PREDICTION MARKETS REGULATION

Illinois General Assembly - Full Text of SB4168

Select Language

×

The Illinois General Assembly offers the Google Translate™ service for visitor convenience. In no way should it be considered accurate as to the translation of any content herein.

Visitors of the Illinois General Assembly website are encouraged to use other translation services available on the internet.

The English language version is always the official and authoritative version of this website.

NOTE: To return to the original English language version, select the "Show Original" button on the Google Translate™ menu bar at the top of the window.

Choose Language

English

Afrikaans

Albanian

Arabic

Armenian

Azerbaijani

Basque

Bengali

Bosnian

Catalan

Croatian

Czech

Danish

Dutch

Esperanto

Estonian

Filipino

Finnish

French

Galician

Georgian

German

Greek

Gujarati

Haitian Creole

Hausa

Hawaiian

Hebrew

Hindi

Hungarian

Icelandic

Indonesian

Interlingua

Interlingue

Inuktitut

Irish

Italian

Japanese

Javanese

Kannada

Khmer

Korean

Latin

Latvian

Lithuanian

Luxembourgish

Macedonian

Malagasy

Malayalam

Maltese

Maori

Marathi

Myanmar

Nepali

Norwegian

Odia

Pashto

Punjabi

Romanian

Russian

Samoan

Sango

Sanskrit

Sardinian

Sindhi

Sinhala

Slovak

Slovenian

Somali

Southern Sotho

Spanish

Sundanese

Swahili

Swedish

Tamil

Telugu

Thai

Tigrinya

Tonga

Turkish

Ukrainian

Urdu

Vietnamese

Welsh

Xhosa

Yiddish

Yoruba

Zulu

Powered by
Translate

Close

Illinois General Assembly

Top Navigation Bar

Translate

Learn

Select General Assembly

Search the 104th General Assembly

Enter search terms for legislation, members, committees, or schedules.

ILGA.GOV

LEGISLATION & LAWS

Bills & Resolutions

Public Acts

Illinois Compiled Statutes

Illinois Constitution

Search Legislation

Glossary

Guide

Reports & Inquiry

Legislative Reports

Special Reports

FTP Site

Legislator Lookup

Capitol Complex Phone Numbers

Rules & Regulations

Illinois Register

Administrative Rules

Senate

Members

Schedules

Committees

Request for Remote Testimony

Journals

Transcripts

Rules

Audio/Video

FOIA Information

Senate Employment Opportunities

Media Guidelines

House

Members

Schedules

Committees

Submit testimony for House Committees

Journals

Transcripts

Rules

Audio/Video

FOIA Information

House Employment Opportunities

Log In

Mobile Top Bar

Search the 104th General Assembly

Enter keywords to search the Illinois General Assembly website.

Full Text of SB4168

Home

Legislation

Full Text

SB4168 - 104th General Assembly

Bill Status

Full Text

Votes

Witness Slips

Select Menu

Bill Status

Full Text

Votes

Witness Slips

Printer Friendly Version

Introduced

Printer Friendly Version

Introduced

Open PDF

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB4168

Introduced 3/5/2026, by Sen. Michael E. Hastings

SYNOPSIS AS INTRODUCED:

New Act
720 ILCS 5/28-1

from Ch. 38, par. 28-1

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.
LRB104 21101 BAB 35267 b

A BILL FOR

SB4168
LRB104 21101 BAB 35267 b
1

AN ACT concerning gaming.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 1.
Short title.
This Act may be cited as the
5
Prediction Markets Regulation and Taxation Act.

6

Section 5.
Findings; legislative intent.
7

(a) The General Assembly finds that:
8

(1) Prediction markets, when limited to nonsports
9

events, serve a legitimate informational and hedging
10

function by aggregating dispersed knowledge about future
11

uncertain outcomes, contributing to more accurate public
12

forecasting and risk management.
13

(2) Such markets constitute a justified form of
14

gambling activity under State authority when properly
15

regulated to protect consumers, ensure integrity, prevent
16

fraud, and generate revenue for public purposes.
17

(3) Traditional sports wagering and casino gaming,
18

including, but not limited to, slot machines, table games,
19

and video gaming, are already comprehensively regulated
20

and taxed under the Illinois Gambling Act, the Sports
21

Wagering Act, and related statutes and shall remain
22

subject to those exclusive frameworks.
23

(4) To protect the integrity of existing licensed

SB4168
- 2 -
LRB104 21101 BAB 35267 b
1

gaming industries and prevent market overlap or evasion,
2

sports event contracts and casino-style games shall be
3

expressly excluded from this Act.
4

(b) It is the intent of the General Assembly to regulate
5
qualifying prediction markets separately, impose appropriate
6
consumer protections, and tax such activity at a rate that
7
reflects its economic and revenue potential while ensuring
8
competitiveness.

9

Section 10.
Definitions.
In this Act:
10

"Adjusted gross receipts" means the total of all amounts
11
received from qualifying prediction market contracts less
12
payouts to participants, platform fees not attributable to
13
gambling outcomes, and any other deductions authorized by the
14
Board, consistent with definitions in the Sports Wagering Act.
15

"Board" means the Illinois Gaming Board.
16

"Platform operator" means any person or entity operating a
17
prediction market that offers qualifying prediction market
18
contracts to persons located in Illinois.
19

"Prediction market" means a platform or exchange where
20
participants trade contracts whose value is derived from the
21
outcome of future events, excluding any sports event
22
contracts.
23

"Qualifying prediction market contract" means a binary or
24
multi-outcome contract traded on a prediction market platform
25
where the payoff depends on the resolution of a nonsports

SB4168
- 3 -
LRB104 21101 BAB 35267 b
1
event, including, but not limited to, political elections,
2
economic indicators, regulatory decisions, weather phenomena,
3
award ceremonies, entertainment events, or other verifiable
4
real-world outcomes, as determined by the Board.
5

"Sports event contract" means a contract based on the
6
outcome of athletic contests, sporting events, or any portion
7
thereof.

8

Section 15.
Regulation and licensing.
9

(a) No person shall operate a prediction market offering
10
qualifying prediction market contracts to Illinois residents
11
without first obtaining a master prediction market license
12
from the Board. A platform operator shall pay an initial
13
master prediction market license fee of $1,000,000 to the
14
Board before the license is issued, and the initial master
15
prediction market license shall be valid for a period of 12
16
months. The master prediction market license is renewable
17
annually upon payment of a $1,000,000 renewal fee and a
18
determination of the Board that the licensee meets the
19
requirements of this Act and the Board's rules.
20

(b) The Board shall adopt rules for licensing, including,
21
but not limited to:
22

(1) age restrictions for people under 21 years of age;
23

(2) geofencing to prevent access from prohibited
24

jurisdictions;
25

(3) anti-money-laundering compliance;

SB4168
- 4 -
LRB104 21101 BAB 35267 b
1

(4) responsible gambling tools;
2

(5) market integrity monitoring; and
3

(6) reporting requirements.
4

(c) This Act does not authorize or regulate sports
5
wagering as defined in the Sports Wagering Act or gambling
6
games authorized under the Illinois Gambling Act. Any platform
7
offering sports event contracts or casino games remains
8
subject to those Acts and any applicable cease and desist
9
orders or enforcement actions.

10

Section 20.
Taxation.
11

(a) For the privilege of operating under this Act, the
12
State shall impose and collect a privilege tax equal to 50% of
13
a platform operator's adjusted gross receipts derived from
14
qualifying prediction market contracts placed by or with
15
Illinois residents.
16

(b) The tax shall be remitted monthly to the Board and
17
deposited into the General Revenue Fund or a dedicated fund as
18
determined by appropriation, subject to the Board's
19
administrative rules.
20

(c) No additional per-wager fees, surcharges, or graduated
21
rates as in existence under the Sports Wagering Act shall
22
apply to qualifying prediction market activity under this Act.
23

(d) Platform operators shall file monthly returns and
24
maintain records sufficient for audit, consistent with
25
procedures under the Sports Wagering Act.

SB4168
- 5 -
LRB104 21101 BAB 35267 b
1

Section 25.
Enforcement and penalties.
2

(a) Violation of this Act, including unlicensed operation
3
or offering excluded sports event contracts, shall constitute
4
unlicensed gambling under Section 28-1 of the Criminal Code of
5
2012 and may result in cease and desist orders, civil
6
penalties, license revocation, or referral for criminal
7
prosecution.
8

(b) The Board shall have rulemaking authority to implement
9
this Act, including defining excludable events and resolving
10
jurisdictional overlaps.

11

Section 30.
The Criminal Code of 2012 is amended by
12
changing Section 28-1 as follows:

13

(720 ILCS 5/28-1)

(from Ch. 38, par. 28-1)
14

Sec. 28-1.
Gambling.
15

(a) A person commits gambling when he or she:
16

(1) knowingly plays a game of chance or skill for
17

money or other thing of value, unless excepted in
18

subsection (b) of this Section;
19

(2) knowingly makes a wager upon the result of any
20

game, contest, or any political nomination, appointment or
21

election;
22

(3) knowingly operates, keeps, owns, uses, purchases,
23

exhibits, rents, sells, bargains for the sale or lease of,

SB4168
- 6 -
LRB104 21101 BAB 35267 b
1

manufactures or distributes any gambling device;
2

(4) contracts to have or give himself or herself or
3

another the option to buy or sell, or contracts to buy or
4

sell, at a future time, any grain or other commodity
5

whatsoever, or any stock or security of any company, where
6

it is at the time of making such contract intended by both
7

parties thereto that the contract to buy or sell, or the
8

option, whenever exercised, or the contract resulting
9

therefrom, shall be settled, not by the receipt or
10

delivery of such property, but by the payment only of
11

differences in prices thereof; however, the issuance,
12

purchase, sale, exercise, endorsement or guarantee, by or
13

through a person registered with the Secretary of State
14

pursuant to Section 8 of the Illinois Securities Law of
15

1953, or by or through a person exempt from such
16

registration under said Section 8, of a put, call, or
17

other option to buy or sell securities which have been
18

registered with the Secretary of State or which are exempt
19

from such registration under Section 3 of the Illinois
20

Securities Law of 1953 is not gambling within the meaning
21

of this paragraph (4);
22

(5) knowingly owns or possesses any book, instrument
23

or apparatus by means of which bets or wagers have been, or
24

are, recorded or registered, or knowingly possesses any
25

money which he has received in the course of a bet or
26

wager;

SB4168
- 7 -
LRB104 21101 BAB 35267 b
1

(6) knowingly sells pools upon the result of any game
2

or contest of skill or chance, political nomination,
3

appointment or election;
4

(7) knowingly sets up or promotes any lottery or
5

sells, offers to sell or transfers any ticket or share for
6

any lottery;
7

(8) knowingly sets up or promotes any policy game or
8

sells, offers to sell or knowingly possesses or transfers
9

any policy ticket, slip, record, document or other similar
10

device;
11

(9) knowingly drafts, prints or publishes any lottery
12

ticket or share, or any policy ticket, slip, record,
13

document or similar device, except for such activity
14

related to lotteries, bingo games and raffles authorized
15

by and conducted in accordance with the laws of Illinois
16

or any other state or foreign government;
17

(10) knowingly advertises any lottery or policy game,
18

except for such activity related to lotteries, bingo games
19

and raffles authorized by and conducted in accordance with
20

the laws of Illinois or any other state;
21

(11) knowingly transmits information as to wagers,
22

betting odds, or changes in betting odds by telephone,
23

telegraph, radio, semaphore or similar means; or knowingly
24

installs or maintains equipment for the transmission or
25

receipt of such information; except that nothing in this
26

subdivision (11) prohibits transmission or receipt of such

SB4168
- 8 -
LRB104 21101 BAB 35267 b
1

information for use in news reporting of sporting events
2

or contests;
or
3

(12) knowingly establishes, maintains, or operates an
4

Internet site that permits a person to play a game of
5

chance or skill for money or other thing of value by means
6

of the Internet or to make a wager upon the result of any
7

game, contest, political nomination, appointment, or
8

election by means of the Internet. This item (12) does not
9

apply to activities referenced in items (6), (6.1), (8),
10

(8.1), and (15) of subsection (b) of this Section
; or

.

11

(13) knowingly violates the Prediction Markets
12

Regulation and Taxation Act, including unlicensed
13

operation and offering excluded sports event contracts.

14

(b) Participants in any of the following activities shall
15
not be convicted of gambling:
16

(1) Agreements to compensate for loss caused by the
17

happening of chance including without limitation contracts
18

of indemnity or guaranty and life or health or accident
19

insurance.
20

(2) Offers of prizes, award or compensation to the
21

actual contestants in any bona fide contest for the
22

determination of skill, speed, strength or endurance or to
23

the owners of animals or vehicles entered in such contest.
24

(3) Pari-mutuel betting as authorized by the law of
25

this State.
26

(4) Manufacture of gambling devices, including the

SB4168
- 9 -
LRB104 21101 BAB 35267 b
1

acquisition of essential parts therefor and the assembly
2

thereof, for transportation in interstate or foreign
3

commerce to any place outside this State when such
4

transportation is not prohibited by any applicable Federal
5

law; or the manufacture, distribution, or possession of
6

video gaming terminals, as defined in the Video Gaming
7

Act, by manufacturers, distributors, and terminal
8

operators licensed to do so under the Video Gaming Act.
9

(5) The game commonly known as "bingo", when conducted
10

in accordance with the Bingo License and Tax Act.
11

(6) Lotteries when conducted by the State of Illinois
12

in accordance with the Illinois Lottery Law. This
13

exemption includes any activity conducted by the
14

Department of Revenue to sell lottery tickets pursuant to
15

the provisions of the Illinois Lottery Law and its rules.
16

(6.1) The purchase of lottery tickets through the
17

Internet for a lottery conducted by the State of Illinois
18

under the program established in Section 7.12 of the
19

Illinois Lottery Law.
20

(7) Possession of an antique slot machine that is
21

neither used nor intended to be used in the operation or
22

promotion of any unlawful gambling activity or enterprise.
23

For the purpose of this subparagraph (b)(7), an antique
24

slot machine is one manufactured 25 years ago or earlier.
25

(8) Raffles and poker runs when conducted in
26

accordance with the Raffles and Poker Runs Act.

SB4168
- 10 -
LRB104 21101 BAB 35267 b
1

(8.1) The purchase of raffle chances for a raffle
2

conducted in accordance with the Raffles and Poker Runs
3

Act.
4

(9) Charitable games when conducted in accordance with
5

the Charitable Games Act.
6

(10) Pull tabs and jar games when conducted under the
7

Illinois Pull Tabs and Jar Games Act.
8

(11) Gambling games when authorized by the Illinois
9

Gambling Act.
10

(12) Video gaming terminal games at a licensed
11

establishment, licensed truck stop establishment, licensed
12

large truck stop establishment, licensed fraternal
13

establishment, or licensed veterans establishment when
14

conducted in accordance with the Video Gaming Act.
15

(13) Games of skill or chance where money or other
16

things of value can be won but no payment or purchase is
17

required to participate.
18

(14) Savings promotion raffles authorized under
19

Section 5g of the Illinois Banking Act, Section 7008 of
20

the Savings Bank Act, Section 42.7 of the Illinois Credit
21

Union Act, Section 5136B of the National Bank Act (12
22

U.S.C. 25a), or Section 4 of the Home Owners' Loan Act (12
23

U.S.C. 1463).
24

(15) Sports wagering when conducted in accordance with
25

the Sports Wagering Act.
26

(c) Sentence.

SB4168
- 11 -
LRB104 21101 BAB 35267 b
1

Gambling is a Class A misdemeanor. A second or subsequent
2
conviction under subsections (a)(3) through (a)(12), is a
3
Class 4 felony.
4

(d) Circumstantial evidence.
5

In prosecutions under this Section circumstantial evidence
6
shall have the same validity and weight as in any criminal
7
prosecution.
8
(Source: P.A. 101-31, Article 25, Section 25-915, eff.
9
6-28-19; 101-31, Article 35, Section 35-80, eff. 6-28-19;
10
101-109, eff. 7-19-19; 102-558, eff. 8-20-21.)

Footer

Disclaimer

This site is maintained for the Illinois General Assembly by the
Legislative Information System, 705 Stratton Building, Springfield, Illinois 62706.

Contact ILGA Webmaster

ILGA.gov uses cookies to ensure you get the best experience on our website. By continuing to browse ILGA.gov you consent to our use of cookies.
Read About Cookies

ILGA.GOV

2026 ILGA.gov | All Rights Reserved |
ADA

|
Disclaimers
|
Learn

This site is maintained for the Illinois General Assembly by the
Legislative Information System, 705 Stratton Building, Springfield, Illinois 62706.
Contact ILGA Webmaster

ILGA.gov uses cookies to ensure you get the best experience on our website. By continuing to browse ILGA.gov you consent to our use of cookies.
Read About Cookies

ILGA.GOV

2026 ILGA.gov | All Rights Reserved |
ADA

|
Disclaimers
|
Learn