SB1667ham001 100TH GENERAL ASSEMBLY

Rep. Michael J. Zalewski

Filed: 5/29/2017

10000SB1667ham001 LRB100 10711 AMC 27256 a

AMENDMENT TO SENATE BILL 1667

AMENDMENT NO. ______. Amend Senate Bill 1667 by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act may be cited as the Fantasy Sports Contest Act.

Section 5. Legislative intent. This Act is designed to provide regulation of companies providing access to paid fantasy sports contests and protect Illinois consumers who play paid fantasy sports contests for prizes from unfair acts and practices that may arise in the gaming process. The regulation is also intended to protect the families of persons who play paid fantasy sports contests to the extent that they may be affected by unfair and deceptive practices that lead to unaffordable losses.

Section 10. Definitions. In this Act:

"Beginner fantasy sports player" means an individual who is at least 21 years of age and who has entered fewer than 51 fantasy sports contests offered by a single fantasy sports contest operator.

"Board" means the Illinois Gaming Board.

"Confidential information" means information related to the play of a fantasy sports contest by fantasy sports players obtained as a result of or by virtue of a person's employment with a fantasy sports contest operator.

"Entry fee" means the cash or cash equivalent paid by a fantasy sports player located in Illinois at the time of entry for participation in a fantasy sports contest.

"Fantasy sports contest" means any fantasy contest, in which:

(1) the value of all prizes and awards offered to winning participants are established and made known to the participants in advance of the contest and their value is not determined by the number of participants or the amount of any fees paid by those participants;

(2) all winning outcomes are determined predominantly by accumulated statistical results of the performance of individual athletes in real-world professional athletic competitions; a professional athletic competition does not include any amateur or collegiate level sport; and

(3) no winning outcome is based on the score, point spread, or any performance or performances of any single actual team or combination of such teams or solely on any single performance of an individual athlete or player in any single actual event.

A fantasy sports contest in a game or contest that involves individual athletes from real-world professional athletic teams, such as football, baseball, basketball, hockey, soccer, and other team sports: (i) shall consist of individual athletes from at least 3 different real-world professional athletic teams and (ii) shall not have more than 4 individual athletes from a single real-world professional athletic team. However, the prohibition contained in item (ii) of this paragraph does not apply to a season-long fantasy sports contest.

"Fantasy sports contest operator" means any individual, partnership, corporation, or limited liability company that engages in the business of offering, by means of the Internet, a smart phone application, or other similar electronic or digital media or communication technologies, multiple fantasy sports contests to persons.

"Fantasy sports contest platform" means any website, smart phone application, or other portal providing access to a fantasy sports contest.

"Fantasy sports contest revenues" means the amount of entry fees collected from fantasy sports players located in Illinois accepted by a fantasy sports contest operator that are not awarded as prizes to fantasy sports players.

"Fantasy sports player" means an individual 21 years of age or over who enters into a fantasy sports contest with an entry fee offered by a fantasy sports contest operator.

"Highly experienced fantasy sports player" means an individual who is at least 21 years of age and has (1) entered more than 1,000 contests offered by a single fantasy sports contest operator or (2) has won more than 3 prizes valued at $1,000 or more. Once a fantasy sports player is classified as a highly experienced fantasy sports player, a player shall remain classified as such.

"Minor" means an individual under 21 years of age.

"Prize" means anything of value, including money, contest credits, merchandise, or admission to another contest.

"Scripts" means commands that a fantasy sports contest-related computer program can execute that are created by fantasy sports players (or by third parties for the use of fantasy sports players) to automate processes on a fantasy sports contest platform.

"Season-long fantasy sports contest" means a fantasy sports contest offered by a fantasy sports contest operator that is conducted over an entire sports season where the entry fee is paid prior to the start of the season.

Section 15. Applicability. This Act and all rules adopted under the authority of this Act shall only apply to fantasy sports contests when an entry fee is paid by a fantasy sports player at the time of entry for participation in a fantasy sports contest.

Section 20. Authority of the Board.

(a) The Board shall have jurisdiction over and shall supervise all fantasy sports contests governed by this Act. The Board shall have all powers necessary and proper to fully and effectively execute the provisions of this Act, including, but not limited to, the following:

(1) To investigate applicants and determine the eligibility of applicants for licenses that best serve the interests of the citizens of Illinois.

(2) To adopt such rules as in its judgment may be necessary to protect or enhance the credibility and integrity of fantasy sports contests authorized by this Act and the regulatory process under this Act.

(3) To provide for the establishment and collection of all license and registration fees and taxes imposed by this Act and the rules issued pursuant to this Act. All license fees shall be deposited into the State Gaming Fund, and all taxes collected shall be deposited into the Education Assistance Fund.

(4) To suspend, revoke, or restrict licenses; to require the removal of a fantasy sports contest operator or an employee of a fantasy sports contest operator for a violation of this Act or a Board rule or for engaging in a fraudulent practice; and to impose civil penalties of up to $5,000 against individuals and up to $10,000 or an amount equal to the fantasy sports contest revenues, whichever is larger, against licensees for each violation of any provision of the Act, any rules adopted by the Board, any order of the Board, or any other action which, in the Board's discretion, is a detriment or impediment to fantasy sports contests.

(5) To provide for the levy and collection of penalties and fines for the violation of provisions of this Act and the rules adopted under this Act. All such fines and penalties shall be deposited into the State Gaming Fund.

(b) The Board shall adopt emergency rules to administer this Act in accordance with Section 5-45 of the Illinois Administrative Procedure Act. For the purposes of the Illinois Administrative Procedure Act, the General Assembly finds that the adoption of rules to implement this Act is deemed an emergency and necessary to the public interest, safety, and welfare.

Section 25. Fantasy sports player accounts.

(a) A fantasy sports contest operator shall not allow a fantasy sports player to create more than one username or more than one account. A fantasy sports contest operator shall take commercially and technologically reasonable measures to verify a fantasy sports player's true identity and address. A fantasy sports contest operator shall implement and prominently publish procedures to terminate all accounts of a fantasy sports player that establishes or seeks to establish more than one username or more than one account, whether directly or by use of another person as a proxy. The procedures may allow a fantasy sports player that establishes or seeks to establish more than one username or more than one account to retain one account provided that the fantasy sports contest operator investigates and makes a good faith determination that the fantasy sports player's conduct was not intended to obtain a competitive advantage.

(b) Fantasy sports contest operators shall not allow fantasy sports players to use a proxy server for the purpose of misrepresenting their location in order to engage in fantasy sports contests.

(c) Fantasy sports contest operators shall implement and prominently publish procedures to terminate all accounts of any fantasy sports player that establishes or seeks to establish more than one username or more than one account, whether directly or by use of another person as a proxy. If an account is terminated for establishing or seeking to establish more than one username or more than one account, the account holder is prohibited from establishing another account with that fantasy sports contest operator.

(d) Fantasy sports contest operators shall take commercially and technologically reasonable measures to prevent one fantasy sports player from acting as a proxy for another. These measures shall include, without limitation, use of geolocation technologies to prevent simultaneous logins to a single account from geographically inconsistent locations.

Section 30. Protection of consumer funds on deposit and compliance with data security requirements.

(a) Fantasy sports contest operators shall comply with all applicable State and federal requirements for data security, including, but not limited to, age verification and location software.

(b) Funds in fantasy sports players' accounts shall be held in segregated accounts by the fantasy sports contest operators for the fantasy sports players that establish the accounts. Fantasy sports contest operators shall implement and prominently publish procedures that:

(1) prevent unauthorized withdrawals from fantasy sports player accounts by fantasy sports contest operators or others;

(2) prevent commingling of funds in a fantasy sports player's account with other funds, including, without limitation, funds of the fantasy sports contest operator; fantasy sports player funds shall be segregated from fantasy sports contest operators' operational funds and any other funds held by the fantasy sports contest operator; and

(3) address reporting on complaints by fantasy sports players that their accounts have been misallocated, compromised, or otherwise mishandled.

(c) Fantasy sports contest operators shall implement and prominently publish procedures that allow any fantasy sports player to permanently close an account at any time and for any reason. The procedures shall allow for cancellation by any means, including, without limitation, by a fantasy sports player on any fantasy sports contest platform used by that fantasy sports player to make deposits into a fantasy sports player account. A copy of a fantasy sports contest operator's procedures shall be submitted to the Board and any changes shall be submitted within 30 days.

(d) When a fantasy sports player account is closed, the fantasy sports contest operator shall refund all funds in the account no later than 5 business days after submission of the request or 10 business days after submission of any tax reporting information required by law, whichever is later, unless the fantasy sports contest operator makes a good faith determination that the fantasy sports player engaged in fraudulent or other conduct that would constitute a violation of this Act, rules adopted pursuant to this Act, or the fantasy sports contest operator's policies, in which case, upon notice to the fantasy sports player of that determination, the withdrawal may be held pending a reasonable investigative period to resolve its investigation. For the purposes of this subsection (d), a request for withdrawal shall be considered honored if it is processed by the fantasy sports contest operator, but delayed by a payment processor, a credit card issuer, or the custodian of the financial account.

(e) If a prize is awarded to a fantasy sports player with a closed account, that prize, to the extent it consists of funds, shall be distributed by the fantasy sports contest operator within 5 business days, or 10 business days of submission of any tax reporting information required by law, unless the fantasy sports contest operator makes a good faith determination that the fantasy sports player engaged in fraudulent or other conduct that would constitute a violation of this Act or rules adopted pursuant to this Act. If such determination is made, then the prize may be withheld, provided that it is then awarded to another fantasy sports player in the same contest who would have won the prize had the fantasy sports player with the closed account not participated.

(f) A fantasy sports contest operator shall close any fantasy player account that is inactive for 2 years and notify the account holder that the account has been closed by email and by mail to the account holder's last known address. When a fantasy sports player account is closed due to inactivity, the fantasy sports contest operator shall refund all funds in the fantasy sports player account within 30 days, subject to the receipt of any tax information required by law. In the event that funds in a closed fantasy sports player account exceed $5 and cannot be refunded and remain unclaimed, the fantasy sports contest operator shall provide notice of the existence of funds to the fantasy sports player no less often than annually for 3 years. If the funds in a closed fantasy sports player account are for $5 or less, such notice shall be provided one time upon the closing of the account. Such notice shall be provided by email and by mail to the account holder's last known address and shall provide a process for claiming the funds. In the event that funds in a closed fantasy sports player account cannot be refunded and remain unclaimed by the fantasy sports player after 3 years, such funds shall be paid by the fantasy sports contest operator to the Unclaimed Property Trust Fund in the Office of the State Treasurer.

(g) A fantasy sports contest operator shall prominently publish all contractual terms and conditions and rules of general applicability that affect a fantasy sports player's account. Presentation of such terms, conditions, and rules at the time of onboarding a new fantasy sports player shall not suffice.

(h) Fantasy sports player's deposits shall be limited to no more than $3,000 per quarter. However, a fantasy sports contest operator may establish and prominently publish procedures for temporarily or permanently increasing a fantasy sports player's deposit limit, at the request of the fantasy sports player, above $3,000 per quarter. Such procedures shall be submitted to the Board.

If established by a fantasy sports contest operator, such procedures shall include evaluation of information, including income or asset information, sufficient to establish that the fantasy sports player can afford losses that might result from gameplay at the deposit limit level requested.

When a temporary or permanent deposit level limit increase is approved, the fantasy sports contest operator's procedures shall provide for annual re-certification of a player's financial ability to afford losses.

Section 35. Restrictions on games offered by a fantasy sports contest operator.

(a) All fantasy sports contest operators, except fantasy sports contest operators who only offer season-long fantasy sports contests, shall develop games that are limited to beginner fantasy sports players and shall prohibit fantasy sports players who are not beginner fantasy sports players from participating in those games either directly or through another person as a proxy. A fantasy sports contest operator shall suspend the account of any fantasy sports player who is not a beginner fantasy sports player and attempts to enter a game limited to beginner fantasy sports players directly or through another person as a proxy and shall ban such individual from further play.

(b) All fantasy sports contest operators, except fantasy sports contest operators who only offer season-long fantasy sports contests, shall develop games in which highly experienced fantasy sports players cannot participate either directly or through another person as a proxy. A fantasy sports contest operator shall suspend the account of any highly experienced fantasy sports player who attempts to enter a game that excludes highly experienced fantasy sports players directly or through another person as a proxy and shall ban such individual from further play. Fantasy sports contest operators shall identify highly experienced fantasy sports players by a symbol attached to their username, or by other easily visible means, on all fantasy sports contest platforms.

(c) Fantasy sports contest operators shall have prominently published rules that govern when each fantasy sports contest shall close or lock. Each fantasy sports contest operator shall also prominently disclose contest-specific information about the time that the contest closes or locks in connection with each contest offered. A fantasy sports contest operator shall strictly enforce all disclosed closing or lock times.

(d) Fantasy sports contest operators shall restrict the number of entries into fantasy sports contests in the following manner:

(1) Fantasy sports contest operators shall not allow fantasy sports players to submit more than one entry in any fantasy sports contest involving 12 total entries or less.

(2) Fantasy sports contest operators shall not allow fantasy sports players to submit more than 2 entries in any fantasy sports contest involving 13 to 36 total entries.

(3) Fantasy sports contest operators shall not allow fantasy sports players to submit more than 3 entries in any fantasy sports contest involving 37 to 100 total entries.

(4) Fantasy sports contest operators shall not allow fantasy sports players to submit more than 3% of all entries in any contest involving more than 100 total entries.

(5) For all advertised fantasy sports contests, the fantasy sports contest operator shall prominently include information about the maximum number of entries that may be submitted for that contest.

(e) Fantasy sports contest operators shall allow individuals to restrict themselves from entering fantasy sports contests under this Act. These restrictions shall include, but not be limited to, (1) fantasy sports contest entry limits, (2) limiting play to fantasy sports contest with entry fees below an established limit, and (3) self-imposed deposit limits less than allowed under this Act. Fantasy sports contest operators shall implement and prominently publish procedures for fantasy sports players to implement the restrictions. Fantasy sports players shall have the option to adjust these limits to make them more restrictive of gameplay as often as they like, but shall not have the option to make limits less restrictive of gameplay within 90 days after setting the limits.

Section 40. Prohibited activities by a fantasy sports contest operator.

(a) No fantasy sports contest operator employee, principal, officer, director, or contractor shall play on any fantasy sports contest platform of any fantasy sports contest operator or play through another person as a proxy. For the purposes of this subsection (a), a contractor is limited to a contractor who can access information of a fantasy sports contest operator related to the conduct of a fantasy sports contest that is not available to other fantasy sports players. Fantasy sports contest operators shall make these restrictions known to all affected individuals and corporate entities.

(b) No fantasy sports contest operator employee, principal, officer, director, or contractor shall disclose confidential information that may affect fantasy sports contest gameplay to any person permitted to engage in fantasy sports contest gameplay. Fantasy sports contest operators shall make these restrictions known to all affected individuals and corporate entities.

(c) No fantasy sports contest operator shall allow a professional athlete whose individual statistics or performance may be used to determine any part of the outcome of any fantasy sports contest to enter fantasy sports contests in the sports in which he or she participates. A fantasy sports contest operator shall take commercially reasonable efforts to prevent a sports agent, team employee, referee, or league official associated with any competition that is the subject of fantasy sports contests to enter fantasy sports contests in the sport in which he or she participates, nor shall such athlete, sports agent, team official, team representative, referee, or league official play through another person as a proxy.

(1) Fantasy sports contest operators shall take commercially reasonable efforts to obtain lists of persons described in this subsection (c) for the purpose of implementing this subsection (c).

(2) Fantasy sports contest operators, upon learning of a violation of this subsection (c), shall bar the individual committing the violation from playing in any fantasy sports contest by suspending the individual's account and banning the individual from further play, shall terminate any existing promotional agreements with the individual, and shall refuse to make any new promotional agreements that compensate the individual.

(3) Fantasy sports contest operators shall make these restrictions known to all affected individuals and corporate entities.

(d) No fantasy sports contest operator shall allow minors to create a fantasy sports contest account. Fantasy sports contest operators shall include age verification measures when establishing a fantasy sports contest account.

(e) No fantasy sports contest operator may extend credit to a fantasy sports player.

(f) A fantasy sports contest operator shall not permit unauthorized scripts to be used on fantasy sports contest platforms and shall use commercially reasonable efforts to monitor for and to prevent use of such scripts.

(g) A fantasy sports contest operator shall bar any individual or corporation found to be using an unauthorized script from playing in any fantasy sports contest by terminating the individual or corporate account and by banning that individual or corporation from further play.

(h) A fantasy sports contest operator shall not authorize scripts that provide a player with a competitive advantage over another player.

(i) For the purpose of subsections (f), (g), and (h) of this Section, a script shall be treated as offering a competitive advantage for reasons including, but not limited to, its potential use to:

(1) facilitate entry of multiple contests with a single line-up;

(2) facilitate changes in many line-ups at one time;

(3) facilitate use of commercial products designed and distributed by third parties to identify advantageous game strategies; or

(4) gather information about the performance of others for the purpose of identifying or entering contests against fantasy sports players who are less likely to be successful.

Section 45. Advertising.

(a) Advertisements of fantasy sports contest operators shall not depict (i) minors (other than professional athletes who may be minors), (ii) students, (iii) schools, colleges, or universities, or (iv) school, college, or university settings. However, incidental depiction of non-featured minors or minors accompanying adults shall not be a violation of this subsection (a).

(b) Fantasy sports contest operators shall not advertise on school, college, or university campuses.

(c) Fantasy sports contest operators shall not advertise at amateur athletic competitions, except to the extent that those competitions are played in stadiums where professional competitions are held and where non-digital advertisements have been posted, erected, or otherwise displayed in a manner that would require substantial effort to remove.

Section 50. Withholding of delinquent child support.

(a) From individual winnings of $600 or more that are subject to reporting to the Internal Revenue Service on Form 1099, a fantasy sports contest operator shall withhold up to the full amount of winnings necessary to pay the winner's past due child support amount as certified by the Department of Healthcare and Family Services under Section 10-17.15 of the Illinois Public Aid Code. Amounts withheld shall be paid to the Department of Healthcare and Family Services by the fantasy sports contest operator, as applicable. This process shall be accomplished as provided in 89 Ill. Adm. Code 160.70(q).

(b) For withholding of winnings, the fantasy sports contest operator shall be entitled to an administrative fee not to exceed the lesser of 4% of the total amount of cash winnings paid to the fantasy sports player or $150.

(c) In no event shall the total amount withheld from the cash payout exceed the total cash winnings claimed by the obligor. If the cash payout claimed is greater than the amount sufficient to satisfy the obligor's delinquent child support payments, the fantasy sports contest operator shall pay the obligor the remaining balance of the payout.

(d) Any fantasy sports player that knowingly claims winnings from a single fantasy sports contest in a manner to intentionally avoid reporting winnings to the Internal Revenue Service shall be guilty of a Class A misdemeanor. Fantasy sports contest operators shall take commercially and technologically reasonable measures to ensure fantasy sports players comply with all reporting requirements. If a fantasy sports contest operator reasonably believes that the fantasy sports player engaged in conduct that would constitute a violation of federal reporting requirements, the fantasy sports contest operator shall bar the individual committing the violation from playing in any fantasy sports contest by suspending the individual's account and banning such individual from further play until the individual provides the fantasy sports contest operator proof that the individual has resolved all compliance issues with the Internal Revenue Service.

(e) A fantasy sports contest operator who in good faith complies with the requirements of this Section shall not be liable to the gaming winner or any other individual or entity.

(f) Upon request of a fantasy sports contest operator under this Act, an agent of the Board (such as a gaming special agent employed by the Board, a State police officer, or a revenue agent) shall be responsible for notifying the person identified as being delinquent in child support payments that the fantasy sports contest operator is required by law to withhold all or a portion of his or her winnings. If given, this notification must be provided at the time the winnings are withheld.

(g) The provisions of this Section shall be operative on and after the date that rules are adopted by the Department of Healthcare and Family Services pursuant to Section 10-17.15 of the Illinois Public Aid Code.

(h) The delinquent child support required to be withheld under this Section has priority over any secured or unsecured claim on cash winnings, except claims for federal or State taxes that are required to be withheld under federal or State law.

Section 55. Audits. All fantasy sports contest operators with annual fantasy sports contest revenue of $100,000 or more shall annually be subject to an audit of the financial transactions and condition of the fantasy sports contest operator's total operations as they relate to the offering and operating of fantasy sports contests and to ensure compliance with all of the requirements in this Act. Fantasy sports contest operators with annual fantasy sports contest revenues less than $100,000 shall every 3 years be subject to an audit of the financial transactions and condition of the fantasy sports contest operator's total operations as they relate to the offering and operating of fantasy sports contests and to ensure compliance with all of the requirements in this Act. All audits and compliance engagements shall be conducted by certified public accountants or an independent testing laboratory approved by the Board. Each certified public accountant must be registered in the State of Illinois under the Illinois Public Accounting Act. The compensation for each certified public accountant or independent testing laboratory shall be paid directly by the fantasy sports contest operator to the certified public accountant or independent testing laboratory. The audit shall be conducted and submitted to the Board by January 31 of each year.

Section 60. Annual reports. All fantasy sports contest operators licensed by the Board must annually submit a report to the Board no later than January 31 of each year. Information included in the report shall include:

(1) the number of fantasy sports player accounts with the fantasy sports contest operator; this shall be broken down between beginner fantasy sports players and highly experienced fantasy sports players;

(2) the number of new accounts established;

(3) the number of accounts closed;

(4) the total amount of entry fees received from fantasy sports players located in Illinois;

(5) the total amount of prizes awarded to fantasy sports players located in Illinois;

(6) the total amount of fantasy sports contest revenue;

(7) the number of fantasy sports players that are located in Illinois that requested deposit limit increases; and

(8) the number of deposit limit increases granted to fantasy sports players located in Illinois by the fantasy sports contest operator.

Section 65. Application for licensure; background investigation; fees.

(a) A qualified person may apply to the Board for a fantasy sports contest operator license to conduct fantasy sports contests as provided in this Act. The application shall be made on forms provided by the Board. The burden is upon each applicant to demonstrate suitability for licensure. Each fantasy sports contest operator shall be licensed by the Board. The Board may issue a license for a period of up to 2 years or, in the case of fantasy sports contest operators with annual fantasy sports revenues less than $100,000, for up to 3 years.

(b) Each person seeking and possessing a license as a fantasy sports contest operator shall submit to a background investigation conducted by the Board with the assistance of the State Police or other law enforcement. To the extent that the corporate structure of the applicant allows, the background investigation shall include any or all of the following as the Board deems appropriate or as provided by rule: (i) each beneficiary of a trust, (ii) each partner of a partnership, (iii) each member of a limited liability company, (iv) each director and officer of a publicly or non-publicly held corporation, (v) each stockholder of a non-publicly held corporation, (vi) each stockholder of 5% or more of a publicly held corporation, or (vii) each stockholder of 5% or more in a parent or subsidiary corporation.

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

(d) All information, records, interviews, reports, statements, memoranda, or other data supplied to or used by the Board in the course of its review or investigation of an application for a license or a renewal under this Act shall be privileged and strictly confidential and shall be used only for the purpose of evaluating an applicant for a license or a renewal. The information, records, interviews, reports, statements, memoranda, or other data shall not be admissible as evidence nor discoverable in any action of any kind in any court or before any tribunal, board, agency, or person, except for any action deemed necessary by the Board.

(e) No person may be licensed as a fantasy sports contest operator if that person has been found by the Board to:

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

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

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

(f) Any applicant for a license under this Act has the burden of proving his or her qualifications to the satisfaction of the Board. The Board may adopt rules to establish additional qualifications and requirements to preserve the integrity and security of fantasy sports contests in this State.

(g) A fantasy sports contest operator that has been operating in Illinois for at least 6 months on December 23, 2015 may operate in Illinois until a final decision is rendered on the application for a fantasy sports contest operator license.

(h) A non-refundable application fee shall be paid at the time an application for a license is filed with the Board in the following amounts:

(1) Fantasy sports contest operator with annual

fantasy sports contest revenue greater

than $10,000,000..............................$25,000

(2) Fantasy sports contest operator with annual

fantasy sports contest revenue greater than

$5,000,000 but not more than $10,000,000......$12,500

(3) Fantasy sports contest operator with annual

fantasy sports contest revenue greater than

$1,000,000 but not more than $5,000,000........$7,500

(4) Fantasy sports contest operator with annual

fantasy sports contest revenue of at least

$100,000 but not more than $1,000,000..........$5,000

(5) Fantasy sports contest operator with annual

fantasy sports contest revenue less

than $100,000....................................$500

(i) The Board shall establish a fee for each license not to exceed the following for the initial licensure period:

(1) Fantasy sports contest operator with annual

fantasy sports contest revenue greater

than $10,000,000..............................$50,000

(2) Fantasy sports contest operator with annual

fantasy sports contest revenue greater than

$5,000,000 but not more than $10,000,000......$25,000

(3) Fantasy sports contest operator with annual

fantasy sports contest revenue greater than

$1,000,000 but not more than $5,000,000.......$15,000

(4) Fantasy sports contest operator with annual

fantasy sports contest revenue of at least

$100,000 but not more than $1,000,000.........$10,000

(5) Fantasy sports contest operator with annual

fantasy sports contest revenue less

than $100,000..................................$1,500

(j) For subsequent licensure periods, the renewal fee shall not exceed the following:

(1) Fantasy sports contest operator with annual

fantasy sports contest revenue greater

than $10,000,000..............................$37,500

(2) Fantasy sports contest operator with annual

fantasy sports contest revenue greater than

$5,000,000 but not more than $10,000,000......$18,750

(3) Fantasy sports contest operator with annual

fantasy sports contest revenue greater than

$1,000,000 but no more than $5,000,000........$11,250

(4) Fantasy sports contest operator with annual

fantasy sports contest revenue of at least

$100,000 but not more than $1,000,000..........$7,500

(5) Fantasy sports contest operator with annual

fantasy sports contest revenue less

than $100,000..................................$1,125

Section 70. Distribution of license fees.

(a) All fees collected under Section 65 of this Act shall be deposited into the State Gaming Fund.

(b) Fees collected under Section 65 of this Act shall be used for the administration of this Act.

(c) All licenses issued by the Board under this Act are renewable every 2 years for fantasy sports contest operators with annual fantasy sports contest revenues of $100,000 or more and every 3 years for fantasy sports contest operators with annual fantasy sports contest revenues less than $100,000 unless sooner cancelled or terminated. No license issued under this Act is transferable or assignable.

Section 75. Imposition and distribution of tax.

(a) A privilege tax is imposed on persons engaged in the business of operating fantasy sports contests based on the fantasy sports contest revenues received by a fantasy sports contest operator licensed under this Act at the following graduated tax rates:

(1) 5% of annual fantasy sports contest revenues up to and including $1,000,000;

(2) 7.5% of annual fantasy sports contest revenues in excess of $1,000,000 but not exceeding $3,000,000;

(3) 10% of annual fantasy sports contest revenues in excess of $3,000,000 but not exceeding $8,000,000;

(4) 15% of annual fantasy sports contest revenues in excess of $8,000,000 but not exceeding $15,000,000; and

(5) 22.5% of annual fantasy sports contest revenues in excess of $15,000,000;

(b) The taxes imposed by this Section shall be paid by the fantasy sports contest operator to the Board not later than the fifteenth day of every month for the previous month's privilege taxes. All payments not remitted when due shall be paid together with a penalty assessment on the unpaid balance at a rate of 1.5% per month.

(c) All of the tax collected under this Section shall be deposited into the Education Assistance Fund.

Section 80. Limitation on taxation of fantasy sports contest operators. Fantasy sports contest operators shall not be subjected to any excise tax, license tax, permit tax, privilege tax, or occupation tax that is imposed exclusively upon the licensee by the State or any political subdivision thereof, except as provided in this Act.

Section 900. The Regulatory Sunset Act is amended by changing Section 4.31 as follows:

(5 ILCS 80/4.31)

Sec. 4.31. Acts repealed on January 1, 2021. The following Acts are repealed on January 1, 2021:

The Crematory Regulation Act.

The Cemetery Oversight Act.

The Illinois Health Information Exchange and Technology Act.

The Radiation Protection Act of 1990.

The Fantasy Sports Contest Act.

(Source: P.A. 96-1041, eff. 7-14-10; 96-1331, eff. 7-27-10; incorporates P.A. 96-863, eff. 3-1-10; 97-333, eff. 8-12-11.)

Section 905. The Illinois Horse Racing Act of 1975 is amended by changing Section 26 as follows:

(230 ILCS 5/26) (from Ch. 8, par. 37-26)

Sec. 26. Wagering.

(a) Any licensee may conduct and supervise the pari-mutuel system of wagering, as defined in Section 3.12 of this Act, on horse races conducted by an Illinois organization licensee or conducted at a racetrack located in another state or country and televised in Illinois in accordance with subsection (g) of Section 26 of this Act. Subject to the prior consent of the Board, licensees may supplement any pari-mutuel pool in order to guarantee a minimum distribution. Such pari-mutuel method of wagering shall not, under any circumstances if conducted under the provisions of this Act, be held or construed to be unlawful, other statutes of this State to the contrary notwithstanding. Subject to rules for advance wagering promulgated by the Board, any licensee may accept wagers in advance of the day of the race wagered upon occurs.

(b) No other method of betting, pool making, wagering or gambling shall be used or permitted by the licensee. Each licensee may retain, subject to the payment of all applicable taxes and purses, an amount not to exceed 17% of all money wagered under subsection (a) of this Section, except as may otherwise be permitted under this Act.

(b-5) An individual may place a wager under the pari-mutuel system from any licensed location authorized under this Act provided that wager is electronically recorded in the manner described in Section 3.12 of this Act. Any wager made electronically by an individual while physically on the premises of a licensee shall be deemed to have been made at the premises of that licensee.

(c) Until January 1, 2000, the sum held by any licensee for payment of outstanding pari-mutuel tickets, if unclaimed prior to December 31 of the next year, shall be retained by the licensee for payment of such tickets until that date. Within 10 days thereafter, the balance of such sum remaining unclaimed, less any uncashed supplements contributed by such licensee for the purpose of guaranteeing minimum distributions of any pari-mutuel pool, shall be paid to the Illinois Veterans' Rehabilitation Fund of the State treasury, except as provided in subsection (g) of Section 27 of this Act.

(c-5) Beginning January 1, 2000, the sum held by any licensee for payment of outstanding pari-mutuel tickets, if unclaimed prior to December 31 of the next year, shall be retained by the licensee for payment of such tickets until that date. Within 10 days thereafter, the balance of such sum remaining unclaimed, less any uncashed supplements contributed by such licensee for the purpose of guaranteeing minimum distributions of any pari-mutuel pool, shall be evenly distributed to the purse account of the organization licensee and the organization licensee.

(d) A pari-mutuel ticket shall be honored until December 31 of the next calendar year, and the licensee shall pay the same and may charge the amount thereof against unpaid money similarly accumulated on account of pari-mutuel tickets not presented for payment.

(e) No licensee shall knowingly permit any minor, other than an employee of such licensee or an owner, trainer, jockey, driver, or employee thereof, to be admitted during a racing program unless accompanied by a parent or guardian, or any minor to be a patron of the pari-mutuel system of wagering conducted or supervised by it. The admission of any unaccompanied minor, other than an employee of the licensee or an owner, trainer, jockey, driver, or employee thereof at a race track is a Class C misdemeanor.

(f) Notwithstanding the other provisions of this Act, an organization licensee may contract with an entity in another state or country to permit any legal wagering entity in another state or country to accept wagers solely within such other state or country on races conducted by the organization licensee in this State. Beginning January 1, 2000, these wagers shall not be subject to State taxation. Until January 1, 2000, when the out-of-State entity conducts a pari-mutuel pool separate from the organization licensee, a privilege tax equal to 7 1/2% of all monies received by the organization licensee from entities in other states or countries pursuant to such contracts is imposed on the organization licensee, and such privilege tax shall be remitted to the Department of Revenue within 48 hours of receipt of the moneys from the simulcast. When the out-of-State entity conducts a combined pari-mutuel pool with the organization licensee, the tax shall be 10% of all monies received by the organization licensee with 25% of the receipts from this 10% tax to be distributed to the county in which the race was conducted.

An organization licensee may permit one or more of its races to be utilized for pari-mutuel wagering at one or more locations in other states and may transmit audio and visual signals of races the organization licensee conducts to one or more locations outside the State or country and may also permit pari-mutuel pools in other states or countries to be combined with its gross or net wagering pools or with wagering pools established by other states.

(g) A host track may accept interstate simulcast wagers on horse races conducted in other states or countries and shall control the number of signals and types of breeds of racing in its simulcast program, subject to the disapproval of the Board. The Board may prohibit a simulcast program only if it finds that the simulcast program is clearly adverse to the integrity of racing. The host track simulcast program shall include the signal of live racing of all organization licensees. All non-host licensees and advance deposit wagering licensees shall carry the signal of and accept wagers on live racing of all organization licensees. Advance deposit wagering licensees shall not be permitted to accept out-of-state wagers on any Illinois signal provided pursuant to this Section without the approval and consent of the organization licensee providing the signal. For one year after August 15, 2014 (the effective date of Public Act 98-968) this amendatory Act of the 98th General Assembly, non-host licensees may carry the host track simulcast program and shall accept wagers on all races included as part of the simulcast program of horse races conducted at race tracks located within North America upon which wagering is permitted. For a period of one year after August 15, 2014 (the effective date of Public Act 98-968) this amendatory Act of the 98th General Assembly, on horse races conducted at race tracks located outside of North America, non-host licensees may accept wagers on all races included as part of the simulcast program upon which wagering is permitted. Beginning August 15, 2015 (one year after the effective date of Public Act 98-968) this amendatory Act of the 98th General Assembly, non-host licensees may carry the host track simulcast program and shall accept wagers on all races included as part of the simulcast program upon which wagering is permitted. All organization licensees shall provide their live signal to all advance deposit wagering licensees for a simulcast commission fee not to exceed 6% of the advance deposit wagering licensee's Illinois handle on the organization licensee's signal without prior approval by the Board. The Board may adopt rules under which it may permit simulcast commission fees in excess of 6%. The Board shall adopt rules limiting the interstate commission fees charged to an advance deposit wagering licensee. The Board shall adopt rules regarding advance deposit wagering on interstate simulcast races that shall reflect, among other things, the General Assembly's desire to maximize revenues to the State, horsemen purses, and organizational licensees. However, organization licensees providing live signals pursuant to the requirements of this subsection (g) may petition the Board to withhold their live signals from an advance deposit wagering licensee if the organization licensee discovers and the Board finds reputable or credible information that the advance deposit wagering licensee is under investigation by another state or federal governmental agency, the advance deposit wagering licensee's license has been suspended in another state, or the advance deposit wagering licensee's license is in revocation proceedings in another state. The organization licensee's provision of their live signal to an advance deposit wagering licensee under this subsection (g) pertains to wagers placed from within Illinois. Advance deposit wagering licensees may place advance deposit wagering terminals at wagering facilities as a convenience to customers. The advance deposit wagering licensee shall not charge or collect any fee from purses for the placement of the advance deposit wagering terminals. The costs and expenses of the host track and non-host licensees associated with interstate simulcast wagering, other than the interstate commission fee, shall be borne by the host track and all non-host licensees incurring these costs. The interstate commission fee shall not exceed 5% of Illinois handle on the interstate simulcast race or races without prior approval of the Board. The Board shall promulgate rules under which it may permit interstate commission fees in excess of 5%. The interstate commission fee and other fees charged by the sending racetrack, including, but not limited to, satellite decoder fees, shall be uniformly applied to the host track and all non-host licensees.

Notwithstanding any other provision of this Act, through December 31, 2018, an organization licensee, with the consent of the horsemen association representing the largest number of owners, trainers, jockeys, or standardbred drivers who race horses at that organization licensee's racing meeting, may maintain a system whereby advance deposit wagering may take place or an organization licensee, with the consent of the horsemen association representing the largest number of owners, trainers, jockeys, or standardbred drivers who race horses at that organization licensee's racing meeting, may contract with another person to carry out a system of advance deposit wagering. Such consent may not be unreasonably withheld. Only with respect to an appeal to the Board that consent for an organization licensee that maintains its own advance deposit wagering system is being unreasonably withheld, the Board shall issue a final order within 30 days after initiation of the appeal, and the organization licensee's advance deposit wagering system may remain operational during that 30-day period. The actions of any organization licensee who conducts advance deposit wagering or any person who has a contract with an organization licensee to conduct advance deposit wagering who conducts advance deposit wagering on or after January 1, 2013 and prior to June 7, 2013 (the effective date of Public Act 98-18) this amendatory Act of the 98th General Assembly taken in reliance on the changes made to this subsection (g) by Public Act 98-18 this amendatory Act of the 98th General Assembly are hereby validated, provided payment of all applicable pari-mutuel taxes are remitted to the Board. All advance deposit wagers placed from within Illinois must be placed through a Board-approved advance deposit wagering licensee; no other entity may accept an advance deposit wager from a person within Illinois. All advance deposit wagering is subject to any rules adopted by the Board. The Board may adopt rules necessary to regulate advance deposit wagering through the use of emergency rulemaking in accordance with Section 5-45 of the Illinois Administrative Procedure Act. The General Assembly finds that the adoption of rules to regulate advance deposit wagering is deemed an emergency and necessary for the public interest, safety, and welfare. An advance deposit wagering licensee may retain all moneys as agreed to by contract with an organization licensee. Any moneys retained by the organization licensee from advance deposit wagering, not including moneys retained by the advance deposit wagering licensee, shall be paid 50% to the organization licensee's purse account and 50% to the organization licensee. With the exception of any organization licensee that is owned by a publicly traded company that is incorporated in a state other than Illinois and advance deposit wagering licensees under contract with such organization licensees, organization licensees that maintain advance deposit wagering systems and advance deposit wagering licensees that contract with organization licensees shall provide sufficiently detailed monthly accountings to the horsemen association representing the largest number of owners, trainers, jockeys, or standardbred drivers who race horses at that organization licensee's racing meeting so that the horsemen association, as an interested party, can confirm the accuracy of the amounts paid to the purse account at the horsemen association's affiliated organization licensee from advance deposit wagering. If more than one breed races at the same race track facility, then the 50% of the moneys to be paid to an organization licensee's purse account shall be allocated among all organization licensees' purse accounts operating at that race track facility proportionately based on the actual number of host days that the Board grants to that breed at that race track facility in the current calendar year. To the extent any fees from advance deposit wagering conducted in Illinois for wagers in Illinois or other states have been placed in escrow or otherwise withheld from wagers pending a determination of the legality of advance deposit wagering, no action shall be brought to declare such wagers or the disbursement of any fees previously escrowed illegal.

Any contract between an advance deposit wagering licensee and an organization licensee signed after the effective date of this amendatory Act of the 100th General Assembly must include language to split commissions, breakage, and minus pools with a maximum of 50% to be retained by the advance deposit wagering licensee. Contracts between an advance deposit wagering licensee and an organization licensee existing on the effective date of this amendatory Act of the 100th General Assembly or extensions of those contracts are not affected by this paragraph.

(1) Between the hours of 6:30 a.m. and 6:30 p.m. an inter-track intertrack wagering licensee other than the host track may supplement the host track simulcast program with additional simulcast races or race programs, provided that between January 1 and the third Friday in February of any year, inclusive, if no live thoroughbred racing is occurring in Illinois during this period, only thoroughbred races may be used for supplemental interstate simulcast purposes. The Board shall withhold approval for a supplemental interstate simulcast only if it finds that the simulcast is clearly adverse to the integrity of racing. A supplemental interstate simulcast may be transmitted from an inter-track intertrack wagering licensee to its affiliated non-host licensees. The interstate commission fee for a supplemental interstate simulcast shall be paid by the non-host licensee and its affiliated non-host licensees receiving the simulcast.

(2) Between the hours of 6:30 p.m. and 6:30 a.m. an inter-track intertrack wagering licensee other than the host track may receive supplemental interstate simulcasts only with the consent of the host track, except when the Board finds that the simulcast is clearly adverse to the integrity of racing. Consent granted under this paragraph (2) to any inter-track intertrack wagering licensee shall be deemed consent to all non-host licensees. The interstate commission fee for the supplemental interstate simulcast shall be paid by all participating non-host licensees.

(3) Each licensee conducting interstate simulcast wagering may retain, subject to the payment of all applicable taxes and the purses, an amount not to exceed 17% of all money wagered. If any licensee conducts the pari-mutuel system wagering on races conducted at racetracks in another state or country, each such race or race program shall be considered a separate racing day for the purpose of determining the daily handle and computing the privilege tax of that daily handle as provided in subsection (a) of Section 27. Until January 1, 2000, from the sums permitted to be retained pursuant to this subsection, each inter-track intertrack wagering location licensee shall pay 1% of the pari-mutuel handle wagered on simulcast wagering to the Horse Racing Tax Allocation Fund, subject to the provisions of subparagraph (B) of paragraph (11) of subsection (h) of Section 26 of this Act.

(4) A licensee who receives an interstate simulcast may combine its gross or net pools with pools at the sending racetracks pursuant to rules established by the Board. All licensees combining their gross pools at a sending racetrack shall adopt the take-out percentages of the sending racetrack. A licensee may also establish a separate pool and takeout structure for wagering purposes on races conducted at race tracks outside of the State of Illinois. The licensee may permit pari-mutuel wagers placed in other states or countries to be combined with its gross or net wagering pools or other wagering pools.

(5) After the payment of the interstate commission fee (except for the interstate commission fee on a supplemental interstate simulcast, which shall be paid by the host track and by each non-host licensee through the host-track) and all applicable State and local taxes, except as provided in subsection (g) of Section 27 of this Act, the remainder of moneys retained from simulcast wagering pursuant to this subsection (g), and Section 26.2 shall be divided as follows:

(A) For interstate simulcast wagers made at a host track, 50% to the host track and 50% to purses at the host track.

(B) For wagers placed on interstate simulcast races, supplemental simulcasts as defined in subparagraphs (1) and (2), and separately pooled races conducted outside of the State of Illinois made at a non-host licensee, 25% to the host track, 25% to the non-host licensee, and 50% to the purses at the host track.

(6) Notwithstanding any provision in this Act to the contrary, non-host licensees who derive their licenses from a track located in a county with a population in excess of 230,000 and that borders the Mississippi River may receive supplemental interstate simulcast races at all times subject to Board approval, which shall be withheld only upon a finding that a supplemental interstate simulcast is clearly adverse to the integrity of racing.

(7) Notwithstanding any provision of this Act to the contrary, after payment of all applicable State and local taxes and interstate commission fees, non-host licensees who derive their licenses from a track located in a county with a population in excess of 230,000 and that borders the Mississippi River shall retain 50% of the retention from interstate simulcast wagers and shall pay 50% to purses at the track from which the non-host licensee derives its license as follows:

(A) Between January 1 and the third Friday in February, inclusive, if no live thoroughbred racing is occurring in Illinois during this period, when the interstate simulcast is a standardbred race, the purse share to its standardbred purse account;

(B) Between January 1 and the third Friday in February, inclusive, if no live thoroughbred racing is occurring in Illinois during this period, and the interstate simulcast is a thoroughbred race, the purse share to its interstate simulcast purse pool to be distributed under paragraph (10) of this subsection (g);

(C) Between January 1 and the third Friday in February, inclusive, if live thoroughbred racing is occurring in Illinois, between 6:30 a.m. and 6:30 p.m. the purse share from wagers made during this time period to its thoroughbred purse account and between 6:30 p.m. and 6:30 a.m. the purse share from wagers made during this time period to its standardbred purse accounts;

(D) Between the third Saturday in February and December 31, when the interstate simulcast occurs between the hours of 6:30 a.m. and 6:30 p.m., the purse share to its thoroughbred purse account;

(E) Between the third Saturday in February and December 31, when the interstate simulcast occurs between the hours of 6:30 p.m. and 6:30 a.m., the purse share to its standardbred purse account.

(7.1) Notwithstanding any other provision of this Act to the contrary, if no standardbred racing is conducted at a racetrack located in Madison County during any calendar year beginning on or after January 1, 2002, all moneys derived by that racetrack from simulcast wagering and inter-track wagering that (1) are to be used for purses and (2) are generated between the hours of 6:30 p.m. and 6:30 a.m. during that calendar year shall be paid as follows:

(A) If the licensee that conducts horse racing at that racetrack requests from the Board at least as many racing dates as were conducted in calendar year 2000, 80% shall be paid to its thoroughbred purse account; and

(B) Twenty percent shall be deposited into the Illinois Colt Stakes Purse Distribution Fund and shall be paid to purses for standardbred races for Illinois conceived and foaled horses conducted at any county fairgrounds. The moneys deposited into the Fund pursuant to this subparagraph (B) shall be deposited within 2 weeks after the day they were generated, shall be in addition to and not in lieu of any other moneys paid to standardbred purses under this Act, and shall not be commingled with other moneys paid into that Fund. The moneys deposited pursuant to this subparagraph (B) shall be allocated as provided by the Department of Agriculture, with the advice and assistance of the Illinois Standardbred Breeders Fund Advisory Board.

(7.2) Notwithstanding any other provision of this Act to the contrary, if no thoroughbred racing is conducted at a racetrack located in Madison County during any calendar year beginning on or after January 1, 2002, all moneys derived by that racetrack from simulcast wagering and inter-track wagering that (1) are to be used for purses and (2) are generated between the hours of 6:30 a.m. and 6:30 p.m. during that calendar year shall be deposited as follows:

(A) If the licensee that conducts horse racing at that racetrack requests from the Board at least as many racing dates as were conducted in calendar year 2000, 80% shall be deposited into its standardbred purse account; and

(B) Twenty percent shall be deposited into the Illinois Colt Stakes Purse Distribution Fund. Moneys deposited into the Illinois Colt Stakes Purse Distribution Fund pursuant to this subparagraph (B) shall be paid to Illinois conceived and foaled thoroughbred breeders' programs and to thoroughbred purses for races conducted at any county fairgrounds for Illinois conceived and foaled horses at the discretion of the Department of Agriculture, with the advice and assistance of the Illinois Thoroughbred Breeders Fund Advisory Board. The moneys deposited into the Illinois Colt Stakes Purse Distribution Fund pursuant to this subparagraph (B) shall be deposited within 2 weeks after the day they were generated, shall be in addition to and not in lieu of any other moneys paid to thoroughbred purses under this Act, and shall not be commingled with other moneys deposited into that Fund.

(7.3) If no live standardbred racing is conducted at a racetrack located in Madison County in calendar year 2000 or 2001, an organization licensee who is licensed to conduct horse racing at that racetrack shall, before January 1, 2002, pay all moneys derived from simulcast wagering and inter-track wagering in calendar years 2000 and 2001 and paid into the licensee's standardbred purse account as follows:

(A) Eighty percent to that licensee's thoroughbred purse account to be used for thoroughbred purses; and

(B) Twenty percent to the Illinois Colt Stakes Purse Distribution Fund.

Failure to make the payment to the Illinois Colt Stakes Purse Distribution Fund before January 1, 2002 shall result in the immediate revocation of the licensee's organization license, inter-track wagering license, and inter-track wagering location license.

Moneys paid into the Illinois Colt Stakes Purse Distribution Fund pursuant to this paragraph (7.3) shall be paid to purses for standardbred races for Illinois conceived and foaled horses conducted at any county fairgrounds. Moneys paid into the Illinois Colt Stakes Purse Distribution Fund pursuant to this paragraph (7.3) shall be used as determined by the Department of Agriculture, with the advice and assistance of the Illinois Standardbred Breeders Fund Advisory Board, shall be in addition to and not in lieu of any other moneys paid to standardbred purses under this Act, and shall not be commingled with any other moneys paid into that Fund.

(7.4) If live standardbred racing is conducted at a racetrack located in Madison County at any time in calendar year 2001 before the payment required under paragraph (7.3) has been made, the organization licensee who is licensed to conduct racing at that racetrack shall pay all moneys derived by that racetrack from simulcast wagering and inter-track wagering during calendar years 2000 and 2001 that (1) are to be used for purses and (2) are generated between the hours of 6:30 p.m. and 6:30 a.m. during 2000 or 2001 to the standardbred purse account at that racetrack to be used for standardbred purses.

(8) Notwithstanding any provision in this Act to the contrary, an organization licensee from a track located in a county with a population in excess of 230,000 and that borders the Mississippi River and its affiliated non-host licensees shall not be entitled to share in any retention generated on racing, inter-track wagering, or simulcast wagering at any other Illinois wagering facility.

(8.1) Notwithstanding any provisions in this Act to the contrary, if 2 organization licensees are conducting standardbred race meetings concurrently between the hours of 6:30 p.m. and 6:30 a.m., after payment of all applicable State and local taxes and interstate commission fees, the remainder of the amount retained from simulcast wagering otherwise attributable to the host track and to host track purses shall be split daily between the 2 organization licensees and the purses at the tracks of the 2 organization licensees, respectively, based on each organization licensee's share of the total live handle for that day, provided that this provision shall not apply to any non-host licensee that derives its license from a track located in a county with a population in excess of 230,000 and that borders the Mississippi River.

(9) (Blank).

(10) (Blank).

(11) (Blank).

(12) The Board shall have authority to compel all host tracks to receive the simulcast of any or all races conducted at the Springfield or DuQuoin State fairgrounds and include all such races as part of their simulcast programs.

(13) Notwithstanding any other provision of this Act, in the event that the total Illinois pari-mutuel handle on Illinois horse races at all wagering facilities in any calendar year is less than 75% of the total Illinois pari-mutuel handle on Illinois horse races at all such wagering facilities for calendar year 1994, then each wagering facility that has an annual total Illinois pari-mutuel handle on Illinois horse races that is less than 75% of the total Illinois pari-mutuel handle on Illinois horse races at such wagering facility for calendar year 1994, shall be permitted to receive, from any amount otherwise payable to the purse account at the race track with which the wagering facility is affiliated in the succeeding calendar year, an amount equal to 2% of the differential in total Illinois pari-mutuel handle on Illinois horse races at the wagering facility between that calendar year in question and 1994 provided, however, that a wagering facility shall not be entitled to any such payment until the Board certifies in writing to the wagering facility the amount to which the wagering facility is entitled and a schedule for payment of the amount to the wagering facility, based on: (i) the racing dates awarded to the race track affiliated with the wagering facility during the succeeding year; (ii) the sums available or anticipated to be available in the purse account of the race track affiliated with the wagering facility for purses during the succeeding year; and (iii) the need to ensure reasonable purse levels during the payment period. The Board's certification shall be provided no later than January 31 of the succeeding year. In the event a wagering facility entitled to a payment under this paragraph (13) is affiliated with a race track that maintains purse accounts for both standardbred and thoroughbred racing, the amount to be paid to the wagering facility shall be divided between each purse account pro rata, based on the amount of Illinois handle on Illinois standardbred and thoroughbred racing respectively at the wagering facility during the previous calendar year. Annually, the General Assembly shall appropriate sufficient funds from the General Revenue Fund to the Department of Agriculture for payment into the thoroughbred and standardbred horse racing purse accounts at Illinois pari-mutuel tracks. The amount paid to each purse account shall be the amount certified by the Illinois Racing Board in January to be transferred from each account to each eligible racing facility in accordance with the provisions of this Section.

(h) The Board may approve and license the conduct of inter-track wagering and simulcast wagering by inter-track wagering licensees and inter-track wagering location licensees subject to the following terms and conditions:

(1) Any person licensed to conduct a race meeting (i) at a track where 60 or more days of racing were conducted during the immediately preceding calendar year or where over the 5 immediately preceding calendar years an average of 30 or more days of racing were conducted annually may be issued an inter-track wagering license; (ii) at a track located in a county that is bounded by the Mississippi River, which has a population of less than 150,000 according to the 1990 decennial census, and an average of at least 60 days of racing per year between 1985 and 1993 may be issued an inter-track wagering license; or (iii) at a track located in Madison County that conducted at least 100 days of live racing during the immediately preceding calendar year may be issued an inter-track wagering license, unless a lesser schedule of live racing is the result of (A) weather, unsafe track conditions, or other acts of God; (B) an agreement between the organization licensee and the associations representing the largest number of owners, trainers, jockeys, or standardbred drivers who race horses at that organization licensee's racing meeting; or (C) a finding by the Board of extraordinary circumstances and that it was in the best interest of the public and the sport to conduct fewer than 100 days of live racing. Any such person having operating control of the racing facility may receive inter-track wagering location licenses. An eligible race track located in a county that has a population of more than 230,000 and that is bounded by the Mississippi River may establish up to 9 inter-track wagering locations, and an eligible race track located in Stickney Township in Cook County may establish up to 16 inter-track wagering locations, and an eligible race track located in Palatine Township in Cook County may establish up to 18 inter-track wagering locations. An application for said license shall be filed with the Board prior to such dates as may be fixed by the Board. With an application for an inter-track wagering location license there shall be delivered to the Board a certified check or bank draft payable to the order of the Board for an amount equal to $500. The application shall be on forms prescribed and furnished by the Board. The application shall comply with all other rules, regulations and conditions imposed by the Board in connection therewith.

(2) The Board shall examine the applications with respect to their conformity with this Act and the rules and regulations imposed by the Board. If found to be in compliance with the Act and rules and regulations of the Board, the Board may then issue a license to conduct inter-track wagering and simulcast wagering to such applicant. All such applications shall be acted upon by the Board at a meeting to be held on such date as may be fixed by the Board.

(3) In granting licenses to conduct inter-track wagering and simulcast wagering, the Board shall give due consideration to the best interests of the public, of horse racing, and of maximizing revenue to the State.

(4) Prior to the issuance of a license to conduct inter-track wagering and simulcast wagering, the applicant shall file with the Board a bond payable to the State of Illinois in the sum of $50,000, executed by the applicant and a surety company or companies authorized to do business in this State, and conditioned upon (i) the payment by the licensee of all taxes due under Section 27 or 27.1 and any other monies due and payable under this Act, and (ii) distribution by the licensee, upon presentation of the winning ticket or tickets, of all sums payable to the patrons of pari-mutuel pools.

(5) Each license to conduct inter-track wagering and simulcast wagering shall specify the person to whom it is issued, the dates on which such wagering is permitted, and the track or location where the wagering is to be conducted.

(6) All wagering under such license is subject to this Act and to the rules and regulations from time to time prescribed by the Board, and every such license issued by the Board shall contain a recital to that effect.

(7) An inter-track wagering licensee or inter-track wagering location licensee may accept wagers at the track or location where it is licensed, or as otherwise provided under this Act.

(8) Inter-track wagering or simulcast wagering shall not be conducted at any track less than 5 miles from a track at which a racing meeting is in progress.

(8.1) Inter-track wagering location licensees who derive their licenses from a particular organization licensee shall conduct inter-track wagering and simulcast wagering only at locations that are within 160 miles of that race track where the particular organization licensee is licensed to conduct racing. However, inter-track wagering and simulcast wagering shall not be conducted by those licensees at any location within 5 miles of any race track at which a horse race meeting has been licensed in the current year, unless the person having operating control of such race track has given its written consent to such inter-track wagering location licensees, which consent must be filed with the Board at or prior to the time application is made. In the case of any inter-track wagering location licensee initially licensed after December 31, 2013, inter-track wagering and simulcast wagering shall not be conducted by those inter-track wagering location licensees that are located outside the City of Chicago at any location within 8 miles of any race track at which a horse race meeting has been licensed in the current year, unless the person having operating control of such race track has given its written consent to such inter-track wagering location licensees, which consent must be filed with the Board at or prior to the time application is made.

(8.2) Inter-track wagering or simulcast wagering shall not be conducted by an inter-track wagering location licensee at any location within 500 feet of an existing church or existing school, nor within 500 feet of the residences of more than 50 registered voters without receiving written permission from a majority of the registered voters at such residences. Such written permission statements shall be filed with the Board. The distance of 500 feet shall be measured to the nearest part of any building used for worship services, education programs, residential purposes, or conducting inter-track wagering by an inter-track wagering location licensee, and not to property boundaries. However, inter-track wagering or simulcast wagering may be conducted at a site within 500 feet of a church, school or residences of 50 or more registered voters if such church, school or residences have been erected or established, or such voters have been registered, after the Board issues the original inter-track wagering location license at the site in question. Inter-track wagering location licensees may conduct inter-track wagering and simulcast wagering only in areas that are zoned for commercial or manufacturing purposes or in areas for which a special use has been approved by the local zoning authority. However, no license to conduct inter-track wagering and simulcast wagering shall be granted by the Board with respect to any inter-track wagering location within the jurisdiction of any local zoning authority which has, by ordinance or by resolution, prohibited the establishment of an inter-track wagering location within its jurisdiction. However, inter-track wagering and simulcast wagering may be conducted at a site if such ordinance or resolution is enacted after the Board licenses the original inter-track wagering location licensee for the site in question.

(9) (Blank).

(10) An inter-track wagering licensee or an inter-track wagering location licensee may retain, subject to the payment of the privilege taxes and the purses, an amount not to exceed 17% of all money wagered. Each program of racing conducted by each inter-track wagering licensee or inter-track wagering location licensee shall be considered a separate racing day for the purpose of determining the daily handle and computing the privilege tax or pari-mutuel tax on such daily handle as provided in Section 27.

(10.1) Except as provided in subsection (g) of Section 27 of this Act, inter-track wagering location licensees shall pay 1% of the pari-mutuel handle at each location to the municipality in which such location is situated and 1% of the pari-mutuel handle at each location to the county in which such location is situated. In the event that an inter-track wagering location licensee is situated in an unincorporated area of a county, such licensee shall pay 2% of the pari-mutuel handle from such location to such county.

(10.2) Notwithstanding any other provision of this Act, with respect to inter-track intertrack wagering at a race track located in a county that has a population of more than 230,000 and that is bounded by the Mississippi River ("the first race track"), or at a facility operated by an inter-track wagering licensee or inter-track wagering location licensee that derives its license from the organization licensee that operates the first race track, on races conducted at the first race track or on races conducted at another Illinois race track and simultaneously televised to the first race track or to a facility operated by an inter-track wagering licensee or inter-track wagering location licensee that derives its license from the organization licensee that operates the first race track, those moneys shall be allocated as follows:

(A) That portion of all moneys wagered on standardbred racing that is required under this Act to be paid to purses shall be paid to purses for standardbred races.

(B) That portion of all moneys wagered on thoroughbred racing that is required under this Act to be paid to purses shall be paid to purses for thoroughbred races.

(11) (A) After payment of the privilege or pari-mutuel tax, any other applicable taxes, and the costs and expenses in connection with the gathering, transmission, and dissemination of all data necessary to the conduct of inter-track wagering, the remainder of the monies retained under either Section 26 or Section 26.2 of this Act by the inter-track wagering licensee on inter-track wagering shall be allocated with 50% to be split between the 2 participating licensees and 50% to purses, except that an inter-track intertrack wagering licensee that derives its license from a track located in a county with a population in excess of 230,000 and that borders the Mississippi River shall not divide any remaining retention with the Illinois organization licensee that provides the race or races, and an inter-track intertrack wagering licensee that accepts wagers on races conducted by an organization licensee that conducts a race meet in a county with a population in excess of 230,000 and that borders the Mississippi River shall not divide any remaining retention with that organization licensee.

(B) From the sums permitted to be retained pursuant to this Act each inter-track wagering location licensee shall pay (i) the privilege or pari-mutuel tax to the State; (ii) 4.75% of the pari-mutuel handle on inter-track intertrack wagering at such location on races as purses, except that an inter-track intertrack wagering location licensee that derives its license from a track located in a county with a population in excess of 230,000 and that borders the Mississippi River shall retain all purse moneys for its own purse account consistent with distribution set forth in this subsection (h), and inter-track intertrack wagering location licensees that accept wagers on races conducted by an organization licensee located in a county with a population in excess of 230,000 and that borders the Mississippi River shall distribute all purse moneys to purses at the operating host track; (iii) until January 1, 2000, except as provided in subsection (g) of Section 27 of this Act, 1% of the pari-mutuel handle wagered on inter-track wagering and simulcast wagering at each inter-track wagering location licensee facility to the Horse Racing Tax Allocation Fund, provided that, to the extent the total amount collected and distributed to the Horse Racing Tax Allocation Fund under this subsection (h) during any calendar year exceeds the amount collected and distributed to the Horse Racing Tax Allocation Fund during calendar year 1994, that excess amount shall be redistributed (I) to all inter-track wagering location licensees, based on each licensee's pro-rata share of the total handle from inter-track wagering and simulcast wagering for all inter-track wagering location licensees during the calendar year in which this provision is applicable; then (II) the amounts redistributed to each inter-track wagering location licensee as described in subpart (I) shall be further redistributed as provided in subparagraph (B) of paragraph (5) of subsection (g) of this Section 26 provided first, that the shares of those amounts, which are to be redistributed to the host track or to purses at the host track under subparagraph (B) of paragraph (5) of subsection (g) of this Section 26 shall be redistributed based on each host track's pro rata share of the total inter-track wagering and simulcast wagering handle at all host tracks during the calendar year in question, and second, that any amounts redistributed as described in part (I) to an inter-track wagering location licensee that accepts wagers on races conducted by an organization licensee that conducts a race meet in a county with a population in excess of 230,000 and that borders the Mississippi River shall be further redistributed as provided in subparagraphs (D) and (E) of paragraph (7) of subsection (g) of this Section 26, with the portion of that further redistribution allocated to purses at that organization licensee to be divided between standardbred purses and thoroughbred purses based on the amounts otherwise allocated to purses at that organization licensee during the calendar year in question; and (iv) 8% of the pari-mutuel handle on inter-track wagering wagered at such location to satisfy all costs and expenses of conducting its wagering. The remainder of the monies retained by the inter-track wagering location licensee shall be allocated 40% to the location licensee and 60% to the organization licensee which provides the Illinois races to the location, except that an inter-track intertrack wagering location licensee that derives its license from a track located in a county with a population in excess of 230,000 and that borders the Mississippi River shall not divide any remaining retention with the organization licensee that provides the race or races and an inter-track intertrack wagering location licensee that accepts wagers on races conducted by an organization licensee that conducts a race meet in a county with a population in excess of 230,000 and that borders the Mississippi River shall not divide any remaining retention with the organization licensee. Notwithstanding the provisions of clauses (ii) and (iv) of this paragraph, in the case of the additional inter-track wagering location licenses authorized under paragraph (1) of this subsection (h) by Public Act 87-110 this amendatory Act of 1991, those licensees shall pay the following amounts as purses: during the first 12 months the licensee is in operation, 5.25% of the pari-mutuel handle wagered at the location on races; during the second 12 months, 5.25%; during the third 12 months, 5.75%; during the fourth 12 months, 6.25%; and during the fifth 12 months and thereafter, 6.75%. The following amounts shall be retained by the licensee to satisfy all costs and expenses of conducting its wagering: during the first 12 months the licensee is in operation, 8.25% of the pari-mutuel handle wagered at the location; during the second 12 months, 8.25%; during the third 12 months, 7.75%; during the fourth 12 months, 7.25%; and during the fifth 12 months and thereafter, 6.75%. For additional inter-track intertrack wagering location licensees authorized under Public Act 89-16 this amendatory Act of 1995, purses for the first 12 months the licensee is in operation shall be 5.75% of the pari-mutuel wagered at the location, purses for the second 12 months the licensee is in operation shall be 6.25%, and purses thereafter shall be 6.75%. For additional inter-track intertrack location licensees authorized under Public Act 89-16 this amendatory Act of 1995, the licensee shall be allowed to retain to satisfy all costs and expenses: 7.75% of the pari-mutuel handle wagered at the location during its first 12 months of operation, 7.25% during its second 12 months of operation, and 6.75% thereafter.

(C) There is hereby created the Horse Racing Tax Allocation Fund which shall remain in existence until December 31, 1999. Moneys remaining in the Fund after December 31, 1999 shall be paid into the General Revenue Fund. Until January 1, 2000, all monies paid into the Horse Racing Tax Allocation Fund pursuant to this paragraph (11) by inter-track wagering location licensees located in park districts of 500,000 population or less, or in a municipality that is not included within any park district but is included within a conservation district and is the county seat of a county that (i) is contiguous to the state of Indiana and (ii) has a 1990 population of 88,257 according to the United States Bureau of the Census, and operating on May 1, 1994 shall be allocated by appropriation as follows:

Two-sevenths to the Department of Agriculture. Fifty percent of this two-sevenths shall be used to promote the Illinois horse racing and breeding industry, and shall be distributed by the Department of Agriculture upon the advice of a 9-member committee appointed by the Governor consisting of the following members: the Director of Agriculture, who shall serve as chairman; 2 representatives of organization licensees conducting thoroughbred race meetings in this State, recommended by those licensees; 2 representatives of organization licensees conducting standardbred race meetings in this State, recommended by those licensees; a representative of the Illinois Thoroughbred Breeders and Owners Foundation, recommended by that Foundation; a representative of the Illinois Standardbred Owners and Breeders Association, recommended by that Association; a representative of the Horsemen's Benevolent and Protective Association or any successor organization thereto established in Illinois comprised of the largest number of owners and trainers, recommended by that Association or that successor organization; and a representative of the Illinois Harness Horsemen's Association, recommended by that Association. Committee members shall serve for terms of 2 years, commencing January 1 of each even-numbered year. If a representative of any of the above-named entities has not been recommended by January 1 of any even-numbered year, the Governor shall appoint a committee member to fill that position. Committee members shall receive no compensation for their services as members but shall be reimbursed for all actual and necessary expenses and disbursements incurred in the performance of their official duties. The remaining 50% of this two-sevenths shall be distributed to county fairs for premiums and rehabilitation as set forth in the Agricultural Fair Act;

Four-sevenths to park districts or municipalities that do not have a park district of 500,000 population or less for museum purposes (if an inter-track wagering location licensee is located in such a park district) or to conservation districts for museum purposes (if an inter-track wagering location licensee is located in a municipality that is not included within any park district but is included within a conservation district and is the county seat of a county that (i) is contiguous to the state of Indiana and (ii) has a 1990 population of 88,257 according to the United States Bureau of the Census, except that if the conservation district does not maintain a museum, the monies shall be allocated equally between the county and the municipality in which the inter-track wagering location licensee is located for general purposes) or to a municipal recreation board for park purposes (if an inter-track wagering location licensee is located in a municipality that is not included within any park district and park maintenance is the function of the municipal recreation board and the municipality has a 1990 population of 9,302 according to the United States Bureau of the Census); provided that the monies are distributed to each park district or conservation district or municipality that does not have a park district in an amount equal to four-sevenths of the amount collected by each inter-track wagering location licensee within the park district or conservation district or municipality for the Fund. Monies that were paid into the Horse Racing Tax Allocation Fund before August 9, 1991 (the effective date of Public Act 87-110) this amendatory Act of 1991 by an inter-track wagering location licensee located in a municipality that is not included within any park district but is included within a conservation district as provided in this paragraph shall, as soon as practicable after August 9, 1991 (the effective date of Public Act 87-110) this amendatory Act of 1991, be allocated and paid to that conservation district as provided in this paragraph. Any park district or municipality not maintaining a museum may deposit the monies in the corporate fund of the park district or municipality where the inter-track wagering location is located, to be used for general purposes; and

One-seventh to the Agricultural Premium Fund to be used for distribution to agricultural home economics extension councils in accordance with "An Act in relation to additional support and finances for the Agricultural and Home Economic Extension Councils in the several counties of this State and making an appropriation therefor", approved July 24, 1967.

Until January 1, 2000, all other monies paid into the Horse Racing Tax Allocation Fund pursuant to this paragraph (11) shall be allocated by appropriation as follows:

Two-sevenths to the Department of Agriculture. Fifty percent of this two-sevenths shall be used to promote the Illinois horse racing and breeding industry, and shall be distributed by the Department of Agriculture upon the advice of a 9-member committee appointed by the Governor consisting of the following members: the Director of Agriculture, who shall serve as chairman; 2 representatives of organization licensees conducting thoroughbred race meetings in this State, recommended by those licensees; 2 representatives of organization licensees conducting standardbred race meetings in this State, recommended by those licensees; a representative of the Illinois Thoroughbred Breeders and Owners Foundation, recommended by that Foundation; a representative of the Illinois Standardbred Owners and Breeders Association, recommended by that Association; a representative of the Horsemen's Benevolent and Protective Association or any successor organization thereto established in Illinois comprised of the largest number of owners and trainers, recommended by that Association or that successor organization; and a representative of the Illinois Harness Horsemen's Association, recommended by that Association. Committee members shall serve for terms of 2 years, commencing January 1 of each even-numbered year. If a representative of any of the above-named entities has not been recommended by January 1 of any even-numbered year, the Governor shall appoint a committee member to fill that position. Committee members shall receive no compensation for their services as members but shall be reimbursed for all actual and necessary expenses and disbursements incurred in the performance of their official duties. The remaining 50% of this two-sevenths shall be distributed to county fairs for premiums and rehabilitation as set forth in the Agricultural Fair Act;

Four-sevenths to museums and aquariums located in park districts of over 500,000 population; provided that the monies are distributed in accordance with the previous year's distribution of the maintenance tax for such museums and aquariums as provided in Section 2 of the Park District Aquarium and Museum Act; and

One-seventh to the Agricultural Premium Fund to be used for distribution to agricultural home economics extension councils in accordance with "An Act in relation to additional support and finances for the Agricultural and Home Economic Extension Councils in the several counties of this State and making an appropriation therefor", approved July 24, 1967. This subparagraph (C) shall be inoperative and of no force and effect on and after January 1, 2000.

(D) Except as provided in paragraph (11) of this subsection (h), with respect to purse allocation from inter-track intertrack wagering, the monies so retained shall be divided as follows:

(i) If the inter-track wagering licensee, except an inter-track intertrack wagering licensee that derives its license from an organization licensee located in a county with a population in excess of 230,000 and bounded by the Mississippi River, is not conducting its own race meeting during the same dates, then the entire purse allocation shall be to purses at the track where the races wagered on are being conducted.

(ii) If the inter-track wagering licensee, except an inter-track intertrack wagering licensee that derives its license from an organization licensee located in a county with a population in excess of 230,000 and bounded by the Mississippi River, is also conducting its own race meeting during the same dates, then the purse allocation shall be as follows: 50% to purses at the track where the races wagered on are being conducted; 50% to purses at the track where the inter-track wagering licensee is accepting such wagers.

(iii) If the inter-track wagering is being conducted by an inter-track wagering location licensee, except an inter-track intertrack wagering location licensee that derives its license from an organization licensee located in a county with a population in excess of 230,000 and bounded by the Mississippi River, the entire purse allocation for Illinois races shall be to purses at the track where the race meeting being wagered on is being held.

(12) The Board shall have all powers necessary and proper to fully supervise and control the conduct of inter-track wagering and simulcast wagering by inter-track wagering licensees and inter-track wagering location licensees, including, but not limited to the following:

(A) The Board is vested with power to promulgate reasonable rules and regulations for the purpose of administering the conduct of this wagering and to prescribe reasonable rules, regulations and conditions under which such wagering shall be held and conducted. Such rules and regulations are to provide for the prevention of practices detrimental to the public interest and for the best interests of said wagering and to impose penalties for violations thereof.

(B) The Board, and any person or persons to whom it delegates this power, is vested with the power to enter the facilities of any licensee to determine whether there has been compliance with the provisions of this Act and the rules and regulations relating to the conduct of such wagering.

(C) The Board, and any person or persons to whom it delegates this power, may eject or exclude from any licensee's facilities, any person whose conduct or reputation is such that his presence on such premises may, in the opinion of the Board, call into the question the honesty and integrity of, or interfere with the orderly conduct of such wagering; provided, however, that no person shall be excluded or ejected from such premises solely on the grounds of race, color, creed, national origin, ancestry, or sex.

(D) (Blank).

(E) The Board is vested with the power to appoint delegates to execute any of the powers granted to it under this Section for the purpose of administering this wagering and any rules and regulations promulgated in accordance with this Act.

(F) The Board shall name and appoint a State director of this wagering who shall be a representative of the Board and whose duty it shall be to supervise the conduct of inter-track wagering as may be provided for by the rules and regulations of the Board; such rules and regulation shall specify the method of appointment and the Director's powers, authority and duties.

(G) The Board is vested with the power to impose civil penalties of up to $5,000 against individuals and up to $10,000 against licensees for each violation of any provision of this Act relating to the conduct of this wagering, any rules adopted by the Board, any order of the Board or any other action which in the Board's discretion, is a detriment or impediment to such wagering.

(13) The Department of Agriculture may enter into agreements with licensees authorizing such licensees to conduct inter-track wagering on races to be held at the licensed race meetings conducted by the Department of Agriculture. Such agreement shall specify the races of the Department of Agriculture's licensed race meeting upon which the licensees will conduct wagering. In the event that a licensee conducts inter-track pari-mutuel wagering on races from the Illinois State Fair or DuQuoin State Fair which are in addition to the licensee's previously approved racing program, those races shall be considered a separate racing day for the purpose of determining the daily handle and computing the privilege or pari-mutuel tax on that daily handle as provided in Sections 27 and 27.1. Such agreements shall be approved by the Board before such wagering may be conducted. In determining whether to grant approval, the Board shall give due consideration to the best interests of the public and of horse racing. The provisions of paragraphs (1), (8), (8.1), and (8.2) of subsection (h) of this Section which are not specified in this paragraph (13) shall not apply to licensed race meetings conducted by the Department of Agriculture at the Illinois State Fair in Sangamon County or the DuQuoin State Fair in Perry County, or to any wagering conducted on those race meetings.

(14) An inter-track wagering location license authorized by the Board in 2016 that is owned and operated by a race track in Rock Island County shall be transferred to a commonly owned race track in Cook County on August 12, 2016 (the effective date of Public Act 99-757) this amendatory Act of the 99th General Assembly. The licensee shall retain its status in relation to purse distribution under paragraph (11) of this subsection (h) following the transfer to the new entity. The pari-mutuel tax credit under Section 32.1 shall not be applied toward any pari-mutuel tax obligation of the inter-track wagering location licensee of the license that is transferred under this paragraph (14).

(i) Notwithstanding the other provisions of this Act, the conduct of wagering at wagering facilities is authorized on all days, except as limited by subsection (b) of Section 19 of this Act.

(Source: P.A. 98-18, eff. 6-7-13; 98-624, eff. 1-29-14; 98-968, eff. 8-15-14; 99-756, eff. 8-12-16; 99-757, eff. 8-12-16; revised 9-14-16.)

Section 910. The Illinois Public Aid Code is amended by changing Section 10-17.15 as follows:

(305 ILCS 5/10-17.15)

Sec. 10-17.15. Certification of information to State gaming licensees.

(a) For purposes of this Section, "State gaming licensee" means, as applicable, an organization licensee or advance deposit wagering licensee licensed under the Illinois Horse Racing Act of 1975, an owners licensee licensed under the Riverboat Gambling Act, or a licensee that operates, under any law of this State, one or more facilities or gaming locations at which lawful gambling is authorized and licensed as provided in the Riverboat Gambling Act, or a fantasy sports contest operator licensed under the Fantasy Sports Contest Act.

(b) The Department may provide, by rule, for certification to any State gaming licensee of past due child support owed by a responsible relative under a support order entered by a court or administrative body of this or any other State on behalf of a resident or non-resident receiving child support services under this Article in accordance with the requirements of Title IV-D, Part D, of the Social Security Act. The State gaming licensee shall have the ability to withhold from winnings required to be reported to the Internal Revenue Service on Form W-2G, or, in the case of a fantasy sports contest operator, the ability to withhold from individual winnings of $600 or more that are subject to reporting to the Internal Revenue Service on Form 1099, up to the full amount of winnings necessary to pay the winner's past due child support. The rule shall provide for notice to and an opportunity to be heard by each responsible relative affected and any final administrative decision rendered by the Department shall be reviewed only under and in accordance with the Administrative Review Law.

(c) For withholding of winnings, the State gaming licensee shall be entitled to an administrative fee not to exceed the lesser of 4% of the total amount of cash winnings paid to the gambling winner or $150.

(d) In no event may the total amount withheld from the cash payout, including the administrative fee, exceed the total cash winnings claimed by the obligor. If the cash payout claimed is greater than the amount sufficient to satisfy the obligor's delinquent child support payments, the State gaming licensee shall pay the obligor the remaining balance of the payout, less the administrative fee authorized by subsection (c) of this Section, at the time it is claimed.

(e) A State gaming licensee who in good faith complies with the requirements of this Section shall not be liable to the gaming winner or any other individual or entity.

(Source: P.A. 98-318, eff. 8-12-13.)

Section 915. The Criminal Code of 2012 is amended by changing Section 28-1 as follows:

(720 ILCS 5/28-1) (from Ch. 38, par. 28-1)

Sec. 28-1. Gambling.

(a) A person commits gambling when he or she:

(1) knowingly plays a game of chance or skill for money or other thing of value, unless excepted in subsection (b) of this Section;

(2) knowingly makes a wager upon the result of any game, contest, or any political nomination, appointment or election;

(3) knowingly operates, keeps, owns, uses, purchases, exhibits, rents, sells, bargains for the sale or lease of, manufactures or distributes any gambling device;

(4) contracts to have or give himself or herself or another the option to buy or sell, or contracts to buy or sell, at a future time, any grain or other commodity whatsoever, or any stock or security of any company, where it is at the time of making such contract intended by both parties thereto that the contract to buy or sell, or the option, whenever exercised, or the contract resulting therefrom, shall be settled, not by the receipt or delivery of such property, but by the payment only of differences in prices thereof; however, the issuance, purchase, sale, exercise, endorsement or guarantee, by or through a person registered with the Secretary of State pursuant to Section 8 of the Illinois Securities Law of 1953, or by or through a person exempt from such registration under said Section 8, of a put, call, or other option to buy or sell securities which have been registered with the Secretary of State or which are exempt from such registration under Section 3 of the Illinois Securities Law of 1953 is not gambling within the meaning of this paragraph (4);

(5) knowingly owns or possesses any book, instrument or apparatus by means of which bets or wagers have been, or are, recorded or registered, or knowingly possesses any money which he has received in the course of a bet or wager;

(6) knowingly sells pools upon the result of any game or contest of skill or chance, political nomination, appointment or election;

(7) knowingly sets up or promotes any lottery or sells, offers to sell or transfers any ticket or share for any lottery;

(8) knowingly sets up or promotes any policy game or sells, offers to sell or knowingly possesses or transfers any policy ticket, slip, record, document or other similar device;

(9) knowingly drafts, prints or publishes any lottery ticket or share, or any policy ticket, slip, record, document or similar device, except for such activity related to lotteries, bingo games and raffles authorized by and conducted in accordance with the laws of Illinois or any other state or foreign government;

(10) knowingly advertises any lottery or policy game, except for such activity related to lotteries, bingo games and raffles authorized by and conducted in accordance with the laws of Illinois or any other state;

(11) knowingly transmits information as to wagers, betting odds, or changes in betting odds by telephone, telegraph, radio, semaphore or similar means; or knowingly installs or maintains equipment for the transmission or receipt of such information; except that nothing in this subdivision (11) prohibits transmission or receipt of such information for use in news reporting of sporting events or contests; or

(12) knowingly establishes, maintains, or operates an Internet site that permits a person to play a game of chance or skill for money or other thing of value by means of the Internet or to make a wager upon the result of any game, contest, political nomination, appointment, or election by means of the Internet. This item (12) does not apply to activities referenced in items (6) and (6.1) of subsection (b) of this Section. This item (12) does not apply to activities referenced in item (15) subsection (b) of this Section.

(b) Participants in any of the following activities shall not be convicted of gambling:

(1) Agreements to compensate for loss caused by the happening of chance including without limitation contracts of indemnity or guaranty and life or health or accident insurance.

(2) Offers of prizes, award or compensation to the actual contestants in any bona fide contest for the determination of skill, speed, strength or endurance or to the owners of animals or vehicles entered in such contest.

(3) Pari-mutuel betting as authorized by the law of this State.

(4) Manufacture of gambling devices, including the acquisition of essential parts therefor and the assembly thereof, for transportation in interstate or foreign commerce to any place outside this State when such transportation is not prohibited by any applicable Federal law; or the manufacture, distribution, or possession of video gaming terminals, as defined in the Video Gaming Act, by manufacturers, distributors, and terminal operators licensed to do so under the Video Gaming Act.

(5) The game commonly known as "bingo", when conducted in accordance with the Bingo License and Tax Act.

(6) Lotteries when conducted by the State of Illinois in accordance with the Illinois Lottery Law. This exemption includes any activity conducted by the Department of Revenue to sell lottery tickets pursuant to the provisions of the Illinois Lottery Law and its rules.

(6.1) The purchase of lottery tickets through the Internet for a lottery conducted by the State of Illinois under the program established in Section 7.12 of the Illinois Lottery Law.

(7) Possession of an antique slot machine that is neither used nor intended to be used in the operation or promotion of any unlawful gambling activity or enterprise. For the purpose of this subparagraph (b)(7), an antique slot machine is one manufactured 25 years ago or earlier.

(8) Raffles and poker runs when conducted in accordance with the Raffles and Poker Runs Act.

(9) Charitable games when conducted in accordance with the Charitable Games Act.

(10) Pull tabs and jar games when conducted under the Illinois Pull Tabs and Jar Games Act.

(11) Gambling games conducted on riverboats when authorized by the Riverboat Gambling Act.

(12) Video gaming terminal games at a licensed establishment, licensed truck stop establishment, licensed fraternal establishment, or licensed veterans establishment when conducted in accordance with the Video Gaming Act.

(13) Games of skill or chance where money or other things of value can be won but no payment or purchase is required to participate.

(14) Savings promotion raffles authorized under Section 5g of the Illinois Banking Act, Section 7008 of the Savings Bank Act, Section 42.7 of the Illinois Credit Union Act, Section 5136B of the National Bank Act (12 U.S.C. 25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C. 1463).

(15) Fantasy sports contests and participation in fantasy sports contests as defined and offered under the Fantasy Sports Contest Act.

(c) Sentence.

Gambling is a Class A misdemeanor. A second or subsequent conviction under subsections (a)(3) through (a)(12), is a Class 4 felony.

(d) Circumstantial evidence.

In prosecutions under this Section circumstantial evidence shall have the same validity and weight as in any criminal prosecution.

(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)

Section 999. Effective date. This Act takes effect upon becoming law.".