SB2145 104TH GENERAL ASSEMBLY

LRB104 08583 LNS 18635 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB2145

Introduced 2/7/2025, by Sen. Bill Cunningham

SYNOPSIS AS INTRODUCED:

See Index

Amends the Sports Wagering Act. Allows a licensee to offer pool sports wagering to State patrons where State patrons compete against patrons located outside of the State. Allows the Illinois Gaming Board to issue master sports wagering licenses to persons to conduct sports wagering over the Internet or through a mobile application (rather than issue 3 master sports wagering licenses to online sports wagering operators for a nonrefundable license fee of $20,000,000 pursuant to an open and competitive selection process). Provides that the application fee for a master sports wagering license is $250,000 while the initial fee for a master sports wagering license issued to an online sports wagering operator is $15,000,000. Provides that a master sports wagering license is valid for 4 years and may be renewed for another 4 years by paying a $1,000,000 renewal fee. Allows the Board to regulate the conduct of fantasy contest operators under the Act. Sets forth rulemaking authority, fees, surcharges, civil penalties, and monthly taxes, Board powers, and cooperation with law enforcement investigations. Prohibits a person from offering fantasy contests in the State unless the person is licensed by the Board as a fantasy contest operator for an application fee of $50,000. Sets forth applicant requirements. Prohibits a person from participating in a fantasy contest if the person is not at least 21 years of age. Sets forth the duties of fantasy contest licensees. Provides that, beginning July 1, 2025, the State shall impose a privilege tax on the fantasy contest operator licensee's adjusted gross fantasy contest receipts based on the following rates: (1) 20% of annual adjusted gross fantasy contest receipts to and including $1,000,000; (2) 25% of annual adjusted gross fantasy contest receipts of $3,000,000 but not exceeding $5,000,000; (3) 30% of annual adjusted gross fantasy contest receipts of $5,000,000 but not exceeding $10,000,000; (4) 35% of annual adjusted gross fantasy contest receipts $10,000,000 but not exceeding $20,000,000; and (5) 40% of annual adjusted gross fantasy contest receipts in excess of $20,000,000. Makes other changes. Makes conforming changes in the Illinois Administrative Procedures Act and the Criminal Code of 2012. Effective immediately.

A BILL FOR

AN ACT concerning gaming.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Administrative Procedure Act is amended by adding Section 5-45.65 as follows:

(5 ILCS 100/5-45.65 new)

Sec. 5-45.65. Emergency rulemaking; Illinois Gaming Board. To provide for the expeditious and timely implementation of Sections 120 through 120.8 of the Sports Wagering Act, emergency rules implementing the Sections 120 through 120.8 of the Sports Wagering Act may be adopted in accordance with Section 5-45 by the Illinois Gaming Board. The adoption of emergency rules authorized by Section 5-45 and this Section is deemed to be necessary for the public interest, safety, and welfare.

This Section is repealed one year after the effective date of this amendatory Act of the 104th General Assembly.

Section 10. The Sports Wagering Act is amended by changing Sections 25-10, 25-25, 25-45, 25-95, and 25-100 and by adding Sections 25-120, 25-120.1, 25-120.2, 25-120.3, 25-120.4, 25-120.5, 25-120.6, 25-120.7, and 25-120.8 as follows:

(230 ILCS 45/25-10)

Sec. 25-10. Definitions. As used in this Act:

"Adjusted gross sports wagering receipts" means a master sports wagering licensee's gross sports wagering receipts, less winnings paid to wagerers in such games.

"Athlete" means any current or former professional athlete or collegiate athlete.

"Board" means the Illinois Gaming Board.

"Covered persons" includes athletes; umpires, referees, and officials; personnel associated with clubs, teams, leagues, and athletic associations; medical professionals (including athletic trainers) who provide services to athletes and players; and the family members and associates of these persons where required to serve the purposes of this Act.

"Department" means the Department of the Lottery.

"Gaming facility" means a facility at which gambling operations are conducted under the Illinois Gambling Act, pari-mutuel wagering is conducted under the Illinois Horse Racing Act of 1975, or sports wagering is conducted under this Act.

"Official league data" means statistics, results, outcomes, and other data related to a sports event obtained pursuant to an agreement with the relevant sports governing body, or an entity expressly authorized by the sports governing body to provide such information to licensees, that authorizes the use of such data for determining the outcome of tier 2 sports wagers on such sports events.

"Organization licensee" has the meaning given to that term in the Illinois Horse Racing Act of 1975.

"Owners licensee" means the holder of an owners license under the Illinois Gambling Act.

"Person" means an individual, partnership, committee, association, corporation, or any other organization or group of persons.

"Personal biometric data" means an athlete's information derived from DNA, heart rate, blood pressure, perspiration rate, internal or external body temperature, hormone levels, glucose levels, hydration levels, vitamin levels, bone density, muscle density, and sleep patterns.

"Prohibited conduct" includes any statement, action, and other communication intended to influence, manipulate, or control a betting outcome of a sporting contest or of any individual occurrence or performance in a sporting contest in exchange for financial gain or to avoid financial or physical harm. "Prohibited conduct" includes statements, actions, and communications made to a covered person by a third party, such as a family member or through social media. "Prohibited conduct" does not include statements, actions, or communications made or sanctioned by a team or sports governing body.

"Qualified applicant" means an applicant for a license under this Act whose application meets the mandatory minimum qualification criteria as required by the Board.

"Sporting contest" means a sports event or game on which the State allows sports wagering to occur under this Act.

"Sports event" means a professional sport or athletic event, a collegiate sport or athletic event, a motor race event, or any other event or competition of relative skill authorized by the Board under this Act.

"Sports facility" means a facility that hosts sports events and holds a seating capacity greater than 17,000 persons, except in a municipality with a population of more than 1,000,000, a seating capacity greater than 10,000 persons.

"Sports governing body" means the organization that prescribes final rules and enforces codes of conduct with respect to a sports event and participants therein.

"Sports wagering" means accepting wagers on sports events or portions of sports events, or on the individual performance statistics of athletes in a sports event or combination of sports events, by any system or method of wagering, including, but not limited to, in person or over the Internet through websites and on mobile devices. "Sports wagering" includes, but is not limited to, single-game bets, teaser bets, parlays, over-under, moneyline, pools, exchange wagering, in-game wagering, in-play bets, proposition bets, and straight bets. "Sports wagering" does not include fantasy contests as that term is defined in Section 25-120.1.

"Sports wagering account" means a financial record established by a master sports wagering licensee for an individual patron in which the patron may deposit and withdraw funds for sports wagering and other authorized purchases and to which the master sports wagering licensee may credit winnings or other amounts due to that patron or authorized by that patron.

"Tier 1 sports wager" means a sports wager that is determined solely by the final score or final outcome of the sports event and is placed before the sports event has begun.

"Tier 2 sports wager" means a sports wager that is not a tier 1 sports wager.

"Wager" means a sum of money or thing of value risked on an uncertain occurrence.

"Winning bidder" means a qualified applicant for a master sports wagering license chosen through the competitive selection process under Section 25-45.

(Source: P.A. 101-31, eff. 6-28-19; 102-689, eff. 12-17-21.)

(230 ILCS 45/25-25)

Sec. 25-25. Sports wagering authorized.

(a) Notwithstanding any provision of law to the contrary, the operation of sports wagering is only lawful when conducted in accordance with the provisions of this Act and the rules of the Illinois Gaming Board and the Department of the Lottery.

(b) A person placing a wager under this Act shall be at least 21 years of age.

(c) A licensee under this Act may not accept a wager on a minor league sports event.

(d) Except as otherwise provided in this Section, a licensee under this Act may not accept a wager for a sports event involving an Illinois collegiate team.

(d-5) Beginning on the effective date of this amendatory Act of the 102nd General Assembly until July 1, 2024, a licensee under this Act may accept a wager for a sports event involving an Illinois collegiate team if:

(1) the wager is a tier 1 wager;

(2) the wager is not related to an individual athlete's performance; and

(3) the wager is made in person instead of over the Internet or through a mobile application.

(e) A licensee under this Act may only accept a wager from a person physically located in the State.

(f) Master sports wagering licensees may use any data source for determining the results of all tier 1 sports wagers.

(g) A sports governing body headquartered in the United States may notify the Board that it desires to supply official league data to master sports wagering licensees for determining the results of tier 2 sports wagers. Such notification shall be made in the form and manner as the Board may require. If a sports governing body does not notify the Board of its desire to supply official league data, a master sports wagering licensee may use any data source for determining the results of any and all tier 2 sports wagers on sports contests for that sports governing body.

Within 30 days of a sports governing body notifying the Board, master sports wagering licensees shall use only official league data to determine the results of tier 2 sports wagers on sports events sanctioned by that sports governing body, unless: (1) the sports governing body or designee cannot provide a feed of official league data to determine the results of a particular type of tier 2 sports wager, in which case master sports wagering licensees may use any data source for determining the results of the applicable tier 2 sports wager until such time as such data feed becomes available on commercially reasonable terms; or (2) a master sports wagering licensee can demonstrate to the Board that the sports governing body or its designee cannot provide a feed of official league data to the master sports wagering licensee on commercially reasonable terms. During the pendency of the Board's determination, such master sports wagering licensee may use any data source for determining the results of any and all tier 2 sports wagers.

(h) A licensee under this Act may not accept wagers on a kindergarten through 12th grade sports event.

(i) A licensee may offer pool sports wagering to State patrons where State patrons compete against patrons located outside of the State. In such cases, the pool must be expressly permitted in all jurisdictions in which it is offered and must comply with all laws, rules, and regulations in all jurisdictions in which it is offered. The adjusted gross sports wagering receipts of an interstate pool shall be determined by the total value of all wagers placed in the State less the proportional pro rata value of all winnings paid to patrons. The pro rata value of all winnings shall be determined by the ratio of the total value of all wagers placed in the State divided by the total value of all wagers placed in the pool, to the nearest .01%.

(Source: P.A. 102-689, eff. 12-17-21; 103-4, eff. 5-31-23.)

(230 ILCS 45/25-45)

Sec. 25-45. Master sports wagering license issued to an online sports wagering operator.

(a) The Board may issue master sports wagering licenses to persons to conduct sports wagering over the Internet or through a mobile application. The Board shall issue 3 master sports wagering licenses to online sports wagering operators for a nonrefundable license fee of $20,000,000 pursuant to an open and competitive selection process. The master sports wagering license issued under this Section may be renewed every 4 years upon payment of a $1,000,000 renewal fee. To the extent permitted by federal and State law, the Board shall actively seek to achieve racial, ethnic, and geographic diversity when issuing master sports wagering licenses under this Section and encourage minority-owned businesses, women-owned businesses, veteran-owned businesses, and businesses owned by persons with disabilities to apply for licensure.

For the purposes of this subsection (a), "minority-owned business", "women-owned business", and "business owned by persons with disabilities" have the meanings given to those terms in Section 2 of the Business Enterprise for Minorities, Women, and Persons with Disabilities Act.

(b) Applicants shall pay to the Board a nonrefundable application fee in the amount of $250,000. The initial license fee for a master sports wagering license issued to an online sports wagering operator is $15,000,000. The master sports wagering license is valid for 4 years. Applications for the initial competitive selection occurring after the effective date of this Act shall be received by the Board within 540 days after the first license is issued under this Act to qualify. The Board shall announce the winning bidders for the initial competitive selection within 630 days after the first license is issued under this Act, and this time frame may be extended at the discretion of the Board.

(c) A licensee may renew the master sports wagering license for a period of 4 years by paying a $1,000,000 renewal fee to the Board. The Board shall provide public notice of its intent to solicit applications for master sports wagering licenses under this Section by posting the notice, application instructions, and materials on its website for at least 30 calendar days before the applications are due. Failure by an applicant to submit all required information may result in the application being disqualified. The Board may notify an applicant that its application is incomplete and provide an opportunity to cure by rule. Application instructions shall include a brief overview of the selection process and how applications are scored.

(d) A master sports wagering licensee may conduct sports wagering over the Internet or through a mobile application. To be eligible for a master sports wagering license under this Section, an applicant must: (1) be at least 21 years of age; (2) not have been convicted of a felony offense or a violation of Article 28 of the Criminal Code of 1961 or the Criminal Code of 2012 or a similar statute of any other jurisdiction; (3) not have been convicted of a crime involving dishonesty or moral turpitude; (4) have demonstrated a level of skill or knowledge that the Board determines to be necessary in order to operate sports wagering; and (5) have met standards for the holding of a license as adopted by rules of the Board.

The Board may adopt rules to establish additional qualifications and requirements to preserve the integrity and security of sports wagering in this State and to promote and maintain a competitive sports wagering market. After the close of the application period, the Board shall determine whether the applications meet the mandatory minimum qualification criteria and conduct a comprehensive, fair, and impartial evaluation of all qualified applications.

(e) (Blank). The Board shall open all qualified applications in a public forum and disclose the applicants' names. The Board shall summarize the terms of the proposals and make the summaries available to the public on its website.

(f) (Blank). Not more than 90 days after the publication of the qualified applications, the Board shall identify the winning bidders. In granting the licenses, the Board may give favorable consideration to qualified applicants presenting plans that provide for economic development and community engagement. To the extent permitted by federal and State law, the Board may give favorable consideration to qualified applicants demonstrating commitment to diversity in the workplace.

(g) (Blank). Upon selection of the winning bidders, the Board shall have a reasonable period of time to ensure compliance with all applicable statutory and regulatory criteria before issuing the licenses. If the Board determines a winning bidder does not satisfy all applicable statutory and regulatory criteria, the Board shall select another bidder from the remaining qualified applicants.

(h) (Blank). Nothing in this Section is intended to confer a property or other right, duty, privilege, or interest entitling an applicant to an administrative hearing upon denial of an application.

(i) (Blank). Upon issuance of a master sports wagering license to a winning bidder, the information and plans provided in the application become a condition of the license. A master sports wagering licensee under this Section has a duty to disclose any material changes to the application. Failure to comply with the conditions or requirements in the application may subject the master sports wagering licensee under this Section to discipline, including, but not limited to, fines, suspension, and revocation of its license, pursuant to rules adopted by the Board.

(j) (Blank). The Board shall disseminate information about the licensing process through media demonstrated to reach large numbers of business owners and entrepreneurs who are minorities, women, veterans, and persons with disabilities.

(k) (Blank). The Department of Commerce and Economic Opportunity, in conjunction with the Board, shall conduct ongoing, thorough, and comprehensive outreach to businesses owned by minorities, women, veterans, and persons with disabilities about contracting and entrepreneurial opportunities in sports wagering. This outreach shall include, but not be limited to:

(1) cooperating and collaborating with other State boards, commissions, and agencies; public and private universities and community colleges; and local governments to target outreach efforts; and

(2) working with organizations serving minorities, women, and persons with disabilities to establish and conduct training for employment in sports wagering.

(l) (Blank). The Board shall partner with the Department of Labor, the Department of Financial and Professional Regulation, and the Department of Commerce and Economic Opportunity to identify employment opportunities within the sports wagering industry for job seekers and dislocated workers.

(m) By March 1, 2020, the Board shall prepare a request for proposals to conduct a study of the online sports wagering industry and market to determine whether there is a compelling interest in implementing remedial measures, including the application of the Business Enterprise Program under the Business Enterprise for Minorities, Women, and Persons with Disabilities Act or a similar program to assist minorities, women, and persons with disabilities in the sports wagering industry.

As a part of the study, the Board shall evaluate race and gender-neutral programs or other methods that may be used to address the needs of minority and women applicants and minority-owned and women-owned businesses seeking to participate in the sports wagering industry. The Board shall submit to the General Assembly and publish on its website the results of this study by August 1, 2020.

If, as a result of the study conducted under this subsection (m), the Board finds that there is a compelling interest in implementing remedial measures, the Board may adopt rules, including emergency rules, to implement remedial measures, if necessary and to the extent permitted by State and federal law, based on the findings of the study conducted under this subsection (m).

(Source: P.A. 101-31, eff. 6-28-19.)

(230 ILCS 45/25-95)

Sec. 25-95. Compulsive gambling. Each master sports wagering licensee and fantasy contest operator licensee shall include a statement regarding obtaining assistance with gambling problems, the text of which shall be determined by rule by the Department of Human Services, on the master sports wagering licensee's portal, Internet website, or computer or mobile application.

(Source: P.A. 101-31, eff. 6-28-19.)

(230 ILCS 45/25-100)

Sec. 25-100. Voluntary self-exclusion program for sports wagering and fantasy contests. Any resident, or non-resident if allowed to participate in sports wagering or fantasy contests, may voluntarily prohibit himself or herself from establishing a sports wagering account or fantasy contest account with a licensee under this Act. The Board and Department shall incorporate the voluntary self-exclusion program for sports wagering and fantasy contests into any existing self-exclusion program that it operates on the effective date of this Act.

(Source: P.A. 101-31, eff. 6-28-19.)

(230 ILCS 45/25-120 new)

Sec. 25-120. Fantasy contests; legislative intent. Fantasy contests are sufficiently similar to sports wagering to necessitate regulation by the State. The State seeks to ensure both public confidence and trust in the credibility and integrity of fantasy contests, as well as to protect the public health and general welfare of the people of the State. Therefore, regulatory provisions of this Act are designed to strictly regulate the facilities, persons, associations, and practices related to fantasy contest operations pursuant to the police powers of the State, including comprehensive law enforcement supervision.

(230 ILCS 45/25-120.1 new)

Sec. 25-120.1. Definitions. As used in Sections 120 through 120.8:

"Adjusted gross fantasy contest receipts" means the amount equal to intrastate gross fantasy contest receipts plus interstate gross fantasy contest receipts.

"Entry fee" means a nonrefundable cash or cash equivalent that is paid by or on behalf of a participant and set in advance by a fantasy contest operator granting the participant the right to participate in a fantasy contest.

"Fantasy contest" means an online contest of skill between 2 or more participants with an entry fee where:

(1) the values of all prizes offered to a winning participant are established and made known to the participant in advance of the contest;

(2) all winning outcomes reflect the relative knowledge and skill of the participant;

(3) the participant assembles, owns, or manages a fictional entry or roster of actual professional or amateur athletes, in real-world sports events, or other event or competition of relative skill authorized by the Board;

(4) a participant competes for prizes awarded by a fantasy contest operator based on terms and conditions published by the fantasy contest operator and made known to the participant in advance of the contest;

(5) winning outcomes are determined solely by clearly preestablished, objective scoring criteria based on one or more statistical results of the performance of an individual athlete, including, but not limited to, a fantasy score; and

(6) no winning outcome is entirely based on the score, point spread, or any performance of any single actual team or combination of teams or solely on any single performance of an individual athlete or player in any single actual event. "Fantasy contest" does not include contests wherein only a single participant competes against a target score set by the fantasy contest operator. "Fantasy contest" does not include any fantasy contest without an entry fee.

"Fantasy contest operator" means a person or entity that offers fantasy contests to members of the public. "Fantasy contest operator" does not include an Internet service provider or a provider of mobile data services merely as a result of that entity's transporting general traffic that may include a fantasy contest.

"Interstate gross fantasy contest receipts" means the amount equal to the total of all entry fees that a fantasy contest operator collects from all participants in contests where all participants are located in this State less the total of all prizes paid out to participants in those contests.

"Intrastate gross fantasy contest receipts" means, in contests which include both State and non-State participants, the amount equal to the total of all entry fees that a fantasy contest operator collects from all participants less the total of all prizes paid out to participants in those contests multiplied by the location percentage for the State.

"Location percentage" means the percentage, rounded to the nearest 0.1%, of the total entry fees collected from players located in this State in any fantasy contest which includes both State and non-State participants divided by the total entry fees collected from all players in those contests.

"Participant" means an individual who participates in a fantasy contest offered by a fantasy contest operator.

(230 ILCS 45/25-120.2 new)

Sec. 25-120.2. Board powers.

(a) The Board may regulate the conduct of fantasy contest operators under this Act.

(b) The Board shall adopt any rules the Board considers necessary for the successful implementation, administration, and enforcement of this Act. Rules proposed by the Board may be adopted as emergency rules under Section 5-45 of the Illinois Administrative Procedure Act.

(c) The Board shall levy and collect all fees, surcharges, civil penalties, and, on adjusted gross fantasy contest receipts imposed under this Act, monthly taxes as follows:

(1) All application, licensing, and renewal fees collected under this Act shall be deposited in the State Gaming Fund.

(2) All taxes collected under Section 25-120.6 shall be deposited into the State Gaming Fund.

(3) All civil penalties or fines levied under this Section shall be deposited in accordance with the Illinois Gambling Act.

(d) The Board may exercise any other powers necessary to enforce the provisions of this Act that it regulates and the rules of the Board.

(e) The Board and fantasy contest operator licensees may cooperate with investigations conducted by law enforcement agencies, including, but not limited to, providing and facilitating the provision of account-level entry and participation information.

(230 ILCS 45/25-120.3 new)

Sec. 25-120.3. Licensure required.

(a) Except as otherwise provided in this Section, a person may not offer fantasy contests in this State unless the person is licensed by the Board as a fantasy contest operator. No party other than an owner or key person of a licensee may receive revenue share from the operation of fantasy contests without holding a fantasy contest operator license.

(b) A fantasy contest operator that was offering contests to persons located in the State before the effective date of this amendatory Act of the 104th General Assembly may continue to offer contests to persons located in the State until 90 days after the effective date of rules implementing this amendatory Act of the 104th General Assembly. The Board shall issue a temporary operating permit to a fantasy contest operator that was offering contests to persons located in this State before the effective date of this amendatory Act of the 104th General Assembly if the fantasy contest operator files an application for licensure with the Board and pays the required license application fee within 90 days of the effective date of rules implementing this amendatory Act of the 104th General Assembly, subject to Board rules.

(c) The burden is upon each applicant to demonstrate the applicant's suitability for licensure. An applicant for a license issued under this Act shall submit an application to the Board in the form the Board requires. Each person seeking licensure shall submit to a background investigation conducted by the Board with the assistance of the Illinois State Police or other law enforcement.

(1) To the extent that the corporate structure of the applicant allows, the background investigation shall include any or all of the following as the Board deems appropriate or as provided by rule for each category of licensure:

(A) each beneficiary of a trust;

(B) each partner of a partnership;

(C) each member of a limited liability company;

(D) each director and officer of a publicly or nonpublicly held corporation;

(E) each stockholder of a nonpublicly held corporation;

(F) each stockholder of 5% or more of a publicly held corporation; or

(G) each stockholder of 5% or more in a parent or subsidiary corporation.

(2) Each applicant shall disclose the identity of every person, association, trust, corporation, or limited liability company having a greater than 1% direct or indirect pecuniary interest in the fantasy contest for which the license is sought. If the disclosed entity is a trust, the application shall disclose the names and addresses of the beneficiaries; if a corporation, the names and addresses of all stockholders and directors; if a limited liability company, the names and addresses of all members; or if a partnership, the names and addresses of all partners, both general and limited.

(d) To be eligible for a fantasy contest operator license under this Section, an applicant and its key persons must at minimum:

(1) be at least 21 years of age;

(2) not have been convicted of a felony offense or a violation of Article 28 of the Criminal Code of 1961 or the Criminal Code of 2012 or a similar statute of any other jurisdiction;

(3) not have been convicted of a crime involving dishonesty or moral turpitude;

(4) have demonstrated a level of skill or knowledge that the Board determines to be necessary in order to operate fantasy contests; and

(5) have met standards for the holding of a license as adopted by rules of the Board.

(e) No person may be licensed if that person has been found by the Board to:

(1) have a background, including a criminal record, reputation, habits, social or business associations, or prior activities that pose a threat to the public interests of the State or to the security and integrity of fantasy contest operations;

(2) create or enhance the dangers of unsuitable, unfair, or illegal practices, methods, and activities in the conduct of fantasy contest operations; or

(3) present questionable business practices and financial arrangements incidental to the conduct of fantasy contest operations.

(f) The Board may adopt rules to establish additional qualifications and requirements to preserve the integrity and security of fantasy contests in this State and to promote and maintain a competitive fantasy sports market.

(g) On receipt of a completed application and the required fee, the Board shall conduct the necessary background investigation to determine if the applicant meets the qualifications for licensure. On completion of the necessary background investigation, the Board shall either issue a license or deny the application. The Board shall establish procedures to conduct hearings for any person denied licensure.

(h) A nonrefundable application fee of $50,000 shall be paid at the time of application.

(i) A license fee of $500,000 shall be paid within 30 days of the issuance of an initial license. The term of the initial license shall be for 4 years.

(j) A license renewal fee of $50,000 shall be paid 30 days of the renewal of a license.

(230 ILCS 45/25-120.4 new)

Sec. 25-120.4. Conduct of contests.

(a) Any fantasy contest conducted under this Act does not constitute gambling for any purpose, including under Article 28 of the Criminal Code of 1961 or the Criminal Code of 2012.

(b) Notwithstanding any provision of law to the contrary, the operation of fantasy contests is only lawful when conducted in accordance with the provisions of this Act.

(c) A person participating in a fantasy contest under this Act shall be at least 21 years of age.

(d) A licensee under this Act may only accept an entry from a person physically located in the State. A fantasy contest operator must use a geolocation system to ensure that a participant is physically present in the State when participating in the fantasy contest unless otherwise authorized by the Board.

(e) When offering interstate fantasy contests to State participants, such contests may only be offered in the State if the contest is affirmatively legal in each other state in which it is offered.

(f) No athlete, competitor, referee, official, coach, manager, medical professional, or athletic trainer or employee or contractor of a team or athletic organization who has access to nonpublic information concerning an athlete or team may engage in fantasy contests involving an event or the performance of an individual in an event in which the person is participating or otherwise has access to nonpublic or exclusive information.

(g) No key person or employee of a fantasy contest operator licensee may participate in fantasy contests offered by licensee.

(230 ILCS 45/25-120.5 new)

Sec. 25-120.5. Duties of licensees.

(a) Licensees shall comply with all applicable anti-money laundering standards, as defined by the federal Bank Secrecy Act of 1970 and the Anti-Money Laundering Act of 2020.

(b) Licensees have an affirmative duty to prevent underage participation in fantasy contents. Licensees shall establish technical and operational measures to prevent underage participation in a fantasy contest.

(c) Licensees shall implement identity verification procedures, consistent with modern best practices, to verify an individual's personally identifiable information and can detect potential prohibited participants.

(d) Licensees shall employ mechanisms on the operator's platform that are designed to detect and prevent unauthorized accounts and to detect and prevent fraud, money laundering, and collusion.

(e) Licensees shall implement geolocation technology to verify that a participant is not accessing the platform from a restricted jurisdiction.

(f) Licensees shall make all reasonable efforts to promptly notify the Board of any information relating to:

(1) a confirmed breach of the relevant sport's governing body's internal rules and codes of conduct pertaining to participation in real-money fantasy contests;

(2) any conduct that corrupts any outcome related to a sports event or sports events for purposes of financial gain, including match fixing; and

(3) suspected illegal activities, including use of funds derived from illegal activity, entries to conceal or launder funds derived from illegal activity, multi-accounting, and using false identification.

(230 ILCS 45/25-120.6 new)

Sec. 25-120.6. Audits and record keeping.

(a) Licensees shall contract with a certified public accountant to conduct an annual independent audit consistent with generally accepted accounting principles and any additional standards adopted by the Board.

(b) A licensee's fantasy contest platform must be tested and certified by an independent outside testing laboratory approved by the Board prior to commencement of fantasy contests under this Act. The licensee shall have the fantasy contest platform re-tested and certified on an annual basis.

(c) Each licensee shall maintain in a place, secure from theft, loss, or destruction, adequate records of business operations that shall be made available to the Board upon request. These records shall be held for at least as long as prescribed by the records retention schedule published by the Board, or longer if otherwise prescribed by general accounting and auditing procedures, litigation needs, or State or federal law. These records shall be maintained in a manner accessible to the Board or in a digital format prescribed by the Board.

(230 ILCS 45/25-120.7 new)

Sec. 25-120.7. Tax. Beginning on July 1, 2025, and for each 12-month period thereafter, for the privilege of holding a license to operate fantasy contests under this Act, this State shall impose a privilege tax on the fantasy contest operator licensee's adjusted gross fantasy contest receipts based on the following rates:

(1) 20% of annual adjusted gross fantasy contest receipts to and including $1,000,000.

(2) 25% of annual adjusted gross fantasy contest receipts of $3,000,000 but not exceeding $5,000,000.

(3) 30% of annual adjusted gross fantasy contest receipts of $5,000,000 but not exceeding $10,000,000.

(4) 35% of annual adjusted gross fantasy contest receipts $10,000,000 but not exceeding $20,000,000.

(5) 40% of annual adjusted gross fantasy contest receipts in excess of $20,000,000.

(230 ILCS 45/25-120.8 new)

Sec. 25-120.8. Responsible gaming.

(a) Each fantasy contest operator shall include a statement regarding obtaining assistance with gambling problems, the text of which shall be determined by rule by the Department of Human Services, on the licensee's portal, Internet website, or computer or mobile application.

(b) Any resident, or nonresident if allowed to participate in fantasy contests, may voluntarily prohibit themselves from establishing an account with a licensee under this Act. The Board shall incorporate the voluntary self-exclusion program for fantasy contests into any existing self-exclusion program that it operates on the effective date of this amendatory Act of the 104th General Assembly.

Section 15. 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.

(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, except fantasy contests as defined by the Sports Wagering Act.

(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.)

Section 99. Effective date. This Act takes effect upon becoming law.