Full Text of SB1664 100th General Assembly
SB1664 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 SB1664 Introduced 2/9/2017, by Sen. James F. Clayborne, Jr. SYNOPSIS AS INTRODUCED: |
| 230 ILCS 40/5 | | 230 ILCS 40/20 | | 230 ILCS 40/25 | | 230 ILCS 40/35 | | 230 ILCS 40/45 | | 230 ILCS 40/55 | | 230 ILCS 40/58 | | 230 ILCS 40/60 | |
|
Amends the Video Gaming Act. Provides for the licensure of a motorsports park under the Act. Provides that a licensed motorsports park may operate up to 200 video gaming terminals on its premises at any time. Requires the owner of the licensed motorsports park to enter into a written use agreement with a terminal operator for placement of the terminals. Makes conforming changes in provisions concerning receipt tickets, licensure of terminals, issuance of licenses and license fees, the necessity of a liquor license for licensure, location of terminals, and imposition of a tax. Effective immediately.
|
| |
| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
|
| | | SB1664 | | LRB100 07142 AMC 17198 b |
|
| 1 | | AN ACT concerning gaming.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Video Gaming
Act is amended by changing | 5 | | Sections 5, 20, 25, 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 | 10 | | purchased by a player.
| 11 | | "Distributor" means an individual, partnership, | 12 | | corporation, or limited liability company licensed under
this | 13 | | Act to buy, sell, lease, or distribute video gaming terminals | 14 | | or major
components or parts of video gaming terminals to or | 15 | | from terminal
operators.
| 16 | | "Electronic card" means a card purchased from a licensed | 17 | | establishment, licensed fraternal establishment, licensed | 18 | | veterans establishment, or licensed truck stop establishment , | 19 | | or licensed motorsports park for use in that establishment as a | 20 | | substitute for cash in the conduct of gaming on a video gaming | 21 | | terminal. | 22 | | "Electronic voucher" means a voucher printed by an | 23 | | electronic video game machine that is redeemable in the |
| | | SB1664 | - 2 - | LRB100 07142 AMC 17198 b |
|
| 1 | | licensed establishment for which it was issued. | 2 | | "Terminal operator" means an individual, partnership, | 3 | | corporation, or limited liability company that is
licensed | 4 | | under this Act and that owns, services, and maintains video
| 5 | | gaming terminals for placement in licensed establishments, | 6 | | licensed truck stop establishments, licensed fraternal
| 7 | | establishments, or licensed veterans establishments.
| 8 | | "Licensed technician" means an individual
who
is licensed | 9 | | under this Act to repair,
service, and maintain
video gaming | 10 | | terminals.
| 11 | | "Licensed terminal handler" means a person, including but | 12 | | not limited to an employee or independent contractor working | 13 | | for a manufacturer, distributor, supplier, technician, or | 14 | | terminal operator, who is licensed under this Act to possess or | 15 | | control a video gaming terminal or to have access to the inner | 16 | | workings of a video gaming terminal. A licensed terminal | 17 | | handler does not include an individual, partnership, | 18 | | corporation, or limited liability company defined as a | 19 | | manufacturer, distributor, supplier, technician, or terminal | 20 | | operator under this Act. | 21 | | "Manufacturer" means an individual, partnership, | 22 | | corporation, or limited liability company that is
licensed | 23 | | under this Act and that manufactures or assembles video gaming
| 24 | | terminals.
| 25 | | "Supplier" means an individual, partnership, corporation, | 26 | | or limited liability company that is
licensed under this Act to |
| | | SB1664 | - 3 - | LRB100 07142 AMC 17198 b |
|
| 1 | | supply major components or parts to video gaming
terminals to | 2 | | licensed
terminal operators.
| 3 | | "Net terminal income" means money put into a video gaming | 4 | | terminal minus
credits paid out to players.
| 5 | | "Video gaming terminal" means any electronic video game | 6 | | machine
that, upon insertion of cash, electronic cards or | 7 | | vouchers, or any combination thereof, is available to play or | 8 | | simulate the play of
a video game, including but not limited to | 9 | | video poker, line up, and blackjack, as
authorized by the Board | 10 | | utilizing a video display and microprocessors in
which the | 11 | | player may receive free games or credits that can be
redeemed | 12 | | for cash. The term does not include a machine that directly
| 13 | | dispenses coins, cash, or tokens or is for amusement purposes | 14 | | only.
| 15 | | "Licensed establishment" means any licensed retail | 16 | | establishment where
alcoholic liquor is drawn, poured, mixed, | 17 | | or otherwise served for consumption
on the premises, whether | 18 | | the establishment operates on a nonprofit or for-profit basis. | 19 | | "Licensed establishment" includes any such establishment that | 20 | | has a contractual relationship with an inter-track wagering | 21 | | location licensee licensed under the Illinois Horse Racing Act | 22 | | of 1975, provided any contractual relationship shall not | 23 | | include any transfer or offer of revenue from the operation of | 24 | | video gaming under this Act to any licensee licensed under the | 25 | | Illinois Horse Racing Act of 1975. Provided, however, that the | 26 | | licensed establishment that has such a contractual |
| | | SB1664 | - 4 - | LRB100 07142 AMC 17198 b |
|
| 1 | | relationship with an inter-track wagering location licensee | 2 | | may not, itself, be (i) an inter-track wagering location | 3 | | licensee, (ii) the corporate parent or subsidiary of any | 4 | | licensee licensed under the Illinois Horse Racing Act of 1975, | 5 | | or (iii) the corporate subsidiary of a corporation that is also | 6 | | the corporate parent or subsidiary of any licensee licensed | 7 | | under the Illinois Horse Racing Act of 1975. "Licensed | 8 | | establishment" does not include a facility operated by an | 9 | | organization licensee, an inter-track wagering licensee, or an | 10 | | inter-track wagering location licensee licensed under the | 11 | | Illinois Horse Racing Act of 1975 or a riverboat licensed under | 12 | | the Riverboat Gambling Act, except as provided in this | 13 | | paragraph. The changes made to this definition by Public Act | 14 | | 98-587 are declarative of existing law.
| 15 | | "Licensed fraternal establishment" means the location | 16 | | where a qualified
fraternal organization that derives its | 17 | | charter from a national fraternal
organization regularly | 18 | | meets.
| 19 | | "Licensed veterans establishment" means the location where | 20 | | a qualified
veterans organization that derives its charter from | 21 | | a national veterans
organization regularly meets.
| 22 | | "Licensed truck stop establishment" means a facility (i) | 23 | | that is at least a
3-acre facility with a convenience store, | 24 | | (ii) with separate diesel
islands for fueling commercial motor | 25 | | vehicles, (iii) that sells at retail more than 10,000 gallons | 26 | | of diesel or biodiesel fuel per month, and (iv) with parking |
| | | SB1664 | - 5 - | LRB100 07142 AMC 17198 b |
|
| 1 | | spaces for commercial
motor vehicles. "Commercial motor | 2 | | vehicles" has the same meaning as defined in Section 18b-101 of | 3 | | the Illinois Vehicle Code. The requirement of item (iii) of | 4 | | this paragraph may be met by showing that estimated future | 5 | | sales or past sales average at least 10,000 gallons per month.
| 6 | | "Licensed motorsports park" means a facility located in a | 7 | | county with a population of 500,000 or less that is within 5 | 8 | | miles of 3 interstate highways and that has seating capacity | 9 | | for motorsports of 50,000 people or more. | 10 | | (Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; | 11 | | 98-582, eff. 8-27-13; 98-587, eff. 8-27-13; 98-756, eff. | 12 | | 7-16-14.)
| 13 | | (230 ILCS 40/20)
| 14 | | Sec. 20. Direct dispensing of receipt tickets only. A video | 15 | | gaming
terminal may not
directly dispense coins, cash, tokens, | 16 | | or any other article of exchange or
value except for receipt | 17 | | tickets. Tickets shall be dispensed by
pressing the ticket | 18 | | dispensing button on the video gaming terminal at the end
of | 19 | | one's turn or play. The ticket shall indicate the total amount | 20 | | of credits
and the cash award, the time of day in a 24-hour | 21 | | format showing hours and
minutes, the date, the
terminal serial | 22 | | number, the sequential number of the ticket, and an encrypted
| 23 | | validation number from which the validity of the prize may be | 24 | | determined.
The player shall turn in this ticket to the | 25 | | appropriate
person at the licensed establishment, licensed |
| | | SB1664 | - 6 - | LRB100 07142 AMC 17198 b |
|
| 1 | | truck stop establishment, licensed fraternal establishment,
or
| 2 | | licensed veterans establishment , or licensed motorsports park
| 3 | | to receive the cash award. The cost
of the credit shall be one | 4 | | cent, 5 cents, 10 cents, or 25 cents, and the maximum
wager | 5 | | played per hand shall not exceed $2.
No cash award for the | 6 | | maximum wager on any
individual hand shall exceed $500.
| 7 | | (Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.)
| 8 | | (230 ILCS 40/25)
| 9 | | Sec. 25. Restriction of licensees.
| 10 | | (a) Manufacturer. A person may not be licensed as a | 11 | | manufacturer of a
video gaming terminal in Illinois unless the | 12 | | person has a valid
manufacturer's license issued
under this | 13 | | Act. A manufacturer may only sell video gaming terminals for | 14 | | use
in Illinois to
persons having a valid distributor's | 15 | | license.
| 16 | | (b) Distributor. A person may not sell, distribute, or | 17 | | lease
or market a video gaming terminal in Illinois unless the | 18 | | person has a valid
distributor's
license issued under this Act. | 19 | | A distributor may only sell video gaming
terminals for use in
| 20 | | Illinois to persons having a valid distributor's or terminal | 21 | | operator's
license.
| 22 | | (c) Terminal operator. A person may not own, maintain, or | 23 | | place a video gaming terminal unless he has a valid terminal | 24 | | operator's
license issued
under this Act. A terminal operator | 25 | | may only place video gaming terminals for
use in
Illinois in |
| | | SB1664 | - 7 - | LRB100 07142 AMC 17198 b |
|
| 1 | | licensed establishments, licensed truck stop establishments, | 2 | | licensed fraternal establishments,
and
licensed veterans | 3 | | establishments.
No terminal operator may give anything of | 4 | | value, including but not limited to
a loan or financing | 5 | | arrangement, to a licensed establishment, licensed truck stop | 6 | | establishment,
licensed fraternal establishment, or licensed | 7 | | veterans establishment as
any incentive or inducement to locate | 8 | | video terminals in that establishment.
Of the after-tax profits
| 9 | | from a video gaming terminal, 50% shall be paid to the terminal
| 10 | | operator and 50% shall be paid to the licensed establishment, | 11 | | licensed truck stop establishment,
licensed fraternal | 12 | | establishment, or
licensed veterans establishment, | 13 | | notwithstanding any agreement to the contrary.
A video terminal | 14 | | operator that violates one or more requirements of this | 15 | | subsection is guilty of a Class 4 felony and is subject to | 16 | | termination of his or her license by the Board.
| 17 | | (d) Licensed technician. A person may not service, | 18 | | maintain, or repair a
video gaming terminal
in this State | 19 | | unless he or she (1) has a valid technician's license issued
| 20 | | under this Act, (2) is a terminal operator, or (3) is employed | 21 | | by a terminal
operator, distributor, or manufacturer.
| 22 | | (d-5) Licensed terminal handler. No person, including, but | 23 | | not limited to, an employee or independent contractor working | 24 | | for a manufacturer, distributor, supplier, technician, or | 25 | | terminal operator licensed pursuant to this Act, shall have | 26 | | possession or control of a video gaming terminal, or access to |
| | | SB1664 | - 8 - | LRB100 07142 AMC 17198 b |
|
| 1 | | the inner workings of a video gaming terminal, unless that | 2 | | person possesses a valid terminal handler's license issued | 3 | | under this Act. | 4 | | (e) Licensed establishment. No video gaming terminal may be | 5 | | placed in any licensed establishment, licensed veterans | 6 | | establishment, licensed truck stop establishment,
or licensed | 7 | | fraternal establishment
unless the owner
or agent of the owner | 8 | | of the licensed establishment, licensed veterans | 9 | | establishment, licensed truck stop establishment, or licensed
| 10 | | fraternal establishment has entered into a
written use | 11 | | agreement with the terminal operator for placement of the
| 12 | | terminals. A copy of the use agreement shall be on file in the | 13 | | terminal
operator's place of business and available for | 14 | | inspection by individuals
authorized by the Board. A licensed | 15 | | establishment, licensed truck stop establishment, licensed | 16 | | veterans establishment,
or
licensed
fraternal
establishment | 17 | | may operate up to 5 video gaming terminals on its premises at | 18 | | any
time.
| 19 | | (e-5) Licensed motorsports park. No video gaming terminal | 20 | | may be placed in a licensed motorsports park unless the owner | 21 | | or agent of the owner of the licensed motorsports park has | 22 | | entered into a written use agreement with the terminal operator | 23 | | for placement of the terminals. A copy of the use agreement | 24 | | shall be on file in the terminal operator's place of business | 25 | | and available for inspection by individuals authorized by the | 26 | | Board. A licensed motorsports park may operate up to 200 video |
| | | SB1664 | - 9 - | LRB100 07142 AMC 17198 b |
|
| 1 | | gaming terminals on its premises at any time. | 2 | | (f) (Blank).
| 3 | | (g) Financial interest restrictions.
As used in this Act, | 4 | | "substantial interest" in a partnership, a corporation, an
| 5 | | organization, an association, a business, or a limited | 6 | | liability company means:
| 7 | | (A) When, with respect to a sole proprietorship, an | 8 | | individual or
his or her spouse owns, operates, manages, or | 9 | | conducts, directly
or indirectly, the organization, | 10 | | association, or business, or any part thereof;
or
| 11 | | (B) When, with respect to a partnership, the individual | 12 | | or his or
her spouse shares in any of the profits, or | 13 | | potential profits,
of the partnership activities; or
| 14 | | (C) When, with respect to a corporation, an individual | 15 | | or his or her
spouse is an officer or director, or the | 16 | | individual or his or her spouse is a holder, directly or | 17 | | beneficially, of 5% or more of any class
of stock of the | 18 | | corporation; or
| 19 | | (D) When, with respect to an organization not covered | 20 | | in (A), (B) or
(C) above, an individual or his or her | 21 | | spouse is an officer or manages the
business affairs, or | 22 | | the individual or his or her spouse is the
owner of or | 23 | | otherwise controls 10% or more of the assets of the | 24 | | organization;
or
| 25 | | (E) When an individual or his or her spouse furnishes
| 26 | | 5% or more of the capital, whether in cash, goods, or |
| | | SB1664 | - 10 - | LRB100 07142 AMC 17198 b |
|
| 1 | | services, for the
operation of any business, association, | 2 | | or organization during any calendar
year; or | 3 | | (F) When, with respect to a limited liability company, | 4 | | an individual or his or her
spouse is a member, or the | 5 | | individual or his or her spouse is a holder, directly or | 6 | | beneficially, of 5% or more of the membership interest of | 7 | | the limited liability company.
| 8 | | For purposes of this subsection (g), "individual" includes | 9 | | all individuals or their spouses whose combined interest would | 10 | | qualify as a substantial interest under this subsection (g) and | 11 | | whose activities with respect to an organization, association, | 12 | | or business are so closely aligned or coordinated as to | 13 | | constitute the activities of a single entity. | 14 | | (h) Location restriction. A licensed establishment, | 15 | | licensed truck stop establishment, licensed
fraternal
| 16 | | establishment, or licensed veterans establishment , or licensed | 17 | | motorsports park that is (i) located within 1,000
feet of a | 18 | | facility operated by an organization licensee licensed under | 19 | | the Illinois Horse Racing Act of 1975 or the home dock of a | 20 | | riverboat licensed under the Riverboat
Gambling Act or (ii) | 21 | | located within 100 feet of a school or a place of worship under | 22 | | the Religious Corporation Act, is ineligible to operate a video | 23 | | gaming terminal. The location restrictions in this subsection | 24 | | (h) do not apply if (A) a facility operated by an organization | 25 | | licensee, a school, or a place of worship moves to or is | 26 | | established within the restricted area after a licensed |
| | | SB1664 | - 11 - | LRB100 07142 AMC 17198 b |
|
| 1 | | establishment, licensed truck stop establishment, licensed | 2 | | fraternal establishment, or licensed veterans establishment , | 3 | | or licensed motorsports park becomes licensed under this Act or | 4 | | (B) a school or place of worship moves to or is established | 5 | | within the restricted area after a licensed establishment, | 6 | | licensed truck stop establishment, licensed fraternal | 7 | | establishment, or licensed veterans establishment , or licensed | 8 | | motorsports park obtains its original liquor license. For the | 9 | | purpose of this subsection, "school" means an elementary or | 10 | | secondary public school, or an elementary or secondary private | 11 | | school registered with or recognized by the State Board of | 12 | | Education. | 13 | | Notwithstanding the provisions of this subsection (h), the | 14 | | Board may waive the requirement that a licensed establishment, | 15 | | licensed truck stop establishment, licensed fraternal | 16 | | establishment, or licensed veterans establishment , or licensed | 17 | | motorsports park not be located within 1,000 feet from a | 18 | | facility operated by an organization licensee licensed under | 19 | | the Illinois Horse Racing Act of 1975 or the home dock of a | 20 | | riverboat licensed under the Riverboat Gambling Act. The Board | 21 | | shall not grant such waiver if there is any common ownership or | 22 | | control, shared business activity, or contractual arrangement | 23 | | of any type between the establishment and the organization | 24 | | licensee or owners licensee of a riverboat. The Board shall | 25 | | adopt rules to implement the provisions of this paragraph. | 26 | | (i) Undue economic concentration. In addition to |
| | | SB1664 | - 12 - | LRB100 07142 AMC 17198 b |
|
| 1 | | considering all other requirements under this Act, in deciding | 2 | | whether to approve the operation of video gaming terminals by a | 3 | | terminal operator in a location, the Board shall consider the | 4 | | impact of any economic concentration of such operation of video | 5 | | gaming terminals. The Board shall not allow a terminal operator | 6 | | to operate video gaming terminals if the Board determines such | 7 | | operation will result in undue economic concentration. For | 8 | | purposes of this Section, "undue economic concentration" means | 9 | | that a terminal operator would have such actual or potential | 10 | | influence over video gaming terminals in Illinois as to: | 11 | | (1) substantially impede or suppress competition among | 12 | | terminal operators; | 13 | | (2) adversely impact the economic stability of the | 14 | | video gaming industry in Illinois; or | 15 | | (3) negatively impact the purposes of the Video Gaming | 16 | | Act. | 17 | | The Board shall adopt rules concerning undue economic | 18 | | concentration with respect to the operation of video gaming | 19 | | terminals in Illinois. The rules shall include, but not be | 20 | | limited to, (i) limitations on the number of video gaming | 21 | | terminals operated by any terminal operator within a defined | 22 | | geographic radius and (ii) guidelines on the discontinuation of | 23 | | operation of any such video gaming terminals the Board | 24 | | determines will cause undue economic concentration.
| 25 | | (j) The provisions of the Illinois Antitrust Act are fully | 26 | | and equally applicable to the activities of any licensee under |
| | | SB1664 | - 13 - | LRB100 07142 AMC 17198 b |
|
| 1 | | this Act.
| 2 | | (Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77, | 3 | | eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
| 4 | | (230 ILCS 40/35)
| 5 | | Sec. 35. Display of license; confiscation; violation as | 6 | | felony. | 7 | | (a) Each
video gaming terminal shall be licensed by the | 8 | | Board before placement
or operation on the premises of a | 9 | | licensed establishment, licensed truck stop
establishment, | 10 | | licensed
fraternal establishment, or licensed veterans | 11 | | establishment , or licensed motorsports park . The license of
| 12 | | each video gaming terminal shall be maintained
at the location | 13 | | where the video gaming terminal is operated. Failure to do so
| 14 | | is a petty offense with a fine
not to exceed $100.
Any licensed | 15 | | establishment, licensed truck stop establishment, licensed
| 16 | | fraternal establishment, or licensed
veterans establishment , | 17 | | or licensed motorsports park
used for the conduct of gambling | 18 | | games in violation of this Act shall be
considered a gambling | 19 | | place in violation of Section 28-3 of the Criminal
Code of | 20 | | 2012. Every gambling device found in
a licensed establishment, | 21 | | licensed truck stop establishment, licensed fraternal
| 22 | | establishment, or licensed
veterans establishment , or licensed | 23 | | motorsports park operating gambling games in violation of this
| 24 | | Act shall be subject to seizure, confiscation, and destruction | 25 | | as provided
in Section 28-5 of the Criminal Code of 2012.
Any |
| | | SB1664 | - 14 - | LRB100 07142 AMC 17198 b |
|
| 1 | | license issued under the Liquor Control Act
of 1934 to any | 2 | | owner or operator of a licensed establishment, licensed truck
| 3 | | stop establishment, licensed
fraternal establishment, or | 4 | | licensed veterans establishment , or licensed motorsports park | 5 | | that operates or
permits the operation of a video gaming | 6 | | terminal within its establishment in
violation of this Act | 7 | | shall be immediately revoked.
No person may own, operate, have | 8 | | in his or her possession or custody or under
his or her | 9 | | control, or permit to be kept in any place under his or her
| 10 | | possession or control, any
device that awards credits and | 11 | | contains a circuit, meter, or switch capable of
removing and | 12 | | recording the removal of credits when the award of credits is
| 13 | | dependent upon chance. | 14 | | Nothing in this Section shall be deemed to prohibit the use | 15 | | of a game device only if the game device is used in an activity | 16 | | that is not gambling under subsection (b) of Section 28-1 of | 17 | | the Criminal Code of 2012. | 18 | | A violation of this Section is a Class 4 felony. All
| 19 | | devices that are owned, operated, or possessed in violation of | 20 | | this Section are
hereby declared to be public nuisances and | 21 | | shall be subject to seizure,
confiscation, and destruction as | 22 | | provided in Section 28-5 of the Criminal Code
of 2012.
| 23 | | The provisions of this Section do not apply to devices or | 24 | | electronic video
game terminals licensed pursuant to this Act. | 25 | | A video gaming terminal operated for amusement only and bearing | 26 | | a valid amusement tax sticker shall not be subject to this |
| | | SB1664 | - 15 - | LRB100 07142 AMC 17198 b |
|
| 1 | | Section until 30 days after the Board establishes that the | 2 | | central communications system is functional.
| 3 | | (b) (1) The odds of winning each video game shall be posted | 4 | | on or near each video gaming terminal. The manner in which the | 5 | | odds are calculated and how they are posted shall be determined | 6 | | by the Board by rule. | 7 | | (2) No video gaming terminal licensed under this Act may be | 8 | | played except during the legal hours of operation allowed for | 9 | | the consumption of alcoholic beverages at the licensed | 10 | | establishment, licensed fraternal establishment, or licensed | 11 | | veterans establishment , or licensed motorsports park . A | 12 | | licensed establishment, licensed fraternal establishment, or | 13 | | licensed veterans establishment , or licensed motorsports park | 14 | | that violates this subsection is subject to termination of its | 15 | | license by the Board. | 16 | | (Source: P.A. 97-1150, eff. 1-25-13; 98-111, eff. 1-1-14.)
| 17 | | (230 ILCS 40/45)
| 18 | | Sec. 45. Issuance of license.
| 19 | | (a) The burden is upon each applicant to
demonstrate his | 20 | | suitability for licensure. Each video gaming terminal
| 21 | | manufacturer, distributor, supplier, operator, handler, | 22 | | licensed establishment, licensed truck stop establishment, | 23 | | licensed
fraternal
establishment, and licensed veterans | 24 | | establishment , and licensed motorsports park shall be
licensed | 25 | | by the Board.
The Board may issue or deny a license under this |
| | | SB1664 | - 16 - | LRB100 07142 AMC 17198 b |
|
| 1 | | Act to any person pursuant to the same criteria set forth in | 2 | | Section 9 of the Riverboat Gambling Act.
| 3 | | (a-5) The Board shall not grant a license to a person who | 4 | | has facilitated, enabled, or participated in the use of | 5 | | coin-operated devices for gambling purposes or who is under the | 6 | | significant influence or control of such a person. For the | 7 | | purposes of this Act, "facilitated, enabled, or participated in | 8 | | the use of coin-operated amusement devices for gambling | 9 | | purposes" means that the person has been convicted of any | 10 | | violation of Article 28 of the Criminal Code of 1961 or the | 11 | | Criminal Code of 2012. If there is pending legal action against | 12 | | a person for any such violation, then the Board shall delay the | 13 | | licensure of that person until the legal action is resolved. | 14 | | (b) Each person seeking and possessing a license as a video | 15 | | gaming terminal manufacturer, distributor, supplier, operator, | 16 | | handler, licensed establishment, licensed truck stop | 17 | | establishment, licensed fraternal establishment, or licensed | 18 | | veterans establishment , or licensed motorsports park shall | 19 | | submit to a background investigation conducted by the Board | 20 | | with the assistance of the State Police or other law | 21 | | enforcement. To the extent that the corporate structure of the | 22 | | applicant allows, the background investigation shall include | 23 | | any or all of the following as the Board deems appropriate or | 24 | | as provided by rule for each category of licensure: (i) each | 25 | | beneficiary of a trust, (ii) each partner of a partnership, | 26 | | (iii) each member of a limited liability company, (iv) each |
| | | SB1664 | - 17 - | LRB100 07142 AMC 17198 b |
|
| 1 | | director and officer of a publicly or non-publicly held | 2 | | corporation, (v) each stockholder of a non-publicly held | 3 | | corporation, (vi) each stockholder of 5% or more of a publicly | 4 | | held corporation, or (vii) each stockholder of 5% or more in a | 5 | | parent or subsidiary corporation. | 6 | | (c) Each person seeking and possessing a license as a video | 7 | | gaming terminal manufacturer, distributor, supplier, operator, | 8 | | handler, licensed establishment, licensed truck stop | 9 | | establishment, licensed fraternal establishment, or licensed | 10 | | veterans establishment , or licensed motorsports park shall | 11 | | disclose the identity of every person, association, trust, | 12 | | corporation, or limited liability company having a greater than | 13 | | 1% direct or indirect pecuniary interest in the video gaming | 14 | | terminal operation for which the license is sought. If the | 15 | | disclosed entity is a trust, the application shall disclose the | 16 | | names and addresses of the beneficiaries; if a corporation, the | 17 | | names and addresses of all stockholders and directors; if a | 18 | | limited liability company, the names and addresses of all | 19 | | members; or if a partnership, the names and addresses of all | 20 | | partners, both general and limited. | 21 | | (d) No person may be licensed as a video gaming terminal | 22 | | manufacturer, distributor, supplier, operator, handler, | 23 | | licensed establishment, licensed truck stop establishment, | 24 | | licensed fraternal establishment, or licensed veterans | 25 | | establishment , or licensed motorsports park if that person has | 26 | | been found by the Board to: |
| | | SB1664 | - 18 - | LRB100 07142 AMC 17198 b |
|
| 1 | | (1) have a background, including a criminal record, | 2 | | reputation, habits, social or business associations, or | 3 | | prior activities that pose a threat to the public interests | 4 | | of the State or to the security and integrity of video | 5 | | gaming; | 6 | | (2) create or enhance the dangers of unsuitable, | 7 | | unfair, or illegal practices, methods, and activities in | 8 | | the conduct of video gaming; or | 9 | | (3) present questionable business practices and | 10 | | financial arrangements incidental to the conduct of video | 11 | | gaming activities. | 12 | | (e) Any applicant for any license under this Act has the | 13 | | burden of proving his or her qualifications to the satisfaction | 14 | | of the Board. The Board may adopt rules to establish additional | 15 | | qualifications and requirements to preserve the integrity and | 16 | | security of video gaming in this State. | 17 | | (f) A non-refundable application fee shall be paid at the | 18 | | time an
application for a license is filed with the Board in | 19 | | the following amounts:
| 20 | | (1) Manufacturer ..........................$5,000
| 21 | | (2) Distributor ...........................$5,000
| 22 | | (3) Terminal operator .....................$5,000
| 23 | | (4) Supplier ..............................$2,500
| 24 | | (5) Technician ..............................$100
| 25 | | (6) Terminal Handler ..............................$50 | 26 | | (g) The Board shall establish an
annual fee for each |
| | | SB1664 | - 19 - | LRB100 07142 AMC 17198 b |
|
| 1 | | license not to exceed the following: | 2 | | (1) Manufacturer .........................$10,000
| 3 | | (2) Distributor ..........................$10,000
| 4 | | (3) Terminal operator .....................$5,000
| 5 | | (4) Supplier ..............................$2,000
| 6 | | (5) Technician ..............................$100
| 7 | | (6) Licensed establishment, licensed truck stop
| 8 | | establishment, licensed fraternal establishment,
| 9 | | or licensed veterans establishment ..............$100
| 10 | | (7) Video gaming terminal ...................$100
| 11 | | (8) Terminal Handler .........................$50
| 12 | | (9) Licensed motorsports park ..................$5,000
| 13 | | (h) A terminal operator and a licensed establishment, | 14 | | licensed truck stop establishment, licensed fraternal | 15 | | establishment,
or licensed veterans establishment shall | 16 | | equally split the fees specified in item (7) of subsection (g). | 17 | | (Source: P.A. 97-1150, eff. 1-25-13; 98-31, eff. 6-24-13; | 18 | | 98-587, eff. 8-27-13; 98-756, eff. 7-16-14.)
| 19 | | (230 ILCS 40/55)
| 20 | | Sec. 55. Precondition for licensed location. In all cases | 21 | | of
application for a licensed location,
to operate a video | 22 | | gaming terminal,
each licensed establishment, licensed
| 23 | | fraternal establishment, or licensed veterans
establishment , | 24 | | or licensed motorsports park
shall
possess a valid liquor | 25 | | license issued by the Illinois Liquor Control Commission
in |
| | | SB1664 | - 20 - | LRB100 07142 AMC 17198 b |
|
| 1 | | effect at the time of application
and at all times thereafter | 2 | | during which a video
gaming terminal is made available to the | 3 | | public for play at that location. Video gaming terminals in a | 4 | | licensed location shall be
operated only during the same hours | 5 | | of operation generally permitted to holders of a license under | 6 | | the Liquor Control Act of 1934 within the unit of local | 7 | | government in which they are located. A licensed truck stop | 8 | | establishment that does not hold a liquor license may operate | 9 | | video gaming terminals on a continuous basis. A licensed | 10 | | fraternal establishment or licensed veterans establishment | 11 | | that does not hold a liquor license may operate video gaming | 12 | | terminals if (i) the establishment is located in a county with | 13 | | a population between 6,500 and 7,000, based on the 2000 U.S. | 14 | | Census, (ii) the county prohibits by ordinance the sale of | 15 | | alcohol, and (iii) the establishment is in a portion of the | 16 | | county where the sale of alcohol is prohibited. A licensed | 17 | | fraternal establishment or licensed veterans establishment
| 18 | | that does not hold a liquor license may operate video gaming | 19 | | terminals
if (i) the establishment is located in a municipality | 20 | | within a county with a population
between 8,500 and 9,000 based | 21 | | on the 2000 U.S. Census and (ii) the
municipality or county | 22 | | prohibits or limits the sale of alcohol by ordinance in a way
| 23 | | that prohibits the establishment from selling alcohol.
| 24 | | (Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10; | 25 | | 97-594, eff. 8-26-11.) |
| | | SB1664 | - 21 - | LRB100 07142 AMC 17198 b |
|
| 1 | | (230 ILCS 40/58)
| 2 | | Sec. 58. Location of terminals. Video gaming terminals | 3 | | must be located
in an area restricted to persons over 21 years | 4 | | of age the entrance to which is within the view of at least one | 5 | | employee, who is over 21 years of age, of the
establishment in | 6 | | which they are located. The placement of video gaming terminals | 7 | | in licensed establishments, licensed truck stop | 8 | | establishments, licensed fraternal establishments, and | 9 | | licensed veterans establishments , and licensed motorsports | 10 | | park shall be subject to the rules promulgated by the Board | 11 | | pursuant to the Illinois Administrative Procedure Act.
| 12 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.) | 13 | | (230 ILCS 40/60)
| 14 | | Sec. 60. Imposition and distribution of tax.
| 15 | | (a) A tax of 30% is imposed on net terminal income
and | 16 | | shall be collected by the Board.
| 17 | | (b) Of the tax collected under this Section, five-sixths | 18 | | shall be
deposited into the Capital Projects Fund and one-sixth | 19 | | shall be deposited into the Local Government Video Gaming | 20 | | Distributive Fund.
| 21 | | (c) Revenues generated from the play of video gaming | 22 | | terminals shall be
deposited by the terminal operator, who is | 23 | | responsible for tax payments, in
a specially created, separate | 24 | | bank account maintained by the video gaming
terminal operator | 25 | | to allow for electronic fund transfers of moneys for tax |
| | | SB1664 | - 22 - | LRB100 07142 AMC 17198 b |
|
| 1 | | payment.
| 2 | | (d) Each licensed establishment, licensed truck stop | 3 | | establishment, licensed fraternal establishment,
and licensed | 4 | | veterans establishment , and licensed motorsports park shall | 5 | | maintain an adequate video gaming
fund, with the amount to be | 6 | | determined by the Board.
| 7 | | (e) The State's percentage of net terminal income shall be | 8 | | reported and remitted to the Board within 15 days after the | 9 | | 15th day of each month and within 15 days after the end of each | 10 | | month by the video terminal operator. A video terminal operator | 11 | | who falsely reports or fails to report the amount due required | 12 | | by this Section is guilty of a Class 4 felony and is subject to | 13 | | termination of his or her license by the Board. Each video | 14 | | terminal operator shall keep a record of net terminal income in | 15 | | such form as the Board may require. All payments not remitted | 16 | | when due shall be paid together with a penalty assessment on | 17 | | the unpaid balance at a rate of 1.5% per month. | 18 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
| 19 | | Section 99. Effective date. This Act takes effect upon | 20 | | becoming law. |
|