the interactive | ||||||
5 | fantasy sports operator's total operations as they relate to | ||||||
6 | the offering and operating of interactive fantasy sports | ||||||
7 | contests and to ensure compliance with all of the requirements | ||||||
8 | in this Act. All audits and compliance engagements shall be | ||||||
9 | conducted by certified public accountants or an independent | ||||||
10 | testing laboratory approved by the Board. The compensation for | ||||||
11 | each certified public accountant or independent testing | ||||||
12 | laboratory shall be paid directly by the interactive fantasy | ||||||
13 | sports operator to the certified public accountant or | ||||||
14 | independent testing laboratory. The audit shall be conducted | ||||||
15 | and submitted to the Board by June 30 of each year.
| ||||||
16 | Section 1-65. Limitation on the taxation of interactive | ||||||
17 | fantasy sports operators. Interactive fantasy sports operators | ||||||
18 | shall not be subjected to an excise tax, license tax, permit | ||||||
19 | tax, privilege tax, amusement tax, or occupation tax that is | ||||||
20 | imposed upon the licensee by the State or any political | ||||||
21 | subdivision thereof, except as provided in this Act.
| ||||||
22 | Section 1-70. Application fees; license fees. | ||||||
23 | (a) A non-refundable application fee shall be paid at the | ||||||
24 | time an application for licensure is filed with the Board in |
| |||||||
| |||||||
1 | the following amounts: | ||||||
2 | (1) Interactive fantasy sports operators with annual | ||||||
3 | interactive fantasy sports gross revenue greater than | ||||||
4 | $10,000,000 ......................................... $25,000 | ||||||
5 | (2) Interactive fantasy sports operators with annual | ||||||
6 | interactive fantasy sports gross revenue greater than | ||||||
7 | $5,000,000 but not more than $10,000,000 ............ $12,500 | ||||||
8 | (3) Interactive fantasy sports operators with annual | ||||||
9 | interactive fantasy sports gross revenue greater than | ||||||
10 | $1,000,000 but not more than $5,000,000 .............. $7,500 | ||||||
11 | (4) Interactive fantasy sports operators with annual | ||||||
12 | interactive fantasy sports gross revenue of at least | ||||||
13 | $100,000 but not more than $1,000,000 ................ $5,000 | ||||||
14 | (5) Interactive fantasy sports operators with annual | ||||||
15 | interactive fantasy sports gross revenue less than | ||||||
16 | $100,000 ............................................... $500 | ||||||
17 | (b) The Board shall establish a fee for each license not to | ||||||
18 | exceed the following for the initial licensure period: | ||||||
19 | (1) Interactive fantasy sports operators with annual | ||||||
20 | interactive fantasy sports gross revenue greater than | ||||||
21 | $10,000,000 ......................................... $50,000 | ||||||
22 | (2) Interactive fantasy sports operators with annual | ||||||
23 | interactive fantasy sports gross revenue greater than | ||||||
24 | $5,000,000 but not more than $10,000,000 ............ $25,000 | ||||||
25 | (3) Interactive fantasy sports operators with annual | ||||||
26 | interactive fantasy sports gross revenue greater than |
| |||||||
| |||||||
1 | $1,000,000 but not more than $5,000,000 ..............$15,000 | ||||||
2 | (4) Interactive fantasy sports operators with annual | ||||||
3 | interactive fantasy sports gross revenue of at least | ||||||
4 | $100,000 but not more than $1,000,000 ............... $10,000 | ||||||
5 | (5) Interactive fantasy sports operators with annual | ||||||
6 | interactive fantasy sports gross revenue less than | ||||||
7 | $100,000 ............................................. $1,500 | ||||||
8 | (c) For subsequent licensure periods, the renewal fee shall | ||||||
9 | not exceed the following: | ||||||
10 | (1) Interactive fantasy sports operators with annual | ||||||
11 | interactive fantasy sports gross revenue greater than | ||||||
12 | $10,000,000 ......................................... $37,500 | ||||||
13 | (2) Interactive fantasy sports operators with annual | ||||||
14 | interactive fantasy sports gross revenue greater than | ||||||
15 | $5,000,000 but not more than $10,000,000 ............ $18,750 | ||||||
16 | (3) Interactive fantasy sports operators with annual | ||||||
17 | interactive fantasy sports gross revenue greater than | ||||||
18 | $1,000,000 but not more than $5,000,000 ............. $11,250 | ||||||
19 | (4) Interactive fantasy sports operators with annual | ||||||
20 | interactive fantasy sports gross revenue of at least | ||||||
21 | $100,000 but not more than $1,000,000 .................$7,500 | ||||||
22 | (5) Interactive fantasy sports operators with annual | ||||||
23 | interactive fantasy sports gross revenue less than | ||||||
24 | $100,000 ............................................. $1,125 | ||||||
25 | (d) All fees collected under this Section shall be | ||||||
26 | deposited into the State Gaming Fund. |
| |||||||
| |||||||
1 | (e) All fees collected under this Section shall be used for | ||||||
2 | the administration of this Act.
| ||||||
3 | Section 1-75. Interactive fantasy sports contests | ||||||
4 | authorized. Interactive fantasy sports contests conducted in | ||||||
5 | accordance with the provisions of this Act are hereby | ||||||
6 | authorized.
| ||||||
7 | Section 1-80. Interactive fantasy sports contests | ||||||
8 | prohibited. The conduct of interactive fantasy sports contests | ||||||
9 | by unlicensed operators is prohibited.
| ||||||
10 | Section 1-85. Interactive fantasy sports contests; | ||||||
11 | Criminal Code of 2012. Interactive fantasy sports contests | ||||||
12 | offered in accordance with the provisions of this Act shall not | ||||||
13 | constitute gambling as defined in Section 28-1 of the Criminal | ||||||
14 | Code of 2012.
| ||||||
15 | Section 1-900. Repeal. This Act is repealed on January 1, | ||||||
16 | 2021.
| ||||||
17 | Article 5. Internet Gaming Act | ||||||
18 | Section 5-1. Short title. This Article may be cited as the | ||||||
19 | Internet Gaming Act. References in
this Article to "this Act" | ||||||
20 | mean this Article.
|
| |||||||
| |||||||
1 | Section 5-5. Legislative findings and intent. The General | ||||||
2 | Assembly finds that the Internet has become an integral part of | ||||||
3 | everyday life for a significant number of Illinois residents, | ||||||
4 | not only in regard to their professional life, but also in | ||||||
5 | regard to personal business and communication. Internet | ||||||
6 | wagering on games of chance and games of skill is a core form | ||||||
7 | of entertainment for millions of individuals worldwide. In | ||||||
8 | multiple jurisdictions across the world, Internet gaming is | ||||||
9 | legal, regulated, and taxed, generating millions of dollars in | ||||||
10 | revenue for governments. | ||||||
11 | The General Assembly further finds that Illinois residents | ||||||
12 | participate in illegal online gambling on unregulated Internet | ||||||
13 | websites operated by offshore operators who are not subject to | ||||||
14 | regulation or taxation in the United States. Neither federal | ||||||
15 | nor Illinois laws provide sufficient consumer protections for | ||||||
16 | Illinois residents who play games of chance or skill on these | ||||||
17 | illegal websites, nor does the State realize any benefits from | ||||||
18 | the revenues generated nor jobs created by illegal online | ||||||
19 | gaming. | ||||||
20 | In an opinion dated September 20, 2011, the United States | ||||||
21 | Department of Justice reversed its previous interpretation of | ||||||
22 | the federal Wire Act, 18 U.S.C. 1084, allowing states, subject | ||||||
23 | to certain restrictions, to legalize and regulate Internet | ||||||
24 | gaming and capture the revenue for the benefit of state | ||||||
25 | governments. The Department of Justice's opinion was prompted |
| |||||||
| |||||||
1 | in part by a request made by the Department of Revenue pursuant | ||||||
2 | to Public Act 96-34. In order to protect Illinois residents who | ||||||
3 | wager on games of chance and skill through the Internet and to | ||||||
4 | capture revenues and create jobs generated from Internet | ||||||
5 | gaming, it is in the best interest of the State and its | ||||||
6 | citizens to regulate this activity by authorizing and | ||||||
7 | establishing a secure, responsible, fair, and legal system of | ||||||
8 | Internet gaming that complies with the United States Department | ||||||
9 | of Justice's September 2011 opinion concerning the federal Wire | ||||||
10 | Act. | ||||||
11 | The General Assembly additionally finds that pursuant to | ||||||
12 | the federal Unlawful Internet Gambling Enforcement Act of 2006 | ||||||
13 | (UIGEA), 31 U.S.C. 5361, the provisions of this Act are | ||||||
14 | consistent and comply with the UIGEA and specifically authorize | ||||||
15 | use of the Internet to place, receive, or otherwise knowingly | ||||||
16 | transmit a bet or wager where Internet wagering complies with | ||||||
17 | this Act and rules adopted pursuant to this Act.
| ||||||
18 | Section 5-10. Definitions. As used in this Act: | ||||||
19 | "Authorized participant" means a person who has a valid | ||||||
20 | Internet wagering account with an Internet gaming licensee and | ||||||
21 | is at least 21 years of age.
| ||||||
22 | "Board" means the Illinois Gaming Board. | ||||||
23 | "Division" means the Division of Internet Gaming within the | ||||||
24 | Illinois Gaming Board. | ||||||
25 | "Fee-based game" means a game determined by the Division to |
| |||||||
| |||||||
1 | be a fee-based game, where the Internet gaming licensee charges | ||||||
2 | a fee, rake, or commission for operating the game.
| ||||||
3 | "Gross fee-based gaming revenue" means the fee, rake, or | ||||||
4 | commission charged by the Internet gaming licensee for | ||||||
5 | operation of fee-based games.
| ||||||
6 | "Gross gaming revenue" is the aggregate of gross fee-based | ||||||
7 | gaming revenue and gross non-fee-based gaming revenue. | ||||||
8 | "Gross non-fee-based gaming revenue" means the aggregate | ||||||
9 | of the amount of net wins received on all non-fee-based games.
| ||||||
10 | "Internet" means the international computer network of | ||||||
11 | interoperable packet-switched data networks, inclusive of such | ||||||
12 | additional technological platforms as mobile, satellite, and | ||||||
13 | other electronic distribution channels approved by the Board.
| ||||||
14 | "Internet game" means a fee-based or non-fee-based game of | ||||||
15 | skill or chance that is offered by an Internet gaming licensee, | ||||||
16 | as authorized by the Board.
"Internet game" includes gaming | ||||||
17 | tournaments conducted via the Internet in which players compete | ||||||
18 | against one another in one or more of the games authorized in | ||||||
19 | this definition or by the Division or in approved variations or | ||||||
20 | composites as authorized by the Division. "Internet game" does | ||||||
21 | not include an interactive fantasy sports contest under the | ||||||
22 | Fantasy Sports Contest Act. | ||||||
23 | "Internet gaming licensee" means a person, corporation, | ||||||
24 | partnership, or other entity receiving an Internet gaming | ||||||
25 | license from the Board to conduct Internet wagering. | ||||||
26 | "Internet gaming platform" means the combination of |
| |||||||
| |||||||
1 | hardware and software or other technology designed and used to | ||||||
2 | manage, conduct, and record Internet gaming and the wagers | ||||||
3 | associated with internet gaming, as approved by the Board. | ||||||
4 | "Internet gaming platform" includes an emerging or new | ||||||
5 | technology deployed to advance the conduct and operation of | ||||||
6 | Internet gaming, as approved through rulemaking by the Board. | ||||||
7 | "Internet gaming skin" means the brand used by the Internet | ||||||
8 | gaming licensee as presented through a portal, Internet | ||||||
9 | website, or computer or mobile application or app through which | ||||||
10 | authorized Internet gaming is made available to authorized | ||||||
11 | participants by an Internet gaming licensee.
| ||||||
12 | "Internet gaming vendor" means a person, corporation, | ||||||
13 | partnership, or other entity that is certified by the Division | ||||||
14 | to provide or offer to provide goods, software, or services to | ||||||
15 | an Internet gaming licensee related to or supporting: (i) the | ||||||
16 | acceptance, testing, auditing, management, operation, support, | ||||||
17 | administration, or control of Internet wagers, Internet games, | ||||||
18 | Internet wagering accounts, or Internet gaming platforms or | ||||||
19 | (ii) the management, operation, administration, or control of | ||||||
20 | payment processing systems. Notwithstanding this definition, | ||||||
21 | the licensing of trademarks, names, likenesses, graphics, or | ||||||
22 | other images, without more, shall not render a licensor of such | ||||||
23 | intellectual property an Internet gaming vendor. | ||||||
24 | "Internet wagering" means the placing of wagers with an | ||||||
25 | Internet gaming licensee by persons who are either physically | ||||||
26 | present in Illinois when placing a wager or otherwise permitted |
| |||||||
| |||||||
1 | to place a wager by law. The intermediate routing of electronic | ||||||
2 | data in connection with Internet wagering, including across | ||||||
3 | state lines, shall not determine the location or locations in | ||||||
4 | which a wager is initiated, received, or otherwise made. | ||||||
5 | "Internet wagering account" means an electronic ledger | ||||||
6 | wherein the following types of transactions relative to the | ||||||
7 | Internet gaming platform are recorded: (i) deposits; (ii) | ||||||
8 | withdrawals; (iii) amounts wagered; (iv) amounts paid on | ||||||
9 | winning wagers; (v) service or other transaction-related | ||||||
10 | charges authorized by the patron, if any; (vi) adjustments to | ||||||
11 | the account; and (vii) any other information required by the | ||||||
12 | Division. | ||||||
13 | "Net wins" means the amount of Internet wagers received by | ||||||
14 | the Internet gaming licensee on non-fee based games less the | ||||||
15 | amount paid by the Internet gaming licensee as winnings on that | ||||||
16 | non-fee based game.
| ||||||
17 | "Non-fee-based game" means a game determined by the Board | ||||||
18 | to be a non-fee-based game, where (i) the player plays against | ||||||
19 | the Internet gaming licensee and (ii) the Internet gaming | ||||||
20 | licensee is banking the game and its bottom line is affected by | ||||||
21 | players' wins and losses.
| ||||||
22 | Section 5-15. Authorization. Internet wagering, as | ||||||
23 | defined in this Act, is hereby authorized to the extent that it | ||||||
24 | is carried out in accordance with the provisions of this Act.
|
| |||||||
| |||||||
1 | Section 5-20. Division of Internet Gaming. The Division of | ||||||
2 | Internet Gaming is established within the Illinois Gaming Board | ||||||
3 | and shall have all of the powers and duties specified in this | ||||||
4 | Act and all other powers necessary and proper to enable it to | ||||||
5 | fully and effectively execute the provisions of this Act for | ||||||
6 | the purpose of administering, regulating, and enforcing the | ||||||
7 | system of Internet gaming established by this Act. The Division | ||||||
8 | of Internet Gaming's jurisdiction shall extend under this Act | ||||||
9 | to every person, corporation, partnership, or other entity | ||||||
10 | involved in Internet gaming operations. To the extent | ||||||
11 | consistent with the provisions of this Act, the Division shall | ||||||
12 | be subject to and governed by the laws and rules applicable to | ||||||
13 | the Board. The Division of Internet Gaming is also authorized | ||||||
14 | to enter into agreements with other gaming entities within the | ||||||
15 | United States, including any State or United States territory | ||||||
16 | or possession, for the purpose of facilitating, administering, | ||||||
17 | and regulating Internet gaming to the extent consistent with | ||||||
18 | federal laws and the laws of any State or United States | ||||||
19 | territory or possession that is a party to the | ||||||
20 | multijurisdictional agreement. The Division shall not | ||||||
21 | authorize, administer, or otherwise maintain a system for | ||||||
22 | offering wagering on any amateur or professional sporting event | ||||||
23 | or contest. Notwithstanding any other provision of this Act, | ||||||
24 | wagers may be accepted from persons who are in the United | ||||||
25 | States but not physically present in this State if the Division | ||||||
26 | determines that such wagering is not inconsistent with federal |
| |||||||
| |||||||
1 | law and the law of the United States jurisdiction in which any | ||||||
2 | such person is located or such wagering is conducted in | ||||||
3 | accordance with a multijurisdictional agreement that is not | ||||||
4 | inconsistent with federal law to which this State is a party. | ||||||
5 | The Division shall be funded with moneys appropriated to the | ||||||
6 | Illinois Gaming Board.
| ||||||
7 | Section 5-25. Application and eligibility for licensure. | ||||||
8 | The Division of Internet Gaming is authorized to issue Internet | ||||||
9 | gaming licenses to persons, firms, partnerships, or | ||||||
10 | corporations that apply for such licensure upon a determination | ||||||
11 | by the Division that the applicant is eligible for an Internet | ||||||
12 | gaming license under this Act and rules adopted by the | ||||||
13 | Division. An Internet gaming license issued under this Act | ||||||
14 | shall be valid for a period of 5 years after the date of | ||||||
15 | issuance and shall be renewable thereafter for an additional 5 | ||||||
16 | years based on a determination by the Division that the | ||||||
17 | licensee continues to meet all the requirements of this Act and | ||||||
18 | the Division's rules. Notwithstanding any other law to the | ||||||
19 | contrary, any assignment or transfer of an interest in an | ||||||
20 | Internet gaming license, or a greater than 10% interest, direct | ||||||
21 | or indirect, in any entity holding such a license, is subject | ||||||
22 | to the written approval by the Division. Approved transferees | ||||||
23 | are subject to a $250,000 non-refundable application fee. | ||||||
24 | Eligibility for application for an Internet gaming license | ||||||
25 | shall be limited to any person or entity that holds a valid and
|
| |||||||
| |||||||
1 | unrevoked: (1) owners license issued pursuant to the Riverboat | ||||||
2 | Gambling Act, or any affiliate thereof as defined by the Board | ||||||
3 | in its administrative rules implementing such Act, or any | ||||||
4 | person or entity who as of January 1, 2017 was designated by | ||||||
5 | the Illinois Gaming Board as a key person of an owners licensee | ||||||
6 | or is controlled by one or more key persons of an owners | ||||||
7 | licensee; (2) organization license issued pursuant to the | ||||||
8 | Illinois Horse Racing Act of 1975, but only if the organization | ||||||
9 | licensee conducted more than 30 days of live racing in calendar | ||||||
10 | year 2016, except that 2 additional internet gaming licenses | ||||||
11 | may be issued to entities awarded organization licenses after | ||||||
12 | 2016 that exclusively conduct standardbred racing; or (3) | ||||||
13 | advance deposit wagering license issued pursuant to the | ||||||
14 | Illinois Horse Racing Act of 1975, but only if the advance | ||||||
15 | deposit wagering licensee conducted advance deposit wagering | ||||||
16 | in Illinois and handled in excess of $1,000,000 in calendar | ||||||
17 | year 2016. | ||||||
18 | A qualified applicant may apply to the Division for an | ||||||
19 | Internet gaming license to offer wagering on Internet games as | ||||||
20 | provided in this Act. The application shall be made on forms | ||||||
21 | provided by the Division and shall contain such information as | ||||||
22 | the Division prescribes, including, but not limited to, | ||||||
23 | detailed information regarding the ownership and management of | ||||||
24 | the applicant, detailed personal information regarding the | ||||||
25 | applicant, financial information regarding the applicant, and | ||||||
26 | the gaming history and experience of the applicant in the |
| |||||||
| |||||||
1 | United States and other jurisdictions. Each application shall | ||||||
2 | be accompanied by a non-refundable application fee of $250,000. | ||||||
3 | An incomplete application shall be cause for denial of a | ||||||
4 | license by the Division. | ||||||
5 | All information, records, interviews, reports, statements, | ||||||
6 | memoranda, or other data supplied to or used by the Division in | ||||||
7 | the course of its review or investigation of an application for | ||||||
8 | an Internet gaming license or a renewal under this Act is | ||||||
9 | subject to Section 5.1 and Section (d) of Section 6 of the | ||||||
10 | Riverboat Gambling Act. | ||||||
11 | Any person, association, corporation, partnership, or | ||||||
12 | entity who (i) knowingly makes materially false statements in | ||||||
13 | order to obtain an Internet gaming license; (ii) knowingly | ||||||
14 | advertises within the State of Illinois any game, product, or | ||||||
15 | feature that is not authorized by his or her license; or (iii) | ||||||
16 | violates any other provision of this Act or any rule adopted | ||||||
17 | under this Act is guilty of a Class B misdemeanor for the first | ||||||
18 | violation and is guilty of a Class A misdemeanor for a second | ||||||
19 | or subsequent violation. In the case of an association, | ||||||
20 | corporation, partnership, or entity, imprisonment may be | ||||||
21 | imposed upon its officers who knowingly participated in the | ||||||
22 | violation. | ||||||
23 | An application shall be filed and considered in accordance | ||||||
24 | with the rules of the Division. The Division shall adopt rules | ||||||
25 | to effectuate the provisions of this Section within 30 days | ||||||
26 | after the effective date of this Act. |
| |||||||
| |||||||
1 | A license fee of $10,000,000 shall be paid to the Division | ||||||
2 | by an Internet gaming licensee at the time of issuance of the | ||||||
3 | license. All application and license fees shall be deposited | ||||||
4 | into the State Gaming Fund. The license fee imposed by this | ||||||
5 | Section shall constitute an advance payment of Internet | ||||||
6 | wagering taxes owed by the Internet gaming licensee under | ||||||
7 | Section 5-55 of this Act.
| ||||||
8 | Section 5-26. Initial license and renewal requirements for | ||||||
9 | Internet gaming licenses obtained by an organization licensee. | ||||||
10 | (a) No internet gaming license may be awarded to or renewed | ||||||
11 | for any entity that is eligible for an Internet gaming license | ||||||
12 | because of an organization license awarded by the Illinois | ||||||
13 | Racing Board, unless they meet the following criteria: | ||||||
14 | (1) The entity must hold a valid organization license | ||||||
15 | awarded by the Illinois Racing Board for the term of the | ||||||
16 | license. | ||||||
17 | (2) The entity must hold an inter-track wagering | ||||||
18 | license awarded by the Illinois Racing Board for the term | ||||||
19 | of the license. | ||||||
20 | (3) The entity, for the term of the license, must have | ||||||
21 | a signed contract with the horsemen association | ||||||
22 | representing the largest number of owners, trainers, | ||||||
23 | jockeys, or standardbred drivers who race horses at that | ||||||
24 | organization licensee's racing meeting, the right to | ||||||
25 | execute or decline such contract being without condition, |
| |||||||
| |||||||
1 | and that stipulates: | ||||||
2 | (A) the number of races to be conducted at the | ||||||
3 | racing meeting and penalties for failure to conduct | ||||||
4 | those races; | ||||||
5 | (B) the amounts to be distributed to purse accounts | ||||||
6 | and penalties for failure to timely make such | ||||||
7 | distributions; and | ||||||
8 | (C) the reduction and ultimate elimination of | ||||||
9 | money payable from purses to organization licensees | ||||||
10 | under paragraph (13) of subsection (g) of Section 26 of | ||||||
11 | the Illinois Horse Racing Act of 1975, with such | ||||||
12 | reduction and elimination achieved as agreed either | ||||||
13 | through reimbursement or non-acceptance. | ||||||
14 | (4) The entity may not receive any proceeds from gross | ||||||
15 | gaming revenue during any period that gross gaming revenues | ||||||
16 | are not being deposited into the purse accounts as provided | ||||||
17 | in the signed contract with the applicable horsemen | ||||||
18 | association. | ||||||
19 | (b) The Illinois Gaming Board shall study the viability and | ||||||
20 | benefit of providing an Internet gaming license to the horsemen | ||||||
21 | association representing the largest number of owners, | ||||||
22 | training jockeys, or standardbred drivers who race horses at an | ||||||
23 | organization licensee's racing meetings, and shall prepare a | ||||||
24 | report for the Illinois General Assembly and the Governor no | ||||||
25 | later than 12 months after the effective date of this Act.
|
| |||||||
| |||||||
1 | Section 5-27. Initial license and renewal requirements for | ||||||
2 | Internet gaming licenses obtained by an advance deposit | ||||||
3 | wagering licensee. | ||||||
4 | (a) No Internet gaming license may be awarded to or renewed | ||||||
5 | for any entity that is eligible for an Internet gaming license | ||||||
6 | because of an advance deposit wagering license awarded by the | ||||||
7 | Illinois Racing Board, unless it meets the following criteria: | ||||||
8 | (1) The entity must hold a valid advance deposit | ||||||
9 | wagering license awarded by the Illinois Racing Board for | ||||||
10 | the term of the Internet gaming license. | ||||||
11 | (2) The entity must have a signed contract with both | ||||||
12 | the organization licensee and the horsemen association | ||||||
13 | representing the largest number of owners, trainers, | ||||||
14 | jockeys, or standardbred drivers who race horses at that | ||||||
15 | organization licensee's racing meeting, the right to | ||||||
16 | execute or decline such contract being without condition, | ||||||
17 | and that stipulates: | ||||||
18 | (A) the number of races to be conducted at the | ||||||
19 | racing meeting and penalties for failure to conduct | ||||||
20 | those races; | ||||||
21 | (B) the amounts to be distributed to purse accounts | ||||||
22 | and penalties for failure to timely make such | ||||||
23 | distributions; and | ||||||
24 | (C) the reduction and ultimate elimination of | ||||||
25 | money payable from purses to organization licensees | ||||||
26 | under paragraph (13) of subsection (g) of Section 26 of |
| |||||||
| |||||||
1 | the Illinois Horse Racing Act of 1975, with such | ||||||
2 | reduction and elimination achieved as agreed either | ||||||
3 | through reimbursement or non-acceptance. | ||||||
4 | (3) The entity may not receive any proceeds from gross | ||||||
5 | gaming revenue during any period that gross gaming revenues | ||||||
6 | are not being deposited into the purse accounts as provided | ||||||
7 | in the signed contract with the applicable horsemen | ||||||
8 | association.
| ||||||
9 | Section 5-30. Certification of Internet gaming vendors. | ||||||
10 | The Division is authorized to certify Internet gaming vendors | ||||||
11 | to provide goods, software, or services to Internet gaming | ||||||
12 | licensees. Certification by the Division of an Internet gaming | ||||||
13 | vendor shall be for a period of 5 years and shall be renewable | ||||||
14 | thereafter for an additional 5 years based on a determination | ||||||
15 | by the Division that the Internet gaming vendor continues to | ||||||
16 | meet all the requirements of this Act and the Division's rules. | ||||||
17 | The Division shall have the sole and exclusive jurisdiction to | ||||||
18 | determine what persons, corporations, partnerships, or other | ||||||
19 | entities require certification under this Act and the rules | ||||||
20 | adopted under this Act. | ||||||
21 | A person, corporation, partnership, or other entity may | ||||||
22 | apply to the Division to become an Internet gaming vendor as | ||||||
23 | provided in this Act and the rules of the Division. The | ||||||
24 | application shall be made on forms provided by the Division and | ||||||
25 | shall contain such information as the Division prescribes, |
| |||||||
| |||||||
1 | including, but not limited to, detailed information regarding | ||||||
2 | the ownership and management of the applicant, detailed | ||||||
3 | personal information regarding the applicant, financial | ||||||
4 | information regarding the applicant, and the gaming history and | ||||||
5 | experience of the applicant in the United States and other | ||||||
6 | jurisdictions. Each application shall be accompanied by a | ||||||
7 | non-refundable application fee, the amount of which shall be | ||||||
8 | determined by the Division, but shall not exceed $250,000. An | ||||||
9 | incomplete application shall be cause for denial of | ||||||
10 | certification. No certification shall be granted to an Internet | ||||||
11 | gaming vendor who has accepted wagers via the Internet in | ||||||
12 | contravention of this Act or in contravention of any law of the | ||||||
13 | United States. | ||||||
14 | All information, records, interviews, reports, statements, | ||||||
15 | memoranda, or other data supplied to or used by the Division in | ||||||
16 | the course of its review or investigation of an application for | ||||||
17 | certification as an Internet gaming vendor is strictly | ||||||
18 | confidential and shall only be used for the purpose of | ||||||
19 | evaluating an applicant for a certification. Notwithstanding | ||||||
20 | any law to the contrary, such information is subject to Section | ||||||
21 | 5.1 and subsection (d) of Section 6 of the Riverboat Gambling | ||||||
22 | Act. | ||||||
23 | Any person, association, corporation, partnership, or | ||||||
24 | entity who (i) knowingly makes materially false statements in | ||||||
25 | order to obtain certification as an Internet gaming vendor or | ||||||
26 | (ii) violates any other provision of this Act or any rule |
| |||||||
| |||||||
1 | adopted under this Act is guilty of a Class B misdemeanor for a | ||||||
2 | first offense and is guilty of a Class A misdemeanor for a | ||||||
3 | second or subsequent offense. In the case of an association, | ||||||
4 | corporation, partnership, or entity, imprisonment may be | ||||||
5 | imposed upon its officers who knowingly participate in the | ||||||
6 | violation. | ||||||
7 | The Board shall adopt rules to ensure that all licensees | ||||||
8 | are treated and all licensees act in a non-discriminatory | ||||||
9 | manner and develop processes and penalties to enforce those | ||||||
10 | rules.
| ||||||
11 | Section 5-35. Authority of the Division. | ||||||
12 | (a) The Division shall have all the powers necessary or | ||||||
13 | desirable to effectuate the provisions of this Act, including, | ||||||
14 | but not limited to, the following powers: | ||||||
15 | (1) To develop qualifications, standards, and | ||||||
16 | procedures for approval and licensure of Internet gaming | ||||||
17 | licensees and certification of Internet gaming vendors. | ||||||
18 | (2) To decide promptly and in reasonable order all | ||||||
19 | license applications and to approve, deny, suspend, | ||||||
20 | revoke, restrict, or refuse to renew Internet gaming | ||||||
21 | licenses and Internet gaming vendor certifications. Any | ||||||
22 | party aggrieved by an action of the Division denying, | ||||||
23 | suspending, revoking, restricting, or refusing to renew a | ||||||
24 | license may request a hearing before the Division. A | ||||||
25 | request for hearing must be made to the Division in writing |
| |||||||
| |||||||
1 | within 5 days after service of notice of the action by the | ||||||
2 | Division. Notice of action by the Division shall be served | ||||||
3 | either by personal delivery or by certified mail, postage | ||||||
4 | prepaid, to the aggrieved party. Notice served by certified | ||||||
5 | mail shall be deemed complete on the business day following | ||||||
6 | the date of such mailing. The Division shall conduct all | ||||||
7 | requested hearings promptly and in reasonable order. | ||||||
8 | (3) To conduct all hearings pertaining to civil | ||||||
9 | violations of this Act or rules adopted under this Act. | ||||||
10 | Such hearings shall be governed by Section 5 of the | ||||||
11 | Riverboat Gambling Act. The Division shall further adopt | ||||||
12 | hearing rules and procedures for conducting hearings under | ||||||
13 | this Act. In such hearings, reproduced copies of any of the | ||||||
14 | Division's records relating to an Internet gaming licensee | ||||||
15 | or Internet gaming vendor, including (i) any notices | ||||||
16 | prepared in the Division's ordinary course of business and | ||||||
17 | (ii) any books, records, or other documents offered in the | ||||||
18 | name of the Division under certificate of the Executive | ||||||
19 | Director, or any officer or employee of the Division | ||||||
20 | designated in writing by the Executive Director, shall, | ||||||
21 | without further proof, be admitted into evidence in any | ||||||
22 | hearing before the hearing officers or any legal proceeding | ||||||
23 | and shall be prima facie proof of the information contained | ||||||
24 | therein.
The Office of the Attorney General shall prosecute | ||||||
25 | all criminal violations of this Act or rules adopted under | ||||||
26 | this Act. |
| |||||||
| |||||||
1 | (4) To provide for the establishment and collection of | ||||||
2 | all license and certification fees and taxes imposed by | ||||||
3 | this Act and the rules adopted under this Act. All such | ||||||
4 | fees and taxes shall be deposited into the State Gaming | ||||||
5 | Fund. | ||||||
6 | (5) To develop and enforce testing, audit, and | ||||||
7 | certification requirements and schedules for Internet | ||||||
8 | gaming platforms, Internet gaming skins, Internet | ||||||
9 | wagering, and Internet wagering accounts, including, | ||||||
10 | without limitation, age and identification verification | ||||||
11 | software, geolocation software, Internet games, and gaming | ||||||
12 | hub software. | ||||||
13 | (6) To develop and enforce requirements for | ||||||
14 | responsible gaming and player protection, including | ||||||
15 | privacy and confidentiality standards and duties. | ||||||
16 | (7) To develop and enforce requirements for accepting | ||||||
17 | Internet wagers, Internet wagering accounts, and | ||||||
18 | authorized participants and minimum insurance | ||||||
19 | requirements. | ||||||
20 | (8) To develop and promote standards governing | ||||||
21 | contracts between Internet gaming licensees and the | ||||||
22 | payments industry. | ||||||
23 | (9) To develop and enforce standards and requirements | ||||||
24 | regarding anti-fraud, anti-money laundering, and | ||||||
25 | anti-collusion methods. | ||||||
26 | (10) To develop protocols related to the security of |
| |||||||
| |||||||
1 | and disputes arising over Internet wagers and Internet | ||||||
2 | wagering accounts. | ||||||
3 | (11) To be present through its inspectors and agents | ||||||
4 | upon the premises of any location where Internet gaming | ||||||
5 | operations are conducted by an Internet gaming licensee or | ||||||
6 | where components of an Internet gaming licensee's Internet | ||||||
7 | gaming platform are located, housed, or otherwise | ||||||
8 | maintained. | ||||||
9 | (12) To adopt by rule a code of conduct governing | ||||||
10 | Division employees that ensures, to the maximum extent | ||||||
11 | possible, that persons subject to this Act avoid | ||||||
12 | situations, relationships, or associations that may | ||||||
13 | represent or lead to an actual or perceived conflict of | ||||||
14 | interest. | ||||||
15 | (13) To develop and administer civil penalties for | ||||||
16 | Internet gaming licensees and Internet gaming vendors who | ||||||
17 | violate this Act or the rules adopted under this Act. | ||||||
18 | (14) To audit and inspect, on reasonable notice, books | ||||||
19 | and records relevant to Internet gaming operations, | ||||||
20 | Internet wagers, Internet wagering accounts, Internet | ||||||
21 | gaming skins, Internet games, or Internet gaming | ||||||
22 | platforms, including, without limitation, those books and | ||||||
23 | records regarding financing or accounting, marketing or | ||||||
24 | operational materials, or any other such materials held by | ||||||
25 | or in the custody of any Internet gaming licensee or | ||||||
26 | Internet gaming vendor. The Division may assert such |
| |||||||
| |||||||
1 | authority by administrative subpoena, which may further | ||||||
2 | set forth relevant document requests and interrogatories | ||||||
3 | and which shall be enforceable in the Circuit Court of Cook | ||||||
4 | County in the State of Illinois. | ||||||
5 | (15) To determine whether an Internet game is a | ||||||
6 | fee-based game or non-fee-based game. | ||||||
7 | (16) To acquire or lease real property and make | ||||||
8 | improvements thereon and acquire by lease or by purchase | ||||||
9 | personal property, including, but not limited to: | ||||||
10 | (A) computer hardware; | ||||||
11 | (B) mechanical, electronic, and online equipment | ||||||
12 | and terminals; and | ||||||
13 | (C) intangible property, including, but not | ||||||
14 | limited to, computer programs, software, and systems. | ||||||
15 | (17) To adopt rules for the purpose of administering | ||||||
16 | the provisions of this Act and to prescribe rules and | ||||||
17 | conditions under which all Internet gaming in the State | ||||||
18 | shall be conducted. Such rules are to provide for the | ||||||
19 | prevention of practices detrimental to the public interest | ||||||
20 | and for the best interests of Internet gaming, including | ||||||
21 | rules (i) regarding the inspection of licensees and the | ||||||
22 | review of any permits or licenses necessary to operate | ||||||
23 | under any applicable laws or rules, (ii) to impose | ||||||
24 | penalties for violations of this Act and its rules, and | ||||||
25 | (iii) establishing standards for advertising of Internet | ||||||
26 | gaming. |
| |||||||
| |||||||
1 | (b) The Division shall adopt and enforce such rules | ||||||
2 | governing the administration and conduct of Internet gaming as | ||||||
3 | it deems necessary to carry out the purpose of this Act. These | ||||||
4 | rules shall be subject to the provisions of the Illinois | ||||||
5 | Administrative Procedure Act and may include, but shall not be | ||||||
6 | limited to: | ||||||
7 | (1) the types of Internet games to be offered; | ||||||
8 | (2) price points for Internet games; | ||||||
9 | (3) player fees and percentage of rake commission or | ||||||
10 | other fee for Internet games; | ||||||
11 | (4) forms of payment accepted for Internet games; | ||||||
12 | (5) the number, type, and amount of prizes for Internet | ||||||
13 | games; | ||||||
14 | (6) the method of selecting winners and validating | ||||||
15 | winnings; | ||||||
16 | (7) the frequency of Internet games; | ||||||
17 | (8) responsible gaming; | ||||||
18 | (9) technical and financial standards for Internet | ||||||
19 | wagering, Internet wagering accounts, and Internet gaming | ||||||
20 | platforms, systems, and software or other electronic | ||||||
21 | components for Internet gaming; and | ||||||
22 | (10) such other matters necessary or desirable for the | ||||||
23 | efficient and economical operation and administration of | ||||||
24 | Internet gaming and for the convenience of authorized | ||||||
25 | Internet gaming participants and Internet gaming licensees | ||||||
26 | and certified Internet gaming vendors.
|
| |||||||
| |||||||
1 | (c) Notwithstanding any law to the contrary, the Board | ||||||
2 | shall hire an Executive Director of the Division for a 5-year | ||||||
3 | term who shall be responsible to the Board and shall serve | ||||||
4 | subject only to removal by the Board for incompetence, neglect | ||||||
5 | of duty, or malfeasance in office. The Executive Director shall | ||||||
6 | be responsible for the supervision and direction of the | ||||||
7 | Division staff and for the necessary administrative activities | ||||||
8 | of the Division, subject only to the direction and approval of | ||||||
9 | the Board notwithstanding any law to the contrary. | ||||||
10 | Notwithstanding any law to the contrary, the Executive | ||||||
11 | Director shall hire and employ employees as may be necessary to | ||||||
12 | carry out the provisions of this Act or to perform the duties | ||||||
13 | and exercise the powers conferred by law upon the Division. All | ||||||
14 | employees of the Division shall receive the compensation fixed | ||||||
15 | by the Executive Director, and approved by the Board. The | ||||||
16 | Board, Executive Director, and Division employees shall be | ||||||
17 | reimbursed for all actual and necessary traveling and other | ||||||
18 | expenses and disbursements necessarily incurred or made by them | ||||||
19 | in the discharge of their official duties. The Board and | ||||||
20 | Executive Director may also incur necessary expenses for office | ||||||
21 | space, furniture, stationery, printing, operations, and other | ||||||
22 | incidental expenses. | ||||||
23 | The Executive Director shall report monthly to the Gaming | ||||||
24 | Board a full and complete statement of Internet gaming | ||||||
25 | revenues, other expenses for each month, and the amounts to be | ||||||
26 | transferred to the State Gaming Fund in accordance with this |
| |||||||
| |||||||
1 | Act. The Executive Director shall also make an annual report, | ||||||
2 | which shall include a full and complete statement of Internet | ||||||
3 | gaming revenues and other expenses, that shall be publicly | ||||||
4 | disclosed on the Board's Internet website. All reports required | ||||||
5 | by this subsection shall be public, and copies of all such | ||||||
6 | reports shall be sent to the Speaker of the House of | ||||||
7 | Representatives, the President of the Senate, the Minority | ||||||
8 | Leader of the House of Representatives, and the Minority Leader | ||||||
9 | of the Senate. | ||||||
10 | The Executive Director shall apprise himself or herself of: | ||||||
11 | (i) the operation and the administration of similar Internet | ||||||
12 | gaming laws that may be in effect in other states or countries; | ||||||
13 | (ii) any relevant literature on Internet gaming that from time | ||||||
14 | to time may be published or available; (iii) any federal laws | ||||||
15 | and regulations that may affect the operation of Internet | ||||||
16 | gaming; and (iv) the reaction of Illinois citizens to existing | ||||||
17 | and potential features of Internet gaming with a view to | ||||||
18 | recommending or effecting changes that will tend to serve the | ||||||
19 | purposes of this Act.
| ||||||
20 | Section 5-40. Internet gaming skins.
Each internet gaming | ||||||
21 | licensee shall be limited to not more than 2 Internet gaming | ||||||
22 | skins, each of which must reflect a brand owned by the licensee | ||||||
23 | or any affiliate of the licensee in the United States. | ||||||
24 | As used in this Section, "affiliate" means a person that | ||||||
25 | directly, or indirectly through one or more intermediaries, |
| |||||||
| |||||||
1 | controls, is controlled by, or is under common control with a | ||||||
2 | licensee.
| ||||||
3 | Section 5-45. Place of public accommodation. | ||||||
4 | (a) No organization or commercial enterprise shall operate | ||||||
5 | a place of public accommodation, club, including a club or | ||||||
6 | association limited to dues-paying members or similar | ||||||
7 | restricted groups, or similar establishment in which computer | ||||||
8 | terminals or similar access devices are advertised or made | ||||||
9 | available to be used principally for the purpose of accessing | ||||||
10 | Internet games. No holder of (i) an owners license issued under | ||||||
11 | the Riverboat Gambling Act or (ii) an organization license or | ||||||
12 | advance deposit wagering license under the Illinois Horse | ||||||
13 | Racing Act of 1975 shall offer or make available computer | ||||||
14 | terminals or similar access devices to be used principally for | ||||||
15 | the purpose of accessing Internet games within the premises of | ||||||
16 | such license holder. | ||||||
17 | (b) Nothing in this Section shall be construed:
| ||||||
18 | (1) to require the owner or operator of a hotel or | ||||||
19 | motel or other public place of general use in this State to | ||||||
20 | prohibit or block guests from playing Internet games; or | ||||||
21 | (2) to require an Internet gaming license holder to | ||||||
22 | prohibit authorized participants within the premises of | ||||||
23 | the license holder from playing Internet games.
| ||||||
24 | Section 5-50. Age verification and responsible gaming. |
| |||||||
| |||||||
1 | (a) An Internet gaming licensee's Internet gaming platform | ||||||
2 | shall provide one or more mechanisms to reasonably verify that | ||||||
3 | a participant is 21 years of age or older and that wagering on | ||||||
4 | Internet games is limited to transactions that are initiated | ||||||
5 | and received or otherwise made exclusively within the State of | ||||||
6 | Illinois. A participant must satisfy the verification | ||||||
7 | requirements before he or she may establish an Internet gaming | ||||||
8 | account and wager on Internet games offered by Internet gaming | ||||||
9 | licensees. All servers on which any Internet games are operated | ||||||
10 | and conducted, and all underlying material technology, shall be | ||||||
11 | located in the State of Illinois, unless the Division has | ||||||
12 | otherwise authorized another location, which the Division may | ||||||
13 | so authorize in its discretion if it maintains the ability to | ||||||
14 | access or obtain all relevant data from such servers in such | ||||||
15 | manner as it may specify. At such a time that a legally | ||||||
16 | compliant mechanism is established to permit wagering on | ||||||
17 | Internet games by individuals physically located outside of the | ||||||
18 | State, the Division may adopt rules and procedures to allow and | ||||||
19 | govern wagering by those individuals and shall have the | ||||||
20 | authority to enter into multijurisdictional agreements and | ||||||
21 | related and ancillary agreements in order to effectuate such | ||||||
22 | wagering. An Internet gaming licensee's Internet gaming | ||||||
23 | platform shall also provide mechanisms designed to detect and | ||||||
24 | prevent the unauthorized use of Internet wagering accounts and | ||||||
25 | to detect and prevent fraud, money laundering, and collusion. | ||||||
26 | If a participant in Internet gaming violates any provision of |
| |||||||
| |||||||
1 | this Act or rule adopted by the Division, then the | ||||||
2 | participant's winnings shall be forfeited. Forfeited winnings | ||||||
3 | shall be deposited into the State Gaming Fund. | ||||||
4 | The following persons shall not be authorized to establish | ||||||
5 | Internet gaming accounts or wager on Internet games offered by | ||||||
6 | Internet gaming licensees, except where required and | ||||||
7 | authorized by the Division for testing purposes or to otherwise | ||||||
8 | fulfill the purposes set forth in this Act: (i) a minor under | ||||||
9 | 21 years of age; (ii) a current member of the Lottery Control | ||||||
10 | Board; (iii) a current officer or other person employed by the | ||||||
11 | Department of the Lottery, the Division of Internet Gaming, the | ||||||
12 | Illinois Racing Board, or the Illinois Gaming Board; (iv) a | ||||||
13 | spouse, civil union partner, child, brother, sister, or parent | ||||||
14 | residing as a member of the same household in the principal | ||||||
15 | place of abode of any persons identified in (ii) or (iii); and | ||||||
16 | (iv) an individual whose name appears in the Division's | ||||||
17 | responsible gaming database. | ||||||
18 | (b) The Division shall develop responsible gaming | ||||||
19 | measures, including a statewide responsible gaming database | ||||||
20 | identifying individuals who shall be prohibited from | ||||||
21 | establishing an Internet wagering account or participating in | ||||||
22 | Internet gaming offered by an Internet gaming licensee. The | ||||||
23 | Executive Director may place a person on the responsible gaming | ||||||
24 | database if that person (i) has been convicted in any | ||||||
25 | jurisdiction of a felony or a crime involving gaming; (ii) has | ||||||
26 | violated this Act, the Illinois Horse Racing Act of 1975, the |
| |||||||
| |||||||
1 | Riverboat Gambling Act, the Raffles and Poker Runs Act, the | ||||||
2 | Illinois Pull Tabs and Jar Games Act, the Bingo License and Tax | ||||||
3 | Act, the Charitable Games Act, or the Video Gaming Act; (iii) | ||||||
4 | has performed any act or had a notorious or unsavory reputation | ||||||
5 | that would adversely affect public confidence and trust in | ||||||
6 | gaming; or (iv) has his or her name on any valid and current | ||||||
7 | exclusion list from another jurisdiction in the United States | ||||||
8 | or foreign jurisdiction. By rule, the Division shall adopt | ||||||
9 | procedures for the establishment and maintenance of the | ||||||
10 | responsible gaming database. The Illinois Gaming Board and the | ||||||
11 | Illinois Racing Board, in a format specified by the Division, | ||||||
12 | provide the Division with names of individuals to be included | ||||||
13 | in the responsible gaming database. The Division may impose | ||||||
14 | reasonable fees on persons authorized to access and use the | ||||||
15 | responsible gaming database. | ||||||
16 | An Internet gaming licensee's Internet gaming platform | ||||||
17 | shall offer in a clear, conspicuous, and accessible manner, | ||||||
18 | responsible gambling services and technical controls to | ||||||
19 | participants, including both temporary and permanent | ||||||
20 | self-exclusion for all games offered; the ability for | ||||||
21 | participants to establish their own periodic deposit and | ||||||
22 | wagering limits and maximum playing times; referrals to crisis | ||||||
23 | counseling and referral services for individuals and families | ||||||
24 | experiencing difficulty as a result of problem or compulsive | ||||||
25 | gambling; and other services as the Division reasonably may | ||||||
26 | determine are necessary or appropriate to reduce and prevent |
| |||||||
| |||||||
1 | problem gambling. Any authorized participant who is allowed to | ||||||
2 | participate in Internet gaming may voluntarily prohibit | ||||||
3 | themselves from establishing an Internet gaming account. The | ||||||
4 | Division shall incorporate the voluntary self-exclusion list | ||||||
5 | into the responsible gaming database and maintain both the | ||||||
6 | self-exclusion list and the responsible gaming database in a | ||||||
7 | confidential manner. Notwithstanding any law to the contrary, | ||||||
8 | the self-exclusion list and responsible gaming database are not | ||||||
9 | public records subject to copying and disclosure under the | ||||||
10 | Freedom of Information Act. | ||||||
11 | (c) There is created the Responsible Internet Gaming | ||||||
12 | Advisory Board to make recommendations to the Executive | ||||||
13 | Director regarding the development of rules and procedures to | ||||||
14 | reduce and prevent problem or compulsive gambling and youth | ||||||
15 | gambling and to ensure the conduct of safe, fair, and | ||||||
16 | responsible Internet gaming. The Advisory Board shall consist | ||||||
17 | of the following members: | ||||||
18 | (1) the Chairman of the Illinois Gaming Board, who | ||||||
19 | shall be an ex officio member and shall serve as | ||||||
20 | Chairperson; | ||||||
21 | (2) the Executive Director of the Division of Internet | ||||||
22 | Gaming, who shall be an ex officio member; | ||||||
23 | (3) one representative from a national organization | ||||||
24 | dedicated to the study and prevention of problem gambling, | ||||||
25 | appointed by the Board; | ||||||
26 | (4) one member who is an academic professional engaged |
| |||||||
| |||||||
1 | in the study of problem gambling at a university or other | ||||||
2 | institution of higher learning, appointed by the Board; | ||||||
3 | (5) one member who has professional experience and | ||||||
4 | expertise in the field of technical and systemic controls | ||||||
5 | for responsible Internet gaming, appointed by the Board; | ||||||
6 | and | ||||||
7 | (6) one member who is an Illinois citizen and a member | ||||||
8 | of the public, appointed by the Board.
| ||||||
9 | Each Advisory Board member shall serve for a term of 4 | ||||||
10 | years and until his or her successor is appointed and | ||||||
11 | qualified. However, in making initial appointments, 2 shall be | ||||||
12 | appointed to serve for 2 years and 2 shall be appointed to | ||||||
13 | serve for 4 years. Appointments to fill vacancies shall be made | ||||||
14 | in the same manner as original appointments for the unexpired | ||||||
15 | portion of the vacated term. Initial terms shall begin on the | ||||||
16 | effective date of this Act. Each member of the Advisory Board | ||||||
17 | shall be eligible for reappointment at the discretion of the | ||||||
18 | Board. A member of the Advisory Board may be removed from | ||||||
19 | office for just cause. Advisory Board members shall receive no | ||||||
20 | compensation, but shall be reimbursed for expenses incurred in | ||||||
21 | connection with their duties as Advisory Board members. | ||||||
22 | Four members shall constitute a quorum. A majority vote of | ||||||
23 | the Advisory Board is required for an Advisory Board decision. | ||||||
24 | The Advisory Board shall meet no less often than once every 6 | ||||||
25 | months and shall meet as often as the Chairperson deems | ||||||
26 | necessary. Advisory Board members shall not be liable for any |
| |||||||
| |||||||
1 | of their acts, omissions, decisions, or any other conduct in | ||||||
2 | connection with their duties on the Advisory Board, except | ||||||
3 | those involving willful, wanton, or intentional misconduct. | ||||||
4 | The Advisory Board may have such powers as may be granted | ||||||
5 | by the Executive Director to carry out the provisions of this | ||||||
6 | Act regarding responsible Internet gaming.
| ||||||
7 | Section 5-55. Tax rate and distribution. | ||||||
8 | (a) Except as otherwise provided in this subsection (a), a | ||||||
9 | tax is hereby imposed on Internet gaming licensees, based on | ||||||
10 | the gross gaming revenue received by an Internet gaming | ||||||
11 | licensee from Internet games authorized under this Act, at the | ||||||
12 | rate of 15% of annual gross gaming revenue for all fee-based | ||||||
13 | games and all non-fee-based games. | ||||||
14 | The taxes imposed by this Section shall be paid by the | ||||||
15 | Internet gaming licensee to the Division no later than 5:00 | ||||||
16 | p.m. on the day after the day when the wagers were made. | ||||||
17 | In recognition of the advance tax revenue paid by the | ||||||
18 | Internet gaming licensee in its license fee, an Internet gaming | ||||||
19 | licensee shall be taxed at the following rates during the | ||||||
20 | initial 5-year license term: | ||||||
21 | (1) for all non-fee-based games, the tax shall be 10% | ||||||
22 | of annual gross non-fee-based gaming revenue up to and | ||||||
23 | including $100,000,000 of gross gaming revenue and 15% of | ||||||
24 | annual gross non-fee-based gaming revenue in excess | ||||||
25 | $100,000,000 of gross gaming revenue; and |
| |||||||
| |||||||
1 | (2) for all fee-based games, the tax shall be 10% of | ||||||
2 | annual gross fee-based gaming revenue up to and | ||||||
3 | $100,000,000 of gross gaming revenue and 15% of annual | ||||||
4 | gross fee-based gaming revenue in excess $100,000,000 of | ||||||
5 | gross gaming revenue. | ||||||
6 | (b) $10,000,000 from the tax revenue deposited in the State | ||||||
7 | Gaming Fund under this Act shall be paid annually to the | ||||||
8 | Department of Human Services for the administration of programs | ||||||
9 | to treat problem gambling. | ||||||
10 | (c) From the tax revenue deposited into the State Gaming | ||||||
11 | Fund under this Act, 5% shall be transferred into the Depressed | ||||||
12 | Communities Economic Development Fund annually. | ||||||
13 | (d) After the amounts specified in subsections (b) and (c) | ||||||
14 | have been paid or transferred, all remaining tax revenue | ||||||
15 | deposited in the State Gaming Fund in accordance with this Act | ||||||
16 | shall be transferred in equal parts to the Pension | ||||||
17 | Stabilization Fund and Education Assistance Fund.
| ||||||
18 | Section 5-57. Horse racing Internet purse distributions. | ||||||
19 | (a) Each Internet gaming licensee holding an Internet | ||||||
20 | gaming license because of an organization license or advance | ||||||
21 | deposit wagering license awarded by the Illinois Racing Board | ||||||
22 | shall timely make purse distributions in the total amount | ||||||
23 | stipulated in the contract signed by the applicable horsemen | ||||||
24 | association. That total amount shall be divided as follows: | ||||||
25 | (1) 31% of the moneys to organization licensees |
| |||||||
| |||||||
1 | conducting standardbred racing, distributed pro rata based | ||||||
2 | on racing days awarded by the Illinois Racing Board. | ||||||
3 | (2) 69% of the moneys to organization licensees | ||||||
4 | conducting thoroughbred racing, distributed pro rata based | ||||||
5 | on racing days awarded by the Illinois Racing Board. | ||||||
6 | (b) The purse distributions are not tax proceeds nor | ||||||
7 | property of the State.
| ||||||
8 | Section 5-60. Applicability of the Riverboat Gambling Act | ||||||
9 | and the Uniform Penalty and Interest Act. The provisions of the | ||||||
10 | Riverboat Gambling Act, and all rules adopted thereunder, shall | ||||||
11 | apply to the Internet Gaming Act, except where there is a | ||||||
12 | conflict between the 2 Acts. All provisions of the Uniform | ||||||
13 | Penalty and Interest Act shall apply, as far as practicable, to | ||||||
14 | the subject matter of this Act to the same extent as if such | ||||||
15 | provisions were included herein.
| ||||||
16 | Section 5-65. Rulemaking. The Board shall adopt emergency | ||||||
17 | rules to administer this Act in accordance with Section 5-45 of | ||||||
18 | the Illinois Administrative Procedure Act. For the purposes of | ||||||
19 | the Illinois Administrative Procedure Act, the General | ||||||
20 | Assembly finds that the adoption of rules to implement this Act | ||||||
21 | is deemed an emergency and necessary to the public interest, | ||||||
22 | safety, and welfare.
| ||||||
23 | Article 90. Amendatory Provisions |
| |||||||
| |||||||
1 | Section 90-5. The State Finance Act is amended by adding | ||||||
2 | Section 5.878 as follows:
| ||||||
3 | (30 ILCS 105/5.878 new) | ||||||
4 | Sec. 5.878. The Depressed Communities Economic Development | ||||||
5 | Fund.
| ||||||
6 | Section 90-10. The Department of Commerce and Economic | ||||||
7 | Opportunity Law of the
Civil Administrative Code of Illinois is | ||||||
8 | amended by adding Section 605-530 as follows:
| ||||||
9 | (20 ILCS 605/605-530 new) | ||||||
10 | Sec. 605-530. The Depressed Communities Economic | ||||||
11 | Development Board. | ||||||
12 | (a) The Depressed Communities Economic Development Board | ||||||
13 | is created as an advisory board within the Department of | ||||||
14 | Commerce and Economic Opportunity. The Board shall consist of | ||||||
15 | the following members: | ||||||
16 | (1) 2 members appointed by the Governor, one of whom | ||||||
17 | shall be appointed to serve an initial term of one year and | ||||||
18 | 2 of whom shall be appointed to serve an initial term of 2 | ||||||
19 | years; | ||||||
20 | (2) 2 members appointed by the Speaker of the House of | ||||||
21 | Representatives, one of whom shall be appointed to serve an | ||||||
22 | initial term of one year and one of whom shall be appointed |
| |||||||
| |||||||
1 | to serve an initial term of 2 years; | ||||||
2 | (3) 2 members appointed by the President of the Senate, | ||||||
3 | one of whom shall be appointed to serve an initial term of | ||||||
4 | one year and one of whom shall be appointed to serve an | ||||||
5 | initial term of 2 years; | ||||||
6 | (4) 2 members appointed by the Minority Leader of the | ||||||
7 | House of Representatives, one of whom shall be appointed to | ||||||
8 | serve an initial term of one year and one of whom shall be | ||||||
9 | appointed to serve an initial term of 2 years; and | ||||||
10 | (5) 2 members appointed by the Minority Leader of the | ||||||
11 | Senate, one of whom shall be appointed to serve an initial | ||||||
12 | term of one year and one of whom shall be appointed to | ||||||
13 | serve an initial term of 2 years. | ||||||
14 | The members of the Board shall elect a member to serve as | ||||||
15 | chair of the Board. The members of the Board shall reflect the | ||||||
16 | composition of the Illinois population with regard to ethnic | ||||||
17 | and racial composition. | ||||||
18 | After the initial terms, each member shall be appointed to | ||||||
19 | serve a term of 2 years and until his or her successor has been | ||||||
20 | appointed and assumes office. If a vacancy occurs in the Board | ||||||
21 | membership, then the vacancy shall be filled in the same manner | ||||||
22 | as the initial appointment. No member of the Board shall, at | ||||||
23 | the time of his or her appointment or within 2 years before the | ||||||
24 | appointment, hold elected office or be appointed to a State | ||||||
25 | board, commission, or agency. All Board members are subject to | ||||||
26 | the State Officials and Employees Ethics Act. |
| |||||||
| |||||||
1 | (b) Board members shall serve without compensation, but may | ||||||
2 | be reimbursed for their reasonable travel expenses from funds | ||||||
3 | available for that purpose. The Department of Commerce and | ||||||
4 | Economic Opportunity shall provide staff and administrative | ||||||
5 | support services to the Board. | ||||||
6 | (c) The Board must make recommendations, which must be | ||||||
7 | approved by a majority of the Board, to the Department of | ||||||
8 | Commerce and Economic Opportunity concerning the award of | ||||||
9 | grants from amounts appropriated to the Department from the | ||||||
10 | Depressed Communities Economic Development Fund, a special | ||||||
11 | fund created in the State treasury. The Department must make | ||||||
12 | grants to public or private entities submitting proposals to | ||||||
13 | the Board to revitalize an Illinois depressed community. Grants | ||||||
14 | may be used by these entities only for those purposes | ||||||
15 | conditioned with the grant. For the purposes of this subsection | ||||||
16 | (c), plans for revitalizing an Illinois depressed community | ||||||
17 | include plans intended to curb high levels of poverty, | ||||||
18 | unemployment, job and population loss, and general distress. An | ||||||
19 | Illinois depressed community is an area where the poverty rate, | ||||||
20 | as determined by using the most recent data released by the | ||||||
21 | United States Census Bureau, is at least 3% greater than the | ||||||
22 | State poverty rate as determined by using the most recent data | ||||||
23 | released by the United States Census Bureau.
| ||||||
24 | Section 90-15. The Criminal Code of 2012 is amended by | ||||||
25 | changing Sections 28-1, 28-1.1, 28-3,
and 28-5 as follows:
|
| |||||||
| |||||||
1 | (720 ILCS 5/28-1) (from Ch. 38, par. 28-1)
| ||||||
2 | Sec. 28-1. Gambling.
| ||||||
3 | (a) A person commits gambling when he or she:
| ||||||
4 | (1) knowingly plays a game of chance or skill for money | ||||||
5 | or other thing of
value, unless excepted in subsection (b) | ||||||
6 | of this Section;
| ||||||
7 | (2) knowingly makes a wager upon the result of any | ||||||
8 | game, contest, or any
political nomination, appointment or | ||||||
9 | election;
| ||||||
10 | (3) knowingly operates, keeps, owns, uses, purchases, | ||||||
11 | exhibits, rents, sells,
bargains for the sale or lease of, | ||||||
12 | manufactures or distributes any
gambling device;
| ||||||
13 | (4) contracts to have or give himself or herself or | ||||||
14 | another the option to buy
or sell, or contracts to buy or | ||||||
15 | sell, at a future time, any grain or
other commodity | ||||||
16 | whatsoever, or any stock or security of any company,
where | ||||||
17 | it is at the time of making such contract intended by both | ||||||
18 | parties
thereto that the contract to buy or sell, or the | ||||||
19 | option, whenever
exercised, or the contract resulting | ||||||
20 | therefrom, shall be settled, not by
the receipt or delivery | ||||||
21 | of such property, but by the payment only of
differences in | ||||||
22 | prices thereof; however, the issuance, purchase, sale,
| ||||||
23 | exercise, endorsement or guarantee, by or through a person | ||||||
24 | registered
with the Secretary of State pursuant to Section | ||||||
25 | 8 of the Illinois
Securities Law of 1953, or by or through |
| |||||||
| |||||||
1 | a person exempt from such
registration under said Section | ||||||
2 | 8, of a put, call, or other option to
buy or sell | ||||||
3 | securities which have been registered with the Secretary of
| ||||||
4 | State or which are exempt from such registration under | ||||||
5 | Section 3 of the
Illinois Securities Law of 1953 is not | ||||||
6 | gambling within the meaning of
this paragraph (4);
| ||||||
7 | (5) knowingly owns or possesses any book, instrument or | ||||||
8 | apparatus by
means of which bets or wagers have been, or | ||||||
9 | are, recorded or registered,
or knowingly possesses any | ||||||
10 | money which he has received in the course of
a bet or | ||||||
11 | wager;
| ||||||
12 | (6) knowingly sells pools upon the result of any game | ||||||
13 | or contest of skill or
chance, political nomination, | ||||||
14 | appointment or election;
| ||||||
15 | (7) knowingly sets up or promotes any lottery or sells, | ||||||
16 | offers to sell or
transfers any ticket or share for any | ||||||
17 | lottery;
| ||||||
18 | (8) knowingly sets up or promotes any policy game or | ||||||
19 | sells, offers to sell or
knowingly possesses or transfers | ||||||
20 | any policy ticket, slip, record,
document or other similar | ||||||
21 | device;
| ||||||
22 | (9) knowingly drafts, prints or publishes any lottery | ||||||
23 | ticket or share,
or any policy ticket, slip, record, | ||||||
24 | document or similar device, except for
such activity | ||||||
25 | related to lotteries, bingo games and raffles authorized by
| ||||||
26 | and conducted in accordance with the laws of Illinois or |
| |||||||
| |||||||
1 | any other state or
foreign government;
| ||||||
2 | (10) knowingly advertises any lottery or policy game, | ||||||
3 | except for such
activity related to lotteries, bingo games | ||||||
4 | and raffles authorized by and
conducted in accordance with | ||||||
5 | the laws of Illinois or any other state;
| ||||||
6 | (11) knowingly transmits information as to wagers, | ||||||
7 | betting odds, or
changes in betting odds by telephone, | ||||||
8 | telegraph, radio, semaphore or
similar means; or knowingly | ||||||
9 | installs or maintains equipment for the
transmission or | ||||||
10 | receipt of such information; except that nothing in this
| ||||||
11 | subdivision (11) prohibits transmission or receipt of such | ||||||
12 | information
for use in news reporting of sporting events or | ||||||
13 | contests; or
| ||||||
14 | (12) knowingly establishes, maintains, or operates an | ||||||
15 | Internet site that
permits a person to play a game of
| ||||||
16 | chance or skill for money or other thing of value by means | ||||||
17 | of the Internet or
to make a wager upon the
result of any | ||||||
18 | game, contest, political nomination, appointment, or
| ||||||
19 | election by means of the Internet. This item (12) does not | ||||||
20 | apply to activities referenced in items (6) , and (6.1) , | ||||||
21 | (15), or (16) of subsection (b) of this Section.
| ||||||
22 | (b) Participants in any of the following activities shall | ||||||
23 | not be
convicted of gambling:
| ||||||
24 | (1) Agreements to compensate for loss caused by the | ||||||
25 | happening of
chance including without limitation contracts | ||||||
26 | of indemnity or guaranty
and life or health or accident |
| |||||||
| |||||||
1 | insurance.
| ||||||
2 | (2) Offers of prizes, award or compensation to the | ||||||
3 | actual
contestants in any bona fide contest for the | ||||||
4 | determination of skill,
speed, strength or endurance or to | ||||||
5 | the owners of animals or vehicles
entered in such contest.
| ||||||
6 | (3) Pari-mutuel betting as authorized by the law of | ||||||
7 | this State.
| ||||||
8 | (4) Manufacture of gambling devices, including the | ||||||
9 | acquisition of
essential parts therefor and the assembly | ||||||
10 | thereof, for transportation in
interstate or foreign | ||||||
11 | commerce to any place outside this State when such
| ||||||
12 | transportation is not prohibited by any applicable Federal | ||||||
13 | law; or the
manufacture, distribution, or possession of | ||||||
14 | video gaming terminals, as
defined in the Video Gaming Act, | ||||||
15 | by manufacturers, distributors, and
terminal operators | ||||||
16 | licensed to do so under the Video Gaming Act.
| ||||||
17 | (5) The game commonly known as "bingo", when conducted | ||||||
18 | in accordance
with the Bingo License and Tax Act.
| ||||||
19 | (6) Lotteries when conducted by the State of Illinois | ||||||
20 | in accordance
with the Illinois Lottery Law. This exemption | ||||||
21 | includes any activity conducted by the Department of | ||||||
22 | Revenue to sell lottery tickets pursuant to the provisions | ||||||
23 | of the Illinois Lottery Law and its rules.
| ||||||
24 | (6.1) The purchase of lottery tickets through the | ||||||
25 | Internet for a lottery conducted by the State of Illinois | ||||||
26 | under the program established in Section 7.12 of the |
| |||||||
| |||||||
1 | Illinois Lottery Law.
| ||||||
2 | (7) Possession of an antique slot machine that is | ||||||
3 | neither used nor
intended to be used in the operation or | ||||||
4 | promotion of any unlawful
gambling activity or enterprise. | ||||||
5 | For the purpose of this subparagraph
(b)(7), an antique | ||||||
6 | slot machine is one manufactured 25 years ago or earlier.
| ||||||
7 | (8) Raffles and poker runs when conducted in accordance | ||||||
8 | with the Raffles and Poker Runs Act.
| ||||||
9 | (9) Charitable games when conducted in accordance with | ||||||
10 | the Charitable
Games Act.
| ||||||
11 | (10) Pull tabs and jar games when conducted under the | ||||||
12 | Illinois Pull
Tabs and Jar Games Act.
| ||||||
13 | (11) Gambling games conducted on riverboats when
| ||||||
14 | authorized by the Riverboat Gambling Act.
| ||||||
15 | (12) Video gaming terminal games at a licensed | ||||||
16 | establishment, licensed truck stop establishment,
licensed
| ||||||
17 | fraternal establishment, or licensed veterans | ||||||
18 | establishment when
conducted in accordance with the Video | ||||||
19 | Gaming Act. | ||||||
20 | (13) Games of skill or chance where money or other | ||||||
21 | things of value can be won but no payment or purchase is | ||||||
22 | required to participate. | ||||||
23 | (14) Savings promotion raffles authorized under | ||||||
24 | Section 5g of the Illinois Banking Act, Section 7008 of the | ||||||
25 | Savings Bank Act, Section 42.7 of the Illinois Credit Union | ||||||
26 | Act, Section 5136B of the National Bank Act (12 U.S.C. |
| |||||||
| |||||||
1 | 25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C. | ||||||
2 | 1463). | ||||||
3 | (15) Interactive fantasy sports contests and | ||||||
4 | participation in interactive fantasy sports contests | ||||||
5 | authorized under the Fantasy Sports Contest Act. | ||||||
6 | (16) Internet wagering when conducted in accordance | ||||||
7 | with the Internet Gaming Act. | ||||||
8 | (c) Sentence.
| ||||||
9 | Gambling is a
Class A misdemeanor. A second or
subsequent | ||||||
10 | conviction under subsections (a)(3) through (a)(12),
is a Class | ||||||
11 | 4 felony.
| ||||||
12 | (d) Circumstantial evidence.
| ||||||
13 | In prosecutions under
this
Section circumstantial evidence | ||||||
14 | shall have the same validity and weight as
in any criminal | ||||||
15 | prosecution.
| ||||||
16 | (Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16 .)
| ||||||
17 | (720 ILCS 5/28-1.1)
(from Ch. 38, par. 28-1.1)
| ||||||
18 | Sec. 28-1.1. Syndicated gambling.
| ||||||
19 | (a) Declaration of Purpose. Recognizing the close | ||||||
20 | relationship between
professional gambling and other organized | ||||||
21 | crime, it is declared to be the
policy of the legislature to | ||||||
22 | restrain persons from engaging in the business
of gambling for | ||||||
23 | profit in this State. This Section shall be liberally
construed | ||||||
24 | and administered with a view to carrying out this policy.
| ||||||
25 | (b) A person commits syndicated gambling when he or she |
| |||||||
| |||||||
1 | operates a "policy
game" or engages in the business of | ||||||
2 | bookmaking.
| ||||||
3 | (c) A person "operates a policy game" when he or she | ||||||
4 | knowingly uses any
premises or property for the purpose of | ||||||
5 | receiving or knowingly does
receive from what is commonly | ||||||
6 | called "policy":
| ||||||
7 | (1) money from a person other than the bettor or player | ||||||
8 | whose
bets or plays are represented by the money; or
| ||||||
9 | (2) written "policy game" records, made or used over | ||||||
10 | any
period of time, from a person other than the bettor or | ||||||
11 | player whose bets
or plays are represented by the written | ||||||
12 | record.
| ||||||
13 | (d) A person engages in bookmaking when he or she knowingly | ||||||
14 | receives or accepts more
than five bets or wagers upon the | ||||||
15 | result of any trials or contests of
skill, speed or power of | ||||||
16 | endurance or upon any lot, chance, casualty,
unknown or | ||||||
17 | contingent event whatsoever, which bets or wagers shall be of
| ||||||
18 | such size that the total of the amounts of money paid or | ||||||
19 | promised to be
paid to the bookmaker on account thereof shall | ||||||
20 | exceed $2,000.
Bookmaking is the receiving or accepting of bets | ||||||
21 | or wagers
regardless of the form or manner in which the | ||||||
22 | bookmaker records them.
| ||||||
23 | (e) Participants in any of the following activities shall | ||||||
24 | not be
convicted of syndicated gambling:
| ||||||
25 | (1) Agreements to compensate for loss caused by the | ||||||
26 | happening
of chance including without limitation contracts |
| |||||||
| |||||||
1 | of indemnity or
guaranty and life or health or accident | ||||||
2 | insurance;
| ||||||
3 | (2) Offers of prizes, award or compensation to the | ||||||
4 | actual
contestants in any bona fide contest for the | ||||||
5 | determination of skill,
speed, strength or endurance or to | ||||||
6 | the owners of animals or vehicles
entered in the contest;
| ||||||
7 | (3) Pari-mutuel betting as authorized by law of this | ||||||
8 | State;
| ||||||
9 | (4) Manufacture of gambling devices, including the | ||||||
10 | acquisition
of essential parts therefor and the assembly | ||||||
11 | thereof, for transportation
in interstate or foreign | ||||||
12 | commerce to any place outside this State when
the | ||||||
13 | transportation is not prohibited by any applicable Federal | ||||||
14 | law;
| ||||||
15 | (5) Raffles and poker runs when conducted in accordance | ||||||
16 | with the Raffles and Poker Runs Act;
| ||||||
17 | (6) Gambling games conducted on riverboats when
| ||||||
18 | authorized by the Riverboat Gambling Act;
| ||||||
19 | (7) Video gaming terminal games at a licensed | ||||||
20 | establishment, licensed truck stop establishment,
licensed
| ||||||
21 | fraternal establishment, or licensed veterans | ||||||
22 | establishment
when conducted in accordance with the Video | ||||||
23 | Gaming Act; and
| ||||||
24 | (8) Savings promotion raffles authorized under Section | ||||||
25 | 5g of the Illinois Banking Act, Section 7008 of the Savings | ||||||
26 | Bank Act, Section 42.7 of the Illinois Credit Union Act, |
| |||||||
| |||||||
1 | Section 5136B of the National Bank Act (12 U.S.C. 25a), or | ||||||
2 | Section 4 of the Home Owners' Loan Act (12 U.S.C. 1463) ; | ||||||
3 | and . | ||||||
4 | (9) Internet wagering when conducted in accordance | ||||||
5 | with the Internet Gaming Act. | ||||||
6 | (f) Sentence. Syndicated gambling is a Class 3 felony.
| ||||||
7 | (Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16 .)
| ||||||
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 whatsoever | ||||||
11 | used for the
purposes of gambling other than gambling conducted | ||||||
12 | in the manner authorized
by the Riverboat Gambling Act , | ||||||
13 | Internet Gaming Act, or the Video Gaming Act. Any person who
| ||||||
14 | knowingly permits any premises
or property owned or occupied by | ||||||
15 | him or under his control to be used as a
gambling place commits | ||||||
16 | a Class A misdemeanor. Each subsequent offense is a
Class 4 | ||||||
17 | felony. When any premises is determined by the circuit court to | ||||||
18 | be
a gambling place:
| ||||||
19 | (a) Such premises is a public nuisance and may be proceeded | ||||||
20 | against as such,
and
| ||||||
21 | (b) All licenses, permits or certificates issued by the | ||||||
22 | State of
Illinois or any subdivision or public agency thereof | ||||||
23 | authorizing the
serving of food or liquor on such premises | ||||||
24 | shall be void; and no license,
permit or certificate so | ||||||
25 | cancelled shall be reissued for such premises for
a period of |
| |||||||
| |||||||
1 | 60 days thereafter; nor shall any person convicted of keeping a
| ||||||
2 | gambling place be reissued such license
for one year from his | ||||||
3 | conviction and, after a second conviction of keeping
a gambling | ||||||
4 | place, any such person shall not be reissued such license, and
| ||||||
5 | (c) Such premises of any person who knowingly permits | ||||||
6 | thereon a
violation of any Section of this Article shall be | ||||||
7 | held liable for, and may
be sold to pay any unsatisfied | ||||||
8 | judgment that may be recovered and any
unsatisfied fine that | ||||||
9 | may be levied under any Section of this Article.
| ||||||
10 | (Source: P.A. 96-34, eff. 7-13-09.)
| ||||||
11 | (720 ILCS 5/28-5) (from Ch. 38, par. 28-5)
| ||||||
12 | Sec. 28-5. Seizure of gambling devices and gambling funds.
| ||||||
13 | (a) Every device designed for gambling which is incapable | ||||||
14 | of lawful use
or every device used unlawfully for gambling | ||||||
15 | shall be considered a
"gambling device", and shall be subject | ||||||
16 | to seizure, confiscation and
destruction by the Department of | ||||||
17 | State Police or by any municipal, or other
local authority, | ||||||
18 | within whose jurisdiction the same may be found. As used
in | ||||||
19 | this Section, a "gambling device" includes any slot machine, | ||||||
20 | and
includes any machine or device constructed for the | ||||||
21 | reception of money or
other thing of value and so constructed | ||||||
22 | as to return, or to cause someone
to return, on chance to the | ||||||
23 | player thereof money, property or a right to
receive money or | ||||||
24 | property. With the exception of any device designed for
| ||||||
25 | gambling which is incapable of lawful use, no gambling device |
| |||||||
| |||||||
1 | shall be
forfeited or destroyed unless an individual with a | ||||||
2 | property interest in
said device knows of the unlawful use of | ||||||
3 | the device.
| ||||||
4 | (b) Every gambling device shall be seized and forfeited to | ||||||
5 | the county
wherein such seizure occurs. Any money or other | ||||||
6 | thing of value integrally
related to acts of gambling shall be | ||||||
7 | seized and forfeited to the county
wherein such seizure occurs.
| ||||||
8 | (c) If, within 60 days after any seizure pursuant to | ||||||
9 | subparagraph
(b) of this Section, a person having any property | ||||||
10 | interest in the seized
property is charged with an offense, the | ||||||
11 | court which renders judgment
upon such charge shall, within 30 | ||||||
12 | days after such judgment, conduct a
forfeiture hearing to | ||||||
13 | determine whether such property was a gambling device
at the | ||||||
14 | time of seizure. Such hearing shall be commenced by a written
| ||||||
15 | petition by the State, including material allegations of fact, | ||||||
16 | the name
and address of every person determined by the State to | ||||||
17 | have any property
interest in the seized property, a | ||||||
18 | representation that written notice of
the date, time and place | ||||||
19 | of such hearing has been mailed to every such
person by | ||||||
20 | certified mail at least 10 days before such date, and a
request | ||||||
21 | for forfeiture. Every such person may appear as a party and
| ||||||
22 | present evidence at such hearing. The quantum of proof required | ||||||
23 | shall
be a preponderance of the evidence, and the burden of | ||||||
24 | proof shall be on
the State. If the court determines that the | ||||||
25 | seized property was
a gambling device at the time of seizure, | ||||||
26 | an order of forfeiture and
disposition of the seized property |
| |||||||
| |||||||
1 | shall be entered: a gambling device
shall be received by the | ||||||
2 | State's Attorney, who shall effect its
destruction, except that | ||||||
3 | valuable parts thereof may be liquidated and
the resultant | ||||||
4 | money shall be deposited in the general fund of the county
| ||||||
5 | wherein such seizure occurred; money and other things of value | ||||||
6 | shall be
received by the State's Attorney and, upon | ||||||
7 | liquidation, shall be
deposited in the general fund of the | ||||||
8 | county wherein such seizure
occurred. However, in the event | ||||||
9 | that a defendant raises the defense
that the seized slot | ||||||
10 | machine is an antique slot machine described in
subparagraph | ||||||
11 | (b) (7) of Section 28-1 of this Code and therefore he is
exempt | ||||||
12 | from the charge of a gambling activity participant, the seized
| ||||||
13 | antique slot machine shall not be destroyed or otherwise | ||||||
14 | altered until a
final determination is made by the Court as to | ||||||
15 | whether it is such an
antique slot machine. Upon a final | ||||||
16 | determination by the Court of this
question in favor of the | ||||||
17 | defendant, such slot machine shall be
immediately returned to | ||||||
18 | the defendant. Such order of forfeiture and
disposition shall, | ||||||
19 | for the purposes of appeal, be a final order and
judgment in a | ||||||
20 | civil proceeding.
| ||||||
21 | (d) If a seizure pursuant to subparagraph (b) of this | ||||||
22 | Section is not
followed by a charge pursuant to subparagraph | ||||||
23 | (c) of this Section, or if
the prosecution of such charge is | ||||||
24 | permanently terminated or indefinitely
discontinued without | ||||||
25 | any judgment of conviction or acquittal (1) the
State's | ||||||
26 | Attorney shall commence an in rem proceeding for the forfeiture
|
| |||||||
| |||||||
1 | and destruction of a gambling device, or for the forfeiture and | ||||||
2 | deposit
in the general fund of the county of any seized money | ||||||
3 | or other things of
value, or both, in the circuit court and (2) | ||||||
4 | any person having any
property interest in such seized gambling | ||||||
5 | device, money or other thing
of value may commence separate | ||||||
6 | civil proceedings in the manner provided
by law.
| ||||||
7 | (e) Any gambling device displayed for sale to a riverboat | ||||||
8 | gambling
operation or Internet gaming operation or used to | ||||||
9 | train occupational licensees of a riverboat gambling
operation | ||||||
10 | or Internet gaming operation as authorized under the Riverboat | ||||||
11 | Gambling Act or Internet Gaming Act is exempt from
seizure | ||||||
12 | under this Section.
| ||||||
13 | (f) Any gambling equipment, devices and supplies provided | ||||||
14 | by a licensed
supplier or licensed Internet gaming vendor in | ||||||
15 | accordance with the Riverboat Gambling Act or Internet Gaming | ||||||
16 | Act which are removed
from a the riverboat or Internet gaming | ||||||
17 | facility for repair are exempt from seizure under this Section.
| ||||||
18 | (g) The following video gaming terminals are exempt from | ||||||
19 | seizure under this Section: | ||||||
20 | (1) Video gaming terminals for sale to a licensed | ||||||
21 | distributor or operator under the Video Gaming Act. | ||||||
22 | (2) Video gaming terminals used to train licensed | ||||||
23 | technicians or licensed terminal handlers. | ||||||
24 | (3) Video gaming terminals that are removed from a | ||||||
25 | licensed establishment, licensed truck stop establishment,
| ||||||
26 | licensed
fraternal establishment, or licensed veterans |
| |||||||
| |||||||
1 | establishment for repair. | ||||||
2 | (Source: P.A. 98-31, eff. 6-24-13.)".
|