Bill Text: IL SB3126 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Horse Racing Act of 1975 and the Illinois Gambling Act. Provides that from winnings required to be reported to the Internal Revenue Service and subject to withholding on Form W-2G, an organization licensee, an advance deposit wagering licensee, an owners licensee, or a licensee that operates one or more facilities or gaming locations at which lawful gambling is authorized shall withhold up to the full amount of winnings necessary to pay the winner's delinquent claims due and payable to the State as determined under the Illinois State Collection Act of 1986. Provides that for withholding of winnings, the licensee shall be entitled to an administrative fee not to exceed the lesser of 4% of the total amount of cash winnings paid to the gambling winner or $150. Provides that the total amount withheld from the cash payout shall not exceed the total cash winnings claimed by the obligor. Provides that these provisions shall be operative on and after the date that rules are adopted by the Department of Revenue and the State Comptroller. Provides that the licensee shall post signs with a statement regarding withholding of delinquent claims due and payable to the State. Provides that the text of these signs shall be determined by rule by the Department of Revenue. Makes corresponding changes in the State Comptroller Act and the Department of Revenue Law of the Civil Administrative Code of Illinois.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced) 2024-06-26 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments [SB3126 Detail]

Download: Illinois-2023-SB3126-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3126 Introduced 2/2/2024, by Sen. Win Stoller SYNOPSIS AS INTRODUCED:
15 ILCS 405/31 new
20 ILCS 2505/2505-815 new
230 ILCS 5/27.3 new
230 ILCS 5/34.4 new
230 ILCS 10/13.06 new
230 ILCS 10/13.3 new
Amends the Illinois Horse Racing Act of 1975 and the Illinois Gambling Act. Provides that from winnings required to be reported to the Internal Revenue Service and subject to withholding on Form W-2G, an organization licensee, an advance deposit wagering licensee, an owners licensee, or a licensee that operates one or more facilities or gaming locations at which lawful gambling is authorized shall withhold up to the full amount of winnings necessary to pay the winner's delinquent claims due and payable to the State as determined under the Illinois State Collection Act of 1986. Provides that for withholding of winnings, the licensee shall be entitled to an administrative fee not to exceed the lesser of 4% of the total amount of cash winnings paid to the gambling winner or $150. Provides that the total amount withheld from the cash payout shall not exceed the total cash winnings claimed by the obligor. Provides that these provisions shall be operative on and after the date that rules are adopted by the Department of Revenue and the State Comptroller. Provides that the licensee shall post signs with a statement regarding withholding of delinquent claims due and payable to the State. Provides that the text of these signs shall be determined by rule by the Department of Revenue. Makes corresponding changes in the State Comptroller Act and the Department of Revenue Law of the Civil Administrative Code of Illinois.
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A BILL FOR
SB3126 LRB103 38298 CES 68433 b
AN ACT concerning gaming.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Comptroller Act is amended by adding
Section 31 as follows:
(15 ILCS 405/31 new)
Sec. 31. Certification of information to the State gaming
licensees.
(a) For purposes of this Section, "State gaming licensee"
means an organization licensee or advance deposit wagering
licensee licensed under the Illinois Horse Racing Act of 1975,
an owners licensee licensed under the Illinois Gambling Act,
or a licensee that operates, under any law of this State, one
or more facilities or gaming locations at which lawful
gambling is authorized and licensed as provided in the
Illinois Gambling Act.
(b) The Comptroller may provide, by rule, for
certification to any State gaming licensee of delinquent
claims due and payable to the State under the Illinois State
Collection Act of 1986. The State gaming licensee shall have
the ability to withhold from winnings required to be reported
to the Internal Revenue Service on Form W-2G, up to the full
amount of winnings necessary to pay the winner's delinquent

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claims due and payable to the State. The rule shall provide for
notice to and an opportunity to be heard by the individual
affected and any final administrative decision rendered by the
Comptroller shall be reviewed only under and in accordance
with the Administrative Review Law.
(c) For withholding of winnings, the State gaming licensee
shall be entitled to an administrative fee not to exceed the
lesser of 4% of the total amount of cash winnings paid to the
gambling winner or $150.
(d) The total amount withheld from the cash payout,
including the administrative fee, shall not exceed the total
cash winnings claimed by the obligor. If the cash payout
claimed is greater than the amount sufficient to satisfy the
obligor's delinquent child support payments, the State gaming
licensee shall pay the obligor the remaining balance of the
payout, less the administrative fee authorized by subsection
(c), at the time it is claimed.
(e) A State gaming licensee who in good faith complies
with the requirements of this Section shall not be liable to
the gaming winner or any other individual or entity.
Section 10. The Department of Revenue Law of the Civil
Administrative Code of Illinois is amended by adding Section
2505-815 as follows:
(20 ILCS 2505/2505-815 new)

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Sec. 2505-815. Debt collection of delinquent claims due
and payable to the State.
(a) For purposes of this Section, "State gaming licensee"
means an organization licensee or advance deposit wagering
licensee licensed under the Illinois Horse Racing Act of 1975,
an owners licensee licensed under the Illinois Gambling Act,
or a licensee that operates, under any law of this State, one
or more facilities or gaming locations at which lawful
gambling is authorized and licensed as provided in the
Illinois Gambling Act.
(b) The Department shall provide debt collection duties as
determined under Section 10 of the Illinois State Collection
Act of 1986. The state gaming licensee shall pay to the
Department delinquent claims due and payable to the State.
(c) The Department may provide, by rule, for the
collection of debt made under this Section by the State gaming
licensee.
Section 15. The Illinois Horse Racing Act of 1975 is
amended by adding Sections 27.3 and 34.4 as follows:
(230 ILCS 5/27.3 new)
Sec. 27.3. Withholding of delinquent claims due and
payable to the State.
(a) From winnings required to be reported to the Internal
Revenue Service and subject to withholding on Form W-2G,

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organization licensees and advance deposit wagering licensees
licensed under this Act shall withhold up to the full amount of
winnings necessary to pay the winner's delinquent claims due
and payable to the State as determined under the Illinois
State Collection Act of 1986, Section 2505-810 of the Civil
Administrative Code of Illinois (Department of Revenue Law),
and Section 31 of the State Comptroller Act. Amounts withheld
shall be paid to the Department of Revenue by the organization
licensee or the advance deposit wagering licensee, as
applicable.
(b) For withholding of winnings, the organization licensee
or advance deposit wagering licensee shall be entitled to an
administrative fee not to exceed the lesser of 4% of the total
amount of cash winnings paid to the gambling winner or $150.
(c) The total amount withheld from the cash payout,
including the administrative fee, shall not exceed the total
cash winnings claimed by the obligor. If the cash payout
claimed is greater than the amount sufficient to satisfy the
obligor's delinquent child support payments, the organization
licensee or advance deposit wagering licensee shall pay the
obligor the remaining balance of the payout, less the
administrative fee authorized by subsection (b), at the time
it is claimed.
(d) An organization licensee or an advance deposit
wagering licensee that in good faith complies with the
requirements of this Section shall not be liable to the gaming

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winner or any other individual or entity.
(e) For an organization licensee under this Act, an agent
of the Board (such as an employee of the Board) shall be
responsible for notifying the person identified as having
delinquent claims due and payable to the State that the
organization licensee is required by law to withhold all or a
portion of his or her winnings. This notification must be
provided at the time the winnings are withheld.
(f) The provisions of this Section shall be operative on
and after the date that rules are adopted by the Department of
Revenue pursuant to Section 2505-810 of the Civil
Administrative Code of Illinois (Department of Revenue Law)
and the State Comptroller pursuant to Section 31 of the State
Comptroller Act.
(g) The delinquent claims due and payable to the State
required to be withheld under this Section and the
administrative fee under subsection (b) have priority over any
secured or unsecured claim on cash winnings, except claims for
federal or State taxes that are required to be withheld under
federal or State law and claims of delinquent child support.
(230 ILCS 5/34.4 new)
Sec. 34.4. Withholding of delinquent claims due and
payable to the State; signs; statement.
(a) Each organization licensee shall post signs with a
statement regarding withholding of delinquent claims due and

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payable to the State, the text of which shall be determined by
rule by the Department of Revenue, at the following locations
in each race track at which horse race meetings are conducted
by the organization licensee and in each inter-track wagering
facility and inter-track wagering location operated by the
organization licensee:
(1) each entrance and exit; and
(2) near each credit location.
The signs shall be provided by the Department of Revenue.
(b) Each organization licensee shall print a statement
regarding withholding of delinquent claims due and payable to
the State, the text of which shall be determined by rule by the
Department of Revenue, on all official racing programs that
the organization licensee provides to the general public.
Section 20. The Illinois Gambling Act is amended by adding
Sections 13.06 and 13.3 as follows:
(230 ILCS 10/13.06 new)
Sec. 13.06. Withholding of delinquent claims due and
payable to the State.
(a) From winnings required to be reported to the Internal
Revenue Service on Form W-2G, an owners licensee or a licensee
that operates one or more facilities or gaming locations at
which lawful gambling is authorized as provided in this Act
shall withhold up to the full amount of winnings necessary to

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pay the winner's delinquent claims due and payable to the
State as determined under the Illinois State Collection Act of
1986, Section 2505-810 of the Civil Administrative Code of
Illinois (Department of Revenue Law), and Section 31 of the
State Comptroller Act. Amounts withheld shall be paid to the
Department of Revenue by the owners licensee or casino
operator licensee, as applicable.
(b) For withholding of winnings, the licensee shall be
entitled to an administrative fee not to exceed the lesser of
4% of the total amount of cash winnings paid to the gambling
winner or $150.
(c) The total amount withheld from the cash payout,
including the administrative fee, shall not exceed the total
cash winnings claimed by the obligor. If the cash payout
claimed is greater than the amount sufficient to satisfy the
obligor's delinquent child support payments, the licensee
shall pay the obligor the remaining balance of the payout,
less the administrative fee authorized by subsection (b), at
the time it is claimed.
(d) A licensee who in good faith complies with the
requirements of this Section shall not be liable to the gaming
winner or any other individual or entity.
(e) Upon request of a licensed owner under this Act, an
agent of the Board (such as a gaming special agent employed by
the Board, a State police officer, or a revenue agent) shall be
responsible for notifying the person identified as having

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delinquent claims due and payable to the State that the
licensed owner is required by law to withhold all or a portion
of his or her winnings. If given, this notification must be
provided at the time the winnings are withheld.
(f) The provisions of this Section shall be operative on
and after the date that rules are adopted by the Department of
Revenue pursuant to Section 2505-810 of the Civil
Administrative Code of Illinois (Department of Revenue Law)
and the State Comptroller pursuant to Section 31 of the State
Comptroller Act.
(g) The delinquent claims due and payable to the State
required to be withheld under this Section and the
administrative fee under subsection (b) have priority over any
secured or unsecured claim on cash winnings, except claims for
federal or State taxes that are required to be withheld under
federal or State law claims of delinquent child support.
(230 ILCS 10/13.3 new)
Sec. 13.3. Withholding of delinquent claims due and
payable to the State; signs; statement.
(a) Each licensed owner may post signs with a statement
regarding withholding of delinquent claims due and payable to
the State, the text of which shall be determined by rule by the
Department of Revenue, at the following locations in each
facility at which gambling is conducted by the licensed owner:
(1) each entrance and exit;

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