102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2276

 

Introduced 2/26/2021, by Sen. Steve Stadelman

 

SYNOPSIS AS INTRODUCED:
 
230 ILCS 45/25-70

    Amends the Sports Wagering Act in provisions concerning the Lottery sports wagering pilot program. Provides that the Department of the Lottery shall establish and publish the rules and procedures for the competitive bid process in issuing the central system provider license. Requires the winning bidder to pay no less than $10,000,000 (rather than paying $20,000,000) for the central system provider license. Allows the Department to choose whether to receive the payment in a lump sum immediately upon issuing the license or to receive partial payments over a period not to exceed one year. Requires the money to be deposited into the State Lottery Fund. Allows the Department to use up to $5,000,000 of the amount for costs of development and administration related to the Lottery sports wagering pilot program. Provides that the remainder shall be transferred to the Rebuild Illinois Projects Fund. Provides that sports lottery terminals may be placed in no more than 2,500 Lottery retail locations in the State in any one given year of the sports wagering pilot program (rather than during the first 360 days after the effective date of Public Act 101-31). Provides that the total number of retail locations of the Lottery sports wagering pilot program shall not exceed 5,000 after initial implementation of the Lottery sports wagering pilot program. Provides that the privilege tax due for Lottery sports wagering shall be transferred to the Capital Projects Fund on the last day of each month (rather than the 15th day of each month). Extends the repeal date of provisions concerning the Lottery sports wagering pilot program from January 1, 2024 to July 1, 2025. Makes other and conforming changes. Effective immediately.


LRB102 10412 SMS 15739 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2276LRB102 10412 SMS 15739 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 Sports Wagering Act is amended by changing
5Section 25-70 as follows:
 
6    (230 ILCS 45/25-70)
7    (Section scheduled to be repealed on January 1, 2024)
8    Sec. 25-70. Lottery sports wagering pilot program.
9    (a) As used in this Section:
10    "Central system" means the hardware, software,
11peripherals, and network components provided by the
12Department's central system provider that link and support all
13required sports lottery terminals and the central site and
14that are unique and separate from the lottery central system
15for draw and instant games but can integrate with lottery
16central system hardware if required by the Department.
17    "Central system provider" means an individual,
18partnership, corporation, or limited liability company that
19has been licensed for the purpose of providing and maintaining
20a central system and the related management facilities
21specifically for the management of sports lottery terminals
22and sports lottery systems.
23    "Electronic card" means a card purchased from a lottery

 

 

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1retailer, a credit card, or a debit card.
2    "Lottery retailer" means a location licensed by the
3Department to sell lottery tickets or shares or sports wagers.
4    "Sports lottery systems" means systems provided by the
5central system provider or other provider needed for operating
6a sports wagering program consisting of, but not limited to,
7sports wagering products, risk management, operations, and
8support services.
9    "Sports lottery terminal" means a terminal linked to the
10central system in which bills or coins are deposited or
11received by a retailer or an electronic card is inserted in
12order to place wagers on a sports event and lottery offerings.
13    (b) The Department shall issue one central system provider
14license pursuant to an open and competitive bidding process.
15The Department shall establish and publish the rules and
16procedures for a competitive bid process that uses the
17following procedures:
18        (1) The Department shall make applications for the
19    central system provider license available to the public
20    and allow a reasonable time for applicants to submit
21    applications to the Department.
22        (2) During the filing period for central system
23    provider license applications, the Department may retain
24    professional services to assist the Department in
25    conducting the open and competitive bidding process.
26        (3) After receiving all of the bid proposals, the

 

 

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1    Department shall open all of the proposals in a public
2    forum and disclose the prospective central system provider
3    names and venture partners, if any.
4        (4) The Department shall summarize the terms of the
5    bid proposals and may make this summary available to the
6    public.
7        (5) The Department shall evaluate the bid proposals
8    within a reasonable time and select no more than 3 final
9    applicants to make presentations of their bid proposals to
10    the Department.
11        (6) The final applicants shall make their
12    presentations to the Department on the same day during an
13    open session of the Department.
14        (7) As soon as practicable after the public
15    presentations by the final applicants, the Department, in
16    its discretion, may conduct further negotiations among the
17    3 final applicants. At the conclusion of such
18    negotiations, the Department shall select the winning bid.
19        (8) Upon selection of the winning bid, the Department
20    shall evaluate the winning bid within a reasonable period
21    of time for licensee suitability in accordance with all
22    applicable statutory and regulatory criteria.
23        (9) If the winning bidder is unable or otherwise fails
24    to consummate the transaction, (including if the
25    Department determines that the winning bidder does not
26    satisfy the suitability requirements), the Department may,

 

 

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1    on the same criteria, select from the remaining bidders.
2        (10) The winning bidder shall pay no less than
3    $10,000,000, established in the rules and procedures for
4    the competitive bid process, $20,000,000 to the Department
5    upon being issued the central system provider license. The
6    Department may determine whether to receive the payment in
7    a lump sum immediately upon issuing the central system
8    provider license or to receive partial payments over a
9    period not to exceed one year. The money shall be
10    deposited into the State Lottery Fund. The Department may
11    use up to $5,000,000 of this amount for costs of
12    development and administration related to the Lottery
13    sports wagering pilot program. The remainder shall be
14    transferred to the Rebuild Illinois Projects Fund.
15    (c) Every sports lottery terminal offered in this State
16for play shall first be tested and approved pursuant to the
17rules of the Department, and each sports lottery terminal
18offered in this State for play shall conform to an approved
19model. For the examination of sports lottery terminals and
20associated equipment as required by this Section, the central
21system provider may utilize the services of one or more
22independent outside testing laboratories that have been
23accredited by a national accreditation body and that, in the
24judgment of the Department, are qualified to perform such
25examinations. Every sports lottery terminal offered in this
26State for play must meet minimum standards set by an

 

 

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1independent outside testing laboratory approved by the
2Department.
3    (d) Sports During the first 360 days after the effective
4date of this Act, sport lottery terminals may be placed in no
5more than 2,500 Lottery retail locations in the State in any
6one given year of the Lottery sports wagering pilot program.
7The total number of retail locations of the Lottery sports
8wagering pilot program shall not exceed 5,000 after initial
9implementation of the Lottery sports wagering pilot program.
10The initial implementation of the Lottery sports wagering
11pilot program shall begin upon the successful installation and
12testing of the first sports lottery terminal at a Lottery
13retail location and the sports lottery terminal is live and
14open to place wagers. Sports lottery terminals may be placed
15in an additional 2,500 Lottery retail locations during the
16second year after the effective date of this Act.
17    (e) A sports lottery terminal may not directly dispense
18coins, cash, tokens, or any other article of exchange or value
19except for receipt tickets. Tickets shall be dispensed by
20pressing the ticket dispensing button on the sports lottery
21terminal at the end of the placement of one's wager or wagers.
22The ticket shall indicate the total amount wagered, odds for
23each wager placed, and the cash award for each bet placed, the
24time of day in a 24-hour format showing hours and minutes, the
25date, the terminal serial number, the sequential number of the
26ticket, and an encrypted validation number from which the

 

 

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1validity of the prize may be determined. The player shall turn
2in this ticket to the Department or its retailer in accordance
3with the Department's current claim procedures appropriate
4person at a lottery retailer to receive the cash award.
5    (f) No lottery retailer may cause or permit any person
6under the age of 21 years to use a sports lottery terminal or
7sports wagering application. A lottery retailer who knowingly
8causes or permits a person under the age of 21 years to use a
9sports lottery terminal or sports wagering application is
10guilty of a business offense and shall be fined an amount not
11to exceed $5,000.
12    (g) A sports lottery terminal shall only accept parlay
13wagers and fixed odds parlay wagers. The Department shall, by
14rule, establish the total amount, as a percentage, of all
15wagers placed that a lottery retailer may retain.
16    (h) The Department shall have jurisdiction over and shall
17supervise all lottery sports wagering operations governed by
18this Section. The Department shall have all powers necessary
19and proper to fully and effectively execute the provisions of
20this Section, including, but not limited to, the following:
21        (1) To investigate applicants and determine the
22    eligibility of applicants for licenses and to select among
23    competing applicants the applicants which best serve the
24    interests of the citizens of Illinois.
25        (2) To have jurisdiction and supervision over all
26    lottery sports wagering operations in this State.

 

 

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1        (3) To adopt rules for the purpose of administering
2    the provisions of this Section and to adopt rules and
3    conditions under which all lottery sports wagering in the
4    State shall be conducted. Such rules are to provide for
5    the prevention of practices detrimental to the public
6    interest and for the best interests of lottery sports
7    wagering, including rules (i) regarding the inspection of
8    such licensees necessary to operate a lottery retailer
9    under any laws or rules applicable to licensees, (ii) to
10    impose penalties for violations of the Act and its rules,
11    and (iii) establishing standards for advertising lottery
12    sports wagering.
13    (i) The Department shall adopt emergency rules to
14administer this Section in accordance with Section 5-45 of the
15Illinois Administrative Procedure Act. For the purposes of the
16Illinois Administrative Procedure Act, the General Assembly
17finds that the adoption of rules to implement this Section is
18deemed an emergency and necessary to the public interest,
19safety, and welfare.
20    (j) For the privilege of operating lottery sports wagering
21under this Section, all net sports wagering proceeds minus net
22of proceeds returned to players shall be electronically
23transferred daily or weekly, at the discretion of the Director
24of the Lottery, into the State Lottery Fund. After amounts
25owed to the central system provider and licensed agents, and
26any other amounts owed for costs incurred in the operation and

 

 

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1administration of the Lottery sports wagering pilot program,
2as determined by the Department, are paid from the moneys
3deposited into the State Lottery Fund under subsection (b) and
4this subsection, the remainder shall be transferred on the
5last day 15th of each month to the Capital Projects Fund.
6Following the reconciliation after a fiscal year audit, if an
7amount in excess of the annual remaining net sports wagering
8proceeds is transferred for a fiscal year, then the Director
9of the Lottery shall offset the transfers for the following
10fiscal year by the excess amount. If an amount less than the
11annual remaining net sports wagering proceeds is transferred
12for a fiscal year, then the Director of the Lottery shall
13increase the transfer for the following fiscal year by the
14deficit amount.
15    (k) This Section is repealed on July 1, 2025 January 1,
162024.
17(Source: P.A. 101-31, eff. 6-28-19.)
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.