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Public Act 098-0077
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| SB0070 Enrolled | LRB098 05813 AMC 35852 b |
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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 |
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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 |
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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, |
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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 |
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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) 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 or (B) a |
school or 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 obtains its original liquor |
license. For the purpose of this subsection, "school" means an |
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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, 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 |
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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. |