Bill Text: IL HB4125 | 2011-2012 | 97th General Assembly | Introduced

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Bill Title: Amends the Bingo License and Tax Act. Removes provisions that place limitations on the aggregate retail value of all prizes or merchandise awarded in any single day of bingo. Removes provisions that place limitations on the price paid for a single card under the license and the price for a single special game card. Provides that the number of bingo days conducted by a licensee under the Act is limited to 2 (instead of one) per week. Provides that no person or organization shall conduct a remote caller bingo game without a remote caller bingo license issued from the Department of Revenue. Sets forth certain restrictions on the conducting of a remote caller bingo game. Sets forth provisions concerning costs, fees, prizes, and proceeds.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2013-01-08 - Session Sine Die [HB4125 Detail]

Download: Illinois-2011-HB4125-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 HB4125 Introduced , by Rep. Daniel J. Burke SYNOPSIS AS INTRODUCED:
230 ILCS 25/1.1
230 ILCS 25/2 from Ch. 120, par. 1102
230 ILCS 25/2.5 new
Amends the Bingo License and Tax Act. Removes provisions that place limitations on the aggregate retail value of all prizes or merchandise awarded in any single day of bingo. Removes provisions that place limitations on the price paid for a single card under the license and the price for a single special game card. Provides that the number of bingo days conducted by a licensee under the Act is limited to 2 (instead of one) per week. Provides that no person or organization shall conduct a remote caller bingo game without a remote caller bingo license issued from the Department of Revenue. Sets forth certain restrictions on the conducting of a remote caller bingo game. Sets forth provisions concerning costs, fees, prizes, and proceeds.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning gaming.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Bingo License and Tax Act is amended by
changing Sections 1.1 and 2 and by adding Section 2.5 as
follows:
(230 ILCS 25/1.1)
Sec. 1.1. Definitions. For purposes of this Act, the
following definitions apply:
"Bingo" means a game in which each player has a card or
board for which a consideration has been paid, containing 5
horizontal rows of spaces, with each row except the central one
containing 5 figures. The central row has 4 figures with the
word "free" marked in the center space. "Bingo" includes games
that otherwise qualify under this paragraph, except for the use
of cards where the figures are not preprinted but are filled in
by the players. A player wins a game of bingo by completing a
preannounced combination of spaces or, in the absence of a
preannouncement of a combination of spaces, any combination of
5 spaces in a row, vertically, horizontally, or diagonally.
"Bingo equipment" means any equipment or machinery
designed or used for the play of bingo. "Bingo equipment" does
not include electronic equipment.

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"Charitable organization" means an organization or
institution organized and operated to benefit an indefinite
number of the public.
"Department" means the Department of Revenue.
"Educational organization" means an organization or
institution organized and operated to provide systematic
instruction in useful branches of learning by methods common to
schools and institutions of learning which compare favorably in
their scope and intensity with the course of study presented in
tax-supported schools.
"Fraternal organization" means an organization of persons
having a common interest that is organized and operated
exclusively to promote the welfare of its members and to
benefit the general public on a continuing and consistent
basis, including but not limited to ethnic organizations.
"Holiday" means any of the holidays listed in Section 17 of
the Promissory Note and Bank Holiday Act.
"Labor organization" means an organization composed of
labor unions or workers organized with the objectives of
betterment of the conditions of those engaged in such pursuit
and the development of a higher degree of efficiency in their
respective occupations.
"Licensed organization" means a qualified organization
that has obtained a license to conduct bingo in conformance
with the provisions of this Act.
"Limited license" means a license issued to an organization

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that is not a licensed organization, but that is otherwise
eligible for a regular license to conduct bingo. A limited
license authorizes the conduct of bingo at up to 2 indoor or
outdoor festivals during the calendar year for which the
license is issued for a maximum of 5 consecutive days on each
occasion.
"Non-profit organization" means an organization or
institution organized and conducted on a not-for-profit basis
with no personal profit inuring to anyone as a result of the
operation.
"Organization" means a corporation, agency, partnership,
association, firm, business or other entity consisting of 2 or
more persons joined by a common interest or purpose.
"Person" means any natural individual, corporation,
partnership, limited liability company, organization (as
defined in this Section), licensee under this Act, or
volunteer.
"Provider" means any person or organization, except a city,
village, or incorporated town that owns or leases premises to
an organization for the conduct of bingo.
"Regular license" means a license authorizing its holder to
conduct one session of bingo per week on the date and at the
time and location stated on the license.
"Religious organization" means any church, congregation,
society, or organization founded for the purpose of religious
worship.

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"Remote caller bingo game" means a game of bingo in which
(1) the numbers or symbols on randomly drawn plastic balls are
announced by a natural person present at the site where the
live game is conducted and (2) the organization conducting the
game of bingo uses audio and video technology to link any of
its in-state facilities for the purpose of transmitting the
remote calling of a live bingo game from a single location to
multiple locations owned, leased, or rented by that
organization.
"Senior citizens organization" means an organization or
association comprised of members of which substantially all are
individuals who are senior citizens, as defined in the Illinois
Act on the Aging, the primary purpose of which is to promote
the welfare of its members.
"Special games" means bingo games that may be designated as
such, played a maximum of 5 times during a bingo session and
are distinguished from regular games only by the maximum price
that may be charged for the bingo cards used.
"Special permit" means the ability of a licensee who
currently holds a license to be granted a permit to conduct
bingo at other premises or on other days not exceeding 5
consecutive days.
"Supplier" means any person, firm, or corporation that
sells, leases, or distributes to any organization licensed to
conduct bingo or to any licensed bingo supplier, cards, boards,
sheets, markers, pads and any other supplies, devices and

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equipment designed for use in the play of bingo.
"Veterans' organization" means an organization comprised
of members of which substantially all are individuals who are
veterans or spouses, widows, or widowers of veterans, the
primary purpose of which is to promote the welfare of its
members and to provide assistance to the general public in such
a way as to confer a public benefit.
"Volunteer" means a person recruited by an organization who
voluntarily performs services at a bingo event, including
participation in the management or operation of a game.
"Youth athletic organization" means an organization having
as its exclusive purpose the promotion and provision of
athletic activities for youth aged 18 and under.
(Source: P.A. 95-228, eff. 8-16-07.)
(230 ILCS 25/2) (from Ch. 120, par. 1102)
Sec. 2. The conducting of bingo is subject to the following
restrictions:
(1) The entire net proceeds from bingo play must be
exclusively devoted to the lawful purposes of the
organization permitted to conduct that game.
(2) (Blank).
(2.5) No person except a bona fide member or employee
of the sponsoring organization may participate in the
management or operation of bingo.
(3) No person may receive any remuneration or profit

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for participating in the management or operation of the
game, except that if an organization licensed under this
Act is associated with a school or other educational
institution, that school or institution may reduce tuition
or fees for a designated pupil based on participation in
the management or operation of the game by any member of
the organization. The extent to which tuition and fees are
reduced shall relate proportionately to the amount of time
volunteered by the member, as determined by the school or
other educational institution.
(4) (Blank). The aggregate retail value of all prizes
or merchandise awarded in any single day of bingo may not
exceed $2,250, except that in adjoining counties having
200,000 to 275,000 inhabitants each, and in counties which
are adjacent to either of such adjoining counties and are
adjacent to a total of not more than 2 counties in this
State, and in any municipality having 2,500 or more
inhabitants and within one mile of such adjoining and
adjacent counties having less than 25,000 inhabitants, 2
additional bingo games may be conducted after the $2,250
limit has been reached. The prize awarded for any one game,
including any game conducted after reaching the $2,250
limit as authorized in this paragraph (4), may not exceed
$500 cash or its equivalent.
(5) The number of games, including regular and special
games, may not exceed 25 in any one day, except that this

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restriction on the number of games shall not apply to bingo
conducted at the Illinois State Fair or any county fair
held in Illinois.
(6) The price paid for a single card under the license
may not exceed $1 and such card is valid for all regular
games on that day of bingo. A maximum of 5 special games
may be held on each bingo day, except that this restriction
on the number of special games shall not apply to bingo
conducted at the Illinois State Fair or any county fair
held in Illinois. The price for a single special game card
may not exceed 50 cents.
(7) The number of bingo days conducted by a licensee
under this Act, including any remote caller bingo games, is
limited to 2 one per week, except as follows:
(i) Bingo may be conducted in accordance with the terms
of a special operator's permit or limited license
issued under subdivision (7) or (8) of Section 1.3.
(ii) Bingo may be conducted at the Illinois State Fair
or any county fair held in Illinois under subdivision
(6) of Section 1.3.
(iii) A licensee which cancels a day of bingo because
of inclement weather or because the day is a holiday or
the eve of a holiday may, after giving notice to the
Department, conduct bingo on an additional date which
falls on a day of the week other than the day
authorized under the license.

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(8) A licensee may rent a premises on which to conduct
bingo only from an organization which is licensed as a
provider of premises or exempt from license requirements
under this Act. If the organization providing the premises
is a metropolitan exposition, auditorium, and office
building authority created by State law, a licensee may
enter into a rental agreement with the organization
authorizing the licensee and the organization to share the
gross proceeds of bingo games; however, the organization
shall not receive more than 50% of the gross proceeds.
(9) No person under the age of 18 years may play or
participate in the conducting of bingo. Any person under
the age of 18 years may be within the area where bingo is
being played only when accompanied by his parent or
guardian.
(10) The promoter of bingo games must have a
proprietary interest in the game promoted.
(11) Raffles or other forms of gambling prohibited by
law shall not be conducted on the premises where bingo is
being conducted, except that pull tabs and jar games
conducted under the Illinois Pull Tabs and Jar Games Act
may be conducted on the premises where bingo is being
conducted. Prizes awarded in pull tabs and jar games shall
not be included in the bingo prize limitation.
(12) Organizations may be issued a special permit or
limited license no more than 2 times in any year. An

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organization holding a special operator's permit or a
limited license may, as one of the occasions allowed by
such permit or license, conduct bingo for a maximum of 2
consecutive days. If an organization conducts bingo
pursuant to a limited license or special permit, then the
number of games played during each day may exceed 25, and
regular game cards need not be valid for all regular games.
If only noncash prizes are awarded during such occasions,
the prize limits stated in subdivision (4) of this Section
shall not apply, provided that the retail value of noncash
prizes for any single game shall not exceed $150.
(Source: P.A. 95-228, eff. 8-16-07.)
(230 ILCS 25/2.5 new)
Sec. 2.5. Remote caller bingo license; restrictions.
(a) No person or organization may conduct a remote caller
bingo game without a remote caller bingo license. The remote
caller bingo game license must list all of the locations
approved by the Department to conduct remote caller bingo games
under that license. The Department shall issue qualifications
for a remote caller bingo license and set forth an application
process.
(b) The conducting of a remote caller bingo game is subject
to the following restrictions:
(1) The drawing of each ball bearing a number or symbol
by the natural person calling the game shall be visible to

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all players as the ball is drawn, including through a
simultaneous live video feed at remote locations at which
players may participate in the game. The audio or video
technology used to link the facilities may include cable,
Internet, satellite, broadband, or telephone technology,
or any other means of electronic transmission that ensures
the secure, accurate, and simultaneous transmission of the
announcement of numbers or symbols in the game from the
location at which the game is called by a natural person to
the remote location or locations at which players may
participate in the game.
(2) The remote caller bingo licensee or members of its
organization shall not receive a profit, wage, or salary
from the remote caller bingo game.
(3) The remote caller bingo game shall be operated and
staffed only by the remote caller bingo licensee or members
of its organization with the exception of administrative,
managerial, technical, financial, or security personnel
who are employed by the remote caller bingo licensee at a
location participating in the remote caller bingo game.
Notwithstanding any other provision of law, an exclusive
agreement or other agreement between the remote caller
bingo licensee and other entities or persons to provide
services in the administration, management, or conduct of
the game shall not be considered a violation of the
prohibition against holding a legally cognizable financial

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interest in the conduct of the remote caller bingo game by
persons or entities other than the charitable
organization.
(4) The remote caller bingo licensee shall not have
overhead costs exceeding 25% of gross sales, except that
the limitations of this item (4) shall not apply to
one-time, non-recurring capital acquisitions. For purposes
of this item (4), overhead costs include, but are not
limited to, amounts paid for rent and equipment leasing and
the reasonable fees authorized to be paid to
administrative, managerial, technical, financial, and
security personnel employed by the remote caller bingo
licensee.
For the purpose of keeping its overhead costs below 25%
of gross sales, a remote caller bingo licensee may elect to
deduct all or a portion of the fees paid to financial
institutions for the use and processing of credit card
sales from the amount of gross revenues awarded for prizes.
These deducted fees for the use and processing of credit
card sales shall not be considered overhead costs.
Additionally, fees paid to financial institutions for the
use and processing of credit card sales shall not be
deducted from the proceeds retained by the charitable
organization.
(5) No person shall be allowed to participate in a
remote caller bingo game unless the person is physically

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present at the time and place where the remote caller bingo
game is being conducted. A person shall be deemed to be
physically present at the place where the remote caller
bingo game is being conducted if he or she is present at
any of the locations participating in the remote caller
bingo game in accordance with this Section.
(6) An organization shall only co-sponsor a remote
caller bingo game with one or more other organizations that
share the same type of membership category. Unaffiliated
organizations shall be limited to a maximum of 10 locations
for a remote caller bingo game and a maximum of 2 remote
caller bingo games per week.
(7) Every remote caller bingo game shall be played
until a winner is declared. The declared winner of a remote
caller bingo game shall provide his or her identifying
information and a mailing address to the onsite manager of
the remote caller bingo game. Prizes shall be paid only by
check if the prize money exceeds $999.99. The remote caller
bingo licensee may issue a check to the winner at the time
of the game or mail a check to the declared winner by
certified mail, return receipt requested, within 10 days
after the remote caller bingo game.
(8) The value of prizes awarded during the conduct of
any remote caller bingo game shall not exceed 40% of the
gross receipts for that game. If an authorized organization
elects to deduct fees paid for the use and processing of

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credit card sales from the amount of gross revenues for
that game awarded for prizes, then the maximum amount of
gross revenues that may be awarded for prizes shall not
exceed 40% of the gross receipts for that game, less the
amount of redirected fees paid for the use and processing
of credit card sales.
(9) All prize money exceeding State and federal
exemption limits on prize money shall be subject to income
tax reporting and withholding requirements under
applicable State and federal laws and regulations and those
reports and withholding shall be forwarded, within 10
business days after the remote caller bingo game, to the
appropriate State or federal agency on behalf of the
winner. A report shall accompany the amount withheld
identifying the person on whose behalf the money is being
sent. Any game interrupted by a transmission failure,
electrical outage, or act of God shall be considered void
in the location that was affected and the organization's
members, affiliates, and the State shall be held harmless.
A refund for a canceled game or games shall be provided to
the purchasers.
(10) The entire net proceeds, comprised of at least 35%
of the gross proceeds, from the remote caller bingo game
must be exclusively devoted to the lawful purposes of the
organization permitted to conduct that game.