HB5847 102ND GENERAL ASSEMBLY

LRB102 29460 AMQ 41462 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB5847

Introduced , by Rep. Lamont J. Robinson, Jr.

SYNOPSIS AS INTRODUCED:

230 ILCS 45/25-10
230 ILCS 45/25-40

Amends the Sports Wagering Act. Defines "eligible professional sports team". Provides that an eligible professional sports team may apply to the Illinois Gaming Board for a master sports wagering license. Provides that if a sports facility is owned by a governmental entity, one professional sports team that plays its home contests at the same sports facility or its designee may apply for a master sports wagering license in place of the relevant sports facility if that eligible professional sports team or its designee has received written authorization from the relevant sports facility. Provides that if more than one professional sports team plays its home contests at the same sports facility, written authorization is required from all sports teams that play home contests at the sports facility. Provides that a master sports wagering licensee initial and renewal license fee shall be reduced by 50% for the sports facility, an eligible professional sports team, or its designee of a sports facility or an eligible professional sports team that meets the provided social equity applicant guidelines. Allows a sports facility, an eligible professional sports team, or its designee of a sports facility or an eligible professional sports team issued a master sports wagering licensee to conduct sports wagering at or within 5,000 lineal feet of the sports facility (rather than within a 5-block radius of the sports facility) and to conduct sports wagering over the Internet within the territorial limits of the State (rather than within a 5-block radius of the sports facility). Provides for key persons of an application for a master sports wagering license.

A BILL FOR

AN ACT concerning gaming.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Sports Wagering Act is amended by changing Sections 25-10 and 25-40 as follows:

(230 ILCS 45/25-10)

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

"Adjusted gross sports wagering receipts" means a master sports wagering licensee's gross sports wagering receipts, less winnings paid to wagerers in such games.

"Athlete" means any current or former professional athlete or collegiate athlete.

"Board" means the Illinois Gaming Board.

"Covered persons" includes athletes; umpires, referees, and officials; personnel associated with clubs, teams, leagues, and athletic associations; medical professionals (including athletic trainers) who provide services to athletes and players; and the family members and associates of these persons where required to serve the purposes of this Act.

"Department" means the Department of the Lottery.

"Eligible professional sports team" means a professional sports team eligible to apply for a master sports wagering license under subsection (b-5) of Section 25-40.

"Gaming facility" means a facility at which gambling operations are conducted under the Illinois Gambling Act, pari-mutuel wagering is conducted under the Illinois Horse Racing Act of 1975, or sports wagering is conducted under this Act.

"Official league data" means statistics, results, outcomes, and other data related to a sports event obtained pursuant to an agreement with the relevant sports governing body, or an entity expressly authorized by the sports governing body to provide such information to licensees, that authorizes the use of such data for determining the outcome of tier 2 sports wagers on such sports events.

"Organization licensee" has the meaning given to that term in the Illinois Horse Racing Act of 1975.

"Owners licensee" means the holder of an owners license under the Illinois Gambling Act.

"Person" means an individual, partnership, committee, association, corporation, or any other organization or group of persons.

"Personal biometric data" means an athlete's information derived from DNA, heart rate, blood pressure, perspiration rate, internal or external body temperature, hormone levels, glucose levels, hydration levels, vitamin levels, bone density, muscle density, and sleep patterns.

"Prohibited conduct" includes any statement, action, and other communication intended to influence, manipulate, or control a betting outcome of a sporting contest or of any individual occurrence or performance in a sporting contest in exchange for financial gain or to avoid financial or physical harm. "Prohibited conduct" includes statements, actions, and communications made to a covered person by a third party, such as a family member or through social media. "Prohibited conduct" does not include statements, actions, or communications made or sanctioned by a team or sports governing body.

"Qualified applicant" means an applicant for a license under this Act whose application meets the mandatory minimum qualification criteria as required by the Board.

"Sporting contest" means a sports event or game on which the State allows sports wagering to occur under this Act.

"Sports event" means a professional sport or athletic event, a collegiate sport or athletic event, a motor race event, or any other event or competition of relative skill authorized by the Board under this Act.

"Sports facility" means a facility that hosts sports events and holds a seating capacity greater than 17,000 persons, except in a municipality with a population of more than 1,000,000, a seating capacity greater than 10,000 persons.

"Sports governing body" means the organization that prescribes final rules and enforces codes of conduct with respect to a sports event and participants therein.

"Sports wagering" means accepting wagers on sports events or portions of sports events, or on the individual performance statistics of athletes in a sports event or combination of sports events, by any system or method of wagering, including, but not limited to, in person or over the Internet through websites and on mobile devices. "Sports wagering" includes, but is not limited to, single-game bets, teaser bets, parlays, over-under, moneyline, pools, exchange wagering, in-game wagering, in-play bets, proposition bets, and straight bets.

"Sports wagering account" means a financial record established by a master sports wagering licensee for an individual patron in which the patron may deposit and withdraw funds for sports wagering and other authorized purchases and to which the master sports wagering licensee may credit winnings or other amounts due to that patron or authorized by that patron.

"Tier 1 sports wager" means a sports wager that is determined solely by the final score or final outcome of the sports event and is placed before the sports event has begun.

"Tier 2 sports wager" means a sports wager that is not a tier 1 sports wager.

"Wager" means a sum of money or thing of value risked on an uncertain occurrence.

"Winning bidder" means a qualified applicant for a master sports wagering license chosen through the competitive selection process under Section 25-45.

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

(230 ILCS 45/25-40)

Sec. 25-40. Master sports wagering license issued to a sports facility.

(a) As used in this Section, "designee" means a master sports wagering licensee under Section 25-30, 25-35, or 25-45 or a management services provider licensee.

(b) A sports facility, an eligible professional sports team that is subject to the requirements of subsection (b-5), or a designee contracted by a sports facility or an eligible professional sports team to operate sports wagering at or within a 5-block radius of the sports facility may apply to the Board for a master sports wagering license. To the extent permitted by federal and State law, the Board shall actively seek to achieve racial, ethnic, and geographic diversity when issuing master sports wagering licenses to sports facilities or their designees and encourage minority-owned businesses, women-owned businesses, veteran-owned businesses, and businesses owned by persons with disabilities to apply for licensure. Additionally, the report published under subsection (m) of Section 25-45 shall impact the issuance of the master sports wagering license to the extent permitted by federal and State law.

For the purposes of this subsection (b) and subsection (e-5), "minority-owned business", "women-owned business", and "business owned by persons with disabilities" have the meanings given to those terms in Section 2 of the Business Enterprise for Minorities, Women, and Persons with Disabilities Act.

(b-5) If a sports facility is owned by a governmental entity, one professional sports team that plays its home contests at the same sports facility or its designee may apply for a master sports wagering license in place of the relevant sports facility if that eligible professional sports team or its designee has received written authorization from the relevant sports facility. If more than one professional sports team plays its home contests at the same sports facility, written authorization is required from all sports teams that play home contests at the sports facility.

(c) The Board may issue up to 7 master sports wagering licenses to applicants that qualify as a sports facility, an eligible professional sports team, or a designee of a sports facility or an eligible professional sports team sports facilities or their designees that meet the requirements for licensure as determined by rule by the Board. If more than 7 qualified applicants apply for a master sports wagering license under this Section, the licenses shall be granted in the order in which the applications were received. If a license is denied, revoked, or not renewed, the Board may begin a new application process and issue a license under this Section in the order in which the application was received.

(d) The initial license fee for a master sports wagering license for a sports facility is $10,000,000. The master sports wagering license is valid for 4 years. A master sports wagering licensee initial license fee shall be reduced by 50% for the sports facility, an eligible professional sports team, or its designee of a sports facility or an eligible professional sports team that meets the social equity applicant guidelines under subsection (e-5).

(e) The sports facility, an eligible professional sports team, or its designee of a sports facility or an eligible professional sports team may renew the master sports wagering license for a period of 4 years by paying a $1,000,000 renewal fee to the Board. A master sports wagering license renewal fee shall be reduced by 50% for the sports facility, an eligible professional sports team, or its designee of a sports facility or an eligible professional sports team that meets the social equity applicant guidelines under subsection (e-5).

(e-5) A master sports wagering licensee may apply for an initial or renewal license fee reduction as a social equity applicant under subsections (d) and (e). To qualify as a social equity applicant, the following must be applicable:

(1) the applicant, or its designee, including all individuals and entities with a 10% or greater ownership and all parent companies, subsidiaries, and affiliates, is at least a 15% minority-owned business, women-owned business, or business owned by persons with disabilities; and

(2) the applicant, or its designee, including all individuals and entities with a 10% or greater ownership and all parent companies, subsidiaries, and affiliates, has less than a total of $50,000,000 of income in the previous calendar year.

The Board may require social equity applicants to attest that they meet the requirements for a fee waiver and to provide evidence of annual total income in the previous calendar year.

If the Board determines that an applicant, or its designee, who applied as a social equity applicant is not eligible for such status, the applicant, or its designee, shall be provided an additional 10 days to provide alternative evidence that he or she qualifies as a social equity applicant. Alternatively, the applicant, or its designee, may pay the remainder of the waived fee and be considered as a non-social equity applicant. If the applicant, or its designee, cannot do either, then the Board may keep the initial application fee or renewal fee and the application shall not be graded.

Additionally, the report published under subsection (m) of Section 25-45 may impact the issuance of this reduction of initial and renewal license fees to social equity applicants to the extent permitted by federal and State law.

(f) A sports facility, an eligible professional sports team, or its designee of a sports facility or an eligible professional sports team issued a master sports wagering license may conduct sports wagering at or within 5,000 lineal feet a 5-block radius of the sports facility.

(g) A sports facility, an eligible professional sports team, or its designee of a sports facility or an eligible professional sports team issued a master sports wagering license may conduct sports wagering over the Internet within the sports facility or within the territorial limits of the State a 5-block radius of the sports facility.

(h) The sports wagering offered by a sports facility, an eligible professional sports team, or its designee of a sports facility or an eligible professional sports team over the Internet or through a mobile application shall be offered under the same brand as the sports facility is operating under, the brand the eligible professional sports team is operating under, the brand the designee is operating under, or a combination thereof.

(i) Until issuance of the first license under Section 25-45 or March 5, 2022, whichever occurs first, an individual must register in person at a sports facility or the designee's facility to participate in sports wagering offered over the Internet or through a mobile application.

(j) When (i) a designee contracted to operate sports wagering by a sports facility, (ii) an eligible professional sports team, or (iii) a designee contracted to operate sports wagering by an eligible professional sports team is the applicant for a master sports wagering license issued at a sports facility, the owners of the sports facility shall not be considered key persons of the application.

When a designee contracted to operate sports wagering by a sports facility is the applicant for a master sports wagering license issued to a sports facility, the owners of any relevant sports team that plays its home contests at the sports facility shall not be considered key persons of the application.

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