Bill Text: IL HB3633 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Creates the Fantasy Sports Contest Act to provide regulation of companies providing access to paid fantasy sports contests and protect Illinois consumers who play paid fantasy sports contests for prizes from unfair acts and practices that may arise in the gaming process. Provides for the licensure of fantasy sports contest operators by the Illinois Gaming Board. Contains provisions concerning definitions, applicability, authority of the Board, fantasy sports player accounts, data security requirements, restrictions on games offered, prohibited activities, advertising, withholding of delinquent child support, audits, annual reports, applications, background investigations, fees, imposition and distribution of a privilege tax, and limitations on taxation of fantasy sports contest operators. Amends the Regulatory Sunset Act to provide that the Fantasy Sports Contest Act is scheduled to be repealed on January 1, 2021. Amends the Public Aid Code to add a fantasy sports contest operator licensed under the Fantasy Sports Contest Act to the definition of "State gaming licensee" under provisions concerning certification to any State gaming licensee of past due child support. Amends the Criminal Code of 2012 to provide that participants in fantasy sports contests and participation in fantasy sports contests as defined and offered under the Fantasy Sports Contest Act shall not be convicted of gambling. Effective immediately.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Introduced) 2017-04-28 - Rule 19(a) / Re-referred to Rules Committee [HB3633 Detail]

Download: Illinois-2017-HB3633-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3633

Introduced , by Rep. Michael J. Zalewski

SYNOPSIS AS INTRODUCED:
New Act
5 ILCS 80/4.31
305 ILCS 5/10-17.15
720 ILCS 5/28-1 from Ch. 38, par. 28-1

Creates the Fantasy Sports Contest Act to provide regulation of companies providing access to paid fantasy sports contests and protect Illinois consumers who play paid fantasy sports contests for prizes from unfair acts and practices that may arise in the gaming process. Provides for the licensure of fantasy sports contest operators by the Illinois Gaming Board. Contains provisions concerning definitions, applicability, authority of the Board, fantasy sports player accounts, data security requirements, restrictions on games offered, prohibited activities, advertising, withholding of delinquent child support, audits, annual reports, applications, background investigations, fees, imposition and distribution of a privilege tax, and limitations on taxation of fantasy sports contest operators. Amends the Regulatory Sunset Act to provide that the Fantasy Sports Contest Act is scheduled to be repealed on January 1, 2021. Amends the Public Aid Code to add a fantasy sports contest operator licensed under the Fantasy Sports Contest Act to the definition of "State gaming licensee" under provisions concerning certification to any State gaming licensee of past due child support. Amends the Criminal Code of 2012 to provide that participants in fantasy sports contests and participation in fantasy sports contests as defined and offered under the Fantasy Sports Contest Act shall not be convicted of gambling. Effective immediately.
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CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY
FISCAL NOTE ACT MAY APPLY

A BILL FOR

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1 AN ACT concerning gaming.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5Fantasy Sports Contest Act.
6 Section 5. Legislative intent. This Act is designed to
7provide regulation of companies providing access to paid
8fantasy sports contests and protect Illinois consumers who play
9paid fantasy sports contests for prizes from unfair acts and
10practices that may arise in the gaming process. The regulation
11is also intended to protect the families of persons who play
12paid fantasy sports contests to the extent that they may be
13affected by unfair and deceptive practices that lead to
14unaffordable losses.
15 Section 10. Definitions. In this Act:
16 "Beginner fantasy sports player" means an individual who is
17at least 21 years of age and who has entered fewer than 51
18fantasy sports contests offered by a single fantasy sports
19contest operator.
20 "Board" means the Illinois Gaming Board.
21 "Confidential information" means information related to
22the play of a fantasy sports contest by fantasy sports players

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1obtained as a result of or by virtue of a person's employment
2with a fantasy sports contest operator.
3 "Entry fee" means the cash or cash equivalent paid by a
4fantasy sports player located in Illinois at the time of entry
5for participation in a fantasy sports contest.
6 "Fantasy sports contest" means any fantasy contest, in
7which:
8 (1) the value of all prizes and awards offered to
9 winning participants are established and made known to the
10 participants in advance of the contest and their value is
11 not determined by the number of participants or the amount
12 of any fees paid by those participants;
13 (2) all winning outcomes are determined predominantly
14 by accumulated statistical results of the performance of
15 individual athletes in real-world professional athletic
16 competitions; a professional athletic competition does not
17 include any amateur or collegiate level sport; and
18 (3) no winning outcome is based on the score, point
19 spread, or any performance or performances of any single
20 actual team or combination of such teams or solely on any
21 single performance of an individual athlete or player in
22 any single actual event.
23 A fantasy sports contest in a game or contest that involves
24individual athletes from real-world professional athletic
25teams, such as football, baseball, basketball, hockey, soccer,
26and other team sports: (i) shall consist of individual athletes

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1from at least 3 different real-world professional athletic
2teams and (ii) shall not have more than 4 individual athletes
3from a single real-world professional athletic team. However,
4the prohibition contained in item (ii) of this paragraph does
5not apply to a season-long fantasy sports contest.
6 "Fantasy sports contest operator" means any individual,
7partnership, corporation, or limited liability company that
8engages in the business of offering, by means of the Internet,
9a smart phone application, or other similar electronic or
10digital media or communication technologies, multiple fantasy
11sports contests to persons.
12 "Fantasy sports contest platform" means any website, smart
13phone application, or other portal providing access to a
14fantasy sports contest.
15 "Fantasy sports contest revenues" means the amount of entry
16fees collected from fantasy sports players located in Illinois
17accepted by a fantasy sports contest operator that are not
18awarded as prizes to fantasy sports players.
19 "Fantasy sports player" means an individual 21 years of age
20or over who enters into a fantasy sports contest with an entry
21fee offered by a fantasy sports contest operator.
22 "Highly experienced fantasy sports player" means an
23individual who is at least 21 years of age and has (1) entered
24more than 1,000 contests offered by a single fantasy sports
25contest operator or (2) has won more than 3 prizes valued at
26$1,000 or more. Once a fantasy sports player is classified as a

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1highly experienced fantasy sports player, a player shall remain
2classified as such.
3 "Minor" means an individual under 21 years of age.
4 "Prize" means anything of value, including money, contest
5credits, merchandise, or admission to another contest.
6 "Scripts" means commands that a fantasy sports
7contest-related computer program can execute that are created
8by fantasy sports players (or by third parties for the use of
9fantasy sports players) to automate processes on a fantasy
10sports contest platform.
11 "Season-long fantasy sports contest" means a fantasy
12sports contest offered by a fantasy sports contest operator
13that is conducted over an entire sports season where the entry
14fee is paid prior to the start of the season.
15 Section 15. Applicability. This Act and all rules adopted
16under the authority of this Act shall only apply to fantasy
17sports contests when an entry fee is paid by a fantasy sports
18player at the time of entry for participation in a fantasy
19sports contest.
20 Section 20. Authority of the Board.
21 (a) The Board shall have jurisdiction over and shall
22supervise all fantasy sports contests governed by this Act. The
23Board shall have all powers necessary and proper to fully and
24effectively execute the provisions of this Act, including, but

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1not limited to, the following:
2 (1) To investigate applicants and determine the
3 eligibility of applicants for licenses that best serve the
4 interests of the citizens of Illinois.
5 (2) To adopt such rules as in its judgment may be
6 necessary to protect or enhance the credibility and
7 integrity of fantasy sports contests authorized by this Act
8 and the regulatory process under this Act.
9 (3) To provide for the establishment and collection of
10 all license and registration fees and taxes imposed by this
11 Act and the rules issued pursuant to this Act. All license
12 fees shall be deposited into the State Gaming Fund, and all
13 taxes collected shall be deposited into the Education
14 Assistance Fund.
15 (4) To suspend, revoke, or restrict licenses; to
16 require the removal of a fantasy sports contest operator or
17 an employee of a fantasy sports contest operator for a
18 violation of this Act or a Board rule or for engaging in a
19 fraudulent practice; and to impose civil penalties of up to
20 $5,000 against individuals and up to $10,000 or an amount
21 equal to the fantasy sports contest revenues, whichever is
22 larger, against licensees for each violation of any
23 provision of the Act, any rules adopted by the Board, any
24 order of the Board, or any other action which, in the
25 Board's discretion, is a detriment or impediment to fantasy
26 sports contests.

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1 (5) To provide for the levy and collection of penalties
2 and fines for the violation of provisions of this Act and
3 the rules adopted under this Act. All such fines and
4 penalties shall be deposited into the State Gaming Fund.
5 (b) The Board shall adopt emergency rules to administer
6this Act in accordance with Section 5-45 of the Illinois
7Administrative Procedure Act. For the purposes of the Illinois
8Administrative Procedure Act, the General Assembly finds that
9the adoption of rules to implement this Act is deemed an
10emergency and necessary to the public interest, safety, and
11welfare.
12 Section 25. Fantasy sports player accounts.
13 (a) A fantasy sports contest operator shall not allow a
14fantasy sports player to create more than one username or more
15than one account. A fantasy sports contest operator shall take
16commercially and technologically reasonable measures to verify
17a fantasy sports player's true identity and address. A fantasy
18sports contest operator shall implement and prominently
19publish procedures to terminate all accounts of a fantasy
20sports player that establishes or seeks to establish more than
21one username or more than one account, whether directly or by
22use of another person as a proxy. The procedures may allow a
23fantasy sports player that establishes or seeks to establish
24more than one username or more than one account to retain one
25account provided that the fantasy sports contest operator

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1investigates and makes a good faith determination that the
2fantasy sports player's conduct was not intended to obtain a
3competitive advantage.
4 (b) Fantasy sports contest operators shall not allow
5fantasy sports players to use a proxy server for the purpose of
6misrepresenting their location in order to engage in fantasy
7sports contests.
8 (c) Fantasy sports contest operators shall implement and
9prominently publish procedures to terminate all accounts of any
10fantasy sports player that establishes or seeks to establish
11more than one username or more than one account, whether
12directly or by use of another person as a proxy. If an account
13is terminated for establishing or seeking to establish more
14than one username or more than one account, the account holder
15is prohibited from establishing another account with that
16fantasy sports contest operator.
17 (d) Fantasy sports contest operators shall take
18commercially and technologically reasonable measures to
19prevent one fantasy sports player from acting as a proxy for
20another. These measures shall include, without limitation, use
21of geolocation technologies to prevent simultaneous logins to a
22single account from geographically inconsistent locations.
23 Section 30. Protection of consumer funds on deposit and
24compliance with data security requirements.
25 (a) Fantasy sports contest operators shall comply with all

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1applicable State and federal requirements for data security,
2including, but not limited to, age verification and location
3software.
4 (b) Funds in fantasy sports players' accounts shall be held
5in segregated accounts by the fantasy sports contest operators
6for the fantasy sports players that establish the accounts.
7Fantasy sports contest operators shall implement and
8prominently publish procedures that:
9 (1) prevent unauthorized withdrawals from fantasy
10 sports player accounts by fantasy sports contest operators
11 or others;
12 (2) prevent commingling of funds in a fantasy sports
13 player's account with other funds, including, without
14 limitation, funds of the fantasy sports contest operator;
15 fantasy sports player funds shall be segregated from
16 fantasy sports contest operators' operational funds and
17 any other funds held by the fantasy sports contest
18 operator; and
19 (3) address reporting on complaints by fantasy sports
20 players that their accounts have been misallocated,
21 compromised, or otherwise mishandled.
22 (c) Fantasy sports contest operators shall implement and
23prominently publish procedures that allow any fantasy sports
24player to permanently close an account at any time and for any
25reason. The procedures shall allow for cancellation by any
26means, including, without limitation, by a fantasy sports

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1player on any fantasy sports contest platform used by that
2fantasy sports player to make deposits into a fantasy sports
3player account. A copy of a fantasy sports contest operator's
4procedures shall be submitted to the Board and any changes
5shall be submitted within 30 days.
6 (d) When a fantasy sports player account is closed, the
7fantasy sports contest operator shall refund all funds in the
8account no later than 5 business days after submission of the
9request or 10 business days after submission of any tax
10reporting information required by law, whichever is later,
11unless the fantasy sports contest operator makes a good faith
12determination that the fantasy sports player engaged in
13fraudulent or other conduct that would constitute a violation
14of this Act, rules adopted pursuant to this Act, or the fantasy
15sports contest operator's policies, in which case, upon notice
16to the fantasy sports player of that determination, the
17withdrawal may be held pending a reasonable investigative
18period to resolve its investigation. For the purposes of this
19subsection (d), a request for withdrawal shall be considered
20honored if it is processed by the fantasy sports contest
21operator, but delayed by a payment processor, a credit card
22issuer, or the custodian of the financial account.
23 (e) If a prize is awarded to a fantasy sports player with a
24closed account, that prize, to the extent it consists of funds,
25shall be distributed by the fantasy sports contest operator
26within 5 business days, or 10 business days of submission of

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1any tax reporting information required by law, unless the
2fantasy sports contest operator makes a good faith
3determination that the fantasy sports player engaged in
4fraudulent or other conduct that would constitute a violation
5of this Act or rules adopted pursuant to this Act. If such
6determination is made, then the prize may be withheld, provided
7that it is then awarded to another fantasy sports player in the
8same contest who would have won the prize had the fantasy
9sports player with the closed account not participated.
10 (f) A fantasy sports contest operator shall close any
11fantasy player account that is inactive for 2 years and notify
12the account holder that the account has been closed by email
13and by mail to the account holder's last known address. When a
14fantasy sports player account is closed due to inactivity, the
15fantasy sports contest operator shall refund all funds in the
16fantasy sports player account within 30 days, subject to the
17receipt of any tax information required by law. In the event
18that funds in a closed fantasy sports player account exceed $5
19and cannot be refunded and remain unclaimed, the fantasy sports
20contest operator shall provide notice of the existence of funds
21to the fantasy sports player no less often than annually for 3
22years. If the funds in a closed fantasy sports player account
23are for $5 or less, such notice shall be provided one time upon
24the closing of the account. Such notice shall be provided by
25email and by mail to the account holder's last known address
26and shall provide a process for claiming the funds. In the

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1event that funds in a closed fantasy sports player account
2cannot be refunded and remain unclaimed by the fantasy sports
3player after 3 years, such funds shall be paid by the fantasy
4sports contest operator to the Unclaimed Property Trust Fund in
5the Office of the State Treasurer.
6 (g) A fantasy sports contest operator shall prominently
7publish all contractual terms and conditions and rules of
8general applicability that affect a fantasy sports player's
9account. Presentation of such terms, conditions, and rules at
10the time of onboarding a new fantasy sports player shall not
11suffice.
12 (h) Fantasy sports player's deposits shall be limited to no
13more than $3,000 per quarter. However, a fantasy sports contest
14operator may establish and prominently publish procedures for
15temporarily or permanently increasing a fantasy sports
16player's deposit limit, at the request of the fantasy sports
17player, above $3,000 per quarter. Such procedures shall be
18submitted to the Board.
19 If established by a fantasy sports contest operator, such
20procedures shall include evaluation of information, including
21income or asset information, sufficient to establish that the
22fantasy sports player can afford losses that might result from
23gameplay at the deposit limit level requested.
24 When a temporary or permanent deposit level limit increase
25is approved, the fantasy sports contest operator's procedures
26shall provide for annual re-certification of a player's

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1financial ability to afford losses.
2 Section 35. Restrictions on games offered by a fantasy
3sports contest operator.
4 (a) All fantasy sports contest operators, except fantasy
5sports contest operators who only offer season-long fantasy
6sports contests, shall develop games that are limited to
7beginner fantasy sports players and shall prohibit fantasy
8sports players who are not beginner fantasy sports players from
9participating in those games either directly or through another
10person as a proxy. A fantasy sports contest operator shall
11suspend the account of any fantasy sports player who is not a
12beginner fantasy sports player and attempts to enter a game
13limited to beginner fantasy sports players directly or through
14another person as a proxy and shall ban such individual from
15further play.
16 (b) All fantasy sports contest operators, except fantasy
17sports contest operators who only offer season-long fantasy
18sports contests, shall develop games in which highly
19experienced fantasy sports players cannot participate either
20directly or through another person as a proxy. A fantasy sports
21contest operator shall suspend the account of any highly
22experienced fantasy sports player who attempts to enter a game
23that excludes highly experienced fantasy sports players
24directly or through another person as a proxy and shall ban
25such individual from further play. Fantasy sports contest

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1operators shall identify highly experienced fantasy sports
2players by a symbol attached to their username, or by other
3easily visible means, on all fantasy sports contest platforms.
4 (c) Fantasy sports contest operators shall have
5prominently published rules that govern when each fantasy
6sports contest shall close or lock. Each fantasy sports contest
7operator shall also prominently disclose contest-specific
8information about the time that the contest closes or locks in
9connection with each contest offered. A fantasy sports contest
10operator shall strictly enforce all disclosed closing or lock
11times.
12 (d) Fantasy sports contest operators shall restrict the
13number of entries into fantasy sports contests in the following
14manner:
15 (1) Fantasy sports contest operators shall not allow
16 fantasy sports players to submit more than one entry in any
17 fantasy sports contest involving 12 total entries or less.
18 (2) Fantasy sports contest operators shall not allow
19 fantasy sports players to submit more than 2 entries in any
20 fantasy sports contest involving 13 to 36 total entries.
21 (3) Fantasy sports contest operators shall not allow
22 fantasy sports players to submit more than 3 entries in any
23 fantasy sports contest involving 37 to 100 total entries.
24 (4) Fantasy sports contest operators shall not allow
25 fantasy sports players to submit more than 3% of all
26 entries in any contest involving more than 100 total

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1 entries.
2 (5) For all advertised fantasy sports contests, the
3 fantasy sports contest operator shall prominently include
4 information about the maximum number of entries that may be
5 submitted for that contest.
6 (e) Fantasy sports contest operators shall allow
7individuals to restrict themselves from entering fantasy
8sports contests under this Act. These restrictions shall
9include, but not be limited to, (1) fantasy sports contest
10entry limits, (2) limiting play to fantasy sports contest with
11entry fees below an established limit, and (3) self-imposed
12deposit limits less than allowed under this Act. Fantasy sports
13contest operators shall implement and prominently publish
14procedures for fantasy sports players to implement the
15restrictions. Fantasy sports players shall have the option to
16adjust these limits to make them more restrictive of gameplay
17as often as they like, but shall not have the option to make
18limits less restrictive of gameplay within 90 days after
19setting the limits.
20 Section 40. Prohibited activities by a fantasy sports
21contest operator.
22 (a) No fantasy sports contest operator employee,
23principal, officer, director, or contractor shall play on any
24fantasy sports contest platform of any fantasy sports contest
25operator or play through another person as a proxy. For the

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1purposes of this subsection (a), a contractor is limited to a
2contractor who can access information of a fantasy sports
3contest operator related to the conduct of a fantasy sports
4contest that is not available to other fantasy sports players.
5Fantasy sports contest operators shall make these restrictions
6known to all affected individuals and corporate entities.
7 (b) No fantasy sports contest operator employee,
8principal, officer, director, or contractor shall disclose
9confidential information that may affect fantasy sports
10contest gameplay to any person permitted to engage in fantasy
11sports contest gameplay. Fantasy sports contest operators
12shall make these restrictions known to all affected individuals
13and corporate entities.
14 (c) No fantasy sports contest operator shall allow a
15professional athlete whose individual statistics or
16performance may be used to determine any part of the outcome of
17any fantasy sports contest to enter fantasy sports contests in
18the sports in which he or she participates. A fantasy sports
19contest operator shall take commercially reasonable efforts to
20prevent a sports agent, team employee, referee, or league
21official associated with any competition that is the subject of
22fantasy sports contests to enter fantasy sports contests in the
23sport in which he or she participates, nor shall such athlete,
24sports agent, team official, team representative, referee, or
25league official play through another person as a proxy.
26 (1) Fantasy sports contest operators shall take

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1 commercially reasonable efforts to obtain lists of persons
2 described in this subsection (c) for the purpose of
3 implementing this subsection (c).
4 (2) Fantasy sports contest operators, upon learning of
5 a violation of this subsection (c), shall bar the
6 individual committing the violation from playing in any
7 fantasy sports contest by suspending the individual's
8 account and banning the individual from further play, shall
9 terminate any existing promotional agreements with the
10 individual, and shall refuse to make any new promotional
11 agreements that compensate the individual.
12 (3) Fantasy sports contest operators shall make these
13 restrictions known to all affected individuals and
14 corporate entities.
15 (d) No fantasy sports contest operator shall allow minors
16to create a fantasy sports contest account. Fantasy sports
17contest operators shall include age verification measures when
18establishing a fantasy sports contest account.
19 (e) No fantasy sports contest operator may extend credit to
20a fantasy sports player.
21 (f) A fantasy sports contest operator shall not permit
22unauthorized scripts to be used on fantasy sports contest
23platforms and shall use commercially reasonable efforts to
24monitor for and to prevent use of such scripts.
25 (g) A fantasy sports contest operator shall bar any
26individual or corporation found to be using an unauthorized

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1script from playing in any fantasy sports contest by
2terminating the individual or corporate account and by banning
3that individual or corporation from further play.
4 (h) A fantasy sports contest operator shall not authorize
5scripts that provide a player with a competitive advantage over
6another player.
7 (i) For the purpose of subsections (f), (g), and (h) of
8this Section, a script shall be treated as offering a
9competitive advantage for reasons including, but not limited
10to, its potential use to:
11 (1) facilitate entry of multiple contests with a single
12 line-up;
13 (2) facilitate changes in many line-ups at one time;
14 (3) facilitate use of commercial products designed and
15 distributed by third parties to identify advantageous game
16 strategies; or
17 (4) gather information about the performance of others
18 for the purpose of identifying or entering contests against
19 fantasy sports players who are less likely to be
20 successful.
21 Section 45. Advertising.
22 (a) Advertisements of fantasy sports contest operators
23shall not depict (i) minors (other than professional athletes
24who may be minors), (ii) students, (iii) schools, colleges, or
25universities, or (iv) school, college, or university settings.

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1However, incidental depiction of non-featured minors or minors
2accompanying adults shall not be a violation of this subsection
3(a).
4 (b) Fantasy sports contest operators shall not advertise on
5school, college, or university campuses.
6 (c) Fantasy sports contest operators shall not advertise at
7amateur athletic competitions, except to the extent that those
8competitions are played in stadiums where professional
9competitions are held and where non-digital advertisements
10have been posted, erected, or otherwise displayed in a manner
11that would require substantial effort to remove.
12 Section 50. Withholding of delinquent child support.
13 (a) From individual winnings of $600 or more that are
14subject to reporting to the Internal Revenue Service on Form
151099, a fantasy sports contest operator shall withhold up to
16the full amount of winnings necessary to pay the winner's past
17due child support amount as certified by the Department of
18Healthcare and Family Services under Section 10-17.15 of the
19Illinois Public Aid Code. Amounts withheld shall be paid to the
20Department of Healthcare and Family Services by the fantasy
21sports contest operator, as applicable. This process shall be
22accomplished as provided in 89 Ill. Adm. Code 160.70(q).
23 (b) For withholding of winnings, the fantasy sports contest
24operator shall be entitled to an administrative fee not to
25exceed the lesser of 4% of the total amount of cash winnings

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1paid to the fantasy sports player or $150.
2 (c) In no event shall the total amount withheld from the
3cash payout exceed the total cash winnings claimed by the
4obligor. If the cash payout claimed is greater than the amount
5sufficient to satisfy the obligor's delinquent child support
6payments, the fantasy sports contest operator shall pay the
7obligor the remaining balance of the payout.
8 (d) Any fantasy sports player that knowingly claims
9winnings from a single fantasy sports contest in a manner to
10intentionally avoid reporting winnings to the Internal Revenue
11Service shall be guilty of a Class A misdemeanor. Fantasy
12sports contest operators shall take commercially and
13technologically reasonable measures to ensure fantasy sports
14players comply with all reporting requirements. If a fantasy
15sports contest operator reasonably believes that the fantasy
16sports player engaged in conduct that would constitute a
17violation of federal reporting requirements, the fantasy
18sports contest operator shall bar the individual committing the
19violation from playing in any fantasy sports contest by
20suspending the individual's account and banning such
21individual from further play until the individual provides the
22fantasy sports contest operator proof that the individual has
23resolved all compliance issues with the Internal Revenue
24Service.
25 (e) A fantasy sports contest operator who in good faith
26complies with the requirements of this Section shall not be

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1liable to the gaming winner or any other individual or entity.
2 (f) Upon request of a fantasy sports contest operator under
3this Act, an agent of the Board (such as a gaming special agent
4employed by the Board, a State police officer, or a revenue
5agent) shall be responsible for notifying the person identified
6as being delinquent in child support payments that the fantasy
7sports contest operator is required by law to withhold all or a
8portion of his or her winnings. If given, this notification
9must be provided at the time the winnings are withheld.
10 (g) The provisions of this Section shall be operative on
11and after the date that rules are adopted by the Department of
12Healthcare and Family Services pursuant to Section 10-17.15 of
13the Illinois Public Aid Code.
14 (h) The delinquent child support required to be withheld
15under this Section has priority over any secured or unsecured
16claim on cash winnings, except claims for federal or State
17taxes that are required to be withheld under federal or State
18law.
19 Section 55. Audits. All fantasy sports contest operators
20with annual fantasy sports contest revenue of $100,000 or more
21shall annually be subject to an audit of the financial
22transactions and condition of the fantasy sports contest
23operator's total operations as they relate to the offering and
24operating of fantasy sports contests and to ensure compliance
25with all of the requirements in this Act. Fantasy sports

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1contest operators with annual fantasy sports contest revenues
2less than $100,000 shall every 3 years be subject to an audit
3of the financial transactions and condition of the fantasy
4sports contest operator's total operations as they relate to
5the offering and operating of fantasy sports contests and to
6ensure compliance with all of the requirements in this Act. All
7audits and compliance engagements shall be conducted by
8certified public accountants or an independent testing
9laboratory approved by the Board. Each certified public
10accountant must be registered in the State of Illinois under
11the Illinois Public Accounting Act. The compensation for each
12certified public accountant or independent testing laboratory
13shall be paid directly by the fantasy sports contest operator
14to the certified public accountant or independent testing
15laboratory. The audit shall be conducted and submitted to the
16Board by January 31 of each year.
17 Section 60. Annual reports. All fantasy sports contest
18operators licensed by the Board must annually submit a report
19to the Board no later than January 31 of each year. Information
20included in the report shall include:
21 (1) the number of fantasy sports player accounts with
22 the fantasy sports contest operator; this shall be broken
23 down between beginner fantasy sports players and highly
24 experienced fantasy sports players;
25 (2) the number of new accounts established;

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1 (3) the number of accounts closed;
2 (4) the total amount of entry fees received from
3 fantasy sports players located in Illinois;
4 (5) the total amount of prizes awarded to fantasy
5 sports players located in Illinois;
6 (6) the total amount of fantasy sports contest revenue;
7 (7) the number of fantasy sports players that are
8 located in Illinois that requested deposit limit
9 increases; and
10 (8) the number of deposit limit increases granted to
11 fantasy sports players located in Illinois by the fantasy
12 sports contest operator.
13 Section 65. Application for licensure; background
14investigation; fees.
15 (a) A qualified person may apply to the Board for a fantasy
16sports contest operator license to conduct fantasy sports
17contests as provided in this Act. The application shall be made
18on forms provided by the Board. The burden is upon each
19applicant to demonstrate suitability for licensure. Each
20fantasy sports contest operator shall be licensed by the Board.
21The Board may issue a license for a period of up to 2 years or,
22in the case of fantasy sports contest operators with annual
23fantasy sports revenues less than $100,000, for up to 3 years.
24 (b) Each person seeking and possessing a license as a
25fantasy sports contest operator shall submit to a background

HB3633- 23 -LRB100 08205 AMC 18302 b
1investigation conducted by the Board with the assistance of the
2State Police or other law enforcement. To the extent that the
3corporate structure of the applicant allows, the background
4investigation shall include any or all of the following as the
5Board deems appropriate or as provided by rule: (i) each
6beneficiary of a trust, (ii) each partner of a partnership,
7(iii) each member of a limited liability company, (iv) each
8director and officer of a publicly or non-publicly held
9corporation, (v) each stockholder of a non-publicly held
10corporation, (vi) each stockholder of 5% or more of a publicly
11held corporation, or (vii) each stockholder of 5% or more in a
12parent or subsidiary corporation.
13 (c) Each person seeking and possessing a license as a
14fantasy sports contest operator shall disclose the identity of
15every person, association, trust, corporation, or limited
16liability company having a greater than 1% direct or indirect
17pecuniary interest in the fantasy sports contest operator for
18which the license is sought. If the disclosed entity is a
19trust, the application shall disclose the names and addresses
20of the beneficiaries; if a corporation, the names and addresses
21of all stockholders and directors; if a limited liability
22company, the names and addresses of all members; or if a
23partnership, the names and addresses of all partners, both
24general and limited.
25 (d) All information, records, interviews, reports,
26statements, memoranda, or other data supplied to or used by the

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1Board in the course of its review or investigation of an
2application for a license or a renewal under this Act shall be
3privileged and strictly confidential and shall be used only for
4the purpose of evaluating an applicant for a license or a
5renewal. The information, records, interviews, reports,
6statements, memoranda, or other data shall not be admissible as
7evidence nor discoverable in any action of any kind in any
8court or before any tribunal, board, agency, or person, except
9for any action deemed necessary by the Board.
10 (e) No person may be licensed as a fantasy sports contest
11operator if that person has been found by the Board to:
12 (1) have a background, including a criminal record,
13 reputation, habits, social or business associations, or
14 prior activities, that poses a threat to the public
15 interests of the State or to the security and integrity of
16 fantasy sports contests;
17 (2) create or enhance the dangers of unsuitable,
18 unfair, or illegal practices, methods, and activities in
19 the conduct of fantasy sports contests; or
20 (3) present questionable business practices and
21 financial arrangements incidental to the conduct of
22 fantasy sports contests.
23 (f) Any applicant for a license under this Act has the
24burden of proving his or her qualifications to the satisfaction
25of the Board. The Board may adopt rules to establish additional
26qualifications and requirements to preserve the integrity and

HB3633- 25 -LRB100 08205 AMC 18302 b
1security of fantasy sports contests in this State.
2 (g) A fantasy sports contest operator that has been
3operating in Illinois for at least 6 months on December 23,
42015 may operate in Illinois until a final decision is rendered
5on the application for a fantasy sports contest operator
6license.
7 (h) A non-refundable application fee shall be paid at the
8time an application for a license is filed with the Board in
9the following amounts:
10 (1) Fantasy sports contest operator with annual
11 fantasy sports contest revenue greater
12 than $10,000,000..............................$25,000
13 (2) Fantasy sports contest operator with annual
14 fantasy sports contest revenue greater than
15 $5,000,000 but not more than $10,000,000......$12,500
16 (3) Fantasy sports contest operator with annual
17 fantasy sports contest revenue greater than
18 $1,000,000 but not more than $5,000,000........$7,500
19 (4) Fantasy sports contest operator with annual
20 fantasy sports contest revenue of at least
21 $100,000 but not more than $1,000,000..........$5,000
22 (5) Fantasy sports contest operator with annual
23 fantasy sports contest revenue less
24 than $100,000....................................$500
25 (i) The Board shall establish a fee for each license not to
26exceed the following for the initial licensure period:

HB3633- 26 -LRB100 08205 AMC 18302 b
1 (1) Fantasy sports contest operator with annual
2 fantasy sports contest revenue greater
3 than $10,000,000..............................$50,000
4 (2) Fantasy sports contest operator with annual
5 fantasy sports contest revenue greater than
6 $5,000,000 but not more than $10,000,000......$25,000
7 (3) Fantasy sports contest operator with annual
8 fantasy sports contest revenue greater than
9 $1,000,000 but not more than $5,000,000.......$15,000
10 (4) Fantasy sports contest operator with annual
11 fantasy sports contest revenue of at least
12 $100,000 but not more than $1,000,000.........$10,000
13 (5) Fantasy sports contest operator with annual
14 fantasy sports contest revenue less
15 than $100,000..................................$1,500
16 (j) For subsequent licensure periods, the renewal fee shall
17not exceed the following:
18 (1) Fantasy sports contest operator with annual
19 fantasy sports contest revenue greater
20 than $10,000,000..............................$37,500
21 (2) Fantasy sports contest operator with annual
22 fantasy sports contest revenue greater than
23 $5,000,000 but not more than $10,000,000......$18,750
24 (3) Fantasy sports contest operator with annual
25 fantasy sports contest revenue greater than
26 $1,000,000 but no more than $5,000,000........$11,250

HB3633- 27 -LRB100 08205 AMC 18302 b
1 (4) Fantasy sports contest operator with annual
2 fantasy sports contest revenue of at least
3 $100,000 but not more than $1,000,000..........$7,500
4 (5) Fantasy sports contest operator with annual
5 fantasy sports contest revenue less
6 than $100,000..................................$1,125
7 Section 70. Distribution of license fees.
8 (a) All fees collected under Section 65 of this Act shall
9be deposited into the State Gaming Fund.
10 (b) Fees collected under Section 65 of this Act shall be
11used for the administration of this Act.
12 (c) All licenses issued by the Board under this Act are
13renewable every 2 years for fantasy sports contest operators
14with annual fantasy sports contest revenues of $100,000 or more
15and every 3 years for fantasy sports contest operators with
16annual fantasy sports contest revenues less than $100,000
17unless sooner cancelled or terminated. No license issued under
18this Act is transferable or assignable.
19 Section 75. Imposition and distribution of tax.
20 (a) A privilege tax is imposed on persons engaged in the
21business of operating fantasy sports contests based on the
22fantasy sports contest revenues received by a fantasy sports
23contest operator licensed under this Act at the following
24graduated tax rates:

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1 (1) 5% of annual fantasy sports contest revenues up to
2 and including $1,000,000;
3 (2) 7.5% of annual fantasy sports contest revenues in
4 excess of $1,000,000 but not exceeding $3,000,000;
5 (3) 10% of annual fantasy sports contest revenues in
6 excess of $3,000,000 but not exceeding $8,000,000;
7 (4) 15% of annual fantasy sports contest revenues in
8 excess of $8,000,000 but not exceeding $15,000,000; and
9 (5) 22.5% of annual fantasy sports contest revenues in
10 excess of $15,000,000;
11 (b) The taxes imposed by this Section shall be paid by the
12fantasy sports contest operator to the Board not later than the
13fifteenth day of every month for the previous month's privilege
14taxes. All payments not remitted when due shall be paid
15together with a penalty assessment on the unpaid balance at a
16rate of 1.5% per month.
17 (c) All of the tax collected under this Section shall be
18deposited into the Education Assistance Fund.
19 Section 80. Limitation on taxation of fantasy sports
20contest operators. Fantasy sports contest operators shall not
21be subjected to any excise tax, license tax, permit tax,
22privilege tax, or occupation tax that is imposed exclusively
23upon the licensee by the State or any political subdivision
24thereof, except as provided in this Act.

HB3633- 29 -LRB100 08205 AMC 18302 b
1 Section 900. The Regulatory Sunset Act is amended by
2changing Section 4.31 as follows:
3 (5 ILCS 80/4.31)
4 Sec. 4.31. Acts repealed on January 1, 2021. The following
5Acts are repealed on January 1, 2021:
6 The Crematory Regulation Act.
7 The Cemetery Oversight Act.
8 The Illinois Health Information Exchange and Technology
9Act.
10 The Radiation Protection Act of 1990.
11 The Fantasy Sports Contest Act.
12(Source: P.A. 96-1041, eff. 7-14-10; 96-1331, eff. 7-27-10;
13incorporates P.A. 96-863, eff. 3-1-10; 97-333, eff. 8-12-11.)
14 Section 905. The Illinois Public Aid Code is amended by
15changing Section 10-17.15 as follows:
16 (305 ILCS 5/10-17.15)
17 Sec. 10-17.15. Certification of information to State
18gaming licensees.
19 (a) For purposes of this Section, "State gaming licensee"
20means, as applicable, an organization licensee or advance
21deposit wagering licensee licensed under the Illinois Horse
22Racing Act of 1975, an owners licensee licensed under the
23Riverboat Gambling Act, or a licensee that operates, under any

HB3633- 30 -LRB100 08205 AMC 18302 b
1law of this State, one or more facilities or gaming locations
2at which lawful gambling is authorized and licensed as provided
3in the Riverboat Gambling Act, or a fantasy sports contest
4operator licensed under the Fantasy Sports Contest Act.
5 (b) The Department may provide, by rule, for certification
6to any State gaming licensee of past due child support owed by
7a responsible relative under a support order entered by a court
8or administrative body of this or any other State on behalf of
9a resident or non-resident receiving child support services
10under this Article in accordance with the requirements of Title
11IV-D, Part D, of the Social Security Act. The State gaming
12licensee shall have the ability to withhold from winnings
13required to be reported to the Internal Revenue Service on Form
14W-2G, or, in the case of a fantasy sports contest operator, the
15ability to withhold from individual winnings of $600 or more
16that are subject to reporting to the Internal Revenue Service
17on Form 1099, up to the full amount of winnings necessary to
18pay the winner's past due child support. The rule shall provide
19for notice to and an opportunity to be heard by each
20responsible relative affected and any final administrative
21decision rendered by the Department shall be reviewed only
22under and in accordance with the Administrative Review Law.
23 (c) For withholding of winnings, the State gaming licensee
24shall be entitled to an administrative fee not to exceed the
25lesser of 4% of the total amount of cash winnings paid to the
26gambling winner or $150.

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1 (d) In no event may the total amount withheld from the cash
2payout, including the administrative fee, exceed the total cash
3winnings claimed by the obligor. If the cash payout claimed is
4greater than the amount sufficient to satisfy the obligor's
5delinquent child support payments, the State gaming licensee
6shall pay the obligor the remaining balance of the payout, less
7the administrative fee authorized by subsection (c) of this
8Section, at the time it is claimed.
9 (e) A State gaming licensee who in good faith complies with
10the requirements of this Section shall not be liable to the
11gaming winner or any other individual or entity.
12(Source: P.A. 98-318, eff. 8-12-13.)
13 Section 910. The Criminal Code of 2012 is amended by
14changing Section 28-1 as follows:
15 (720 ILCS 5/28-1) (from Ch. 38, par. 28-1)
16 Sec. 28-1. Gambling.
17 (a) A person commits gambling when he or she:
18 (1) knowingly plays a game of chance or skill for money
19 or other thing of value, unless excepted in subsection (b)
20 of this Section;
21 (2) knowingly makes a wager upon the result of any
22 game, contest, or any political nomination, appointment or
23 election;
24 (3) knowingly operates, keeps, owns, uses, purchases,

HB3633- 32 -LRB100 08205 AMC 18302 b
1 exhibits, rents, sells, bargains for the sale or lease of,
2 manufactures or distributes any gambling device;
3 (4) contracts to have or give himself or herself or
4 another the option to buy or sell, or contracts to buy or
5 sell, at a future time, any grain or other commodity
6 whatsoever, or any stock or security of any company, where
7 it is at the time of making such contract intended by both
8 parties thereto that the contract to buy or sell, or the
9 option, whenever exercised, or the contract resulting
10 therefrom, shall be settled, not by the receipt or delivery
11 of such property, but by the payment only of differences in
12 prices thereof; however, the issuance, purchase, sale,
13 exercise, endorsement or guarantee, by or through a person
14 registered with the Secretary of State pursuant to Section
15 8 of the Illinois Securities Law of 1953, or by or through
16 a person exempt from such registration under said Section
17 8, of a put, call, or other option to buy or sell
18 securities which have been registered with the Secretary of
19 State or which are exempt from such registration under
20 Section 3 of the Illinois Securities Law of 1953 is not
21 gambling within the meaning of this paragraph (4);
22 (5) knowingly owns or possesses any book, instrument or
23 apparatus by means of which bets or wagers have been, or
24 are, recorded or registered, or knowingly possesses any
25 money which he has received in the course of a bet or
26 wager;

HB3633- 33 -LRB100 08205 AMC 18302 b
1 (6) knowingly sells pools upon the result of any game
2 or contest of skill or chance, political nomination,
3 appointment or election;
4 (7) knowingly sets up or promotes any lottery or sells,
5 offers to sell or transfers any ticket or share for any
6 lottery;
7 (8) knowingly sets up or promotes any policy game or
8 sells, offers to sell or knowingly possesses or transfers
9 any policy ticket, slip, record, document or other similar
10 device;
11 (9) knowingly drafts, prints or publishes any lottery
12 ticket or share, or any policy ticket, slip, record,
13 document or similar device, except for such activity
14 related to lotteries, bingo games and raffles authorized by
15 and conducted in accordance with the laws of Illinois or
16 any other state or foreign government;
17 (10) knowingly advertises any lottery or policy game,
18 except for such activity related to lotteries, bingo games
19 and raffles authorized by and conducted in accordance with
20 the laws of Illinois or any other state;
21 (11) knowingly transmits information as to wagers,
22 betting odds, or changes in betting odds by telephone,
23 telegraph, radio, semaphore or similar means; or knowingly
24 installs or maintains equipment for the transmission or
25 receipt of such information; except that nothing in this
26 subdivision (11) prohibits transmission or receipt of such

HB3633- 34 -LRB100 08205 AMC 18302 b
1 information for use in news reporting of sporting events or
2 contests; or
3 (12) knowingly establishes, maintains, or operates an
4 Internet site that permits a person to play a game of
5 chance or skill for money or other thing of value by means
6 of the Internet or to make a wager upon the result of any
7 game, contest, political nomination, appointment, or
8 election by means of the Internet. This item (12) does not
9 apply to activities referenced in items (6) and (6.1) of
10 subsection (b) of this Section. This item (12) does not
11 apply to activities referenced in item (15) subsection (b)
12 of this Section.
13 (b) Participants in any of the following activities shall
14not be convicted of gambling:
15 (1) Agreements to compensate for loss caused by the
16 happening of chance including without limitation contracts
17 of indemnity or guaranty and life or health or accident
18 insurance.
19 (2) Offers of prizes, award or compensation to the
20 actual contestants in any bona fide contest for the
21 determination of skill, speed, strength or endurance or to
22 the owners of animals or vehicles entered in such contest.
23 (3) Pari-mutuel betting as authorized by the law of
24 this State.
25 (4) Manufacture of gambling devices, including the
26 acquisition of essential parts therefor and the assembly

HB3633- 35 -LRB100 08205 AMC 18302 b
1 thereof, for transportation in interstate or foreign
2 commerce to any place outside this State when such
3 transportation is not prohibited by any applicable Federal
4 law; or the manufacture, distribution, or possession of
5 video gaming terminals, as defined in the Video Gaming Act,
6 by manufacturers, distributors, and terminal operators
7 licensed to do so under the Video Gaming Act.
8 (5) The game commonly known as "bingo", when conducted
9 in accordance with the Bingo License and Tax Act.
10 (6) Lotteries when conducted by the State of Illinois
11 in accordance with the Illinois Lottery Law. This exemption
12 includes any activity conducted by the Department of
13 Revenue to sell lottery tickets pursuant to the provisions
14 of the Illinois Lottery Law and its rules.
15 (6.1) The purchase of lottery tickets through the
16 Internet for a lottery conducted by the State of Illinois
17 under the program established in Section 7.12 of the
18 Illinois Lottery Law.
19 (7) Possession of an antique slot machine that is
20 neither used nor intended to be used in the operation or
21 promotion of any unlawful gambling activity or enterprise.
22 For the purpose of this subparagraph (b)(7), an antique
23 slot machine is one manufactured 25 years ago or earlier.
24 (8) Raffles and poker runs when conducted in accordance
25 with the Raffles and Poker Runs Act.
26 (9) Charitable games when conducted in accordance with

HB3633- 36 -LRB100 08205 AMC 18302 b
1 the Charitable Games Act.
2 (10) Pull tabs and jar games when conducted under the
3 Illinois Pull Tabs and Jar Games Act.
4 (11) Gambling games conducted on riverboats when
5 authorized by the Riverboat Gambling Act.
6 (12) Video gaming terminal games at a licensed
7 establishment, licensed truck stop establishment, licensed
8 fraternal establishment, or licensed veterans
9 establishment when conducted in accordance with the Video
10 Gaming Act.
11 (13) Games of skill or chance where money or other
12 things of value can be won but no payment or purchase is
13 required to participate.
14 (14) Savings promotion raffles authorized under
15 Section 5g of the Illinois Banking Act, Section 7008 of the
16 Savings Bank Act, Section 42.7 of the Illinois Credit Union
17 Act, Section 5136B of the National Bank Act (12 U.S.C.
18 25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C.
19 1463).
20 (15) Fantasy sports contests and participation in
21 fantasy sports contests as defined and offered under the
22 Fantasy Sports Contest Act.
23 (c) Sentence.
24 Gambling is a Class A misdemeanor. A second or subsequent
25conviction under subsections (a)(3) through (a)(12), is a Class
264 felony.

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1 (d) Circumstantial evidence.
2 In prosecutions under this Section circumstantial evidence
3shall have the same validity and weight as in any criminal
4prosecution.
5(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)
6 Section 999. Effective date. This Act takes effect upon
7becoming law.
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