IL
Illinois House Bill HB2320

Illinois 2023-2024 Regular Session

Illinois House Bill HB2320 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2320 Introduced , by Rep. Jonathan Carroll SYNOPSIS AS INTRODUCED: New Act5 ILCS 100/5-45.35 new Creates the Internet Gaming Act. Authorizes a casino or racetrack to offer Internet gaming or contract with a platform to offer Internet gaming, as regulated by the Illinois Gaming Board. Provides the requirements for Internet gaming platforms, Internet wagering accounts, and licenses issued under the Act. Includes provisions for age verification, location of wagering, responsible gaming, diversity goals in procurement and spending by Internet gaming licensees, the applicability of the Illinois Gambling Act and the Uniform Penalty and Interest Act, acceptance of out-of-state wagers, and limitations on home rule units. Provides that a 12% privilege tax is imposed on Internet gaming to be deposited into the State Gaming Fund. Provides that certain tax revenue from Internet gaming shall be paid to the Department of Human Services for the administration of programs to treat problem gambling, the Pension Stabilization Fund, and the Education Assistance Fund. Authorizes the adoption of emergency rules to implement the Act and makes conforming changes in the Illinois Administrative Procedure Act. Effective immediately. LRB103 30104 AMQ 56528 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2320 Introduced , by Rep. Jonathan Carroll 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 a casino or racetrack to offer Internet gaming or contract with a platform to offer Internet gaming, as regulated by the Illinois Gaming Board. Provides the requirements for Internet gaming platforms, Internet wagering accounts, and licenses issued under the Act. Includes provisions for age verification, location of wagering, responsible gaming, diversity goals in procurement and spending by Internet gaming licensees, the applicability of the Illinois Gambling Act and the Uniform Penalty and Interest Act, acceptance of out-of-state wagers, and limitations on home rule units. Provides that a 12% privilege tax is imposed on Internet gaming to be deposited into the State Gaming Fund. Provides that certain tax revenue from Internet gaming shall be paid to the Department of Human Services for the administration of programs to treat problem gambling, the Pension Stabilization Fund, and the Education Assistance Fund. Authorizes the adoption of emergency rules to implement the Act and makes conforming changes in the Illinois Administrative Procedure Act. Effective immediately. LRB103 30104 AMQ 56528 b LRB103 30104 AMQ 56528 b A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2320 Introduced , by Rep. Jonathan Carroll SYNOPSIS AS INTRODUCED:
33 New Act5 ILCS 100/5-45.35 new New Act 5 ILCS 100/5-45.35 new
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66 Creates the Internet Gaming Act. Authorizes a casino or racetrack to offer Internet gaming or contract with a platform to offer Internet gaming, as regulated by the Illinois Gaming Board. Provides the requirements for Internet gaming platforms, Internet wagering accounts, and licenses issued under the Act. Includes provisions for age verification, location of wagering, responsible gaming, diversity goals in procurement and spending by Internet gaming licensees, the applicability of the Illinois Gambling Act and the Uniform Penalty and Interest Act, acceptance of out-of-state wagers, and limitations on home rule units. Provides that a 12% privilege tax is imposed on Internet gaming to be deposited into the State Gaming Fund. Provides that certain tax revenue from Internet gaming shall be paid to the Department of Human Services for the administration of programs to treat problem gambling, the Pension Stabilization Fund, and the Education Assistance 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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1212 1 AN ACT concerning gaming.
1313 2 Be it enacted by the People of the State of Illinois,
1414 3 represented in the General Assembly:
1515 4 Section 1. Short title. This Act may be cited as the
1616 5 Internet Gaming Act.
1717 6 Section 5. Definitions. Unless otherwise provided in this
1818 7 Act, the terms used in this Act have the same meaning as the
1919 8 terms defined in Section 4 of the Illinois Gambling Act.
2020 9 Further, as used in this Act:
2121 10 "Adjusted gross gaming revenue" means the total of all
2222 11 sums actually received by an Internet gaming licensee from
2323 12 Internet gaming operations, excluding free play and
2424 13 promotional credits, less the total of all sums actually paid
2525 14 out as winnings to patrons, which includes the cash equivalent
2626 15 of any merchandise or thing of value awarded as a prize.
2727 16 Adjusted gross gaming revenue does not include the dollar
2828 17 amount of noncashable vouchers, coupons, or promotions
2929 18 redeemed by participants on an Internet gaming platform.
3030 19 "Board" means the Illinois Gaming Board.
3131 20 "Internet game" means an Internet-based version or
3232 21 substantial equivalent of a gambling game, slot machine,
3333 22 poker, or table game, including, but not limited to,
3434 23 simulcasted live-dealer versions of casino games in which an
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3838 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2320 Introduced , by Rep. Jonathan Carroll SYNOPSIS AS INTRODUCED:
3939 New Act5 ILCS 100/5-45.35 new New Act 5 ILCS 100/5-45.35 new
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4141 5 ILCS 100/5-45.35 new
4242 Creates the Internet Gaming Act. Authorizes a casino or racetrack to offer Internet gaming or contract with a platform to offer Internet gaming, as regulated by the Illinois Gaming Board. Provides the requirements for Internet gaming platforms, Internet wagering accounts, and licenses issued under the Act. Includes provisions for age verification, location of wagering, responsible gaming, diversity goals in procurement and spending by Internet gaming licensees, the applicability of the Illinois Gambling Act and the Uniform Penalty and Interest Act, acceptance of out-of-state wagers, and limitations on home rule units. Provides that a 12% privilege tax is imposed on Internet gaming to be deposited into the State Gaming Fund. Provides that certain tax revenue from Internet gaming shall be paid to the Department of Human Services for the administration of programs to treat problem gambling, the Pension Stabilization Fund, and the Education Assistance 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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7171 1 individual wagers money or something of monetary value for the
7272 2 opportunity to win money or something of monetary value, and
7373 3 which is accessed by an Internet-connected computer or mobile
7474 4 device. "Internet game" includes gaming tournaments conducted
7575 5 via the Internet in which players compete against one another
7676 6 or in one or more of the games authorized in this Act.
7777 7 "Internet game" does not include sports wagering conducted
7878 8 pursuant to the Sports Wagering Act or fantasy contests in
7979 9 which one or more players compete against each other and
8080 10 winning outcomes reflect the relative knowledge and skill of
8181 11 the players and are determined predominantly by accumulated
8282 12 statistical results of the performance of individuals,
8383 13 including athletes in the case of sporting events.
8484 14 "Internet gaming" means conducting Internet games.
8585 15 "Internet gaming licensee" means the owners licensee or
8686 16 organization licensee that holds an Internet gaming license
8787 17 under this Act.
8888 18 "Internet gaming operator" means an Internet gaming
8989 19 licensee that operates an Internet gaming platform or, if an
9090 20 Internet management services provider operates the Internet
9191 21 gaming platform, the Internet management services provider.
9292 22 "Internet gaming platform" means the combination of
9393 23 hardware and software or other technology designed and used to
9494 24 manage, conduct, and record Internet gaming and the wagers
9595 25 associated with Internet gaming.
9696 26 "Internet gaming skin" means a distinctly branded Internet
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107107 1 gaming platform operated by an Internet gaming operator that
108108 2 may encompass a website, mobile application, or other portal
109109 3 to the Internet gaming platform. The brand may be that of the
110110 4 Internet gaming licensee or its affiliate, the Internet
111111 5 management service provider, or another brand as agreed upon
112112 6 by the Internet gaming licensee and its Internet management
113113 7 service provider.
114114 8 "Internet management service provider" means a licensed
115115 9 business entity that operates an Internet gaming platform
116116 10 pursuant to an agreement with an Internet gaming licensee.
117117 11 "Internet wagering" means the placing of wagers with an
118118 12 Internet gaming operator by persons who are either physically
119119 13 present in Illinois or in another permissible jurisdiction
120120 14 whereby the Board has entered a compact when placing a wager or
121121 15 otherwise permitted to place a wager by law.
122122 16 "Internet wagering account" means a financial record
123123 17 established and accessible through an Internet gaming platform
124124 18 for an individual participant in which the participant may
125125 19 deposit and withdraw funds for Internet gaming and other
126126 20 authorized purchases and to which the Internet gaming operator
127127 21 may credit winnings or other amounts due to that participant
128128 22 or authorized by that participant.
129129 23 "Organization licensee" has the meaning given to that term
130130 24 in the Illinois Horse Racing Act of 1975.
131131 25 "Owners licensee" means the holder of an owners license
132132 26 issued under the Illinois Gambling Act.
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143143 1 "Permissible jurisdiction" means another jurisdiction from
144144 2 which wagers may be accepted pursuant to Section 60.
145145 3 Section 10. Board powers and responsibilities. The Board
146146 4 shall have the same powers and responsibilities with respect
147147 5 to the offering of Internet gaming as it has with respect to
148148 6 non-Internet gaming pursuant to Section 5 of the Illinois
149149 7 Gambling Act, except where the exercise of such powers or
150150 8 responsibilities is incompatible with the offering of gambling
151151 9 games over the Internet or with this Act.
152152 10 Section 15. Rulemaking.
153153 11 (a) The Board shall adopt emergency rules within 90 days
154154 12 after the effective date of this Act to administer this Act in
155155 13 accordance with Section 5-45 of the Illinois Administrative
156156 14 Procedure Act. For the purposes of the Illinois Administrative
157157 15 Procedure Act, the General Assembly finds that the adoption of
158158 16 rules to implement this Act is deemed an emergency and
159159 17 necessary to the public interest, safety, and welfare.
160160 18 (b) In adopting rules and regulating the conduct of
161161 19 Internet gaming, the Board shall, to the greatest extent
162162 20 possible, utilize existing rules adopted under the Illinois
163163 21 Gambling Act and amend existing rules or adopt new rules or
164164 22 standards only as reasonably necessary to implement Internet
165165 23 gaming under this Act. The Board shall look to the Internet
166166 24 gaming rules of other regulated jurisdictions in the United
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177177 1 States and shall implement consistent rules to the greatest
178178 2 extent practicable.
179179 3 Section 20. Internet gaming authorized.
180180 4 (a) Notwithstanding any provision of law to the contrary,
181181 5 Internet gaming is only lawful when conducted by an Internet
182182 6 gaming operator in accordance with the provisions of this Act
183183 7 and the rules of the Board.
184184 8 (b) Internet gaming may only be offered by an Internet
185185 9 gaming licensee or an Internet management services provider
186186 10 that has contracted with an Internet gaming licensee. An
187187 11 Internet gaming licensee may offer no more than 3 individually
188188 12 branded Internet gaming skins. The Internet gaming licensee
189189 13 may operate the platforms and contract with up to 3 Internet
190190 14 management service providers to conduct Internet gaming in
191191 15 accordance with the rules of the Board and the provisions of
192192 16 this Act.
193193 17 (c) The primary servers necessary to the placement or
194194 18 resolution of wagers on an Internet gaming platform shall be
195195 19 located within a facility that is secure and inaccessible to
196196 20 the public. The primary servers may be located anywhere in the
197197 21 United States that is in compliance with federal law. All
198198 22 wagers that originate in this State are deemed to be placed in
199199 23 this State. The intermediate routing of electronic data in
200200 24 connection with Internet gaming, including across State lines,
201201 25 shall not determine the location or locations in which a wager
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212212 1 is initiated, received, or otherwise made.
213213 2 Section 25. Requirements of Internet gaming platform.
214214 3 (a) An Internet gaming operator may accept wagers on an
215215 4 Internet gaming platform only as follows: (1) the wager is
216216 5 placed directly with the Internet gaming operator through an
217217 6 Internet wagering account; and (2) the Internet gaming
218218 7 operator has verified that the person placing the wager is the
219219 8 holder of the Internet wagering account and is physically
220220 9 located within this State or a permissible jurisdiction using
221221 10 technological requirements in compliance with this Section.
222222 11 (b) An Internet gaming platform shall include age and
223223 12 location verification mechanisms and requirements that are
224224 13 designed to preclude knowingly accepting wagers from
225225 14 individuals under 21 years of age, persons not physically
226226 15 within the State or a permissible jurisdiction, and persons
227227 16 otherwise excluded from Internet gaming from establishing
228228 17 Internet wagering accounts or from engaging in Internet gaming
229229 18 under this Act. The Internet gaming platform's age, location,
230230 19 and eligibility detection mechanisms shall monitor attempts to
231231 20 access the system and shall use commercially reasonable
232232 21 attempts to block unauthorized attempts to access the system.
233233 22 (c) An Internet gaming operator shall implement
234234 23 appropriate data security standards to prevent unauthorized
235235 24 access by any person whose identity has not been verified or
236236 25 cannot be verified, in accordance with rules adopted by the
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247247 1 Board. The Internet gaming platform's identity verification
248248 2 mechanisms shall monitor attempts to access the system and
249249 3 shall use commercially reasonable attempts to block
250250 4 unauthorized attempts to access the system by persons who are
251251 5 not the wagering account holder.
252252 6 (d) An Internet gaming operator shall implement
253253 7 appropriate standards to protect the privacy and security of
254254 8 participants to a reasonable degree of certainty. Internet
255255 9 gaming operators shall establish and offer participants the
256256 10 option to protect their accounts with multi-factor
257257 11 authentication or authentication features such as personal
258258 12 identification numbers or biometric data.
259259 13 (e) The Internet gaming operator shall establish internal
260260 14 and accounting controls applicable to Internet gaming and
261261 15 shall ensure that the security and integrity of all financial
262262 16 transactions in connection with Internet gaming shall comply
263263 17 with this Act and any rules adopted by the Board.
264264 18 (f) An Internet gaming operator shall collect, report, and
265265 19 pay all applicable taxes and fees and shall maintain all
266266 20 books, records, and documents pertaining to the provider's
267267 21 gaming operations in a manner and location within this State
268268 22 as approved by the Board.
269269 23 (g) All books, records, and documents concerning Internet
270270 24 gaming shall be available for inspection upon commercially
271271 25 reasonable notice by the Board during ordinary business hours
272272 26 in accordance with the Board's rules and shall be maintained
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283283 1 in a manner and during periods of time as the Board shall
284284 2 require.
285285 3 (h) Each Internet gaming operator shall maintain a file
286286 4 containing samples of the types and forms of advertising and
287287 5 promotional materials that it has used for Internet gaming in
288288 6 connection with this State. Such advertising samples shall be
289289 7 made available or produced for inspection upon the Board's
290290 8 request.
291291 9 Section 30. Internet wagering accounts.
292292 10 (a) Eligible persons must establish Internet wagering
293293 11 accounts in person at a casino or racetrack during the first 6
294294 12 months of operation. After the first 6 months of operation, an
295295 13 account may be established over the Internet without appearing
296296 14 in person. An Internet gaming operator shall adopt reasonable
297297 15 procedures to ensure that individuals have no more than one
298298 16 Internet wagering account with the Internet gaming operator.
299299 17 However, nothing in this Act prohibits the combination of a
300300 18 sports wagering account under the Sports Wagering Act and the
301301 19 Internet wagering account set forth under this Act.
302302 20 (b) Participants may deposit and withdraw funds from their
303303 21 Internet wagering accounts in person at a casino or racetrack
304304 22 or over the Internet through electronic means to the extent
305305 23 allowed by federal law, including debit and credit cards;
306306 24 automated clearing house transfers; wire transfers; deposits
307307 25 and withdrawals of cash or gaming chips at cashiering
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318318 1 locations approved by the Board; reliable prepaid cards; cash
319319 2 complimentary, promotional credits, or bonus credits;
320320 3 winnings; or other means as approved by the Board.
321321 4 (c) Internet gaming operators shall include, as part of
322322 5 their internal controls, mechanisms and procedures for
323323 6 reasonably detecting unauthorized access to Internet wagering
324324 7 accounts, unauthorized attempts to access Internet wagering
325325 8 accounts, and suspicious Internet wagering activity
326326 9 constituting cheating, theft, embezzlement, collusion, money
327327 10 laundering, and other illegal activity.
328328 11 (d) As permitted by federal law, nothing in this Act
329329 12 prohibits Internet gaming operators from linking or otherwise
330330 13 commingling Internet wagering accounts with an eligible
331331 14 person's Internet wagering account in another jurisdiction.
332332 15 However, an Internet gaming operator must retain records of
333333 16 all deposits, withdraws, wagers, and wager results that take
334334 17 place within this State and pursuant to this Act and ensure all
335335 18 taxes and fees due under this Act are properly documented and
336336 19 paid.
337337 20 Section 35. License requirements.
338338 21 (a) No person may offer Internet games in this State
339339 22 unless all necessary licenses have been obtained in accordance
340340 23 with this Act and the rules of the Board. The Board may issue
341341 24 the following licenses to persons, firms, partnerships, or
342342 25 corporations that apply for licensure upon a determination by
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353353 1 the Board that the applicant is eligible for the license under
354354 2 this Act and rules adopted by the Board:
355355 3 (1) Internet gaming license;
356356 4 (2) Internet management service provider license;
357357 5 (3) supplier license; and
358358 6 (4) occupational license.
359359 7 (b) The Board shall issue an Internet gaming license upon
360360 8 request to any owners licensee or organization licensee. The
361361 9 fee for a license shall be $500,000. An Internet gaming
362362 10 license shall be valid for the same period of time as the
363363 11 requester's owners license or organization license and shall
364364 12 be renewed as a matter of course upon renewal of the owners
365365 13 license or organization license and for the same period of
366366 14 time as the owners license or organization license. The fee
367367 15 for renewal of an Internet gaming license is $250,000.
368368 16 (c) An entity may apply for an Internet management service
369369 17 provider license in the form as may be required by the Board
370370 18 consistent with the requirements of this Act. The Board shall
371371 19 provide an abbreviated application for entities that hold or
372372 20 have a pending application for a management services provider
373373 21 license under the Sports Wagering Act or other types of gaming
374374 22 under Illinois law. Before issuance of an Internet management
375375 23 service provider license under this Act, the applicant shall
376376 24 pay to the Board a licensing fee of $100,000 or, for applicants
377377 25 holding a management service provider license issued under
378378 26 other Illinois law, a licensing fee of $50,000. An Internet
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389389 1 management service provider license issued under this Act
390390 2 shall be valid for 4 years, subject to renewal upon payment of
391391 3 a fee of $50,000.
392392 4 (d) An applicant for a supplier license shall apply in the
393393 5 form as may be required by the Board consistent with the
394394 6 requirements of this Act. The Board shall provide an
395395 7 abbreviated application for entities which hold or have a
396396 8 pending application for a supplier license under the Sports
397397 9 Wagering Act or other types of gaming under Illinois law.
398398 10 Before issuance of a supplier license under this Act, the
399399 11 applicant shall pay to the Board a licensing fee of $75,000 or,
400400 12 for applicants holding a supplier license issued under other
401401 13 Illinois law, a licensing fee of $50,000. A supplier license
402402 14 issued under this Act shall be valid for 4 years, subject to
403403 15 renewal upon payment of a fee of $50,000.
404404 16 (e) An applicant for an occupation license shall apply in
405405 17 the form as may be required by the Board consistent with the
406406 18 requirements of this Act for individuals who can directly
407407 19 change critical components of Internet game system hardware or
408408 20 software and meet 2 of the following requirements: (1) have
409409 21 access to wagering account holders' personally identifying
410410 22 information; (2) have the ability to make adjustments to
411411 23 Internet wagering accounts; or (3) have direct interaction
412412 24 with wagering account holders. Before issuance of an
413413 25 occupational license under this Act, the applicant shall pay
414414 26 to the Board a licensing fee of $1,000 or, for applicants
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425425 1 holding an occupational license issued under other Illinois
426426 2 law, a licensing fee of $500. An occupational license issued
427427 3 under this Act shall be valid for 4 years, subject to renewal
428428 4 upon payment of a fee of $500.
429429 5 (f) The Board shall issue any license under this Act upon
430430 6 payment of the license fee and a showing that the applicant
431431 7 holds an equivalent license under the Sports Wagering Act or,
432432 8 otherwise, has an equivalent license to conduct Internet
433433 9 gaming in another U.S. jurisdiction with licensing standards
434434 10 similar to those established under this Act and accompanying
435435 11 rules.
436436 12 (g) The Board shall issue any license under this Act on a
437437 13 temporary basis within 30 days after receiving an application
438438 14 to any applicant that holds an equivalent license or temporary
439439 15 license under the Sports Wagering Act or, otherwise, has
440440 16 equivalent licenses in connection with Internet gaming in
441441 17 another U.S. jurisdictions. The Board shall issue the
442442 18 temporary license under this subsection within 30 days after
443443 19 receiving a completed application unless it is aware of
444444 20 credible information that may prevent the issuance of a
445445 21 license or require certain conditions on a license to ensure
446446 22 compliance with Illinois gaming law. The temporary license
447447 23 shall be valid for a period of one year. The Board may revoke a
448448 24 temporary license at any time if it becomes aware of credible
449449 25 information that may prevent the issuance of a license or
450450 26 require certain conditions on a license to ensure compliance
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461461 1 with Illinois gaming law. A temporary license shall otherwise
462462 2 be deemed to be the equivalent of a full license for all
463463 3 purposes.
464464 4 (h) The Board may require background investigations for
465465 5 any officer, director, or shareholder with 10% or more equity
466466 6 interests of an applicant for an Internet management service
467467 7 provider license. The Board may recover the actual costs of an
468468 8 investigation conducted under this subsection from any license
469469 9 applicant. The Board may accept a background investigation
470470 10 conducted by another state with licensing standards similar to
471471 11 those established under this Act and accompanying rules.
472472 12 Section 40. Age verification; location; responsible
473473 13 gaming.
474474 14 (a) An Internet gaming platform's internal controls shall
475475 15 include one or more mechanism to reasonably verify that a
476476 16 participant is 21 years of age or older, that wagering on
477477 17 Internet games is limited to transactions that are initiated
478478 18 and received within the State of Illinois or a permissible
479479 19 jurisdiction, and that the participant is physically located
480480 20 within the State of Illinois or a permissible jurisdiction.
481481 21 (b) The Board shall develop responsible Internet gaming
482482 22 measures, including a statewide responsible gaming database
483483 23 identifying individuals who shall be prohibited from
484484 24 establishing an Internet wagering account or participating in
485485 25 Internet gaming offered by an Internet gaming operator. The
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496496 1 Board shall adopt rules for the establishment and maintenance
497497 2 of the responsible gaming database, which shall include
498498 3 allowances for individuals to self-exclude from Internet
499499 4 wagering, including making self-exclusion elections through an
500500 5 Internet gaming operator on an Internet gaming platform or
501501 6 in-person at casinos or racetracks. The Board shall maintain
502502 7 the responsible gaming database in a confidential manner and
503503 8 Internet gaming operators shall not knowingly accept wagers
504504 9 from anyone listed on the gaming database. Notwithstanding any
505505 10 law to the contrary, a self-exclusion election and the
506506 11 responsible gaming database are not public records subject to
507507 12 copying and disclosure under the Freedom of Information Act.
508508 13 (c) Each Internet gaming platform shall display the words
509509 14 "If you or someone you know has a gambling problem, help is
510510 15 available. Call (toll-free telephone number)" or some
511511 16 comparable language approved by the Board, which language
512512 17 shall include the words "gambling problem" and "call
513513 18 1-800-GAMBLER" to be displayed on the home page accessible to
514514 19 any person visiting or initially logging into the Internet
515515 20 gaming platform. Similar information shall be accessible to
516516 21 account holders when logged onto the Internet gaming platform.
517517 22 (d) Each Internet gaming platform shall include mechanisms
518518 23 for temporary and permanent self-exclusion through the Board's
519519 24 statewide responsible gaming database from Internet gaming,
520520 25 including termination of his or her Internet wagering account;
521521 26 a deposit limit offered on a daily, weekly, and monthly basis
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532532 1 that allows participants to specify the maximum amount of
533533 2 money they can deposit into the Internet wagering account
534534 3 during the particular time period; and a spend limit offered
535535 4 on a daily, weekly, and monthly basis that allows participants
536536 5 to specify the maximum amount of the deposits that they may put
537537 6 at risk during the particular time period. Self-imposed
538538 7 wagering or deposit limits shall take effect immediately but
539539 8 increases to a previously imposed limit shall not take effect
540540 9 until the expiration of the limit per the terms of the
541541 10 participant's original election. A licensee under this Act
542542 11 shall not knowingly mail or otherwise forward any
543543 12 gaming-related promotional materials or electronic mail to a
544544 13 participant during any period in which the participant has
545545 14 elected to temporarily or permanently suspend or terminate
546546 15 Internet gaming through the account.
547547 16 (e) A participant shall continue to have access to the
548548 17 Internet wagering account and the ability to withdraw funds,
549549 18 notwithstanding any temporary or permanent suspension or
550550 19 limits placed upon the account pursuant to this Section.
551551 20 Section 45. Tax.
552552 21 (a) A privilege tax is imposed on an Internet gaming
553553 22 operator based on the adjusted gross gaming revenue wagered on
554554 23 Internet gaming platforms authorized under this Act at a rate
555555 24 of 12% of adjusted gross gaming revenue. This privilege tax is
556556 25 the exclusive tax in relation to Internet gaming. No local
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567567 1 government of this State, including home rule municipalities,
568568 2 may impose or levy taxes on adjusted gross gaming revenue.
569569 3 (b) All moneys collected under this Act by the Board shall
570570 4 be deposited into the State Gaming Fund. The taxes imposed by
571571 5 this Section shall be paid by the Internet gaming operator on
572572 6 the day following the end of the month in which the wagers were
573573 7 made.
574574 8 (c) If the taxpayer's adjusted gross gaming revenue for a
575575 9 month is a negative number, the taxpayer may carry over the
576576 10 negative amount to a return filed for the subsequent month and
577577 11 deduct the negative amount from its tax liability for that
578578 12 month, provided that the amount is not be carried over and
579579 13 deducted against tax liability in any month that is more than
580580 14 12 months later than the month in which the amount was accrued.
581581 15 (d) $10,000,000 from the tax revenue deposited in the
582582 16 State Gaming Fund under this Act shall be paid annually to the
583583 17 Department of Human Services for the administration of
584584 18 programs to treat problem gambling.
585585 19 (e) After the amount specified in subsection (d) has been
586586 20 paid or transferred, all remaining tax revenue deposited into
587587 21 the State Gaming Fund in accordance with this Act shall be
588588 22 transferred in equal parts to the Pension Stabilization Fund
589589 23 and the Education Assistance Fund.
590590 24 Section 50. Diversity programs.
591591 25 (a) As used in this Section only, "licensee" means an
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602602 1 Internet gaming licensee under this Act.
603603 2 (b) The public policy of this State is to collaboratively
604604 3 work with companies that serve Illinois residents to improve
605605 4 their supplier diversity in a non-antagonistic manner.
606606 5 (c) The Board shall require all licensees under this Act
607607 6 to submit an annual report by April 15, 2024 and every April 15
608608 7 thereafter, in a searchable Adobe PDF format, on all
609609 8 procurement goals and actual spending for businesses owned by
610610 9 women, minorities, veterans, and persons with disabilities and
611611 10 small business enterprises in the previous calendar year.
612612 11 These goals shall be expressed as a percentage of the total
613613 12 work performed by the entity submitting the report, and the
614614 13 actual spending for all businesses owned by women, minorities,
615615 14 veterans, and persons with disabilities and small business
616616 15 enterprises shall also be expressed as a percentage of the
617617 16 total work performed by the entity submitting the report.
618618 17 (d) Each licensee in its annual report shall include the
619619 18 following information: (1) an explanation of the plan for the
620620 19 next year to increase participation; (2) an explanation of the
621621 20 plan to increase the goals; (3) the areas of procurement each
622622 21 licensee shall be actively seeking more participation in the
623623 22 next year; (4) an outline of the plan to alert and encourage
624624 23 potential vendors in that area to seek business from the
625625 24 licensee; (5) an explanation of the challenges faced in
626626 25 finding quality vendors and offer any suggestions for what the
627627 26 Board could do to be helpful to identify those vendors; (6) a
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638638 1 list of the certifications the licensee recognizes; (7) the
639639 2 point of contact for any potential vendor who wishes to do
640640 3 business with the licensee and explain the process for a
641641 4 vendor to enroll with the licensee as a businesses owned by
642642 5 women, minorities, veterans, or persons with disabilities; and
643643 6 (8) any particular success stories to encourage other
644644 7 licensees to emulate best practices.
645645 8 (e) Each annual report shall include as much
646646 9 State-specific data as possible. If the submitting entity does
647647 10 not submit State-specific data, then the licensee shall
648648 11 include any national data it does have and explain why it could
649649 12 not submit State-specific data and how it intends to do so in
650650 13 future reports, if possible.
651651 14 (f) Each annual report shall include the rules,
652652 15 regulations, and definitions used for the procurement goals in
653653 16 the licensee's annual report.
654654 17 (g) The Board and all licensees shall hold an annual
655655 18 workshop and job fair open to the public in 2024 and every year
656656 19 thereafter on the state of supplier diversity to
657657 20 collaboratively seek solutions to structural impediments to
658658 21 achieving stated goals, including testimony from each licensee
659659 22 as well as subject matter experts and advocates. The Board
660660 23 shall publish a database on its website of the point of contact
661661 24 for licensees it regulates under this Act for supplier
662662 25 diversity, along with a list of certifications each licensee
663663 26 recognizes from the information submitted in each annual
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674674 1 report. The Board shall publish each annual report on its
675675 2 website and shall maintain each annual report for at least 5
676676 3 years.
677677 4 (h) A licensee under this Act that is also subject to the
678678 5 diversity program requirements of Section 7.6 of the Illinois
679679 6 Gambling Act shall include its Internet gaming activities
680680 7 within the supplier diversity goals and accompanying reports.
681681 8 Compliance with Section 7.6 of the Illinois Gambling Act shall
682682 9 be in lieu of compliance with the reporting requirements under
683683 10 this Act.
684684 11 Section 55. Applicability of the Illinois Gambling Act and
685685 12 the Uniform Penalty and Interest Act. The provisions of the
686686 13 Illinois Gambling Act, and all rules adopted thereunder, shall
687687 14 apply to this Act, except where there is a conflict between the
688688 15 2 acts, including the incompatibility of any provision to the
689689 16 conduct of gaming remotely, without a brick-and-mortar
690690 17 facility, or over the Internet. All provisions of the Uniform
691691 18 Penalty and Interest Act shall apply, as far as practicable,
692692 19 to the subject matter of this Act to the same extent as if such
693693 20 provisions were included in this Act.
694694 21 Section 60. Acceptance of out-of-state wagers.
695695 22 Notwithstanding any other provision of law to the contrary,
696696 23 wagers may be accepted under this Act from persons who are not
697697 24 physically present in this State if the Board has determined
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708708 1 that out-of-state wagering is not inconsistent with federal
709709 2 law or the law of the jurisdiction in which the person is
710710 3 located or if out-of-state wagering is conducted pursuant to a
711711 4 reciprocal agreement to which this State is a party that is not
712712 5 inconsistent with federal law. The Board may enter into
713713 6 agreements with other jurisdictions to facilitate, administer,
714714 7 and regulate multijurisdictional approved Internet games,
715715 8 including, but not limited to, poker.
716716 9 Section 65. Home rule. The licensure and conduct of
717717 10 Internet gaming conducted by a person or entity pursuant to
718718 11 this Act are exclusive powers and functions of the State. A
719719 12 home rule unit may not regulate or license Internet gaming.
720720 13 This Section is a denial and limitation of home rule powers and
721721 14 functions under subsection (h) of Section 6 of Article VII of
722722 15 the Illinois Constitution.
723723 16 Section 100. The Illinois Administrative Procedure Act is
724724 17 amended by adding Section 5-45.35 as follows:
725725 18 (5 ILCS 100/5-45.35 new)
726726 19 Sec. 5-45.35. Emergency rulemaking; Internet Gaming Act.
727727 20 To provide for the expeditious and timely implementation of
728728 21 the Internet Gaming Act, emergency rules implementing the
729729 22 Internet Gaming Act may be adopted in accordance with Section
730730 23 5-45 by the Illinois Gaming Board. The adoption of emergency
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741741 1 rules authorized by Section 5-45 and this Section is deemed to
742742 2 be necessary for the public interest, safety, and welfare.
743743 3 This Section is repealed one year after the effective date
744744 4 of this amendatory Act of the 103rd General Assembly.
745745 5 Section 999. Effective date. This Act takes effect upon
746746 6 becoming law.
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