SB2478 100TH GENERAL ASSEMBLY

LRB100 18595 MRW 33895 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB2478

Introduced 1/30/2018___________, by

SYNOPSIS AS INTRODUCED:

New Act
720 ILCS 5/28-1	from Ch. 38, par. 28-1
720 ILCS 5/28-3	from Ch. 38, par. 28-3

Creates the Sports Betting Consumer Protection Act. Authorizes a State agency or entity charged by law with enforcing the Act, unless prohibited under federal law and as otherwise provided by State law, to adopt rules which prohibit or authorize sports betting or electronic sports betting by an electronic sports betting patron or sports betting facility patron through an electronic sports betting account on an electronic sports betting platform or other means with an electronic sports betting licensee or sports betting facility licensee. Allows the State agency to also require reporting of sports betting adjusted gross receipts to it by electronic sports betting licensees or sports betting facility licensees. Amends the Criminal Code of 2012. Exempts activities authorized under the Sports Betting Consumer Protection Act from gambling offenses.

CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning sports betting.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Sports Betting Consumer Protection Act.

Section 5. Legislative intent.

The General Assembly hereby finds and declares that:

(1) Sports betting is currently illegal in the United States under federal law, but that may be subject to change in 2018 due to court action. In 1992, the United States Congress passed the Professional and Amateur Sports Protection Act that made sports wagering illegal in all states except the following 4 states that were grandfathered because they had laws permitting sports wagering at that time: Oregon, Delaware, Montana, and Nevada. On December 4, 2017, the United States Supreme Court heard oral arguments in the case of Christie vs. the National Collegiate Athletic Association. The State of New Jersey filed the case to question the constitutionality of the federal law. The Court will likely issue its opinion in 2018. If the Court decides the federal law is unconstitutional, sports betting companies will likely rush to market with online and brick and mortar sports betting products to capture a piece of the presently illegal sports betting market in the United States.

(2) There are estimates that Americans spend $400,000,000,000 annually on illegal sports betting. Industry experts estimate that a licensed sports betting market in the United States will have revenues of between $175,000,000,000 and $225,000,000,000 annually. Illinois, by population, is roughly 4% of the United States market. If sports betting is declared legal by the United States Supreme Court, Illinoisans could be betting between $7,000,000,000 and $16,000,000,000 annually with no regulation of the industry and no protections for Illinois consumers. The Criminal Code of 2012 does include certain prohibitions on gambling, but does not specifically prohibit sports betting. Because the effectiveness of the Criminal Code of 2012 is in question and because the illegal sports betting market is already operating in this State, and in light of possible action by the United States Supreme Court, it should be the intent of the General Assembly to enact into law provisions that either clearly prohibit sports betting or that legalize, limit, and control sports betting with strong consumer protections to, among other things, ensure that minors cannot place sports bets and provide problem gamblers access to the help they need. If sports betting became authorized in this State by virtue of United States Supreme Court action and subsequent legislation, the State law should also address any legitimate fiscal needs of this State. If sports betting were to become legal by way of United States Supreme Court action alone, an entirely unregulated sports betting industry would not be in the best interests of the people of this State.

Section 10. Definitions.

As used in this Act:

"Board" means the State agency or entity charged by law with the enforcement of this Act.

"Electronic sports betting" means sports betting when a bet is placed by an electronic sports betting patron on the electronic sports betting platform of an electronic sports betting licensee.

"Electronic sports betting account" means an account initiated by an electronic sports betting patron and held by an electronic sports betting licensee to facilitate electronic sports betting.

"Electronic sports betting licensee" means a sports betting facility licensee licensed by the Board to conduct electronic sports betting.

"Electronic sports betting patron" means any natural person who has an electronic sports betting account with an electronic sports betting licensee.

"Electronic sports betting platform" means how an electronic sports betting patron accesses an electronic sports betting licensee's services.

"Sports betting" means the legal placement of a bet on a professional or collegiate sports activity or event, or international sports competition.

"Sports betting adjusted gross receipts" means the total of cash and cash equivalents received from sports betting less the total amount of cash or cash equivalents paid to sports betting facility patrons and electronic sports betting patrons for winning sports betting.

"Sports betting facility" means a physical location within this State that is licensed to conduct sports betting.

"Sports betting facility licensee" means any entity licensed by the Board to conduct sports betting at a sports betting facility.

"Sports betting facility patron" means any natural person who is not a minor and who is not otherwise prohibited from placing a bet at a sports betting facility.

Section 15. Board action regarding sports betting. Unless prohibited under federal law and as otherwise provided by State law, the Board may adopt rules which prohibit or authorize sports betting or electronic sports betting by an electronic sports betting patron or sports betting facility patron through an electronic sports betting account on an electronic sports betting platform or other means with an electronic sports betting licensee or sports betting facility licensee. The Board may require reporting of sports betting adjusted gross receipts to it by electronic sports betting licensees or sports betting facility licensees.

Section 105. The Criminal Code of 2012 is amended by changing Sections 28-1 and 28-3 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.

(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) Authorized activities under the Sports Betting Consumer Protection Act or rules adopted under that 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.)

(720 ILCS 5/28-3) (from Ch. 38, par. 28-3)

Sec. 28-3. Keeping a Gambling Place. A "gambling place" is any real estate, vehicle, boat or any other property whatsoever used for the purposes of gambling other than gambling conducted in the manner authorized by the Riverboat Gambling Act, Sports Betting Consumer Protection Act, or the Video Gaming Act. Any person who knowingly permits any premises or property owned or occupied by him or under his control to be used as a gambling place commits a Class A misdemeanor. Each subsequent offense is a Class 4 felony. When any premises is determined by the circuit court to be a gambling place:

(a) Such premises is a public nuisance and may be proceeded against as such, and

(b) All licenses, permits or certificates issued by the State of Illinois or any subdivision or public agency thereof authorizing the serving of food or liquor on such premises shall be void; and no license, permit or certificate so cancelled shall be reissued for such premises for a period of 60 days thereafter; nor shall any person convicted of keeping a gambling place be reissued such license for one year from his conviction and, after a second conviction of keeping a gambling place, any such person shall not be reissued such license, and

(c) Such premises of any person who knowingly permits thereon a violation of any Section of this Article shall be held liable for, and may be sold to pay any unsatisfied judgment that may be recovered and any unsatisfied fine that may be levied under any Section of this Article.

(Source: P.A. 96-34, eff. 7-13-09.)