104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1963 Introduced 2/6/2025, by Sen. Cristina Castro SYNOPSIS AS INTRODUCED: New Act5 ILCS 100/5-45.65 new Creates the Internet Gaming Act. Authorizes an Internet gaming operator to offer Internet gaming in accordance with the provisions of the Act. Provides that Internet gaming shall only be offered by an Internet gaming license or an Internet management services provider that has contracted with an Internet gaming licensee. Provides that an Internet gaming licensee shall offer no more than 3 individually branded Internet gaming skins. Provides that an Internet management services provider may conduct Internet gaming on its own Internet gaming platform pursuant to the agreement between the provider and an Internet gaming licensee and in accordance with the rules of the Board and the provisions of the Act. Includes provisions for: requirements of an Internet gaming platform; Internet waging accounts; license requirements; age verification, location, and responsible gaming; diversity goals in procurement and spending by Internet gaming licensees; acceptance of out-of-state wagers; and limitations on home rule units. Provides that a 25% privilege tax is imposed on Internet gaming to be deposited into the State Gaming Fund. Authorizes the adoption of emergency rules to implement the Act and makes conforming changes in the Illinois Administrative Procedure Act. Effective immediately. LRB104 08373 LNS 18424 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1963 Introduced 2/6/2025, by Sen. Cristina Castro SYNOPSIS AS INTRODUCED: New Act5 ILCS 100/5-45.65 new New Act 5 ILCS 100/5-45.65 new Creates the Internet Gaming Act. Authorizes an Internet gaming operator to offer Internet gaming in accordance with the provisions of the Act. Provides that Internet gaming shall only be offered by an Internet gaming license or an Internet management services provider that has contracted with an Internet gaming licensee. Provides that an Internet gaming licensee shall offer no more than 3 individually branded Internet gaming skins. Provides that an Internet management services provider may conduct Internet gaming on its own Internet gaming platform pursuant to the agreement between the provider and an Internet gaming licensee and in accordance with the rules of the Board and the provisions of the Act. Includes provisions for: requirements of an Internet gaming platform; Internet waging accounts; license requirements; age verification, location, and responsible gaming; diversity goals in procurement and spending by Internet gaming licensees; acceptance of out-of-state wagers; and limitations on home rule units. Provides that a 25% privilege tax is imposed on Internet gaming to be deposited into the State Gaming Fund. Authorizes the adoption of emergency rules to implement the Act and makes conforming changes in the Illinois Administrative Procedure Act. Effective immediately. LRB104 08373 LNS 18424 b LRB104 08373 LNS 18424 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1963 Introduced 2/6/2025, by Sen. Cristina Castro SYNOPSIS AS INTRODUCED: New Act5 ILCS 100/5-45.65 new New Act 5 ILCS 100/5-45.65 new New Act 5 ILCS 100/5-45.65 new Creates the Internet Gaming Act. Authorizes an Internet gaming operator to offer Internet gaming in accordance with the provisions of the Act. Provides that Internet gaming shall only be offered by an Internet gaming license or an Internet management services provider that has contracted with an Internet gaming licensee. Provides that an Internet gaming licensee shall offer no more than 3 individually branded Internet gaming skins. Provides that an Internet management services provider may conduct Internet gaming on its own Internet gaming platform pursuant to the agreement between the provider and an Internet gaming licensee and in accordance with the rules of the Board and the provisions of the Act. Includes provisions for: requirements of an Internet gaming platform; Internet waging accounts; license requirements; age verification, location, and responsible gaming; diversity goals in procurement and spending by Internet gaming licensees; acceptance of out-of-state wagers; and limitations on home rule units. Provides that a 25% privilege tax is imposed on Internet gaming to be deposited into the State Gaming Fund. Authorizes the adoption of emergency rules to implement the Act and makes conforming changes in the Illinois Administrative Procedure Act. Effective immediately. LRB104 08373 LNS 18424 b LRB104 08373 LNS 18424 b LRB104 08373 LNS 18424 b A BILL FOR SB1963LRB104 08373 LNS 18424 b SB1963 LRB104 08373 LNS 18424 b SB1963 LRB104 08373 LNS 18424 b 1 AN ACT concerning gaming. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 1. Short title. This Act may be cited as the 5 Internet Gaming Act. 6 Section 5. Definitions. Unless otherwise provided in this 7 Act, the terms used in this Act have the same meaning given to 8 those terms in the Illinois Gambling Act. Further, as used in 9 this Act: 10 "Adjusted gross gaming revenue" means the total of all 11 sums actually received by an Internet gaming licensee from 12 Internet gaming operations, excluding voided wagers, free 13 play, and promotional credits, less the total of all sums 14 actually paid out as winnings to patrons, which includes the 15 cash equivalent of any merchandise or thing of value awarded 16 as a prize, and the total of successfully disputed credit or 17 debit card charges that were previously included in the 18 computation of gross gaming revenue. "Adjusted gross gaming 19 revenue" does not include the dollar amount of non-cashable 20 vouchers, coupons, or promotions redeemed by participants on 21 an Internet gaming platform. 22 "Board" means the Illinois Gaming Board. 23 "Internet game" means an Internet-based version or 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1963 Introduced 2/6/2025, by Sen. Cristina Castro SYNOPSIS AS INTRODUCED: New Act5 ILCS 100/5-45.65 new New Act 5 ILCS 100/5-45.65 new New Act 5 ILCS 100/5-45.65 new Creates the Internet Gaming Act. Authorizes an Internet gaming operator to offer Internet gaming in accordance with the provisions of the Act. Provides that Internet gaming shall only be offered by an Internet gaming license or an Internet management services provider that has contracted with an Internet gaming licensee. Provides that an Internet gaming licensee shall offer no more than 3 individually branded Internet gaming skins. Provides that an Internet management services provider may conduct Internet gaming on its own Internet gaming platform pursuant to the agreement between the provider and an Internet gaming licensee and in accordance with the rules of the Board and the provisions of the Act. Includes provisions for: requirements of an Internet gaming platform; Internet waging accounts; license requirements; age verification, location, and responsible gaming; diversity goals in procurement and spending by Internet gaming licensees; acceptance of out-of-state wagers; and limitations on home rule units. Provides that a 25% privilege tax is imposed on Internet gaming to be deposited into the State Gaming Fund. Authorizes the adoption of emergency rules to implement the Act and makes conforming changes in the Illinois Administrative Procedure Act. Effective immediately. LRB104 08373 LNS 18424 b LRB104 08373 LNS 18424 b LRB104 08373 LNS 18424 b A BILL FOR New Act 5 ILCS 100/5-45.65 new LRB104 08373 LNS 18424 b SB1963 LRB104 08373 LNS 18424 b SB1963- 2 -LRB104 08373 LNS 18424 b SB1963 - 2 - LRB104 08373 LNS 18424 b SB1963 - 2 - LRB104 08373 LNS 18424 b 1 substantial equivalent of a gambling game, slot machine, 2 poker, table game, or any other game approved by the Board, 3 including, but not limited to, simulcasted live-dealer 4 versions of casino games in which an individual wagers money 5 or something of monetary value for the opportunity to win 6 money or something of monetary value, and which is accessed by 7 an Internet-connected computer or mobile device. "Internet 8 game" includes gaming tournaments conducted via the Internet 9 in which players compete against one another or in one or more 10 of the games authorized in this Act. "Internet game" does not 11 include sports wagering conducted pursuant to the Sports 12 Wagering Act or fantasy contests in which one or more players 13 compete against each other and winning outcomes reflect the 14 relative knowledge and skill of the players and are determined 15 predominantly by accumulated statistical results of the 16 performance of individuals, including athletes in the case of 17 sporting events. 18 "Internet gaming" means conducting Internet games. 19 "Internet gaming licensee" means the owners licensee or 20 organization licensee that holds an Internet gaming license 21 under this Act. 22 "Internet gaming operator" means an Internet gaming 23 licensee that operates an Internet gaming platform or, if an 24 Internet management services provider operates the Internet 25 gaming platform, the Internet management services provider. 26 "Internet gaming platform" means the combination of SB1963 - 2 - LRB104 08373 LNS 18424 b SB1963- 3 -LRB104 08373 LNS 18424 b SB1963 - 3 - LRB104 08373 LNS 18424 b SB1963 - 3 - LRB104 08373 LNS 18424 b 1 hardware and software or other technology designed and used to 2 manage, conduct, and record Internet gaming and the wagers 3 associated with Internet gaming. 4 "Internet gaming skin" means a distinctly branded Internet 5 gaming platform operated by an Internet gaming operator, which 6 may encompass a website, mobile application, or other portal 7 to the Internet gaming platform. The brand may be that of the 8 Internet gaming licensee or its affiliate, the Internet 9 management service provider, or another brand as agreed upon 10 by the Internet gaming licensee and its Internet management 11 service provider. 12 "Internet management service provider" means a licensed 13 business entity that operates an Internet gaming platform 14 pursuant to an agreement with an Internet gaming licensee. 15 "Internet wagering" means the placing of wagers with an 16 Internet gaming operator by persons who are either physically 17 present in the State or in another permissible jurisdiction 18 with which the Board has entered into a reciprocal agreement 19 when placing a wager or otherwise permitted to place a wager by 20 law. 21 "Internet wagering account" means a financial record 22 established and accessible through an Internet gaming platform 23 for an individual patron in which the patron may deposit and 24 withdraw funds for Internet gaming and other authorized 25 purchases and to which the Internet gaming operator may credit 26 winnings or other amounts due to that patron or authorized by SB1963 - 3 - LRB104 08373 LNS 18424 b SB1963- 4 -LRB104 08373 LNS 18424 b SB1963 - 4 - LRB104 08373 LNS 18424 b SB1963 - 4 - LRB104 08373 LNS 18424 b 1 that patron. Nothing in this Act shall prohibit the use of the 2 same Internet wagering account for sports wagering conducted 3 and authorized under the Sports Wagering Act. 4 "Organization licensee" has the meaning given to that term 5 in the Illinois Horse Racing Act of 1975. 6 "Owners licensee" means the holder of an owners license 7 issued under the Illinois Gambling Act. 8 "Permissible jurisdiction" means another jurisdiction from 9 which wagers may be accepted pursuant to Section 60. 10 "Supplier" means (i) a seller or lessor of gaming 11 equipment, systems, or other items to conduct Internet gaming, 12 including a manufacturer, distributor, wholesaler, or 13 retailer; (ii) a provider of Internet gaming equipment, 14 maintenance, or repair services; (iii) a provider of security 15 services at designated gaming areas; or (iv) any other 16 purveyor of goods, data, or services to an Internet gaming 17 licensee or Internet management service provider licensee, as 18 deemed necessary by the Board if the Board determines that the 19 goods, data, or services impact the integrity or security of 20 the Internet gaming operation. 21 Section 10. Board powers and responsibilities. The Board 22 has the same powers and responsibilities with respect to the 23 offering of Internet gaming as it has with respect to 24 non-Internet gaming pursuant to Section 5 of the Illinois 25 Gambling Act, except where the exercise of such powers or SB1963 - 4 - LRB104 08373 LNS 18424 b SB1963- 5 -LRB104 08373 LNS 18424 b SB1963 - 5 - LRB104 08373 LNS 18424 b SB1963 - 5 - LRB104 08373 LNS 18424 b 1 responsibilities is incompatible with the offering of gambling 2 games over the Internet or with this Act. 3 Section 15. Rulemaking. 4 (a) The Board shall adopt emergency rules within 90 days 5 after the effective date of this Act to administer this Act in 6 accordance with Section 5-45 of the Illinois Administrative 7 Procedure Act. For the purposes of the Illinois Administrative 8 Procedure Act, the General Assembly finds that the adoption of 9 rules to implement this Act is deemed an emergency and 10 necessary to the public interest, safety, and welfare. 11 (b) In adopting rules and regulating the conduct of 12 Internet gaming, the Board shall to the greatest extent 13 possible utilize existing rules adopted under the Illinois 14 Gambling Act and amend existing rules or adopt new rules or 15 standards only as reasonably necessary to implement Internet 16 gaming under this Act. The Board shall look to the Internet 17 gaming rules of other regulated jurisdictions in the United 18 States and shall implement consistent rules to the greatest 19 extent practicable. 20 Section 20. Internet gaming authorized. 21 (a) Notwithstanding any provision of law to the contrary, 22 Internet gaming is only lawful when conducted by an Internet 23 gaming operator in accordance with the provisions of this Act 24 and the rules of the Board. SB1963 - 5 - LRB104 08373 LNS 18424 b SB1963- 6 -LRB104 08373 LNS 18424 b SB1963 - 6 - LRB104 08373 LNS 18424 b SB1963 - 6 - LRB104 08373 LNS 18424 b 1 (b) Internet gaming shall only be offered by an Internet 2 gaming licensee or an Internet management services provider 3 that has contracted with an Internet gaming licensee. An 4 Internet gaming licensee shall offer no more than 3 5 individually branded Internet gaming skins. The Internet 6 gaming licensee may operate the platform and contract with up 7 to 3 Internet management service providers to conduct Internet 8 gaming in accordance with the rules of the Board and the 9 provisions of this Act. An Internet management services 10 provider may conduct Internet gaming on its own Internet 11 gaming platform pursuant to the agreement between the provider 12 and an Internet gaming licensee and in accordance with the 13 rules of the Board and the provisions of this Act. 14 (c) The primary servers necessary to the placement or 15 resolution of wagers on an Internet gaming platform shall be 16 located within a facility that is secure and inaccessible to 17 the public. The primary servers may be located anywhere in the 18 United States that is in compliance with federal law for a 19 period of one year following the effective date of this Act. 20 Beginning one year after the effective date of this Act, the 21 primary servers must be located in the State. All wagers 22 placed by a person physically located in the State are deemed 23 to be placed in this State. The intermediate routing of 24 electronic data in connection with Internet gaming, including 25 across State lines, shall not determine the location or 26 locations in which a wager is initiated, received, or SB1963 - 6 - LRB104 08373 LNS 18424 b SB1963- 7 -LRB104 08373 LNS 18424 b SB1963 - 7 - LRB104 08373 LNS 18424 b SB1963 - 7 - LRB104 08373 LNS 18424 b 1 otherwise made. 2 Section 25. Requirements of Internet gaming platform. 3 (a) An Internet gaming operator may accept wagers on an 4 Internet gaming platform only as follows: 5 (1) the wager is placed directly with the Internet 6 gaming operator through an Internet wagering account; and 7 (2) the Internet gaming operator has verified that the 8 person placing the wager is the holder of the Internet 9 wagering account and is physically located within this 10 State or a permissible jurisdiction using technological 11 requirements in compliance with this Section. 12 (b) An Internet gaming platform shall include age and 13 location verification mechanisms and requirements that are 14 designed to preclude knowingly accepting wagers from 15 individuals under 21 years of age, persons not physically 16 within the State or a permissible jurisdiction, and persons 17 otherwise excluded from Internet gaming from establishing 18 Internet wagering accounts or from engaging in Internet gaming 19 under this Act. The Internet gaming platform's age, location, 20 and eligibility detection mechanisms shall monitor attempts to 21 access the system and shall use commercially reasonable 22 attempts to block unauthorized attempts to access the system. 23 (c) An Internet gaming operator shall implement 24 commercially reasonable data security standards to prevent 25 unauthorized access by any person whose identity has not been SB1963 - 7 - LRB104 08373 LNS 18424 b SB1963- 8 -LRB104 08373 LNS 18424 b SB1963 - 8 - LRB104 08373 LNS 18424 b SB1963 - 8 - LRB104 08373 LNS 18424 b 1 verified or cannot be verified, in accordance with rules 2 adopted by the Board. The Internet gaming platform's identity 3 verification mechanisms shall monitor attempts to access the 4 system and shall use commercially reasonable attempts to block 5 unauthorized attempts to access the system by persons who are 6 not the wagering account holder. 7 (d) An Internet gaming operator shall implement 8 commercially reasonable standards to protect the privacy and 9 security of patrons to a reasonable degree of certainty. 10 Internet gaming operators shall establish and offer patrons 11 the option to protect their accounts with multi-factor 12 authentication or authentication features such as personal 13 identification numbers or biometric data. 14 (e) An Internet gaming operator shall establish internal 15 and accounting controls applicable to Internet gaming and 16 shall ensure that the security and integrity of all financial 17 transactions in connection with Internet gaming shall comply 18 with this Act and any rules adopted by the Board. 19 (f) Each Internet gaming operator shall collect, report, 20 and pay all applicable taxes and fees and shall maintain all 21 books, records, and documents pertaining to the Internet 22 gaming operators gaming operations in a manner approved by the 23 Board. 24 (g) All books, records, and documents concerning Internet 25 gaming shall be available for inspection upon commercially 26 reasonable notice by the Board during ordinary business hours SB1963 - 8 - LRB104 08373 LNS 18424 b SB1963- 9 -LRB104 08373 LNS 18424 b SB1963 - 9 - LRB104 08373 LNS 18424 b SB1963 - 9 - LRB104 08373 LNS 18424 b 1 in accordance with the Board's rules and shall be maintained 2 by each Internet gaming operator in a manner and during 3 periods of time as the Board shall require. 4 (h) Each Internet gaming operator shall maintain a file 5 containing samples of the types and forms of advertising and 6 promotional materials that it has used for Internet gaming in 7 connection with this State for a period of 2 years. Such 8 advertising samples shall be made available or produced for 9 inspection upon the Board's request. The Board shall allow for 10 Internet gaming operators to advertise beginning on the date 11 of their licensing approval, including a temporary licensing 12 approval. Nothing in this Section shall require Internet 13 gaming operators to obtain advertising preapproval from the 14 Board. 15 Section 30. Internet wagering accounts. 16 (a) Eligible persons seeking to establish Internet 17 wagering accounts may do so in person at a casino or racetrack 18 or over the Internet without appearing in person. An Internet 19 gaming operator shall adopt reasonable procedures to ensure 20 that individuals have no more than one Internet wagering 21 account with the Internet gaming operator. However, nothing in 22 this Act prohibits the use of a single account for a sports 23 wagering account under the Sports Wagering Act and the 24 Internet wagering account set forth under this Act. 25 (b) A participant may deposit and withdraw funds from the SB1963 - 9 - LRB104 08373 LNS 18424 b SB1963- 10 -LRB104 08373 LNS 18424 b SB1963 - 10 - LRB104 08373 LNS 18424 b SB1963 - 10 - LRB104 08373 LNS 18424 b 1 participant's Internet wagering accounts in-person at a casino 2 or racetrack or over the Internet through electronic means to 3 the extent allowed by federal law, including debit and credit 4 cards; automated clearing house transfers; wire transfers; 5 deposits and withdrawals of cash or gaming chips at cashiering 6 locations in a river boat, a casino, or any property or 7 facility owned, maintained, or leased by an organization 8 licensee, an owners licensee, an Internet gaming operator, an 9 Internet gaming licensee, or any other facility where a 10 gambling game, a casino game, slot machines, table games, or 11 other gambling operation occurs; deposits and withdrawals of 12 cash at retail locations in the State approved by the Board; 13 reloadable prepaid cards; gift cards; cash complimentary, 14 promotional credits, or bonus credits; winnings; digital, 15 crypto, and virtual currencies; or other means as approved by 16 the Board. 17 (c) An Internet gaming operator shall include, as part of 18 the Internet gaming operator's internal controls, mechanisms 19 and procedures for reasonably detecting unauthorized access to 20 Internet wagering accounts, unauthorized attempts to access 21 Internet wagering accounts, and suspicious Internet wagering 22 activity constituting cheating, theft, embezzlement, 23 collusion, money laundering, and other illegal activity. 24 (d) As permitted by federal law, nothing in this Act 25 prohibits Internet gaming operators from linking or otherwise 26 commingling Internet wagering accounts with an eligible SB1963 - 10 - LRB104 08373 LNS 18424 b SB1963- 11 -LRB104 08373 LNS 18424 b SB1963 - 11 - LRB104 08373 LNS 18424 b SB1963 - 11 - LRB104 08373 LNS 18424 b 1 person's Internet wagering account in another jurisdiction. 2 However, each Internet gaming operator must retain records of 3 all deposits, withdraws, wagers, and wager results that take 4 place within this State and pursuant to this Act and ensure all 5 taxes and fees due under this Act are properly documented and 6 paid. 7 Section 35. License requirements. 8 (a) No person may offer Internet games in this State 9 unless all necessary licenses have been obtained in accordance 10 with this Act and the rules of the Board. The Board may issue 11 the following licenses to persons, firms, partnerships, or 12 corporations that apply for licensure upon a determination by 13 the Board that the applicant is eligible for the license under 14 this Act and rules adopted by the Board: 15 (1) Internet gaming license; 16 (2) Internet management service provider license; 17 (3) supplier license; and 18 (4) occupational license. 19 (b) The Board shall issue an Internet gaming license upon 20 request to any owners licensee or organization licensee that 21 meets the conditions of subsection (i). The fee for a license 22 shall be $250,000. An Internet gaming license shall be valid 23 for the same period of time as the requester's owners license 24 or organization license and shall be renewed as a matter of 25 course upon renewal of the owners license or organization SB1963 - 11 - LRB104 08373 LNS 18424 b SB1963- 12 -LRB104 08373 LNS 18424 b SB1963 - 12 - LRB104 08373 LNS 18424 b SB1963 - 12 - LRB104 08373 LNS 18424 b 1 license and for the same period of time as the owners license 2 or organization license. The fee for renewal of an Internet 3 gaming license is $100,000. If an Internet gaming license is 4 received after the issuance or renewal of an owners license or 5 organizational license, the Internet gaming license fee shall 6 be prorated for the remainder of the existing term. 7 (c) An entity may apply for an Internet management service 8 provider license in the form as may be required by the Board 9 consistent with the requirements of this Act. The Board shall 10 provide an abbreviated application for entities that hold or 11 have a pending application for a management services provider 12 license under the Sports Wagering Act or other types of gaming 13 under Illinois law. Before issuance of an Internet management 14 service provider license under this Act, the applicant shall 15 pay to the Board a licensing fee of $100,000 or, for applicants 16 holding a management service provider license issued under 17 other State law, a licensing fee of $50,000. An Internet 18 management service provider license issued under this Act 19 shall be valid for 4 years, subject to renewal upon payment of 20 a fee of $50,000. 21 (d) An applicant for a supplier license shall apply in the 22 form as may be required by the Board consistent with the 23 requirements of this Act. The Board shall provide an 24 abbreviated application for entities that hold or have a 25 pending application for a supplier license under the Sports 26 Wagering Act or other types of gaming under State law. Before SB1963 - 12 - LRB104 08373 LNS 18424 b SB1963- 13 -LRB104 08373 LNS 18424 b SB1963 - 13 - LRB104 08373 LNS 18424 b SB1963 - 13 - LRB104 08373 LNS 18424 b 1 issuance of a supplier license under this Act, the applicant 2 shall pay to the Board a licensing fee of $75,000 or, for 3 applicants holding a supplier license issued under other 4 Illinois law, a licensing fee of $50,000. A supplier license 5 issued under this Act shall be valid for 4 years, subject to 6 renewal upon payment of a fee of $50,000. 7 (e) An applicant for an occupation license shall apply in 8 the form as may be required by the Board consistent with the 9 requirements of this Act for individuals who can directly 10 change critical components of Internet game system hardware or 11 software and meet 2 of the following requirements: 12 (1) have access to wagering account holders' 13 personally identifying information; 14 (2) have the ability to make adjustments to Internet 15 wagering accounts; or 16 (3) have direct interaction with wagering account 17 holders. 18 Before issuance of an occupational license under this Act, 19 the applicant shall pay to the Board a licensing fee of $150 20 or, for applicants holding an occupational license issued 21 under other State law, a licensing fee of $100. An 22 occupational license issued under this Act shall be valid for 23 4 years, subject to renewal upon payment of a fee of $100. An 24 Internet gaming licensee may pay an occupational licensing fee 25 on behalf of its employees. 26 (f) The Board shall issue any license under this Act upon SB1963 - 13 - LRB104 08373 LNS 18424 b SB1963- 14 -LRB104 08373 LNS 18424 b SB1963 - 14 - LRB104 08373 LNS 18424 b SB1963 - 14 - LRB104 08373 LNS 18424 b 1 payment of the license fee to an applicant that meets the 2 conditions of subsection (i), if applicable, and a showing 3 that the applicant holds an equivalent license under the 4 Illinois Sports Wagering Act or, otherwise, has an equivalent 5 license to conduct Internet gaming in another U.S. 6 3jurisdiction with licensing standards similar to those 7 established under this Act and accompanying rules. 8 (g) The Board shall issue any license under this Act on a 9 temporary basis within 30 days after receiving an application 10 to any applicant that holds an equivalent license or temporary 11 license under the Sports Wagering Act or, otherwise, has 12 equivalent licenses in connection with Internet gaming in 13 another U.S. jurisdiction with licensing standards similar to 14 those established under this Act and accompanying rules. The 15 Board shall issue the temporary license under this subsection 16 within 30 days after receiving a completed application unless 17 it is aware of credible information that may prevent the 18 issuance of a license or require certain conditions on a 19 license to ensure compliance with State gaming law, subject to 20 due process. The temporary license shall be valid for a period 21 of one year. The Board may revoke a temporary license at any 22 time if it becomes aware of credible information that may 23 prevent the issuance of a license or require certain 24 conditions on a license to ensure compliance with State gaming 25 law. A temporary license shall otherwise be deemed to be the 26 equivalent of a full license for all purposes. A temporary SB1963 - 14 - LRB104 08373 LNS 18424 b SB1963- 15 -LRB104 08373 LNS 18424 b SB1963 - 15 - LRB104 08373 LNS 18424 b SB1963 - 15 - LRB104 08373 LNS 18424 b 1 license shall be renewed if a final determination has not been 2 made by the Board on permanent licensure within one year. The 3 Board shall adopt a process for ensuring an equal opportunity 4 for all licensees to initially launch on a date set forth by 5 the Board. 6 (h) The Board may require background investigations for 7 any officer, director, or shareholder with 10% or more equity 8 interests of an applicant for an Internet management service 9 provider license. The Board may recover the actual and 10 reasonable costs of an investigation conducted under this 11 subsection from any license applicant. The Board shall waive a 12 background investigation upon a showing that a background 13 investigation has previously been conducted on the applicant 14 under the Sports Wagering Act. The Board may accept a 15 background investigation conducted by another state with 16 licensing standards similar to those established under this 17 Act and accompanying rules. 18 (i) The Board may not issue an Internet gaming license to 19 an owners licensee or organization licensee that has reduced 20 the size of its workforce by 25% or more since February 28, 21 2020. The Board may not renew the Internet gaming license of 22 any owners licensee or organization licensee that has reduced 23 the size of its workforce by 25% since the date its last 24 Internet gaming license was issued or renewed. 25 Section 40. Age verification; location; responsible SB1963 - 15 - LRB104 08373 LNS 18424 b SB1963- 16 -LRB104 08373 LNS 18424 b SB1963 - 16 - LRB104 08373 LNS 18424 b SB1963 - 16 - LRB104 08373 LNS 18424 b 1 gaming. 2 (a) An Internet gaming platform's internal controls shall 3 include one or more mechanism to reasonably verify that a 4 participant is 21 years of age or older, that wagering on 5 Internet games is limited to transactions that are initiated 6 and received within the State or a permissible jurisdiction, 7 and that the participant is physically located within the 8 State or a permissible jurisdiction. 9 (b) The Board shall develop responsible Internet gaming 10 measures, including a statewide responsible gaming database 11 identifying individuals who shall be prohibited from 12 establishing an Internet wagering account or participating in 13 Internet gaming offered by an Internet gaming operator. The 14 Board shall adopt rules for the establishment and maintenance 15 of the responsible gaming database, which shall include 16 allowances for individuals to self-exclude from Internet 17 wagering, including making self-exclusion elections through an 18 Internet gaming operator on an Internet gaming platform or in 19 person at casinos or racetracks. The Board shall maintain the 20 responsible gaming database in a confidential manner and 21 Internet gaming operators shall not knowingly accept wagers 22 from anyone listed on the responsible gaming database. 23 Notwithstanding any law to the contrary, a self-exclusion 24 election and the responsible gaming database are not public 25 records subject to copying and disclosure under the Freedom of 26 Information Act. SB1963 - 16 - LRB104 08373 LNS 18424 b SB1963- 17 -LRB104 08373 LNS 18424 b SB1963 - 17 - LRB104 08373 LNS 18424 b SB1963 - 17 - LRB104 08373 LNS 18424 b 1 (c) Each Internet gaming platform shall display the words 2 "If you or someone you know has a gambling problem, help is 3 available. Call (toll-free telephone number)" or some 4 comparable language approved by the Board, which language 5 shall include the words "gambling problem" and "call 6 (toll-free telephone number)", to be displayed on the home 7 page accessible to any person initially logging into the 8 Internet gaming platform. Similar information shall be 9 accessible to account holders when logged onto the Internet 10 gaming platform. 11 (d) Each Internet gaming platform shall include mechanisms 12 for temporary and permanent self-exclusion through the Board's 13 statewide responsible gaming database from Internet gaming. 14 Each Internet gaming platform shall include mechanisms for 15 termination of a patron's Internet wagering account. 16 Additionally, each Internet gaming platform shall include 17 player self-imposed wagering and deposit limits, including a 18 deposit limit offered on a daily, weekly, and monthly basis 19 that allows patrons to specify the maximum amount of money 20 they can deposit into the Internet wagering account during the 21 particular time period; and a spend limit offered on a daily, 22 weekly, and monthly basis that allows patrons to specify the 23 maximum amount of the deposits that they may put at risk during 24 the particular time period. Self-imposed wagering or deposit 25 limits shall take effect immediately but increases to a 26 previously imposed limit shall not take effect until the SB1963 - 17 - LRB104 08373 LNS 18424 b SB1963- 18 -LRB104 08373 LNS 18424 b SB1963 - 18 - LRB104 08373 LNS 18424 b SB1963 - 18 - LRB104 08373 LNS 18424 b 1 expiration of the limit per the terms of the patron's original 2 election. A licensee under this Act shall not knowingly mail 3 or otherwise forward any gaming-related promotional materials 4 or electronic mail to a participant during any period in which 5 the patron has elected to temporarily or permanently suspend 6 oneself from all Internet gaming or permanently terminate 7 Internet gaming through the account. 8 (e) A patron shall continue to have the ability to 9 withdraw funds, notwithstanding any temporary or permanent 10 suspension or limits placed upon the account pursuant to this 11 Section. 12 Section 45. Tax. 13 (a) A privilege tax is imposed on an Internet gaming 14 operator based on the adjusted gross gaming revenue wagered on 15 Internet gaming platforms authorized under this Act at a rate 16 of 25% of adjusted gross gaming revenue. This privilege tax is 17 the exclusive tax in relation to Internet gaming. No local 18 government of this State, including home rule municipalities, 19 may impose or levy taxes on adjusted gross gaming revenue. 20 (b) All moneys collected under this Act by the Board shall 21 be deposited into the State Gaming Fund. The taxes imposed by 22 this Section shall be paid by the Internet gaming operator no 23 later than the last day of the month following the calendar 24 month in which the adjusted gross gaming receipts were 25 received and the tax obligation was accrued. SB1963 - 18 - LRB104 08373 LNS 18424 b SB1963- 19 -LRB104 08373 LNS 18424 b SB1963 - 19 - LRB104 08373 LNS 18424 b SB1963 - 19 - LRB104 08373 LNS 18424 b 1 (c) If the taxpayer's adjusted gross gaming revenue for a 2 month is a negative number, the taxpayer may carry over the 3 negative amount to a return filed a subsequent month and 4 deduct such amount from its tax liability for such month, 5 provided that such amount shall not be carried over and 6 deducted against tax liability in any month that is more than 7 12 months later than the month in which such amount was 8 accrued. 9 (d) The tax revenue deposited into the State Gaming Fund 10 under this Act shall be distributed according to Section 13 of 11 the Illinois Gambling Act, wherein the Internet gaming 12 operator shall be treated as the owners licensee or 13 organization licensee that holds the Internet gaming license 14 under this Act. 15 Section 50. Diversity programs. 16 (a) As used in this Section only, "licensee" means an 17 Internet gaming licensee under this Act. 18 (b) The public policy of this State is to collaboratively 19 work with companies that serve State residents to improve 20 their supplier diversity in a non-antagonistic manner. 21 (c) The Board shall require all licensees under this Act 22 to submit an annual report by April 15, 2026 and every April 15 23 thereafter, in a searchable Adobe PDF format, on all 24 procurement goals and actual spending for businesses owned by 25 women, minorities, veterans, and persons with disabilities and SB1963 - 19 - LRB104 08373 LNS 18424 b SB1963- 20 -LRB104 08373 LNS 18424 b SB1963 - 20 - LRB104 08373 LNS 18424 b SB1963 - 20 - LRB104 08373 LNS 18424 b 1 small business enterprises in the previous calendar year. 2 These goals shall be expressed as a percentage of the total 3 work performed by the entity submitting the report, and the 4 actual spending for all businesses owned by women, minorities, 5 veterans, and persons with disabilities and small business 6 enterprises shall also be expressed as a percentage of the 7 total work performed by the entity submitting the report. 8 (d) Each licensee in its annual report shall include the 9 following information: 10 (1) an explanation of the plan for the next year to 11 increase participation; 12 (2) an explanation of the plan to increase the goals; 13 (3) the areas of procurement each licensee shall be 14 actively seeking more participation in the next year; 15 (4) an outline of the plan to alert and encourage 16 potential vendors in that area to seek business from the 17 licensee; 18 (5) an explanation of the challenges faced in finding 19 quality vendors and offer any suggestions for what the 20 Board could do to be helpful to identify those vendors; 21 (6) a list of the certifications the licensee 22 recognizes; 23 (7) the point of contact for any potential vendor who 24 wishes to do business with the licensee and explain the 25 process for a vendor to enroll with the licensee as a 26 businesses owned by women, minorities, veterans, or SB1963 - 20 - LRB104 08373 LNS 18424 b SB1963- 21 -LRB104 08373 LNS 18424 b SB1963 - 21 - LRB104 08373 LNS 18424 b SB1963 - 21 - LRB104 08373 LNS 18424 b 1 persons with disabilities; and 2 (8) any particular success stories to encourage other 3 licensees to emulate best practices. 4 (e) Each annual report shall include as much 5 State-specific data as possible. If the submitting entity does 6 not submit State-specific data, then the licensee shall 7 include any national data it does have and explain why it could 8 not submit State-specific data and how it intends to do so in 9 future reports, if possible. 10 (f) Each annual report shall include the rules, 11 regulations, and definitions used for the procurement goals in 12 the licensee's annual report. 13 (g) The Board and all licensees shall hold an annual 14 workshop and job fair open to the public in 2026 and every year 15 thereafter on the state of supplier diversity to 16 collaboratively seek solutions to structural impediments to 17 achieving stated goals, including testimony from each licensee 18 as well as subject matter experts and advocates. The Board 19 shall publish a database on its website of the point of contact 20 for licensees it regulates under this Act for supplier 21 diversity, along with a list of certifications each licensee 22 recognizes from the information submitted in each annual 23 report. The Board shall publish each annual report on its 24 website and shall maintain each annual report for at least 5 25 years. 26 (h) A licensee under this Act that is also subject to the SB1963 - 21 - LRB104 08373 LNS 18424 b SB1963- 22 -LRB104 08373 LNS 18424 b SB1963 - 22 - LRB104 08373 LNS 18424 b SB1963 - 22 - LRB104 08373 LNS 18424 b 1 diversity program requirements of Section 7.6 of the Illinois 2 Gambling Act shall include its Internet gaming activities 3 within the supplier diversity goals and accompanying reports. 4 Compliance with Section 7.6 of the Illinois Gambling Act shall 5 be in lieu of compliance with the reporting requirements under 6 this Act. 7 Section 55. Applicability of the Illinois Gambling Act and 8 the Uniform Penalty and Interest Act. The provisions of the 9 Illinois Gambling Act, and all rules adopted under that Act, 10 shall apply to this Act, except where there is a conflict 11 between those Acts, including the incompatibility of any 12 provision to the conduct of gaming remotely, without a 13 brick-and-mortar facility, or over the Internet. All 14 provisions of the Uniform Penalty and Interest Act shall 15 apply, as far as practicable, to the subject matter of this Act 16 to the same extent as if such provisions were included in this 17 Act. 18 Section 60. Acceptance of out-of-state wagers. 19 Notwithstanding any other provision of law to the contrary, 20 wagers may be accepted under this Act from persons who are not 21 physically present in this State if the Board has determined 22 that out-of-state wagering is not inconsistent with federal 23 law or the law of the jurisdiction in which the person is 24 located or if out-of-state wagering is conducted pursuant to a SB1963 - 22 - LRB104 08373 LNS 18424 b SB1963- 23 -LRB104 08373 LNS 18424 b SB1963 - 23 - LRB104 08373 LNS 18424 b SB1963 - 23 - LRB104 08373 LNS 18424 b 1 reciprocal agreement to which this State is a party that is not 2 inconsistent with federal law. The Board may enter into 3 agreements with other jurisdictions to facilitate, administer, 4 and regulate multijurisdictional approved Internet games, 5 including, but not limited to, poker. 6 Section 65. Home rule. The licensure and conduct of 7 Internet gaming conducted by a person or entity pursuant to 8 this Act are exclusive powers and functions of the State. A 9 home rule unit may not regulate or license Internet gaming. 10 This Section is a denial and limitation of home rule powers and 11 functions under subsection (h) of Section 6 of Article VII of 12 the Illinois Constitution. 13 Section 95. The Illinois Administrative Procedure Act is 14 amended by adding Section 5-45.65 as follows: 15 (5 ILCS 100/5-45.65 new) 16 Sec. 5-45.65. Emergency rulemaking; Internet Gaming Act. 17 To provide for the expeditious and timely implementation of 18 the Internet Gaming Act, emergency rules implementing the 19 Internet Gaming Act shall be adopted in accordance with 20 Section 5-45 by the Illinois Gaming Board. The adoption of 21 emergency rules authorized by Section 5-45 and this Section is 22 deemed to be necessary for the public interest, safety, and 23 welfare. SB1963 - 23 - LRB104 08373 LNS 18424 b SB1963- 24 -LRB104 08373 LNS 18424 b SB1963 - 24 - LRB104 08373 LNS 18424 b SB1963 - 24 - LRB104 08373 LNS 18424 b 1 This Section is repealed on January 1, 2029. SB1963 - 24 - LRB104 08373 LNS 18424 b