Bill Amendment: IL SB0304 | 2015-2016 | 99th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: GAMING-TECH

Status: 2016-07-31 - Senate Floor Amendment No. 1 Pursuant to Senate Rule 3-9(b) / Referred to Assignments [SB0304 Detail]

Download: Illinois-2015-SB0304-Senate_Amendment_001.html

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Sen. Terry Link

Filed: 5/25/2016

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AMENDMENT TO SENATE BILL 304
AMENDMENT NO. ______. Amend Senate Bill 304 by replacing
everything after the enacting clause with the following:
"Section 5. The Video Gaming Act is amended by changing
Sections 5, 25, 30, 45, and 60 as follows:
(230 ILCS 40/5)
Sec. 5. Definitions. As used in this Act:
"Board" means the Illinois Gaming Board.
"Credit" means one, 5, 10, or 25 cents either won or
purchased by a player.
"Distributor" means an individual, partnership,
corporation, or limited liability company licensed under this
Act to buy, sell, lease, or distribute video gaming terminals
or major components or parts of video gaming terminals to or
from terminal operators.
"Electronic card" means a card purchased from a licensed

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establishment, licensed fraternal establishment, licensed
veterans establishment, or licensed truck stop establishment
for use in that establishment as a substitute for cash in the
conduct of gaming on a video gaming terminal.
"Electronic voucher" means a voucher printed by an
electronic video game machine that is redeemable in the
licensed establishment for which it was issued.
"Terminal operator" means an individual, partnership,
corporation, or limited liability company that is licensed
under this Act and that owns, services, and maintains video
gaming terminals for placement in licensed establishments,
licensed truck stop establishments, licensed fraternal
establishments, or licensed veterans establishments.
"Licensed technician" means an individual who is licensed
under this Act to repair, service, and maintain video gaming
terminals.
"Licensed terminal handler" means a person, including but
not limited to an employee or independent contractor working
for a manufacturer, distributor, supplier, technician, or
terminal operator, who is licensed under this Act to possess or
control a video gaming terminal or to have access to the inner
workings of a video gaming terminal. A licensed terminal
handler does not include an individual, partnership,
corporation, or limited liability company defined as a
manufacturer, distributor, supplier, technician, or terminal
operator under this Act.

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"Manufacturer" means an individual, partnership,
corporation, or limited liability company that is licensed
under this Act and that manufactures or assembles video gaming
terminals.
"Supplier" means an individual, partnership, corporation,
or limited liability company that is licensed under this Act to
supply major components or parts to video gaming terminals to
licensed terminal operators.
"Net terminal income" means money put into a video gaming
terminal minus credits paid out to players.
"Video gaming terminal" means any electronic video game
machine that, upon insertion of cash, electronic cards or
vouchers, or any combination thereof, is available to play or
simulate the play of a video game, including but not limited to
video poker, line up, and blackjack, as authorized by the Board
utilizing a video display and microprocessors in which the
player may receive free games or credits that can be redeemed
for cash. The term does not include a machine that directly
dispenses coins, cash, or tokens or is for amusement purposes
only.
"Licensed establishment" means any licensed retail
establishment where alcoholic liquor is drawn, poured, mixed,
or otherwise served for consumption on the premises, whether
the establishment operates on a nonprofit or for-profit basis.
"Licensed establishment" includes any such establishment that
has a contractual relationship with an inter-track wagering

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location licensee licensed under the Illinois Horse Racing Act
of 1975, provided any contractual relationship shall not
include any transfer or offer of revenue from the operation of
video gaming under this Act to any licensee licensed under the
Illinois Horse Racing Act of 1975. Provided, however, that the
licensed establishment that has such a contractual
relationship with an inter-track wagering location licensee
may not, itself, be (i) an inter-track wagering location
licensee, (ii) the corporate parent or subsidiary of any
licensee licensed under the Illinois Horse Racing Act of 1975,
or (iii) the corporate subsidiary of a corporation that is also
the corporate parent or subsidiary of any licensee licensed
under the Illinois Horse Racing Act of 1975. "Licensed
establishment" does not include 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 a riverboat licensed under
the Riverboat Gambling Act, except as provided in this
paragraph. The changes made to this definition by Public Act
98-587 are declarative of existing law.
"Licensed fraternal establishment" means the location
where a qualified fraternal organization that derives its
charter from a national fraternal organization regularly
meets.
"Licensed veterans establishment" means the location where
a qualified veterans organization that derives its charter from

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a national veterans organization regularly meets.
"Licensed truck stop establishment" means a facility (i)
that is at least a 3-acre facility with a convenience store,
(ii) with separate diesel islands for fueling commercial motor
vehicles, (iii) that sells at retail more than 10,000 gallons
of diesel or biodiesel fuel per month, and (iv) with parking
spaces for commercial motor vehicles. "Commercial motor
vehicles" has the same meaning as defined in Section 18b-101 of
the Illinois Vehicle Code. The requirement of item (iii) of
this paragraph may be met by showing that estimated future
sales or past sales average at least 10,000 gallons per month.
"Licensed operator/establishment" means an individual,
partnership, corporation, or limited liability company that
meets the requirements to be licensed under this Act as a
terminal operator and owns or operates one or more
establishment that meets the requirements to be licensed under
this Act as a licensed establishment, licensed veterans
establishment, licensed truck stop establishment, or licensed
fraternal establishment.
(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13;
98-582, eff. 8-27-13; 98-587, eff. 8-27-13; 98-756, eff.
7-16-14.)
(230 ILCS 40/25)
Sec. 25. Restriction of licensees.
(a) Manufacturer. A person may not be licensed as a

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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.
(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
Illinois to persons having a valid distributor's or terminal
operator's license.
(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
from a video gaming terminal, 50% shall be paid to the terminal
operator and 50% shall be paid to the licensed establishment,
licensed truck stop establishment, licensed fraternal

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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.
(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
under this Act, (2) is a terminal operator, or (3) is employed
by a terminal operator, distributor, or manufacturer.
(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
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. The written
use agreement requirement of this subsection (e) does not apply
to the placement of terminals in an establishment owned or
operated by a licensed operator/establishment. A licensed
establishment, licensed truck stop establishment, licensed
veterans establishment, or licensed fraternal establishment,
or an establishment owned or operated by a licensed
operator/establishment may operate up to 5 video gaming
terminals on its premises at any time.
(e-5) Licensed operator/establishment. No individual,
partnership, corporation, or limited liability company may
perform the functions of a terminal operator at an
establishment that the individual, partnership, corporation,
or limited liability company owns or operates unless the
individual, partnership, corporation, or limited liability
company is licensed as an licensed operator/establishment
under this Act. An operator/establishment licensee may not act
as a terminal operator for establishments other than that for
which the operator/establishment is licensed. Except as
specifically exempted, a licensed operator/establishment is
subject to the provisions of this Act concerning terminal
operators and the establishment for which the
operator/establishment is licensed.
(f) (Blank).

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(g) Financial interest restrictions. As used in this Act,
"substantial interest" in a partnership, a corporation, an
organization, an association, a business, or a limited
liability company means:
(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
(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
(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
(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
(E) When an individual or his or her spouse furnishes
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

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(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.
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
establishment, or licensed veterans establishment that is (i)
located within 1,000 feet of a facility operated by an
organization 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, 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

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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 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 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 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

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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.
(j) The provisions of the Illinois Antitrust Act are fully
and equally applicable to the activities of any licensee under
this Act.
(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,
eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)

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(230 ILCS 40/30)
Sec. 30. Multiple types of licenses prohibited. A video
gaming terminal manufacturer may not be licensed as a video
gaming terminal operator or own, manage, or control a licensed
establishment, licensed truck stop establishment, licensed
fraternal establishment, or licensed veterans establishment,
and shall be licensed to sell only to persons having a valid
distributor's license or, if the manufacturer also holds a
valid distributor's license, to sell, distribute, lease, or
market to persons having a valid terminal operator's license. A
video gaming terminal distributor may not be licensed as a
video gaming terminal operator or own, manage, or control a
licensed establishment, licensed truck stop establishment,
licensed fraternal establishment, or licensed veterans
establishment, and shall only contract with a licensed terminal
operator. A video gaming terminal operator may not be licensed
as a video gaming terminal manufacturer or distributor or own,
manage, or control a licensed establishment, licensed truck
stop establishment, licensed fraternal establishment, or
licensed veterans establishment, and shall be licensed only to
contract with licensed distributors and licensed
establishments, licensed truck stop establishments, licensed
fraternal establishments, and licensed veterans
establishments. An owner or manager of a licensed
establishment, licensed truck stop establishment, licensed
fraternal establishment, or licensed veterans establishment

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may not be licensed as a video gaming terminal manufacturer,
distributor, or operator, and shall only contract with a
licensed operator to place and service this equipment. A
terminal operator or a licensed establishment, licensed truck
stop establishment, licensed fraternal establishment, or
licensed veterans establishment may also be licensed as a
licensed operator/establishment. A licensed
operator/establishment may not be licensed as a video gaming
terminal manufacturer or distributor.
(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.)
(230 ILCS 40/45)
Sec. 45. Issuance of license.
(a) The burden is upon each applicant to demonstrate his
suitability for licensure. Each video gaming terminal
manufacturer, distributor, supplier, operator, handler,
licensed establishment, licensed truck stop establishment,
licensed fraternal establishment, and licensed veterans
establishment shall be licensed by the Board. The Board may
issue or deny a license under this Act to any person pursuant
to the same criteria set forth in Section 9 of the Riverboat
Gambling Act.
(a-5) The Board shall not grant a license to a person who
has facilitated, enabled, or participated in the use of
coin-operated devices for gambling purposes or who is under the
significant influence or control of such a person. For the

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purposes of this Act, "facilitated, enabled, or participated in
the use of coin-operated amusement devices for gambling
purposes" means that the person has been convicted of any
violation of Article 28 of the Criminal Code of 1961 or the
Criminal Code of 2012. If there is pending legal action against
a person for any such violation, then the Board shall delay the
licensure of that person until the legal action is resolved.
(b) Each person seeking and possessing a license as a video
gaming terminal manufacturer, distributor, supplier, operator,
handler, licensed establishment, licensed truck stop
establishment, licensed fraternal establishment, or licensed
veterans establishment shall submit to a background
investigation conducted by the Board with the assistance of the
State Police or other law enforcement. To the extent that the
corporate structure of the applicant allows, the background
investigation shall include any or all of the following as the
Board deems appropriate or as provided by rule for each
category of licensure: (i) each beneficiary of a trust, (ii)
each partner of a partnership, (iii) each member of a limited
liability company, (iv) each director and officer of a publicly
or non-publicly held corporation, (v) each stockholder of a
non-publicly held corporation, (vi) each stockholder of 5% or
more of a publicly held corporation, or (vii) each stockholder
of 5% or more in a parent or subsidiary corporation.
(c) Each person seeking and possessing a license as a video
gaming terminal manufacturer, distributor, supplier, operator,

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handler, licensed establishment, licensed truck stop
establishment, licensed fraternal establishment, or licensed
veterans establishment shall disclose the identity of every
person, association, trust, corporation, or limited liability
company having a greater than 1% direct or indirect pecuniary
interest in the video gaming terminal operation for which the
license is sought. If the disclosed entity is a trust, the
application shall disclose the names and addresses of the
beneficiaries; if a corporation, the names and addresses of all
stockholders and directors; if a limited liability company, the
names and addresses of all members; or if a partnership, the
names and addresses of all partners, both general and limited.
(d) No person may be licensed as a video gaming terminal
manufacturer, distributor, supplier, operator, handler,
licensed establishment, licensed truck stop establishment,
licensed fraternal establishment, or licensed veterans
establishment if that person has been found by the Board to:
(1) have a background, including a criminal record,
reputation, habits, social or business associations, or
prior activities that pose a threat to the public interests
of the State or to the security and integrity of video
gaming;
(2) create or enhance the dangers of unsuitable,
unfair, or illegal practices, methods, and activities in
the conduct of video gaming; or
(3) present questionable business practices and

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financial arrangements incidental to the conduct of video
gaming activities.
(e) Any applicant for any license under this Act has the
burden of proving his or her qualifications to the satisfaction
of the Board. The Board may adopt rules to establish additional
qualifications and requirements to preserve the integrity and
security of video gaming in this State.
(f) A non-refundable application fee shall be paid at the
time an application for a license is filed with the Board in
the following amounts:
(1) Manufacturer..........................$5,000
(2) Distributor...........................$5,000
(3) Terminal operator.....................$5,000
(4) Supplier..............................$2,500
(5) Technician..............................$100
(6) Terminal Handler.........................$50
(7) Operator/Establishment.....................$5,000
(g) The Board shall establish an annual fee for each
license not to exceed the following:
(1) Manufacturer.........................$10,000
(2) Distributor..........................$10,000
(3) Terminal operator.....................$5,000
(4) Supplier..............................$2,000
(5) Technician..............................$100
(6) Licensed establishment, licensed truck stop
establishment, licensed fraternal establishment,

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or licensed veterans establishment..............$100
(7) Video gaming terminal...................$100
(8) Terminal Handler.........................$50
(9) Operator/Establishment...................$250,000
(h) A terminal operator and a licensed establishment,
licensed truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment shall
equally split the fees specified in item (7) of subsection (g).
(Source: P.A. 97-1150, eff. 1-25-13; 98-31, eff. 6-24-13;
98-587, eff. 8-27-13; 98-756, eff. 7-16-14.)
(230 ILCS 40/60)
Sec. 60. Imposition and distribution of tax.
(a) A tax of 30% is imposed on net terminal income and
shall be collected by the Board.
(a-5) In addition to the tax imposed under subsection (a)
of this Section, an additional tax of 2.5% is imposed on net
terminal income from video gaming terminals operated by a
licensed operator/establishment and shall be collected by the
Board.
(b) Of the tax collected under subsection (a) of this
Section, five-sixths shall be deposited into the Capital
Projects Fund and one-sixth shall be deposited into the Local
Government Video Gaming Distributive Fund. The tax collected
under subsection (a-5) of this Section shall be deposited into
the Capital Projects Fund.

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(c) Revenues generated from the play of video gaming
terminals shall be deposited by the terminal operator, who is
responsible for tax payments, in a specially created, separate
bank account maintained by the video gaming terminal operator
to allow for electronic fund transfers of moneys for tax
payment.
(d) Each licensed establishment, licensed truck stop
establishment, licensed fraternal establishment, and licensed
veterans establishment shall maintain an adequate video gaming
fund, with the amount to be determined by the Board.
(e) The State's percentage of net terminal income shall be
reported and remitted to the Board within 15 days after the
15th day of each month and within 15 days after the end of each
month by the video terminal operator. A video terminal operator
who falsely reports or fails to report the amount due required
by this Section is guilty of a Class 4 felony and is subject to
termination of his or her license by the Board. Each video
terminal operator shall keep a record of net terminal income in
such form as the Board may require. All payments not remitted
when due shall be paid together with a penalty assessment on
the unpaid balance at a rate of 1.5% per month.
(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)".