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90_HB0837 New Act 20 ILCS 301/20-20 30 ILCS 105/5.449 new 720 ILCS 5/28-1 from Ch. 38, par. 28-1 720 ILCS 5/28-1.1 from Ch. 38, par. 28-1.1 720 ILCS 5/28-3 from Ch. 38, par. 28-3 Creates the Video Gaming Act. Provides that the Illinois Department of Revenue shall be responsible for administration and enforcement of laws relating to video gaming terminals. Amends the Alcoholism and Other Drug Abuse and Dependency Act to create a program for education, training, and research concerning the problem of compulsive gambling. Amends the Gambling Article of the Criminal Code to make corresponding changes. Effective January 1, 1998. LRB9001574LDpk LRB9001574LDpk 1 AN ACT in relation to games of chance, amending named 2 Acts. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 1. Short title. This Act may be cited as the 6 Video Gaming Act. 7 Section 5. Definitions. As used in this Act: 8 "Credit" means 5, 10 or 25 cents either won or purchased 9 by a player. 10 "Department" means the Illinois Department of Revenue. 11 "Distributor" means an individual, partnership or 12 corporation licensed under this Act to buy, sell, lease, or 13 distribute video gaming terminals to terminal operators. 14 "Terminal operator" means an individual, partnership or 15 corporation that is licensed under this Act and that owns, 16 services, and maintains video gaming terminals for placement 17 in licensed establishments. 18 "Manufacturer" means an individual, partnership, or 19 corporation that is licensed under this Act and that 20 manufactures or assembles video gaming terminals. 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 26 to video poker, keno, and blackjack, authorized by the 27 Department utilizing a video display and microprocessors in 28 which the player may receive free games or credits that can 29 be redeemed for cash. The term does not include a machine 30 that directly dispenses coins, cash, or tokens. 31 "Licensed establishment" means: (i) the location where a -2- LRB9001574LDpk 1 qualified fraternal organization or a qualified veterans 2 organization under the Charitable Games Act, that derives its 3 charter from a national fraternal or veterans organization, 4 and that has received a charitable games license from the 5 Illinois Department of Revenue for the conduct of charitable 6 games is licensed to conduct those charitable games (ii) any 7 licensed retail establishment where alcoholic liquor is 8 drawn, poured, mixed or otherwise served for consumption on 9 the premises; and (iii) any racing facility at which 10 pari-mutuel wagering is conducted under the Illinois Horse 11 Racing Act of 1975 and any location at which pari-mutuel 12 wagering is conducted by an inter-track wagering location 13 licensee under the Illinois Horse Racing Act of 1975. 14 Section 10. Licensing and registration. Every 15 individual, corporation, contractor, subcontractor, or 16 partnership offering a licensee goods or services on a 17 regular basis that directly relate to the manufacture, 18 modification, distribution, sale, operation, maintenance, or 19 security of video gaming terminals shall be licensed and 20 registered pursuant to rules of the Department. 21 Section 15. Minimum requirements for licensing and 22 registration. Every video gaming terminal offered for play 23 shall first be tested and approved pursuant to the rules of 24 the Department, and each video gaming terminal offered in 25 this State for play shall conform to an approved model. The 26 Department may contract with an independent outside vendor 27 for the examination of video gaming machines and associated 28 equipment as required by this Section. Each approved model 29 shall, at a minimum, meet the following criteria: 30 (1) It must conform to all requirements of federal 31 law and regulations, including FCC Class A Emissions 32 Standards. -3- LRB9001574LDpk 1 (2) It must theoretically pay out a mathematically 2 demonstrable percentage of all amounts played, which must 3 not be less than 80%. Video gaming terminals that may be 4 affected by skill must meet this standard when using a 5 method of play that will provide the greatest return to 6 the player over a period of continuous play. 7 (3) It must use a random selection process to 8 determine the outcome of each play of a game. The random 9 selection process must meet 99% confidence limits using a 10 standard chi-squared test for (randomness) goodness of 11 fit. 12 (4) It must display an accurate representation of 13 the game outcome. 14 (5) It must not automatically alter pay tables or 15 any function of the video gaming terminal based on 16 internal computation of hold percentage. 17 (6) It must exhibit total immunity to human body 18 electrostatic discharges on all player-exposed areas. 19 (7) The random number generator and random 20 selection process must be impervious to influences from 21 outside the video gaming terminal and must use 22 appropriate communication protocols to protect the random 23 number generator and random selection process from 24 influence by affiliated equipment, such as the central 25 site monitoring equipment. 26 (8) It must be capable of detecting and displaying 27 the following conditions during idle states or on demand: 28 power reset; door open; and door just closed. 29 (9) The program residing in the video gaming 30 terminal must be contained in a storage medium that is 31 not alterable through any use of the circuitry or 32 programming of the video gaming terminal itself. 33 (10) It must have the capacity to display complete 34 play history (outcome, intermediate play steps, credits -4- LRB9001574LDpk 1 available, bets placed, credits paid and credits cashed 2 out) for the most recent game played and one game prior 3 thereto. 4 (11) The control program must check for any 5 corruption of random access memory locations used for 6 crucial video gaming terminal functions including, but 7 not limited to, information pertaining to the play and 8 final outcome of the 2 prior games, random number 9 generator outcome, credits available for play, and any 10 error states. These memory areas must be checked for 11 corruption following game initiation but prior to display 12 of the game outcome to the player. Detection of any 13 uncorrectable corruption shall be deemed to be a game 14 malfunction and must result in a tilt condition. 15 (12) The theoretical payback percentage of a video 16 gaming terminal must not be capable of being changed 17 without making a hardware or software change in the video 18 gaming terminal. 19 (13) Video gaming terminals must be designed so 20 that replacement of parts or modules required for normal 21 maintenance does not necessitate replacement of the 22 electromechanical meters. 23 (14) Video gaming terminals must have an 24 electronically stored digital meter of at least 3 digits 25 for the number of plays since power on and the number of 26 plays since door closure. When the maximum value has 27 been reached, the meters must remain at that value until 28 reset by occurrence of the appropriate event. The video 29 gaming terminal must provide the means for on-demand 30 display of the stored information. 31 (15) Electronically stored meter information 32 required by this Section must be preserved for a minimum 33 of 72 hours after a power loss to the service. 34 (16) Collectible credits may be accumulated from -5- LRB9001574LDpk 1 wins or from approved currency acceptors. Collectible 2 credits may be accumulated directly from coin or bill 3 acceptance if the video gaming terminal uses a coin or 4 bill acceptor. 5 (17) It shall have accounting software that keeps 6 an electronic record that includes, but is not limited 7 to, the following: total cash inserted into the video 8 gaming terminal; the value of winning tickets claimed by 9 players; the total credits played; and the total credits 10 awarded by a video gaming terminal. 11 (18) It shall be linked under a central 12 communications system on a "dial-up" basis to provide 13 auditing program information as approved by the 14 Department. In no event may the communications system 15 approved by the Department limit participation to only 16 one manufacturer of video gaming terminals by either the 17 cost in implementing the necessary program modifications 18 to communicate or the inability to communicate with the 19 central communications system. 20 Section 20. Direct dispensing of receipt tickets only. 21 A video gaming terminal may not directly dispense coins, 22 cash, tokens, or any other article of exchange or value 23 except for receipt tickets or other products approved by the 24 Department. Tickets shall be dispensed by pressing the 25 ticket dispensing button on the video gaming terminal at the 26 end of one's turn or play. The ticket shall indicate the 27 total amount of credits and the cash award, and the player 28 shall turn in this ticket to the appropriate person at the 29 licensed establishment to receive the cash award. The cost 30 of the credit shall be 5 cents, 10 cents, or 25 cents, and 31 the maximum wager played per game shall not exceed $2. No 32 cash award for the maximum wager on any individual game shall 33 exceed $500. -6- LRB9001574LDpk 1 Section 25. Restriction of licensees. 2 (a) Manufacturer. A person may not be licensed as a 3 manufacturer of a video gaming terminal in Illinois unless 4 the person has a valid manufacturer's license issued under 5 this Act. A manufacturer may only sell video gaming 6 terminals for use in Illinois to persons having a valid 7 distributor's license. 8 (b) Distributor. A person may not sell, service, 9 distribute, lease, or market a video gaming terminal in 10 Illinois unless the person has a valid distributor's license 11 issued under this Act. A distributor may only sell video 12 gaming terminals for use in Illinois to persons having a 13 valid distributor's or terminal operator's license. 14 (c) Terminal operator. A person may not own, service, 15 maintain, lease, or place a video gaming terminal unless he 16 or she has a valid terminal operator's license issued under 17 this Act. A terminal operator may only place video gaming 18 terminals for use in Illinois in licensed establishments. 19 (d) Licensed establishment. 20 (1) This paragraph (1) applies to licensed 21 establishments where a qualified fraternal organization 22 or a qualified veterans organization under the Charitable 23 Games Act that derives its charter from a national 24 fraternal or veterans organization and that has received 25 a charitable games license from the Illinois Department 26 of Revenue for the conduct of charitable games is 27 licensed to conduct those charitable games. A valid 28 charitable games license, issued by the Illinois 29 Department of Revenue for the conduct of charitable games 30 pursuant to the Charitable Games Act shall be prima facie 31 evidence of compliance with the licensing requirements of 32 this Act. No video gaming terminal may be placed in any 33 licensed establishment unless the owner or agent of the 34 owner of the licensed establishment has entered into a -7- LRB9001574LDpk 1 written use agreement with the terminal operator for 2 placement of the terminals. A copy of the use agreement 3 shall be on file in the terminal operator's place of 4 business and available for inspection by individuals 5 authorized by the Department. No licensed establishment 6 to which this paragraph (1) applies may have more than 5 7 video gaming terminals on its premises at any time, 8 unless otherwise authorized by the Department. 9 (2) This paragraph (2) applies to licensed retail 10 establishments where alcoholic liquor is drawn, poured, 11 mixed, or otherwise served for consumption on the 12 premises. A valid liquor license shall be prima facie 13 evidence of compliance with the licensing requirements of 14 this Act. No video gaming terminal may be placed in any 15 licensed establishment unless the owner or agent of the 16 owner of the licensed establishment has entered into a 17 written use agreement with the terminal operator for 18 placement of the terminals. A copy of the use agreement 19 shall be on file in the terminal operator's place of 20 business and available for inspection by individuals 21 authorized by the Department. No licensed establishment 22 to which this paragraph (2) applies may have more than 3 23 video gaming terminals on its premises at any time, 24 unless otherwise authorized by the Department. 25 (3) This paragraph (3) applies to licensed 26 establishments that are racing facilities or inter-track 27 wagering locations licensed under the Illinois Horse 28 Racing Act of 1975. A license to conduct pari-mutuel 29 wagering under that Act shall be prima facie evidence of 30 compliance with the licensing requirements of this Act. 31 No video gaming terminal may be placed in any licensed 32 establishment unless the owner or agent of the owner of 33 the licensed establishment has entered into a written use 34 agreement with the terminal operator for placement of the -8- LRB9001574LDpk 1 terminals. A copy of the use agreement shall be on file 2 in the terminal operator's place of business and 3 available for inspection by individuals authorized by the 4 Department. No racing facility to which this paragraph 5 (3) applies may have more than 40 video gaming terminals 6 on its premises at any time, unless otherwise authorized 7 by the Department, and no inter-track wagering location 8 to which this paragraph (3) applies may have more than 10 9 video gaming terminals on its premises at any time, 10 unless otherwise authorized by the Department. 11 (e) Residency requirement. Each licensed distributor, 12 terminal operator, and owner of a licensed establishment must 13 be an Illinois resident. However, if an out of state 14 distributor, terminal operator, or owner of a licensed 15 establishment has performed its respective business within 16 Illinois for at least 24 months prior to the effective date 17 of this Act, the out of state person may be eligible for 18 licensing under this Act. 19 (f) Use of term "casino". No licensee under this Act 20 shall use the word "casino", or any similar derivation of the 21 word, to describe a video gaming terminal or as the name or 22 any part of the name of a licensed establishment or a portion 23 thereof where a video gaming terminal is located, or in any 24 advertising or promotions conducted by individuals involved 25 with video gaming terminals. 26 (g) Financial interest restrictions. 27 (1) Except where a substantial interest has existed 28 between a manufacturer and an operator for a period of 29 not less than 24 months prior to the effective date of 30 this Act, no licensed manufacturer, distributor, or 31 terminal operator of video gaming terminals may: 32 (A) Have a substantial interest in any other 33 licensed business operating in whole or in part at a 34 different marketing level. -9- LRB9001574LDpk 1 (B) Allow any of its officers, or any other 2 person with a substantial interest in that business, 3 to have a substantial interest in a licensed 4 business operating in whole or in part at a 5 different marketing level. 6 (C) Employ any person in any capacity or allow 7 any person to represent the business in any way if 8 that person is also employed by or represents any 9 other of these businesses operating in whole or in 10 part at a different marketing level. 11 (D) Allow any other of these businesses 12 operating in whole or in part at a different 13 marketing level or any person with a substantial 14 interest therein to have a substantial interest in 15 it. 16 (2) As used in this subsection (g), "substantial 17 interest" in an organization, association, or business 18 means: 19 (A) When, with respect to a sole 20 proprietorship, an individual or his or her marital 21 community owns, operates, manages, or conducts, 22 directly or indirectly, the organization, 23 association, or business, or any part thereof; 24 (B) When, with respect to a partnership, the 25 individual or his or her marital community shares in 26 any of the profits or potential profits, of the 27 partnership activities; 28 (C) When, with respect to a corporation, an 29 individual or his or her spouse is an officer or 30 director or the individual or his or her marital 31 community is a holder, directly or beneficially, of 32 5% or more of any class of stock of the corporation; 33 (D) When, with respect to an organization not 34 covered in (A), (B), or (C) of this subsection (g), -10- LRB9001574LDpk 1 an individual or his or her spouse is an officer or 2 manages the business affairs or the individual or 3 his or her marital community is the owner of or 4 otherwise controls 10% or more of the assets of the 5 organization; or 6 (E) When an individual or his or her marital 7 community furnishes 5% or more of the capital, 8 whether in cash, goods, or services, for the 9 operation of any business, association, or 10 organization during any calendar year. 11 (h) Limits on operators. Beginning one year after the 12 effective date of this Act, no video lottery terminal 13 operator may have in operation more than 5% of the total 14 video gaming terminals in operation. 15 Section 30. Multiple types of licenses prohibited. A 16 video gaming terminal manufacturer may not be licensed as a 17 video gaming terminal distributor or operator or own, manage, 18 or control a licensed establishment, and shall be licensed 19 only to sell to distributors. A video gaming terminal 20 distributor may not be licensed as a video gaming terminal 21 manufacturer or operator or own, manage, or control a 22 licensed establishment, and shall only contract with a 23 licensed terminal operator. An owner or manager of a licensed 24 establishment may not be licensed as a video gaming terminal 25 manufacturer, distributor, or operator, and shall only 26 contract with a licensed operator to place and service this 27 equipment. The prohibitions contained in this Section 30 28 shall not apply where a substantial interest as defined in 29 Section 25 of this Act has existed between a manufacturer and 30 an operator for a period of not less than 24 months prior to 31 the effective date of this Act. 32 Section 35. Display of license; confiscation; violation. -11- LRB9001574LDpk 1 Each video gaming terminal shall be licensed by the 2 Department before placement or operation on the premises of a 3 licensed establishment. Each machine shall have the license 4 prominently displayed thereon. Any licensed establishment 5 used for the conduct of gambling games in violation of this 6 Act shall be considered a gambling place in violation of 7 Section 28-3 of the Criminal Code of 1961. Every gambling 8 device found in a licensed establishment operating gambling 9 games in violation of this Act shall be subject to seizure, 10 confiscation, and destruction as provided in Section 28-5 of 11 the Criminal Code of 1961. 12 Section 40. Video gaming terminal use by minors 13 prohibited. No licensee shall cause or permit any person 14 under the age of 21 years to use or play a video gaming 15 terminal. Any licensee who knowingly permits a person under 16 the age of 21 years to use or play a video gaming terminal is 17 guilty of a business offense and shall be fined an amount not 18 to exceed $5,000. 19 Section 45. Issuance of license. 20 (a) The burden is upon each applicant to demonstrate his 21 or her suitability for licensure. Each video gaming terminal 22 manufacturer, distributor, operator, and licensed 23 establishment shall be licensed by the Department before any 24 video gaming terminal is distributed, sold, or placed for 25 public use in this State. The Department may not issue a 26 license under this Act to any person who, within 10 years of 27 the date of the application, has been convicted of a felony 28 under the laws of this State, any other state, or the United 29 States or to any firm or corporation in which such a person 30 is an officer, director, or managerial employee. 31 (b) A non-refundable application fee shall be paid at 32 the time an application for a license is filed with the -12- LRB9001574LDpk 1 Department in the following amounts: 2 (1) Video gaming terminal 3 manufacturer.............................. $10,000 4 (2) Video gaming terminal 5 distributor............................... $5,000 6 (3) Video gaming terminal 7 operator.................................. $2,500 8 (c) The Department shall establish an annual fee for 9 each license not to exceed the following: 10 (1) Video gaming terminal 11 manufacturer.............................. $10,000 12 (2) Video gaming terminal 13 distributor............................... $10,000 14 (3) Video gaming terminal 15 operator.................................. $5,000 16 (4) Video gaming terminal 17 location.................................. $100 18 (5) Video gaming terminal.................. $100 19 Section 50. Distribution of license fees. Twenty-five 20 percent of all fees collected under Section 45 shall be 21 deposited in the Compulsive Gambling Fund. The remaining 22 amount shall be deposited in the General Revenue Fund for the 23 administering this Act or as otherwise determined by the 24 General Assembly. All licenses issued by the Department 25 under this Act are renewable annually unless sooner cancelled 26 or terminated. No license issued under this Act is 27 transferable or assignable. 28 Section 55. Precondition for Licensed Establishment. 29 (a) In all cases of application by a qualified fraternal 30 or veterans organization as a licensed establishment: 31 (1) Each licensed qualified fraternal or veterans 32 organization establishment shall possess a valid -13- LRB9001574LDpk 1 charitable games license issued by the Illinois 2 Department of Revenue in effect at the time of 3 application for and issuance of a video gaming terminal 4 license and at all times thereafter during which a video 5 gaming terminal is made available to the public for play 6 at that location. 7 (2) Except as otherwise specifically authorized by 8 the Department, no licensed qualified fraternal or 9 veterans organization establishment shall be licensed for 10 more than 5 video gaming terminals for any single 11 license. 12 (b) In all cases of application by a retail 13 liquor-serving establishment as a licensed establishment: 14 (1) Each licensed liquor-serving establishment 15 shall possess a valid liquor license issued by the 16 Illinois Liquor Control Commission in effect at the time 17 of application for and issuance of a video gaming 18 terminal license and at all times thereafter during which 19 a video gaming terminal is made available to the public 20 for play at that location. 21 (2) Except as otherwise specifically authorized by 22 the Department, no licensed liquor-serving establishment 23 shall be licensed for more than 3 video gaming terminals 24 for any single license. 25 (c) In all cases of application by a licensed racing 26 facility or inter-track wagering location as a licensed 27 establishment: 28 (1) Each licensed racing facility or inter-track 29 wagering location establishment shall possess a valid 30 license under the Illinois Horse Racing Act of 1975 in 31 effect at the time of application for and issuance of a 32 video gaming terminal license and at all times thereafter 33 during which a video gaming terminal is made available to 34 the public for play at that location. -14- LRB9001574LDpk 1 (2) Except as otherwise specifically authorized by 2 the Department, no licensed racing facility establishment 3 shall be licensed for more than 40 video gaming terminals 4 for any single license. 5 (3) Except as otherwise specifically authorized by 6 the Department, no licensed intertrack wagering location 7 establishment shall be licensed for more than 10 video 8 gaming terminals for any single license. 9 Section 60. Distribution of tax revenues. 10 (a) All tax revenues derived from video gaming terminals 11 by the State shall be held by the Department until they are 12 distributed. 13 (b) The State shall receive revenues based on net video 14 gaming terminal income (income after payout). The tax shall 15 be 20% of this amount. The tax shall automatically increase 16 to 25% 2 years after operation commences. 17 (c) The tax revenues shall be paid into the Video Gaming 18 School Fund, a special fund that is hereby created in the 19 State Treasury. The share for each individual school 20 district shall be determined by the video gaming terminal 21 income generated in that school district. 22 (d) Revenues generated from the play of video gaming 23 terminals shall be deposited by the terminal operator, who 24 shall be responsible for tax payments, in a specially 25 created, separate bank account maintained by the video gaming 26 terminal operator to allow for electronic fund transfers of 27 moneys for tax payment. 28 (e) Each licensed location shall maintain an adequate 29 video gaming fund, with the amount to be determined by the 30 Department. 31 (f) The distribution of the remaining (after tax) video 32 gaming terminal revenue shall be negotiated between the 33 operator and location involved and evidenced in writing. -15- LRB9001574LDpk 1 However, in no event shall the location receive more than 50% 2 of such amount. 3 Section 85. The Alcoholism and Other Drug Abuse and 4 Dependency Act is amended by adding Section 20-20 as follows: 5 (20 ILCS 301/20-20) 6 Sec. 20-20. Compulsive gambling program. 7 (a) The Department of Human Services shall establish a 8 program for: 9 (1) public education, research, and training 10 regarding problem or compulsive gambling; and 11 (2) the treatment and prevention of problem or 12 compulsive gambling. 13 (b) The Department's program under subsection (a) shall 14 include: 15 (1) establishing and maintaining a toll-free "800" 16 telephone number to provide crisis counseling and 17 referral services to families experiencing difficulty as 18 a result of problem or compulsive gambling; 19 (2) promoting public awareness regarding the 20 recognition and prevention of problem or compulsive 21 gambling; 22 (3) facilitating through in-service training and 23 other means the availability of effective assistance 24 programs for problem or compulsive gamblers; and 25 (4) conducting studies to identify adults and 26 juveniles in this State who are becoming or who are at 27 risk of becoming problem or compulsive gamblers. 28 Section 87. The State Finance Act is amended by adding 29 Section 5.449 as follows: 30 (30 ILCS 105/5.449 new) -16- LRB9001574LDpk 1 Sec. 5.449. The Video Gaming School Fund. 2 Section 90. The Criminal Code of 1961 is amended by 3 changing Sections 28-1, 28-1.1, and 28-3 as follows: 4 (720 ILCS 5/28-1) (from Ch. 38, par. 28-1) 5 Sec. 28-1. Gambling. 6 (a) A person commits gambling when he: 7 (1) Plays a game of chance or skill for money or 8 other thing of value, unless excepted in subsection (b) 9 of this Section; or 10 (2) Makes a wager upon the result of any game, 11 contest, or any political nomination, appointment or 12 election; or 13 (3) Operates, keeps, owns, uses, purchases, 14 exhibits, rents, sells, bargains for the sale or lease 15 of, manufactures or distributes any gambling device; or 16 (4) Contracts to have or give himself or another 17 the option to buy or sell, or contracts to buy or sell, 18 at a future time, any grain or other commodity 19 whatsoever, or any stock or security of any company, 20 where it is at the time of making such contract intended 21 by both parties thereto that the contract to buy or sell, 22 or the option, whenever exercised, or the contract 23 resulting therefrom, shall be settled, not by the receipt 24 or delivery of such property, but by the payment only of 25 differences in prices thereof; however, the issuance, 26 purchase, sale, exercise, endorsement or guarantee, by or 27 through a person registered with the Secretary of State 28 pursuant to Section 8 of the Illinois Securities Law of 29 1953, or by or through a person exempt from such 30 registration under said Section 8, of a put, call, or 31 other option to buy or sell securities which have been 32 registered with the Secretary of State or which are -17- LRB9001574LDpk 1 exempt from such registration under Section 3 of the 2 Illinois Securities Law of 1953 is not gambling within 3 the meaning of this paragraph (4); or 4 (5) Knowingly owns or possesses any book, 5 instrument or apparatus by means of which bets or wagers 6 have been, or are, recorded or registered, or knowingly 7 possesses any money which he has received in the course 8 of a bet or wager; or 9 (6) Sells pools upon the result of any game or 10 contest of skill or chance, political nomination, 11 appointment or election; or 12 (7) Sets up or promotes any lottery or sells, 13 offers to sell or transfers any ticket or share for any 14 lottery; or 15 (8) Sets up or promotes any policy game or sells, 16 offers to sell or knowingly possesses or transfers any 17 policy ticket, slip, record, document or other similar 18 device; or 19 (9) Knowingly drafts, prints or publishes any 20 lottery ticket or share, or any policy ticket, slip, 21 record, document or similar device, except for such 22 activity related to lotteries, bingo games and raffles 23 authorized by and conducted in accordance with the laws 24 of Illinois or any other state or foreign government; or 25 (10) Knowingly advertises any lottery or policy 26 game, except for such activity related to lotteries, 27 bingo games and raffles authorized by and conducted in 28 accordance with the laws of Illinois or any other state; 29 or 30 (11) Knowingly transmits information as to wagers, 31 betting odds, or changes in betting odds by telephone, 32 telegraph, radio, semaphore or similar means; or 33 knowingly installs or maintains equipment for the 34 transmission or receipt of such information; except that -18- LRB9001574LDpk 1 nothing in this subdivision (11) prohibits transmission 2 or receipt of such information for use in news reporting 3 of sporting events or contests. 4 (b) Participants in any of the following activities 5 shall not be convicted of gambling therefor: 6 (1) Agreements to compensate for loss caused by the 7 happening of chance including without limitation 8 contracts of indemnity or guaranty and life or health or 9 accident insurance; 10 (2) Offers of prizes, award or compensation to the 11 actual contestants in any bona fide contest for the 12 determination of skill, speed, strength or endurance or 13 to the owners of animals or vehicles entered in such 14 contest; 15 (3) Pari-mutuel betting as authorized by the law of 16 this State; 17 (4) Manufacture of gambling devices, including the 18 acquisition of essential parts therefor and the assembly 19 thereof, for transportation in interstate or foreign 20 commerce to any place outside this State when such 21 transportation is not prohibited by any applicable 22 Federal law; or the manufacture, distribution, or 23 possession of video gaming terminals, as defined in the 24 Video Gaming Act, by manufacturers, distributors, and 25 terminal operators licensed to do so under the Video 26 Gaming Act; 27 (5) The game commonly known as "bingo", when 28 conducted in accordance with the Bingo License and Tax 29 Act; 30 (6) Lotteries when conducted by the State of 31 Illinois in accordance with the Illinois Lottery Law; 32 (7) Possession of an antique slot machine that is 33 neither used nor intended to be used in the operation or 34 promotion of any unlawful gambling activity or -19- LRB9001574LDpk 1 enterprise. For the purpose of this subparagraph (b)(7), 2 an antique slot machine is one manufactured 25 years ago 3 or earlier; 4 (8) Raffles when conducted in accordance with the 5 Raffles Act; 6 (9) Charitable games when conducted in accordance 7 with the Charitable Games Act; 8 (10) Pull tabs and jar games when conducted under 9 the Illinois Pull Tabs and Jar Games Act;or10 (11) Gambling games conducted on riverboats when 11 authorized by the Riverboat Gambling Act; or.12 (12) Video gaming terminal games at licensed 13 establishments when conducted in accordance with the 14 Video Gaming Act. 15 (c) Sentence. 16 Gambling under subsection (a)(1) or (a)(2) of this 17 Section is a Class A misdemeanor. Gambling under any of 18 subsections (a)(3) through (a)(11) of this Section is a Class 19 A misdemeanor. A second or subsequent conviction under any 20 of subsections (a)(3) through (a)(11), is a Class 4 felony. 21 (d) Circumstantial evidence. 22 In prosecutions under subsection (a)(1) through (a)(11) 23 of this Section circumstantial evidence shall have the same 24 validity and weight as in any criminal prosecution. 25 (Source: P.A. 86-1029; 87-435.) 26 (720 ILCS 5/28-1.1) (from Ch. 38, par. 28-1.1) 27 Sec. 28-1.1. Syndicated gambling. 28 (a) Declaration of Purpose. Recognizing the close 29 relationship between professional gambling and other 30 organized crime, it is declared to be the policy of the 31 legislature to restrain persons from engaging in the business 32 of gambling for profit in this State. This Section shall be 33 liberally construed and administered with a view to carrying -20- LRB9001574LDpk 1 out this policy. 2 (b) A person commits syndicated gambling when he 3 operates a "policy game" or engages in the business of 4 bookmaking. 5 (c) A person "operates a policy game" when he knowingly 6 uses any premises or property for the purpose of receiving or 7 knowingly does receive from what is commonly called "policy": 8 (1) money from a person other than the better or 9 player whose bets or plays are represented by such money; 10 or 11 (2) written "policy game" records, made or used 12 over any period of time, from a person other than the 13 better or player whose bets or plays are represented by 14 such written record. 15 (d) A person engages in bookmaking when he receives or 16 accepts more than five bets or wagers upon the result of any 17 trials or contests of skill, speed or power of endurance or 18 upon any lot, chance, casualty, unknown or contingent event 19 whatsoever, which bets or wagers shall be of such size that 20 the total of the amounts of money paid or promised to be paid 21 to such bookmaker on account thereof shall exceed $2,000. 22 Bookmaking is the receiving or accepting of such bets or 23 wagers regardless of the form or manner in which the 24 bookmaker records them. 25 (e) Participants in any of the following activities 26 shall not be convicted of syndicated gambling: 27 (1) Agreements to compensate for loss caused by the 28 happening of chance including without limitation 29 contracts of indemnity or guaranty and life or health or 30 accident insurance; and 31 (2) Offers of prizes, award or compensation to the 32 actual contestants in any bona fide contest for the 33 determination of skill, speed, strength or endurance or 34 to the owners of animals or vehicles entered in such -21- LRB9001574LDpk 1 contest; and 2 (3) Pari-mutuel betting as authorized by law of 3 this State; and 4 (4) Manufacture of gambling devices, including the 5 acquisition of essential parts therefor and the assembly 6 thereof, for transportation in interstate or foreign 7 commerce to any place outside this State when such 8 transportation is not prohibited by any applicable 9 Federal law; and 10 (5) Raffles when conducted in accordance with the 11 Raffles Act; and 12 (6) Gambling games conducted on riverboats when 13 authorized by the Riverboat Gambling Act; and.14 (7) Video gaming terminal games at licensed 15 establishments when conducted in accordance with the 16 Video Gaming Act. 17 (f) Sentence. Syndicated gambling is a Class 3 felony. 18 (Source: P.A. 86-1029; 87-435.) 19 (720 ILCS 5/28-3) (from Ch. 38, par. 28-3) 20 Sec. 28-3. Keeping a Gambling Place. A "gambling place" 21 is any real estate, vehicle, boat or any other property 22 whatsoever used for the purposes of gambling other than 23 gambling conducted in the manner authorized by the Riverboat 24 Gambling Act or the Video Gaming Act. Any person who 25 knowingly permits any premises or property owned or occupied 26 by him or under his control to be used as a gambling place 27 commits a Class A misdemeanor. Each subsequent offense is a 28 Class 4 felony. When any premises is determined by the 29 circuit court to be a gambling place: 30 (a) Such premises is a public nuisance and may be 31 proceeded against as such, and 32 (b) All licenses, permits or certificates issued by the 33 State of Illinois or any subdivision or public agency thereof -22- LRB9001574LDpk 1 authorizing the serving of food or liquor on such premises 2 shall be void; and no license, permit or certificate so 3 cancelled shall be reissued for such premises for a period of 4 60 days thereafter; nor shall any person convicted of keeping 5 a gambling place be reissued such license for one year from 6 his conviction and, after a second conviction of keeping a 7 gambling place, any such person shall not be reissued such 8 license, and 9 (c) Such premises of any person who knowingly permits 10 thereon a violation of any Section of this Article shall be 11 held liable for, and may be sold to pay any unsatisfied 12 judgment that may be recovered and any unsatisfied fine that 13 may be levied under any Section of this Article. 14 (Source: P.A. 86-1029.) 15 Section 99. Effective date. This Act takes effect 16 January 1, 1998.