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1 | AN ACT concerning gaming.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Video Gaming
Act is amended by changing | ||||||||||||||||||||||||||||
5 | Sections 25, 27, and 80 as follows:
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6 | (230 ILCS 40/25)
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7 | Sec. 25. Restriction of licensees.
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8 | (a) Manufacturer. A person may not be licensed as a | ||||||||||||||||||||||||||||
9 | manufacturer of a
video gaming terminal in Illinois unless the | ||||||||||||||||||||||||||||
10 | person has a valid
manufacturer's license issued
under this | ||||||||||||||||||||||||||||
11 | Act. A manufacturer may only sell video gaming terminals for | ||||||||||||||||||||||||||||
12 | use
in Illinois to
persons having a valid distributor's | ||||||||||||||||||||||||||||
13 | license.
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14 | (b) Distributor. A person may not sell, distribute, or | ||||||||||||||||||||||||||||
15 | lease
or market a video gaming terminal in Illinois unless the | ||||||||||||||||||||||||||||
16 | person has a valid
distributor's
license issued under this Act. | ||||||||||||||||||||||||||||
17 | A distributor may only sell video gaming
terminals for use in
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18 | Illinois to persons having a valid distributor's or terminal | ||||||||||||||||||||||||||||
19 | operator's
license.
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20 | (c) Terminal operator. A person may not own, maintain, or | ||||||||||||||||||||||||||||
21 | place a video gaming terminal unless he has a valid terminal | ||||||||||||||||||||||||||||
22 | operator's
license issued
under this Act. A terminal operator | ||||||||||||||||||||||||||||
23 | may only place video gaming terminals for
use in
Illinois in |
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1 | licensed establishments, licensed truck stop establishments, | ||||||
2 | licensed fraternal establishments,
and
licensed veterans | ||||||
3 | establishments.
No terminal operator may give anything of | ||||||
4 | value, including but not limited to
a loan or financing | ||||||
5 | arrangement, to a licensed establishment, licensed truck stop | ||||||
6 | establishment,
licensed fraternal establishment, or licensed | ||||||
7 | veterans establishment as
any incentive or inducement to locate | ||||||
8 | video terminals in that establishment.
Of the after-tax profits
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9 | from a video gaming terminal, 50% shall be paid to the terminal
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10 | operator and 50% shall be paid to the licensed establishment, | ||||||
11 | licensed truck stop establishment,
licensed fraternal | ||||||
12 | establishment, or
licensed veterans establishment, | ||||||
13 | notwithstanding any agreement to the contrary.
A video terminal | ||||||
14 | operator that violates one or more requirements of this | ||||||
15 | subsection is guilty of a Class 4 felony and is subject to | ||||||
16 | termination of his or her license by the Board.
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17 | (d) Licensed technician. A person may not service, | ||||||
18 | maintain, or repair a
video gaming terminal
in this State | ||||||
19 | unless he or she (1) has a valid technician's license issued
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20 | under this Act, (2) is a terminal operator, or (3) is employed | ||||||
21 | by a terminal
operator, distributor, or manufacturer.
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22 | (d-5) Licensed terminal handler. No person, including, but | ||||||
23 | not limited to, an employee or independent contractor working | ||||||
24 | for a manufacturer, distributor, supplier, technician, or | ||||||
25 | terminal operator licensed pursuant to this Act, shall have | ||||||
26 | possession or control of a video gaming terminal, or access to |
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1 | the inner workings of a video gaming terminal, unless that | ||||||
2 | person possesses a valid terminal handler's license issued | ||||||
3 | under this Act. | ||||||
4 | (e) Licensed establishment. No video gaming terminal may be | ||||||
5 | placed in any licensed establishment, licensed veterans | ||||||
6 | establishment, licensed truck stop establishment,
or licensed | ||||||
7 | fraternal establishment
unless the owner
or agent of the owner | ||||||
8 | of the licensed establishment, licensed veterans | ||||||
9 | establishment, licensed truck stop establishment, or licensed
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10 | fraternal establishment has entered into a
written use | ||||||
11 | agreement with the terminal operator for placement of the
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12 | terminals. A copy of the use agreement shall be on file in the | ||||||
13 | terminal
operator's place of business and available for | ||||||
14 | inspection by individuals
authorized by the Board. A licensed | ||||||
15 | establishment, licensed truck stop establishment, licensed | ||||||
16 | veterans establishment,
or
licensed
fraternal
establishment | ||||||
17 | may operate up to 5 video gaming terminals on its premises at | ||||||
18 | any
time.
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19 | (f) (Blank).
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20 | (g) Financial interest restrictions.
As used in this Act, | ||||||
21 | "substantial interest" in a partnership, a corporation, an
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22 | organization, an association, a business, or a limited | ||||||
23 | liability company means:
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24 | (A) When, with respect to a sole proprietorship, an | ||||||
25 | individual or
his or her spouse owns, operates, manages, or | ||||||
26 | conducts, directly
or indirectly, the organization, |
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1 | association, or business, or any part thereof;
or
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2 | (B) When, with respect to a partnership, the individual | ||||||
3 | or his or
her spouse shares in any of the profits, or | ||||||
4 | potential profits,
of the partnership activities; or
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5 | (C) When, with respect to a corporation, an individual | ||||||
6 | or his or her
spouse is an officer or director, or the | ||||||
7 | individual or his or her spouse is a holder, directly or | ||||||
8 | beneficially, of 5% or more of any class
of stock of the | ||||||
9 | corporation; or
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10 | (D) When, with respect to an organization not covered | ||||||
11 | in (A), (B) or
(C) above, an individual or his or her | ||||||
12 | spouse is an officer or manages the
business affairs, or | ||||||
13 | the individual or his or her spouse is the
owner of or | ||||||
14 | otherwise controls 10% or more of the assets of the | ||||||
15 | organization;
or
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16 | (E) When an individual or his or her spouse furnishes
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17 | 5% or more of the capital, whether in cash, goods, or | ||||||
18 | services, for the
operation of any business, association, | ||||||
19 | or organization during any calendar
year; or | ||||||
20 | (F) When, with respect to a limited liability company, | ||||||
21 | an individual or his or her
spouse is a member, or the | ||||||
22 | individual or his or her spouse is a holder, directly or | ||||||
23 | beneficially, of 5% or more of the membership interest of | ||||||
24 | the limited liability company.
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25 | For purposes of this subsection (g), "individual" includes | ||||||
26 | all individuals or their spouses whose combined interest would |
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1 | qualify as a substantial interest under this subsection (g) and | ||||||
2 | whose activities with respect to an organization, association, | ||||||
3 | or business are so closely aligned or coordinated as to | ||||||
4 | constitute the activities of a single entity. | ||||||
5 | (h) Location restriction. A licensed establishment, | ||||||
6 | licensed truck stop establishment, licensed
fraternal
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7 | establishment, or licensed veterans establishment that is (i) | ||||||
8 | located within 1,000
feet of a facility operated by an | ||||||
9 | organization licensee licensed under the Illinois Horse Racing | ||||||
10 | Act of 1975 or the home dock of a riverboat licensed under the | ||||||
11 | Riverboat
Gambling Act or (ii) located within 100 feet of a | ||||||
12 | school or a place of worship under the Religious Corporation | ||||||
13 | Act, is ineligible to operate a video gaming terminal. The | ||||||
14 | location restrictions in this subsection (h) do not apply if | ||||||
15 | (A) a facility operated by an organization licensee, a school, | ||||||
16 | or a place of worship moves to or is established within the | ||||||
17 | restricted area after a licensed establishment, licensed truck | ||||||
18 | stop establishment, licensed fraternal establishment, or | ||||||
19 | licensed veterans establishment becomes licensed under this | ||||||
20 | Act or (B) a school or place of worship moves to or is | ||||||
21 | established within the restricted area after a licensed | ||||||
22 | establishment, licensed truck stop establishment, licensed | ||||||
23 | fraternal establishment, or licensed veterans establishment | ||||||
24 | obtains its original liquor license. For the purpose of this | ||||||
25 | subsection, "school" means an elementary or secondary public | ||||||
26 | school, or an elementary or secondary private school registered |
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1 | with or recognized by the State Board of Education. | ||||||
2 | Notwithstanding the provisions of this subsection (h), the | ||||||
3 | Board may waive the requirement that a licensed establishment, | ||||||
4 | licensed truck stop establishment, licensed fraternal | ||||||
5 | establishment, or licensed veterans establishment not be | ||||||
6 | located within 1,000 feet from a facility operated by an | ||||||
7 | organization licensee licensed under the Illinois Horse Racing | ||||||
8 | Act of 1975 or the home dock of a riverboat licensed under the | ||||||
9 | Riverboat Gambling Act. The Board shall not grant such waiver | ||||||
10 | if there is any common ownership or control, shared business | ||||||
11 | activity, or contractual arrangement of any type between the | ||||||
12 | establishment and the organization licensee or owners licensee | ||||||
13 | of a riverboat. The Board shall adopt rules to implement the | ||||||
14 | provisions of this paragraph. | ||||||
15 | (h-5) Restrictions on licenses in malls. The Board shall | ||||||
16 | not grant an application to become a licensed video gaming | ||||||
17 | location if the Board determines that granting the application | ||||||
18 | would more likely than not cause a terminal operator, | ||||||
19 | individually or in combination with other terminal operators, | ||||||
20 | licensed video gaming location, or other person or entity, to | ||||||
21 | operate the video gaming terminals in 2 or more licensed video | ||||||
22 | gaming locations as a single video gaming operation. | ||||||
23 | (1) In making determinations under this subsection | ||||||
24 | (h-5), factors to be considered by the Board shall include, | ||||||
25 | but not be limited to, the following: | ||||||
26 | (A) the physical aspects of the location; |
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1 | (B) the ownership, control, or management of the | ||||||
2 | location; | ||||||
3 | (C) any arrangements, understandings, or | ||||||
4 | agreements, written or otherwise, among or involving | ||||||
5 | any persons or entities that involve the conducting of | ||||||
6 | any video gaming business or the sharing of costs or | ||||||
7 | revenues; and | ||||||
8 | (D) the manner in which any terminal operator or | ||||||
9 | other related entity markets, advertises, or otherwise | ||||||
10 | describes any location or locations to any other person | ||||||
11 | or entity or to the public. | ||||||
12 | (2) The Board shall presume, subject to rebuttal, that | ||||||
13 | the granting of an application to become a licensed video | ||||||
14 | gaming location within a mall will cause a terminal | ||||||
15 | operator, individually or in combination with other | ||||||
16 | persons or entities, to operate the video gaming terminals | ||||||
17 | in 2 or more licensed video gaming locations as a single | ||||||
18 | video gaming operation if the Board determines that | ||||||
19 | granting the license would create a local concentration of | ||||||
20 | licensed video gaming locations. | ||||||
21 | For the purposes of this subsection (h-5): | ||||||
22 | "Mall" means a building, or adjoining or connected | ||||||
23 | buildings, containing 4 or more separate locations. | ||||||
24 | "Video gaming operation" means the conducting of video | ||||||
25 | gaming and all related activities. | ||||||
26 | "Location" means a space within a mall containing a |
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1 | separate business, a place for a separate business, or a place | ||||||
2 | subject to a separate leasing arrangement by the mall owner. | ||||||
3 | "Licensed video gaming location" means a licensed | ||||||
4 | establishment, licensed fraternal establishment, licensed | ||||||
5 | veterans establishment, or licensed truck stop. | ||||||
6 | "Local concentration of licensed video gaming locations" | ||||||
7 | means that the combined number of licensed video gaming | ||||||
8 | locations within a mall exceed half of the separate locations | ||||||
9 | within the mall. | ||||||
10 | (i) Undue economic concentration. In addition to | ||||||
11 | considering all other requirements under this Act, in deciding | ||||||
12 | whether to approve the operation of video gaming terminals by a | ||||||
13 | terminal operator in a location, the Board shall consider the | ||||||
14 | impact of any economic concentration of such operation of video | ||||||
15 | gaming terminals. The Board shall not allow a terminal operator | ||||||
16 | to operate video gaming terminals if the Board determines such | ||||||
17 | operation will result in undue economic concentration. For | ||||||
18 | purposes of this Section, "undue economic concentration" means | ||||||
19 | that a terminal operator would have such actual or potential | ||||||
20 | influence over video gaming terminals in Illinois as to: | ||||||
21 | (1) substantially impede or suppress competition among | ||||||
22 | terminal operators; | ||||||
23 | (2) adversely impact the economic stability of the | ||||||
24 | video gaming industry in Illinois; or | ||||||
25 | (3) negatively impact the purposes of the Video Gaming | ||||||
26 | Act. |
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1 | The Board shall adopt rules concerning undue economic | ||||||
2 | concentration with respect to the operation of video gaming | ||||||
3 | terminals in Illinois. The rules shall include, but not be | ||||||
4 | limited to, (i) limitations on the number of video gaming | ||||||
5 | terminals operated by any terminal operator within a defined | ||||||
6 | geographic radius and (ii) guidelines on the discontinuation of | ||||||
7 | operation of any such video gaming terminals the Board | ||||||
8 | determines will cause undue economic concentration.
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9 | (j) The provisions of the Illinois Antitrust Act are fully | ||||||
10 | and equally applicable to the activities of any licensee under | ||||||
11 | this Act.
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12 | (Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77, | ||||||
13 | eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
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14 | (230 ILCS 40/27)
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15 | Sec. 27. Prohibition or limitation of video gaming by | ||||||
16 | political subdivision. | ||||||
17 | (a) A
municipality may
pass an ordinance prohibiting video | ||||||
18 | gaming within the corporate limits of the
municipality.
A | ||||||
19 | county board may, for the unincorporated area of the county, | ||||||
20 | pass an
ordinance prohibiting video gaming within the | ||||||
21 | unincorporated area of the
county.
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22 | (b) A home rule municipality, or a home rule county with | ||||||
23 | respect to unincorporated portions of the county, may impose | ||||||
24 | separate requirements on video gaming that provide sources of | ||||||
25 | municipal or county revenue or impose limitations on video |
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1 | gaming more restrictive than those provided under this Act. | ||||||
2 | These requirements may include the following: | ||||||
3 | (1) license fees; | ||||||
4 | (2) occupation taxes; | ||||||
5 | (3) licensing requirements; | ||||||
6 | (4) limitations on hours of video gaming terminal play | ||||||
7 | more restrictive than those provided under the liquor | ||||||
8 | license of a licensed establishment, licensed veterans | ||||||
9 | organization, or licensed fraternal organization; | ||||||
10 | (5) limitations on the numbers of video gaming | ||||||
11 | terminals within a licensed establishment, licensed | ||||||
12 | veterans organization, licensed fraternal organization, or | ||||||
13 | licensed truck stop; | ||||||
14 | (6) limitations on the total number of licensed | ||||||
15 | establishments, licensed veterans organizations, licensed | ||||||
16 | fraternal organizations, or licensed truck stops allowed | ||||||
17 | within the municipality or county, or a specific portion of | ||||||
18 | the municipality or county; | ||||||
19 | (7) limitations on hours of video gaming play; | ||||||
20 | (8) zoning to limit the areas within a municipality or | ||||||
21 | county where video gaming is permitted; or | ||||||
22 | (9) other requirements intended to promote safety, | ||||||
23 | morals, health, or welfare within the municipality or | ||||||
24 | county. | ||||||
25 | (Source: P.A. 96-34, eff. 7-13-09.)
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1 | (230 ILCS 40/80)
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2 | Sec. 80. Applicability of Illinois Riverboat Gambling Act. | ||||||
3 | The provisions of the Illinois Riverboat Gambling Act, and all | ||||||
4 | rules promulgated thereunder, shall apply to the Video Gaming | ||||||
5 | Act, except where there is a conflict between the 2 Acts. All | ||||||
6 | current supplier licensees under the Riverboat Gambling Act | ||||||
7 | shall be entitled to licensure under the Video Gaming Act as | ||||||
8 | manufacturers, distributors, or suppliers without additional | ||||||
9 | Board investigation or approval, except by vote of the Board; | ||||||
10 | however, they are required to pay application and annual fees | ||||||
11 | under this Act. All provisions of the Uniform Penalty and | ||||||
12 | Interest Act shall apply, as far as practicable, to the subject | ||||||
13 | matter of this Act to the same extent as if such provisions | ||||||
14 | were included herein.
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15 | (Source: P.A. 96-37, eff. 7-13-09.)
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