Illinois General Assembly - Full Text of SB2371
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Full Text of SB2371  98th General Assembly

SB2371ham001 98TH GENERAL ASSEMBLY

Rep. Daniel V. Beiser

Filed: 5/20/2013

 

 


 

 


 
09800SB2371ham001LRB098 10401 AMC 46182 a

1
AMENDMENT TO SENATE BILL 2371

2    AMENDMENT NO. ______. Amend Senate Bill 2371 by replacing
3everything after the enacting clause with the following:
 
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,

 

 

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

 

 

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

 

 

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1Illinois Horse Racing Act of 1975, or (iii) the corporate
2subsidiary of a corporation that is also the corporate parent
3or subsidiary of any licensee licensed under the Illinois Horse
4Racing Act of 1975. "Licensed establishment" does not include a
5facility operated by an organization licensee, an inter-track
6wagering licensee, or an inter-track wagering location
7licensee licensed under the Illinois Horse Racing Act of 1975
8or a riverboat licensed under the Riverboat Gambling Act,
9except as provided in this paragraph.
10    "Licensed fraternal establishment" means the location
11where a qualified fraternal organization that derives its
12charter from a national fraternal organization regularly
13meets.
14    "Licensed veterans establishment" means the location where
15a qualified veterans organization that derives its charter from
16a national veterans organization regularly meets.
17    "Licensed truck stop establishment" means a facility (i)
18that is at least a 3-acre facility with a convenience store,
19(ii) with separate diesel islands for fueling commercial motor
20vehicles, (iii) that sells at retail more than 10,000 gallons
21of diesel or biodiesel fuel per month, and (iv) with parking
22spaces for commercial motor vehicles. "Commercial motor
23vehicles" has the same meaning as defined in Section 18b-101 of
24the Illinois Vehicle Code. The requirement of item (iii) of
25this paragraph may be met by showing that estimated future
26sales or past sales average at least 10,000 gallons per month.

 

 

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1    "Licensed social club" means a nonprofit location,
2operating in accordance with and under the tax-exempt status of
3subdivision 501(c)(4), 501(c)(7), or 501(c)(8) of the Internal
4Revenue Code, where alcoholic liquor is drawn, poured, mixed,
5or otherwise served for consumption on the premises.
6(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09;
796-1410, eff. 7-30-10; 96-1479, eff. 8-23-10; 97-333, eff.
88-12-11.)
 
9    (230 ILCS 40/20)
10    Sec. 20. Direct dispensing of receipt tickets only. A video
11gaming terminal may not directly dispense coins, cash, tokens,
12or any other article of exchange or value except for receipt
13tickets. Tickets shall be dispensed by pressing the ticket
14dispensing button on the video gaming terminal at the end of
15one's turn or play. The ticket shall indicate the total amount
16of credits and the cash award, the time of day in a 24-hour
17format showing hours and minutes, the date, the terminal serial
18number, the sequential number of the ticket, and an encrypted
19validation number from which the validity of the prize may be
20determined. The player shall turn in this ticket to the
21appropriate person at the licensed establishment, licensed
22truck stop establishment, licensed social club, licensed
23fraternal establishment, or licensed veterans establishment to
24receive the cash award. The cost of the credit shall be one
25cent, 5 cents, 10 cents, or 25 cents, and the maximum wager

 

 

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1played per hand shall not exceed $2. No cash award for the
2maximum wager on any individual hand shall exceed $500.
3(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.)
 
4    (230 ILCS 40/25)
5    Sec. 25. Restriction of licensees.
6    (a) Manufacturer. A person may not be licensed as a
7manufacturer of a video gaming terminal in Illinois unless the
8person has a valid manufacturer's license issued under this
9Act. A manufacturer may only sell video gaming terminals for
10use in Illinois to persons having a valid distributor's
11license.
12    (b) Distributor. A person may not sell, distribute, or
13lease or market a video gaming terminal in Illinois unless the
14person has a valid distributor's license issued under this Act.
15A distributor may only sell video gaming terminals for use in
16Illinois to persons having a valid distributor's or terminal
17operator's license.
18    (c) Terminal operator. A person may not own, maintain, or
19place a video gaming terminal unless he has a valid terminal
20operator's license issued under this Act. A terminal operator
21may only place video gaming terminals for use in Illinois in
22licensed establishments, licensed truck stop establishments,
23licensed social clubs, licensed fraternal establishments, and
24licensed veterans establishments. No terminal operator may
25give anything of value, including, but not limited to, a loan

 

 

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

 

 

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1under this Act.
2    (e) Licensed establishment. No video gaming terminal may be
3placed in any licensed establishment, licensed veterans
4establishment, licensed truck stop establishment, licensed
5social club, or licensed fraternal establishment unless the
6owner or agent of the owner of the licensed establishment,
7licensed veterans establishment, licensed truck stop
8establishment, licensed social club, or licensed fraternal
9establishment has entered into a written use agreement with the
10terminal operator for placement of the terminals. A copy of the
11use agreement shall be on file in the terminal operator's place
12of business and available for inspection by individuals
13authorized by the Board. A licensed establishment, licensed
14truck stop establishment, licensed social club, licensed
15veterans establishment, or licensed fraternal establishment
16may operate up to 5 video gaming terminals on its premises at
17any time.
18    (f) (Blank).
19    (g) Financial interest restrictions. As used in this Act,
20"substantial interest" in a partnership, a corporation, an
21organization, an association, a business, or a limited
22liability company means:
23        (A) When, with respect to a sole proprietorship, an
24    individual or his or her spouse owns, operates, manages, or
25    conducts, directly or indirectly, the organization,
26    association, or business, or any part thereof; or

 

 

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

 

 

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1whose activities with respect to an organization, association,
2or business are so closely aligned or coordinated as to
3constitute the activities of a single entity.
4    (h) Location restriction. A licensed establishment,
5licensed truck stop establishment, licensed social club,
6licensed fraternal establishment, or licensed veterans
7establishment that is (i) located within 1,000 feet of a
8facility operated by an organization licensee or an inter-track
9wagering licensee licensed under the Illinois Horse Racing Act
10of 1975 or the home dock of a riverboat licensed under the
11Riverboat Gambling Act or (ii) located within 100 feet of a
12school or a place of worship under the Religious Corporation
13Act, is ineligible to operate a video gaming terminal. The
14location restrictions in this subsection (h) do not apply if a
15facility operated by an organization licensee, an inter-track
16wagering licensee, or an inter-track wagering location
17licensee, a school, or a place of worship moves to or is
18established within the restricted area after a licensed
19establishment, licensed truck stop establishment, licensed
20social club, 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

 

 

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1Board may waive the requirement that a licensed establishment,
2licensed truck stop establishment, licensed social club,
3licensed fraternal establishment, or licensed veterans
4establishment not be located within 1,000 feet from a facility
5operated by an organization licensee, an inter-track wagering
6licensee, or an inter-track wagering location licensee
7licensed under the Illinois Horse Racing Act of 1975 or the
8home dock of a riverboat licensed under the Riverboat Gambling
9Act. The Board shall not grant such waiver if there is any
10common ownership or control, shared business activity, or
11contractual arrangement of any type between the establishment
12and the organization licensee, inter-track wagering licensee,
13inter-track wagering location licensee, or owners licensee of a
14riverboat. The Board shall adopt rules to implement the
15provisions of this paragraph.
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:

 

 

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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    (230 ILCS 40/30)
22    Sec. 30. Multiple types of licenses prohibited. A video
23gaming terminal manufacturer may not be licensed as a video
24gaming terminal operator or own, manage, or control a licensed
25establishment, licensed truck stop establishment, licensed

 

 

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1social club, licensed fraternal establishment, or licensed
2veterans establishment, and shall be licensed to sell only to
3persons having a valid distributor's license or, if the
4manufacturer also holds a valid distributor's license, to sell,
5distribute, lease, or market to persons having a valid terminal
6operator's license. A video gaming terminal distributor may not
7be licensed as a video gaming terminal operator or own, manage,
8or control a licensed establishment, licensed truck stop
9establishment, licensed social club, licensed fraternal
10establishment, or licensed veterans establishment, and shall
11only contract with a licensed terminal operator. A video gaming
12terminal operator may not be licensed as a video gaming
13terminal manufacturer or distributor or own, manage, or control
14a licensed establishment, licensed truck stop establishment,
15licensed social club, licensed fraternal establishment, or
16licensed veterans establishment, and shall be licensed only to
17contract with licensed distributors and licensed
18establishments, licensed truck stop establishments, licensed
19social clubs, licensed fraternal establishments, and licensed
20veterans establishments. An owner or manager of a licensed
21establishment, licensed truck stop establishment, licensed
22social club, licensed fraternal establishment, or licensed
23veterans establishment may not be licensed as a video gaming
24terminal manufacturer, distributor, or operator, and shall
25only contract with a licensed operator to place and service
26this equipment.

 

 

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1(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.)
 
2    (230 ILCS 40/35)
3    Sec. 35. Display of license; confiscation; violation as
4felony.
5    (a) Each video gaming terminal shall be licensed by the
6Board before placement or operation on the premises of a
7licensed establishment, licensed truck stop establishment,
8licensed social club, licensed fraternal establishment, or
9licensed veterans establishment. The license of each video
10gaming terminal shall be maintained at the location where the
11video gaming terminal is operated. Failure to do so is a petty
12offense with a fine not to exceed $100. Any licensed
13establishment, licensed truck stop establishment, licensed
14social club, licensed fraternal establishment, or licensed
15veterans establishment used for the conduct of gambling games
16in violation of this Act shall be considered a gambling place
17in violation of Section 28-3 of the Criminal Code of 2012.
18Every gambling device found in a licensed establishment,
19licensed truck stop establishment, licensed social club,
20licensed fraternal establishment, 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

 

 

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1stop establishment, licensed social club, licensed fraternal
2establishment, 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.
11A violation of this Section is a Class 4 felony. All devices
12that are owned, operated, or possessed in violation of this
13Section are hereby declared to be public nuisances and shall be
14subject to seizure, confiscation, and destruction as provided
15in Section 28-5 of the Criminal Code of 2012. The provisions of
16this Section do not apply to devices or electronic video game
17terminals licensed pursuant to this Act. A video gaming
18terminal operated for amusement only and bearing a valid
19amusement tax sticker shall not be subject to this Section
20until 30 days after the Board establishes that the central
21communications system is functional.
22    (b) (1) The odds of winning each video game shall be posted
23on or near each video gaming terminal. The manner in which the
24odds are calculated and how they are posted shall be determined
25by the Board by rule.
26    (2) No video gaming terminal licensed under this Act may be

 

 

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1played except during the legal hours of operation allowed for
2the consumption of alcoholic beverages at the licensed
3establishment, licensed social club, licensed fraternal
4establishment, or licensed veterans establishment. A licensed
5establishment, licensed social club, licensed fraternal
6establishment, or licensed veterans establishment that
7violates this subsection is subject to termination of its
8license by the Board.
9(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09;
1096-1410, eff. 7-30-10; 97-1150, eff. 1-25-13.)
 
11    (230 ILCS 40/45)
12    Sec. 45. Issuance of license.
13    (a) The burden is upon each applicant to demonstrate his
14suitability for licensure. Each video gaming terminal
15manufacturer, distributor, supplier, operator, handler,
16licensed establishment, licensed truck stop establishment,
17licensed social club, licensed fraternal establishment, and
18licensed veterans establishment shall be licensed by the Board.
19The Board may issue or deny a license under this Act to any
20person pursuant to the same criteria set forth in Section 9 of
21the Riverboat Gambling Act.
22    (a-5) The Board shall not grant a license to a person who
23has facilitated, enabled, or participated in the use of
24coin-operated devices for gambling purposes or who is under the
25significant influence or control of such a person. For the

 

 

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1purposes of this Act, "facilitated, enabled, or participated in
2the use of coin-operated amusement devices for gambling
3purposes" means that the person has been convicted of any
4violation of Article 28 of the Criminal Code of 1961 or the
5Criminal Code of 2012. If there is pending legal action against
6a person for any such violation, then the Board shall delay the
7licensure of that person until the legal action is resolved.
8    (b) Each person seeking and possessing a license as a video
9gaming terminal manufacturer, distributor, supplier, operator,
10handler, licensed establishment, licensed truck stop
11establishment, licensed social club, licensed fraternal
12establishment, or licensed veterans establishment shall submit
13to a background investigation conducted by the Board with the
14assistance of the State Police or other law enforcement. The
15background investigation shall include any or all of the
16following as the Board deems appropriate or as provided by rule
17for each category of licensure: (i) each beneficiary of a
18trust, (ii) each partner of a partnership, (iii) each member of
19a limited liability company, (iv) and each director and officer
20of a publicly or non-publicly held corporation, (v) each
21stockholder of a non-publicly held corporation, (vi) each
22stockholder of 5% or more of a publicly held corporation, or
23(vii) each stockholder and all stockholders of 5% or more in a
24parent or subsidiary corporation of a video gaming terminal
25manufacturer, distributor, supplier, operator, or licensed
26establishment, licensed truck stop establishment, licensed

 

 

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1fraternal establishment, or licensed veterans establishment.
2    (c) Each person seeking and possessing a license as a video
3gaming terminal manufacturer, distributor, supplier, operator,
4handler, licensed establishment, licensed truck stop
5establishment, licensed social club, licensed fraternal
6establishment, or licensed veterans establishment shall
7disclose the identity of every person, association, trust,
8corporation, or limited liability company having a greater than
91% direct or indirect pecuniary interest in the video gaming
10terminal operation for which the license is sought. If the
11disclosed entity is a trust, the application shall disclose the
12names and addresses of the beneficiaries; if a corporation, the
13names and addresses of all stockholders and directors; if a
14limited liability company, the names and addresses of all
15members; or if a partnership, the names and addresses of all
16partners, both general and limited.
17    (d) No person may be licensed as a video gaming terminal
18manufacturer, distributor, supplier, operator, handler,
19licensed establishment, licensed truck stop establishment,
20licensed social club, licensed fraternal establishment, or
21licensed veterans establishment if that person has been found
22by the Board to:
23        (1) have a background, including a criminal record,
24    reputation, habits, social or business associations, or
25    prior activities that pose a threat to the public interests
26    of the State or to the security and integrity of video

 

 

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1    gaming;
2        (2) create or enhance the dangers of unsuitable,
3    unfair, or illegal practices, methods, and activities in
4    the conduct of video gaming; or
5        (3) present questionable business practices and
6    financial arrangements incidental to the conduct of video
7    gaming activities.
8    (e) Any applicant for any license under this Act has the
9burden of proving his or her qualifications to the satisfaction
10of the Board. The Board may adopt rules to establish additional
11qualifications and requirements to preserve the integrity and
12security of video gaming in this State.
13    (f) A non-refundable application fee shall be paid at the
14time an application for a license is filed with the Board in
15the following amounts:
16        (1) Manufacturer..........................$5,000
17        (2) Distributor...........................$5,000
18        (3) Terminal operator.....................$5,000
19        (4) Supplier..............................$2,500
20        (5) Technician..............................$100
21        (6) Terminal Handler..............................$50
22    (g) The Board shall establish an annual fee for each
23license not to exceed the following:
24        (1) Manufacturer.........................$10,000
25        (2) Distributor..........................$10,000
26        (3) Terminal operator.....................$5,000

 

 

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1        (4) Supplier..............................$2,000
2        (5) Technician..............................$100
3        (6) Licensed establishment, licensed truck stop
4    establishment, licensed social club, licensed
5    fraternal establishment, or licensed veterans
6    establishment...................................$100
7        (7) Video gaming terminal...................$100
8        (8) Terminal Handler..............................$50
9(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
10eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1410, eff. 7-30-10;
1197-1150, eff. 1-25-13.)
 
12    (230 ILCS 40/55)
13    Sec. 55. Precondition for licensed location. In all cases
14of application for a licensed location, to operate a video
15gaming terminal, each licensed establishment, licensed social
16club, licensed fraternal establishment, or licensed veterans
17establishment shall possess a valid liquor license issued by
18the Illinois Liquor Control Commission in effect at the time of
19application and at all times thereafter during which a video
20gaming terminal is made available to the public for play at
21that location. Video gaming terminals in a licensed location
22shall be operated only during the same hours of operation
23generally permitted to holders of a license under the Liquor
24Control Act of 1934 within the unit of local government in
25which they are located. A licensed truck stop establishment

 

 

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1that does not hold a liquor license may operate video gaming
2terminals on a continuous basis. 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 county with a population
6between 6,500 and 7,000, based on the 2000 U.S. Census, (ii)
7the county prohibits by ordinance the sale of alcohol, and
8(iii) the establishment is in a portion of the county where the
9sale of alcohol is prohibited. A licensed fraternal
10establishment or licensed veterans establishment that does not
11hold a liquor license may operate video gaming terminals if (i)
12the establishment is located in a municipality within a county
13with a population between 8,500 and 9,000 based on the 2000
14U.S. Census and (ii) the municipality or county prohibits or
15limits the sale of alcohol by ordinance in a way that prohibits
16the establishment from selling alcohol.
17(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10;
1897-594, eff. 8-26-11.)
 
19    (230 ILCS 40/58)
20    Sec. 58. Location of terminals. Video gaming terminals
21must be located in an area restricted to persons over 21 years
22of age the entrance to which is within the view of at least one
23employee, who is over 21 years of age, of the establishment in
24which they are located. The placement of video gaming terminals
25in licensed establishments, licensed truck stop

 

 

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1establishments, licensed social clubs, licensed fraternal
2establishments, and licensed veterans establishments shall be
3subject to the rules promulgated by the Board pursuant to the
4Illinois Administrative Procedure Act.
5(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
 
6    (230 ILCS 40/60)
7    Sec. 60. Imposition and distribution of tax.
8    (a) A tax of 30% is imposed on net terminal income and
9shall be collected by the Board.
10    (b) Of the tax collected under this Section, five-sixths
11shall be deposited into the Capital Projects Fund and one-sixth
12shall be deposited into the Local Government Video Gaming
13Distributive Fund.
14    (c) Revenues generated from the play of video gaming
15terminals shall be deposited by the terminal operator, who is
16responsible for tax payments, in a specially created, separate
17bank account maintained by the video gaming terminal operator
18to allow for electronic fund transfers of moneys for tax
19payment.
20    (d) Each licensed establishment, licensed truck stop
21establishment, licensed social club, licensed fraternal
22establishment, and licensed veterans establishment shall
23maintain an adequate video gaming fund, with the amount to be
24determined by the Board.
25    (e) The State's percentage of net terminal income shall be

 

 

09800SB2371ham001- 23 -LRB098 10401 AMC 46182 a

1reported and remitted to the Board within 15 days after the
215th day of each month and within 15 days after the end of each
3month by the video terminal operator. A video terminal operator
4who falsely reports or fails to report the amount due required
5by this Section is guilty of a Class 4 felony and is subject to
6termination of his or her license by the Board. Each video
7terminal operator shall keep a record of net terminal income in
8such form as the Board may require. All payments not remitted
9when due shall be paid together with a penalty assessment on
10the unpaid balance at a rate of 1.5% per month.
11(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
 
12    Section 10. The Criminal Code of 2012 is amended by
13changing Sections 28-1 and 28-1.1 as follows:
 
14    (720 ILCS 5/28-1)  (from Ch. 38, par. 28-1)
15    Sec. 28-1. Gambling.
16    (a) A person commits gambling when he or she:
17        (1) knowingly plays a game of chance or skill for money
18    or other thing of value, unless excepted in subsection (b)
19    of this Section;
20        (2) knowingly makes a wager upon the result of any
21    game, contest, or any political nomination, appointment or
22    election;
23        (3) knowingly operates, keeps, owns, uses, purchases,
24    exhibits, rents, sells, bargains for the sale or lease of,

 

 

09800SB2371ham001- 24 -LRB098 10401 AMC 46182 a

1    manufactures or distributes any gambling device;
2        (4) contracts to have or give himself or herself or
3    another the option to buy or sell, or contracts to buy or
4    sell, at a future time, any grain or other commodity
5    whatsoever, or any stock or security of any company, where
6    it is at the time of making such contract intended by both
7    parties thereto that the contract to buy or sell, or the
8    option, whenever exercised, or the contract resulting
9    therefrom, shall be settled, not by the receipt or delivery
10    of such property, but by the payment only of differences in
11    prices thereof; however, the issuance, purchase, sale,
12    exercise, endorsement or guarantee, by or through a person
13    registered with the Secretary of State pursuant to Section
14    8 of the Illinois Securities Law of 1953, or by or through
15    a person exempt from such registration under said Section
16    8, of a put, call, or other option to buy or sell
17    securities which have been registered with the Secretary of
18    State or which are exempt from such registration under
19    Section 3 of the Illinois Securities Law of 1953 is not
20    gambling within the meaning of this paragraph (4);
21        (5) knowingly owns or possesses any book, instrument or
22    apparatus by means of which bets or wagers have been, or
23    are, recorded or registered, or knowingly possesses any
24    money which he has received in the course of a bet or
25    wager;
26        (6) knowingly sells pools upon the result of any game

 

 

09800SB2371ham001- 25 -LRB098 10401 AMC 46182 a

1    or contest of skill or chance, political nomination,
2    appointment or election;
3        (7) knowingly sets up or promotes any lottery or sells,
4    offers to sell or transfers any ticket or share for any
5    lottery;
6        (8) knowingly sets up or promotes any policy game or
7    sells, offers to sell or knowingly possesses or transfers
8    any policy ticket, slip, record, document or other similar
9    device;
10        (9) knowingly drafts, prints or publishes any lottery
11    ticket or share, or any policy ticket, slip, record,
12    document or similar device, except for such activity
13    related to lotteries, bingo games and raffles authorized by
14    and conducted in accordance with the laws of Illinois or
15    any other state or foreign government;
16        (10) knowingly advertises any lottery or policy game,
17    except for such activity related to lotteries, bingo games
18    and raffles authorized by and conducted in accordance with
19    the laws of Illinois or any other state;
20        (11) knowingly transmits information as to wagers,
21    betting odds, or changes in betting odds by telephone,
22    telegraph, radio, semaphore or similar means; or knowingly
23    installs or maintains equipment for the transmission or
24    receipt of such information; except that nothing in this
25    subdivision (11) prohibits transmission or receipt of such
26    information for use in news reporting of sporting events or

 

 

09800SB2371ham001- 26 -LRB098 10401 AMC 46182 a

1    contests; or
2        (12) knowingly establishes, maintains, or operates an
3    Internet site that permits a person to play a game of
4    chance or skill for money or other thing of value by means
5    of the Internet or to make a wager upon the result of any
6    game, contest, political nomination, appointment, or
7    election by means of the Internet. This item (12) does not
8    apply to activities referenced in items (6) and (6.1) of
9    subsection (b) of this Section.
10    (b) Participants in any of the following activities shall
11not be convicted of gambling:
12        (1) Agreements to compensate for loss caused by the
13    happening of chance including without limitation contracts
14    of indemnity or guaranty and life or health or accident
15    insurance.
16        (2) Offers of prizes, award or compensation to the
17    actual contestants in any bona fide contest for the
18    determination of skill, speed, strength or endurance or to
19    the owners of animals or vehicles entered in such contest.
20        (3) Pari-mutuel betting as authorized by the law of
21    this State.
22        (4) Manufacture of gambling devices, including the
23    acquisition of essential parts therefor and the assembly
24    thereof, for transportation in interstate or foreign
25    commerce to any place outside this State when such
26    transportation is not prohibited by any applicable Federal

 

 

09800SB2371ham001- 27 -LRB098 10401 AMC 46182 a

1    law; or the manufacture, distribution, or possession of
2    video gaming terminals, as defined in the Video Gaming Act,
3    by manufacturers, distributors, and terminal operators
4    licensed to do so under the Video Gaming Act.
5        (5) The game commonly known as "bingo", when conducted
6    in accordance with the Bingo License and Tax Act.
7        (6) Lotteries when conducted by the State of Illinois
8    in accordance with the Illinois Lottery Law. This exemption
9    includes any activity conducted by the Department of
10    Revenue to sell lottery tickets pursuant to the provisions
11    of the Illinois Lottery Law and its rules.
12        (6.1) The purchase of lottery tickets through the
13    Internet for a lottery conducted by the State of Illinois
14    under the program established in Section 7.12 of the
15    Illinois Lottery Law.
16        (7) Possession of an antique slot machine that is
17    neither used nor intended to be used in the operation or
18    promotion of any unlawful gambling activity or enterprise.
19    For the purpose of this subparagraph (b)(7), an antique
20    slot machine is one manufactured 25 years ago or earlier.
21        (8) Raffles when conducted in accordance with the
22    Raffles Act.
23        (9) Charitable games when conducted in accordance with
24    the Charitable Games Act.
25        (10) Pull tabs and jar games when conducted under the
26    Illinois Pull Tabs and Jar Games Act.

 

 

09800SB2371ham001- 28 -LRB098 10401 AMC 46182 a

1        (11) Gambling games conducted on riverboats when
2    authorized by the Riverboat Gambling Act.
3        (12) Video gaming terminal games at a licensed
4    establishment, licensed truck stop establishment, licensed
5    social club, licensed fraternal establishment, or licensed
6    veterans establishment when conducted in accordance with
7    the Video Gaming Act.
8        (13) Games of skill or chance where money or other
9    things of value can be won but no payment or purchase is
10    required to participate.
11    (c) Sentence.
12    Gambling is a Class A misdemeanor. A second or subsequent
13conviction under subsections (a)(3) through (a)(12), is a Class
144 felony.
15    (d) Circumstantial evidence.
16    In prosecutions under this Section circumstantial evidence
17shall have the same validity and weight as in any criminal
18prosecution.
19(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09;
2096-1203, eff. 7-22-10; 97-1108, eff. 1-1-13.)
 
21    (720 ILCS 5/28-1.1)   (from Ch. 38, par. 28-1.1)
22    Sec. 28-1.1. Syndicated gambling.
23    (a) Declaration of Purpose. Recognizing the close
24relationship between professional gambling and other organized
25crime, it is declared to be the policy of the legislature to

 

 

09800SB2371ham001- 29 -LRB098 10401 AMC 46182 a

1restrain persons from engaging in the business of gambling for
2profit in this State. This Section shall be liberally construed
3and administered with a view to carrying out this policy.
4    (b) A person commits syndicated gambling when he or she
5operates a "policy game" or engages in the business of
6bookmaking.
7    (c) A person "operates a policy game" when he or she
8knowingly uses any premises or property for the purpose of
9receiving or knowingly does receive from what is commonly
10called "policy":
11        (1) money from a person other than the bettor or player
12    whose bets or plays are represented by the money; or
13        (2) written "policy game" records, made or used over
14    any period of time, from a person other than the bettor or
15    player whose bets or plays are represented by the written
16    record.
17    (d) A person engages in bookmaking when he or she knowingly
18receives or accepts more than five bets or wagers upon the
19result of any trials or contests of skill, speed or power of
20endurance or upon any lot, chance, casualty, unknown or
21contingent event whatsoever, which bets or wagers shall be of
22such size that the total of the amounts of money paid or
23promised to be paid to the bookmaker on account thereof shall
24exceed $2,000. Bookmaking is the receiving or accepting of bets
25or wagers regardless of the form or manner in which the
26bookmaker records them.

 

 

09800SB2371ham001- 30 -LRB098 10401 AMC 46182 a

1    (e) Participants in any of the following activities shall
2not be convicted of syndicated gambling:
3        (1) Agreements to compensate for loss caused by the
4    happening of chance including without limitation contracts
5    of indemnity or guaranty and life or health or accident
6    insurance;
7        (2) Offers of prizes, award or compensation to the
8    actual contestants in any bona fide contest for the
9    determination of skill, speed, strength or endurance or to
10    the owners of animals or vehicles entered in the contest;
11        (3) Pari-mutuel betting as authorized by law of this
12    State;
13        (4) Manufacture of gambling devices, including the
14    acquisition of essential parts therefor and the assembly
15    thereof, for transportation in interstate or foreign
16    commerce to any place outside this State when the
17    transportation is not prohibited by any applicable Federal
18    law;
19        (5) Raffles when conducted in accordance with the
20    Raffles Act;
21        (6) Gambling games conducted on riverboats when
22    authorized by the Riverboat Gambling Act; and
23        (7) Video gaming terminal games at a licensed
24    establishment, licensed truck stop establishment, licensed
25    social club, licensed fraternal establishment, or licensed
26    veterans establishment when conducted in accordance with

 

 

09800SB2371ham001- 31 -LRB098 10401 AMC 46182 a

1    the Video Gaming Act.
2    (f) Sentence. Syndicated gambling is a Class 3 felony.
3(Source: P.A. 96-34, eff. 7-13-09; 97-1108, eff. 1-1-13.)
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.".