Illinois-2023-SB3710-Introduced

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3710

Introduced 2/9/2024, by Sen. Lakesia Collins

SYNOPSIS AS INTRODUCED:

`New Act`
`5 ILCS 100/5-45.55 new`
`230 ILCS 45/25-10`
`720 ILCS 5/28-1`	`from Ch. 38, par. 28-1`
`720 ILCS 5/28-3`	`from Ch. 38, par. 28-3`

Creates the Fantasy Sports Consumer Protection Act. Provides that the Illinois Gaming Board may regulate the conduct of fantasy contest operators under the Act. Allows the Board to levy and collect fees, surcharges, civil penalties, and, on adjusted gross fantasy contest receipts imposed under the Act, monthly taxes, and identifies other powers and duties of the Board. Includes restrictions, including requiring licensing, of fantasy contest operators. Includes license requirements and requirements for allowable fantasy contests. Contains provisions relating to denial of a license, independent audits, reporting and investigation of prohibited conduct, taxes, compulsive gambling and voluntary self-exclusion, and supplier diversity goals for fantasy contest operators. Amends the Sports Wagering Act. Excludes fantasy contests from the definition of "sports wagering". Amends the Criminal Code of 2012. Provides that participants in fantasy contest wagering shall not be convicted of the offense of gambling when conducted in accordance with the Fantasy Sports Consumer Protection Act. Excludes any real estate, vehicle, boat, or any other property whatsoever used for the purposes of gambling under the Fantasy Sports Consumer Protection Act from the definition of "gambling place" under the offense of keeping a gambling place. Amends the Illinois Administrative Procedure Act. Grants the Illinois Gaming Board emergency rulemaking authority to implement the Fantasy Sports Consumer Protection Act. Effective immediately.

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A BILL FOR

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1 AN ACT concerning gaming.

2 Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4 Section 1. Short title. This Act may be cited as the

5 Fantasy Sports Consumer Protection Act.

6 Section 5. Definitions. As used in this Act:

7 "Adjusted gross fantasy contest receipts" means the amount

8 equal to the total of all entry fees that a fantasy contest

9 operator collects from all participants less only the total of

10 all prizes paid out as prizes to all participants multiplied

11 by the location percentage for this State.

12 "Board" means the Illinois Gaming Board.

13 "Entry fee" means a nonrefundable cash or cash equivalent

14 that is paid by a participant and set in advance by a fantasy

15 contest operator granting the participant the right to

16 participate in a fantasy contest.

17 "Fantasy contest" means an online fantasy or simulated

18 game or contest of skill with an entry fee in which:

19 (1) the values of all prizes offered to a winning

20 participant are established and made known to the

21 participant in advance of the contest;

22 (2) all winning outcomes reflect the relative

23 knowledge and skill of the participant;

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1 (3) the participant assembles, owns, or manages a

2 fictional entry or roster of actual professional or

3 amateur athletes, in real-world sports events, or an

4 organized video game competition that is regulated by a

5 governing body and that is held between professional

6 players who play individually or as teams;

7 (4) a participant competes for prizes awarded by a

8 fantasy contest operator based on terms and conditions

9 published by the fantasy contest operator and made known

10 to the participant in advance of the contest;

11 (5) winning outcomes are determined solely by clearly

12 established scoring criteria based on one or more

13 statistical results of the performance of an individual

14 athlete, including, but not limited to, a fantasy score;

15 and

16 (6) no winning outcome is entirely based on the score,

17 point spread, or any performance of any single actual team

18 or combination of teams or solely on any single

19 performance of an individual athlete or player in any

20 single actual event.

21 "Fantasy contest" includes both contests wherein

22 participants compete against each other and contests wherein

23 only a single participant competes against a target score set

24 by the fantasy contest operator. "Fantasy contest" does not

25 include any fantasy contest without an entry fee.

26 "Fantasy contest operator" means a person or entity that

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1 offers fantasy contests to members of the public. "Fantasy

2 contest operator" does not include an Internet service

3 provider or a provider of mobile data services merely as a

4 result of that entity's transporting general traffic that may

5 include a fantasy contest and does not include a fantasy

6 contest participant by virtue of doing any combination of the

7 following: (i) setting house rules for a contest; (ii)

8 assigning a salary or target score to any eligible athlete or

9 player; (iii) accepting an entry fee from a fantasy contest

10 participant; or (iv) awarding or disbursing prizes in

11 conformance with this Act.

12 "Location percentage" means the percentage rounded to the

13 nearest 0.1% of the total entry fees collected from players

14 located in this State, divided by the total entry fees

15 collected from all players in the fantasy contest.

16 "Participant" means an individual who participates in a

17 fantasy contest offered by a fantasy contest operator.

18 "Prohibited participant" means an individual who has

19 self-excluded under Section 45 or an athlete, coach, referee,

20 trainer, or team staff when there is direct involvement of the

21 athlete, coach, referee, trainer, or staff; the athlete's or

22 staff's team; or the athletes that the coach coaches or the

23 trainer trains.

24 "Qualified applicant" means an applicant for a license

25 under this Act whose application meets the mandatory minimum

26 qualification criteria as required by the Board.

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1 Section 10. Board duties and powers.

2 (a) The Board may regulate the conduct of fantasy contest

3 operators under this Act.

4 (b) The Board shall adopt any rules the Board considers

5 necessary for the successful implementation, administration,

6 and enforcement of this Act. The Board shall adopt rules no

7 later than 180 days after the effective date of this Act. Rules

8 proposed by the Board may be adopted as emergency rules under

9 Section 5-45 of the Illinois Administrative Procedure Act.

10 (c) The Board shall levy and collect all fees, surcharges,

11 civil penalties, and, on adjusted gross fantasy contest

12 receipts imposed under this Act, monthly taxes as follows:

13 (1) All registration and renewal fees collected under

14 this Act shall be deposited and distributed as follows:

15 (A) 85% of fees shall be deposited into the State

16 Gaming Fund and used for the administration of this

17 Act; and

18 (B) 15% of fees shall be paid, subject to

19 appropriation by the General Assembly, to the

20 Department of Human Services for administration of

21 programs for the treatment of compulsive gambling.

22 (2) All taxes collected under Section 40 shall be

23 deposited into the Common School Fund.

24 (3) All civil penalties levied as a direct result of

25 violations of this Act, less any costs incurred by the

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1 Board during the course of investigation which resulted in

2 the civil penalty, shall be paid, subject to appropriation

3 by the General Assembly, to the Department of Human

4 Services for administration of programs for the treatment

5 of compulsive gambling.

6 (4) All other money collected from civil penalties

7 shall be deposited or disbursed at the discretion of the

8 Board.

9 (d) The Board shall require fantasy contest operators to

10 comply with the anti-money laundering standards, as defined by

11 the federal Bank Secrecy Act of 1970 and the Anti-Money

12 Laundering Act of 2020.

13 (e) The Board shall verify that fantasy contest operators

14 establish technical and operational measures to prevent

15 underage participation in a fantasy contest.

16 (f) The Board shall verify that fantasy contest operators

17 deploy identity verification procedures, which may require the

18 use of a reputable independent third party that is in the

19 business of verifying an individual's personally identifiable

20 information and can detect potential prohibited participants.

21 (g) The Board shall verify that fantasy contest operators

22 employ mechanisms on the operator's platform that are designed

23 to detect and prevent unauthorized accounts and to detect and

24 prevent fraud, money laundering, and collusion.

25 (h) The Board shall require the use of geolocation

26 technology to verify that a participant is not accessing the

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1 platform from a restricted jurisdiction.

2 (i) The Board shall adopt rules establishing compulsive

3 and problem gambling standards for fantasy contest operators

4 that are consistent with this Act.

5 (j) The Board may exercise any other powers necessary to

6 enforce the provisions of this Act that it regulates and the

7 rules of the Board.

8 (k) The Board and fantasy contest operator licensees may

9 cooperate with investigations conducted by law enforcement

10 agencies, including, but not limited to, providing and

11 facilitating the provision of account-level entry and

12 participation information.

13 (l) A fantasy contest operator licensee shall make all

14 reasonable efforts to promptly notify the Board of any

15 information relating to:

16 (1) a confirmed breach of the relevant sport's

17 governing body's internal rules and codes of conduct

18 pertaining to participation in real-money fantasy

19 contests;

20 (2) any conduct that corrupts any outcome related to a

21 sports event or sports events for purposes of financial

22 gain, including match fixing; and

23 (3) confirmed illegal activities, including use of

24 funds derived from illegal activity, entries to conceal or

25 launder funds derived from illegal activity,

26 multi-accounting, and using false identification.

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1 Section 15. License.

2 (a) Except as otherwise provided in this Section, a person

3 may not offer fantasy contests in this State unless the person

4 is licensed by the Board as a fantasy contest operator.

5 (b) An applicant for a license issued under this Act shall

6 submit an application to the Board in the form the Board

7 requires. The applicant shall submit fingerprints for a

8 national criminal history record check by a law enforcement

9 agency. The fingerprints shall be furnished by the applicant's

10 owners, officers, and directors (if a corporation), managers

11 and members (if a limited liability company), and partners (if

12 a partnership). The fingerprints shall be accompanied by a

13 signed authorization for the release of information by the law

14 enforcement agency. The Board may require additional

15 background checks on licensees when they apply for license

16 renewal, and an applicant convicted of a disqualifying offense

17 shall not be licensed. This subsection does not require an

18 applicant or individual who has submitted to a national

19 criminal history record check in this State or any other state

20 within the 12 months before submitting the application to

21 resubmit to another criminal history record check if the

22 applicant or individual submits the results of the previous

23 criminal history record check and affirms that there has been

24 no material change in the criminal history since the time of

25 the criminal history record check.

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1 (c) The information required by the Board shall include

2 documentation of all of the following:

3 (1) The name of the applicant.

4 (2) The location of the applicant's principal place of

5 business.

6 (3) The applicant's contact information.

7 (4) The applicant's social security number or, if

8 applicable, the applicant's federal tax identification

9 number.

10 (5) The name and address of each individual that holds

11 a 10% or more ownership interest in the applicant or in

12 shares of the applicant.

13 (6) The applicant's criminal record, if any, or, if

14 the applicant is a business entity, on request, any

15 criminal record of an individual who is a director,

16 officer, or key employee of the applicant or any

17 individual who has a 10% or more ownership interest in the

18 applicant.

19 (7) Any ownership interest that a director, officer,

20 key employee, or individual owner of 10% or more of the

21 applicant holds in a business that is or was a fantasy

22 contest operator or similar entity in any jurisdiction.

23 (8) An identification of any business in which an

24 applicant or a director, officer, key employee, or

25 individual owner of 10% or more of the applicant has an

26 equity interest of 5% or more. If a business has been

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1 identified under this paragraph, documentation must be

2 provided showing the state in which the business is

3 incorporated or registered, if applicable.

4 (9) Whether an applicant, director, officer, key

5 employee, or individual owner of 10% or more of the

6 applicant has ever applied for or been granted any

7 license, registration, or certificate issued by a

8 licensing authority in this State or any other

9 jurisdiction for a gaming activity.

10 (10) Whether an applicant or a director, officer, key

11 employee, or individual owner of 10% or more of the

12 applicant has filed or been served with a complaint or

13 other notice filed by a public body regarding the

14 delinquency in payment of or dispute over filings

15 concerning the payment of any tax required under federal,

16 State, or local law, including the amount of tax, the type

17 of tax, the taxing agency and the time periods involved.

18 (11) Information sufficient to show, as determined by

19 the Board, that the applicant can meet the requirements of

20 procedures submitted by the applicant under the Act and

21 under any rules adopted under this Act.

22 (12) The Board may adopt rules to establish additional

23 qualifications and requirements to preserve the integrity

24 and security of fantasy contests in this State and to

25 promote and maintain a competitive fantasy sports market.

26 (d) On receipt of a completed application and the required

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1 fee, the Board shall conduct the necessary background

2 investigation to determine if the applicant meets the

3 qualifications for licensure. On completion of the necessary

4 background investigation, the Board shall either issue a

5 license or deny the application. If the application for

6 licensure is denied, a statement setting forth the grounds for

7 denial shall be forwarded to the applicant together with all

8 other documents relied on by the Board, to the extent allowed

9 by law.

10 Section 20. Fantasy contests.

11 (a) Any fantasy contest conducted under this Act does not

12 constitute gambling for any purpose, including under Article

13 28 of the Criminal Code of 1961 or the Criminal Code of 2012.

14 (b) Notwithstanding any provision of law to the contrary,

15 the operation of fantasy contests is only lawful when

16 conducted in accordance with the provisions of this Act.

17 (c) A person participating in a fantasy contest under this

18 Act shall be at least 19 years of age.

19 (d) A licensee under this Act may only accept an entry from

20 a person physically located in the State. A fantasy contest

21 operator must use a geolocation system to ensure that a

22 participant is physically present in the State when

23 participating in the fantasy contest unless otherwise

24 authorized by the Board.

25 (e) This Act shall be construed liberally to promote the

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1 general welfare of the public and integrity of the fantasy

2 sports industry. However, the Board may not adopt rules

3 limiting or regulating the rules or administration of an

4 individual fantasy contest, the statistical makeup of a

5 fantasy contest, or the digital platform of a fantasy contest

6 operator.

7 (f) No licensed fantasy contest operator shall be forced

8 to surrender or terminate its license prior to the date of

9 expiration of the license solely by virtue of a change in the

10 rules adopted under this Act.

11 Section 25. Issuance and denial of license.

12 (a) The initial license fee for a fantasy contest operator

13 that operated in Illinois before the effective date of this

14 Act shall be 8% of its adjusted gross fantasy contest receipts

15 from the preceding calendar year or $1,000,000, whichever is

16 less. The initial license fee for a fantasy contest operator

17 that did not operate in Illinois for at least 12 months before

18 the effective date of this Act shall be $10,000, except, if a

19 fantasy contest operator has 10,000 or more fantasy contest

20 participants in Illinois with an active account who

21 participated in at least one fantasy contest with an entry

22 fee, then the fantasy contest operator shall notify the Board

23 and remit an application fee in the amount of $990,000 within

24 10 days of notifying the Board.

25 (b) A fantasy contest operator that was offering contests

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1 to persons located in Illinois before the effective date of

2 this Act may continue to offer contests to persons located in

3 Illinois until the fantasy contest operator's application for

4 licensure has been approved or denied under this Act if the

5 fantasy contest operator files an application for licensure

6 with the Board within 90 days after the adoption of rules to

7 effectuate this Act.

8 (c) Licenses issued by the Board shall remain in effect

9 for 4 years. The Board shall establish a process for renewal

10 with a renewal fee being 1% of the adjusted gross fantasy

11 contests receipts for the preceding 4 years.

12 (d) A fantasy contest operator that allows its license to

13 lapse, without requesting an extension of time to file, shall

14 resubmit an initial application. An extension may be granted

15 by the Board upon receipt of a written request.

16 (e) A fantasy contest operator applying for a license or

17 renewal of a license may operate during the application period

18 unless the Board has reasonable cause to believe that the

19 fantasy contest operator is or may be in violation of the

20 provisions of this Act and the Board requires the fantasy

21 contest operator to suspend the operation of any fantasy

22 contest until the license or renewal of a license is issued.

23 Section 30. Independent audits.

24 (a) As part of its submission for licensure or renewal, an

25 applicant shall: (i) contract with a certified public

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1 accountant to conduct an independent audit, consistent with

2 generally accepted accounting principles; (ii) annually

3 contract with a testing laboratory recognized by the Board to

4 verify compliance with the provisions of this Act; and (iii)

5 submit to the Board a copy of the audit report and a report of

6 the testing laboratory.

7 (b) An initial applicant is not required to submit an

8 audit report and report of the testing laboratory until the 24

9 months following the issuance of a licensee to the licensee.

10 Section 35. Reporting prohibited conduct; investigations

11 of prohibited conduct.

12 (a) The Board shall investigate all reasonable allegations

13 of prohibited conduct and refer any allegations it deems

14 credible to the appropriate law enforcement entity.

15 (b) The identity of any reporting person shall remain

16 confidential unless that person authorizes disclosure of the

17 person's identity or until the allegation of prohibited

18 conduct is referred to law enforcement.

19 (c) If the Board receives a complaint of prohibited

20 conduct by an athlete, the Board shall notify the appropriate

21 sports governing body of the athlete to review the complaint

22 as provided by rule of the Board.

23 (d) The Board shall adopt rules governing investigations

24 of prohibited conduct and referrals to law enforcement

25 entities.

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1 Section 40. Tax. Beginning on July 1, 2025, for the

2 privilege of holding a license to operate fantasy contests

3 under this Act, this State shall impose and collect a tax at a

4 rate of at least 10% but not more than 15%, as determined by

5 rule of the Board, of the fantasy contest operator's adjusted

6 gross fantasy contests receipts. The accrual method of

7 accounting shall be used for purposes of calculating the

8 amount of the tax owed by the licensee. The fantasy contest

9 operator shall submit to the Board, on or before the last day

10 of each calendar month, a return indicating the amount of tax

11 due under this Section for the previous calendar month as well

12 as any other information the Board shall require by rule and

13 shall remit to the Board payment of the tax due under this

14 Section with that return.

15 Section 45. Compulsive gaming; voluntary self-exclusion.

16 (a) Each licensee shall include a statement regarding

17 obtaining assistance with real-money gaming problems on the

18 licensee's portal, website, or computer or mobile application

19 and on all marketing materials and advertisements of the

20 licensee.

21 (b) A resident, or nonresident if allowed to participate

22 in fantasy contests, may voluntarily prohibit the resident or

23 nonresident from establishing a fantasy contest account with a

24 fantasy contest operator under this Act. The Board shall

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1 incorporate the voluntary self-exclusion program for fantasy

2 contests into any existing self-exclusion program that it

3 operates on the effective date of this Act.

4 (c) If a self-excluded person participates in a fantasy

5 contest, the fantasy contest operator shall report to the

6 Board, at a minimum, the name of the self-excluded person, the

7 date of participation, the amount or value of any money,

8 prizes, or awards forfeited, if any, and any other action

9 taken.

10 (d) A fantasy contest operator may not pay any prize or

11 award to a person who is on the Board's self-exclusion list.

12 Any prize or award won by a person on the self-exclusion list

13 is forfeited and shall be donated by the fantasy contest

14 operator to the problem gaming charities or programs as

15 identified and directed by the Board on a quarterly basis by

16 the twenty-fifth day of the following month.

17 (e) A fantasy contest operator shall develop and maintain

18 a program to mitigate compulsive play and curtail compulsive

19 play, which may be in conjunction with the Board.

20 Section 50. Supplier diversity goals for fantasy contest

21 operators.

22 (a) The Board shall require licensees under this Act to

23 submit an annual report, in a searchable Adobe PDF format, on

24 all procurement goals and actual spending for businesses owned

25 by women, minorities, veterans, tribal and indigenous persons,

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1 and persons with disabilities and for all small business

2 enterprises in the previous calendar year. These goals shall

3 be expressed as a percentage of the total work performed by the

4 entity submitting the report, and the actual spending for all

5 businesses owned by women, minorities, veterans, tribal and

6 indigenous persons, and persons with disabilities and for all

7 small business enterprises shall also be expressed as a

8 percentage of the total work performed by the entity

9 submitting the report. The initial report shall be due one

10 year after the effective date of this Act and once every 2

11 years thereafter.

12 (b) Each licensee in its annual report shall include the

13 following information:

14 (1) an explanation of the plan for the next year to

15 increase participation;

16 (2) an explanation of the plan to increase the goals;

17 (3) the areas of procurement each licensee shall be

18 actively seeking more participation in the next year;

19 (4) an outline of the plan to alert and encourage

20 potential vendors in that area to seek business from the

21 licensee;

22 (5) an explanation of the challenges faced in finding

23 quality vendors and offer any suggestions for what the

24 Board could do to be helpful to identify those vendors;

25 (6) a list of the certifications the licensee

26 recognizes;

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1 (7) the point of contact for any potential vendor who

2 wishes to do business with the licensee and explain the

3 process for a vendor to enroll with the licensee as a

4 businesses owned by women, minorities, veterans, tribal

5 and indigenous persons, or persons with disabilities; and

6 (8) any particular success stories to encourage other

7 licensees to emulate best practices.

8 (c) Each annual report shall include as much

9 State-specific data as possible. If the submitting entity does

10 not submit State-specific data, then the licensee shall

11 include any national data it does have and explain why it could

12 not submit State-specific data and how it intends to do so in

13 future reports, if possible.

14 (d) Each annual report shall include the rules,

15 regulations, and definitions used for the procurement goals in

16 the licensee's annual report.

17 Section 100. The Illinois Administrative Procedure Act is

18 amended by adding Section 5-45.55 as follows:

19 (5 ILCS 100/5-45.55 new)

20 Sec. 5-45.55. Emergency rulemaking; Illinois Gaming Board.

21 To provide for the expeditious and timely implementation of

22 this amendatory Act of the 103rd General Assembly, emergency

23 rules implementing the Fantasy Sports Consumer Protection Act

24 may be adopted in accordance with Section 5-45 by the Illinois

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1 Gaming. The adoption of emergency rules authorized by Section

2 5-45 and this Section is deemed to be necessary for the public

3 interest, safety, and welfare.

4 This Section is repealed one year after the effective date

5 of this amendatory Act of the 103rd General Assembly.

6 Section 105. The Sports Wagering Act is amended by

7 changing Section 25-10 as follows:

8 (230 ILCS 45/25-10)

9 Sec. 25-10. Definitions. As used in this Act:

10 "Adjusted gross sports wagering receipts" means a master

11 sports wagering licensee's gross sports wagering receipts,

12 less winnings paid to wagerers in such games.

13 "Athlete" means any current or former professional athlete

14 or collegiate athlete.

15 "Board" means the Illinois Gaming Board.

16 "Covered persons" includes athletes; umpires, referees,

17 and officials; personnel associated with clubs, teams,

18 leagues, and athletic associations; medical professionals

19 (including athletic trainers) who provide services to athletes

20 and players; and the family members and associates of these

21 persons where required to serve the purposes of this Act.

22 "Department" means the Department of the Lottery.

23 "Gaming facility" means a facility at which gambling

24 operations are conducted under the Illinois Gambling Act,

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1 pari-mutuel wagering is conducted under the Illinois Horse

2 Racing Act of 1975, or sports wagering is conducted under this

3 Act.

4 "Official league data" means statistics, results,

5 outcomes, and other data related to a sports event obtained

6 pursuant to an agreement with the relevant sports governing

7 body, or an entity expressly authorized by the sports

8 governing body to provide such information to licensees, that

9 authorizes the use of such data for determining the outcome of

10 tier 2 sports wagers on such sports events.

11 "Organization licensee" has the meaning given to that term

12 in the Illinois Horse Racing Act of 1975.

13 "Owners licensee" means the holder of an owners license

14 under the Illinois Gambling Act.

15 "Person" means an individual, partnership, committee,

16 association, corporation, or any other organization or group

17 of persons.

18 "Personal biometric data" means an athlete's information

19 derived from DNA, heart rate, blood pressure, perspiration

20 rate, internal or external body temperature, hormone levels,

21 glucose levels, hydration levels, vitamin levels, bone

22 density, muscle density, and sleep patterns.

23 "Prohibited conduct" includes any statement, action, and

24 other communication intended to influence, manipulate, or

25 control a betting outcome of a sporting contest or of any

26 individual occurrence or performance in a sporting contest in

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1 exchange for financial gain or to avoid financial or physical

2 harm. "Prohibited conduct" includes statements, actions, and

3 communications made to a covered person by a third party, such

4 as a family member or through social media. "Prohibited

5 conduct" does not include statements, actions, or

6 communications made or sanctioned by a team or sports

7 governing body.

8 "Qualified applicant" means an applicant for a license

9 under this Act whose application meets the mandatory minimum

10 qualification criteria as required by the Board.

11 "Sporting contest" means a sports event or game on which

12 the State allows sports wagering to occur under this Act.

13 "Sports event" means a professional sport or athletic

14 event, a collegiate sport or athletic event, a motor race

15 event, or any other event or competition of relative skill

16 authorized by the Board under this Act.

17 "Sports facility" means a facility that hosts sports

18 events and holds a seating capacity greater than 17,000

19 persons, except in a municipality with a population of more

20 than 1,000,000, a seating capacity greater than 10,000

21 persons.

22 "Sports governing body" means the organization that

23 prescribes final rules and enforces codes of conduct with

24 respect to a sports event and participants therein.

25 "Sports wagering" means accepting wagers on sports events

26 or portions of sports events, or on the individual performance

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1 statistics of athletes in a sports event or combination of

2 sports events, by any system or method of wagering, including,

3 but not limited to, in person or over the Internet through

4 websites and on mobile devices. "Sports wagering" includes,

5 but is not limited to, single-game bets, teaser bets, parlays,

6 over-under, moneyline, pools, exchange wagering, in-game

7 wagering, in-play bets, proposition bets, and straight bets.

8 "Sports wagering" does not include fantasy contests as that

9 term is defined in Section 5 of the Fantasy Sports Consumer

10 Protection Act.

11 "Sports wagering account" means a financial record

12 established by a master sports wagering licensee for an

13 individual patron in which the patron may deposit and withdraw

14 funds for sports wagering and other authorized purchases and

15 to which the master sports wagering licensee may credit

16 winnings or other amounts due to that patron or authorized by

17 that patron.

18 "Tier 1 sports wager" means a sports wager that is

19 determined solely by the final score or final outcome of the

20 sports event and is placed before the sports event has begun.

21 "Tier 2 sports wager" means a sports wager that is not a

22 tier 1 sports wager.

23 "Wager" means a sum of money or thing of value risked on an

24 uncertain occurrence.

25 "Winning bidder" means a qualified applicant for a master

26 sports wagering license chosen through the competitive

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1 selection process under Section 25-45.

2 (Source: P.A. 101-31, eff. 6-28-19; 102-689, eff. 12-17-21.)

3 Section 110. The Criminal Code of 2012 is amended by

4 changing Sections 28-1 and 28-3 as follows:

5 (720 ILCS 5/28-1) (from Ch. 38, par. 28-1)

6 Sec. 28-1. Gambling.

7 (a) A person commits gambling when he or she:

8 (1) knowingly plays a game of chance or skill for

9 money or other thing of value, unless excepted in

10 subsection (b) of this Section;

11 (2) knowingly makes a wager upon the result of any

12 game, contest, or any political nomination, appointment or

13 election;

14 (3) knowingly operates, keeps, owns, uses, purchases,

15 exhibits, rents, sells, bargains for the sale or lease of,

16 manufactures or distributes any gambling device;

17 (4) contracts to have or give himself or herself or

18 another the option to buy or sell, or contracts to buy or

19 sell, at a future time, any grain or other commodity

20 whatsoever, or any stock or security of any company, where

21 it is at the time of making such contract intended by both

22 parties thereto that the contract to buy or sell, or the

23 option, whenever exercised, or the contract resulting

24 therefrom, shall be settled, not by the receipt or

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1 delivery of such property, but by the payment only of

2 differences in prices thereof; however, the issuance,

3 purchase, sale, exercise, endorsement or guarantee, by or

4 through a person registered with the Secretary of State

5 pursuant to Section 8 of the Illinois Securities Law of

6 1953, or by or through a person exempt from such

7 registration under said Section 8, of a put, call, or

8 other option to buy or sell securities which have been

9 registered with the Secretary of State or which are exempt

10 from such registration under Section 3 of the Illinois

11 Securities Law of 1953 is not gambling within the meaning

12 of this paragraph (4);

13 (5) knowingly owns or possesses any book, instrument

14 or apparatus by means of which bets or wagers have been, or

15 are, recorded or registered, or knowingly possesses any

16 money which he has received in the course of a bet or

17 wager;

18 (6) knowingly sells pools upon the result of any game

19 or contest of skill or chance, political nomination,

20 appointment or election;

21 (7) knowingly sets up or promotes any lottery or

22 sells, offers to sell or transfers any ticket or share for

23 any lottery;

24 (8) knowingly sets up or promotes any policy game or

25 sells, offers to sell or knowingly possesses or transfers

26 any policy ticket, slip, record, document or other similar

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1 device;

2 (9) knowingly drafts, prints or publishes any lottery

3 ticket or share, or any policy ticket, slip, record,

4 document or similar device, except for such activity

5 related to lotteries, bingo games and raffles authorized

6 by and conducted in accordance with the laws of Illinois

7 or any other state or foreign government;

8 (10) knowingly advertises any lottery or policy game,

9 except for such activity related to lotteries, bingo games

10 and raffles authorized by and conducted in accordance with

11 the laws of Illinois or any other state;

12 (11) knowingly transmits information as to wagers,

13 betting odds, or changes in betting odds by telephone,

14 telegraph, radio, semaphore or similar means; or knowingly

15 installs or maintains equipment for the transmission or

16 receipt of such information; except that nothing in this

17 subdivision (11) prohibits transmission or receipt of such

18 information for use in news reporting of sporting events

19 or contests; or

20 (12) knowingly establishes, maintains, or operates an

21 Internet site that permits a person to play a game of

22 chance or skill for money or other thing of value by means

23 of the Internet or to make a wager upon the result of any

24 game, contest, political nomination, appointment, or

25 election by means of the Internet. This item (12) does not

26 apply to activities referenced in items (6), (6.1), (8),

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1 (8.1), ~~and~~ (15), and (16) of subsection (b) of this

2 Section.

3 (b) Participants in any of the following activities shall

4 not be convicted of gambling:

5 (1) Agreements to compensate for loss caused by the

6 happening of chance including without limitation contracts

7 of indemnity or guaranty and life or health or accident

8 insurance.

9 (2) Offers of prizes, award or compensation to the

10 actual contestants in any bona fide contest for the

11 determination of skill, speed, strength or endurance or to

12 the owners of animals or vehicles entered in such contest.

13 (3) Pari-mutuel betting as authorized by the law of

14 this State.

15 (4) Manufacture of gambling devices, including the

16 acquisition of essential parts therefor and the assembly

17 thereof, for transportation in interstate or foreign

18 commerce to any place outside this State when such

19 transportation is not prohibited by any applicable Federal

20 law; or the manufacture, distribution, or possession of

21 video gaming terminals, as defined in the Video Gaming

22 Act, by manufacturers, distributors, and terminal

23 operators licensed to do so under the Video Gaming Act.

24 (5) The game commonly known as "bingo", when conducted

25 in accordance with the Bingo License and Tax Act.

26 (6) Lotteries when conducted by the State of Illinois

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1 in accordance with the Illinois Lottery Law. This

2 exemption includes any activity conducted by the

3 Department of Revenue to sell lottery tickets pursuant to

4 the provisions of the Illinois Lottery Law and its rules.

5 (6.1) The purchase of lottery tickets through the

6 Internet for a lottery conducted by the State of Illinois

7 under the program established in Section 7.12 of the

8 Illinois Lottery Law.

9 (7) Possession of an antique slot machine that is

10 neither used nor intended to be used in the operation or

11 promotion of any unlawful gambling activity or enterprise.

12 For the purpose of this subparagraph (b)(7), an antique

13 slot machine is one manufactured 25 years ago or earlier.

14 (8) Raffles and poker runs when conducted in

15 accordance with the Raffles and Poker Runs Act.

16 (8.1) The purchase of raffle chances for a raffle

17 conducted in accordance with the Raffles and Poker Runs

18 Act.

19 (9) Charitable games when conducted in accordance with

20 the Charitable Games Act.

21 (10) Pull tabs and jar games when conducted under the

22 Illinois Pull Tabs and Jar Games Act.

23 (11) Gambling games when authorized by the Illinois

24 Gambling Act.

25 (12) Video gaming terminal games at a licensed

26 establishment, licensed truck stop establishment, licensed

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1 large truck stop establishment, licensed fraternal

2 establishment, or licensed veterans establishment when

3 conducted in accordance with the Video Gaming Act.

4 (13) Games of skill or chance where money or other

5 things of value can be won but no payment or purchase is

6 required to participate.

7 (14) Savings promotion raffles authorized under

8 Section 5g of the Illinois Banking Act, Section 7008 of

9 the Savings Bank Act, Section 42.7 of the Illinois Credit

10 Union Act, Section 5136B of the National Bank Act (12

11 U.S.C. 25a), or Section 4 of the Home Owners' Loan Act (12

12 U.S.C. 1463).

13 (15) Sports wagering when conducted in accordance with

14 the Sports Wagering Act.

15 (16) Fantasy contest wagering when conducted in

16 accordance with the Fantasy Sports Consumer Protection

17 Act.

18 (c) Sentence.

19 Gambling is a Class A misdemeanor. A second or subsequent

20 conviction under subsections (a)(3) through (a)(12), is a

21 Class 4 felony.

22 (d) Circumstantial evidence.

23 In prosecutions under this Section circumstantial evidence

24 shall have the same validity and weight as in any criminal

25 prosecution.

26 (Source: P.A. 101-31, Article 25, Section 25-915, eff.

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1 6-28-19; 101-31, Article 35, Section 35-80, eff. 6-28-19;

2 101-109, eff. 7-19-19; 102-558, eff. 8-20-21.)

3 (720 ILCS 5/28-3) (from Ch. 38, par. 28-3)

4 Sec. 28-3. Keeping a gambling place. A "gambling place" is

5 any real estate, vehicle, boat, or any other property

6 whatsoever used for the purposes of gambling other than

7 gambling conducted in the manner authorized by the Illinois

8 Gambling Act, the Sports Wagering Act, ~~or~~ the Video Gaming

9 Act, or the Fantasy Sports Consumer Protection Act. Any person

10 who knowingly permits any premises or property owned or

11 occupied by him or under his control to be used as a gambling

12 place commits a Class A misdemeanor. Each subsequent offense

13 is a Class 4 felony. When any premises is determined by the

14 circuit court to be a gambling place:

15 (a) Such premises is a public nuisance and may be

16 proceeded against as such, and

17 (b) All licenses, permits or certificates issued by

18 the State of Illinois or any subdivision or public agency

19 thereof authorizing the serving of food or liquor on such

20 premises shall be void; and no license, permit or

21 certificate so cancelled shall be reissued for such

22 premises for a period of 60 days thereafter; nor shall any

23 person convicted of keeping a gambling place be reissued

24 such license for one year from his conviction and, after a

25 second conviction of keeping a gambling place, any such

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1 person shall not be reissued such license, and

2 (c) Such premises of any person who knowingly permits

3 thereon a violation of any Section of this Article shall

4 be held liable for, and may be sold to pay any unsatisfied

5 judgment that may be recovered and any unsatisfied fine

6 that may be levied under any Section of this Article.

7 (Source: P.A. 101-31, Article 25, Section 25-915, eff.

8 6-28-19; 101-31, Article 35, Section 35-80, eff. 6-28-19;

9 102-558, eff. 8-20-21.)