Full Text of SB1738 98th General Assembly
SB1738enr 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, 15, 25, 45, and 78 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 | | for use in that establishment as a substitute for cash in the | 20 | | conduct of gaming on a video gaming terminal. | 21 | | "Terminal operator" means an individual, partnership, | 22 | | corporation, or limited liability company that is
licensed | 23 | | under this Act and that owns, services, and maintains video
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| 1 | | gaming terminals for placement in licensed establishments, | 2 | | licensed truck stop establishments, licensed fraternal
| 3 | | establishments, or licensed veterans establishments.
| 4 | | "Licensed technician" means an individual
who
is licensed | 5 | | under this Act to repair,
service, and maintain
video gaming | 6 | | terminals.
| 7 | | "Licensed terminal handler" means a person, including but | 8 | | not limited to an employee or independent contractor working | 9 | | for a manufacturer, distributor, supplier, technician, or | 10 | | terminal operator, who is licensed under this Act to possess or | 11 | | control a video gaming terminal or to have access to the inner | 12 | | workings of a video gaming terminal. A licensed terminal | 13 | | handler does not include an individual, partnership, | 14 | | corporation, or limited liability company defined as a | 15 | | manufacturer, distributor, supplier, technician, or terminal | 16 | | operator under this Act. | 17 | | "Manufacturer" means an individual, partnership, | 18 | | corporation, or limited liability company that is
licensed | 19 | | under this Act and that manufactures or assembles video gaming
| 20 | | terminals.
| 21 | | "Supplier" means an individual, partnership, corporation, | 22 | | or limited liability company that is
licensed under this Act to | 23 | | supply major components or parts to video gaming
terminals to | 24 | | licensed
terminal operators.
| 25 | | "Net terminal income" means money put into a video gaming | 26 | | terminal minus
credits paid out to players.
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| 1 | | "Video gaming terminal" means any electronic video game | 2 | | machine
that, upon insertion of cash , electronic cards or | 3 | | vouchers or any combination thereof , is available to play or | 4 | | simulate the play of
a video game, including but not limited to | 5 | | video poker, line up, and blackjack, as
authorized by the Board | 6 | | utilizing a video display and microprocessors in
which the | 7 | | player may receive free games or credits that can be
redeemed | 8 | | for cash. The term does not include a machine that directly
| 9 | | dispenses coins, cash, or tokens or is for amusement purposes | 10 | | only.
| 11 | | "Licensed establishment" means any licensed retail | 12 | | establishment where
alcoholic liquor is drawn, poured, mixed, | 13 | | or otherwise served for consumption
on the premises and | 14 | | includes any such establishment that has a contractual | 15 | | relationship with an inter-track wagering location licensee | 16 | | licensed under the Illinois Horse Racing Act of 1975, provided | 17 | | any contractual relationship shall not include any transfer or | 18 | | offer of revenue from the operation of video gaming under this | 19 | | Act to any licensee licensed under the Illinois Horse Racing | 20 | | Act of 1975. Provided, however, that the licensed establishment | 21 | | that has such a contractual relationship with an inter-track | 22 | | wagering location licensee may not, itself, be (i) an | 23 | | inter-track wagering location licensee, (ii) the corporate | 24 | | parent or subsidiary of any licensee licensed under the | 25 | | Illinois Horse Racing Act of 1975, or (iii) the corporate | 26 | | subsidiary of a corporation that is also the corporate parent |
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| 1 | | or subsidiary of any licensee licensed under the Illinois Horse | 2 | | Racing Act of 1975. "Licensed establishment" does not include a | 3 | | facility operated by an organization licensee, an inter-track | 4 | | wagering licensee, or an inter-track wagering location | 5 | | licensee licensed under the Illinois Horse Racing Act of 1975 | 6 | | or a riverboat licensed under the Riverboat Gambling Act, | 7 | | except as provided in this paragraph.
| 8 | | "Licensed fraternal establishment" means the location | 9 | | where a qualified
fraternal organization that derives its | 10 | | charter from a national fraternal
organization regularly | 11 | | meets.
| 12 | | "Licensed veterans establishment" means the location where | 13 | | a qualified
veterans organization that derives its charter from | 14 | | a national veterans
organization regularly meets.
| 15 | | "Licensed truck stop establishment" means a facility (i) | 16 | | that is at least a
3-acre facility with a convenience store, | 17 | | (ii) with separate diesel
islands for fueling commercial motor | 18 | | vehicles, (iii) that sells at retail more than 10,000 gallons | 19 | | of diesel or biodiesel fuel per month, and (iv) with parking | 20 | | spaces for commercial
motor vehicles. "Commercial motor | 21 | | vehicles" has the same meaning as defined in Section 18b-101 of | 22 | | the Illinois Vehicle Code. The requirement of item (iii) of | 23 | | this paragraph may be met by showing that estimated future | 24 | | sales or past sales average at least 10,000 gallons per month.
| 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 40/15)
| 3 | | Sec. 15. Minimum requirements for
licensing and | 4 | | registration. Every video gaming terminal offered for
play | 5 | | shall first be
tested and approved pursuant to the rules of the | 6 | | Board, and
each video gaming terminal offered in this State for | 7 | | play shall conform to an
approved
model. The Board may utilize | 8 | | the services of an independent outside testing laboratory for | 9 | | the
examination of video gaming machines and associated | 10 | | equipment as required
by this Section. Every video gaming | 11 | | terminal offered in this State for play must meet minimum | 12 | | standards set by an independent outside testing laboratory | 13 | | approved by the Board. Each approved model shall, at a minimum, | 14 | | meet the following
criteria:
| 15 | | (1) It must conform to all requirements of federal law | 16 | | and
regulations, including FCC Class A
Emissions | 17 | | Standards.
| 18 | | (2) It must theoretically pay out a mathematically | 19 | | demonstrable percentage
during the expected lifetime of | 20 | | the machine
of all amounts played, which must not be less | 21 | | than 80%. The Board shall establish a maximum payout | 22 | | percentage for approved models by rule. Video gaming
| 23 | | terminals that may be affected by skill must meet this | 24 | | standard when using a
method of play that will provide the | 25 | | greatest return to the player over a
period of continuous |
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| 1 | | play.
| 2 | | (3) It must use a random selection process to determine | 3 | | the outcome of
each play of a game. The random selection | 4 | | process must meet 99% confidence
limits using a standard | 5 | | chi-squared test for (randomness) goodness of fit.
| 6 | | (4) It must display an accurate representation of the | 7 | | game outcome.
| 8 | | (5) It must not automatically alter pay tables or any | 9 | | function of the
video gaming terminal based on internal | 10 | | computation of hold percentage or have
any means of | 11 | | manipulation that affects the random selection process or
| 12 | | probabilities of winning a game.
| 13 | | (6) It must not be adversely affected by static | 14 | | discharge or other
electromagnetic interference.
| 15 | | (7) It must be capable of detecting and displaying the | 16 | | following
conditions
during idle states or on demand: power | 17 | | reset; door open; and door just closed.
| 18 | | (8) It must have the capacity to display complete play | 19 | | history
(outcome, intermediate play steps, credits | 20 | | available, bets placed, credits
paid, and credits cashed | 21 | | out) for the most recent game played and 10 games
prior
| 22 | | thereto.
| 23 | | (9) The theoretical payback percentage of a video | 24 | | gaming terminal must
not be
capable of being changed | 25 | | without making a hardware or software change in
the video | 26 | | gaming terminal, either on site or via the central |
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| 1 | | communications system.
| 2 | | (10) Video gaming terminals must be designed so that | 3 | | replacement of
parts or modules required for normal | 4 | | maintenance does not necessitate
replacement of the | 5 | | electromechanical meters.
| 6 | | (11) It must have nonresettable meters housed in a | 7 | | locked area of the
terminal that
keep a permanent record of | 8 | | all cash inserted into the machine, all winnings
made by | 9 | | the terminal printer, credits played in for video gaming | 10 | | terminals, and
credits won by video gaming players. The | 11 | | video gaming terminal must provide
the means for on-demand | 12 | | display of stored information as determined by the
Board.
| 13 | | (12) Electronically stored meter information required | 14 | | by this Section
must be preserved for a minimum of 180 days | 15 | | after a power loss to the service.
| 16 | | (13) It must have one or more mechanisms that accept | 17 | | cash in the
form of
bills. The mechanisms shall be designed | 18 | | to prevent obtaining credits without
paying by stringing, | 19 | | slamming, drilling, or other means. If such attempts at | 20 | | physical tampering are made, the video gaming terminal | 21 | | shall suspend itself from operating until reset.
| 22 | | (14) It shall have accounting software that keeps an | 23 | | electronic record
which includes, but is not limited to, | 24 | | the following: total cash inserted
into the video gaming | 25 | | terminal; the value of winning tickets claimed by
players; | 26 | | the
total credits played; the total
credits awarded
by a |
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| 1 | | video gaming terminal; and pay back percentage credited to | 2 | | players of each video game.
| 3 | | (15) It shall be linked by a central communications | 4 | | system
to provide
auditing program information as approved | 5 | | by the Board. The central communications system shall use a | 6 | | standard industry protocol, as defined by the Gaming | 7 | | Standards Association, and shall have the functionality to | 8 | | enable the Board or its designee to activate or deactivate | 9 | | individual gaming devices from the central communications | 10 | | system. In no event may the
communications system approved | 11 | | by the Board limit participation to only one
manufacturer | 12 | | of video gaming terminals by either the cost in | 13 | | implementing
the necessary program modifications to | 14 | | communicate or the inability to
communicate with the | 15 | | central communications system.
| 16 | | (16) The Board, in its discretion, may require video | 17 | | gaming terminals to display Amber Alert messages if the | 18 | | Board makes a finding that it would be economically and | 19 | | technically feasible and pose no risk to the integrity and | 20 | | security of the central communications system and video | 21 | | gaming terminals.
| 22 | | The Board may adopt rules to establish additional criteria | 23 | | to preserve the integrity and security of video gaming in this | 24 | | State. The central communications system vendor may be licensed | 25 | | as a video gaming terminal manufacturer or a video gaming | 26 | | terminal distributor, or both, but in no event shall the |
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| 1 | | central communications system vendor be licensed as a video | 2 | | gaming terminal operator. The central communications system | 3 | | vendor may not hold any license issued by the Board under this | 4 | | Act. | 5 | | The Board shall not permit the development of information | 6 | | or the use by any licensee of gaming device or individual game | 7 | | performance data. Nothing in this Act shall inhibit or prohibit | 8 | | the Board from the use of gaming device or individual game | 9 | | performance data in its regulatory duties. The Board shall | 10 | | adopt rules to ensure that all licensees are treated and all | 11 | | licensees act in a non-discriminatory manner and develop | 12 | | processes and penalties to enforce those rules. | 13 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; | 14 | | 96-1410, eff. 7-30-10.)
| 15 | | (230 ILCS 40/25)
| 16 | | Sec. 25. Restriction of licensees.
| 17 | | (a) Manufacturer. A person may not be licensed as a | 18 | | manufacturer of a
video gaming terminal in Illinois unless the | 19 | | person has a valid
manufacturer's license issued
under this | 20 | | Act. A manufacturer may only sell video gaming terminals for | 21 | | use
in Illinois to
persons having a valid distributor's | 22 | | license.
| 23 | | (b) Distributor. A person may not sell, distribute, or | 24 | | lease
or market a video gaming terminal in Illinois unless the | 25 | | person has a valid
distributor's
license issued under this Act. |
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| 1 | | A distributor may only sell video gaming
terminals for use in
| 2 | | Illinois to persons having a valid distributor's or terminal | 3 | | operator's
license.
| 4 | | (c) Terminal operator. A person may not own, maintain, or | 5 | | place a video gaming terminal unless he has a valid terminal | 6 | | operator's
license issued
under this Act. A terminal operator | 7 | | may only place video gaming terminals for
use in
Illinois in | 8 | | licensed establishments, licensed truck stop establishments, | 9 | | licensed fraternal establishments,
and
licensed veterans | 10 | | establishments.
No terminal operator may give anything of | 11 | | value, including but not limited to
a loan or financing | 12 | | arrangement, to a licensed establishment, licensed truck stop | 13 | | establishment,
licensed fraternal establishment, or licensed | 14 | | veterans establishment as
any incentive or inducement to locate | 15 | | video terminals in that establishment.
Of the after-tax profits
| 16 | | from a video gaming terminal, 50% shall be paid to the terminal
| 17 | | operator and 50% shall be paid to the licensed establishment, | 18 | | licensed truck stop establishment,
licensed fraternal | 19 | | establishment, or
licensed veterans establishment, | 20 | | notwithstanding any agreement to the contrary.
A video terminal | 21 | | operator that violates one or more requirements of this | 22 | | subsection is guilty of a Class 4 felony and is subject to | 23 | | termination of his or her license by the Board.
| 24 | | (d) Licensed technician. A person may not service, | 25 | | maintain, or repair a
video gaming terminal
in this State | 26 | | unless he or she (1) has a valid technician's license issued
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| 1 | | under this Act, (2) is a terminal operator, or (3) is employed | 2 | | by a terminal
operator, distributor, or manufacturer.
| 3 | | (d-5) Licensed terminal handler. No person, including, but | 4 | | not limited to, an employee or independent contractor working | 5 | | for a manufacturer, distributor, supplier, technician, or | 6 | | terminal operator licensed pursuant to this Act, shall have | 7 | | possession or control of a video gaming terminal, or access to | 8 | | the inner workings of a video gaming terminal, unless that | 9 | | person possesses a valid terminal handler's license issued | 10 | | under this Act. | 11 | | (e) Licensed establishment. No video gaming terminal may be | 12 | | placed in any licensed establishment, licensed veterans | 13 | | establishment, licensed truck stop establishment,
or licensed | 14 | | fraternal establishment
unless the owner
or agent of the owner | 15 | | of the licensed establishment, licensed veterans | 16 | | establishment, licensed truck stop establishment, or licensed
| 17 | | fraternal establishment has entered into a
written use | 18 | | agreement with the terminal operator for placement of the
| 19 | | terminals. A copy of the use agreement shall be on file in the | 20 | | terminal
operator's place of business and available for | 21 | | inspection by individuals
authorized by the Board. A licensed | 22 | | establishment, licensed truck stop establishment, licensed | 23 | | veterans establishment,
or
licensed
fraternal
establishment | 24 | | may operate up to 5 video gaming terminals on its premises at | 25 | | any
time.
| 26 | | (f) (Blank).
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| 1 | | (g) Financial interest restrictions.
As used in this Act, | 2 | | "substantial interest" in a partnership, a corporation, an
| 3 | | organization, an association, a business, or a limited | 4 | | liability company means:
| 5 | | (A) When, with respect to a sole proprietorship, an | 6 | | individual or
his or her spouse owns, operates, manages, or | 7 | | conducts, directly
or indirectly, the organization, | 8 | | association, or business, or any part thereof;
or
| 9 | | (B) When, with respect to a partnership, the individual | 10 | | or his or
her spouse shares in any of the profits, or | 11 | | potential profits,
of the partnership activities; or
| 12 | | (C) When, with respect to a corporation, an individual | 13 | | or his or her
spouse is an officer or director, or the | 14 | | individual or his or her spouse is a holder, directly or | 15 | | beneficially, of 5% or more of any class
of stock of the | 16 | | corporation; or
| 17 | | (D) When, with respect to an organization not covered | 18 | | in (A), (B) or
(C) above, an individual or his or her | 19 | | spouse is an officer or manages the
business affairs, or | 20 | | the individual or his or her spouse is the
owner of or | 21 | | otherwise controls 10% or more of the assets of the | 22 | | organization;
or
| 23 | | (E) When an individual or his or her spouse furnishes
| 24 | | 5% or more of the capital, whether in cash, goods, or | 25 | | services, for the
operation of any business, association, | 26 | | or organization during any calendar
year; or |
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| 1 | | (F) When, with respect to a limited liability company, | 2 | | an individual or his or her
spouse is a member, or the | 3 | | individual or his or her spouse is a holder, directly or | 4 | | beneficially, of 5% or more of the membership interest of | 5 | | the limited liability company.
| 6 | | For purposes of this subsection (g), "individual" includes | 7 | | all individuals or their spouses whose combined interest would | 8 | | qualify as a substantial interest under this subsection (g) and | 9 | | whose activities with respect to an organization, association, | 10 | | or business are so closely aligned or coordinated as to | 11 | | constitute the activities of a single entity. | 12 | | (h) Location restriction. A licensed establishment, | 13 | | licensed truck stop establishment, licensed
fraternal
| 14 | | establishment, or licensed veterans establishment that is (i) | 15 | | located within 1,000
feet of a facility operated by an | 16 | | organization licensee or an inter-track wagering licensee | 17 | | licensed under the Illinois Horse Racing Act of 1975 or the | 18 | | home dock of a riverboat licensed under the Riverboat
Gambling | 19 | | Act or (ii) located within 100 feet of a school or a place of | 20 | | worship under the Religious Corporation Act, is ineligible to | 21 | | operate a video gaming terminal. The location restrictions in | 22 | | this subsection (h) do not apply if a facility operated by an | 23 | | organization licensee, an inter-track wagering licensee, or an | 24 | | inter-track wagering location licensee, a school, or a place of | 25 | | worship moves to or is established within the restricted area | 26 | | after a licensed establishment, licensed truck stop |
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| 1 | | establishment, licensed fraternal establishment, or licensed | 2 | | veterans establishment becomes licensed under this Act. For the | 3 | | purpose of this subsection, "school" means an elementary or | 4 | | secondary public school, or an elementary or secondary private | 5 | | school registered with or recognized by the State Board of | 6 | | Education. | 7 | | Notwithstanding the provisions of this subsection (h), the | 8 | | Board may waive the requirement that a licensed establishment, | 9 | | licensed truck stop establishment, licensed fraternal | 10 | | establishment, or licensed veterans establishment not be | 11 | | located within 1,000 feet from a facility operated by an | 12 | | organization licensee , an inter-track wagering licensee, or an | 13 | | inter-track wagering location licensee licensed under the | 14 | | Illinois Horse Racing Act of 1975 or the home dock of a | 15 | | riverboat licensed under the Riverboat Gambling Act. The Board | 16 | | shall not grant such waiver if there is any common ownership or | 17 | | control, shared business activity, or contractual arrangement | 18 | | of any type between the establishment and the organization | 19 | | licensee , inter-track wagering licensee, inter-track wagering | 20 | | location licensee, or owners licensee of a riverboat. The Board | 21 | | shall adopt rules to implement the provisions of this | 22 | | paragraph. | 23 | | (i) Undue economic concentration. In addition to | 24 | | considering all other requirements under this Act, in deciding | 25 | | whether to approve the operation of video gaming terminals by a | 26 | | terminal operator in a location, the Board shall consider the |
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| 1 | | impact of any economic concentration of such operation of video | 2 | | gaming terminals. The Board shall not allow a terminal operator | 3 | | to operate video gaming terminals if the Board determines such | 4 | | operation will result in undue economic concentration. For | 5 | | purposes of this Section, "undue economic concentration" means | 6 | | that a terminal operator would have such actual or potential | 7 | | influence over video gaming terminals in Illinois as to: | 8 | | (1) substantially impede or suppress competition among | 9 | | terminal operators; | 10 | | (2) adversely impact the economic stability of the | 11 | | video gaming industry in Illinois; or | 12 | | (3) negatively impact the purposes of the Video Gaming | 13 | | Act. | 14 | | The Board shall adopt rules concerning undue economic | 15 | | concentration with respect to the operation of video gaming | 16 | | terminals in Illinois. The rules shall include, but not be | 17 | | limited to, (i) limitations on the number of video gaming | 18 | | terminals operated by any terminal operator within a defined | 19 | | geographic radius and (ii) guidelines on the discontinuation of | 20 | | operation of any such video gaming terminals the Board | 21 | | determines will cause undue economic concentration.
| 22 | | (j) The provisions of the Illinois Antitrust Act are fully | 23 | | and equally applicable to the activities of any licensee under | 24 | | this Act.
| 25 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, | 26 | | eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1410, eff. 7-30-10; |
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| 1 | | 96-1479, eff. 8-23-10; 97-333, eff. 8-12-11.)
| 2 | | (230 ILCS 40/45)
| 3 | | Sec. 45. Issuance of license.
| 4 | | (a) The burden is upon each applicant to
demonstrate his | 5 | | suitability for licensure. Each video gaming terminal
| 6 | | manufacturer, distributor, supplier, operator, handler, | 7 | | licensed establishment, licensed truck stop establishment, | 8 | | licensed
fraternal
establishment, and licensed veterans | 9 | | establishment shall be
licensed by the Board.
The Board may | 10 | | issue or deny a license under this Act to any person pursuant | 11 | | to the same criteria set forth in Section 9 of the Riverboat | 12 | | Gambling Act.
| 13 | | (a-5) The Board shall not grant a license to a person who | 14 | | has facilitated, enabled, or participated in the use of | 15 | | coin-operated devices for gambling purposes or who is under the | 16 | | significant influence or control of such a person. For the | 17 | | purposes of this Act, "facilitated, enabled, or participated in | 18 | | the use of coin-operated amusement devices for gambling | 19 | | purposes" means that the person has been convicted of any | 20 | | violation of Article 28 of the Criminal Code of 1961 or the | 21 | | Criminal Code of 2012. If there is pending legal action against | 22 | | a person for any such violation, then the Board shall delay the | 23 | | licensure of that person until the legal action is resolved. | 24 | | (b) Each person seeking and possessing a license as a video | 25 | | gaming terminal manufacturer, distributor, supplier, operator, |
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| 1 | | handler, licensed establishment, licensed truck stop | 2 | | establishment, licensed fraternal establishment, or licensed | 3 | | veterans establishment shall submit to a background | 4 | | investigation conducted by the Board with the assistance of the | 5 | | State Police or other law enforcement. The background | 6 | | investigation shall include each beneficiary of a trust, each | 7 | | partner of a partnership, and each director and officer and all | 8 | | stockholders of 5% or more in a parent or subsidiary | 9 | | corporation of a video gaming terminal manufacturer, | 10 | | distributor, supplier, operator, or licensed establishment, | 11 | | licensed truck stop establishment, licensed fraternal | 12 | | establishment, or licensed veterans establishment. | 13 | | (c) Each person seeking and possessing a license as a video | 14 | | gaming terminal manufacturer, distributor, supplier, operator, | 15 | | handler, licensed establishment, licensed truck stop | 16 | | establishment, licensed fraternal establishment, or licensed | 17 | | veterans establishment shall disclose the identity of every | 18 | | person, association, trust, corporation, or limited liability | 19 | | company having a greater than 1% direct or indirect pecuniary | 20 | | interest in the video gaming terminal operation for which the | 21 | | license is sought. If the disclosed entity is a trust, the | 22 | | application shall disclose the names and addresses of the | 23 | | beneficiaries; if a corporation, the names and addresses of all | 24 | | stockholders and directors; if a limited liability company, the | 25 | | names and addresses of all members; or if a partnership, the | 26 | | names and addresses of all partners, both general and limited. |
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| 1 | | (d) No person may be licensed as a video gaming terminal | 2 | | manufacturer, distributor, supplier, operator, handler, | 3 | | licensed establishment, licensed truck stop establishment, | 4 | | licensed fraternal establishment, or licensed veterans | 5 | | establishment if that person has been found by the Board to: | 6 | | (1) have a background, including a criminal record, | 7 | | reputation, habits, social or business associations, or | 8 | | prior activities that pose a threat to the public interests | 9 | | of the State or to the security and integrity of video | 10 | | gaming; | 11 | | (2) create or enhance the dangers of unsuitable, | 12 | | unfair, or illegal practices, methods, and activities in | 13 | | the conduct of video gaming; or | 14 | | (3) present questionable business practices and | 15 | | financial arrangements incidental to the conduct of video | 16 | | gaming activities. | 17 | | (e) Any applicant for any license under this Act has the | 18 | | burden of proving his or her qualifications to the satisfaction | 19 | | of the Board. The Board may adopt rules to establish additional | 20 | | qualifications and requirements to preserve the integrity and | 21 | | security of video gaming in this State. | 22 | | (f) A non-refundable application fee shall be paid at the | 23 | | time an
application for a license is filed with the Board in | 24 | | the following amounts:
| 25 | | (1) Manufacturer ..........................$5,000
| 26 | | (2) Distributor ...........................$5,000
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| 1 | | (3) Terminal operator .....................$5,000
| 2 | | (4) Supplier ..............................$2,500
| 3 | | (5) Technician ..............................$100
| 4 | | (6) Terminal Handler ..............................$50 | 5 | | (g) The Board shall establish an
annual fee for each | 6 | | license not to exceed the following: | 7 | | (1) Manufacturer .........................$10,000
| 8 | | (2) Distributor ..........................$10,000
| 9 | | (3) Terminal operator .....................$5,000
| 10 | | (4) Supplier ..............................$2,000
| 11 | | (5) Technician ..............................$100
| 12 | | (6) Licensed establishment, licensed truck stop
| 13 | | establishment, licensed fraternal establishment,
| 14 | | or licensed veterans establishment ..............$100
| 15 | | (7) Video gaming terminal ...................$100
| 16 | | (8) Terminal Handler ..............................$50
| 17 | | (h) A terminal operator and a licensed establishment, | 18 | | licensed truck stop establishment, licensed fraternal | 19 | | establishment,
or licensed veterans establishment shall | 20 | | equally split the fees specified in item (7) of subsection (g). | 21 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, | 22 | | eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1410, eff. 7-30-10; | 23 | | 97-1150, eff. 1-25-13.)
| 24 | | (230 ILCS 40/78)
| 25 | | Sec. 78. Authority of the Illinois Gaming Board. |
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| 1 | | (a) The Board shall have jurisdiction over and shall | 2 | | supervise all gaming operations governed by this Act. The Board | 3 | | shall have all powers necessary and proper to fully and | 4 | | effectively execute the provisions of this Act, including, but | 5 | | not limited to, the following: | 6 | | (1) To investigate applicants and determine the | 7 | | eligibility of applicants for licenses and to select among | 8 | | competing applicants the applicants which best serve the | 9 | | interests of the citizens of Illinois. | 10 | | (2) To have jurisdiction and supervision over all video | 11 | | gaming operations in this State and all persons in | 12 | | establishments where video gaming operations are | 13 | | conducted. | 14 | | (3) To adopt rules for the purpose of administering the | 15 | | provisions of this Act and to prescribe rules, regulations, | 16 | | and conditions under which all video gaming in the State | 17 | | shall be conducted. Such rules and regulations are to | 18 | | provide for the prevention of practices detrimental to the | 19 | | public interest and for the best interests of video gaming, | 20 | | including rules and regulations (i) regarding the | 21 | | inspection of such establishments and the review of any | 22 | | permits or licenses necessary to operate an establishment | 23 | | under any laws or regulations applicable to | 24 | | establishments , (ii) and to impose penalties for | 25 | | violations of this Act and its rules , and (iii) | 26 | | establishing standards for advertising video gaming .
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| 1 | | (b) The Board shall adopt emergency rules to administer | 2 | | this Act in accordance with Section 5-45 of the Illinois | 3 | | Administrative Procedure Act. For the purposes of the Illinois | 4 | | Administrative Procedure Act, the General Assembly finds that | 5 | | the adoption of rules to implement this Act is deemed an | 6 | | emergency and necessary to the public interest, safety, and | 7 | | welfare.
| 8 | | (Source: P.A. 96-38, eff. 7-13-09; 96-1410, eff. 7-30-10.) | 9 | | Section 10. The Criminal Code of 2012 is amended by | 10 | | changing Sections 28-2, 28-5, and 28-8 as follows:
| 11 | | (720 ILCS 5/28-2) (from Ch. 38, par. 28-2)
| 12 | | Sec. 28-2. Definitions.
| 13 | | (a) A "gambling device" is any clock, tape machine, slot | 14 | | machine or
other machines or device for the reception of money | 15 | | or other thing of value
on chance or skill or upon the action | 16 | | of which money or other thing of
value is staked, hazarded, | 17 | | bet, won or lost; or any mechanism, furniture,
fixture, | 18 | | equipment or other device designed primarily for use in a | 19 | | gambling
place. A "gambling device" does not include:
| 20 | | (1) A coin-in-the-slot operated mechanical device | 21 | | played for amusement
which rewards the player with the | 22 | | right to replay such mechanical device,
which device is so | 23 | | constructed or devised as to make such result of the
| 24 | | operation thereof depend in part upon the skill of the |
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| 1 | | player and which
returns to the player thereof no money, | 2 | | property or right to receive money
or property.
| 3 | | (2) Vending machines by which full and adequate return | 4 | | is made for the
money invested and in which there is no | 5 | | element of chance or hazard.
| 6 | | (3) A crane game. For the purposes of this paragraph | 7 | | (3), a "crane
game" is an amusement device involving skill, | 8 | | if it rewards the player
exclusively with merchandise | 9 | | contained within the amusement device proper
and limited to | 10 | | toys, novelties and prizes other than currency, each having
| 11 | | a wholesale value which is not more than $25.
| 12 | | (4) A redemption machine. For the purposes of this | 13 | | paragraph (4), a
"redemption machine" is a single-player or | 14 | | multi-player amusement device
involving a game, the object | 15 | | of which is throwing, rolling, bowling,
shooting, placing, | 16 | | or propelling a ball or other object that is either | 17 | | physical or computer generated on a display or with lights | 18 | | into, upon, or
against a hole or other target that is | 19 | | either physical or computer generated on a display or with | 20 | | lights, or stopping, by physical, mechanical, or | 21 | | electronic means, a moving object that is either physical | 22 | | or computer generated on a display or with lights into, | 23 | | upon, or
against a hole or other target that is either | 24 | | physical or computer generated on a display or with lights, | 25 | | provided that all of the following
conditions are met:
| 26 | | (A) The outcome of the game is predominantly |
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| 1 | | determined by the
skill of the player.
| 2 | | (B) The award of the prize is based solely upon the | 3 | | player's
achieving the object of the game or otherwise | 4 | | upon the player's score.
| 5 | | (C) Only merchandise prizes are awarded.
| 6 | | (D) The wholesale value of prizes awarded in lieu | 7 | | of tickets
or tokens for single play of the device does | 8 | | not exceed $25.
| 9 | | (E) The redemption value of tickets, tokens, and | 10 | | other representations
of value, which may be | 11 | | accumulated by players to redeem prizes of greater
| 12 | | value, for a single play of the device does not exceed | 13 | | $25.
| 14 | | (5) Video gaming terminals at a licensed | 15 | | establishment, licensed truck stop establishment,
licensed
| 16 | | fraternal establishment, or licensed veterans | 17 | | establishment licensed in accordance with the Video Gaming | 18 | | Act. | 19 | | (a-5) "Internet" means an interactive computer service or | 20 | | system or an
information service, system, or access software | 21 | | provider that provides or
enables computer access by multiple | 22 | | users to a computer server, and includes,
but is not limited | 23 | | to, an information service, system, or access software
provider | 24 | | that provides access to a network system commonly known as the
| 25 | | Internet, or any comparable system or service and also | 26 | | includes, but is not
limited to, a World Wide Web page, |
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| 1 | | newsgroup, message board, mailing list, or
chat area on any | 2 | | interactive computer service or system or other online
service.
| 3 | | (a-6) "Access" and "computer" have the meanings ascribed to | 4 | | them in
Section
16D-2 of this Code.
| 5 | | (b) A "lottery" is any scheme or procedure whereby one or | 6 | | more prizes
are distributed by chance among persons who have | 7 | | paid or promised
consideration for a chance to win such prizes, | 8 | | whether such scheme or
procedure is called a lottery, raffle, | 9 | | gift, sale or some other name.
| 10 | | (c) A "policy game" is any scheme or procedure whereby a | 11 | | person promises
or guarantees by any instrument, bill, | 12 | | certificate, writing, token or other
device that any particular | 13 | | number, character, ticket or certificate shall
in the event of | 14 | | any contingency in the nature of a lottery entitle the
| 15 | | purchaser or holder to receive money, property or evidence of | 16 | | debt.
| 17 | | (Source: P.A. 97-1126, eff. 1-1-13.)
| 18 | | (720 ILCS 5/28-5) (from Ch. 38, par. 28-5)
| 19 | | Sec. 28-5. Seizure of gambling devices and gambling funds.
| 20 | | (a) Every device designed for gambling which is incapable | 21 | | of lawful use
or every device used unlawfully for gambling | 22 | | shall be considered a
"gambling device", and shall be subject | 23 | | to seizure, confiscation and
destruction by the Department of | 24 | | State Police or by any municipal, or other
local authority, | 25 | | within whose jurisdiction the same may be found. As used
in |
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| 1 | | this Section, a "gambling device" includes any slot machine, | 2 | | and
includes any machine or device constructed for the | 3 | | reception of money or
other thing of value and so constructed | 4 | | as to return, or to cause someone
to return, on chance to the | 5 | | player thereof money, property or a right to
receive money or | 6 | | property. With the exception of any device designed for
| 7 | | gambling which is incapable of lawful use, no gambling device | 8 | | shall be
forfeited or destroyed unless an individual with a | 9 | | property interest in
said device knows of the unlawful use of | 10 | | the device.
| 11 | | (b) Every gambling device shall be seized and forfeited to | 12 | | the county
wherein such seizure occurs. Any money or other | 13 | | thing of value integrally
related to acts of gambling shall be | 14 | | seized and forfeited to the county
wherein such seizure occurs.
| 15 | | (c) If, within 60 days after any seizure pursuant to | 16 | | subparagraph
(b) of this Section, a person having any property | 17 | | interest in the seized
property is charged with an offense, the | 18 | | court which renders judgment
upon such charge shall, within 30 | 19 | | days after such judgment, conduct a
forfeiture hearing to | 20 | | determine whether such property was a gambling device
at the | 21 | | time of seizure. Such hearing shall be commenced by a written
| 22 | | petition by the State, including material allegations of fact, | 23 | | the name
and address of every person determined by the State to | 24 | | have any property
interest in the seized property, a | 25 | | representation that written notice of
the date, time and place | 26 | | of such hearing has been mailed to every such
person by |
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| 1 | | certified mail at least 10 days before such date, and a
request | 2 | | for forfeiture. Every such person may appear as a party and
| 3 | | present evidence at such hearing. The quantum of proof required | 4 | | shall
be a preponderance of the evidence, and the burden of | 5 | | proof shall be on
the State. If the court determines that the | 6 | | seized property was
a gambling device at the time of seizure, | 7 | | an order of forfeiture and
disposition of the seized property | 8 | | shall be entered: a gambling device
shall be received by the | 9 | | State's Attorney, who shall effect its
destruction, except that | 10 | | valuable parts thereof may be liquidated and
the resultant | 11 | | money shall be deposited in the general fund of the county
| 12 | | wherein such seizure occurred; money and other things of value | 13 | | shall be
received by the State's Attorney and, upon | 14 | | liquidation, shall be
deposited in the general fund of the | 15 | | county wherein such seizure
occurred. However, in the event | 16 | | that a defendant raises the defense
that the seized slot | 17 | | machine is an antique slot machine described in
subparagraph | 18 | | (b) (7) of Section 28-1 of this Code and therefore he is
exempt | 19 | | from the charge of a gambling activity participant, the seized
| 20 | | antique slot machine shall not be destroyed or otherwise | 21 | | altered until a
final determination is made by the Court as to | 22 | | whether it is such an
antique slot machine. Upon a final | 23 | | determination by the Court of this
question in favor of the | 24 | | defendant, such slot machine shall be
immediately returned to | 25 | | the defendant. Such order of forfeiture and
disposition shall, | 26 | | for the purposes of appeal, be a final order and
judgment in a |
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| 1 | | civil proceeding.
| 2 | | (d) If a seizure pursuant to subparagraph (b) of this | 3 | | Section is not
followed by a charge pursuant to subparagraph | 4 | | (c) of this Section, or if
the prosecution of such charge is | 5 | | permanently terminated or indefinitely
discontinued without | 6 | | any judgment of conviction or acquittal (1) the
State's | 7 | | Attorney shall commence an in rem proceeding for the forfeiture
| 8 | | and destruction of a gambling device, or for the forfeiture and | 9 | | deposit
in the general fund of the county of any seized money | 10 | | or other things of
value, or both, in the circuit court and (2) | 11 | | any person having any
property interest in such seized gambling | 12 | | device, money or other thing
of value may commence separate | 13 | | civil proceedings in the manner provided
by law.
| 14 | | (e) Any gambling device displayed for sale to a riverboat | 15 | | gambling
operation or used to train occupational licensees of a | 16 | | riverboat gambling
operation as authorized under the Riverboat | 17 | | Gambling Act is exempt from
seizure under this Section.
| 18 | | (f) Any gambling equipment, devices and supplies provided | 19 | | by a licensed
supplier in accordance with the Riverboat | 20 | | Gambling Act which are removed
from the riverboat for repair | 21 | | are exempt from seizure under this Section.
| 22 | | (g) The following video gaming terminals are exempt from | 23 | | seizure under this Section: | 24 | | (1) Video gaming terminals for sale to a licensed | 25 | | distributor or operator under the Video Gaming Act. | 26 | | (2) Video gaming terminals used to train licensed |
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| 1 | | technicians or licensed terminal handlers. | 2 | | (3) Video gaming terminals that are removed from a | 3 | | licensed establishment, licensed truck stop establishment,
| 4 | | licensed
fraternal establishment, or licensed veterans | 5 | | establishment for repair. | 6 | | (Source: P.A. 87-826.)
| 7 | | (720 ILCS 5/28-8) (from Ch. 38, par. 28-8)
| 8 | | Sec. 28-8. Gambling
losses recoverable.
| 9 | | (a) Any person who by gambling shall lose to any other | 10 | | person, any sum
of money or thing of value, amounting to the | 11 | | sum of $50 or more and shall
pay or deliver the same or any part | 12 | | thereof, may sue for and recover the
money or other thing of | 13 | | value, so lost and paid or delivered, in a civil
action against | 14 | | the winner thereof, with costs, in
the circuit court. No person | 15 | | who accepts from another person for transmission,
and | 16 | | transmits, either in his own name or in the name of such other | 17 | | person,
any order for any transaction to be made upon, or who | 18 | | executes any order
given to him by another person, or who | 19 | | executes any transaction for his own
account on, any regular | 20 | | board of trade or commercial, commodity or stock
exchange, | 21 | | shall, under any circumstances, be deemed a "winner" of any
| 22 | | moneys lost by such other person in or through any such | 23 | | transactions.
| 24 | | (b) If within 6 months, such person who under the terms of | 25 | | Subsection
28-8(a) is entitled to initiate action to recover |
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| 1 | | his losses does not in
fact pursue his remedy, any person may | 2 | | initiate a civil action against the
winner. The court or the | 3 | | jury, as the case may be, shall determine the
amount of the | 4 | | loss. After such determination, the court shall enter a
| 5 | | judgment of triple the amount so determined.
| 6 | | (c) Gambling losses as a result of gambling conducted on a | 7 | | video gaming terminal licensed under the Video Gaming Act are | 8 | | not recoverable under this Section. | 9 | | (Source: P.A. 79-1360.)
| 10 | | Section 99. Effective date. This Act takes effect upon | 11 | | becoming law.
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