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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Video Gaming
Act is amended by changing | ||||||
5 | Sections 5, 15, 20, 25, 30, 35, 45, 55, 57, and 78 as follows: | ||||||
6 | (230 ILCS 40/5)
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7 | Sec. 5. Definitions. As used in this Act:
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8 | "Board" means the Illinois Gaming Board.
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9 | "Credit" means one, 5, 10, or 25 cents either won or | ||||||
10 | purchased by a player.
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11 | "Distributor" means an individual, partnership, or | ||||||
12 | corporation , or limited liability company licensed under
this | ||||||
13 | Act to buy, sell, lease, or distribute video gaming terminals | ||||||
14 | or major
components or parts of video gaming terminals to or | ||||||
15 | from terminal
operators.
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16 | "Terminal operator" means an individual, partnership , or | ||||||
17 | corporation , or limited liability company that is
licensed | ||||||
18 | under this Act and that owns, services, and maintains video
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19 | gaming terminals for placement in licensed establishments, | ||||||
20 | licensed truck stop establishments, licensed fraternal
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21 | establishments, or licensed veterans establishments.
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22 | "Licensed technician" means an individual
who
is licensed | ||||||
23 | under this Act to repair,
service, and maintain
video gaming |
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1 | terminals.
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2 | "Licensed terminal handler" means a person, including but | ||||||
3 | not limited to an employee or independent contractor working | ||||||
4 | for a manufacturer, distributor, supplier, technician, or | ||||||
5 | terminal operator, who is licensed under this Act to possess or | ||||||
6 | control a video gaming terminal or to have access to the inner | ||||||
7 | workings of a video gaming terminal. A licensed terminal | ||||||
8 | handler does not include an individual, partnership, or | ||||||
9 | corporation , or limited liability company defined as a | ||||||
10 | manufacturer, distributor, supplier, technician, or terminal | ||||||
11 | operator under this Act. | ||||||
12 | "Manufacturer" means an individual, partnership, or | ||||||
13 | corporation , or limited liability company that is
licensed | ||||||
14 | under this Act and that manufactures or assembles video gaming
| ||||||
15 | terminals.
| ||||||
16 | "Supplier" means an individual, partnership, or | ||||||
17 | corporation , or limited liability company that is
licensed | ||||||
18 | under this Act to supply major components or parts to video | ||||||
19 | gaming
terminals to licensed
terminal operators.
| ||||||
20 | "Net terminal income" means money put into a video gaming | ||||||
21 | terminal minus
credits paid out to players.
| ||||||
22 | "Video gaming terminal" means any electronic video game | ||||||
23 | machine
that, upon insertion of cash, is available to play or | ||||||
24 | simulate the play of
a video game, including but not limited to | ||||||
25 | video poker, line up, and blackjack, as
authorized by the Board | ||||||
26 | utilizing a video display and microprocessors in
which the |
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| |||||||
1 | player may receive free games or credits that can be
redeemed | ||||||
2 | for cash. The term does not include a machine that directly
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3 | dispenses coins, cash, or tokens or is for amusement purposes | ||||||
4 | only.
| ||||||
5 | "Licensed establishment" means any licensed retail | ||||||
6 | establishment where
alcoholic liquor is drawn, poured, mixed, | ||||||
7 | or otherwise served for consumption
on the premises. "Licensed | ||||||
8 | establishment" does not include a facility operated by an | ||||||
9 | organization licensee, an intertrack wagering licensee, or an | ||||||
10 | intertrack wagering location licensee licensed under the | ||||||
11 | Illinois Horse Racing Act of 1975 or a riverboat licensed under | ||||||
12 | the Riverboat Gambling Act.
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13 | "Licensed fraternal establishment" means the location | ||||||
14 | where a qualified
fraternal organization that derives its | ||||||
15 | charter from a national fraternal
organization regularly | ||||||
16 | meets.
| ||||||
17 | "Licensed veterans establishment" means the location where | ||||||
18 | a qualified
veterans organization that derives its charter from | ||||||
19 | a national veterans
organization regularly meets.
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20 | "Licensed truck stop establishment" means a facility (i) | ||||||
21 | that is at least a
3-acre facility with a convenience store , | ||||||
22 | (ii) and with separate diesel
islands for fueling commercial | ||||||
23 | motor vehicles , (iii) that sells at retail more than 10,000 | ||||||
24 | gallons of diesel or biodiesel fuel per month, and (iv) with | ||||||
25 | and parking spaces for commercial
motor vehicles . "Commercial | ||||||
26 | motor vehicles" has the same meaning as defined in Section |
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| |||||||
1 | 18b-101 of the Illinois Vehicle Code. The requirement of item | ||||||
2 | (iii) of this paragraph may be met by showing that estimated | ||||||
3 | future sales or past sales average at least 10,000 gallons per | ||||||
4 | month.
| ||||||
5 | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.) | ||||||
6 | (230 ILCS 40/15)
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7 | Sec. 15. Minimum requirements for
licensing and | ||||||
8 | registration. Every video gaming terminal offered for
play | ||||||
9 | shall first be
tested and approved pursuant to the rules of the | ||||||
10 | Board, and
each video gaming terminal offered in this State for | ||||||
11 | play shall conform to an
approved
model. The Board may utilize | ||||||
12 | the services of an independent outside testing laboratory for | ||||||
13 | the
examination of video gaming machines and associated | ||||||
14 | equipment as required
by this Section. Every video gaming | ||||||
15 | terminal offered in this State for play must meet minimum | ||||||
16 | standards set by an independent outside testing laboratory | ||||||
17 | approved by the Board. Each approved model shall, at a minimum, | ||||||
18 | meet the following
criteria:
| ||||||
19 | (1) It must conform to all requirements of federal law | ||||||
20 | and
regulations, including FCC Class A
Emissions | ||||||
21 | Standards.
| ||||||
22 | (2) It must theoretically pay out a mathematically | ||||||
23 | demonstrable percentage
during the expected lifetime of | ||||||
24 | the machine
of all amounts played, which must not be less | ||||||
25 | than 80%. The Board shall establish a maximum payout |
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1 | percentage for approved models by rule. Video gaming
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2 | terminals that may be affected by skill must meet this | ||||||
3 | standard when using a
method of play that will provide the | ||||||
4 | greatest return to the player over a
period of continuous | ||||||
5 | play.
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6 | (3) It must use a random selection process to determine | ||||||
7 | the outcome of
each play of a game. The random selection | ||||||
8 | process must meet 99% confidence
limits using a standard | ||||||
9 | chi-squared test for (randomness) goodness of fit.
| ||||||
10 | (4) It must display an accurate representation of the | ||||||
11 | game outcome.
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12 | (5) It must not automatically alter pay tables or any | ||||||
13 | function of the
video gaming terminal based on internal | ||||||
14 | computation of hold percentage or have
any means of | ||||||
15 | manipulation that affects the random selection process or
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16 | probabilities of winning a game.
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17 | (6) It must not be adversely affected by static | ||||||
18 | discharge or other
electromagnetic interference.
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19 | (7) It must be capable of detecting and displaying the | ||||||
20 | following
conditions
during idle states or on demand: power | ||||||
21 | reset; door open; and door just closed.
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22 | (8) It must have the capacity to display complete play | ||||||
23 | history
(outcome, intermediate play steps, credits | ||||||
24 | available, bets placed, credits
paid, and credits cashed | ||||||
25 | out) for the most recent game played and 10 games
prior
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26 | thereto.
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1 | (9) The theoretical payback percentage of a video | ||||||
2 | gaming terminal must
not be
capable of being changed | ||||||
3 | without making a hardware or software change in
the video | ||||||
4 | gaming terminal , either on site or via the central | ||||||
5 | communications system .
| ||||||
6 | (10) Video gaming terminals must be designed so that | ||||||
7 | replacement of
parts or modules required for normal | ||||||
8 | maintenance does not necessitate
replacement of the | ||||||
9 | electromechanical meters.
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10 | (11) It must have nonresettable meters housed in a | ||||||
11 | locked area of the
terminal that
keep a permanent record of | ||||||
12 | all cash inserted into the machine, all winnings
made by | ||||||
13 | the terminal printer, credits played in for video gaming | ||||||
14 | terminals, and
credits won by video gaming players. The | ||||||
15 | video gaming terminal must provide
the means for on-demand | ||||||
16 | display of stored information as determined by the
Board.
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17 | (12) Electronically stored meter information required | ||||||
18 | by this Section
must be preserved for a minimum of 180 days | ||||||
19 | after a power loss to the service.
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20 | (13) It must have one or more mechanisms that accept | ||||||
21 | cash in the
form of
bills. The mechanisms shall be designed | ||||||
22 | to prevent obtaining credits without
paying by stringing, | ||||||
23 | slamming, drilling, or other means. If such attempts at | ||||||
24 | physical tampering are made, the video gaming terminal | ||||||
25 | shall suspend itself from operating until reset.
| ||||||
26 | (14) It shall have accounting software that keeps an |
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1 | electronic record
which includes, but is not limited to, | ||||||
2 | the following: total cash inserted
into the video gaming | ||||||
3 | terminal; the value of winning tickets claimed by
players; | ||||||
4 | the
total credits played; the total
credits awarded
by a | ||||||
5 | video gaming terminal; and pay back percentage credited to | ||||||
6 | players of each video game.
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7 | (15) It shall be linked by a central communications | ||||||
8 | system
to provide
auditing program information as approved | ||||||
9 | by the Board. The central communications system shall use a | ||||||
10 | standard industry protocol, as defined by the Gaming | ||||||
11 | Standards Association, and shall have the functionality to | ||||||
12 | enable the Board or its designee to activate or deactivate | ||||||
13 | individual gaming devices from the central communications | ||||||
14 | system. In no event may the
communications system approved | ||||||
15 | by the Board limit participation to only one
manufacturer | ||||||
16 | of video gaming terminals by either the cost in | ||||||
17 | implementing
the necessary program modifications to | ||||||
18 | communicate or the inability to
communicate with the | ||||||
19 | central communications system.
| ||||||
20 | (16) The Board, in its discretion, may require video | ||||||
21 | gaming terminals to display Amber Alert messages if the | ||||||
22 | Board makes a finding that it would be economically and | ||||||
23 | technically feasible and pose no risk to the integrity and | ||||||
24 | security of the central communications system and video | ||||||
25 | gaming terminals.
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26 | The Board may adopt rules to establish additional criteria |
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1 | to preserve the integrity and security of video gaming in this | ||||||
2 | State. The central communications system vendor may not hold | ||||||
3 | any license issued by the Board under this Act. | ||||||
4 | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.) | ||||||
5 | (230 ILCS 40/20)
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6 | Sec. 20. Direct dispensing of receipt tickets only. A video | ||||||
7 | gaming
terminal may not
directly dispense coins, cash, tokens, | ||||||
8 | or any other article of exchange or
value except for receipt | ||||||
9 | tickets. Tickets shall be dispensed by
pressing the ticket | ||||||
10 | dispensing button on the video gaming terminal at the end
of | ||||||
11 | one's turn or play. The ticket shall indicate the total amount | ||||||
12 | of credits
and the cash award, the time of day in a 24-hour | ||||||
13 | format showing hours and
minutes, the date, the
terminal serial | ||||||
14 | number, the sequential number of the ticket, and an encrypted
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15 | validation number from which the validity of the prize may be | ||||||
16 | determined.
The player shall turn in this ticket to the | ||||||
17 | appropriate
person at the licensed establishment, licensed | ||||||
18 | truck stop establishment, licensed fraternal establishment,
or
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19 | licensed veterans establishment
to receive the cash award. The | ||||||
20 | cost
of the credit shall be one cent, 5 cents, 10 cents, or 25 | ||||||
21 | cents, and the maximum
wager played per hand shall not exceed | ||||||
22 | $2.
No cash award for the maximum wager on any
individual hand | ||||||
23 | shall exceed $500.
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24 | (Source: P.A. 96-34, eff. 7-13-09.)
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1 | (230 ILCS 40/25)
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2 | Sec. 25. Restriction of licensees.
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3 | (a) Manufacturer. A person may not be licensed as a | ||||||
4 | manufacturer of a
video gaming terminal in Illinois unless the | ||||||
5 | person has a valid
manufacturer's license issued
under this | ||||||
6 | Act. A manufacturer may only sell video gaming terminals for | ||||||
7 | use
in Illinois to
persons having a valid distributor's | ||||||
8 | license.
| ||||||
9 | (b) Distributor. A person may not sell, distribute, or | ||||||
10 | lease
or market a video gaming terminal in Illinois unless the | ||||||
11 | person has a valid
distributor's
license issued under this Act. | ||||||
12 | A distributor may only sell video gaming
terminals for use in
| ||||||
13 | Illinois to persons having a valid distributor's or terminal | ||||||
14 | operator's
license.
| ||||||
15 | (c) Terminal operator. A person may not own, maintain, or | ||||||
16 | place a video gaming terminal unless he has a valid terminal | ||||||
17 | operator's
license issued
under this Act. A terminal operator | ||||||
18 | may only place video gaming terminals for
use in
Illinois in | ||||||
19 | licensed establishments, licensed truck stop establishments, | ||||||
20 | licensed fraternal establishments,
and
licensed veterans | ||||||
21 | establishments.
No terminal operator may give anything of | ||||||
22 | value, including but not limited to
a loan or financing | ||||||
23 | arrangement, to a licensed establishment, licensed truck stop | ||||||
24 | establishment,
licensed fraternal establishment, or licensed | ||||||
25 | veterans establishment as
any incentive or inducement to locate | ||||||
26 | video terminals in that establishment.
Of the after-tax profits
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1 | from a video gaming terminal, 50% shall be paid to the terminal
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2 | operator and 50% shall be paid to the licensed establishment, | ||||||
3 | licensed truck stop establishment,
licensed fraternal | ||||||
4 | establishment, or
licensed veterans establishment, | ||||||
5 | notwithstanding nothwithstanding any agreement to the | ||||||
6 | contrary.
No terminal
operator may own or have a substantial | ||||||
7 | interest in more than 5% of the video
gaming terminals licensed | ||||||
8 | in this State. A video terminal operator that violates one or | ||||||
9 | more requirements of this subsection is guilty of a Class 4 | ||||||
10 | felony and is subject to termination of his or her license by | ||||||
11 | the Board.
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12 | (d) Licensed technician. A person may not service, | ||||||
13 | maintain, or repair a
video gaming terminal
in this State | ||||||
14 | unless he or she (1) has a valid technician's license issued
| ||||||
15 | under this Act, (2) is a terminal operator, or (3) is employed | ||||||
16 | by a terminal
operator, distributor, or manufacturer.
| ||||||
17 | (d-5) Licensed terminal handler. No person, including, but | ||||||
18 | not limited to, an employee or independent contractor working | ||||||
19 | for a manufacturer, distributor, supplier, technician, or | ||||||
20 | terminal operator licensed pursuant to this Act, shall have | ||||||
21 | possession or control of a video gaming terminal, or access to | ||||||
22 | the inner workings of a video gaming terminal, unless that | ||||||
23 | person possesses a valid terminal handler's license issued | ||||||
24 | under this Act. | ||||||
25 | (e) Licensed establishment. No video gaming terminal may be | ||||||
26 | placed in any licensed establishment, licensed veterans |
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1 | establishment, licensed truck stop establishment,
or licensed | ||||||
2 | fraternal establishment
unless the owner
or agent of the owner | ||||||
3 | of the licensed establishment, licensed veterans | ||||||
4 | establishment, licensed truck stop establishment, or licensed
| ||||||
5 | fraternal establishment has entered into a
written use | ||||||
6 | agreement with the terminal operator for placement of the
| ||||||
7 | terminals. A copy of the use agreement shall be on file in the | ||||||
8 | terminal
operator's place of business and available for | ||||||
9 | inspection by individuals
authorized by the Board. A licensed | ||||||
10 | establishment, licensed truck stop establishment, licensed | ||||||
11 | veterans establishment,
or
licensed
fraternal
establishment | ||||||
12 | may operate up to 5 video gaming terminals on its premises at | ||||||
13 | any
time.
| ||||||
14 | (f) (Blank).
| ||||||
15 | (g) Financial interest restrictions.
As used in this Act, | ||||||
16 | "substantial interest" in a partnership, a corporation, an
| ||||||
17 | organization, an association, or a business , or a limited | ||||||
18 | liability company means:
| ||||||
19 | (A) When, with respect to a sole proprietorship, an | ||||||
20 | individual or
his or her spouse owns, operates, manages, or | ||||||
21 | conducts, directly
or indirectly, the organization, | ||||||
22 | association, or business, or any part thereof;
or
| ||||||
23 | (B) When, with respect to a partnership, the individual | ||||||
24 | or his or
her spouse shares in any of the profits, or | ||||||
25 | potential profits,
of the partnership activities; or
| ||||||
26 | (C) When, with respect to a corporation, an individual |
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| |||||||
1 | or his or her
spouse is an officer or director, or the | ||||||
2 | individual or his or her spouse is a holder, directly or | ||||||
3 | beneficially, of 5% or more of any class
of stock of the | ||||||
4 | corporation; or
| ||||||
5 | (D) When, with respect to an organization not covered | ||||||
6 | in (A), (B) or
(C) above, an individual or his or her | ||||||
7 | spouse is an officer or manages the
business affairs, or | ||||||
8 | the individual or his or her spouse is the
owner of or | ||||||
9 | otherwise controls 10% or more of the assets of the | ||||||
10 | organization;
or
| ||||||
11 | (E) When an individual or his or her spouse furnishes
| ||||||
12 | 5% or more of the capital, whether in cash, goods, or | ||||||
13 | services, for the
operation of any business, association, | ||||||
14 | or organization during any calendar
year ; or . | ||||||
15 | (F) When, with respect to a limited liability company, | ||||||
16 | an individual or his or her
spouse is a member, or the | ||||||
17 | individual or his or her spouse is a holder, directly or | ||||||
18 | beneficially, of 5% or more of the membership interest of | ||||||
19 | the limited liability company.
| ||||||
20 | For purposes of this subsection (g), "individual" includes | ||||||
21 | all individuals or their spouses whose combined interest would | ||||||
22 | qualify as a substantial interest under this subsection (g) and | ||||||
23 | whose activities with respect to an organization, association, | ||||||
24 | or business are so closely aligned or coordinated as to | ||||||
25 | constitute the activities of a single entity. | ||||||
26 | (h) Location restriction. A licensed establishment, |
| |||||||
| |||||||
1 | licensed truck stop establishment, licensed
fraternal
| ||||||
2 | establishment, or licensed veterans establishment that is (i) | ||||||
3 | located within 1,000
feet of a facility operated by an | ||||||
4 | organization organizational licensee, an inter-track | ||||||
5 | intertrack wagering licensee, or an inter-track intertrack | ||||||
6 | wagering location licensee licensed under the Illinois Horse | ||||||
7 | Racing Act of 1975 or the home dock of a riverboat licensed | ||||||
8 | under the Riverboat
Gambling Act or (ii) located within with a | ||||||
9 | 100 feet of a school or a place of worship under the Religious | ||||||
10 | Corporation Act, is ineligible to operate a video gaming | ||||||
11 | terminal. The location restrictions in this subsection (h) do | ||||||
12 | not apply if a facility operated by an organization licensee, | ||||||
13 | an inter-track wagering licensee, or an inter-track wagering | ||||||
14 | location licensee, a school, or a place of worship moves to or | ||||||
15 | is established within the restricted area after a licensed | ||||||
16 | establishment, licensed truck stop establishment, licensed | ||||||
17 | fraternal establishment, or licensed veterans establishment | ||||||
18 | becomes licensed under this Act. For the purpose of this | ||||||
19 | subsection, "school" means an elementary or secondary public | ||||||
20 | school, or an elementary or secondary private school registered | ||||||
21 | with or recognized by the State Board of Education. | ||||||
22 | Notwithstanding the provisions of this subsection (h), the | ||||||
23 | Board may waive the requirement that a licensed establishment, | ||||||
24 | licensed truck stop establishment, licensed fraternal | ||||||
25 | establishment, or licensed veterans establishment not be | ||||||
26 | located within 1,000 feet from a facility operated by an |
| |||||||
| |||||||
1 | organization licensee, an inter-track wagering licensee, or an | ||||||
2 | inter-track wagering location licensee licensed under the | ||||||
3 | Illinois Horse Racing Act of 1975 or the home dock of a | ||||||
4 | riverboat licensed under the Riverboat Gambling Act. The Board | ||||||
5 | shall not grant such waiver if there is any common ownership or | ||||||
6 | control, shared business activity, or contractual arrangement | ||||||
7 | of any type between the establishment and the organization | ||||||
8 | licensee, inter-track wagering licensee, inter-track wagering | ||||||
9 | location licensee, or owners licensee of a riverboat. The Board | ||||||
10 | shall adopt rules to implement the provisions of this | ||||||
11 | paragraph. | ||||||
12 | (i) Undue economic concentration. In addition to | ||||||
13 | considering all other requirements under this Act, in deciding | ||||||
14 | whether to approve the operation of video gaming terminals by a | ||||||
15 | terminal operator in a location, the Board shall consider the | ||||||
16 | impact of any economic concentration of such operation of video | ||||||
17 | gaming terminals. The Board shall not allow a terminal operator | ||||||
18 | to operate video gaming terminals if the Board determines such | ||||||
19 | operation will result in undue economic concentration. For | ||||||
20 | purposes of this Section, "undue economic concentration" means | ||||||
21 | that a terminal operator would have such actual or potential | ||||||
22 | influence over video gaming terminals in Illinois as to: | ||||||
23 | (1) substantially impede or suppress competition among | ||||||
24 | terminal operators; | ||||||
25 | (2) adversely impact the economic stability of the | ||||||
26 | video gaming industry in Illinois; or |
| |||||||
| |||||||
1 | (3) negatively impact the purposes of the Video Gaming | ||||||
2 | Act. | ||||||
3 | The Board shall adopt rules concerning undue economic | ||||||
4 | concentration with respect to the operation of video gaming | ||||||
5 | terminals in Illinois. The rules shall include, but not be | ||||||
6 | limited to, (i) limitations on the number of video gaming | ||||||
7 | terminals operated by any terminal operator within a defined | ||||||
8 | geographic radius and (ii) guidelines on the discontinuation of | ||||||
9 | operation of any such video gaming terminals the Board | ||||||
10 | determines will cause undue economic concentration.
| ||||||
11 | (j) (i) The provisions of the Illinois Antitrust Act are | ||||||
12 | fully and equally applicable to the activities of any licensee | ||||||
13 | under this Act.
| ||||||
14 | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, | ||||||
15 | eff. 7-13-09; revised 8-17-09.)
| ||||||
16 | (230 ILCS 40/30)
| ||||||
17 | Sec. 30. Multiple types of licenses prohibited. A video | ||||||
18 | gaming
terminal
manufacturer may not be licensed as a video | ||||||
19 | gaming terminal
operator or own, manage, or control a licensed
| ||||||
20 | establishment, licensed truck stop establishment, licensed | ||||||
21 | fraternal establishment, or licensed veterans
establishment, | ||||||
22 | and shall be licensed to sell only to persons having a valid | ||||||
23 | distributor's license or, if the manufacturer also holds a | ||||||
24 | valid distributor's license, to sell, distribute, lease, or | ||||||
25 | market to persons having a valid terminal operator's license |
| |||||||
| |||||||
1 | only to sell to distributors . A video
gaming terminal | ||||||
2 | distributor may not be licensed as a
video gaming terminal | ||||||
3 | operator or own, manage, or
control a
licensed establishment, | ||||||
4 | licensed truck stop establishment, licensed fraternal | ||||||
5 | establishment, or licensed
veterans
establishment, and shall | ||||||
6 | only contract with a licensed terminal
operator. A video gaming | ||||||
7 | terminal operator may not be licensed as
a video
gaming | ||||||
8 | terminal manufacturer or distributor or own, manage, or control | ||||||
9 | a
licensed establishment, licensed truck stop establishment, | ||||||
10 | licensed fraternal establishment, or licensed
veterans
| ||||||
11 | establishment, and shall be licensed only to contract with | ||||||
12 | licensed
distributors and licensed establishments, licensed | ||||||
13 | truck stop establishments,
licensed fraternal
establishments,
| ||||||
14 | and licensed veterans establishments. An owner or manager of a
| ||||||
15 | licensed establishment, licensed truck stop establishment, | ||||||
16 | licensed fraternal
establishment, or licensed
veterans
| ||||||
17 | establishment may not be licensed as a video gaming terminal
| ||||||
18 | manufacturer, distributor, or operator, and shall only | ||||||
19 | contract with a
licensed operator to place and service this | ||||||
20 | equipment.
| ||||||
21 | (Source: P.A. 96-34, eff. 7-13-09.) | ||||||
22 | (230 ILCS 40/35)
| ||||||
23 | Sec. 35. Display of license; confiscation; violation as | ||||||
24 | felony. | ||||||
25 | (a) Each
video gaming terminal shall be licensed by the |
| |||||||
| |||||||
1 | Board before placement
or operation on the premises of a | ||||||
2 | licensed establishment, licensed truck stop
establishment, | ||||||
3 | licensed
fraternal establishment, or licensed veterans | ||||||
4 | establishment. The license of
each video gaming terminal shall | ||||||
5 | be maintained
at the location where the video gaming terminal | ||||||
6 | is operated. Failure to do so
is a petty offense with a fine
| ||||||
7 | not to exceed $100.
Any licensed establishment, licensed truck | ||||||
8 | stop establishment, licensed
fraternal establishment, or | ||||||
9 | licensed
veterans establishment
used for the conduct of | ||||||
10 | gambling games in violation of this Act shall be
considered a | ||||||
11 | gambling place in violation of Section 28-3 of the Criminal
| ||||||
12 | Code of 1961. Every gambling device found in
a licensed | ||||||
13 | establishment, licensed truck stop establishment, licensed | ||||||
14 | fraternal
establishment, or licensed
veterans establishment | ||||||
15 | operating gambling games in violation of this
Act shall be | ||||||
16 | subject to seizure, confiscation, and destruction as provided
| ||||||
17 | in Section 28-5 of the Criminal Code of 1961.
Any license | ||||||
18 | issued under the Liquor Control Act
of 1934 to any owner or | ||||||
19 | operator of a licensed establishment, licensed truck
stop | ||||||
20 | establishment, licensed
fraternal establishment, or licensed | ||||||
21 | veterans establishment that operates or
permits the operation | ||||||
22 | of a video gaming terminal within its establishment in
| ||||||
23 | violation of this Act shall be immediately revoked.
No person | ||||||
24 | may own, operate, have in his or her possession or custody or | ||||||
25 | under
his or her control, or permit to be kept in any place | ||||||
26 | under his or her
possession or control, any
device that awards |
| |||||||
| |||||||
1 | credits and contains a circuit, meter, or switch capable of
| ||||||
2 | removing and recording the removal of credits when the award of | ||||||
3 | credits is
dependent upon chance. A violation of this Section | ||||||
4 | is a Class 4 felony. All
devices that are owned, operated, or | ||||||
5 | possessed in violation of this Section are
hereby declared to | ||||||
6 | be public nuisances and shall be subject to seizure,
| ||||||
7 | confiscation, and destruction as provided in Section 28-5 of | ||||||
8 | the Criminal Code
of 1961.
The provisions of this Section do | ||||||
9 | not apply to devices or electronic video
game terminals | ||||||
10 | licensed pursuant to this Act. A video gaming terminal operated | ||||||
11 | for amusement only and bearing a valid amusement tax sticker | ||||||
12 | issued prior to the effective date of this amendatory Act of | ||||||
13 | the 96th General Assembly shall not be subject to this Section | ||||||
14 | until the sooner of (i) the expiration of the amusement tax | ||||||
15 | sticker or (ii) 30 days after the Board establishes that the | ||||||
16 | central communications system is functional.
| ||||||
17 | (b) (1) The odds of winning each video game shall be posted | ||||||
18 | on or near each video gaming terminal. The manner in which the | ||||||
19 | odds are calculated and how they are posted shall be determined | ||||||
20 | by the Board by rule. | ||||||
21 | (2) No video gaming terminal licensed under this Act may be | ||||||
22 | played except during the legal hours of operation allowed for | ||||||
23 | the consumption of alcoholic beverages at the licensed | ||||||
24 | establishment, licensed fraternal establishment, or licensed | ||||||
25 | veterans establishment. A licensed establishment, licensed | ||||||
26 | fraternal establishment, or licensed veterans establishment |
| |||||||
| |||||||
1 | that violates this subsection is subject to termination of its | ||||||
2 | license by the Board. | ||||||
3 | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
| ||||||
4 | (230 ILCS 40/45)
| ||||||
5 | Sec. 45. Issuance of license.
| ||||||
6 | (a) The burden is upon each applicant to
demonstrate his | ||||||
7 | suitability for licensure. Each video gaming terminal
| ||||||
8 | manufacturer, distributor, supplier, operator, handler, | ||||||
9 | licensed establishment, licensed truck stop establishment, | ||||||
10 | licensed
fraternal
establishment, and licensed veterans | ||||||
11 | establishment shall be
licensed by the Board.
The Board may | ||||||
12 | issue or deny a license under this Act to any person pursuant | ||||||
13 | to the same criteria set forth in Section 9 of the Riverboat | ||||||
14 | Gambling Act.
| ||||||
15 | (a-5) The Board shall not grant a license to a person who | ||||||
16 | has facilitated, enabled, or participated in the use of | ||||||
17 | coin-operated devices for gambling purposes or who is under the | ||||||
18 | significant influence or control of such a person. For the | ||||||
19 | purposes of this Act, "facilitated, enabled, or participated in | ||||||
20 | the use of coin-operated amusement devices for gambling | ||||||
21 | purposes" means that the person has been convicted of any | ||||||
22 | violation of Article 28 of the Criminal Code of 1961. If there | ||||||
23 | is pending legal action against a person for any such | ||||||
24 | violation, then the Board shall delay the licensure of that | ||||||
25 | person until the legal action is resolved. |
| |||||||
| |||||||
1 | (b) Each person seeking and possessing a license as a video | ||||||
2 | gaming terminal manufacturer, distributor, supplier, operator, | ||||||
3 | handler, licensed establishment, licensed truck stop | ||||||
4 | establishment, licensed fraternal establishment, or licensed | ||||||
5 | veterans establishment shall submit to a background | ||||||
6 | investigation conducted by the Board with the assistance of the | ||||||
7 | State Police or other law enforcement. The background | ||||||
8 | investigation shall include each beneficiary of a trust, each | ||||||
9 | partner of a partnership, and each director and officer and all | ||||||
10 | stockholders of 5% or more in a parent or subsidiary | ||||||
11 | corporation of a video gaming terminal manufacturer, | ||||||
12 | distributor, supplier, operator, or licensed establishment, | ||||||
13 | licensed truck stop establishment, licensed fraternal | ||||||
14 | establishment, or licensed veterans establishment. | ||||||
15 | (c) Each person seeking and possessing a license as a video | ||||||
16 | gaming terminal manufacturer, distributor, supplier, operator, | ||||||
17 | handler, licensed establishment, licensed truck stop | ||||||
18 | establishment, licensed fraternal establishment, or licensed | ||||||
19 | veterans establishment shall disclose the identity of every | ||||||
20 | person, association, trust, or corporation , or limited | ||||||
21 | liability company having a greater than 1% direct or indirect | ||||||
22 | pecuniary interest in the video gaming terminal operation for | ||||||
23 | to which the license is sought. If the disclosed entity is a | ||||||
24 | trust, the application shall disclose the names and addresses | ||||||
25 | of the beneficiaries; if a corporation, the names and addresses | ||||||
26 | of all stockholders and directors; if a limited liability |
| |||||||
| |||||||
1 | company, the names and addresses of all members; or if a | ||||||
2 | partnership, the names and addresses of all partners, both | ||||||
3 | general and limited. | ||||||
4 | (d) No person may be licensed as a video gaming terminal | ||||||
5 | manufacturer, distributor, supplier, operator, handler, | ||||||
6 | licensed establishment, licensed truck stop establishment, | ||||||
7 | licensed fraternal establishment, or licensed veterans | ||||||
8 | establishment if that person has been found by the Board to: | ||||||
9 | (1) have a background, including a criminal record, | ||||||
10 | reputation, habits, social or business associations, or | ||||||
11 | prior activities that pose a threat to the public interests | ||||||
12 | of the State or to the security and integrity of video | ||||||
13 | gaming; | ||||||
14 | (2) create or enhance the dangers of unsuitable, | ||||||
15 | unfair, or illegal practices, methods, and activities in | ||||||
16 | the conduct of video gaming; or | ||||||
17 | (3) present questionable business practices and | ||||||
18 | financial arrangements incidental to the conduct of video | ||||||
19 | gaming activities. | ||||||
20 | (e) Any applicant for any license under this Act has the | ||||||
21 | burden of proving his or her qualifications to the satisfaction | ||||||
22 | of the Board. The Board may adopt rules to establish additional | ||||||
23 | qualifications and requirements to preserve the integrity and | ||||||
24 | security of video gaming in this State. | ||||||
25 | (f) A non-refundable application fee shall be paid at the | ||||||
26 | time an
application for a license is filed with the Board in |
| |||||||
| |||||||
1 | the following amounts:
| ||||||
2 | (1) Manufacturer ..........................$5,000
| ||||||
3 | (2) Distributor ...........................$5,000
| ||||||
4 | (3) Terminal operator .....................$5,000
| ||||||
5 | (4) Supplier ..............................$2,500
| ||||||
6 | (5) Technician ..............................$100
| ||||||
7 | (6) Terminal Handler ..............................$50 | ||||||
8 | (g) The Board shall establish an
annual fee for each | ||||||
9 | license not to exceed the following: | ||||||
10 | (1) Manufacturer .........................$10,000
| ||||||
11 | (2) Distributor ..........................$10,000
| ||||||
12 | (3) Terminal operator .....................$5,000
| ||||||
13 | (4) Supplier ..............................$2,000
| ||||||
14 | (5) Technician ..............................$100
| ||||||
15 | (6) Licensed establishment, licensed truck stop
| ||||||
16 | establishment, licensed fraternal establishment,
| ||||||
17 | or licensed veterans establishment ..............$100
| ||||||
18 | (7) Video gaming terminal ...................$100
| ||||||
19 | (8) Terminal Handler ..............................$50
| ||||||
20 | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, | ||||||
21 | eff. 7-13-09; revised 8-17-09.)
| ||||||
22 | (230 ILCS 40/55)
| ||||||
23 | Sec. 55. Precondition for licensed location establishment . | ||||||
24 | In all cases of
application for a licensed location | ||||||
25 | establishment ,
to operate a video gaming terminal,
each |
| |||||||
| |||||||
1 | licensed establishment licensed truck stop establishment , | ||||||
2 | licensed
fraternal establishment, or licensed veterans
| ||||||
3 | establishment
shall
possess a valid liquor license issued by | ||||||
4 | the Illinois Liquor Control Commission
in effect at the time of | ||||||
5 | application
and at all times thereafter during which a video
| ||||||
6 | gaming terminal is made available to the public for play at | ||||||
7 | that location. Video gaming terminals in a licensed location | ||||||
8 | shall be
operated only during the same hours of operation | ||||||
9 | generally permitted to holders of a license under the Liquor | ||||||
10 | Control Act of 1934 within the unit of local government in | ||||||
11 | which they are located. A licensed truck stop establishment | ||||||
12 | that does not hold a liquor license may operate video gaming | ||||||
13 | terminals on a continuous basis. A licensed fraternal | ||||||
14 | establishment or licensed veterans establishment that does not | ||||||
15 | hold a liquor license may operate video gaming terminals if (i) | ||||||
16 | the establishment is located in a county with a population | ||||||
17 | between 6,500 and 7,000, based on the 2000 U.S. Census, (ii) | ||||||
18 | the county prohibits by ordinance the sale of alcohol, and | ||||||
19 | (iii) the establishment is in a portion of the county where the | ||||||
20 | sale of alcohol is prohibited.
| ||||||
21 | (Source: P.A. 96-34, eff. 7-13-09.) | ||||||
22 | (230 ILCS 40/57)
| ||||||
23 | Sec. 57. Insurance. Each terminal operator licensed | ||||||
24 | establishment, licensed truck stop
establishment, licensed | ||||||
25 | fraternal
establishment, and licensed veterans establishment |
| |||||||
| |||||||
1 | shall maintain liability insurance on
any gaming device that it | ||||||
2 | places in a licensed video gaming location on its premises in
| ||||||
3 | an amount set by the Board.
| ||||||
4 | (Source: P.A. 96-34, eff. 7-13-09.) | ||||||
5 | (230 ILCS 40/78)
| ||||||
6 | Sec. 78. Authority of the Illinois Gaming Board. | ||||||
7 | (a) The Board shall have jurisdiction over and shall | ||||||
8 | supervise all gaming operations governed by this Act. The Board | ||||||
9 | shall have all powers necessary and proper to fully and | ||||||
10 | effectively execute the provisions of this Act, including, but | ||||||
11 | not limited to, the following: | ||||||
12 | (1) To investigate applicants and determine the | ||||||
13 | eligibility of applicants for licenses and to select among | ||||||
14 | competing applicants the applicants which best serve the | ||||||
15 | interests of the citizens of Illinois. | ||||||
16 | (2) To have jurisdiction and supervision over all video | ||||||
17 | gaming operations in this State and all persons in | ||||||
18 | establishments where video gaming operations are | ||||||
19 | conducted. | ||||||
20 | (3) To adopt rules for the purpose of administering the | ||||||
21 | provisions of this Act and to prescribe rules, regulations, | ||||||
22 | and conditions under which all video gaming in the State | ||||||
23 | shall be conducted. Such rules and regulations are to | ||||||
24 | provide for the prevention of practices detrimental to the | ||||||
25 | public interest and for the best interests of video gaming, |
| |||||||
| |||||||
1 | including rules and regulations regarding the inspection | ||||||
2 | of such establishments and the review of any permits or | ||||||
3 | licenses necessary to operate an establishment under any | ||||||
4 | laws or regulations applicable to establishments and to | ||||||
5 | impose penalties for violations of this Act and its rules.
| ||||||
6 | (b) The Within 60 days after the effective date of this | ||||||
7 | amendatory Act of the 96th General Assembly, the Board shall | ||||||
8 | adopt emergency rules to administer this Act in accordance with | ||||||
9 | Section 5-45 of the Illinois Administrative Procedure Act. For | ||||||
10 | the purposes of the Illinois Administrative Procedure Act, the | ||||||
11 | General Assembly finds that the adoption of rules to implement | ||||||
12 | this Act is deemed an emergency and necessary to the public | ||||||
13 | interest, safety, and welfare.
| ||||||
14 | (Source: P.A. 96-38, eff. 7-13-09.) | ||||||
15 | Section 97. Severability. The provisions of this Act are | ||||||
16 | severable under Section 1.31 of the Statute on Statutes.
| ||||||
17 | Section 99. Effective date. This Act takes effect upon | ||||||
18 | becoming law.
|