Bill Text: IL HB3136 | 2021-2022 | 102nd General Assembly | Chaptered


Bill Title: Amends the Illinois Horse Racing Act of 1975. Provides the application process for the issuance of an organization license for the standardbred racetrack in Cook County. Changes the bond requirement for an applicant for an organization license. Makes changes to the qualifications for stallions for the Illinois Standardbred Breeders Fund breeding. Amends the Illinois Gambling Act. Provides that an applicant for a suppliers license under the Act that already holds specified licenses issued by the Illinois Gaming Board is entitled to licensure as a supplier under the Act without additional Board investigation or approval, except by a vote of the Board. Provides for the term of such a license. Adds provisions concerning harmonization of supplier category licenses. Makes changes in provisions concerning the wagering tax. Amends the Raffles and Poker Runs Act. Allows raffle licenses to be issued to fire protection agencies and associations that represent fire protection officials. Defines "fire protection agency" to mean a State, local government, or intergovernmental agency vested with the duty and authority to provide public fire suppression, rescue, or emergency medical services or an organization that provides support or assistance to such an agency. Amends the Video Gaming Act. Creates a sales agent and broker license to solicit or receive business from current or potential establishments licensed under the Act. Allows a qualified fraternal organization and a qualified veterans organization that derive their charters from a national organization to apply for a license allowing video gaming if the proposed establishment meets specified criteria. Makes changes concerning the fees that may be imposed by units of government and distribution of license fees. Adds provisions concerning regulation by the State. Limits home rule powers. Amends the Sports Wagering Act. Changes the renewal period for a supplier license from one year to 4 years. Provides that beginning 4 years after issuance of the initial supplier license, a holder of a supplier license shall pay a $150,000 annual license fee. Until July 1, 2023, allows tier 1 sports wagers that are not related to an individual athlete's performance and are made in person on Illinois collegiate teams. Provides that the requirement that an individual create a sports wagering account in person at a facility to participate in sports wagering over the Internet or through a mobile application applies until the issuance of the first master sports wagering license issued to an online sports wagering operator or March 5, 2022, whichever occurs first. Makes other changes. Effective immediately.

Spectrum: Strong Partisan Bill (Democrat 21-2)

Status: (Passed) 2021-12-17 - Public Act . . . . . . . . . 102-0689 [HB3136 Detail]

Download: Illinois-2021-HB3136-Chaptered.html



Public Act 102-0689
HB3136 EnrolledLRB102 14595 SPS 19948 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Horse Racing Act of 1975 is
amended by changing Sections 19.5, 21, and 31 as follows:
(230 ILCS 5/19.5)
Sec. 19.5. Standardbred racetrack in Cook County.
Notwithstanding anything in this Act to the contrary, in
addition to organization licenses issued by the Board on the
effective date of this amendatory Act of the 101st General
Assembly, the Board shall issue an organization license
limited to standardbred racing to a racetrack located in one
of the following townships of Cook County: Bloom, Bremen,
Calumet, Orland, Rich, Thornton, or Worth. This additional
organization license shall not be issued within a 35-mile
radius of another organization license issued by the Board on
the effective date of this amendatory Act of the 101st General
Assembly, unless the person having operating control of such
racetrack has given written consent to the organization
licensee applicant, which consent must be filed with the Board
at or prior to the time application is made. The organization
license application shall be submitted to the Board and the
Board may grant the organization license at any meeting of the
Board. The Board shall examine the application within 21 days
after receipt of the application with respect to its
conformity with this Act and the rules adopted by the Board. If
the application does not comply with this Act or the rules
adopted by the Board, the application may be rejected and an
organization license refused to the applicant, or the Board
may, within 21 days after receipt of the application, advise
the applicant of the deficiencies of the application under the
Act or the rules of the Board and require the submittal of an
amended application within a reasonable time determined by the
Board; upon submittal of the amended application by the
applicant, the Board may consider the application consistent
with the process described in subsection (e-5) of Section 20.
If the application is found to be in compliance with this Act
and the rules of the Board, the Board shall then issue an
organization license to the applicant. Once the organization
license is granted, shall be granted upon application, and the
licensee shall have all of the current and future rights of
existing Illinois racetracks, including, but not limited to,
the ability to obtain an inter-track wagering license, the
ability to obtain inter-track wagering location licenses, the
ability to obtain an organization gaming license pursuant to
the Illinois Gambling Act with 1,200 gaming positions, and the
ability to offer Internet wagering on horse racing.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 5/21) (from Ch. 8, par. 37-21)
Sec. 21. (a) Applications for organization licenses must
be filed with the Board at a time and place prescribed by the
rules and regulations of the Board. The Board shall examine
the applications within 21 days after the date allowed for
filing with respect to their conformity with this Act and such
rules and regulations as may be prescribed by the Board. If any
application does not comply with this Act or the rules and
regulations prescribed by the Board, such application may be
rejected and an organization license refused to the applicant,
or the Board may, within 21 days of the receipt of such
application, advise the applicant of the deficiencies of the
application under the Act or the rules and regulations of the
Board, and require the submittal of an amended application
within a reasonable time determined by the Board; and upon
submittal of the amended application by the applicant, the
Board may consider the application consistent with the process
described in subsection (e-5) of Section 20 of this Act. If it
is found to be in compliance with this Act and the rules and
regulations of the Board, the Board may then issue an
organization license to such applicant.
(b) The Board may exercise discretion in granting racing
dates to qualified applicants different from those requested
by the applicants in their applications. However, if all
eligible applicants for organization licenses whose tracks are
located within 100 miles of each other execute and submit to
the Board a written agreement among such applicants as to the
award of racing dates, including where applicable racing
programs, for up to 3 consecutive years, then subject to
annual review of each applicant's compliance with Board rules
and regulations, provisions of this Act and conditions
contained in annual dates orders issued by the Board, the
Board may grant such dates and programs to such applicants as
so agreed by them if the Board determines that the grant of
these racing dates is in the best interests of racing. The
Board shall treat any such agreement as the agreement
signatories' joint and several application for racing dates
during the term of the agreement.
(c) Where 2 or more applicants propose to conduct horse
race meetings within 35 miles of each other, as certified to
the Board under Section 19 (a) (1) of this Act, on conflicting
dates, the Board may determine and grant the number of racing
days to be awarded to the several applicants in accordance
with the provisions of subsection (e-5) of Section 20 of this
Act.
(d) (Blank).
(e) Prior to the issuance of an organization license, the
applicant shall file with the Board the bond required in
subsection (d) of Section 27 a bond payable to the State of
Illinois in the sum of $200,000, executed by the applicant and
a surety company or companies authorized to do business in
this State, and conditioned upon the payment by the
organization licensee of all taxes due under Section 27, other
monies due and payable under this Act, all purses due and
payable, and that the organization licensee will upon
presentation of the winning ticket or tickets distribute all
sums due to the patrons of pari-mutuel pools. Beginning on the
date when any organization licensee begins conducting gaming
pursuant to an organization gaming license issued under the
Illinois Gambling Act, the amount of the bond required under
this subsection (e) shall be $500,000.
(f) Each organization license shall specify the person to
whom it is issued, the dates upon which horse racing is
permitted, and the location, place, track, or enclosure where
the horse race meeting is to be held.
(g) Any person who owns one or more race tracks within the
State may seek, in its own name, a separate organization
license for each race track.
(h) All racing conducted under such organization license
is subject to this Act and to the rules and regulations from
time to time prescribed by the Board, and every such
organization license issued by the Board shall contain a
recital to that effect.
(i) Each such organization licensee may provide that at
least one race per day may be devoted to the racing of quarter
horses, appaloosas, arabians, or paints.
(j) In acting on applications for organization licenses,
the Board shall give weight to an organization license which
has implemented a good faith affirmative action effort to
recruit, train and upgrade minorities in all classifications
within the organization license.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 5/31) (from Ch. 8, par. 37-31)
Sec. 31. (a) The General Assembly declares that it is the
policy of this State to encourage the breeding of standardbred
horses in this State and the ownership of such horses by
residents of this State in order to provide for: sufficient
numbers of high quality standardbred horses to participate in
harness racing meetings in this State, and to establish and
preserve the agricultural and commercial benefits of such
breeding and racing industries to the State of Illinois. It is
the intent of the General Assembly to further this policy by
the provisions of this Section of this Act.
(b) Each organization licensee conducting a harness racing
meeting pursuant to this Act shall provide for at least two
races each race program limited to Illinois conceived and
foaled horses. A minimum of 6 races shall be conducted each
week limited to Illinois conceived and foaled horses. No
horses shall be permitted to start in such races unless duly
registered under the rules of the Department of Agriculture.
(b-5) Organization licensees, not including the Illinois
State Fair or the DuQuoin State Fair, shall provide stake
races and early closer races for Illinois conceived and foaled
horses so that purses distributed for such races shall be no
less than 17% of total purses distributed for harness racing
in that calendar year in addition to any stakes payments and
starting fees contributed by horse owners.
(b-10) Each organization licensee conducting a harness
racing meeting pursuant to this Act shall provide an owner
award to be paid from the purse account equal to 12% of the
amount earned by Illinois conceived and foaled horses
finishing in the first 3 positions in races that are not
restricted to Illinois conceived and foaled horses. The owner
awards shall not be paid on races below the $10,000 claiming
class.
(c) Conditions of races under subsection (b) shall be
commensurate with past performance, quality and class of
Illinois conceived and foaled horses available. If, however,
sufficient competition cannot be had among horses of that
class on any day, the races may, with consent of the Board, be
eliminated for that day and substitute races provided.
(d) There is hereby created a special fund of the State
Treasury to be known as the Illinois Standardbred Breeders
Fund. Beginning on June 28, 2019 (the effective date of Public
Act 101-31), the Illinois Standardbred Breeders Fund shall
become a non-appropriated trust fund held separate and apart
from State moneys. Expenditures from this Fund shall no longer
be subject to appropriation.
During the calendar year 1981, and each year thereafter,
except as provided in subsection (g) of Section 27 of this Act,
eight and one-half per cent of all the monies received by the
State as privilege taxes on harness racing meetings shall be
paid into the Illinois Standardbred Breeders Fund.
(e) Notwithstanding any provision of law to the contrary,
amounts deposited into the Illinois Standardbred Breeders Fund
from revenues generated by gaming pursuant to an organization
gaming license issued under the Illinois Gambling Act after
June 28, 2019 (the effective date of Public Act 101-31) shall
be in addition to tax and fee amounts paid under this Section
for calendar year 2019 and thereafter. The Illinois
Standardbred Breeders Fund shall be administered by the
Department of Agriculture with the assistance and advice of
the Advisory Board created in subsection (f) of this Section.
(f) The Illinois Standardbred Breeders Fund Advisory Board
is hereby created. The Advisory Board shall consist of the
Director of the Department of Agriculture, who shall serve as
Chairman; the Superintendent of the Illinois State Fair; a
member of the Illinois Racing Board, designated by it; a
representative of the largest association of Illinois
standardbred owners and breeders, recommended by it; a
representative of a statewide association representing
agricultural fairs in Illinois, recommended by it, such
representative to be from a fair at which Illinois conceived
and foaled racing is conducted; a representative of the
organization licensees conducting harness racing meetings,
recommended by them; a representative of the Breeder's
Committee of the association representing the largest number
of standardbred owners, breeders, trainers, caretakers, and
drivers, recommended by it; and a representative of the
association representing the largest number of standardbred
owners, breeders, trainers, caretakers, and drivers,
recommended by it. Advisory Board members shall serve for 2
years commencing January 1 of each odd numbered year. If
representatives of the largest association of Illinois
standardbred owners and breeders, a statewide association of
agricultural fairs in Illinois, the association representing
the largest number of standardbred owners, breeders, trainers,
caretakers, and drivers, a member of the Breeder's Committee
of the association representing the largest number of
standardbred owners, breeders, trainers, caretakers, and
drivers, and the organization licensees conducting harness
racing meetings have not been recommended by January 1 of each
odd numbered year, the Director of the Department of
Agriculture shall make an appointment for the organization
failing to so recommend a member of the Advisory Board.
Advisory Board members shall receive no compensation for their
services as members but shall be reimbursed for all actual and
necessary expenses and disbursements incurred in the execution
of their official duties.
(g) Monies expended from the Illinois Standardbred
Breeders Fund shall be expended by the Department of
Agriculture, with the assistance and advice of the Illinois
Standardbred Breeders Fund Advisory Board for the following
purposes only:
1. To provide purses for races limited to Illinois
conceived and foaled horses at the State Fair and the
DuQuoin State Fair.
2. To provide purses for races limited to Illinois
conceived and foaled horses at county fairs.
3. To provide purse supplements for races limited to
Illinois conceived and foaled horses conducted by
associations conducting harness racing meetings.
4. No less than 75% of all monies in the Illinois
Standardbred Breeders Fund shall be expended for purses in
1, 2, and 3 as shown above.
5. In the discretion of the Department of Agriculture
to provide awards to harness breeders of Illinois
conceived and foaled horses which win races conducted by
organization licensees conducting harness racing meetings.
A breeder is the owner of a mare at the time of conception.
No more than 10% of all monies appropriated from the
Illinois Standardbred Breeders Fund shall be expended for
such harness breeders awards. No more than 25% of the
amount expended for harness breeders awards shall be
expended for expenses incurred in the administration of
such harness breeders awards.
6. To pay for the improvement of racing facilities
located at the State Fair and County fairs.
7. To pay the expenses incurred in the administration
of the Illinois Standardbred Breeders Fund.
8. To promote the sport of harness racing, including
grants up to a maximum of $7,500 per fair per year for
conducting pari-mutuel wagering during the advertised
dates of a county fair.
9. To pay up to $50,000 annually for the Department of
Agriculture to conduct drug testing at county fairs racing
standardbred horses.
(h) The Illinois Standardbred Breeders Fund is not subject
to administrative charges or chargebacks, including, but not
limited to, those authorized under Section 8h of the State
Finance Act.
(i) A sum equal to 13% of the first prize money of the
gross purse won by an Illinois conceived and foaled horse
shall be paid 50% by the organization licensee conducting the
horse race meeting to the breeder of such winning horse from
the organization licensee's account and 50% from the purse
account of the licensee. Such payment shall not reduce any
award to the owner of the horse or reduce the taxes payable
under this Act. Such payment shall be delivered by the
organization licensee at the end of each quarter.
(j) The Department of Agriculture shall, by rule, with the
assistance and advice of the Illinois Standardbred Breeders
Fund Advisory Board:
1. Qualify stallions for Illinois Standardbred
Breeders Fund breeding; such stallion shall be owned by a
resident of the State of Illinois or by an Illinois
corporation all of whose shareholders, directors, officers
and incorporators are residents of the State of Illinois.
Such stallion shall stand for service at and within the
State of Illinois at the time of a foal's conception, and
such stallion must not stand for service at any place, nor
may semen from such stallion be transported, outside the
State of Illinois during that calendar year in which the
foal is conceived and that the owner of the stallion was
for the 12 months prior, a resident of Illinois. However,
on and after from January 1, 2018, until January 1, 2022,
semen from an Illinois stallion may be transported outside
the State of Illinois. The articles of agreement of any
partnership, joint venture, limited partnership,
syndicate, association or corporation and any bylaws and
stock certificates must contain a restriction that
provides that the ownership or transfer of interest by any
one of the persons a party to the agreement can only be
made to a person who qualifies as an Illinois resident.
2. Provide for the registration of Illinois conceived
and foaled horses and no such horse shall compete in the
races limited to Illinois conceived and foaled horses
unless registered with the Department of Agriculture. The
Department of Agriculture may prescribe such forms as may
be necessary to determine the eligibility of such horses.
No person shall knowingly prepare or cause preparation of
an application for registration of such foals containing
false information. A mare (dam) must be in the State at
least 30 days prior to foaling or remain in the State at
least 30 days at the time of foaling. However, the
requirement that a mare (dam) must be in the State at least
30 days before foaling or remain in the State at least 30
days at the time of foaling shall not be in effect from
January 1, 2018 until January 1, 2022. Beginning with the
1996 breeding season and for foals of 1997 and thereafter,
a foal conceived by transported semen may be eligible for
Illinois conceived and foaled registration provided all
breeding and foaling requirements are met. The stallion
must be qualified for Illinois Standardbred Breeders Fund
breeding at the time of conception and the mare must be
inseminated within the State of Illinois. The foal must be
dropped in Illinois and properly registered with the
Department of Agriculture in accordance with this Act.
However, from January 1, 2018 until January 1, 2022, the
requirement for a mare to be inseminated within the State
of Illinois and the requirement for a foal to be dropped in
Illinois are inapplicable.
3. Provide that at least a 5-day racing program shall
be conducted at the State Fair each year, unless an
alternate racing program is requested by the Illinois
Standardbred Breeders Fund Advisory Board, which program
shall include at least the following races limited to
Illinois conceived and foaled horses: (a) a 2-year-old
Trot and Pace, and Filly Division of each; (b) a
3-year-old Trot and Pace, and Filly Division of each; (c)
an aged Trot and Pace, and Mare Division of each.
4. Provide for the payment of nominating, sustaining
and starting fees for races promoting the sport of harness
racing and for the races to be conducted at the State Fair
as provided in subsection (j) 3 of this Section provided
that the nominating, sustaining and starting payment
required from an entrant shall not exceed 2% of the purse
of such race. All nominating, sustaining and starting
payments shall be held for the benefit of entrants and
shall be paid out as part of the respective purses for such
races. Nominating, sustaining and starting fees shall be
held in trust accounts for the purposes as set forth in
this Act and in accordance with Section 205-15 of the
Department of Agriculture Law.
5. Provide for the registration with the Department of
Agriculture of Colt Associations or county fairs desiring
to sponsor races at county fairs.
6. Provide for the promotion of producing standardbred
racehorses by providing a bonus award program for owners
of 2-year-old horses that win multiple major stakes races
that are limited to Illinois conceived and foaled horses.
(k) The Department of Agriculture, with the advice and
assistance of the Illinois Standardbred Breeders Fund Advisory
Board, may allocate monies for purse supplements for such
races. In determining whether to allocate money and the
amount, the Department of Agriculture shall consider factors,
including, but not limited to, the amount of money
appropriated for the Illinois Standardbred Breeders Fund
program, the number of races that may occur, and an
organization licensee's purse structure. The organization
licensee shall notify the Department of Agriculture of the
conditions and minimum purses for races limited to Illinois
conceived and foaled horses to be conducted by each
organization licensee conducting a harness racing meeting for
which purse supplements have been negotiated.
(l) All races held at county fairs and the State Fair which
receive funds from the Illinois Standardbred Breeders Fund
shall be conducted in accordance with the rules of the United
States Trotting Association unless otherwise modified by the
Department of Agriculture.
(m) At all standardbred race meetings held or conducted
under authority of a license granted by the Board, and at all
standardbred races held at county fairs which are approved by
the Department of Agriculture or at the Illinois or DuQuoin
State Fairs, no one shall jog, train, warm up or drive a
standardbred horse unless he or she is wearing a protective
safety helmet, with the chin strap fastened and in place,
which meets the standards and requirements as set forth in the
1984 Standard for Protective Headgear for Use in Harness
Racing and Other Equestrian Sports published by the Snell
Memorial Foundation, or any standards and requirements for
headgear the Illinois Racing Board may approve. Any other
standards and requirements so approved by the Board shall
equal or exceed those published by the Snell Memorial
Foundation. Any equestrian helmet bearing the Snell label
shall be deemed to have met those standards and requirements.
(Source: P.A. 101-31, eff. 6-28-19; 101-157, eff. 7-26-19;
102-558, eff. 8-20-21.)
Section 15. The Illinois Gambling Act is amended by
changing Sections 8 and 13 and by adding Section 8.1 as
follows:
(230 ILCS 10/8) (from Ch. 120, par. 2408)
Sec. 8. Suppliers licenses.
(a) The Board may issue a suppliers license to such
persons, firms or corporations which apply therefor upon the
payment of a non-refundable application fee set by the Board,
upon a determination by the Board that the applicant is
eligible for a suppliers license and upon payment of a $5,000
annual license fee. At the time of application for a supplier
license under this Act, a person that holds a license as a
manufacturer, distributor, or supplier under the Video Gaming
Act or a supplier license under the Sports Wagering Act shall
be entitled to licensure under this Act as a supplier without
additional Board investigation or approval, except by vote of
the Board; however, the applicant shall pay all fees required
for a suppliers license under this Act.
(a-5) Except as provided by Section 8.1, the initial
suppliers license shall be issued for 4 years. Thereafter, the
license may be renewed for additional 4-year periods unless
sooner canceled or terminated.
(b) The holder of a suppliers license is authorized to
sell or lease, and to contract to sell or lease, gambling
equipment and supplies to any licensee involved in the
ownership or management of gambling operations.
(c) Gambling supplies and equipment may not be distributed
unless supplies and equipment conform to standards adopted by
rules of the Board.
(d) A person, firm or corporation is ineligible to receive
a suppliers license if:
(1) the person has been convicted of a felony under
the laws of this State, any other state, or the United
States;
(2) the person has been convicted of any violation of
Article 28 of the Criminal Code of 1961 or the Criminal
Code of 2012, or substantially similar laws of any other
jurisdiction;
(3) the person has submitted an application for a
license under this Act which contains false information;
(4) the person is a member of the Board;
(5) the entity is one in which a person defined in (1),
(2), (3) or (4), is an officer, director or managerial
employee;
(6) the firm or corporation employs a person who
participates in the management or operation of gambling
authorized under this Act;
(7) the license of the person, firm or corporation
issued under this Act, or a license to own or operate
gambling facilities in any other jurisdiction, has been
revoked.
(e) Any person that supplies any equipment, devices, or
supplies to a licensed gambling operation must first obtain a
suppliers license. A supplier shall furnish to the Board a
list of all equipment, devices and supplies offered for sale
or lease in connection with gambling games authorized under
this Act. A supplier shall keep books and records for the
furnishing of equipment, devices and supplies to gambling
operations separate and distinct from any other business that
the supplier might operate. A supplier shall file a quarterly
return with the Board listing all sales and leases. A supplier
shall permanently affix its name or a distinctive logo or
other mark or design element identifying the manufacturer or
supplier to all its equipment, devices, and supplies, except
gaming chips without a value impressed, engraved, or imprinted
on it, for gambling operations. The Board may waive this
requirement for any specific product or products if it
determines that the requirement is not necessary to protect
the integrity of the game. Items purchased from a licensed
supplier may continue to be used even though the supplier
subsequently changes its name, distinctive logo, or other mark
or design element; undergoes a change in ownership; or ceases
to be licensed as a supplier for any reason. Any supplier's
equipment, devices or supplies which are used by any person in
an unauthorized gambling operation shall be forfeited to the
State. A holder of an owners license or an organization gaming
license may own its own equipment, devices and supplies. Each
holder of an owners license or an organization gaming license
under the Act shall file an annual report listing its
inventories of gambling equipment, devices and supplies.
(f) Any person who knowingly makes a false statement on an
application is guilty of a Class A misdemeanor.
(g) Any gambling equipment, devices and supplies provided
by any licensed supplier may either be repaired on the
riverboat, in the casino, or at the organization gaming
facility or removed from the riverboat, casino, or
organization gaming facility to a facility owned by the holder
of an owners license, organization gaming license, or
suppliers license for repair.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 10/8.1 new)
Sec. 8.1. Harmonization of supplier category licenses.
(a) As used in this Section, "supplier category license"
means a suppliers license issued under this Act, a supplier
license issued under the Sports Wagering Act, or a
manufacturer, distributor, or supplier license issued under
the Video Gaming Act.
(b) If a holder of any supplier category license is
granted an additional supplier category license, the initial
period of the new supplier category license shall expire at
the earliest expiration date of any other supplier category
license held by the licensee. If a licensee holds multiple
supplier category licenses on the effective date of this
amendatory Act of the 102nd General Assembly, all supplier
category licenses shall expire at the earliest expiration date
of any of the supplier category licenses held by the licensee.
(230 ILCS 10/13) (from Ch. 120, par. 2413)
Sec. 13. Wagering tax; rate; distribution.
(a) Until January 1, 1998, a tax is imposed on the adjusted
gross receipts received from gambling games authorized under
this Act at the rate of 20%.
(a-1) From January 1, 1998 until July 1, 2002, a privilege
tax is imposed on persons engaged in the business of
conducting riverboat gambling operations, based on the
adjusted gross receipts received by a licensed owner from
gambling games authorized under this Act at the following
rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
20% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000;
25% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
30% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
35% of annual adjusted gross receipts in excess of
$100,000,000.
(a-2) From July 1, 2002 until July 1, 2003, a privilege tax
is imposed on persons engaged in the business of conducting
riverboat gambling operations, other than licensed managers
conducting riverboat gambling operations on behalf of the
State, based on the adjusted gross receipts received by a
licensed owner from gambling games authorized under this Act
at the following rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
22.5% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000;
27.5% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
32.5% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
37.5% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $150,000,000;
45% of annual adjusted gross receipts in excess of
$150,000,000 but not exceeding $200,000,000;
50% of annual adjusted gross receipts in excess of
$200,000,000.
(a-3) Beginning July 1, 2003, a privilege tax is imposed
on persons engaged in the business of conducting riverboat
gambling operations, other than licensed managers conducting
riverboat gambling operations on behalf of the State, based on
the adjusted gross receipts received by a licensed owner from
gambling games authorized under this Act at the following
rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
27.5% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $37,500,000;
32.5% of annual adjusted gross receipts in excess of
$37,500,000 but not exceeding $50,000,000;
37.5% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
45% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
50% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $250,000,000;
70% of annual adjusted gross receipts in excess of
$250,000,000.
An amount equal to the amount of wagering taxes collected
under this subsection (a-3) that are in addition to the amount
of wagering taxes that would have been collected if the
wagering tax rates under subsection (a-2) were in effect shall
be paid into the Common School Fund.
The privilege tax imposed under this subsection (a-3)
shall no longer be imposed beginning on the earlier of (i) July
1, 2005; (ii) the first date after June 20, 2003 that riverboat
gambling operations are conducted pursuant to a dormant
license; or (iii) the first day that riverboat gambling
operations are conducted under the authority of an owners
license that is in addition to the 10 owners licenses
initially authorized under this Act. For the purposes of this
subsection (a-3), the term "dormant license" means an owners
license that is authorized by this Act under which no
riverboat gambling operations are being conducted on June 20,
2003.
(a-4) Beginning on the first day on which the tax imposed
under subsection (a-3) is no longer imposed and ending upon
the imposition of the privilege tax under subsection (a-5) of
this Section, a privilege tax is imposed on persons engaged in
the business of conducting gambling operations, other than
licensed managers conducting riverboat gambling operations on
behalf of the State, based on the adjusted gross receipts
received by a licensed owner from gambling games authorized
under this Act at the following rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
22.5% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000;
27.5% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
32.5% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
37.5% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $150,000,000;
45% of annual adjusted gross receipts in excess of
$150,000,000 but not exceeding $200,000,000;
50% of annual adjusted gross receipts in excess of
$200,000,000.
For the imposition of the privilege tax in this subsection
(a-4), amounts paid pursuant to item (1) of subsection (b) of
Section 56 of the Illinois Horse Racing Act of 1975 shall not
be included in the determination of adjusted gross receipts.
(a-5)(1) Beginning on July 1, 2020, a privilege tax is
imposed on persons engaged in the business of conducting
gambling operations, other than the owners licensee under
paragraph (1) of subsection (e-5) of Section 7 and licensed
managers conducting riverboat gambling operations on behalf of
the State, based on the adjusted gross receipts received by
such licensee from the gambling games authorized under this
Act. The privilege tax for all gambling games other than table
games, including, but not limited to, slot machines, video
game of chance gambling, and electronic gambling games shall
be at the following rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
22.5% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000;
27.5% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
32.5% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
37.5% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $150,000,000;
45% of annual adjusted gross receipts in excess of
$150,000,000 but not exceeding $200,000,000;
50% of annual adjusted gross receipts in excess of
$200,000,000.
The privilege tax for table games shall be at the
following rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
20% of annual adjusted gross receipts in excess of
$25,000,000.
For the imposition of the privilege tax in this subsection
(a-5), amounts paid pursuant to item (1) of subsection (b) of
Section 56 of the Illinois Horse Racing Act of 1975 shall not
be included in the determination of adjusted gross receipts.
(2) Beginning on the first day that an owners licensee
under paragraph (1) of subsection (e-5) of Section 7 conducts
gambling operations, either in a temporary facility or a
permanent facility, a privilege tax is imposed on persons
engaged in the business of conducting gambling operations
under paragraph (1) of subsection (e-5) of Section 7, other
than licensed managers conducting riverboat gambling
operations on behalf of the State, based on the adjusted gross
receipts received by such licensee from the gambling games
authorized under this Act. The privilege tax for all gambling
games other than table games, including, but not limited to,
slot machines, video game of chance gambling, and electronic
gambling games shall be at the following rates:
12% of annual adjusted gross receipts up to and
including $25,000,000 to the State and 10.5% of annual
adjusted gross receipts up to and including $25,000,000 to
the City of Chicago;
16% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000 to the State and
14% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000 to the City of
Chicago;
20.1% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000 to the State and
17.4% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000 to the City of
Chicago;
21.4% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000 to the State
and 18.6% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000 to the City of
Chicago;
22.7% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $150,000,000 to the State
and 19.8% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $150,000,000 to the City of
Chicago;
24.1% of annual adjusted gross receipts in excess of
$150,000,000 but not exceeding $225,000,000 to the State
and 20.9% of annual adjusted gross receipts in excess of
$150,000,000 but not exceeding $225,000,000 to the City of
Chicago;
26.8% of annual adjusted gross receipts in excess of
$225,000,000 but not exceeding $1,000,000,000 to the State
and 23.2% of annual adjusted gross receipts in excess of
$225,000,000 but not exceeding $1,000,000,000 to the City
of Chicago;
40% of annual adjusted gross receipts in excess of
$1,000,000,000 to the State and 34.7% of annual gross
receipts in excess of $1,000,000,000 to the City of
Chicago.
The privilege tax for table games shall be at the
following rates:
8.1% of annual adjusted gross receipts up to and
including $25,000,000 to the State and 6.9% of annual
adjusted gross receipts up to and including $25,000,000 to
the City of Chicago;
10.7% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $75,000,000 to the State and
9.3% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $75,000,000 to the City of
Chicago;
11.2% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $175,000,000 to the State
and 9.8% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $175,000,000 to the City of
Chicago;
13.5% of annual adjusted gross receipts in excess of
$175,000,000 but not exceeding $225,000,000 to the State
and 11.5% of annual adjusted gross receipts in excess of
$175,000,000 but not exceeding $225,000,000 to the City of
Chicago;
15.1% of annual adjusted gross receipts in excess of
$225,000,000 but not exceeding $275,000,000 to the State
and 12.9% of annual adjusted gross receipts in excess of
$225,000,000 but not exceeding $275,000,000 to the City of
Chicago;
16.2% of annual adjusted gross receipts in excess of
$275,000,000 but not exceeding $375,000,000 to the State
and 13.8% of annual adjusted gross receipts in excess of
$275,000,000 but not exceeding $375,000,000 to the City of
Chicago;
18.9% of annual adjusted gross receipts in excess of
$375,000,000 to the State and 16.1% of annual gross
receipts in excess of $375,000,000 to the City of Chicago.
For the imposition of the privilege tax in this subsection
(a-5), amounts paid pursuant to item (1) of subsection (b) of
Section 56 of the Illinois Horse Racing Act of 1975 shall not
be included in the determination of adjusted gross receipts.
Notwithstanding the provisions of this subsection (a-5),
for the first 10 years that the privilege tax is imposed under
this subsection (a-5), the privilege tax shall be imposed on
the modified annual adjusted gross receipts of a riverboat or
casino conducting gambling operations in the City of East St.
Louis, unless:
(1) the riverboat or casino fails to employ at least
450 people, except no minimum employment shall be required
during 2020 and 2021 or during periods that the riverboat
or casino is closed on orders of State officials for
public health emergencies or other emergencies not caused
by the riverboat or casino;
(2) the riverboat or casino fails to maintain
operations in a manner consistent with this Act or is not a
viable riverboat or casino subject to the approval of the
Board; or
(3) the owners licensee is not an entity in which
employees participate in an employee stock ownership plan
or in which the owners licensee sponsors a 401(k)
retirement plan and makes a matching employer contribution
equal to at least one-quarter of the first 12% or one-half
of the first 6% of each participating employee's
contribution, not to exceed any limitations under federal
laws and regulations.
As used in this subsection (a-5), "modified annual
adjusted gross receipts" means:
(A) for calendar year 2020, the annual adjusted gross
receipts for the current year minus the difference between
an amount equal to the average annual adjusted gross
receipts from a riverboat or casino conducting gambling
operations in the City of East St. Louis for 2014, 2015,
2016, 2017, and 2018 and the annual adjusted gross
receipts for 2018;
(B) for calendar year 2021, the annual adjusted gross
receipts for the current year minus the difference between
an amount equal to the average annual adjusted gross
receipts from a riverboat or casino conducting gambling
operations in the City of East St. Louis for 2014, 2015,
2016, 2017, and 2018 and the annual adjusted gross
receipts for 2019; and
(C) for calendar years 2022 through 2029, the annual
adjusted gross receipts for the current year minus the
difference between an amount equal to the average annual
adjusted gross receipts from a riverboat or casino
conducting gambling operations in the City of East St.
Louis for 3 years preceding the current year and the
annual adjusted gross receipts for the immediately
preceding year.
(a-6) From June 28, 2019 (the effective date of Public Act
101-31) until June 30, 2023, an owners licensee that conducted
gambling operations prior to January 1, 2011 shall receive a
dollar-for-dollar credit against the tax imposed under this
Section for any renovation or construction costs paid by the
owners licensee, but in no event shall the credit exceed
$2,000,000.
Additionally, from June 28, 2019 (the effective date of
Public Act 101-31) until December 31, 2022, an owners licensee
that (i) is located within 15 miles of the Missouri border, and
(ii) has at least 3 riverboats, casinos, or their equivalent
within a 45-mile radius, may be authorized to relocate to a new
location with the approval of both the unit of local
government designated as the home dock and the Board, so long
as the new location is within the same unit of local government
and no more than 3 miles away from its original location. Such
owners licensee shall receive a credit against the tax imposed
under this Section equal to 8% of the total project costs, as
approved by the Board, for any renovation or construction
costs paid by the owners licensee for the construction of the
new facility, provided that the new facility is operational by
July 1, 2022. In determining whether or not to approve a
relocation, the Board must consider the extent to which the
relocation will diminish the gaming revenues received by other
Illinois gaming facilities.
(a-7) Beginning in the initial adjustment year and through
the final adjustment year, if the total obligation imposed
pursuant to either subsection (a-5) or (a-6) will result in an
owners licensee receiving less after-tax adjusted gross
receipts than it received in calendar year 2018, then the
total amount of privilege taxes that the owners licensee is
required to pay for that calendar year shall be reduced to the
extent necessary so that the after-tax adjusted gross receipts
in that calendar year equals the after-tax adjusted gross
receipts in calendar year 2018, but the privilege tax
reduction shall not exceed the annual adjustment cap. If
pursuant to this subsection (a-7), the total obligation
imposed pursuant to either subsection (a-5) or (a-6) shall be
reduced, then the owners licensee shall not receive a refund
from the State at the end of the subject calendar year but
instead shall be able to apply that amount as a credit against
any payments it owes to the State in the following calendar
year to satisfy its total obligation under either subsection
(a-5) or (a-6). The credit for the final adjustment year shall
occur in the calendar year following the final adjustment
year.
If an owners licensee that conducted gambling operations
prior to January 1, 2019 expands its riverboat or casino,
including, but not limited to, with respect to its gaming
floor, additional non-gaming amenities such as restaurants,
bars, and hotels and other additional facilities, and incurs
construction and other costs related to such expansion from
June 28, 2019 (the effective date of Public Act 101-31) until
June 28, 2024 (the 5th anniversary of the effective date of
Public Act 101-31), then for each $15,000,000 spent for any
such construction or other costs related to expansion paid by
the owners licensee, the final adjustment year shall be
extended by one year and the annual adjustment cap shall
increase by 0.2% of adjusted gross receipts during each
calendar year until and including the final adjustment year.
No further modifications to the final adjustment year or
annual adjustment cap shall be made after $75,000,000 is
incurred in construction or other costs related to expansion
so that the final adjustment year shall not extend beyond the
9th calendar year after the initial adjustment year, not
including the initial adjustment year, and the annual
adjustment cap shall not exceed 4% of adjusted gross receipts
in a particular calendar year. Construction and other costs
related to expansion shall include all project related costs,
including, but not limited to, all hard and soft costs,
financing costs, on or off-site ground, road or utility work,
cost of gaming equipment and all other personal property,
initial fees assessed for each incremental gaming position,
and the cost of incremental land acquired for such expansion.
Soft costs shall include, but not be limited to, legal fees,
architect, engineering and design costs, other consultant
costs, insurance cost, permitting costs, and pre-opening costs
related to the expansion, including, but not limited to, any
of the following: marketing, real estate taxes, personnel,
training, travel and out-of-pocket expenses, supply,
inventory, and other costs, and any other project related soft
costs.
To be eligible for the tax credits in subsection (a-6),
all construction contracts shall include a requirement that
the contractor enter into a project labor agreement with the
building and construction trades council with geographic
jurisdiction of the location of the proposed gaming facility.
Notwithstanding any other provision of this subsection
(a-7), this subsection (a-7) does not apply to an owners
licensee unless such owners licensee spends at least
$15,000,000 on construction and other costs related to its
expansion, excluding the initial fees assessed for each
incremental gaming position.
This subsection (a-7) does not apply to owners licensees
authorized pursuant to subsection (e-5) of Section 7 of this
Act.
For purposes of this subsection (a-7):
"Building and construction trades council" means any
organization representing multiple construction entities that
are monitoring or attentive to compliance with public or
workers' safety laws, wage and hour requirements, or other
statutory requirements or that are making or maintaining
collective bargaining agreements.
"Initial adjustment year" means the year commencing on
January 1 of the calendar year immediately following the
earlier of the following:
(1) the commencement of gambling operations, either in
a temporary or permanent facility, with respect to the
owners license authorized under paragraph (1) of
subsection (e-5) of Section 7 of this Act; or
(2) June 28, 2021 (24 months after the effective date
of Public Act 101-31);
provided the initial adjustment year shall not commence
earlier than June 28, 2020 (12 months after the effective date
of Public Act 101-31).
"Final adjustment year" means the 2nd calendar year after
the initial adjustment year, not including the initial
adjustment year, and as may be extended further as described
in this subsection (a-7).
"Annual adjustment cap" means 3% of adjusted gross
receipts in a particular calendar year, and as may be
increased further as otherwise described in this subsection
(a-7).
(a-8) Riverboat gambling operations conducted by a
licensed manager on behalf of the State are not subject to the
tax imposed under this Section.
(a-9) Beginning on January 1, 2020, the calculation of
gross receipts or adjusted gross receipts, for the purposes of
this Section, for a riverboat, a casino, or an organization
gaming facility shall not include the dollar amount of
non-cashable vouchers, coupons, and electronic promotions
redeemed by wagerers upon the riverboat, in the casino, or in
the organization gaming facility up to and including an amount
not to exceed 20% of a riverboat's, a casino's, or an
organization gaming facility's adjusted gross receipts.
The Illinois Gaming Board shall submit to the General
Assembly a comprehensive report no later than March 31, 2023
detailing, at a minimum, the effect of removing non-cashable
vouchers, coupons, and electronic promotions from this
calculation on net gaming revenues to the State in calendar
years 2020 through 2022, the increase or reduction in wagerers
as a result of removing non-cashable vouchers, coupons, and
electronic promotions from this calculation, the effect of the
tax rates in subsection (a-5) on net gaming revenues to this
State, and proposed modifications to the calculation.
(a-10) The taxes imposed by this Section shall be paid by
the licensed owner or the organization gaming licensee to the
Board not later than 5:00 o'clock p.m. of the day after the day
when the wagers were made.
(a-15) If the privilege tax imposed under subsection (a-3)
is no longer imposed pursuant to item (i) of the last paragraph
of subsection (a-3), then by June 15 of each year, each owners
licensee, other than an owners licensee that admitted
1,000,000 persons or fewer in calendar year 2004, must, in
addition to the payment of all amounts otherwise due under
this Section, pay to the Board a reconciliation payment in the
amount, if any, by which the licensed owner's base amount
exceeds the amount of net privilege tax paid by the licensed
owner to the Board in the then current State fiscal year. A
licensed owner's net privilege tax obligation due for the
balance of the State fiscal year shall be reduced up to the
total of the amount paid by the licensed owner in its June 15
reconciliation payment. The obligation imposed by this
subsection (a-15) is binding on any person, firm, corporation,
or other entity that acquires an ownership interest in any
such owners license. The obligation imposed under this
subsection (a-15) terminates on the earliest of: (i) July 1,
2007, (ii) the first day after August 23, 2005 (the effective
date of Public Act 94-673) this amendatory Act of the 94th
General Assembly that riverboat gambling operations are
conducted pursuant to a dormant license, (iii) the first day
that riverboat gambling operations are conducted under the
authority of an owners license that is in addition to the 10
owners licenses initially authorized under this Act, or (iv)
the first day that a licensee under the Illinois Horse Racing
Act of 1975 conducts gaming operations with slot machines or
other electronic gaming devices. The Board must reduce the
obligation imposed under this subsection (a-15) by an amount
the Board deems reasonable for any of the following reasons:
(A) an act or acts of God, (B) an act of bioterrorism or
terrorism or a bioterrorism or terrorism threat that was
investigated by a law enforcement agency, or (C) a condition
beyond the control of the owners licensee that does not result
from any act or omission by the owners licensee or any of its
agents and that poses a hazardous threat to the health and
safety of patrons. If an owners licensee pays an amount in
excess of its liability under this Section, the Board shall
apply the overpayment to future payments required under this
Section.
For purposes of this subsection (a-15):
"Act of God" means an incident caused by the operation of
an extraordinary force that cannot be foreseen, that cannot be
avoided by the exercise of due care, and for which no person
can be held liable.
"Base amount" means the following:
For a riverboat in Alton, $31,000,000.
For a riverboat in East Peoria, $43,000,000.
For the Empress riverboat in Joliet, $86,000,000.
For a riverboat in Metropolis, $45,000,000.
For the Harrah's riverboat in Joliet, $114,000,000.
For a riverboat in Aurora, $86,000,000.
For a riverboat in East St. Louis, $48,500,000.
For a riverboat in Elgin, $198,000,000.
"Dormant license" has the meaning ascribed to it in
subsection (a-3).
"Net privilege tax" means all privilege taxes paid by a
licensed owner to the Board under this Section, less all
payments made from the State Gaming Fund pursuant to
subsection (b) of this Section.
The changes made to this subsection (a-15) by Public Act
94-839 are intended to restate and clarify the intent of
Public Act 94-673 with respect to the amount of the payments
required to be made under this subsection by an owners
licensee to the Board.
(b) From the tax revenue from riverboat or casino gambling
deposited in the State Gaming Fund under this Section, an
amount equal to 5% of adjusted gross receipts generated by a
riverboat or a casino, other than a riverboat or casino
designated in paragraph (1), (3), or (4) of subsection (e-5)
of Section 7, shall be paid monthly, subject to appropriation
by the General Assembly, to the unit of local government in
which the casino is located or that is designated as the home
dock of the riverboat. Notwithstanding anything to the
contrary, beginning on the first day that an owners licensee
under paragraph (1), (2), (3), (4), (5), or (6) of subsection
(e-5) of Section 7 conducts gambling operations, either in a
temporary facility or a permanent facility, and for 2 years
thereafter, a unit of local government designated as the home
dock of a riverboat whose license was issued before January 1,
2019, other than a riverboat conducting gambling operations in
the City of East St. Louis, shall not receive less under this
subsection (b) than the amount the unit of local government
received under this subsection (b) in calendar year 2018.
Notwithstanding anything to the contrary and because the City
of East St. Louis is a financially distressed city, beginning
on the first day that an owners licensee under paragraph (1),
(2), (3), (4), (5), or (6) of subsection (e-5) of Section 7
conducts gambling operations, either in a temporary facility
or a permanent facility, and for 10 years thereafter, a unit of
local government designated as the home dock of a riverboat
conducting gambling operations in the City of East St. Louis
shall not receive less under this subsection (b) than the
amount the unit of local government received under this
subsection (b) in calendar year 2018.
From the tax revenue deposited in the State Gaming Fund
pursuant to riverboat or casino gambling operations conducted
by a licensed manager on behalf of the State, an amount equal
to 5% of adjusted gross receipts generated pursuant to those
riverboat or casino gambling operations shall be paid monthly,
subject to appropriation by the General Assembly, to the unit
of local government that is designated as the home dock of the
riverboat upon which those riverboat gambling operations are
conducted or in which the casino is located.
From the tax revenue from riverboat or casino gambling
deposited in the State Gaming Fund under this Section, an
amount equal to 5% of the adjusted gross receipts generated by
a riverboat designated in paragraph (3) of subsection (e-5) of
Section 7 shall be divided and remitted monthly, subject to
appropriation, as follows: 70% to Waukegan, 10% to Park City,
15% to North Chicago, and 5% to Lake County.
From the tax revenue from riverboat or casino gambling
deposited in the State Gaming Fund under this Section, an
amount equal to 5% of the adjusted gross receipts generated by
a riverboat designated in paragraph (4) of subsection (e-5) of
Section 7 shall be remitted monthly, subject to appropriation,
as follows: 70% to the City of Rockford, 5% to the City of
Loves Park, 5% to the Village of Machesney, and 20% to
Winnebago County.
From the tax revenue from riverboat or casino gambling
deposited in the State Gaming Fund under this Section, an
amount equal to 5% of the adjusted gross receipts generated by
a riverboat designated in paragraph (5) of subsection (e-5) of
Section 7 shall be remitted monthly, subject to appropriation,
as follows: 2% to the unit of local government in which the
riverboat or casino is located, and 3% shall be distributed:
(A) in accordance with a regional capital development plan
entered into by the following communities: Village of Beecher,
City of Blue Island, Village of Burnham, City of Calumet City,
Village of Calumet Park, City of Chicago Heights, City of
Country Club Hills, Village of Crestwood, Village of Crete,
Village of Dixmoor, Village of Dolton, Village of East Hazel
Crest, Village of Flossmoor, Village of Ford Heights, Village
of Glenwood, City of Harvey, Village of Hazel Crest, Village
of Homewood, Village of Lansing, Village of Lynwood, City of
Markham, Village of Matteson, Village of Midlothian, Village
of Monee, City of Oak Forest, Village of Olympia Fields,
Village of Orland Hills, Village of Orland Park, City of Palos
Heights, Village of Park Forest, Village of Phoenix, Village
of Posen, Village of Richton Park, Village of Riverdale,
Village of Robbins, Village of Sauk Village, Village of South
Chicago Heights, Village of South Holland, Village of Steger,
Village of Thornton, Village of Tinley Park, Village of
University Park, and Village of Worth; or (B) if no regional
capital development plan exists, equally among the communities
listed in item (A) to be used for capital expenditures or
public pension payments, or both.
Units of local government may refund any portion of the
payment that they receive pursuant to this subsection (b) to
the riverboat or casino.
(b-4) Beginning on the first day the licensee under
paragraph (5) of subsection (e-5) of Section 7 conducts
gambling operations, either in a temporary facility or a
permanent facility, and ending on July 31, 2042, from the tax
revenue deposited in the State Gaming Fund under this Section,
$5,000,000 shall be paid annually, subject to appropriation,
to the host municipality of that owners licensee of a license
issued or re-issued pursuant to Section 7.1 of this Act before
January 1, 2012. Payments received by the host municipality
pursuant to this subsection (b-4) may not be shared with any
other unit of local government.
(b-5) Beginning on June 28, 2019 (the effective date of
Public Act 101-31), from the tax revenue deposited in the
State Gaming Fund under this Section, an amount equal to 3% of
adjusted gross receipts generated by each organization gaming
facility located outside Madison County shall be paid monthly,
subject to appropriation by the General Assembly, to a
municipality other than the Village of Stickney in which each
organization gaming facility is located or, if the
organization gaming facility is not located within a
municipality, to the county in which the organization gaming
facility is located, except as otherwise provided in this
Section. From the tax revenue deposited in the State Gaming
Fund under this Section, an amount equal to 3% of adjusted
gross receipts generated by an organization gaming facility
located in the Village of Stickney shall be paid monthly,
subject to appropriation by the General Assembly, as follows:
25% to the Village of Stickney, 5% to the City of Berwyn, 50%
to the Town of Cicero, and 20% to the Stickney Public Health
District.
From the tax revenue deposited in the State Gaming Fund
under this Section, an amount equal to 5% of adjusted gross
receipts generated by an organization gaming facility located
in the City of Collinsville shall be paid monthly, subject to
appropriation by the General Assembly, as follows: 30% to the
City of Alton, 30% to the City of East St. Louis, and 40% to
the City of Collinsville.
Municipalities and counties may refund any portion of the
payment that they receive pursuant to this subsection (b-5) to
the organization gaming facility.
(b-6) Beginning on June 28, 2019 (the effective date of
Public Act 101-31), from the tax revenue deposited in the
State Gaming Fund under this Section, an amount equal to 2% of
adjusted gross receipts generated by an organization gaming
facility located outside Madison County shall be paid monthly,
subject to appropriation by the General Assembly, to the
county in which the organization gaming facility is located
for the purposes of its criminal justice system or health care
system.
Counties may refund any portion of the payment that they
receive pursuant to this subsection (b-6) to the organization
gaming facility.
(b-7) From the tax revenue from the organization gaming
licensee located in one of the following townships of Cook
County: Bloom, Bremen, Calumet, Orland, Rich, Thornton, or
Worth, an amount equal to 5% of the adjusted gross receipts
generated by that organization gaming licensee shall be
remitted monthly, subject to appropriation, as follows: 2% to
the unit of local government in which the organization gaming
licensee is located, and 3% shall be distributed: (A) in
accordance with a regional capital development plan entered
into by the following communities: Village of Beecher, City of
Blue Island, Village of Burnham, City of Calumet City, Village
of Calumet Park, City of Chicago Heights, City of Country Club
Hills, Village of Crestwood, Village of Crete, Village of
Dixmoor, Village of Dolton, Village of East Hazel Crest,
Village of Flossmoor, Village of Ford Heights, Village of
Glenwood, City of Harvey, Village of Hazel Crest, Village of
Homewood, Village of Lansing, Village of Lynwood, City of
Markham, Village of Matteson, Village of Midlothian, Village
of Monee, City of Oak Forest, Village of Olympia Fields,
Village of Orland Hills, Village of Orland Park, City of Palos
Heights, Village of Park Forest, Village of Phoenix, Village
of Posen, Village of Richton Park, Village of Riverdale,
Village of Robbins, Village of Sauk Village, Village of South
Chicago Heights, Village of South Holland, Village of Steger,
Village of Thornton, Village of Tinley Park, Village of
University Park, and Village of Worth; or (B) if no regional
capital development plan exists, equally among the communities
listed in item (A) to be used for capital expenditures or
public pension payments, or both.
(b-8) In lieu of the payments under subsection (b) of this
Section, from the tax revenue deposited in the State Gaming
Fund pursuant to riverboat or casino gambling operations
conducted by an owners licensee under paragraph (1) of
subsection (e-5) of Section 7, an amount equal to the tax
revenue generated from the privilege tax imposed by paragraph
(2) of subsection (a-5) that is to be paid to the City of
Chicago shall be paid monthly, subject to appropriation by the
General Assembly, as follows: (1) an amount equal to 0.5% of
the annual adjusted gross receipts generated by the owners
licensee under paragraph (1) of subsection (e-5) of Section 7
to the home rule county in which the owners licensee is located
for the purpose of enhancing the county's criminal justice
system; and (2) the balance to the City of Chicago and shall be
expended or obligated by the City of Chicago for pension
payments in accordance with Public Act 99-506.
(c) Appropriations, as approved by the General Assembly,
may be made from the State Gaming Fund to the Board (i) for the
administration and enforcement of this Act and the Video
Gaming Act, (ii) for distribution to the Illinois State Police
and to the Department of Revenue for the enforcement of this
Act and the Video Gaming Act, and (iii) to the Department of
Human Services for the administration of programs to treat
problem gambling, including problem gambling from sports
wagering. The Board's annual appropriations request must
separately state its funding needs for the regulation of
gaming authorized under Section 7.7, riverboat gaming, casino
gaming, video gaming, and sports wagering.
(c-2) An amount equal to 2% of the adjusted gross receipts
generated by an organization gaming facility located within a
home rule county with a population of over 3,000,000
inhabitants shall be paid, subject to appropriation from the
General Assembly, from the State Gaming Fund to the home rule
county in which the organization gaming licensee is located
for the purpose of enhancing the county's criminal justice
system.
(c-3) Appropriations, as approved by the General Assembly,
may be made from the tax revenue deposited into the State
Gaming Fund from organization gaming licensees pursuant to
this Section for the administration and enforcement of this
Act.
(c-4) After payments required under subsections (b),
(b-5), (b-6), (b-7), (c), (c-2), and (c-3) have been made from
the tax revenue from organization gaming licensees deposited
into the State Gaming Fund under this Section, all remaining
amounts from organization gaming licensees shall be
transferred into the Capital Projects Fund.
(c-5) (Blank).
(c-10) Each year the General Assembly shall appropriate
from the General Revenue Fund to the Education Assistance Fund
an amount equal to the amount paid into the Horse Racing Equity
Fund pursuant to subsection (c-5) in the prior calendar year.
(c-15) After the payments required under subsections (b),
(c), and (c-5) have been made, an amount equal to 2% of the
adjusted gross receipts of (1) an owners licensee that
relocates pursuant to Section 11.2, (2) an owners licensee
conducting riverboat gambling operations pursuant to an owners
license that is initially issued after June 25, 1999, or (3)
the first riverboat gambling operations conducted by a
licensed manager on behalf of the State under Section 7.3,
whichever comes first, shall be paid, subject to appropriation
from the General Assembly, from the State Gaming Fund to each
home rule county with a population of over 3,000,000
inhabitants for the purpose of enhancing the county's criminal
justice system.
(c-20) Each year the General Assembly shall appropriate
from the General Revenue Fund to the Education Assistance Fund
an amount equal to the amount paid to each home rule county
with a population of over 3,000,000 inhabitants pursuant to
subsection (c-15) in the prior calendar year.
(c-21) After the payments required under subsections (b),
(b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), and (c-4) have
been made, an amount equal to 0.5% of the adjusted gross
receipts generated by the owners licensee under paragraph (1)
of subsection (e-5) of Section 7 shall be paid monthly,
subject to appropriation from the General Assembly, from the
State Gaming Fund to the home rule county in which the owners
licensee is located for the purpose of enhancing the county's
criminal justice system.
(c-22) After the payments required under subsections (b),
(b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), (c-4), and
(c-21) have been made, an amount equal to 2% of the adjusted
gross receipts generated by the owners licensee under
paragraph (5) of subsection (e-5) of Section 7 shall be paid,
subject to appropriation from the General Assembly, from the
State Gaming Fund to the home rule county in which the owners
licensee is located for the purpose of enhancing the county's
criminal justice system.
(c-25) From July 1, 2013 and each July 1 thereafter
through July 1, 2019, $1,600,000 shall be transferred from the
State Gaming Fund to the Chicago State University Education
Improvement Fund.
On July 1, 2020 and each July 1 thereafter, $3,000,000
shall be transferred from the State Gaming Fund to the Chicago
State University Education Improvement Fund.
(c-30) On July 1, 2013 or as soon as possible thereafter,
$92,000,000 shall be transferred from the State Gaming Fund to
the School Infrastructure Fund and $23,000,000 shall be
transferred from the State Gaming Fund to the Horse Racing
Equity Fund.
(c-35) Beginning on July 1, 2013, in addition to any
amount transferred under subsection (c-30) of this Section,
$5,530,000 shall be transferred monthly from the State Gaming
Fund to the School Infrastructure Fund.
(d) From time to time, through June 30, 2021, the Board
shall transfer the remainder of the funds generated by this
Act into the Education Assistance Fund.
(d-5) Beginning on July 1, 2021, on the last day of each
month, or as soon thereafter as possible, after all the
required expenditures, distributions, and transfers have been
made from the State Gaming Fund for the month pursuant to
subsections (b) through (c-35), at the direction of the Board,
the Comptroller shall direct and the Treasurer shall transfer
$22,500,000, along with any deficiencies in such amounts from
prior months in the same fiscal year, from the State Gaming
Fund to the Education Assistance Fund; then, at the direction
of the Board, the Comptroller shall direct and the Treasurer
shall transfer the remainder of the funds generated by this
Act, if any, from the State Gaming Fund to the Capital Projects
Fund.
(e) Nothing in this Act shall prohibit the unit of local
government designated as the home dock of the riverboat from
entering into agreements with other units of local government
in this State or in other states to share its portion of the
tax revenue.
(f) To the extent practicable, the Board shall administer
and collect the wagering taxes imposed by this Section in a
manner consistent with the provisions of Sections 4, 5, 5a,
5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of
the Retailers' Occupation Tax Act and Section 3-7 of the
Uniform Penalty and Interest Act.
(Source: P.A. 101-31, Article 25, Section 25-910, eff.
6-28-19; 101-31, Article 35, Section 35-55, eff. 6-28-19;
101-648, eff. 6-30-20; 102-16, eff. 6-17-21; 102-538, eff.
8-20-21; revised 10-14-21.)
Section 20. The Raffles and Poker Runs Act is amended by
changing Sections 1 and 2 as follows:
(230 ILCS 15/1) (from Ch. 85, par. 2301)
Sec. 1. Definitions. For the purposes of this Act the
terms defined in this Section have the meanings given them.
"Fire protection agency" means: (1) an agency of this
State, unit of local government, or intergovernmental mutual
aid entity that is vested by law or intergovernmental
agreement with the duty and authority to provide public fire
suppression, rescue, or emergency medical services; or (2) an
organization that provides support or assistance to an agency
of this State, unit of local government, or intergovernmental
mutual aid entity that is vested by law or intergovernmental
agreement with the duty and authority to provide public fire
suppression, rescue, or emergency medical services.
"Key location" means:
(1) For a poker run, the location where the poker run
concludes and the prizes are awarded.
(2) For a raffle, the location where the winning
chances in the raffle are determined.
"Law enforcement agency" means an agency of this State or
a unit of local government in this State that is vested by law
or ordinance with the duty to maintain public order and to
enforce criminal laws or ordinances.
"Net proceeds" means the gross receipts from the conduct
of raffles, less reasonable sums expended for prizes, local
license fees and other operating expenses incurred as a result
of operating a raffle or poker run.
"Poker run" means a prize-awarding event organized by an
organization licensed under this Act in which participants
travel to multiple predetermined locations, including a key
location, to play a randomized game based on an element of
chance. "Poker run" includes dice runs, marble runs, or other
events where the objective is to build the best hand or highest
score by obtaining an item or playing a randomized game at each
location.
"Raffle" means a form of lottery, as defined in subsection
(b) of Section 28-2 of the Criminal Code of 2012, conducted by
an organization licensed under this Act, in which:
(1) the player pays or agrees to pay something of
value for a chance, represented and differentiated by a
number or by a combination of numbers or by some other
medium, one or more of which chances is to be designated
the winning chance; and
(2) the winning chance is to be determined through a
drawing or by some other method based on an element of
chance by an act or set of acts on the part of persons
conducting or connected with the lottery, except that the
winning chance shall not be determined by the outcome of a
publicly exhibited sporting contest.
"Raffle" does not include any game designed to simulate:
(1) gambling games as defined in the Illinois Gambling Act,
(2) any casino game approved for play by the Illinois Gaming
Board, (3) any games provided by a video gaming terminal, as
defined in the Video Gaming Act, or (4) a savings promotion
raffle authorized under Section 5g of the Illinois Banking
Act, Section 7008 of the Savings Bank Act, Section 42.7 of the
Illinois Credit Union Act, Section 5136B of the National Bank
Act, or Section 4 of the Home Owners' Loan Act.
(Source: P.A. 101-109, eff. 7-19-19; 102-558, eff. 8-20-21.)
(230 ILCS 15/2) (from Ch. 85, par. 2302)
Sec. 2. Licensing.
(a) The governing body of any county or municipality
within this State may establish a system for the licensing of
organizations to operate raffles. The governing bodies of a
county and one or more municipalities may, pursuant to a
written contract, jointly establish a system for the licensing
of organizations to operate raffles within any area of
contiguous territory not contained within the corporate limits
of a municipality which is not a party to such contract. The
governing bodies of two or more adjacent counties or two or
more adjacent municipalities located within a county may,
pursuant to a written contract, jointly establish a system for
the licensing of organizations to operate raffles within the
corporate limits of such counties or municipalities. The
licensing authority may establish special categories of
licenses and promulgate rules relating to the various
categories. The licensing system shall provide for limitations
upon (1) the aggregate retail value of all prizes or
merchandise awarded by a licensee in a single raffle, if any,
(2) the maximum retail value of each prize awarded by a
licensee in a single raffle, if any, (3) the maximum price
which may be charged for each raffle chance issued or sold, if
any, and (4) the maximum number of days during which chances
may be issued or sold, if any. The licensing system may include
a fee for each license in an amount to be determined by the
local governing body. Licenses issued pursuant to this Act
shall be valid for one raffle or for a specified number of
raffles to be conducted during a specified period not to
exceed one year and may be suspended or revoked for any
violation of this Act. A local governing body shall act on a
license application within 30 days from the date of
application. A county or municipality may adopt rules or
ordinances for the operation of raffles that are consistent
with this Act. Raffles shall be licensed by the governing body
of the municipality with jurisdiction over the key location
or, if no municipality has jurisdiction over the key location,
then by the governing body of the county with jurisdiction
over the key location. A license shall authorize the holder of
such license to sell raffle chances throughout the State,
including beyond the borders of the licensing municipality or
county.
(a-5) The governing body of Cook County may and any other
county within this State shall establish a system for the
licensing of organizations to operate poker runs. The
governing bodies of 2 or more adjacent counties may, pursuant
to a written contract, jointly establish a system for the
licensing of organizations to operate poker runs within the
corporate limits of such counties. The licensing authority may
establish special categories of licenses and adopt rules
relating to the various categories. The licensing system may
include a fee not to exceed $25 for each license. Licenses
issued pursuant to this Act shall be valid for one poker run or
for a specified number of poker runs to be conducted during a
specified period not to exceed one year and may be suspended or
revoked for any violation of this Act. A local governing body
shall act on a license application within 30 days after the
date of application.
(b) Raffle licenses shall be issued only: (1) to bona fide
religious, charitable, labor, business, fraternal,
educational, veterans', or other bona fide not-for-profit
organizations that operate without profit to their members and
which have been in existence continuously for a period of 5
years immediately before making application for a raffle
license and which have during that entire 5-year period been
engaged in carrying out their objects, (2) or to a non-profit
fundraising organization that the licensing authority
determines is organized for the sole purpose of providing
financial assistance to an identified individual or group of
individuals suffering extreme financial hardship as the result
of an illness, disability, accident, or disaster, (3) or to
any law enforcement agencies and associations that represent
law enforcement officials, or (4) to any fire protection
agencies and associations that represent fire protection
officials. Poker run licenses shall be issued only to bona
fide religious, charitable, labor, business, fraternal,
educational, veterans', or other bona fide not-for-profit
organizations that operate without profit to their members and
which have been in existence continuously for a period of 5
years immediately before making application for a poker run
license and which have during that entire 5-year period been
engaged in carrying out their objects. Licenses for poker runs
shall be issued for the following purposes: (i) providing
financial assistance to an identified individual or group of
individuals suffering extreme financial hardship as the result
of an illness, disability, accident, or disaster or (ii) to
maintain the financial stability of the organization. A
licensing authority may waive the 5-year requirement under
this subsection (b) for a bona fide religious, charitable,
labor, business, fraternal, educational, or veterans'
organization that applies for a license to conduct a raffle or
a poker run if the organization is a local organization that is
affiliated with and chartered by a national or State
organization that meets the 5-year requirement.
For purposes of this Act, the following definitions apply.
Non-profit: An organization or institution organized and
conducted on a not-for-profit basis with no personal profit
inuring to any one as a result of the operation. Charitable: An
organization or institution organized and operated to benefit
an indefinite number of the public. The service rendered to
those eligible for benefits must also confer some benefit on
the public. Educational: An organization or institution
organized and operated to provide systematic instruction in
useful branches of learning by methods common to schools and
institutions of learning which compare favorably in their
scope and intensity with the course of study presented in
tax-supported schools. Religious: Any church, congregation,
society, or organization founded for the purpose of religious
worship. Fraternal: An organization of persons having a common
interest, the primary interest of which is to both promote the
welfare of its members and to provide assistance to the
general public in such a way as to lessen the burdens of
government by caring for those that otherwise would be cared
for by the government. Veterans: An organization or
association comprised of members of which substantially all
are individuals who are veterans or spouses, widows, or
widowers of veterans, the primary purpose of which is to
promote the welfare of its members and to provide assistance
to the general public in such a way as to confer a public
benefit. Labor: An organization composed of workers organized
with the objective of betterment of the conditions of those
engaged in such pursuit and the development of a higher degree
of efficiency in their respective occupations. Business: A
voluntary organization composed of individuals and businesses
who have joined together to advance the commercial, financial,
industrial and civic interests of a community.
(Source: P.A. 101-109, eff. 7-19-19; 101-360, eff. 1-1-20;
102-558, eff. 8-20-21.)
Section 30. The Video Gaming Act is amended by changing
Sections 5, 25, 27, 30, 45, 50, and 65 and by adding Section 90
as follows:
(230 ILCS 40/5)
Sec. 5. Definitions. As used in this Act:
"Board" means the Illinois Gaming Board.
"Credit" means one, 5, 10, or 25 cents either won or
purchased by a player.
"Distributor" means an individual, partnership,
corporation, or limited liability company licensed under this
Act to buy, sell, lease, or distribute video gaming terminals
or major components or parts of video gaming terminals to or
from terminal operators.
"Electronic card" means a card purchased from a licensed
establishment, licensed fraternal establishment, licensed
veterans establishment, licensed truck stop establishment, or
licensed large truck stop establishment for use in that
establishment as a substitute for cash in the conduct of
gaming on a video gaming terminal.
"Electronic voucher" means a voucher printed by an
electronic video game machine that is redeemable in the
licensed establishment for which it was issued.
"In-location bonus jackpot" means one or more video gaming
terminals at a single licensed establishment that allows for
wagers placed on such video gaming terminals to contribute to
a cumulative maximum jackpot of up to $10,000.
"Terminal operator" means an individual, partnership,
corporation, or limited liability company that is licensed
under this Act and that owns, services, and maintains video
gaming terminals for placement in licensed establishments,
licensed truck stop establishments, licensed large truck stop
establishments, licensed fraternal establishments, or licensed
veterans establishments.
"Licensed technician" means an individual who is licensed
under this Act to repair, service, and maintain video gaming
terminals.
"Licensed terminal handler" means a person, including but
not limited to an employee or independent contractor working
for a manufacturer, distributor, supplier, technician, or
terminal operator, who is licensed under this Act to possess
or control a video gaming terminal or to have access to the
inner workings of a video gaming terminal. A licensed terminal
handler does not include an individual, partnership,
corporation, or limited liability company defined as a
manufacturer, distributor, supplier, technician, or terminal
operator under this Act.
"Manufacturer" means an individual, partnership,
corporation, or limited liability company that is licensed
under this Act and that manufactures or assembles video gaming
terminals.
"Supplier" means an individual, partnership, corporation,
or limited liability company that is licensed under this Act
to supply major components or parts to video gaming terminals
to licensed terminal operators.
"Net terminal income" means money put into a video gaming
terminal minus credits paid out to players.
"Video gaming terminal" means any electronic video game
machine that, upon insertion of cash, electronic cards or
vouchers, or any combination thereof, is available to play or
simulate the play of a video game, including but not limited to
video poker, line up, and blackjack, as authorized by the
Board utilizing a video display and microprocessors in which
the player may receive free games or credits that can be
redeemed for cash. The term does not include a machine that
directly dispenses coins, cash, or tokens or is for amusement
purposes only.
"Licensed establishment" means any licensed retail
establishment where alcoholic liquor is drawn, poured, mixed,
or otherwise served for consumption on the premises, whether
the establishment operates on a nonprofit or for-profit basis.
"Licensed establishment" includes any such establishment that
has a contractual relationship with an inter-track wagering
location licensee licensed under the Illinois Horse Racing Act
of 1975, provided any contractual relationship shall not
include any transfer or offer of revenue from the operation of
video gaming under this Act to any licensee licensed under the
Illinois Horse Racing Act of 1975. Provided, however, that the
licensed establishment that has such a contractual
relationship with an inter-track wagering location licensee
may not, itself, be (i) an inter-track wagering location
licensee, (ii) the corporate parent or subsidiary of any
licensee licensed under the Illinois Horse Racing Act of 1975,
or (iii) the corporate subsidiary of a corporation that is
also the corporate parent or subsidiary of any licensee
licensed under the Illinois Horse Racing Act of 1975.
"Licensed establishment" does not include a facility operated
by an organization licensee, an inter-track wagering licensee,
or an inter-track wagering location licensee licensed under
the Illinois Horse Racing Act of 1975 or a riverboat licensed
under the Illinois Gambling Act, except as provided in this
paragraph. The changes made to this definition by Public Act
98-587 are declarative of existing law.
"Licensed fraternal establishment" means the location
where a qualified fraternal organization that derives its
charter from a national fraternal organization regularly
meets.
"Licensed veterans establishment" means the location where
a qualified veterans organization that derives its charter
from a national veterans organization regularly meets.
"Licensed truck stop establishment" means a facility (i)
that is at least a 3-acre facility with a convenience store,
(ii) with separate diesel islands for fueling commercial motor
vehicles, (iii) that sells at retail more than 10,000 gallons
of diesel or biodiesel fuel per month, and (iv) with parking
spaces for commercial motor vehicles. "Commercial motor
vehicles" has the same meaning as defined in Section 18b-101
of the Illinois Vehicle Code. The requirement of item (iii) of
this paragraph may be met by showing that estimated future
sales or past sales average at least 10,000 gallons per month.
"Licensed large truck stop establishment" means a facility
located within 3 road miles from a freeway interchange, as
measured in accordance with the Department of Transportation's
rules regarding the criteria for the installation of business
signs: (i) that is at least a 3-acre facility with a
convenience store, (ii) with separate diesel islands for
fueling commercial motor vehicles, (iii) that sells at retail
more than 50,000 gallons of diesel or biodiesel fuel per
month, and (iv) with parking spaces for commercial motor
vehicles. "Commercial motor vehicles" has the same meaning as
defined in Section 18b-101 of the Illinois Vehicle Code. The
requirement of item (iii) of this paragraph may be met by
showing that estimated future sales or past sales average at
least 50,000 gallons per month.
"Sales agent and broker" means an individual, partnership,
corporation, limited liability company, or other business
entity engaged in the solicitation or receipt of business from
current or potential licensed establishments, licensed
fraternal establishments, licensed veterans establishments,
licensed truck stop establishments, or licensed large truck
stop establishments either on an employment or contractual
basis.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 40/25)
Sec. 25. Restriction of licensees.
(a) Manufacturer. A person may not be licensed as a
manufacturer of a video gaming terminal in Illinois unless the
person has a valid manufacturer's license issued under this
Act. A manufacturer may only sell video gaming terminals for
use in Illinois to persons having a valid distributor's
license.
(b) Distributor. A person may not sell, distribute, or
lease or market a video gaming terminal in Illinois unless the
person has a valid distributor's license issued under this
Act. A distributor may only sell video gaming terminals for
use in Illinois to persons having a valid distributor's or
terminal operator's license.
(c) Terminal operator. A person may not own, maintain, or
place a video gaming terminal unless he has a valid terminal
operator's license issued under this Act. A terminal operator
may only place video gaming terminals for use in Illinois in
licensed establishments, licensed truck stop establishments,
licensed large truck stop establishments, licensed fraternal
establishments, and licensed veterans establishments. No
terminal operator may give anything of value, including but
not limited to a loan or financing arrangement, to a licensed
establishment, licensed truck stop establishment, licensed
large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment as any
incentive or inducement to locate video terminals in that
establishment. Of the after-tax profits from a video gaming
terminal, 50% shall be paid to the terminal operator and 50%
shall be paid to the licensed establishment, licensed truck
stop establishment, licensed large truck stop establishment,
licensed fraternal establishment, or licensed veterans
establishment, notwithstanding any agreement to the contrary.
A video terminal operator that violates one or more
requirements of this subsection is guilty of a Class 4 felony
and is subject to termination of his or her license by the
Board.
(d) Licensed technician. A person may not service,
maintain, or repair a video gaming terminal in this State
unless he or she (1) has a valid technician's license issued
under this Act, (2) is a terminal operator, or (3) is employed
by a terminal operator, distributor, or manufacturer.
(d-5) Licensed terminal handler. No person, including, but
not limited to, an employee or independent contractor working
for a manufacturer, distributor, supplier, technician, or
terminal operator licensed pursuant to this Act, shall have
possession or control of a video gaming terminal, or access to
the inner workings of a video gaming terminal, unless that
person possesses a valid terminal handler's license issued
under this Act.
(d-10) Solicitation of use agreements. A person may not
solicit the signing of a use agreement on behalf of a terminal
operator or enter into a use agreement as agent of a terminal
operator unless that person either has a valid sales agent and
broker license issued under this Act or owns, manages, or
significantly influences or controls the terminal operator.
(e) Licensed establishment. No video gaming terminal may
be placed in any licensed establishment, licensed veterans
establishment, licensed truck stop establishment, licensed
large truck stop establishment, or licensed fraternal
establishment unless the owner or agent of the owner of the
licensed establishment, licensed veterans establishment,
licensed truck stop establishment, licensed large truck stop
establishment, or licensed fraternal establishment has entered
into a written use agreement with the terminal operator for
placement of the terminals. A copy of the use agreement shall
be on file in the terminal operator's place of business and
available for inspection by individuals authorized by the
Board. A licensed establishment, licensed truck stop
establishment, licensed veterans establishment, or licensed
fraternal establishment may operate up to 6 video gaming
terminals on its premises at any time. A licensed large truck
stop establishment may operate up to 10 video gaming terminals
on its premises at any time.
(f) (Blank).
(g) Financial interest restrictions. As used in this Act,
"substantial interest" in a partnership, a corporation, an
organization, an association, a business, or a limited
liability company means:
(A) When, with respect to a sole proprietorship, an
individual or his or her spouse owns, operates, manages,
or conducts, directly or indirectly, the organization,
association, or business, or any part thereof; or
(B) When, with respect to a partnership, the
individual or his or her spouse shares in any of the
profits, or potential profits, of the partnership
activities; or
(C) When, with respect to a corporation, an individual
or his or her spouse is an officer or director, or the
individual or his or her spouse is a holder, directly or
beneficially, of 5% or more of any class of stock of the
corporation; or
(D) When, with respect to an organization not covered
in (A), (B) or (C) above, an individual or his or her
spouse is an officer or manages the business affairs, or
the individual or his or her spouse is the owner of or
otherwise controls 10% or more of the assets of the
organization; or
(E) When an individual or his or her spouse furnishes
5% or more of the capital, whether in cash, goods, or
services, for the operation of any business, association,
or organization during any calendar year; or
(F) When, with respect to a limited liability company,
an individual or his or her spouse is a member, or the
individual or his or her spouse is a holder, directly or
beneficially, of 5% or more of the membership interest of
the limited liability company.
For purposes of this subsection (g), "individual" includes
all individuals or their spouses whose combined interest would
qualify as a substantial interest under this subsection (g)
and whose activities with respect to an organization,
association, or business are so closely aligned or coordinated
as to constitute the activities of a single entity.
(h) Location restriction. A licensed establishment,
licensed truck stop establishment, licensed large truck stop
establishment, licensed fraternal establishment, or licensed
veterans establishment that is (i) located within 1,000 feet
of a facility operated by an organization licensee licensed
under the Illinois Horse Racing Act of 1975 or the home dock of
a riverboat licensed under the Illinois Gambling Act or (ii)
located within 100 feet of a school or a place of worship under
the Religious Corporation Act, is ineligible to operate a
video gaming terminal. The location restrictions in this
subsection (h) do not apply if (A) a facility operated by an
organization licensee, a school, or a place of worship moves
to or is established within the restricted area after a
licensed establishment, licensed truck stop establishment,
licensed large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment becomes
licensed under this Act or (B) a school or place of worship
moves to or is established within the restricted area after a
licensed establishment, licensed truck stop establishment,
licensed large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment obtains its
original liquor license. For the purpose of this subsection,
"school" means an elementary or secondary public school, or an
elementary or secondary private school registered with or
recognized by the State Board of Education.
Notwithstanding the provisions of this subsection (h), the
Board may waive the requirement that a licensed establishment,
licensed truck stop establishment, licensed large truck stop
establishment, licensed fraternal establishment, or licensed
veterans establishment not be located within 1,000 feet from a
facility operated by an organization licensee licensed under
the Illinois Horse Racing Act of 1975 or the home dock of a
riverboat licensed under the Illinois Gambling Act. The Board
shall not grant such waiver if there is any common ownership or
control, shared business activity, or contractual arrangement
of any type between the establishment and the organization
licensee or owners licensee of a riverboat. The Board shall
adopt rules to implement the provisions of this paragraph.
(h-5) Restrictions on licenses in malls. The Board shall
not grant an application to become a licensed video gaming
location if the Board determines that granting the application
would more likely than not cause a terminal operator,
individually or in combination with other terminal operators,
licensed video gaming location, or other person or entity, to
operate the video gaming terminals in 2 or more licensed video
gaming locations as a single video gaming operation.
(1) In making determinations under this subsection
(h-5), factors to be considered by the Board shall
include, but not be limited to, the following:
(A) the physical aspects of the location;
(B) the ownership, control, or management of the
location;
(C) any arrangements, understandings, or
agreements, written or otherwise, among or involving
any persons or entities that involve the conducting of
any video gaming business or the sharing of costs or
revenues; and
(D) the manner in which any terminal operator or
other related entity markets, advertises, or otherwise
describes any location or locations to any other
person or entity or to the public.
(2) The Board shall presume, subject to rebuttal, that
the granting of an application to become a licensed video
gaming location within a mall will cause a terminal
operator, individually or in combination with other
persons or entities, to operate the video gaming terminals
in 2 or more licensed video gaming locations as a single
video gaming operation if the Board determines that
granting the license would create a local concentration of
licensed video gaming locations.
For the purposes of this subsection (h-5):
"Mall" means a building, or adjoining or connected
buildings, containing 4 or more separate locations.
"Video gaming operation" means the conducting of video
gaming and all related activities.
"Location" means a space within a mall containing a
separate business, a place for a separate business, or a place
subject to a separate leasing arrangement by the mall owner.
"Licensed video gaming location" means a licensed
establishment, licensed fraternal establishment, licensed
veterans establishment, licensed truck stop establishment, or
licensed large truck stop.
"Local concentration of licensed video gaming locations"
means that the combined number of licensed video gaming
locations within a mall exceed half of the separate locations
within the mall.
(i) Undue economic concentration. In addition to
considering all other requirements under this Act, in deciding
whether to approve the operation of video gaming terminals by
a terminal operator in a location, the Board shall consider
the impact of any economic concentration of such operation of
video gaming terminals. The Board shall not allow a terminal
operator to operate video gaming terminals if the Board
determines such operation will result in undue economic
concentration. For purposes of this Section, "undue economic
concentration" means that a terminal operator would have such
actual or potential influence over video gaming terminals in
Illinois as to:
(1) substantially impede or suppress competition among
terminal operators;
(2) adversely impact the economic stability of the
video gaming industry in Illinois; or
(3) negatively impact the purposes of the Video Gaming
Act.
The Board shall adopt rules concerning undue economic
concentration with respect to the operation of video gaming
terminals in Illinois. The rules shall include, but not be
limited to, (i) limitations on the number of video gaming
terminals operated by any terminal operator within a defined
geographic radius and (ii) guidelines on the discontinuation
of operation of any such video gaming terminals the Board
determines will cause undue economic concentration.
(j) The provisions of the Illinois Antitrust Act are fully
and equally applicable to the activities of any licensee under
this Act.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 40/27)
Sec. 27. Prohibition of video gaming by political
subdivision.
(a) A municipality may pass an ordinance prohibiting video
gaming within the corporate limits of the municipality. A
county board may, for the unincorporated area of the county,
pass an ordinance prohibiting video gaming within the
unincorporated area of the county.
(b) On and after July 1, 2022, a qualified fraternal
organization that derives its charter from a national
fraternal organization and a qualified veterans organization
that derives its charter from a national veterans organization
shall be eligible to apply to the Board for a license allowing
video gaming as a licensed fraternal establishment or a
licensed veterans establishment if the proposed fraternal
establishment or veterans establishment is located in:
(1) a municipality having a population of not more
than 1,000,000 that has enacted an ordinance prohibiting
video gaming within the corporate limits; or
(2) a county having a population of not more than
1,000,000 that has enacted an ordinance prohibiting video
gaming within the unincorporated area of the county.
If the license is granted by the Board, then the licensed
fraternal establishment or licensed veterans establishment may
operate video gaming terminals pursuant to this Act.
(Source: P.A. 96-34, eff. 7-13-09.)
(230 ILCS 40/30)
Sec. 30. Multiple types of licenses prohibited. A video
gaming terminal manufacturer may not be licensed as a video
gaming terminal operator or own, manage, or control a licensed
establishment, licensed truck stop establishment, licensed
large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment, and shall
be licensed to sell only to persons having a valid
distributor's license or, if the manufacturer also holds a
valid distributor's license, to sell, distribute, lease, or
market to persons having a valid terminal operator's license.
A video gaming terminal distributor may not be licensed as a
video gaming terminal operator or own, manage, or control a
licensed establishment, licensed truck stop establishment,
licensed large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment, and shall
only contract with a licensed terminal operator. A video
gaming terminal operator may not be licensed as a video gaming
terminal manufacturer or distributor or own, manage, or
control a licensed establishment, licensed truck stop
establishment, licensed large truck stop establishment,
licensed fraternal establishment, or licensed veterans
establishment, and shall be licensed only to contract with
licensed distributors and licensed establishments, licensed
truck stop establishments, licensed large truck stop
establishments, licensed fraternal establishments, and
licensed veterans establishments. An owner or manager of a
licensed establishment, licensed truck stop establishment,
licensed large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment may not be
licensed as a video gaming terminal manufacturer, distributor,
or operator, and shall only contract with a licensed operator
to place and service this equipment. A sales agent and broker
may not be licensed as a manufacturer, distributor, supplier,
licensed establishment, licensed fraternal establishment,
licensed veterans establishment, licensed truck stop
establishment, or licensed large truck stop establishment.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 40/45)
Sec. 45. Issuance of license.
(a) The burden is upon each applicant to demonstrate his
suitability for licensure. Each video gaming terminal
manufacturer, distributor, supplier, operator, handler,
licensed establishment, licensed truck stop establishment,
licensed large truck stop establishment, licensed fraternal
establishment, and licensed veterans establishment shall be
licensed by the Board. The Board may issue or deny a license
under this Act to any person pursuant to the same criteria set
forth in Section 9 of the Illinois Gambling Act.
(a-5) The Board shall not grant a license to a person who
has facilitated, enabled, or participated in the use of
coin-operated devices for gambling purposes or who is under
the significant influence or control of such a person. For the
purposes of this Act, "facilitated, enabled, or participated
in the use of coin-operated amusement devices for gambling
purposes" means that the person has been convicted of any
violation of Article 28 of the Criminal Code of 1961 or the
Criminal Code of 2012. If there is pending legal action
against a person for any such violation, then the Board shall
delay the licensure of that person until the legal action is
resolved.
(b) Each person seeking and possessing a license as a
video gaming terminal manufacturer, distributor, supplier,
operator, handler, licensed establishment, licensed truck stop
establishment, licensed large truck stop establishment,
licensed fraternal establishment, or licensed veterans
establishment shall submit to a background investigation
conducted by the Board with the assistance of the Illinois
State Police or other law enforcement. To the extent that the
corporate structure of the applicant allows, the background
investigation shall include any or all of the following as the
Board deems appropriate or as provided by rule for each
category of licensure: (i) each beneficiary of a trust, (ii)
each partner of a partnership, (iii) each member of a limited
liability company, (iv) each director and officer of a
publicly or non-publicly held corporation, (v) each
stockholder of a non-publicly held corporation, (vi) each
stockholder of 5% or more of a publicly held corporation, or
(vii) each stockholder of 5% or more in a parent or subsidiary
corporation.
(c) Each person seeking and possessing a license as a
video gaming terminal manufacturer, distributor, supplier,
operator, handler, licensed establishment, licensed truck stop
establishment, licensed large truck stop establishment,
licensed fraternal establishment, or licensed veterans
establishment shall disclose the identity of every person,
association, trust, corporation, or limited liability company
having a greater than 1% direct or indirect pecuniary interest
in the video gaming terminal operation for which the license
is sought. If the disclosed entity is a trust, the application
shall disclose the names and addresses of the beneficiaries;
if a corporation, the names and addresses of all stockholders
and directors; if a limited liability company, the names and
addresses of all members; or if a partnership, the names and
addresses of all partners, both general and limited.
(d) No person may be licensed as a video gaming terminal
manufacturer, distributor, supplier, operator, handler,
licensed establishment, licensed truck stop establishment,
licensed large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment if that
person has been found by the Board to:
(1) have a background, including a criminal record,
reputation, habits, social or business associations, or
prior activities that pose a threat to the public
interests of the State or to the security and integrity of
video gaming;
(2) create or enhance the dangers of unsuitable,
unfair, or illegal practices, methods, and activities in
the conduct of video gaming; or
(3) present questionable business practices and
financial arrangements incidental to the conduct of video
gaming activities.
(e) Any applicant for any license under this Act has the
burden of proving his or her qualifications to the
satisfaction of the Board. The Board may adopt rules to
establish additional qualifications and requirements to
preserve the integrity and security of video gaming in this
State.
(f) A non-refundable application fee shall be paid at the
time an application for a license is filed with the Board in
the following amounts:
(1) Manufacturer..........................$5,000
(2) Distributor...........................$5,000
(3) Terminal operator.....................$5,000
(4) Supplier..............................$2,500
(5) Technician..............................$100
(6) Terminal Handler........................$100
(7) Licensed establishment, licensed truck stop
establishment, licensed large truck stop establishment,
licensed fraternal establishment, or licensed
veterans establishment...............................$100
(8) Sales agent and broker.......................$100
(g) The Board shall establish an annual fee for each
license not to exceed the following:
(1) Manufacturer.........................$10,000
(2) Distributor..........................$10,000
(3) Terminal operator.....................$5,000
(4) Supplier..............................$2,000
(5) Technician..............................$100
(6) Licensed establishment, licensed truck stop
establishment, licensed large truck stop establishment,
licensed fraternal establishment, or licensed
veterans establishment..........................$100
(7) Video gaming terminal...................$100
(8) Terminal Handler............................$100
(9) Sales agent and broker.......................$100
(h) A terminal operator and a licensed establishment,
licensed truck stop establishment, licensed large truck stop
establishment, licensed fraternal establishment, or licensed
veterans establishment shall equally split the fees specified
in item (7) of subsection (g).
(Source: P.A. 101-31, eff. 6-28-19; 102-538, eff. 8-20-21.)
(230 ILCS 40/50)
Sec. 50. Distribution of license fees.
(a) All fees collected under Section 45 shall be deposited
into the State Gaming Fund.
(b) Fees collected under Section 45 shall be used as
follows:
(1) Twenty-five percent shall be paid, subject to
appropriation by the General Assembly, to the Department
of Human Services for administration of programs for the
treatment of compulsive gambling.
(2) Seventy-five percent shall be used for the
administration of this Act.
(c) All initial terminal handler, technician, sales agent
and broker, licensed establishment, licensed truck stop
establishment, licensed large truck establishment, licensed
fraternal establishment, and licensed fraternal establishment
licenses issued by the Board under this Act shall be issued for
2 years and are renewable for additional 2-year periods
annually unless sooner cancelled or terminated. Except as
provided by Section 8.1 of the Illinois Gambling Act, all
initial manufacturer, distributor, supplier, and terminal
operator licenses issued by the Board under this Act shall be
issued for 4 years and are renewable for additional 4-year
periods unless sooner cancelled or terminated. No license
issued under this Act is transferable or assignable.
(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
(230 ILCS 40/65)
Sec. 65. Fees. A Except as provided in this Section, a
non-home rule unit of government may not impose any fee for the
operation of a video gaming terminal in excess of $250 $25 per
year. The City of Rockford may not impose any fee for the
operation of a video gaming terminal in excess of $250 per
year.
The cost of any fee imposed under this Act by any home rule
unit of government or non-home rule unit of government shall
be shared equally between the terminal operator and the
applicable licensed establishment, licensed veterans
establishment, licensed truck stop establishment, licensed
large truck stop establishment, or licensed fraternal
establishment under this Act.
(Source: P.A. 101-337, eff. 1-1-20.)
(230 ILCS 40/90 new)
Sec. 90. Regulation by State.
(a) The licensure, registration, and regulation of
manufacturers, distributors, terminal operators, licensed
technicians, licensed terminal handlers, licensed
establishments, licensed veterans establishments, licensed
truck stop establishments, licensed large truck stop
establishments, and licensed fraternal establishments under
this Act, and the imposition of fees and other charges under
this Act in connection with such licensure, registration, and
regulation, are powers and functions of the State. No non-home
rule unit may license, register, or otherwise regulate, or
impose any type of fee or any other charge upon, a
manufacturer, distributor, terminal operator, licensed
technician, licensed terminal handler, licensed establishment,
licensed veterans establishment, licensed truck stop
establishment, licensed large truck stop establishment, or
licensed fraternal establishment.
(b) The licensure, registration, and regulation of video
gaming terminals under this Act are powers and functions of
the State. No non-home rule unit may license, register, or
otherwise regulate video gaming terminals.
(c) No home rule municipality or non-home rule unit may
impose any type of tax upon a: (i) manufacturer, distributor,
terminal operator, licensed technician, licensed terminal
handler, licensed establishment, licensed veterans
establishment, licensed truck stop establishment, licensed
large truck stop establishment, or licensed fraternal
establishment or their respective authorized activities under
this Act; (ii) video gaming terminal; (iii) user or player of
any video gaming terminals; or (iv) other use, play, or
operation of video gaming terminals authorized under this Act
by any person or entity. This subsection (c) is a denial and
limitation of home rule powers and functions under subsection
(g) of Section 6 of Article VII of the Illinois Constitution.
(d) Any home rule municipality that has adopted an
ordinance imposing an amusement tax on persons who participate
in the playing of video gaming terminals before November 1,
2021 may continue to impose such amusement tax pursuant to
such ordinance but shall not increase, expand, or extend the
tax or tax rate on such persons participating in playing video
gaming terminals in excess of that tax or rate set forth in
such ordinance and shall not otherwise impose any other tax
upon any entity or person identified in subsection (c). This
subsection (d) is a denial and limitation of home rule powers
and functions under subsection (g) of Section 6 of Article VII
of the Illinois Constitution.
Section 35. The Sports Wagering Act is amended by changing
Sections 25-10, 25-15, 25-25, 25-30, 25-35, 25-40, and 25-50
as follows:
(230 ILCS 45/25-10)
Sec. 25-10. Definitions. As used in this Act:
"Adjusted gross sports wagering receipts" means a master
sports wagering licensee's gross sports wagering receipts,
less winnings paid to wagerers in such games.
"Athlete" means any current or former professional athlete
or collegiate athlete.
"Board" means the Illinois Gaming Board.
"Covered persons" includes athletes; umpires, referees,
and officials; personnel associated with clubs, teams,
leagues, and athletic associations; medical professionals
(including athletic trainers) who provide services to athletes
and players; and the family members and associates of these
persons where required to serve the purposes of this Act.
"Department" means the Department of the Lottery.
"Gaming facility" means a facility at which gambling
operations are conducted under the Illinois Gambling Act,
pari-mutuel wagering is conducted under the Illinois Horse
Racing Act of 1975, or sports wagering is conducted under this
Act.
"Official league data" means statistics, results,
outcomes, and other data related to a sports event obtained
pursuant to an agreement with the relevant sports governing
body, or an entity expressly authorized by the sports
governing body to provide such information to licensees, that
authorizes the use of such data for determining the outcome of
tier 2 sports wagers on such sports events.
"Organization licensee" has the meaning given to that term
in the Illinois Horse Racing Act of 1975.
"Owners licensee" means the holder of an owners license
under the Illinois Gambling Act.
"Person" means an individual, partnership, committee,
association, corporation, or any other organization or group
of persons.
"Personal biometric data" means an athlete's information
derived from DNA, heart rate, blood pressure, perspiration
rate, internal or external body temperature, hormone levels,
glucose levels, hydration levels, vitamin levels, bone
density, muscle density, and sleep patterns.
"Prohibited conduct" includes any statement, action, and
other communication intended to influence, manipulate, or
control a betting outcome of a sporting contest or of any
individual occurrence or performance in a sporting contest in
exchange for financial gain or to avoid financial or physical
harm. "Prohibited conduct" includes statements, actions, and
communications made to a covered person by a third party, such
as a family member or through social media. "Prohibited
conduct" does not include statements, actions, or
communications made or sanctioned by a team or sports
governing body.
"Qualified applicant" means an applicant for a license
under this Act whose application meets the mandatory minimum
qualification criteria as required by the Board.
"Sporting contest" means a sports event or game on which
the State allows sports wagering to occur under this Act.
"Sports event" means a professional sport or athletic
event, a collegiate sport or athletic event, a motor race
event, or any other event or competition of relative skill
authorized by the Board under this Act.
"Sports facility" means a facility that hosts sports
events and holds a seating capacity greater than 17,000
persons, except in a municipality with a population of more
than 1,000,000, a seating capacity greater than 10,000
persons.
"Sports governing body" means the organization that
prescribes final rules and enforces codes of conduct with
respect to a sports event and participants therein.
"Sports wagering" means accepting wagers on sports events
or portions of sports events, or on the individual performance
statistics of athletes in a sports event or combination of
sports events, by any system or method of wagering, including,
but not limited to, in person or over the Internet through
websites and on mobile devices. "Sports wagering" includes,
but is not limited to, single-game bets, teaser bets, parlays,
over-under, moneyline, pools, exchange wagering, in-game
wagering, in-play bets, proposition bets, and straight bets.
"Sports wagering account" means a financial record
established by a master sports wagering licensee for an
individual patron in which the patron may deposit and withdraw
funds for sports wagering and other authorized purchases and
to which the master sports wagering licensee may credit
winnings or other amounts due to that patron or authorized by
that patron.
"Tier 1 sports wager" means a sports wager that is
determined solely by the final score or final outcome of the
sports event and is placed before the sports event has begun.
"Tier 2 sports wager" means a sports wager that is not a
tier 1 sports wager.
"Wager" means a sum of money or thing of value risked on an
uncertain occurrence.
"Winning bidder" means a qualified applicant for a master
sports wagering license chosen through the competitive
selection process under Section 25-45.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 45/25-15)
Sec. 25-15. Board duties and powers.
(a) Except for sports wagering conducted under Section
25-70, the Board shall have the authority to regulate the
conduct of sports wagering under this Act.
(b) The Board may adopt any rules the Board considers
necessary for the successful implementation, administration,
and enforcement of this Act, except for Section 25-70. Rules
proposed by the Board may be adopted as emergency rules
pursuant to Section 5-45 of the Illinois Administrative
Procedure Act.
(c) The Board shall levy and collect all fees, surcharges,
civil penalties, and monthly taxes on adjusted gross sports
wagering receipts imposed by this Act and deposit all moneys
into the Sports Wagering Fund, except as otherwise provided
under this Act.
(d) The Board may exercise any other powers necessary to
enforce the provisions of this Act that it regulates and the
rules of the Board.
(e) The Board shall adopt rules for a license to be
employed by a master sports wagering licensee when the
employee works in a designated gaming area that has sports
wagering or performs duties in furtherance of or associated
with the operation of sports wagering by the master sports
wagering licensee (occupational license), which shall require
an annual license fee of $250. However, occupational licenses
issued under the Illinois Gambling Act for employees of an
owners license or organization gaming licensee, once granted,
are considered equivalent licenses to work in sports wagering
positions located at the same gaming facility. License fees
shall be deposited into the State Gaming Fund and used for the
administration of this Act.
(f) The Board may require that licensees share, in real
time and at the sports wagering account level, information
regarding a wagerer, amount and type of wager, the time the
wager was placed, the location of the wager, including the
Internet protocol address, if applicable, the outcome of the
wager, and records of abnormal wagering activity. Information
shared under this subsection (f) must be submitted in the form
and manner as required by rule. If a sports governing body has
notified the Board that real-time information sharing for
wagers placed on its sports events is necessary and desirable,
licensees may share the same information in the form and
manner required by the Board by rule with the sports governing
body or its designee with respect to wagers on its sports
events subject to applicable federal, State, or local laws or
regulations, including, without limitation, privacy laws and
regulations. Such information may be provided in anonymized
form and may be used by a sports governing body solely for
integrity purposes. For purposes of this subsection (f),
"real-time" means a commercially reasonable periodic interval.
(g) A master sports wagering licensee, professional sports
team, league, or association, sports governing body, or
institution of higher education may submit to the Board in
writing a request to prohibit a type or form of wagering if the
master sports wagering licensee, professional sports team,
league, or association, sports governing body, or institution
of higher education believes that such wagering by type or
form is contrary to public policy, unfair to consumers, or
affects the integrity of a particular sport or the sports
betting industry. The Board shall grant the request upon a
demonstration of good cause from the requester and
consultation with licensees. The Board shall respond to a
request pursuant to this subsection (g) concerning a
particular event before the start of the event or, if it is not
feasible to respond before the start of the event, as soon as
practicable.
(h) The Board and master sports wagering licensees may
cooperate with investigations conducted by sports governing
bodies or law enforcement agencies, including, but not limited
to, providing and facilitating the provision of account-level
betting information and audio or video files relating to
persons placing wagers.
(i) A master sports wagering licensee shall make
commercially reasonable efforts to promptly notify the Board
any information relating to:
(1) criminal or disciplinary proceedings commenced
against the master sports wagering licensee in connection
with its operations;
(2) abnormal wagering activity or patterns that may
indicate a concern with the integrity of a sports event or
sports events;
(3) any potential breach of the relevant sports
governing body's internal rules and codes of conduct
pertaining to sports wagering that a licensee has
knowledge of;
(4) any other conduct that corrupts a wagering outcome
of a sports event or sports events for purposes of
financial gain, including match fixing; and
(5) suspicious or illegal wagering activities,
including use of funds derived from illegal activity,
wagers to conceal or launder funds derived from illegal
activity, using agents to place wagers, and using false
identification.
A master sports wagering licensee shall also make
commercially reasonable efforts to promptly report information
relating to conduct described in paragraphs (2), (3), and (4)
of this subsection (i) to the relevant sports governing body.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 45/25-25)
Sec. 25-25. Sports wagering authorized.
(a) Notwithstanding any provision of law to the contrary,
the operation of sports wagering is only lawful when conducted
in accordance with the provisions of this Act and the rules of
the Illinois Gaming Board and the Department of the Lottery.
(b) A person placing a wager under this Act shall be at
least 21 years of age.
(c) A licensee under this Act may not accept a wager on a
minor league sports event.
(d) Except as otherwise provided in this Section, a A
licensee under this Act may not accept a wager for a sports
event involving an Illinois collegiate team.
(d-5) Beginning on the effective date of this amendatory
Act of the 102nd General Assembly until July 1, 2023, a
licensee under this Act may accept a wager for a sports event
involving an Illinois collegiate team if:
(1) the wager is a tier 1 wager;
(2) the wager is not related to an individual
athlete's performance; and
(3) the wager is made in person instead of over the
Internet or through a mobile application.
(e) A licensee under this Act may only accept a wager from
a person physically located in the State.
(f) Master sports wagering licensees may use any data
source for determining the results of all tier 1 sports
wagers.
(g) A sports governing body headquartered in the United
States may notify the Board that it desires to supply official
league data to master sports wagering licensees for
determining the results of tier 2 sports wagers. Such
notification shall be made in the form and manner as the Board
may require. If a sports governing body does not notify the
Board of its desire to supply official league data, a master
sports wagering licensee may use any data source for
determining the results of any and all tier 2 sports wagers on
sports contests for that sports governing body.
Within 30 days of a sports governing body notifying the
Board, master sports wagering licensees shall use only
official league data to determine the results of tier 2 sports
wagers on sports events sanctioned by that sports governing
body, unless: (1) the sports governing body or designee cannot
provide a feed of official league data to determine the
results of a particular type of tier 2 sports wager, in which
case master sports wagering licensees may use any data source
for determining the results of the applicable tier 2 sports
wager until such time as such data feed becomes available on
commercially reasonable terms; or (2) a master sports wagering
licensee can demonstrate to the Board that the sports
governing body or its designee cannot provide a feed of
official league data to the master sports wagering licensee on
commercially reasonable terms. During the pendency of the
Board's determination, such master sports wagering licensee
may use any data source for determining the results of any and
all tier 2 sports wagers.
(h) A licensee under this Act may not accept wagers on a
kindergarten through 12th grade sports event.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 45/25-30)
Sec. 25-30. Master sports wagering license issued to an
organization licensee.
(a) An organization licensee may apply to the Board for a
master sports wagering license. To the extent permitted by
federal and State law, the Board shall actively seek to
achieve racial, ethnic, and geographic diversity when issuing
master sports wagering licenses to organization licensees and
encourage minority-owned businesses, women-owned businesses,
veteran-owned businesses, and businesses owned by persons with
disabilities to apply for licensure. Additionally, the report
published under subsection (m) of Section 25-45 shall impact
the issuance of the master sports wagering license to the
extent permitted by federal and State law.
For the purposes of this subsection (a), "minority-owned
business", "women-owned business", and "business owned by
persons with disabilities" have the meanings given to those
terms in Section 2 of the Business Enterprise for Minorities,
Women, and Persons with Disabilities Act.
(b) Except as otherwise provided in this subsection (b),
the initial license fee for a master sports wagering license
for an organization licensee is 5% of its handle from the
preceding calendar year or the lowest amount that is required
to be paid as an initial license fee by an owners licensee
under subsection (b) of Section 25-35, whichever is greater.
No initial license fee shall exceed $10,000,000. An
organization licensee licensed on the effective date of this
Act shall pay the initial master sports wagering license fee
by July 1, 2021. For an organization licensee licensed after
the effective date of this Act, the master sports wagering
license fee shall be $5,000,000, but the amount shall be
adjusted 12 months after the organization licensee begins
racing operations based on 5% of its handle from the first 12
months of racing operations. The master sports wagering
license is valid for 4 years.
(c) The organization licensee may renew the master sports
wagering license for a period of 4 years by paying a $1,000,000
renewal fee to the Board.
(d) An organization licensee issued a master sports
wagering license may conduct sports wagering:
(1) at its facility at which inter-track wagering is
conducted pursuant to an inter-track wagering license
under the Illinois Horse Racing Act of 1975;
(2) at 3 inter-track wagering locations if the
inter-track wagering location licensee from which it
derives its license is an organization licensee that is
issued a master sports wagering license; and
(3) over the Internet or through a mobile application.
(e) The sports wagering offered over the Internet or
through a mobile application shall only be offered under
either the same brand as the organization licensee is
operating under or a brand owned by a direct or indirect
holding company that owns at least an 80% interest in that
organization licensee on the effective date of this Act.
(f) Until issuance of the first license under Section
25-45 or March 5, 2022, whichever occurs first, an individual
must create a sports wagering account in person at a facility
under paragraph (1) or (2) of subsection (d) to participate in
sports wagering offered over the Internet or through a mobile
application.
(Source: P.A. 101-31, eff. 6-28-19; 101-648, eff. 6-30-20.)
(230 ILCS 45/25-35)
Sec. 25-35. Master sports wagering license issued to an
owners licensee.
(a) An owners licensee may apply to the Board for a master
sports wagering license. To the extent permitted by federal
and State law, the Board shall actively seek to achieve
racial, ethnic, and geographic diversity when issuing master
sports wagering licenses to owners licensees and encourage
minority-owned businesses, women-owned businesses,
veteran-owned businesses, and businesses owned by persons with
disabilities to apply for licensure. Additionally, the report
published under subsection (m) of Section 25-45 shall impact
the issuance of the master sports wagering license to the
extent permitted by federal and State law.
For the purposes of this subsection (a), "minority-owned
business", "women-owned business", and "business owned by
persons with disabilities" have the meanings given to those
terms in Section 2 of the Business Enterprise for Minorities,
Women, and Persons with Disabilities Act.
(b) Except as otherwise provided in subsection (b-5), the
initial license fee for a master sports wagering license for
an owners licensee is 5% of its adjusted gross receipts from
the preceding calendar year. No initial license fee shall
exceed $10,000,000. An owners licensee licensed on the
effective date of this Act shall pay the initial master sports
wagering license fee by July 1, 2021. The master sports
wagering license is valid for 4 years.
(b-5) For an owners licensee licensed after the effective
date of this Act, the master sports wagering license fee shall
be $5,000,000, but the amount shall be adjusted 12 months
after the owners licensee begins gambling operations under the
Illinois Gambling Act based on 5% of its adjusted gross
receipts from the first 12 months of gambling operations. The
master sports wagering license is valid for 4 years.
(c) The owners licensee may renew the master sports
wagering license for a period of 4 years by paying a $1,000,000
renewal fee to the Board.
(d) An owners licensee issued a master sports wagering
license may conduct sports wagering:
(1) at its facility in this State that is authorized
to conduct gambling operations under the Illinois Gambling
Act; and
(2) over the Internet or through a mobile application.
(e) The sports wagering offered over the Internet or
through a mobile application shall only be offered under
either the same brand as the owners licensee is operating
under or a brand owned by a direct or indirect holding company
that owns at least an 80% interest in that owners licensee on
the effective date of this Act.
(f) Until issuance of the first license under Section
25-45 or March 5, 2022, whichever occurs first, an individual
must create a sports wagering account in person at a facility
under paragraph (1) of subsection (d) to participate in sports
wagering offered over the Internet or through a mobile
application.
(Source: P.A. 101-31, eff. 6-28-19; 101-648, eff. 6-30-20.)
(230 ILCS 45/25-40)
Sec. 25-40. Master sports wagering license issued to a
sports facility.
(a) As used in this Section, "designee" means a master
sports wagering licensee under Section 25-30, 25-35, or 25-45
or a management services provider licensee.
(b) A sports facility or a designee contracted to operate
sports wagering at or within a 5-block radius of the sports
facility may apply to the Board for a master sports wagering
license. To the extent permitted by federal and State law, the
Board shall actively seek to achieve racial, ethnic, and
geographic diversity when issuing master sports wagering
licenses to sports facilities or their designees and encourage
minority-owned businesses, women-owned businesses,
veteran-owned businesses, and businesses owned by persons with
disabilities to apply for licensure. Additionally, the report
published under subsection (m) of Section 25-45 shall impact
the issuance of the master sports wagering license to the
extent permitted by federal and State law.
For the purposes of this subsection (b), "minority-owned
business", "women-owned business", and "business owned by
persons with disabilities" have the meanings given to those
terms in Section 2 of the Business Enterprise for Minorities,
Women, and Persons with Disabilities Act.
(c) The Board may issue up to 7 master sports wagering
licenses to sports facilities or their designees that meet the
requirements for licensure as determined by rule by the Board.
If more than 7 qualified applicants apply for a master sports
wagering license under this Section, the licenses shall be
granted in the order in which the applications were received.
If a license is denied, revoked, or not renewed, the Board may
begin a new application process and issue a license under this
Section in the order in which the application was received.
(d) The initial license fee for a master sports wagering
license for a sports facility is $10,000,000. The master
sports wagering license is valid for 4 years.
(e) The sports facility or its designee may renew the
master sports wagering license for a period of 4 years by
paying a $1,000,000 renewal fee to the Board.
(f) A sports facility or its designee issued a master
sports wagering license may conduct sports wagering at or
within a 5-block radius of the sports facility.
(g) A sports facility or its designee issued a master
sports wagering license may conduct sports wagering over the
Internet within the sports facility or within a 5-block radius
of the sports facility.
(h) The sports wagering offered by a sports facility or
its designee over the Internet or through a mobile application
shall be offered under the same brand as the sports facility is
operating under, the brand the designee is operating under, or
a combination thereof.
(i) Until issuance of the first license under Section
25-45 or March 5, 2022, whichever occurs first, an individual
must register in person at a sports facility or the designee's
facility to participate in sports wagering offered over the
Internet or through a mobile application.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 45/25-50)
Sec. 25-50. Supplier license.
(a) The Board may issue a supplier license to a person to
sell or lease sports wagering equipment, systems, or other
gaming items to conduct sports wagering and offer services
related to the equipment or other gaming items and data to a
master sports wagering licensee while the license is active.
(b) The Board may adopt rules establishing additional
requirements for a supplier and any system or other equipment
utilized for sports wagering. The Board may accept licensing
by another jurisdiction that it specifically determines to
have similar licensing requirements as evidence the applicant
meets supplier licensing requirements.
(c) An applicant for a supplier license shall demonstrate
that the equipment, system, or services that the applicant
plans to offer to the master sports wagering licensee conforms
to standards established by the Board and applicable State
law. The Board may accept approval by another jurisdiction
that it specifically determines have similar equipment
standards as evidence the applicant meets the standards
established by the Board and applicable State law.
(d) Applicants shall pay to the Board a nonrefundable
license and application fee in the amount of $150,000. Except
as provided by Section 8.1 of the Illinois Gambling Act, the
initial supplier license shall be issued for 4 years unless
sooner canceled or terminated. After the initial period 4-year
term, the Board shall renew supplier licenses for additional
4-year periods unless sooner canceled or terminated annually
thereafter. Renewal of a supplier license shall be granted to
a renewal applicant who has continued to comply with all
applicable statutory and regulatory requirements, upon
submission of the Board-issued renewal form and payment of a
$150,000 renewal fee. Beginning 4 years after issuance of the
initial supplier license, a holder of a supplier license shall
pay a $150,000 annual license fee.
(e) A supplier shall submit to the Board a list of all
sports wagering equipment and services sold, delivered, or
offered to a master sports wagering licensee in this State, as
required by the Board, all of which must be tested and approved
by an independent testing laboratory approved by the Board. A
master sports wagering licensee may continue to use supplies
acquired from a licensed supplier, even if a supplier's
license expires or is otherwise canceled, unless the Board
finds a defect in the supplies.
(Source: P.A. 101-31, eff. 6-28-19.)
Section 97. Severability. The provisions of this Act are
severable under Section 1.31 of the Statute on Statutes.
Section 99. Effective date. This Act takes effect upon
becoming law.
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