Bill Text: IL SB1894 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the Video Gaming Act. Provides that, of the after-tax profits from a video gaming terminal located in a licensed veterans establishment, 45% (rather than 50%) shall be paid to the terminal operator, 50% shall be paid to the licensed veterans establishment, and 5% shall be paid to veterans service organizations with which the licensed veterans establishment is affiliated in proportion to that veterans service organizations previous year's claims processed, notwithstanding any agreement between the terminal operator and the licensed veterans establishment to the contrary. Of the 5% paid to a veterans service organization, provides that 75% must be used by the veterans service organization's veterans services offices. Upon request of the Illinois Gaming Board, the veterans service organization must provide documentation that the spending of any moneys received is in compliance with these provisions.

Spectrum: Bipartisan Bill

Status: (Failed) 2019-01-09 - Session Sine Die [SB1894 Detail]

Download: Illinois-2017-SB1894-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB1894

Introduced 2/10/2017, by Sen. Wm. Sam McCann

SYNOPSIS AS INTRODUCED:
230 ILCS 40/25

Amends the Video Gaming Act. Provides that, of the after-tax profits from a video gaming terminal located in a licensed veterans establishment, 45% (rather than 50%) shall be paid to the terminal operator, 50% shall be paid to the licensed veterans establishment, and 5% shall be paid to veterans service organizations with which the licensed veterans establishment is affiliated in proportion to that veterans service organizations previous year's claims processed, notwithstanding any agreement between the terminal operator and the licensed veterans establishment to the contrary. Of the 5% paid to a veterans service organization, provides that 75% must be used by the veterans service organization's veterans services offices. Upon request of the Illinois Gaming Board, the veterans service organization must provide documentation that the spending of any moneys received is in compliance with these provisions.
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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
5Section 25 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.
9 Of the after-tax profits from a video gaming terminal
10located in a licensed establishment, licensed truck stop
11establishment, or licensed fraternal establishment, 50% shall
12be paid to the terminal operator and 50% shall be paid to the
13licensed establishment, licensed truck stop establishment, or
14licensed fraternal establishment, or licensed veterans
15establishment, notwithstanding any agreement to the contrary.
16 Of the after-tax profits from a video gaming terminal
17located in a licensed veterans establishment, 45% shall be paid
18to the terminal operator, 50% shall be paid to the licensed
19veterans establishment, and 5% shall be paid to veterans
20service organizations with which the licensed veterans
21establishment is affiliated in proportion to that veterans
22service organizations previous year's claims processed,
23notwithstanding any agreement between the terminal operator
24and the licensed veterans establishment to the contrary. Of the
255% paid to a veterans service organization, 75% must be used by
26the veterans service organization's veterans services offices.

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1Upon request of the Board, the veterans service organization
2must provide documentation that the spending of any moneys
3received under this subsection (c) complies with the
4requirements of this subsection (c). For the purposes of this
5subsection (c), "veterans service organization" has the
6meaning given to that term in Section 10.8 of the Illinois
7Lottery Law.
8 A video terminal operator that violates one or more
9requirements of this subsection is guilty of a Class 4 felony
10and is subject to termination of his or her license by the
11Board.
12 (d) Licensed technician. A person may not service,
13maintain, or repair a video gaming terminal in this State
14unless he or she (1) has a valid technician's license issued
15under this Act, (2) is a terminal operator, or (3) is employed
16by a terminal operator, distributor, or manufacturer.
17 (d-5) Licensed terminal handler. No person, including, but
18not limited to, an employee or independent contractor working
19for a manufacturer, distributor, supplier, technician, or
20terminal operator licensed pursuant to this Act, shall have
21possession or control of a video gaming terminal, or access to
22the inner workings of a video gaming terminal, unless that
23person possesses a valid terminal handler's license issued
24under this Act.
25 (e) Licensed establishment. No video gaming terminal may be
26placed in any licensed establishment, licensed veterans

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1establishment, licensed truck stop establishment, or licensed
2fraternal establishment unless the owner or agent of the owner
3of the licensed establishment, licensed veterans
4establishment, licensed truck stop establishment, or licensed
5fraternal establishment has entered into a written use
6agreement with the terminal operator for placement of the
7terminals. A copy of the use agreement shall be on file in the
8terminal operator's place of business and available for
9inspection by individuals authorized by the Board. A licensed
10establishment, licensed truck stop establishment, licensed
11veterans establishment, or licensed fraternal establishment
12may operate up to 5 video gaming terminals on its premises at
13any time.
14 (f) (Blank).
15 (g) Financial interest restrictions. As used in this Act,
16"substantial interest" in a partnership, a corporation, an
17organization, an association, a business, or a limited
18liability company means:
19 (A) When, with respect to a sole proprietorship, an
20 individual or his or her spouse owns, operates, manages, or
21 conducts, directly or indirectly, the organization,
22 association, or business, or any part thereof; or
23 (B) When, with respect to a partnership, the individual
24 or his or her spouse shares in any of the profits, or
25 potential profits, of the partnership activities; or
26 (C) When, with respect to a corporation, an individual

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

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1licensed truck stop establishment, licensed fraternal
2establishment, or licensed veterans establishment that is (i)
3located within 1,000 feet of a facility operated by an
4organization licensee licensed under the Illinois Horse Racing
5Act of 1975 or the home dock of a riverboat licensed under the
6Riverboat Gambling Act or (ii) located within 100 feet of a
7school or a place of worship under the Religious Corporation
8Act, is ineligible to operate a video gaming terminal. The
9location restrictions in this subsection (h) do not apply if
10(A) a facility operated by an organization licensee, a school,
11or a place of worship moves to or is established within the
12restricted area after a licensed establishment, licensed truck
13stop establishment, licensed fraternal establishment, or
14licensed veterans establishment becomes licensed under this
15Act or (B) a school or place of worship moves to or is
16established within the restricted area after a licensed
17establishment, licensed truck stop establishment, licensed
18fraternal establishment, or licensed veterans establishment
19obtains its original liquor license. For the purpose of this
20subsection, "school" means an elementary or secondary public
21school, or an elementary or secondary private school registered
22with or recognized by the State Board of Education.
23 Notwithstanding the provisions of this subsection (h), the
24Board may waive the requirement that a licensed establishment,
25licensed truck stop establishment, licensed fraternal
26establishment, or licensed veterans establishment not be

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1located within 1,000 feet from a facility operated by an
2organization licensee licensed under the Illinois Horse Racing
3Act of 1975 or the home dock of a riverboat licensed under the
4Riverboat Gambling Act. The Board shall not grant such waiver
5if there is any common ownership or control, shared business
6activity, or contractual arrangement of any type between the
7establishment and the organization licensee or owners licensee
8of a riverboat. The Board shall adopt rules to implement the
9provisions of this paragraph.
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.)
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