Bill Text: IL SB1806 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the Video Gaming Act. Provides that the Illinois Gaming Board shall not grant an application to become a licensed video gaming location if the Board determines that granting the application would more likely than not cause a terminal operator licensed video gaming location to operate the video gaming terminals in 2 or more licensed video gaming locations as a single video gaming operation. Provides factors to be considered by the Board in determining restrictions on licenses in malls. Provides that the Board shall presume that the granting of an application to become a licensed video gaming location within a mall will cause a terminal operator to operate the video gaming terminals in 2 or more licensed video gaming locations as a single video gaming operation if the Board determines that granting the license would create a local concentration of licensed video gaming locations. Provides that a home rule municipality, or a home rule county with respect to unincorporated portions of the county, may impose separate requirements on video gaming that provide sources of municipal or county revenue or impose limitations on video gaming that are more restrictive than those provided under the Act. Provides that all current supplier licensees under the Riverboat Gambling Act shall be entitled to licensure under the Video Gaming Act as manufacturers, distributors, or suppliers without additional Board investigation or approval, except by vote of the Board; however, they are required to pay application and annual fees under the Video Gaming Act. Defines terms.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Introduced) 2017-04-28 - Rule 2-10 Third Reading Deadline Established As May 31, 2017 [SB1806 Detail]

Download: Illinois-2017-SB1806-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB1806

Introduced 2/9/2017, by Sen. Dave Syverson - Steve Stadelman

SYNOPSIS AS INTRODUCED:
230 ILCS 40/25
230 ILCS 40/27
230 ILCS 40/80

Amends the Video Gaming Act. Provides that the Illinois Gaming Board shall not grant an application to become a licensed video gaming location if the Board determines that granting the application would more likely than not cause a terminal operator licensed video gaming location to operate the video gaming terminals in 2 or more licensed video gaming locations as a single video gaming operation. Provides factors to be considered by the Board in determining restrictions on licenses in malls. Provides that the Board shall presume that the granting of an application to become a licensed video gaming location within a mall will cause a terminal operator to operate the video gaming terminals in 2 or more licensed video gaming locations as a single video gaming operation if the Board determines that granting the license would create a local concentration of licensed video gaming locations. Provides that a home rule municipality, or a home rule county with respect to unincorporated portions of the county, may impose separate requirements on video gaming that provide sources of municipal or county revenue or impose limitations on video gaming that are more restrictive than those provided under the Act. Provides that all current supplier licensees under the Riverboat Gambling Act shall be entitled to licensure under the Video Gaming Act as manufacturers, distributors, or suppliers without additional Board investigation or approval, except by vote of the Board; however, they are required to pay application and annual fees under the Video Gaming Act. Defines terms.
LRB100 09211 MJP 19367 b
FISCAL NOTE ACT MAY APPLY
HOME RULE NOTE ACT MAY APPLY

A BILL FOR

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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 25, 27, and 80 as follows:
6 (230 ILCS 40/25)
7 Sec. 25. Restriction of licensees.
8 (a) Manufacturer. A person may not be licensed as a
9manufacturer of a video gaming terminal in Illinois unless the
10person has a valid manufacturer's license issued under this
11Act. A manufacturer may only sell video gaming terminals for
12use in Illinois to persons having a valid distributor's
13license.
14 (b) Distributor. A person may not sell, distribute, or
15lease or market a video gaming terminal in Illinois unless the
16person has a valid distributor's license issued under this Act.
17A distributor may only sell video gaming terminals for use in
18Illinois to persons having a valid distributor's or terminal
19operator's license.
20 (c) Terminal operator. A person may not own, maintain, or
21place a video gaming terminal unless he has a valid terminal
22operator's license issued under this Act. A terminal operator
23may only place video gaming terminals for use in Illinois in

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1licensed establishments, licensed truck stop establishments,
2licensed fraternal establishments, and licensed veterans
3establishments. No terminal operator may give anything of
4value, including but not limited to a loan or financing
5arrangement, to a licensed establishment, licensed truck stop
6establishment, licensed fraternal establishment, or licensed
7veterans establishment as any incentive or inducement to locate
8video terminals in that establishment. Of the after-tax profits
9from a video gaming terminal, 50% shall be paid to the terminal
10operator and 50% shall be paid to the licensed establishment,
11licensed truck stop establishment, licensed fraternal
12establishment, or licensed veterans establishment,
13notwithstanding any agreement to the contrary. A video terminal
14operator that violates one or more requirements of this
15subsection is guilty of a Class 4 felony and is subject to
16termination of his or her license by the Board.
17 (d) Licensed technician. A person may not service,
18maintain, or repair a video gaming terminal in this State
19unless he or she (1) has a valid technician's license issued
20under this Act, (2) is a terminal operator, or (3) is employed
21by a terminal operator, distributor, or manufacturer.
22 (d-5) Licensed terminal handler. No person, including, but
23not limited to, an employee or independent contractor working
24for a manufacturer, distributor, supplier, technician, or
25terminal operator licensed pursuant to this Act, shall have
26possession or control of a video gaming terminal, or access to

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1the inner workings of a video gaming terminal, unless that
2person possesses a valid terminal handler's license issued
3under this Act.
4 (e) Licensed establishment. No video gaming terminal may be
5placed in any licensed establishment, licensed veterans
6establishment, licensed truck stop establishment, or licensed
7fraternal establishment unless the owner or agent of the owner
8of the licensed establishment, licensed veterans
9establishment, licensed truck stop establishment, or licensed
10fraternal establishment has entered into a written use
11agreement with the terminal operator for placement of the
12terminals. A copy of the use agreement shall be on file in the
13terminal operator's place of business and available for
14inspection by individuals authorized by the Board. A licensed
15establishment, licensed truck stop establishment, licensed
16veterans establishment, or licensed fraternal establishment
17may operate up to 5 video gaming terminals on its premises at
18any time.
19 (f) (Blank).
20 (g) Financial interest restrictions. As used in this Act,
21"substantial interest" in a partnership, a corporation, an
22organization, an association, a business, or a limited
23liability company means:
24 (A) When, with respect to a sole proprietorship, an
25 individual or his or her spouse owns, operates, manages, or
26 conducts, directly or indirectly, the organization,

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1 association, or business, or any part thereof; or
2 (B) When, with respect to a partnership, the individual
3 or his or her spouse shares in any of the profits, or
4 potential profits, of the partnership activities; or
5 (C) When, with respect to a corporation, an individual
6 or his or her spouse is an officer or director, or the
7 individual or his or her spouse is a holder, directly or
8 beneficially, of 5% or more of any class of stock of the
9 corporation; or
10 (D) When, with respect to an organization not covered
11 in (A), (B) or (C) above, an individual or his or her
12 spouse is an officer or manages the business affairs, or
13 the individual or his or her spouse is the owner of or
14 otherwise controls 10% or more of the assets of the
15 organization; or
16 (E) When an individual or his or her spouse furnishes
17 5% or more of the capital, whether in cash, goods, or
18 services, for the operation of any business, association,
19 or organization during any calendar year; or
20 (F) When, with respect to a limited liability company,
21 an individual or his or her spouse is a member, or the
22 individual or his or her spouse is a holder, directly or
23 beneficially, of 5% or more of the membership interest of
24 the limited liability company.
25 For purposes of this subsection (g), "individual" includes
26all individuals or their spouses whose combined interest would

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1qualify as a substantial interest under this subsection (g) and
2whose activities with respect to an organization, association,
3or business are so closely aligned or coordinated as to
4constitute the activities of a single entity.
5 (h) Location restriction. A licensed establishment,
6licensed truck stop establishment, licensed fraternal
7establishment, or licensed veterans establishment that is (i)
8located within 1,000 feet of a facility operated by an
9organization licensee licensed under the Illinois Horse Racing
10Act of 1975 or the home dock of a riverboat licensed under the
11Riverboat Gambling Act or (ii) located within 100 feet of a
12school or a place of worship under the Religious Corporation
13Act, is ineligible to operate a video gaming terminal. The
14location restrictions in this subsection (h) do not apply if
15(A) a facility operated by an organization licensee, a school,
16or a place of worship moves to or is established within the
17restricted area after a licensed establishment, licensed truck
18stop establishment, licensed fraternal establishment, or
19licensed veterans establishment becomes licensed under this
20Act or (B) a school or place of worship moves to or is
21established within the restricted area after a licensed
22establishment, licensed truck stop establishment, licensed
23fraternal establishment, or licensed veterans establishment
24obtains its original liquor license. For the purpose of this
25subsection, "school" means an elementary or secondary public
26school, or an elementary or secondary private school registered

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1with or recognized by the State Board of Education.
2 Notwithstanding the provisions of this subsection (h), the
3Board may waive the requirement that a licensed establishment,
4licensed truck stop establishment, licensed fraternal
5establishment, or licensed veterans establishment not be
6located within 1,000 feet from a facility operated by an
7organization licensee licensed under the Illinois Horse Racing
8Act of 1975 or the home dock of a riverboat licensed under the
9Riverboat Gambling Act. The Board shall not grant such waiver
10if there is any common ownership or control, shared business
11activity, or contractual arrangement of any type between the
12establishment and the organization licensee or owners licensee
13of a riverboat. The Board shall adopt rules to implement the
14provisions of this paragraph.
15 (h-5) Restrictions on licenses in malls. The Board shall
16not grant an application to become a licensed video gaming
17location if the Board determines that granting the application
18would more likely than not cause a terminal operator,
19individually or in combination with other terminal operators,
20licensed video gaming location, or other person or entity, to
21operate the video gaming terminals in 2 or more licensed video
22gaming locations as a single video gaming operation.
23 (1) In making determinations under this subsection
24 (h-5), factors to be considered by the Board shall include,
25 but not be limited to, the following:
26 (A) the physical aspects of the location;

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1 (B) the ownership, control, or management of the
2 location;
3 (C) any arrangements, understandings, or
4 agreements, written or otherwise, among or involving
5 any persons or entities that involve the conducting of
6 any video gaming business or the sharing of costs or
7 revenues; and
8 (D) the manner in which any terminal operator or
9 other related entity markets, advertises, or otherwise
10 describes any location or locations to any other person
11 or entity or to the public.
12 (2) The Board shall presume, subject to rebuttal, that
13 the granting of an application to become a licensed video
14 gaming location within a mall will cause a terminal
15 operator, individually or in combination with other
16 persons or entities, to operate the video gaming terminals
17 in 2 or more licensed video gaming locations as a single
18 video gaming operation if the Board determines that
19 granting the license would create a local concentration of
20 licensed video gaming locations.
21 For the purposes of this subsection (h-5):
22 "Mall" means a building, or adjoining or connected
23buildings, containing 4 or more separate locations.
24 "Video gaming operation" means the conducting of video
25gaming and all related activities.
26 "Location" means a space within a mall containing a

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1separate business, a place for a separate business, or a place
2subject to a separate leasing arrangement by the mall owner.
3 "Licensed video gaming location" means a licensed
4establishment, licensed fraternal establishment, licensed
5veterans establishment, or licensed truck stop.
6 "Local concentration of licensed video gaming locations"
7means that the combined number of licensed video gaming
8locations within a mall exceed half of the separate locations
9within the mall.
10 (i) Undue economic concentration. In addition to
11considering all other requirements under this Act, in deciding
12whether to approve the operation of video gaming terminals by a
13terminal operator in a location, the Board shall consider the
14impact of any economic concentration of such operation of video
15gaming terminals. The Board shall not allow a terminal operator
16to operate video gaming terminals if the Board determines such
17operation will result in undue economic concentration. For
18purposes of this Section, "undue economic concentration" means
19that a terminal operator would have such actual or potential
20influence over video gaming terminals in Illinois as to:
21 (1) substantially impede or suppress competition among
22 terminal operators;
23 (2) adversely impact the economic stability of the
24 video gaming industry in Illinois; or
25 (3) negatively impact the purposes of the Video Gaming
26 Act.

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1 The Board shall adopt rules concerning undue economic
2concentration with respect to the operation of video gaming
3terminals in Illinois. The rules shall include, but not be
4limited to, (i) limitations on the number of video gaming
5terminals operated by any terminal operator within a defined
6geographic radius and (ii) guidelines on the discontinuation of
7operation of any such video gaming terminals the Board
8determines will cause undue economic concentration.
9 (j) The provisions of the Illinois Antitrust Act are fully
10and equally applicable to the activities of any licensee under
11this Act.
12(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,
13eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
14 (230 ILCS 40/27)
15 Sec. 27. Prohibition or limitation of video gaming by
16political subdivision.
17 (a) A municipality may pass an ordinance prohibiting video
18gaming within the corporate limits of the municipality. A
19county board may, for the unincorporated area of the county,
20pass an ordinance prohibiting video gaming within the
21unincorporated area of the county.
22 (b) A home rule municipality, or a home rule county with
23respect to unincorporated portions of the county, may impose
24separate requirements on video gaming that provide sources of
25municipal or county revenue or impose limitations on video

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1gaming more restrictive than those provided under this Act.
2These requirements may include the following:
3 (1) license fees;
4 (2) occupation taxes;
5 (3) licensing requirements;
6 (4) limitations on hours of video gaming terminal play
7 more restrictive than those provided under the liquor
8 license of a licensed establishment, licensed veterans
9 organization, or licensed fraternal organization;
10 (5) limitations on the numbers of video gaming
11 terminals within a licensed establishment, licensed
12 veterans organization, licensed fraternal organization, or
13 licensed truck stop;
14 (6) limitations on the total number of licensed
15 establishments, licensed veterans organizations, licensed
16 fraternal organizations, or licensed truck stops allowed
17 within the municipality or county, or a specific portion of
18 the municipality or county;
19 (7) limitations on hours of video gaming play;
20 (8) zoning to limit the areas within a municipality or
21 county where video gaming is permitted; or
22 (9) other requirements intended to promote safety,
23 morals, health, or welfare within the municipality or
24 county.
25(Source: P.A. 96-34, eff. 7-13-09.)

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1 (230 ILCS 40/80)
2 Sec. 80. Applicability of Illinois Riverboat Gambling Act.
3The provisions of the Illinois Riverboat Gambling Act, and all
4rules promulgated thereunder, shall apply to the Video Gaming
5Act, except where there is a conflict between the 2 Acts. All
6current supplier licensees under the Riverboat Gambling Act
7shall be entitled to licensure under the Video Gaming Act as
8manufacturers, distributors, or suppliers without additional
9Board investigation or approval, except by vote of the Board;
10however, they are required to pay application and annual fees
11under this Act. All provisions of the Uniform Penalty and
12Interest Act shall apply, as far as practicable, to the subject
13matter of this Act to the same extent as if such provisions
14were included herein.
15(Source: P.A. 96-37, eff. 7-13-09.)
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