Illinois General Assembly - Full Text of SB3432
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Full Text of SB3432  100th General Assembly




State of Illinois
2017 and 2018


Introduced 2/16/2018, by Sen. Napoleon Harris, III


New Act
230 ILCS 10/24
720 ILCS 5/28-1  from Ch. 38, par. 28-1

    Creates the Sports Wagering Act. Provides that sports wagering may not be offered in the State until the Illinois Gaming Board determines that federal statutes prohibiting sports wagering have been repealed or the United States Supreme Court finds those federal statutes unconstitutional. Authorizes sports wagering at a gaming facility that is authorized to conduct gambling operations under the Riverboat Gambling Act. Provides that a sports wagering operator may offer sports wagering in-person at the licensed facility and over the Internet through an interactive sports wagering platform. Provides for licensure of interactive sports wagering platforms. Requires a sports wagering operator to verify that a person placing a wager is of the legal minimum age. Requires a sports wagering operator to allow an individual to restrict himself or herself from placing wagers with the operator. Requires the Board to adopt rules concerning standards for a sports wagering operator's advertisements for sports wagering. Provides integrity requirements for a sports wagering operator. Requires a sports wagering operator to maintain all records of bets and wagers placed. Requires a sports wagering operator to submit a report to the Board annually with the number of accounts established, winnings awarded, gross wagering revenue received, and other information. Requires a sports wagering operator to pay a 12.5% tax of its gross sports wagering revenue. Provides civil penalties for a person or entity that knowingly violates provisions under the Act. Provides that all moneys collected under the Act shall be deposited into the State Gaming Fund. Makes conforming changes in the Riverboat Gambling Act and the Criminal Code of 2012.

LRB100 19706 SMS 34980 b






SB3432LRB100 19706 SMS 34980 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 1. Short title. This Act may be cited as the Sports
5Wagering Act.
6    Section 5. Reconciliation with federal law.
7    (a) Sports wagering may not be offered in this State under
8this Act until the Board determines that:
9        (1) the federal statutes prohibiting sports wagering
10    and the State regulation of sports wagering in this State
11    and similarly situated states have been repealed or amended
12    to allow this State to permit and regulate sports wagering;
13    or
14        (2) the United States Supreme Court has ruled that a
15    federal statute described in paragraph (1) of this
16    subsection is unconstitutional and may not be applied to
17    prohibit this State from permitting and regulating sports
18    wagering.
19    (b) The Board shall announce any determinations made under
20subsection (a) on the Board's Internet website within 90 days
21after a change in federal law or issuance of a relevant United
22States Supreme Court ruling.



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1    Section 10. Definitions. As used in this Act, unless the
2context requires otherwise:
3    "Board" means the Illinois Gaming Board.
4    "Gaming facility" means a facility in this State that is
5authorized to conduct gambling operations under the Riverboat
6Gambling Act.
7    "Gross sports wagering revenue" means the total of cash or
8cash equivalents an operator receives from sports wagering,
10        (1) cash or cash equivalents paid to customers as
11    winnings from sports wagering;
12        (2) cash or cash equivalents paid to purchase annuities
13    to fund prizes payable to players over a period of time as
14    a result of sports wagering;
15        (3) the actual cost paid by the sports wagering
16    operator for any personal property or services distributed
17    to customers as a prize result of sports wagering; and
18        (4) integrity fees remitted to sports governing
19    bodies.
20    "Interactive sports wagering platform" or "platform" means
21a person or entity that offers sports wagering over the
22Internet, including on websites and mobile devices, on behalf
23of a gaming facility.
24    "Sporting event" means a professional, amateur, or
25collegiate sports or athletic event, a motor race event, a
26contest of relative skill involving electronic media, or a



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1series of sporting events. "Sporting event" does not include
2youth events.
3    "Sports governing body" means the organization that
4prescribes final rules and enforces codes of conduct with
5respect to a sporting event and participants of a sporting
7    "Sports wagering" means wagering on sporting events or
8portions of sporting events, or on the individual performance
9statistics of athletes in a sporting event or combination of
10sporting events, by any system or method of wagering,
11including, but not limited to, in-person or over the Internet
12through websites and on mobile devices. "Sports wagering"
13includes, but is not limited to, single-game bets, teaser bets,
14parlays, over-under, money line, pools, exchange wagering,
15in-game wagering, in-play bets, proposition bets, and straight
16bets. "Sports wagering" does not include:
17        (1) fantasy sports and daily fantasy sports; or
18        (2) gaming that is authorized in this State under the
19    Illinois Horse Racing Act of 1975, the Riverboat Gambling
20    Act, and the Video Gaming Act.
21    "Sports wagering operator" or "operator" means a gaming
22facility that offers sports wagering or an interactive sports
23wagering platform that offers sports wagering on behalf of a
24gaming facility.
25    "Wager" or "bet" means the staking or risking by a person
26of something of value upon an agreement or understanding that



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1the person or another person will receive something of value in
2the event of a certain outcome. "Wager" or "bet" does not
4        (1) any activity governed by the securities laws of the
5    United States or this State;
6        (2) any contract of indemnity or guarantee;
7        (3) any contract for insurance; or
8        (4) participation in any game or contest in which the
9    participants do not stake or risk anything of value other
10    than personal efforts of the participants in playing the
11    game or contest or obtaining access to the Internet or
12    points or credits that the sponsor of the game or contest
13    provides to participants free of charge and that can be
14    used or redeemed only for participation in games or
15    contests offered by the sponsor.
16    "Youth event" means a sporting event in which the
17participants are amateurs and primarily under the age of 18
19    Section 15. Sports wagering by gaming facilities.
20    (a) Sports wagering may not be offered in this State except
21by a gaming facility pursuant to this Act.
22    (b) Gaming facilities may offer sports wagering:
23        (1) in-person at the licensed gaming facility; and
24        (2) over the Internet through an interactive sports
25    wagering platform to persons physically located in this



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1    State or a jurisdiction that has entered into a reciprocal
2    agreement with this State to allow sports wagering.
3    (c) A gaming facility may contract with an interactive
4sports wagering platform to administer sports wagering over the
5Internet on its behalf.
6    (d) Nothing in this Section shall limit the number of
7sports wagering websites or applications offered by a gaming
8facility, even if the websites share common data, hosting, and
9like services.
10    Section 20. Licensing of interactive sports wagering
12    (a) An interactive sports wagering platform may offer
13sports wagering on behalf of a gaming facility only if it holds
14an interactive sports wagering platform license issued by the
16    (b) An applicant for an interactive sports wagering
17platform license shall:
18        (1) submit an application to the Board in the manner
19    prescribed by the Board to verify the interactive sports
20    wagering platform's eligibility under this Act; and
21        (2) pay an initial fee of $10,000.
22    (c) Each year on or before the anniversary date of the
23payment of the initial fee made under paragraph (2) of
24subsection (b), if the interactive sports wagering platform
25license has been issued, an interactive sports wagering



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1platform shall pay to the Board an annual license renewal fee
2of $5,000.
3    (d) An interactive sports wagering platform that allows its
4license to lapse without requesting an extension of time may be
5required to resubmit an initial license application and initial
6fee. An extension not to exceed 60 days may be granted by the
7Board upon receipt of the interactive sports wagering
8platform's written request.
9    (e) Notwithstanding any other provision of law, an
10interactive sports wagering platform license application and
11all documents, reports, and data submitted by an interactive
12sports wagering platform to the Board containing proprietary
13information, trade secrets, financial information, or personal
14information about any person shall be treated by the Board as
15closed records and shall not to be disclosed to the public
16unless required by a court order or this Act.
17    (f) An interactive sports wagering platform may enter into
18agreements to offer sports wagering on behalf of one or more
19gaming facilities without limitation. Such agreements are not
20prerequisites to obtaining an interactive sports wagering
21platform license.
22    Section 25. Sports wagering operators; consumer
24    (a) Sports wagering operators shall verify that a person
25placing a wager is of the legal minimum age for placing the



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2    (b) Sports wagering operators shall allow individuals to
3restrict themselves from placing wagers with the operator,
4including wager limits, and take reasonable steps to prevent
5those individuals from placing such wagers, including, upon
6request of the individual, to share the request with the Board
7for the sole purpose of disseminating the request to other
8sports wagering operators.
9    (c) The Board shall adopt rules to ensure that an
10operator's advertisements for sports wagering:
11        (1) do not target minors or other persons who are
12    ineligible to place wagers, problem gamblers, or other
13    vulnerable persons;
14        (2) disclose the identity of the sports wagering
15    operator;
16        (3) provide information about or links to resources
17    relating to gambling addiction; and
18        (4) are not otherwise false, misleading, or deceptive
19    to a reasonable consumer.
20    Section 30. Integrity requirements.
21    (a) Sports wagering operators shall conduct background
22checks on newly hired employees and annual background checks on
23all existing employees. Background checks shall search for
24criminal history and any charges or convictions involving
25corruption or manipulation of sporting events and association



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1with organized crime.
2    (b) Sports wagering operators shall employ commercially
3reasonable methods to:
4        (1) prohibit the operator, directors, officers, and
5    employees of the operator, and any relative living in the
6    same household as those persons, from placing bets with the
7    operator;
8        (2) use publicly available information and any lists of
9    employees and affiliates provided to the sports wagering
10    operator or the Board by a sports governing body, prohibit
11    wagering by an athlete, coach, referee, team owner,
12    employee of a sports governing member or one of its member
13    teams, and player and referee union personnel;
14        (3) prohibit wagering by persons who are under the
15    minimum legal age for placing wagers;
16        (4) prohibit an individual with access to non-public
17    confidential information held by the operator from placing
18    wagers with the operator;
19        (5) prohibit persons from placing wagers as agents or
20    proxies for others; and
21        (6) maintain the security of wagering data, customer
22    data, and other confidential information from unauthorized
23    access and dissemination; however, nothing in this Act
24    shall preclude the use of Internet or cloud-based hosting
25    of that data and information or disclosure as required by a
26    court order, other law, or this Act.



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1    (c) A sports governing body may, at its election, notify
2the Board that it desires to restrict or limit wagering on its
3sporting events to ensure the integrity of its contests by
4providing notice in the form and manner as the Board may
5require, including restrictions on the sources of data and
6associated video upon which an operator may rely in offering
7and paying wagers and the bet types that may be offered. Upon
8receiving the notice, the Board shall publish any such wagering
9restrictions and limitations. Offering or taking wagers
10contrary to such restrictions is a violation of this Act.
11    (d) The Board and sports wagering operators shall cooperate
12with investigations conducted by a sports governing body or law
13enforcement agencies, including, but not limited to, providing
14or facilitating the provision of betting information and audio
15or video files relating to persons placing wagers.
16    (e) Sports wagering operators shall immediately report to
17the Board any information relating to:
18        (1) criminal or disciplinary proceedings commenced
19    against the sports wagering operator in connection with its
20    operations;
21        (2) abnormal betting activity or patterns that may
22    indicate a concern with the integrity of a sporting event
23    or events;
24        (3) a potential breach of the internal rules and codes
25    of conduct of the sports governing body pertaining to
26    sports wagering;



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1        (4) any other conduct that corrupts a betting outcome
2    of a sporting event or events for purposes of financial
3    gain; or
4        (5) suspicious or illegal wagering activities,
5    including use of funds derived from illegal activity,
6    wagers to conceal or launder funds derived from illegal
7    activity, using agents to place wagers, and using false
8    identification.
9    Sports wagering operators shall also immediately report
10information relating to conduct described in paragraph (3),
11(4), or (5) to the relevant sports governing body.
12    (f) Sports wagering operators shall maintain the
13confidentiality of information provided by a sports governing
14body to the sports wagering operator, unless disclosure is
15required by this Act, the Board, other law, or a court order.
16    Section 35. Recordkeeping; information sharing.
17    (a) Sports wagering operators shall maintain records of all
18bets and wagers placed, including personally identifiable
19information of the bettor, amount and type of bet, time the bet
20was placed, location of the bet, including the Internet
21protocol address if applicable, the outcome of the bet, records
22of abnormal betting activity, and video camera recordings in
23the case of in-person wagers for at least 3 years after the
24sporting event occurs and make the data available for
25inspection upon request of the Board or as required by a court



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2    (b) If a sports governing body has notified the Board that
3real-time information sharing for wagers placed on its sporting
4events is necessary and desirable, sports wagering operators
5shall share in real time the information required to be
6retained pursuant to this Section (other than video files) with
7the sports governing body or its designee respecting wagers on
8its sporting events.
9    (c) A sports wagering operator shall remit to a sports
10governing body that it has provided notice to the Board
11pursuant to subsection (b) an integrity fee of 1% of the amount
12wagered on its sporting events. The sports wagering operator
13shall remit integrity fees to the sports governing body at
14least once per calendar quarter.
15    (d) The Board shall cooperate with a sports governing body
16and operators to ensure the timely, efficient, and accurate
17sharing of information and the remittance of proceedings of the
18integrity fee to the sports governing body.
19    Section 40. Annual report.
20    (a) Each licensed sports wagering operator shall annually
21submit a report to the Board no later than June 30 of each year
22that shall include the following information as it shall apply
23to accounts held by customers located in this State:
24        (1) the total number of new accounts established in the
25    preceding year, as well as the total number of accounts



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1    permanently closed in the preceding year;
2        (2) the total amount of bets received from customers;
3        (3) the total amount of winnings awarded to customers;
4        (4) the total amount on hold on each type of bet;
5        (5) the total amount of gross wagering revenue received
6    by the licensed sports wagering operator; and
7        (6) the total number of persons that requested to
8    exclude themselves from or otherwise limit their
9    participation in sports wagering.
10    (b) Upon the submission of the annual report, to such
11extent the Board deems it to be in the public interest, the
12Board shall be authorized to conduct a financial audit of any
13sports wagering operator to ensure compliance with this Act.
14    (c) The Board shall annually publish a report based on the
15aggregate information provided by all licensed sports wagering
16operators, which shall be published on the Board's website no
17later than 180 days after the deadline for the submission of
18individual reports as specified in this Act.
19    Section 45. Taxation; reporting of customer tax
21    (a) For the privilege of offering sports wagering in this
22State, sports wagering operators shall pay a tax equivalent to
2312.5% of their gross sports wagering revenue generated within
24this State, which shall be paid to the Board not less than once
25per calendar year.



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1    (b) The Board shall deposit into the State Gaming Fund all
2taxes imposed by this Act; any interest and penalties imposed
3by the Board relating to those taxes; all penalties levied and
4collected by the Board; and the appropriate funds, cash, or
5prizes forfeited from sports wagering.
6    (c) Sports wagering operators shall collect and report
7information to the Board to reasonably ensure that State taxes
8on prizes from winning wagers are collected from or reported by
9the person placing the bet or wager, as required by law, at the
10time of any payment of the proceeds of the bet or wager.
11    Section 50. Imputation. The performance of any act
12required, or the forbearance of any act prohibited, by this Act
13by an interactive sports wagering platform shall be imputed to
14the gaming facility on behalf of which it is operating, and
15vice versa.
16    Section 55. Civil penalty. A person, firm, corporation,
17association, agent, or employee who knowingly violates a
18provision of this Act shall be liable for a civil penalty of
19not more than $5,000 for each violation, not to exceed $50,000
20for violations arising out of the same transaction or
21occurrence that may be recovered in a civil action brought by
22the Board.
23    Section 60. Moneys collected. All moneys collected by the



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1Board under this Act shall be deposited into the State Gaming
2Fund and used for the administration of this Act.
3    Section 65. Reconciliation with other State law; no
4liability for information sharing.
5    (a) The provisions of the Riverboat Gambling Act, and all
6rules adopted thereunder, shall apply to this Act, except where
7there is a conflict between the 2 Acts.
8    (b) A sports wagering operator shall not be liable under
9the laws of this State to any party, including customers, for
10disclosing information as required under this Act and shall not
11be liable for refusing to disclose information unless required
12under this Act.
13    Section 905. The Riverboat Gambling Act is amended by
14changing Section 24 as follows:
15    (230 ILCS 10/24)
16    Sec. 24. Applicability of this Illinois Riverboat Gambling
18    (a) The provisions of this the Illinois Riverboat Gambling
19Act, and all rules adopted promulgated thereunder, shall apply
20to the Video Gaming Act, except where there is a conflict
21between the 2 Acts.
22    (b) The provisions of this Act, and all rules adopted
23thereunder, shall apply to the Sports Wagering Act, except



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1where there is a conflict between the 2 Acts.
2(Source: P.A. 96-37, eff. 7-13-09.)
3    Section 910. The Criminal Code of 2012 is amended by
4changing Section 28-1 as follows:
5    (720 ILCS 5/28-1)  (from Ch. 38, par. 28-1)
6    Sec. 28-1. Gambling.
7    (a) A person commits gambling when he or she:
8        (1) knowingly plays a game of chance or skill for money
9    or other thing of value, unless excepted in subsection (b)
10    of this Section;
11        (2) knowingly makes a wager upon the result of any
12    game, contest, or any political nomination, appointment or
13    election;
14        (3) knowingly operates, keeps, owns, uses, purchases,
15    exhibits, rents, sells, bargains for the sale or lease of,
16    manufactures or distributes any gambling device;
17        (4) contracts to have or give himself or herself or
18    another the option to buy or sell, or contracts to buy or
19    sell, at a future time, any grain or other commodity
20    whatsoever, or any stock or security of any company, where
21    it is at the time of making such contract intended by both
22    parties thereto that the contract to buy or sell, or the
23    option, whenever exercised, or the contract resulting
24    therefrom, shall be settled, not by the receipt or delivery



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1    of such property, but by the payment only of differences in
2    prices thereof; however, the issuance, purchase, sale,
3    exercise, endorsement or guarantee, by or through a person
4    registered with the Secretary of State pursuant to Section
5    8 of the Illinois Securities Law of 1953, or by or through
6    a person exempt from such registration under said Section
7    8, of a put, call, or other option to buy or sell
8    securities which have been registered with the Secretary of
9    State or which are exempt from such registration under
10    Section 3 of the Illinois Securities Law of 1953 is not
11    gambling within the meaning of this paragraph (4);
12        (5) knowingly owns or possesses any book, instrument or
13    apparatus by means of which bets or wagers have been, or
14    are, recorded or registered, or knowingly possesses any
15    money which he has received in the course of a bet or
16    wager;
17        (6) knowingly sells pools upon the result of any game
18    or contest of skill or chance, political nomination,
19    appointment or election;
20        (7) knowingly sets up or promotes any lottery or sells,
21    offers to sell or transfers any ticket or share for any
22    lottery;
23        (8) knowingly sets up or promotes any policy game or
24    sells, offers to sell or knowingly possesses or transfers
25    any policy ticket, slip, record, document or other similar
26    device;



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1        (9) knowingly drafts, prints or publishes any lottery
2    ticket or share, or any policy ticket, slip, record,
3    document or similar device, except for such activity
4    related to lotteries, bingo games and raffles authorized by
5    and conducted in accordance with the laws of Illinois or
6    any other state or foreign government;
7        (10) knowingly advertises any lottery or policy game,
8    except for such activity related to lotteries, bingo games
9    and raffles authorized by and conducted in accordance with
10    the laws of Illinois or any other state;
11        (11) knowingly transmits information as to wagers,
12    betting odds, or changes in betting odds by telephone,
13    telegraph, radio, semaphore or similar means; or knowingly
14    installs or maintains equipment for the transmission or
15    receipt of such information; except that nothing in this
16    subdivision (11) prohibits transmission or receipt of such
17    information for use in news reporting of sporting events or
18    contests; or
19        (12) knowingly establishes, maintains, or operates an
20    Internet site that permits a person to play a game of
21    chance or skill for money or other thing of value by means
22    of the Internet or to make a wager upon the result of any
23    game, contest, political nomination, appointment, or
24    election by means of the Internet. This item (12) does not
25    apply to activities referenced in items (6) and (6.1) of
26    subsection (b) of this Section.



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1    (b) Participants in any of the following activities shall
2not be convicted of gambling:
3        (1) Agreements to compensate for loss caused by the
4    happening of chance including without limitation contracts
5    of indemnity or guaranty and life or health or accident
6    insurance.
7        (2) Offers of prizes, award or compensation to the
8    actual contestants in any bona fide contest for the
9    determination of skill, speed, strength or endurance or to
10    the owners of animals or vehicles entered in such contest.
11        (3) Pari-mutuel betting as authorized by the law of
12    this State.
13        (4) Manufacture of gambling devices, including the
14    acquisition of essential parts therefor and the assembly
15    thereof, for transportation in interstate or foreign
16    commerce to any place outside this State when such
17    transportation is not prohibited by any applicable Federal
18    law; or the manufacture, distribution, or possession of
19    video gaming terminals, as defined in the Video Gaming Act,
20    by manufacturers, distributors, and terminal operators
21    licensed to do so under the Video Gaming Act.
22        (5) The game commonly known as "bingo", when conducted
23    in accordance with the Bingo License and Tax Act.
24        (6) Lotteries when conducted by the State of Illinois
25    in accordance with the Illinois Lottery Law. This exemption
26    includes any activity conducted by the Department of



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1    Revenue to sell lottery tickets pursuant to the provisions
2    of the Illinois Lottery Law and its rules.
3        (6.1) The purchase of lottery tickets through the
4    Internet for a lottery conducted by the State of Illinois
5    under the program established in Section 7.12 of the
6    Illinois Lottery Law.
7        (7) Possession of an antique slot machine that is
8    neither used nor intended to be used in the operation or
9    promotion of any unlawful gambling activity or enterprise.
10    For the purpose of this subparagraph (b)(7), an antique
11    slot machine is one manufactured 25 years ago or earlier.
12        (8) Raffles and poker runs when conducted in accordance
13    with the Raffles and Poker Runs Act.
14        (9) Charitable games when conducted in accordance with
15    the Charitable Games Act.
16        (10) Pull tabs and jar games when conducted under the
17    Illinois Pull Tabs and Jar Games Act.
18        (11) Gambling games conducted on riverboats when
19    authorized by the Riverboat Gambling Act.
20        (12) Video gaming terminal games at a licensed
21    establishment, licensed truck stop establishment, licensed
22    fraternal establishment, or licensed veterans
23    establishment when conducted in accordance with the Video
24    Gaming Act.
25        (13) Games of skill or chance where money or other
26    things of value can be won but no payment or purchase is



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1    required to participate.
2        (14) Savings promotion raffles authorized under
3    Section 5g of the Illinois Banking Act, Section 7008 of the
4    Savings Bank Act, Section 42.7 of the Illinois Credit Union
5    Act, Section 5136B of the National Bank Act (12 U.S.C.
6    25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C.
7    1463).
8        (15) Sports wagering when conducted in accordance with
9    the Sports Wagering Act.
10    (c) Sentence.
11    Gambling is a Class A misdemeanor. A second or subsequent
12conviction under subsections (a)(3) through (a)(12), is a Class
134 felony.
14    (d) Circumstantial evidence.
15    In prosecutions under this Section circumstantial evidence
16shall have the same validity and weight as in any criminal
18(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)