100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB1664

 

Introduced 2/9/2017, by Sen. James F. Clayborne, Jr.

 

SYNOPSIS AS INTRODUCED:
 
230 ILCS 40/5
230 ILCS 40/20
230 ILCS 40/25
230 ILCS 40/35
230 ILCS 40/45
230 ILCS 40/55
230 ILCS 40/58
230 ILCS 40/60

    Amends the Video Gaming Act. Provides for the licensure of a motorsports park under the Act. Provides that a licensed motorsports park may operate up to 200 video gaming terminals on its premises at any time. Requires the owner of the licensed motorsports park to enter into a written use agreement with a terminal operator for placement of the terminals. Makes conforming changes in provisions concerning receipt tickets, licensure of terminals, issuance of licenses and license fees, the necessity of a liquor license for licensure, location of terminals, and imposition of a tax. Effective immediately.


LRB100 07142 AMC 17198 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1664LRB100 07142 AMC 17198 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
5Sections 5, 20, 25, 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,
19or licensed motorsports park for use in that establishment as a
20substitute for cash in the conduct of gaming on a video gaming
21terminal.
22    "Electronic voucher" means a voucher printed by an
23electronic video game machine that is redeemable in the

 

 

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

 

 

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

 

 

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1relationship with an inter-track wagering location licensee
2may not, itself, be (i) an inter-track wagering location
3licensee, (ii) the corporate parent or subsidiary of any
4licensee licensed under the Illinois Horse Racing Act of 1975,
5or (iii) the corporate subsidiary of a corporation that is also
6the corporate parent or subsidiary of any licensee licensed
7under the Illinois Horse Racing Act of 1975. "Licensed
8establishment" does not include a facility operated by an
9organization licensee, an inter-track wagering licensee, or an
10inter-track wagering location licensee licensed under the
11Illinois Horse Racing Act of 1975 or a riverboat licensed under
12the Riverboat Gambling Act, except as provided in this
13paragraph. The changes made to this definition by Public Act
1498-587 are declarative of existing law.
15    "Licensed fraternal establishment" means the location
16where a qualified fraternal organization that derives its
17charter from a national fraternal organization regularly
18meets.
19    "Licensed veterans establishment" means the location where
20a qualified veterans organization that derives its charter from
21a national veterans organization regularly meets.
22    "Licensed truck stop establishment" means a facility (i)
23that is at least a 3-acre facility with a convenience store,
24(ii) with separate diesel islands for fueling commercial motor
25vehicles, (iii) that sells at retail more than 10,000 gallons
26of diesel or biodiesel fuel per month, and (iv) with parking

 

 

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1spaces for commercial motor vehicles. "Commercial motor
2vehicles" has the same meaning as defined in Section 18b-101 of
3the Illinois Vehicle Code. The requirement of item (iii) of
4this paragraph may be met by showing that estimated future
5sales or past sales average at least 10,000 gallons per month.
6    "Licensed motorsports park" means a facility located in a
7county with a population of 500,000 or less that is within 5
8miles of 3 interstate highways and that has seating capacity
9for motorsports of 50,000 people or more.
10(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13;
1198-582, eff. 8-27-13; 98-587, eff. 8-27-13; 98-756, eff.
127-16-14.)
 
13    (230 ILCS 40/20)
14    Sec. 20. Direct dispensing of receipt tickets only. A video
15gaming terminal may not directly dispense coins, cash, tokens,
16or any other article of exchange or value except for receipt
17tickets. Tickets shall be dispensed by pressing the ticket
18dispensing button on the video gaming terminal at the end of
19one's turn or play. The ticket shall indicate the total amount
20of credits and the cash award, the time of day in a 24-hour
21format showing hours and minutes, the date, the terminal serial
22number, the sequential number of the ticket, and an encrypted
23validation number from which the validity of the prize may be
24determined. The player shall turn in this ticket to the
25appropriate person at the licensed establishment, licensed

 

 

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

 

 

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

 

 

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1the inner workings of a video gaming terminal, unless that
2person possesses a valid terminal handler's license issued
3under this Act.
4    (e) Licensed establishment. No video gaming terminal may be
5placed in any licensed establishment, licensed veterans
6establishment, licensed truck stop establishment, or licensed
7fraternal establishment unless the owner or agent of the owner
8of the licensed establishment, licensed veterans
9establishment, licensed truck stop establishment, or licensed
10fraternal establishment has entered into a written use
11agreement with the terminal operator for placement of the
12terminals. A copy of the use agreement shall be on file in the
13terminal operator's place of business and available for
14inspection by individuals authorized by the Board. A licensed
15establishment, licensed truck stop establishment, licensed
16veterans establishment, or licensed fraternal establishment
17may operate up to 5 video gaming terminals on its premises at
18any time.
19    (e-5) Licensed motorsports park. No video gaming terminal
20may be placed in a licensed motorsports park unless the owner
21or agent of the owner of the licensed motorsports park has
22entered into a written use agreement with the terminal operator
23for placement of the terminals. A copy of the use agreement
24shall be on file in the terminal operator's place of business
25and available for inspection by individuals authorized by the
26Board. A licensed motorsports park may operate up to 200 video

 

 

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

 

 

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

 

 

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1establishment, licensed truck stop establishment, licensed
2fraternal establishment, or licensed veterans establishment,
3or licensed motorsports park becomes licensed under this Act or
4(B) a school or place of worship moves to or is established
5within the restricted area after a licensed establishment,
6licensed truck stop establishment, licensed fraternal
7establishment, or licensed veterans establishment, or licensed
8motorsports park obtains its original liquor license. For the
9purpose of this subsection, "school" means an elementary or
10secondary public school, or an elementary or secondary private
11school registered with or recognized by the State Board of
12Education.
13    Notwithstanding the provisions of this subsection (h), the
14Board may waive the requirement that a licensed establishment,
15licensed truck stop establishment, licensed fraternal
16establishment, or licensed veterans establishment, or licensed
17motorsports park not be located within 1,000 feet from a
18facility operated by an organization licensee licensed under
19the Illinois 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 40/35)
5    Sec. 35. Display of license; confiscation; violation as
6felony.
7    (a) Each video gaming terminal shall be licensed by the
8Board before placement or operation on the premises of a
9licensed establishment, licensed truck stop establishment,
10licensed fraternal establishment, or licensed veterans
11establishment, or licensed motorsports park. The license of
12each video gaming terminal shall be maintained at the location
13where the video gaming terminal is operated. Failure to do so
14is a petty offense with a fine not to exceed $100. Any licensed
15establishment, licensed truck stop establishment, licensed
16fraternal establishment, or licensed veterans establishment,
17or licensed motorsports park used for the conduct of gambling
18games in violation of this Act shall be considered a gambling
19place in violation of Section 28-3 of the Criminal Code of
202012. Every gambling device found in a licensed establishment,
21licensed truck stop establishment, licensed fraternal
22establishment, or licensed veterans establishment, or licensed
23motorsports park operating gambling games in violation of this
24Act shall be subject to seizure, confiscation, and destruction
25as provided in Section 28-5 of the Criminal Code of 2012. Any

 

 

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

 

 

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1Section until 30 days after the Board establishes that the
2central communications system is functional.
3    (b) (1) The odds of winning each video game shall be posted
4on or near each video gaming terminal. The manner in which the
5odds are calculated and how they are posted shall be determined
6by the Board by rule.
7    (2) No video gaming terminal licensed under this Act may be
8played except during the legal hours of operation allowed for
9the consumption of alcoholic beverages at the licensed
10establishment, licensed fraternal establishment, or licensed
11veterans establishment, or licensed motorsports park. A
12licensed establishment, licensed fraternal establishment, or
13licensed veterans establishment, or licensed motorsports park
14that violates this subsection is subject to termination of its
15license by the Board.
16(Source: P.A. 97-1150, eff. 1-25-13; 98-111, eff. 1-1-14.)
 
17    (230 ILCS 40/45)
18    Sec. 45. Issuance of license.
19    (a) The burden is upon each applicant to demonstrate his
20suitability for licensure. Each video gaming terminal
21manufacturer, distributor, supplier, operator, handler,
22licensed establishment, licensed truck stop establishment,
23licensed fraternal establishment, and licensed veterans
24establishment, and licensed motorsports park shall be licensed
25by the Board. The Board may issue or deny a license under this

 

 

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1Act to any person pursuant to the same criteria set forth in
2Section 9 of the Riverboat Gambling Act.
3    (a-5) The Board shall not grant a license to a person who
4has facilitated, enabled, or participated in the use of
5coin-operated devices for gambling purposes or who is under the
6significant influence or control of such a person. For the
7purposes of this Act, "facilitated, enabled, or participated in
8the use of coin-operated amusement devices for gambling
9purposes" means that the person has been convicted of any
10violation of Article 28 of the Criminal Code of 1961 or the
11Criminal Code of 2012. If there is pending legal action against
12a person for any such violation, then the Board shall delay the
13licensure of that person until the legal action is resolved.
14    (b) Each person seeking and possessing a license as a video
15gaming terminal manufacturer, distributor, supplier, operator,
16handler, licensed establishment, licensed truck stop
17establishment, licensed fraternal establishment, or licensed
18veterans establishment, or licensed motorsports park shall
19submit to a background investigation conducted by the Board
20with the assistance of the State Police or other law
21enforcement. To the extent that the corporate structure of the
22applicant allows, the background investigation shall include
23any or all of the following as the Board deems appropriate or
24as provided by rule for each category of licensure: (i) each
25beneficiary of a trust, (ii) each partner of a partnership,
26(iii) each member of a limited liability company, (iv) each

 

 

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1director and officer of a publicly or non-publicly held
2corporation, (v) each stockholder of a non-publicly held
3corporation, (vi) each stockholder of 5% or more of a publicly
4held corporation, or (vii) each stockholder of 5% or more in a
5parent or subsidiary corporation.
6    (c) Each person seeking and possessing a license as a video
7gaming terminal manufacturer, distributor, supplier, operator,
8handler, licensed establishment, licensed truck stop
9establishment, licensed fraternal establishment, or licensed
10veterans establishment, or licensed motorsports park shall
11disclose the identity of every person, association, trust,
12corporation, or limited liability company having a greater than
131% direct or indirect pecuniary interest in the video gaming
14terminal operation for which the license is sought. If the
15disclosed entity is a trust, the application shall disclose the
16names and addresses of the beneficiaries; if a corporation, the
17names and addresses of all stockholders and directors; if a
18limited liability company, the names and addresses of all
19members; or if a partnership, the names and addresses of all
20partners, both general and limited.
21    (d) No person may be licensed as a video gaming terminal
22manufacturer, distributor, supplier, operator, handler,
23licensed establishment, licensed truck stop establishment,
24licensed fraternal establishment, or licensed veterans
25establishment, or licensed motorsports park if that person has
26been found by the Board to:

 

 

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1        (1) have a background, including a criminal record,
2    reputation, habits, social or business associations, or
3    prior activities that pose a threat to the public interests
4    of the State or to the security and integrity of video
5    gaming;
6        (2) create or enhance the dangers of unsuitable,
7    unfair, or illegal practices, methods, and activities in
8    the conduct of video gaming; or
9        (3) present questionable business practices and
10    financial arrangements incidental to the conduct of video
11    gaming activities.
12    (e) Any applicant for any license under this Act has the
13burden of proving his or her qualifications to the satisfaction
14of the Board. The Board may adopt rules to establish additional
15qualifications and requirements to preserve the integrity and
16security of video gaming in this State.
17    (f) A non-refundable application fee shall be paid at the
18time an application for a license is filed with the Board in
19the following amounts:
20        (1) Manufacturer..........................$5,000
21        (2) Distributor...........................$5,000
22        (3) Terminal operator.....................$5,000
23        (4) Supplier..............................$2,500
24        (5) Technician..............................$100
25        (6) Terminal Handler..............................$50
26    (g) The Board shall establish an annual fee for each

 

 

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1license not to exceed the following:
2        (1) Manufacturer.........................$10,000
3        (2) Distributor..........................$10,000
4        (3) Terminal operator.....................$5,000
5        (4) Supplier..............................$2,000
6        (5) Technician..............................$100
7        (6) Licensed establishment, licensed truck stop
8    establishment, licensed fraternal establishment,
9    or licensed veterans establishment..............$100
10        (7) Video gaming terminal...................$100
11        (8) Terminal Handler.........................$50
12        (9) Licensed motorsports park..................$5,000
13    (h) A terminal operator and a licensed establishment,
14licensed truck stop establishment, licensed fraternal
15establishment, or licensed veterans establishment shall
16equally split the fees specified in item (7) of subsection (g).
17(Source: P.A. 97-1150, eff. 1-25-13; 98-31, eff. 6-24-13;
1898-587, eff. 8-27-13; 98-756, eff. 7-16-14.)
 
19    (230 ILCS 40/55)
20    Sec. 55. Precondition for licensed location. In all cases
21of application for a licensed location, to operate a video
22gaming terminal, each licensed establishment, licensed
23fraternal establishment, or licensed veterans establishment,
24or licensed motorsports park shall possess a valid liquor
25license issued by the Illinois Liquor Control Commission in

 

 

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1effect at the time of application and at all times thereafter
2during which a video gaming terminal is made available to the
3public for play at that location. Video gaming terminals in a
4licensed location shall be operated only during the same hours
5of operation generally permitted to holders of a license under
6the Liquor Control Act of 1934 within the unit of local
7government in which they are located. A licensed truck stop
8establishment that does not hold a liquor license may operate
9video gaming terminals on a continuous basis. A licensed
10fraternal establishment or licensed veterans establishment
11that does not hold a liquor license may operate video gaming
12terminals if (i) the establishment is located in a county with
13a population between 6,500 and 7,000, based on the 2000 U.S.
14Census, (ii) the county prohibits by ordinance the sale of
15alcohol, and (iii) the establishment is in a portion of the
16county where the sale of alcohol is prohibited. A licensed
17fraternal establishment or licensed veterans establishment
18that does not hold a liquor license may operate video gaming
19terminals if (i) the establishment is located in a municipality
20within a county with a population between 8,500 and 9,000 based
21on the 2000 U.S. Census and (ii) the municipality or county
22prohibits or limits the sale of alcohol by ordinance in a way
23that prohibits the establishment from selling alcohol.
24(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10;
2597-594, eff. 8-26-11.)
 

 

 

SB1664- 21 -LRB100 07142 AMC 17198 b

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, and
9licensed veterans establishments, and licensed motorsports
10park shall be subject to the rules promulgated by the Board
11pursuant to the Illinois Administrative Procedure Act.
12(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
 
13    (230 ILCS 40/60)
14    Sec. 60. Imposition and distribution of tax.
15    (a) A tax of 30% is imposed on net terminal income and
16shall be collected by the Board.
17    (b) Of the tax collected under this Section, five-sixths
18shall be deposited into the Capital Projects Fund and one-sixth
19shall be deposited into the Local Government Video Gaming
20Distributive Fund.
21    (c) Revenues generated from the play of video gaming
22terminals shall be deposited by the terminal operator, who is
23responsible for tax payments, in a specially created, separate
24bank account maintained by the video gaming terminal operator
25to allow for electronic fund transfers of moneys for tax

 

 

SB1664- 22 -LRB100 07142 AMC 17198 b

1payment.
2    (d) Each licensed establishment, licensed truck stop
3establishment, licensed fraternal establishment, and licensed
4veterans establishment, and licensed motorsports park shall
5maintain an adequate video gaming fund, with the amount to be
6determined by the Board.
7    (e) The State's percentage of net terminal income shall be
8reported and remitted to the Board within 15 days after the
915th day of each month and within 15 days after the end of each
10month by the video terminal operator. A video terminal operator
11who falsely reports or fails to report the amount due required
12by this Section is guilty of a Class 4 felony and is subject to
13termination of his or her license by the Board. Each video
14terminal operator shall keep a record of net terminal income in
15such form as the Board may require. All payments not remitted
16when due shall be paid together with a penalty assessment on
17the unpaid balance at a rate of 1.5% per month.
18(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.