97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5017

 

Introduced 2/7/2012, by Rep. Lou Lang

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 1605/7.12
230 ILCS 15/2  from Ch. 85, par. 2302
720 ILCS 5/28-1  from Ch. 38, par. 28-1

    Amends the Illinois Lottery Law. Makes a technical change in a Section concerning the internet pilot program. Amends the Raffles Act. Makes a technical change in a Section concerning licensing. Amends the Criminal Code of 1961. Makes a technical change in a Section concerning gambling.


LRB097 17153 AMC 62351 b

 

 

A BILL FOR

 

HB5017LRB097 17153 AMC 62351 b

1    AN ACT concerning gambling.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Lottery Law is amended by changing
5Section 7.12 as follows:
 
6    (20 ILCS 1605/7.12)
7    Sec. 7.12. Internet pilot program. The The General Assembly
8finds that:
9        (1) the consumer market in Illinois has changed since
10    the creation of the Illinois State Lottery in 1974;
11        (2) the Internet has become an integral part of
12    everyday life for a significant number of Illinois
13    residents not only in regards to their professional life,
14    but also in regards to personal business and communication;
15    and
16        (3) the current practices of selling lottery tickets
17    does not appeal to the new form of market participants who
18    prefer to make purchases on the internet at their own
19    convenience.
20    It is the intent of the General Assembly to create an
21Internet pilot program for the sale of lottery tickets to
22capture this new form of market participant.
23    The Department shall create a pilot program that allows an

 

 

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1individual 18 years of age or older to purchase lottery tickets
2or shares on the Internet without using a Lottery retailer with
3on-line status, as those terms are defined by rule. The
4Department shall restrict the sale of lottery tickets on the
5Internet to transactions initiated and received or otherwise
6made exclusively within the State of Illinois. The Department
7shall adopt rules necessary for the administration of this
8program. These rules shall include requirements for marketing
9of the Lottery to infrequent players. The provisions of this
10Act and the rules adopted under this Act shall apply to the
11sale of lottery tickets or shares under this program.
12    Before beginning the pilot program, the Department of the
13Lottery must submit a request to the United States Department
14of Justice for review of the State's plan to implement a pilot
15program for the sale of lottery tickets on the Internet and its
16propriety under federal law. The Department shall implement the
17Internet pilot program only if the Department of Justice does
18not object to the implementation of the program within a
19reasonable period of time after its review.
20    The Department is obligated to implement the pilot program
21set forth in this Section and Sections 7.15 and 7.16 only at
22such time, and to such extent, that the Department of Justice
23does not object to the implementation of the program within a
24reasonable period of time after its review. While the Illinois
25Lottery may only offer Lotto and Mega Millions games through
26the pilot program, the Department shall request review from the

 

 

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1federal Department of Justice for the Illinois Lottery to sell
2lottery tickets on the Internet on behalf of the State of
3Illinois that are not limited to just these games.
4    The Department shall authorize the private manager to
5implement and administer the program pursuant to the management
6agreement entered into under Section 9.1 and in a manner
7consistent with the provisions of this Section. If a private
8manager has not been selected pursuant to Section 9.1 at the
9time the Department is obligated to implement the pilot
10program, then the Department shall not proceed with the pilot
11program until after the selection of the private manager, at
12which time the Department shall authorize the private manager
13to implement and administer the program pursuant to the
14management agreement entered into under Section 9.1 and in a
15manner consistent with the provisions of this Section.
16    The pilot program shall last for not less than 36 months,
17but not more than 48 months from the date of its initial
18operation.
19    Nothing in this Section shall be construed as prohibiting
20the Department from implementing and operating a website portal
21whereby individuals who are 18 years of age or older with an
22Illinois mailing address may apply to purchase lottery tickets
23via subscription.
24(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-840,
25eff. 12-23-09; 97-464, eff. 10-15-11.)
 

 

 

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1    Section 10. The Raffles Act is amended by changing Section
22 as follows:
 
3    (230 ILCS 15/2)  (from Ch. 85, par. 2302)
4    Sec. 2. Licensing. (a) The The governing body of any county
5or municipality within this State may establish a system for
6the licensing of organizations to operate raffles. The
7governing bodies of a county and one or more municipalities
8may, pursuant to a written contract, jointly establish a system
9for the licensing of organizations to operate raffles within
10any area of contiguous territory not contained within the
11corporate limits of a municipality which is not a party to such
12contract. The governing bodies of two or more adjacent counties
13or two or more adjacent municipalities located within a county
14may, pursuant to a written contract, jointly establish a system
15for the licensing of organizations to operate raffles within
16the corporate limits of such counties or municipalities. The
17licensing authority may establish special categories of
18licenses and promulgate rules relating to the various
19categories. The licensing system shall provide for limitations
20upon (1) the aggregate retail value of all prizes or
21merchandise awarded by a licensee in a single raffle, (2) the
22maximum retail value of each prize awarded by a licensee in a
23single raffle, (3) the maximum price which may be charged for
24each raffle chance issued or sold and (4) the maximum number of
25days during which chances may be issued or sold. The licensing

 

 

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1system may include a fee for each license in an amount to be
2determined by the local governing body. Licenses issued
3pursuant to this Act shall be valid for one raffle or for a
4specified number of raffles to be conducted during a specified
5period not to exceed one year and may be suspended or revoked
6for any violation of this Act. A local governing body shall act
7on a license application within 30 days from the date of
8application. Nothing in this Act shall be construed to prohibit
9a county or municipality from adopting rules or ordinances for
10the operation of raffles that are more restrictive than
11provided for in this Act. The governing body of a municipality
12may authorize the sale of raffle chances only within the
13borders of the municipality. The governing body of the county
14may authorize the sale of raffle chances only in those areas
15which are both within the borders of the county and outside the
16borders of any municipality.
17    (b) Licenses shall be issued only to bona fide religious,
18charitable, labor, business, fraternal, educational or
19veterans' organizations that operate without profit to their
20members and which have been in existence continuously for a
21period of 5 years immediately before making application for a
22license and which have had during that entire 5 year period a
23bona fide membership engaged in carrying out their objects, or
24to a non-profit fundraising organization that the licensing
25authority determines is organized for the sole purpose of
26providing financial assistance to an identified individual or

 

 

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1group of individuals suffering extreme financial hardship as
2the result of an illness, disability, accident or disaster.
3    For purposes of this Act, the following definitions apply.
4Non-profit: An organization or institution organized and
5conducted on a not-for-profit basis with no personal profit
6inuring to any one as a result of the operation. Charitable: An
7organization or institution organized and operated to benefit
8an indefinite number of the public. The service rendered to
9those eligible for benefits must also confer some benefit on
10the public. Educational: An organization or institution
11organized and operated to provide systematic instruction in
12useful branches of learning by methods common to schools and
13institutions of learning which compare favorably in their scope
14and intensity with the course of study presented in
15tax-supported schools. Religious: Any church, congregation,
16society, or organization founded for the purpose of religious
17worship. Fraternal: An organization of persons having a common
18interest, the primary interest of which is to both promote the
19welfare of its members and to provide assistance to the general
20public in such a way as to lessen the burdens of government by
21caring for those that otherwise would be cared for by the
22government. Veterans: An organization or association comprised
23of members of which substantially all are individuals who are
24veterans or spouses, widows, or widowers of veterans, the
25primary purpose of which is to promote the welfare of its
26members and to provide assistance to the general public in such

 

 

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1a way as to confer a public benefit. Labor: An organization
2composed of workers organized with the objective of betterment
3of the conditions of those engaged in such pursuit and the
4development of a higher degree of efficiency in their
5respective occupations. Business: A voluntary organization
6composed of individuals and businesses who have joined together
7to advance the commercial, financial, industrial and civic
8interests of a community.
9(Source: P.A. 86-820.)
 
10    Section 15. The Criminal Code of 1961 is amended by
11changing Section 28-1 as follows:
 
12    (720 ILCS 5/28-1)  (from Ch. 38, par. 28-1)
13    Sec. 28-1. Gambling.
14    (a) A person commits gambling when he:
15        (1) Plays a game of chance or skill for money or other
16    thing of value, unless excepted in subsection (b) of this
17    Section; or
18        (2) Makes a wager upon the the result of any game,
19    contest, or any political nomination, appointment or
20    election; or
21        (3) Operates, keeps, owns, uses, purchases, exhibits,
22    rents, sells, bargains for the sale or lease of,
23    manufactures or distributes any gambling device; or
24        (4) Contracts to have or give himself or another the

 

 

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1    option to buy or sell, or contracts to buy or sell, at a
2    future time, any grain or other commodity whatsoever, or
3    any stock or security of any company, where it is at the
4    time of making such contract intended by both parties
5    thereto that the contract to buy or sell, or the option,
6    whenever exercised, or the contract resulting therefrom,
7    shall be settled, not by the receipt or delivery of such
8    property, but by the payment only of differences in prices
9    thereof; however, the issuance, purchase, sale, exercise,
10    endorsement or guarantee, by or through a person registered
11    with the Secretary of State pursuant to Section 8 of the
12    Illinois Securities Law of 1953, or by or through a person
13    exempt from such registration under said Section 8, of a
14    put, call, or other option to buy or sell securities which
15    have been registered with the Secretary of State or which
16    are exempt from such registration under Section 3 of the
17    Illinois Securities Law of 1953 is not gambling within the
18    meaning of this paragraph (4); or
19        (5) Knowingly owns or possesses any book, instrument or
20    apparatus by means of which bets or wagers have been, or
21    are, recorded or registered, or knowingly possesses any
22    money which he has received in the course of a bet or
23    wager; or
24        (6) Sells pools upon the result of any game or contest
25    of skill or chance, political nomination, appointment or
26    election; or

 

 

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1        (7) Sets up or promotes any lottery or sells, offers to
2    sell or transfers any ticket or share for any lottery; or
3        (8) Sets up or promotes any policy game or sells,
4    offers to sell or knowingly possesses or transfers any
5    policy ticket, slip, record, document or other similar
6    device; or
7        (9) Knowingly drafts, prints or publishes any lottery
8    ticket or share, or any policy ticket, slip, record,
9    document or similar device, except for such activity
10    related to lotteries, bingo games and raffles authorized by
11    and conducted in accordance with the laws of Illinois or
12    any other state or foreign government; or
13        (10) Knowingly advertises any lottery or policy game,
14    except for such activity related to lotteries, bingo games
15    and raffles authorized by and conducted in accordance with
16    the laws of Illinois or any other state; or
17        (11) Knowingly transmits information as to wagers,
18    betting odds, or changes in betting odds by telephone,
19    telegraph, radio, semaphore or similar means; or knowingly
20    installs or maintains equipment for the transmission or
21    receipt of such information; except that nothing in this
22    subdivision (11) prohibits transmission or receipt of such
23    information for use in news reporting of sporting events or
24    contests; or
25        (12) Knowingly establishes, maintains, or operates an
26    Internet site that permits a person to play a game of

 

 

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1    chance or skill for money or other thing of value by means
2    of the Internet or to make a wager upon the result of any
3    game, contest, political nomination, appointment, or
4    election by means of the Internet. This item (12) does not
5    apply to activities referenced in items (6) and (6.1) of
6    subsection (b) of this Section.
7    (b) Participants in any of the following activities shall
8not be convicted of gambling therefor:
9        (1) Agreements to compensate for loss caused by the
10    happening of chance including without limitation contracts
11    of indemnity or guaranty and life or health or accident
12    insurance.
13        (2) Offers of prizes, award or compensation to the
14    actual contestants in any bona fide contest for the
15    determination of skill, speed, strength or endurance or to
16    the owners of animals or vehicles entered in such contest.
17        (3) Pari-mutuel betting as authorized by the law of
18    this State.
19        (4) Manufacture of gambling devices, including the
20    acquisition of essential parts therefor and the assembly
21    thereof, for transportation in interstate or foreign
22    commerce to any place outside this State when such
23    transportation is not prohibited by any applicable Federal
24    law; or the manufacture, distribution, or possession of
25    video gaming terminals, as defined in the Video Gaming Act,
26    by manufacturers, distributors, and terminal operators

 

 

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1    licensed to do so under the Video Gaming Act.
2        (5) The game commonly known as "bingo", when conducted
3    in accordance with the Bingo License and Tax Act.
4        (6) Lotteries when conducted by the State of Illinois
5    in accordance with the Illinois Lottery Law. This exemption
6    includes any activity conducted by the Department of
7    Revenue to sell lottery tickets pursuant to the provisions
8    of the Illinois Lottery Law and its rules.
9        (6.1) The purchase of lottery tickets through the
10    Internet for a lottery conducted by the State of Illinois
11    under the program established in Section 7.12 of the
12    Illinois Lottery Law.
13        (7) Possession of an antique slot machine that is
14    neither used nor intended to be used in the operation or
15    promotion of any unlawful gambling activity or enterprise.
16    For the purpose of this subparagraph (b)(7), an antique
17    slot machine is one manufactured 25 years ago or earlier.
18        (8) Raffles when conducted in accordance with the
19    Raffles Act.
20        (9) Charitable games when conducted in accordance with
21    the Charitable Games Act.
22        (10) Pull tabs and jar games when conducted under the
23    Illinois Pull Tabs and Jar Games Act.
24        (11) Gambling games conducted on riverboats when
25    authorized by the Riverboat Gambling Act.
26        (12) Video gaming terminal games at a licensed

 

 

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1    establishment, licensed truck stop establishment, licensed
2    fraternal establishment, or licensed veterans
3    establishment when conducted in accordance with the Video
4    Gaming Act.
5        (13) Games of skill or chance where money or other
6    things of value can be won but no payment or purchase is
7    required to participate.
8    (c) Sentence.
9    Gambling under subsection (a)(1) or (a)(2) of this Section
10is a Class A misdemeanor. Gambling under any of subsections
11(a)(3) through (a)(11) of this Section is a Class A
12misdemeanor. A second or subsequent conviction under any of
13subsections (a)(3) through (a)(11), is a Class 4 felony.
14Gambling under subsection (a)(12) of this Section is a Class A
15misdemeanor. A second or subsequent conviction under
16subsection (a)(12) is a Class 4 felony.
17    (d) Circumstantial evidence.
18    In prosecutions under subsection (a)(1) through (a)(12) of
19this Section circumstantial evidence shall have the same
20validity and weight as in any criminal prosecution.
21(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09;
2296-1203, eff. 7-22-10.)