Illinois 2023-2024 Regular Session

Illinois House Bill HB2441 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 HB2441 Introduced , by Rep. Jonathan Carroll SYNOPSIS AS INTRODUCED: 230 ILCS 40/35230 ILCS 45/25-70 Amends the Video Gaming Act. Provides that an applicant or licensee under the Act is not in violation of the Act or its rules and shall not be subject to disciplinary action for operating a game device if operation of the game device is in compliance with and not considered gambling under the Criminal Code of 2012. Amends the Sports Wagering Act. In provisions concerning the lottery sports wagering pilot program, provides that all lottery games, including sports wagering games and programs, are a part of the Department of the Lottery's private management agreement and competitive bidding process under the Illinois Lottery Law (rather than the Department issuing a central system provider license pursuant to an open and competitive bidding process). Requires the Department to implement and administer the program no later than June 30, 2024 and that sports lottery terminals be available for play within 90 days after the effective date of the amendatory Act. Makes changes in provisions concerning the placement of sports lottery terminals, wagers accepted, distribution of proceeds, and the Department's powers. Provides that the Department shall be responsible for facilitating the purchase or lease of all sports lottery terminals. Changes the repeal date of the pilot program to January 1, 2032 (rather than January 1, 2024). Makes other changes. Effective immediately. LRB103 29624 AMQ 56020 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2441 Introduced , by Rep. Jonathan Carroll SYNOPSIS AS INTRODUCED: 230 ILCS 40/35230 ILCS 45/25-70 230 ILCS 40/35 230 ILCS 45/25-70 Amends the Video Gaming Act. Provides that an applicant or licensee under the Act is not in violation of the Act or its rules and shall not be subject to disciplinary action for operating a game device if operation of the game device is in compliance with and not considered gambling under the Criminal Code of 2012. Amends the Sports Wagering Act. In provisions concerning the lottery sports wagering pilot program, provides that all lottery games, including sports wagering games and programs, are a part of the Department of the Lottery's private management agreement and competitive bidding process under the Illinois Lottery Law (rather than the Department issuing a central system provider license pursuant to an open and competitive bidding process). Requires the Department to implement and administer the program no later than June 30, 2024 and that sports lottery terminals be available for play within 90 days after the effective date of the amendatory Act. Makes changes in provisions concerning the placement of sports lottery terminals, wagers accepted, distribution of proceeds, and the Department's powers. Provides that the Department shall be responsible for facilitating the purchase or lease of all sports lottery terminals. Changes the repeal date of the pilot program to January 1, 2032 (rather than January 1, 2024). Makes other changes. Effective immediately. LRB103 29624 AMQ 56020 b LRB103 29624 AMQ 56020 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2441 Introduced , by Rep. Jonathan Carroll SYNOPSIS AS INTRODUCED:
3	3	230 ILCS 40/35230 ILCS 45/25-70 230 ILCS 40/35 230 ILCS 45/25-70
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5	5	230 ILCS 45/25-70
6	6	Amends the Video Gaming Act. Provides that an applicant or licensee under the Act is not in violation of the Act or its rules and shall not be subject to disciplinary action for operating a game device if operation of the game device is in compliance with and not considered gambling under the Criminal Code of 2012. Amends the Sports Wagering Act. In provisions concerning the lottery sports wagering pilot program, provides that all lottery games, including sports wagering games and programs, are a part of the Department of the Lottery's private management agreement and competitive bidding process under the Illinois Lottery Law (rather than the Department issuing a central system provider license pursuant to an open and competitive bidding process). Requires the Department to implement and administer the program no later than June 30, 2024 and that sports lottery terminals be available for play within 90 days after the effective date of the amendatory Act. Makes changes in provisions concerning the placement of sports lottery terminals, wagers accepted, distribution of proceeds, and the Department's powers. Provides that the Department shall be responsible for facilitating the purchase or lease of all sports lottery terminals. Changes the repeal date of the pilot program to January 1, 2032 (rather than January 1, 2024). Makes other changes. 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 5. The Video Gaming Act is amended by changing
16	16	5 Section 35 as follows:
17	17	6 (230 ILCS 40/35)
18	18	7 Sec. 35. Display of license; confiscation; violation as
19	19	8 felony.
20	20	9 (a) Each video gaming terminal shall be licensed by the
21	21	10 Board before placement or operation on the premises of a
22	22	11 licensed establishment, licensed truck stop establishment,
23	23	12 licensed large truck stop establishment, licensed fraternal
24	24	13 establishment, or licensed veterans establishment. The license
25	25	14 of each video gaming terminal shall be maintained at the
26	26	15 location where the video gaming terminal is operated. Failure
27	27	16 to do so is a petty offense with a fine not to exceed $100. Any
28	28	17 licensed establishment, licensed truck stop establishment,
29	29	18 licensed large truck stop establishment, licensed fraternal
30	30	19 establishment, or licensed veterans establishment used for the
31	31	20 conduct of gambling games in violation of this Act shall be
32	32	21 considered a gambling place in violation of Section 28-3 of
33	33	22 the Criminal Code of 2012. Every gambling device found in a
34	34	23 licensed establishment, licensed truck stop establishment,
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38	38	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2441 Introduced , by Rep. Jonathan Carroll SYNOPSIS AS INTRODUCED:
39	39	230 ILCS 40/35230 ILCS 45/25-70 230 ILCS 40/35 230 ILCS 45/25-70
40	40	230 ILCS 40/35
41	41	230 ILCS 45/25-70
42	42	Amends the Video Gaming Act. Provides that an applicant or licensee under the Act is not in violation of the Act or its rules and shall not be subject to disciplinary action for operating a game device if operation of the game device is in compliance with and not considered gambling under the Criminal Code of 2012. Amends the Sports Wagering Act. In provisions concerning the lottery sports wagering pilot program, provides that all lottery games, including sports wagering games and programs, are a part of the Department of the Lottery's private management agreement and competitive bidding process under the Illinois Lottery Law (rather than the Department issuing a central system provider license pursuant to an open and competitive bidding process). Requires the Department to implement and administer the program no later than June 30, 2024 and that sports lottery terminals be available for play within 90 days after the effective date of the amendatory Act. Makes changes in provisions concerning the placement of sports lottery terminals, wagers accepted, distribution of proceeds, and the Department's powers. Provides that the Department shall be responsible for facilitating the purchase or lease of all sports lottery terminals. Changes the repeal date of the pilot program to January 1, 2032 (rather than January 1, 2024). Makes other changes. Effective immediately.
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45	45	A BILL FOR
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71	71	1 licensed large truck stop establishment, licensed fraternal
72	72	2 establishment, or licensed veterans establishment operating
73	73	3 gambling games in violation of this Act shall be subject to
74	74	4 seizure, confiscation, and destruction as provided in Section
75	75	5 28-5 of the Criminal Code of 2012. Any license issued under the
76	76	6 Liquor Control Act of 1934 to any owner or operator of a
77	77	7 licensed establishment, licensed truck stop establishment,
78	78	8 licensed large truck stop establishment, licensed fraternal
79	79	9 establishment, or licensed veterans establishment that
80	80	10 operates or permits the operation of a video gaming terminal
81	81	11 within its establishment in violation of this Act shall be
82	82	12 immediately revoked. No person may own, operate, have in his
83	83	13 or her possession or custody or under his or her control, or
84	84	14 permit to be kept in any place under his or her possession or
85	85	15 control, any device that awards credits and contains a
86	86	16 circuit, meter, or switch capable of removing and recording
87	87	17 the removal of credits when the award of credits is dependent
88	88	18 upon chance.
89	89	19 Nothing in this Section shall be deemed to prohibit the
90	90	20 use of a game device only if the game device is used in an
91	91	21 activity that is not gambling under subsection (b) of Section
92	92	22 28-1 of the Criminal Code of 2012. An applicant or licensee
93	93	23 under this Act is not in violation of this Act or its rules and
94	94	24 shall not be subject to disciplinary action for operating a
95	95	25 game device if operation of the game device is in compliance
96	96	26 with and not considered gambling under subsection (b) of
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107	107	1 Section 28-1 of the Criminal Code of 2012.
108	108	2 A violation of this Section is a Class 4 felony. All
109	109	3 devices that are owned, operated, or possessed in violation of
110	110	4 this Section are hereby declared to be public nuisances and
111	111	5 shall be subject to seizure, confiscation, and destruction as
112	112	6 provided in Section 28-5 of the Criminal Code of 2012.
113	113	7 The provisions of this Section do not apply to devices or
114	114	8 electronic video game terminals licensed pursuant to this Act.
115	115	9 A video gaming terminal operated for amusement only and
116	116	10 bearing a valid amusement tax sticker shall not be subject to
117	117	11 this Section until 30 days after the Board establishes that
118	118	12 the central communications system is functional.
119	119	13 (b) (1) The odds of winning each video game shall be posted
120	120	14 on or near each video gaming terminal. The manner in which the
121	121	15 odds are calculated and how they are posted shall be
122	122	16 determined by the Board by rule.
123	123	17 (2) No video gaming terminal licensed under this Act may
124	124	18 be played except during the legal hours of operation allowed
125	125	19 for the consumption of alcoholic beverages at the licensed
126	126	20 establishment, licensed fraternal establishment, or licensed
127	127	21 veterans establishment. A licensed establishment, licensed
128	128	22 fraternal establishment, or licensed veterans establishment
129	129	23 that violates this subsection is subject to termination of its
130	130	24 license by the Board.
131	131	25 (Source: P.A. 101-31, eff. 6-28-19.)
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142	142	1 Section 10. The Sports Wagering Act is amended by changing
143	143	2 Section 25-70 as follows:
144	144	3 (230 ILCS 45/25-70)
145	145	4 (Section scheduled to be repealed on January 1, 2024)
146	146	5 Sec. 25-70. Lottery sports wagering pilot program.
147	147	6 (a) As used in this Section:
148	148	7 "Central lottery system" means the hardware, software,
149	149	8 peripherals, platform, and network components provided by the
150	150	9 Department's central system provider that link and support all
151	151	10 required lottery games, programs, and terminals, including,
152	152	11 but not limited to, sports wagering games and programs through
153	153	12 sports lottery terminals and the central site and that are
154	154	13 unique and separate from the lottery central system for draw
155	155	14 and instant games.
156	156	15 "Central lottery system provider" means an individual,
157	157	16 partnership, corporation, or limited liability company that
158	158	17 provides the hardware, software, peripherals, platform, risk
159	159	18 management, operations, support services, and network
160	160	19 components that link and support all required lottery games
161	161	20 and lottery terminals, including, but not limited to, sports
162	162	21 wagering games and programs through has been licensed for the
163	163	22 purpose of providing and maintaining a central system and the
164	164	23 related management facilities specifically for the management
165	165	24 of sports lottery terminals.
166	166	25 "Electronic card" means a card purchased from a lottery
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177	177	1 retailer.
178	178	2 "Lottery game" means any game provided for sale or
179	179	3 distribution by the Illinois Lottery, including, but not
180	180	4 limited to, sports wagering games and programs through sports
181	181	5 lottery terminals.
182	182	6 "Lottery retailer" means a location licensed by the
183	183	7 Department, or otherwise eligible for a license, to sell
184	184	8 lottery tickets or shares, including a licensed retail
185	185	9 establishment where alcoholic liquor is drawn, poured, mixed,
186	186	10 or otherwise served for consumption on premises, regardless of
187	187	11 whether the establishment operates on a nonprofit or
188	188	12 for-profit basis, any location or establishment that is
189	189	13 licensed to operate video gaming terminals, and any other
190	190	14 retail food establishment.
191	191	15 "Sports lottery systems" means systems provided by the
192	192	16 central lottery system provider consisting of sports wagering
193	193	17 products, risk management, operations, and support services.
194	194	18 "Sports lottery terminal" means a terminal linked to the
195	195	19 central lottery system in which bills or coins are deposited
196	196	20 or an electronic card is inserted in order to place wagers on a
197	197	21 sports event and lottery offerings and includes sports
198	198	22 wagering conducted over the Internet or through mobile
199	199	23 applications or other digital platforms.
200	200	24 (b) Lottery games are a part of the private management
201	201	25 agreement and competitive bidding process provided in Section
202	202	26 9.1 of the Illinois Lottery Law. The central lottery system
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213	213	1 provider shall pay $10,000,000, payable in equal installments
214	214	2 over the course of its contract, to the Department upon being
215	215	3 issued the central lottery system provider license authorizing
216	216	4 sports wagering games and programs under this Section. The
217	217	5 fee, however, shall be deducted from the central lottery
218	218	6 system provider's operational costs related to the sports
219	219	7 lottery infrastructure up to the pro rata amount paid each
220	220	8 year. The Department shall issue one central system provider
221	221	9 license pursuant to an open and competitive bidding process
222	222	10 that uses the following procedures:
223	223	11 (1) The Department shall make applications for the
224	224	12 central system provider license available to the public
225	225	13 and allow a reasonable time for applicants to submit
226	226	14 applications to the Department.
227	227	15 (2) During the filing period for central system
228	228	16 provider license applications, the Department may retain
229	229	17 professional services to assist the Department in
230	230	18 conducting the open and competitive bidding process.
231	231	19 (3) After receiving all of the bid proposals, the
232	232	20 Department shall open all of the proposals in a public
233	233	21 forum and disclose the prospective central system provider
234	234	22 names and venture partners, if any.
235	235	23 (4) The Department shall summarize the terms of the
236	236	24 bid proposals and may make this summary available to the
237	237	25 public.
238	238	26 (5) The Department shall evaluate the bid proposals
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249	249	1 within a reasonable time and select no more than 3 final
250	250	2 applicants to make presentations of their bid proposals to
251	251	3 the Department.
252	252	4 (6) The final applicants shall make their
253	253	5 presentations to the Department on the same day during an
254	254	6 open session of the Department.
255	255	7 (7) As soon as practicable after the public
256	256	8 presentations by the final applicants, the Department, in
257	257	9 its discretion, may conduct further negotiations among the
258	258	10 3 final applicants. At the conclusion of such
259	259	11 negotiations, the Department shall select the winning bid.
260	260	12 (8) Upon selection of the winning bid, the Department
261	261	13 shall evaluate the winning bid within a reasonable period
262	262	14 of time for licensee suitability in accordance with all
263	263	15 applicable statutory and regulatory criteria.
264	264	16 (9) If the winning bidder is unable or otherwise fails
265	265	17 to consummate the transaction, (including if the
266	266	18 Department determines that the winning bidder does not
267	267	19 satisfy the suitability requirements), the Department may,
268	268	20 on the same criteria, select from the remaining bidders.
269	269	21 (10) The winning bidder shall pay $20,000,000 to the
270	270	22 Department upon being issued the central system provider
271	271	23 license.
272	272	24 (c) Every sports lottery terminal offered in this State
273	273	25 for play shall first be tested and approved pursuant to the
274	274	26 rules of the Department, and each sports lottery terminal
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285	285	1 offered in this State for play shall conform to an approved
286	286	2 model. Sports lottery terminals shall be available for play
287	287	3 within 90 days after the effective date of this amendatory Act
288	288	4 of the 103rd General Assembly and any system testing dates
289	289	5 designated by the Department. For the examination of sports
290	290	6 lottery terminals and associated equipment as required by this
291	291	7 Section, the central lottery system provider may utilize the
292	292	8 services of one or more independent outside testing
293	293	9 laboratories that have been accredited by a national
294	294	10 accreditation body and that, in the judgment of the
295	295	11 Department, are qualified to perform such examinations. Every
296	296	12 sports lottery terminal offered in this State for play must
297	297	13 meet minimum standards set by an independent outside testing
298	298	14 laboratory approved by the Department.
299	299	15 (d) Sports During the first 360 days after the effective
300	300	16 date of this Act, sport lottery terminals may be placed in any
301	301	17 lottery no more than 2,500 Lottery retail location locations
302	302	18 in the State. Sports lottery terminals may be placed in an
303	303	19 additional 2,500 Lottery retail locations during the second
304	304	20 year after the effective date of this Act.
305	305	21 (e) A sports lottery terminal may not directly dispense
306	306	22 coins, cash, tokens, or any other article of exchange or value
307	307	23 except for receipt tickets. Tickets shall be dispensed by
308	308	24 pressing the ticket dispensing button on the sports lottery
309	309	25 terminal at the end of the placement of one's wager or wagers.
310	310	26 The ticket shall indicate the total amount wagered, odds for
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321	321	1 each wager placed, and the cash award for each bet placed, the
322	322	2 time of day in a 24-hour format showing hours and minutes, the
323	323	3 date, the terminal serial number, the sequential number of the
324	324	4 ticket, and an encrypted validation number from which the
325	325	5 validity of the prize may be determined. The player shall turn
326	326	6 in this ticket to the appropriate person at a lottery retailer
327	327	7 to receive the cash award.
328	328	8 (f) No lottery retailer may cause or permit any person
329	329	9 under the age of 21 years to use a sports lottery terminal or
330	330	10 sports wagering application. A lottery retailer who knowingly
331	331	11 causes or permits a person under the age of 21 years to use a
332	332	12 sports lottery terminal or sports wagering application is
333	333	13 guilty of a business offense and shall be fined an amount not
334	334	14 to exceed $5,000.
335	335	15 (g) A sports lottery terminal shall only accept any wagers
336	336	16 as determined by rule by the Department. parlay wagers and
337	337	17 fixed odds parlay wagers. The Department shall, by rule,
338	338	18 establish the total amount, as a percentage, of all wagers
339	339	19 placed that a lottery retailer may retain.
340	340	20 (g-5) The payouts for the lottery sports wagering pilot
341	341	21 program shall be as follows:
342	342	22 (1) 80% or less of gross dollars played to be
343	343	23 distributed as prizes and awards; this amount shall be
344	344	24 calculated as an average based on a 2-year anniversary
345	345	25 date to be determined by the Department and guaranteed by
346	346	26 the central lottery system provider; and
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357	357	1 (2) the remaining 20% gross gaming revenue, which is
358	358	2 gross dollars played minus prizes paid, to be distributed
359	359	3 as follows:
360	360	4 (A) 8% to the central lottery system provider; and
361	361	5 (B) except as provided in subparagraphs (i) and
362	362	6 (ii), 12% to the State, of which the local
363	363	7 municipality shall receive .5% if the State is
364	364	8 responsible for the retailer commissions and payment
365	365	9 of the sports lottery terminal;
366	366	10 (i) if a terminal operator under the Video
367	367	11 Gaming Act purchases and distributes the sports
368	368	12 lottery terminal, then 4% to the State, 3% to the
369	369	13 lottery retailer, 4.5% to the terminal operator,
370	370	14 and .5% to the local municipality; or
371	371	15 (ii) if a Lottery retail location purchases
372	372	16 the sports lottery terminal, then 7.5% goes to the
373	373	17 Lottery retail location and 4% to the State, of
374	374	18 which the local municipality shall receive .5%.
375	375	19 (h) The Department shall have jurisdiction over and shall
376	376	20 supervise all lottery sports wagering operations governed by
377	377	21 this Section. The Department shall implement and administer
378	378	22 the lottery sports wagering pilot program no later than June
379	379	23 30, 2024. The Department shall have all powers necessary and
380	380	24 proper to fully and effectively execute the provisions of this
381	381	25 Section, including, but not limited to, the following:
382	382	26 (1) To investigate applicants and determine the
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393	393	1 eligibility of applicants for licenses with a goal of
394	394	2 advancing minority business opportunities, including
395	395	3 lottery retailer ownership of sports lottery terminals and
396	396	4 to select among competing applicants the applicants which
397	397	5 best serve the interests of the citizens of Illinois.
398	398	6 (2) To have jurisdiction and supervision over all
399	399	7 lottery sports wagering operations in this State.
400	400	8 (3) To adopt rules for the purpose of administering
401	401	9 the provisions of this Section and to adopt rules and
402	402	10 conditions under which all lottery sports wagering in the
403	403	11 State shall be conducted. Such rules are to provide for
404	404	12 the prevention of practices detrimental to the public
405	405	13 interest and for the best interests of lottery sports
406	406	14 wagering, including rules (i) regarding the inspection of
407	407	15 such licensees necessary to operate a lottery retailer
408	408	16 under any laws or rules applicable to licensees, (ii) to
409	409	17 impose penalties for violations of the Act and its rules,
410	410	18 and (iii) establishing standards for advertising lottery
411	411	19 sports wagering, (iv) to effectuate policies that advance
412	412	20 minority business ownership and participation in the
413	413	21 sports lottery program, and (v) regarding apportionment of
414	414	22 the total revenues accruing from the lottery sports
415	415	23 wagering pilot program for the purchase or lease of the
416	416	24 hardware.
417	417	25 (i) The Department shall adopt emergency rules to
418	418	26 administer this Section in accordance with Section 5-45 of the
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429	429	1 Illinois Administrative Procedure Act. For the purposes of the
430	430	2 Illinois Administrative Procedure Act, the General Assembly
431	431	3 finds that the adoption of rules to implement this Section is
432	432	4 deemed an emergency and necessary to the public interest,
433	433	5 safety, and welfare.
434	434	6 (j) For the privilege of operating lottery sports wagering
435	435	7 under this Section, all proceeds minus net of proceeds
436	436	8 returned to players shall be electronically transferred daily
437	437	9 or weekly, at the discretion of the Director of the Lottery,
438	438	10 into the State Lottery Fund. After amounts owed to the central
439	439	11 system provider and licensed agents, as determined by the
440	440	12 Department, are paid from the moneys deposited into the State
441	441	13 Lottery Fund under this subsection, the remainder shall be
442	442	14 transferred on the 15th of each month to the Capital Projects
443	443	15 Fund.
444	444	16 (j-5) The Department shall be responsible for facilitating
445	445	17 either the purchase or lease of all sports lottery terminals,
446	446	18 including providing opportunities for minority business
447	447	19 lottery retailers to obtain suitable financing. The Department
448	448	20 shall allow for any terminal operator under the Video Gaming
449	449	21 Act and Lottery retail location to purchase or lease the
450	450	22 sports lottery terminals.
451	451	23 (k) This Section is repealed on January 1, 2032 2024.
452	452	24 (Source: P.A. 101-31, eff. 6-28-19.)
453	453	25 Section 99. Effective date. This Act takes effect upon
454	454	26 becoming law.
455	455
456	456
457	457
458	458
459	459
460	460	HB2441 - 12 - LRB103 29624 AMQ 56020 b