HB1570 EngrossedLRB098 09256 AMC 39395 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
5Section 25 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

 

 

HB1570 Engrossed- 2 -LRB098 09256 AMC 39395 b

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

 

 

HB1570 Engrossed- 3 -LRB098 09256 AMC 39395 b

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.
19    (f) (Blank).
20    (g) Financial interest restrictions. As used in this Act,
21"substantial interest" in a partnership, a corporation, an
22organization, an association, a business, or a limited
23liability company means:
24        (A) When, with respect to a sole proprietorship, an
25    individual or his or her spouse owns, operates, manages, or
26    conducts, directly or indirectly, the organization,

 

 

HB1570 Engrossed- 4 -LRB098 09256 AMC 39395 b

1    association, or business, or any part thereof; or
2        (B) When, with respect to a partnership, the individual
3    or his or her spouse shares in any of the profits, or
4    potential profits, of the partnership activities; or
5        (C) When, with respect to a corporation, an individual
6    or his or her spouse is an officer or director, or the
7    individual or his or her spouse is a holder, directly or
8    beneficially, of 5% or more of any class of stock of the
9    corporation; or
10        (D) When, with respect to an organization not covered
11    in (A), (B) or (C) above, an individual or his or her
12    spouse is an officer or manages the business affairs, or
13    the individual or his or her spouse is the owner of or
14    otherwise controls 10% or more of the assets of the
15    organization; or
16        (E) When an individual or his or her spouse furnishes
17    5% or more of the capital, whether in cash, goods, or
18    services, for the operation of any business, association,
19    or organization during any calendar year; or
20        (F) When, with respect to a limited liability company,
21    an individual or his or her spouse is a member, or the
22    individual or his or her spouse is a holder, directly or
23    beneficially, of 5% or more of the membership interest of
24    the limited liability company.
25    For purposes of this subsection (g), "individual" includes
26all individuals or their spouses whose combined interest would

 

 

HB1570 Engrossed- 5 -LRB098 09256 AMC 39395 b

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

 

 

HB1570 Engrossed- 6 -LRB098 09256 AMC 39395 b

1Board may waive the requirement that a licensed establishment,
2licensed truck stop establishment, licensed fraternal
3establishment, or licensed veterans establishment not be
4located within 1,000 feet from a facility operated by an
5organization licensee or , an inter-track wagering licensee, or
6an inter-track wagering location 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, inter-track wagering licensee, inter-track wagering
13location licensee, or owners licensee of a riverboat. The Board
14shall adopt rules to implement the provisions of this
15paragraph.
16    (i) Undue economic concentration. In addition to
17considering all other requirements under this Act, in deciding
18whether to approve the operation of video gaming terminals by a
19terminal operator in a location, the Board shall consider the
20impact of any economic concentration of such operation of video
21gaming terminals. The Board shall not allow a terminal operator
22to operate video gaming terminals if the Board determines such
23operation will result in undue economic concentration. For
24purposes of this Section, "undue economic concentration" means
25that a terminal operator would have such actual or potential
26influence over video gaming terminals in Illinois as to:

 

 

HB1570 Engrossed- 7 -LRB098 09256 AMC 39395 b

1        (1) substantially impede or suppress competition among
2    terminal operators;
3        (2) adversely impact the economic stability of the
4    video gaming industry in Illinois; or
5        (3) negatively impact the purposes of the Video Gaming
6    Act.
7    The Board shall adopt rules concerning undue economic
8concentration with respect to the operation of video gaming
9terminals in Illinois. The rules shall include, but not be
10limited to, (i) limitations on the number of video gaming
11terminals operated by any terminal operator within a defined
12geographic radius and (ii) guidelines on the discontinuation of
13operation of any such video gaming terminals the Board
14determines will cause undue economic concentration.
15    (j) The provisions of the Illinois Antitrust Act are fully
16and equally applicable to the activities of any licensee under
17this Act.
18(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
19eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1410, eff. 7-30-10;
2096-1479, eff. 8-23-10; 97-333, eff. 8-12-11.)
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.