Rep. Jay Hoffman

Filed: 5/26/2017

 

 


 

 


 
10000HB2877ham002LRB100 08549 MJP 27080 a

1
AMENDMENT TO HOUSE BILL 2877

2    AMENDMENT NO. ______. Amend House Bill 2877 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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

 

 

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1manufacturer, distributor, supplier, technician, or terminal
2operator under this Act.
3    "Manufacturer" means an individual, partnership,
4corporation, or limited liability company that is licensed
5under this Act and that manufactures or assembles video gaming
6terminals.
7    "Supplier" means an individual, partnership, corporation,
8or limited liability company that is licensed under this Act to
9supply major components or parts to video gaming terminals to
10licensed terminal operators.
11    "Net terminal income" means money put into a video gaming
12terminal minus credits paid out to players.
13    "Video gaming terminal" means any electronic video game
14machine that, upon insertion of cash, electronic cards or
15vouchers, or any combination thereof, is available to play or
16simulate the play of a video game, including but not limited to
17video poker, line up, and blackjack, as authorized by the Board
18utilizing a video display and microprocessors in which the
19player may receive free games or credits that can be redeemed
20for cash. The term does not include a machine that directly
21dispenses coins, cash, or tokens or is for amusement purposes
22only.
23    "Licensed establishment" means any licensed retail
24establishment where alcoholic liquor is drawn, poured, mixed,
25or otherwise served for consumption on the premises, whether
26the establishment operates on a nonprofit or for-profit basis.

 

 

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1"Licensed establishment" includes any such establishment that
2has a contractual relationship with an inter-track wagering
3location licensee licensed under the Illinois Horse Racing Act
4of 1975, provided any contractual relationship shall not
5include any transfer or offer of revenue from the operation of
6video gaming under this Act to any licensee licensed under the
7Illinois Horse Racing Act of 1975. Provided, however, that the
8licensed establishment that has such a contractual
9relationship with an inter-track wagering location licensee
10may not, itself, be (i) an inter-track wagering location
11licensee, (ii) the corporate parent or subsidiary of any
12licensee licensed under the Illinois Horse Racing Act of 1975,
13or (iii) the corporate subsidiary of a corporation that is also
14the corporate parent or subsidiary of any licensee licensed
15under the Illinois Horse Racing Act of 1975. "Licensed
16establishment" does not include a facility operated by an
17organization licensee, an inter-track wagering licensee, or an
18inter-track wagering location licensee licensed under the
19Illinois Horse Racing Act of 1975 or a riverboat licensed under
20the Riverboat Gambling Act, except as provided in this
21paragraph. The changes made to this definition by Public Act
2298-587 are declarative of existing law.
23    "Licensed fraternal establishment" means the location
24where a qualified fraternal organization that derives its
25charter from a national fraternal organization regularly
26meets.

 

 

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1    "Licensed veterans establishment" means the location where
2a qualified veterans organization that derives its charter from
3a national veterans organization regularly meets.
4    "Licensed truck stop establishment" means a facility (i)
5that is at least a 3-acre facility with a convenience store,
6(ii) with separate diesel islands for fueling commercial motor
7vehicles, (iii) that sells at retail more than 10,000 gallons
8of diesel or biodiesel fuel per month, and (iv) with parking
9spaces for commercial motor vehicles. "Commercial motor
10vehicles" has the same meaning as defined in Section 18b-101 of
11the Illinois Vehicle Code. The requirement of item (iii) of
12this paragraph may be met by showing that estimated future
13sales or past sales average at least 10,000 gallons per month.
14    "Organization licensee" means an organization licensee as
15defined in the Illinois Horse Racing Act of 1975.
16    "Inter-track wagering location licensee" means an
17inter-track wagering location licensee as defined in the
18Illinois Horse Racing Act of 1975.
19(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13;
2098-582, eff. 8-27-13; 98-587, eff. 8-27-13; 98-756, eff.
217-16-14.)
 
22    (230 ILCS 40/25)
23    Sec. 25. Restriction of licensees.
24    (a) Manufacturer. A person may not be licensed as a
25manufacturer of a video gaming terminal in Illinois unless the

 

 

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

 

 

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1shall be paid to the licensed establishment, licensed truck
2stop establishment, licensed fraternal establishment,
3organization licensee location, inter-track wagering location
4licensee location, or licensed veterans establishment,
5notwithstanding any agreement to the contrary. Organization
6licensees and inter-track wagering location licensees shall
7deposit 50% of their share of the net terminal income into the
8horsemen purse accounts associated with their respective race
9track. At a race track located in Cook County that races
10multiple breeds, the share of net terminal income deposited
11into the horsemen purse account shall be distributed equally
12among the breeds unless the organization licensee and the
13horsemen associations representing the largest number of
14owners, trainers, jockeys, or standardbred drivers who race
15horses at that organization licensee's racing meetings agree to
16a different distribution. A video terminal operator that
17violates one or more requirements of this subsection is guilty
18of a Class 4 felony and is subject to termination of his or her
19license by the Board.
20    (d) Licensed technician. A person may not service,
21maintain, or repair a video gaming terminal in this State
22unless he or she (1) has a valid technician's license issued
23under this Act, (2) is a terminal operator, or (3) is employed
24by a terminal operator, distributor, or manufacturer.
25    (d-5) Licensed terminal handler. No person, including, but
26not limited to, an employee or independent contractor working

 

 

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1for a manufacturer, distributor, supplier, technician, or
2terminal operator licensed pursuant to this Act, shall have
3possession or control of a video gaming terminal, or access to
4the inner workings of a video gaming terminal, unless that
5person possesses a valid terminal handler's license issued
6under this Act.
7    (e) Licensed establishment. No video gaming terminal may be
8placed in any licensed establishment, licensed veterans
9establishment, licensed truck stop establishment, organization
10licensee location, inter-track wagering location licensee
11location, or licensed fraternal establishment unless the owner
12or agent of the owner of the licensed establishment, licensed
13veterans establishment, licensed truck stop establishment,
14organization licensee, inter-track wagering location licensee,
15or licensed fraternal establishment has entered into a written
16use agreement with the terminal operator for placement of the
17terminals. A copy of the use agreement shall be on file in the
18terminal operator's place of business and available for
19inspection by individuals authorized by the Board. A licensed
20establishment, licensed truck stop establishment, licensed
21veterans establishment, or licensed fraternal establishment
22may operate up to 5 video gaming terminals on its premises at
23any time, except that an organization licensee licensed under
24the Illinois Horse Racing Act of 1975 who held that license in
252016 may operate up to 150 video gaming terminals at its
26organization licensee location at any time and an inter-track

 

 

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1wagering location licensee may operate up to 5 video gaming
2terminals at the inter-track wagering location licensee's
3location or on the premises of the organization licensee with
4which they are affiliated. An organization licensee may enter
5into a written use agreement with multiple terminal operators
6for placement of terminals on the organization licensee's
7premises.
8    (f) (Blank).
9    (g) Financial interest restrictions. As used in this Act,
10"substantial interest" in a partnership, a corporation, an
11organization, an association, a business, or a limited
12liability company means:
13        (A) When, with respect to a sole proprietorship, an
14    individual or his or her spouse owns, operates, manages, or
15    conducts, directly or indirectly, the organization,
16    association, or business, or any part thereof; or
17        (B) When, with respect to a partnership, the individual
18    or his or her spouse shares in any of the profits, or
19    potential profits, of the partnership activities; or
20        (C) When, with respect to a corporation, an individual
21    or his or her spouse is an officer or director, or the
22    individual or his or her spouse is a holder, directly or
23    beneficially, of 5% or more of any class of stock of the
24    corporation; or
25        (D) When, with respect to an organization not covered
26    in (A), (B) or (C) above, an individual or his or her

 

 

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1    spouse is an officer or manages the business affairs, or
2    the individual or his or her spouse is the owner of or
3    otherwise controls 10% or more of the assets of the
4    organization; or
5        (E) When an individual or his or her spouse furnishes
6    5% or more of the capital, whether in cash, goods, or
7    services, for the operation of any business, association,
8    or organization during any calendar year; or
9        (F) When, with respect to a limited liability company,
10    an individual or his or her spouse is a member, or the
11    individual or his or her spouse is a holder, directly or
12    beneficially, of 5% or more of the membership interest of
13    the limited liability company.
14    For purposes of this subsection (g), "individual" includes
15all individuals or their spouses whose combined interest would
16qualify as a substantial interest under this subsection (g) and
17whose activities with respect to an organization, association,
18or business are so closely aligned or coordinated as to
19constitute the activities of a single entity.
20    (h) Location restriction. A licensed establishment,
21licensed truck stop establishment, licensed fraternal
22establishment, organization licensee location, inter-track
23wagering location licensee location, or licensed veterans
24establishment that is (i) located within 1,000 feet of a
25facility operated by an organization licensee licensed under
26the Illinois Horse Racing Act of 1975 or the home dock of a

 

 

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

 

 

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1operated by an organization licensee licensed under the
2Illinois Horse Racing Act of 1975 or the home dock of a
3riverboat licensed under the Riverboat Gambling Act. The Board
4shall not grant such waiver if there is any common ownership or
5control, shared business activity, or contractual arrangement
6of any type between the establishment and the organization
7licensee or owners licensee of a riverboat. The Board shall
8adopt rules to implement the provisions 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    (230 ILCS 40/30)
14    Sec. 30. Multiple types of licenses prohibited. A video
15gaming terminal manufacturer may not be licensed as a video
16gaming terminal operator or own, manage, or control a licensed
17establishment, licensed truck stop establishment, licensed
18fraternal establishment, organization licensee location,
19inter-track wagering location licensee location, or licensed
20veterans establishment, and shall be licensed to sell only to
21persons having a valid distributor's license or, if the
22manufacturer also holds a valid distributor's license, to sell,
23distribute, lease, or market to persons having a valid terminal
24operator's license. A video gaming terminal distributor may not
25be licensed as a video gaming terminal operator or own, manage,

 

 

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1or control a licensed establishment, licensed truck stop
2establishment, licensed fraternal establishment, or licensed
3veterans establishment, and shall only contract with a licensed
4terminal operator. A video gaming terminal operator may not be
5licensed as a video gaming terminal manufacturer or distributor
6or own, manage, or control a licensed establishment, licensed
7truck stop establishment, licensed fraternal establishment, or
8licensed veterans establishment, and shall be licensed only to
9contract with licensed distributors and licensed
10establishments, licensed truck stop establishments, licensed
11fraternal establishments, and licensed veterans
12establishments. An owner or manager of a licensed
13establishment, licensed truck stop establishment, licensed
14fraternal establishment, or licensed veterans establishment
15may not be licensed as a video gaming terminal manufacturer,
16distributor, or operator, and shall only contract with a
17licensed operator to place and service this equipment.
18(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.)
 
19    (230 ILCS 40/35)
20    Sec. 35. Display of license; confiscation; violation as
21felony.
22    (a) Each video gaming terminal shall be licensed by the
23Board before placement or operation on the premises of a
24licensed establishment, licensed truck stop establishment,
25licensed fraternal establishment, organization licensee

 

 

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1location, inter-track wagering location licensee location, or
2licensed veterans establishment. The license of each video
3gaming terminal shall be maintained at the location where the
4video gaming terminal is operated. Failure to do so is a petty
5offense with a fine not to exceed $100. Any licensed
6establishment, licensed truck stop establishment, licensed
7fraternal establishment, organization licensee location,
8inter-track wagering location licensee location, or licensed
9veterans establishment used for the conduct of gambling games
10in violation of this Act shall be considered a gambling place
11in violation of Section 28-3 of the Criminal Code of 2012.
12Every gambling device found in a licensed establishment,
13licensed truck stop establishment, licensed fraternal
14establishment, organization licensee location, inter-track
15wagering location licensee location, or licensed veterans
16establishment operating gambling games in violation of this Act
17shall be subject to seizure, confiscation, and destruction as
18provided in Section 28-5 of the Criminal Code of 2012. Any
19license issued under the Liquor Control Act of 1934 to any
20owner or operator of a licensed establishment, licensed truck
21stop establishment, licensed fraternal establishment,
22organization licensee location, inter-track wagering location
23licensee location, or licensed veterans establishment that
24operates or permits the operation of a video gaming terminal
25within its establishment in violation of this Act shall be
26immediately revoked. No person may own, operate, have in his or

 

 

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1her possession or custody or under his or her control, or
2permit to be kept in any place under his or her possession or
3control, any device that awards credits and contains a circuit,
4meter, or switch capable of removing and recording the removal
5of credits when the award of credits is dependent upon chance.
6    Nothing in this Section shall be deemed to prohibit the use
7of a game device only if the game device is used in an activity
8that is not gambling under subsection (b) of Section 28-1 of
9the Criminal Code of 2012.
10    A violation of this Section is a Class 4 felony. All
11devices that are owned, operated, or possessed in violation of
12this Section are hereby declared to be public nuisances and
13shall be subject to seizure, confiscation, and destruction as
14provided in Section 28-5 of the Criminal Code of 2012.
15    The provisions of this Section do not apply to devices or
16electronic video game terminals licensed pursuant to this Act.
17A video gaming terminal operated for amusement only and bearing
18a valid amusement tax sticker shall not be subject to this
19Section until 30 days after the Board establishes that the
20central communications system is functional.
21    (b) (1) The odds of winning each video game shall be posted
22on or near each video gaming terminal. The manner in which the
23odds are calculated and how they are posted shall be determined
24by the Board by rule.
25    (2) No video gaming terminal licensed under this Act may be
26played except during the legal hours of operation allowed for

 

 

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1the consumption of alcoholic beverages at the licensed
2establishment, licensed fraternal establishment, or licensed
3veterans establishment. No video gaming terminal licensed
4under this Act at a location operated by an organization
5licensee or inter-track wagering location licensee may be
6played except during the legal hours of operation allowed in
7the Illinois Horse Racing Act of 1975. A licensed
8establishment, licensed fraternal establishment, organization
9licensee, inter-track wagering location licensee, or licensed
10veterans establishment that violates this subsection is
11subject to termination of its license by the Board.
12(Source: P.A. 97-1150, eff. 1-25-13; 98-111, eff. 1-1-14.)
 
13    (230 ILCS 40/45)
14    Sec. 45. Issuance of license.
15    (a) The burden is upon each applicant to demonstrate his
16suitability for licensure. Each video gaming terminal
17manufacturer, distributor, supplier, operator, handler,
18licensed establishment, licensed truck stop establishment,
19licensed fraternal establishment, organization licensee,
20inter-track wagering location licensee, and licensed veterans
21establishment shall be licensed by the Board. The Board may
22issue or deny a license under this Act to any person pursuant
23to the same criteria set forth in Section 9 of the Riverboat
24Gambling Act.
25    (a-5) The Board shall not grant a license to a person who

 

 

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1has facilitated, enabled, or participated in the use of
2coin-operated devices for gambling purposes or who is under the
3significant influence or control of such a person. For the
4purposes of this Act, "facilitated, enabled, or participated in
5the use of coin-operated amusement devices for gambling
6purposes" means that the person has been convicted of any
7violation of Article 28 of the Criminal Code of 1961 or the
8Criminal Code of 2012. If there is pending legal action against
9a person for any such violation, then the Board shall delay the
10licensure of that person until the legal action is resolved.
11    (b) 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 submit to a background
17investigation conducted by the Board with the assistance of the
18State Police or other law enforcement. To the extent that the
19corporate structure of the applicant allows, the background
20investigation shall include any or all of the following as the
21Board deems appropriate or as provided by rule for each
22category of licensure: (i) each beneficiary of a trust, (ii)
23each partner of a partnership, (iii) each member of a limited
24liability company, (iv) each director and officer of a publicly
25or non-publicly held corporation, (v) each stockholder of a
26non-publicly held corporation, (vi) each stockholder of 5% or

 

 

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1more of a publicly held corporation, or (vii) each stockholder
2of 5% or more in a parent or subsidiary corporation.
3    (c) Each person seeking and possessing a license as a video
4gaming terminal manufacturer, distributor, supplier, operator,
5handler, licensed establishment, licensed truck stop
6establishment, licensed fraternal establishment, organization
7licensee, inter-track wagering location licensee, or licensed
8veterans establishment shall disclose the identity of every
9person, association, trust, corporation, or limited liability
10company having a greater than 1% direct or indirect pecuniary
11interest in the video gaming terminal operation for which the
12license is sought. If the disclosed entity is a trust, the
13application shall disclose the names and addresses of the
14beneficiaries; if a corporation, the names and addresses of all
15stockholders and directors; if a limited liability company, the
16names and addresses of all members; or if a partnership, the
17names and addresses of all partners, both general and limited.
18    (d) No person may be licensed as a video gaming terminal
19manufacturer, distributor, supplier, operator, handler,
20licensed establishment, licensed truck stop establishment,
21licensed fraternal establishment, organization licensee,
22inter-track wagering location licensee, or licensed veterans
23establishment if that person has been found by the Board to:
24        (1) have a background, including a criminal record,
25    reputation, habits, social or business associations, or
26    prior activities that pose a threat to the public interests

 

 

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1    of the State or to the security and integrity of video
2    gaming;
3        (2) create or enhance the dangers of unsuitable,
4    unfair, or illegal practices, methods, and activities in
5    the conduct of video gaming; or
6        (3) present questionable business practices and
7    financial arrangements incidental to the conduct of video
8    gaming activities.
9    (e) Any applicant for any license under this Act has the
10burden of proving his or her qualifications to the satisfaction
11of the Board. The Board may adopt rules to establish additional
12qualifications and requirements to preserve the integrity and
13security of video gaming in this State.
14    (f) A non-refundable application fee shall be paid at the
15time an application for a license is filed with the Board in
16the following amounts:
17        (1) Manufacturer..........................$5,000
18        (2) Distributor...........................$5,000
19        (3) Terminal operator.....................$5,000
20        (4) Supplier..............................$2,500
21        (5) Technician..............................$100
22        (6) Terminal Handler..............................$50
23    (g) The Board shall establish an annual fee for each
24license not to exceed the following:
25        (1) Manufacturer.........................$10,000
26        (2) Distributor..........................$10,000

 

 

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1        (3) Terminal operator.....................$5,000
2        (4) Supplier..............................$2,000
3        (5) Technician..............................$100
4        (6) Licensed establishment, licensed truck stop
5    establishment, licensed fraternal establishment,
6    organization licensee, inter-track wagering location
7    licensee, or licensed veterans establishment....$100
8        (7) Video gaming terminal...................$100
9        (8) Terminal Handler..............................$50
10    (h) A terminal operator and a licensed establishment,
11licensed truck stop establishment, licensed fraternal
12establishment, organization licensee, inter-track wagering
13location licensee, or licensed veterans establishment shall
14equally split the fees specified in item (7) of subsection (g).
15(Source: P.A. 97-1150, eff. 1-25-13; 98-31, eff. 6-24-13;
1698-587, eff. 8-27-13; 98-756, eff. 7-16-14.)
 
17    (230 ILCS 40/55)
18    Sec. 55. Precondition for licensed location. In all cases
19of application for a licensed location, to operate a video
20gaming terminal, each licensed establishment, licensed
21fraternal establishment, or licensed veterans establishment
22shall possess a valid liquor license issued by the Illinois
23Liquor Control Commission in effect at the time of application
24and at all times thereafter during which a video gaming
25terminal is made available to the public for play at that

 

 

10000HB2877ham002- 22 -LRB100 08549 MJP 27080 a

1location. Video gaming terminals in a licensed location shall
2be operated only during the same hours of operation generally
3permitted to holders of a license under the Liquor Control Act
4of 1934 within the unit of local government in which they are
5located. Organization licensees and inter-track wagering
6location licensees may operate video gaming terminals if they
7hold an organization license or inter-track wagering location
8license issued by the Illinois Racing Board. A licensed truck
9stop establishment that does not hold a liquor license may
10operate video gaming terminals on a continuous basis. A
11licensed fraternal establishment or licensed veterans
12establishment that does not hold a liquor license may operate
13video gaming terminals if (i) the establishment is located in a
14county with a population between 6,500 and 7,000, based on the
152000 U.S. Census, (ii) the county prohibits by ordinance the
16sale of alcohol, and (iii) the establishment is in a portion of
17the county where the sale of alcohol is prohibited. A licensed
18fraternal establishment or licensed veterans establishment
19that does not hold a liquor license may operate video gaming
20terminals if (i) the establishment is located in a municipality
21within a county with a population between 8,500 and 9,000 based
22on the 2000 U.S. Census and (ii) the municipality or county
23prohibits or limits the sale of alcohol by ordinance in a way
24that prohibits the establishment from selling alcohol.
25(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10;
2697-594, eff. 8-26-11.)
 

 

 

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1    (230 ILCS 40/58)
2    Sec. 58. Location of terminals. Video gaming terminals
3must be located in an area restricted to persons over 21 years
4of age the entrance to which is within the view of at least one
5employee, who is over 21 years of age, of the establishment in
6which they are located. The placement of video gaming terminals
7in licensed establishments, licensed truck stop
8establishments, licensed fraternal establishments,
9organization licensee locations, inter-track wagering location
10licensee locations, and licensed veterans establishments shall
11be subject to the rules promulgated by the Board pursuant to
12the Illinois Administrative Procedure Act.
13(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
 
14    (230 ILCS 40/60)
15    Sec. 60. Imposition and distribution of tax.
16    (a) A tax of 30% is imposed on net terminal income and
17shall be collected by the Board.
18    (b) Of the tax collected under this Section, five-sixths
19shall be deposited into the Capital Projects Fund and one-sixth
20shall be deposited into the Local Government Video Gaming
21Distributive Fund.
22    (c) Revenues generated from the play of video gaming
23terminals shall be deposited by the terminal operator, who is
24responsible for tax payments, in a specially created, separate

 

 

10000HB2877ham002- 24 -LRB100 08549 MJP 27080 a

1bank account maintained by the video gaming terminal operator
2to allow for electronic fund transfers of moneys for tax
3payment.
4    (d) Each licensed establishment, licensed truck stop
5establishment, licensed fraternal establishment, organization
6licensee, inter-track wagering location licensee, and licensed
7veterans establishment shall maintain an adequate video gaming
8fund, with the amount to be determined by the Board.
9    (e) The State's percentage of net terminal income shall be
10reported and remitted to the Board within 15 days after the
1115th day of each month and within 15 days after the end of each
12month by the video terminal operator. A video terminal operator
13who falsely reports or fails to report the amount due required
14by this Section is guilty of a Class 4 felony and is subject to
15termination of his or her license by the Board. Each video
16terminal operator shall keep a record of net terminal income in
17such form as the Board may require. All payments not remitted
18when due shall be paid together with a penalty assessment on
19the unpaid balance at a rate of 1.5% per month.
20(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
 
21    Section 10. The Criminal Code of 2012 is amended by
22changing Section 28-1 as follows:
 
23    (720 ILCS 5/28-1)  (from Ch. 38, par. 28-1)
24    Sec. 28-1. Gambling.

 

 

10000HB2877ham002- 25 -LRB100 08549 MJP 27080 a

1    (a) A person commits gambling when he or she:
2        (1) knowingly plays a game of chance or skill for money
3    or other thing of value, unless excepted in subsection (b)
4    of this Section;
5        (2) knowingly makes a wager upon the result of any
6    game, contest, or any political nomination, appointment or
7    election;
8        (3) knowingly operates, keeps, owns, uses, purchases,
9    exhibits, rents, sells, bargains for the sale or lease of,
10    manufactures or distributes any gambling device;
11        (4) contracts to have or give himself or herself or
12    another the option to buy or sell, or contracts to buy or
13    sell, at a future time, any grain or other commodity
14    whatsoever, or any stock or security of any company, where
15    it is at the time of making such contract intended by both
16    parties thereto that the contract to buy or sell, or the
17    option, whenever exercised, or the contract resulting
18    therefrom, shall be settled, not by the receipt or delivery
19    of such property, but by the payment only of differences in
20    prices thereof; however, the issuance, purchase, sale,
21    exercise, endorsement or guarantee, by or through a person
22    registered with the Secretary of State pursuant to Section
23    8 of the Illinois Securities Law of 1953, or by or through
24    a person exempt from such registration under said Section
25    8, of a put, call, or other option to buy or sell
26    securities which have been registered with the Secretary of

 

 

10000HB2877ham002- 26 -LRB100 08549 MJP 27080 a

1    State or which are exempt from such registration under
2    Section 3 of the Illinois Securities Law of 1953 is not
3    gambling within the meaning of this paragraph (4);
4        (5) knowingly owns or possesses any book, instrument or
5    apparatus by means of which bets or wagers have been, or
6    are, recorded or registered, or knowingly possesses any
7    money which he has received in the course of a bet or
8    wager;
9        (6) knowingly sells pools upon the result of any game
10    or contest of skill or chance, political nomination,
11    appointment or election;
12        (7) knowingly sets up or promotes any lottery or sells,
13    offers to sell or transfers any ticket or share for any
14    lottery;
15        (8) knowingly sets up or promotes any policy game or
16    sells, offers to sell or knowingly possesses or transfers
17    any policy ticket, slip, record, document or other similar
18    device;
19        (9) knowingly drafts, prints or publishes any lottery
20    ticket or share, or any policy ticket, slip, record,
21    document or similar device, except for such activity
22    related to lotteries, bingo games and raffles authorized by
23    and conducted in accordance with the laws of Illinois or
24    any other state or foreign government;
25        (10) knowingly advertises any lottery or policy game,
26    except for such activity related to lotteries, bingo games

 

 

10000HB2877ham002- 27 -LRB100 08549 MJP 27080 a

1    and raffles authorized by and conducted in accordance with
2    the laws of Illinois or any other state;
3        (11) knowingly transmits information as to wagers,
4    betting odds, or changes in betting odds by telephone,
5    telegraph, radio, semaphore or similar means; or knowingly
6    installs or maintains equipment for the transmission or
7    receipt of such information; except that nothing in this
8    subdivision (11) prohibits transmission or receipt of such
9    information for use in news reporting of sporting events or
10    contests; or
11        (12) knowingly establishes, maintains, or operates an
12    Internet site that permits a person to play a game of
13    chance or skill for money or other thing of value by means
14    of the Internet or to make a wager upon the result of any
15    game, contest, political nomination, appointment, or
16    election by means of the Internet. This item (12) does not
17    apply to activities referenced in items (6) and (6.1) of
18    subsection (b) of this Section.
19    (b) Participants in any of the following activities shall
20not be convicted of gambling:
21        (1) Agreements to compensate for loss caused by the
22    happening of chance including without limitation contracts
23    of indemnity or guaranty and life or health or accident
24    insurance.
25        (2) Offers of prizes, award or compensation to the
26    actual contestants in any bona fide contest for the

 

 

10000HB2877ham002- 28 -LRB100 08549 MJP 27080 a

1    determination of skill, speed, strength or endurance or to
2    the owners of animals or vehicles entered in such contest.
3        (3) Pari-mutuel betting as authorized by the law of
4    this State.
5        (4) Manufacture of gambling devices, including the
6    acquisition of essential parts therefor and the assembly
7    thereof, for transportation in interstate or foreign
8    commerce to any place outside this State when such
9    transportation is not prohibited by any applicable Federal
10    law; or the manufacture, distribution, or possession of
11    video gaming terminals, as defined in the Video Gaming Act,
12    by manufacturers, distributors, and terminal operators
13    licensed to do so under the Video Gaming Act.
14        (5) The game commonly known as "bingo", when conducted
15    in accordance with the Bingo License and Tax Act.
16        (6) Lotteries when conducted by the State of Illinois
17    in accordance with the Illinois Lottery Law. This exemption
18    includes any activity conducted by the Department of
19    Revenue to sell lottery tickets pursuant to the provisions
20    of the Illinois Lottery Law and its rules.
21        (6.1) The purchase of lottery tickets through the
22    Internet for a lottery conducted by the State of Illinois
23    under the program established in Section 7.12 of the
24    Illinois Lottery Law.
25        (7) Possession of an antique slot machine that is
26    neither used nor intended to be used in the operation or

 

 

10000HB2877ham002- 29 -LRB100 08549 MJP 27080 a

1    promotion of any unlawful gambling activity or enterprise.
2    For the purpose of this subparagraph (b)(7), an antique
3    slot machine is one manufactured 25 years ago or earlier.
4        (8) Raffles and poker runs when conducted in accordance
5    with the Raffles and Poker Runs Act.
6        (9) Charitable games when conducted in accordance with
7    the Charitable Games Act.
8        (10) Pull tabs and jar games when conducted under the
9    Illinois Pull Tabs and Jar Games Act.
10        (11) Gambling games conducted on riverboats when
11    authorized by the Riverboat Gambling Act.
12        (12) Video gaming terminal games at a licensed
13    establishment, licensed truck stop establishment, licensed
14    fraternal establishment, organization licensee location,
15    inter-track wagering location licensee location, or
16    licensed veterans establishment when conducted in
17    accordance with the Video Gaming Act.
18        (13) Games of skill or chance where money or other
19    things of value can be won but no payment or purchase is
20    required to participate.
21        (14) Savings promotion raffles authorized under
22    Section 5g of the Illinois Banking Act, Section 7008 of the
23    Savings Bank Act, Section 42.7 of the Illinois Credit Union
24    Act, Section 5136B of the National Bank Act (12 U.S.C.
25    25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C.
26    1463).

 

 

10000HB2877ham002- 30 -LRB100 08549 MJP 27080 a

1    (c) Sentence.
2    Gambling is a Class A misdemeanor. A second or subsequent
3conviction under subsections (a)(3) through (a)(12), is a Class
44 felony.
5    (d) Circumstantial evidence.
6    In prosecutions under this Section circumstantial evidence
7shall have the same validity and weight as in any criminal
8prosecution.
9(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)".