SB0208sam002 100TH GENERAL ASSEMBLY

Sen. John J. Cullerton

Filed: 5/29/2017

10000SB0208sam002 LRB100 04954 MJP 27222 a

AMENDMENT TO SENATE BILL 208

AMENDMENT NO. ______. Amend Senate Bill 208, AS AMENDED, with reference to page and line numbers of Senate Amendment No. 1, by replacing line 24 on page 37 through line 19 on page 38 with the following:

"Eligibility for application for an Internet gaming license shall be limited to any person or entity that holds a valid and unrevoked: (1) owners license issued pursuant to 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, 2017 was designated by the Illinois Gaming Board as a key person of an owners licensee or is controlled by one or more key persons of an owners licensee; (2) organization license issued pursuant to the Illinois Horse Racing Act of 1975, but only if the organization licensee conducted live racing in calendar year 2016, except that 2 additional internet gaming licenses may be issued to entities awarded organization licenses after 2016 that exclusively conduct standardbred racing; or (3) advance deposit wagering license issued pursuant to the Illinois Horse Racing Act of 1975, but only if the advance deposit wagering licensee conducted advance deposit wagering in Illinois and handled in excess of $1,000,000 in calendar year 2016."; and

on page 40, immediately below line 9, by inserting the following:

"Section 5-26. Initial license and renewal requirements for Internet gaming licenses obtained by an organization licensee.

(a) No internet gaming license may be awarded to or renewed for any entity that is eligible for an Internet gaming license because of an organization license awarded by the Illinois Racing Board, unless they meet the following criteria:

(1) The entity must hold a valid organization license awarded by the Illinois Racing Board for the term of the license.

(2) The entity must hold an inter-track wagering license awarded by the Illinois Racing Board for the term of the license.

(3) The entity, for the term of the license, must have a signed contract with the horsemen association representing the largest number of owners, trainers, jockeys, or standardbred drivers who race horses at that organization licensee's racing meeting and that stipulates the number of races to be conducted at the racing meeting and that contains penalties for failure to conduct those races.

(4) The entity, for the term of the license, may not receive any money otherwise payable as purses under paragraph (13) of subsection (g) of Section 26 of the Illinois Horse Racing Act of 1975.

(5) The entity must deposit its gross gaming revenue into the Horse Racing Internet Purse Fund on a monthly basis according to the following schedule:

(A) 25% of gross gaming revenue up to and including $999,999;

(B) 30% of gross gaming revenue greater than $999,999 but not more than $1,500,000; and

(C) 33% of gross gaming revenue in excess of $1,500,000.

(6) The entity may not receive any proceeds from gross gaming revenue during any period that gross gaming revenues are not being deposited into the Horse Racing Internet Purse Fund.

(b) The Illinois Gaming Board shall study the viability and benefit of providing an Internet gaming license to the horsemen association representing the largest number of owners, training jockeys, or standardbred drivers who race horses at an organization licensee's racing meetings, and shall prepare a report for the Illinois General Assembly and the Governor no later than 12 months after the effective date of this Act.

Section 5-27. Initial license and renewal requirements for Internet gaming licenses obtained by an advance deposit wagering licensee.

(a) No Internet gaming license may be awarded to or renewed for any entity that is eligible for an Internet gaming license because of an advance deposit wagering license awarded by the Illinois Racing Board, unless it meets the following criteria:

(1) The entity must hold a valid advance deposit wagering license awarded by the Illinois Racing Board for the term of the Internet gaming license.

(2) The entity must deposit its gross gaming revenue into the Horse Racing Internet Purse Fund on a monthly basis according to the following schedule:

(A) 25% of gross gaming revenue up to and including $999,999;

(B) 30% of gross gaming revenue greater than $999,999 but not more than $1,500,000; and

(C) 33% of gross gaming revenue in excess of $1,500,000.

(3) The entity may not receive any proceeds from gross gaming revenue during any period that gross gaming revenues are not being deposited into the Horse Racing Internet Purse Fund."; and

on page 57, immediately below line 18, by inserting the following:

"Section 5-57. Horse Racing Internet Purse Fund.

(a) There is created in the State treasury a non-appropriated trust fund held separately from State moneys to be known as the Horse Racing Internet Purse Fund. The Fund shall consist of moneys paid into it under Sections 5-26 and 5-27 of this Act. The Fund shall be administered by the Illinois Racing Board, and is not subject to administrative charges or chargebacks, including, but not limited to, those authorized under Section 8h of the State Finance Act.

(b) The moneys deposited into the Fund shall be distributed monthly as purses by the Illinois Racing Board as follows:

(1) 31% of the moneys in the Fund to organization licensees conducting standardbred racing, distributed pro rata based on racing days awarded by the Illinois Racing Board.

(2) 69% of the moneys in the Fund to organization licensees conducting thoroughbred racing, distributed pro rata based on racing days awarded by the Illinois Racing Board.

(c) The gross gaming revenue deposited into this Fund is not tax proceeds nor property of the State."; and

on page 58, line 11, by replacing "Section 5.878" with "Sections 5.878 and 5.879"; and

on page 58, immediately below line 14, by inserting the following:

"(30 ILCS 105/5.879 new)

Sec. 5.879. The Horse Racing Internet Purse Fund.".