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Bill

Bill

HB 3080

INTERNET GAMING ACT

104th Regular Session

Creates a licensing framework for Internet gaming in Illinois with up to 3 branded skins per licensee, 25% tax, consumer safeguards, and emergency rules.

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Bill Summary · HB 3080

HB3080: Internet Gaming Act — Summary

Overview
- Purpose: Establish a comprehensive framework to authorize and regulate Internet gaming in Illinois, including licensing, platform operation, tax collection, consumer protections, and related governance under the Illinois Gaming Board.
- Effective date: Immediate upon enactment, with emergency rulemaking authority.
- Status: Rule 19(a) / Re-referred to Rules Committee. Introduced February 6, 2025; public hearings held April 14, 2025; re-referred to Rules on March 21, 2025.

Key Provisions and Provisions of Change
- Creation of an Internet Gaming Act and new definitions consistent with the Illinois Gambling Act, tailored to Internet-based wagering.
- Authorization pathway:
- Internet gaming may be offered only by an Internet gaming licensee or by an Internet management services provider operating under contract with a licensed Internet gaming licensee.
- Internet gaming licenses may offer no more than 3 individually branded Internet gaming skins (distinct platforms/brands under a single licensee).
- Roles:
- Internet gaming operator: the licensee that operates the Internet gaming platform (or the platform’s operator under contract with a licensee).
- Internet management services provider: a licensed entity that runs the platform under agreement with a licensee.
- Internet gaming platform: the integrated hardware/software used to manage, conduct, and record Internet gaming and wagers.
- Internet wagering account: a patron’s financial record on the platform for deposits, withdrawals, and credits.
- Financials and tax:
- A 25% privilege tax on Internet gaming, with revenue directed to the State Gaming Fund.
- Adjusted gross gaming revenue (AGGR) defined for purposes of measuring net gaming activity: total receipts from Internet play and promotional credits, minus winnings paid out (including cash equivalents) and disputed settlements; exclusions apply to non-cashable vouchers/promotions redeemed.
- Operations and safeguards:
- Age verification, geolocation, and responsible gaming requirements to be enforced by the Board.
- Acceptance of out-of-state wagers only where permitted by reciprocal agreements with other jurisdictions.
- Diversity goals in procurement and spending by Internet gaming licensees.
- Provisions affecting the ability of home rule units (local governments) to regulate or impact Internet gaming within their boundaries (subject to limitations set by the Act).
- Compliance framework:
- Board powers extend to Internet gaming with adaptations to avoid conflicts with existing non-Internet gambling laws.
- Emergency rulemaking: the Board must adopt emergency rules within 90 days of the Act’s effective date to administer the Act, with potential adjustments to existing rules or new standards as needed.

Administrative and Procedural Details
- Administrative Procedure Act: The Act authorizes conforming changes; emergency rules are intended to stand pending rulemaking under the Act.
- Board administration: The Illinois Gaming Board will oversee licensing, platform integrity, wagering integrity, and related regulatory compliance.
- Recordkeeping and reporting: Based on defined terms (AGGR, AGGR-based taxes, wagering accounts, etc.), with potential reporting to the State Gaming Fund.

Who Is Affected
- Internet gaming licensees (and their platform operators)
- Internet management services providers
- Patrons and bettors engaging in Internet-based wagering
- Vendors and suppliers delivering gaming equipment, systems, and security services
- Home rule units within Illinois (to the extent the Act restricts or alters local regulatory authority)
- Illinois Gaming Board and state administrative agencies responsible for licensing and rulemaking

Notes
- The bill emphasizes a controlled licensing framework, brand limitations (3 skins per licensee), tax revenue to the State Gaming Fund, consumer protections, and emergency rule authority to enable rapid implementation.

Compiled from official sources — confirm details with the bill’s official record.

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