230 ILCS 45/25-120.3: Licensure required.

(a) Except as otherwise provided in this Section, a person may not offer fantasy contests in this State unless the person is licensed by the Board as a fantasy contest operator. No party other than an owner or key person of a licensee may receive revenue share from the operation of fantasy contests without holding a fantasy contest operator license. A person that knowingly offers fantasy contests in violation of this subsection is guilty of a Class 4 felony.

(b) A fantasy contest operator that was offering contests to persons located in the State before the effective date of this amendatory Act of the 104th General Assembly may continue to offer contests to persons located in the State until 90 days after the effective date of rules implementing this amendatory Act of the 104th General Assembly. The Board shall issue a temporary operating permit to a fantasy contest operator that was offering contests to persons located in this State before the effective date of this amendatory Act of the 104th General Assembly if the fantasy contest operator files an application for licensure with the Board and pays the required license application fee within 90 days of the effective date of rules implementing this amendatory Act of the 104th General Assembly, subject to Board rules. A holder of a temporary operating permit may continue to offer fantasy sports contests until a final licensing decision is made by the Board.

(c) The burden is upon each applicant to demonstrate the applicant's suitability for licensure. An applicant for a license issued under this Act shall submit an application to the Board in the form the Board requires. Each person seeking licensure shall submit to a background investigation conducted by the Board with the assistance of the Illinois State Police or other law enforcement.

(1) To the extent that the corporate structure of the applicant allows, the background investigation shall include any or all of the following as the Board deems appropriate or as provided by rule for each category of licensure:

(A) each beneficiary of a trust;

(B) each partner of a partnership;

(C) each member of a limited liability company;

(D) each director and officer of a publicly or nonpublicly held corporation;

(E) each stockholder of a nonpublicly held corporation;

(F) each stockholder of 5% or more of a publicly held corporation; or

(G) each stockholder of 5% or more in a parent or subsidiary corporation.

(2) Each applicant shall disclose the identity of every person, association, trust, corporation, or limited liability company having a greater than 1% direct or indirect pecuniary interest in the fantasy contest for which the license is sought. If the disclosed entity is a trust, the application shall disclose the names and addresses of the beneficiaries; if a corporation, the names and addresses of all stockholders and directors; if a limited liability company, the names and addresses of all members; or if a partnership, the names and addresses of all partners, both general and limited.

(d) To be eligible for a fantasy contest operator license under this Section, an applicant and its key persons must at minimum:

(1) be at least 21 years of age;

(2) not have been convicted of a felony offense or a violation of Article 28 of the Criminal Code of 1961 or the Criminal Code of 2012 or a similar statute of any other jurisdiction;

(3) not have been convicted of a crime involving dishonesty or moral turpitude;

(4) have demonstrated a level of skill or knowledge that the Board determines to be necessary in order to operate fantasy contests; and

(5) have met standards for the holding of a license as adopted by rules of the Board.

(e) No person may be licensed if that person has been found by the Board to:

(1) have a background, including a criminal record, reputation, habits, social or business associations, or prior activities that pose a threat to the public interests of the State or to the security and integrity of fantasy contest operations;

(2) create or enhance the dangers of unsuitable, unfair, or illegal practices, methods, and activities in the conduct of fantasy contest operations; or

(3) present questionable business practices and financial arrangements incidental to the conduct of fantasy contest operations.

(f) An applicant shall not be denied licensure on the basis of having previously offered or conducted single-player contests against the operator, so long as no such contests were offered by the applicant after the effective date of this amendatory Act of the 104th General Assembly.

(g) On receipt of a completed application and the required fee, the Board shall conduct the necessary background investigation to determine if the applicant meets the qualifications for licensure. On completion of the necessary background investigation, the Board shall either issue a license or deny the application. The Board shall establish procedures to conduct hearings for any person denied licensure.

(h) The Board has designated 2 categories of fantasy contest operator, a large fantasy contest operator and a small fantasy contest operator. A small fantasy contest operator shall pay an application and initial license fee of $500 at the time of application. A large fantasy contest operator shall pay an application and initial license fee of $7,500 at the time of application.

(i) The term of an initial license shall be 2 years.

(j) A large fantasy contest operator shall pay a fantasy contest operator license renewal fee of $5,000 within 30 days of the renewal of a license. A small fantasy contest operator shall pay a fantasy contest operator license renewal fee of $300 within 30 days of the renewal of a license. The license shall be renewed every 2 years.