99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB4629

 

Introduced , by Rep. Dan Brady

 

SYNOPSIS AS INTRODUCED:
 
230 ILCS 40/25
230 ILCS 40/58

    Amends the Video Gaming Act. Provides that a licensed truck stop establishment that sells at retail more than 50,000 gallons of diesel or biodiesel fuel per month may operate up to 10 video gaming terminals on its premises at any time. Provides that all other licensed truck stop establishments may operate no more than 5 video gaming terminals. Provides that the restricted area in which video gaming terminals must be located may be monitored in real time via a closed-circuit video camera system by at least one on-premises employee who is over 21 years of age (as an alternative to having the entrance of the restricted area within the view of such an employee).


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning gaming.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Video Gaming Act is amended by changing
5Sections 25 and 58 as follows:
 
6    (230 ILCS 40/25)
7    Sec. 25. Restriction of licensees.
8    (a) Manufacturer. A person may not be licensed as a
9manufacturer of a video gaming terminal in Illinois unless the
10person has a valid manufacturer's license issued under this
11Act. A manufacturer may only sell video gaming terminals for
12use in Illinois to persons having a valid distributor's
13license.
14    (b) Distributor. A person may not sell, distribute, or
15lease or market a video gaming terminal in Illinois unless the
16person has a valid distributor's license issued under this Act.
17A distributor may only sell video gaming terminals for use in
18Illinois to persons having a valid distributor's or terminal
19operator's license.
20    (c) Terminal operator. A person may not own, maintain, or
21place a video gaming terminal unless he has a valid terminal
22operator's license issued under this Act. A terminal operator
23may only place video gaming terminals for use in Illinois in

 

 

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1licensed establishments, licensed truck stop establishments,
2licensed fraternal establishments, and licensed veterans
3establishments. No terminal operator may give anything of
4value, including but not limited to a loan or financing
5arrangement, to a licensed establishment, licensed truck stop
6establishment, licensed fraternal establishment, or licensed
7veterans establishment as any incentive or inducement to locate
8video terminals in that establishment. Of the after-tax profits
9from a video gaming terminal, 50% shall be paid to the terminal
10operator and 50% shall be paid to the licensed establishment,
11licensed truck stop establishment, licensed fraternal
12establishment, or licensed veterans establishment,
13notwithstanding any agreement to the contrary. A video terminal
14operator that violates one or more requirements of this
15subsection is guilty of a Class 4 felony and is subject to
16termination of his or her license by the Board.
17    (d) Licensed technician. A person may not service,
18maintain, or repair a video gaming terminal in this State
19unless he or she (1) has a valid technician's license issued
20under this Act, (2) is a terminal operator, or (3) is employed
21by a terminal operator, distributor, or manufacturer.
22    (d-5) Licensed terminal handler. No person, including, but
23not limited to, an employee or independent contractor working
24for a manufacturer, distributor, supplier, technician, or
25terminal operator licensed pursuant to this Act, shall have
26possession or control of a video gaming terminal, or access to

 

 

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1the inner workings of a video gaming terminal, unless that
2person possesses a valid terminal handler's license issued
3under this Act.
4    (e) Licensed establishment. No video gaming terminal may be
5placed in any licensed establishment, licensed veterans
6establishment, licensed truck stop establishment, or licensed
7fraternal establishment unless the owner or agent of the owner
8of the licensed establishment, licensed veterans
9establishment, licensed truck stop establishment, or licensed
10fraternal establishment has entered into a written use
11agreement with the terminal operator for placement of the
12terminals. A copy of the use agreement shall be on file in the
13terminal operator's place of business and available for
14inspection by individuals authorized by the Board. A licensed
15establishment, licensed truck stop establishment, licensed
16veterans establishment, or licensed fraternal establishment
17may operate up to 5 video gaming terminals on its premises at
18any time. A licensed truck stop establishment that sells at
19retail more than 50,000 gallons of diesel or biodiesel fuel per
20month may operate up to 10 video gaming terminals on its
21premises at any time. A licensed truck stop establishment may
22meet the fuel sales requirement by showing that estimated
23future sales or past sales average at least 50,000 gallons per
24month. All other licensed truck stop establishments may operate
25no more than 5 video gaming terminals on its premises at any
26time.

 

 

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1    (f) (Blank).
2    (g) Financial interest restrictions. As used in this Act,
3"substantial interest" in a partnership, a corporation, an
4organization, an association, a business, or a limited
5liability company means:
6        (A) When, with respect to a sole proprietorship, an
7    individual or his or her spouse owns, operates, manages, or
8    conducts, directly or indirectly, the organization,
9    association, or business, or any part thereof; or
10        (B) When, with respect to a partnership, the individual
11    or his or her spouse shares in any of the profits, or
12    potential profits, of the partnership activities; or
13        (C) When, with respect to a corporation, an individual
14    or his or her spouse is an officer or director, or the
15    individual or his or her spouse is a holder, directly or
16    beneficially, of 5% or more of any class of stock of the
17    corporation; or
18        (D) When, with respect to an organization not covered
19    in (A), (B) or (C) above, an individual or his or her
20    spouse is an officer or manages the business affairs, or
21    the individual or his or her spouse is the owner of or
22    otherwise controls 10% or more of the assets of the
23    organization; or
24        (E) When an individual or his or her spouse furnishes
25    5% or more of the capital, whether in cash, goods, or
26    services, for the operation of any business, association,

 

 

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1    or organization during any calendar year; or
2        (F) When, with respect to a limited liability company,
3    an individual or his or her spouse is a member, or the
4    individual or his or her spouse is a holder, directly or
5    beneficially, of 5% or more of the membership interest of
6    the limited liability company.
7    For purposes of this subsection (g), "individual" includes
8all individuals or their spouses whose combined interest would
9qualify as a substantial interest under this subsection (g) and
10whose activities with respect to an organization, association,
11or business are so closely aligned or coordinated as to
12constitute the activities of a single entity.
13    (h) Location restriction. A licensed establishment,
14licensed truck stop establishment, licensed fraternal
15establishment, or licensed veterans establishment that is (i)
16located within 1,000 feet of a facility operated by an
17organization licensee licensed under the Illinois Horse Racing
18Act of 1975 or the home dock of a riverboat licensed under the
19Riverboat Gambling Act or (ii) located within 100 feet of a
20school or a place of worship under the Religious Corporation
21Act, is ineligible to operate a video gaming terminal. The
22location restrictions in this subsection (h) do not apply if
23(A) a facility operated by an organization licensee, a school,
24or a place of worship moves to or is established within the
25restricted area after a licensed establishment, licensed truck
26stop establishment, licensed fraternal establishment, or

 

 

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1licensed veterans establishment becomes licensed under this
2Act or (B) a school or place of worship moves to or is
3established within the restricted area after a licensed
4establishment, licensed truck stop establishment, licensed
5fraternal establishment, or licensed veterans establishment
6obtains its original liquor license. For the purpose of this
7subsection, "school" means an elementary or secondary public
8school, or an elementary or secondary private school registered
9with or recognized by the State Board of Education.
10    Notwithstanding the provisions of this subsection (h), the
11Board may waive the requirement that a licensed establishment,
12licensed truck stop establishment, licensed fraternal
13establishment, or licensed veterans establishment not be
14located within 1,000 feet from a facility operated by an
15organization licensee licensed under the Illinois Horse Racing
16Act of 1975 or the home dock of a riverboat licensed under the
17Riverboat Gambling Act. The Board shall not grant such waiver
18if there is any common ownership or control, shared business
19activity, or contractual arrangement of any type between the
20establishment and the organization licensee or owners licensee
21of a riverboat. The Board shall adopt rules to implement the
22provisions of this paragraph.
23    (i) Undue economic concentration. In addition to
24considering all other requirements under this Act, in deciding
25whether to approve the operation of video gaming terminals by a
26terminal operator in a location, the Board shall consider the

 

 

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1impact of any economic concentration of such operation of video
2gaming terminals. The Board shall not allow a terminal operator
3to operate video gaming terminals if the Board determines such
4operation will result in undue economic concentration. For
5purposes of this Section, "undue economic concentration" means
6that a terminal operator would have such actual or potential
7influence over video gaming terminals in Illinois as to:
8        (1) substantially impede or suppress competition among
9    terminal operators;
10        (2) adversely impact the economic stability of the
11    video gaming industry in Illinois; or
12        (3) negatively impact the purposes of the Video Gaming
13    Act.
14    The Board shall adopt rules concerning undue economic
15concentration with respect to the operation of video gaming
16terminals in Illinois. The rules shall include, but not be
17limited to, (i) limitations on the number of video gaming
18terminals operated by any terminal operator within a defined
19geographic radius and (ii) guidelines on the discontinuation of
20operation of any such video gaming terminals the Board
21determines will cause undue economic concentration.
22    (j) The provisions of the Illinois Antitrust Act are fully
23and equally applicable to the activities of any licensee under
24this Act.
25(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,
26eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
 

 

 

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1    (230 ILCS 40/58)
2    Sec. 58. Location of terminals. Video gaming terminals
3must be located in an area restricted to persons over 21 years
4of age the entrance to which is within the view of, or
5monitored in real-time via a closed-circuit video camera system
6by, at least one on-premises employee, who is over 21 years of
7age, of the establishment in which they are located. The
8placement of video gaming terminals in licensed
9establishments, licensed truck stop establishments, licensed
10fraternal establishments, and licensed veterans establishments
11shall be subject to the rules promulgated by the Board pursuant
12to the Illinois Administrative Procedure Act.
13(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)