Illinois General Assembly - Full Text of Public Act 098-0112
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Public Act 098-0112


 

Public Act 0112 98TH GENERAL ASSEMBLY

  
  
  

 


 
Public Act 098-0112
 
HB1570 EnrolledLRB098 09256 AMC 39395 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 25 as follows:
 
    (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
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 any agreement to the contrary. 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
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,
"substantial interest" in a partnership, a corporation, an
organization, an association, a business, or a limited
liability company 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; or
        (F) When, with respect to a limited liability company,
    an individual or his or her spouse is a member, or the
    individual or his or her spouse is a holder, directly or
    beneficially, of 5% or more of the membership interest of
    the limited liability company.
    For purposes of this subsection (g), "individual" includes
all individuals or their spouses whose combined interest would
qualify as a substantial interest under this subsection (g) and
whose activities with respect to an organization, association,
or business are so closely aligned or coordinated as to
constitute the activities of a single entity.
    (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
organization licensee or an inter-track wagering 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 100 feet of a school or a place of
worship under the Religious Corporation Act, is ineligible to
operate a video gaming terminal. The location restrictions in
this subsection (h) do not apply if a facility operated by an
organization licensee, an inter-track wagering licensee, or an
inter-track wagering location licensee, a school, or a place of
worship moves to or is established within the restricted area
after a licensed establishment, licensed truck stop
establishment, licensed fraternal establishment, or licensed
veterans establishment becomes licensed under this Act. For the
purpose of this subsection, "school" means an elementary or
secondary public school, or an elementary or secondary private
school registered with or recognized by the State Board of
Education.
    Notwithstanding the provisions of this subsection (h), the
Board may waive the requirement that a licensed establishment,
licensed truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment not be
located within 1,000 feet from a facility operated by an
organization licensee or , an inter-track wagering licensee, or
an inter-track 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. The Board
shall not grant such waiver if there is any common ownership or
control, shared business activity, or contractual arrangement
of any type between the establishment and the organization
licensee, inter-track wagering licensee, inter-track wagering
location licensee, or owners licensee of a riverboat. The Board
shall adopt rules to implement the provisions of this
paragraph.
    (i) Undue economic concentration. In addition to
considering all other requirements under this Act, in deciding
whether to approve the operation of video gaming terminals by a
terminal operator in a location, the Board shall consider the
impact of any economic concentration of such operation of video
gaming terminals. The Board shall not allow a terminal operator
to operate video gaming terminals if the Board determines such
operation will result in undue economic concentration. For
purposes of this Section, "undue economic concentration" means
that a terminal operator would have such actual or potential
influence over video gaming terminals in Illinois as to:
        (1) substantially impede or suppress competition among
    terminal operators;
        (2) adversely impact the economic stability of the
    video gaming industry in Illinois; or
        (3) negatively impact the purposes of the Video Gaming
    Act.
    The Board shall adopt rules concerning undue economic
concentration with respect to the operation of video gaming
terminals in Illinois. The rules shall include, but not be
limited to, (i) limitations on the number of video gaming
terminals operated by any terminal operator within a defined
geographic radius and (ii) guidelines on the discontinuation of
operation of any such video gaming terminals the Board
determines will cause undue economic concentration.
    (j) 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; 96-1000, eff. 7-2-10; 96-1410, eff. 7-30-10;
96-1479, eff. 8-23-10; 97-333, eff. 8-12-11.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 07/26/2013