Bill Text: IL SB0744 | 2009-2010 | 96th General Assembly | Enrolled

---

Bill Title: Amends the Native American Gaming Compact Act. Makes a technical change in a Section concerning the short title.

Sponsorship: Slight Partisan Bill (Democrat 2-1)

Status: (Passed) 2010-08-23 - Public Act . . . . . . . . . 96-1479 [SB0744 Detail]

Download: Illinois-2009-SB0744-Enrolled.html

---

SB0744 Enrolled LRB096 06812 AMC 16898 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
Sections 5 and 25 as follows:
(230 ILCS 40/5)
Sec. 5. Definitions. As used in this Act:
"Board" means the Illinois Gaming Board.
"Credit" means 5, 10, or 25 cents either won or purchased
by a player.
"Distributor" means an individual, partnership, or
corporation 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.
"Terminal operator" means an individual, partnership or
corporation that is licensed under this Act and that owns,
services, and maintains video gaming terminals for placement in
licensed 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

SB0744 Enrolled - 2 - LRB096 06812 AMC 16898 b
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, or
corporation defined as a manufacturer, distributor, supplier,
technician, or terminal operator under this Act.
"Manufacturer" means an individual, partnership, or
corporation that is licensed under this Act and that
manufactures or assembles video gaming terminals.
"Supplier" means an individual, partnership, or
corporation 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, 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.

SB0744 Enrolled - 3 - LRB096 06812 AMC 16898 b
"Licensed establishment" means any licensed retail
establishment where alcoholic liquor is drawn, poured, mixed,
or otherwise served for consumption on the premises and
includes any such establishment that has a contractual
relationship with an inter-track wagering 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
intertrack wagering licensee, or an inter-track intertrack
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.
"Licensed fraternal establishment" means the location
where a qualified fraternal organization that derives its
charter from a national fraternal organization regularly

SB0744 Enrolled - 4 - LRB096 06812 AMC 16898 b
meets.
"Licensed veterans establishment" means the location where
a qualified veterans organization that derives its charter from
a national veterans organization regularly meets.
"Licensed truck stop establishment" means a facility that
is at least a 3-acre facility with a convenience store and with
separate diesel islands for fueling commercial motor vehicles
and parking spaces for commercial motor vehicles as defined in
Section 18b-101 of the Illinois Vehicle Code.
(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
(230 ILCS 40/25)
Sec. 25. Restriction of licensees.
(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.
(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

SB0744 Enrolled - 5 - LRB096 06812 AMC 16898 b
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
establishment, or licensed veterans establishment,
notwithstanding nothwithstanding any agreement to the
contrary. No terminal operator may own or have a substantial
interest in more than 5% of the video gaming terminals licensed
in this State. 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

SB0744 Enrolled - 6 - LRB096 06812 AMC 16898 b
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
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.
(f) (Blank).
(g) Financial interest restrictions. As used in this Act,

SB0744 Enrolled - 7 - LRB096 06812 AMC 16898 b
"substantial interest" in a partnership, a corporation, an
organization, an association, or a business 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.

SB0744 Enrolled - 8 - LRB096 06812 AMC 16898 b
(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
organizational licensee or , an inter-track intertrack wagering
licensee, an intertrack 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 or
(ii) located within with a 100 feet of a school or a place of
worship under the Religious Corporation Act, is ineligible to
operate a video gaming terminal.
(i) The provisions of the Illinois Antitrust Act are fully
and equally applicable to the activities of any licensee under
this Act.
(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
eff. 7-13-09; revised 8-17-09.)
Section 99. Effective date. This Act takes effect upon
becoming law.