Bill Text: IL HB4804 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Prizes and Gifts Act. Changes the short title of the Act to the Sweepstakes, Prizes, and Gifts Act. Provides that it is unlawful for a person to operate more than 10 electronic product promotion sweepstakes kiosks on any premises at one time. Includes restrictions on electronic product promotion sweepstakes kiosks. Provides fees imposed by the Department of Revenue on each kiosk in operation. Makes conforming changes in the Criminal Code of 2012 and the Video Gaming Act. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-02-18 - Referred to Rules Committee [HB4804 Detail]

Download: Illinois-2019-HB4804-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB4804 Introduced , by Rep. Kambium Buckner SYNOPSIS AS INTRODUCED:
230 ILCS 40/35
720 ILCS 5/28-1 from Ch. 38, par. 28-1
815 ILCS 525/Act title
815 ILCS 525/1
815 ILCS 525/10
815 ILCS 525/33 new
815 ILCS 525/45 new
815 ILCS 525/50 new
Amends the Prizes and Gifts Act. Changes the short title of the Act to the Sweepstakes, Prizes, and Gifts Act. Provides that it is unlawful for a person to operate more than 10 electronic product promotion sweepstakes kiosks on any premises at one time. Includes restrictions on electronic product promotion sweepstakes kiosks. Provides fees imposed by the Department of Revenue on each kiosk in operation. Makes conforming changes in the Criminal Code of 2012 and the Video Gaming Act. Effective immediately.
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A BILL FOR
HB4804 LRB101 19348 SMS 68820 b
AN ACT concerning gaming.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Video Gaming Act is amended by changing
Section 35 as follows:
(230 ILCS 40/35)
Sec. 35. Display of license; confiscation; violation as
felony.
(a) Each video gaming terminal shall be licensed by the
Board before placement or operation on the premises of a
licensed establishment, licensed truck stop establishment,
licensed large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment. The license
of each video gaming terminal shall be maintained at the
location where the video gaming terminal is operated. Failure
to do so is a petty offense with a fine not to exceed $100. Any
licensed establishment, licensed truck stop establishment,
licensed large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment used for the
conduct of gambling games in violation of this Act shall be
considered a gambling place in violation of Section 28-3 of the
Criminal Code of 2012. Every gambling device found in a
licensed establishment, licensed truck stop establishment,

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licensed large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment operating
gambling games in violation of this Act shall be subject to
seizure, confiscation, and destruction as provided in Section
28-5 of the Criminal Code of 2012. Any license issued under the
Liquor Control Act of 1934 to any owner or operator of a
licensed establishment, licensed truck stop establishment,
licensed large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment that
operates or permits the operation of a video gaming terminal
within its establishment in violation of this Act shall be
immediately revoked. No person may own, operate, have in his or
her possession or custody or under his or her control, or
permit to be kept in any place under his or her possession or
control, any device that awards credits and contains a circuit,
meter, or switch capable of removing and recording the removal
of credits when the award of credits is dependent upon chance.
Nothing in this Section shall be deemed to prohibit the use
of a game device only if the game device is used in an activity
that is not gambling under subsection (b) of Section 28-1 of
the Criminal Code of 2012. An applicant or licensee under this
Act is not in violation of this Act or its rules and shall not
be subject to disciplinary action for operating a game device
if operation of the gaming device is in compliance with and not
considered gambling under subsection (b) of Section 28-1 of the
Criminal Code of 2012.

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A violation of this Section is a Class 4 felony. All
devices that are owned, operated, or possessed in violation of
this Section are hereby declared to be public nuisances and
shall be subject to seizure, confiscation, and destruction as
provided in Section 28-5 of the Criminal Code of 2012.
The provisions of this Section do not apply to devices or
electronic video game terminals licensed pursuant to this Act.
A video gaming terminal operated for amusement only and bearing
a valid amusement tax sticker shall not be subject to this
Section until 30 days after the Board establishes that the
central communications system is functional.
(b) (1) The odds of winning each video game shall be posted
on or near each video gaming terminal. The manner in which the
odds are calculated and how they are posted shall be determined
by the Board by rule.
(2) No video gaming terminal licensed under this Act may be
played except during the legal hours of operation allowed for
the consumption of alcoholic beverages at the licensed
establishment, licensed fraternal establishment, or licensed
veterans establishment. A licensed establishment, licensed
fraternal establishment, or licensed veterans establishment
that violates this subsection is subject to termination of its
license by the Board.
(Source: P.A. 101-31, eff. 6-28-19.)
Section 10. The Criminal Code of 2012 is amended by

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changing Section 28-1 as follows:
(720 ILCS 5/28-1) (from Ch. 38, par. 28-1)
Sec. 28-1. Gambling.
(a) A person commits gambling when he or she:
(1) knowingly plays a game of chance or skill for money
or other thing of value, unless excepted in subsection (b)
of this Section;
(2) knowingly makes a wager upon the result of any
game, contest, or any political nomination, appointment or
election;
(3) knowingly operates, keeps, owns, uses, purchases,
exhibits, rents, sells, bargains for the sale or lease of,
manufactures or distributes any gambling device;
(4) contracts to have or give himself or herself or
another the option to buy or sell, or contracts to buy or
sell, at a future time, any grain or other commodity
whatsoever, or any stock or security of any company, where
it is at the time of making such contract intended by both
parties thereto that the contract to buy or sell, or the
option, whenever exercised, or the contract resulting
therefrom, shall be settled, not by the receipt or delivery
of such property, but by the payment only of differences in
prices thereof; however, the issuance, purchase, sale,
exercise, endorsement or guarantee, by or through a person
registered with the Secretary of State pursuant to Section

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8 of the Illinois Securities Law of 1953, or by or through
a person exempt from such registration under said Section
8, of a put, call, or other option to buy or sell
securities which have been registered with the Secretary of
State or which are exempt from such registration under
Section 3 of the Illinois Securities Law of 1953 is not
gambling within the meaning of this paragraph (4);
(5) knowingly owns or possesses any book, instrument or
apparatus by means of which bets or wagers have been, or
are, recorded or registered, or knowingly possesses any
money which he has received in the course of a bet or
wager;
(6) knowingly sells pools upon the result of any game
or contest of skill or chance, political nomination,
appointment or election;
(7) knowingly sets up or promotes any lottery or sells,
offers to sell or transfers any ticket or share for any
lottery;
(8) knowingly sets up or promotes any policy game or
sells, offers to sell or knowingly possesses or transfers
any policy ticket, slip, record, document or other similar
device;
(9) knowingly drafts, prints or publishes any lottery
ticket or share, or any policy ticket, slip, record,
document or similar device, except for such activity
related to lotteries, bingo games and raffles authorized by

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and conducted in accordance with the laws of Illinois or
any other state or foreign government;
(10) knowingly advertises any lottery or policy game,
except for such activity related to lotteries, bingo games
and raffles authorized by and conducted in accordance with
the laws of Illinois or any other state;
(11) knowingly transmits information as to wagers,
betting odds, or changes in betting odds by telephone,
telegraph, radio, semaphore or similar means; or knowingly
installs or maintains equipment for the transmission or
receipt of such information; except that nothing in this
subdivision (11) prohibits transmission or receipt of such
information for use in news reporting of sporting events or
contests; or
(12) knowingly establishes, maintains, or operates an
Internet site that permits a person to play a game of
chance or skill for money or other thing of value by means
of the Internet or to make a wager upon the result of any
game, contest, political nomination, appointment, or
election by means of the Internet. This item (12) does not
apply to activities referenced in items (6), (6.1), (8),
and (8.1), and (15) of subsection (b) of this Section.
(b) Participants in any of the following activities shall
not be convicted of gambling:
(1) Agreements to compensate for loss caused by the
happening of chance including without limitation contracts

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of indemnity or guaranty and life or health or accident
insurance.
(2) Offers of prizes, award or compensation to the
actual contestants in any bona fide contest for the
determination of skill, speed, strength or endurance or to
the owners of animals or vehicles entered in such contest.
(3) Pari-mutuel betting as authorized by the law of
this State.
(4) Manufacture of gambling devices, including the
acquisition of essential parts therefor and the assembly
thereof, for transportation in interstate or foreign
commerce to any place outside this State when such
transportation is not prohibited by any applicable Federal
law; or the manufacture, distribution, or possession of
video gaming terminals, as defined in the Video Gaming Act,
by manufacturers, distributors, and terminal operators
licensed to do so under the Video Gaming Act.
(5) The game commonly known as "bingo", when conducted
in accordance with the Bingo License and Tax Act.
(6) Lotteries when conducted by the State of Illinois
in accordance with the Illinois Lottery Law. This exemption
includes any activity conducted by the Department of
Revenue to sell lottery tickets pursuant to the provisions
of the Illinois Lottery Law and its rules.
(6.1) The purchase of lottery tickets through the
Internet for a lottery conducted by the State of Illinois

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under the program established in Section 7.12 of the
Illinois Lottery Law.
(7) Possession of an antique slot machine that is
neither used nor intended to be used in the operation or
promotion of any unlawful gambling activity or enterprise.
For the purpose of this subparagraph (b)(7), an antique
slot machine is one manufactured 25 years ago or earlier.
(8) Raffles and poker runs when conducted in accordance
with the Raffles and Poker Runs Act.
(8.1) The purchase of raffle chances for a raffle
conducted in accordance with the Raffles and Poker Runs
Act.
(9) Charitable games when conducted in accordance with
the Charitable Games Act.
(10) Pull tabs and jar games when conducted under the
Illinois Pull Tabs and Jar Games Act.
(11) Gambling games when authorized by the Illinois
Gambling Act.
(12) Video gaming terminal games at a licensed
establishment, licensed truck stop establishment, licensed
large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment when
conducted in accordance with the Video Gaming Act.
(13) Games of skill or chance where money or other
things of value can be won but no payment or purchase is
required to participate.

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(14) Savings promotion raffles authorized under
Section 5g of the Illinois Banking Act, Section 7008 of the
Savings Bank Act, Section 42.7 of the Illinois Credit Union
Act, Section 5136B of the National Bank Act (12 U.S.C.
25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C.
1463).
(15) Sports wagering when conducted in accordance with
the Sports Wagering Act.
(16) Electronic product promotion sweepstakes when
conducted in accordance with the Sweepstakes, Prizes, and
Gifts Act.
(c) Sentence.
Gambling is a Class A misdemeanor. A second or subsequent
conviction under subsections (a)(3) through (a)(12), is a Class
4 felony.
(d) Circumstantial evidence.
In prosecutions under this Section circumstantial evidence
shall have the same validity and weight as in any criminal
prosecution.
(Source: P.A. 101-31, Article 25, Section 25-915, eff. 6-28-19;
101-31, Article 35, Section 35-80, eff. 6-28-19; 101-109, eff.
7-19-19; revised 8-6-19.)
Section 15. The Prizes and Gifts Act is amended by changing
th title of the Act and Sections 1 and 10 and by adding
Sections 33, 45 and 50 as follows:

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(815 ILCS 525/Act title)
An Act concerning sweepstakes, prizes, and gifts.
(815 ILCS 525/1)
Sec. 1. Short title. This Act may be cited as the
Sweepstakes, Prizes, and Gifts Act.
(Source: P.A. 92-436, eff. 1-1-02.)
(815 ILCS 525/10)
Sec. 10. Definitions. As used in this Act:
"Bona fide product" means any item of real value, which
includes gift certificates to be used for or towards the
purchase of a retail item. "Bona fide product" does not include
a discount coupon, Internet access, or a telephone card.
"Catalog seller" means an entity (and its subsidiaries) or
a person at least 50% of whose annual revenues are derived from
the sale of products sold in connection with the distribution
of catalogs of at least 24 pages, which contain written
descriptions or illustrations and sale prices for each item of
merchandise and which are distributed in more than one state
with a total annual distribution of at least 250,000.
"Discount coupon" means a coupon that has a value worth
double the amount inserted into the electronic product
promotion sweepstakes kiosk and is used to offset the price of
a retail item at a store with a physical location or ecommerce

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website.
"Distributor" means a provider of electronic product
promotion sweepstakes kiosks that sells fills through the fill
system and is responsible for the collection and remittance of
the revenue operation fee to the Department of Revenue.
"Electronic product promotion sweepstakes kiosk" means any
electronic video machine that is used to promote the purchase
of a bona fide product from a sponsor and offers or awards a
prize, without requiring payment or purchase to participate, as
a means to promote that sponsor and is otherwise consistent
with paragraph (12) of subsection (a) and paragraph (16) of
subsection (b) of Section 28-1 of the Criminal Code of 2012,
contains a fill system, and is not connected directly or
indirectly to the Internet, either by cellular modem, hardwire
or wireless connection, or to a set of interconnected networked
devices in order to participate in the game or contest or to
receive or retrieve any data related to the kiosk or device
unless the connected device is a redemption vault.
"Fills" means the extended play authorizations for the
software.
"Fill system" means the internal revenue generation refill
system of the electronic product promotion sweepstakes kiosk
that permits the operation of and access to plays on the
software on a fee basis, automatically ceases to operate upon
the completion of a revenue cycle, and provides for the
auditable determination of the revenue operation fee.

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"Internet access" means a connection of individual
computer terminals, computers, mobile devices, and computer
networks to the Internet, enabling users to access Internet
services, such as email and the World Wide Web.
"Operator" means an individual, entity, partnership, or
otherwise that provides electronic product promotion
sweepstakes kiosks for use by others.
"Person" means a corporation, partnership, limited
liability company, sole proprietorship, or natural person.
"Prize" means a gift, award, or other item or service of
value that is offered or awarded to a participant in a real or
purported contest, competition, sweepstakes, scheme, plan, or
other selection process that involves an element of chance.
"Redemption vault" means a standalone or connected device
to an electronic product promotion sweepstakes kiosk for the
sole purpose of redeeming a prize or award.
"Retail value" of a prize means:
(1) a price at which the sponsor can substantiate that
a substantial quantity of the item or service offered as a
prize has been sold to the public; or
(2) if the sponsor is unable to satisfy the requirement
in subdivision (1), no more than 3 times the amount the
sponsor paid for the prize in a bona fide purchase from an
unaffiliated seller.
"Revenue cycle" means the end of a fill or software
generated through the fill system.

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"Revenue operation fee" means the fee paid to the State
through the Department of Revenue for each fill generated
through the fill system.
"Software" means the software that runs the product
promotion sweepstakes kiosk that runs through the fill system.
"Sponsor" means a person on whose behalf a promotion is
conducted to promote or advertise goods, services, or property
of that person. "Sponsor" includes a person who conducts a
promotion on behalf of another sponsor.
"Telephone card" means any stored-value system capable of
being discarded when depleted or recharged for reuse and
utilized to place a telephone call.
(Source: P.A. 92-436, eff. 1-1-02.)
(815 ILCS 525/33 new)
Sec. 33. Electronic product promotion sweepstakes kiosks.
(a) It is unlawful for a person to operate on any premises
more than 10 electronic product promotion sweepstakes kiosks at
any one time.
(b) No electronic product promotion sweepstakes kiosk
shall be connected directly or indirectly to the Internet,
either by cellular modem, hardwire or wireless connection, or
to a set of interconnected networked devices in order to
participate in the game or contest or to receive or retrieve
any data related to the kiosk or device unless the connected
device is a redemption vault.

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(c) It is unlawful for an electronic product promotion
sweepstakes kiosk to offer the sale of anything other than a
bona fide product.
(d) It is unlawful to operate an electronic product
promotion sweepstakes kiosk without a self-contained fill
system.
(815 ILCS 525/45 new)
Sec. 45. Electronic product promotion sweepstakes kiosk;
annual fee and revenue operation fee. The Department of Revenue
is hereby authorized to impose an annual fee of not more than
$100 for the operation of each electronic product promotion
sweepstakes kiosk and collect a revenue operation fee of $1,000
for each revenue cycle.
Distributors of lawful electronic product promotion
sweepstakes kiosks shall be responsible for the collection and
remittance of the revenue operation fee on a quarterly basis.
The Department of Revenue may audit a distributor or
operator to ensure that all fills sold through the fill system
are accounted for and subject to the revenue operation fee.
For the operation of each electronic product promotion
sweepstakes kiosk, a municipality with a population of more
than 2,000,000 inhabitants may impose a revenue operation fee
not to exceed $500 and an annual fee not to exceed the amount
of the fee the municipality imposes for an amusement device.
For the operation of each electronic product promotion

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sweepstakes kiosk, a municipality with a population of
2,000,000 inhabitants or less may impose a revenue operation
fee not to exceed $100 and an annual fee not to exceed the
amount of the fee the municipality imposes for an amusement
device.
For the operation of each electronic product promotion
sweepstakes kiosk, a county with a population of more than
2,000,000 inhabitants may impose an annual fee not to exceed
$100.
For the operation of each electronic product promotion
sweepstakes kiosk, a county with a population of 2,000,000
inhabitants or less may impose an annual fee not to exceed $50.
(815 ILCS 525/50 new)
Sec. 50. Application for distributor and operator license.
(a) An application for a distribution or operator license
shall be made in conformity with the provisions of this Act and
the general requirements of the Department of Revenue relating
to applications for licenses.
(b) The application shall be in writing and signed by the
applicant, if an individual. If the applicant is a partnership
or corporation, the application shall be signed by a duly
authorized agent of the partnership or corporation. If the
applicant is a limited liability company managed by managers,
the application shall be signed by a manager. If the applicant
is a limited liability company managed by its members, the

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application shall be signed by a member. The application shall
be verified by oath or affidavit and shall include the
following statements and information:
(1) in the case of:
(A) an individual: the name, date of birth,
residence address, current telephone number, and
social security number of the applicant; or
(B) a partnership, limited partnership,
corporation, limited liability company, or other legal
entity: the date of its organization or incorporation;
the objects for which it was organized or incorporated;
a summary of its activities during the past year; the
name, residence address, date of birth, and social
security numbers of any person owning directly or
beneficially any percentage of ownership of the
partnership, limited partnership, corporation, limited
liability company, other legal entity; however, if the
partnership, limited partnership, corporation, limited
liability company, or other legal entity is publicly
traded on an exchange within the meaning of the federal
Securities Exchange Act of 1934, the names, residence
addresses, social security numbers, dates of birth,
and percentage of interest of the 3 members who own the
highest percentage of interest in the partnership,
limited partnership, corporation, limited liability
company, or other legal entity and of any other members

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who hold a 5% or greater interest in the partnership,
limited partnership, corporation, limited liability
company, or other legal entity; and, where applicable,
the names, residence addresses, dates of birth, and
social security numbers of all principal officers and
directors; if the entity is a manager-managed limited
liability company, the names, residence addresses,
dates of birth, and social security numbers of all
managers; and the name and current telephone number of
any authorized agent;
(2) the length of time the applicant has been in a
business of that character or, in the case of a
corporation, the date when its charter was issued;
(3) the location of the place of business that is to be
operated under the license;
(4) a statement as to whether the applicant is not
disqualified to receive a license by reason of any
provision of this Act or the laws of the State of Illinois;
(5) a statement as to whether the applicant has ever
been convicted of a felony related to a gambling offense;
and
(6) a statement that the applicant will not violate any
of the laws of the State of Illinois or of the United
States in the conduct of business.
(c) Applicants for a distributor or operator license must
have a fingerprint-based criminal history background check

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completed by an Illinois licensed live scan fingerprint vendor.
(d) Applicants for a distributor or operator license shall
be issued and approved within 30 days after the application is
submitted to the Department of Revenue. No license shall be
issued if the applicant or any of its owners, partners,
shareholders, or members have been convicted of a felony
related to gambling.
Section 99. Effective date. This Act takes effect upon
becoming law.