99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB3453

 

Introduced 11/16/2016, by Sen. Terry Link

 

SYNOPSIS AS INTRODUCED:
 
230 ILCS 40/5
230 ILCS 40/25
230 ILCS 40/30
230 ILCS 40/35
230 ILCS 40/45
230 ILCS 40/55
230 ILCS 40/58
230 ILCS 40/60
720 ILCS 5/28-1  from Ch. 38, par. 28-1

    Amends the Video Gaming Act. Allows for video gaming by organization licensees and inter-track wagering location licensees under the Illinois Horse Racing Act of 1975; makes conforming changes throughout the Video Gaming Act and in the Criminal Code of 2012. Removes references to organization licensees and inter-track wagering location licensees from the definition of "licensed establishment". Provides that an organization licensee may operate up to 100 video gaming terminals on its premises at any time and an inter-track wagering location licensee may operate up to 5 video gaming terminals at the inter-track wagering location licensee's location or on the premises of the organization licensee with which they are affiliated. Requires organization licensees and inter-track wagering location licensees that are directly owned by the organization licensee to deposit 40% of their share of the after-tax profits from video gaming into the horsemen purse accounts associated with their respective racetrack proportionally by handle for each breed. Makes other changes.


LRB099 23980 AMC 51558 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3453LRB099 23980 AMC 51558 b

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 the
5Sections 5, 25, 30, 35, 45, 55, 58, and 60 as follows:
 
6    (230 ILCS 40/5)
7    Sec. 5. Definitions. As used in this Act:
8    "Board" means the Illinois Gaming Board.
9    "Credit" means one, 5, 10, or 25 cents either won or
10purchased by a player.
11    "Distributor" means an individual, partnership,
12corporation, or limited liability company licensed under this
13Act to buy, sell, lease, or distribute video gaming terminals
14or major components or parts of video gaming terminals to or
15from terminal operators.
16    "Electronic card" means a card purchased from a licensed
17establishment, licensed fraternal establishment, licensed
18veterans establishment, or licensed truck stop establishment
19for use in that establishment as a substitute for cash in the
20conduct of gaming on a video gaming terminal.
21    "Electronic voucher" means a voucher printed by an
22electronic video game machine that is redeemable in the
23licensed establishment for which it was issued.

 

 

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1    "Terminal operator" means an individual, partnership,
2corporation, or limited liability company that is licensed
3under this Act and that owns, services, and maintains video
4gaming terminals for placement in licensed establishments,
5licensed truck stop establishments, licensed fraternal
6establishments, organization licensee locations, inter-track
7wagering location licensee locations, or licensed veterans
8establishments.
9    "Licensed technician" means an individual who is licensed
10under this Act to repair, service, and maintain video gaming
11terminals.
12    "Licensed terminal handler" means a person, including but
13not limited to an employee or independent contractor working
14for a manufacturer, distributor, supplier, technician, or
15terminal operator, who is licensed under this Act to possess or
16control a video gaming terminal or to have access to the inner
17workings of a video gaming terminal. A licensed terminal
18handler does not include an individual, partnership,
19corporation, or limited liability company defined as a
20manufacturer, distributor, supplier, technician, or terminal
21operator under this Act.
22    "Manufacturer" means an individual, partnership,
23corporation, or limited liability company that is licensed
24under this Act and that manufactures or assembles video gaming
25terminals.
26    "Supplier" means an individual, partnership, corporation,

 

 

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1or limited liability company that is licensed under this Act to
2supply major components or parts to video gaming terminals to
3licensed terminal operators.
4    "Net terminal income" means money put into a video gaming
5terminal minus credits paid out to players.
6    "Video gaming terminal" means any electronic video game
7machine that, upon insertion of cash, electronic cards or
8vouchers, or any combination thereof, is available to play or
9simulate the play of a video game, including but not limited to
10video poker, line up, and blackjack, as authorized by the Board
11utilizing a video display and microprocessors in which the
12player may receive free games or credits that can be redeemed
13for cash. The term does not include a machine that directly
14dispenses coins, cash, or tokens or is for amusement purposes
15only.
16    "Licensed establishment" means any licensed retail
17establishment where alcoholic liquor is drawn, poured, mixed,
18or otherwise served for consumption on the premises, whether
19the establishment operates on a nonprofit or for-profit basis.
20"Licensed establishment" includes any such establishment that
21has a contractual relationship with an inter-track wagering
22location licensee licensed under the Illinois Horse Racing Act
23of 1975, provided any contractual relationship shall not
24include any transfer or offer of revenue from the operation of
25video gaming under this Act to any licensee licensed under the
26Illinois Horse Racing Act of 1975. Provided, however, that the

 

 

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1licensed establishment that has such a contractual
2relationship with an inter-track wagering location licensee
3may not, itself, be (i) an inter-track wagering location
4licensee, (ii) the corporate parent or subsidiary of any
5licensee licensed under the Illinois Horse Racing Act of 1975,
6or (iii) the corporate subsidiary of a corporation that is also
7the corporate parent or subsidiary of any licensee licensed
8under the Illinois Horse Racing Act of 1975. "Licensed
9establishment" does not include a facility operated by an
10organization licensee, an inter-track wagering licensee, or an
11inter-track wagering location licensee licensed under the
12Illinois Horse Racing Act of 1975 or a riverboat licensed under
13the Riverboat Gambling Act, except as provided in this
14paragraph. The changes made to this definition by Public Act
1598-587 are declarative of existing law.
16    "Licensed fraternal establishment" means the location
17where a qualified fraternal organization that derives its
18charter from a national fraternal organization regularly
19meets.
20    "Licensed veterans establishment" means the location where
21a qualified veterans organization that derives its charter from
22a national veterans organization regularly meets.
23    "Licensed truck stop establishment" means a facility (i)
24that is at least a 3-acre facility with a convenience store,
25(ii) with separate diesel islands for fueling commercial motor
26vehicles, (iii) that sells at retail more than 10,000 gallons

 

 

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1of diesel or biodiesel fuel per month, and (iv) with parking
2spaces for commercial motor vehicles. "Commercial motor
3vehicles" has the same meaning as defined in Section 18b-101 of
4the Illinois Vehicle Code. The requirement of item (iii) of
5this paragraph may be met by showing that estimated future
6sales or past sales average at least 10,000 gallons per month.
7    "Organization licensee" means an organization licensee as
8defined in the Illinois Horse Racing Act of 1975.
9    "Inter-track wagering location licensee" means an
10inter-track wagering location licensee as defined in the
11Illinois Horse Racing Act of 1975.
12(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13;
1398-582, eff. 8-27-13; 98-587, eff. 8-27-13; 98-756, eff.
147-16-14.)
 
15    (230 ILCS 40/25)
16    Sec. 25. Restriction of licensees.
17    (a) Manufacturer. A person may not be licensed as a
18manufacturer of a video gaming terminal in Illinois unless the
19person has a valid manufacturer's license issued under this
20Act. A manufacturer may only sell video gaming terminals for
21use in Illinois to persons having a valid distributor's
22license.
23    (b) Distributor. A person may not sell, distribute, or
24lease or market a video gaming terminal in Illinois unless the
25person has a valid distributor's license issued under this Act.

 

 

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1A distributor may only sell video gaming terminals for use in
2Illinois to persons having a valid distributor's or terminal
3operator's license.
4    (c) Terminal operator. A person may not own, maintain, or
5place a video gaming terminal unless he has a valid terminal
6operator's license issued under this Act. A terminal operator
7may only place video gaming terminals for use in Illinois in
8licensed establishments, licensed truck stop establishments,
9licensed fraternal establishments, and licensed veterans
10establishments. No terminal operator may give anything of
11value, including but not limited to a loan or financing
12arrangement, to a licensed establishment, licensed truck stop
13establishment, licensed fraternal establishment, or licensed
14veterans establishment as any incentive or inducement to locate
15video terminals in that establishment. Of the after-tax profits
16from a video gaming terminal, 50% shall be paid to the terminal
17operator and 50% shall be paid to the licensed establishment,
18licensed truck stop establishment, licensed fraternal
19establishment, or licensed veterans establishment,
20notwithstanding any agreement to the contrary. Organization
21licensee locations and inter-track wagering location licensee
22locations that are directly owned by the organization licensee
23shall deposit 40% of their share of the after-tax profits into
24the horsemen purse accounts associated with their respective
25racetrack proportionally by handle for each breed. A video
26terminal operator that violates one or more requirements of

 

 

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1this subsection is guilty of a Class 4 felony and is subject to
2termination of his or her license by the Board.
3    (d) Licensed technician. A person may not service,
4maintain, or repair a video gaming terminal in this State
5unless he or she (1) has a valid technician's license issued
6under this Act, (2) is a terminal operator, or (3) is employed
7by a terminal operator, distributor, or manufacturer.
8    (d-5) Licensed terminal handler. No person, including, but
9not limited to, an employee or independent contractor working
10for a manufacturer, distributor, supplier, technician, or
11terminal operator licensed pursuant to this Act, shall have
12possession or control of a video gaming terminal, or access to
13the inner workings of a video gaming terminal, unless that
14person possesses a valid terminal handler's license issued
15under this Act.
16    (e) Licensed establishment. No video gaming terminal may be
17placed in any licensed establishment, licensed veterans
18establishment, licensed truck stop establishment, organization
19licensee location, inter-track wagering location licensee
20location, or licensed fraternal establishment unless the owner
21or agent of the owner of the licensed establishment, licensed
22veterans establishment, licensed truck stop establishment,
23organization licensee, inter-track wagering location licensee,
24or licensed fraternal establishment has entered into a written
25use agreement with the terminal operator for placement of the
26terminals. A copy of the use agreement shall be on file in the

 

 

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1terminal operator's place of business and available for
2inspection by individuals authorized by the Board. A licensed
3establishment, licensed truck stop establishment, licensed
4veterans establishment, or licensed fraternal establishment
5may operate up to 5 video gaming terminals on its premises at
6any time, except that an organization licensee licensed under
7the Illinois Horse Racing Act of 1975 may operate up to 100
8video gaming terminals at its organization licensee location at
9any time and an inter-track wagering location licensee may
10operate up to 5 video gaming terminals at the inter-track
11wagering location licensee's location or on the premises of the
12organization licensee with which they are affiliated.
13    (f) (Blank).
14    (g) Financial interest restrictions. As used in this Act,
15"substantial interest" in a partnership, a corporation, an
16organization, an association, a business, or a limited
17liability company means:
18        (A) When, with respect to a sole proprietorship, an
19    individual or his or her spouse owns, operates, manages, or
20    conducts, directly or indirectly, the organization,
21    association, or business, or any part thereof; or
22        (B) When, with respect to a partnership, the individual
23    or his or her spouse shares in any of the profits, or
24    potential profits, of the partnership activities; or
25        (C) When, with respect to a corporation, an individual
26    or his or her spouse is an officer or director, or the

 

 

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1    individual or his or her spouse is a holder, directly or
2    beneficially, of 5% or more of any class of stock of the
3    corporation; or
4        (D) When, with respect to an organization not covered
5    in (A), (B) or (C) above, an individual or his or her
6    spouse is an officer or manages the business affairs, or
7    the individual or his or her spouse is the owner of or
8    otherwise controls 10% or more of the assets of the
9    organization; or
10        (E) When an individual or his or her spouse furnishes
11    5% or more of the capital, whether in cash, goods, or
12    services, for the operation of any business, association,
13    or organization during any calendar year; or
14        (F) When, with respect to a limited liability company,
15    an individual or his or her spouse is a member, or the
16    individual or his or her spouse is a holder, directly or
17    beneficially, of 5% or more of the membership interest of
18    the limited liability company.
19    For purposes of this subsection (g), "individual" includes
20all individuals or their spouses whose combined interest would
21qualify as a substantial interest under this subsection (g) and
22whose activities with respect to an organization, association,
23or business are so closely aligned or coordinated as to
24constitute the activities of a single entity.
25    (h) Location restriction. A licensed establishment,
26licensed truck stop establishment, licensed fraternal

 

 

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1establishment, organization licensee location, inter-track
2wagering location licensee location, or licensed veterans
3establishment that is (i) located within 1,000 feet of a
4facility operated by an organization licensee licensed under
5the Illinois Horse Racing Act of 1975 or the home dock of a
6riverboat licensed under the Riverboat Gambling Act or (ii)
7located within 100 feet of a school or a place of worship under
8the Religious Corporation Act, is ineligible to operate a video
9gaming terminal. The location restrictions in this subsection
10(h) do not apply if (A) a facility operated by an organization
11licensee, a school, or a place of worship moves to or is
12established within the restricted area after a licensed
13establishment, licensed truck stop establishment, licensed
14fraternal establishment, organization licensee, inter-track
15wagering location licensee, or licensed veterans establishment
16becomes licensed under this Act or (B) a school or place of
17worship moves to or is established within the restricted area
18after a licensed establishment, licensed truck stop
19establishment, licensed fraternal establishment, organization
20licensee, inter-track wagering location licensee, or licensed
21veterans establishment obtains its original liquor license.
22For the purpose of this subsection, "school" means an
23elementary or secondary public school, or an elementary or
24secondary private school registered with or recognized by the
25State Board of Education.
26    Notwithstanding the provisions of this subsection (h), the

 

 

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1Board may waive the requirement that a licensed establishment,
2licensed truck stop establishment, licensed fraternal
3establishment, organization licensee location, inter-track
4wagering location licensee location, or licensed veterans
5establishment not be located within 1,000 feet from a facility
6operated by an organization licensee licensed under the
7Illinois Horse Racing Act of 1975 or the home dock of a
8riverboat licensed under the Riverboat Gambling Act. The Board
9shall not grant such waiver if there is any common ownership or
10control, shared business activity, or contractual arrangement
11of any type between the establishment and the organization
12licensee or owners licensee of a riverboat. The Board shall
13adopt rules to implement the provisions of this paragraph.
14    (i) Undue economic concentration. In addition to
15considering all other requirements under this Act, in deciding
16whether to approve the operation of video gaming terminals by a
17terminal operator in a location, the Board shall consider the
18impact of any economic concentration of such operation of video
19gaming terminals. The Board shall not allow a terminal operator
20to operate video gaming terminals if the Board determines such
21operation will result in undue economic concentration. For
22purposes of this Section, "undue economic concentration" means
23that a terminal operator would have such actual or potential
24influence over video gaming terminals in Illinois as to:
25        (1) substantially impede or suppress competition among
26    terminal operators;

 

 

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1        (2) adversely impact the economic stability of the
2    video gaming industry in Illinois; or
3        (3) negatively impact the purposes of the Video Gaming
4    Act.
5    The Board shall adopt rules concerning undue economic
6concentration with respect to the operation of video gaming
7terminals in Illinois. The rules shall include, but not be
8limited to, (i) limitations on the number of video gaming
9terminals operated by any terminal operator within a defined
10geographic radius and (ii) guidelines on the discontinuation of
11operation of any such video gaming terminals the Board
12determines will cause undue economic concentration.
13    (j) The provisions of the Illinois Antitrust Act are fully
14and equally applicable to the activities of any licensee under
15this Act.
16(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,
17eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
 
18    (230 ILCS 40/30)
19    Sec. 30. Multiple types of licenses prohibited. A video
20gaming terminal manufacturer may not be licensed as a video
21gaming terminal operator or own, manage, or control a licensed
22establishment, licensed truck stop establishment, licensed
23fraternal establishment, organization licensee location,
24inter-track wagering location licensee location, or licensed
25veterans establishment, and shall be licensed to sell only to

 

 

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1persons having a valid distributor's license or, if the
2manufacturer also holds a valid distributor's license, to sell,
3distribute, lease, or market to persons having a valid terminal
4operator's license. A video gaming terminal distributor may not
5be licensed as a video gaming terminal operator or own, manage,
6or control a licensed establishment, licensed truck stop
7establishment, licensed fraternal establishment, or licensed
8veterans establishment, and shall only contract with a licensed
9terminal operator. A video gaming terminal operator may not be
10licensed as a video gaming terminal manufacturer or distributor
11or own, manage, or control a licensed establishment, licensed
12truck stop establishment, licensed fraternal establishment, or
13licensed veterans establishment, and shall be licensed only to
14contract with licensed distributors and licensed
15establishments, licensed truck stop establishments, licensed
16fraternal establishments, and licensed veterans
17establishments. An owner or manager of a licensed
18establishment, licensed truck stop establishment, licensed
19fraternal establishment, or licensed veterans establishment
20may not be licensed as a video gaming terminal manufacturer,
21distributor, or operator, and shall only contract with a
22licensed operator to place and service this equipment.
23(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.)
 
24    (230 ILCS 40/35)
25    Sec. 35. Display of license; confiscation; violation as

 

 

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1felony.
2    (a) Each video gaming terminal shall be licensed by the
3Board before placement or operation on the premises of a
4licensed establishment, licensed truck stop establishment,
5licensed fraternal establishment, organization licensee
6location, inter-track wagering location licensee location, or
7licensed veterans establishment. The license of each video
8gaming terminal shall be maintained at the location where the
9video gaming terminal is operated. Failure to do so is a petty
10offense with a fine not to exceed $100. Any licensed
11establishment, licensed truck stop establishment, licensed
12fraternal establishment, organization licensee location,
13inter-track wagering location licensee location, or licensed
14veterans establishment used for the conduct of gambling games
15in violation of this Act shall be considered a gambling place
16in violation of Section 28-3 of the Criminal Code of 2012.
17Every gambling device found in a licensed establishment,
18licensed truck stop establishment, licensed fraternal
19establishment, organization licensee location, inter-track
20wagering location licensee location, or licensed veterans
21establishment operating gambling games in violation of this Act
22shall be subject to seizure, confiscation, and destruction as
23provided in Section 28-5 of the Criminal Code of 2012. Any
24license issued under the Liquor Control Act of 1934 to any
25owner or operator of a licensed establishment, licensed truck
26stop establishment, licensed fraternal establishment,

 

 

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1organization licensee location, inter-track wagering location
2licensee location, or licensed veterans establishment that
3operates or permits the operation of a video gaming terminal
4within its establishment in violation of this Act shall be
5immediately revoked. No person may own, operate, have in his or
6her possession or custody or under his or her control, or
7permit to be kept in any place under his or her possession or
8control, any device that awards credits and contains a circuit,
9meter, or switch capable of removing and recording the removal
10of credits when the award of credits is dependent upon chance.
11    Nothing in this Section shall be deemed to prohibit the use
12of a game device only if the game device is used in an activity
13that is not gambling under subsection (b) of Section 28-1 of
14the Criminal Code of 2012.
15    A violation of this Section is a Class 4 felony. All
16devices that are owned, operated, or possessed in violation of
17this Section are hereby declared to be public nuisances and
18shall be subject to seizure, confiscation, and destruction as
19provided in Section 28-5 of the Criminal Code of 2012.
20    The provisions of this Section do not apply to devices or
21electronic video game terminals licensed pursuant to this Act.
22A video gaming terminal operated for amusement only and bearing
23a valid amusement tax sticker shall not be subject to this
24Section until 30 days after the Board establishes that the
25central communications system is functional.
26    (b) (1) The odds of winning each video game shall be posted

 

 

SB3453- 16 -LRB099 23980 AMC 51558 b

1on or near each video gaming terminal. The manner in which the
2odds are calculated and how they are posted shall be determined
3by the Board by rule.
4    (2) No video gaming terminal licensed under this Act may be
5played except during the legal hours of operation allowed for
6the consumption of alcoholic beverages at the licensed
7establishment, licensed fraternal establishment, or licensed
8veterans establishment. No video gaming terminal licensed
9under this Act at a location operated by an organization
10licensee or inter-track wagering location licensee may be
11played except during the legal hours of operation allowed in
12the Illinois Horse Racing Act of 1975. A licensed
13establishment, licensed fraternal establishment, organization
14licensee, inter-track wagering location licensee, or licensed
15veterans establishment that violates this subsection is
16subject to termination of its license by the Board.
17(Source: P.A. 97-1150, eff. 1-25-13; 98-111, eff. 1-1-14.)
 
18    (230 ILCS 40/45)
19    Sec. 45. Issuance of license.
20    (a) The burden is upon each applicant to demonstrate his
21suitability for licensure. Each video gaming terminal
22manufacturer, distributor, supplier, operator, handler,
23licensed establishment, licensed truck stop establishment,
24licensed fraternal establishment, organization licensee,
25inter-track wagering location licensee, and licensed veterans

 

 

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1establishment shall be licensed by the Board. The Board may
2issue or deny a license under this Act to any person pursuant
3to the same criteria set forth in Section 9 of the Riverboat
4Gambling Act.
5    (a-5) The Board shall not grant a license to a person who
6has facilitated, enabled, or participated in the use of
7coin-operated devices for gambling purposes or who is under the
8significant influence or control of such a person. For the
9purposes of this Act, "facilitated, enabled, or participated in
10the use of coin-operated amusement devices for gambling
11purposes" means that the person has been convicted of any
12violation of Article 28 of the Criminal Code of 1961 or the
13Criminal Code of 2012. If there is pending legal action against
14a person for any such violation, then the Board shall delay the
15licensure of that person until the legal action is resolved.
16    (b) Each person seeking and possessing a license as a video
17gaming terminal manufacturer, distributor, supplier, operator,
18handler, licensed establishment, licensed truck stop
19establishment, licensed fraternal establishment, organization
20licensee, inter-track wagering location licensee, or licensed
21veterans establishment shall submit to a background
22investigation conducted by the Board with the assistance of the
23State Police or other law enforcement. To the extent that the
24corporate structure of the applicant allows, the background
25investigation shall include any or all of the following as the
26Board deems appropriate or as provided by rule for each

 

 

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1category of licensure: (i) each beneficiary of a trust, (ii)
2each partner of a partnership, (iii) each member of a limited
3liability company, (iv) each director and officer of a publicly
4or non-publicly held corporation, (v) each stockholder of a
5non-publicly held corporation, (vi) each stockholder of 5% or
6more of a publicly held corporation, or (vii) each stockholder
7of 5% or more in a parent or subsidiary corporation.
8    (c) Each person seeking and possessing a license as a video
9gaming terminal manufacturer, distributor, supplier, operator,
10handler, licensed establishment, licensed truck stop
11establishment, licensed fraternal establishment, organization
12licensee, inter-track wagering location licensee, or licensed
13veterans establishment shall disclose the identity of every
14person, association, trust, corporation, or limited liability
15company having a greater than 1% direct or indirect pecuniary
16interest in the video gaming terminal operation for which the
17license is sought. If the disclosed entity is a trust, the
18application shall disclose the names and addresses of the
19beneficiaries; if a corporation, the names and addresses of all
20stockholders and directors; if a limited liability company, the
21names and addresses of all members; or if a partnership, the
22names and addresses of all partners, both general and limited.
23    (d) No person may be licensed as a video gaming terminal
24manufacturer, distributor, supplier, operator, handler,
25licensed establishment, licensed truck stop establishment,
26licensed fraternal establishment, organization licensee,

 

 

SB3453- 19 -LRB099 23980 AMC 51558 b

1inter-track wagering location licensee, or licensed veterans
2establishment if that person has been found by the Board to:
3        (1) have a background, including a criminal record,
4    reputation, habits, social or business associations, or
5    prior activities that pose a threat to the public interests
6    of the State or to the security and integrity of video
7    gaming;
8        (2) create or enhance the dangers of unsuitable,
9    unfair, or illegal practices, methods, and activities in
10    the conduct of video gaming; or
11        (3) present questionable business practices and
12    financial arrangements incidental to the conduct of video
13    gaming activities.
14    (e) Any applicant for any license under this Act has the
15burden of proving his or her qualifications to the satisfaction
16of the Board. The Board may adopt rules to establish additional
17qualifications and requirements to preserve the integrity and
18security of video gaming in this State.
19    (f) A non-refundable application fee shall be paid at the
20time an application for a license is filed with the Board in
21the following amounts:
22        (1) Manufacturer..........................$5,000
23        (2) Distributor...........................$5,000
24        (3) Terminal operator.....................$5,000
25        (4) Supplier..............................$2,500
26        (5) Technician..............................$100

 

 

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1        (6) Terminal Handler..............................$50
2    (g) The Board shall establish an annual fee for each
3license not to exceed the following:
4        (1) Manufacturer.........................$10,000
5        (2) Distributor..........................$10,000
6        (3) Terminal operator.....................$5,000
7        (4) Supplier..............................$2,000
8        (5) Technician..............................$100
9        (6) Licensed establishment, licensed truck stop
10    establishment, licensed fraternal establishment,
11    organization licensee, inter-track wagering location
12    licensee, or licensed veterans establishment....$100
13        (7) Video gaming terminal...................$100
14        (8) Terminal Handler..............................$50
15    (h) A terminal operator and a licensed establishment,
16licensed truck stop establishment, licensed fraternal
17establishment, organization licensee, inter-track wagering
18location licensee, or licensed veterans establishment shall
19equally split the fees specified in item (7) of subsection (g).
20(Source: P.A. 97-1150, eff. 1-25-13; 98-31, eff. 6-24-13;
2198-587, eff. 8-27-13; 98-756, eff. 7-16-14.)
 
22    (230 ILCS 40/55)
23    Sec. 55. Precondition for licensed location. In all cases
24of application for a licensed location, to operate a video
25gaming terminal, each licensed establishment, licensed

 

 

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1fraternal establishment, or licensed veterans establishment
2shall possess a valid liquor license issued by the Illinois
3Liquor Control Commission in effect at the time of application
4and at all times thereafter during which a video gaming
5terminal is made available to the public for play at that
6location. Video gaming terminals in a licensed location shall
7be operated only during the same hours of operation generally
8permitted to holders of a license under the Liquor Control Act
9of 1934 within the unit of local government in which they are
10located. Organization licensees and inter-track wagering
11location licensees may operate video gaming terminals if they
12hold an organization license or inter-track wagering location
13license issued by the Illinois Racing Board. A licensed truck
14stop establishment that does not hold a liquor license may
15operate video gaming terminals on a continuous basis. A
16licensed fraternal establishment or licensed veterans
17establishment that does not hold a liquor license may operate
18video gaming terminals if (i) the establishment is located in a
19county with a population between 6,500 and 7,000, based on the
202000 U.S. Census, (ii) the county prohibits by ordinance the
21sale of alcohol, and (iii) the establishment is in a portion of
22the county where the sale of alcohol is prohibited. A licensed
23fraternal establishment or licensed veterans establishment
24that does not hold a liquor license may operate video gaming
25terminals if (i) the establishment is located in a municipality
26within a county with a population between 8,500 and 9,000 based

 

 

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1on the 2000 U.S. Census and (ii) the municipality or county
2prohibits or limits the sale of alcohol by ordinance in a way
3that prohibits the establishment from selling alcohol.
4(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10;
597-594, eff. 8-26-11.)
 
6    (230 ILCS 40/58)
7    Sec. 58. Location of terminals. Video gaming terminals
8must be located in an area restricted to persons over 21 years
9of age the entrance to which is within the view of at least one
10employee, who is over 21 years of age, of the establishment in
11which they are located. The placement of video gaming terminals
12in licensed establishments, licensed truck stop
13establishments, licensed fraternal establishments,
14organization licensee locations, inter-track wagering location
15licensee locations, and licensed veterans establishments shall
16be subject to the rules promulgated by the Board pursuant to
17the Illinois Administrative Procedure Act.
18(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
 
19    (230 ILCS 40/60)
20    Sec. 60. Imposition and distribution of tax.
21    (a) A tax of 30% is imposed on net terminal income and
22shall be collected by the Board.
23    (b) Of the tax collected under this Section, five-sixths
24shall be deposited into the Capital Projects Fund and one-sixth

 

 

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1shall be deposited into the Local Government Video Gaming
2Distributive Fund.
3    (c) Revenues generated from the play of video gaming
4terminals shall be deposited by the terminal operator, who is
5responsible for tax payments, in a specially created, separate
6bank account maintained by the video gaming terminal operator
7to allow for electronic fund transfers of moneys for tax
8payment.
9    (d) Each licensed establishment, licensed truck stop
10establishment, licensed fraternal establishment, organization
11licensee, inter-track wagering location licensee, and licensed
12veterans establishment shall maintain an adequate video gaming
13fund, with the amount to be determined by the Board.
14    (e) The State's percentage of net terminal income shall be
15reported and remitted to the Board within 15 days after the
1615th day of each month and within 15 days after the end of each
17month by the video terminal operator. A video terminal operator
18who falsely reports or fails to report the amount due required
19by this Section is guilty of a Class 4 felony and is subject to
20termination of his or her license by the Board. Each video
21terminal operator shall keep a record of net terminal income in
22such form as the Board may require. All payments not remitted
23when due shall be paid together with a penalty assessment on
24the unpaid balance at a rate of 1.5% per month.
25(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
 

 

 

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1    Section 10. The Criminal Code of 2012 is amended by
2changing Section 28-1 as follows:
 
3    (720 ILCS 5/28-1)  (from Ch. 38, par. 28-1)
4    Sec. 28-1. Gambling.
5    (a) A person commits gambling when he or she:
6        (1) knowingly plays a game of chance or skill for money
7    or other thing of value, unless excepted in subsection (b)
8    of this Section;
9        (2) knowingly makes a wager upon the result of any
10    game, contest, or any political nomination, appointment or
11    election;
12        (3) knowingly operates, keeps, owns, uses, purchases,
13    exhibits, rents, sells, bargains for the sale or lease of,
14    manufactures or distributes any gambling device;
15        (4) contracts to have or give himself or herself or
16    another the option to buy or sell, or contracts to buy or
17    sell, at a future time, any grain or other commodity
18    whatsoever, or any stock or security of any company, where
19    it is at the time of making such contract intended by both
20    parties thereto that the contract to buy or sell, or the
21    option, whenever exercised, or the contract resulting
22    therefrom, shall be settled, not by the receipt or delivery
23    of such property, but by the payment only of differences in
24    prices thereof; however, the issuance, purchase, sale,
25    exercise, endorsement or guarantee, by or through a person

 

 

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1    registered with the Secretary of State pursuant to Section
2    8 of the Illinois Securities Law of 1953, or by or through
3    a person exempt from such registration under said Section
4    8, of a put, call, or other option to buy or sell
5    securities which have been registered with the Secretary of
6    State or which are exempt from such registration under
7    Section 3 of the Illinois Securities Law of 1953 is not
8    gambling within the meaning of this paragraph (4);
9        (5) knowingly owns or possesses any book, instrument or
10    apparatus by means of which bets or wagers have been, or
11    are, recorded or registered, or knowingly possesses any
12    money which he has received in the course of a bet or
13    wager;
14        (6) knowingly sells pools upon the result of any game
15    or contest of skill or chance, political nomination,
16    appointment or election;
17        (7) knowingly sets up or promotes any lottery or sells,
18    offers to sell or transfers any ticket or share for any
19    lottery;
20        (8) knowingly sets up or promotes any policy game or
21    sells, offers to sell or knowingly possesses or transfers
22    any policy ticket, slip, record, document or other similar
23    device;
24        (9) knowingly drafts, prints or publishes any lottery
25    ticket or share, or any policy ticket, slip, record,
26    document or similar device, except for such activity

 

 

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1    related to lotteries, bingo games and raffles authorized by
2    and conducted in accordance with the laws of Illinois or
3    any other state or foreign government;
4        (10) knowingly advertises any lottery or policy game,
5    except for such activity related to lotteries, bingo games
6    and raffles authorized by and conducted in accordance with
7    the laws of Illinois or any other state;
8        (11) knowingly transmits information as to wagers,
9    betting odds, or changes in betting odds by telephone,
10    telegraph, radio, semaphore or similar means; or knowingly
11    installs or maintains equipment for the transmission or
12    receipt of such information; except that nothing in this
13    subdivision (11) prohibits transmission or receipt of such
14    information for use in news reporting of sporting events or
15    contests; or
16        (12) knowingly establishes, maintains, or operates an
17    Internet site that permits a person to play a game of
18    chance or skill for money or other thing of value by means
19    of the Internet or to make a wager upon the result of any
20    game, contest, political nomination, appointment, or
21    election by means of the Internet. This item (12) does not
22    apply to activities referenced in items (6) and (6.1) of
23    subsection (b) of this Section.
24    (b) Participants in any of the following activities shall
25not be convicted of gambling:
26        (1) Agreements to compensate for loss caused by the

 

 

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1    happening of chance including without limitation contracts
2    of indemnity or guaranty and life or health or accident
3    insurance.
4        (2) Offers of prizes, award or compensation to the
5    actual contestants in any bona fide contest for the
6    determination of skill, speed, strength or endurance or to
7    the owners of animals or vehicles entered in such contest.
8        (3) Pari-mutuel betting as authorized by the law of
9    this State.
10        (4) Manufacture of gambling devices, including the
11    acquisition of essential parts therefor and the assembly
12    thereof, for transportation in interstate or foreign
13    commerce to any place outside this State when such
14    transportation is not prohibited by any applicable Federal
15    law; or the manufacture, distribution, or possession of
16    video gaming terminals, as defined in the Video Gaming Act,
17    by manufacturers, distributors, and terminal operators
18    licensed to do so under the Video Gaming Act.
19        (5) The game commonly known as "bingo", when conducted
20    in accordance with the Bingo License and Tax Act.
21        (6) Lotteries when conducted by the State of Illinois
22    in accordance with the Illinois Lottery Law. This exemption
23    includes any activity conducted by the Department of
24    Revenue to sell lottery tickets pursuant to the provisions
25    of the Illinois Lottery Law and its rules.
26        (6.1) The purchase of lottery tickets through the

 

 

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1    Internet for a lottery conducted by the State of Illinois
2    under the program established in Section 7.12 of the
3    Illinois Lottery Law.
4        (7) Possession of an antique slot machine that is
5    neither used nor intended to be used in the operation or
6    promotion of any unlawful gambling activity or enterprise.
7    For the purpose of this subparagraph (b)(7), an antique
8    slot machine is one manufactured 25 years ago or earlier.
9        (8) Raffles and poker runs when conducted in accordance
10    with the Raffles and Poker Runs Act.
11        (9) Charitable games when conducted in accordance with
12    the Charitable Games Act.
13        (10) Pull tabs and jar games when conducted under the
14    Illinois Pull Tabs and Jar Games Act.
15        (11) Gambling games conducted on riverboats when
16    authorized by the Riverboat Gambling Act.
17        (12) Video gaming terminal games at a licensed
18    establishment, licensed truck stop establishment, licensed
19    fraternal establishment, organization licensee location,
20    inter-track wagering location licensee location, or
21    licensed veterans establishment when conducted in
22    accordance with the Video Gaming Act.
23        (13) Games of skill or chance where money or other
24    things of value can be won but no payment or purchase is
25    required to participate.
26        (14) Savings promotion raffles authorized under

 

 

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1    Section 5g of the Illinois Banking Act, Section 7008 of the
2    Savings Bank Act, Section 42.7 of the Illinois Credit Union
3    Act, Section 5136B of the National Bank Act (12 U.S.C.
4    25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C.
5    1463).
6    (c) Sentence.
7    Gambling is a Class A misdemeanor. A second or subsequent
8conviction under subsections (a)(3) through (a)(12), is a Class
94 felony.
10    (d) Circumstantial evidence.
11    In prosecutions under this Section circumstantial evidence
12shall have the same validity and weight as in any criminal
13prosecution.
14(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)