Sen. Terry Link

Filed: 5/29/2017

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 209

2    AMENDMENT NO. ______. Amend Senate Bill 209 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Video Gaming Act is amended by changing
5Sections 20 and 25 as follows:
 
6    (230 ILCS 40/20)
7    Sec. 20. Direct dispensing of receipt tickets only. A video
8gaming terminal may not directly dispense coins, cash, tokens,
9or any other article of exchange or value except for receipt
10tickets. Tickets shall be dispensed by pressing the ticket
11dispensing button on the video gaming terminal at the end of
12one's turn or play. The ticket shall indicate the total amount
13of credits and the cash award, the time of day in a 24-hour
14format showing hours and minutes, the date, the terminal serial
15number, the sequential number of the ticket, and an encrypted
16validation number from which the validity of the prize may be

 

 

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1determined. The player shall turn in this ticket to the
2appropriate person at the licensed establishment, licensed
3truck stop establishment, licensed fraternal establishment, or
4licensed veterans establishment to receive the cash award. The
5cost of the credit shall be one cent, 5 cents, 10 cents, or 25
6cents, and the maximum wager played per hand shall not exceed
7$4 $2. No cash award for the maximum wager on any individual
8hand shall exceed $1,199 $500. No cash award for the maximum
9wager on a jackpot, progressive or otherwise, shall exceed
10$10,000.
11(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.)
 
12    (230 ILCS 40/25)
13    Sec. 25. Restriction of licensees.
14    (a) Manufacturer. A person may not be licensed as a
15manufacturer of a video gaming terminal in Illinois unless the
16person has a valid manufacturer's license issued under this
17Act. A manufacturer may only sell video gaming terminals for
18use in Illinois to persons having a valid distributor's
19license.
20    (b) Distributor. A person may not sell, distribute, or
21lease or market a video gaming terminal in Illinois unless the
22person has a valid distributor's license issued under this Act.
23A distributor may only sell video gaming terminals for use in
24Illinois to persons having a valid distributor's or terminal
25operator's license.

 

 

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1    (c) Terminal operator. A person may not own, maintain, or
2place a video gaming terminal unless he has a valid terminal
3operator's license issued under this Act. A terminal operator
4may only place video gaming terminals for use in Illinois in
5licensed establishments, licensed truck stop establishments,
6licensed fraternal establishments, and licensed veterans
7establishments. No terminal operator or officer, employee, or
8agent of a terminal operator may offer, promise, or give
9anything of value, including, but not limited to, a loan or
10financing arrangement, to a licensed establishment, licensed
11truck stop establishment, licensed fraternal establishment, or
12licensed veterans establishment in accordance with an
13agreement or arrangement or with the intent that the offer,
14promise, or gift of the thing of value shall act as an any
15incentive or inducement with respect to locating or maintaining
16locate video terminals in that establishment. The following
17items and activities are permissible and do not constitute "of
18value" violations under this subsection:
19        (1) A terminal operator may reimburse a licensed
20    establishment, licensed truck stop establishment, licensed
21    fraternal establishment, or licensed veterans
22    establishment for the actual cost of the food or
23    non-alcoholic beverages given directly to video gaming
24    terminal players in an amount not to exceed 5% of the
25    terminal operator's monthly share of net terminal income if
26    the licensed location has, for the preceding 6 consecutive

 

 

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1    calendar months, averaged monthly cumulative net terminal
2    income for the location equivalent to net terminal income
3    of at least $120 per day per video gaming terminal
4    immediately on the premises, and if the reimbursement
5    terms, including the requirement that the terminal
6    operator be provided with receipts or documentation of the
7    actual cost of the food or non-alcoholic beverages, are set
8    forth in the written use agreement between the parties. In
9    the event of the authorization of a players' rewards
10    program, if food or non-alcoholic beverage awards are made
11    available through the program, then a terminal operator may
12    reimburse a licensed establishment, licensed truck stop
13    establishment, licensed fraternal establishment, or
14    licensed veterans establishment up to 50% of the actual
15    cost of the food or non-alcoholic beverages awarded, and
16    the reimbursement terms, including the requirement that
17    the terminal operator be provided with receipts or
18    documentation of the actual cost of the food or
19    non-alcoholic beverages, are set forth in the written use
20    agreement between the parties.
21        (2) A terminal operator may reimburse a licensed
22    establishment, licensed truck stop establishment, licensed
23    fraternal establishment, or licensed veterans
24    establishment for up to 50% of the actual cost of
25    promotional items, excluding food or non-alcoholic
26    beverages, of more than nominal value, such as vacation

 

 

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1    trips and prizes that are given directly to video gaming
2    terminal players if the reimbursement terms, including the
3    requirement that the terminal operator be provided with
4    receipts or documentation of the actual cost of these
5    items, are set forth in the written use agreement between
6    the parties. The cost of promotional items of nominal value
7    that bear a logo or name and that are given to patrons or
8    video gaming terminal players, however, may not be
9    reimbursed or shared and shall be paid for entirely by the
10    terminal operator or the licensed location whose name or
11    logo appears on the item. As used in this paragraph,
12    "promotional items of nominal value" does not include gift
13    cards, gift certificates, cash, and cash equivalents.
14        (3) A terminal operator may reimburse a licensed
15    establishment, licensed truck stop establishment, licensed
16    fraternal establishment, or licensed veterans
17    establishment for up to 50% of the actual cost of
18    advertising that promotes video gaming at that licensed
19    location if the reimbursement terms, including the
20    requirement that the terminal operator be provided with
21    receipts or documentation of the actual cost of the
22    advertising, are set forth in the written use agreement
23    between the parties.
24    The Board shall adopt rules concerning the items and
25activities permissible under this subsection as well as other
26activities that do not constitute "of value" violations under

 

 

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

 

 

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1fraternal establishment unless the owner or agent of the owner
2of the licensed establishment, licensed veterans
3establishment, licensed truck stop establishment, or licensed
4fraternal establishment has entered into a written use
5agreement with the terminal operator for placement of the
6terminals. A copy of the use agreement shall be on file in the
7terminal operator's place of business and available for
8inspection by individuals authorized by the Board.
9    (e-5) A licensed establishment, licensed truck stop
10establishment, licensed veterans establishment, or licensed
11fraternal establishment may operate up to 5 video gaming
12terminals on its premises at any time.
13    (f) (Blank).
14    (g) Financial interest restrictions. As used in this Act,
15"substantial interest" in a partnership, a corporation, an
16organization, an association, a business, or a limited
17liability company means:
18        (A) When, with respect to a sole proprietorship, an
19    individual or his or her spouse owns, operates, manages, or
20    conducts, directly or indirectly, the organization,
21    association, or business, or any part thereof; or
22        (B) When, with respect to a partnership, the individual
23    or his or her spouse shares in any of the profits, or
24    potential profits, of the partnership activities; or
25        (C) When, with respect to a corporation, an individual
26    or his or her spouse is an officer or director, or the

 

 

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

 

 

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1establishment, or licensed veterans establishment that is (i)
2located within 1,000 feet of a facility operated by an
3organization licensee licensed under the Illinois Horse Racing
4Act of 1975 or the home dock of a riverboat licensed under the
5Riverboat Gambling Act or (ii) located within 100 feet of a
6school or a place of worship under the Religious Corporation
7Act, is ineligible to operate a video gaming terminal. The
8location restrictions in this subsection (h) do not apply if
9(A) a facility operated by an organization licensee, a school,
10or a place of worship moves to or is established within the
11restricted area after a licensed establishment, licensed truck
12stop establishment, licensed fraternal establishment, or
13licensed veterans establishment becomes licensed under this
14Act or (B) a school or place of worship moves to or is
15established within the restricted area after a licensed
16establishment, licensed truck stop establishment, licensed
17fraternal establishment, or licensed veterans establishment
18obtains its original liquor license. For the purpose of this
19subsection, "school" means an elementary or secondary public
20school, or an elementary or secondary private school registered
21with or recognized by the State Board of Education.
22    Notwithstanding the provisions of this subsection (h), the
23Board may waive the requirement that a licensed establishment,
24licensed truck stop establishment, licensed fraternal
25establishment, or licensed veterans establishment not be
26located within 1,000 feet from a facility operated by an

 

 

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1organization licensee licensed under the Illinois Horse Racing
2Act of 1975 or the home dock of a riverboat licensed under the
3Riverboat Gambling Act. The Board shall not grant such waiver
4if there is any common ownership or control, shared business
5activity, or contractual arrangement of any type between the
6establishment and the organization licensee or owners licensee
7of a riverboat. The Board shall adopt rules to implement the
8provisions of this paragraph.
9    (i) Undue economic concentration. In addition to
10considering all other requirements under this Act, in deciding
11whether to approve the operation of video gaming terminals by a
12terminal operator in a location, the Board shall consider the
13impact of any economic concentration of such operation of video
14gaming terminals. The Board shall not allow a terminal operator
15to operate video gaming terminals if the Board determines such
16operation will result in undue economic concentration. For
17purposes of this Section, "undue economic concentration" means
18that a terminal operator would have such actual or potential
19influence 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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1concentration with respect to the operation of video gaming
2terminals in Illinois. The rules shall include, but not be
3limited to, (i) limitations on the number of video gaming
4terminals operated by any terminal operator within a defined
5geographic radius and (ii) guidelines on the discontinuation of
6operation of any such video gaming terminals the Board
7determines will cause undue economic concentration.
8    (j) The provisions of the Illinois Antitrust Act are fully
9and equally applicable to the activities of any licensee under
10this Act.
11(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,
12eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.".