SB2328 102ND GENERAL ASSEMBLY

LRB102 14800 SMS 20153 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2328

Introduced 2/26/2021, by Sen. Celina Villanueva

SYNOPSIS AS INTRODUCED:

230 ILCS 45/25-30

Amends the Sports Wagering Act. Provides that to be issued a master sports wagering license, an organization licensee under the Illinois Horse Racing Act of 1975 shall: (1) have entered into a signed contract with the horsemen's association representing the largest number of owners, trainers, jockeys, or standardbred drivers who race horses at the race meeting of the organization licensee that covers the entire term of a master sports wagering license and the conditions at which the organization gaming licensee would conduct sports wagering, including, but not limited to, a purse share of not less than 6% of adjusted gross sports wagering receipts (with specified purse distributions if 2 different breeds race at the same racetrack) and providing services for backstretch workers; and (2) have been issued an organization gaming license under the Illinois Gambling Act. Requires an organization licensee to meet the same requirements in order to renew the master sports wagering license. Effective immediately.

FISCAL NOTE ACT MAY APPLY

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 Section 25-30 as follows:

(230 ILCS 45/25-30)

Sec. 25-30. Master sports wagering license issued to an organization licensee.

(a) An organization licensee may apply to the Board for a master sports wagering license. On and after the effective date of this amendatory Act of the 102nd General Assembly, the Board shall only issue a master sports wagering license to an organization licensee that:

(1) has entered into a signed contract with the horsemen's association representing the largest number of owners, trainers, jockeys, or standardbred drivers who race horses at the race meeting of the organization licensee that covers the entire term of a master sports wagering license and the conditions at which the organization gaming licensee would conduct sports wagering, including, but not limited to:

(A) a purse share of not less than 6% of adjusted gross sports wagering receipts; if 2 different breeds race at the same racetrack in the same calendar year, the purse moneys allocated under this subparagraph (A) shall be divided pro rata based on live racing days awarded by the Board to that racetrack for each breed; however, the ratio may not exceed 60% for either breed, except if one breed is awarded fewer than 20 live racing days, in which case the purse moneys allocated shall be divided pro rata based on live racing days; and

(B) providing services for backstretch workers; and

(2) has been issued an organization gaming license under the Illinois Gambling Act. To the extent permitted by federal and State law, the Board shall actively seek to achieve racial, ethnic, and geographic diversity when issuing master sports wagering licenses to organization licensees and encourage minority-owned businesses, women-owned businesses, veteran-owned businesses, and businesses owned by persons with disabilities to apply for licensure. Additionally, the report published under subsection (m) of Section 25-45 shall impact the issuance of the master sports wagering license to the extent permitted by federal and State law.

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

(b) Except as otherwise provided in this subsection (b), the initial license fee for a master sports wagering license for an organization licensee is 5% of its handle from the preceding calendar year or the lowest amount that is required to be paid as an initial license fee by an owners licensee under subsection (b) of Section 25-35, whichever is greater. No initial license fee shall exceed $10,000,000. An organization licensee licensed on the effective date of this Act shall pay the initial master sports wagering license fee by July 1, 2021. For an organization licensee licensed after the effective date of this Act, the master sports wagering license fee shall be $5,000,000, but the amount shall be adjusted 12 months after the organization licensee begins racing operations based on 5% of its handle from the first 12 months of racing operations. The master sports wagering license is valid for 4 years.

(c) The organization licensee may renew the master sports wagering license for a period of 4 years by paying a $1,000,000 renewal fee to the Board. To renew the master sports wagering license, an organization licensee shall meet the requirements in paragraphs (1) and (2) of subsection (a).

(d) An organization licensee issued a master sports wagering license may conduct sports wagering:

(1) at its facility at which inter-track wagering is conducted pursuant to an inter-track wagering license under the Illinois Horse Racing Act of 1975;

(2) at 3 inter-track wagering locations if the inter-track wagering location licensee from which it derives its license is an organization licensee that is issued a master sports wagering license; and

(3) over the Internet or through a mobile application.

(e) The sports wagering offered over the Internet or through a mobile application shall only be offered under either the same brand as the organization licensee is operating under or a brand owned by a direct or indirect holding company that owns at least an 80% interest in that organization licensee on the effective date of this Act.

(f) Until issuance of the first license under Section 25-45, an individual must create a sports wagering account in person at a facility under paragraph (1) or (2) of subsection (d) to participate in sports wagering offered over the Internet or through a mobile application.

(Source: P.A. 101-31, eff. 6-28-19; 101-648, eff. 6-30-20.)

Section 99. Effective date. This Act takes effect upon becoming law.