100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB3452

 

Introduced 2/16/2018, by Sen. Terry Link

 

SYNOPSIS AS INTRODUCED:
 
230 ILCS 5/26  from Ch. 8, par. 37-26
230 ILCS 5/26.8
230 ILCS 5/26.9
230 ILCS 5/27  from Ch. 8, par. 37-27

    Amends the Illinois Horse Racing Act of 1975. Extends the authorization for advance deposit wagering to December 31, 2022 (rather than December 31, 2018). Effective immediately.


LRB100 20566 MJP 35970 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3452LRB100 20566 MJP 35970 b

1    AN ACT concerning gaming.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Horse Racing Act of 1975 is amended
5by changing Sections 26, 26.8, 26.9, and 27 as follows:
 
6    (230 ILCS 5/26)  (from Ch. 8, par. 37-26)
7    Sec. 26. Wagering.
8    (a) Any licensee may conduct and supervise the pari-mutuel
9system of wagering, as defined in Section 3.12 of this Act, on
10horse races conducted by an Illinois organization licensee or
11conducted at a racetrack located in another state or country
12and televised in Illinois in accordance with subsection (g) of
13Section 26 of this Act. Subject to the prior consent of the
14Board, licensees may supplement any pari-mutuel pool in order
15to guarantee a minimum distribution. Such pari-mutuel method of
16wagering shall not, under any circumstances if conducted under
17the provisions of this Act, be held or construed to be
18unlawful, other statutes of this State to the contrary
19notwithstanding. Subject to rules for advance wagering
20promulgated by the Board, any licensee may accept wagers in
21advance of the day of the race wagered upon occurs.
22    (b) No other method of betting, pool making, wagering or
23gambling shall be used or permitted by the licensee. Each

 

 

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1licensee may retain, subject to the payment of all applicable
2taxes and purses, an amount not to exceed 17% of all money
3wagered under subsection (a) of this Section, except as may
4otherwise be permitted under this Act.
5    (b-5) An individual may place a wager under the pari-mutuel
6system from any licensed location authorized under this Act
7provided that wager is electronically recorded in the manner
8described in Section 3.12 of this Act. Any wager made
9electronically by an individual while physically on the
10premises of a licensee shall be deemed to have been made at the
11premises of that licensee.
12    (c) Until January 1, 2000, the sum held by any licensee for
13payment of outstanding pari-mutuel tickets, if unclaimed prior
14to December 31 of the next year, shall be retained by the
15licensee for payment of such tickets until that date. Within 10
16days thereafter, the balance of such sum remaining unclaimed,
17less any uncashed supplements contributed by such licensee for
18the purpose of guaranteeing minimum distributions of any
19pari-mutuel pool, shall be paid to the Illinois Veterans'
20Rehabilitation Fund of the State treasury, except as provided
21in subsection (g) of Section 27 of this Act.
22    (c-5) Beginning January 1, 2000, the sum held by any
23licensee for payment of outstanding pari-mutuel tickets, if
24unclaimed prior to December 31 of the next year, shall be
25retained by the licensee for payment of such tickets until that
26date. Within 10 days thereafter, the balance of such sum

 

 

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1remaining unclaimed, less any uncashed supplements contributed
2by such licensee for the purpose of guaranteeing minimum
3distributions of any pari-mutuel pool, shall be evenly
4distributed to the purse account of the organization licensee
5and the organization licensee.
6    (d) A pari-mutuel ticket shall be honored until December 31
7of the next calendar year, and the licensee shall pay the same
8and may charge the amount thereof against unpaid money
9similarly accumulated on account of pari-mutuel tickets not
10presented for payment.
11    (e) No licensee shall knowingly permit any minor, other
12than an employee of such licensee or an owner, trainer, jockey,
13driver, or employee thereof, to be admitted during a racing
14program unless accompanied by a parent or guardian, or any
15minor to be a patron of the pari-mutuel system of wagering
16conducted or supervised by it. The admission of any
17unaccompanied minor, other than an employee of the licensee or
18an owner, trainer, jockey, driver, or employee thereof at a
19race track is a Class C misdemeanor.
20    (f) Notwithstanding the other provisions of this Act, an
21organization licensee may contract with an entity in another
22state or country to permit any legal wagering entity in another
23state or country to accept wagers solely within such other
24state or country on races conducted by the organization
25licensee in this State. Beginning January 1, 2000, these wagers
26shall not be subject to State taxation. Until January 1, 2000,

 

 

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1when the out-of-State entity conducts a pari-mutuel pool
2separate from the organization licensee, a privilege tax equal
3to 7 1/2% of all monies received by the organization licensee
4from entities in other states or countries pursuant to such
5contracts is imposed on the organization licensee, and such
6privilege tax shall be remitted to the Department of Revenue
7within 48 hours of receipt of the moneys from the simulcast.
8When the out-of-State entity conducts a combined pari-mutuel
9pool with the organization licensee, the tax shall be 10% of
10all monies received by the organization licensee with 25% of
11the receipts from this 10% tax to be distributed to the county
12in which the race was conducted.
13    An organization licensee may permit one or more of its
14races to be utilized for pari-mutuel wagering at one or more
15locations in other states and may transmit audio and visual
16signals of races the organization licensee conducts to one or
17more locations outside the State or country and may also permit
18pari-mutuel pools in other states or countries to be combined
19with its gross or net wagering pools or with wagering pools
20established by other states.
21    (g) A host track may accept interstate simulcast wagers on
22horse races conducted in other states or countries and shall
23control the number of signals and types of breeds of racing in
24its simulcast program, subject to the disapproval of the Board.
25The Board may prohibit a simulcast program only if it finds
26that the simulcast program is clearly adverse to the integrity

 

 

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1of racing. The host track simulcast program shall include the
2signal of live racing of all organization licensees. All
3non-host licensees and advance deposit wagering licensees
4shall carry the signal of and accept wagers on live racing of
5all organization licensees. Advance deposit wagering licensees
6shall not be permitted to accept out-of-state wagers on any
7Illinois signal provided pursuant to this Section without the
8approval and consent of the organization licensee providing the
9signal. For one year after August 15, 2014 (the effective date
10of Public Act 98-968), non-host licensees may carry the host
11track simulcast program and shall accept wagers on all races
12included as part of the simulcast program of horse races
13conducted at race tracks located within North America upon
14which wagering is permitted. For a period of one year after
15August 15, 2014 (the effective date of Public Act 98-968), on
16horse races conducted at race tracks located outside of North
17America, non-host licensees may accept wagers on all races
18included as part of the simulcast program upon which wagering
19is permitted. Beginning August 15, 2015 (one year after the
20effective date of Public Act 98-968), non-host licensees may
21carry the host track simulcast program and shall accept wagers
22on all races included as part of the simulcast program upon
23which wagering is permitted. All organization licensees shall
24provide their live signal to all advance deposit wagering
25licensees for a simulcast commission fee not to exceed 6% of
26the advance deposit wagering licensee's Illinois handle on the

 

 

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1organization licensee's signal without prior approval by the
2Board. The Board may adopt rules under which it may permit
3simulcast commission fees in excess of 6%. The Board shall
4adopt rules limiting the interstate commission fees charged to
5an advance deposit wagering licensee. The Board shall adopt
6rules regarding advance deposit wagering on interstate
7simulcast races that shall reflect, among other things, the
8General Assembly's desire to maximize revenues to the State,
9horsemen purses, and organizational licensees. However,
10organization licensees providing live signals pursuant to the
11requirements of this subsection (g) may petition the Board to
12withhold their live signals from an advance deposit wagering
13licensee if the organization licensee discovers and the Board
14finds reputable or credible information that the advance
15deposit wagering licensee is under investigation by another
16state or federal governmental agency, the advance deposit
17wagering licensee's license has been suspended in another
18state, or the advance deposit wagering licensee's license is in
19revocation proceedings in another state. The organization
20licensee's provision of their live signal to an advance deposit
21wagering licensee under this subsection (g) pertains to wagers
22placed from within Illinois. Advance deposit wagering
23licensees may place advance deposit wagering terminals at
24wagering facilities as a convenience to customers. The advance
25deposit wagering licensee shall not charge or collect any fee
26from purses for the placement of the advance deposit wagering

 

 

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1terminals. The costs and expenses of the host track and
2non-host licensees associated with interstate simulcast
3wagering, other than the interstate commission fee, shall be
4borne by the host track and all non-host licensees incurring
5these costs. The interstate commission fee shall not exceed 5%
6of Illinois handle on the interstate simulcast race or races
7without prior approval of the Board. The Board shall promulgate
8rules under which it may permit interstate commission fees in
9excess of 5%. The interstate commission fee and other fees
10charged by the sending racetrack, including, but not limited
11to, satellite decoder fees, shall be uniformly applied to the
12host track and all non-host licensees.
13    Notwithstanding any other provision of this Act, through
14December 31, 2022 2018, an organization licensee, with the
15consent of the horsemen association representing the largest
16number of owners, trainers, jockeys, or standardbred drivers
17who race horses at that organization licensee's racing meeting,
18may maintain a system whereby advance deposit wagering may take
19place or an organization licensee, with the consent of the
20horsemen association representing the largest number of
21owners, trainers, jockeys, or standardbred drivers who race
22horses at that organization licensee's racing meeting, may
23contract with another person to carry out a system of advance
24deposit wagering. Such consent may not be unreasonably
25withheld. Only with respect to an appeal to the Board that
26consent for an organization licensee that maintains its own

 

 

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1advance deposit wagering system is being unreasonably
2withheld, the Board shall issue a final order within 30 days
3after initiation of the appeal, and the organization licensee's
4advance deposit wagering system may remain operational during
5that 30-day period. The actions of any organization licensee
6who conducts advance deposit wagering or any person who has a
7contract with an organization licensee to conduct advance
8deposit wagering who conducts advance deposit wagering on or
9after January 1, 2013 and prior to June 7, 2013 (the effective
10date of Public Act 98-18) taken in reliance on the changes made
11to this subsection (g) by Public Act 98-18 are hereby
12validated, provided payment of all applicable pari-mutuel
13taxes are remitted to the Board. All advance deposit wagers
14placed from within Illinois must be placed through a
15Board-approved advance deposit wagering licensee; no other
16entity may accept an advance deposit wager from a person within
17Illinois. All advance deposit wagering is subject to any rules
18adopted by the Board. The Board may adopt rules necessary to
19regulate advance deposit wagering through the use of emergency
20rulemaking in accordance with Section 5-45 of the Illinois
21Administrative Procedure Act. The General Assembly finds that
22the adoption of rules to regulate advance deposit wagering is
23deemed an emergency and necessary for the public interest,
24safety, and welfare. An advance deposit wagering licensee may
25retain all moneys as agreed to by contract with an organization
26licensee. Any moneys retained by the organization licensee from

 

 

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1advance deposit wagering, not including moneys retained by the
2advance deposit wagering licensee, shall be paid 50% to the
3organization licensee's purse account and 50% to the
4organization licensee. With the exception of any organization
5licensee that is owned by a publicly traded company that is
6incorporated in a state other than Illinois and advance deposit
7wagering licensees under contract with such organization
8licensees, organization licensees that maintain advance
9deposit wagering systems and advance deposit wagering
10licensees that contract with organization licensees shall
11provide sufficiently detailed monthly accountings to the
12horsemen association representing the largest number of
13owners, trainers, jockeys, or standardbred drivers who race
14horses at that organization licensee's racing meeting so that
15the horsemen association, as an interested party, can confirm
16the accuracy of the amounts paid to the purse account at the
17horsemen association's affiliated organization licensee from
18advance deposit wagering. If more than one breed races at the
19same race track facility, then the 50% of the moneys to be paid
20to an organization licensee's purse account shall be allocated
21among all organization licensees' purse accounts operating at
22that race track facility proportionately based on the actual
23number of host days that the Board grants to that breed at that
24race track facility in the current calendar year. To the extent
25any fees from advance deposit wagering conducted in Illinois
26for wagers in Illinois or other states have been placed in

 

 

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1escrow or otherwise withheld from wagers pending a
2determination of the legality of advance deposit wagering, no
3action shall be brought to declare such wagers or the
4disbursement of any fees previously escrowed illegal.
5        (1) Between the hours of 6:30 a.m. and 6:30 p.m. an
6    inter-track wagering licensee other than the host track may
7    supplement the host track simulcast program with
8    additional simulcast races or race programs, provided that
9    between January 1 and the third Friday in February of any
10    year, inclusive, if no live thoroughbred racing is
11    occurring in Illinois during this period, only
12    thoroughbred races may be used for supplemental interstate
13    simulcast purposes. The Board shall withhold approval for a
14    supplemental interstate simulcast only if it finds that the
15    simulcast is clearly adverse to the integrity of racing. A
16    supplemental interstate simulcast may be transmitted from
17    an inter-track wagering licensee to its affiliated
18    non-host licensees. The interstate commission fee for a
19    supplemental interstate simulcast shall be paid by the
20    non-host licensee and its affiliated non-host licensees
21    receiving the simulcast.
22        (2) Between the hours of 6:30 p.m. and 6:30 a.m. an
23    inter-track wagering licensee other than the host track may
24    receive supplemental interstate simulcasts only with the
25    consent of the host track, except when the Board finds that
26    the simulcast is clearly adverse to the integrity of

 

 

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1    racing. Consent granted under this paragraph (2) to any
2    inter-track wagering licensee shall be deemed consent to
3    all non-host licensees. The interstate commission fee for
4    the supplemental interstate simulcast shall be paid by all
5    participating non-host licensees.
6        (3) Each licensee conducting interstate simulcast
7    wagering may retain, subject to the payment of all
8    applicable taxes and the purses, an amount not to exceed
9    17% of all money wagered. If any licensee conducts the
10    pari-mutuel system wagering on races conducted at
11    racetracks in another state or country, each such race or
12    race program shall be considered a separate racing day for
13    the purpose of determining the daily handle and computing
14    the privilege tax of that daily handle as provided in
15    subsection (a) of Section 27. Until January 1, 2000, from
16    the sums permitted to be retained pursuant to this
17    subsection, each inter-track wagering location licensee
18    shall pay 1% of the pari-mutuel handle wagered on simulcast
19    wagering to the Horse Racing Tax Allocation Fund, subject
20    to the provisions of subparagraph (B) of paragraph (11) of
21    subsection (h) of Section 26 of this Act.
22        (4) A licensee who receives an interstate simulcast may
23    combine its gross or net pools with pools at the sending
24    racetracks pursuant to rules established by the Board. All
25    licensees combining their gross pools at a sending
26    racetrack shall adopt the take-out percentages of the

 

 

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1    sending racetrack. A licensee may also establish a separate
2    pool and takeout structure for wagering purposes on races
3    conducted at race tracks outside of the State of Illinois.
4    The licensee may permit pari-mutuel wagers placed in other
5    states or countries to be combined with its gross or net
6    wagering pools or other wagering pools.
7        (5) After the payment of the interstate commission fee
8    (except for the interstate commission fee on a supplemental
9    interstate simulcast, which shall be paid by the host track
10    and by each non-host licensee through the host-track) and
11    all applicable State and local taxes, except as provided in
12    subsection (g) of Section 27 of this Act, the remainder of
13    moneys retained from simulcast wagering pursuant to this
14    subsection (g), and Section 26.2 shall be divided as
15    follows:
16            (A) For interstate simulcast wagers made at a host
17        track, 50% to the host track and 50% to purses at the
18        host track.
19            (B) For wagers placed on interstate simulcast
20        races, supplemental simulcasts as defined in
21        subparagraphs (1) and (2), and separately pooled races
22        conducted outside of the State of Illinois made at a
23        non-host licensee, 25% to the host track, 25% to the
24        non-host licensee, and 50% to the purses at the host
25        track.
26        (6) Notwithstanding any provision in this Act to the

 

 

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1    contrary, non-host licensees who derive their licenses
2    from a track located in a county with a population in
3    excess of 230,000 and that borders the Mississippi River
4    may receive supplemental interstate simulcast races at all
5    times subject to Board approval, which shall be withheld
6    only upon a finding that a supplemental interstate
7    simulcast is clearly adverse to the integrity of racing.
8        (7) Notwithstanding any provision of this Act to the
9    contrary, after payment of all applicable State and local
10    taxes and interstate commission fees, non-host licensees
11    who derive their licenses from a track located in a county
12    with a population in excess of 230,000 and that borders the
13    Mississippi River shall retain 50% of the retention from
14    interstate simulcast wagers and shall pay 50% to purses at
15    the track from which the non-host licensee derives its
16    license as follows:
17            (A) Between January 1 and the third Friday in
18        February, inclusive, if no live thoroughbred racing is
19        occurring in Illinois during this period, when the
20        interstate simulcast is a standardbred race, the purse
21        share to its standardbred purse account;
22            (B) Between January 1 and the third Friday in
23        February, inclusive, if no live thoroughbred racing is
24        occurring in Illinois during this period, and the
25        interstate simulcast is a thoroughbred race, the purse
26        share to its interstate simulcast purse pool to be

 

 

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1        distributed under paragraph (10) of this subsection
2        (g);
3            (C) Between January 1 and the third Friday in
4        February, inclusive, if live thoroughbred racing is
5        occurring in Illinois, between 6:30 a.m. and 6:30 p.m.
6        the purse share from wagers made during this time
7        period to its thoroughbred purse account and between
8        6:30 p.m. and 6:30 a.m. the purse share from wagers
9        made during this time period to its standardbred purse
10        accounts;
11            (D) Between the third Saturday in February and
12        December 31, when the interstate simulcast occurs
13        between the hours of 6:30 a.m. and 6:30 p.m., the purse
14        share to its thoroughbred purse account;
15            (E) Between the third Saturday in February and
16        December 31, when the interstate simulcast occurs
17        between the hours of 6:30 p.m. and 6:30 a.m., the purse
18        share to its standardbred purse account.
19        (7.1) Notwithstanding any other provision of this Act
20    to the contrary, if no standardbred racing is conducted at
21    a racetrack located in Madison County during any calendar
22    year beginning on or after January 1, 2002, all moneys
23    derived by that racetrack from simulcast wagering and
24    inter-track wagering that (1) are to be used for purses and
25    (2) are generated between the hours of 6:30 p.m. and 6:30
26    a.m. during that calendar year shall be paid as follows:

 

 

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1            (A) If the licensee that conducts horse racing at
2        that racetrack requests from the Board at least as many
3        racing dates as were conducted in calendar year 2000,
4        80% shall be paid to its thoroughbred purse account;
5        and
6            (B) Twenty percent shall be deposited into the
7        Illinois Colt Stakes Purse Distribution Fund and shall
8        be paid to purses for standardbred races for Illinois
9        conceived and foaled horses conducted at any county
10        fairgrounds. The moneys deposited into the Fund
11        pursuant to this subparagraph (B) shall be deposited
12        within 2 weeks after the day they were generated, shall
13        be in addition to and not in lieu of any other moneys
14        paid to standardbred purses under this Act, and shall
15        not be commingled with other moneys paid into that
16        Fund. The moneys deposited pursuant to this
17        subparagraph (B) shall be allocated as provided by the
18        Department of Agriculture, with the advice and
19        assistance of the Illinois Standardbred Breeders Fund
20        Advisory Board.
21        (7.2) Notwithstanding any other provision of this Act
22    to the contrary, if no thoroughbred racing is conducted at
23    a racetrack located in Madison County during any calendar
24    year beginning on or after January 1, 2002, all moneys
25    derived by that racetrack from simulcast wagering and
26    inter-track wagering that (1) are to be used for purses and

 

 

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1    (2) are generated between the hours of 6:30 a.m. and 6:30
2    p.m. during that calendar year shall be deposited as
3    follows:
4            (A) If the licensee that conducts horse racing at
5        that racetrack requests from the Board at least as many
6        racing dates as were conducted in calendar year 2000,
7        80% shall be deposited into its standardbred purse
8        account; and
9            (B) Twenty percent shall be deposited into the
10        Illinois Colt Stakes Purse Distribution Fund. Moneys
11        deposited into the Illinois Colt Stakes Purse
12        Distribution Fund pursuant to this subparagraph (B)
13        shall be paid to Illinois conceived and foaled
14        thoroughbred breeders' programs and to thoroughbred
15        purses for races conducted at any county fairgrounds
16        for Illinois conceived and foaled horses at the
17        discretion of the Department of Agriculture, with the
18        advice and assistance of the Illinois Thoroughbred
19        Breeders Fund Advisory Board. The moneys deposited
20        into the Illinois Colt Stakes Purse Distribution Fund
21        pursuant to this subparagraph (B) shall be deposited
22        within 2 weeks after the day they were generated, shall
23        be in addition to and not in lieu of any other moneys
24        paid to thoroughbred purses under this Act, and shall
25        not be commingled with other moneys deposited into that
26        Fund.

 

 

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1        (7.3) If no live standardbred racing is conducted at a
2    racetrack located in Madison County in calendar year 2000
3    or 2001, an organization licensee who is licensed to
4    conduct horse racing at that racetrack shall, before
5    January 1, 2002, pay all moneys derived from simulcast
6    wagering and inter-track wagering in calendar years 2000
7    and 2001 and paid into the licensee's standardbred purse
8    account as follows:
9            (A) Eighty percent to that licensee's thoroughbred
10        purse account to be used for thoroughbred purses; and
11            (B) Twenty percent to the Illinois Colt Stakes
12        Purse Distribution Fund.
13        Failure to make the payment to the Illinois Colt Stakes
14    Purse Distribution Fund before January 1, 2002 shall result
15    in the immediate revocation of the licensee's organization
16    license, inter-track wagering license, and inter-track
17    wagering location license.
18        Moneys paid into the Illinois Colt Stakes Purse
19    Distribution Fund pursuant to this paragraph (7.3) shall be
20    paid to purses for standardbred races for Illinois
21    conceived and foaled horses conducted at any county
22    fairgrounds. Moneys paid into the Illinois Colt Stakes
23    Purse Distribution Fund pursuant to this paragraph (7.3)
24    shall be used as determined by the Department of
25    Agriculture, with the advice and assistance of the Illinois
26    Standardbred Breeders Fund Advisory Board, shall be in

 

 

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1    addition to and not in lieu of any other moneys paid to
2    standardbred purses under this Act, and shall not be
3    commingled with any other moneys paid into that Fund.
4        (7.4) If live standardbred racing is conducted at a
5    racetrack located in Madison County at any time in calendar
6    year 2001 before the payment required under paragraph (7.3)
7    has been made, the organization licensee who is licensed to
8    conduct racing at that racetrack shall pay all moneys
9    derived by that racetrack from simulcast wagering and
10    inter-track wagering during calendar years 2000 and 2001
11    that (1) are to be used for purses and (2) are generated
12    between the hours of 6:30 p.m. and 6:30 a.m. during 2000 or
13    2001 to the standardbred purse account at that racetrack to
14    be used for standardbred purses.
15        (8) Notwithstanding any provision in this Act to the
16    contrary, an organization licensee from a track located in
17    a county with a population in excess of 230,000 and that
18    borders the Mississippi River and its affiliated non-host
19    licensees shall not be entitled to share in any retention
20    generated on racing, inter-track wagering, or simulcast
21    wagering at any other Illinois wagering facility.
22        (8.1) Notwithstanding any provisions in this Act to the
23    contrary, if 2 organization licensees are conducting
24    standardbred race meetings concurrently between the hours
25    of 6:30 p.m. and 6:30 a.m., after payment of all applicable
26    State and local taxes and interstate commission fees, the

 

 

SB3452- 19 -LRB100 20566 MJP 35970 b

1    remainder of the amount retained from simulcast wagering
2    otherwise attributable to the host track and to host track
3    purses shall be split daily between the 2 organization
4    licensees and the purses at the tracks of the 2
5    organization licensees, respectively, based on each
6    organization licensee's share of the total live handle for
7    that day, provided that this provision shall not apply to
8    any non-host licensee that derives its license from a track
9    located in a county with a population in excess of 230,000
10    and that borders the Mississippi River.
11        (9) (Blank).
12        (10) (Blank).
13        (11) (Blank).
14        (12) The Board shall have authority to compel all host
15    tracks to receive the simulcast of any or all races
16    conducted at the Springfield or DuQuoin State fairgrounds
17    and include all such races as part of their simulcast
18    programs.
19        (13) Notwithstanding any other provision of this Act,
20    in the event that the total Illinois pari-mutuel handle on
21    Illinois horse races at all wagering facilities in any
22    calendar year is less than 75% of the total Illinois
23    pari-mutuel handle on Illinois horse races at all such
24    wagering facilities for calendar year 1994, then each
25    wagering facility that has an annual total Illinois
26    pari-mutuel handle on Illinois horse races that is less

 

 

SB3452- 20 -LRB100 20566 MJP 35970 b

1    than 75% of the total Illinois pari-mutuel handle on
2    Illinois horse races at such wagering facility for calendar
3    year 1994, shall be permitted to receive, from any amount
4    otherwise payable to the purse account at the race track
5    with which the wagering facility is affiliated in the
6    succeeding calendar year, an amount equal to 2% of the
7    differential in total Illinois pari-mutuel handle on
8    Illinois horse races at the wagering facility between that
9    calendar year in question and 1994 provided, however, that
10    a wagering facility shall not be entitled to any such
11    payment until the Board certifies in writing to the
12    wagering facility the amount to which the wagering facility
13    is entitled and a schedule for payment of the amount to the
14    wagering facility, based on: (i) the racing dates awarded
15    to the race track affiliated with the wagering facility
16    during the succeeding year; (ii) the sums available or
17    anticipated to be available in the purse account of the
18    race track affiliated with the wagering facility for purses
19    during the succeeding year; and (iii) the need to ensure
20    reasonable purse levels during the payment period. The
21    Board's certification shall be provided no later than
22    January 31 of the succeeding year. In the event a wagering
23    facility entitled to a payment under this paragraph (13) is
24    affiliated with a race track that maintains purse accounts
25    for both standardbred and thoroughbred racing, the amount
26    to be paid to the wagering facility shall be divided

 

 

SB3452- 21 -LRB100 20566 MJP 35970 b

1    between each purse account pro rata, based on the amount of
2    Illinois handle on Illinois standardbred and thoroughbred
3    racing respectively at the wagering facility during the
4    previous calendar year. Annually, the General Assembly
5    shall appropriate sufficient funds from the General
6    Revenue Fund to the Department of Agriculture for payment
7    into the thoroughbred and standardbred horse racing purse
8    accounts at Illinois pari-mutuel tracks. The amount paid to
9    each purse account shall be the amount certified by the
10    Illinois Racing Board in January to be transferred from
11    each account to each eligible racing facility in accordance
12    with the provisions of this Section.
13    (h) The Board may approve and license the conduct of
14inter-track wagering and simulcast wagering by inter-track
15wagering licensees and inter-track wagering location licensees
16subject to the following terms and conditions:
17        (1) Any person licensed to conduct a race meeting (i)
18    at a track where 60 or more days of racing were conducted
19    during the immediately preceding calendar year or where
20    over the 5 immediately preceding calendar years an average
21    of 30 or more days of racing were conducted annually may be
22    issued an inter-track wagering license; (ii) at a track
23    located in a county that is bounded by the Mississippi
24    River, which has a population of less than 150,000
25    according to the 1990 decennial census, and an average of
26    at least 60 days of racing per year between 1985 and 1993

 

 

SB3452- 22 -LRB100 20566 MJP 35970 b

1    may be issued an inter-track wagering license; or (iii) at
2    a track located in Madison County that conducted at least
3    100 days of live racing during the immediately preceding
4    calendar year may be issued an inter-track wagering
5    license, unless a lesser schedule of live racing is the
6    result of (A) weather, unsafe track conditions, or other
7    acts of God; (B) an agreement between the organization
8    licensee and the associations representing the largest
9    number of owners, trainers, jockeys, or standardbred
10    drivers who race horses at that organization licensee's
11    racing meeting; or (C) a finding by the Board of
12    extraordinary circumstances and that it was in the best
13    interest of the public and the sport to conduct fewer than
14    100 days of live racing. Any such person having operating
15    control of the racing facility may receive inter-track
16    wagering location licenses. An eligible race track located
17    in a county that has a population of more than 230,000 and
18    that is bounded by the Mississippi River may establish up
19    to 9 inter-track wagering locations, an eligible race track
20    located in Stickney Township in Cook County may establish
21    up to 16 inter-track wagering locations, and an eligible
22    race track located in Palatine Township in Cook County may
23    establish up to 18 inter-track wagering locations. An
24    application for said license shall be filed with the Board
25    prior to such dates as may be fixed by the Board. With an
26    application for an inter-track wagering location license

 

 

SB3452- 23 -LRB100 20566 MJP 35970 b

1    there shall be delivered to the Board a certified check or
2    bank draft payable to the order of the Board for an amount
3    equal to $500. The application shall be on forms prescribed
4    and furnished by the Board. The application shall comply
5    with all other rules, regulations and conditions imposed by
6    the Board in connection therewith.
7        (2) The Board shall examine the applications with
8    respect to their conformity with this Act and the rules and
9    regulations imposed by the Board. If found to be in
10    compliance with the Act and rules and regulations of the
11    Board, the Board may then issue a license to conduct
12    inter-track wagering and simulcast wagering to such
13    applicant. All such applications shall be acted upon by the
14    Board at a meeting to be held on such date as may be fixed
15    by the Board.
16        (3) In granting licenses to conduct inter-track
17    wagering and simulcast wagering, the Board shall give due
18    consideration to the best interests of the public, of horse
19    racing, and of maximizing revenue to the State.
20        (4) Prior to the issuance of a license to conduct
21    inter-track wagering and simulcast wagering, the applicant
22    shall file with the Board a bond payable to the State of
23    Illinois in the sum of $50,000, executed by the applicant
24    and a surety company or companies authorized to do business
25    in this State, and conditioned upon (i) the payment by the
26    licensee of all taxes due under Section 27 or 27.1 and any

 

 

SB3452- 24 -LRB100 20566 MJP 35970 b

1    other monies due and payable under this Act, and (ii)
2    distribution by the licensee, upon presentation of the
3    winning ticket or tickets, of all sums payable to the
4    patrons of pari-mutuel pools.
5        (5) Each license to conduct inter-track wagering and
6    simulcast wagering shall specify the person to whom it is
7    issued, the dates on which such wagering is permitted, and
8    the track or location where the wagering is to be
9    conducted.
10        (6) All wagering under such license is subject to this
11    Act and to the rules and regulations from time to time
12    prescribed by the Board, and every such license issued by
13    the Board shall contain a recital to that effect.
14        (7) An inter-track wagering licensee or inter-track
15    wagering location licensee may accept wagers at the track
16    or location where it is licensed, or as otherwise provided
17    under this Act.
18        (8) Inter-track wagering or simulcast wagering shall
19    not be conducted at any track less than 5 miles from a
20    track at which a racing meeting is in progress.
21        (8.1) Inter-track wagering location licensees who
22    derive their licenses from a particular organization
23    licensee shall conduct inter-track wagering and simulcast
24    wagering only at locations that are within 160 miles of
25    that race track where the particular organization licensee
26    is licensed to conduct racing. However, inter-track

 

 

SB3452- 25 -LRB100 20566 MJP 35970 b

1    wagering and simulcast wagering shall not be conducted by
2    those licensees at any location within 5 miles of any race
3    track at which a horse race meeting has been licensed in
4    the current year, unless the person having operating
5    control of such race track has given its written consent to
6    such inter-track wagering location licensees, which
7    consent must be filed with the Board at or prior to the
8    time application is made. In the case of any inter-track
9    wagering location licensee initially licensed after
10    December 31, 2013, inter-track wagering and simulcast
11    wagering shall not be conducted by those inter-track
12    wagering location licensees that are located outside the
13    City of Chicago at any location within 8 miles of any race
14    track at which a horse race meeting has been licensed in
15    the current year, unless the person having operating
16    control of such race track has given its written consent to
17    such inter-track wagering location licensees, which
18    consent must be filed with the Board at or prior to the
19    time application is made.
20        (8.2) Inter-track wagering or simulcast wagering shall
21    not be conducted by an inter-track wagering location
22    licensee at any location within 500 feet of an existing
23    church or existing school, nor within 500 feet of the
24    residences of more than 50 registered voters without
25    receiving written permission from a majority of the
26    registered voters at such residences. Such written

 

 

SB3452- 26 -LRB100 20566 MJP 35970 b

1    permission statements shall be filed with the Board. The
2    distance of 500 feet shall be measured to the nearest part
3    of any building used for worship services, education
4    programs, residential purposes, or conducting inter-track
5    wagering by an inter-track wagering location licensee, and
6    not to property boundaries. However, inter-track wagering
7    or simulcast wagering may be conducted at a site within 500
8    feet of a church, school or residences of 50 or more
9    registered voters if such church, school or residences have
10    been erected or established, or such voters have been
11    registered, after the Board issues the original
12    inter-track wagering location license at the site in
13    question. Inter-track wagering location licensees may
14    conduct inter-track wagering and simulcast wagering only
15    in areas that are zoned for commercial or manufacturing
16    purposes or in areas for which a special use has been
17    approved by the local zoning authority. However, no license
18    to conduct inter-track wagering and simulcast wagering
19    shall be granted by the Board with respect to any
20    inter-track wagering location within the jurisdiction of
21    any local zoning authority which has, by ordinance or by
22    resolution, prohibited the establishment of an inter-track
23    wagering location within its jurisdiction. However,
24    inter-track wagering and simulcast wagering may be
25    conducted at a site if such ordinance or resolution is
26    enacted after the Board licenses the original inter-track

 

 

SB3452- 27 -LRB100 20566 MJP 35970 b

1    wagering location licensee for the site in question.
2        (9) (Blank).
3        (10) An inter-track wagering licensee or an
4    inter-track wagering location licensee may retain, subject
5    to the payment of the privilege taxes and the purses, an
6    amount not to exceed 17% of all money wagered. Each program
7    of racing conducted by each inter-track wagering licensee
8    or inter-track wagering location licensee shall be
9    considered a separate racing day for the purpose of
10    determining the daily handle and computing the privilege
11    tax or pari-mutuel tax on such daily handle as provided in
12    Section 27.
13        (10.1) Except as provided in subsection (g) of Section
14    27 of this Act, inter-track wagering location licensees
15    shall pay 1% of the pari-mutuel handle at each location to
16    the municipality in which such location is situated and 1%
17    of the pari-mutuel handle at each location to the county in
18    which such location is situated. In the event that an
19    inter-track wagering location licensee is situated in an
20    unincorporated area of a county, such licensee shall pay 2%
21    of the pari-mutuel handle from such location to such
22    county.
23        (10.2) Notwithstanding any other provision of this
24    Act, with respect to inter-track wagering at a race track
25    located in a county that has a population of more than
26    230,000 and that is bounded by the Mississippi River ("the

 

 

SB3452- 28 -LRB100 20566 MJP 35970 b

1    first race track"), or at a facility operated by an
2    inter-track wagering licensee or inter-track wagering
3    location licensee that derives its license from the
4    organization licensee that operates the first race track,
5    on races conducted at the first race track or on races
6    conducted at another Illinois race track and
7    simultaneously televised to the first race track or to a
8    facility operated by an inter-track wagering licensee or
9    inter-track wagering location licensee that derives its
10    license from the organization licensee that operates the
11    first race track, those moneys shall be allocated as
12    follows:
13            (A) That portion of all moneys wagered on
14        standardbred racing that is required under this Act to
15        be paid to purses shall be paid to purses for
16        standardbred races.
17            (B) That portion of all moneys wagered on
18        thoroughbred racing that is required under this Act to
19        be paid to purses shall be paid to purses for
20        thoroughbred races.
21        (11) (A) After payment of the privilege or pari-mutuel
22    tax, any other applicable taxes, and the costs and expenses
23    in connection with the gathering, transmission, and
24    dissemination of all data necessary to the conduct of
25    inter-track wagering, the remainder of the monies retained
26    under either Section 26 or Section 26.2 of this Act by the

 

 

SB3452- 29 -LRB100 20566 MJP 35970 b

1    inter-track wagering licensee on inter-track wagering
2    shall be allocated with 50% to be split between the 2
3    participating licensees and 50% to purses, except that an
4    inter-track wagering licensee that derives its license
5    from a track located in a county with a population in
6    excess of 230,000 and that borders the Mississippi River
7    shall not divide any remaining retention with the Illinois
8    organization licensee that provides the race or races, and
9    an inter-track wagering licensee that accepts wagers on
10    races conducted by an organization licensee that conducts a
11    race meet in a county with a population in excess of
12    230,000 and that borders the Mississippi River shall not
13    divide any remaining retention with that organization
14    licensee.
15        (B) From the sums permitted to be retained pursuant to
16    this Act each inter-track wagering location licensee shall
17    pay (i) the privilege or pari-mutuel tax to the State; (ii)
18    4.75% of the pari-mutuel handle on inter-track wagering at
19    such location on races as purses, except that an
20    inter-track wagering location licensee that derives its
21    license from a track located in a county with a population
22    in excess of 230,000 and that borders the Mississippi River
23    shall retain all purse moneys for its own purse account
24    consistent with distribution set forth in this subsection
25    (h), and inter-track wagering location licensees that
26    accept wagers on races conducted by an organization

 

 

SB3452- 30 -LRB100 20566 MJP 35970 b

1    licensee located in a county with a population in excess of
2    230,000 and that borders the Mississippi River shall
3    distribute all purse moneys to purses at the operating host
4    track; (iii) until January 1, 2000, except as provided in
5    subsection (g) of Section 27 of this Act, 1% of the
6    pari-mutuel handle wagered on inter-track wagering and
7    simulcast wagering at each inter-track wagering location
8    licensee facility to the Horse Racing Tax Allocation Fund,
9    provided that, to the extent the total amount collected and
10    distributed to the Horse Racing Tax Allocation Fund under
11    this subsection (h) during any calendar year exceeds the
12    amount collected and distributed to the Horse Racing Tax
13    Allocation Fund during calendar year 1994, that excess
14    amount shall be redistributed (I) to all inter-track
15    wagering location licensees, based on each licensee's
16    pro-rata share of the total handle from inter-track
17    wagering and simulcast wagering for all inter-track
18    wagering location licensees during the calendar year in
19    which this provision is applicable; then (II) the amounts
20    redistributed to each inter-track wagering location
21    licensee as described in subpart (I) shall be further
22    redistributed as provided in subparagraph (B) of paragraph
23    (5) of subsection (g) of this Section 26 provided first,
24    that the shares of those amounts, which are to be
25    redistributed to the host track or to purses at the host
26    track under subparagraph (B) of paragraph (5) of subsection

 

 

SB3452- 31 -LRB100 20566 MJP 35970 b

1    (g) of this Section 26 shall be redistributed based on each
2    host track's pro rata share of the total inter-track
3    wagering and simulcast wagering handle at all host tracks
4    during the calendar year in question, and second, that any
5    amounts redistributed as described in part (I) to an
6    inter-track wagering location licensee that accepts wagers
7    on races conducted by an organization licensee that
8    conducts a race meet in a county with a population in
9    excess of 230,000 and that borders the Mississippi River
10    shall be further redistributed as provided in
11    subparagraphs (D) and (E) of paragraph (7) of subsection
12    (g) of this Section 26, with the portion of that further
13    redistribution allocated to purses at that organization
14    licensee to be divided between standardbred purses and
15    thoroughbred purses based on the amounts otherwise
16    allocated to purses at that organization licensee during
17    the calendar year in question; and (iv) 8% of the
18    pari-mutuel handle on inter-track wagering wagered at such
19    location to satisfy all costs and expenses of conducting
20    its wagering. The remainder of the monies retained by the
21    inter-track wagering location licensee shall be allocated
22    40% to the location licensee and 60% to the organization
23    licensee which provides the Illinois races to the location,
24    except that an inter-track wagering location licensee that
25    derives its license from a track located in a county with a
26    population in excess of 230,000 and that borders the

 

 

SB3452- 32 -LRB100 20566 MJP 35970 b

1    Mississippi River shall not divide any remaining retention
2    with the organization licensee that provides the race or
3    races and an inter-track wagering location licensee that
4    accepts wagers on races conducted by an organization
5    licensee that conducts a race meet in a county with a
6    population in excess of 230,000 and that borders the
7    Mississippi River shall not divide any remaining retention
8    with the organization licensee. Notwithstanding the
9    provisions of clauses (ii) and (iv) of this paragraph, in
10    the case of the additional inter-track wagering location
11    licenses authorized under paragraph (1) of this subsection
12    (h) by Public Act 87-110, those licensees shall pay the
13    following amounts as purses: during the first 12 months the
14    licensee is in operation, 5.25% of the pari-mutuel handle
15    wagered at the location on races; during the second 12
16    months, 5.25%; during the third 12 months, 5.75%; during
17    the fourth 12 months, 6.25%; and during the fifth 12 months
18    and thereafter, 6.75%. The following amounts shall be
19    retained by the licensee to satisfy all costs and expenses
20    of conducting its wagering: during the first 12 months the
21    licensee is in operation, 8.25% of the pari-mutuel handle
22    wagered at the location; during the second 12 months,
23    8.25%; during the third 12 months, 7.75%; during the fourth
24    12 months, 7.25%; and during the fifth 12 months and
25    thereafter, 6.75%. For additional inter-track wagering
26    location licensees authorized under Public Act 89-16,

 

 

SB3452- 33 -LRB100 20566 MJP 35970 b

1    purses for the first 12 months the licensee is in operation
2    shall be 5.75% of the pari-mutuel wagered at the location,
3    purses for the second 12 months the licensee is in
4    operation shall be 6.25%, and purses thereafter shall be
5    6.75%. For additional inter-track location licensees
6    authorized under Public Act 89-16, the licensee shall be
7    allowed to retain to satisfy all costs and expenses: 7.75%
8    of the pari-mutuel handle wagered at the location during
9    its first 12 months of operation, 7.25% during its second
10    12 months of operation, and 6.75% thereafter.
11        (C) There is hereby created the Horse Racing Tax
12    Allocation Fund which shall remain in existence until
13    December 31, 1999. Moneys remaining in the Fund after
14    December 31, 1999 shall be paid into the General Revenue
15    Fund. Until January 1, 2000, all monies paid into the Horse
16    Racing Tax Allocation Fund pursuant to this paragraph (11)
17    by inter-track wagering location licensees located in park
18    districts of 500,000 population or less, or in a
19    municipality that is not included within any park district
20    but is included within a conservation district and is the
21    county seat of a county that (i) is contiguous to the state
22    of Indiana and (ii) has a 1990 population of 88,257
23    according to the United States Bureau of the Census, and
24    operating on May 1, 1994 shall be allocated by
25    appropriation as follows:
26            Two-sevenths to the Department of Agriculture.

 

 

SB3452- 34 -LRB100 20566 MJP 35970 b

1        Fifty percent of this two-sevenths shall be used to
2        promote the Illinois horse racing and breeding
3        industry, and shall be distributed by the Department of
4        Agriculture upon the advice of a 9-member committee
5        appointed by the Governor consisting of the following
6        members: the Director of Agriculture, who shall serve
7        as chairman; 2 representatives of organization
8        licensees conducting thoroughbred race meetings in
9        this State, recommended by those licensees; 2
10        representatives of organization licensees conducting
11        standardbred race meetings in this State, recommended
12        by those licensees; a representative of the Illinois
13        Thoroughbred Breeders and Owners Foundation,
14        recommended by that Foundation; a representative of
15        the Illinois Standardbred Owners and Breeders
16        Association, recommended by that Association; a
17        representative of the Horsemen's Benevolent and
18        Protective Association or any successor organization
19        thereto established in Illinois comprised of the
20        largest number of owners and trainers, recommended by
21        that Association or that successor organization; and a
22        representative of the Illinois Harness Horsemen's
23        Association, recommended by that Association.
24        Committee members shall serve for terms of 2 years,
25        commencing January 1 of each even-numbered year. If a
26        representative of any of the above-named entities has

 

 

SB3452- 35 -LRB100 20566 MJP 35970 b

1        not been recommended by January 1 of any even-numbered
2        year, the Governor shall appoint a committee member to
3        fill that position. Committee members shall receive no
4        compensation for their services as members but shall be
5        reimbursed for all actual and necessary expenses and
6        disbursements incurred in the performance of their
7        official duties. The remaining 50% of this
8        two-sevenths shall be distributed to county fairs for
9        premiums and rehabilitation as set forth in the
10        Agricultural Fair Act;
11            Four-sevenths to park districts or municipalities
12        that do not have a park district of 500,000 population
13        or less for museum purposes (if an inter-track wagering
14        location licensee is located in such a park district)
15        or to conservation districts for museum purposes (if an
16        inter-track wagering location licensee is located in a
17        municipality that is not included within any park
18        district but is included within a conservation
19        district and is the county seat of a county that (i) is
20        contiguous to the state of Indiana and (ii) has a 1990
21        population of 88,257 according to the United States
22        Bureau of the Census, except that if the conservation
23        district does not maintain a museum, the monies shall
24        be allocated equally between the county and the
25        municipality in which the inter-track wagering
26        location licensee is located for general purposes) or

 

 

SB3452- 36 -LRB100 20566 MJP 35970 b

1        to a municipal recreation board for park purposes (if
2        an inter-track wagering location licensee is located
3        in a municipality that is not included within any park
4        district and park maintenance is the function of the
5        municipal recreation board and the municipality has a
6        1990 population of 9,302 according to the United States
7        Bureau of the Census); provided that the monies are
8        distributed to each park district or conservation
9        district or municipality that does not have a park
10        district in an amount equal to four-sevenths of the
11        amount collected by each inter-track wagering location
12        licensee within the park district or conservation
13        district or municipality for the Fund. Monies that were
14        paid into the Horse Racing Tax Allocation Fund before
15        August 9, 1991 (the effective date of Public Act
16        87-110) by an inter-track wagering location licensee
17        located in a municipality that is not included within
18        any park district but is included within a conservation
19        district as provided in this paragraph shall, as soon
20        as practicable after August 9, 1991 (the effective date
21        of Public Act 87-110), be allocated and paid to that
22        conservation district as provided in this paragraph.
23        Any park district or municipality not maintaining a
24        museum may deposit the monies in the corporate fund of
25        the park district or municipality where the
26        inter-track wagering location is located, to be used

 

 

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1        for general purposes; and
2            One-seventh to the Agricultural Premium Fund to be
3        used for distribution to agricultural home economics
4        extension councils in accordance with "An Act in
5        relation to additional support and finances for the
6        Agricultural and Home Economic Extension Councils in
7        the several counties of this State and making an
8        appropriation therefor", approved July 24, 1967.
9        Until January 1, 2000, all other monies paid into the
10    Horse Racing Tax Allocation Fund pursuant to this paragraph
11    (11) shall be allocated by appropriation as follows:
12            Two-sevenths to the Department of Agriculture.
13        Fifty percent of this two-sevenths shall be used to
14        promote the Illinois horse racing and breeding
15        industry, and shall be distributed by the Department of
16        Agriculture upon the advice of a 9-member committee
17        appointed by the Governor consisting of the following
18        members: the Director of Agriculture, who shall serve
19        as chairman; 2 representatives of organization
20        licensees conducting thoroughbred race meetings in
21        this State, recommended by those licensees; 2
22        representatives of organization licensees conducting
23        standardbred race meetings in this State, recommended
24        by those licensees; a representative of the Illinois
25        Thoroughbred Breeders and Owners Foundation,
26        recommended by that Foundation; a representative of

 

 

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1        the Illinois Standardbred Owners and Breeders
2        Association, recommended by that Association; a
3        representative of the Horsemen's Benevolent and
4        Protective Association or any successor organization
5        thereto established in Illinois comprised of the
6        largest number of owners and trainers, recommended by
7        that Association or that successor organization; and a
8        representative of the Illinois Harness Horsemen's
9        Association, recommended by that Association.
10        Committee members shall serve for terms of 2 years,
11        commencing January 1 of each even-numbered year. If a
12        representative of any of the above-named entities has
13        not been recommended by January 1 of any even-numbered
14        year, the Governor shall appoint a committee member to
15        fill that position. Committee members shall receive no
16        compensation for their services as members but shall be
17        reimbursed for all actual and necessary expenses and
18        disbursements incurred in the performance of their
19        official duties. The remaining 50% of this
20        two-sevenths shall be distributed to county fairs for
21        premiums and rehabilitation as set forth in the
22        Agricultural Fair Act;
23            Four-sevenths to museums and aquariums located in
24        park districts of over 500,000 population; provided
25        that the monies are distributed in accordance with the
26        previous year's distribution of the maintenance tax

 

 

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1        for such museums and aquariums as provided in Section 2
2        of the Park District Aquarium and Museum Act; and
3            One-seventh to the Agricultural Premium Fund to be
4        used for distribution to agricultural home economics
5        extension councils in accordance with "An Act in
6        relation to additional support and finances for the
7        Agricultural and Home Economic Extension Councils in
8        the several counties of this State and making an
9        appropriation therefor", approved July 24, 1967. This
10        subparagraph (C) shall be inoperative and of no force
11        and effect on and after January 1, 2000.
12            (D) Except as provided in paragraph (11) of this
13        subsection (h), with respect to purse allocation from
14        inter-track wagering, the monies so retained shall be
15        divided as follows:
16                (i) If the inter-track wagering licensee,
17            except an inter-track wagering licensee that
18            derives its license from an organization licensee
19            located in a county with a population in excess of
20            230,000 and bounded by the Mississippi River, is
21            not conducting its own race meeting during the same
22            dates, then the entire purse allocation shall be to
23            purses at the track where the races wagered on are
24            being conducted.
25                (ii) If the inter-track wagering licensee,
26            except an inter-track wagering licensee that

 

 

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1            derives its license from an organization licensee
2            located in a county with a population in excess of
3            230,000 and bounded by the Mississippi River, is
4            also conducting its own race meeting during the
5            same dates, then the purse allocation shall be as
6            follows: 50% to purses at the track where the races
7            wagered on are being conducted; 50% to purses at
8            the track where the inter-track wagering licensee
9            is accepting such wagers.
10                (iii) If the inter-track wagering is being
11            conducted by an inter-track wagering location
12            licensee, except an inter-track wagering location
13            licensee that derives its license from an
14            organization licensee located in a county with a
15            population in excess of 230,000 and bounded by the
16            Mississippi River, the entire purse allocation for
17            Illinois races shall be to purses at the track
18            where the race meeting being wagered on is being
19            held.
20        (12) The Board shall have all powers necessary and
21    proper to fully supervise and control the conduct of
22    inter-track wagering and simulcast wagering by inter-track
23    wagering licensees and inter-track wagering location
24    licensees, including, but not limited to the following:
25            (A) The Board is vested with power to promulgate
26        reasonable rules and regulations for the purpose of

 

 

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1        administering the conduct of this wagering and to
2        prescribe reasonable rules, regulations and conditions
3        under which such wagering shall be held and conducted.
4        Such rules and regulations are to provide for the
5        prevention of practices detrimental to the public
6        interest and for the best interests of said wagering
7        and to impose penalties for violations thereof.
8            (B) The Board, and any person or persons to whom it
9        delegates this power, is vested with the power to enter
10        the facilities of any licensee to determine whether
11        there has been compliance with the provisions of this
12        Act and the rules and regulations relating to the
13        conduct of such wagering.
14            (C) The Board, and any person or persons to whom it
15        delegates this power, may eject or exclude from any
16        licensee's facilities, any person whose conduct or
17        reputation is such that his presence on such premises
18        may, in the opinion of the Board, call into the
19        question the honesty and integrity of, or interfere
20        with the orderly conduct of such wagering; provided,
21        however, that no person shall be excluded or ejected
22        from such premises solely on the grounds of race,
23        color, creed, national origin, ancestry, or sex.
24            (D) (Blank).
25            (E) The Board is vested with the power to appoint
26        delegates to execute any of the powers granted to it

 

 

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1        under this Section for the purpose of administering
2        this wagering and any rules and regulations
3        promulgated in accordance with this Act.
4            (F) The Board shall name and appoint a State
5        director of this wagering who shall be a representative
6        of the Board and whose duty it shall be to supervise
7        the conduct of inter-track wagering as may be provided
8        for by the rules and regulations of the Board; such
9        rules and regulation shall specify the method of
10        appointment and the Director's powers, authority and
11        duties.
12            (G) The Board is vested with the power to impose
13        civil penalties of up to $5,000 against individuals and
14        up to $10,000 against licensees for each violation of
15        any provision of this Act relating to the conduct of
16        this wagering, any rules adopted by the Board, any
17        order of the Board or any other action which in the
18        Board's discretion, is a detriment or impediment to
19        such wagering.
20        (13) The Department of Agriculture may enter into
21    agreements with licensees authorizing such licensees to
22    conduct inter-track wagering on races to be held at the
23    licensed race meetings conducted by the Department of
24    Agriculture. Such agreement shall specify the races of the
25    Department of Agriculture's licensed race meeting upon
26    which the licensees will conduct wagering. In the event

 

 

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1    that a licensee conducts inter-track pari-mutuel wagering
2    on races from the Illinois State Fair or DuQuoin State Fair
3    which are in addition to the licensee's previously approved
4    racing program, those races shall be considered a separate
5    racing day for the purpose of determining the daily handle
6    and computing the privilege or pari-mutuel tax on that
7    daily handle as provided in Sections 27 and 27.1. Such
8    agreements shall be approved by the Board before such
9    wagering may be conducted. In determining whether to grant
10    approval, the Board shall give due consideration to the
11    best interests of the public and of horse racing. The
12    provisions of paragraphs (1), (8), (8.1), and (8.2) of
13    subsection (h) of this Section which are not specified in
14    this paragraph (13) shall not apply to licensed race
15    meetings conducted by the Department of Agriculture at the
16    Illinois State Fair in Sangamon County or the DuQuoin State
17    Fair in Perry County, or to any wagering conducted on those
18    race meetings.
19        (14) An inter-track wagering location license
20    authorized by the Board in 2016 that is owned and operated
21    by a race track in Rock Island County shall be transferred
22    to a commonly owned race track in Cook County on August 12,
23    2016 (the effective date of Public Act 99-757). The
24    licensee shall retain its status in relation to purse
25    distribution under paragraph (11) of this subsection (h)
26    following the transfer to the new entity. The pari-mutuel

 

 

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1    tax credit under Section 32.1 shall not be applied toward
2    any pari-mutuel tax obligation of the inter-track wagering
3    location licensee of the license that is transferred under
4    this paragraph (14).
5    (i) Notwithstanding the other provisions of this Act, the
6conduct of wagering at wagering facilities is authorized on all
7days, except as limited by subsection (b) of Section 19 of this
8Act.
9(Source: P.A. 99-756, eff. 8-12-16; 99-757, eff. 8-12-16;
10100-201, eff. 8-18-17.)
 
11    (230 ILCS 5/26.8)
12    Sec. 26.8. Beginning on February 1, 2014 and through
13December 31, 2022 2018, each wagering licensee may impose a
14surcharge of up to 0.5% on winning wagers and winnings from
15wagers. The surcharge shall be deducted from winnings prior to
16payout. All amounts collected from the imposition of this
17surcharge shall be evenly distributed to the organization
18licensee and the purse account of the organization licensee
19with which the licensee is affiliated. The amounts distributed
20under this Section shall be in addition to the amounts paid
21pursuant to paragraph (10) of subsection (h) of Section 26,
22Section 26.3, Section 26.4, Section 26.5, and Section 26.7.
23(Source: P.A. 98-624, eff. 1-29-14; 99-756, eff. 8-12-16.)
 
24    (230 ILCS 5/26.9)

 

 

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1    Sec. 26.9. Beginning on February 1, 2014 and through
2December 31, 2022 2018, in addition to the surcharge imposed in
3Sections 26.3, 26.4, 26.5, 26.7, and 26.8 of this Act, each
4licensee shall impose a surcharge of 0.2% on winning wagers and
5winnings from wagers. The surcharge shall be deducted from
6winnings prior to payout. All amounts collected from the
7surcharges imposed under this Section shall be remitted to the
8Board. From amounts collected under this Section, the Board
9shall deposit an amount not to exceed $100,000 annually into
10the Quarter Horse Purse Fund and all remaining amounts into the
11Horse Racing Fund.
12(Source: P.A. 98-624, eff. 1-29-14; 99-756, eff. 8-12-16.)
 
13    (230 ILCS 5/27)  (from Ch. 8, par. 37-27)
14    Sec. 27. (a) In addition to the organization license fee
15provided by this Act, until January 1, 2000, a graduated
16privilege tax is hereby imposed for conducting the pari-mutuel
17system of wagering permitted under this Act. Until January 1,
182000, except as provided in subsection (g) of Section 27 of
19this Act, all of the breakage of each racing day held by any
20licensee in the State shall be paid to the State. Until January
211, 2000, such daily graduated privilege tax shall be paid by
22the licensee from the amount permitted to be retained under
23this Act. Until January 1, 2000, each day's graduated privilege
24tax, breakage, and Horse Racing Tax Allocation funds shall be
25remitted to the Department of Revenue within 48 hours after the

 

 

SB3452- 46 -LRB100 20566 MJP 35970 b

1close of the racing day upon which it is assessed or within
2such other time as the Board prescribes. The privilege tax
3hereby imposed, until January 1, 2000, shall be a flat tax at
4the rate of 2% of the daily pari-mutuel handle except as
5provided in Section 27.1.
6    In addition, every organization licensee, except as
7provided in Section 27.1 of this Act, which conducts multiple
8wagering shall pay, until January 1, 2000, as a privilege tax
9on multiple wagers an amount equal to 1.25% of all moneys
10wagered each day on such multiple wagers, plus an additional
11amount equal to 3.5% of the amount wagered each day on any
12other multiple wager which involves a single betting interest
13on 3 or more horses. The licensee shall remit the amount of
14such taxes to the Department of Revenue within 48 hours after
15the close of the racing day on which it is assessed or within
16such other time as the Board prescribes.
17    This subsection (a) shall be inoperative and of no force
18and effect on and after January 1, 2000.
19    (a-5) Beginning on January 1, 2000, a flat pari-mutuel tax
20at the rate of 1.5% of the daily pari-mutuel handle is imposed
21at all pari-mutuel wagering facilities and on advance deposit
22wagering from a location other than a wagering facility, except
23as otherwise provided for in this subsection (a-5). In addition
24to the pari-mutuel tax imposed on advance deposit wagering
25pursuant to this subsection (a-5), beginning on August 24, 2012
26(the effective date of Public Act 97-1060) and through December

 

 

SB3452- 47 -LRB100 20566 MJP 35970 b

131, 2022 2018, an additional pari-mutuel tax at the rate of
20.25% shall be imposed on advance deposit wagering. Until
3August 25, 2012, the additional 0.25% pari-mutuel tax imposed
4on advance deposit wagering by Public Act 96-972 shall be
5deposited into the Quarter Horse Purse Fund, which shall be
6created as a non-appropriated trust fund administered by the
7Board for grants to thoroughbred organization licensees for
8payment of purses for quarter horse races conducted by the
9organization licensee. Beginning on August 26, 2012, the
10additional 0.25% pari-mutuel tax imposed on advance deposit
11wagering shall be deposited into the Standardbred Purse Fund,
12which shall be created as a non-appropriated trust fund
13administered by the Board, for grants to the standardbred
14organization licensees for payment of purses for standardbred
15horse races conducted by the organization licensee.
16Thoroughbred organization licensees may petition the Board to
17conduct quarter horse racing and receive purse grants from the
18Quarter Horse Purse Fund. The Board shall have complete
19discretion in distributing the Quarter Horse Purse Fund to the
20petitioning organization licensees. Beginning on July 26, 2010
21(the effective date of Public Act 96-1287), a pari-mutuel tax
22at the rate of 0.75% of the daily pari-mutuel handle is imposed
23at a pari-mutuel facility whose license is derived from a track
24located in a county that borders the Mississippi River and
25conducted live racing in the previous year. The pari-mutuel tax
26imposed by this subsection (a-5) shall be remitted to the

 

 

SB3452- 48 -LRB100 20566 MJP 35970 b

1Department of Revenue within 48 hours after the close of the
2racing day upon which it is assessed or within such other time
3as the Board prescribes.
4    (b) On or before December 31, 1999, in the event that any
5organization licensee conducts 2 separate programs of races on
6any day, each such program shall be considered a separate
7racing day for purposes of determining the daily handle and
8computing the privilege tax on such daily handle as provided in
9subsection (a) of this Section.
10    (c) Licensees shall at all times keep accurate books and
11records of all monies wagered on each day of a race meeting and
12of the taxes paid to the Department of Revenue under the
13provisions of this Section. The Board or its duly authorized
14representative or representatives shall at all reasonable
15times have access to such records for the purpose of examining
16and checking the same and ascertaining whether the proper
17amount of taxes is being paid as provided. The Board shall
18require verified reports and a statement of the total of all
19monies wagered daily at each wagering facility upon which the
20taxes are assessed and may prescribe forms upon which such
21reports and statement shall be made.
22    (d) Any licensee failing or refusing to pay the amount of
23any tax due under this Section shall be guilty of a business
24offense and upon conviction shall be fined not more than $5,000
25in addition to the amount found due as tax under this Section.
26Each day's violation shall constitute a separate offense. All

 

 

SB3452- 49 -LRB100 20566 MJP 35970 b

1fines paid into Court by a licensee hereunder shall be
2transmitted and paid over by the Clerk of the Court to the
3Board.
4    (e) No other license fee, privilege tax, excise tax, or
5racing fee, except as provided in this Act, shall be assessed
6or collected from any such licensee by the State.
7    (f) No other license fee, privilege tax, excise tax or
8racing fee shall be assessed or collected from any such
9licensee by units of local government except as provided in
10paragraph 10.1 of subsection (h) and subsection (f) of Section
1126 of this Act. However, any municipality that has a Board
12licensed horse race meeting at a race track wholly within its
13corporate boundaries or a township that has a Board licensed
14horse race meeting at a race track wholly within the
15unincorporated area of the township may charge a local
16amusement tax not to exceed 10¢ per admission to such horse
17race meeting by the enactment of an ordinance. However, any
18municipality or county that has a Board licensed inter-track
19wagering location facility wholly within its corporate
20boundaries may each impose an admission fee not to exceed $1.00
21per admission to such inter-track wagering location facility,
22so that a total of not more than $2.00 per admission may be
23imposed. Except as provided in subparagraph (g) of Section 27
24of this Act, the inter-track wagering location licensee shall
25collect any and all such fees and within 48 hours remit the
26fees to the Board, which shall, pursuant to rule, cause the

 

 

SB3452- 50 -LRB100 20566 MJP 35970 b

1fees to be distributed to the county or municipality.
2    (g) Notwithstanding any provision in this Act to the
3contrary, if in any calendar year the total taxes and fees
4required to be collected from licensees and distributed under
5this Act to all State and local governmental authorities
6exceeds the amount of such taxes and fees distributed to each
7State and local governmental authority to which each State and
8local governmental authority was entitled under this Act for
9calendar year 1994, then the first $11 million of that excess
10amount shall be allocated at the earliest possible date for
11distribution as purse money for the succeeding calendar year.
12Upon reaching the 1994 level, and until the excess amount of
13taxes and fees exceeds $11 million, the Board shall direct all
14licensees to cease paying the subject taxes and fees and the
15Board shall direct all licensees to allocate any such excess
16amount for purses as follows:
17        (i) the excess amount shall be initially divided
18    between thoroughbred and standardbred purses based on the
19    thoroughbred's and standardbred's respective percentages
20    of total Illinois live wagering in calendar year 1994;
21        (ii) each thoroughbred and standardbred organization
22    licensee issued an organization licensee in that
23    succeeding allocation year shall be allocated an amount
24    equal to the product of its percentage of total Illinois
25    live thoroughbred or standardbred wagering in calendar
26    year 1994 (the total to be determined based on the sum of

 

 

SB3452- 51 -LRB100 20566 MJP 35970 b

1    1994 on-track wagering for all organization licensees
2    issued organization licenses in both the allocation year
3    and the preceding year) multiplied by the total amount
4    allocated for standardbred or thoroughbred purses,
5    provided that the first $1,500,000 of the amount allocated
6    to standardbred purses under item (i) shall be allocated to
7    the Department of Agriculture to be expended with the
8    assistance and advice of the Illinois Standardbred
9    Breeders Funds Advisory Board for the purposes listed in
10    subsection (g) of Section 31 of this Act, before the amount
11    allocated to standardbred purses under item (i) is
12    allocated to standardbred organization licensees in the
13    succeeding allocation year.
14    To the extent the excess amount of taxes and fees to be
15collected and distributed to State and local governmental
16authorities exceeds $11 million, that excess amount shall be
17collected and distributed to State and local authorities as
18provided for under this Act.
19(Source: P.A. 98-18, eff. 6-7-13; 98-624, eff. 1-29-14; 99-756,
20eff. 8-12-16.)
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.