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Illinois House Bill HB3850

Illinois 2023-2024 Regular Session

Illinois House Bill HB3850 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3850 Introduced , by Rep. Cyril Nichols SYNOPSIS AS INTRODUCED: See Index Amends the Illinois Gambling Act. Provides that the Illinois Gaming Oversight Officer is created with the Illinois Gaming Board under the Administrator. Provides for: duties of the Oversight Officer; funding required; a disparity and availability study; and compiling, collecting, or otherwise gathering data necessary for the Administration of the Act. Provides that the Oversight Officer shall work with the General Assembly to establish a pilot program for minority-owned business enterprises that apply for a terminal operator license. Amends the Sports Wagering Act. In provisions concerning the lottery sports wagering pilot program, provides that lottery games are part of the private management 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 that every sports lottery terminal offered in this State for play shall conform to an approved model that shall be ready for play in this State within 90 days after the effective date of the amendatory Act and any system testing dates designated by the Department of the Lottery. Makes changes in provisions concerning the placement of sports lottery terminals, wagers accepted, and the Department's powers. Provides that the Department shall be responsible for facilitating the purchase or lease of all sports lottery terminals. Removes the repeal date of January 1, 2024. Amends the Prizes and Gifts Act. Provides that it is unlawful for a person to operate on any premises a prize and gift kiosk that fails to meet the required technical standard. Provides that no prize and gift kiosk shall be connected directly or indirectly to the Internet, either by cellular modem, hard wire, or wireless connection, or to a set of interconnected networked devices in order to participate in the game or contest or to receive or retrieve any data related to the kiosk or device unless the connected device is a redemption vault. Makes other and corresponding changes. Effective immediately. LRB103 29616 AMQ 56012 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3850 Introduced , by Rep. Cyril Nichols SYNOPSIS AS INTRODUCED: See Index See Index Amends the Illinois Gambling Act. Provides that the Illinois Gaming Oversight Officer is created with the Illinois Gaming Board under the Administrator. Provides for: duties of the Oversight Officer; funding required; a disparity and availability study; and compiling, collecting, or otherwise gathering data necessary for the Administration of the Act. Provides that the Oversight Officer shall work with the General Assembly to establish a pilot program for minority-owned business enterprises that apply for a terminal operator license. Amends the Sports Wagering Act. In provisions concerning the lottery sports wagering pilot program, provides that lottery games are part of the private management 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 that every sports lottery terminal offered in this State for play shall conform to an approved model that shall be ready for play in this State within 90 days after the effective date of the amendatory Act and any system testing dates designated by the Department of the Lottery. Makes changes in provisions concerning the placement of sports lottery terminals, wagers accepted, and the Department's powers. Provides that the Department shall be responsible for facilitating the purchase or lease of all sports lottery terminals. Removes the repeal date of January 1, 2024. Amends the Prizes and Gifts Act. Provides that it is unlawful for a person to operate on any premises a prize and gift kiosk that fails to meet the required technical standard. Provides that no prize and gift kiosk shall be connected directly or indirectly to the Internet, either by cellular modem, hard wire, or wireless connection, or to a set of interconnected networked devices in order to participate in the game or contest or to receive or retrieve any data related to the kiosk or device unless the connected device is a redemption vault. Makes other and corresponding changes. Effective immediately. LRB103 29616 AMQ 56012 b LRB103 29616 AMQ 56012 b A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3850 Introduced , by Rep. Cyril Nichols SYNOPSIS AS INTRODUCED:
33 See Index See Index
44 See Index
55 Amends the Illinois Gambling Act. Provides that the Illinois Gaming Oversight Officer is created with the Illinois Gaming Board under the Administrator. Provides for: duties of the Oversight Officer; funding required; a disparity and availability study; and compiling, collecting, or otherwise gathering data necessary for the Administration of the Act. Provides that the Oversight Officer shall work with the General Assembly to establish a pilot program for minority-owned business enterprises that apply for a terminal operator license. Amends the Sports Wagering Act. In provisions concerning the lottery sports wagering pilot program, provides that lottery games are part of the private management 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 that every sports lottery terminal offered in this State for play shall conform to an approved model that shall be ready for play in this State within 90 days after the effective date of the amendatory Act and any system testing dates designated by the Department of the Lottery. Makes changes in provisions concerning the placement of sports lottery terminals, wagers accepted, and the Department's powers. Provides that the Department shall be responsible for facilitating the purchase or lease of all sports lottery terminals. Removes the repeal date of January 1, 2024. Amends the Prizes and Gifts Act. Provides that it is unlawful for a person to operate on any premises a prize and gift kiosk that fails to meet the required technical standard. Provides that no prize and gift kiosk shall be connected directly or indirectly to the Internet, either by cellular modem, hard wire, or wireless connection, or to a set of interconnected networked devices in order to participate in the game or contest or to receive or retrieve any data related to the kiosk or device unless the connected device is a redemption vault. Makes other and corresponding changes. Effective immediately.
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1111 1 AN ACT concerning gaming.
1212 2 Be it enacted by the People of the State of Illinois,
1313 3 represented in the General Assembly:
1414 4 Section 5. The Illinois Gambling Act is amended by adding
1515 5 Section 5.5 as follows:
1616 6 (230 ILCS 10/5.5 new)
1717 7 Sec. 5.5. Illinois Gaming Oversight Officer.
1818 8 (a) The position of Illinois Gaming Oversight Officer is
1919 9 created within the Illinois Gaming Board under the
2020 10 Administrator. The Oversight Officer shall be appointed by the
2121 11 Governor with recommendations given by the Speaker of the
2222 12 House of Representatives.
2323 13 (b) The Oversight Officer may:
2424 14 (1) maintain a staff;
2525 15 (2) make recommendations for policy, statute, and rule
2626 16 changes;
2727 17 (3) collect data both in and outside this State
2828 18 regarding the regulation of gaming and exempted or
2929 19 quasi-gaming;
3030 20 (4) compile or assist in the compilation of any
3131 21 reports required by this Act;
3232 22 (5) ensure the coordination of efforts between various
3333 23 State agencies involved in regulating and taxing gaming
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3737 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3850 Introduced , by Rep. Cyril Nichols SYNOPSIS AS INTRODUCED:
3838 See Index See Index
3939 See Index
4040 Amends the Illinois Gambling Act. Provides that the Illinois Gaming Oversight Officer is created with the Illinois Gaming Board under the Administrator. Provides for: duties of the Oversight Officer; funding required; a disparity and availability study; and compiling, collecting, or otherwise gathering data necessary for the Administration of the Act. Provides that the Oversight Officer shall work with the General Assembly to establish a pilot program for minority-owned business enterprises that apply for a terminal operator license. Amends the Sports Wagering Act. In provisions concerning the lottery sports wagering pilot program, provides that lottery games are part of the private management 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 that every sports lottery terminal offered in this State for play shall conform to an approved model that shall be ready for play in this State within 90 days after the effective date of the amendatory Act and any system testing dates designated by the Department of the Lottery. Makes changes in provisions concerning the placement of sports lottery terminals, wagers accepted, and the Department's powers. Provides that the Department shall be responsible for facilitating the purchase or lease of all sports lottery terminals. Removes the repeal date of January 1, 2024. Amends the Prizes and Gifts Act. Provides that it is unlawful for a person to operate on any premises a prize and gift kiosk that fails to meet the required technical standard. Provides that no prize and gift kiosk shall be connected directly or indirectly to the Internet, either by cellular modem, hard wire, or wireless connection, or to a set of interconnected networked devices in order to participate in the game or contest or to receive or retrieve any data related to the kiosk or device unless the connected device is a redemption vault. Makes other and corresponding changes. Effective immediately.
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6868 1 and exempted or quasi-gaming in this State; and
6969 2 (6) encourage, promote, suggest, and report best
7070 3 practices for ensuring diversity in the gaming and
7171 4 exempted or quasi-gaming industry in this State.
7272 5 (c) Any funding required for the Oversight Officer, its
7373 6 staff, or its activities shall be appropriated as part of the
7474 7 funding for the Illinois Gaming Board.
7575 8 (d) The Oversight Officer shall commission and publish a
7676 9 disparity and availability study on a biannual basis that: (i)
7777 10 evaluates whether there exists discrimination in the State's
7878 11 gaming industry; and (ii) if so, evaluates the impact of such
7979 12 discrimination on the State and includes recommendations to
8080 13 the Speaker of the House of Representatives for reducing or
8181 14 eliminating any identified barriers to entry in the gaming
8282 15 market. The Oversight Officer shall forward a copy of its
8383 16 findings and recommendations to the Illinois Gaming Board, the
8484 17 Department of Commerce and Economic Opportunity, the General
8585 18 Assembly, and the Governor.
8686 19 (e) The Oversight Officer shall have a budget set by the
8787 20 General Assembly for the purpose of contracting with a third
8888 21 party to assist in completing the disparity study. The
8989 22 Oversight Officer shall have the authority to select and hire
9090 23 outside firms for the purpose of completing the disparity
9191 24 study.
9292 25 (f) The Oversight Officer may compile, collect, or
9393 26 otherwise gather data necessary for the administration of this
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104104 1 Act and to carry out the Officer's duty relating to the
105105 2 recommendation of policy changes. The Oversight Officer may
106106 3 direct the Illinois Gaming Board and Department of Commerce
107107 4 and Economic Opportunity to assist in the compilation,
108108 5 collection, and data gathering authorized pursuant to this
109109 6 Section. The Oversight Officer shall compile all of the data
110110 7 into a single report and submit the report to the Governor and
111111 8 the General Assembly and publish the report on its website.
112112 9 (g) The Oversight Officer shall pair eligible minority
113113 10 businesses with terminal operator licensees or casino
114114 11 licensees for mentoring. The Oversight Officer shall develop a
115115 12 mentorship program to assist minority-owned businesses to
116116 13 transition into gaming opportunities under the Illinois
117117 14 Gambling Act and Video Gaming Act. An eligible minority-owned
118118 15 business is one that operates or has applied to operate any
119119 16 activity covered under subsection (b) of Section 28-1 of the
120120 17 Criminal Code of 2012, like bingo, charitable games, lottery,
121121 18 poker runs, raffles, and prize and gift kiosks.
122122 19 (h) The Oversight Officer shall work with the General
123123 20 Assembly to establish a pilot program for minority-owned
124124 21 business enterprises that apply for a terminal operator
125125 22 license. The pilot program shall establish a reduction in fees
126126 23 to apply for and receive a license and set a limit for the
127127 24 Illinois Gaming Board of up to 6 months from the date an
128128 25 application is submitted for a determination on suitability
129129 26 and licensure. The pilot program shall also create the process
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140140 1 for and terms related to subsidized or guaranteed loans for
141141 2 video gaming terminals, redemption vaults, and related
142142 3 equipment to licensed minority terminal operators as funded
143143 4 and secured by the revenues from the sports lottery kiosk
144144 5 program.
145145 6 Section 10. The Video Gaming Act is amended by changing
146146 7 Section 35 as follows:
147147 8 (230 ILCS 40/35)
148148 9 Sec. 35. Display of license; confiscation; violation as
149149 10 felony.
150150 11 (a) Each video gaming terminal shall be licensed by the
151151 12 Board before placement or operation on the premises of a
152152 13 licensed establishment, licensed truck stop establishment,
153153 14 licensed large truck stop establishment, licensed fraternal
154154 15 establishment, or licensed veterans establishment. The license
155155 16 of each video gaming terminal shall be maintained at the
156156 17 location where the video gaming terminal is operated. Failure
157157 18 to do so is a petty offense with a fine not to exceed $100. Any
158158 19 licensed establishment, licensed truck stop establishment,
159159 20 licensed large truck stop establishment, licensed fraternal
160160 21 establishment, or licensed veterans establishment used for the
161161 22 conduct of gambling games in violation of this Act shall be
162162 23 considered a gambling place in violation of Section 28-3 of
163163 24 the Criminal Code of 2012. Every gambling device found in a
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174174 1 licensed establishment, licensed truck stop establishment,
175175 2 licensed large truck stop establishment, licensed fraternal
176176 3 establishment, or licensed veterans establishment operating
177177 4 gambling games in violation of this Act shall be subject to
178178 5 seizure, confiscation, and destruction as provided in Section
179179 6 28-5 of the Criminal Code of 2012. Any license issued under the
180180 7 Liquor Control Act of 1934 to any owner or operator of a
181181 8 licensed establishment, licensed truck stop establishment,
182182 9 licensed large truck stop establishment, licensed fraternal
183183 10 establishment, or licensed veterans establishment that
184184 11 operates or permits the operation of a video gaming terminal
185185 12 within its establishment in violation of this Act shall be
186186 13 immediately revoked. No person may own, operate, have in his
187187 14 or her possession or custody or under his or her control, or
188188 15 permit to be kept in any place under his or her possession or
189189 16 control, any device that awards credits and contains a
190190 17 circuit, meter, or switch capable of removing and recording
191191 18 the removal of credits when the award of credits is dependent
192192 19 upon chance.
193193 20 Nothing in this Section shall be deemed to prohibit the
194194 21 use of a game device only if the game device is used in an
195195 22 activity that is not gambling under subsection (b) of Section
196196 23 28-1 of the Criminal Code of 2012.
197197 24 A violation of this Section is a Class 4 felony. All
198198 25 devices that are owned, operated, or possessed in violation of
199199 26 this Section are hereby declared to be public nuisances and
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210210 1 shall be subject to seizure, confiscation, and destruction as
211211 2 provided in Section 28-5 of the Criminal Code of 2012. An
212212 3 applicant or licensee under this Act is not in violation of
213213 4 this Act or its rules and shall not be subject to disciplinary
214214 5 action or denial or non-renewal for operating a game device if
215215 6 operation of the gaming device is in compliance with and not
216216 7 considered gambling under subsection (b) of Section 28-1 of
217217 8 the Criminal Code of 2012.
218218 9 The provisions of this Section do not apply to devices or
219219 10 electronic video game terminals licensed pursuant to this Act.
220220 11 A video gaming terminal operated for amusement only and
221221 12 bearing a valid amusement tax sticker shall not be subject to
222222 13 this Section until 30 days after the Board establishes that
223223 14 the central communications system is functional.
224224 15 (b) (1) The odds of winning each video game shall be posted
225225 16 on or near each video gaming terminal. The manner in which the
226226 17 odds are calculated and how they are posted shall be
227227 18 determined by the Board by rule.
228228 19 (2) No video gaming terminal licensed under this Act may
229229 20 be played except during the legal hours of operation allowed
230230 21 for the consumption of alcoholic beverages at the licensed
231231 22 establishment, licensed fraternal establishment, or licensed
232232 23 veterans establishment. A licensed establishment, licensed
233233 24 fraternal establishment, or licensed veterans establishment
234234 25 that violates this subsection is subject to termination of its
235235 26 license by the Board.
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246246 1 (Source: P.A. 101-31, eff. 6-28-19.)
247247 2 Section 15. The Sports Wagering Act is amended by changing
248248 3 Section 25-70 as follows:
249249 4 (230 ILCS 45/25-70)
250250 5 (Section scheduled to be repealed on January 1, 2024)
251251 6 Sec. 25-70. Lottery sports wagering pilot program.
252252 7 (a) As used in this Section:
253253 8 "Central lottery system" means the hardware, software,
254254 9 peripherals, platform, and network components provided by the
255255 10 Department's central system provider that link and support all
256256 11 required lottery games, programs, and lottery terminals,
257257 12 including, but not limited to, sports betting games in this
258258 13 State and programs through sports lottery terminals and the
259259 14 central site and that are unique and separate from the lottery
260260 15 central system for draw and instant games.
261261 16 "Central lottery system provider" means an individual,
262262 17 partnership, corporation, or limited liability company that
263263 18 provides the hardware, software, peripherals, platform, risk
264264 19 management, operations, support services, and network
265265 20 components that link and support all required lottery games
266266 21 and lottery terminals, including, but not limited to, lottery
267267 22 sports betting games in this State and program through has
268268 23 been licensed for the purpose of providing and maintaining a
269269 24 central system and the related management facilities
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280280 1 specifically for the management of sports lottery terminals.
281281 2 "Electronic card" means a card purchased from a lottery
282282 3 retailer.
283283 4 "Lottery game" means any game provided for sale or
284284 5 distribution by the State lottery, including, but not limited
285285 6 to, sports betting games in this State and program through
286286 7 sports lottery terminals.
287287 8 "Lottery retailer" means a location licensed by the
288288 9 Department or otherwise eligible for a license to sell lottery
289289 10 tickets or shares, including any licensed retail establishment
290290 11 where alcoholic liquor is drawn, poured, mixed, or otherwise
291291 12 served for consumption on premises, whether the establishment
292292 13 operates on a nonprofit or for-profit basis, any location or
293293 14 establishment that is licensed to operate video gaming
294294 15 terminals, and any other retail food establishment.
295295 16 "Sports lottery systems" means systems provided by the
296296 17 central system provider consisting of sports wagering
297297 18 products, risk management, operations, and support services.
298298 19 "Sports lottery terminal" means a terminal linked to the
299299 20 central system in which bills or coins are deposited or an
300300 21 electronic card is inserted in order to place wagers on a
301301 22 sports event and lottery offerings and includes sports
302302 23 wagering conducted over the Internet or through mobile
303303 24 applications or other digital platform.
304304 25 (b) Lottery games are a part of the private management
305305 26 agreement and competitive bidding process as defined in
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316316 1 Section 9.1 of the Illinois Lottery Law. The Department shall
317317 2 issue one central system provider license pursuant to an open
318318 3 and competitive bidding process that uses the following
319319 4 procedures:
320320 5 (1) The Department shall make applications for the
321321 6 central system provider license available to the public
322322 7 and allow a reasonable time for applicants to submit
323323 8 applications to the Department.
324324 9 (2) During the filing period for central system
325325 10 provider license applications, the Department may retain
326326 11 professional services to assist the Department in
327327 12 conducting the open and competitive bidding process.
328328 13 (3) After receiving all of the bid proposals, the
329329 14 Department shall open all of the proposals in a public
330330 15 forum and disclose the prospective central system provider
331331 16 names and venture partners, if any.
332332 17 (4) The Department shall summarize the terms of the
333333 18 bid proposals and may make this summary available to the
334334 19 public.
335335 20 (5) The Department shall evaluate the bid proposals
336336 21 within a reasonable time and select no more than 3 final
337337 22 applicants to make presentations of their bid proposals to
338338 23 the Department.
339339 24 (6) The final applicants shall make their
340340 25 presentations to the Department on the same day during an
341341 26 open session of the Department.
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352352 1 (7) As soon as practicable after the public
353353 2 presentations by the final applicants, the Department, in
354354 3 its discretion, may conduct further negotiations among the
355355 4 3 final applicants. At the conclusion of such
356356 5 negotiations, the Department shall select the winning bid.
357357 6 (8) Upon selection of the winning bid, the Department
358358 7 shall evaluate the winning bid within a reasonable period
359359 8 of time for licensee suitability in accordance with all
360360 9 applicable statutory and regulatory criteria.
361361 10 (9) If the winning bidder is unable or otherwise fails
362362 11 to consummate the transaction, (including if the
363363 12 Department determines that the winning bidder does not
364364 13 satisfy the suitability requirements), the Department may,
365365 14 on the same criteria, select from the remaining bidders.
366366 15 (10) The winning bidder shall pay $20,000,000 to the
367367 16 Department upon being issued the central system provider
368368 17 license.
369369 18 (c) Every sports lottery terminal offered in this State
370370 19 for play shall first be tested and approved pursuant to the
371371 20 rules of the Department, and each sports lottery terminal
372372 21 offered in this State for play shall conform to an approved
373373 22 model that shall be ready for play in this State within 90 days
374374 23 after the effective date of this amendatory Act of the 103rd
375375 24 General Assembly and any system testing dates designated by
376376 25 the Department. For the examination of sports lottery
377377 26 terminals and associated equipment as required by this
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388388 1 Section, the central lottery system provider may utilize the
389389 2 services of one or more independent outside testing
390390 3 laboratories that have been accredited by a national
391391 4 accreditation body and that, in the judgment of the
392392 5 Department, are qualified to perform such examinations. Every
393393 6 sports lottery terminal offered in this State for play must
394394 7 meet minimum standards set by an independent outside testing
395395 8 laboratory approved by the Department.
396396 9 (d) Sports During the first 360 days after the effective
397397 10 date of this Act, sport lottery terminals may be placed in any
398398 11 lottery no more than 2,500 Lottery retail location locations
399399 12 in the State. Sports lottery terminals may be placed in an
400400 13 additional 2,500 Lottery retail locations during the second
401401 14 year after the effective date of this Act.
402402 15 (e) A sports lottery terminal may not directly dispense
403403 16 coins, cash, tokens, or any other article of exchange or value
404404 17 except for receipt tickets. Tickets shall be dispensed by
405405 18 pressing the ticket dispensing button on the sports lottery
406406 19 terminal at the end of the placement of one's wager or wagers.
407407 20 The ticket shall indicate the total amount wagered, odds for
408408 21 each wager placed, and the cash award for each bet placed, the
409409 22 time of day in a 24-hour format showing hours and minutes, the
410410 23 date, the terminal serial number, the sequential number of the
411411 24 ticket, and an encrypted validation number from which the
412412 25 validity of the prize may be determined. The player shall turn
413413 26 in this ticket to the appropriate person at a lottery retailer
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424424 1 to receive the cash award.
425425 2 (f) No lottery retailer may cause or permit any person
426426 3 under the age of 21 years to use a sports lottery terminal or
427427 4 sports wagering application. A lottery retailer who knowingly
428428 5 causes or permits a person under the age of 21 years to use a
429429 6 sports lottery terminal or sports wagering application is
430430 7 guilty of a business offense and shall be fined an amount not
431431 8 to exceed $5,000.
432432 9 (g) A sports lottery terminal shall only accept any wagers
433433 10 as determined by rule by the Department parlay wagers and
434434 11 fixed odds parlay wagers. The payouts for the sports lottery
435435 12 program shall be as follows: The Department shall, by rule,
436436 13 establish the total amount, as a percentage, of all wagers
437437 14 placed that a lottery retailer may retain.
438438 15 (1) 80% or less of gross dollars played to be
439439 16 distributed as prizes and awards; this amount to be
440440 17 calculated as an average based on a 2-year anniversary
441441 18 date to be determined by the Department and guaranteed by
442442 19 the central lottery system provider; and
443443 20 (2) the remaining 20% gross gaming revenue, which is
444444 21 gross dollars played minus prizes paid, to be distributed
445445 22 as follows:
446446 23 (A) 8% to the central lottery system provider; and
447447 24 (B) except as provided in items (1) and (2), 12% to
448448 25 the State, of which the local municipality shall
449449 26 receive 0.5% if the State is responsible for the
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460460 1 retailer commissions and payment of the sports lottery
461461 2 terminal;
462462 3 (i) if a terminal operator under the Video
463463 4 Gaming Act purchases and distributes the sports
464464 5 lottery terminal, then 4% to the State, 3% to the
465465 6 lottery retailer, 4.5% to the licensed terminal
466466 7 operator, and 0.5% to the local municipality; or
467467 8 (ii) if a Lottery retail location purchases
468468 9 the sports lottery terminal, then 7.% goes to the
469469 10 lottery retailer and 4% to the State, of which the
470470 11 local municipality shall receive 0.5%.
471471 12 (h) The Department shall have jurisdiction over and shall
472472 13 supervise all lottery sports wagering operations governed by
473473 14 this Section. The Department shall implement and administer
474474 15 the lottery sports wagering program no later than June 30,
475475 16 2023. The Department shall have all powers necessary and
476476 17 proper to fully and effectively execute the provisions of this
477477 18 Section, including, but not limited to, the following:
478478 19 (1) To investigate applicants and determine the
479479 20 eligibility of applicants for licenses with a goal of
480480 21 advancing minority business opportunities including
481481 22 lottery retailer ownership of sports lottery terminals and
482482 23 to select among competing applicants the applicants which
483483 24 best serve the interests of the citizens of Illinois.
484484 25 (2) To have jurisdiction and supervision over all
485485 26 lottery sports wagering operations in this State.
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496496 1 (3) To adopt rules for the purpose of administering
497497 2 the provisions of this Section and to adopt rules and
498498 3 conditions under which all lottery sports wagering in the
499499 4 State shall be conducted. Such rules are to provide for
500500 5 the prevention of practices detrimental to the public
501501 6 interest and for the best interests of lottery sports
502502 7 wagering, including rules (i) regarding the inspection of
503503 8 such licensees necessary to operate a lottery retailer
504504 9 under any laws or rules applicable to licensees, (ii) to
505505 10 impose penalties for violations of the Act and its rules,
506506 11 and (iii) establishing standards for advertising lottery
507507 12 sports wagering, (iv) to effectuate policies that advance
508508 13 minority business ownership and participation in the
509509 14 sports lottery program, and (v) on apportionment of the
510510 15 total revenues accruing from the lottery sports wagering
511511 16 program for the purchase or lease of the hardware.
512512 17 (i) The Department shall adopt emergency rules to
513513 18 administer this Section in accordance with Section 5-45 of the
514514 19 Illinois Administrative Procedure Act. For the purposes of the
515515 20 Illinois Administrative Procedure Act, the General Assembly
516516 21 finds that the adoption of rules to implement this Section is
517517 22 deemed an emergency and necessary to the public interest,
518518 23 safety, and welfare.
519519 24 (j) For the privilege of operating lottery sports wagering
520520 25 under this Section, all proceeds minus net of proceeds
521521 26 returned to players shall be electronically transferred daily
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532532 1 or weekly, at the discretion of the Director of the Lottery,
533533 2 into the State Lottery Fund. After amounts owed to the central
534534 3 system provider and licensed agents, as determined by the
535535 4 Department, are paid from the moneys deposited into the State
536536 5 Lottery Fund under this subsection, the remainder shall be
537537 6 transferred on the 15th of each month to the Capital Projects
538538 7 Fund.
539539 8 (k) The Department shall be responsible for facilitating
540540 9 either the purchase or lease of all sports lottery terminals
541541 10 including opportunities for minority business lottery
542542 11 retailers to obtain suitable financing. The Department shall
543543 12 allow for any licensed video gambling terminal operator to
544544 13 purchase or lease the sports lottery terminals and also allow
545545 14 for a lottery retail location to own or lease the sports
546546 15 lottery terminals. In addition, a percentage of the revenue
547547 16 generated by the Department from this program shall be
548548 17 allocated to funding through low interest loans or guarantee
549549 18 of loans for equipment needed for minority-owned terminal
550550 19 operators. This Section is repealed on January 1, 2024.
551551 20 (Source: P.A. 101-31, eff. 6-28-19.)
552552 21 Section 20. The Prizes and Gifts Act is amended by
553553 22 changing Section 10 and by adding Sections 33 and 45 as
554554 23 follows:
555555 24 (815 ILCS 525/10)
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566566 1 Sec. 10. Definitions. As used in this Act:
567567 2 "Catalog seller" means an entity (and its subsidiaries) or
568568 3 a person at least 50% of whose annual revenues are derived from
569569 4 the sale of products sold in connection with the distribution
570570 5 of catalogs of at least 24 pages, which contain written
571571 6 descriptions or illustrations and sale prices for each item of
572572 7 merchandise and which are distributed in more than one state
573573 8 with a total annual distribution of at least 250,000.
574574 9 "Person" means a corporation, partnership, limited
575575 10 liability company, sole proprietorship, or natural person.
576576 11 "Prize" means a gift, award, or other item or service of
577577 12 value that is offered or awarded to a participant in a real or
578578 13 purported contest, competition, sweepstakes, scheme, plan, or
579579 14 other selection process that involves an element of chance.
580580 15 "Prize and gift kiosk" means a device that: (i) is used to
581581 16 promote the purchase of a bona fide product and offers or
582582 17 awards a prize, including cash, without requiring payment or
583583 18 purchase to participate in compliance with paragraph (12) of
584584 19 subsection (a) and paragraph (13) of subsection (b) of Section
585585 20 28-1 of the Criminal Code of 2012; (ii) contains a fill system
586586 21 which permits the operation of the device solely determined on
587587 22 a fee basis or the amount of revenue generated but does not
588588 23 include a system based on time, number of spins or spin
589589 24 equivalent, or other non-revenue based system and
590590 25 automatically ceases to operate upon the completion of a
591591 26 predetermined cycle; and (iii) is not connected directly or
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602602 1 indirectly to the Internet, either by cellular modem,
603603 2 hardwire, or wireless connection, or to a set of
604604 3 interconnected networked devices in order to participate in
605605 4 the game or contest or to receive or retrieve any data related
606606 5 to the device unless the connected device is a redemption
607607 6 vault that is for the sole purpose of redeeming a prize or
608608 7 award.
609609 8 "Retail value" of a prize means:
610610 9 (1) a price at which the sponsor can substantiate that
611611 10 a substantial quantity of the item or service offered as a
612612 11 prize has been sold to the public; or
613613 12 (2) if the sponsor is unable to satisfy the
614614 13 requirement in subdivision (1), no more than 3 times the
615615 14 amount the sponsor paid for the prize in a bona fide
616616 15 purchase from an unaffiliated seller.
617617 16 "Sponsor" means a person on whose behalf a promotion is
618618 17 conducted to promote or advertise goods, services, or property
619619 18 of that person. "Sponsor" includes a person who conducts a
620620 19 promotion on behalf of another sponsor.
621621 20 (Source: P.A. 92-436, eff. 1-1-02.)
622622 21 (815 ILCS 525/33 new)
623623 22 Sec. 33. Prize and gift kiosk operation.
624624 23 (a) It is unlawful for a person to operate on any premises
625625 24 a prize and gift kiosk that fails to meet the technical
626626 25 standard set in the definition.
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637637 1 (b) No prize and gift kiosk shall be connected directly or
638638 2 indirectly to the Internet, either by cellular modem, hard
639639 3 wire, or wireless connection, or to a set of interconnected
640640 4 networked devices in order to participate in the game or
641641 5 contest or to receive or retrieve any data related to the kiosk
642642 6 or device unless the connected device is a redemption vault.
643643 7 (c) It is unlawful for a prize and gift kiosk to offer the
644644 8 sale of anything other than a bona fide product.
645645 9 (d) It is unlawful to operate a prize and gift kiosk
646646 10 without a self-contained fill system which permits the
647647 11 operation of the device solely determined on a fee basis or the
648648 12 amount of revenue generated but does not include a system
649649 13 based on time, number of spins or spin equivalent, or other
650650 14 non-revenue based system and automatically ceases to operate
651651 15 upon the completion of a predetermined cycle.
652652 16 (815 ILCS 525/45 new)
653653 17 Sec. 45. Fee. A prize and gift kiosk shall be registered
654654 18 with the Department of Revenue under section 8i ("other
655655 19 devices") of the REG-1A form of the Coin Operated Amusement
656656 20 Device (COAD) accounts and remit the annual fee as set by the
657657 21 Department. Filing for a device other than a prize and gift
658658 22 kiosk as defined in this Act shall be deemed a violation of
659659 23 filing a false report or form with the State. Violators shall
660660 24 be subject to any and all penalties for such violation
661661 25 including, but not limited to, the seizure of the device. The
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672672 1 Department of Revenue and the Illinois Liquor Control
673673 2 Commission or its designee, including any public-private task
674674 3 force, shall have jurisdiction.
675675 4 Section 99. Effective date. This Act takes effect upon
676676 5 becoming law.
677677 HB3850- 20 -LRB103 29616 AMQ 56012 b 1 INDEX 2 Statutes amended in order of appearance 3 230 ILCS 10/5.5 new4 230 ILCS 40/355 230 ILCS 45/25-70 6 815 ILCS 525/10 HB3850- 20 -LRB103 29616 AMQ 56012 b HB3850 - 20 - LRB103 29616 AMQ 56012 b 1 INDEX 2 Statutes amended in order of appearance 3 230 ILCS 10/5.5 new 4 230 ILCS 40/35 5 230 ILCS 45/25-70 6 815 ILCS 525/10
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680680 1 INDEX
681681 2 Statutes amended in order of appearance
682682 3 230 ILCS 10/5.5 new
683683 4 230 ILCS 40/35
684684 5 230 ILCS 45/25-70
685685 6 815 ILCS 525/10
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697697 1 INDEX
698698 2 Statutes amended in order of appearance
699699 3 230 ILCS 10/5.5 new
700700 4 230 ILCS 40/35
701701 5 230 ILCS 45/25-70
702702 6 815 ILCS 525/10
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