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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 | Section 25 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. A licensed truck stop establishment may operate up to | ||||||
19 | 10 video gaming terminals on its premises at any time.
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20 | (f) (Blank).
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21 | (g) Financial interest restrictions.
As used in this Act, | ||||||
22 | "substantial interest" in a partnership, a corporation, an
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23 | organization, an association, a business, or a limited | ||||||
24 | liability company means:
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25 | (A) When, with respect to a sole proprietorship, an | ||||||
26 | individual or
his or her spouse owns, operates, manages, or |
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1 | conducts, directly
or indirectly, the organization, | ||||||
2 | association, or business, or any part thereof;
or
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3 | (B) When, with respect to a partnership, the individual | ||||||
4 | or his or
her spouse shares in any of the profits, or | ||||||
5 | potential profits,
of the partnership activities; or
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6 | (C) When, with respect to a corporation, an individual | ||||||
7 | or his or her
spouse is an officer or director, or the | ||||||
8 | individual or his or her spouse is a holder, directly or | ||||||
9 | beneficially, of 5% or more of any class
of stock of the | ||||||
10 | corporation; or
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11 | (D) When, with respect to an organization not covered | ||||||
12 | in (A), (B) or
(C) above, an individual or his or her | ||||||
13 | spouse is an officer or manages the
business affairs, or | ||||||
14 | the individual or his or her spouse is the
owner of or | ||||||
15 | otherwise controls 10% or more of the assets of the | ||||||
16 | organization;
or
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17 | (E) When an individual or his or her spouse furnishes
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18 | 5% or more of the capital, whether in cash, goods, or | ||||||
19 | services, for the
operation of any business, association, | ||||||
20 | or organization during any calendar
year; or | ||||||
21 | (F) When, with respect to a limited liability company, | ||||||
22 | an individual or his or her
spouse is a member, or the | ||||||
23 | individual or his or her spouse is a holder, directly or | ||||||
24 | beneficially, of 5% or more of the membership interest of | ||||||
25 | the limited liability company.
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26 | For purposes of this subsection (g), "individual" includes |
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1 | all individuals or their spouses whose combined interest would | ||||||
2 | qualify as a substantial interest under this subsection (g) and | ||||||
3 | whose activities with respect to an organization, association, | ||||||
4 | or business are so closely aligned or coordinated as to | ||||||
5 | constitute the activities of a single entity. | ||||||
6 | (h) Location restriction. A licensed establishment, | ||||||
7 | licensed truck stop establishment, licensed
fraternal
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8 | establishment, or licensed veterans establishment that is (i) | ||||||
9 | located within 1,000
feet of a facility operated by an | ||||||
10 | organization licensee licensed under the Illinois Horse Racing | ||||||
11 | Act of 1975 or the home dock of a riverboat licensed under the | ||||||
12 | Riverboat
Gambling Act or (ii) located within 100 feet of a | ||||||
13 | school or a place of worship under the Religious Corporation | ||||||
14 | Act, is ineligible to operate a video gaming terminal. The | ||||||
15 | location restrictions in this subsection (h) do not apply if | ||||||
16 | (A) a facility operated by an organization licensee, a school, | ||||||
17 | or a place of worship moves to or is established within the | ||||||
18 | restricted area after a licensed establishment, licensed truck | ||||||
19 | stop establishment, licensed fraternal establishment, or | ||||||
20 | licensed veterans establishment becomes licensed under this | ||||||
21 | Act or (B) a school or place of worship moves to or is | ||||||
22 | established within the restricted area after a licensed | ||||||
23 | establishment, licensed truck stop establishment, licensed | ||||||
24 | fraternal establishment, or licensed veterans establishment | ||||||
25 | obtains its original liquor license. For the purpose of this | ||||||
26 | subsection, "school" means an elementary or secondary public |
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1 | school, or an elementary or secondary private school registered | ||||||
2 | with or recognized by the State Board of Education. | ||||||
3 | Notwithstanding the provisions of this subsection (h), the | ||||||
4 | Board may waive the requirement that a licensed establishment, | ||||||
5 | licensed truck stop establishment, licensed fraternal | ||||||
6 | establishment, or licensed veterans establishment not be | ||||||
7 | located within 1,000 feet from a facility operated by an | ||||||
8 | organization licensee or licensed under the Illinois Horse | ||||||
9 | Racing Act of 1975 or the home dock of a riverboat licensed | ||||||
10 | under the Riverboat Gambling Act. The Board shall not grant | ||||||
11 | such waiver if there is any common ownership or control, shared | ||||||
12 | business activity, or contractual arrangement of any type | ||||||
13 | between the establishment and the organization licensee or | ||||||
14 | owners licensee of a riverboat. The Board shall adopt rules to | ||||||
15 | implement the provisions of this paragraph. | ||||||
16 | (i) Undue economic concentration. In addition to | ||||||
17 | considering all other requirements under this Act, in deciding | ||||||
18 | whether to approve the operation of video gaming terminals by a | ||||||
19 | terminal operator in a location, the Board shall consider the | ||||||
20 | impact of any economic concentration of such operation of video | ||||||
21 | gaming terminals. The Board shall not allow a terminal operator | ||||||
22 | to operate video gaming terminals if the Board determines such | ||||||
23 | operation will result in undue economic concentration. For | ||||||
24 | purposes of this Section, "undue economic concentration" means | ||||||
25 | that a terminal operator would have such actual or potential | ||||||
26 | influence over video gaming terminals in Illinois as to: |
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1 | (1) substantially impede or suppress competition among | ||||||
2 | terminal operators; | ||||||
3 | (2) adversely impact the economic stability of the | ||||||
4 | video gaming industry in Illinois; or | ||||||
5 | (3) negatively impact the purposes of the Video Gaming | ||||||
6 | Act. | ||||||
7 | The Board shall adopt rules concerning undue economic | ||||||
8 | concentration with respect to the operation of video gaming | ||||||
9 | terminals in Illinois. The rules shall include, but not be | ||||||
10 | limited to, (i) limitations on the number of video gaming | ||||||
11 | terminals operated by any terminal operator within a defined | ||||||
12 | geographic radius and (ii) guidelines on the discontinuation of | ||||||
13 | operation of any such video gaming terminals the Board | ||||||
14 | determines will cause undue economic concentration.
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15 | (j) The provisions of the Illinois Antitrust Act are fully | ||||||
16 | and equally applicable to the activities of any licensee under | ||||||
17 | this Act.
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18 | (Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77, | ||||||
19 | eff. 7-15-13; 98-112, eff. 7-26-13; revised 10-17-13.)
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