summary
Introduced
03/05/2026
03/05/2026
In Committee
03/05/2026
03/05/2026
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Creates the Prediction Markets Regulation and Taxation Act. Includes findings and legislative intent provisions. Provides that no person shall operate a prediction market offering qualifying prediction market contracts to Illinois residents without first obtaining a master prediction market license from the Illinois Gaming Board and paying a $1,000,000 license fee to the Board. Provides that the master prediction market license is renewable annually upon payment of a $1,000,000 renewal fee and a determination of the Board that the licensee meets the requirements of the Act and the Board's rules. Requires the Board to adopt rules for licensing and establishes provisions concerning construction of the Act. Provides that the State shall impose and collect a privilege tax equal to 50% of a platform operator's adjusted gross receipts derived from qualifying prediction market contracts placed by or with Illinois residents. Sets forth provisions concerning additional requirements for the tax. Provides that violation of the Act shall constitute unlicensed gambling under the Criminal Code of 2012 and may result in cease and desist orders, civil penalties, license revocation, or referral for criminal prosecution. Grants the Board rulemaking authority to implement the Act. Amends the Criminal Code of 2012. Provides that, in addition to existing provisions, a person commits gambling when the person knowingly violates the Prediction Markets Regulation and Taxation Act.
AI Summary
This bill, titled the Prediction Markets Regulation and Taxation Act, establishes a framework for regulating and taxing prediction markets in Illinois, which are platforms where participants trade contracts based on the outcome of future events, excluding sports or casino-style games. To operate such a market and offer "qualifying prediction market contracts" (contracts based on non-sports events like elections or economic indicators) to Illinois residents, a "platform operator" (the entity running the market) must obtain a "master prediction market license" from the Illinois Gaming Board, requiring a $1,000,000 initial fee and an annual renewal fee of the same amount, along with adherence to rules on age restrictions, responsible gambling, and market integrity. The state will impose a significant "privilege tax" of 50% on the platform operator's "adjusted gross receipts" (total money received minus payouts and authorized deductions) from contracts involving Illinois residents. Violating this Act, including operating without a license or offering prohibited sports event contracts, will be considered unlicensed gambling under the Criminal Code of 2012, potentially leading to cease and desist orders, fines, license revocation, or criminal prosecution.
Sponsors (2)
Last Action
Added as Chief Co-Sponsor Sen. Cristina Castro (on 03/11/2026)
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