98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB2311

 

Introduced , by Rep. Daniel V. Beiser

 

SYNOPSIS AS INTRODUCED:
 
230 ILCS 40/5
230 ILCS 40/20
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
720 ILCS 5/28-1.1  from Ch. 38, par. 28-1.1

    Amends the Video Gaming Act. Provides for the licensure of social clubs for the placement of video gaming terminals (and makes corresponding changes in the Criminal Code of 2012). Defines "licensed social club". Makes changes concerning background investigations of applicants for licensure. Effective immediately.


LRB098 10639 AMC 40923 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2311LRB098 10639 AMC 40923 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
5Sections 5, 20, 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    "Terminal operator" means an individual, partnership,
17corporation, or limited liability company that is licensed
18under this Act and that owns, services, and maintains video
19gaming terminals for placement in licensed establishments,
20licensed truck stop establishments, licensed social clubs,
21licensed fraternal establishments, or licensed veterans
22establishments.
23    "Licensed technician" means an individual who is licensed

 

 

HB2311- 2 -LRB098 10639 AMC 40923 b

1under this Act to repair, service, and maintain video gaming
2terminals.
3    "Licensed terminal handler" means a person, including but
4not limited to an employee or independent contractor working
5for a manufacturer, distributor, supplier, technician, or
6terminal operator, who is licensed under this Act to possess or
7control a video gaming terminal or to have access to the inner
8workings of a video gaming terminal. A licensed terminal
9handler does not include an individual, partnership,
10corporation, or limited liability company defined as a
11manufacturer, distributor, supplier, technician, or terminal
12operator under this Act.
13    "Manufacturer" means an individual, partnership,
14corporation, or limited liability company that is licensed
15under this Act and that manufactures or assembles video gaming
16terminals.
17    "Supplier" means an individual, partnership, corporation,
18or limited liability company that is licensed under this Act to
19supply major components or parts to video gaming terminals to
20licensed terminal operators.
21    "Net terminal income" means money put into a video gaming
22terminal minus credits paid out to players.
23    "Video gaming terminal" means any electronic video game
24machine that, upon insertion of cash, is available to play or
25simulate the play of a video game, including but not limited to
26video poker, line up, and blackjack, as authorized by the Board

 

 

HB2311- 3 -LRB098 10639 AMC 40923 b

1utilizing a video display and microprocessors in which the
2player may receive free games or credits that can be redeemed
3for cash. The term does not include a machine that directly
4dispenses coins, cash, or tokens or is for amusement purposes
5only.
6    "Licensed establishment" means any licensed retail
7establishment where alcoholic liquor is drawn, poured, mixed,
8or otherwise served for consumption on the premises and
9includes any such establishment that has a contractual
10relationship with an inter-track wagering location licensee
11licensed under the Illinois Horse Racing Act of 1975, provided
12any contractual relationship shall not include any transfer or
13offer of revenue from the operation of video gaming under this
14Act to any licensee licensed under the Illinois Horse Racing
15Act of 1975. Provided, however, that the licensed establishment
16that has such a contractual relationship with an inter-track
17wagering location licensee may not, itself, be (i) an
18inter-track wagering location licensee, (ii) the corporate
19parent or subsidiary of any licensee licensed under the
20Illinois Horse Racing Act of 1975, or (iii) the corporate
21subsidiary of a corporation that is also the corporate parent
22or subsidiary of any licensee licensed under the Illinois Horse
23Racing Act of 1975. "Licensed establishment" does not include a
24facility operated by an organization licensee, an inter-track
25wagering licensee, or an inter-track wagering location
26licensee licensed under the Illinois Horse Racing Act of 1975

 

 

HB2311- 4 -LRB098 10639 AMC 40923 b

1or a riverboat licensed under the Riverboat Gambling Act,
2except as provided in this paragraph.
3    "Licensed fraternal establishment" means the location
4where a qualified fraternal organization that derives its
5charter from a national fraternal organization regularly
6meets.
7    "Licensed veterans establishment" means the location where
8a qualified veterans organization that derives its charter from
9a national veterans organization regularly meets.
10    "Licensed truck stop establishment" means a facility (i)
11that is at least a 3-acre facility with a convenience store,
12(ii) with separate diesel islands for fueling commercial motor
13vehicles, (iii) that sells at retail more than 10,000 gallons
14of diesel or biodiesel fuel per month, and (iv) with parking
15spaces for commercial motor vehicles. "Commercial motor
16vehicles" has the same meaning as defined in Section 18b-101 of
17the Illinois Vehicle Code. The requirement of item (iii) of
18this paragraph may be met by showing that estimated future
19sales or past sales average at least 10,000 gallons per month.
20    "Licensed social club" means a nonprofit location,
21operating in accordance with and under the tax-exempt status of
22subdivision 501(c)(4) or 501(c)(7) of the Internal Revenue
23Code, where alcoholic liquor is drawn, poured, mixed, or
24otherwise served for consumption on the premises.
25(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09;
2696-1410, eff. 7-30-10; 96-1479, eff. 8-23-10; 97-333, eff.

 

 

HB2311- 5 -LRB098 10639 AMC 40923 b

18-12-11.)
 
2    (230 ILCS 40/20)
3    Sec. 20. Direct dispensing of receipt tickets only. A video
4gaming terminal may not directly dispense coins, cash, tokens,
5or any other article of exchange or value except for receipt
6tickets. Tickets shall be dispensed by pressing the ticket
7dispensing button on the video gaming terminal at the end of
8one's turn or play. The ticket shall indicate the total amount
9of credits and the cash award, the time of day in a 24-hour
10format showing hours and minutes, the date, the terminal serial
11number, the sequential number of the ticket, and an encrypted
12validation number from which the validity of the prize may be
13determined. The player shall turn in this ticket to the
14appropriate person at the licensed establishment, licensed
15truck stop establishment, licensed social club, licensed
16fraternal establishment, or licensed veterans establishment to
17receive the cash award. The cost of the credit shall be one
18cent, 5 cents, 10 cents, or 25 cents, and the maximum wager
19played per hand shall not exceed $2. No cash award for the
20maximum wager on any individual hand shall exceed $500.
21(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.)
 
22    (230 ILCS 40/25)
23    Sec. 25. Restriction of licensees.
24    (a) Manufacturer. A person may not be licensed as a

 

 

HB2311- 6 -LRB098 10639 AMC 40923 b

1manufacturer of a video gaming terminal in Illinois unless the
2person has a valid manufacturer's license issued under this
3Act. A manufacturer may only sell video gaming terminals for
4use in Illinois to persons having a valid distributor's
5license.
6    (b) Distributor. A person may not sell, distribute, or
7lease or market a video gaming terminal in Illinois unless the
8person has a valid distributor's license issued under this Act.
9A distributor may only sell video gaming terminals for use in
10Illinois to persons having a valid distributor's or terminal
11operator's license.
12    (c) Terminal operator. A person may not own, maintain, or
13place a video gaming terminal unless he has a valid terminal
14operator's license issued under this Act. A terminal operator
15may only place video gaming terminals for use in Illinois in
16licensed establishments, licensed truck stop establishments,
17licensed social clubs, licensed fraternal establishments, and
18licensed veterans establishments. No terminal operator may
19give anything of value, including, but not limited to, a loan
20or financing arrangement, to a licensed establishment,
21licensed truck stop establishment, licensed social club,
22licensed fraternal establishment, or licensed veterans
23establishment as any incentive or inducement to locate video
24terminals in that establishment. Of the after-tax profits from
25a video gaming terminal, 50% shall be paid to the terminal
26operator and 50% shall be paid to the licensed establishment,

 

 

HB2311- 7 -LRB098 10639 AMC 40923 b

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

 

 

HB2311- 8 -LRB098 10639 AMC 40923 b

1establishment, licensed social club, or licensed fraternal
2establishment has entered into a written use agreement with the
3terminal operator for placement of the terminals. A copy of the
4use agreement shall be on file in the terminal operator's place
5of business and available for inspection by individuals
6authorized by the Board. A licensed establishment, licensed
7truck stop establishment, licensed social club, licensed
8veterans establishment, or licensed fraternal establishment
9may operate up to 5 video gaming terminals on its premises at
10any time.
11    (f) (Blank).
12    (g) Financial interest restrictions. As used in this Act,
13"substantial interest" in a partnership, a corporation, an
14organization, an association, a business, or a limited
15liability company means:
16        (A) When, with respect to a sole proprietorship, an
17    individual or his or her spouse owns, operates, manages, or
18    conducts, directly or indirectly, the organization,
19    association, or business, or any part thereof; or
20        (B) When, with respect to a partnership, the individual
21    or his or her spouse shares in any of the profits, or
22    potential profits, of the partnership activities; or
23        (C) When, with respect to a corporation, an individual
24    or his or her spouse is an officer or director, or the
25    individual or his or her spouse is a holder, directly or
26    beneficially, of 5% or more of any class of stock of the

 

 

HB2311- 9 -LRB098 10639 AMC 40923 b

1    corporation; or
2        (D) When, with respect to an organization not covered
3    in (A), (B) or (C) above, an individual or his or her
4    spouse is an officer or manages the business affairs, or
5    the individual or his or her spouse is the owner of or
6    otherwise controls 10% or more of the assets of the
7    organization; or
8        (E) When an individual or his or her spouse furnishes
9    5% or more of the capital, whether in cash, goods, or
10    services, for the operation of any business, association,
11    or organization during any calendar year; or
12        (F) When, with respect to a limited liability company,
13    an individual or his or her spouse is a member, or the
14    individual or his or her spouse is a holder, directly or
15    beneficially, of 5% or more of the membership interest of
16    the limited liability company.
17    For purposes of this subsection (g), "individual" includes
18all individuals or their spouses whose combined interest would
19qualify as a substantial interest under this subsection (g) and
20whose activities with respect to an organization, association,
21or business are so closely aligned or coordinated as to
22constitute the activities of a single entity.
23    (h) Location restriction. A licensed establishment,
24licensed truck stop establishment, licensed social club,
25licensed fraternal establishment, or licensed veterans
26establishment that is (i) located within 1,000 feet of a

 

 

HB2311- 10 -LRB098 10639 AMC 40923 b

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

 

 

HB2311- 11 -LRB098 10639 AMC 40923 b

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

 

 

HB2311- 12 -LRB098 10639 AMC 40923 b

1concentration with respect to the operation of video gaming
2terminals in Illinois. The rules shall include, but not be
3limited to, (i) limitations on the number of video gaming
4terminals operated by any terminal operator within a defined
5geographic radius and (ii) guidelines on the discontinuation of
6operation of any such video gaming terminals the Board
7determines will cause undue economic concentration.
8    (j) The provisions of the Illinois Antitrust Act are fully
9and equally applicable to the activities of any licensee under
10this Act.
11(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
12eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1410, eff. 7-30-10;
1396-1479, eff. 8-23-10; 97-333, eff. 8-12-11.)
 
14    (230 ILCS 40/30)
15    Sec. 30. Multiple types of licenses prohibited. A video
16gaming terminal manufacturer may not be licensed as a video
17gaming terminal operator or own, manage, or control a licensed
18establishment, licensed truck stop establishment, licensed
19social club, licensed fraternal establishment, or licensed
20veterans establishment, and shall be licensed to sell only to
21persons having a valid distributor's license or, if the
22manufacturer also holds a valid distributor's license, to sell,
23distribute, lease, or market to persons having a valid terminal
24operator's license. A video gaming terminal distributor may not
25be licensed as a video gaming terminal operator or own, manage,

 

 

HB2311- 13 -LRB098 10639 AMC 40923 b

1or control a licensed establishment, licensed truck stop
2establishment, licensed social club, licensed fraternal
3establishment, or licensed veterans establishment, and shall
4only contract with a licensed terminal operator. A video gaming
5terminal operator may not be licensed as a video gaming
6terminal manufacturer or distributor or own, manage, or control
7a licensed establishment, licensed truck stop establishment,
8licensed social club, licensed fraternal establishment, or
9licensed veterans establishment, and shall be licensed only to
10contract with licensed distributors and licensed
11establishments, licensed truck stop establishments, licensed
12social clubs, licensed fraternal establishments, and licensed
13veterans establishments. An owner or manager of a licensed
14establishment, licensed truck stop establishment, licensed
15social club, licensed fraternal establishment, or licensed
16veterans establishment may not be licensed as a video gaming
17terminal manufacturer, distributor, or operator, and shall
18only contract with a licensed operator to place and service
19this equipment.
20(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.)
 
21    (230 ILCS 40/35)
22    Sec. 35. Display of license; confiscation; violation as
23felony.
24    (a) Each video gaming terminal shall be licensed by the
25Board before placement or operation on the premises of a

 

 

HB2311- 14 -LRB098 10639 AMC 40923 b

1licensed establishment, licensed truck stop establishment,
2licensed social club, licensed fraternal establishment, or
3licensed veterans establishment. The license of each video
4gaming terminal shall be maintained at the location where the
5video gaming terminal is operated. Failure to do so is a petty
6offense with a fine not to exceed $100. Any licensed
7establishment, licensed truck stop establishment, licensed
8social club, licensed fraternal establishment, or licensed
9veterans establishment used for the conduct of gambling games
10in violation of this Act shall be considered a gambling place
11in violation of Section 28-3 of the Criminal Code of 2012.
12Every gambling device found in a licensed establishment,
13licensed truck stop establishment, licensed social club,
14licensed fraternal establishment, or licensed veterans
15establishment operating gambling games in violation of this Act
16shall be subject to seizure, confiscation, and destruction as
17provided in Section 28-5 of the Criminal Code of 2012. Any
18license issued under the Liquor Control Act of 1934 to any
19owner or operator of a licensed establishment, licensed truck
20stop establishment, licensed social club, licensed fraternal
21establishment, or licensed veterans establishment that
22operates or permits the operation of a video gaming terminal
23within its establishment in violation of this Act shall be
24immediately revoked. No person may own, operate, have in his or
25her possession or custody or under his or her control, or
26permit to be kept in any place under his or her possession or

 

 

HB2311- 15 -LRB098 10639 AMC 40923 b

1control, any device that awards credits and contains a circuit,
2meter, or switch capable of removing and recording the removal
3of credits when the award of credits is dependent upon chance.
4A violation of this Section is a Class 4 felony. All devices
5that are owned, operated, or possessed in violation of this
6Section are hereby declared to be public nuisances and shall be
7subject to seizure, confiscation, and destruction as provided
8in Section 28-5 of the Criminal Code of 2012. The provisions of
9this Section do not apply to devices or electronic video game
10terminals licensed pursuant to this Act. A video gaming
11terminal operated for amusement only and bearing a valid
12amusement tax sticker shall not be subject to this Section
13until 30 days after the Board establishes that the central
14communications system is functional.
15    (b) (1) The odds of winning each video game shall be posted
16on or near each video gaming terminal. The manner in which the
17odds are calculated and how they are posted shall be determined
18by the Board by rule.
19    (2) No video gaming terminal licensed under this Act may be
20played except during the legal hours of operation allowed for
21the consumption of alcoholic beverages at the licensed
22establishment, licensed social club, licensed fraternal
23establishment, or licensed veterans establishment. A licensed
24establishment, licensed social club, licensed fraternal
25establishment, or licensed veterans establishment that
26violates this subsection is subject to termination of its

 

 

HB2311- 16 -LRB098 10639 AMC 40923 b

1license by the Board.
2(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09;
396-1410, eff. 7-30-10; 97-1150, eff. 1-25-13.)
 
4    (230 ILCS 40/45)
5    Sec. 45. Issuance of license.
6    (a) The burden is upon each applicant to demonstrate his
7suitability for licensure. Each video gaming terminal
8manufacturer, distributor, supplier, operator, handler,
9licensed establishment, licensed truck stop establishment,
10licensed social club, licensed fraternal establishment, and
11licensed veterans establishment shall be licensed by the Board.
12The Board may issue or deny a license under this Act to any
13person pursuant to the same criteria set forth in Section 9 of
14the Riverboat Gambling Act.
15    (a-5) The Board shall not grant a license to a person who
16has facilitated, enabled, or participated in the use of
17coin-operated devices for gambling purposes or who is under the
18significant influence or control of such a person. For the
19purposes of this Act, "facilitated, enabled, or participated in
20the use of coin-operated amusement devices for gambling
21purposes" means that the person has been convicted of any
22violation of Article 28 of the Criminal Code of 1961 or the
23Criminal Code of 2012. If there is pending legal action against
24a person for any such violation, then the Board shall delay the
25licensure of that person until the legal action is resolved.

 

 

HB2311- 17 -LRB098 10639 AMC 40923 b

1    (b) Each person seeking and possessing a license as a video
2gaming terminal manufacturer, distributor, supplier, operator,
3handler, licensed establishment, licensed truck stop
4establishment, licensed social club, licensed fraternal
5establishment, or licensed veterans establishment shall submit
6to a background investigation conducted by the Board with the
7assistance of the State Police or other law enforcement. The
8background investigation shall include any or all of the
9following as the Board deems appropriate or as provided by rule
10for each category of licensure: (i) each beneficiary of a
11trust, (ii) each partner of a partnership, (iii) each member of
12a limited liability company, (iv) and each director and officer
13of a publicly or non-publicly held corporation, (v) each
14stockholder of a non-publicly held corporation, (vi) each
15stockholder of 5% or more of a publicly held corporation, or
16(vii) each stockholder and all stockholders of 5% or more in a
17parent or subsidiary corporation of a video gaming terminal
18manufacturer, distributor, supplier, operator, or licensed
19establishment, licensed truck stop establishment, licensed
20fraternal establishment, or licensed veterans establishment.
21    (c) Each person seeking and possessing a license as a video
22gaming terminal manufacturer, distributor, supplier, operator,
23handler, licensed establishment, licensed truck stop
24establishment, licensed social club, licensed fraternal
25establishment, or licensed veterans establishment shall
26disclose the identity of every person, association, trust,

 

 

HB2311- 18 -LRB098 10639 AMC 40923 b

1corporation, or limited liability company having a greater than
21% direct or indirect pecuniary interest in the video gaming
3terminal operation for which the license is sought. If the
4disclosed entity is a trust, the application shall disclose the
5names and addresses of the beneficiaries; if a corporation, the
6names and addresses of all stockholders and directors; if a
7limited liability company, the names and addresses of all
8members; or if a partnership, the names and addresses of all
9partners, both general and limited.
10    (d) No person may be licensed as a video gaming terminal
11manufacturer, distributor, supplier, operator, handler,
12licensed establishment, licensed truck stop establishment,
13licensed social club, licensed fraternal establishment, or
14licensed veterans establishment if that person has been found
15by the Board to:
16        (1) have a background, including a criminal record,
17    reputation, habits, social or business associations, or
18    prior activities that pose a threat to the public interests
19    of the State or to the security and integrity of video
20    gaming;
21        (2) create or enhance the dangers of unsuitable,
22    unfair, or illegal practices, methods, and activities in
23    the conduct of video gaming; or
24        (3) present questionable business practices and
25    financial arrangements incidental to the conduct of video
26    gaming activities.

 

 

HB2311- 19 -LRB098 10639 AMC 40923 b

1    (e) Any applicant for any license under this Act has the
2burden of proving his or her qualifications to the satisfaction
3of the Board. The Board may adopt rules to establish additional
4qualifications and requirements to preserve the integrity and
5security of video gaming in this State.
6    (f) A non-refundable application fee shall be paid at the
7time an application for a license is filed with the Board in
8the following amounts:
9        (1) Manufacturer..........................$5,000
10        (2) Distributor...........................$5,000
11        (3) Terminal operator.....................$5,000
12        (4) Supplier..............................$2,500
13        (5) Technician..............................$100
14        (6) Terminal Handler..............................$50
15    (g) The Board shall establish an annual fee for each
16license not to exceed the following:
17        (1) Manufacturer.........................$10,000
18        (2) Distributor..........................$10,000
19        (3) Terminal operator.....................$5,000
20        (4) Supplier..............................$2,000
21        (5) Technician..............................$100
22        (6) Licensed establishment, licensed truck stop
23    establishment, licensed social club, licensed
24    fraternal establishment, or licensed veterans
25    establishment...................................$100
26        (7) Video gaming terminal...................$100

 

 

HB2311- 20 -LRB098 10639 AMC 40923 b

1        (8) Terminal Handler..............................$50
2(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
3eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1410, eff. 7-30-10;
497-1150, eff. 1-25-13.)
 
5    (230 ILCS 40/55)
6    Sec. 55. Precondition for licensed location. In all cases
7of application for a licensed location, to operate a video
8gaming terminal, each licensed establishment, licensed social
9club, licensed fraternal establishment, or licensed veterans
10establishment shall possess a valid liquor license issued by
11the Illinois Liquor Control Commission in effect at the time of
12application and at all times thereafter during which a video
13gaming terminal is made available to the public for play at
14that location. Video gaming terminals in a licensed location
15shall be operated only during the same hours of operation
16generally permitted to holders of a license under the Liquor
17Control Act of 1934 within the unit of local government in
18which they are located. A licensed truck stop establishment
19that does not hold a liquor license may operate video gaming
20terminals on a continuous basis. A licensed fraternal
21establishment or licensed veterans establishment that does not
22hold a liquor license may operate video gaming terminals if (i)
23the establishment is located in a county with a population
24between 6,500 and 7,000, based on the 2000 U.S. Census, (ii)
25the county prohibits by ordinance the sale of alcohol, and

 

 

HB2311- 21 -LRB098 10639 AMC 40923 b

1(iii) the establishment is in a portion of the county where the
2sale of alcohol is prohibited. A licensed fraternal
3establishment or licensed veterans establishment that does not
4hold a liquor license may operate video gaming terminals if (i)
5the establishment is located in a municipality within a county
6with a population between 8,500 and 9,000 based on the 2000
7U.S. Census and (ii) the municipality or county prohibits or
8limits the sale of alcohol by ordinance in a way that prohibits
9the establishment from selling alcohol.
10(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10;
1197-594, eff. 8-26-11.)
 
12    (230 ILCS 40/58)
13    Sec. 58. Location of terminals. Video gaming terminals
14must be located in an area restricted to persons over 21 years
15of age the entrance to which is within the view of at least one
16employee, who is over 21 years of age, of the establishment in
17which they are located. The placement of video gaming terminals
18in licensed establishments, licensed truck stop
19establishments, licensed social clubs, licensed fraternal
20establishments, and licensed veterans establishments shall be
21subject to the rules promulgated by the Board pursuant to the
22Illinois Administrative Procedure Act.
23(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
 
24    (230 ILCS 40/60)

 

 

HB2311- 22 -LRB098 10639 AMC 40923 b

1    Sec. 60. Imposition and distribution of tax.
2    (a) A tax of 30% is imposed on net terminal income and
3shall be collected by the Board.
4    (b) Of the tax collected under this Section, five-sixths
5shall be deposited into the Capital Projects Fund and one-sixth
6shall be deposited into the Local Government Video Gaming
7Distributive Fund.
8    (c) Revenues generated from the play of video gaming
9terminals shall be deposited by the terminal operator, who is
10responsible for tax payments, in a specially created, separate
11bank account maintained by the video gaming terminal operator
12to allow for electronic fund transfers of moneys for tax
13payment.
14    (d) Each licensed establishment, licensed truck stop
15establishment, licensed social club, licensed fraternal
16establishment, and licensed veterans establishment shall
17maintain an adequate video gaming fund, with the amount to be
18determined by the Board.
19    (e) The State's percentage of net terminal income shall be
20reported and remitted to the Board within 15 days after the
2115th day of each month and within 15 days after the end of each
22month by the video terminal operator. A video terminal operator
23who falsely reports or fails to report the amount due required
24by this Section is guilty of a Class 4 felony and is subject to
25termination of his or her license by the Board. Each video
26terminal operator shall keep a record of net terminal income in

 

 

HB2311- 23 -LRB098 10639 AMC 40923 b

1such form as the Board may require. All payments not remitted
2when due shall be paid together with a penalty assessment on
3the unpaid balance at a rate of 1.5% per month.
4(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
 
5    Section 10. The Criminal Code of 2012 is amended by
6changing Sections 28-1 and 28-1.1 as follows:
 
7    (720 ILCS 5/28-1)  (from Ch. 38, par. 28-1)
8    Sec. 28-1. Gambling.
9    (a) A person commits gambling when he or she:
10        (1) knowingly plays a game of chance or skill for money
11    or other thing of value, unless excepted in subsection (b)
12    of this Section;
13        (2) knowingly makes a wager upon the result of any
14    game, contest, or any political nomination, appointment or
15    election;
16        (3) knowingly operates, keeps, owns, uses, purchases,
17    exhibits, rents, sells, bargains for the sale or lease of,
18    manufactures or distributes any gambling device;
19        (4) contracts to have or give himself or herself or
20    another the option to buy or sell, or contracts to buy or
21    sell, at a future time, any grain or other commodity
22    whatsoever, or any stock or security of any company, where
23    it is at the time of making such contract intended by both
24    parties thereto that the contract to buy or sell, or the

 

 

HB2311- 24 -LRB098 10639 AMC 40923 b

1    option, whenever exercised, or the contract resulting
2    therefrom, shall be settled, not by the receipt or delivery
3    of such property, but by the payment only of differences in
4    prices thereof; however, the issuance, purchase, sale,
5    exercise, endorsement or guarantee, by or through a person
6    registered with the Secretary of State pursuant to Section
7    8 of the Illinois Securities Law of 1953, or by or through
8    a person exempt from such registration under said Section
9    8, of a put, call, or other option to buy or sell
10    securities which have been registered with the Secretary of
11    State or which are exempt from such registration under
12    Section 3 of the Illinois Securities Law of 1953 is not
13    gambling within the meaning of this paragraph (4);
14        (5) knowingly owns or possesses any book, instrument or
15    apparatus by means of which bets or wagers have been, or
16    are, recorded or registered, or knowingly possesses any
17    money which he has received in the course of a bet or
18    wager;
19        (6) knowingly sells pools upon the result of any game
20    or contest of skill or chance, political nomination,
21    appointment or election;
22        (7) knowingly sets up or promotes any lottery or sells,
23    offers to sell or transfers any ticket or share for any
24    lottery;
25        (8) knowingly sets up or promotes any policy game or
26    sells, offers to sell or knowingly possesses or transfers

 

 

HB2311- 25 -LRB098 10639 AMC 40923 b

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

 

 

HB2311- 26 -LRB098 10639 AMC 40923 b

1    apply to activities referenced in items (6) and (6.1) of
2    subsection (b) of this Section.
3    (b) Participants in any of the following activities shall
4not be convicted of gambling:
5        (1) Agreements to compensate for loss caused by the
6    happening of chance including without limitation contracts
7    of indemnity or guaranty and life or health or accident
8    insurance.
9        (2) Offers of prizes, award or compensation to the
10    actual contestants in any bona fide contest for the
11    determination of skill, speed, strength or endurance or to
12    the owners of animals or vehicles entered in such contest.
13        (3) Pari-mutuel betting as authorized by the law of
14    this State.
15        (4) Manufacture of gambling devices, including the
16    acquisition of essential parts therefor and the assembly
17    thereof, for transportation in interstate or foreign
18    commerce to any place outside this State when such
19    transportation is not prohibited by any applicable Federal
20    law; or the manufacture, distribution, or possession of
21    video gaming terminals, as defined in the Video Gaming Act,
22    by manufacturers, distributors, and terminal operators
23    licensed to do so under the Video Gaming Act.
24        (5) The game commonly known as "bingo", when conducted
25    in accordance with the Bingo License and Tax Act.
26        (6) Lotteries when conducted by the State of Illinois

 

 

HB2311- 27 -LRB098 10639 AMC 40923 b

1    in accordance with the Illinois Lottery Law. This exemption
2    includes any activity conducted by the Department of
3    Revenue to sell lottery tickets pursuant to the provisions
4    of the Illinois Lottery Law and its rules.
5        (6.1) The purchase of lottery tickets through the
6    Internet for a lottery conducted by the State of Illinois
7    under the program established in Section 7.12 of the
8    Illinois Lottery Law.
9        (7) Possession of an antique slot machine that is
10    neither used nor intended to be used in the operation or
11    promotion of any unlawful gambling activity or enterprise.
12    For the purpose of this subparagraph (b)(7), an antique
13    slot machine is one manufactured 25 years ago or earlier.
14        (8) Raffles when conducted in accordance with the
15    Raffles Act.
16        (9) Charitable games when conducted in accordance with
17    the Charitable Games Act.
18        (10) Pull tabs and jar games when conducted under the
19    Illinois Pull Tabs and Jar Games Act.
20        (11) Gambling games conducted on riverboats when
21    authorized by the Riverboat Gambling Act.
22        (12) Video gaming terminal games at a licensed
23    establishment, licensed truck stop establishment, licensed
24    social club, licensed fraternal establishment, or licensed
25    veterans establishment when conducted in accordance with
26    the Video Gaming Act.

 

 

HB2311- 28 -LRB098 10639 AMC 40923 b

1        (13) Games of skill or chance where money or other
2    things of value can be won but no payment or purchase is
3    required to participate.
4    (c) Sentence.
5    Gambling is a Class A misdemeanor. A second or subsequent
6conviction under subsections (a)(3) through (a)(12), is a Class
74 felony.
8    (d) Circumstantial evidence.
9    In prosecutions under this Section circumstantial evidence
10shall have the same validity and weight as in any criminal
11prosecution.
12(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09;
1396-1203, eff. 7-22-10; 97-1108, eff. 1-1-13.)
 
14    (720 ILCS 5/28-1.1)   (from Ch. 38, par. 28-1.1)
15    Sec. 28-1.1. Syndicated gambling.
16    (a) Declaration of Purpose. Recognizing the close
17relationship between professional gambling and other organized
18crime, it is declared to be the policy of the legislature to
19restrain persons from engaging in the business of gambling for
20profit in this State. This Section shall be liberally construed
21and administered with a view to carrying out this policy.
22    (b) A person commits syndicated gambling when he or she
23operates a "policy game" or engages in the business of
24bookmaking.
25    (c) A person "operates a policy game" when he or she

 

 

HB2311- 29 -LRB098 10639 AMC 40923 b

1knowingly uses any premises or property for the purpose of
2receiving or knowingly does receive from what is commonly
3called "policy":
4        (1) money from a person other than the bettor or player
5    whose bets or plays are represented by the money; or
6        (2) written "policy game" records, made or used over
7    any period of time, from a person other than the bettor or
8    player whose bets or plays are represented by the written
9    record.
10    (d) A person engages in bookmaking when he or she knowingly
11receives or accepts more than five bets or wagers upon the
12result of any trials or contests of skill, speed or power of
13endurance or upon any lot, chance, casualty, unknown or
14contingent event whatsoever, which bets or wagers shall be of
15such size that the total of the amounts of money paid or
16promised to be paid to the bookmaker on account thereof shall
17exceed $2,000. Bookmaking is the receiving or accepting of bets
18or wagers regardless of the form or manner in which the
19bookmaker records them.
20    (e) Participants in any of the following activities shall
21not be convicted of syndicated gambling:
22        (1) Agreements to compensate for loss caused by the
23    happening of chance including without limitation contracts
24    of indemnity or guaranty and life or health or accident
25    insurance;
26        (2) Offers of prizes, award or compensation to the

 

 

HB2311- 30 -LRB098 10639 AMC 40923 b

1    actual contestants in any bona fide contest for the
2    determination of skill, speed, strength or endurance or to
3    the owners of animals or vehicles entered in the contest;
4        (3) Pari-mutuel betting as authorized by law of this
5    State;
6        (4) Manufacture of gambling devices, including the
7    acquisition of essential parts therefor and the assembly
8    thereof, for transportation in interstate or foreign
9    commerce to any place outside this State when the
10    transportation is not prohibited by any applicable Federal
11    law;
12        (5) Raffles when conducted in accordance with the
13    Raffles Act;
14        (6) Gambling games conducted on riverboats when
15    authorized by the Riverboat Gambling Act; and
16        (7) Video gaming terminal games at a licensed
17    establishment, licensed truck stop establishment, licensed
18    social club, licensed fraternal establishment, or licensed
19    veterans establishment when conducted in accordance with
20    the Video Gaming Act.
21    (f) Sentence. Syndicated gambling is a Class 3 felony.
22(Source: P.A. 96-34, eff. 7-13-09; 97-1108, eff. 1-1-13.)
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.