101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2648

 

Introduced , by Rep. Robert Rita

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Video Gaming Act. Allows for video gaming by organization licensees and inter-track wagering location licensees under the Illinois Horse Racing Act of 1975; makes conforming changes throughout the Video Gaming Act and in the Criminal Code of 2012. Removes references to organization licensees and inter-track wagering location licensees from the definition of "licensed establishment". Provides that an organization licensee who held that license in 2016 may operate up to 500 video gaming terminals on its premises at any time and an inter-track wagering location licensee may operate up to 5 video gaming terminals at the inter-track wagering location licensee's location or on the premises of the organization licensee with which they are affiliated. Requires organization licensees and inter-track wagering location licensees to deposit 40% of their share of the net terminal income from video gaming into the horsemen purse accounts associated with their respective racetrack to be distributed by agreements between breeds. Makes other changes.


LRB101 08934 SMS 54024 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2648LRB101 08934 SMS 54024 b

1    AN ACT concerning gaming.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Video Gaming Act is amended by changing the
5Sections 5, 25, 30, 35, 45, 55, 58, and 60 as follows:
 
6    (230 ILCS 40/5)
7    Sec. 5. Definitions. As used in this Act:
8    "Board" means the Illinois Gaming Board.
9    "Credit" means one, 5, 10, or 25 cents either won or
10purchased by a player.
11    "Distributor" means an individual, partnership,
12corporation, or limited liability company licensed under this
13Act to buy, sell, lease, or distribute video gaming terminals
14or major components or parts of video gaming terminals to or
15from terminal operators.
16    "Electronic card" means a card purchased from a licensed
17establishment, licensed fraternal establishment, licensed
18veterans establishment, or licensed truck stop establishment
19for use in that establishment as a substitute for cash in the
20conduct of gaming on a video gaming terminal.
21    "Electronic voucher" means a voucher printed by an
22electronic video game machine that is redeemable in the
23licensed establishment for which it was issued.

 

 

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1    "Terminal operator" means an individual, partnership,
2corporation, or limited liability company that is licensed
3under this Act and that owns, services, and maintains video
4gaming terminals for placement in licensed establishments,
5licensed truck stop establishments, licensed fraternal
6establishments, organization licensee locations, inter-track
7wagering location licensee locations, or licensed veterans
8establishments.
9    "Licensed technician" means an individual who is licensed
10under this Act to repair, service, and maintain video gaming
11terminals.
12    "Licensed terminal handler" means a person, including but
13not limited to an employee or independent contractor working
14for a manufacturer, distributor, supplier, technician, or
15terminal operator, who is licensed under this Act to possess or
16control a video gaming terminal or to have access to the inner
17workings of a video gaming terminal. A licensed terminal
18handler does not include an individual, partnership,
19corporation, or limited liability company defined as a
20manufacturer, distributor, supplier, technician, or terminal
21operator under this Act.
22    "Manufacturer" means an individual, partnership,
23corporation, or limited liability company that is licensed
24under this Act and that manufactures or assembles video gaming
25terminals.
26    "Supplier" means an individual, partnership, corporation,

 

 

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1or limited liability company that is licensed under this Act to
2supply major components or parts to video gaming terminals to
3licensed terminal operators.
4    "Net terminal income" means money put into a video gaming
5terminal minus credits paid out to players.
6    "Video gaming terminal" means any electronic video game
7machine that, upon insertion of cash, electronic cards or
8vouchers, or any combination thereof, is available to play or
9simulate the play of a video game, including but not limited to
10video poker, line up, and blackjack, as authorized by the Board
11utilizing a video display and microprocessors in which the
12player may receive free games or credits that can be redeemed
13for cash. The term does not include a machine that directly
14dispenses coins, cash, or tokens or is for amusement purposes
15only.
16    "Licensed establishment" means any licensed retail
17establishment where alcoholic liquor is drawn, poured, mixed,
18or otherwise served for consumption on the premises, whether
19the establishment operates on a nonprofit or for-profit basis.
20"Licensed establishment" includes any such establishment that
21has a contractual relationship with an inter-track wagering
22location licensee licensed under the Illinois Horse Racing Act
23of 1975, provided any contractual relationship shall not
24include any transfer or offer of revenue from the operation of
25video gaming under this Act to any licensee licensed under the
26Illinois Horse Racing Act of 1975. Provided, however, that the

 

 

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1licensed establishment that has such a contractual
2relationship with an inter-track wagering location licensee
3may not, itself, be (i) an inter-track wagering location
4licensee, (ii) the corporate parent or subsidiary of any
5licensee licensed under the Illinois Horse Racing Act of 1975,
6or (iii) the corporate subsidiary of a corporation that is also
7the corporate parent or subsidiary of any licensee licensed
8under the Illinois Horse Racing Act of 1975. "Licensed
9establishment" does not include a facility operated by an
10organization licensee, an inter-track wagering licensee, or an
11inter-track wagering location licensee licensed under the
12Illinois Horse Racing Act of 1975 or a riverboat licensed under
13the Riverboat Gambling Act, except as provided in this
14paragraph. The changes made to this definition by Public Act
1598-587 are declarative of existing law.
16    "Licensed fraternal establishment" means the location
17where a qualified fraternal organization that derives its
18charter from a national fraternal organization regularly
19meets.
20    "Licensed veterans establishment" means the location where
21a qualified veterans organization that derives its charter from
22a national veterans organization regularly meets.
23    "Licensed truck stop establishment" means a facility (i)
24that is at least a 3-acre facility with a convenience store,
25(ii) with separate diesel islands for fueling commercial motor
26vehicles, (iii) that sells at retail more than 10,000 gallons

 

 

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1of diesel or biodiesel fuel per month, and (iv) with parking
2spaces for commercial motor vehicles. "Commercial motor
3vehicles" has the same meaning as defined in Section 18b-101 of
4the Illinois Vehicle Code. The requirement of item (iii) of
5this paragraph may be met by showing that estimated future
6sales or past sales average at least 10,000 gallons per month.
7    "Organization licensee" means an organization licensee as
8defined in the Illinois Horse Racing Act of 1975.
9    "Inter-track wagering location licensee" means an
10inter-track wagering location licensee as defined in the
11Illinois Horse Racing Act of 1975.
12(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13;
1398-582, eff. 8-27-13; 98-587, eff. 8-27-13; 98-756, eff.
147-16-14.)
 
15    (230 ILCS 40/25)
16    Sec. 25. Restriction of licensees.
17    (a) Manufacturer. A person may not be licensed as a
18manufacturer of a video gaming terminal in Illinois unless the
19person has a valid manufacturer's license issued under this
20Act. A manufacturer may only sell video gaming terminals for
21use in Illinois to persons having a valid distributor's
22license.
23    (b) Distributor. A person may not sell, distribute, or
24lease or market a video gaming terminal in Illinois unless the
25person has a valid distributor's license issued under this Act.

 

 

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1A distributor may only sell video gaming terminals for use in
2Illinois to persons having a valid distributor's or terminal
3operator's license.
4    (c) Terminal operator. A person may not own, maintain, or
5place a video gaming terminal unless he has a valid terminal
6operator's license issued under this Act. A terminal operator
7may only place video gaming terminals for use in Illinois in
8licensed establishments, licensed truck stop establishments,
9licensed fraternal establishments, organization licensee
10locations, inter-track wagering location licensee locations,
11and licensed veterans establishments. No terminal operator may
12give anything of value, including but not limited to a loan or
13financing arrangement, to a licensed establishment, licensed
14truck stop establishment, licensed fraternal establishment,
15organization licensee location, inter-track wagering location
16licensee location, or licensed veterans establishment as any
17incentive or inducement to locate video terminals in that
18establishment. Of the after-tax profits from a video gaming
19terminal, 50% shall be paid to the terminal operator and 50%
20shall be paid to the licensed establishment, licensed truck
21stop establishment, licensed fraternal establishment,
22organization licensee location, inter-track wagering location
23licensee location, or licensed veterans establishment,
24notwithstanding any agreement to the contrary. Organization
25licensees and inter-track wagering location licensees shall
26deposit 40% of their share of the net terminal income into the

 

 

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1horsemen purse accounts associated with their respective
2racetrack to be distributed by agreements between breeds. A
3video terminal operator that violates one or more requirements
4of this subsection is guilty of a Class 4 felony and is subject
5to termination of his or her license by the Board.
6    (d) Licensed technician. A person may not service,
7maintain, or repair a video gaming terminal in this State
8unless he or she (1) has a valid technician's license issued
9under this Act, (2) is a terminal operator, or (3) is employed
10by a terminal operator, distributor, or manufacturer.
11    (d-5) Licensed terminal handler. No person, including, but
12not limited to, an employee or independent contractor working
13for a manufacturer, distributor, supplier, technician, or
14terminal operator licensed pursuant to this Act, shall have
15possession or control of a video gaming terminal, or access to
16the inner workings of a video gaming terminal, unless that
17person possesses a valid terminal handler's license issued
18under this Act.
19    (e) Licensed establishment. No video gaming terminal may be
20placed in any licensed establishment, licensed veterans
21establishment, licensed truck stop establishment, organization
22licensee location, inter-track wagering location licensee
23location, or licensed fraternal establishment unless the owner
24or agent of the owner of the licensed establishment, licensed
25veterans establishment, licensed truck stop establishment,
26organization licensee, inter-track wagering location licensee,

 

 

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1or licensed fraternal establishment has entered into a written
2use agreement with the terminal operator for placement of the
3terminals. A copy of the use agreement shall be on file in the
4terminal operator's place of business and available for
5inspection by individuals authorized by the Board. A licensed
6establishment, licensed truck stop establishment, licensed
7veterans establishment, or licensed fraternal establishment
8may operate up to 5 video gaming terminals on its premises at
9any time, except that an organization licensee licensed under
10the Illinois Horse Racing Act of 1975 who held that license in
112016 may operate up to 500 video gaming terminals at its
12organization licensee location at any time and an inter-track
13wagering location licensee may operate up to 5 video gaming
14terminals at the inter-track wagering location licensee's
15location or on the premises of the organization licensee with
16which they are affiliated. An organization licensee may enter
17into a written use agreement with multiple terminal operators
18for placement of terminals on the organization licensee's
19premises.
20    (f) (Blank).
21    (g) Financial interest restrictions. As used in this Act,
22"substantial interest" in a partnership, a corporation, an
23organization, an association, a business, or a limited
24liability company means:
25        (A) When, with respect to a sole proprietorship, an
26    individual or his or her spouse owns, operates, manages, or

 

 

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1    conducts, directly or indirectly, the organization,
2    association, or business, or any part thereof; or
3        (B) When, with respect to a partnership, the individual
4    or his or her spouse shares in any of the profits, or
5    potential profits, of the partnership activities; or
6        (C) When, with respect to a corporation, an individual
7    or his or her spouse is an officer or director, or the
8    individual or his or her spouse is a holder, directly or
9    beneficially, of 5% or more of any class of stock of the
10    corporation; or
11        (D) When, with respect to an organization not covered
12    in (A), (B) or (C) above, an individual or his or her
13    spouse is an officer or manages the business affairs, or
14    the individual or his or her spouse is the owner of or
15    otherwise controls 10% or more of the assets of the
16    organization; or
17        (E) When an individual or his or her spouse furnishes
18    5% or more of the capital, whether in cash, goods, or
19    services, for the operation of any business, association,
20    or organization during any calendar year; or
21        (F) When, with respect to a limited liability company,
22    an individual or his or her spouse is a member, or the
23    individual or his or her spouse is a holder, directly or
24    beneficially, of 5% or more of the membership interest of
25    the limited liability company.
26    For purposes of this subsection (g), "individual" includes

 

 

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1all individuals or their spouses whose combined interest would
2qualify as a substantial interest under this subsection (g) and
3whose activities with respect to an organization, association,
4or business are so closely aligned or coordinated as to
5constitute the activities of a single entity.
6    (h) Location restriction. A licensed establishment,
7licensed truck stop establishment, licensed fraternal
8establishment, organization licensee location, inter-track
9wagering location licensee location, or licensed veterans
10establishment that is (i) located within 1,000 feet of a
11facility operated by an organization licensee licensed under
12the Illinois Horse Racing Act of 1975 or the home dock of a
13riverboat licensed under the Riverboat Gambling Act or (ii)
14located within 100 feet of a school or a place of worship under
15the Religious Corporation Act, is ineligible to operate a video
16gaming terminal. The location restrictions in this subsection
17(h) do not apply if (A) a facility operated by an organization
18licensee, a school, or a place of worship moves to or is
19established within the restricted area after a licensed
20establishment, licensed truck stop establishment, licensed
21fraternal establishment, organization licensee, inter-track
22wagering location licensee, or licensed veterans establishment
23becomes licensed under this Act or (B) a school or place of
24worship moves to or is established within the restricted area
25after a licensed establishment, licensed truck stop
26establishment, licensed fraternal establishment, organization

 

 

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1licensee, inter-track wagering location licensee, or licensed
2veterans establishment obtains its original liquor license.
3For the purpose of this subsection, "school" means an
4elementary or secondary public school, or an elementary or
5secondary private school registered with or recognized by the
6State Board of Education.
7    Notwithstanding the provisions of this subsection (h), the
8Board may waive the requirement that a licensed establishment,
9licensed truck stop establishment, licensed fraternal
10establishment, organization licensee location, inter-track
11wagering location licensee location, or licensed veterans
12establishment not be located within 1,000 feet from a facility
13operated by an organization licensee licensed under the
14Illinois Horse Racing Act of 1975 or the home dock of a
15riverboat licensed under the Riverboat Gambling Act. The Board
16shall not grant such waiver if there is any common ownership or
17control, shared business activity, or contractual arrangement
18of any type between the establishment and the organization
19licensee or owners licensee of a riverboat. The Board shall
20adopt rules to implement the provisions of this paragraph.
21    (i) Undue economic concentration. In addition to
22considering all other requirements under this Act, in deciding
23whether to approve the operation of video gaming terminals by a
24terminal operator in a location, the Board shall consider the
25impact of any economic concentration of such operation of video
26gaming terminals. The Board shall not allow a terminal operator

 

 

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1to operate video gaming terminals if the Board determines such
2operation will result in undue economic concentration. For
3purposes of this Section, "undue economic concentration" means
4that a terminal operator would have such actual or potential
5influence over video gaming terminals in Illinois as to:
6        (1) substantially impede or suppress competition among
7    terminal operators;
8        (2) adversely impact the economic stability of the
9    video gaming industry in Illinois; or
10        (3) negatively impact the purposes of the Video Gaming
11    Act.
12    The Board shall adopt rules concerning undue economic
13concentration with respect to the operation of video gaming
14terminals in Illinois. The rules shall include, but not be
15limited to, (i) limitations on the number of video gaming
16terminals operated by any terminal operator within a defined
17geographic radius and (ii) guidelines on the discontinuation of
18operation of any such video gaming terminals the Board
19determines will cause undue economic concentration.
20    (j) The provisions of the Illinois Antitrust Act are fully
21and equally applicable to the activities of any licensee under
22this Act.
23(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,
24eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
 
25    (230 ILCS 40/30)

 

 

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1    Sec. 30. Multiple types of licenses prohibited. A video
2gaming terminal manufacturer may not be licensed as a video
3gaming terminal operator or own, manage, or control a licensed
4establishment, licensed truck stop establishment, licensed
5fraternal establishment, organization licensee location,
6inter-track wagering location licensee location, or licensed
7veterans establishment, and shall be licensed to sell only to
8persons having a valid distributor's license or, if the
9manufacturer also holds a valid distributor's license, to sell,
10distribute, lease, or market to persons having a valid terminal
11operator's license. A video gaming terminal distributor may not
12be licensed as a video gaming terminal operator or own, manage,
13or control a licensed establishment, licensed truck stop
14establishment, licensed fraternal establishment, or licensed
15veterans establishment, and shall only contract with a licensed
16terminal operator. A video gaming terminal operator may not be
17licensed as a video gaming terminal manufacturer or distributor
18or own, manage, or control a licensed establishment, licensed
19truck stop establishment, licensed fraternal establishment, or
20licensed veterans establishment, and shall be licensed only to
21contract with licensed distributors and licensed
22establishments, licensed truck stop establishments, licensed
23fraternal establishments, and licensed veterans
24establishments. An owner or manager of a licensed
25establishment, licensed truck stop establishment, licensed
26fraternal establishment, or licensed veterans establishment

 

 

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1may not be licensed as a video gaming terminal manufacturer,
2distributor, or operator, and shall only contract with a
3licensed operator to place and service this equipment.
4(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.)
 
5    (230 ILCS 40/35)
6    Sec. 35. Display of license; confiscation; violation as
7felony.
8    (a) Each video gaming terminal shall be licensed by the
9Board before placement or operation on the premises of a
10licensed establishment, licensed truck stop establishment,
11licensed fraternal establishment, organization licensee
12location, inter-track wagering location licensee location, or
13licensed veterans establishment. The license of each video
14gaming terminal shall be maintained at the location where the
15video gaming terminal is operated. Failure to do so is a petty
16offense with a fine not to exceed $100. Any licensed
17establishment, licensed truck stop establishment, licensed
18fraternal establishment, organization licensee location,
19inter-track wagering location licensee location, or licensed
20veterans establishment used for the conduct of gambling games
21in violation of this Act shall be considered a gambling place
22in violation of Section 28-3 of the Criminal Code of 2012.
23Every gambling device found in a licensed establishment,
24licensed truck stop establishment, licensed fraternal
25establishment, organization licensee location, inter-track

 

 

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1wagering location licensee location, or licensed veterans
2establishment operating gambling games in violation of this Act
3shall be subject to seizure, confiscation, and destruction as
4provided in Section 28-5 of the Criminal Code of 2012. Any
5license issued under the Liquor Control Act of 1934 to any
6owner or operator of a licensed establishment, licensed truck
7stop establishment, licensed fraternal establishment,
8organization licensee location, inter-track wagering location
9licensee location, or licensed veterans establishment that
10operates or permits the operation of a video gaming terminal
11within its establishment in violation of this Act shall be
12immediately revoked. No person may own, operate, have in his or
13her possession or custody or under his or her control, or
14permit to be kept in any place under his or her possession or
15control, any device that awards credits and contains a circuit,
16meter, or switch capable of removing and recording the removal
17of credits when the award of credits is dependent upon chance.
18    Nothing in this Section shall be deemed to prohibit the use
19of a game device only if the game device is used in an activity
20that is not gambling under subsection (b) of Section 28-1 of
21the Criminal Code of 2012.
22    A violation of this Section is a Class 4 felony. All
23devices that are owned, operated, or possessed in violation of
24this Section are hereby declared to be public nuisances and
25shall be subject to seizure, confiscation, and destruction as
26provided in Section 28-5 of the Criminal Code of 2012.

 

 

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1    The provisions of this Section do not apply to devices or
2electronic video game terminals licensed pursuant to this Act.
3A video gaming terminal operated for amusement only and bearing
4a valid amusement tax sticker shall not be subject to this
5Section until 30 days after the Board establishes that the
6central communications system is functional.
7    (b) (1) The odds of winning each video game shall be posted
8on or near each video gaming terminal. The manner in which the
9odds are calculated and how they are posted shall be determined
10by the Board by rule.
11    (2) No video gaming terminal licensed under this Act may be
12played except during the legal hours of operation allowed for
13the consumption of alcoholic beverages at the licensed
14establishment, licensed fraternal establishment, or licensed
15veterans establishment. A licensed establishment, licensed
16fraternal establishment, organization licensee, inter-track
17wagering location licensee, or licensed veterans establishment
18that violates this subsection is subject to termination of its
19license by the Board.
20(Source: P.A. 97-1150, eff. 1-25-13; 98-111, eff. 1-1-14.)
 
21    (230 ILCS 40/45)
22    Sec. 45. Issuance of license.
23    (a) The burden is upon each applicant to demonstrate his
24suitability for licensure. Each video gaming terminal
25manufacturer, distributor, supplier, operator, handler,

 

 

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1licensed establishment, licensed truck stop establishment,
2licensed fraternal establishment, organization licensee,
3inter-track wagering location licensee, and licensed veterans
4establishment shall be licensed by the Board. The Board may
5issue or deny a license under this Act to any person pursuant
6to the same criteria set forth in Section 9 of the Riverboat
7Gambling Act.
8    (a-5) The Board shall not grant a license to a person who
9has facilitated, enabled, or participated in the use of
10coin-operated devices for gambling purposes or who is under the
11significant influence or control of such a person. For the
12purposes of this Act, "facilitated, enabled, or participated in
13the use of coin-operated amusement devices for gambling
14purposes" means that the person has been convicted of any
15violation of Article 28 of the Criminal Code of 1961 or the
16Criminal Code of 2012. If there is pending legal action against
17a person for any such violation, then the Board shall delay the
18licensure of that person until the legal action is resolved.
19    (b) Each person seeking and possessing a license as a video
20gaming terminal manufacturer, distributor, supplier, operator,
21handler, licensed establishment, licensed truck stop
22establishment, licensed fraternal establishment, organization
23licensee, inter-track wagering location licensee, or licensed
24veterans establishment shall submit to a background
25investigation conducted by the Board with the assistance of the
26State Police or other law enforcement. To the extent that the

 

 

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1corporate structure of the applicant allows, the background
2investigation shall include any or all of the following as the
3Board deems appropriate or as provided by rule for each
4category of licensure: (i) each beneficiary of a trust, (ii)
5each partner of a partnership, (iii) each member of a limited
6liability company, (iv) each director and officer of a publicly
7or non-publicly held corporation, (v) each stockholder of a
8non-publicly held corporation, (vi) each stockholder of 5% or
9more of a publicly held corporation, or (vii) each stockholder
10of 5% or more in a parent or subsidiary corporation.
11    (c) Each person seeking and possessing a license as a video
12gaming terminal manufacturer, distributor, supplier, operator,
13handler, licensed establishment, licensed truck stop
14establishment, licensed fraternal establishment, organization
15licensee, inter-track wagering location licensee, or licensed
16veterans establishment shall disclose the identity of every
17person, association, trust, corporation, or limited liability
18company having a greater than 1% direct or indirect pecuniary
19interest in the video gaming terminal operation for which the
20license is sought. If the disclosed entity is a trust, the
21application shall disclose the names and addresses of the
22beneficiaries; if a corporation, the names and addresses of all
23stockholders and directors; if a limited liability company, the
24names and addresses of all members; or if a partnership, the
25names and addresses of all partners, both general and limited.
26    (d) No person may be licensed as a video gaming terminal

 

 

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1manufacturer, distributor, supplier, operator, handler,
2licensed establishment, licensed truck stop establishment,
3licensed fraternal establishment, organization licensee,
4inter-track wagering location licensee, or licensed veterans
5establishment 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
18burden of proving his or her qualifications to the satisfaction
19of the Board. The Board may adopt rules to establish additional
20qualifications and requirements to preserve the integrity and
21security of video gaming in this State.
22    (f) A non-refundable application fee shall be paid at the
23time an application for a license is filed with the Board in
24the 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........................$100
5        (7) Licensed establishment, licensed truck stop
6    establishment, licensed fraternal establishment,
7    or licensed veterans establishment...................$100
8    (g) The Board shall establish an annual fee for each
9license not to exceed the following:
10        (1) Manufacturer.........................$10,000
11        (2) Distributor..........................$10,000
12        (3) Terminal operator.....................$5,000
13        (4) Supplier..............................$2,000
14        (5) Technician..............................$100
15        (6) Licensed establishment, licensed truck stop
16    establishment, licensed fraternal establishment,
17    organization licensee, inter-track wagering location
18    licensee, or licensed veterans establishment....$100
19        (7) Video gaming terminal...................$100
20        (8) Terminal Handler............................$100 
21    (h) A terminal operator and a licensed establishment,
22licensed truck stop establishment, licensed fraternal
23establishment, organization licensee, inter-track wagering
24location licensee, or licensed veterans establishment shall
25equally split the fees specified in item (7) of subsection (g).
26(Source: P.A. 100-1152, eff. 12-14-18.)
 

 

 

HB2648- 21 -LRB101 08934 SMS 54024 b

1    (230 ILCS 40/55)
2    Sec. 55. Precondition for licensed location. In all cases
3of application for a licensed location, to operate a video
4gaming terminal, each licensed establishment, licensed
5fraternal establishment, or licensed veterans establishment
6shall possess a valid liquor license issued by the Illinois
7Liquor Control Commission in effect at the time of application
8and at all times thereafter during which a video gaming
9terminal is made available to the public for play at that
10location. Video gaming terminals in a licensed location shall
11be operated only during the same hours of operation generally
12permitted to holders of a license under the Liquor Control Act
13of 1934 within the unit of local government in which they are
14located. Organization licensees and inter-track wagering
15location licensees may operate video gaming terminals if they
16hold an organization license or inter-track wagering location
17license issued by the Illinois Racing Board. A licensed truck
18stop establishment that does not hold a liquor license may
19operate video gaming terminals on a continuous basis. A
20licensed fraternal establishment or licensed veterans
21establishment that does not hold a liquor license may operate
22video gaming terminals if (i) the establishment is located in a
23county with a population between 6,500 and 7,000, based on the
242000 U.S. Census, (ii) the county prohibits by ordinance the
25sale of alcohol, and (iii) the establishment is in a portion of

 

 

HB2648- 22 -LRB101 08934 SMS 54024 b

1the county where the sale of alcohol is prohibited. A licensed
2fraternal establishment or licensed veterans establishment
3that does not hold a liquor license may operate video gaming
4terminals if (i) the establishment is located in a municipality
5within a county with a population between 8,500 and 9,000 based
6on the 2000 U.S. Census and (ii) the municipality or county
7prohibits or limits the sale of alcohol by ordinance in a way
8that prohibits the establishment from selling alcohol.
9(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10;
1097-594, eff. 8-26-11.)
 
11    (230 ILCS 40/58)
12    Sec. 58. Location of terminals. Video gaming terminals
13must be located in an area restricted to persons over 21 years
14of age the entrance to which is within the view of at least one
15employee, who is over 21 years of age, of the establishment in
16which they are located. The placement of video gaming terminals
17in licensed establishments, licensed truck stop
18establishments, licensed fraternal establishments,
19organization licensee locations, inter-track wagering location
20licensee locations, and licensed veterans establishments shall
21be subject to the rules promulgated by the Board pursuant to
22the Illinois Administrative Procedure Act.
23(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
 
24    (230 ILCS 40/60)

 

 

HB2648- 23 -LRB101 08934 SMS 54024 b

1    Sec. 60. Imposition and distribution of tax.
2    (a) A tax of 30% is imposed on net terminal income and
3shall be collected by the Board.
4    (b) Of the tax collected under this Section, five-sixths
5shall be deposited into the Capital Projects Fund and one-sixth
6shall be deposited into the Local Government Video Gaming
7Distributive Fund.
8    (c) Revenues generated from the play of video gaming
9terminals shall be deposited by the terminal operator, who is
10responsible for tax payments, in a specially created, separate
11bank account maintained by the video gaming terminal operator
12to allow for electronic fund transfers of moneys for tax
13payment.
14    (d) Each licensed establishment, licensed truck stop
15establishment, licensed fraternal establishment, organization
16licensee, inter-track wagering location licensee, and licensed
17veterans establishment shall maintain an adequate video gaming
18fund, with the amount to be determined by the Board.
19    (e) The State's percentage of net terminal income shall be
20reported and remitted to the Board within 15 days after the
2115th day of each month and within 15 days after the end of each
22month by the video terminal operator. A video terminal operator
23who falsely reports or fails to report the amount due required
24by this Section is guilty of a Class 4 felony and is subject to
25termination of his or her license by the Board. Each video
26terminal operator shall keep a record of net terminal income in

 

 

HB2648- 24 -LRB101 08934 SMS 54024 b

1such form as the Board may require. All payments not remitted
2when due shall be paid together with a penalty assessment on
3the unpaid balance at a rate of 1.5% per month.
4(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
 
5    Section 10. The Criminal Code of 2012 is amended by
6changing Section 28-1 as follows:
 
7    (720 ILCS 5/28-1)  (from Ch. 38, par. 28-1)
8    Sec. 28-1. Gambling.
9    (a) A person commits gambling when he or she:
10        (1) knowingly plays a game of chance or skill for money
11    or other thing of value, unless excepted in subsection (b)
12    of this Section;
13        (2) knowingly makes a wager upon the result of any
14    game, contest, or any political nomination, appointment or
15    election;
16        (3) knowingly operates, keeps, owns, uses, purchases,
17    exhibits, rents, sells, bargains for the sale or lease of,
18    manufactures or distributes any gambling device;
19        (4) contracts to have or give himself or herself or
20    another the option to buy or sell, or contracts to buy or
21    sell, at a future time, any grain or other commodity
22    whatsoever, or any stock or security of any company, where
23    it is at the time of making such contract intended by both
24    parties thereto that the contract to buy or sell, or the

 

 

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1    option, whenever exercised, or the contract resulting
2    therefrom, shall be settled, not by the receipt or delivery
3    of such property, but by the payment only of differences in
4    prices thereof; however, the issuance, purchase, sale,
5    exercise, endorsement or guarantee, by or through a person
6    registered with the Secretary of State pursuant to Section
7    8 of the Illinois Securities Law of 1953, or by or through
8    a person exempt from such registration under said Section
9    8, of a put, call, or other option to buy or sell
10    securities which have been registered with the Secretary of
11    State or which are exempt from such registration under
12    Section 3 of the Illinois Securities Law of 1953 is not
13    gambling within the meaning of this paragraph (4);
14        (5) knowingly owns or possesses any book, instrument or
15    apparatus by means of which bets or wagers have been, or
16    are, recorded or registered, or knowingly possesses any
17    money which he has received in the course of a bet or
18    wager;
19        (6) knowingly sells pools upon the result of any game
20    or contest of skill or chance, political nomination,
21    appointment or election;
22        (7) knowingly sets up or promotes any lottery or sells,
23    offers to sell or transfers any ticket or share for any
24    lottery;
25        (8) knowingly sets up or promotes any policy game or
26    sells, offers to sell or knowingly possesses or transfers

 

 

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1    any policy ticket, slip, record, document or other similar
2    device;
3        (9) knowingly drafts, prints or publishes any lottery
4    ticket or share, or any policy ticket, slip, record,
5    document or similar device, except for such activity
6    related to lotteries, bingo games and raffles authorized by
7    and conducted in accordance with the laws of Illinois or
8    any other state or foreign government;
9        (10) knowingly advertises any lottery or policy game,
10    except for such activity related to lotteries, bingo games
11    and raffles authorized by and conducted in accordance with
12    the laws of Illinois or any other state;
13        (11) knowingly transmits information as to wagers,
14    betting odds, or changes in betting odds by telephone,
15    telegraph, radio, semaphore or similar means; or knowingly
16    installs or maintains equipment for the transmission or
17    receipt of such information; except that nothing in this
18    subdivision (11) prohibits transmission or receipt of such
19    information for use in news reporting of sporting events or
20    contests; or
21        (12) knowingly establishes, maintains, or operates an
22    Internet site that permits a person to play a game of
23    chance or skill for money or other thing of value by means
24    of the Internet or to make a wager upon the result of any
25    game, contest, political nomination, appointment, or
26    election by means of the Internet. This item (12) does not

 

 

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1    apply to activities referenced in items (6) and (6.1) of
2    subsection (b) of this Section.
3    (b) Participants in any of the following activities shall
4not be convicted of gambling:
5        (1) Agreements to compensate for loss caused by the
6    happening of chance including without limitation contracts
7    of indemnity or guaranty and life or health or accident
8    insurance.
9        (2) Offers of prizes, award or compensation to the
10    actual contestants in any bona fide contest for the
11    determination of skill, speed, strength or endurance or to
12    the owners of animals or vehicles entered in such contest.
13        (3) Pari-mutuel betting as authorized by the law of
14    this State.
15        (4) Manufacture of gambling devices, including the
16    acquisition of essential parts therefor and the assembly
17    thereof, for transportation in interstate or foreign
18    commerce to any place outside this State when such
19    transportation is not prohibited by any applicable Federal
20    law; or the manufacture, distribution, or possession of
21    video gaming terminals, as defined in the Video Gaming Act,
22    by manufacturers, distributors, and terminal operators
23    licensed to do so under the Video Gaming Act.
24        (5) The game commonly known as "bingo", when conducted
25    in accordance with the Bingo License and Tax Act.
26        (6) Lotteries when conducted by the State of Illinois

 

 

HB2648- 28 -LRB101 08934 SMS 54024 b

1    in accordance with the Illinois Lottery Law. This exemption
2    includes any activity conducted by the Department of
3    Revenue to sell lottery tickets pursuant to the provisions
4    of the Illinois Lottery Law and its rules.
5        (6.1) The purchase of lottery tickets through the
6    Internet for a lottery conducted by the State of Illinois
7    under the program established in Section 7.12 of the
8    Illinois Lottery Law.
9        (7) Possession of an antique slot machine that is
10    neither used nor intended to be used in the operation or
11    promotion of any unlawful gambling activity or enterprise.
12    For the purpose of this subparagraph (b)(7), an antique
13    slot machine is one manufactured 25 years ago or earlier.
14        (8) Raffles and poker runs when conducted in accordance
15    with the Raffles and Poker Runs Act.
16        (9) Charitable games when conducted in accordance with
17    the Charitable Games Act.
18        (10) Pull tabs and jar games when conducted under the
19    Illinois Pull Tabs and Jar Games Act.
20        (11) Gambling games conducted on riverboats when
21    authorized by the Riverboat Gambling Act.
22        (12) Video gaming terminal games at a licensed
23    establishment, licensed truck stop establishment, licensed
24    fraternal establishment, organization licensee location,
25    inter-track wagering location licensee location, or
26    licensed veterans establishment when conducted in

 

 

HB2648- 29 -LRB101 08934 SMS 54024 b

1    accordance with the Video Gaming Act.
2        (13) Games of skill or chance where money or other
3    things of value can be won but no payment or purchase is
4    required to participate.
5        (14) Savings promotion raffles authorized under
6    Section 5g of the Illinois Banking Act, Section 7008 of the
7    Savings Bank Act, Section 42.7 of the Illinois Credit Union
8    Act, Section 5136B of the National Bank Act (12 U.S.C.
9    25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C.
10    1463).
11    (c) Sentence.
12    Gambling is a Class A misdemeanor. A second or subsequent
13conviction under subsections (a)(3) through (a)(12), is a Class
144 felony.
15    (d) Circumstantial evidence.
16    In prosecutions under this Section circumstantial evidence
17shall have the same validity and weight as in any criminal
18prosecution.
19(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)

 

 

HB2648- 30 -LRB101 08934 SMS 54024 b

1 INDEX
2 Statutes amended in order of appearance
3    230 ILCS 40/5
4    230 ILCS 40/25
5    230 ILCS 40/30
6    230 ILCS 40/35
7    230 ILCS 40/45
8    230 ILCS 40/55
9    230 ILCS 40/58
10    230 ILCS 40/60
11    720 ILCS 5/28-1from Ch. 38, par. 28-1