Illinois General Assembly - Full Text of HB2877
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Full Text of HB2877  100th General Assembly

HB2877 100TH GENERAL ASSEMBLY

  
  

 


 
100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB2877

 

Introduced , by Rep. Jay Hoffman

 

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 150 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 47% 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 unless the organization licensee and the horsemen associations representing the largest number of owners, trainers, jockeys, or standardbred drivers who race horses at that organization licensee's racing meetings agree to allocate expenses associated with the video gaming terminals. Makes other changes.


LRB100 08549 MJP 18674 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2877LRB100 08549 MJP 18674 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 47% 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 unless
3the organization licensee and the horsemen associations
4representing the largest number of owners, trainers, jockeys,
5or standardbred drivers who race horses at that organization
6licensee's racing meetings agree to allocate expenses
7associated with the video gaming terminals. A video terminal
8operator that violates one or more requirements of this
9subsection is guilty of a Class 4 felony and is subject to
10termination of his or her license 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, organization

 

 

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1licensee location, inter-track wagering location licensee
2location, or licensed fraternal establishment unless the owner
3or agent of the owner of the licensed establishment, licensed
4veterans establishment, licensed truck stop establishment,
5organization licensee, inter-track wagering location licensee,
6or licensed fraternal establishment has entered into a written
7use agreement with the terminal operator for placement of the
8terminals. A copy of the use agreement shall be on file in the
9terminal operator's place of business and available for
10inspection by individuals authorized by the Board. A licensed
11establishment, licensed truck stop establishment, licensed
12veterans establishment, or licensed fraternal establishment
13may operate up to 5 video gaming terminals on its premises at
14any time, except that an organization licensee licensed under
15the Illinois Horse Racing Act of 1975 who held that license in
162016 may operate up to 150 video gaming terminals at its
17organization licensee location at any time and an inter-track
18wagering location licensee may operate up to 5 video gaming
19terminals at the inter-track wagering location licensee's
20location or on the premises of the organization licensee with
21which they are affiliated. An organization licensee may enter
22into a written use agreement with multiple terminal operators
23for placement of terminals on the organization licensee's
24premises.
25    (f) (Blank).
26    (g) Financial interest restrictions. As used in this Act,

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1this Act.
2(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,
3eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
 
4    (230 ILCS 40/30)
5    Sec. 30. Multiple types of licenses prohibited. A video
6gaming terminal manufacturer may not be licensed as a video
7gaming terminal operator or own, manage, or control a licensed
8establishment, licensed truck stop establishment, licensed
9fraternal establishment, organization licensee location,
10inter-track wagering location licensee location, or licensed
11veterans establishment, and shall be licensed to sell only to
12persons having a valid distributor's license or, if the
13manufacturer also holds a valid distributor's license, to sell,
14distribute, lease, or market to persons having a valid terminal
15operator's license. A video gaming terminal distributor may not
16be licensed as a video gaming terminal operator or own, manage,
17or control a licensed establishment, licensed truck stop
18establishment, licensed fraternal establishment, or licensed
19veterans establishment, and shall only contract with a licensed
20terminal operator. A video gaming terminal operator may not be
21licensed as a video gaming terminal manufacturer or distributor
22or own, manage, or control a licensed establishment, licensed
23truck stop establishment, licensed fraternal establishment, or
24licensed veterans establishment, and shall be licensed only to
25contract with licensed distributors and licensed

 

 

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

 

 

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

 

 

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1    A violation of this Section is a Class 4 felony. All
2devices that are owned, operated, or possessed in violation of
3this Section are hereby declared to be public nuisances and
4shall be subject to seizure, confiscation, and destruction as
5provided in Section 28-5 of the Criminal Code of 2012.
6    The provisions of this Section do not apply to devices or
7electronic video game terminals licensed pursuant to this Act.
8A video gaming terminal operated for amusement only and bearing
9a valid amusement tax sticker shall not be subject to this
10Section until 30 days after the Board establishes that the
11central communications system is functional.
12    (b) (1) The odds of winning each video game shall be posted
13on or near each video gaming terminal. The manner in which the
14odds are calculated and how they are posted shall be determined
15by the Board by rule.
16    (2) No video gaming terminal licensed under this Act may be
17played except during the legal hours of operation allowed for
18the consumption of alcoholic beverages at the licensed
19establishment, licensed fraternal establishment, or licensed
20veterans establishment. No video gaming terminal licensed
21under this Act at a location operated by an organization
22licensee or inter-track wagering location licensee may be
23played except during the legal hours of operation allowed in
24the Illinois Horse Racing Act of 1975. A licensed
25establishment, licensed fraternal establishment, organization
26licensee, inter-track wagering location licensee, or licensed

 

 

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1veterans establishment that violates this subsection is
2subject to termination of its license by the Board.
3(Source: P.A. 97-1150, eff. 1-25-13; 98-111, eff. 1-1-14.)
 
4    (230 ILCS 40/45)
5    Sec. 45. Issuance of license.
6    (a) The burden is upon each applicant to demonstrate his
7suitability for licensure. Each video gaming terminal
8manufacturer, distributor, supplier, operator, handler,
9licensed establishment, licensed truck stop establishment,
10licensed fraternal establishment, organization licensee,
11inter-track wagering location licensee, and licensed veterans
12establishment shall be licensed by the Board. The Board may
13issue or deny a license under this Act to any person pursuant
14to the same criteria set forth in Section 9 of the Riverboat
15Gambling Act.
16    (a-5) The Board shall not grant a license to a person who
17has facilitated, enabled, or participated in the use of
18coin-operated devices for gambling purposes or who is under the
19significant influence or control of such a person. For the
20purposes of this Act, "facilitated, enabled, or participated in
21the use of coin-operated amusement devices for gambling
22purposes" means that the person has been convicted of any
23violation of Article 28 of the Criminal Code of 1961 or the
24Criminal Code of 2012. If there is pending legal action against
25a person for any such violation, then the Board shall delay the

 

 

HB2877- 18 -LRB100 08549 MJP 18674 b

1licensure of that person until the legal action is resolved.
2    (b) Each person seeking and possessing a license as a video
3gaming terminal manufacturer, distributor, supplier, operator,
4handler, licensed establishment, licensed truck stop
5establishment, licensed fraternal establishment, organization
6licensee, inter-track wagering location licensee, or licensed
7veterans establishment shall submit to a background
8investigation conducted by the Board with the assistance of the
9State Police or other law enforcement. To the extent that the
10corporate structure of the applicant allows, the background
11investigation shall include any or all of the following as the
12Board deems appropriate or as provided by rule for each
13category of licensure: (i) each beneficiary of a trust, (ii)
14each partner of a partnership, (iii) each member of a limited
15liability company, (iv) each director and officer of a publicly
16or non-publicly held corporation, (v) each stockholder of a
17non-publicly held corporation, (vi) each stockholder of 5% or
18more of a publicly held corporation, or (vii) each stockholder
19of 5% or more in a parent or subsidiary corporation.
20    (c) Each person seeking and possessing a license as a video
21gaming terminal manufacturer, distributor, supplier, operator,
22handler, licensed establishment, licensed truck stop
23establishment, licensed fraternal establishment, organization
24licensee, inter-track wagering location licensee, or licensed
25veterans establishment shall disclose the identity of every
26person, association, trust, corporation, or limited liability

 

 

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1company having a greater than 1% direct or indirect pecuniary
2interest in the video gaming terminal operation for which the
3license is sought. If the disclosed entity is a trust, the
4application shall disclose the names and addresses of the
5beneficiaries; if a corporation, the names and addresses of all
6stockholders and directors; if a limited liability company, the
7names and addresses of all members; or if a partnership, the
8names and addresses of all partners, both general and limited.
9    (d) No person may be licensed as a video gaming terminal
10manufacturer, distributor, supplier, operator, handler,
11licensed establishment, licensed truck stop establishment,
12licensed fraternal establishment, organization licensee,
13inter-track wagering location licensee, or licensed veterans
14establishment if that person has been found by the Board to:
15        (1) have a background, including a criminal record,
16    reputation, habits, social or business associations, or
17    prior activities that pose a threat to the public interests
18    of the State or to the security and integrity of video
19    gaming;
20        (2) create or enhance the dangers of unsuitable,
21    unfair, or illegal practices, methods, and activities in
22    the conduct of video gaming; or
23        (3) present questionable business practices and
24    financial arrangements incidental to the conduct of video
25    gaming activities.
26    (e) Any applicant for any license under this Act has the

 

 

HB2877- 20 -LRB100 08549 MJP 18674 b

1burden of proving his or her qualifications to the satisfaction
2of the Board. The Board may adopt rules to establish additional
3qualifications and requirements to preserve the integrity and
4security of video gaming in this State.
5    (f) A non-refundable application fee shall be paid at the
6time an application for a license is filed with the Board in
7the following amounts:
8        (1) Manufacturer..........................$5,000
9        (2) Distributor...........................$5,000
10        (3) Terminal operator.....................$5,000
11        (4) Supplier..............................$2,500
12        (5) Technician..............................$100
13        (6) Terminal Handler..............................$50
14    (g) The Board shall establish an annual fee for each
15license not to exceed the following:
16        (1) Manufacturer.........................$10,000
17        (2) Distributor..........................$10,000
18        (3) Terminal operator.....................$5,000
19        (4) Supplier..............................$2,000
20        (5) Technician..............................$100
21        (6) Licensed establishment, licensed truck stop
22    establishment, licensed fraternal establishment,
23    organization licensee, inter-track wagering location
24    licensee, or licensed veterans establishment....$100
25        (7) Video gaming terminal...................$100
26        (8) Terminal Handler..............................$50

 

 

HB2877- 21 -LRB100 08549 MJP 18674 b

1    (h) A terminal operator and a licensed establishment,
2licensed truck stop establishment, licensed fraternal
3establishment, organization licensee, inter-track wagering
4location licensee, or licensed veterans establishment shall
5equally split the fees specified in item (7) of subsection (g).
6(Source: P.A. 97-1150, eff. 1-25-13; 98-31, eff. 6-24-13;
798-587, eff. 8-27-13; 98-756, eff. 7-16-14.)
 
8    (230 ILCS 40/55)
9    Sec. 55. Precondition for licensed location. In all cases
10of application for a licensed location, to operate a video
11gaming terminal, each licensed establishment, licensed
12fraternal establishment, or licensed veterans establishment
13shall possess a valid liquor license issued by the Illinois
14Liquor Control Commission in effect at the time of application
15and at all times thereafter during which a video gaming
16terminal is made available to the public for play at that
17location. Video gaming terminals in a licensed location shall
18be operated only during the same hours of operation generally
19permitted to holders of a license under the Liquor Control Act
20of 1934 within the unit of local government in which they are
21located. Organization licensees and inter-track wagering
22location licensees may operate video gaming terminals if they
23hold an organization license or inter-track wagering location
24license issued by the Illinois Racing Board. A licensed truck
25stop establishment that does not hold a liquor license may

 

 

HB2877- 22 -LRB100 08549 MJP 18674 b

1operate video gaming terminals on a continuous basis. A
2licensed fraternal establishment or licensed veterans
3establishment that does not hold a liquor license may operate
4video gaming terminals if (i) the establishment is located in a
5county with a population between 6,500 and 7,000, based on the
62000 U.S. Census, (ii) the county prohibits by ordinance the
7sale of alcohol, and (iii) the establishment is in a portion of
8the county where the sale of alcohol is prohibited. A licensed
9fraternal establishment or licensed veterans establishment
10that does not hold a liquor license may operate video gaming
11terminals if (i) the establishment is located in a municipality
12within a county with a population between 8,500 and 9,000 based
13on the 2000 U.S. Census and (ii) the municipality or county
14prohibits or limits the sale of alcohol by ordinance in a way
15that prohibits the establishment from selling alcohol.
16(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10;
1797-594, eff. 8-26-11.)
 
18    (230 ILCS 40/58)
19    Sec. 58. Location of terminals. Video gaming terminals
20must be located in an area restricted to persons over 21 years
21of age the entrance to which is within the view of at least one
22employee, who is over 21 years of age, of the establishment in
23which they are located. The placement of video gaming terminals
24in licensed establishments, licensed truck stop
25establishments, licensed fraternal establishments,

 

 

HB2877- 23 -LRB100 08549 MJP 18674 b

1organization licensee locations, inter-track wagering location
2licensee locations, and licensed veterans establishments shall
3be subject to the rules promulgated by the Board pursuant to
4the Illinois Administrative Procedure Act.
5(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
 
6    (230 ILCS 40/60)
7    Sec. 60. Imposition and distribution of tax.
8    (a) A tax of 30% is imposed on net terminal income and
9shall be collected by the Board.
10    (b) Of the tax collected under this Section, five-sixths
11shall be deposited into the Capital Projects Fund and one-sixth
12shall be deposited into the Local Government Video Gaming
13Distributive Fund.
14    (c) Revenues generated from the play of video gaming
15terminals shall be deposited by the terminal operator, who is
16responsible for tax payments, in a specially created, separate
17bank account maintained by the video gaming terminal operator
18to allow for electronic fund transfers of moneys for tax
19payment.
20    (d) Each licensed establishment, licensed truck stop
21establishment, licensed fraternal establishment, organization
22licensee, inter-track wagering location licensee, and licensed
23veterans establishment shall maintain an adequate video gaming
24fund, with the amount to be determined by the Board.
25    (e) The State's percentage of net terminal income shall be

 

 

HB2877- 24 -LRB100 08549 MJP 18674 b

1reported and remitted to the Board within 15 days after the
215th day of each month and within 15 days after the end of each
3month by the video terminal operator. A video terminal operator
4who falsely reports or fails to report the amount due required
5by this Section is guilty of a Class 4 felony and is subject to
6termination of his or her license by the Board. Each video
7terminal operator shall keep a record of net terminal income in
8such form as the Board may require. All payments not remitted
9when due shall be paid together with a penalty assessment on
10the unpaid balance at a rate of 1.5% per month.
11(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
 
12    Section 10. The Criminal Code of 2012 is amended by
13changing Section 28-1 as follows:
 
14    (720 ILCS 5/28-1)  (from Ch. 38, par. 28-1)
15    Sec. 28-1. Gambling.
16    (a) A person commits gambling when he or she:
17        (1) knowingly plays a game of chance or skill for money
18    or other thing of value, unless excepted in subsection (b)
19    of this Section;
20        (2) knowingly makes a wager upon the result of any
21    game, contest, or any political nomination, appointment or
22    election;
23        (3) knowingly operates, keeps, owns, uses, purchases,
24    exhibits, rents, sells, bargains for the sale or lease of,

 

 

HB2877- 25 -LRB100 08549 MJP 18674 b

1    manufactures or distributes any gambling device;
2        (4) contracts to have or give himself or herself or
3    another the option to buy or sell, or contracts to buy or
4    sell, at a future time, any grain or other commodity
5    whatsoever, or any stock or security of any company, where
6    it is at the time of making such contract intended by both
7    parties thereto that the contract to buy or sell, or the
8    option, whenever exercised, or the contract resulting
9    therefrom, shall be settled, not by the receipt or delivery
10    of such property, but by the payment only of differences in
11    prices thereof; however, the issuance, purchase, sale,
12    exercise, endorsement or guarantee, by or through a person
13    registered with the Secretary of State pursuant to Section
14    8 of the Illinois Securities Law of 1953, or by or through
15    a person exempt from such registration under said Section
16    8, of a put, call, or other option to buy or sell
17    securities which have been registered with the Secretary of
18    State or which are exempt from such registration under
19    Section 3 of the Illinois Securities Law of 1953 is not
20    gambling within the meaning of this paragraph (4);
21        (5) knowingly owns or possesses any book, instrument or
22    apparatus by means of which bets or wagers have been, or
23    are, recorded or registered, or knowingly possesses any
24    money which he has received in the course of a bet or
25    wager;
26        (6) knowingly sells pools upon the result of any game

 

 

HB2877- 26 -LRB100 08549 MJP 18674 b

1    or contest of skill or chance, political nomination,
2    appointment or election;
3        (7) knowingly sets up or promotes any lottery or sells,
4    offers to sell or transfers any ticket or share for any
5    lottery;
6        (8) knowingly sets up or promotes any policy game or
7    sells, offers to sell or knowingly possesses or transfers
8    any policy ticket, slip, record, document or other similar
9    device;
10        (9) knowingly drafts, prints or publishes any lottery
11    ticket or share, or any policy ticket, slip, record,
12    document or similar device, except for such activity
13    related to lotteries, bingo games and raffles authorized by
14    and conducted in accordance with the laws of Illinois or
15    any other state or foreign government;
16        (10) knowingly advertises any lottery or policy game,
17    except for such activity related to lotteries, bingo games
18    and raffles authorized by and conducted in accordance with
19    the laws of Illinois or any other state;
20        (11) knowingly transmits information as to wagers,
21    betting odds, or changes in betting odds by telephone,
22    telegraph, radio, semaphore or similar means; or knowingly
23    installs or maintains equipment for the transmission or
24    receipt of such information; except that nothing in this
25    subdivision (11) prohibits transmission or receipt of such
26    information for use in news reporting of sporting events or

 

 

HB2877- 27 -LRB100 08549 MJP 18674 b

1    contests; or
2        (12) knowingly establishes, maintains, or operates an
3    Internet site that permits a person to play a game of
4    chance or skill for money or other thing of value by means
5    of the Internet or to make a wager upon the result of any
6    game, contest, political nomination, appointment, or
7    election by means of the Internet. This item (12) does not
8    apply to activities referenced in items (6) and (6.1) of
9    subsection (b) of this Section.
10    (b) Participants in any of the following activities shall
11not be convicted of gambling:
12        (1) Agreements to compensate for loss caused by the
13    happening of chance including without limitation contracts
14    of indemnity or guaranty and life or health or accident
15    insurance.
16        (2) Offers of prizes, award or compensation to the
17    actual contestants in any bona fide contest for the
18    determination of skill, speed, strength or endurance or to
19    the owners of animals or vehicles entered in such contest.
20        (3) Pari-mutuel betting as authorized by the law of
21    this State.
22        (4) Manufacture of gambling devices, including the
23    acquisition of essential parts therefor and the assembly
24    thereof, for transportation in interstate or foreign
25    commerce to any place outside this State when such
26    transportation is not prohibited by any applicable Federal

 

 

HB2877- 28 -LRB100 08549 MJP 18674 b

1    law; or the manufacture, distribution, or possession of
2    video gaming terminals, as defined in the Video Gaming Act,
3    by manufacturers, distributors, and terminal operators
4    licensed to do so under the Video Gaming Act.
5        (5) The game commonly known as "bingo", when conducted
6    in accordance with the Bingo License and Tax Act.
7        (6) Lotteries when conducted by the State of Illinois
8    in accordance with the Illinois Lottery Law. This exemption
9    includes any activity conducted by the Department of
10    Revenue to sell lottery tickets pursuant to the provisions
11    of the Illinois Lottery Law and its rules.
12        (6.1) The purchase of lottery tickets through the
13    Internet for a lottery conducted by the State of Illinois
14    under the program established in Section 7.12 of the
15    Illinois Lottery Law.
16        (7) Possession of an antique slot machine that is
17    neither used nor intended to be used in the operation or
18    promotion of any unlawful gambling activity or enterprise.
19    For the purpose of this subparagraph (b)(7), an antique
20    slot machine is one manufactured 25 years ago or earlier.
21        (8) Raffles and poker runs when conducted in accordance
22    with the Raffles and Poker Runs Act.
23        (9) Charitable games when conducted in accordance with
24    the Charitable Games Act.
25        (10) Pull tabs and jar games when conducted under the
26    Illinois Pull Tabs and Jar Games Act.

 

 

HB2877- 29 -LRB100 08549 MJP 18674 b

1        (11) Gambling games conducted on riverboats when
2    authorized by the Riverboat Gambling Act.
3        (12) Video gaming terminal games at a licensed
4    establishment, licensed truck stop establishment, licensed
5    fraternal establishment, organization licensee location,
6    inter-track wagering location licensee location, or
7    licensed veterans establishment when conducted in
8    accordance with the Video Gaming Act.
9        (13) Games of skill or chance where money or other
10    things of value can be won but no payment or purchase is
11    required to participate.
12        (14) Savings promotion raffles authorized under
13    Section 5g of the Illinois Banking Act, Section 7008 of the
14    Savings Bank Act, Section 42.7 of the Illinois Credit Union
15    Act, Section 5136B of the National Bank Act (12 U.S.C.
16    25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C.
17    1463).
18    (c) Sentence.
19    Gambling is a Class A misdemeanor. A second or subsequent
20conviction under subsections (a)(3) through (a)(12), is a Class
214 felony.
22    (d) Circumstantial evidence.
23    In prosecutions under this Section circumstantial evidence
24shall have the same validity and weight as in any criminal
25prosecution.
26(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)

 

 

HB2877- 30 -LRB100 08549 MJP 18674 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