Full Text of SB0303 99th General Assembly
SB0303ham002 99TH GENERAL ASSEMBLY | Rep. Jay Hoffman Filed: 11/29/2016
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| 1 | | AMENDMENT TO SENATE BILL 303
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 303, AS AMENDED, by | 3 | | replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 5. The Video Gaming
Act is amended by changing the | 6 | | Sections 5, 25, 30, 35, 45, 55, 58, and 60 as follows:
| 7 | | (230 ILCS 40/5)
| 8 | | Sec. 5. Definitions. As used in this Act:
| 9 | | "Board" means the Illinois Gaming Board.
| 10 | | "Credit" means one, 5, 10, or 25 cents either won or | 11 | | purchased by a player.
| 12 | | "Distributor" means an individual, partnership, | 13 | | corporation, or limited liability company licensed under
this | 14 | | Act to buy, sell, lease, or distribute video gaming terminals | 15 | | or major
components or parts of video gaming terminals to or | 16 | | from terminal
operators.
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| 1 | | "Electronic card" means a card purchased from a licensed | 2 | | establishment, licensed fraternal establishment, licensed | 3 | | veterans establishment, or licensed truck stop establishment | 4 | | for use in that establishment as a substitute for cash in the | 5 | | conduct of gaming on a video gaming terminal. | 6 | | "Electronic voucher" means a voucher printed by an | 7 | | electronic video game machine that is redeemable in the | 8 | | licensed establishment for which it was issued. | 9 | | "Terminal operator" means an individual, partnership, | 10 | | corporation, or limited liability company that is
licensed | 11 | | under this Act and that owns, services, and maintains video
| 12 | | gaming terminals for placement in licensed establishments, | 13 | | licensed truck stop establishments, licensed fraternal
| 14 | | establishments, organization licensee locations, inter-track | 15 | | wagering location licensee locations, or licensed veterans | 16 | | establishments.
| 17 | | "Licensed technician" means an individual
who
is licensed | 18 | | under this Act to repair,
service, and maintain
video gaming | 19 | | terminals.
| 20 | | "Licensed terminal handler" means a person, including but | 21 | | not limited to an employee or independent contractor working | 22 | | for a manufacturer, distributor, supplier, technician, or | 23 | | terminal operator, who is licensed under this Act to possess or | 24 | | control a video gaming terminal or to have access to the inner | 25 | | workings of a video gaming terminal. A licensed terminal | 26 | | handler does not include an individual, partnership, |
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| 1 | | corporation, or limited liability company defined as a | 2 | | manufacturer, distributor, supplier, technician, or terminal | 3 | | operator under this Act. | 4 | | "Manufacturer" means an individual, partnership, | 5 | | corporation, or limited liability company that is
licensed | 6 | | under this Act and that manufactures or assembles video gaming
| 7 | | terminals.
| 8 | | "Supplier" means an individual, partnership, corporation, | 9 | | or limited liability company that is
licensed under this Act to | 10 | | supply major components or parts to video gaming
terminals to | 11 | | licensed
terminal operators.
| 12 | | "Net terminal income" means money put into a video gaming | 13 | | terminal minus
credits paid out to players.
| 14 | | "Video gaming terminal" means any electronic video game | 15 | | machine
that, upon insertion of cash, electronic cards or | 16 | | vouchers, or any combination thereof, is available to play or | 17 | | simulate the play of
a video game, including but not limited to | 18 | | video poker, line up, and blackjack, as
authorized by the Board | 19 | | utilizing a video display and microprocessors in
which the | 20 | | player may receive free games or credits that can be
redeemed | 21 | | for cash. The term does not include a machine that directly
| 22 | | dispenses coins, cash, or tokens or is for amusement purposes | 23 | | only.
| 24 | | "Licensed establishment" means any licensed retail | 25 | | establishment where
alcoholic liquor is drawn, poured, mixed, | 26 | | or otherwise served for consumption
on the premises, whether |
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| 1 | | the establishment operates on a nonprofit or for-profit basis. | 2 | | "Licensed establishment" includes any such establishment that | 3 | | has a contractual relationship with an inter-track wagering | 4 | | location licensee licensed under the Illinois Horse Racing Act | 5 | | of 1975, provided any contractual relationship shall not | 6 | | include any transfer or offer of revenue from the operation of | 7 | | video gaming under this Act to any licensee licensed under the | 8 | | Illinois Horse Racing Act of 1975. Provided, however, that the | 9 | | licensed establishment that has such a contractual | 10 | | relationship with an inter-track wagering location licensee | 11 | | may not, itself, be (i) an inter-track wagering location | 12 | | licensee, (ii) the corporate parent or subsidiary of any | 13 | | licensee licensed under the Illinois Horse Racing Act of 1975, | 14 | | or (iii) the corporate subsidiary of a corporation that is also | 15 | | the corporate parent or subsidiary of any licensee licensed | 16 | | under the Illinois Horse Racing Act of 1975. "Licensed | 17 | | establishment" does not include a facility operated by an | 18 | | organization licensee, an inter-track wagering licensee, or an | 19 | | inter-track wagering location licensee licensed under the | 20 | | Illinois Horse Racing Act of 1975 or a riverboat licensed under | 21 | | the Riverboat Gambling Act, except as provided in this | 22 | | paragraph. The changes made to this definition by Public Act | 23 | | 98-587 are declarative of existing law.
| 24 | | "Licensed fraternal establishment" means the location | 25 | | where a qualified
fraternal organization that derives its | 26 | | charter from a national fraternal
organization regularly |
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| 1 | | meets.
| 2 | | "Licensed veterans establishment" means the location where | 3 | | a qualified
veterans organization that derives its charter from | 4 | | a national veterans
organization regularly meets.
| 5 | | "Licensed truck stop establishment" means a facility (i) | 6 | | that is at least a
3-acre facility with a convenience store, | 7 | | (ii) with separate diesel
islands for fueling commercial motor | 8 | | vehicles, (iii) that sells at retail more than 10,000 gallons | 9 | | of diesel or biodiesel fuel per month, and (iv) with parking | 10 | | spaces for commercial
motor vehicles. "Commercial motor | 11 | | vehicles" has the same meaning as defined in Section 18b-101 of | 12 | | the Illinois Vehicle Code. The requirement of item (iii) of | 13 | | this paragraph may be met by showing that estimated future | 14 | | sales or past sales average at least 10,000 gallons per month.
| 15 | | "Organization licensee" means an organization licensee as | 16 | | defined in the Illinois Horse Racing Act of 1975. | 17 | | "Inter-track wagering location licensee" means an | 18 | | inter-track wagering location licensee as defined in the | 19 | | Illinois Horse Racing Act of 1975. | 20 | | (Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; | 21 | | 98-582, eff. 8-27-13; 98-587, eff. 8-27-13; 98-756, eff. | 22 | | 7-16-14.)
| 23 | | (230 ILCS 40/25)
| 24 | | Sec. 25. Restriction of licensees.
| 25 | | (a) Manufacturer. A person may not be licensed as a |
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| 1 | | manufacturer of a
video gaming terminal in Illinois unless the | 2 | | person has a valid
manufacturer's license issued
under this | 3 | | Act. A manufacturer may only sell video gaming terminals for | 4 | | use
in Illinois to
persons having a valid distributor's | 5 | | license.
| 6 | | (b) Distributor. A person may not sell, distribute, or | 7 | | lease
or market a video gaming terminal in Illinois unless the | 8 | | person has a valid
distributor's
license issued under this Act. | 9 | | A distributor may only sell video gaming
terminals for use in
| 10 | | Illinois to persons having a valid distributor's or terminal | 11 | | operator's
license.
| 12 | | (c) Terminal operator. A person may not own, maintain, or | 13 | | place a video gaming terminal unless he has a valid terminal | 14 | | operator's
license issued
under this Act. A terminal operator | 15 | | may only place video gaming terminals for
use in
Illinois in | 16 | | licensed establishments, licensed truck stop establishments, | 17 | | licensed fraternal establishments, organization licensee | 18 | | locations, inter-track wagering location licensee locations,
| 19 | | and
licensed veterans establishments.
No terminal operator may | 20 | | give anything of value, including but not limited to
a loan or | 21 | | financing arrangement, to a licensed establishment, licensed | 22 | | truck stop establishment,
licensed fraternal establishment, | 23 | | organization licensee location, inter-track wagering location | 24 | | licensee location, or licensed veterans establishment as
any | 25 | | incentive or inducement to locate video terminals in that | 26 | | establishment.
Of the after-tax profits
from a video gaming |
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| 1 | | terminal, 50% shall be paid to the terminal
operator and 50% | 2 | | shall be paid to the licensed establishment, licensed truck | 3 | | stop establishment,
licensed fraternal establishment, | 4 | | organization licensee location, inter-track wagering location | 5 | | licensee location, or
licensed veterans establishment, | 6 | | notwithstanding any agreement to the contrary. Organization | 7 | | licensees and inter-track wagering location licensees shall | 8 | | deposit 50% of their share of the net terminal income into the | 9 | | horsemen purse accounts associated with their respective | 10 | | racetrack to be distributed by agreements between breeds unless | 11 | | the organization licensee and the horsemen associations | 12 | | representing the largest number of owners, trainers, jockeys, | 13 | | or standardbred drivers who race horses at that organization | 14 | | licensee's racing meetings agree to allocate expenses | 15 | | associated with the video gaming terminals.
A video terminal | 16 | | operator that violates one or more requirements of this | 17 | | subsection is guilty of a Class 4 felony and is subject to | 18 | | termination of his or her license by the Board.
| 19 | | (d) Licensed technician. A person may not service, | 20 | | maintain, or repair a
video gaming terminal
in this State | 21 | | unless he or she (1) has a valid technician's license issued
| 22 | | under this Act, (2) is a terminal operator, or (3) is employed | 23 | | by a terminal
operator, distributor, or manufacturer.
| 24 | | (d-5) Licensed terminal handler. No person, including, but | 25 | | not limited to, an employee or independent contractor working | 26 | | for a manufacturer, distributor, supplier, technician, or |
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| 1 | | terminal operator licensed pursuant to this Act, shall have | 2 | | possession or control of a video gaming terminal, or access to | 3 | | the inner workings of a video gaming terminal, unless that | 4 | | person possesses a valid terminal handler's license issued | 5 | | under this Act. | 6 | | (e) Licensed establishment. No video gaming terminal may be | 7 | | placed in any licensed establishment, licensed veterans | 8 | | establishment, licensed truck stop establishment, organization | 9 | | licensee location, inter-track wagering location licensee | 10 | | location,
or licensed fraternal establishment
unless the owner
| 11 | | or agent of the owner of the licensed establishment, licensed | 12 | | veterans establishment, licensed truck stop establishment, | 13 | | organization licensee, inter-track wagering location licensee, | 14 | | or licensed
fraternal establishment has entered into a
written | 15 | | use agreement with the terminal operator for placement of the
| 16 | | terminals. A copy of the use agreement shall be on file in the | 17 | | terminal
operator's place of business and available for | 18 | | inspection by individuals
authorized by the Board. A licensed | 19 | | establishment, licensed truck stop establishment, licensed | 20 | | veterans establishment,
or
licensed
fraternal
establishment | 21 | | may operate up to 5 video gaming terminals on its premises at | 22 | | any
time , except that an organization licensee licensed under | 23 | | the Illinois Horse Racing Act of 1975 who held that license in | 24 | | 2016 may operate up to 150 video gaming terminals at its | 25 | | organization licensee location at any time and an inter-track | 26 | | wagering location licensee may operate up to 5 video gaming |
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| 1 | | terminals at the inter-track wagering location licensee's | 2 | | location or on the premises of the organization licensee with | 3 | | which they are affiliated . An organization licensee may enter | 4 | | into a written use agreement with multiple terminal operators | 5 | | for placement of terminals on the organization licensee's | 6 | | premises.
| 7 | | (f) (Blank).
| 8 | | (g) Financial interest restrictions.
As used in this Act, | 9 | | "substantial interest" in a partnership, a corporation, an
| 10 | | organization, an association, a business, or a limited | 11 | | liability company means:
| 12 | | (A) When, with respect to a sole proprietorship, an | 13 | | individual or
his or her spouse owns, operates, manages, or | 14 | | conducts, directly
or indirectly, the organization, | 15 | | association, or business, or any part thereof;
or
| 16 | | (B) When, with respect to a partnership, the individual | 17 | | or his or
her spouse shares in any of the profits, or | 18 | | potential profits,
of the partnership activities; or
| 19 | | (C) When, with respect to a corporation, an individual | 20 | | or his or her
spouse is an officer or director, or the | 21 | | individual or his or her spouse is a holder, directly or | 22 | | beneficially, of 5% or more of any class
of stock of the | 23 | | corporation; or
| 24 | | (D) When, with respect to an organization not covered | 25 | | in (A), (B) or
(C) above, an individual or his or her | 26 | | spouse is an officer or manages the
business affairs, or |
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| 1 | | the individual or his or her spouse is the
owner of or | 2 | | otherwise controls 10% or more of the assets of the | 3 | | organization;
or
| 4 | | (E) When an individual or his or her spouse furnishes
| 5 | | 5% or more of the capital, whether in cash, goods, or | 6 | | services, for the
operation of any business, association, | 7 | | or organization during any calendar
year; or | 8 | | (F) When, with respect to a limited liability company, | 9 | | an individual or his or her
spouse is a member, or the | 10 | | individual or his or her spouse is a holder, directly or | 11 | | beneficially, of 5% or more of the membership interest of | 12 | | the limited liability company.
| 13 | | For purposes of this subsection (g), "individual" includes | 14 | | all individuals or their spouses whose combined interest would | 15 | | qualify as a substantial interest under this subsection (g) and | 16 | | whose activities with respect to an organization, association, | 17 | | or business are so closely aligned or coordinated as to | 18 | | constitute the activities of a single entity. | 19 | | (h) Location restriction. A licensed establishment, | 20 | | licensed truck stop establishment, licensed
fraternal
| 21 | | establishment, organization licensee location, inter-track | 22 | | wagering location licensee location, or licensed veterans | 23 | | establishment that is (i) located within 1,000
feet of a | 24 | | facility operated by an organization licensee licensed under | 25 | | the Illinois Horse Racing Act of 1975 or the home dock of a | 26 | | riverboat licensed under the Riverboat
Gambling Act or (ii) |
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| 1 | | located within 100 feet of a school or a place of worship under | 2 | | the Religious Corporation Act , is ineligible to operate a video | 3 | | gaming terminal. The location restrictions in this subsection | 4 | | (h) do not apply if (A) a facility operated by an organization | 5 | | licensee, a school , or a place of worship moves to or is | 6 | | established within the restricted area after a licensed | 7 | | establishment, licensed truck stop establishment, licensed | 8 | | fraternal establishment, organization licensee, inter-track | 9 | | wagering location licensee, or licensed veterans establishment | 10 | | becomes licensed under this Act or (B) a school or place of | 11 | | worship moves to or is established within the restricted area | 12 | | after a licensed establishment, licensed truck stop | 13 | | establishment, licensed fraternal establishment, organization | 14 | | licensee, inter-track wagering location licensee, or licensed | 15 | | veterans establishment obtains its original liquor license. | 16 | | For the purpose of this subsection, "school" means an | 17 | | elementary or secondary public school, or an elementary or | 18 | | secondary private school registered with or recognized by the | 19 | | State Board of Education. | 20 | | Notwithstanding the provisions of this subsection (h), the | 21 | | Board may waive the requirement that a licensed establishment, | 22 | | licensed truck stop establishment, licensed fraternal | 23 | | establishment, organization licensee location, inter-track | 24 | | wagering location licensee location, or licensed veterans | 25 | | establishment not be located within 1,000 feet from a facility | 26 | | operated by an organization licensee licensed under the |
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| 1 | | Illinois Horse Racing Act of 1975 or the home dock of a | 2 | | riverboat licensed under the Riverboat Gambling Act. The Board | 3 | | shall not grant such waiver if there is any common ownership or | 4 | | control, shared business activity, or contractual arrangement | 5 | | of any type between the establishment and the organization | 6 | | licensee or owners licensee of a riverboat. The Board shall | 7 | | adopt rules to implement the provisions of this paragraph. | 8 | | (i) Undue economic concentration. In addition to | 9 | | considering all other requirements under this Act, in deciding | 10 | | whether to approve the operation of video gaming terminals by a | 11 | | terminal operator in a location, the Board shall consider the | 12 | | impact of any economic concentration of such operation of video | 13 | | gaming terminals. The Board shall not allow a terminal operator | 14 | | to operate video gaming terminals if the Board determines such | 15 | | operation will result in undue economic concentration. For | 16 | | purposes of this Section, "undue economic concentration" means | 17 | | that a terminal operator would have such actual or potential | 18 | | influence over video gaming terminals in Illinois as to: | 19 | | (1) substantially impede or suppress competition among | 20 | | terminal operators; | 21 | | (2) adversely impact the economic stability of the | 22 | | video gaming industry in Illinois; or | 23 | | (3) negatively impact the purposes of the Video Gaming | 24 | | Act. | 25 | | The Board shall adopt rules concerning undue economic | 26 | | concentration with respect to the operation of video gaming |
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| 1 | | terminals in Illinois. The rules shall include, but not be | 2 | | limited to, (i) limitations on the number of video gaming | 3 | | terminals operated by any terminal operator within a defined | 4 | | geographic radius and (ii) guidelines on the discontinuation of | 5 | | operation of any such video gaming terminals the Board | 6 | | determines will cause undue economic concentration.
| 7 | | (j) The provisions of the Illinois Antitrust Act are fully | 8 | | and equally applicable to the activities of any licensee under | 9 | | this Act.
| 10 | | (Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77, | 11 | | eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
| 12 | | (230 ILCS 40/30)
| 13 | | Sec. 30. Multiple types of licenses prohibited. A video | 14 | | gaming
terminal
manufacturer may not be licensed as a video | 15 | | gaming terminal
operator or own, manage, or control a licensed
| 16 | | establishment, licensed truck stop establishment, licensed | 17 | | fraternal establishment, organization licensee location, | 18 | | inter-track wagering location licensee location, or licensed | 19 | | veterans
establishment , and shall be licensed to sell only to | 20 | | persons having a valid distributor's license or, if the | 21 | | manufacturer also holds a valid distributor's license, to sell, | 22 | | distribute, lease, or market to persons having a valid terminal | 23 | | operator's license. A video
gaming terminal distributor may not | 24 | | be licensed as a
video gaming terminal operator or own, manage, | 25 | | or
control a
licensed establishment, licensed truck stop |
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| 1 | | establishment, licensed fraternal establishment, or licensed
| 2 | | veterans
establishment, and shall only contract with a licensed | 3 | | terminal
operator. A video gaming terminal operator may not be | 4 | | licensed as
a video
gaming terminal manufacturer or distributor | 5 | | or own, manage, or control a
licensed establishment, licensed | 6 | | truck stop establishment, licensed fraternal establishment, or | 7 | | licensed
veterans
establishment, and shall be licensed only to | 8 | | contract with licensed
distributors and licensed | 9 | | establishments, licensed truck stop establishments,
licensed | 10 | | fraternal
establishments,
and licensed veterans | 11 | | establishments. An owner or manager of a
licensed | 12 | | establishment, licensed truck stop establishment, licensed | 13 | | fraternal
establishment, or licensed
veterans
establishment | 14 | | may not be licensed as a video gaming terminal
manufacturer, | 15 | | distributor, or operator, and shall only contract with a
| 16 | | licensed operator to place and service this equipment.
| 17 | | (Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.) | 18 | | (230 ILCS 40/35)
| 19 | | Sec. 35. Display of license; confiscation; violation as | 20 | | felony. | 21 | | (a) Each
video gaming terminal shall be licensed by the | 22 | | Board before placement
or operation on the premises of a | 23 | | licensed establishment, licensed truck stop
establishment, | 24 | | licensed
fraternal establishment, organization licensee | 25 | | location, inter-track wagering location licensee location, or |
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| 1 | | licensed veterans establishment. The license of
each video | 2 | | gaming terminal shall be maintained
at the location where the | 3 | | video gaming terminal is operated. Failure to do so
is a petty | 4 | | offense with a fine
not to exceed $100.
Any licensed | 5 | | establishment, licensed truck stop establishment, licensed
| 6 | | fraternal establishment, organization licensee location, | 7 | | inter-track wagering location licensee location, or licensed
| 8 | | veterans establishment
used for the conduct of gambling games | 9 | | in violation of this Act shall be
considered a gambling place | 10 | | in violation of Section 28-3 of the Criminal
Code of 2012. | 11 | | Every gambling device found in
a licensed establishment, | 12 | | licensed truck stop establishment, licensed fraternal
| 13 | | establishment, organization licensee location, inter-track | 14 | | wagering location licensee location, or licensed
veterans | 15 | | establishment operating gambling games in violation of this
Act | 16 | | shall be subject to seizure, confiscation, and destruction as | 17 | | provided
in Section 28-5 of the Criminal Code of 2012.
Any | 18 | | license issued under the Liquor Control Act
of 1934 to any | 19 | | owner or operator of a licensed establishment, licensed truck
| 20 | | stop establishment, licensed
fraternal establishment, | 21 | | organization licensee location, inter-track wagering location | 22 | | licensee location, or licensed veterans establishment that | 23 | | operates or
permits the operation of a video gaming terminal | 24 | | within its establishment in
violation of this Act shall be | 25 | | immediately revoked.
No person may own, operate, have in his or | 26 | | her possession or custody or under
his or her control, or |
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| 1 | | permit to be kept in any place under his or her
possession or | 2 | | control, any
device that awards credits and contains a circuit, | 3 | | meter, or switch capable of
removing and recording the removal | 4 | | of credits when the award of credits is
dependent upon chance. | 5 | | Nothing in this Section shall be deemed to prohibit the use | 6 | | of a game device only if the game device is used in an activity | 7 | | that is not gambling under subsection (b) of Section 28-1 of | 8 | | the Criminal Code of 2012. | 9 | | A violation of this Section is a Class 4 felony. All
| 10 | | devices that are owned, operated, or possessed in violation of | 11 | | this Section are
hereby declared to be public nuisances and | 12 | | shall be subject to seizure,
confiscation, and destruction as | 13 | | provided in Section 28-5 of the Criminal Code
of 2012.
| 14 | | The provisions of this Section do not apply to devices or | 15 | | electronic video
game terminals licensed pursuant to this Act. | 16 | | A video gaming terminal operated for amusement only and bearing | 17 | | a valid amusement tax sticker shall not be subject to this | 18 | | Section until 30 days after the Board establishes that the | 19 | | central communications system is functional.
| 20 | | (b) (1) The odds of winning each video game shall be posted | 21 | | on or near each video gaming terminal. The manner in which the | 22 | | odds are calculated and how they are posted shall be determined | 23 | | by the Board by rule. | 24 | | (2) No video gaming terminal licensed under this Act may be | 25 | | played except during the legal hours of operation allowed for | 26 | | the consumption of alcoholic beverages at the licensed |
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| 1 | | establishment, licensed fraternal establishment, or licensed | 2 | | veterans establishment. No video gaming terminal licensed | 3 | | under this Act at a location operated by an organization | 4 | | licensee or inter-track wagering location licensee may be | 5 | | played except during the legal hours of operation allowed in | 6 | | the Illinois Horse Racing Act of 1975. A licensed | 7 | | establishment, licensed fraternal establishment, organization | 8 | | licensee, inter-track wagering location licensee, or licensed | 9 | | veterans establishment that violates this subsection is | 10 | | subject to termination of its license by the Board. | 11 | | (Source: P.A. 97-1150, eff. 1-25-13; 98-111, eff. 1-1-14.)
| 12 | | (230 ILCS 40/45)
| 13 | | Sec. 45. Issuance of license.
| 14 | | (a) The burden is upon each applicant to
demonstrate his | 15 | | suitability for licensure. Each video gaming terminal
| 16 | | manufacturer, distributor, supplier, operator, handler, | 17 | | licensed establishment, licensed truck stop establishment, | 18 | | licensed
fraternal
establishment, organization licensee, | 19 | | inter-track wagering location licensee, and licensed veterans | 20 | | establishment shall be
licensed by the Board.
The Board may | 21 | | issue or deny a license under this Act to any person pursuant | 22 | | to the same criteria set forth in Section 9 of the Riverboat | 23 | | Gambling Act.
| 24 | | (a-5) The Board shall not grant a license to a person who | 25 | | has facilitated, enabled, or participated in the use of |
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| 1 | | coin-operated devices for gambling purposes or who is under the | 2 | | significant influence or control of such a person. For the | 3 | | purposes of this Act, "facilitated, enabled, or participated in | 4 | | the use of coin-operated amusement devices for gambling | 5 | | purposes" means that the person has been convicted of any | 6 | | violation of Article 28 of the Criminal Code of 1961 or the | 7 | | Criminal Code of 2012. If there is pending legal action against | 8 | | a person for any such violation, then the Board shall delay the | 9 | | licensure of that person until the legal action is resolved. | 10 | | (b) Each person seeking and possessing a license as a video | 11 | | gaming terminal manufacturer, distributor, supplier, operator, | 12 | | handler, licensed establishment, licensed truck stop | 13 | | establishment, licensed fraternal establishment, organization | 14 | | licensee, inter-track wagering location licensee, or licensed | 15 | | veterans establishment shall submit to a background | 16 | | investigation conducted by the Board with the assistance of the | 17 | | State Police or other law enforcement. To the extent that the | 18 | | corporate structure of the applicant allows, the background | 19 | | investigation shall include any or all of the following as the | 20 | | Board deems appropriate or as provided by rule for each | 21 | | category of licensure: (i) each beneficiary of a trust, (ii) | 22 | | each partner of a partnership, (iii) each member of a limited | 23 | | liability company, (iv) each director and officer of a publicly | 24 | | or non-publicly held corporation, (v) each stockholder of a | 25 | | non-publicly held corporation, (vi) each stockholder of 5% or | 26 | | more of a publicly held corporation, or (vii) each stockholder |
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| 1 | | of 5% or more in a parent or subsidiary corporation. | 2 | | (c) Each person seeking and possessing a license as a video | 3 | | gaming terminal manufacturer, distributor, supplier, operator, | 4 | | handler, licensed establishment, licensed truck stop | 5 | | establishment, licensed fraternal establishment, organization | 6 | | licensee, inter-track wagering location licensee, or licensed | 7 | | veterans establishment shall disclose the identity of every | 8 | | person, association, trust, corporation, or limited liability | 9 | | company having a greater than 1% direct or indirect pecuniary | 10 | | interest in the video gaming terminal operation for which the | 11 | | license is sought. If the disclosed entity is a trust, the | 12 | | application shall disclose the names and addresses of the | 13 | | beneficiaries; if a corporation, the names and addresses of all | 14 | | stockholders and directors; if a limited liability company, the | 15 | | names and addresses of all members; or if a partnership, the | 16 | | names and addresses of all partners, both general and limited. | 17 | | (d) No person may be licensed as a video gaming terminal | 18 | | manufacturer, distributor, supplier, operator, handler, | 19 | | licensed establishment, licensed truck stop establishment, | 20 | | licensed fraternal establishment, organization licensee, | 21 | | inter-track wagering location licensee, or licensed veterans | 22 | | establishment if that person has been found by the Board to: | 23 | | (1) have a background, including a criminal record, | 24 | | reputation, habits, social or business associations, or | 25 | | prior activities that pose a threat to the public interests | 26 | | of the State or to the security and integrity of video |
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| 1 | | gaming; | 2 | | (2) create or enhance the dangers of unsuitable, | 3 | | unfair, or illegal practices, methods, and activities in | 4 | | the conduct of video gaming; or | 5 | | (3) present questionable business practices and | 6 | | financial arrangements incidental to the conduct of video | 7 | | gaming activities. | 8 | | (e) Any applicant for any license under this Act has the | 9 | | burden of proving his or her qualifications to the satisfaction | 10 | | of the Board. The Board may adopt rules to establish additional | 11 | | qualifications and requirements to preserve the integrity and | 12 | | security of video gaming in this State. | 13 | | (f) A non-refundable application fee shall be paid at the | 14 | | time an
application for a license is filed with the Board in | 15 | | the following amounts:
| 16 | | (1) Manufacturer ..........................$5,000
| 17 | | (2) Distributor ...........................$5,000
| 18 | | (3) Terminal operator .....................$5,000
| 19 | | (4) Supplier ..............................$2,500
| 20 | | (5) Technician ..............................$100
| 21 | | (6) Terminal Handler ..............................$50 | 22 | | (g) The Board shall establish an
annual fee for each | 23 | | license not to exceed the following: | 24 | | (1) Manufacturer .........................$10,000
| 25 | | (2) Distributor ..........................$10,000
| 26 | | (3) Terminal operator .....................$5,000
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| 1 | | (4) Supplier ..............................$2,000
| 2 | | (5) Technician ..............................$100
| 3 | | (6) Licensed establishment, licensed truck stop
| 4 | | establishment, licensed fraternal establishment,
| 5 | | organization licensee, inter-track wagering location
| 6 | | licensee, or licensed veterans establishment ....$100
| 7 | | (7) Video gaming terminal ...................$100
| 8 | | (8) Terminal Handler ..............................$50
| 9 | | (h) A terminal operator and a licensed establishment, | 10 | | licensed truck stop establishment, licensed fraternal | 11 | | establishment, organization licensee, inter-track wagering | 12 | | location licensee,
or licensed veterans establishment shall | 13 | | equally split the fees specified in item (7) of subsection (g). | 14 | | (Source: P.A. 97-1150, eff. 1-25-13; 98-31, eff. 6-24-13; | 15 | | 98-587, eff. 8-27-13; 98-756, eff. 7-16-14.)
| 16 | | (230 ILCS 40/55)
| 17 | | Sec. 55. Precondition for licensed location. In all cases | 18 | | of
application for a licensed location,
to operate a video | 19 | | gaming terminal,
each licensed establishment, licensed
| 20 | | fraternal establishment, or licensed veterans
establishment
| 21 | | shall
possess a valid liquor license issued by the Illinois | 22 | | Liquor Control Commission
in effect at the time of application
| 23 | | and at all times thereafter during which a video
gaming | 24 | | terminal is made available to the public for play at that | 25 | | location. Video gaming terminals in a licensed location shall |
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| 1 | | be
operated only during the same hours of operation generally | 2 | | permitted to holders of a license under the Liquor Control Act | 3 | | of 1934 within the unit of local government in which they are | 4 | | located. Organization licensees and inter-track wagering | 5 | | location licensees may operate video gaming terminals if they | 6 | | hold an organization license or inter-track wagering location | 7 | | license issued by the Illinois Racing Board. A licensed truck | 8 | | stop establishment that does not hold a liquor license may | 9 | | operate video gaming terminals on a continuous basis. A | 10 | | licensed fraternal establishment or licensed veterans | 11 | | establishment that does not hold a liquor license may operate | 12 | | video gaming terminals if (i) the establishment is located in a | 13 | | county with a population between 6,500 and 7,000, based on the | 14 | | 2000 U.S. Census, (ii) the county prohibits by ordinance the | 15 | | sale of alcohol, and (iii) the establishment is in a portion of | 16 | | the county where the sale of alcohol is prohibited. A licensed | 17 | | fraternal establishment or licensed veterans establishment
| 18 | | that does not hold a liquor license may operate video gaming | 19 | | terminals
if (i) the establishment is located in a municipality | 20 | | within a county with a population
between 8,500 and 9,000 based | 21 | | on the 2000 U.S. Census and (ii) the
municipality or county | 22 | | prohibits or limits the sale of alcohol by ordinance in a way
| 23 | | that prohibits the establishment from selling alcohol.
| 24 | | (Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10; | 25 | | 97-594, eff. 8-26-11.) |
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| 1 | | (230 ILCS 40/58)
| 2 | | Sec. 58. Location of terminals. Video gaming terminals | 3 | | must be located
in an area restricted to persons over 21 years | 4 | | of age the entrance to which is within the view of at least one | 5 | | employee, who is over 21 years of age, of the
establishment in | 6 | | which they are located. The placement of video gaming terminals | 7 | | in licensed establishments, licensed truck stop | 8 | | establishments, licensed fraternal establishments, | 9 | | organization licensee locations, inter-track wagering location | 10 | | licensee locations, and licensed veterans establishments shall | 11 | | be subject to the rules promulgated by the Board pursuant to | 12 | | the 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 | 17 | | shall be collected by the Board.
| 18 | | (b) Of the tax collected under this Section, five-sixths | 19 | | shall be
deposited into the Capital Projects Fund and one-sixth | 20 | | shall be deposited into the Local Government Video Gaming | 21 | | Distributive Fund.
| 22 | | (c) Revenues generated from the play of video gaming | 23 | | terminals shall be
deposited by the terminal operator, who is | 24 | | responsible for tax payments, in
a specially created, separate | 25 | | bank account maintained by the video gaming
terminal operator
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| 1 | | to allow for electronic fund transfers of moneys for tax | 2 | | payment.
| 3 | | (d) Each licensed establishment, licensed truck stop | 4 | | establishment, licensed fraternal establishment, organization | 5 | | licensee, inter-track wagering location licensee,
and licensed | 6 | | veterans establishment shall maintain an adequate video gaming
| 7 | | fund, with the amount to be determined by the Board.
| 8 | | (e) The State's percentage of net terminal income shall be | 9 | | reported and remitted to the Board within 15 days after the | 10 | | 15th day of each month and within 15 days after the end of each | 11 | | month by the video terminal operator. A video terminal operator | 12 | | who falsely reports or fails to report the amount due required | 13 | | by this Section is guilty of a Class 4 felony and is subject to | 14 | | termination of his or her license by the Board. Each video | 15 | | terminal operator shall keep a record of net terminal income in | 16 | | such form as the Board may require. All payments not remitted | 17 | | when due shall be paid together with a penalty assessment on | 18 | | the unpaid balance at a rate of 1.5% per month. | 19 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
| 20 | | Section 10. The Criminal Code of 2012 is amended by | 21 | | changing Section 28-1 as follows:
| 22 | | (720 ILCS 5/28-1) (from Ch. 38, par. 28-1)
| 23 | | Sec. 28-1. Gambling.
| 24 | | (a) A person commits gambling when he or she:
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| 1 | | (1) knowingly plays a game of chance or skill for money | 2 | | or other thing of
value, unless excepted in subsection (b) | 3 | | of this Section;
| 4 | | (2) knowingly makes a wager upon the result of any | 5 | | game, contest, or any
political nomination, appointment or | 6 | | election;
| 7 | | (3) knowingly operates, keeps, owns, uses, purchases, | 8 | | exhibits, rents, sells,
bargains for the sale or lease of, | 9 | | manufactures or distributes any
gambling device;
| 10 | | (4) contracts to have or give himself or herself or | 11 | | another the option to buy
or sell, or contracts to buy or | 12 | | sell, at a future time, any grain or
other commodity | 13 | | whatsoever, or any stock or security of any company,
where | 14 | | it is at the time of making such contract intended by both | 15 | | parties
thereto that the contract to buy or sell, or the | 16 | | option, whenever
exercised, or the contract resulting | 17 | | therefrom, shall be settled, not by
the receipt or delivery | 18 | | of such property, but by the payment only of
differences in | 19 | | prices thereof; however, the issuance, purchase, sale,
| 20 | | exercise, endorsement or guarantee, by or through a person | 21 | | registered
with the Secretary of State pursuant to Section | 22 | | 8 of the Illinois
Securities Law of 1953, or by or through | 23 | | a person exempt from such
registration under said Section | 24 | | 8, of a put, call, or other option to
buy or sell | 25 | | securities which have been registered with the Secretary of
| 26 | | State or which are exempt from such registration under |
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| 1 | | Section 3 of the
Illinois Securities Law of 1953 is not | 2 | | gambling within the meaning of
this paragraph (4);
| 3 | | (5) knowingly owns or possesses any book, instrument or | 4 | | apparatus by
means of which bets or wagers have been, or | 5 | | are, recorded or registered,
or knowingly possesses any | 6 | | money which he has received in the course of
a bet or | 7 | | wager;
| 8 | | (6) knowingly sells pools upon the result of any game | 9 | | or contest of skill or
chance, political nomination, | 10 | | appointment or election;
| 11 | | (7) knowingly sets up or promotes any lottery or sells, | 12 | | offers to sell or
transfers any ticket or share for any | 13 | | lottery;
| 14 | | (8) knowingly sets up or promotes any policy game or | 15 | | sells, offers to sell or
knowingly possesses or transfers | 16 | | any policy ticket, slip, record,
document or other similar | 17 | | device;
| 18 | | (9) knowingly drafts, prints or publishes any lottery | 19 | | ticket or share,
or any policy ticket, slip, record, | 20 | | document or similar device, except for
such activity | 21 | | related to lotteries, bingo games and raffles authorized by
| 22 | | and conducted in accordance with the laws of Illinois or | 23 | | any other state or
foreign government;
| 24 | | (10) knowingly advertises any lottery or policy game, | 25 | | except for such
activity related to lotteries, bingo games | 26 | | and raffles authorized by and
conducted in accordance with |
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| 1 | | the laws of Illinois or any other state;
| 2 | | (11) knowingly transmits information as to wagers, | 3 | | betting odds, or
changes in betting odds by telephone, | 4 | | telegraph, radio, semaphore or
similar means; or knowingly | 5 | | installs or maintains equipment for the
transmission or | 6 | | receipt of such information; except that nothing in this
| 7 | | subdivision (11) prohibits transmission or receipt of such | 8 | | information
for use in news reporting of sporting events or | 9 | | contests; or
| 10 | | (12) knowingly establishes, maintains, or operates an | 11 | | Internet site that
permits a person to play a game of
| 12 | | chance or skill for money or other thing of value by means | 13 | | of the Internet or
to make a wager upon the
result of any | 14 | | game, contest, political nomination, appointment, or
| 15 | | election by means of the Internet. This item (12) does not | 16 | | apply to activities referenced in items (6) and (6.1) of | 17 | | subsection (b) of this Section.
| 18 | | (b) Participants in any of the following activities shall | 19 | | not be
convicted of gambling:
| 20 | | (1) Agreements to compensate for loss caused by the | 21 | | happening of
chance including without limitation contracts | 22 | | of indemnity or guaranty
and life or health or accident | 23 | | insurance.
| 24 | | (2) Offers of prizes, award or compensation to the | 25 | | actual
contestants in any bona fide contest for the | 26 | | determination of skill,
speed, strength or endurance or to |
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| 1 | | the owners of animals or vehicles
entered in such contest.
| 2 | | (3) Pari-mutuel betting as authorized by the law of | 3 | | this State.
| 4 | | (4) Manufacture of gambling devices, including the | 5 | | acquisition of
essential parts therefor and the assembly | 6 | | thereof, for transportation in
interstate or foreign | 7 | | commerce to any place outside this State when such
| 8 | | transportation is not prohibited by any applicable Federal | 9 | | law; or the
manufacture, distribution, or possession of | 10 | | video gaming terminals, as
defined in the Video Gaming Act, | 11 | | by manufacturers, distributors, and
terminal operators | 12 | | licensed to do so under the Video Gaming Act.
| 13 | | (5) The game commonly known as "bingo", when conducted | 14 | | in accordance
with the Bingo License and Tax Act.
| 15 | | (6) Lotteries when conducted by the State of Illinois | 16 | | in accordance
with the Illinois Lottery Law. This exemption | 17 | | includes any activity conducted by the Department of | 18 | | Revenue to sell lottery tickets pursuant to the provisions | 19 | | of the Illinois Lottery Law and its rules.
| 20 | | (6.1) The purchase of lottery tickets through the | 21 | | Internet for a lottery conducted by the State of Illinois | 22 | | under the program established in Section 7.12 of the | 23 | | Illinois Lottery Law.
| 24 | | (7) Possession of an antique slot machine that is | 25 | | neither used nor
intended to be used in the operation or | 26 | | promotion of any unlawful
gambling activity or enterprise. |
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| 1 | | For the purpose of this subparagraph
(b)(7), an antique | 2 | | slot machine is one manufactured 25 years ago or earlier.
| 3 | | (8) Raffles and poker runs when conducted in accordance | 4 | | with the Raffles and Poker Runs Act.
| 5 | | (9) Charitable games when conducted in accordance with | 6 | | the Charitable
Games Act.
| 7 | | (10) Pull tabs and jar games when conducted under the | 8 | | Illinois Pull
Tabs and Jar Games Act.
| 9 | | (11) Gambling games conducted on riverboats when
| 10 | | authorized by the Riverboat Gambling Act.
| 11 | | (12) Video gaming terminal games at a licensed | 12 | | establishment, licensed truck stop establishment,
licensed
| 13 | | fraternal establishment, organization licensee location, | 14 | | inter-track wagering location licensee location, or | 15 | | licensed veterans establishment when
conducted in | 16 | | accordance with the Video Gaming Act. | 17 | | (13) Games of skill or chance where money or other | 18 | | things of value can be won but no payment or purchase is | 19 | | required to participate. | 20 | | (14) Savings promotion raffles authorized under | 21 | | Section 5g of the Illinois Banking Act, Section 7008 of the | 22 | | Savings Bank Act, Section 42.7 of the Illinois Credit Union | 23 | | Act, Section 5136B of the National Bank Act (12 U.S.C. | 24 | | 25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C. | 25 | | 1463). | 26 | | (c) Sentence.
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| 1 | | Gambling is a
Class A misdemeanor. A second or
subsequent | 2 | | conviction under subsections (a)(3) through (a)(12),
is a Class | 3 | | 4 felony.
| 4 | | (d) Circumstantial evidence.
| 5 | | In prosecutions under
this
Section circumstantial evidence | 6 | | shall have the same validity and weight as
in any criminal | 7 | | prosecution.
| 8 | | (Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16 .)".
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