HB3308ham005 101ST GENERAL ASSEMBLY

Rep. Robert Rita

Filed: 3/26/2019

10100HB3308ham005 LRB101 10689 SMS 58526 a

AMENDMENT TO HOUSE BILL 3308

AMENDMENT NO. ______. Amend House Bill 3308 by replacing everything after the enacting clause with the following:

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

Section 5. Definitions. As used in this Act:

"Board" means the Illinois Gaming Board.

"Casino" means a facility at which lawful gambling is authorized and that is licensed under the Riverboat Gambling Act.

"Gross sports wagering revenue" means the total of cash or cash equivalents a sports wagering operator receives from sports wagering, less: (1) cash or cash equivalents paid to customers as winnings from sports wagering; and (2) the actual cost paid by the sports wagering operator for any personal property or services distributed to customers as a prize result of sports wagering.

"Internet sports wagering vendor" means any person or entity that is licensed under Section 20 of this Act to offer sports wagering over the Internet, including the supply of gaming platforms and services to operate websites and mobile devices, on behalf of a sports wagering operator.

"Interactive sports wagering skin" means the brand used by the sports wagering operator as presented through a portal, Internet website, or computer or mobile application through which authorized sports wagering is made available to sports bettors by a sports wagering operator.

"Minor" means a person under the age of 21 years.

"Qualified applicant" means any person or entity that holds a valid and unrevoked: (1) owners license issued under the Riverboat Gambling Act, or any affiliate thereof as defined by the Board in its administrative rules implementing such Act, or any person or entity who as of January 1, 2018 was designated by the Board as a key person of an owners licensee or is controlled by one or more key persons of an owners licensee or (2) organization license issued under the Illinois Horse Racing Act of 1975, but only if the organization licensee conducted more than 30 days of live racing in calendar year 2018.

"Racetrack" means a horse racetrack in Illinois that is authorized under the Illinois Horse Racing Act of 1975 to conduct live horse racing. "Racetrack" does not include an inter-track wagering location.

"Sporting event" means a professional, amateur, or collegiate sports or athletic event, an Olympic or international sports competition event, a motor race event, a contest of relative skill involving electronic media, a series of sporting events, any other special event authorized by the Board, or any portion thereof. "Sporting event" does not include youth events or fantasy sports activities.

"Sports bettor" means an individual who is physically present in this State when placing a wager and participates in sports wagering offered by a sports wagering operator. The intermediate routing of electronic data in connection with sports wagering shall not determine the location or locations in which a wager is initiated. "Sports bettor" does not include a minor or person who is otherwise prohibited from sports wagering.

"Sports facility" means Guaranteed Rate Field, located at 333 West 35th Street in Chicago, Soldier Field, located at 1410 Museum Campus Drive in Chicago, United Center, located at 1901 West Madison in Chicago, and Wrigley Field, located at 1060 West Addison in Chicago.

"Sports governing body" means the organization that prescribes final rules and enforces codes of conduct with respect to a sporting event and participants of a sporting event.

"Sports wagering" means wagering on sporting events or portions of sporting events, or on the performance of athletes in a sporting event or combination of sporting events, by any system or method of wagering, including, but not limited to, in-person or over the Internet through websites and on mobile devices. "Sports wagering" includes, but is not limited to, single-game bets, teaser bets, parlays, over-under, moneylines, pools, exchange wagering, in-game wagering, in-play bets, proposition bets, and straight bets. "Sports wagering" does not include: (1) fantasy sports, daily fantasy sports, gaming conducted over an Internet website in which game winnings are paid to participants based on the outcomes of games played by virtual teams of real players of a professional sport, where such teams are assembled by such participants and the outcomes of games are determined by the statistical performance of such real players in actual games, or gaming in which the winning outcome is not 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; or (2) gaming that is authorized in this State under the Illinois Horse Racing Act of 1975, the Riverboat Gambling Act, or the Video Gaming Act.

"Sports wagering lounge" means an area physically located in a casino, racetrack, or sports facility in which sports wagering is operated.

"Sports wagering operator" means a qualified applicant that is licensed under this Act to offer sports wagering in a sports wagering lounge and through an Interactive sports wagering skin.

"Wager" or "bet" means the staking or risking by a person of something of value, including, but not limited to, any deposit, cash, entry fee, and contest fee upon an agreement or understanding that the person or another person will receive something of value in the event of a certain outcome. "Wager" or "bet" does not include: (1) any activity governed by the securities laws of the United States or this State; (2) any contract of indemnity or guarantee; (3) any contract for insurance; or (4) participation in any game or contest in which the participants do not stake or risk anything of value other than personal efforts of the participants in playing the game or contest or obtaining access to the Internet or points or credits that the sponsor of the game or contest provides to participants free of charge and that can be used or redeemed only for participation in games or contests offered by the sponsor.

"Youth event" means a sporting event in which the participants are amateurs and primarily under the age of 18 years.

Section 10. Eligibility to conduct sports wagering. Sports wagering, as defined in this Act, and the system of wagering incorporated therein are hereby authorized to the extent that they are carried out in accordance with the provisions of this Act by an Internet sports wagering vendor. A sports wagering operator may hire an Internet sports wagering vendor to accept wagers consistent with the provisions of this Act. An Internet sports wagering vendor may accept wagers under this Act only on behalf of a sports wagering operator.

No sports wagering operator license or Internet sports wagering vendor license shall be granted to an applicant that has accepted, that has or had an affiliate that has accepted, or that has officers or directors who are or have been officers or directors of another party that accepted wagers through the Internet in contravention of any United States law, Illinois law, or any substantially similar laws of any other jurisdiction before the application date pursuant to a final determination of a court or an unequivocal official pronouncement from a government authority or chief law enforcement officer.

Section 15. Licensing of sports wagering operators.

(a) The Board shall issue a sports wagering operator license to a qualified applicant who applies as provided in this Act. The burden is upon each qualified applicant to demonstrate his or her suitability for licensure.

(b) Each application shall be accompanied by a nonrefundable application fee of $250,000. A license fee of $10,000,000 shall be paid by a sports wagering operator at the time of issuance of the license. The license fee imposed by this Section shall constitute an advance payment of the taxes owed by the sports wagering operator under Section 55. Each sports wagering operator license shall be renewed by the Board every 10 years and require a fee of $100,000 and a determination by the Board that the licensee continues to meet all of the requirements of this Act and the Board's rules.

(c) A sports wagering operator license issued under this Act shall be in addition to any other license required to conduct gambling operations under the Riverboat Gambling Act or under the Illinois Horse Racing Act of 1975 to conduct horse racing.

(d) No sports wagering operator license shall be issued by the Board to an entity unless it has established its financial stability, responsibility, good character, honesty, and integrity.

(e) No sports wagering operator shall accept a wager from persons who are not physically located in the State of Illinois.

Section 20. Licensing of Internet sports wagering vendors.

(a) The Board may issue an Internet sports wagering vendor license to an applicant who applies as provided in this Act. The burden is upon each applicant for an Internet sports wagering vendor license to demonstrate his or her suitability for licensure. No Internet sports wagering vendor shall have accepted any bets or wagers itself, or on behalf of a sports wagering operator, before obtaining a license under this Act.

(b) Each application shall be accompanied by a nonrefundable application fee of $100,000. Each sports wagering vendor license shall be renewed by the Board every 10 years and require a fee of $50,000 and a determination by the Board that the licensee continues to meet all of the requirements of this Act and the Board's rules.

(c) A sports wagering operator may authorize an Internet sports wagering vendor to accept wagers on its behalf through the Internet and to perform any other functions that the sports wagering operator is authorized to perform under this Act. Any and all agreements between a sports wagering operator and an Internet sports wagering vendor must be approved by the Board. The Internet sports wagering vendor must: (1) integrate its online system with the sports wagering operator's offline system to ensure responsible gaming requirements are met for sports bettor accounts and (2) grant the sports wagering operator access to its player database.

(d) An Internet sports wagering vendor may enter into agreements to offer sports wagering on behalf of one or more sports wagering operators without limitation. Such agreements are not prerequisites to obtaining an Internet sports wagering vendor license.

(e) No sports wagering vendor license shall be issued by the Board to any entity unless it has established its financial stability, responsibility, good character, honesty, and integrity.

(f) An Internet sports wagering vendor that allows its license to lapse without requesting an extension of time may be required to resubmit an initial license application and initial fee. An extension not to exceed 60 days may be granted by the Board upon receipt of the Internet sports wagering vendor's written request.

Section 25. Application requirements.

(a) Unless otherwise provided, this Section applies to all applicants for a sports wagering operator license or an Internet sports wagering vendor license.

(b) An application for a sports wagering operator license or an Internet sports wagering vendor license shall be made on forms provided by the Board and shall contain information the Board prescribes, including, but not limited to, detailed information regarding the ownership and management of the applicant, detailed personal information regarding the applicant, financial information regarding the applicant, and the gaming history and experience of the applicant in the United States and other jurisdictions when it supplies its platform to sports wagering operators who accept wagers without a gambling license or itself accepts wagers without a gambling license. The applicant shall also set forth in the application: whether he or she has been issued prior gambling related licenses; whether he or she has been licensed in any other state under any other name and, if so, the name and his or her age; and whether or not a permit or license issued to him or her in any other state has been suspended, restricted, or revoked and, if so, for what period of time.

(c) Information provided on an application shall be used as a basis for a thorough background investigation that the Board shall conduct with respect to each applicant. An incomplete application shall be cause for denial of a license by the Board.

(d) Each applicant shall disclose the identity of every person, association, trust, or corporation having a greater than 5% direct or indirect pecuniary interest in the applicant's operation. 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 partnership, the names and addresses of all partners, both general and limited.

(e) An application shall be filed and considered in accordance with the rules of the Board. 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, strictly confidential, and 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.

(f) Each person disclosed under subsection (d) shall submit with his or her application, on forms provided by the Board, 2 sets of his or her fingerprints. The Board shall charge each applicant a fee set by the Department of State Police to defray the costs associated with the search and classification of fingerprints obtained by the Board with respect to the applicant's application. These fees shall be paid into the State Police Services Fund.

(g) To be eligible for a sports wagering operator license or an Internet sports wagering vendor license, an applicant must:

(1) be at least 21 years of age;

(2) not have been convicted of a felony offense, a violation of Article 28 of the Criminal Code of 1961 or the Criminal Code of 2012, or a similar statute of any other jurisdiction;

(3) not have been convicted of a crime, other than a crime described in paragraph (2) of this subsection (g), involving dishonesty or moral turpitude;

(4) have demonstrated a level of skill or knowledge that the Board determines to be necessary in order to operate sports wagering; and

(5) have met standards for the holding of a license as adopted by rules of the Board. The rules shall provide that any person or entity seeking a sports wagering operator license or an Internet sports wagering vendor license shall be subject to background inquiries.

The Board may adopt rules to establish additional qualifications and requirements to preserve the integrity and security of sports wagering in this State and to promote and maintain a competitive sports wagering market.

(h) Applicants shall certify to the Board that all supplies, software, kiosks, and any other related equipment may not be used unless they conform to standards adopted by rules of the Board. Applicants shall furnish to the Board a list of all supplies, software, kiosks, and any other related equipment that will be used.

(i) The Board may in its discretion refuse an Internet sports wagering vendor license to any person: (1) who is unqualified to perform the duties required of the applicant; (2) who fails to disclose or states falsely any information called for in the application; (3) who has been found guilty of a violation of this Act or whose prior gambling related license or application therefor has been suspended, restricted, revoked or denied for just cause in any other state; (4) who has received an unequivocal official pronouncement from government authorities in any state or foreign country that it has supplied platforms or accepted wagers in violation of that jurisdiction's law; (5) who has a background, including a criminal record, reputation, habits, social or business associations, and prior activities that constituted illegal gambling or pose a threat to the public interests of the State, to the security and integrity of sports wagering, or to the promotion and maintenance of a competitive sports betting market in this State; (6) who presents, creates, or enhances the dangers of unsuitable, unfair, or illegal practices, methods, and activities in the conduct of sports wagering; (7) who presents questionable business practices and financial arrangements incidental to the conduct of sports wagering activities; or (8) for any other just cause.

(j) The Board may suspend, revoke, or restrict any Internet sports wagering vendor license: (1) for violation of any provision of this Act; (2) for violation of any of the rules of the Board; (3) for any cause which, if known to the Board, would have disqualified the applicant from receiving the license; (4) for default in the payment of any obligation or debt due to the State of Illinois; or (5) for any other just cause.

(k) A person who knowingly makes a false statement on an application is guilty of a Class A misdemeanor.

Section 30. Sports wagering lounge; safeguards and consumer protections.

(a) Sports wagering operators are authorized to accept wagers at a sports wagering lounge and at Board approved kiosks at the sports wagering operator's casino or racetrack. Sports wagering operators may accept wagers through the Internet only after a temporary or permanent bricks and mortar sports wagering lounge is established and has commenced operation in the sports wagering operator's casino or racetrack. A qualified applicant may petition the Board to commence operation of the sports wagering lounge at a temporary facility during the pendency of construction of a sports wagering lounge in a casino or racetrack. The temporary facility may include, at the discretion of the Board, the utilization of designated windows at the current casino cage or racetrack betting window for purposes of placing sports betting wagers and self-service wagering machines located at the casino or racetrack.

(b) Sports wagering operators may accept wagers at a sports wagering lounge located within a sports facility, or within a 5-block radius of a sports facility, if: (1) the Major League Baseball, National Hockey League, National Basketball Association, or National Football League teams that play their home contests at the applicable sports facility have granted written authorization for the sports wagering lounge and (2) the owners of such teams have entered into an agreement with a sports wagering operator.

(c) Sports wagering operators shall adopt procedures to prevent sports wagering by persons who are prohibited from placing wagers and shall implement and maintain commercially reasonable measures to verify a person's true identity.

(d) Sports wagering operators shall verify that a sports bettor is not a minor and is of the legal minimum age for placing the wager. If the sports wagering operator becomes or is made aware that a minor has created an account for sports wagering, the sports wagering operator shall promptly refund any deposit received from the minor, whether or not the minor has engaged in or attempted to engage in sports wagering; however, any refund may be offset by any prizes already awarded.

(e) Sports wagering operators shall allow individuals to restrict themselves from placing wagers with the sports wagering operator, including player loss limits, and take reasonable steps to prevent those individuals from placing such wagers, including, upon request of the individual, to share the request with the Board for the sole purpose of disseminating the request to other sports wagering operators.

(f) The Board shall adopt rules to ensure that a sports wagering operator's advertisements for sports wagering: (1) do not target minors or other persons who are ineligible to place wagers, problem gamblers, or other vulnerable persons; (2) disclose the identity of the sports wagering operator; (3) provide information about or links to resources relating to gambling addiction; and (4) are not otherwise false, misleading, or deceptive to a reasonable consumer.

Section 35. Sports wagering operators; interactive sports wagering skins. Each sports wagering operator license shall authorize the sports wagering operator to use one Internet gaming skin that shall be owned by the sports wagering operator or its affiliate. The Internet gaming skin shall prominently and solely reflect the primary name of the casino or racetrack that is actively utilized by the sports wagering operator.

Section 40. Integrity requirements.

(a) Sports wagering operators shall conduct background checks on newly hired employees and biennial background checks on all existing employees. Background checks shall search for criminal history and any charges or convictions involving corruption or manipulation of sporting events and association with organized crime.

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

(c) The Board and sports wagering operators shall cooperate with investigations conducted by a sports governing body or law enforcement agencies, including, but not limited to, providing or facilitating the provision of betting information and audio or video files relating to persons placing wagers, any other conduct that corrupts a betting outcome of a sporting event for purposes of financial gain, or suspicious or illegal wagering activities, including use of funds derived from illegal activity, wagers to conceal or launder funds derived from illegal activity, using agents to place wagers, and using false identification. Sports wagering operators shall also immediately report information relating to conduct described in this subsection (c) to the relevant sports governing body.

(d) Sports wagering operators shall maintain the confidentiality of information provided by a sports governing body to the sports wagering operator, unless disclosure is required by the Board, a court order, this Act, or any other provision of law.

Section 45. Recordkeeping; information sharing.

(a) Sports wagering operators shall maintain records of all bets and wagers placed, including personally identifiable information of the bettor, amount and type of bet, time the bet was placed, location of the bet, including the Internet protocol address if applicable, the outcome of the bet, records of abnormal betting activity, and video camera recordings in the case of in-person wagers for at least one year after the sporting event occurs and make the data available for inspection upon request of the Board or as required by a court order.

Section 50. Annual report.

(a) Each licensed sports wagering operator shall annually submit a report to the Board no later than June 30 of each year that shall include the following information as it shall apply to accounts held by customers located in this State: (1) the total number of new accounts established in the preceding year, as well as the total number of accounts permanently closed in the preceding year; (2) the total amount of bets received from customers; (3) the total amount of winnings awarded to customers; (4) the total amount on hold on each type of bet; (5) the total amount of gross wagering revenue received by the licensed sports wagering operator; and (6) the total number of persons that requested to exclude themselves from or otherwise limit their participation in sports wagering.

(b) Upon the submission of the annual report, to such extent the Board deems it to be in the public interest, the Board shall be authorized to conduct a financial audit of any sports wagering operator to ensure compliance with this Act.

(c) The Board shall annually publish a report based on the aggregate information provided by all licensed sports wagering operators, which shall be published on the Board's website no later than 180 days after the deadline for the submission of individual reports as specified in this Act.

Section 55. Tax rate and distribution. For the privilege of offering sports wagering in this State, a tax is hereby imposed on sports wagering operator licensees, based on the gross gaming revenue received by sports wagering operator licensees from sports wagering authorized under this Act, at the rate of 10% of annual gross sports wagering revenue generated within this State, which shall be paid to the Board not less than once per month. The Board shall deposit into the State Gaming Fund all taxes imposed by this Act; any interest and penalties imposed by the Board relating to those taxes; all penalties levied and collected by the Board; and the appropriate funds, cash, or prizes forfeited from sports wagering. Sports wagering operators shall collect and report information to the Board to reasonably ensure that State taxes on prizes from winning wagers are collected from or reported by the person placing the bet or wager, as required by law, at the time of any payment of the proceeds of the bet or wager.

Section 60. Imputation. The performance of any act required, or the forbearance of any act prohibited, by this Act by an Internet sports wagering vendor shall be imputed to the sports wagering operator on behalf of which it is operating, and vice versa.

Section 65. Civil penalty.

(a) A person, firm, corporation, association, agent, or employee who knowingly violates a provision of this Act shall be liable for a civil penalty of not more than $5,000 for each violation, not to exceed $50,000 for violations arising out of the same transaction or occurrence that may be recovered in a civil action brought by the Board.

(b) A person, firm, corporation, association, agent, or employee who operates a sports wagering business in Illinois without a license shall be liable for a civil penalty of not more than $500,000 for each violation, not to exceed $5,000,000 for violations arising out of the same transaction or occurrence that may be recovered in a civil action brought by the Board. Additionally, the Board is authorized to contact Internet services providers or seek judicial action to block any websites that are conducting sports wagering without a valid sports wagering operator license under this Act.

Section 70. Reconciliation with other State law; no liability for information sharing.

(a) The provisions of the Riverboat Gambling Act, and all rules adopted thereunder, shall apply to this Act, except where there is a conflict between the 2 Acts.

(b) A sports wagering operator shall not be liable under the laws of this State to any party, including customers, for disclosing information as required under this Act or any other federal or local law and shall not be liable for refusing to disclose information unless required under this Act.

Section 900. The Riverboat Gambling Act is amended by changing Section 24 as follows:

(230 ILCS 10/24)

Sec. 24. Applicability of this Illinois Riverboat Gambling Act.

(a) The provisions of this the Illinois Riverboat Gambling Act, and all rules adopted promulgated thereunder, shall apply to the Video Gaming Act, except where there is a conflict between the 2 Acts.

(b) The provisions of this Act, and all rules adopted thereunder, shall apply to the Sports Wagering Act, except where there is a conflict between the 2 Acts.

(Source: P.A. 96-37, eff. 7-13-09.)

Section 905. The Criminal Code of 2012 is amended by changing Section 28-1 and 28-1.1 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.

(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) Sports wagering when conducted in accordance with the Sports Wagering 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 5/28-1.1) (from Ch. 38, par. 28-1.1)

Sec. 28-1.1. Syndicated gambling.

(a) Declaration of Purpose. Recognizing the close relationship between professional gambling and other organized crime, it is declared to be the policy of the legislature to restrain persons from engaging in the business of gambling for profit in this State. This Section shall be liberally construed and administered with a view to carrying out this policy.

(b) A person commits syndicated gambling when he or she operates a "policy game" or engages in the business of bookmaking.

(c) A person "operates a policy game" when he or she knowingly uses any premises or property for the purpose of receiving or knowingly does receive from what is commonly called "policy":

(1) money from a person other than the bettor or player whose bets or plays are represented by the money; or

(2) written "policy game" records, made or used over any period of time, from a person other than the bettor or player whose bets or plays are represented by the written record.

(d) A person engages in bookmaking when he or she knowingly receives or accepts more than five bets or wagers upon the result of any trials or contests of skill, speed or power of endurance or upon any lot, chance, casualty, unknown or contingent event whatsoever, which bets or wagers shall be of such size that the total of the amounts of money paid or promised to be paid to the bookmaker on account thereof shall exceed $2,000. Bookmaking is the receiving or accepting of bets or wagers regardless of the form or manner in which the bookmaker records them.

(e) Participants in any of the following activities shall not be convicted of syndicated 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 the contest;

(3) Pari-mutuel betting as authorized by 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 the transportation is not prohibited by any applicable Federal law;

(5) Raffles and poker runs when conducted in accordance with the Raffles and Poker Runs Act;

(6) Gambling games conducted on riverboats when authorized by the Riverboat Gambling Act;

(7) 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; and

(8) 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); and .

(9) Sports wagering when conducted in accordance with the Sports Wagering Act.

(f) Sentence. Syndicated gambling is a Class 3 felony.

(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.".