Illinois 2023-2024 Regular Session

Illinois House Bill HB2239 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2239 Introduced , by Rep. Edgar Gonzalez, Jr. SYNOPSIS AS INTRODUCED: New Act5 ILCS 100/5-45.35 new Creates the Internet Gaming Act. Authorizes an Internet gaming operator to offer Internet gaming in accordance with the provisions of the Act. Provides that Internet gaming shall only be offered by an Internet gaming license or an Internet management services provider that has contracted with an Internet gaming licensee. Provides that an internet gaming licensee shall offer no more than 3 individually branded Internet gaming skins. Provides that an Internet management services provider may conduct Internet gaming on its own Internet gaming platform pursuant to the agreement between the provider and an Internet gaming licensee and in accordance with the rules of the Board and the provisions of the Act. Includes provisions for: requirements of an Internet gaming platform; Internet waging accounts; license requirements; age verification, location, and responsible gaming; diversity goals in procurement and spending by Internet gaming licensees; acceptance of out-of-state wagers; and limitations on home rule units. Provides that a 15% privilege tax is imposed on Internet gaming to be deposited into the State Gaming Fund. Authorizes the adoption of emergency rules to implement the Act and makes conforming changes in the Illinois Administrative Procedure Act. Effective immediately. LRB103 25081 AMQ 51416 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2239 Introduced , by Rep. Edgar Gonzalez, Jr. SYNOPSIS AS INTRODUCED: New Act5 ILCS 100/5-45.35 new New Act 5 ILCS 100/5-45.35 new Creates the Internet Gaming Act. Authorizes an Internet gaming operator to offer Internet gaming in accordance with the provisions of the Act. Provides that Internet gaming shall only be offered by an Internet gaming license or an Internet management services provider that has contracted with an Internet gaming licensee. Provides that an internet gaming licensee shall offer no more than 3 individually branded Internet gaming skins. Provides that an Internet management services provider may conduct Internet gaming on its own Internet gaming platform pursuant to the agreement between the provider and an Internet gaming licensee and in accordance with the rules of the Board and the provisions of the Act. Includes provisions for: requirements of an Internet gaming platform; Internet waging accounts; license requirements; age verification, location, and responsible gaming; diversity goals in procurement and spending by Internet gaming licensees; acceptance of out-of-state wagers; and limitations on home rule units. Provides that a 15% privilege tax is imposed on Internet gaming to be deposited into the State Gaming Fund. Authorizes the adoption of emergency rules to implement the Act and makes conforming changes in the Illinois Administrative Procedure Act. Effective immediately. LRB103 25081 AMQ 51416 b LRB103 25081 AMQ 51416 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2239 Introduced , by Rep. Edgar Gonzalez, Jr. SYNOPSIS AS INTRODUCED:
3	3	New Act5 ILCS 100/5-45.35 new New Act 5 ILCS 100/5-45.35 new
4	4	New Act
5	5	5 ILCS 100/5-45.35 new
6	6	Creates the Internet Gaming Act. Authorizes an Internet gaming operator to offer Internet gaming in accordance with the provisions of the Act. Provides that Internet gaming shall only be offered by an Internet gaming license or an Internet management services provider that has contracted with an Internet gaming licensee. Provides that an internet gaming licensee shall offer no more than 3 individually branded Internet gaming skins. Provides that an Internet management services provider may conduct Internet gaming on its own Internet gaming platform pursuant to the agreement between the provider and an Internet gaming licensee and in accordance with the rules of the Board and the provisions of the Act. Includes provisions for: requirements of an Internet gaming platform; Internet waging accounts; license requirements; age verification, location, and responsible gaming; diversity goals in procurement and spending by Internet gaming licensees; acceptance of out-of-state wagers; and limitations on home rule units. Provides that a 15% privilege tax is imposed on Internet gaming to be deposited into the State Gaming Fund. Authorizes the adoption of emergency rules to implement the Act and makes conforming changes in the Illinois Administrative Procedure Act. Effective immediately.
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12	12	1 AN ACT concerning gaming.
13	13	2 Be it enacted by the People of the State of Illinois,
14	14	3 represented in the General Assembly:
15	15	4 Section 1. Short title. This Act may be cited as the
16	16	5 Internet Gaming Act.
17	17	6 Section 5. Definitions. Unless otherwise provided in this
18	18	7 Act, the terms used in this Act have the same meaning given to
19	19	8 those terms in the Illinois Gambling Act. Further, as used in
20	20	9 this Act:
21	21	10 "Adjusted gross gaming revenue" means the total of all
22	22	11 sums actually received by an Internet gaming licensee from
23	23	12 Internet gaming operations, excluding voided wagers, free
24	24	13 play, and promotional credits, less the total of all sums
25	25	14 actually paid out as winnings to patrons, which includes the
26	26	15 cash equivalent of any merchandise or thing of value awarded
27	27	16 as a prize, and the total of successfully disputed credit or
28	28	17 debit card charges that were previously included in the
29	29	18 computation of gross gaming revenue. "Adjusted gross gaming
30	30	19 revenue" does not include the dollar amount of non-cashable
31	31	20 vouchers, coupons, or promotions redeemed by participants on
32	32	21 an Internet gaming platform.
33	33	22 "Board" means the Illinois Gaming Board.
34	34	23 "Internet game" means an Internet-based version or
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38	38	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2239 Introduced , by Rep. Edgar Gonzalez, Jr. SYNOPSIS AS INTRODUCED:
39	39	New Act5 ILCS 100/5-45.35 new New Act 5 ILCS 100/5-45.35 new
40	40	New Act
41	41	5 ILCS 100/5-45.35 new
42	42	Creates the Internet Gaming Act. Authorizes an Internet gaming operator to offer Internet gaming in accordance with the provisions of the Act. Provides that Internet gaming shall only be offered by an Internet gaming license or an Internet management services provider that has contracted with an Internet gaming licensee. Provides that an internet gaming licensee shall offer no more than 3 individually branded Internet gaming skins. Provides that an Internet management services provider may conduct Internet gaming on its own Internet gaming platform pursuant to the agreement between the provider and an Internet gaming licensee and in accordance with the rules of the Board and the provisions of the Act. Includes provisions for: requirements of an Internet gaming platform; Internet waging accounts; license requirements; age verification, location, and responsible gaming; diversity goals in procurement and spending by Internet gaming licensees; acceptance of out-of-state wagers; and limitations on home rule units. Provides that a 15% privilege tax is imposed on Internet gaming to be deposited into the State Gaming Fund. Authorizes the adoption of emergency rules to implement the Act and makes conforming changes in the Illinois Administrative Procedure Act. Effective immediately.
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45	45	A BILL FOR
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71	71	1 substantial equivalent of a gambling game, slot machine,
72	72	2 poker, table game, or any other game approved by the Board,
73	73	3 including, but not limited to, simulcasted live-dealer
74	74	4 versions of casino games in which an individual wagers money
75	75	5 or something of monetary value for the opportunity to win
76	76	6 money or something of monetary value, and which is accessed by
77	77	7 an Internet-connected computer or mobile device. "Internet
78	78	8 game" includes gaming tournaments conducted via the Internet
79	79	9 in which players compete against one another or in one or more
80	80	10 of the games authorized in this Act. "Internet game" does not
81	81	11 include sports wagering conducted pursuant to the Sports
82	82	12 Wagering Act or fantasy contests in which one or more players
83	83	13 compete against each other and winning outcomes reflect the
84	84	14 relative knowledge and skill of the players and are determined
85	85	15 predominantly by accumulated statistical results of the
86	86	16 performance of individuals, including athletes in the case of
87	87	17 sporting events.
88	88	18 "Internet gaming" means conducting Internet games.
89	89	19 "Internet gaming licensee" means the owners licensee or
90	90	20 organization licensee that holds an Internet gaming license
91	91	21 under this Act.
92	92	22 "Internet gaming operator" means an Internet gaming
93	93	23 licensee that operates an Internet gaming platform or, if an
94	94	24 Internet management services provider operates the Internet
95	95	25 gaming platform, the Internet management services provider.
96	96	26 "Internet gaming platform" means the combination of
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107	107	1 hardware and software or other technology designed and used to
108	108	2 manage, conduct, and record Internet gaming and the wagers
109	109	3 associated with Internet gaming.
110	110	4 "Internet gaming skin" means a distinctly branded Internet
111	111	5 gaming platform operated by an Internet gaming operator, which
112	112	6 may encompass a website, mobile application, or other portal
113	113	7 to the Internet gaming platform. The brand may be that of the
114	114	8 Internet gaming licensee or its affiliate, the Internet
115	115	9 management service provider, or another brand as agreed upon
116	116	10 by the Internet gaming licensee and its Internet management
117	117	11 service provider.
118	118	12 "Internet management service provider" means a licensed
119	119	13 business entity that operates an Internet gaming platform
120	120	14 pursuant to an agreement with an Internet gaming licensee.
121	121	15 "Internet wagering" means the placing of wagers with an
122	122	16 Internet gaming operator by persons who are either physically
123	123	17 present in the State or in another permissible jurisdiction
124	124	18 with which the Board has entered into a reciprocal agreement
125	125	19 when placing a wager or otherwise permitted to place a wager by
126	126	20 law.
127	127	21 "Internet wagering account" means a financial record
128	128	22 established and accessible through an Internet gaming platform
129	129	23 for an individual patron in which the patron may deposit and
130	130	24 withdraw funds for Internet gaming and other authorized
131	131	25 purchases and to which the Internet gaming operator may credit
132	132	26 winnings or other amounts due to that patron or authorized by
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143	143	1 that patron. Nothing in this Act shall prohibit the use of the
144	144	2 same Internet wagering account for sports wagering conducted
145	145	3 and authorized under the Sports Wagering Act.
146	146	4 "Organization licensee" has the meaning given to that term
147	147	5 in the Illinois Horse Racing Act of 1975.
148	148	6 "Owners licensee" means the holder of an owners license
149	149	7 issued under the Illinois Gambling Act.
150	150	8 "Permissible jurisdiction" means another jurisdiction from
151	151	9 which wagers may be accepted pursuant to Section 60.
152	152	10 "Supplier" means (i) a seller or lessor of gaming
153	153	11 equipment, systems, or other items to conduct Internet gaming,
154	154	12 including a manufacturer, distributor, wholesaler, or
155	155	13 retailer; (ii) a provider of Internet gaming equipment,
156	156	14 maintenance, or repair services; (iii) a provider of security
157	157	15 services at designated gaming areas; or (iv) any other
158	158	16 purveyor of goods, data, or services to an Internet gaming
159	159	17 licensee or Internet management service provider licensee, as
160	160	18 deemed necessary by the Board if the Board determines that the
161	161	19 goods, data, or services impact the integrity or security of
162	162	20 the Internet gaming operation.
163	163	21 Section 10. Board powers and responsibilities. The Board
164	164	22 has the same powers and responsibilities with respect to the
165	165	23 offering of Internet gaming as it has with respect to
166	166	24 non-Internet gaming pursuant to Section 5 of the Illinois
167	167	25 Gambling Act, except where the exercise of such powers or
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178	178	1 responsibilities is incompatible with the offering of gambling
179	179	2 games over the Internet or with this Act.
180	180	3 Section 15. Rulemaking.
181	181	4 (a) The Board shall adopt emergency rules within 90 days
182	182	5 after the effective date of this Act to administer this Act in
183	183	6 accordance with Section 5-45 of the Illinois Administrative
184	184	7 Procedure Act. For the purposes of the Illinois Administrative
185	185	8 Procedure Act, the General Assembly finds that the adoption of
186	186	9 rules to implement this Act is deemed an emergency and
187	187	10 necessary to the public interest, safety, and welfare.
188	188	11 (b) In adopting rules and regulating the conduct of
189	189	12 Internet gaming, the Board shall to the greatest extent
190	190	13 possible utilize existing rules adopted under the Illinois
191	191	14 Gambling Act and amend existing rules or adopt new rules or
192	192	15 standards only as reasonably necessary to implement Internet
193	193	16 gaming under this Act. The Board shall look to the Internet
194	194	17 gaming rules of other regulated jurisdictions in the United
195	195	18 States and shall implement consistent rules to the greatest
196	196	19 extent practicable.
197	197	20 Section 20. Internet gaming authorized.
198	198	21 (a) Notwithstanding any provision of law to the contrary,
199	199	22 Internet gaming is only lawful when conducted by an Internet
200	200	23 gaming operator in accordance with the provisions of this Act
201	201	24 and the rules of the Board.
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212	212	1 (b) Internet gaming shall only be offered by an Internet
213	213	2 gaming licensee or an Internet management services provider
214	214	3 that has contracted with an Internet gaming licensee. An
215	215	4 Internet gaming licensee shall offer no more than 3
216	216	5 individually branded Internet gaming skins. The Internet
217	217	6 gaming licensee may operate the platform and contract with up
218	218	7 to 3 Internet management service providers to conduct Internet
219	219	8 gaming in accordance with the rules of the Board and the
220	220	9 provisions of this Act. An Internet management services
221	221	10 provider may conduct Internet gaming on its own Internet
222	222	11 gaming platform pursuant to the agreement between the provider
223	223	12 and an Internet gaming licensee and in accordance with the
224	224	13 rules of the Board and the provisions of this Act.
225	225	14 (c) The primary servers necessary to the placement or
226	226	15 resolution of wagers on an Internet gaming platform shall be
227	227	16 located within a facility that is secure and inaccessible to
228	228	17 the public. The primary servers may be located anywhere in the
229	229	18 United States that is in compliance with federal law for a
230	230	19 period of one year following the effective date of this Act.
231	231	20 Beginning one year after the effective date of this Act, the
232	232	21 primary servers must be located in the State. All wagers
233	233	22 placed by a person physically located in the State are deemed
234	234	23 to be placed in this State. The intermediate routing of
235	235	24 electronic data in connection with Internet gaming, including
236	236	25 across State lines, shall not determine the location or
237	237	26 locations in which a wager is initiated, received, or
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248	248	1 otherwise made.
249	249	2 Section 25. Requirements of Internet gaming platform.
250	250	3 (a) An Internet gaming operator may accept wagers on an
251	251	4 Internet gaming platform only as follows:
252	252	5 (1) the wager is placed directly with the Internet
253	253	6 gaming operator through an Internet wagering account; and
254	254	7 (2) the Internet gaming operator has verified that the
255	255	8 person placing the wager is the holder of the Internet
256	256	9 wagering account and is physically located within this
257	257	10 State or a permissible jurisdiction using technological
258	258	11 requirements in compliance with this Section.
259	259	12 (b) An Internet gaming platform shall include age and
260	260	13 location verification mechanisms and requirements that are
261	261	14 designed to preclude knowingly accepting wagers from
262	262	15 individuals under 21 years of age, persons not physically
263	263	16 within the State or a permissible jurisdiction, and persons
264	264	17 otherwise excluded from Internet gaming from establishing
265	265	18 Internet wagering accounts or from engaging in Internet gaming
266	266	19 under this Act. The Internet gaming platform's age, location,
267	267	20 and eligibility detection mechanisms shall monitor attempts to
268	268	21 access the system and shall use commercially reasonable
269	269	22 attempts to block unauthorized attempts to access the system.
270	270	23 (c) An Internet gaming operator shall implement
271	271	24 commercially reasonable data security standards to prevent
272	272	25 unauthorized access by any person whose identity has not been
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283	283	1 verified or cannot be verified, in accordance with rules
284	284	2 adopted by the Board. The Internet gaming platform's identity
285	285	3 verification mechanisms shall monitor attempts to access the
286	286	4 system and shall use commercially reasonable attempts to block
287	287	5 unauthorized attempts to access the system by persons who are
288	288	6 not the wagering account holder.
289	289	7 (d) An Internet gaming operator shall implement
290	290	8 commercially reasonable standards to protect the privacy and
291	291	9 security of patrons to a reasonable degree of certainty.
292	292	10 Internet gaming operators shall establish and offer patrons
293	293	11 the option to protect their accounts with multi-factor
294	294	12 authentication or authentication features such as personal
295	295	13 identification numbers or biometric data.
296	296	14 (e) An Internet gaming operator shall establish internal
297	297	15 and accounting controls applicable to Internet gaming and
298	298	16 shall ensure that the security and integrity of all financial
299	299	17 transactions in connection with Internet gaming shall comply
300	300	18 with this Act and any rules adopted by the Board.
301	301	19 (f) Each Internet gaming operator shall collect, report,
302	302	20 and pay all applicable taxes and fees and shall maintain all
303	303	21 books, records, and documents pertaining to the Internet
304	304	22 gaming operators gaming operations in a manner approved by the
305	305	23 Board.
306	306	24 (g) All books, records, and documents concerning Internet
307	307	25 gaming shall be available for inspection upon commercially
308	308	26 reasonable notice by the Board during ordinary business hours
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319	319	1 in accordance with the Board's rules and shall be maintained
320	320	2 by each Internet gaming operator in a manner and during
321	321	3 periods of time as the Board shall require.
322	322	4 (h) Each Internet gaming operator shall maintain a file
323	323	5 containing samples of the types and forms of advertising and
324	324	6 promotional materials that it has used for Internet gaming in
325	325	7 connection with this State for a period of 2 years. Such
326	326	8 advertising samples shall be made available or produced for
327	327	9 inspection upon the Board's request. The Board shall allow for
328	328	10 Internet gaming operators to advertise beginning on the date
329	329	11 of their licensing approval, including a temporary licensing
330	330	12 approval. Nothing in this Section shall require Internet
331	331	13 gaming operators to obtain advertising preapproval from the
332	332	14 Board.
333	333	15 Section 30. Internet wagering accounts.
334	334	16 (a) Eligible persons seeking to establish Internet
335	335	17 wagering accounts may do so in person at a casino or racetrack
336	336	18 or over the Internet without appearing in person. An Internet
337	337	19 gaming operator shall adopt reasonable procedures to ensure
338	338	20 that individuals have no more than one Internet wagering
339	339	21 account with the Internet gaming operator. However, nothing in
340	340	22 this Act prohibits the use of a single account for a sports
341	341	23 wagering account under the Sports Wagering Act and the
342	342	24 Internet wagering account set forth under this Act.
343	343	25 (b) A participant may deposit and withdraw funds from the
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354	354	1 participant's Internet wagering accounts in-person at a casino
355	355	2 or racetrack or over the Internet through electronic means to
356	356	3 the extent allowed by federal law, including debit and credit
357	357	4 cards; automated clearing house transfers; wire transfers;
358	358	5 deposits and withdrawals of cash or gaming chips at cashiering
359	359	6 locations in a river boat, a casino, or any property or
360	360	7 facility owned, maintained, or leased by an organization
361	361	8 licensee, an owners licensee, an Internet gaming operator, an
362	362	9 Internet gaming licensee, or any other facility where a
363	363	10 gambling game, a casino game, slot machines, table games, or
364	364	11 other gambling operation occurs; deposits and withdrawals of
365	365	12 cash at retail locations in the State approved by the Board;
366	366	13 reloadable prepaid cards; gift cards; cash complimentary,
367	367	14 promotional credits, or bonus credits; winnings; digital,
368	368	15 crypto, and virtual currencies; or other means as approved by
369	369	16 the Board.
370	370	17 (c) An Internet gaming operator shall include, as part of
371	371	18 the Internet gaming operator's internal controls, mechanisms
372	372	19 and procedures for reasonably detecting unauthorized access to
373	373	20 Internet wagering accounts, unauthorized attempts to access
374	374	21 Internet wagering accounts, and suspicious Internet wagering
375	375	22 activity constituting cheating, theft, embezzlement,
376	376	23 collusion, money laundering, and other illegal activity.
377	377	24 (d) As permitted by federal law, nothing in this Act
378	378	25 prohibits Internet gaming operators from linking or otherwise
379	379	26 commingling Internet wagering accounts with an eligible
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390	390	1 person's Internet wagering account in another jurisdiction.
391	391	2 However, each Internet gaming operator must retain records of
392	392	3 all deposits, withdraws, wagers, and wager results that take
393	393	4 place within this State and pursuant to this Act and ensure all
394	394	5 taxes and fees due under this Act are properly documented and
395	395	6 paid.
396	396	7 Section 35. License requirements.
397	397	8 (a) No person may offer Internet games in this State
398	398	9 unless all necessary licenses have been obtained in accordance
399	399	10 with this Act and the rules of the Board. The Board may issue
400	400	11 the following licenses to persons, firms, partnerships, or
401	401	12 corporations that apply for licensure upon a determination by
402	402	13 the Board that the applicant is eligible for the license under
403	403	14 this Act and rules adopted by the Board:
404	404	15 (1) Internet gaming license;
405	405	16 (2) Internet management service provider license;
406	406	17 (3) supplier license; and
407	407	18 (4) occupational license.
408	408	19 (b) The Board shall issue an Internet gaming license upon
409	409	20 request to any owners licensee or organization licensee that
410	410	21 meets the conditions of subsection (i). The fee for a license
411	411	22 shall be $250,000. An Internet gaming license shall be valid
412	412	23 for the same period of time as the requester's owners license
413	413	24 or organization license and shall be renewed as a matter of
414	414	25 course upon renewal of the owners license or organization
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425	425	1 license and for the same period of time as the owners license
426	426	2 or organization license. The fee for renewal of an Internet
427	427	3 gaming license is $100,000. If an Internet gaming license is
428	428	4 received after the issuance or renewal of an owners license or
429	429	5 organizational license, the Internet gaming license fee shall
430	430	6 be prorated for the remainder of the existing term.
431	431	7 (c) An entity may apply for an Internet management service
432	432	8 provider license in the form as may be required by the Board
433	433	9 consistent with the requirements of this Act. The Board shall
434	434	10 provide an abbreviated application for entities that hold or
435	435	11 have a pending application for a management services provider
436	436	12 license under the Sports Wagering Act or other types of gaming
437	437	13 under Illinois law. Before issuance of an Internet management
438	438	14 service provider license under this Act, the applicant shall
439	439	15 pay to the Board a licensing fee of $100,000 or, for applicants
440	440	16 holding a management service provider license issued under
441	441	17 other State law, a licensing fee of $50,000. An Internet
442	442	18 management service provider license issued under this Act
443	443	19 shall be valid for 4 years, subject to renewal upon payment of
444	444	20 a fee of $50,000.
445	445	21 (d) An applicant for a supplier license shall apply in the
446	446	22 form as may be required by the Board consistent with the
447	447	23 requirements of this Act. The Board shall provide an
448	448	24 abbreviated application for entities that hold or have a
449	449	25 pending application for a supplier license under the Sports
450	450	26 Wagering Act or other types of gaming under State law. Before
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461	461	1 issuance of a supplier license under this Act, the applicant
462	462	2 shall pay to the Board a licensing fee of $75,000 or, for
463	463	3 applicants holding a supplier license issued under other
464	464	4 Illinois law, a licensing fee of $50,000. A supplier license
465	465	5 issued under this Act shall be valid for 4 years, subject to
466	466	6 renewal upon payment of a fee of $50,000.
467	467	7 (e) An applicant for an occupation license shall apply in
468	468	8 the form as may be required by the Board consistent with the
469	469	9 requirements of this Act for individuals who can directly
470	470	10 change critical components of Internet game system hardware or
471	471	11 software and meet 2 of the following requirements:
472	472	12 (1) have access to wagering account holders'
473	473	13 personally identifying information;
474	474	14 (2) have the ability to make adjustments to Internet
475	475	15 wagering accounts; or
476	476	16 (3) have direct interaction with wagering account
477	477	17 holders.
478	478	18 Before issuance of an occupational license under this Act,
479	479	19 the applicant shall pay to the Board a licensing fee of $150
480	480	20 or, for applicants holding an occupational license issued
481	481	21 under other State law, a licensing fee of $100. An
482	482	22 occupational license issued under this Act shall be valid for
483	483	23 4 years, subject to renewal upon payment of a fee of $100. An
484	484	24 Internet gaming licensee may pay an occupational licensing fee
485	485	25 on behalf of its employees.
486	486	26 (f) The Board shall issue any license under this Act upon
487	487
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497	497	1 payment of the license fee to an applicant that meets the
498	498	2 conditions of subsection (i), if applicable, and a showing
499	499	3 that the applicant holds an equivalent license under the
500	500	4 Illinois Sports Wagering Act or, otherwise, has an equivalent
501	501	5 license to conduct Internet gaming in another U.S.
502	502	6 3jurisdiction with licensing standards similar to those
503	503	7 established under this Act and accompanying rules.
504	504	8 (g) The Board shall issue any license under this Act on a
505	505	9 temporary basis within 30 days after receiving an application
506	506	10 to any applicant that holds an equivalent license or temporary
507	507	11 license under the Sports Wagering Act or, otherwise, has
508	508	12 equivalent licenses in connection with Internet gaming in
509	509	13 another U.S. jurisdiction with licensing standards similar to
510	510	14 those established under this Act and accompanying rules. The
511	511	15 Board shall issue the temporary license under this subsection
512	512	16 within 30 days after receiving a completed application unless
513	513	17 it is aware of credible information that may prevent the
514	514	18 issuance of a license or require certain conditions on a
515	515	19 license to ensure compliance with State gaming law, subject to
516	516	20 due process. The temporary license shall be valid for a period
517	517	21 of one year. The Board may revoke a temporary license at any
518	518	22 time if it becomes aware of credible information that may
519	519	23 prevent the issuance of a license or require certain
520	520	24 conditions on a license to ensure compliance with State gaming
521	521	25 law. A temporary license shall otherwise be deemed to be the
522	522	26 equivalent of a full license for all purposes. A temporary
523	523
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533	533	1 license shall be renewed if a final determination has not been
534	534	2 made by the Board on permanent licensure within one year. The
535	535	3 Board shall adopt a process for ensuring an equal opportunity
536	536	4 for all licensees to initially launch on a date set forth by
537	537	5 the Board.
538	538	6 (h) The Board may require background investigations for
539	539	7 any officer, director, or shareholder with 10% or more equity
540	540	8 interests of an applicant for an Internet management service
541	541	9 provider license. The Board may recover the actual and
542	542	10 reasonable costs of an investigation conducted under this
543	543	11 subsection from any license applicant. The Board shall waive a
544	544	12 background investigation upon a showing that a background
545	545	13 investigation has previously been conducted on the applicant
546	546	14 under the Sports Wagering Act. The Board may accept a
547	547	15 background investigation conducted by another state with
548	548	16 licensing standards similar to those established under this
549	549	17 Act and accompanying rules.
550	550	18 (i) The Board may not issue an Internet gaming license to
551	551	19 an owners licensee or organization licensee that has reduced
552	552	20 the size of its workforce by 25% or more since February 28,
553	553	21 2020. The Board may not renew the Internet gaming license of
554	554	22 any owners licensee or organization licensee that has reduced
555	555	23 the size of its workforce by 25% since the date its last
556	556	24 Internet gaming license was issued or renewed.
557	557	25 Section 40. Age verification; location; responsible
558	558
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568	568	1 gaming.
569	569	2 (a) An Internet gaming platform's internal controls shall
570	570	3 include one or more mechanism to reasonably verify that a
571	571	4 participant is 21 years of age or older, that wagering on
572	572	5 Internet games is limited to transactions that are initiated
573	573	6 and received within the State or a permissible jurisdiction,
574	574	7 and that the participant is physically located within the
575	575	8 State or a permissible jurisdiction.
576	576	9 (b) The Board shall develop responsible Internet gaming
577	577	10 measures, including a statewide responsible gaming database
578	578	11 identifying individuals who shall be prohibited from
579	579	12 establishing an Internet wagering account or participating in
580	580	13 Internet gaming offered by an Internet gaming operator. The
581	581	14 Board shall adopt rules for the establishment and maintenance
582	582	15 of the responsible gaming database, which shall include
583	583	16 allowances for individuals to self-exclude from Internet
584	584	17 wagering, including making self-exclusion elections through an
585	585	18 Internet gaming operator on an Internet gaming platform or in
586	586	19 person at casinos or racetracks. The Board shall maintain the
587	587	20 responsible gaming database in a confidential manner and
588	588	21 Internet gaming operators shall not knowingly accept wagers
589	589	22 from anyone listed on the responsible gaming database.
590	590	23 Notwithstanding any law to the contrary, a self-exclusion
591	591	24 election and the responsible gaming database are not public
592	592	25 records subject to copying and disclosure under the Freedom of
593	593	26 Information Act.
594	594
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604	604	1 (c) Each Internet gaming platform shall display the words
605	605	2 "If you or someone you know has a gambling problem, help is
606	606	3 available. Call (toll-free telephone number)" or some
607	607	4 comparable language approved by the Board, which language
608	608	5 shall include the words "gambling problem" and "call
609	609	6 (toll-free telephone number)", to be displayed on the home
610	610	7 page accessible to any person initially logging into the
611	611	8 Internet gaming platform. Similar information shall be
612	612	9 accessible to account holders when logged onto the Internet
613	613	10 gaming platform.
614	614	11 (d) Each Internet gaming platform shall include mechanisms
615	615	12 for temporary and permanent self-exclusion through the Board's
616	616	13 statewide responsible gaming database from Internet gaming.
617	617	14 Each Internet gaming platform shall include mechanisms for
618	618	15 termination of a patron's Internet wagering account.
619	619	16 Additionally, each Internet gaming platform shall include
620	620	17 player self-imposed wagering and deposit limits, including a
621	621	18 deposit limit offered on a daily, weekly, and monthly basis
622	622	19 that allows patrons to specify the maximum amount of money
623	623	20 they can deposit into the Internet wagering account during the
624	624	21 particular time period; and a spend limit offered on a daily,
625	625	22 weekly, and monthly basis that allows patrons to specify the
626	626	23 maximum amount of the deposits that they may put at risk during
627	627	24 the particular time period. Self-imposed wagering or deposit
628	628	25 limits shall take effect immediately but increases to a
629	629	26 previously imposed limit shall not take effect until the
630	630
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640	640	1 expiration of the limit per the terms of the patron's original
641	641	2 election. A licensee under this Act shall not knowingly mail
642	642	3 or otherwise forward any gaming-related promotional materials
643	643	4 or electronic mail to a participant during any period in which
644	644	5 the patron has elected to temporarily or permanently suspend
645	645	6 oneself from all Internet gaming or permanently terminate
646	646	7 Internet gaming through the account.
647	647	8 (e) A patron shall continue to have the ability to
648	648	9 withdraw funds, notwithstanding any temporary or permanent
649	649	10 suspension or limits placed upon the account pursuant to this
650	650	11 Section.
651	651	12 Section 45. Tax.
652	652	13 (a) A privilege tax is imposed on an Internet gaming
653	653	14 operator based on the adjusted gross gaming revenue wagered on
654	654	15 Internet gaming platforms authorized under this Act at a rate
655	655	16 of 15% of adjusted gross gaming revenue. This privilege tax is
656	656	17 the exclusive tax in relation to Internet gaming. No local
657	657	18 government of this State, including home rule municipalities,
658	658	19 may impose or levy taxes on adjusted gross gaming revenue.
659	659	20 (b) All moneys collected under this Act by the Board shall
660	660	21 be deposited into the State Gaming Fund. The taxes imposed by
661	661	22 this Section shall be paid by the Internet gaming operator no
662	662	23 later than the last day of the month following the calendar
663	663	24 month in which the adjusted gross gaming receipts were
664	664	25 received and the tax obligation was accrued.
665	665
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675	675	1 (c) If the taxpayer's adjusted gross gaming revenue for a
676	676	2 month is a negative number, the taxpayer may carry over the
677	677	3 negative amount to a return filed a subsequent month and
678	678	4 deduct such amount from its tax liability for such month,
679	679	5 provided that such amount shall not be carried over and
680	680	6 deducted against tax liability in any month that is more than
681	681	7 12 months later than the month in which such amount was
682	682	8 accrued.
683	683	9 (d) The tax revenue deposited into the State Gaming Fund
684	684	10 under this Act shall be distributed according to Section 13 of
685	685	11 the Illinois Gambling Act, wherein the Internet gaming
686	686	12 operator shall be treated as the owners licensee or
687	687	13 organization licensee that holds the Internet gaming license
688	688	14 under this Act.
689	689	15 Section 50. Diversity programs.
690	690	16 (a) As used in this Section only, "licensee" means an
691	691	17 Internet gaming licensee under this Act.
692	692	18 (b) The public policy of this State is to collaboratively
693	693	19 work with companies that serve State residents to improve
694	694	20 their supplier diversity in a non-antagonistic manner.
695	695	21 (c) The Board shall require all licensees under this Act
696	696	22 to submit an annual report by April 15, 2024 and every April 15
697	697	23 thereafter, in a searchable Adobe PDF format, on all
698	698	24 procurement goals and actual spending for businesses owned by
699	699	25 women, minorities, veterans, and persons with disabilities and
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710	710	1 small business enterprises in the previous calendar year.
711	711	2 These goals shall be expressed as a percentage of the total
712	712	3 work performed by the entity submitting the report, and the
713	713	4 actual spending for all businesses owned by women, minorities,
714	714	5 veterans, and persons with disabilities and small business
715	715	6 enterprises shall also be expressed as a percentage of the
716	716	7 total work performed by the entity submitting the report.
717	717	8 (d) Each licensee in its annual report shall include the
718	718	9 following information:
719	719	10 (1) an explanation of the plan for the next year to
720	720	11 increase participation;
721	721	12 (2) an explanation of the plan to increase the goals;
722	722	13 (3) the areas of procurement each licensee shall be
723	723	14 actively seeking more participation in the next year;
724	724	15 (4) an outline of the plan to alert and encourage
725	725	16 potential vendors in that area to seek business from the
726	726	17 licensee;
727	727	18 (5) an explanation of the challenges faced in finding
728	728	19 quality vendors and offer any suggestions for what the
729	729	20 Board could do to be helpful to identify those vendors;
730	730	21 (6) a list of the certifications the licensee
731	731	22 recognizes;
732	732	23 (7) the point of contact for any potential vendor who
733	733	24 wishes to do business with the licensee and explain the
734	734	25 process for a vendor to enroll with the licensee as a
735	735	26 businesses owned by women, minorities, veterans, or
736	736
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746	746	1 persons with disabilities; and
747	747	2 (8) any particular success stories to encourage other
748	748	3 licensees to emulate best practices.
749	749	4 (e) Each annual report shall include as much
750	750	5 State-specific data as possible. If the submitting entity does
751	751	6 not submit State-specific data, then the licensee shall
752	752	7 include any national data it does have and explain why it could
753	753	8 not submit State-specific data and how it intends to do so in
754	754	9 future reports, if possible.
755	755	10 (f) Each annual report shall include the rules,
756	756	11 regulations, and definitions used for the procurement goals in
757	757	12 the licensee's annual report.
758	758	13 (g) The Board and all licensees shall hold an annual
759	759	14 workshop and job fair open to the public in 2024 and every year
760	760	15 thereafter on the state of supplier diversity to
761	761	16 collaboratively seek solutions to structural impediments to
762	762	17 achieving stated goals, including testimony from each licensee
763	763	18 as well as subject matter experts and advocates. The Board
764	764	19 shall publish a database on its website of the point of contact
765	765	20 for licensees it regulates under this Act for supplier
766	766	21 diversity, along with a list of certifications each licensee
767	767	22 recognizes from the information submitted in each annual
768	768	23 report. The Board shall publish each annual report on its
769	769	24 website and shall maintain each annual report for at least 5
770	770	25 years.
771	771	26 (h) A licensee under this Act that is also subject to the
772	772
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782	782	1 diversity program requirements of Section 7.6 of the Illinois
783	783	2 Gambling Act shall include its Internet gaming activities
784	784	3 within the supplier diversity goals and accompanying reports.
785	785	4 Compliance with Section 7.6 of the Illinois Gambling Act shall
786	786	5 be in lieu of compliance with the reporting requirements under
787	787	6 this Act.
788	788	7 Section 55. Applicability of the Illinois Gambling Act and
789	789	8 the Uniform Penalty and Interest Act. The provisions of the
790	790	9 Illinois Gambling Act, and all rules adopted under that Act,
791	791	10 shall apply to this Act, except where there is a conflict
792	792	11 between those Acts, including the incompatibility of any
793	793	12 provision to the conduct of gaming remotely, without a
794	794	13 brick-and-mortar facility, or over the Internet. All
795	795	14 provisions of the Uniform Penalty and Interest Act shall
796	796	15 apply, as far as practicable, to the subject matter of this Act
797	797	16 to the same extent as if such provisions were included in this
798	798	17 Act.
799	799	18 Section 60. Acceptance of out-of-state wagers.
800	800	19 Notwithstanding any other provision of law to the contrary,
801	801	20 wagers may be accepted under this Act from persons who are not
802	802	21 physically present in this State if the Board has determined
803	803	22 that out-of-state wagering is not inconsistent with federal
804	804	23 law or the law of the jurisdiction in which the person is
805	805	24 located or if out-of-state wagering is conducted pursuant to a
806	806
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816	816	1 reciprocal agreement to which this State is a party that is not
817	817	2 inconsistent with federal law. The Board may enter into
818	818	3 agreements with other jurisdictions to facilitate, administer,
819	819	4 and regulate multijurisdictional approved Internet games,
820	820	5 including, but not limited to, poker.
821	821	6 Section 65. Home rule. The licensure and conduct of
822	822	7 Internet gaming conducted by a person or entity pursuant to
823	823	8 this Act are exclusive powers and functions of the State. A
824	824	9 home rule unit may not regulate or license Internet gaming.
825	825	10 This Section is a denial and limitation of home rule powers and
826	826	11 functions under subsection (h) of Section 6 of Article VII of
827	827	12 the Illinois Constitution.
828	828	13 Section 95. The Illinois Administrative Procedure Act is
829	829	14 amended by adding Section 5-45.35 as follows:
830	830	15 (5 ILCS 100/5-45.35 new)
831	831	16 Sec. 5-45.35. Emergency rulemaking; Internet Gaming Act.
832	832	17 To provide for the expeditious and timely implementation of
833	833	18 the Internet Gaming Act, emergency rules implementing the
834	834	19 Internet Gaming Act shall be adopted in accordance with
835	835	20 Section 5-45 by the Illinois Gaming Board. The adoption of
836	836	21 emergency rules authorized by Section 5-45 and this Section is
837	837	22 deemed to be necessary for the public interest, safety, and
838	838	23 welfare.
839	839
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849	849	1 This Section is repealed on January 1, 2027.
850	850	2 Section 99. Effective date. This Act takes effect upon
851	851	3 becoming law.
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