Full Text of HB2311 98th General Assembly
HB2311eng 98TH GENERAL ASSEMBLY |
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| 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, 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 | 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 | | "Terminal operator" means an individual, partnership, | 17 | | corporation, or limited liability company that is
licensed | 18 | | under this Act and that owns, services, and maintains video
| 19 | | gaming terminals for placement in licensed establishments, | 20 | | licensed truck stop establishments, licensed social clubs, | 21 | | licensed fraternal
establishments, or licensed veterans | 22 | | establishments.
| 23 | | "Licensed technician" means an individual
who
is licensed |
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| 1 | | under this Act to repair,
service, and maintain
video gaming | 2 | | terminals.
| 3 | | "Licensed terminal handler" means a person, including but | 4 | | not limited to an employee or independent contractor working | 5 | | for a manufacturer, distributor, supplier, technician, or | 6 | | terminal operator, who is licensed under this Act to possess or | 7 | | control a video gaming terminal or to have access to the inner | 8 | | workings of a video gaming terminal. A licensed terminal | 9 | | handler does not include an individual, partnership, | 10 | | corporation, or limited liability company defined as a | 11 | | manufacturer, distributor, supplier, technician, or terminal | 12 | | operator under this Act. | 13 | | "Manufacturer" means an individual, partnership, | 14 | | corporation, or limited liability company that is
licensed | 15 | | under this Act and that manufactures or assembles video gaming
| 16 | | terminals.
| 17 | | "Supplier" means an individual, partnership, corporation, | 18 | | or limited liability company that is
licensed under this Act to | 19 | | supply major components or parts to video gaming
terminals to | 20 | | licensed
terminal operators.
| 21 | | "Net terminal income" means money put into a video gaming | 22 | | terminal minus
credits paid out to players.
| 23 | | "Video gaming terminal" means any electronic video game | 24 | | machine
that, upon insertion of cash, is available to play or | 25 | | simulate the play of
a video game, including but not limited to | 26 | | video poker, line up, and blackjack, as
authorized by the Board |
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| 1 | | utilizing a video display and microprocessors in
which the | 2 | | player may receive free games or credits that can be
redeemed | 3 | | for cash. The term does not include a machine that directly
| 4 | | dispenses coins, cash, or tokens or is for amusement purposes | 5 | | only.
| 6 | | "Licensed establishment" means any licensed retail | 7 | | establishment where
alcoholic liquor is drawn, poured, mixed, | 8 | | or otherwise served for consumption
on the premises and | 9 | | includes any such establishment that has a contractual | 10 | | relationship with an inter-track wagering location licensee | 11 | | licensed under the Illinois Horse Racing Act of 1975, provided | 12 | | any contractual relationship shall not include any transfer or | 13 | | offer of revenue from the operation of video gaming under this | 14 | | Act to any licensee licensed under the Illinois Horse Racing | 15 | | Act of 1975. Provided, however, that the licensed establishment | 16 | | that has such a contractual relationship with an inter-track | 17 | | wagering location licensee may not, itself, be (i) an | 18 | | inter-track wagering location licensee, (ii) the corporate | 19 | | parent or subsidiary of any licensee licensed under the | 20 | | Illinois Horse Racing Act of 1975, or (iii) the corporate | 21 | | subsidiary of a corporation that is also the corporate parent | 22 | | or subsidiary of any licensee licensed under the Illinois Horse | 23 | | Racing Act of 1975. "Licensed establishment" does not include a | 24 | | facility operated by an organization licensee, an inter-track | 25 | | wagering licensee, or an inter-track wagering location | 26 | | licensee licensed under the Illinois Horse Racing Act of 1975 |
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| 1 | | or a riverboat licensed under the Riverboat Gambling Act, | 2 | | except as provided in this paragraph.
| 3 | | "Licensed fraternal establishment" means the location | 4 | | where a qualified
fraternal organization that derives its | 5 | | charter from a national fraternal
organization regularly | 6 | | meets.
| 7 | | "Licensed veterans establishment" means the location where | 8 | | a qualified
veterans organization that derives its charter from | 9 | | a national veterans
organization regularly meets.
| 10 | | "Licensed truck stop establishment" means a facility (i) | 11 | | that is at least a
3-acre facility with a convenience store, | 12 | | (ii) with separate diesel
islands for fueling commercial motor | 13 | | vehicles, (iii) that sells at retail more than 10,000 gallons | 14 | | of diesel or biodiesel fuel per month, and (iv) with parking | 15 | | spaces for commercial
motor vehicles. "Commercial motor | 16 | | vehicles" has the same meaning as defined in Section 18b-101 of | 17 | | the Illinois Vehicle Code. The requirement of item (iii) of | 18 | | this paragraph may be met by showing that estimated future | 19 | | sales or past sales average at least 10,000 gallons per month.
| 20 | | "Licensed social club" means a nonprofit location, | 21 | | operating in accordance with and under the tax-exempt status of | 22 | | subdivision 501(c)(4), 501(c)(7), or 501(c)(8) of the Internal | 23 | | Revenue Code, where alcoholic liquor is drawn, poured, mixed, | 24 | | or otherwise served for consumption on the premises. | 25 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; | 26 | | 96-1410, eff. 7-30-10; 96-1479, eff. 8-23-10; 97-333, eff. |
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| 1 | | 8-12-11.)
| 2 | | (230 ILCS 40/20)
| 3 | | Sec. 20. Direct dispensing of receipt tickets only. A video | 4 | | gaming
terminal may not
directly dispense coins, cash, tokens, | 5 | | or any other article of exchange or
value except for receipt | 6 | | tickets. Tickets shall be dispensed by
pressing the ticket | 7 | | dispensing button on the video gaming terminal at the end
of | 8 | | one's turn or play. The ticket shall indicate the total amount | 9 | | of credits
and the cash award, the time of day in a 24-hour | 10 | | format showing hours and
minutes, the date, the
terminal serial | 11 | | number, the sequential number of the ticket, and an encrypted
| 12 | | validation number from which the validity of the prize may be | 13 | | determined.
The player shall turn in this ticket to the | 14 | | appropriate
person at the licensed establishment, licensed | 15 | | truck stop establishment, licensed social club, licensed | 16 | | fraternal establishment,
or
licensed veterans establishment
to | 17 | | receive the cash award. The cost
of the credit shall be one | 18 | | cent, 5 cents, 10 cents, or 25 cents, and the maximum
wager | 19 | | played per hand shall not exceed $2.
No cash award for the | 20 | | maximum wager on any
individual hand shall exceed $500.
| 21 | | (Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.)
| 22 | | (230 ILCS 40/25)
| 23 | | Sec. 25. Restriction of licensees.
| 24 | | (a) Manufacturer. A person may not be licensed as a |
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| 1 | | manufacturer of a
video gaming terminal in Illinois unless the | 2 | | person has a valid
manufacturer's license issued
under this | 3 | | Act. A manufacturer may only sell video gaming terminals for | 4 | | use
in Illinois to
persons having a valid distributor's | 5 | | license.
| 6 | | (b) Distributor. A person may not sell, distribute, or | 7 | | lease
or market a video gaming terminal in Illinois unless the | 8 | | person has a valid
distributor's
license issued under this Act. | 9 | | A distributor may only sell video gaming
terminals for use in
| 10 | | Illinois to persons having a valid distributor's or terminal | 11 | | operator's
license.
| 12 | | (c) Terminal operator. A person may not own, maintain, or | 13 | | place a video gaming terminal unless he has a valid terminal | 14 | | operator's
license issued
under this Act. A terminal operator | 15 | | may only place video gaming terminals for
use in
Illinois in | 16 | | licensed establishments, licensed truck stop establishments, | 17 | | licensed social clubs, licensed fraternal establishments,
and
| 18 | | licensed veterans establishments.
No terminal operator may | 19 | | give anything of value, including , but not limited to ,
a loan | 20 | | or financing arrangement, to a licensed establishment, | 21 | | licensed truck stop establishment, licensed social club,
| 22 | | licensed fraternal establishment, or licensed veterans | 23 | | establishment as
any incentive or inducement to locate video | 24 | | terminals in that establishment.
Of the after-tax profits
from | 25 | | a video gaming terminal, 50% shall be paid to the terminal
| 26 | | operator and 50% shall be paid to the licensed establishment, |
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| 1 | | licensed truck stop establishment, licensed social club,
| 2 | | licensed fraternal establishment, or
licensed veterans | 3 | | establishment, notwithstanding any agreement to the contrary.
| 4 | | A video terminal operator that violates one or more | 5 | | requirements of this subsection is guilty of a Class 4 felony | 6 | | and is subject to termination of his or her license by the | 7 | | Board.
| 8 | | (d) Licensed technician. A person may not service, | 9 | | maintain, or repair a
video gaming terminal
in this State | 10 | | unless he or she (1) has a valid technician's license issued
| 11 | | under this Act, (2) is a terminal operator, or (3) is employed | 12 | | by a terminal
operator, distributor, or manufacturer.
| 13 | | (d-5) Licensed terminal handler. No person, including, but | 14 | | not limited to, an employee or independent contractor working | 15 | | for a manufacturer, distributor, supplier, technician, or | 16 | | terminal operator licensed pursuant to this Act, shall have | 17 | | possession or control of a video gaming terminal, or access to | 18 | | the inner workings of a video gaming terminal, unless that | 19 | | person possesses a valid terminal handler's license issued | 20 | | under this Act. | 21 | | (e) Licensed establishment. No video gaming terminal may be | 22 | | placed in any licensed establishment, licensed veterans | 23 | | establishment, licensed truck stop establishment, licensed | 24 | | social club,
or licensed fraternal establishment
unless the | 25 | | owner
or agent of the owner of the licensed establishment, | 26 | | licensed veterans establishment, licensed truck stop |
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| 1 | | establishment, licensed social club, or licensed
fraternal | 2 | | establishment has entered into a
written use agreement with the | 3 | | terminal operator for placement of the
terminals. A copy of the | 4 | | use agreement shall be on file in the terminal
operator's place | 5 | | of business and available for inspection by individuals
| 6 | | authorized by the Board. A licensed establishment, licensed | 7 | | truck stop establishment, licensed social club, licensed | 8 | | veterans establishment,
or
licensed
fraternal
establishment | 9 | | may operate up to 5 video gaming terminals on its premises at | 10 | | any
time.
| 11 | | (f) (Blank).
| 12 | | (g) Financial interest restrictions.
As used in this Act, | 13 | | "substantial interest" in a partnership, a corporation, an
| 14 | | organization, an association, a business, or a limited | 15 | | liability company means:
| 16 | | (A) When, with respect to a sole proprietorship, an | 17 | | individual or
his or her spouse owns, operates, manages, or | 18 | | conducts, directly
or indirectly, the organization, | 19 | | association, or business, or any part thereof;
or
| 20 | | (B) When, with respect to a partnership, the individual | 21 | | or his or
her spouse shares in any of the profits, or | 22 | | potential profits,
of the partnership activities; or
| 23 | | (C) When, with respect to a corporation, an individual | 24 | | or his or her
spouse is an officer or director, or the | 25 | | individual or his or her spouse is a holder, directly or | 26 | | beneficially, of 5% or more of any class
of stock of the |
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| 1 | | corporation; or
| 2 | | (D) When, with respect to an organization not covered | 3 | | in (A), (B) or
(C) above, an individual or his or her | 4 | | spouse is an officer or manages the
business affairs, or | 5 | | the individual or his or her spouse is the
owner of or | 6 | | otherwise controls 10% or more of the assets of the | 7 | | organization;
or
| 8 | | (E) When an individual or his or her spouse furnishes
| 9 | | 5% or more of the capital, whether in cash, goods, or | 10 | | services, for the
operation of any business, association, | 11 | | or organization during any calendar
year; or | 12 | | (F) When, with respect to a limited liability company, | 13 | | an individual or his or her
spouse is a member, or the | 14 | | individual or his or her spouse is a holder, directly or | 15 | | beneficially, of 5% or more of the membership interest of | 16 | | the limited liability company.
| 17 | | For purposes of this subsection (g), "individual" includes | 18 | | all individuals or their spouses whose combined interest would | 19 | | qualify as a substantial interest under this subsection (g) and | 20 | | whose activities with respect to an organization, association, | 21 | | or business are so closely aligned or coordinated as to | 22 | | constitute the activities of a single entity. | 23 | | (h) Location restriction. A licensed establishment, | 24 | | licensed truck stop establishment, licensed social club, | 25 | | licensed
fraternal
establishment, or licensed veterans | 26 | | establishment that is (i) located within 1,000
feet of a |
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| 1 | | facility operated by an organization licensee or an inter-track | 2 | | wagering licensee licensed under the Illinois Horse Racing Act | 3 | | of 1975 or the home dock of a riverboat licensed under the | 4 | | Riverboat
Gambling Act or (ii) located within 100 feet of a | 5 | | school or a place of worship under the Religious Corporation | 6 | | Act, is ineligible to operate a video gaming terminal. The | 7 | | location restrictions in this subsection (h) do not apply if a | 8 | | facility operated by an organization licensee, an inter-track | 9 | | wagering licensee, or an inter-track wagering location | 10 | | licensee, a school, or a place of worship moves to or is | 11 | | established within the restricted area after a licensed | 12 | | establishment, licensed truck stop establishment, licensed | 13 | | social club, licensed fraternal establishment, or licensed | 14 | | veterans establishment becomes licensed under this Act. For the | 15 | | purpose of this subsection, "school" means an elementary or | 16 | | secondary public school, or an elementary or secondary private | 17 | | school registered with or recognized by the State Board of | 18 | | Education. | 19 | | Notwithstanding the provisions of this subsection (h), the | 20 | | Board may waive the requirement that a licensed establishment, | 21 | | licensed truck stop establishment, licensed social club, | 22 | | licensed fraternal establishment, or licensed veterans | 23 | | establishment not be located within 1,000 feet from a facility | 24 | | operated by an organization licensee, an inter-track wagering | 25 | | licensee, or an inter-track wagering location licensee | 26 | | licensed under the Illinois Horse Racing Act of 1975 or the |
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| 1 | | home dock of a riverboat licensed under the Riverboat Gambling | 2 | | Act. The Board shall not grant such waiver if there is any | 3 | | common ownership or control, shared business activity, or | 4 | | contractual arrangement of any type between the establishment | 5 | | and the organization licensee, inter-track wagering licensee, | 6 | | inter-track wagering location licensee, or owners licensee of a | 7 | | riverboat. The Board shall adopt rules to implement the | 8 | | provisions of this paragraph. | 9 | | (i) Undue economic concentration. In addition to | 10 | | considering all other requirements under this Act, in deciding | 11 | | whether to approve the operation of video gaming terminals by a | 12 | | terminal operator in a location, the Board shall consider the | 13 | | impact of any economic concentration of such operation of video | 14 | | gaming terminals. The Board shall not allow a terminal operator | 15 | | to operate video gaming terminals if the Board determines such | 16 | | operation will result in undue economic concentration. For | 17 | | purposes of this Section, "undue economic concentration" means | 18 | | that a terminal operator would have such actual or potential | 19 | | influence over video gaming terminals in Illinois as to: | 20 | | (1) substantially impede or suppress competition among | 21 | | terminal operators; | 22 | | (2) adversely impact the economic stability of the | 23 | | video gaming industry in Illinois; or | 24 | | (3) negatively impact the purposes of the Video Gaming | 25 | | Act. | 26 | | The Board shall adopt rules concerning undue economic |
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| 1 | | concentration with respect to the operation of video gaming | 2 | | terminals in Illinois. The rules shall include, but not be | 3 | | limited to, (i) limitations on the number of video gaming | 4 | | terminals operated by any terminal operator within a defined | 5 | | geographic radius and (ii) guidelines on the discontinuation of | 6 | | operation of any such video gaming terminals the Board | 7 | | determines will cause undue economic concentration.
| 8 | | (j) The provisions of the Illinois Antitrust Act are fully | 9 | | and equally applicable to the activities of any licensee under | 10 | | this Act.
| 11 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, | 12 | | eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1410, eff. 7-30-10; | 13 | | 96-1479, eff. 8-23-10; 97-333, eff. 8-12-11.)
| 14 | | (230 ILCS 40/30)
| 15 | | Sec. 30. Multiple types of licenses prohibited. A video | 16 | | gaming
terminal
manufacturer may not be licensed as a video | 17 | | gaming terminal
operator or own, manage, or control a licensed
| 18 | | establishment, licensed truck stop establishment, licensed | 19 | | social club, licensed fraternal establishment, or licensed | 20 | | veterans
establishment, and shall be licensed to sell only to | 21 | | persons having a valid distributor's license or, if the | 22 | | manufacturer also holds a valid distributor's license, to sell, | 23 | | distribute, lease, or market to persons having a valid terminal | 24 | | operator's license. A video
gaming terminal distributor may not | 25 | | be licensed as a
video gaming terminal operator or own, manage, |
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| 1 | | or
control a
licensed establishment, licensed truck stop | 2 | | establishment, licensed social club, licensed fraternal | 3 | | establishment, or licensed
veterans
establishment, and shall | 4 | | only contract with a licensed terminal
operator. A video gaming | 5 | | terminal operator may not be licensed as
a video
gaming | 6 | | terminal manufacturer or distributor or own, manage, or control | 7 | | a
licensed establishment, licensed truck stop establishment, | 8 | | licensed social club, licensed fraternal establishment, or | 9 | | licensed
veterans
establishment, and shall be licensed only to | 10 | | contract with licensed
distributors and licensed | 11 | | establishments, licensed truck stop establishments, licensed | 12 | | social clubs,
licensed fraternal
establishments,
and licensed | 13 | | veterans establishments. An owner or manager of a
licensed | 14 | | establishment, licensed truck stop establishment, licensed | 15 | | social club, licensed fraternal
establishment, or licensed
| 16 | | veterans
establishment may not be licensed as a video gaming | 17 | | terminal
manufacturer, distributor, or operator, and shall | 18 | | only contract with a
licensed operator to place and service | 19 | | this equipment.
| 20 | | (Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.) | 21 | | (230 ILCS 40/35)
| 22 | | Sec. 35. Display of license; confiscation; violation as | 23 | | felony. | 24 | | (a) Each
video gaming terminal shall be licensed by the | 25 | | Board before placement
or operation on the premises of a |
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| 1 | | licensed establishment, licensed truck stop
establishment, | 2 | | licensed social club, licensed
fraternal establishment, or | 3 | | licensed veterans establishment. The license of
each video | 4 | | gaming terminal shall be maintained
at the location where the | 5 | | video gaming terminal is operated. Failure to do so
is a petty | 6 | | offense with a fine
not to exceed $100.
Any licensed | 7 | | establishment, licensed truck stop establishment, licensed | 8 | | social club, licensed
fraternal establishment, or licensed
| 9 | | veterans establishment
used for the conduct of gambling games | 10 | | in violation of this Act shall be
considered a gambling place | 11 | | in violation of Section 28-3 of the Criminal
Code of 2012. | 12 | | Every gambling device found in
a licensed establishment, | 13 | | licensed truck stop establishment, licensed social club, | 14 | | licensed fraternal
establishment, or licensed
veterans | 15 | | establishment operating gambling games in violation of this
Act | 16 | | shall be subject to seizure, confiscation, and destruction as | 17 | | provided
in Section 28-5 of the Criminal Code of 2012.
Any | 18 | | license issued under the Liquor Control Act
of 1934 to any | 19 | | owner or operator of a licensed establishment, licensed truck
| 20 | | stop establishment, licensed social club, licensed
fraternal | 21 | | establishment, or licensed veterans establishment that | 22 | | operates or
permits the operation of a video gaming terminal | 23 | | within its establishment in
violation of this Act shall be | 24 | | immediately revoked.
No person may own, operate, have in his or | 25 | | her possession or custody or under
his or her control, or | 26 | | permit to be kept in any place under his or her
possession or |
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| 1 | | control, any
device that awards credits and contains a circuit, | 2 | | meter, or switch capable of
removing and recording the removal | 3 | | of credits when the award of credits is
dependent upon chance. | 4 | | A violation of this Section is a Class 4 felony. All
devices | 5 | | that are owned, operated, or possessed in violation of this | 6 | | Section are
hereby declared to be public nuisances and shall be | 7 | | subject to seizure,
confiscation, and destruction as provided | 8 | | in Section 28-5 of the Criminal Code
of 2012.
The provisions of | 9 | | this Section do not apply to devices or electronic video
game | 10 | | terminals licensed pursuant to this Act. A video gaming | 11 | | terminal operated for amusement only and bearing a valid | 12 | | amusement tax sticker shall not be subject to this Section | 13 | | until 30 days after the Board establishes that the central | 14 | | communications system is functional.
| 15 | | (b) (1) The odds of winning each video game shall be posted | 16 | | on or near each video gaming terminal. The manner in which the | 17 | | odds are calculated and how they are posted shall be determined | 18 | | by the Board by rule. | 19 | | (2) No video gaming terminal licensed under this Act may be | 20 | | played except during the legal hours of operation allowed for | 21 | | the consumption of alcoholic beverages at the licensed | 22 | | establishment, licensed social club, licensed fraternal | 23 | | establishment, or licensed veterans establishment. A licensed | 24 | | establishment, licensed social club, licensed fraternal | 25 | | establishment, or licensed veterans establishment that | 26 | | violates this subsection is subject to termination of its |
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| 1 | | license by the Board. | 2 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; | 3 | | 96-1410, eff. 7-30-10; 97-1150, eff. 1-25-13.)
| 4 | | (230 ILCS 40/45)
| 5 | | Sec. 45. Issuance of license.
| 6 | | (a) The burden is upon each applicant to
demonstrate his | 7 | | suitability for licensure. Each video gaming terminal
| 8 | | manufacturer, distributor, supplier, operator, handler, | 9 | | licensed establishment, licensed truck stop establishment, | 10 | | licensed social club, licensed
fraternal
establishment, and | 11 | | licensed veterans establishment shall be
licensed by the Board.
| 12 | | The Board may issue or deny a license under this Act to any | 13 | | person pursuant to the same criteria set forth in Section 9 of | 14 | | the Riverboat Gambling Act.
| 15 | | (a-5) The Board shall not grant a license to a person who | 16 | | has facilitated, enabled, or participated in the use of | 17 | | coin-operated devices for gambling purposes or who is under the | 18 | | significant influence or control of such a person. For the | 19 | | purposes of this Act, "facilitated, enabled, or participated in | 20 | | the use of coin-operated amusement devices for gambling | 21 | | purposes" means that the person has been convicted of any | 22 | | violation of Article 28 of the Criminal Code of 1961 or the | 23 | | Criminal Code of 2012. If there is pending legal action against | 24 | | a person for any such violation, then the Board shall delay the | 25 | | licensure of that person until the legal action is resolved. |
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| 1 | | (b) Each person seeking and possessing a license as a video | 2 | | gaming terminal manufacturer, distributor, supplier, operator, | 3 | | handler, licensed establishment, licensed truck stop | 4 | | establishment, licensed social club, licensed fraternal | 5 | | establishment, or licensed veterans establishment shall submit | 6 | | to a background investigation conducted by the Board with the | 7 | | assistance of the State Police or other law enforcement. The | 8 | | background investigation shall include any or all of the | 9 | | following as the Board deems appropriate or as provided by rule | 10 | | for each category of licensure: (i) each beneficiary of a | 11 | | trust, (ii) each partner of a partnership, (iii) each member of | 12 | | a limited liability company, (iv) and each director and officer | 13 | | of a publicly or non-publicly held corporation, (v) each | 14 | | stockholder of a non-publicly held corporation, (vi) each | 15 | | stockholder of 5% or more of a publicly held corporation, or | 16 | | (vii) each stockholder and all stockholders of 5% or more in a | 17 | | parent or subsidiary corporation of a video gaming terminal | 18 | | manufacturer, distributor, supplier, operator, or licensed | 19 | | establishment, licensed truck stop establishment, licensed | 20 | | fraternal establishment, or licensed veterans establishment . | 21 | | (c) Each person seeking and possessing a license as a video | 22 | | gaming terminal manufacturer, distributor, supplier, operator, | 23 | | handler, licensed establishment, licensed truck stop | 24 | | establishment, licensed social club, licensed fraternal | 25 | | establishment, or licensed veterans establishment shall | 26 | | disclose the identity of every person, association, trust, |
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| 1 | | corporation, or limited liability company having a greater than | 2 | | 1% direct or indirect pecuniary interest in the video gaming | 3 | | terminal operation for which the license is sought. If the | 4 | | disclosed entity is a trust, the application shall disclose the | 5 | | names and addresses of the beneficiaries; if a corporation, the | 6 | | names and addresses of all stockholders and directors; if a | 7 | | limited liability company, the names and addresses of all | 8 | | members; or if a partnership, the names and addresses of all | 9 | | partners, both general and limited. | 10 | | (d) No person may be licensed as a video gaming terminal | 11 | | manufacturer, distributor, supplier, operator, handler, | 12 | | licensed establishment, licensed truck stop establishment, | 13 | | licensed social club, licensed fraternal establishment, or | 14 | | licensed veterans establishment if that person has been found | 15 | | by the Board to: | 16 | | (1) have a background, including a criminal record, | 17 | | reputation, habits, social or business associations, or | 18 | | prior activities that pose a threat to the public interests | 19 | | of the State or to the security and integrity of video | 20 | | gaming; | 21 | | (2) create or enhance the dangers of unsuitable, | 22 | | unfair, or illegal practices, methods, and activities in | 23 | | the conduct of video gaming; or | 24 | | (3) present questionable business practices and | 25 | | financial arrangements incidental to the conduct of video | 26 | | gaming activities. |
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| 1 | | (e) Any applicant for any license under this Act has the | 2 | | burden of proving his or her qualifications to the satisfaction | 3 | | of the Board. The Board may adopt rules to establish additional | 4 | | qualifications and requirements to preserve the integrity and | 5 | | security of video gaming in this State. | 6 | | (f) A non-refundable application fee shall be paid at the | 7 | | time an
application for a license is filed with the Board in | 8 | | the following amounts:
| 9 | | (1) Manufacturer ..........................$5,000
| 10 | | (2) Distributor ...........................$5,000
| 11 | | (3) Terminal operator .....................$5,000
| 12 | | (4) Supplier ..............................$2,500
| 13 | | (5) Technician ..............................$100
| 14 | | (6) Terminal Handler ..............................$50 | 15 | | (g) The Board shall establish an
annual fee for each | 16 | | license not to exceed the following: | 17 | | (1) Manufacturer .........................$10,000
| 18 | | (2) Distributor ..........................$10,000
| 19 | | (3) Terminal operator .....................$5,000
| 20 | | (4) Supplier ..............................$2,000
| 21 | | (5) Technician ..............................$100
| 22 | | (6) Licensed establishment, licensed truck stop
| 23 | | establishment, licensed social club, licensed
| 24 | | fraternal establishment, or licensed veterans
| 25 | | establishment ...................................$100
| 26 | | (7) Video gaming terminal ...................$100
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| 1 | | (8) Terminal Handler ..............................$50
| 2 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, | 3 | | eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1410, eff. 7-30-10; | 4 | | 97-1150, eff. 1-25-13.)
| 5 | | (230 ILCS 40/55)
| 6 | | Sec. 55. Precondition for licensed location. In all cases | 7 | | of
application for a licensed location,
to operate a video | 8 | | gaming terminal,
each licensed establishment, licensed social | 9 | | club, licensed
fraternal establishment, or licensed veterans
| 10 | | establishment
shall
possess a valid liquor license issued by | 11 | | the Illinois Liquor Control Commission
in effect at the time of | 12 | | application
and at all times thereafter during which a video
| 13 | | gaming terminal is made available to the public for play at | 14 | | that location. Video gaming terminals in a licensed location | 15 | | shall be
operated only during the same hours of operation | 16 | | generally permitted to holders of a license under the Liquor | 17 | | Control Act of 1934 within the unit of local government in | 18 | | which they are located. A licensed truck stop establishment | 19 | | that does not hold a liquor license may operate video gaming | 20 | | terminals on a continuous basis. A licensed fraternal | 21 | | establishment or licensed veterans establishment that does not | 22 | | hold a liquor license may operate video gaming terminals if (i) | 23 | | the establishment is located in a county with a population | 24 | | between 6,500 and 7,000, based on the 2000 U.S. Census, (ii) | 25 | | the county prohibits by ordinance the sale of alcohol, and |
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| 1 | | (iii) the establishment is in a portion of the county where the | 2 | | sale of alcohol is prohibited. A licensed fraternal | 3 | | establishment or licensed veterans establishment
that does not | 4 | | hold a liquor license may operate video gaming terminals
if (i) | 5 | | the establishment is located in a municipality within a county | 6 | | with a population
between 8,500 and 9,000 based on the 2000 | 7 | | U.S. Census and (ii) the
municipality or county prohibits or | 8 | | limits the sale of alcohol by ordinance in a way
that prohibits | 9 | | the establishment from selling alcohol.
| 10 | | (Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10; | 11 | | 97-594, eff. 8-26-11.) | 12 | | (230 ILCS 40/58)
| 13 | | Sec. 58. Location of terminals. Video gaming terminals | 14 | | must be located
in an area restricted to persons over 21 years | 15 | | of age the entrance to which is within the view of at least one | 16 | | employee, who is over 21 years of age, of the
establishment in | 17 | | which they are located. The placement of video gaming terminals | 18 | | in licensed establishments, licensed truck stop | 19 | | establishments, licensed social clubs, licensed fraternal | 20 | | establishments, and licensed veterans establishments shall be | 21 | | subject to the rules promulgated by the Board pursuant to the | 22 | | Illinois Administrative Procedure Act.
| 23 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.) | 24 | | (230 ILCS 40/60)
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| 1 | | Sec. 60. Imposition and distribution of tax.
| 2 | | (a) A tax of 30% is imposed on net terminal income
and | 3 | | shall be collected by the Board.
| 4 | | (b) Of the tax collected under this Section, five-sixths | 5 | | shall be
deposited into the Capital Projects Fund and one-sixth | 6 | | shall be deposited into the Local Government Video Gaming | 7 | | Distributive Fund.
| 8 | | (c) Revenues generated from the play of video gaming | 9 | | terminals shall be
deposited by the terminal operator, who is | 10 | | responsible for tax payments, in
a specially created, separate | 11 | | bank account maintained by the video gaming
terminal operator
| 12 | | to allow for electronic fund transfers of moneys for tax | 13 | | payment.
| 14 | | (d) Each licensed establishment, licensed truck stop | 15 | | establishment, licensed social club, licensed fraternal | 16 | | establishment,
and licensed veterans establishment shall | 17 | | maintain an adequate video gaming
fund, with the amount to be | 18 | | determined by the Board.
| 19 | | (e) The State's percentage of net terminal income shall be | 20 | | reported and remitted to the Board within 15 days after the | 21 | | 15th day of each month and within 15 days after the end of each | 22 | | month by the video terminal operator. A video terminal operator | 23 | | who falsely reports or fails to report the amount due required | 24 | | by this Section is guilty of a Class 4 felony and is subject to | 25 | | termination of his or her license by the Board. Each video | 26 | | terminal operator shall keep a record of net terminal income in |
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| 1 | | such form as the Board may require. All payments not remitted | 2 | | when due shall be paid together with a penalty assessment on | 3 | | the unpaid balance at a rate of 1.5% per month. | 4 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.) | 5 | | Section 10. The Criminal Code of 2012 is amended by | 6 | | changing Sections 28-1 and 28-1.1 as follows:
| 7 | | (720 ILCS 5/28-1) (from Ch. 38, par. 28-1)
| 8 | | Sec. 28-1. Gambling.
| 9 | | (a) A person commits gambling when he or she:
| 10 | | (1) knowingly plays a game of chance or skill for money | 11 | | or other thing of
value, unless excepted in subsection (b) | 12 | | of this Section;
| 13 | | (2) knowingly makes a wager upon the result of any | 14 | | game, contest, or any
political nomination, appointment or | 15 | | election;
| 16 | | (3) knowingly operates, keeps, owns, uses, purchases, | 17 | | exhibits, rents, sells,
bargains for the sale or lease of, | 18 | | manufactures or distributes any
gambling device;
| 19 | | (4) contracts to have or give himself or herself or | 20 | | another the option to buy
or sell, or contracts to buy or | 21 | | sell, at a future time, any grain or
other commodity | 22 | | whatsoever, or any stock or security of any company,
where | 23 | | it is at the time of making such contract intended by both | 24 | | parties
thereto that the contract to buy or sell, or the |
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| 1 | | option, whenever
exercised, or the contract resulting | 2 | | therefrom, shall be settled, not by
the receipt or delivery | 3 | | of such property, but by the payment only of
differences in | 4 | | prices thereof; however, the issuance, purchase, sale,
| 5 | | exercise, endorsement or guarantee, by or through a person | 6 | | registered
with the Secretary of State pursuant to Section | 7 | | 8 of the Illinois
Securities Law of 1953, or by or through | 8 | | a person exempt from such
registration under said Section | 9 | | 8, of a put, call, or other option to
buy or sell | 10 | | securities which have been registered with the Secretary of
| 11 | | State or which are exempt from such registration under | 12 | | Section 3 of the
Illinois Securities Law of 1953 is not | 13 | | gambling within the meaning of
this paragraph (4);
| 14 | | (5) knowingly owns or possesses any book, instrument or | 15 | | apparatus by
means of which bets or wagers have been, or | 16 | | are, recorded or registered,
or knowingly possesses any | 17 | | money which he has received in the course of
a bet or | 18 | | wager;
| 19 | | (6) knowingly sells pools upon the result of any game | 20 | | or contest of skill or
chance, political nomination, | 21 | | appointment or election;
| 22 | | (7) knowingly sets up or promotes any lottery or sells, | 23 | | offers to sell or
transfers any ticket or share for any | 24 | | lottery;
| 25 | | (8) knowingly sets up or promotes any policy game or | 26 | | sells, offers to sell or
knowingly possesses or transfers |
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| 1 | | any policy ticket, slip, record,
document or other similar | 2 | | device;
| 3 | | (9) knowingly drafts, prints or publishes any lottery | 4 | | ticket or share,
or any policy ticket, slip, record, | 5 | | document or similar device, except for
such activity | 6 | | related to lotteries, bingo games and raffles authorized by
| 7 | | and conducted in accordance with the laws of Illinois or | 8 | | any other state or
foreign government;
| 9 | | (10) knowingly advertises any lottery or policy game, | 10 | | except for such
activity related to lotteries, bingo games | 11 | | and raffles authorized by and
conducted in accordance with | 12 | | the laws of Illinois or any other state;
| 13 | | (11) knowingly transmits information as to wagers, | 14 | | betting odds, or
changes in betting odds by telephone, | 15 | | telegraph, radio, semaphore or
similar means; or knowingly | 16 | | installs or maintains equipment for the
transmission or | 17 | | receipt of such information; except that nothing in this
| 18 | | subdivision (11) prohibits transmission or receipt of such | 19 | | information
for use in news reporting of sporting events or | 20 | | contests; or
| 21 | | (12) knowingly establishes, maintains, or operates an | 22 | | Internet site that
permits a person to play a game of
| 23 | | chance or skill for money or other thing of value by means | 24 | | of the Internet or
to make a wager upon the
result of any | 25 | | game, contest, political nomination, appointment, or
| 26 | | election by means of the Internet. This item (12) does not |
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| 1 | | apply to activities referenced in items (6) and (6.1) of | 2 | | subsection (b) of this Section.
| 3 | | (b) Participants in any of the following activities shall | 4 | | not be
convicted of gambling:
| 5 | | (1) Agreements to compensate for loss caused by the | 6 | | happening of
chance including without limitation contracts | 7 | | of indemnity or guaranty
and life or health or accident | 8 | | insurance.
| 9 | | (2) Offers of prizes, award or compensation to the | 10 | | actual
contestants in any bona fide contest for the | 11 | | determination of skill,
speed, strength or endurance or to | 12 | | the owners of animals or vehicles
entered in such contest.
| 13 | | (3) Pari-mutuel betting as authorized by the law of | 14 | | this State.
| 15 | | (4) Manufacture of gambling devices, including the | 16 | | acquisition of
essential parts therefor and the assembly | 17 | | thereof, for transportation in
interstate or foreign | 18 | | commerce to any place outside this State when such
| 19 | | transportation is not prohibited by any applicable Federal | 20 | | law; or the
manufacture, distribution, or possession of | 21 | | video gaming terminals, as
defined in the Video Gaming Act, | 22 | | by manufacturers, distributors, and
terminal operators | 23 | | licensed to do so under the Video Gaming Act.
| 24 | | (5) The game commonly known as "bingo", when conducted | 25 | | in accordance
with the Bingo License and Tax Act.
| 26 | | (6) Lotteries when conducted by the State of Illinois |
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| 1 | | in accordance
with the Illinois Lottery Law. This exemption | 2 | | includes any activity conducted by the Department of | 3 | | Revenue to sell lottery tickets pursuant to the provisions | 4 | | of the Illinois Lottery Law and its rules.
| 5 | | (6.1) The purchase of lottery tickets through the | 6 | | Internet for a lottery conducted by the State of Illinois | 7 | | under the program established in Section 7.12 of the | 8 | | Illinois Lottery Law.
| 9 | | (7) Possession of an antique slot machine that is | 10 | | neither used nor
intended to be used in the operation or | 11 | | promotion of any unlawful
gambling activity or enterprise. | 12 | | For the purpose of this subparagraph
(b)(7), an antique | 13 | | slot machine is one manufactured 25 years ago or earlier.
| 14 | | (8) Raffles when conducted in accordance with the | 15 | | Raffles Act.
| 16 | | (9) Charitable games when conducted in accordance with | 17 | | the Charitable
Games Act.
| 18 | | (10) Pull tabs and jar games when conducted under the | 19 | | Illinois Pull
Tabs and Jar Games Act.
| 20 | | (11) Gambling games conducted on riverboats when
| 21 | | authorized by the Riverboat Gambling Act.
| 22 | | (12) Video gaming terminal games at a licensed | 23 | | establishment, licensed truck stop establishment, licensed | 24 | | social club,
licensed
fraternal establishment, or licensed | 25 | | veterans establishment when
conducted in accordance with | 26 | | the Video Gaming Act. |
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| 1 | | (13) Games of skill or chance where money or other | 2 | | things of value can be won but no payment or purchase is | 3 | | required to participate. | 4 | | (c) Sentence.
| 5 | | Gambling is a
Class A misdemeanor. A second or
subsequent | 6 | | conviction under subsections (a)(3) through (a)(12),
is a Class | 7 | | 4 felony.
| 8 | | (d) Circumstantial evidence.
| 9 | | In prosecutions under
this
Section circumstantial evidence | 10 | | shall have the same validity and weight as
in any criminal | 11 | | prosecution.
| 12 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; | 13 | | 96-1203, eff. 7-22-10; 97-1108, eff. 1-1-13.)
| 14 | | (720 ILCS 5/28-1.1)
(from Ch. 38, par. 28-1.1)
| 15 | | Sec. 28-1.1. Syndicated gambling.
| 16 | | (a) Declaration of Purpose. Recognizing the close | 17 | | relationship between
professional gambling and other organized | 18 | | crime, it is declared to be the
policy of the legislature to | 19 | | restrain persons from engaging in the business
of gambling for | 20 | | profit in this State. This Section shall be liberally
construed | 21 | | and administered with a view to carrying out this policy.
| 22 | | (b) A person commits syndicated gambling when he or she | 23 | | operates a "policy
game" or engages in the business of | 24 | | bookmaking.
| 25 | | (c) A person "operates a policy game" when he or she |
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| 1 | | knowingly uses any
premises or property for the purpose of | 2 | | receiving or knowingly does
receive from what is commonly | 3 | | called "policy":
| 4 | | (1) money from a person other than the bettor or player | 5 | | whose
bets or plays are represented by the money; or
| 6 | | (2) written "policy game" records, made or used over | 7 | | any
period of time, from a person other than the bettor or | 8 | | player whose bets
or plays are represented by the written | 9 | | record.
| 10 | | (d) A person engages in bookmaking when he or she knowingly | 11 | | receives or accepts more
than five bets or wagers upon the | 12 | | result of any trials or contests of
skill, speed or power of | 13 | | endurance or upon any lot, chance, casualty,
unknown or | 14 | | contingent event whatsoever, which bets or wagers shall be of
| 15 | | such size that the total of the amounts of money paid or | 16 | | promised to be
paid to the bookmaker on account thereof shall | 17 | | exceed $2,000.
Bookmaking is the receiving or accepting of bets | 18 | | or wagers
regardless of the form or manner in which the | 19 | | bookmaker records them.
| 20 | | (e) Participants in any of the following activities shall | 21 | | not be
convicted of syndicated gambling:
| 22 | | (1) Agreements to compensate for loss caused by the | 23 | | happening
of chance including without limitation contracts | 24 | | of indemnity or
guaranty and life or health or accident | 25 | | insurance;
| 26 | | (2) Offers of prizes, award or compensation to the |
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| 1 | | actual
contestants in any bona fide contest for the | 2 | | determination of skill,
speed, strength or endurance or to | 3 | | the owners of animals or vehicles
entered in the contest;
| 4 | | (3) Pari-mutuel betting as authorized by law of this | 5 | | State;
| 6 | | (4) Manufacture of gambling devices, including the | 7 | | acquisition
of essential parts therefor and the assembly | 8 | | thereof, for transportation
in interstate or foreign | 9 | | commerce to any place outside this State when
the | 10 | | transportation is not prohibited by any applicable Federal | 11 | | law;
| 12 | | (5) Raffles when conducted in accordance with the | 13 | | Raffles Act;
| 14 | | (6) Gambling games conducted on riverboats when
| 15 | | authorized by the Riverboat Gambling Act; and
| 16 | | (7) Video gaming terminal games at a licensed | 17 | | establishment, licensed truck stop establishment, licensed | 18 | | social club,
licensed
fraternal establishment, or licensed | 19 | | veterans establishment
when conducted in accordance with | 20 | | the Video Gaming Act.
| 21 | | (f) Sentence. Syndicated gambling is a Class 3 felony.
| 22 | | (Source: P.A. 96-34, eff. 7-13-09; 97-1108, eff. 1-1-13.)
| 23 | | Section 99. Effective date. This Act takes effect upon | 24 | | becoming law.
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