SB0553sam001 104TH GENERAL ASSEMBLY

Sen. Michael E. Hastings

Filed: 3/26/2026

10400SB0553sam001 LRB104 06808 BAB 35906 a

AMENDMENT TO SENATE BILL 553

AMENDMENT NO. ______. Amend Senate Bill 553 by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act may be cited as the Prediction Markets Regulation and Taxation Act.

Section 5. Findings; legislative intent.

(a) The General Assembly finds that:

(1) Prediction markets, when limited to nonsports events, serve a legitimate informational and hedging function by aggregating dispersed knowledge about future uncertain outcomes, contributing to more accurate public forecasting and risk management.

(2) Such markets constitute a justified form of gambling activity under State authority when properly regulated to protect consumers, ensure integrity, prevent fraud, and generate revenue for public purposes.

(3) Traditional sports wagering and casino gaming, including, but not limited to, slot machines, table games, and video gaming, are already comprehensively regulated and taxed under the Illinois Gambling Act, the Sports Wagering Act, and related statutes and shall remain subject to those exclusive frameworks.

(4) To protect the integrity of existing licensed gaming industries and prevent market overlap or evasion, sports event contracts and casino-style games shall be expressly excluded from this Act.

(b) It is the intent of the General Assembly to regulate qualifying prediction markets separately, impose appropriate consumer protections, and tax such activity at a rate that reflects its economic and revenue potential while ensuring competitiveness.

Section 10. Definitions. In this Act:

"Adjusted gross receipts" means the total of all amounts received from qualifying prediction market contracts less payouts to participants, platform fees not attributable to gambling outcomes, and any other deductions authorized by the Board, consistent with definitions in the Sports Wagering Act.

"Board" means the Illinois Gaming Board.

"Platform operator" means any person or entity operating a prediction market that offers qualifying prediction market contracts to persons located in Illinois.

"Prediction market" means a platform or exchange where participants trade contracts whose value is derived from the outcome of future events, excluding any sports event contracts.

"Qualifying prediction market contract" means a binary or multi-outcome contract traded on a prediction market platform where the payoff depends on the resolution of a nonsports event, including, but not limited to, political elections, economic indicators, regulatory decisions, weather phenomena, award ceremonies, entertainment events, or other verifiable real-world outcomes, as determined by the Board.

"Sports event contract" means a contract based on the outcome of athletic contests, sporting events, or any portion thereof.

Section 15. Regulation and licensing.

(a) No person shall operate a prediction market offering qualifying prediction market contracts to Illinois residents without first obtaining a master prediction market license from the Board. A platform operator shall pay an initial master prediction market license fee of $1,000,000 to the Board before the license is issued, and the initial master prediction market license shall be valid for a period of 12 months. The master prediction market license is renewable annually upon payment of a $1,000,000 renewal fee and a determination of the Board that the licensee meets the requirements of this Act and the Board's rules.

(b) The Board shall adopt rules for licensing, including, but not limited to:

(1) age restrictions for people under 21 years of age;

(2) geofencing to prevent access from prohibited jurisdictions;

(3) anti-money-laundering compliance;

(4) responsible gambling tools;

(5) market integrity monitoring; and

(6) reporting requirements.

(c) This Act does not authorize or regulate sports wagering as defined in the Sports Wagering Act or gambling games authorized under the Illinois Gambling Act. Any platform offering sports event contracts or casino games remains subject to those Acts and any applicable cease and desist orders or enforcement actions.

Section 20. Taxation.

(a) For the privilege of operating under this Act, the State shall impose and collect a privilege tax equal to 50% of a platform operator's adjusted gross receipts derived from qualifying prediction market contracts placed by or with Illinois residents.

(b) The tax shall be remitted monthly to the Board and deposited into the General Revenue Fund or a dedicated fund as determined by appropriation, subject to the Board's administrative rules.

(c) No additional per-wager fees, surcharges, or graduated rates as in existence under the Sports Wagering Act shall apply to qualifying prediction market activity under this Act.

(d) Platform operators shall file monthly returns and maintain records sufficient for audit, consistent with procedures under the Sports Wagering Act.

Section 25. Enforcement and penalties.

(a) Violation of this Act, including unlicensed operation or offering excluded sports event contracts, shall constitute unlicensed gambling under Section 28-1 of the Criminal Code of 2012 and may result in cease and desist orders, civil penalties, license revocation, or referral for criminal prosecution.

(b) The Board shall have rulemaking authority to implement this Act, including defining excludable events and resolving jurisdictional overlaps.

Section 30. The Criminal Code of 2012 is amended by changing Section 28-1 as follows:

(720 ILCS 5/28-1) (from Ch. 38, par. 28-1)

Sec. 28-1. Gambling.

(a) A person commits gambling when he or she:

(1) knowingly plays a game of chance or skill for money or other thing of value, unless excepted in subsection (b) of this Section;

(2) knowingly makes a wager upon the result of any game, contest, or any political nomination, appointment or election;

(3) knowingly operates, keeps, owns, uses, purchases, exhibits, rents, sells, bargains for the sale or lease of, manufactures or distributes any gambling device;

(4) contracts to have or give himself or herself or another the option to buy or sell, or contracts to buy or sell, at a future time, any grain or other commodity whatsoever, or any stock or security of any company, where it is at the time of making such contract intended by both parties thereto that the contract to buy or sell, or the option, whenever exercised, or the contract resulting therefrom, shall be settled, not by the receipt or delivery of such property, but by the payment only of differences in prices thereof; however, the issuance, purchase, sale, exercise, endorsement or guarantee, by or through a person registered with the Secretary of State pursuant to Section 8 of the Illinois Securities Law of 1953, or by or through a person exempt from such registration under said Section 8, of a put, call, or other option to buy or sell securities which have been registered with the Secretary of State or which are exempt from such registration under Section 3 of the Illinois Securities Law of 1953 is not gambling within the meaning of this paragraph (4);

(5) knowingly owns or possesses any book, instrument or apparatus by means of which bets or wagers have been, or are, recorded or registered, or knowingly possesses any money which he has received in the course of a bet or wager;

(6) knowingly sells pools upon the result of any game or contest of skill or chance, political nomination, appointment or election;

(7) knowingly sets up or promotes any lottery or sells, offers to sell or transfers any ticket or share for any lottery;

(8) knowingly sets up or promotes any policy game or sells, offers to sell or knowingly possesses or transfers any policy ticket, slip, record, document or other similar device;

(9) knowingly drafts, prints or publishes any lottery ticket or share, or any policy ticket, slip, record, document or similar device, except for such activity related to lotteries, bingo games and raffles authorized by and conducted in accordance with the laws of Illinois or any other state or foreign government;

(10) knowingly advertises any lottery or policy game, except for such activity related to lotteries, bingo games and raffles authorized by and conducted in accordance with the laws of Illinois or any other state;

(11) knowingly transmits information as to wagers, betting odds, or changes in betting odds by telephone, telegraph, radio, semaphore or similar means; or knowingly installs or maintains equipment for the transmission or receipt of such information; except that nothing in this subdivision (11) prohibits transmission or receipt of such information for use in news reporting of sporting events or contests; or

(12) knowingly establishes, maintains, or operates an Internet site that permits a person to play a game of chance or skill for money or other thing of value by means of the Internet or to make a wager upon the result of any game, contest, political nomination, appointment, or election by means of the Internet. This item (12) does not apply to activities referenced in items (6), (6.1), (8), (8.1), and (15) of subsection (b) of this Section; or .

(13) knowingly violates the Prediction Markets Regulation and Taxation Act, including unlicensed operation and offering excluded sports event contracts.

(b) Participants in any of the following activities shall not be convicted of gambling:

(1) Agreements to compensate for loss caused by the happening of chance including without limitation contracts of indemnity or guaranty and life or health or accident insurance.

(2) Offers of prizes, award or compensation to the actual contestants in any bona fide contest for the determination of skill, speed, strength or endurance or to the owners of animals or vehicles entered in such contest.

(3) Pari-mutuel betting as authorized by the law of this State.

(4) Manufacture of gambling devices, including the acquisition of essential parts therefor and the assembly thereof, for transportation in interstate or foreign commerce to any place outside this State when such transportation is not prohibited by any applicable Federal law; or the manufacture, distribution, or possession of video gaming terminals, as defined in the Video Gaming Act, by manufacturers, distributors, and terminal operators licensed to do so under the Video Gaming Act.

(5) The game commonly known as "bingo", when conducted in accordance with the Bingo License and Tax Act.

(6) Lotteries when conducted by the State of Illinois in accordance with the Illinois Lottery Law. This exemption includes any activity conducted by the Department of Revenue to sell lottery tickets pursuant to the provisions of the Illinois Lottery Law and its rules.

(6.1) The purchase of lottery tickets through the Internet for a lottery conducted by the State of Illinois under the program established in Section 7.12 of the Illinois Lottery Law.

(7) Possession of an antique slot machine that is neither used nor intended to be used in the operation or promotion of any unlawful gambling activity or enterprise. For the purpose of this subparagraph (b)(7), an antique slot machine is one manufactured 25 years ago or earlier.

(8) Raffles and poker runs when conducted in accordance with the Raffles and Poker Runs Act.

(8.1) The purchase of raffle chances for a raffle conducted in accordance with the Raffles and Poker Runs Act.

(9) Charitable games when conducted in accordance with the Charitable Games Act.

(10) Pull tabs and jar games when conducted under the Illinois Pull Tabs and Jar Games Act.

(11) Gambling games when authorized by the Illinois Gambling Act.

(12) Video gaming terminal games at a licensed establishment, licensed truck stop establishment, licensed large truck stop establishment, licensed fraternal establishment, or licensed veterans establishment when conducted in accordance with the Video Gaming Act.

(13) Games of skill or chance where money or other things of value can be won but no payment or purchase is required to participate.

(14) Savings promotion raffles authorized under Section 5g of the Illinois Banking Act, Section 7008 of the Savings Bank Act, Section 42.7 of the Illinois Credit Union Act, Section 5136B of the National Bank Act (12 U.S.C. 25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C. 1463).

(15) Sports wagering when conducted in accordance with the Sports Wagering Act.

(c) Sentence.

Gambling is a Class A misdemeanor. A second or subsequent conviction under subsections (a)(3) through (a)(12), is a Class 4 felony.

(d) Circumstantial evidence.

In prosecutions under this Section circumstantial evidence shall have the same validity and weight as in any criminal prosecution.

(Source: P.A. 101-31, Article 25, Section 25-915, eff. 6-28-19; 101-31, Article 35, Section 35-80, eff. 6-28-19; 101-109, eff. 7-19-19; 102-558, eff. 8-20-21.)".