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.


LRB103 39331 AWJ 69492 b

 

 

A BILL FOR

 

SB3710LRB103 39331 AWJ 69492 b

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 Consumer Protection Act.
 
6    Section 5. Definitions. As used in this Act:
7    "Adjusted gross fantasy contest receipts" means the amount
8equal to the total of all entry fees that a fantasy contest
9operator collects from all participants less only the total of
10all prizes paid out as prizes to all participants multiplied
11by the location percentage for this State.
12    "Board" means the Illinois Gaming Board.
13    "Entry fee" means a nonrefundable cash or cash equivalent
14that is paid by a participant and set in advance by a fantasy
15contest operator granting the participant the right to
16participate in a fantasy contest.
17    "Fantasy contest" means an online fantasy or simulated
18game 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
22participants compete against each other and contests wherein
23only a single participant competes against a target score set
24by the fantasy contest operator. "Fantasy contest" does not
25include any fantasy contest without an entry fee.
26    "Fantasy contest operator" means a person or entity that

 

 

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1offers fantasy contests to members of the public. "Fantasy
2contest operator" does not include an Internet service
3provider or a provider of mobile data services merely as a
4result of that entity's transporting general traffic that may
5include a fantasy contest and does not include a fantasy
6contest participant by virtue of doing any combination of the
7following: (i) setting house rules for a contest; (ii)
8assigning a salary or target score to any eligible athlete or
9player; (iii) accepting an entry fee from a fantasy contest
10participant; or (iv) awarding or disbursing prizes in
11conformance with this Act.
12    "Location percentage" means the percentage rounded to the
13nearest 0.1% of the total entry fees collected from players
14located in this State, divided by the total entry fees
15collected from all players in the fantasy contest.
16    "Participant" means an individual who participates in a
17fantasy contest offered by a fantasy contest operator.
18    "Prohibited participant" means an individual who has
19self-excluded under Section 45 or an athlete, coach, referee,
20trainer, or team staff when there is direct involvement of the
21athlete, coach, referee, trainer, or staff; the athlete's or
22staff's team; or the athletes that the coach coaches or the
23trainer trains.
24    "Qualified applicant" means an applicant for a license
25under this Act whose application meets the mandatory minimum
26qualification 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
3operators under this Act.
4    (b) The Board shall adopt any rules the Board considers
5necessary for the successful implementation, administration,
6and enforcement of this Act. The Board shall adopt rules no
7later than 180 days after the effective date of this Act. Rules
8proposed by the Board may be adopted as emergency rules under
9Section 5-45 of the Illinois Administrative Procedure Act.
10    (c) The Board shall levy and collect all fees, surcharges,
11civil penalties, and, on adjusted gross fantasy contest
12receipts 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
10comply with the anti-money laundering standards, as defined by
11the federal Bank Secrecy Act of 1970 and the Anti-Money
12Laundering Act of 2020.
13    (e) The Board shall verify that fantasy contest operators
14establish technical and operational measures to prevent
15underage participation in a fantasy contest.
16    (f) The Board shall verify that fantasy contest operators
17deploy identity verification procedures, which may require the
18use of a reputable independent third party that is in the
19business of verifying an individual's personally identifiable
20information and can detect potential prohibited participants.
21    (g) The Board shall verify that fantasy contest operators
22employ mechanisms on the operator's platform that are designed
23to detect and prevent unauthorized accounts and to detect and
24prevent fraud, money laundering, and collusion.
25    (h) The Board shall require the use of geolocation
26technology to verify that a participant is not accessing the

 

 

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1platform from a restricted jurisdiction.
2    (i) The Board shall adopt rules establishing compulsive
3and problem gambling standards for fantasy contest operators
4that are consistent with this Act.
5    (j) The Board may exercise any other powers necessary to
6enforce the provisions of this Act that it regulates and the
7rules of the Board.
8    (k) The Board and fantasy contest operator licensees may
9cooperate with investigations conducted by law enforcement
10agencies, including, but not limited to, providing and
11facilitating the provision of account-level entry and
12participation information.
13    (l) A fantasy contest operator licensee shall make all
14reasonable efforts to promptly notify the Board of any
15information 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
3may not offer fantasy contests in this State unless the person
4is licensed by the Board as a fantasy contest operator.
5    (b) An applicant for a license issued under this Act shall
6submit an application to the Board in the form the Board
7requires. The applicant shall submit fingerprints for a
8national criminal history record check by a law enforcement
9agency. The fingerprints shall be furnished by the applicant's
10owners, officers, and directors (if a corporation), managers
11and members (if a limited liability company), and partners (if
12a partnership). The fingerprints shall be accompanied by a
13signed authorization for the release of information by the law
14enforcement agency. The Board may require additional
15background checks on licensees when they apply for license
16renewal, and an applicant convicted of a disqualifying offense
17shall not be licensed. This subsection does not require an
18applicant or individual who has submitted to a national
19criminal history record check in this State or any other state
20within the 12 months before submitting the application to
21resubmit to another criminal history record check if the
22applicant or individual submits the results of the previous
23criminal history record check and affirms that there has been
24no material change in the criminal history since the time of
25the criminal history record check.

 

 

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1    (c) The information required by the Board shall include
2documentation 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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1fee, the Board shall conduct the necessary background
2investigation to determine if the applicant meets the
3qualifications for licensure. On completion of the necessary
4background investigation, the Board shall either issue a
5license or deny the application. If the application for
6licensure is denied, a statement setting forth the grounds for
7denial shall be forwarded to the applicant together with all
8other documents relied on by the Board, to the extent allowed
9by law.
 
10    Section 20. Fantasy contests.
11    (a) Any fantasy contest conducted under this Act does not
12constitute gambling for any purpose, including under Article
1328 of the Criminal Code of 1961 or the Criminal Code of 2012.
14    (b) Notwithstanding any provision of law to the contrary,
15the operation of fantasy contests is only lawful when
16conducted in accordance with the provisions of this Act.
17    (c) A person participating in a fantasy contest under this
18Act shall be at least 19 years of age.
19    (d) A licensee under this Act may only accept an entry from
20a person physically located in the State. A fantasy contest
21operator must use a geolocation system to ensure that a
22participant is physically present in the State when
23participating in the fantasy contest unless otherwise
24authorized by the Board.
25    (e) This Act shall be construed liberally to promote the

 

 

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1general welfare of the public and integrity of the fantasy
2sports industry. However, the Board may not adopt rules
3limiting or regulating the rules or administration of an
4individual fantasy contest, the statistical makeup of a
5fantasy contest, or the digital platform of a fantasy contest
6operator.
7    (f) No licensed fantasy contest operator shall be forced
8to surrender or terminate its license prior to the date of
9expiration of the license solely by virtue of a change in the
10rules adopted under this Act.
 
11    Section 25. Issuance and denial of license.
12    (a) The initial license fee for a fantasy contest operator
13that operated in Illinois before the effective date of this
14Act shall be 8% of its adjusted gross fantasy contest receipts
15from the preceding calendar year or $1,000,000, whichever is
16less. The initial license fee for a fantasy contest operator
17that did not operate in Illinois for at least 12 months before
18the effective date of this Act shall be $10,000, except, if a
19fantasy contest operator has 10,000 or more fantasy contest
20participants in Illinois with an active account who
21participated in at least one fantasy contest with an entry
22fee, then the fantasy contest operator shall notify the Board
23and remit an application fee in the amount of $990,000 within
2410 days of notifying the Board.
25    (b) A fantasy contest operator that was offering contests

 

 

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1to persons located in Illinois before the effective date of
2this Act may continue to offer contests to persons located in
3Illinois until the fantasy contest operator's application for
4licensure has been approved or denied under this Act if the
5fantasy contest operator files an application for licensure
6with the Board within 90 days after the adoption of rules to
7effectuate this Act.
8    (c) Licenses issued by the Board shall remain in effect
9for 4 years. The Board shall establish a process for renewal
10with a renewal fee being 1% of the adjusted gross fantasy
11contests receipts for the preceding 4 years.
12    (d) A fantasy contest operator that allows its license to
13lapse, without requesting an extension of time to file, shall
14resubmit an initial application. An extension may be granted
15by the Board upon receipt of a written request.
16    (e) A fantasy contest operator applying for a license or
17renewal of a license may operate during the application period
18unless the Board has reasonable cause to believe that the
19fantasy contest operator is or may be in violation of the
20provisions of this Act and the Board requires the fantasy
21contest operator to suspend the operation of any fantasy
22contest 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
25applicant shall: (i) contract with a certified public

 

 

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1accountant to conduct an independent audit, consistent with
2generally accepted accounting principles; (ii) annually
3contract with a testing laboratory recognized by the Board to
4verify compliance with the provisions of this Act; and (iii)
5submit to the Board a copy of the audit report and a report of
6the testing laboratory.
7    (b) An initial applicant is not required to submit an
8audit report and report of the testing laboratory until the 24
9months following the issuance of a licensee to the licensee.
 
10    Section 35. Reporting prohibited conduct; investigations
11of prohibited conduct.
12    (a) The Board shall investigate all reasonable allegations
13of prohibited conduct and refer any allegations it deems
14credible to the appropriate law enforcement entity.
15    (b) The identity of any reporting person shall remain
16confidential unless that person authorizes disclosure of the
17person's identity or until the allegation of prohibited
18conduct is referred to law enforcement.
19    (c) If the Board receives a complaint of prohibited
20conduct by an athlete, the Board shall notify the appropriate
21sports governing body of the athlete to review the complaint
22as provided by rule of the Board.
23    (d) The Board shall adopt rules governing investigations
24of prohibited conduct and referrals to law enforcement
25entities.
 

 

 

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1    Section 40. Tax. Beginning on July 1, 2025, for the
2privilege of holding a license to operate fantasy contests
3under this Act, this State shall impose and collect a tax at a
4rate of at least 10% but not more than 15%, as determined by
5rule of the Board, of the fantasy contest operator's adjusted
6gross fantasy contests receipts. The accrual method of
7accounting shall be used for purposes of calculating the
8amount of the tax owed by the licensee. The fantasy contest
9operator shall submit to the Board, on or before the last day
10of each calendar month, a return indicating the amount of tax
11due under this Section for the previous calendar month as well
12as any other information the Board shall require by rule and
13shall remit to the Board payment of the tax due under this
14Section with that return.
 
15    Section 45. Compulsive gaming; voluntary self-exclusion.
16    (a) Each licensee shall include a statement regarding
17obtaining assistance with real-money gaming problems on the
18licensee's portal, website, or computer or mobile application
19and on all marketing materials and advertisements of the
20licensee.
21    (b) A resident, or nonresident if allowed to participate
22in fantasy contests, may voluntarily prohibit the resident or
23nonresident from establishing a fantasy contest account with a
24fantasy contest operator under this Act. The Board shall

 

 

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1incorporate the voluntary self-exclusion program for fantasy
2contests into any existing self-exclusion program that it
3operates on the effective date of this Act.
4    (c) If a self-excluded person participates in a fantasy
5contest, the fantasy contest operator shall report to the
6Board, at a minimum, the name of the self-excluded person, the
7date of participation, the amount or value of any money,
8prizes, or awards forfeited, if any, and any other action
9taken.
10    (d) A fantasy contest operator may not pay any prize or
11award to a person who is on the Board's self-exclusion list.
12Any prize or award won by a person on the self-exclusion list
13is forfeited and shall be donated by the fantasy contest
14operator to the problem gaming charities or programs as
15identified and directed by the Board on a quarterly basis by
16the twenty-fifth day of the following month.
17    (e) A fantasy contest operator shall develop and maintain
18a program to mitigate compulsive play and curtail compulsive
19play, which may be in conjunction with the Board.
 
20    Section 50. Supplier diversity goals for fantasy contest
21operators.
22    (a) The Board shall require licensees under this Act to
23submit an annual report, in a searchable Adobe PDF format, on
24all procurement goals and actual spending for businesses owned
25by women, minorities, veterans, tribal and indigenous persons,

 

 

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1and persons with disabilities and for all small business
2enterprises in the previous calendar year. These goals shall
3be expressed as a percentage of the total work performed by the
4entity submitting the report, and the actual spending for all
5businesses owned by women, minorities, veterans, tribal and
6indigenous persons, and persons with disabilities and for all
7small business enterprises shall also be expressed as a
8percentage of the total work performed by the entity
9submitting the report. The initial report shall be due one
10year after the effective date of this Act and once every 2
11years thereafter.
12    (b) Each licensee in its annual report shall include the
13following 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
9State-specific data as possible. If the submitting entity does
10not submit State-specific data, then the licensee shall
11include any national data it does have and explain why it could
12not submit State-specific data and how it intends to do so in
13future reports, if possible.
14    (d) Each annual report shall include the rules,
15regulations, and definitions used for the procurement goals in
16the licensee's annual report.
 
17    Section 100. The Illinois Administrative Procedure Act is
18amended 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.
21To provide for the expeditious and timely implementation of
22this amendatory Act of the 103rd General Assembly, emergency
23rules implementing the Fantasy Sports Consumer Protection Act
24may be adopted in accordance with Section 5-45 by the Illinois

 

 

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1Gaming. The adoption of emergency rules authorized by Section
25-45 and this Section is deemed to be necessary for the public
3interest, safety, and welfare.
4    This Section is repealed one year after the effective date
5of this amendatory Act of the 103rd General Assembly.
 
6    Section 105. The Sports Wagering Act is amended by
7changing 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
11sports wagering licensee's gross sports wagering receipts,
12less winnings paid to wagerers in such games.
13    "Athlete" means any current or former professional athlete
14or collegiate athlete.
15    "Board" means the Illinois Gaming Board.
16    "Covered persons" includes athletes; umpires, referees,
17and officials; personnel associated with clubs, teams,
18leagues, and athletic associations; medical professionals
19(including athletic trainers) who provide services to athletes
20and players; and the family members and associates of these
21persons 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
24operations are conducted under the Illinois Gambling Act,

 

 

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1pari-mutuel wagering is conducted under the Illinois Horse
2Racing Act of 1975, or sports wagering is conducted under this
3Act.
4    "Official league data" means statistics, results,
5outcomes, and other data related to a sports event obtained
6pursuant to an agreement with the relevant sports governing
7body, or an entity expressly authorized by the sports
8governing body to provide such information to licensees, that
9authorizes the use of such data for determining the outcome of
10tier 2 sports wagers on such sports events.
11    "Organization licensee" has the meaning given to that term
12in the Illinois Horse Racing Act of 1975.
13    "Owners licensee" means the holder of an owners license
14under the Illinois Gambling Act.
15    "Person" means an individual, partnership, committee,
16association, corporation, or any other organization or group
17of persons.
18    "Personal biometric data" means an athlete's information
19derived from DNA, heart rate, blood pressure, perspiration
20rate, internal or external body temperature, hormone levels,
21glucose levels, hydration levels, vitamin levels, bone
22density, muscle density, and sleep patterns.
23    "Prohibited conduct" includes any statement, action, and
24other communication intended to influence, manipulate, or
25control a betting outcome of a sporting contest or of any
26individual occurrence or performance in a sporting contest in

 

 

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1exchange for financial gain or to avoid financial or physical
2harm. "Prohibited conduct" includes statements, actions, and
3communications made to a covered person by a third party, such
4as a family member or through social media. "Prohibited
5conduct" does not include statements, actions, or
6communications made or sanctioned by a team or sports
7governing body.
8    "Qualified applicant" means an applicant for a license
9under this Act whose application meets the mandatory minimum
10qualification criteria as required by the Board.
11    "Sporting contest" means a sports event or game on which
12the State allows sports wagering to occur under this Act.
13    "Sports event" means a professional sport or athletic
14event, a collegiate sport or athletic event, a motor race
15event, or any other event or competition of relative skill
16authorized by the Board under this Act.
17    "Sports facility" means a facility that hosts sports
18events and holds a seating capacity greater than 17,000
19persons, except in a municipality with a population of more
20than 1,000,000, a seating capacity greater than 10,000
21persons.
22    "Sports governing body" means the organization that
23prescribes final rules and enforces codes of conduct with
24respect to a sports event and participants therein.
25    "Sports wagering" means accepting wagers on sports events
26or portions of sports events, or on the individual performance

 

 

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1statistics of athletes in a sports event or combination of
2sports events, by any system or method of wagering, including,
3but not limited to, in person or over the Internet through
4websites and on mobile devices. "Sports wagering" includes,
5but is not limited to, single-game bets, teaser bets, parlays,
6over-under, moneyline, pools, exchange wagering, in-game
7wagering, in-play bets, proposition bets, and straight bets.
8"Sports wagering" does not include fantasy contests as that
9term is defined in Section 5 of the Fantasy Sports Consumer
10Protection Act.
11    "Sports wagering account" means a financial record
12established by a master sports wagering licensee for an
13individual patron in which the patron may deposit and withdraw
14funds for sports wagering and other authorized purchases and
15to which the master sports wagering licensee may credit
16winnings or other amounts due to that patron or authorized by
17that patron.
18    "Tier 1 sports wager" means a sports wager that is
19determined solely by the final score or final outcome of the
20sports event and is placed before the sports event has begun.
21    "Tier 2 sports wager" means a sports wager that is not a
22tier 1 sports wager.
23    "Wager" means a sum of money or thing of value risked on an
24uncertain occurrence.
25    "Winning bidder" means a qualified applicant for a master
26sports wagering license chosen through the competitive

 

 

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1selection 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
4changing 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
4not 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
20conviction under subsections (a)(3) through (a)(12), is a
21Class 4 felony.
22    (d) Circumstantial evidence.
23    In prosecutions under this Section circumstantial evidence
24shall have the same validity and weight as in any criminal
25prosecution.
26(Source: P.A. 101-31, Article 25, Section 25-915, eff.

 

 

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16-28-19; 101-31, Article 35, Section 35-80, eff. 6-28-19;
2101-109, 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
5any real estate, vehicle, boat, or any other property
6whatsoever used for the purposes of gambling other than
7gambling conducted in the manner authorized by the Illinois
8Gambling Act, the Sports Wagering Act, or the Video Gaming
9Act, or the Fantasy Sports Consumer Protection Act. Any person
10who knowingly permits any premises or property owned or
11occupied by him or under his control to be used as a gambling
12place commits a Class A misdemeanor. Each subsequent offense
13is a Class 4 felony. When any premises is determined by the
14circuit 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.
86-28-19; 101-31, Article 35, Section 35-80, eff. 6-28-19;
9102-558, eff. 8-20-21.)
 
10    Section 999. Effective date. This Act takes effect upon
11becoming law.