99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB1794

 

Introduced 2/20/2015, by Sen. Darin M. LaHood

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Video Gaming Act. Provides that the Illinois Gaming Board shall not issue a license to any licensed establishment unless, for each of 2 years prior to applying for a license, the licensed establishment generated no less than 80% of its revenue from the sale of food or beverages. In order to renew a license, the licensed establishment must have generated no less than 50% of its revenue from the sale of food or beverages for the year prior to applying for renewal. Provides that the Board Exclusion List and the Self-Exclusion List distributed to Illinois casinos be distributed to video gaming licensees and enforced by the licensees. Prohibits disclosure of the identity of anyone on the Self-Exclusion List. Prohibits various licensees from knowingly allowing any person on either list to play. Requires video gaming locations to separate video gaming terminals from the sight of any minor that may enter that location. Provides that video gaming areas must post signs on age restrictions. Provides that certain persons involved in the maintenance, operation, or supervision of video gaming terminals may not use or play video gaming terminals they are or may be responsible for. Provides that video gaming terminals shall only be operated during a location's regular business hours, when the video gaming terminals are generally available to the public for use or play. Makes other changes. Amends the Counties Code. Provides that counties may adopt a classification of liquor license that, when issued, authorizes the liquor license holder to subsequently apply to the Board for a license under the Video Gaming Act and to operate as a licensee if granted a license. Makes similar changes in the Illinois Municipal Code.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1794LRB099 05897 MLM 25945 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 Counties Code is amended by adding Section
55-1126.5 as follows:
 
6    (55 ILCS 5/5-1126.5 new)
7    Sec. 5-1126.5. Liquor license with video gaming
8authorization. Notwithstanding any provisions in the Liquor
9Control Act of 1934 or the Video Gaming Act to the contrary, a
10county board shall have the power, by ordinance, to adopt a
11classification of liquor license that, when issued, authorizes
12the liquor license holder to subsequently apply to the Illinois
13Gaming Board for a license as a licensed establishment,
14licensed fraternal establishment, or licensed veterans
15establishment under the Video Gaming Act and to operate as a
16licensed establishment, licensed fraternal establishment, or
17licensed veterans establishment if granted a license by the
18Illinois Gaming Board. If such a classification is adopted by a
19county, the amount of the license fee shall not exceed the
20amount charged for similar liquor licenses. A county that
21permits video gaming pursuant to the Video Gaming Act at the
22time it adopts such a classification of liquor license shall,
23upon the licensee's request, issue the license to any

 

 

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1establishment already possessing an existing liquor license
2for no additional fee. Nothing in this Section shall be
3construed to terminate or otherwise affect the rights of a
4licensed establishment, licensed fraternal establishment,
5licensed veterans establishment, or licensed truck stop
6establishment licensed under the Video Gaming Act that is
7located in a county that adopts an ordinance under this
8Section. A county shall notify the Illinois Gaming Board upon
9its adoption of any ordinance under this Section.
 
10    Section 10. The Illinois Municipal Code is amended by
11adding Section 11-42-10.3 as follows:
 
12    (65 ILCS 5/11-42-10.3 new)
13    Sec. 11-42-10.3. Liquor license with video gaming
14authorization. Notwithstanding any provisions in the Liquor
15Control Act of 1934 or the Video Gaming Act to the contrary,
16the corporate authorities of a municipality shall have the
17power, by ordinance, to adopt a classification of liquor
18license that, when issued, authorizes the liquor license holder
19to subsequently apply to the Illinois Gaming Board for a
20license as a licensed establishment, licensed fraternal
21establishment, or licensed veterans establishment under the
22Video Gaming Act and to operate as a licensed establishment,
23licensed fraternal establishment, or licensed veterans
24establishment if granted a license by the Illinois Gaming

 

 

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1Board. If such a classification is adopted by a municipality,
2the amount of the license fee shall not exceed the amount
3charged for similar liquor licenses. A municipality that
4permits video gaming pursuant to the Video Gaming Act at the
5time it adopts such a classification of liquor license shall,
6upon the licensee's request, issue the license to any
7establishment already possessing an existing liquor license
8for no additional fee. Nothing in this Section shall be
9construed to terminate or otherwise affect the rights of a
10licensed establishment, licensed fraternal establishment,
11licensed veterans establishment, or licensed truck stop
12establishment licensed under the Video Gaming Act that is
13located in a municipality that adopts an ordinance under this
14Section. A municipality shall notify the Illinois Gaming Board
15upon its adoption of any ordinance under this Section.
 
16    Section 15. The Video Gaming Act is amended by changing
17Sections 25, 55, and 58 and by adding Sections 41, 56, and 59
18as follows:
 
19    (230 ILCS 40/25)
20    Sec. 25. Restriction of licensees.
21    (a) Manufacturer. A person may not be licensed as a
22manufacturer of a video gaming terminal in Illinois unless the
23person has a valid manufacturer's license issued under this
24Act. A manufacturer may only sell video gaming terminals for

 

 

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

 

 

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1subsection is guilty of a Class 4 felony and is subject to
2termination of his or her license by the Board.
3    (c-5) Terminal operator restrictions. Terminal operators
4shall not allow its associated licensees, owners, licensed
5employees, licensed agents, any person with a substantial
6interest in, or any person with control over the licensed
7terminal operator to use or play any video gaming terminal that
8the licensed terminal operator owns, services, or maintains.
9    (d) Licensed technician. A person may not service,
10maintain, or repair a video gaming terminal in this State
11unless he or she (1) has a valid technician's license issued
12under this Act, (2) is a terminal operator, or (3) is employed
13by a terminal operator, distributor, or manufacturer. A
14licensed technician shall not use or play any video gaming
15terminal that the licensed technician has repaired in the past
16365 days, is, or within the next 365 days may be responsible to
17repair, service, or maintain, or that is owned, repaired,
18serviced, or maintained by any licensee that employs or
19contracts with the licensed technician as part of a video
20gaming operation.
21    (d-5) Licensed terminal handler. No person, including, but
22not limited to, an employee or independent contractor working
23for a manufacturer, distributor, supplier, technician, or
24terminal operator licensed pursuant to this Act, shall have
25possession or control of a video gaming terminal, or access to
26the inner workings of a video gaming terminal, unless that

 

 

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1person possesses a valid terminal handler's license issued
2under this Act. A licensed terminal handler shall not use or
3play any video gaming terminal that the licensed terminal
4handler has in the past 365 days, is, or within the next 365
5days may be responsible to repair, service, or maintain, or
6that is owned, repaired, serviced, or maintained by any
7licensee that employs or contracts with the licensed terminal
8handler as part of a video gaming operation.
9    (e) Licensed establishment. No video gaming terminal may be
10placed in any licensed establishment, licensed veterans
11establishment, licensed truck stop establishment, or licensed
12fraternal establishment unless the owner or agent of the owner
13of the licensed establishment, licensed veterans
14establishment, licensed truck stop establishment, or licensed
15fraternal establishment has entered into a written use
16agreement with the terminal operator for placement of the
17terminals. A copy of the use agreement shall be on file in the
18terminal operator's place of business and available for
19inspection by individuals authorized by the Board. A licensed
20establishment, licensed truck stop establishment, licensed
21veterans establishment, or licensed fraternal establishment
22may operate up to 5 video gaming terminals on its premises at
23any time.
24    A licensed establishment, licensed truck stop
25establishment, licensed veterans establishment, or licensed
26fraternal establishment shall only cash the following checks:

 

 

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1(i) personal checks, (ii) cashier's checks, (iii) money orders,
2(iv) credit card advance checks, (v) Traveler's checks, and
3(vi) wire transfer service checks. Licensed establishments,
4licensed truck stop establishments, licensed veterans
5establishments, and licensed fraternal establishments shall
6not allow its associated licensees, owners, licensed
7employees, licensed agents, managers, any person with 5% or
8more attributed interest in, any person with a substantial
9interest in, or any person with control over the licensed video
10gaming location to use or play any video gaming terminal
11located in the licensed video gaming location.
12    (f) (Blank).
13    (g) Financial interest restrictions. As used in this Act,
14"substantial interest" in a partnership, a corporation, an
15organization, an association, a business, or a limited
16liability company means:
17        (A) When, with respect to a sole proprietorship, an
18    individual or his or her spouse owns, operates, manages, or
19    conducts, directly or indirectly, the organization,
20    association, or business, or any part thereof; or
21        (B) When, with respect to a partnership, the individual
22    or his or her spouse shares in any of the profits, or
23    potential profits, of the partnership activities; or
24        (C) When, with respect to a corporation, an individual
25    or his or her spouse is an officer or director, or the
26    individual or his or her spouse is a holder, directly or

 

 

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

 

 

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1located within 1,000 feet of a facility operated by an
2organization licensee licensed under the Illinois Horse Racing
3Act of 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
8(A) a facility operated by an organization licensee, a school,
9or a place of worship moves to or is established within the
10restricted area after a licensed establishment, licensed truck
11stop establishment, licensed fraternal establishment, or
12licensed veterans establishment becomes licensed under this
13Act or (B) a school or place of worship moves to or is
14established within the restricted area after a licensed
15establishment, licensed truck stop establishment, licensed
16fraternal establishment, or licensed veterans establishment
17obtains its original liquor license. For the purpose of this
18subsection, "school" means an elementary or secondary public
19school, or an elementary or secondary private school registered
20with or recognized by the State Board of Education.
21    Notwithstanding the provisions of this subsection (h), the
22Board may waive the requirement that a licensed establishment,
23licensed truck stop establishment, licensed fraternal
24establishment, or licensed veterans establishment not be
25located within 1,000 feet from a facility operated by an
26organization licensee licensed under the Illinois Horse Racing

 

 

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

 

 

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1terminals in Illinois. The rules shall include, but not be
2limited to, (i) limitations on the number of video gaming
3terminals operated by any terminal operator within a defined
4geographic radius and (ii) guidelines on the discontinuation of
5operation of any such video gaming terminals the Board
6determines will cause undue economic concentration.
7    (j) The provisions of the Illinois Antitrust Act are fully
8and equally applicable to the activities of any licensee under
9this Act.
10(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,
11eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
 
12    (230 ILCS 40/41 new)
13    Sec. 41. Exclusion lists.
14    (a) For purposes of this Section:
15        "Board Exclusion List" means the list set forth in 86
16    Ill. Adm. Code 3000.710.
17        "Self-Exclusion List" means the list set forth in 86
18    Ill. Adm. Code 3000.750.
19        "Video gaming licensee" means a licensed
20    establishment, licensed truck stop establishment, licensed
21    veterans establishment, or licensed fraternal
22    establishment.
23    (b) The Board shall distribute to each video gaming
24licensee a list of each person on the Board Exclusion List.
25Each video gaming licensee shall acknowledge receipt of the

 

 

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1list in writing.
2    (c) When a person is placed on the Board Exclusion List,
3such person shall be prohibited from contact of any kind with
4any video gaming operation or with any video gaming licensee
5unless and until a determination is made by the Board or a
6court to the contrary. No person on the Board Exclusion List
7shall be permitted entry into any licensed video gaming
8location. It shall be the duty of each video gaming licensee
9and of its employees to exclude or eject from a licensed video
10gaming location any person on the Board Exclusion List when
11such video gaming licensee or employee knows or reasonably
12should know of the presence of such person. It shall be the
13duty of every video gaming licensee to inform the Administrator
14in writing of the names of persons such video gaming licensee
15reasonable believes meet the criteria for placement on the
16Board Exclusion List.
17    (d) Upon placement on the Self-Exclusion List by the
18Administrator, the name and identifying information of the
19self-excluded person shall be distributed to each video gaming
20licensee.
21    No video gaming licensee may disclose the name of any
22person on the Self-Exclusion List to any third party unless
23specifically authorized by this Act or required by a court
24order specifically requiring the release of mental health
25records and information.
26    No video gaming licensee who obtains identifying

 

 

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1information about a person on the Self-Exclusion List from any
2source may disclose the name or identifying information of the
3self-excluded person, except as necessary to effectuate, or as
4specifically permitted by, this Act.
5    Any video gaming licensee who knowingly discloses,
6authorizes disclosure, permits a disclosure, or otherwise
7assists in the disclosure of the identity of a person on the
8Self-Exclusion List shall be subject to discipline for each
9disclosure, including, but not limited to, any disclosure by
10any of its officers, directors, employees, attorneys, agents,
11and contractors, unless the disclosure is made for the sole
12purpose of effectuating the Self-Exclusion program and this Act
13as to any customer tracking system, customer identification
14system, financial transactions system, or check and credit
15system.
16    Disclosure may be made to affiliate video gaming operations
17with the prior written approval of the Administrator. A video
18gaming licensee seeking such approval must provide to the
19Administrator an explanation of the manner in which the
20identity of the self-excluded persons will be maintained
21confidentially by the affiliate video gaming operations.
22    Nothing in this Section prohibits disclosure of the name of
23a person on the Self-Exclusion List to the Board or its staff
24or to a person authorized in writing by the self-excluded
25person on the Self-Exclusion List to receive such information.
26    (e) Each video gaming licensee shall cause the name and

 

 

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1address of any person on the Self-Exclusion List to be flagged
2on all mailing, marketing, or promotional lists or databases.
3No video gaming licensee shall knowingly send marketing or
4promotional materials that mention video poker in any way to
5any person on the Self-Exclusion List.
6    Video gaming licensees shall maintain, pursuant to
7subsection (d) of this Section, a system designed to detect
8persons on the Self-Exclusion List so as to enforce this
9Section.
10    Each video gaming licensee shall cause the name and address
11of any person on the Self-Exclusion List to be flagged on all
12check-cashing, credit issuance, and other financial
13eligibility lists or databases utilized by the video gaming
14operation for any purposes, except as authorized by this Act.
15Video gaming licensees shall not knowingly cash checks for,
16extend gaming operation credit to, or otherwise assist a person
17on the Self-Exclusion List to obtain funds for gambling
18purposes.
19    (f) No video gaming licensee shall knowingly allow any
20person on the Self-Exclusion List or the Board Exclusion List
21to play video poker. No video gaming licensee shall knowingly
22send marketing or promotional materials that mention video
23poker in any way to any person on the Self-Exclusion List or
24the Board Exclusion List.
 
25    (230 ILCS 40/55)

 

 

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1    Sec. 55. Precondition for licensed location. In all cases
2of application for a licensed location, to operate a video
3gaming terminal, each licensed establishment, licensed
4fraternal establishment, or licensed veterans establishment
5shall possess a valid liquor license issued by the Illinois
6Liquor Control Commission in effect at the time of application
7and at all times thereafter during which a video gaming
8terminal is made available to the public for play at that
9location. Video gaming terminals in a licensed location shall
10be operated only during the same hours of operation generally
11permitted to holders of a license under the Liquor Control Act
12of 1934 within the unit of local government in which they are
13located. A licensed truck stop establishment that does not hold
14a liquor license may operate video gaming terminals on a
15continuous basis. A licensed fraternal establishment or
16licensed veterans establishment that does not hold a liquor
17license may operate video gaming terminals if (i) the
18establishment is located in a county with a population between
196,500 and 7,000, based on the 2000 U.S. Census, (ii) the county
20prohibits by ordinance the sale of alcohol, and (iii) the
21establishment is in a portion of the county where the sale of
22alcohol is prohibited. A licensed fraternal establishment or
23licensed veterans establishment that does not hold a liquor
24license may operate video gaming terminals if (i) the
25establishment is located in a municipality within a county with
26a population between 8,500 and 9,000 based on the 2000 U.S.

 

 

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1Census and (ii) the municipality or county prohibits or limits
2the sale of alcohol by ordinance in a way that prohibits the
3establishment from selling alcohol. Video gaming terminals in
4any licensed location may only be operated during that
5location's regular business hours, when the video gaming
6terminals are generally available to the public for use or
7play.
8(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10;
997-594, eff. 8-26-11.)
 
10    (230 ILCS 40/56 new)
11    Sec. 56. Food and beverage sales precondition for licensed
12establishments.
13    (a) Beginning on the effective date of this amendatory Act
14of the 99th General Assembly, the Board shall not issue a
15license to any licensed establishment unless, for each of two
16years prior to applying for a license, the licensed
17establishment generated no less than 80% of its revenue from
18the sale of food or beverages. In order to renew a license, the
19licensed establishment must have generated no less than 50% of
20its revenue from the sale of food or beverages for the year
21prior to applying for renewal.
22    (b) Any licensed establishment that was licensed or had an
23application submitted to the Board prior to the effective date
24of this amendatory Act of the 99th General Assembly shall not
25be required to demonstrate that for each of the two years prior

 

 

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1to applying for the licensed establishment generated no less
2than 80% of its revenue from the sale of food or beverages as
3required by subsection (a) of this Section.
4    (c) This Section does not apply to any licensed fraternal
5establishment or a licensed veterans establishment that
6possesses a valid liquor license issued by the Illinois Liquor
7Control Commission in effect at the time of application and at
8all times after.
9    (d) Each licensed establishment shall annually provide the
10Board with a report showing its gross annual sales totals and
11categories, including food and beverage sales. The Board may
12audit this report. If the Board finds that a licensed
13establishment has sales of food and beverages less than the
14levels required by subsection (a) this Section, the Board shall
15immediately revoke the licensed establishment's license.
 
16    (230 ILCS 40/58)
17    Sec. 58. Location of terminals.
18    (a) Video gaming terminals must be located in an area
19restricted to persons over 21 years of age the entrance to
20which is within the view of at least one employee, who is over
2121 years of age, of the establishment in which they are
22located. Any licensed establishment, licensed truck stop
23establishment, licensed veterans establishment, and licensed
24fraternal establishment that allows minors to enter shall
25separate any video gaming terminals from the sight of any minor

 

 

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1by placing a partition of at least 5 feet in height between the
2video gaming terminals and any area where a minor may be
3present. The partition shall be permanently affixed and solid
4except for an opening to allow for player access into the area.
5The placement of video gaming terminals in licensed
6establishments, licensed truck stop establishments, licensed
7fraternal establishments, and licensed veterans establishments
8shall be subject to the rules promulgated by the Board pursuant
9to the Illinois Administrative Procedure Act.
10    (b) All licensed establishments, licensed truck stop
11establishments, licensed veterans establishments, and licensed
12fraternal establishments that allow minors to enter shall post
13signs on the premises that state that the play of video gaming
14terminals by persons under the age of 21 is prohibited and that
15state that access to areas where video gaming is conduct is
16prohibited by persons under the age of 21.
17    (c) The phrase "NO PERSON UNDER THE AGE OF 21 ALLOWED TO
18PLAY" shall be conspicuously displayed on the face of all video
19gaming terminals.
20(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
 
21    (230 ILCS 40/59 new)
22    Sec. 59. Compulsive gambling.
23    (a) Each licensed establishment, licensed truck stop
24establishment, licensed veterans establishment, and licensed
25fraternal establishment shall post signs with a statement

 

 

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1regarding obtaining assistance with gambling problems, the
2text of which shall be determined by rule by the Department of
3Human Services, at the following locations in each facility at
4which gambling is conducted by the licensed owner:
5        (1) Each entrance and exit.
6        (2) If the establishment has a separate restricted area
7    for video gaming pursuant to 11 Ill. Adm. Code 1800.810(b),
8    at each entrance and exit to that area of the video gaming
9    location.
10        (3) Near each credit location.
11    The signs shall be provided by the Department of Human
12Services.
13    (b) Each licensed establishment, licensed truck stop
14establishment, licensed veterans establishment, and licensed
15fraternal establishment shall print a statement regarding
16obtaining assistance with gambling problems, the text of which
17shall be determined by rule by the Department of Human
18Services, on all paper stock that the licensed establishment,
19licensed truck stop establishment, licensed veterans
20establishment, or licensed fraternal establishment provides to
21the general public.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    55 ILCS 5/5-1126.5 new
4    65 ILCS 5/11-42-10.3 new
5    230 ILCS 40/25
6    230 ILCS 40/41 new
7    230 ILCS 40/55
8    230 ILCS 40/56 new
9    230 ILCS 40/58
10    230 ILCS 40/59 new