Illinois General Assembly - Full Text of HB4934
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Full Text of HB4934  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 1/27/2022, by Rep. Margaret Croke - Jonathan Carroll


230 ILCS 45/25-70

    Amends the Sports Wagering Act in provisions concerning the Lottery sports wagering pilot program. Provides that the Department of the Lottery shall establish and publish the rules and procedures for the competitive bid process in issuing the central system provider license. Requires the winning bidder to pay no less than $1,000,000 (rather than paying $20,000,000) for the central system provider license. Requires the money to be deposited into the State Lottery Fund to be used for the costs of development and administration related to the Lottery sports wagering pilot program, and any funds not used by the Department shall be transferred to the Rebuild Illinois Projects Fund. Provides that sports lottery terminals may be placed in no more than 2,500 Lottery retail locations in the State in any one given year of the sports wagering pilot program (rather than during the first 360 days after the effective date of Public Act 101-31). Provides that the total number of retail locations of the Lottery sports wagering pilot program shall not exceed 5,000 after initial implementation of the Lottery sports wagering pilot program. Provides that the privilege tax due for Lottery sports wagering shall be transferred to the Capital Projects Fund on the last day of each month (rather than the 15th day of each month). Extends the repeal date of provisions concerning the Lottery sports wagering pilot program from January 1, 2024 to July 1, 2030. Makes other and conforming changes. Effective immediately.

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1    AN ACT concerning gaming.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Sports Wagering Act is amended by changing
5Section 25-70 as follows:
6    (230 ILCS 45/25-70)
7    (Section scheduled to be repealed on January 1, 2024)
8    Sec. 25-70. Lottery sports wagering pilot program.
9    (a) As used in this Section:
10    "Central system" means the hardware, software,
11peripherals, and network components provided by the
12Department's central system provider that link and support all
13required sports lottery terminals and the central site and
14that are unique and separate from the lottery central system
15for draw and instant games but can integrate with lottery
16central system hardware if required by the Department.
17    "Central system provider" means an individual,
18partnership, corporation, or limited liability company that
19has been licensed for the purpose of providing and maintaining
20a central system and the related management facilities
21specifically for the management of sports lottery terminals
22and sports lottery systems.
23    "Electronic card" means a card purchased from a lottery



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1retailer, a credit card, or a debit card.
2    "Lottery retailer" means a location licensed by the
3Department to sell lottery tickets or shares or sports wagers.
4    "Sports lottery systems" means systems provided by the
5central system provider or other provider needed for operating
6a sports wagering program consisting of, but not limited to,
7sports wagering products, risk management, operations, and
8support services.
9    "Sports lottery terminal" means a terminal linked to the
10central system in which bills or coins are deposited or
11received by a retailer or an electronic card is inserted in
12order to place wagers on a sports event and lottery offerings.
13A wireless device can also be used to communicate with the
14terminal to place a wager.
15    (b) The Department shall issue one central system provider
16license pursuant to an open and competitive bidding process.
17The Department shall establish and publish the rules and
18procedures for a competitive bid process that uses the
19following procedures:
20        (1) The Department shall make applications for the
21    central system provider license available to the public
22    and allow a reasonable time for applicants to submit
23    applications to the Department.
24        (2) During the filing period for central system
25    provider license applications, the Department may retain
26    professional services to assist the Department in



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1    conducting the open and competitive bidding process.
2        (3) After receiving all of the bid proposals, the
3    Department shall open all of the proposals in a public
4    forum and disclose the prospective central system provider
5    names and venture partners, if any.
6        (4) The Department shall summarize the terms of the
7    bid proposals and may make this summary available to the
8    public.
9        (5) The Department shall evaluate the bid proposals
10    within a reasonable time and select no more than 3 final
11    applicants to make presentations of their bid proposals to
12    the Department.
13        (6) The final applicants shall make their
14    presentations to the Department on the same day during an
15    open session of the Department.
16        (7) As soon as practicable after the public
17    presentations by the final applicants, the Department, in
18    its discretion, may conduct further negotiations among the
19    3 final applicants. At the conclusion of such
20    negotiations, the Department shall select the winning bid.
21        (8) Upon selection of the winning bid, the Department
22    shall evaluate the winning bid within a reasonable period
23    of time for licensee suitability in accordance with all
24    applicable statutory and regulatory criteria.
25        (9) If the winning bidder is unable or otherwise fails
26    to consummate the transaction, (including if the



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1    Department determines that the winning bidder does not
2    satisfy the suitability requirements), the Department may,
3    on the same criteria, select from the remaining bidders.
4        (10) The winning bidder shall pay no less than
5    $1,000,000 $20,000,000 to the Department in accordance
6    with its competitive bid process rules and procedures upon
7    being issued the central system provider license. The
8    money shall be deposited into the State Lottery Fund to be
9    used for the costs of development and administration
10    related to the Lottery sports wagering pilot program. Any
11    funds not used by the Department shall be transferred to
12    the Rebuild Illinois Projects Fund.
13    (c) Every sports lottery terminal offered in this State
14for play shall first be tested and approved pursuant to the
15rules of the Department, and each sports lottery terminal
16offered in this State for play shall conform to an approved
17model. For the examination of sports lottery terminals and
18associated equipment as required by this Section, the central
19system provider may utilize the services of one or more
20independent outside testing laboratories that have been
21accredited by a national accreditation body and that, in the
22judgment of the Department, are qualified to perform such
23examinations. Every sports lottery terminal offered in this
24State for play must meet minimum standards set by an
25independent outside testing laboratory approved by the



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1    (d) Sports During the first 360 days after the effective
2date of this Act, sport lottery terminals may be placed in no
3more than 2,500 Lottery retail locations in the State in any
4one given year of the Lottery sports wagering pilot program.
5The total number of retail locations of the Lottery sports
6wagering pilot program shall not exceed 5,000 after initial
7implementation of the Lottery sports wagering pilot program.
8The initial implementation of the Lottery sports wagering
9pilot program shall begin upon the successful installation and
10testing of the first sports lottery terminal at a Lottery
11retail location and the sports lottery terminal is live and
12open to place wagers. Sports lottery terminals may be placed
13in an additional 2,500 Lottery retail locations during the
14second year after the effective date of this Act.
15    (e) A sports lottery terminal may not directly dispense
16coins, cash, tokens, or any other article of exchange or value
17except for receipt tickets. Tickets shall be dispensed by
18pressing the ticket dispensing button on the sports lottery
19terminal at the end of the placement of one's wager or wagers.
20The ticket shall indicate the total amount wagered, odds for
21each wager placed, and the cash award for each bet placed, the
22time of day in a 24-hour format showing hours and minutes, the
23date, the terminal serial number, the sequential number of the
24ticket, and an encrypted validation number from which the
25validity of the prize may be determined. The player shall turn
26in this ticket to the Department or its retailer in accordance



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1with the Department's current claim procedures appropriate
2person at a lottery retailer to receive the cash award.
3    (f) No lottery retailer may cause or permit any person
4under the age of 21 years to use a sports lottery terminal or
5sports wagering application. A lottery retailer who knowingly
6causes or permits a person under the age of 21 years to use a
7sports lottery terminal or sports wagering application is
8guilty of a business offense and shall be fined an amount not
9to exceed $5,000.
10    (g) A sports lottery terminal shall only accept parlay
11wagers and fixed odds parlay wagers. The Department shall, by
12rule, establish the total amount, as a percentage, of all
13wagers placed that a lottery retailer may retain.
14    (h) The Department shall have jurisdiction over and shall
15supervise all lottery sports wagering operations governed by
16this Section. The Department shall have all powers necessary
17and proper to fully and effectively execute the provisions of
18this Section, including, but not limited to, the following:
19        (1) To investigate applicants and determine the
20    eligibility of applicants for licenses and to select among
21    competing applicants the applicants which best serve the
22    interests of the citizens of Illinois.
23        (2) To have jurisdiction and supervision over all
24    lottery sports wagering operations in this State.
25        (3) To adopt rules for the purpose of administering
26    the provisions of this Section and to adopt rules and



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1    conditions under which all lottery sports wagering in the
2    State shall be conducted. Such rules are to provide for
3    the prevention of practices detrimental to the public
4    interest and for the best interests of lottery sports
5    wagering, including rules (i) regarding the inspection of
6    such licensees necessary to operate a lottery retailer
7    under any laws or rules applicable to licensees, (ii) to
8    impose penalties for violations of the Act and its rules,
9    and (iii) establishing standards for advertising lottery
10    sports wagering.
11    (i) The Department shall adopt emergency rules to
12administer this Section in accordance with Section 5-45 of the
13Illinois Administrative Procedure Act. For the purposes of the
14Illinois Administrative Procedure Act, the General Assembly
15finds that the adoption of rules to implement this Section is
16deemed an emergency and necessary to the public interest,
17safety, and welfare.
18    (j) For the privilege of operating lottery sports wagering
19under this Section, all net sports wagering proceeds minus net
20of proceeds returned to players shall be electronically
21transferred daily or weekly, at the discretion of the Director
22of the Lottery, into the State Lottery Fund. After amounts
23owed to the central system provider and licensed agents, and
24any other amounts owed for costs incurred in the operation and
25administration of the Lottery sports wagering pilot program,
26as determined by the Department, are paid from the moneys



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1deposited into the State Lottery Fund under subsection (b) and
2this subsection, the remainder shall be transferred on the
3last day 15th of each month to the Capital Projects Fund.
4Following the reconciliation after a fiscal year audit, if an
5amount in excess of the annual remaining net sports wagering
6proceeds is transferred for a fiscal year, then the Director
7of the Lottery shall offset the transfers for the following
8fiscal year by the excess amount. If an amount less than the
9annual remaining net sports wagering proceeds is transferred
10for a fiscal year, then the Director of the Lottery shall
11increase the transfer for the following fiscal year by the
12deficit amount.
13    (k) This Section is repealed on July 1, 2030 January 1,
15(Source: P.A. 101-31, eff. 6-28-19.)
16    Section 99. Effective date. This Act takes effect upon
17becoming law.