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| Public Act 098-0112 | ||||
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AN ACT concerning gaming.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Video Gaming
Act is amended by changing | ||||
Section 25 as follows:
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(230 ILCS 40/25)
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Sec. 25. Restriction of licensees.
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(a) Manufacturer. A person may not be licensed as a | ||||
manufacturer of a
video gaming terminal in Illinois unless the | ||||
person has a valid
manufacturer's license issued
under this | ||||
Act. A manufacturer may only sell video gaming terminals for | ||||
use
in Illinois to
persons having a valid distributor's | ||||
license.
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(b) Distributor. A person may not sell, distribute, or | ||||
lease
or market a video gaming terminal in Illinois unless the | ||||
person has a valid
distributor's
license issued under this Act. | ||||
A distributor may only sell video gaming
terminals for use in
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Illinois to persons having a valid distributor's or terminal | ||||
operator's
license.
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(c) Terminal operator. A person may not own, maintain, or | ||||
place a video gaming terminal unless he has a valid terminal | ||||
operator's
license issued
under this Act. A terminal operator | ||||
may only place video gaming terminals for
use in
Illinois in | ||||
licensed establishments, licensed truck stop establishments, | ||
licensed fraternal establishments,
and
licensed veterans | ||
establishments.
No terminal operator may give anything of | ||
value, including but not limited to
a loan or financing | ||
arrangement, to a licensed establishment, licensed truck stop | ||
establishment,
licensed fraternal establishment, or licensed | ||
veterans establishment as
any incentive or inducement to locate | ||
video terminals in that establishment.
Of the after-tax profits
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from a video gaming terminal, 50% shall be paid to the terminal
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operator and 50% shall be paid to the licensed establishment, | ||
licensed truck stop establishment,
licensed fraternal | ||
establishment, or
licensed veterans establishment, | ||
notwithstanding any agreement to the contrary.
A video terminal | ||
operator that violates one or more requirements of this | ||
subsection is guilty of a Class 4 felony and is subject to | ||
termination of his or her license by the Board.
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(d) Licensed technician. A person may not service, | ||
maintain, or repair a
video gaming terminal
in this State | ||
unless he or she (1) has a valid technician's license issued
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under this Act, (2) is a terminal operator, or (3) is employed | ||
by a terminal
operator, distributor, or manufacturer.
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(d-5) Licensed terminal handler. No person, including, but | ||
not limited to, an employee or independent contractor working | ||
for a manufacturer, distributor, supplier, technician, or | ||
terminal operator licensed pursuant to this Act, shall have | ||
possession or control of a video gaming terminal, or access to | ||
the inner workings of a video gaming terminal, unless that | ||
person possesses a valid terminal handler's license issued | ||
under this Act. | ||
(e) Licensed establishment. No video gaming terminal may be | ||
placed in any licensed establishment, licensed veterans | ||
establishment, licensed truck stop establishment,
or licensed | ||
fraternal establishment
unless the owner
or agent of the owner | ||
of the licensed establishment, licensed veterans | ||
establishment, licensed truck stop establishment, or licensed
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fraternal establishment has entered into a
written use | ||
agreement with the terminal operator for placement of the
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terminals. A copy of the use agreement shall be on file in the | ||
terminal
operator's place of business and available for | ||
inspection by individuals
authorized by the Board. A licensed | ||
establishment, licensed truck stop establishment, licensed | ||
veterans establishment,
or
licensed
fraternal
establishment | ||
may operate up to 5 video gaming terminals on its premises at | ||
any
time.
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(f) (Blank).
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(g) Financial interest restrictions.
As used in this Act, | ||
"substantial interest" in a partnership, a corporation, an
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organization, an association, a business, or a limited | ||
liability company means:
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(A) When, with respect to a sole proprietorship, an | ||
individual or
his or her spouse owns, operates, manages, or | ||
conducts, directly
or indirectly, the organization, | ||
association, or business, or any part thereof;
or
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(B) When, with respect to a partnership, the individual | ||
or his or
her spouse shares in any of the profits, or | ||
potential profits,
of the partnership activities; or
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(C) When, with respect to a corporation, an individual | ||
or his or her
spouse is an officer or director, or the | ||
individual or his or her spouse is a holder, directly or | ||
beneficially, of 5% or more of any class
of stock of the | ||
corporation; or
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(D) When, with respect to an organization not covered | ||
in (A), (B) or
(C) above, an individual or his or her | ||
spouse is an officer or manages the
business affairs, or | ||
the individual or his or her spouse is the
owner of or | ||
otherwise controls 10% or more of the assets of the | ||
organization;
or
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(E) When an individual or his or her spouse furnishes
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5% or more of the capital, whether in cash, goods, or | ||
services, for the
operation of any business, association, | ||
or organization during any calendar
year; or | ||
(F) When, with respect to a limited liability company, | ||
an individual or his or her
spouse is a member, or the | ||
individual or his or her spouse is a holder, directly or | ||
beneficially, of 5% or more of the membership interest of | ||
the limited liability company.
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For purposes of this subsection (g), "individual" includes | ||
all individuals or their spouses whose combined interest would | ||
qualify as a substantial interest under this subsection (g) and | ||
whose activities with respect to an organization, association, | ||
or business are so closely aligned or coordinated as to | ||
constitute the activities of a single entity. | ||
(h) Location restriction. A licensed establishment, | ||
licensed truck stop establishment, licensed
fraternal
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establishment, or licensed veterans establishment that is (i) | ||
located within 1,000
feet of a facility operated by an | ||
organization licensee or an inter-track wagering licensee | ||
licensed under the Illinois Horse Racing Act of 1975 or the | ||
home dock of a riverboat licensed under the Riverboat
Gambling | ||
Act or (ii) located within 100 feet of a school or a place of | ||
worship under the Religious Corporation Act, is ineligible to | ||
operate a video gaming terminal. The location restrictions in | ||
this subsection (h) do not apply if a facility operated by an | ||
organization licensee, an inter-track wagering licensee, or an | ||
inter-track wagering location licensee, a school, or a place of | ||
worship moves to or is established within the restricted area | ||
after a licensed establishment, licensed truck stop | ||
establishment, licensed fraternal establishment, or licensed | ||
veterans establishment becomes licensed under this Act. For the | ||
purpose of this subsection, "school" means an elementary or | ||
secondary public school, or an elementary or secondary private | ||
school registered with or recognized by the State Board of | ||
Education. | ||
Notwithstanding the provisions of this subsection (h), the | ||
Board may waive the requirement that a licensed establishment, | ||
licensed truck stop establishment, licensed fraternal | ||
establishment, or licensed veterans establishment not be | ||
located within 1,000 feet from a facility operated by an | ||
organization licensee or , an inter-track wagering licensee, or | ||
an inter-track wagering location licensee licensed under the | ||
Illinois Horse Racing Act of 1975 or the home dock of a | ||
riverboat licensed under the Riverboat Gambling Act. The Board | ||
shall not grant such waiver if there is any common ownership or | ||
control, shared business activity, or contractual arrangement | ||
of any type between the establishment and the organization | ||
licensee, inter-track wagering licensee, inter-track wagering | ||
location licensee, or owners licensee of a riverboat. The Board | ||
shall adopt rules to implement the provisions of this | ||
paragraph. | ||
(i) Undue economic concentration. In addition to | ||
considering all other requirements under this Act, in deciding | ||
whether to approve the operation of video gaming terminals by a | ||
terminal operator in a location, the Board shall consider the | ||
impact of any economic concentration of such operation of video | ||
gaming terminals. The Board shall not allow a terminal operator | ||
to operate video gaming terminals if the Board determines such | ||
operation will result in undue economic concentration. For | ||
purposes of this Section, "undue economic concentration" means | ||
that a terminal operator would have such actual or potential | ||
influence over video gaming terminals in Illinois as to: | ||
(1) substantially impede or suppress competition among | ||
terminal operators; | ||
(2) adversely impact the economic stability of the | ||
video gaming industry in Illinois; or | ||
(3) negatively impact the purposes of the Video Gaming | ||
Act. | ||
The Board shall adopt rules concerning undue economic | ||
concentration with respect to the operation of video gaming | ||
terminals in Illinois. The rules shall include, but not be | ||
limited to, (i) limitations on the number of video gaming | ||
terminals operated by any terminal operator within a defined | ||
geographic radius and (ii) guidelines on the discontinuation of | ||
operation of any such video gaming terminals the Board | ||
determines will cause undue economic concentration.
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(j) The provisions of the Illinois Antitrust Act are fully | ||
and equally applicable to the activities of any licensee under | ||
this Act.
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(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, | ||
eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1410, eff. 7-30-10; | ||
96-1479, eff. 8-23-10; 97-333, eff. 8-12-11.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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