103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5205

 

Introduced 2/9/2024, by Rep. Brad Halbrook

 

SYNOPSIS AS INTRODUCED:
 
230 ILCS 40/45

    Amends the Video Gaming Act. Provides that the Illinois Gaming Board shall establish a database that contains the following variables: the population of each municipality and unincorporated county area in which video gaming has not been prohibited; the number of licensed establishments within each municipality and unincorporated county area that has been listed by population in the database; and the ratio, as measured in licensed establishments per 1,000 residents, within each municipality and unincorporated county area listed by population in the database. Provides that, notwithstanding any other provision of law, no new license shall be issued to an applicant for licensure as a licensed establishment if the applicant is located within a municipality or unincorporated county area in which there is more than one licensed establishment per 1,000 residents; and when a municipality or unincorporated county area exists with more than one licensed establishment per 1,000 residents, the Board shall deny a licensed establishment's application to renew its license until the number of licensed establishments within the political subdivision has dropped to a ratio that is equal to, or less than, one license establishment per 1,000 residents. Specifies that the provisions shall not infringe upon the right of a licensed establishment to continue to enjoy licensure as a licensed establishment for the duration of the license that has been awarded to the establishment before the effective date of the amendatory Act. Effective immediately.


LRB103 38359 AWJ 68494 b

 

 

A BILL FOR

 

HB5205LRB103 38359 AWJ 68494 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
5Section 45 as follows:
 
6    (230 ILCS 40/45)
7    Sec. 45. Issuance of license.
8    (a) The burden is upon each applicant to demonstrate his
9suitability for licensure. Each video gaming terminal
10manufacturer, distributor, supplier, operator, handler,
11licensed establishment, licensed truck stop establishment,
12licensed large truck stop establishment, licensed fraternal
13establishment, and licensed veterans establishment shall be
14licensed by the Board. The Board may issue or deny a license
15under this Act to any person pursuant to the same criteria set
16forth in Section 9 of the Illinois Gambling Act.
17    (a-5) The Board shall not grant a license to a person who
18has facilitated, enabled, or participated in the use of
19coin-operated devices for gambling purposes or who is under
20the significant influence or control of such a person. For the
21purposes of this Act, "facilitated, enabled, or participated
22in the use of coin-operated amusement devices for gambling
23purposes" means that the person has been convicted of any

 

 

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1violation of Article 28 of the Criminal Code of 1961 or the
2Criminal Code of 2012. If there is pending legal action
3against a person for any such violation, then the Board shall
4delay the licensure of that person until the legal action is
5resolved.
6    (b) Each person seeking and possessing a license as a
7video gaming terminal manufacturer, distributor, supplier,
8operator, handler, licensed establishment, licensed truck stop
9establishment, licensed large truck stop establishment,
10licensed fraternal establishment, or licensed veterans
11establishment shall submit to a background investigation
12conducted by the Board with the assistance of the Illinois
13State Police or other law enforcement. To the extent that the
14corporate structure of the applicant allows, the background
15investigation shall include any or all of the following as the
16Board deems appropriate or as provided by rule for each
17category of licensure: (i) each beneficiary of a trust, (ii)
18each partner of a partnership, (iii) each member of a limited
19liability company, (iv) each director and officer of a
20publicly or non-publicly held corporation, (v) each
21stockholder of a non-publicly held corporation, (vi) each
22stockholder of 5% or more of a publicly held corporation, or
23(vii) each stockholder of 5% or more in a parent or subsidiary
24corporation.
25    (c) Each person seeking and possessing a license as a
26video gaming terminal manufacturer, distributor, supplier,

 

 

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

 

 

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1    the conduct of video gaming; or
2        (3) present questionable business practices and
3    financial arrangements incidental to the conduct of video
4    gaming activities.
5    (d-5) The Board shall establish and maintain a database
6that contains the following variables:
7        (1) the population, as published by the most recent
8    decennial census of population published by the United
9    States Census Bureau, of each municipality and
10    unincorporated area of a county in which video gaming has
11    not been prohibited under Section 27;
12        (2) the number of licensed establishments within each
13    municipality and unincorporated county area that has been
14    listed by population under item (1); and
15        (3) the ratio, as measured in licensed establishments
16    per 1,000 residents, within each municipality and
17    unincorporated county area listed by population under item
18    (1).
19    Notwithstanding any other provision of law, no new license
20shall be issued to an applicant for licensure as a licensed
21establishment if the applicant is located within a
22municipality or unincorporated county area in which there is
23more than one licensed establishment per 1,000 residents; and
24when a municipality or unincorporated county area exists with
25more than one licensed establishment per 1,000 residents, the
26Board shall deny a licensed establishment's application to

 

 

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1renew its license until the number of licensed establishments
2within the municipality or unincorporated area of the county
3has dropped to a ratio that is equal to, or less than, one
4license establishment per 1,000 residents.
5    Nothing in this subsection shall infringe upon the right
6of a licensed establishment in valid possession of a license
7on the effective date of this amendatory Act of the 103rd
8General Assembly to continue to enjoy licensure as a licensed
9establishment for the duration of the license that has been
10awarded to the establishment before the effective date of this
11amendatory Act of the 103rd General Assembly.
12    (e) Any applicant for any license under this Act has the
13burden of proving his or her qualifications to the
14satisfaction of the Board. The Board may adopt rules to
15establish additional qualifications and requirements to
16preserve the integrity and security of video gaming in this
17State.
18    (f) A non-refundable application fee shall be paid at the
19time an application for a license is filed with the Board in
20the following amounts:
21        (1) Manufacturer..........................$5,000
22        (2) Distributor...........................$5,000
23        (3) Terminal operator.....................$5,000
24        (4) Supplier..............................$2,500
25        (5) Technician..............................$100
26        (6) Terminal Handler........................$100

 

 

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1        (7) Licensed establishment, licensed truck stop
2    establishment, licensed large truck stop establishment,
3    licensed fraternal establishment, or licensed
4    veterans establishment...............................$100
5        (8) Sales agent and broker.......................$100
6    (g) The Board shall establish an annual fee for each
7license not to exceed the following:
8        (1) Manufacturer.........................$10,000
9        (2) Distributor..........................$10,000
10        (3) Terminal operator.....................$5,000
11        (4) Supplier..............................$2,000
12        (5) Technician..............................$100
13        (6) Licensed establishment, licensed truck stop
14    establishment, licensed large truck stop establishment,
15    licensed fraternal establishment, or licensed
16    veterans establishment..........................$100
17        (7) Video gaming terminal...................$100
18        (8) Terminal Handler............................$100 
19        (9) Sales agent and broker.......................$100
20    (h) A terminal operator and a licensed establishment,
21licensed truck stop establishment, licensed large truck stop
22establishment, licensed fraternal establishment, or licensed
23veterans establishment shall equally split the fees specified
24in item (7) of subsection (g).
25(Source: P.A. 101-31, eff. 6-28-19; 102-538, eff. 8-20-21;
26102-689, eff. 12-17-21.)
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.