Illinois 2023-2024 Regular Session

Illinois Senate Bill SB3710 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3710 Introduced 2/9/2024, by Sen. Lakesia Collins SYNOPSIS AS INTRODUCED: New Act5 ILCS 100/5-45.55 new230 ILCS 45/25-10720 ILCS 5/28-1 from Ch. 38, par. 28-1720 ILCS 5/28-3 from Ch. 38, par. 28-3 Creates the Fantasy Sports Consumer Protection Act. Provides that the Illinois Gaming Board may regulate the conduct of fantasy contest operators under the Act. Allows the Board to levy and collect fees, surcharges, civil penalties, and, on adjusted gross fantasy contest receipts imposed under the Act, monthly taxes, and identifies other powers and duties of the Board. Includes restrictions, including requiring licensing, of fantasy contest operators. Includes license requirements and requirements for allowable fantasy contests. Contains provisions relating to denial of a license, independent audits, reporting and investigation of prohibited conduct, taxes, compulsive gambling and voluntary self-exclusion, and supplier diversity goals for fantasy contest operators. Amends the Sports Wagering Act. Excludes fantasy contests from the definition of "sports wagering". Amends the Criminal Code of 2012. Provides that participants in fantasy contest wagering shall not be convicted of the offense of gambling when conducted in accordance with the Fantasy Sports Consumer Protection Act. Excludes any real estate, vehicle, boat, or any other property whatsoever used for the purposes of gambling under the Fantasy Sports Consumer Protection Act from the definition of "gambling place" under the offense of keeping a gambling place. Amends the Illinois Administrative Procedure Act. Grants the Illinois Gaming Board emergency rulemaking authority to implement the Fantasy Sports Consumer Protection Act. Effective immediately. LRB103 39331 AWJ 69492 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3710 Introduced 2/9/2024, by Sen. Lakesia Collins SYNOPSIS AS INTRODUCED: New Act5 ILCS 100/5-45.55 new230 ILCS 45/25-10720 ILCS 5/28-1 from Ch. 38, par. 28-1720 ILCS 5/28-3 from Ch. 38, par. 28-3 New Act 5 ILCS 100/5-45.55 new 230 ILCS 45/25-10 720 ILCS 5/28-1 from Ch. 38, par. 28-1 720 ILCS 5/28-3 from Ch. 38, par. 28-3 Creates the Fantasy Sports Consumer Protection Act. Provides that the Illinois Gaming Board may regulate the conduct of fantasy contest operators under the Act. Allows the Board to levy and collect fees, surcharges, civil penalties, and, on adjusted gross fantasy contest receipts imposed under the Act, monthly taxes, and identifies other powers and duties of the Board. Includes restrictions, including requiring licensing, of fantasy contest operators. Includes license requirements and requirements for allowable fantasy contests. Contains provisions relating to denial of a license, independent audits, reporting and investigation of prohibited conduct, taxes, compulsive gambling and voluntary self-exclusion, and supplier diversity goals for fantasy contest operators. Amends the Sports Wagering Act. Excludes fantasy contests from the definition of "sports wagering". Amends the Criminal Code of 2012. Provides that participants in fantasy contest wagering shall not be convicted of the offense of gambling when conducted in accordance with the Fantasy Sports Consumer Protection Act. Excludes any real estate, vehicle, boat, or any other property whatsoever used for the purposes of gambling under the Fantasy Sports Consumer Protection Act from the definition of "gambling place" under the offense of keeping a gambling place. Amends the Illinois Administrative Procedure Act. Grants the Illinois Gaming Board emergency rulemaking authority to implement the Fantasy Sports Consumer Protection Act. Effective immediately. LRB103 39331 AWJ 69492 b LRB103 39331 AWJ 69492 b A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3710 Introduced 2/9/2024, by Sen. Lakesia Collins SYNOPSIS AS INTRODUCED:
33 New Act5 ILCS 100/5-45.55 new230 ILCS 45/25-10720 ILCS 5/28-1 from Ch. 38, par. 28-1720 ILCS 5/28-3 from Ch. 38, par. 28-3 New Act 5 ILCS 100/5-45.55 new 230 ILCS 45/25-10 720 ILCS 5/28-1 from Ch. 38, par. 28-1 720 ILCS 5/28-3 from Ch. 38, par. 28-3
44 New Act
55 5 ILCS 100/5-45.55 new
66 230 ILCS 45/25-10
77 720 ILCS 5/28-1 from Ch. 38, par. 28-1
88 720 ILCS 5/28-3 from Ch. 38, par. 28-3
99 Creates the Fantasy Sports Consumer Protection Act. Provides that the Illinois Gaming Board may regulate the conduct of fantasy contest operators under the Act. Allows the Board to levy and collect fees, surcharges, civil penalties, and, on adjusted gross fantasy contest receipts imposed under the Act, monthly taxes, and identifies other powers and duties of the Board. Includes restrictions, including requiring licensing, of fantasy contest operators. Includes license requirements and requirements for allowable fantasy contests. Contains provisions relating to denial of a license, independent audits, reporting and investigation of prohibited conduct, taxes, compulsive gambling and voluntary self-exclusion, and supplier diversity goals for fantasy contest operators. Amends the Sports Wagering Act. Excludes fantasy contests from the definition of "sports wagering". Amends the Criminal Code of 2012. Provides that participants in fantasy contest wagering shall not be convicted of the offense of gambling when conducted in accordance with the Fantasy Sports Consumer Protection Act. Excludes any real estate, vehicle, boat, or any other property whatsoever used for the purposes of gambling under the Fantasy Sports Consumer Protection Act from the definition of "gambling place" under the offense of keeping a gambling place. Amends the Illinois Administrative Procedure Act. Grants the Illinois Gaming Board emergency rulemaking authority to implement the Fantasy Sports Consumer Protection Act. Effective immediately.
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1515 1 AN ACT concerning gaming.
1616 2 Be it enacted by the People of the State of Illinois,
1717 3 represented in the General Assembly:
1818 4 Section 1. Short title. This Act may be cited as the
1919 5 Fantasy Sports Consumer Protection Act.
2020 6 Section 5. Definitions. As used in this Act:
2121 7 "Adjusted gross fantasy contest receipts" means the amount
2222 8 equal to the total of all entry fees that a fantasy contest
2323 9 operator collects from all participants less only the total of
2424 10 all prizes paid out as prizes to all participants multiplied
2525 11 by the location percentage for this State.
2626 12 "Board" means the Illinois Gaming Board.
2727 13 "Entry fee" means a nonrefundable cash or cash equivalent
2828 14 that is paid by a participant and set in advance by a fantasy
2929 15 contest operator granting the participant the right to
3030 16 participate in a fantasy contest.
3131 17 "Fantasy contest" means an online fantasy or simulated
3232 18 game or contest of skill with an entry fee in which:
3333 19 (1) the values of all prizes offered to a winning
3434 20 participant are established and made known to the
3535 21 participant in advance of the contest;
3636 22 (2) all winning outcomes reflect the relative
3737 23 knowledge and skill of the participant;
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4141 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3710 Introduced 2/9/2024, by Sen. Lakesia Collins SYNOPSIS AS INTRODUCED:
4242 New Act5 ILCS 100/5-45.55 new230 ILCS 45/25-10720 ILCS 5/28-1 from Ch. 38, par. 28-1720 ILCS 5/28-3 from Ch. 38, par. 28-3 New Act 5 ILCS 100/5-45.55 new 230 ILCS 45/25-10 720 ILCS 5/28-1 from Ch. 38, par. 28-1 720 ILCS 5/28-3 from Ch. 38, par. 28-3
4343 New Act
4444 5 ILCS 100/5-45.55 new
4545 230 ILCS 45/25-10
4646 720 ILCS 5/28-1 from Ch. 38, par. 28-1
4747 720 ILCS 5/28-3 from Ch. 38, par. 28-3
4848 Creates the Fantasy Sports Consumer Protection Act. Provides that the Illinois Gaming Board may regulate the conduct of fantasy contest operators under the Act. Allows the Board to levy and collect fees, surcharges, civil penalties, and, on adjusted gross fantasy contest receipts imposed under the Act, monthly taxes, and identifies other powers and duties of the Board. Includes restrictions, including requiring licensing, of fantasy contest operators. Includes license requirements and requirements for allowable fantasy contests. Contains provisions relating to denial of a license, independent audits, reporting and investigation of prohibited conduct, taxes, compulsive gambling and voluntary self-exclusion, and supplier diversity goals for fantasy contest operators. Amends the Sports Wagering Act. Excludes fantasy contests from the definition of "sports wagering". Amends the Criminal Code of 2012. Provides that participants in fantasy contest wagering shall not be convicted of the offense of gambling when conducted in accordance with the Fantasy Sports Consumer Protection Act. Excludes any real estate, vehicle, boat, or any other property whatsoever used for the purposes of gambling under the Fantasy Sports Consumer Protection Act from the definition of "gambling place" under the offense of keeping a gambling place. Amends the Illinois Administrative Procedure Act. Grants the Illinois Gaming Board emergency rulemaking authority to implement the Fantasy Sports Consumer Protection Act. Effective immediately.
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5959 230 ILCS 45/25-10
6060 720 ILCS 5/28-1 from Ch. 38, par. 28-1
6161 720 ILCS 5/28-3 from Ch. 38, par. 28-3
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8080 1 (3) the participant assembles, owns, or manages a
8181 2 fictional entry or roster of actual professional or
8282 3 amateur athletes, in real-world sports events, or an
8383 4 organized video game competition that is regulated by a
8484 5 governing body and that is held between professional
8585 6 players who play individually or as teams;
8686 7 (4) a participant competes for prizes awarded by a
8787 8 fantasy contest operator based on terms and conditions
8888 9 published by the fantasy contest operator and made known
8989 10 to the participant in advance of the contest;
9090 11 (5) winning outcomes are determined solely by clearly
9191 12 established scoring criteria based on one or more
9292 13 statistical results of the performance of an individual
9393 14 athlete, including, but not limited to, a fantasy score;
9494 15 and
9595 16 (6) no winning outcome is entirely based on the score,
9696 17 point spread, or any performance of any single actual team
9797 18 or combination of teams or solely on any single
9898 19 performance of an individual athlete or player in any
9999 20 single actual event.
100100 21 "Fantasy contest" includes both contests wherein
101101 22 participants compete against each other and contests wherein
102102 23 only a single participant competes against a target score set
103103 24 by the fantasy contest operator. "Fantasy contest" does not
104104 25 include any fantasy contest without an entry fee.
105105 26 "Fantasy contest operator" means a person or entity that
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116116 1 offers fantasy contests to members of the public. "Fantasy
117117 2 contest operator" does not include an Internet service
118118 3 provider or a provider of mobile data services merely as a
119119 4 result of that entity's transporting general traffic that may
120120 5 include a fantasy contest and does not include a fantasy
121121 6 contest participant by virtue of doing any combination of the
122122 7 following: (i) setting house rules for a contest; (ii)
123123 8 assigning a salary or target score to any eligible athlete or
124124 9 player; (iii) accepting an entry fee from a fantasy contest
125125 10 participant; or (iv) awarding or disbursing prizes in
126126 11 conformance with this Act.
127127 12 "Location percentage" means the percentage rounded to the
128128 13 nearest 0.1% of the total entry fees collected from players
129129 14 located in this State, divided by the total entry fees
130130 15 collected from all players in the fantasy contest.
131131 16 "Participant" means an individual who participates in a
132132 17 fantasy contest offered by a fantasy contest operator.
133133 18 "Prohibited participant" means an individual who has
134134 19 self-excluded under Section 45 or an athlete, coach, referee,
135135 20 trainer, or team staff when there is direct involvement of the
136136 21 athlete, coach, referee, trainer, or staff; the athlete's or
137137 22 staff's team; or the athletes that the coach coaches or the
138138 23 trainer trains.
139139 24 "Qualified applicant" means an applicant for a license
140140 25 under this Act whose application meets the mandatory minimum
141141 26 qualification criteria as required by the Board.
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152152 1 Section 10. Board duties and powers.
153153 2 (a) The Board may regulate the conduct of fantasy contest
154154 3 operators under this Act.
155155 4 (b) The Board shall adopt any rules the Board considers
156156 5 necessary for the successful implementation, administration,
157157 6 and enforcement of this Act. The Board shall adopt rules no
158158 7 later than 180 days after the effective date of this Act. Rules
159159 8 proposed by the Board may be adopted as emergency rules under
160160 9 Section 5-45 of the Illinois Administrative Procedure Act.
161161 10 (c) The Board shall levy and collect all fees, surcharges,
162162 11 civil penalties, and, on adjusted gross fantasy contest
163163 12 receipts imposed under this Act, monthly taxes as follows:
164164 13 (1) All registration and renewal fees collected under
165165 14 this Act shall be deposited and distributed as follows:
166166 15 (A) 85% of fees shall be deposited into the State
167167 16 Gaming Fund and used for the administration of this
168168 17 Act; and
169169 18 (B) 15% of fees shall be paid, subject to
170170 19 appropriation by the General Assembly, to the
171171 20 Department of Human Services for administration of
172172 21 programs for the treatment of compulsive gambling.
173173 22 (2) All taxes collected under Section 40 shall be
174174 23 deposited into the Common School Fund.
175175 24 (3) All civil penalties levied as a direct result of
176176 25 violations of this Act, less any costs incurred by the
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187187 1 Board during the course of investigation which resulted in
188188 2 the civil penalty, shall be paid, subject to appropriation
189189 3 by the General Assembly, to the Department of Human
190190 4 Services for administration of programs for the treatment
191191 5 of compulsive gambling.
192192 6 (4) All other money collected from civil penalties
193193 7 shall be deposited or disbursed at the discretion of the
194194 8 Board.
195195 9 (d) The Board shall require fantasy contest operators to
196196 10 comply with the anti-money laundering standards, as defined by
197197 11 the federal Bank Secrecy Act of 1970 and the Anti-Money
198198 12 Laundering Act of 2020.
199199 13 (e) The Board shall verify that fantasy contest operators
200200 14 establish technical and operational measures to prevent
201201 15 underage participation in a fantasy contest.
202202 16 (f) The Board shall verify that fantasy contest operators
203203 17 deploy identity verification procedures, which may require the
204204 18 use of a reputable independent third party that is in the
205205 19 business of verifying an individual's personally identifiable
206206 20 information and can detect potential prohibited participants.
207207 21 (g) The Board shall verify that fantasy contest operators
208208 22 employ mechanisms on the operator's platform that are designed
209209 23 to detect and prevent unauthorized accounts and to detect and
210210 24 prevent fraud, money laundering, and collusion.
211211 25 (h) The Board shall require the use of geolocation
212212 26 technology to verify that a participant is not accessing the
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223223 1 platform from a restricted jurisdiction.
224224 2 (i) The Board shall adopt rules establishing compulsive
225225 3 and problem gambling standards for fantasy contest operators
226226 4 that are consistent with this Act.
227227 5 (j) The Board may exercise any other powers necessary to
228228 6 enforce the provisions of this Act that it regulates and the
229229 7 rules of the Board.
230230 8 (k) The Board and fantasy contest operator licensees may
231231 9 cooperate with investigations conducted by law enforcement
232232 10 agencies, including, but not limited to, providing and
233233 11 facilitating the provision of account-level entry and
234234 12 participation information.
235235 13 (l) A fantasy contest operator licensee shall make all
236236 14 reasonable efforts to promptly notify the Board of any
237237 15 information relating to:
238238 16 (1) a confirmed breach of the relevant sport's
239239 17 governing body's internal rules and codes of conduct
240240 18 pertaining to participation in real-money fantasy
241241 19 contests;
242242 20 (2) any conduct that corrupts any outcome related to a
243243 21 sports event or sports events for purposes of financial
244244 22 gain, including match fixing; and
245245 23 (3) confirmed illegal activities, including use of
246246 24 funds derived from illegal activity, entries to conceal or
247247 25 launder funds derived from illegal activity,
248248 26 multi-accounting, and using false identification.
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259259 1 Section 15. License.
260260 2 (a) Except as otherwise provided in this Section, a person
261261 3 may not offer fantasy contests in this State unless the person
262262 4 is licensed by the Board as a fantasy contest operator.
263263 5 (b) An applicant for a license issued under this Act shall
264264 6 submit an application to the Board in the form the Board
265265 7 requires. The applicant shall submit fingerprints for a
266266 8 national criminal history record check by a law enforcement
267267 9 agency. The fingerprints shall be furnished by the applicant's
268268 10 owners, officers, and directors (if a corporation), managers
269269 11 and members (if a limited liability company), and partners (if
270270 12 a partnership). The fingerprints shall be accompanied by a
271271 13 signed authorization for the release of information by the law
272272 14 enforcement agency. The Board may require additional
273273 15 background checks on licensees when they apply for license
274274 16 renewal, and an applicant convicted of a disqualifying offense
275275 17 shall not be licensed. This subsection does not require an
276276 18 applicant or individual who has submitted to a national
277277 19 criminal history record check in this State or any other state
278278 20 within the 12 months before submitting the application to
279279 21 resubmit to another criminal history record check if the
280280 22 applicant or individual submits the results of the previous
281281 23 criminal history record check and affirms that there has been
282282 24 no material change in the criminal history since the time of
283283 25 the criminal history record check.
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294294 1 (c) The information required by the Board shall include
295295 2 documentation of all of the following:
296296 3 (1) The name of the applicant.
297297 4 (2) The location of the applicant's principal place of
298298 5 business.
299299 6 (3) The applicant's contact information.
300300 7 (4) The applicant's social security number or, if
301301 8 applicable, the applicant's federal tax identification
302302 9 number.
303303 10 (5) The name and address of each individual that holds
304304 11 a 10% or more ownership interest in the applicant or in
305305 12 shares of the applicant.
306306 13 (6) The applicant's criminal record, if any, or, if
307307 14 the applicant is a business entity, on request, any
308308 15 criminal record of an individual who is a director,
309309 16 officer, or key employee of the applicant or any
310310 17 individual who has a 10% or more ownership interest in the
311311 18 applicant.
312312 19 (7) Any ownership interest that a director, officer,
313313 20 key employee, or individual owner of 10% or more of the
314314 21 applicant holds in a business that is or was a fantasy
315315 22 contest operator or similar entity in any jurisdiction.
316316 23 (8) An identification of any business in which an
317317 24 applicant or a director, officer, key employee, or
318318 25 individual owner of 10% or more of the applicant has an
319319 26 equity interest of 5% or more. If a business has been
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330330 1 identified under this paragraph, documentation must be
331331 2 provided showing the state in which the business is
332332 3 incorporated or registered, if applicable.
333333 4 (9) Whether an applicant, director, officer, key
334334 5 employee, or individual owner of 10% or more of the
335335 6 applicant has ever applied for or been granted any
336336 7 license, registration, or certificate issued by a
337337 8 licensing authority in this State or any other
338338 9 jurisdiction for a gaming activity.
339339 10 (10) Whether an applicant or a director, officer, key
340340 11 employee, or individual owner of 10% or more of the
341341 12 applicant has filed or been served with a complaint or
342342 13 other notice filed by a public body regarding the
343343 14 delinquency in payment of or dispute over filings
344344 15 concerning the payment of any tax required under federal,
345345 16 State, or local law, including the amount of tax, the type
346346 17 of tax, the taxing agency and the time periods involved.
347347 18 (11) Information sufficient to show, as determined by
348348 19 the Board, that the applicant can meet the requirements of
349349 20 procedures submitted by the applicant under the Act and
350350 21 under any rules adopted under this Act.
351351 22 (12) The Board may adopt rules to establish additional
352352 23 qualifications and requirements to preserve the integrity
353353 24 and security of fantasy contests in this State and to
354354 25 promote and maintain a competitive fantasy sports market.
355355 26 (d) On receipt of a completed application and the required
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366366 1 fee, the Board shall conduct the necessary background
367367 2 investigation to determine if the applicant meets the
368368 3 qualifications for licensure. On completion of the necessary
369369 4 background investigation, the Board shall either issue a
370370 5 license or deny the application. If the application for
371371 6 licensure is denied, a statement setting forth the grounds for
372372 7 denial shall be forwarded to the applicant together with all
373373 8 other documents relied on by the Board, to the extent allowed
374374 9 by law.
375375 10 Section 20. Fantasy contests.
376376 11 (a) Any fantasy contest conducted under this Act does not
377377 12 constitute gambling for any purpose, including under Article
378378 13 28 of the Criminal Code of 1961 or the Criminal Code of 2012.
379379 14 (b) Notwithstanding any provision of law to the contrary,
380380 15 the operation of fantasy contests is only lawful when
381381 16 conducted in accordance with the provisions of this Act.
382382 17 (c) A person participating in a fantasy contest under this
383383 18 Act shall be at least 19 years of age.
384384 19 (d) A licensee under this Act may only accept an entry from
385385 20 a person physically located in the State. A fantasy contest
386386 21 operator must use a geolocation system to ensure that a
387387 22 participant is physically present in the State when
388388 23 participating in the fantasy contest unless otherwise
389389 24 authorized by the Board.
390390 25 (e) This Act shall be construed liberally to promote the
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401401 1 general welfare of the public and integrity of the fantasy
402402 2 sports industry. However, the Board may not adopt rules
403403 3 limiting or regulating the rules or administration of an
404404 4 individual fantasy contest, the statistical makeup of a
405405 5 fantasy contest, or the digital platform of a fantasy contest
406406 6 operator.
407407 7 (f) No licensed fantasy contest operator shall be forced
408408 8 to surrender or terminate its license prior to the date of
409409 9 expiration of the license solely by virtue of a change in the
410410 10 rules adopted under this Act.
411411 11 Section 25. Issuance and denial of license.
412412 12 (a) The initial license fee for a fantasy contest operator
413413 13 that operated in Illinois before the effective date of this
414414 14 Act shall be 8% of its adjusted gross fantasy contest receipts
415415 15 from the preceding calendar year or $1,000,000, whichever is
416416 16 less. The initial license fee for a fantasy contest operator
417417 17 that did not operate in Illinois for at least 12 months before
418418 18 the effective date of this Act shall be $10,000, except, if a
419419 19 fantasy contest operator has 10,000 or more fantasy contest
420420 20 participants in Illinois with an active account who
421421 21 participated in at least one fantasy contest with an entry
422422 22 fee, then the fantasy contest operator shall notify the Board
423423 23 and remit an application fee in the amount of $990,000 within
424424 24 10 days of notifying the Board.
425425 25 (b) A fantasy contest operator that was offering contests
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436436 1 to persons located in Illinois before the effective date of
437437 2 this Act may continue to offer contests to persons located in
438438 3 Illinois until the fantasy contest operator's application for
439439 4 licensure has been approved or denied under this Act if the
440440 5 fantasy contest operator files an application for licensure
441441 6 with the Board within 90 days after the adoption of rules to
442442 7 effectuate this Act.
443443 8 (c) Licenses issued by the Board shall remain in effect
444444 9 for 4 years. The Board shall establish a process for renewal
445445 10 with a renewal fee being 1% of the adjusted gross fantasy
446446 11 contests receipts for the preceding 4 years.
447447 12 (d) A fantasy contest operator that allows its license to
448448 13 lapse, without requesting an extension of time to file, shall
449449 14 resubmit an initial application. An extension may be granted
450450 15 by the Board upon receipt of a written request.
451451 16 (e) A fantasy contest operator applying for a license or
452452 17 renewal of a license may operate during the application period
453453 18 unless the Board has reasonable cause to believe that the
454454 19 fantasy contest operator is or may be in violation of the
455455 20 provisions of this Act and the Board requires the fantasy
456456 21 contest operator to suspend the operation of any fantasy
457457 22 contest until the license or renewal of a license is issued.
458458 23 Section 30. Independent audits.
459459 24 (a) As part of its submission for licensure or renewal, an
460460 25 applicant shall: (i) contract with a certified public
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471471 1 accountant to conduct an independent audit, consistent with
472472 2 generally accepted accounting principles; (ii) annually
473473 3 contract with a testing laboratory recognized by the Board to
474474 4 verify compliance with the provisions of this Act; and (iii)
475475 5 submit to the Board a copy of the audit report and a report of
476476 6 the testing laboratory.
477477 7 (b) An initial applicant is not required to submit an
478478 8 audit report and report of the testing laboratory until the 24
479479 9 months following the issuance of a licensee to the licensee.
480480 10 Section 35. Reporting prohibited conduct; investigations
481481 11 of prohibited conduct.
482482 12 (a) The Board shall investigate all reasonable allegations
483483 13 of prohibited conduct and refer any allegations it deems
484484 14 credible to the appropriate law enforcement entity.
485485 15 (b) The identity of any reporting person shall remain
486486 16 confidential unless that person authorizes disclosure of the
487487 17 person's identity or until the allegation of prohibited
488488 18 conduct is referred to law enforcement.
489489 19 (c) If the Board receives a complaint of prohibited
490490 20 conduct by an athlete, the Board shall notify the appropriate
491491 21 sports governing body of the athlete to review the complaint
492492 22 as provided by rule of the Board.
493493 23 (d) The Board shall adopt rules governing investigations
494494 24 of prohibited conduct and referrals to law enforcement
495495 25 entities.
496496
497497
498498
499499
500500
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503503
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505505 SB3710 - 14 - LRB103 39331 AWJ 69492 b
506506 1 Section 40. Tax. Beginning on July 1, 2025, for the
507507 2 privilege of holding a license to operate fantasy contests
508508 3 under this Act, this State shall impose and collect a tax at a
509509 4 rate of at least 10% but not more than 15%, as determined by
510510 5 rule of the Board, of the fantasy contest operator's adjusted
511511 6 gross fantasy contests receipts. The accrual method of
512512 7 accounting shall be used for purposes of calculating the
513513 8 amount of the tax owed by the licensee. The fantasy contest
514514 9 operator shall submit to the Board, on or before the last day
515515 10 of each calendar month, a return indicating the amount of tax
516516 11 due under this Section for the previous calendar month as well
517517 12 as any other information the Board shall require by rule and
518518 13 shall remit to the Board payment of the tax due under this
519519 14 Section with that return.
520520 15 Section 45. Compulsive gaming; voluntary self-exclusion.
521521 16 (a) Each licensee shall include a statement regarding
522522 17 obtaining assistance with real-money gaming problems on the
523523 18 licensee's portal, website, or computer or mobile application
524524 19 and on all marketing materials and advertisements of the
525525 20 licensee.
526526 21 (b) A resident, or nonresident if allowed to participate
527527 22 in fantasy contests, may voluntarily prohibit the resident or
528528 23 nonresident from establishing a fantasy contest account with a
529529 24 fantasy contest operator under this Act. The Board shall
530530
531531
532532
533533
534534
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536536
537537
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539539 SB3710 - 15 - LRB103 39331 AWJ 69492 b
540540 1 incorporate the voluntary self-exclusion program for fantasy
541541 2 contests into any existing self-exclusion program that it
542542 3 operates on the effective date of this Act.
543543 4 (c) If a self-excluded person participates in a fantasy
544544 5 contest, the fantasy contest operator shall report to the
545545 6 Board, at a minimum, the name of the self-excluded person, the
546546 7 date of participation, the amount or value of any money,
547547 8 prizes, or awards forfeited, if any, and any other action
548548 9 taken.
549549 10 (d) A fantasy contest operator may not pay any prize or
550550 11 award to a person who is on the Board's self-exclusion list.
551551 12 Any prize or award won by a person on the self-exclusion list
552552 13 is forfeited and shall be donated by the fantasy contest
553553 14 operator to the problem gaming charities or programs as
554554 15 identified and directed by the Board on a quarterly basis by
555555 16 the twenty-fifth day of the following month.
556556 17 (e) A fantasy contest operator shall develop and maintain
557557 18 a program to mitigate compulsive play and curtail compulsive
558558 19 play, which may be in conjunction with the Board.
559559 20 Section 50. Supplier diversity goals for fantasy contest
560560 21 operators.
561561 22 (a) The Board shall require licensees under this Act to
562562 23 submit an annual report, in a searchable Adobe PDF format, on
563563 24 all procurement goals and actual spending for businesses owned
564564 25 by women, minorities, veterans, tribal and indigenous persons,
565565
566566
567567
568568
569569
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571571
572572
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574574 SB3710 - 16 - LRB103 39331 AWJ 69492 b
575575 1 and persons with disabilities and for all small business
576576 2 enterprises in the previous calendar year. These goals shall
577577 3 be expressed as a percentage of the total work performed by the
578578 4 entity submitting the report, and the actual spending for all
579579 5 businesses owned by women, minorities, veterans, tribal and
580580 6 indigenous persons, and persons with disabilities and for all
581581 7 small business enterprises shall also be expressed as a
582582 8 percentage of the total work performed by the entity
583583 9 submitting the report. The initial report shall be due one
584584 10 year after the effective date of this Act and once every 2
585585 11 years thereafter.
586586 12 (b) Each licensee in its annual report shall include the
587587 13 following information:
588588 14 (1) an explanation of the plan for the next year to
589589 15 increase participation;
590590 16 (2) an explanation of the plan to increase the goals;
591591 17 (3) the areas of procurement each licensee shall be
592592 18 actively seeking more participation in the next year;
593593 19 (4) an outline of the plan to alert and encourage
594594 20 potential vendors in that area to seek business from the
595595 21 licensee;
596596 22 (5) an explanation of the challenges faced in finding
597597 23 quality vendors and offer any suggestions for what the
598598 24 Board could do to be helpful to identify those vendors;
599599 25 (6) a list of the certifications the licensee
600600 26 recognizes;
601601
602602
603603
604604
605605
606606 SB3710 - 16 - LRB103 39331 AWJ 69492 b
607607
608608
609609 SB3710- 17 -LRB103 39331 AWJ 69492 b SB3710 - 17 - LRB103 39331 AWJ 69492 b
610610 SB3710 - 17 - LRB103 39331 AWJ 69492 b
611611 1 (7) the point of contact for any potential vendor who
612612 2 wishes to do business with the licensee and explain the
613613 3 process for a vendor to enroll with the licensee as a
614614 4 businesses owned by women, minorities, veterans, tribal
615615 5 and indigenous persons, or persons with disabilities; and
616616 6 (8) any particular success stories to encourage other
617617 7 licensees to emulate best practices.
618618 8 (c) Each annual report shall include as much
619619 9 State-specific data as possible. If the submitting entity does
620620 10 not submit State-specific data, then the licensee shall
621621 11 include any national data it does have and explain why it could
622622 12 not submit State-specific data and how it intends to do so in
623623 13 future reports, if possible.
624624 14 (d) Each annual report shall include the rules,
625625 15 regulations, and definitions used for the procurement goals in
626626 16 the licensee's annual report.
627627 17 Section 100. The Illinois Administrative Procedure Act is
628628 18 amended by adding Section 5-45.55 as follows:
629629 19 (5 ILCS 100/5-45.55 new)
630630 20 Sec. 5-45.55. Emergency rulemaking; Illinois Gaming Board.
631631 21 To provide for the expeditious and timely implementation of
632632 22 this amendatory Act of the 103rd General Assembly, emergency
633633 23 rules implementing the Fantasy Sports Consumer Protection Act
634634 24 may be adopted in accordance with Section 5-45 by the Illinois
635635
636636
637637
638638
639639
640640 SB3710 - 17 - LRB103 39331 AWJ 69492 b
641641
642642
643643 SB3710- 18 -LRB103 39331 AWJ 69492 b SB3710 - 18 - LRB103 39331 AWJ 69492 b
644644 SB3710 - 18 - LRB103 39331 AWJ 69492 b
645645 1 Gaming. The adoption of emergency rules authorized by Section
646646 2 5-45 and this Section is deemed to be necessary for the public
647647 3 interest, safety, and welfare.
648648 4 This Section is repealed one year after the effective date
649649 5 of this amendatory Act of the 103rd General Assembly.
650650 6 Section 105. The Sports Wagering Act is amended by
651651 7 changing Section 25-10 as follows:
652652 8 (230 ILCS 45/25-10)
653653 9 Sec. 25-10. Definitions. As used in this Act:
654654 10 "Adjusted gross sports wagering receipts" means a master
655655 11 sports wagering licensee's gross sports wagering receipts,
656656 12 less winnings paid to wagerers in such games.
657657 13 "Athlete" means any current or former professional athlete
658658 14 or collegiate athlete.
659659 15 "Board" means the Illinois Gaming Board.
660660 16 "Covered persons" includes athletes; umpires, referees,
661661 17 and officials; personnel associated with clubs, teams,
662662 18 leagues, and athletic associations; medical professionals
663663 19 (including athletic trainers) who provide services to athletes
664664 20 and players; and the family members and associates of these
665665 21 persons where required to serve the purposes of this Act.
666666 22 "Department" means the Department of the Lottery.
667667 23 "Gaming facility" means a facility at which gambling
668668 24 operations are conducted under the Illinois Gambling Act,
669669
670670
671671
672672
673673
674674 SB3710 - 18 - LRB103 39331 AWJ 69492 b
675675
676676
677677 SB3710- 19 -LRB103 39331 AWJ 69492 b SB3710 - 19 - LRB103 39331 AWJ 69492 b
678678 SB3710 - 19 - LRB103 39331 AWJ 69492 b
679679 1 pari-mutuel wagering is conducted under the Illinois Horse
680680 2 Racing Act of 1975, or sports wagering is conducted under this
681681 3 Act.
682682 4 "Official league data" means statistics, results,
683683 5 outcomes, and other data related to a sports event obtained
684684 6 pursuant to an agreement with the relevant sports governing
685685 7 body, or an entity expressly authorized by the sports
686686 8 governing body to provide such information to licensees, that
687687 9 authorizes the use of such data for determining the outcome of
688688 10 tier 2 sports wagers on such sports events.
689689 11 "Organization licensee" has the meaning given to that term
690690 12 in the Illinois Horse Racing Act of 1975.
691691 13 "Owners licensee" means the holder of an owners license
692692 14 under the Illinois Gambling Act.
693693 15 "Person" means an individual, partnership, committee,
694694 16 association, corporation, or any other organization or group
695695 17 of persons.
696696 18 "Personal biometric data" means an athlete's information
697697 19 derived from DNA, heart rate, blood pressure, perspiration
698698 20 rate, internal or external body temperature, hormone levels,
699699 21 glucose levels, hydration levels, vitamin levels, bone
700700 22 density, muscle density, and sleep patterns.
701701 23 "Prohibited conduct" includes any statement, action, and
702702 24 other communication intended to influence, manipulate, or
703703 25 control a betting outcome of a sporting contest or of any
704704 26 individual occurrence or performance in a sporting contest in
705705
706706
707707
708708
709709
710710 SB3710 - 19 - LRB103 39331 AWJ 69492 b
711711
712712
713713 SB3710- 20 -LRB103 39331 AWJ 69492 b SB3710 - 20 - LRB103 39331 AWJ 69492 b
714714 SB3710 - 20 - LRB103 39331 AWJ 69492 b
715715 1 exchange for financial gain or to avoid financial or physical
716716 2 harm. "Prohibited conduct" includes statements, actions, and
717717 3 communications made to a covered person by a third party, such
718718 4 as a family member or through social media. "Prohibited
719719 5 conduct" does not include statements, actions, or
720720 6 communications made or sanctioned by a team or sports
721721 7 governing body.
722722 8 "Qualified applicant" means an applicant for a license
723723 9 under this Act whose application meets the mandatory minimum
724724 10 qualification criteria as required by the Board.
725725 11 "Sporting contest" means a sports event or game on which
726726 12 the State allows sports wagering to occur under this Act.
727727 13 "Sports event" means a professional sport or athletic
728728 14 event, a collegiate sport or athletic event, a motor race
729729 15 event, or any other event or competition of relative skill
730730 16 authorized by the Board under this Act.
731731 17 "Sports facility" means a facility that hosts sports
732732 18 events and holds a seating capacity greater than 17,000
733733 19 persons, except in a municipality with a population of more
734734 20 than 1,000,000, a seating capacity greater than 10,000
735735 21 persons.
736736 22 "Sports governing body" means the organization that
737737 23 prescribes final rules and enforces codes of conduct with
738738 24 respect to a sports event and participants therein.
739739 25 "Sports wagering" means accepting wagers on sports events
740740 26 or portions of sports events, or on the individual performance
741741
742742
743743
744744
745745
746746 SB3710 - 20 - LRB103 39331 AWJ 69492 b
747747
748748
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750750 SB3710 - 21 - LRB103 39331 AWJ 69492 b
751751 1 statistics of athletes in a sports event or combination of
752752 2 sports events, by any system or method of wagering, including,
753753 3 but not limited to, in person or over the Internet through
754754 4 websites and on mobile devices. "Sports wagering" includes,
755755 5 but is not limited to, single-game bets, teaser bets, parlays,
756756 6 over-under, moneyline, pools, exchange wagering, in-game
757757 7 wagering, in-play bets, proposition bets, and straight bets.
758758 8 "Sports wagering" does not include fantasy contests as that
759759 9 term is defined in Section 5 of the Fantasy Sports Consumer
760760 10 Protection Act.
761761 11 "Sports wagering account" means a financial record
762762 12 established by a master sports wagering licensee for an
763763 13 individual patron in which the patron may deposit and withdraw
764764 14 funds for sports wagering and other authorized purchases and
765765 15 to which the master sports wagering licensee may credit
766766 16 winnings or other amounts due to that patron or authorized by
767767 17 that patron.
768768 18 "Tier 1 sports wager" means a sports wager that is
769769 19 determined solely by the final score or final outcome of the
770770 20 sports event and is placed before the sports event has begun.
771771 21 "Tier 2 sports wager" means a sports wager that is not a
772772 22 tier 1 sports wager.
773773 23 "Wager" means a sum of money or thing of value risked on an
774774 24 uncertain occurrence.
775775 25 "Winning bidder" means a qualified applicant for a master
776776 26 sports wagering license chosen through the competitive
777777
778778
779779
780780
781781
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783783
784784
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786786 SB3710 - 22 - LRB103 39331 AWJ 69492 b
787787 1 selection process under Section 25-45.
788788 2 (Source: P.A. 101-31, eff. 6-28-19; 102-689, eff. 12-17-21.)
789789 3 Section 110. The Criminal Code of 2012 is amended by
790790 4 changing Sections 28-1 and 28-3 as follows:
791791 5 (720 ILCS 5/28-1) (from Ch. 38, par. 28-1)
792792 6 Sec. 28-1. Gambling.
793793 7 (a) A person commits gambling when he or she:
794794 8 (1) knowingly plays a game of chance or skill for
795795 9 money or other thing of value, unless excepted in
796796 10 subsection (b) of this Section;
797797 11 (2) knowingly makes a wager upon the result of any
798798 12 game, contest, or any political nomination, appointment or
799799 13 election;
800800 14 (3) knowingly operates, keeps, owns, uses, purchases,
801801 15 exhibits, rents, sells, bargains for the sale or lease of,
802802 16 manufactures or distributes any gambling device;
803803 17 (4) contracts to have or give himself or herself or
804804 18 another the option to buy or sell, or contracts to buy or
805805 19 sell, at a future time, any grain or other commodity
806806 20 whatsoever, or any stock or security of any company, where
807807 21 it is at the time of making such contract intended by both
808808 22 parties thereto that the contract to buy or sell, or the
809809 23 option, whenever exercised, or the contract resulting
810810 24 therefrom, shall be settled, not by the receipt or
811811
812812
813813
814814
815815
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817817
818818
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820820 SB3710 - 23 - LRB103 39331 AWJ 69492 b
821821 1 delivery of such property, but by the payment only of
822822 2 differences in prices thereof; however, the issuance,
823823 3 purchase, sale, exercise, endorsement or guarantee, by or
824824 4 through a person registered with the Secretary of State
825825 5 pursuant to Section 8 of the Illinois Securities Law of
826826 6 1953, or by or through a person exempt from such
827827 7 registration under said Section 8, of a put, call, or
828828 8 other option to buy or sell securities which have been
829829 9 registered with the Secretary of State or which are exempt
830830 10 from such registration under Section 3 of the Illinois
831831 11 Securities Law of 1953 is not gambling within the meaning
832832 12 of this paragraph (4);
833833 13 (5) knowingly owns or possesses any book, instrument
834834 14 or apparatus by means of which bets or wagers have been, or
835835 15 are, recorded or registered, or knowingly possesses any
836836 16 money which he has received in the course of a bet or
837837 17 wager;
838838 18 (6) knowingly sells pools upon the result of any game
839839 19 or contest of skill or chance, political nomination,
840840 20 appointment or election;
841841 21 (7) knowingly sets up or promotes any lottery or
842842 22 sells, offers to sell or transfers any ticket or share for
843843 23 any lottery;
844844 24 (8) knowingly sets up or promotes any policy game or
845845 25 sells, offers to sell or knowingly possesses or transfers
846846 26 any policy ticket, slip, record, document or other similar
847847
848848
849849
850850
851851
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853853
854854
855855 SB3710- 24 -LRB103 39331 AWJ 69492 b SB3710 - 24 - LRB103 39331 AWJ 69492 b
856856 SB3710 - 24 - LRB103 39331 AWJ 69492 b
857857 1 device;
858858 2 (9) knowingly drafts, prints or publishes any lottery
859859 3 ticket or share, or any policy ticket, slip, record,
860860 4 document or similar device, except for such activity
861861 5 related to lotteries, bingo games and raffles authorized
862862 6 by and conducted in accordance with the laws of Illinois
863863 7 or any other state or foreign government;
864864 8 (10) knowingly advertises any lottery or policy game,
865865 9 except for such activity related to lotteries, bingo games
866866 10 and raffles authorized by and conducted in accordance with
867867 11 the laws of Illinois or any other state;
868868 12 (11) knowingly transmits information as to wagers,
869869 13 betting odds, or changes in betting odds by telephone,
870870 14 telegraph, radio, semaphore or similar means; or knowingly
871871 15 installs or maintains equipment for the transmission or
872872 16 receipt of such information; except that nothing in this
873873 17 subdivision (11) prohibits transmission or receipt of such
874874 18 information for use in news reporting of sporting events
875875 19 or contests; or
876876 20 (12) knowingly establishes, maintains, or operates an
877877 21 Internet site that permits a person to play a game of
878878 22 chance or skill for money or other thing of value by means
879879 23 of the Internet or to make a wager upon the result of any
880880 24 game, contest, political nomination, appointment, or
881881 25 election by means of the Internet. This item (12) does not
882882 26 apply to activities referenced in items (6), (6.1), (8),
883883
884884
885885
886886
887887
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889889
890890
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893893 1 (8.1), and (15), and (16) of subsection (b) of this
894894 2 Section.
895895 3 (b) Participants in any of the following activities shall
896896 4 not be convicted of gambling:
897897 5 (1) Agreements to compensate for loss caused by the
898898 6 happening of chance including without limitation contracts
899899 7 of indemnity or guaranty and life or health or accident
900900 8 insurance.
901901 9 (2) Offers of prizes, award or compensation to the
902902 10 actual contestants in any bona fide contest for the
903903 11 determination of skill, speed, strength or endurance or to
904904 12 the owners of animals or vehicles entered in such contest.
905905 13 (3) Pari-mutuel betting as authorized by the law of
906906 14 this State.
907907 15 (4) Manufacture of gambling devices, including the
908908 16 acquisition of essential parts therefor and the assembly
909909 17 thereof, for transportation in interstate or foreign
910910 18 commerce to any place outside this State when such
911911 19 transportation is not prohibited by any applicable Federal
912912 20 law; or the manufacture, distribution, or possession of
913913 21 video gaming terminals, as defined in the Video Gaming
914914 22 Act, by manufacturers, distributors, and terminal
915915 23 operators licensed to do so under the Video Gaming Act.
916916 24 (5) The game commonly known as "bingo", when conducted
917917 25 in accordance with the Bingo License and Tax Act.
918918 26 (6) Lotteries when conducted by the State of Illinois
919919
920920
921921
922922
923923
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925925
926926
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928928 SB3710 - 26 - LRB103 39331 AWJ 69492 b
929929 1 in accordance with the Illinois Lottery Law. This
930930 2 exemption includes any activity conducted by the
931931 3 Department of Revenue to sell lottery tickets pursuant to
932932 4 the provisions of the Illinois Lottery Law and its rules.
933933 5 (6.1) The purchase of lottery tickets through the
934934 6 Internet for a lottery conducted by the State of Illinois
935935 7 under the program established in Section 7.12 of the
936936 8 Illinois Lottery Law.
937937 9 (7) Possession of an antique slot machine that is
938938 10 neither used nor intended to be used in the operation or
939939 11 promotion of any unlawful gambling activity or enterprise.
940940 12 For the purpose of this subparagraph (b)(7), an antique
941941 13 slot machine is one manufactured 25 years ago or earlier.
942942 14 (8) Raffles and poker runs when conducted in
943943 15 accordance with the Raffles and Poker Runs Act.
944944 16 (8.1) The purchase of raffle chances for a raffle
945945 17 conducted in accordance with the Raffles and Poker Runs
946946 18 Act.
947947 19 (9) Charitable games when conducted in accordance with
948948 20 the Charitable Games Act.
949949 21 (10) Pull tabs and jar games when conducted under the
950950 22 Illinois Pull Tabs and Jar Games Act.
951951 23 (11) Gambling games when authorized by the Illinois
952952 24 Gambling Act.
953953 25 (12) Video gaming terminal games at a licensed
954954 26 establishment, licensed truck stop establishment, licensed
955955
956956
957957
958958
959959
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961961
962962
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964964 SB3710 - 27 - LRB103 39331 AWJ 69492 b
965965 1 large truck stop establishment, licensed fraternal
966966 2 establishment, or licensed veterans establishment when
967967 3 conducted in accordance with the Video Gaming Act.
968968 4 (13) Games of skill or chance where money or other
969969 5 things of value can be won but no payment or purchase is
970970 6 required to participate.
971971 7 (14) Savings promotion raffles authorized under
972972 8 Section 5g of the Illinois Banking Act, Section 7008 of
973973 9 the Savings Bank Act, Section 42.7 of the Illinois Credit
974974 10 Union Act, Section 5136B of the National Bank Act (12
975975 11 U.S.C. 25a), or Section 4 of the Home Owners' Loan Act (12
976976 12 U.S.C. 1463).
977977 13 (15) Sports wagering when conducted in accordance with
978978 14 the Sports Wagering Act.
979979 15 (16) Fantasy contest wagering when conducted in
980980 16 accordance with the Fantasy Sports Consumer Protection
981981 17 Act.
982982 18 (c) Sentence.
983983 19 Gambling is a Class A misdemeanor. A second or subsequent
984984 20 conviction under subsections (a)(3) through (a)(12), is a
985985 21 Class 4 felony.
986986 22 (d) Circumstantial evidence.
987987 23 In prosecutions under this Section circumstantial evidence
988988 24 shall have the same validity and weight as in any criminal
989989 25 prosecution.
990990 26 (Source: P.A. 101-31, Article 25, Section 25-915, eff.
991991
992992
993993
994994
995995
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997997
998998
999999 SB3710- 28 -LRB103 39331 AWJ 69492 b SB3710 - 28 - LRB103 39331 AWJ 69492 b
10001000 SB3710 - 28 - LRB103 39331 AWJ 69492 b
10011001 1 6-28-19; 101-31, Article 35, Section 35-80, eff. 6-28-19;
10021002 2 101-109, eff. 7-19-19; 102-558, eff. 8-20-21.)
10031003 3 (720 ILCS 5/28-3) (from Ch. 38, par. 28-3)
10041004 4 Sec. 28-3. Keeping a gambling place. A "gambling place" is
10051005 5 any real estate, vehicle, boat, or any other property
10061006 6 whatsoever used for the purposes of gambling other than
10071007 7 gambling conducted in the manner authorized by the Illinois
10081008 8 Gambling Act, the Sports Wagering Act, or the Video Gaming
10091009 9 Act, or the Fantasy Sports Consumer Protection Act. Any person
10101010 10 who knowingly permits any premises or property owned or
10111011 11 occupied by him or under his control to be used as a gambling
10121012 12 place commits a Class A misdemeanor. Each subsequent offense
10131013 13 is a Class 4 felony. When any premises is determined by the
10141014 14 circuit court to be a gambling place:
10151015 15 (a) Such premises is a public nuisance and may be
10161016 16 proceeded against as such, and
10171017 17 (b) All licenses, permits or certificates issued by
10181018 18 the State of Illinois or any subdivision or public agency
10191019 19 thereof authorizing the serving of food or liquor on such
10201020 20 premises shall be void; and no license, permit or
10211021 21 certificate so cancelled shall be reissued for such
10221022 22 premises for a period of 60 days thereafter; nor shall any
10231023 23 person convicted of keeping a gambling place be reissued
10241024 24 such license for one year from his conviction and, after a
10251025 25 second conviction of keeping a gambling place, any such
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10361036 1 person shall not be reissued such license, and
10371037 2 (c) Such premises of any person who knowingly permits
10381038 3 thereon a violation of any Section of this Article shall
10391039 4 be held liable for, and may be sold to pay any unsatisfied
10401040 5 judgment that may be recovered and any unsatisfied fine
10411041 6 that may be levied under any Section of this Article.
10421042 7 (Source: P.A. 101-31, Article 25, Section 25-915, eff.
10431043 8 6-28-19; 101-31, Article 35, Section 35-80, eff. 6-28-19;
10441044 9 102-558, eff. 8-20-21.)
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