Bill Text: IL SB0209 | 2017-2018 | 100th General Assembly | Engrossed


Bill Title: Amends the Illinois Pull Tabs and Jar Games Act. Makes a technical change in a Section concerning the short title.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed) 2017-07-06 - Rule 19(a) / Re-referred to Rules Committee [SB0209 Detail]

Download: Illinois-2017-SB0209-Engrossed.html



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1 AN ACT concerning gaming.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Video Gaming Act is amended by changing
5Sections 20 and 25 as follows:
6 (230 ILCS 40/20)
7 Sec. 20. Direct dispensing of receipt tickets only. A video
8gaming terminal may not directly dispense coins, cash, tokens,
9or any other article of exchange or value except for receipt
10tickets. Tickets shall be dispensed by pressing the ticket
11dispensing button on the video gaming terminal at the end of
12one's turn or play. The ticket shall indicate the total amount
13of credits and the cash award, the time of day in a 24-hour
14format showing hours and minutes, the date, the terminal serial
15number, the sequential number of the ticket, and an encrypted
16validation number from which the validity of the prize may be
17determined. The player shall turn in this ticket to the
18appropriate person at the licensed establishment, licensed
19truck stop establishment, licensed fraternal establishment, or
20licensed veterans establishment to receive the cash award. The
21cost of the credit shall be one cent, 5 cents, 10 cents, or 25
22cents, and the maximum wager played per hand shall not exceed
23$4 $2. No cash award for the maximum wager on any individual

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1hand shall exceed $1,199 $500. No cash award for the maximum
2wager on a jackpot, progressive or otherwise, shall exceed
3$10,000.
4(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.)
5 (230 ILCS 40/25)
6 Sec. 25. Restriction of licensees.
7 (a) Manufacturer. A person may not be licensed as a
8manufacturer of a video gaming terminal in Illinois unless the
9person has a valid manufacturer's license issued under this
10Act. A manufacturer may only sell video gaming terminals for
11use in Illinois to persons having a valid distributor's
12license.
13 (b) Distributor. A person may not sell, distribute, or
14lease or market a video gaming terminal in Illinois unless the
15person has a valid distributor's license issued under this Act.
16A distributor may only sell video gaming terminals for use in
17Illinois to persons having a valid distributor's or terminal
18operator's license.
19 (c) Terminal operator. A person may not own, maintain, or
20place a video gaming terminal unless he has a valid terminal
21operator's license issued under this Act. A terminal operator
22may only place video gaming terminals for use in Illinois in
23licensed establishments, licensed truck stop establishments,
24licensed fraternal establishments, and licensed veterans
25establishments. No terminal operator or officer, employee, or

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1agent of a terminal operator may offer, promise, or give
2anything of value, including, but not limited to, a loan or
3financing arrangement, to a licensed establishment, licensed
4truck stop establishment, licensed fraternal establishment, or
5licensed veterans establishment in accordance with an
6agreement or arrangement or with the intent that the offer,
7promise, or gift of the thing of value shall act as an any
8incentive or inducement with respect to locating or maintaining
9locate video terminals in that establishment. The following
10items and activities are permissible and do not constitute "of
11value" violations under this subsection:
12 (1) A terminal operator may reimburse a licensed
13 establishment, licensed truck stop establishment, licensed
14 fraternal establishment, or licensed veterans
15 establishment for the actual cost of the food or
16 non-alcoholic beverages given directly to video gaming
17 terminal players in an amount not to exceed 5% of the
18 terminal operator's monthly share of net terminal income if
19 the licensed location has, for the preceding 6 consecutive
20 calendar months, averaged monthly cumulative net terminal
21 income for the location equivalent to net terminal income
22 of at least $120 per day per video gaming terminal
23 immediately on the premises, and if the reimbursement
24 terms, including the requirement that the terminal
25 operator be provided with receipts or documentation of the
26 actual cost of the food or non-alcoholic beverages, are set

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1 forth in the written use agreement between the parties. In
2 the event of the authorization of a players' rewards
3 program, if food or non-alcoholic beverage awards are made
4 available through the program, then a terminal operator may
5 reimburse a licensed establishment, licensed truck stop
6 establishment, licensed fraternal establishment, or
7 licensed veterans establishment up to 50% of the actual
8 cost of the food or non-alcoholic beverages awarded, and
9 the reimbursement terms, including the requirement that
10 the terminal operator be provided with receipts or
11 documentation of the actual cost of the food or
12 non-alcoholic beverages, are set forth in the written use
13 agreement between the parties.
14 (2) A terminal operator may reimburse a licensed
15 establishment, licensed truck stop establishment, licensed
16 fraternal establishment, or licensed veterans
17 establishment for up to 50% of the actual cost of
18 promotional items, excluding food or non-alcoholic
19 beverages, of more than nominal value, such as vacation
20 trips and prizes that are given directly to video gaming
21 terminal players if the reimbursement terms, including the
22 requirement that the terminal operator be provided with
23 receipts or documentation of the actual cost of these
24 items, are set forth in the written use agreement between
25 the parties. The cost of promotional items of nominal value
26 that bear a logo or name and that are given to patrons or

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1 video gaming terminal players, however, may not be
2 reimbursed or shared and shall be paid for entirely by the
3 terminal operator or the licensed location whose name or
4 logo appears on the item. As used in this paragraph,
5 "promotional items of nominal value" does not include gift
6 cards, gift certificates, cash, and cash equivalents.
7 (3) A terminal operator may reimburse a licensed
8 establishment, licensed truck stop establishment, licensed
9 fraternal establishment, or licensed veterans
10 establishment for up to 50% of the actual cost of
11 advertising that promotes video gaming at that licensed
12 location if the reimbursement terms, including the
13 requirement that the terminal operator be provided with
14 receipts or documentation of the actual cost of the
15 advertising, are set forth in the written use agreement
16 between the parties.
17 The Board shall adopt rules concerning the items and
18activities permissible under this subsection as well as other
19activities that do not constitute "of value" violations under
20this subsection.
21 Of the after-tax profits from a video gaming terminal, 50%
22shall be paid to the terminal operator and 50% shall be paid to
23the licensed establishment, licensed truck stop establishment,
24licensed fraternal establishment, or licensed veterans
25establishment, notwithstanding any agreement to the contrary.
26A video terminal operator or licensed location that violates

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1one or more requirements of this subsection is guilty of a
2Class 4 felony and is subject to termination of his or her
3license by the Board.
4 (d) Licensed technician. A person may not service,
5maintain, or repair a video gaming terminal in this State
6unless he or she (1) has a valid technician's license issued
7under this Act, (2) is a terminal operator, or (3) is employed
8by a terminal operator, distributor, or manufacturer.
9 (d-5) Licensed terminal handler. No person, including, but
10not limited to, an employee or independent contractor working
11for a manufacturer, distributor, supplier, technician, or
12terminal operator licensed pursuant to this Act, shall have
13possession or control of a video gaming terminal, or access to
14the inner workings of a video gaming terminal, unless that
15person possesses a valid terminal handler's license issued
16under this Act.
17 (e) Licensed establishment. No video gaming terminal may be
18placed in any licensed establishment, licensed veterans
19establishment, licensed truck stop establishment, or licensed
20fraternal establishment unless the owner or agent of the owner
21of the licensed establishment, licensed veterans
22establishment, licensed truck stop establishment, or licensed
23fraternal establishment has entered into a written use
24agreement with the terminal operator for placement of the
25terminals. A copy of the use agreement shall be on file in the
26terminal operator's place of business and available for

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1inspection by individuals authorized by the Board.
2 (e-5) A licensed establishment, licensed truck stop
3establishment, licensed veterans establishment, or licensed
4fraternal establishment may operate up to 5 video gaming
5terminals on its premises at any time.
6 (f) (Blank).
7 (g) Financial interest restrictions. As used in this Act,
8"substantial interest" in a partnership, a corporation, an
9organization, an association, a business, or a limited
10liability company means:
11 (A) When, with respect to a sole proprietorship, an
12 individual or his or her spouse owns, operates, manages, or
13 conducts, directly or indirectly, the organization,
14 association, or business, or any part thereof; or
15 (B) When, with respect to a partnership, the individual
16 or his or her spouse shares in any of the profits, or
17 potential profits, of the partnership activities; or
18 (C) When, with respect to a corporation, an individual
19 or his or her spouse is an officer or director, or the
20 individual or his or her spouse is a holder, directly or
21 beneficially, of 5% or more of any class of stock of the
22 corporation; or
23 (D) When, with respect to an organization not covered
24 in (A), (B) or (C) above, an individual or his or her
25 spouse is an officer or manages the business affairs, or
26 the individual or his or her spouse is the owner of or

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1 otherwise controls 10% or more of the assets of the
2 organization; or
3 (E) When an individual or his or her spouse furnishes
4 5% or more of the capital, whether in cash, goods, or
5 services, for the operation of any business, association,
6 or organization during any calendar year; or
7 (F) When, with respect to a limited liability company,
8 an individual or his or her spouse is a member, or the
9 individual or his or her spouse is a holder, directly or
10 beneficially, of 5% or more of the membership interest of
11 the limited liability company.
12 For purposes of this subsection (g), "individual" includes
13all individuals or their spouses whose combined interest would
14qualify as a substantial interest under this subsection (g) and
15whose activities with respect to an organization, association,
16or business are so closely aligned or coordinated as to
17constitute the activities of a single entity.
18 (h) Location restriction. A licensed establishment,
19licensed truck stop establishment, licensed fraternal
20establishment, or licensed veterans establishment that is (i)
21located within 1,000 feet of a facility operated by an
22organization licensee licensed under the Illinois Horse Racing
23Act of 1975 or the home dock of a riverboat licensed under the
24Riverboat Gambling Act or (ii) located within 100 feet of a
25school or a place of worship under the Religious Corporation
26Act, is ineligible to operate a video gaming terminal. The

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1location restrictions in this subsection (h) do not apply if
2(A) a facility operated by an organization licensee, a school,
3or a place of worship moves to or is established within the
4restricted area after a licensed establishment, licensed truck
5stop establishment, licensed fraternal establishment, or
6licensed veterans establishment becomes licensed under this
7Act or (B) a school or place of worship moves to or is
8established within the restricted area after a licensed
9establishment, licensed truck stop establishment, licensed
10fraternal establishment, or licensed veterans establishment
11obtains its original liquor license. For the purpose of this
12subsection, "school" means an elementary or secondary public
13school, or an elementary or secondary private school registered
14with or recognized by the State Board of Education.
15 Notwithstanding the provisions of this subsection (h), the
16Board may waive the requirement that a licensed establishment,
17licensed truck stop establishment, licensed fraternal
18establishment, or licensed veterans establishment not be
19located within 1,000 feet from a facility operated by an
20organization licensee licensed under the Illinois Horse Racing
21Act of 1975 or the home dock of a riverboat licensed under the
22Riverboat Gambling Act. The Board shall not grant such waiver
23if there is any common ownership or control, shared business
24activity, or contractual arrangement of any type between the
25establishment and the organization licensee or owners licensee
26of a riverboat. The Board shall adopt rules to implement the

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1provisions of this paragraph.
2 (i) Undue economic concentration. In addition to
3considering all other requirements under this Act, in deciding
4whether to approve the operation of video gaming terminals by a
5terminal operator in a location, the Board shall consider the
6impact of any economic concentration of such operation of video
7gaming terminals. The Board shall not allow a terminal operator
8to operate video gaming terminals if the Board determines such
9operation will result in undue economic concentration. For
10purposes of this Section, "undue economic concentration" means
11that a terminal operator would have such actual or potential
12influence over video gaming terminals in Illinois as to:
13 (1) substantially impede or suppress competition among
14 terminal operators;
15 (2) adversely impact the economic stability of the
16 video gaming industry in Illinois; or
17 (3) negatively impact the purposes of the Video Gaming
18 Act.
19 The Board shall adopt rules concerning undue economic
20concentration with respect to the operation of video gaming
21terminals in Illinois. The rules shall include, but not be
22limited to, (i) limitations on the number of video gaming
23terminals operated by any terminal operator within a defined
24geographic radius and (ii) guidelines on the discontinuation of
25operation of any such video gaming terminals the Board
26determines will cause undue economic concentration.

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1 (j) The provisions of the Illinois Antitrust Act are fully
2and equally applicable to the activities of any licensee under
3this Act.
4(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,
5eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
6 Section 99. Effective date. This Act takes effect upon
7becoming law.
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