Public Act 096-1479
 
SB0744 EnrolledLRB096 06812 AMC 16898 b



    AN ACT concerning gaming.

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



 
    Section 5. The Video Gaming
Act is amended  by changing 
Sections 5 and 25 as follows:
 
    (230 ILCS 40/5)

    Sec. 5. Definitions.   As used in this Act:

    "Board" means the Illinois Gaming Board.

    "Credit" means 5, 10, or 25 cents either won or purchased 
by a player.

    "Distributor" means an individual, partnership, or 
corporation licensed under
this Act to buy, sell, lease, or 
distribute video gaming terminals or major
components or parts 
of video gaming terminals to or from terminal
operators.

    "Terminal operator" means an individual, partnership or 
corporation that is
licensed under this Act and that owns, 
services, and maintains video
gaming terminals for placement in 
licensed establishments, licensed fraternal
establishments, or 
licensed veterans establishments.

    "Licensed technician" means an individual
who
is licensed 
under this Act to repair,
service, and maintain
video gaming 
terminals.

    "Licensed terminal handler" means a person, including but 
not limited to an employee or independent contractor working 
for a manufacturer, distributor, supplier, technician, or 
terminal operator, who is licensed under this Act to possess or 
control a video gaming terminal or to have access to the inner 
workings of a video gaming terminal. A licensed terminal 
handler does not include an individual, partnership, or 
corporation defined as a manufacturer, distributor, supplier, 
technician, or terminal operator under this Act. 
    "Manufacturer" means an individual, partnership, or 
corporation that is
licensed under this Act and that 
manufactures or assembles video gaming
terminals.

    "Supplier" means an individual, partnership, or 
corporation that is
licensed under this Act to supply major 
components or parts to video gaming
terminals to licensed

terminal operators.

    "Net terminal income" means money put into a video gaming 
terminal minus
credits paid out to players.

    "Video gaming terminal" means any electronic video game 
machine
that, upon insertion of cash, is available to play or 
simulate the play of
a video game, including but not limited to 
video poker, line up, and blackjack, as
authorized by the Board 
utilizing a video display and microprocessors in
which the 
player may receive free games or credits that can be
redeemed 
for cash.  The term does not include a machine that directly

dispenses coins, cash, or tokens or is for amusement purposes 
only.

    "Licensed establishment" means any licensed retail 
establishment where
alcoholic liquor is drawn, poured, mixed, 
or otherwise served for consumption
on the premises and 
includes any such establishment that has a contractual 
relationship with an inter-track wagering location licensee 
licensed under the Illinois Horse Racing Act of 1975, provided 
any contractual relationship shall not include any transfer or 
offer of revenue from the operation of video gaming under this 
Act to any licensee licensed under the Illinois Horse Racing 
Act of 1975. Provided, however, that the licensed establishment 
that has such a contractual relationship with an inter-track 
wagering location licensee may not, itself, be (i) an 
inter-track wagering location licensee, (ii) the corporate 
parent or subsidiary of any licensee licensed under the 
Illinois Horse Racing Act of 1975, or (iii) the  corporate 
subsidiary of a corporation that is also the corporate parent 
or subsidiary of any licensee licensed under the Illinois Horse 
Racing Act of 1975. "Licensed establishment" does not include a 
facility operated by an organization licensee, an inter-track 
intertrack wagering licensee, or an inter-track intertrack 
wagering location licensee licensed under the Illinois Horse 
Racing Act of 1975 or a riverboat licensed under the Riverboat 
Gambling Act, except as provided in this paragraph.

    "Licensed fraternal establishment" means the location 
where a qualified
fraternal organization that derives its 
charter from a national fraternal
organization regularly 
meets.

    "Licensed veterans establishment" means the location where 
a qualified
veterans organization that derives its charter from 
a national veterans
organization regularly meets.

    "Licensed truck stop establishment" means a facility that 
is at least a
3-acre facility with a convenience store and with 
separate diesel
islands for fueling commercial motor vehicles 
and parking spaces for commercial
motor vehicles as defined in 
Section 18b-101 of the Illinois Vehicle Code.


(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
 


    (230 ILCS 40/25)


    Sec. 25. Restriction of licensees.

    (a) Manufacturer.  A person may not be licensed as a 
manufacturer of a
video gaming terminal in Illinois unless the 
person has a valid
manufacturer's license issued
under this 
Act.  A manufacturer may only sell video gaming terminals for 
use
in Illinois to
persons having a valid distributor's 
license.

    (b) Distributor.  A person may not sell, distribute, or 
lease
or market a video gaming terminal in Illinois unless the 
person has a valid
distributor's
license issued under this Act.  
A distributor may only sell video gaming
terminals for use in

Illinois to persons having a valid distributor's or terminal 
operator's
license.

    (c) Terminal operator.  A person may not own, maintain, or 
place a video gaming terminal unless he has a valid terminal 
operator's
license issued
under this Act.  A terminal operator 
may only place video gaming terminals for
use in
Illinois in 
licensed establishments, licensed truck stop establishments, 
licensed fraternal establishments,
and
licensed veterans 
establishments.
No terminal operator may give anything of 
value, including but not limited to
a loan or financing 
arrangement, to a licensed establishment, licensed truck stop 
establishment,
licensed fraternal establishment, or licensed 
veterans establishment as
any incentive or inducement to locate 
video terminals in that establishment.
Of the after-tax profits

from a video gaming terminal, 50% shall be paid to the terminal

operator and 50% shall be paid to the licensed establishment, 
licensed truck stop establishment,
licensed fraternal 
establishment, or
licensed veterans establishment, 
notwithstanding nothwithstanding any agreement to the 
contrary.
No terminal
operator may own or have a substantial 
interest in more than 5% of the video
gaming terminals licensed 
in this State. A video terminal operator that violates one or 
more requirements of this subsection is guilty of a Class 4 
felony and is subject to termination of his or her license by 
the Board. 

    (d) Licensed technician. A person may not service, 
maintain, or repair a
video gaming terminal
in this State 
unless he or she (1) has a valid technician's license issued

under this Act, (2) is a terminal operator, or (3) is employed 
by a terminal
operator, distributor, or manufacturer.

    (d-5)   Licensed terminal handler.  No person, including, but 
not limited to, an employee or independent contractor working 
for a manufacturer, distributor, supplier, technician, or 
terminal operator licensed pursuant to this Act, shall have 
possession or control of a video gaming terminal, or access to 
the inner workings of a video gaming terminal, unless that 
person possesses a valid terminal handler's license issued 
under this Act. 
    (e) Licensed establishment.  No video gaming terminal may be 
placed in any licensed establishment, licensed veterans 
establishment, licensed truck stop establishment,
or licensed 
fraternal establishment
unless the owner
or agent of the owner 
of the licensed establishment, licensed veterans 
establishment, licensed truck stop establishment, or licensed

fraternal establishment has entered into a
written use 
agreement with the terminal operator for placement of the

terminals.  A copy of the use agreement shall be on file in the 
terminal
operator's place of business and available for 
inspection by individuals
authorized by the Board.  A licensed 
establishment, licensed truck stop establishment, licensed 
veterans establishment,
or
licensed
fraternal
establishment 
may operate up to 5 video gaming terminals on its premises at 
any
time.

    (f) (Blank).

    (g) Financial interest restrictions.
As used in this Act, 
"substantial interest" in a partnership, a corporation,  an

organization, an association, or a business means:


            (A) When, with respect to a sole proprietorship, an 
        individual or
his or her spouse owns, operates, 
        manages, or conducts, directly
or indirectly, the 
        organization, association, or business, or any part 
        thereof;
or


            (B) When, with respect to a partnership, the 
        individual or his or
her spouse shares in any of the 
        profits, or potential profits,
of the partnership 
        activities; or


            (C) When, with respect to a corporation, an 
        individual or his or her
spouse is an officer or 
        director, or the individual or his or her spouse is a 
        holder, directly or beneficially, of 5% or more of any 
        class
of stock of the corporation; or


            (D) When, with respect to an organization not 
        covered in (A), (B) or
(C) above, an individual or his 
        or her spouse is an officer or manages the
business 
        affairs, or the individual or his or her spouse is the

        owner of or otherwise controls 10% or more of the 
        assets of the organization;
or


            (E) When an individual or his or her spouse 
        furnishes
5% or more of the capital, whether in cash, 
        goods, or services, for the
operation of any business, 
        association, or organization during any calendar
year.

    (h) Location restriction.  A licensed establishment, 
licensed truck stop establishment, licensed
fraternal

establishment, or licensed veterans establishment that is (i) 
located within 1,000
feet of a facility operated by an 
organizational licensee or , an inter-track intertrack wagering 
licensee, an intertrack wagering location licensee licensed 
under the Illinois Horse Racing Act of 1975, or the home dock 
of a riverboat licensed under the Riverboat
Gambling Act or 
(ii) located within with a 100 feet of a school or a place of 
worship under the Religious Corporation Act,  is ineligible  to 
operate a video gaming terminal.


    (i) The provisions of the Illinois Antitrust Act are fully 
and equally applicable to the activities of any licensee under 
this Act. 

(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, 
eff. 7-13-09; revised 8-17-09.)

 

    Section 99. Effective date. This Act takes effect upon 
becoming law.