093_HB0142ham001

 










                                     LRB093 02210 LRD 16271 a

 1                     AMENDMENT TO HOUSE BILL 142

 2        AMENDMENT NO.     .  Amend House Bill  142  by  replacing
 3    everything after the enacting clause with the following:

 4        "Section  1.  Short  title.  This Act may be cited as the
 5    Video Gaming Act.

 6        Section 5.  Definitions.  As used in this Act:
 7        "Board" means the Illinois Gaming Board.
 8        "Credit" means 5, 10, or 25 cents either won or purchased
 9    by a player.
10        "Distributor"  means  an  individual,   partnership,   or
11    corporation  licensed  under this Act to buy, sell, lease, or
12    distribute video gaming  terminals  or  major  components  or
13    parts   of   video  gaming  terminals  to  or  from  terminal
14    operators.
15        "Terminal operator" means an individual,  partnership  or
16    corporation  that  is  licensed under this Act and that owns,
17    services, and maintains video gaming terminals for  placement
18    in     licensed     establishments,     licensed    fraternal
19    establishments, or licensed veterans establishments.
20        "Licensed technician" means an individual who is licensed
21    under this Act to repair, service, and maintain video  gaming
22    terminals.
 
                            -2-      LRB093 02210 LRD 16271 a
 1        "Manufacturer"   means  an  individual,  partnership,  or
 2    corporation  that  is  licensed  under  this  Act  and   that
 3    manufactures or assembles video gaming terminals.
 4        "Supplier"   means   an   individual,   partnership,   or
 5    corporation  that  is licensed under this Act to supply major
 6    components or parts to video  gaming  terminals  to  licensed
 7    terminal operators.
 8        "Net terminal income" means money put into a video gaming
 9    terminal minus credits paid out to players.
10        "Video  gaming  terminal" means any electronic video game
11    machine that, upon insertion of cash, is available to play or
12    simulate the play of a video game, including but not  limited
13    to  video  poker,  line  up, and blackjack, authorized by the
14    Board utilizing a video display and microprocessors in  which
15    the  player  may  receive  free  games or credits that can be
16    redeemed for cash.  The term does not include a machine  that
17    directly dispenses coins, cash, or tokens or is for amusement
18    purposes only.
19        "Licensed   establishment"   means  any  licensed  retail
20    establishment where alcoholic liquor is drawn, poured, mixed,
21    or otherwise served for consumption on the premises.
22        "Licensed fraternal  establishment"  means  the  location
23    where  a  qualified  fraternal  organization that derives its
24    charter from  a  national  fraternal  organization  regularly
25    meets.
26        "Licensed  veterans  establishment"  means  the  location
27    where  a  qualified  veterans  organization  that derives its
28    charter  from  a  national  veterans  organization  regularly
29    meets.

30        Section  15.  Minimum  requirements  for  licensing   and
31    registration.   Every  video gaming terminal offered for play
32    shall first be tested and approved pursuant to the  rules  of
33    the  Board,  and  each  video gaming terminal offered in this
 
                            -3-      LRB093 02210 LRD 16271 a
 1    State for play shall conform to an approved model.  The Board
 2    may contract with  an  independent  outside  vendor  for  the
 3    examination of video gaming machines and associated equipment
 4    as required by this Section.  Each approved model shall, at a
 5    minimum, meet the following criteria:
 6             (1)  It  must conform to all requirements of federal
 7        law and regulations,  including  FCC  Class  A  Emissions
 8        Standards.
 9             (2)  It  must theoretically pay out a mathematically
10        demonstrable percentage during the expected  lifetime  of
11        the machine of all amounts played, which must not be less
12        than 80%.  Video gaming terminals that may be affected by
13        skill must meet this standard when using a method of play
14        that  will provide the greatest return to the player over
15        a period of continuous play.
16             (3)  It must  use  a  random  selection  process  to
17        determine the outcome of each play of a game.  The random
18        selection process must meet 99% confidence limits using a
19        standard  chi-squared  test  for (randomness) goodness of
20        fit.
21             (4)  It must display an accurate  representation  of
22        the game outcome.
23             (5)  It  must  not automatically alter pay tables or
24        any function  of  the  video  gaming  terminal  based  on
25        internal computation of hold percentage or have any means
26        of manipulation that affects the random selection process
27        or probabilities of winning a game.
28             (6)  It  must  not  be  adversely affected by static
29        discharge or other electromagnetic interference.
30             (7)  It must be capable of detecting and  displaying
31        the following conditions during idle states or on demand:
32        power reset; door open; and door just closed.
33             (8)  It  must  have the capacity to display complete
34        play history (outcome, intermediate play  steps,  credits
 
                            -4-      LRB093 02210 LRD 16271 a
 1        available,  bets placed, credits paid, and credits cashed
 2        out) for the most recent game played and 10  games  prior
 3        thereto.
 4             (9)  The  theoretical  payback percentage of a video
 5        gaming terminal must not  be  capable  of  being  changed
 6        without making a hardware or software change in the video
 7        gaming terminal.
 8             (10)  Video  gaming  terminals  must  be designed so
 9        that replacement of parts or modules required for  normal
10        maintenance  does  not  necessitate  replacement  of  the
11        electromechanical meters.
12             (11)  It  must have nonresettable meters housed in a
13        locked area of the terminal that keep a permanent  record
14        of  all cash inserted into the machine, all winnings made
15        by the terminal printer,  credits  played  in  for  video
16        gaming   terminals,  and  credits  won  by  video  gaming
17        players.  The video  gaming  terminal  must  provide  the
18        means  for  on-demand  display  of  stored information as
19        determined by the Board.
20             (12)  Electronically   stored   meter    information
21        required  by this Section must be preserved for a minimum
22        of 180 days after a power loss to the service.
23             (13)  It must  have  one  or  more  mechanisms  that
24        accept   coins  or  cash  in  the  form  of  bills.   The
25        mechanisms shall be designed to prevent obtaining credits
26        without paying by stringing, slamming, drilling, or other
27        means.
28             (14)  It shall have accounting software  that  keeps
29        an  electronic  record which includes, but is not limited
30        to, the following: total cash  inserted  into  the  video
31        gaming  terminal; the value of winning tickets claimed by
32        players; the total credits played; and the total  credits
33        awarded by a video gaming terminal.
34             (15)  It shall be linked by a central communications
 
                            -5-      LRB093 02210 LRD 16271 a
 1        system   to   provide  auditing  program  information  as
 2        approved by the Board. In no event may the communications
 3        system approved by the Board limit participation to  only
 4        one  manufacturer of video gaming terminals by either the
 5        cost in implementing the necessary program  modifications
 6        to  communicate  or the inability to communicate with the
 7        central communications system.

 8        Section 20.  Direct dispensing of receipt  tickets  only.
 9    A  video  gaming  terminal  may  not directly dispense coins,
10    cash, tokens, or any  other  article  of  exchange  or  value
11    except  for  receipt  tickets.  Tickets shall be dispensed by
12    pressing the ticket dispensing button  on  the  video  gaming
13    terminal  at the end of one's turn or play.  The ticket shall
14    indicate the total amount of credits and the cash award,  the
15    time  of  day  in a 24-hour format showing hours and minutes,
16    the date, the terminal serial number, the  sequential  number
17    of  the ticket, and an encrypted validation number from which
18    the validity of the prize may be determined. The player shall
19    turn in this ticket to the appropriate person at the licensed
20    establishment, licensed fraternal establishment, or  licensed
21    veterans  establishment  to receive the cash award.  The cost
22    of the credit shall be 5 cents, 10 cents, or  25  cents,  and
23    the  maximum  wager  played  per hand shall not exceed $2. No
24    cash award for the maximum wager on any individual hand shall
25    exceed $500.

26        Section 25.  Restriction of licensees.
27        (a)  Manufacturer.  A person may not  be  licensed  as  a
28    manufacturer  of  a  video gaming terminal in Illinois unless
29    the person has a valid manufacturer's  license  issued  under
30    this   Act.   A  manufacturer  may  only  sell  video  gaming
31    terminals for use in  Illinois  to  persons  having  a  valid
32    distributor's license.
 
                            -6-      LRB093 02210 LRD 16271 a
 1        (b)  Distributor.    A  person  may  not  sell,  service,
 2    distribute, or lease or market a  video  gaming  terminal  in
 3    Illinois  unless the person has a valid distributor's license
 4    issued under this Act.  A distributor  may  only  sell  video
 5    gaming  terminals  for  use  in  Illinois to persons having a
 6    valid distributor's or terminal operator's license.
 7        (c)  Terminal operator.  A person may not  own,  service,
 8    maintain,  lease,  or place a video gaming terminal unless he
 9    has a valid terminal operator's  license  issued  under  this
10    Act.   A  terminal  operator  may  only  place  video  gaming
11    terminals  for  use  in  Illinois in licensed establishments,
12    licensed  fraternal  establishments,  and  licensed  veterans
13    establishments. No terminal operator  may  give  anything  of
14    value,  including  but  not  limited  to  a loan or financing
15    arrangement, to a licensed establishment, licensed  fraternal
16    establishment,  or  licensed  veterans  establishment  as any
17    incentive or inducement to locate  video  terminals  in  that
18    establishment.   Of the after-tax profits from a video gaming
19    terminal, 50% shall be paid to the terminal operator and  50%
20    shall   be  paid  to  the  licensed  establishment,  licensed
21    fraternal establishment, or licensed veterans  establishment.
22    A   terminal   operator  shall  be  entitled  to  access  all
23    information recorded by the operator's machines  pursuant  to
24    item (17) of Section 15. No terminal operator may own or have
25    a  substantial  interest  in more than 5% of the video gaming
26    terminals licensed in this State.
27        (d)  Licensed  technician.  A  person  may  not  service,
28    maintain, or repair a video gaming  terminal  in  this  State
29    unless  he or she (1) has a valid technician's license issued
30    under this Act,  (2)  is  a  terminal  operator,  or  (3)  is
31    employed    by   a   terminal   operator,   distributor,   or
32    manufacturer.
33        (e)  Licensed  establishment.   A  valid  liquor  license
34    shall  be  prima  facie  evidence  of  compliance  with   the
 
                            -7-      LRB093 02210 LRD 16271 a
 1    licensing  requirements of this Act. No video gaming terminal
 2    may be placed  in  any  licensed  veterans  establishment  or
 3    licensed fraternal establishment unless the owner or agent of
 4    the  owner of the licensed veterans establishment or licensed
 5    fraternal  establishment  has  entered  into  a  written  use
 6    agreement with the terminal operator  for  placement  of  the
 7    terminals.   A  copy of the use agreement shall be on file in
 8    the terminal operator's place of business and  available  for
 9    inspection   by  individuals  authorized  by  the  Board.   A
10    licensed establishment may not have more than 3 video  gaming
11    terminals  on  its  premises  at  any  time, unless the Board
12    authorizes   a   greater   number.   A   licensed    veterans
13    establishment or licensed fraternal establishment may have up
14    to  5  video  gaming  terminals  on its premises at any time,
15    unless the Board authorizes a greater number.
16        (f)  Residency requirement.   Each  licensed  distributor
17    and terminal operator must be an Illinois resident.  However,
18    if  an  out  of  state  distributor  or terminal operator has
19    performed its respective  business  within  Illinois  for  at
20    least  48 months prior to the effective date of this Act, the
21    out of state person may be eligible for licensing under  this
22    Act, upon application to and approval of the Board.
23        (g)  Financial  interest  restrictions.  As  used in this
24    Act, "substantial interest" in an organization,  association,
25    or business means:
26                  (A)  When,    with    respect    to    a   sole
27             proprietorship, an individual or his or her  marital
28             community  owns,  operates,  manages,  or  conducts,
29             directly    or    indirectly,    the   organization,
30             association, or business, or any part thereof; or
31                  (B)  When, with respect to a  partnership,  the
32             individual or his or her marital community shares in
33             any  of  the  profits,  or potential profits, of the
34             partnership activities; or
 
                            -8-      LRB093 02210 LRD 16271 a
 1                  (C)  When, with respect to  a  corporation,  an
 2             individual  or  his  or  her spouse is an officer or
 3             director, or the individual or his  or  her  marital
 4             community  is a holder, directly or beneficially, of
 5             5% or more of any class of stock of the corporation;
 6             or
 7                  (D)  When, with respect to an organization  not
 8             covered  in  (A), (B) or (C) above, an individual or
 9             his or her spouse  is  an  officer  or  manages  the
10             business  affairs,  or  the individual or his or her
11             marital community  is  the  owner  of  or  otherwise
12             controls   10%   or   more  of  the  assets  of  the
13             organization; or
14                  (E)  When an individual or his or  her  marital
15             community  furnishes  5%  or  more  of  the capital,
16             whether  in  cash,  goods,  or  services,  for   the
17             operation   of   any   business,   association,   or
18             organization during any calendar year.
19        (h)  Location  restriction.   A  licensed  establishment,
20    licensed   fraternal   establishment,  or  licensed  veterans
21    establishment that is located within 500 feet of a race track
22    licensed under the Illinois  Horse  Racing  Act  of  1975  or
23    within  1,000  feet  of the home dock of a riverboat licensed
24    under the Riverboat Gambling Act is ineligible  to operate  a
25    video gaming terminal.

26        Section  27.  Prohibition  of  video  gaming by political
27    subdivision.   A   municipality   may   pass   an   ordinance
28    prohibiting  video  gaming within the corporate limits of the
29    municipality. A county board may, for the unincorporated area
30    of the county, pass an  ordinance  prohibiting  video  gaming
31    within the unincorporated area of the county.

32        Section  30.  Multiple  types  of licenses prohibited.  A
 
                            -9-      LRB093 02210 LRD 16271 a
 1    video gaming terminal manufacturer may not be licensed  as  a
 2    video  gaming  terminal  distributor  or   operator  or  own,
 3    manage,   or   control  a  licensed  establishment,  licensed
 4    fraternal establishment, or licensed veterans  establishment,
 5    and  shall be licensed only to sell to distributors.  A video
 6    gaming terminal distributor may not be licensed  as  a  video
 7    gaming  terminal  manufacturer or operator or own, manage, or
 8    control  a   licensed   establishment,   licensed   fraternal
 9    establishment,  or licensed veterans establishment, and shall
10    only contract with a  licensed  terminal  operator.  A  video
11    gaming  terminal  operator  may  not  be  licensed as a video
12    gaming terminal manufacturer or distributor or  own,  manage,
13    or  control  a  licensed  establishment,  licensed  fraternal
14    establishment,  or licensed veterans establishment, and shall
15    be licensed only to contract with licensed  distributors  and
16    licensed  establishments,  licensed fraternal establishments,
17    and licensed veterans establishments. An owner or manager  of
18    a  licensed  establishment, licensed fraternal establishment,
19    or licensed veterans establishment may not be licensed  as  a
20    video gaming terminal manufacturer, distributor, or operator,
21    and shall only contract with a licensed operator to place and
22    service this equipment.

23        Section  35.  Display of license; confiscation; violation
24    as felony.  Each video gaming terminal shall be  licensed  by
25    the  Board before placement or operation on the premises of a
26    licensed establishment.  Each machine shall have the  license
27    maintained  at  the  location.   Failure  to do so is a petty
28    offense  with  a  fine  not  to  exceed  $100.  Any  licensed
29    establishment, licensed fraternal establishment, or  licensed
30    veterans establishment used for the conduct of gambling games
31    in violation of this Act shall be considered a gambling place
32    in  violation  of  Section 28-3 of the Criminal Code of 1961.
33    Every gambling device  found  in  a  licensed  establishment,
 
                            -10-     LRB093 02210 LRD 16271 a
 1    licensed   fraternal   establishment,  or  licensed  veterans
 2    establishment operating gambling games in violation  of  this
 3    Act   shall   be   subject   to  seizure,  confiscation,  and
 4    destruction as provided in Section 28-5 of the Criminal  Code
 5    of  1961.  Any license issued under the Liquor Control Act of
 6    1934 to any owner or operator of  a  licensed  establishment,
 7    licensed   fraternal   establishment,  or  licensed  veterans
 8    establishment that operates or permits  the  operation  of  a
 9    video  gaming  terminal within its establishment in violation
10    of this Act shall be immediately revoked. No person may  own,
11    operate,  have  in  his or her possession or custody or under
12    his or her control, or permit to be kept in any  place  under
13    his  or  her  possession  or  control, any device that awards
14    credits and contains a circuit, meter, or switch  capable  of
15    removing  and recording the removal of credits when the award
16    of credits is dependent upon chance.   A  violation  of  this
17    Section  is  a  Class  4 felony.  All devices that are owned,
18    operated, or possessed  in  violation  of  this  Section  are
19    hereby  declared  to be public nuisances and shall be subject
20    to seizure, confiscation,  and  destruction  as  provided  in
21    Section  28-5 of the Criminal Code of 1961. The provisions of
22    this Section do not apply to devices or electronic video game
23    terminals licensed pursuant to this Act.

24        Section  40.  Video  gaming  terminal   use   by   minors
25    prohibited.   No  licensee  shall  cause or permit any person
26    under the age of 21 years to  use  or  play  a  video  gaming
27    terminal.   Any licensee who knowingly permits a person under
28    the age of 21 years to use or play a video gaming terminal is
29    guilty of a business offense and shall be fined an amount not
30    to exceed $5,000.

31        Section 45.  Issuance of license.
32        (a)  The burden is upon each applicant to demonstrate his
 
                            -11-     LRB093 02210 LRD 16271 a
 1    suitability  for  licensure.   Each  video  gaming   terminal
 2    manufacturer,  distributor, operator, licensed establishment,
 3    licensed  fraternal  establishment,  and  licensed   veterans
 4    establishment  shall  be licensed by the Board. The Board may
 5    not issue a license under this Act to any person who,  within
 6    10  years  of the date of the application, has been convicted
 7    of a felony under the laws of this State, any other state, or
 8    the United States, or to any firm  or  corporation  in  which
 9    such   a  person  is  an  officer,  director,  or  managerial
10    employee.
11        (b)  A non-refundable application fee shall  be  paid  at
12    the time an application for a license is filed with the Board
13    in the following amounts:
14             (1)  Manufacturer..........................  $ 5,000
15             (2)  Distributor...........................  $ 5,000
16             (3)  Terminal operator.....................  $ 5,000
17             (4)  Supplier..............................  $ 2,500
18             (5)  Technician............................  $   100
19        (c)  Any  application  not  approved  within  90  days of
20    receipt by the Board shall be deemed approved.
21        (d)  Each licensed  distributor,  terminal  operator,  or
22    person  with  a  substantial  interest  in  a  distributor or
23    terminal operator must have resided in Illinois for at  least
24    24 months prior to application unless he or she has performed
25    his  or  her  respective business in Illinois for at least 48
26    months prior to the effective date of this Act.
27        The Board shall establish an annual fee for each  license
28    not to exceed the following:
29             (1)  Manufacturer..........................  $10,000
30             (2)  Distributor...........................  $10,000
31             (3)  Terminal operator.....................  $ 5,000
32             (4)  Supplier..............................  $ 2,000
33             (5)  Technician............................  $   100
34             (6)  Licensed    establishment,    licensed
 
                            -12-     LRB093 02210 LRD 16271 a
 1        fraternal  establishment,  or  licensed veterans
 2        establishment...................................  $   100
 3             (7)  Video gaming terminal.................  $   100

 4        Section 50. Distribution of license fees.
 5        (a)  All  fees  collected  under  Section  45  shall   be
 6    deposited in the General Revenue Fund.
 7        (b)  Fees  collected  under  Section  45 shall be used as
 8    follows:
 9             (1)  Twenty-five percent shall be paid  to  programs
10        for the treatment of compulsive gambling.
11             (2)  Seventy-five  percent  shall  be  used  for the
12        administration of this Act.
13        (c)  All licenses issued by the Board under this Act  are
14    renewable  annually unless sooner cancelled or terminated. No
15    license issued under this Act is transferable or assignable.

16        Section 55.  Precondition for licensed establishment.  In
17    all cases of application for a licensed  establishment,  each
18    licensed   fraternal   establishment   or  licensed  veterans
19    establishment shall possess a valid liquor license issued  by
20    the  Illinois Liquor Control Commission in effect at the time
21    of application for a video gaming terminal license and at all
22    times thereafter during which a video gaming terminal is made
23    available to the public for play at that location.

24        Section  57.  Insurance.  Each  licensed   establishment,
25    licensed   fraternal  establishment,  and  licensed  veterans
26    establishment shall maintain insurance on any  gaming  device
27    on its premises in an amount set by the Board.

28        Section   58.  Location   of   terminals.   Video  gaming
29    terminals must be located in an area that is within the  view
30    of  at  least one employee of the establishment in which they
 
                            -13-     LRB093 02210 LRD 16271 a
 1    are located.

 2        Section 60.  Imposition and distribution of tax.
 3        (a)  A tax of 20% is imposed on net terminal  income  and
 4    shall be collected by the Board.
 5        (b)  Of  the  tax collected under this Section, 75% shall
 6    be deposited in the General Revenue Fund  and  25%  shall  be
 7    deposited into the Local Government Video Gaming Distributive
 8    Fund.
 9        (c)  Revenues  generated  from  the  play of video gaming
10    terminals shall be deposited by the terminal operator, who is
11    responsible  for  tax  payments,  in  a  specially   created,
12    separate bank account maintained by the video gaming terminal
13    operator to allow for electronic fund transfers of moneys for
14    tax payment.
15        (d)  Each  licensed  location  shall maintain an adequate
16    video gaming fund, with the amount to be  determined  by  the
17    Board.

18        Section  65.  Fees.   A  non-home rule unit of government
19    may not impose any fee for the operation of  a  video  gaming
20    terminal in excess of $25 per year.

21        Section  70. Referendum. Upon the filing in the office of
22    the clerk, at  least  90  days  before  an  election  in  any
23    municipality  or  county,  as  the case may be, of a petition
24    directed to such clerk, containing the signatures of not less
25    than 25% of the legal voters of the  municipality  or  county
26    which  has  prohibited video gaming,  the clerk shall certify
27    such proposition to the proper election officials, who  shall
28    submit the proposition at such election to the voters of such
29    municipality  or  county.  The  proposition  shall  be in the
30    following form:
31    -------------------------------------------------------------
 
                            -14-     LRB093 02210 LRD 16271 a
 1    Shall video gaming                      YES
 2    be prohibited in                       ----------------------
 3    .................?                      NO
 4    -------------------------------------------------------------
 5    If a majority of the voters voting upon such  last  mentioned
 6    proposition  in  any  municipality  or county vote "NO", such
 7    prohibition shall cease in such municipality or  county;  and
 8    where  a municipality is situated wholly or partly within the
 9    boundaries of a township or road district  having  a  similar
10    prohibition,  a  majority vote of the voters voting "NO" upon
11    such proposition  as  above  described  will  result  in  the
12    prohibition  ceasing  in  that  part  of the township or road
13    district situated within such municipality or county. In  the
14    event the boundaries of such municipality or county have been
15    altered subsequent to the original election prohibiting video
16    gaming   and  prior  to  the  filing  of  such  petition  for
17    resubmission of the  question,  only  those  voters  actually
18    residing  in  the municipality or county shall be eligible as
19    signers of  such  resubmission  petition,  except  that  this
20    limitation  shall  not  apply  in  the case of a resubmission
21    petition signed by at least 25% of  the  legal  voters  of  a
22    municipality  or  county.  The  petition  mentioned  in  this
23    Section  shall  be  a public document and shall be subject to
24    inspection by the public.

25        Section  75.  Revenue  sharing;  Local  Government  Video
26    Gaming Distributive Fund.
27        (a)  Beginning July 1, 2003, as soon as may be after  the
28    first  day  of  each  month,  the Department of Revenue shall
29    certify to the Treasurer an amount equal to 25%  of  the  net
30    revenue  realized  from  the tax imposed by Section 60 during
31    the preceding month. Net revenue realized for a  month  shall
32    be  defined as the revenue from the tax imposed by Section 60
33    during the month. Upon receipt  of  such  certification,  the
 
                            -15-     LRB093 02210 LRD 16271 a
 1    Treasurer  shall  transfer from the General Revenue Fund to a
 2    special fund in the State treasury, to be known as the  Local
 3    Government  Video  Gaming Distributive Fund, the amount shown
 4    on such certification.
 5        All amounts paid into the Local Government  Video  Gaming
 6    Distributive  Fund  and  allocated  in  accordance  with this
 7    Section are appropriated on a continuing basis.
 8        (b)  As soon as may be after the first day of each month,
 9    the  Department  of  Revenue  shall  allocate   among   those
10    municipalities  and  counties  of  this  State  that have not
11    prohibited video gaming pursuant to  Section  27  the  amount
12    available  in  the Local Government Video Gaming Distributive
13    Fund, as provided in Section 60. The  Department  shall  then
14    certify  such allocations to the State Comptroller, who shall
15    pay over to those eligible municipalities  and  counties  the
16    respective  amounts  allocated  to  them.  The amount of such
17    funds allocable to each such municipality and county shall be
18    in proportion to the number of individual residents  of  such
19    municipality  or  county  to  the  total  population of those
20    eligible municipalities and counties determined in each  case
21    on  the  basis  of  the  latest census of the municipality or
22    county conducted by the federal government and  certified  by
23    the Secretary of State and for annexations to municipalities,
24    the latest federal, State, or municipal census of the annexed
25    area  which  has been certified by the Department of Revenue.
26    For the purpose of this Section,  the  number  of  individual
27    residents  of  a  county  shall  be  reduced by the number of
28    individuals  residing  therein  in  municipalities,  but  the
29    number of individual  residents  of  the  municipality  shall
30    reflect the latest census of the municipality.
31        (c)  The  amounts allocated and paid to a municipality or
32    county of this State  pursuant  to  the  provisions  of  this
33    Section  may  be  used  for  any  general  corporate  purpose
34    authorized for that municipality or county.
 
                            -16-     LRB093 02210 LRD 16271 a
 1        (d)  Upon  determination by the Department that an amount
 2    has been paid pursuant to  this  Section  in  excess  of  the
 3    amount  to  which  the  county or municipality receiving such
 4    payment was entitled, the county or municipality shall,  upon
 5    demand   by  the  Department,  repay  such  amount.  If  such
 6    repayment  is  not  made  within  a  reasonable   time,   the
 7    Department  shall  withhold  from  future  payments an amount
 8    equal to such overpayment. If the  appropriation  from  which
 9    such   payment  was  originally  made  has  not  lapsed,  the
10    Department shall redistribute the amount of such  payment  to
11    the   county   or   municipality  entitled  thereto.  If  the
12    appropriation has lapsed, the repayment shall be deposited in
13    the General Revenue Fund in the State Treasury.

14        Section 185.  The Riverboat Gambling Act  is  amended  by
15    changing Section 5 as follows:

16        (230 ILCS 10/5) (from Ch. 120, par. 2405)
17        Sec. 5.  Gaming Board.
18        (a) (1)  There   is   hereby   established   within   the
19    Department  of  Revenue  an Illinois Gaming Board which shall
20    have the powers and duties specified in  this  Act,  and  all
21    other  powers  necessary  and proper to fully and effectively
22    execute  this  Act  for   the   purpose   of   administering,
23    regulating,  and  enforcing  the system of riverboat gambling
24    established by this Act. Its jurisdiction shall extend  under
25    this   Act   to   every   person,  association,  corporation,
26    partnership  and  trust  involved   in   riverboat   gambling
27    operations in the State of Illinois.
28        (2)  The Board shall consist of 5 members to be appointed
29    by  the  Governor  with the advice and consent of the Senate,
30    one of whom  shall  be  designated  by  the  Governor  to  be
31    chairman.   Each  member shall have a reasonable knowledge of
32    the  practice,   procedure   and   principles   of   gambling
 
                            -17-     LRB093 02210 LRD 16271 a
 1    operations.  Each  member  shall  either  be  a  resident  of
 2    Illinois  or  shall certify that he will become a resident of
 3    Illinois before taking office. At least one member  shall  be
 4    experienced in law enforcement and criminal investigation, at
 5    least  one  member  shall  be  a  certified public accountant
 6    experienced in accounting and  auditing,  and  at  least  one
 7    member  shall  be  a  lawyer  licensed  to  practice  law  in
 8    Illinois.
 9        (3)  The  terms of office of the Board members shall be 3
10    years, except that the terms of office of the  initial  Board
11    members appointed pursuant to this Act will commence from the
12    effective  date  of  this  Act and run as follows:  one for a
13    term ending July 1, 1991, 2 for a term ending July  1,  1992,
14    and 2 for a term ending July 1, 1993.  Upon the expiration of
15    the  foregoing  terms,  the  successors of such members shall
16    serve a term for 3  years  and  until  their  successors  are
17    appointed  and  qualified  for  like  terms. Vacancies in the
18    Board shall be filled for the unexpired term in  like  manner
19    as  original appointments.  Each member of the Board shall be
20    eligible for reappointment at the discretion of the  Governor
21    with the advice and consent of the Senate.
22        (4)  Each member of the Board shall receive $300 for each
23    day  the Board meets and for each day the member conducts any
24    hearing pursuant to this Act.  Each member of the Board shall
25    also be reimbursed for all actual and necessary expenses  and
26    disbursements incurred in the execution of official duties.
27        (5)  No  person  shall be appointed a member of the Board
28    or continue to be a member of the  Board  who  is,  or  whose
29    spouse,  child  or  parent  is,  a  member  of  the  board of
30    directors of, or a  person  financially  interested  in,  any
31    gambling operation subject to the jurisdiction of this Board,
32    or  any  race  track, race meeting, racing association or the
33    operations  thereof  subject  to  the  jurisdiction  of   the
34    Illinois  Racing Board.  No Board member shall hold any other
 
                            -18-     LRB093 02210 LRD 16271 a
 1    public office for which he shall receive  compensation  other
 2    than  necessary  travel  or  other  incidental  expenses.  No
 3    person shall be a member of the Board  who  is  not  of  good
 4    moral  character  or  who  has been convicted of, or is under
 5    indictment for, a felony under the laws of  Illinois  or  any
 6    other state, or the United States.
 7        (6)  Any  member  of  the  Board  may  be  removed by the
 8    Governor for neglect of duty,  misfeasance,  malfeasance,  or
 9    nonfeasance in office.
10        (7)  Before  entering upon the discharge of the duties of
11    his office, each member of the Board shall take an oath  that
12    he will faithfully execute the duties of his office according
13    to  the  laws  of  the  State  and  the rules and regulations
14    adopted therewith  and  shall  give  bond  to  the  State  of
15    Illinois,  approved  by  the Governor, in the sum of $25,000.
16    Every such bond, when duly executed and  approved,  shall  be
17    recorded  in  the office of the Secretary of State.  Whenever
18    the Governor determines that the bond of any  member  of  the
19    Board   has   become  or  is  likely  to  become  invalid  or
20    insufficient, he shall require such member forthwith to renew
21    his bond, which is to  be  approved  by  the  Governor.   Any
22    member  of  the  Board  who  fails to take oath and give bond
23    within 30 days from the date of his appointment, or who fails
24    to renew his bond within 30 days after it is demanded by  the
25    Governor,  shall  be  guilty  of  neglect  of duty and may be
26    removed by the Governor.  The cost of any bond given  by  any
27    member of the Board under this Section shall be taken to be a
28    part of the necessary expenses of the Board.
29        (8)  Upon  the request of the Board, the Department shall
30    employ such personnel as may be necessary to  carry  out  the
31    functions of the Board.  No person shall be employed to serve
32    the  Board  who  is,  or whose spouse, parent or child is, an
33    official of, or has a  financial  interest  in  or  financial
34    relation  with,  any  operator engaged in gambling operations
 
                            -19-     LRB093 02210 LRD 16271 a
 1    within this State or any organization engaged  in  conducting
 2    horse racing within this State.  Any employee violating these
 3    prohibitions shall be subject to termination of employment.
 4        (9)  An  Administrator  shall  perform any and all duties
 5    that  the  Board  shall  assign  him.   The  salary  of   the
 6    Administrator  shall  be determined by the Board and approved
 7    by the Director of the Department and, in addition, he  shall
 8    be  reimbursed for all actual and necessary expenses incurred
 9    by  him  in  discharge   of   his   official   duties.    The
10    Administrator  shall  keep  records of all proceedings of the
11    Board and shall preserve all records,  books,  documents  and
12    other papers belonging to the Board or entrusted to its care.
13    The Administrator shall devote his full time to the duties of
14    the office and shall not hold any other office or employment.
15        (b)  The  Board shall have general responsibility for the
16    implementation of this  Act.   Its  duties  include,  without
17    limitation, the following:
18             (1)  To  decide promptly and in reasonable order all
19        license applications. Any party aggrieved by an action of
20        the Board denying, suspending, revoking,  restricting  or
21        refusing  to renew a license may request a hearing before
22        the Board.  A request for a hearing must be made  to  the
23        Board in writing within 5 days after service of notice of
24        the  action  of  the  Board.  Notice of the action of the
25        Board shall be served either by personal delivery  or  by
26        certified mail, postage prepaid, to the aggrieved party.
27        Notice  served by certified mail shall be deemed complete
28        on the business day following the date of  such  mailing.
29        The  Board  shall conduct all requested hearings promptly
30        and in reasonable order;
31             (2)  To conduct all  hearings  pertaining  to  civil
32        violations   of   this   Act  or  rules  and  regulations
33        promulgated hereunder;
34             (3)  To promulgate such rules and regulations as  in
 
                            -20-     LRB093 02210 LRD 16271 a
 1        its  judgment  may be necessary to protect or enhance the
 2        credibility  and   integrity   of   gambling   operations
 3        authorized   by  this  Act  and  the  regulatory  process
 4        hereunder;
 5             (4)  To provide for the establishment and collection
 6        of all license and registration fees and taxes imposed by
 7        this Act and the rules and  regulations  issued  pursuant
 8        hereto.   All such fees and taxes shall be deposited into
 9        the State Gaming Fund;
10             (5)  To provide  for  the  levy  and  collection  of
11        penalties  and  fines  for the violation of provisions of
12        this  Act  and  the  rules  and  regulations  promulgated
13        hereunder.   All  such  fines  and  penalties  shall   be
14        deposited  into the Education Assistance Fund, created by
15        Public Act 86-0018, of the State of Illinois;
16             (6)  To be present through its inspectors and agents
17        any  time  gambling  operations  are  conducted  on   any
18        riverboat  for  the  purpose  of  certifying  the revenue
19        thereof,  receiving  complaints  from  the  public,   and
20        conducting  such other investigations into the conduct of
21        the gambling games and the maintenance of  the  equipment
22        as  from  time  to  time the Board may deem necessary and
23        proper;
24             (7)  To review and rule  upon  any  complaint  by  a
25        licensee  regarding  any  investigative procedures of the
26        State which  are  unnecessarily  disruptive  of  gambling
27        operations.  The need to inspect and investigate shall be
28        presumed  at  all  times.  The disruption of a licensee's
29        operations  shall  be  proved  by  clear  and  convincing
30        evidence, and establish that:  (A) the procedures had  no
31        reasonable   law   enforcement   purposes,  and  (B)  the
32        procedures were so disruptive as to unreasonably  inhibit
33        gambling operations;
34             (8)  To  hold  at  least one meeting each quarter of
 
                            -21-     LRB093 02210 LRD 16271 a
 1        the fiscal year.  In addition, special  meetings  may  be
 2        called  by  the  Chairman  or any 2 Board members upon 72
 3        hours written notice to each member.  All Board  meetings
 4        shall  be subject to the Open Meetings Act. Three members
 5        of the Board shall constitute a quorum, and 3 votes shall
 6        be required for any final  determination  by  the  Board.
 7        The  Board  shall  keep a complete and accurate record of
 8        all its meetings. A majority of the members of the  Board
 9        shall  constitute  a  quorum  for  the transaction of any
10        business, for the performance of any  duty,  or  for  the
11        exercise  of  any power which this Act requires the Board
12        members to transact, perform or exercise en banc,  except
13        that,  upon  order of the Board, one of the Board members
14        or an administrative law judge designated  by  the  Board
15        may conduct any hearing provided for under this Act or by
16        Board  rule  and  may recommend findings and decisions to
17        the Board.  The Board member or administrative law  judge
18        conducting  such hearing shall have all powers and rights
19        granted to the Board in this Act. The record made at  the
20        time  of the hearing shall be reviewed by the Board, or a
21        majority thereof, and the findings and  decision  of  the
22        majority  of  the Board shall constitute the order of the
23        Board in such case;
24             (9)  To maintain  records  which  are  separate  and
25        distinct  from  the  records  of any other State board or
26        commission.  Such records shall be available  for  public
27        inspection   and   shall  accurately  reflect  all  Board
28        proceedings;
29             (10)  To file  a  written  annual  report  with  the
30        Governor  on  or  before  March  1  each  year  and  such
31        additional  reports  as  the  Governor  may  request. The
32        annual report shall include a statement of  receipts  and
33        disbursements  by  the Board, actions taken by the Board,
34        and any additional information and recommendations  which
 
                            -22-     LRB093 02210 LRD 16271 a
 1        the  Board  may  deem  valuable or which the Governor may
 2        request;
 3             (11)  (Blank); and
 4             (12)  To    assume    responsibility     for     the
 5        administration  and  enforcement of the Bingo License and
 6        Tax Act, the Charitable Games Act, and the Pull Tabs  and
 7        Jar  Games  Act if such responsibility is delegated to it
 8        by the Director of Revenue; and.
 9             (13)  To assume  responsibility  for  administration
10        and enforcement of the Video Gaming Act.
11        (c)  The  Board  shall  have  jurisdiction over and shall
12    supervise all gambling operations governed by this Act.   The
13    Board shall have all powers necessary and proper to fully and
14    effectively  execute  the  provisions of this Act, including,
15    but not limited to, the following:
16             (1)  To investigate  applicants  and  determine  the
17        eligibility  of  applicants  for  licenses  and to select
18        among competing  applicants  the  applicants  which  best
19        serve the interests of the citizens of Illinois.
20             (2)  To  have  jurisdiction and supervision over all
21        riverboat gambling  operations  in  this  State  and  all
22        persons  on  riverboats  where  gambling  operations  are
23        conducted.
24             (3)  To  promulgate  rules  and  regulations for the
25        purpose of administering the provisions of this  Act  and
26        to  prescribe  rules,  regulations  and  conditions under
27        which all  riverboat  gambling  in  the  State  shall  be
28        conducted.  Such rules and regulations are to provide for
29        the  prevention  of  practices  detrimental to the public
30        interest  and  for  the  best  interests   of   riverboat
31        gambling,  including  rules and regulations regarding the
32        inspection of such  riverboats  and  the  review  of  any
33        permits  or  licenses  necessary  to  operate a riverboat
34        under any laws or regulations applicable  to  riverboats,
 
                            -23-     LRB093 02210 LRD 16271 a
 1        and to impose penalties for violations thereof.
 2             (4)  To enter the office, riverboats, facilities, or
 3        other places of business of a licensee, where evidence of
 4        the  compliance  or  noncompliance with the provisions of
 5        this Act is likely to be found.
 6             (5)  To investigate alleged violations of  this  Act
 7        or  the  rules  of  the  Board  and  to  take appropriate
 8        disciplinary action against a licensee or a holder of  an
 9        occupational   license  for  a  violation,  or  institute
10        appropriate legal action for enforcement, or both.
11             (6)  To adopt standards for  the  licensing  of  all
12        persons  under  this  Act,  as  well as for electronic or
13        mechanical gambling games, and to establish fees for such
14        licenses.
15             (7)  To  adopt   appropriate   standards   for   all
16        riverboats and facilities.
17             (8)  To   require   that   the   records,  including
18        financial or other statements of any licensee under  this
19        Act,  shall  be  kept in such manner as prescribed by the
20        Board  and  that  any  such  licensee  involved  in   the
21        ownership  or management of gambling operations submit to
22        the Board an annual balance sheet  and  profit  and  loss
23        statement,  list  of  the  stockholders  or other persons
24        having  a  1%  or  greater  beneficial  interest  in  the
25        gambling activities of  each  licensee,   and  any  other
26        information   the  Board  deems  necessary  in  order  to
27        effectively  administer   this   Act   and   all   rules,
28        regulations, orders and final decisions promulgated under
29        this Act.
30             (9)  To  conduct  hearings,  issue subpoenas for the
31        attendance of witnesses and subpoenas duces tecum for the
32        production  of  books,  records   and   other   pertinent
33        documents  in accordance with the Illinois Administrative
34        Procedure Act, and to administer oaths  and  affirmations
 
                            -24-     LRB093 02210 LRD 16271 a
 1        to  the witnesses, when, in the judgment of the Board, it
 2        is necessary to administer or enforce  this  Act  or  the
 3        Board rules.
 4             (10)  To prescribe a form to be used by any licensee
 5        involved  in  the  ownership  or  management  of gambling
 6        operations as an application  for  employment  for  their
 7        employees.
 8             (11)  To  revoke  or  suspend licenses, as the Board
 9        may see fit and in compliance with applicable laws of the
10        State regarding administrative procedures, and to  review
11        applications  for the renewal of licenses.  The Board may
12        suspend an owners license, without notice or hearing upon
13        a determination that the safety or health of  patrons  or
14        employees  is  jeopardized  by  continuing  a riverboat's
15        operation.  The suspension may remain in effect until the
16        Board determines that the cause for suspension  has  been
17        abated.   The  Board may revoke the owners license upon a
18        determination that the owner has  not  made  satisfactory
19        progress toward abating the hazard.
20             (12)  To  eject or exclude or authorize the ejection
21        or exclusion  of,  any  person  from  riverboat  gambling
22        facilities where such person is in violation of this Act,
23        rules  and regulations thereunder, or final orders of the
24        Board, or where such person's conduct  or  reputation  is
25        such  that  his  presence  within  the riverboat gambling
26        facilities may, in the opinion of the  Board,  call  into
27        question  the  honesty  and  integrity  of  the  gambling
28        operations  or  interfere  with  orderly conduct thereof;
29        provided that the propriety of such ejection or exclusion
30        is subject to subsequent hearing by the Board.
31             (13)  To   require   all   licensees   of   gambling
32        operations to utilize a cashless wagering system  whereby
33        all  players'  money  is  converted to tokens, electronic
34        cards, or chips which shall be used only for wagering  in
 
                            -25-     LRB093 02210 LRD 16271 a
 1        the gambling establishment.
 2             (14)  (Blank).
 3             (15)  To  suspend,  revoke  or restrict licenses, to
 4        require the removal of a licensee or  an  employee  of  a
 5        licensee  for  a violation of this Act or a Board rule or
 6        for engaging in a  fraudulent  practice,  and  to  impose
 7        civil  penalties  of up to $5,000 against individuals and
 8        up to $10,000 or an  amount  equal  to  the  daily  gross
 9        receipts, whichever is larger, against licensees for each
10        violation  of any provision of the Act, any rules adopted
11        by the Board, any order of the Board or any other  action
12        which,  in  the  Board's  discretion,  is  a detriment or
13        impediment to riverboat gambling operations.
14             (16)  To  hire  employees  to  gather   information,
15        conduct  investigations  and  carry  out  any other tasks
16        contemplated under this Act.
17             (17)  To establish minimum levels of insurance to be
18        maintained by licensees.
19             (18)  To authorize  a  licensee  to  sell  or  serve
20        alcoholic  liquors, wine or beer as defined in the Liquor
21        Control Act of 1934 on board  a  riverboat  and  to  have
22        exclusive  authority  to establish the hours for sale and
23        consumption of alcoholic liquor  on  board  a  riverboat,
24        notwithstanding  any  provision of the Liquor Control Act
25        of 1934 or any local ordinance, and regardless of whether
26        the riverboat makes excursions.  The establishment of the
27        hours for sale and consumption  of  alcoholic  liquor  on
28        board  a  riverboat is an exclusive power and function of
29        the State.  A home rule unit may not establish the  hours
30        for  sale  and consumption of alcoholic liquor on board a
31        riverboat.  This amendatory Act of 1991 is a  denial  and
32        limitation  of  home  rule  powers  and  functions  under
33        subsection  (h)  of  Section  6  of  Article  VII  of the
34        Illinois Constitution.
 
                            -26-     LRB093 02210 LRD 16271 a
 1             (19)  After consultation with the U.S. Army Corps of
 2        Engineers, to establish binding emergency orders upon the
 3        concurrence of a majority of the  members  of  the  Board
 4        regarding   the   navigability   of  water,  relative  to
 5        excursions, in the event of extreme  weather  conditions,
 6        acts of God or other extreme circumstances.
 7             (20)  To delegate the execution of any of its powers
 8        under  this  Act  for  the  purpose  of administering and
 9        enforcing  this  Act  and  its  rules   and   regulations
10        hereunder.
11             (21)  To  take any other action as may be reasonable
12        or  appropriate  to  enforce  this  Act  and  rules   and
13        regulations hereunder.
14        (d)  The Board may seek and shall receive the cooperation
15    of  the  Department  of State Police in conducting background
16    investigations  of   applicants   and   in   fulfilling   its
17    responsibilities  under  this Section.  Costs incurred by the
18    Department of State Police as a result  of  such  cooperation
19    shall   be   paid  by  the  Board  in  conformance  with  the
20    requirements of Section 2605-400 of the Department  of  State
21    Police Law (20 ILCS 2605/2605-400).
22        (e)  The Board must authorize to each investigator and to
23    any  other  employee  of the Board exercising the powers of a
24    peace officer a distinct badge that, on its face, (i) clearly
25    states that the badge is authorized by  the  Board  and  (ii)
26    contains  a  unique identifying number.  No other badge shall
27    be authorized by the Board.
28    (Source:  P.A.  91-40,  eff.  1-1-00;  91-239,  eff.  1-1-00;
29    91-883, eff. 1-1-01.)

30        Section 190.  The Criminal Code of  1961  is  amended  by
31    changing Sections 28-1, 28-1.1, and 28-3 as follows:

32        (720 ILCS 5/28-1) (from Ch. 38, par. 28-1)
 
                            -27-     LRB093 02210 LRD 16271 a
 1        Sec. 28-1.  Gambling.
 2        (a)  A person commits gambling when he:
 3             (1)  Plays  a  game  of chance or skill for money or
 4        other thing of value, unless excepted in  subsection  (b)
 5        of this Section; or
 6             (2)  Makes  a  wager  upon  the  result of any game,
 7        contest, or  any  political  nomination,  appointment  or
 8        election; or
 9             (3)  Operates,   keeps,   owns,   uses,   purchases,
10        exhibits,  rents,  sells,  bargains for the sale or lease
11        of, manufactures or distributes any gambling device; or
12             (4)  Contracts to have or give  himself  or  another
13        the  option  to buy or sell, or contracts to buy or sell,
14        at  a  future  time,  any  grain   or   other   commodity
15        whatsoever,  or  any  stock  or  security of any company,
16        where it is at the time of making such contract  intended
17        by both parties thereto that the contract to buy or sell,
18        or  the  option,  whenever  exercised,  or  the  contract
19        resulting therefrom, shall be settled, not by the receipt
20        or  delivery of such property, but by the payment only of
21        differences in prices  thereof;  however,  the  issuance,
22        purchase, sale, exercise, endorsement or guarantee, by or
23        through  a  person registered with the Secretary of State
24        pursuant to Section 8 of the Illinois Securities  Law  of
25        1953,  or  by  or  through  a  person  exempt  from  such
26        registration  under  said  Section  8, of a put, call, or
27        other option to buy or sell securities  which  have  been
28        registered  with  the  Secretary  of  State  or which are
29        exempt from such registration  under  Section  3  of  the
30        Illinois  Securities  Law  of 1953 is not gambling within
31        the meaning of this paragraph (4); or
32             (5)  Knowingly   owns   or   possesses   any   book,
33        instrument or apparatus by means of which bets or  wagers
34        have  been,  or are, recorded or registered, or knowingly
 
                            -28-     LRB093 02210 LRD 16271 a
 1        possesses any money which he has received in  the  course
 2        of a bet or wager; or
 3             (6)  Sells  pools  upon  the  result  of any game or
 4        contest  of  skill  or  chance,   political   nomination,
 5        appointment or election; or
 6             (7)  Sets  up  or  promotes  any  lottery  or sells,
 7        offers to sell or transfers any ticket or share  for  any
 8        lottery; or
 9             (8)  Sets  up  or promotes any policy game or sells,
10        offers to sell or knowingly possesses  or  transfers  any
11        policy  ticket,  slip,  record, document or other similar
12        device; or
13             (9)  Knowingly  drafts,  prints  or  publishes   any
14        lottery  ticket  or  share,  or  any policy ticket, slip,
15        record, document  or  similar  device,  except  for  such
16        activity  related  to  lotteries, bingo games and raffles
17        authorized by and conducted in accordance with  the  laws
18        of Illinois or any other state or foreign government; or
19             (10)  Knowingly  advertises  any  lottery  or policy
20        game, except for  such  activity  related  to  lotteries,
21        bingo  games  and  raffles authorized by and conducted in
22        accordance with the laws of Illinois or any other  state;
23        or
24             (11)  Knowingly  transmits information as to wagers,
25        betting odds, or changes in betting  odds  by  telephone,
26        telegraph,   radio,   semaphore   or  similar  means;  or
27        knowingly  installs  or  maintains  equipment   for   the
28        transmission  or receipt of such information; except that
29        nothing in this subdivision (11)  prohibits  transmission
30        or  receipt of such information for use in news reporting
31        of sporting events or contests; or
32             (12) Knowingly establishes, maintains,  or  operates
33        an  Internet site that permits a person to play a game of
34        chance or skill for money or  other  thing  of  value  by
 
                            -29-     LRB093 02210 LRD 16271 a
 1        means  of the Internet or to make a wager upon the result
 2        of any game, contest, political nomination,  appointment,
 3        or election by means of the Internet.
 4        (b)  Participants  in  any  of  the  following activities
 5    shall not be convicted of gambling therefor:
 6             (1)  Agreements to compensate for loss caused by the
 7        happening  of   chance   including   without   limitation
 8        contracts  of indemnity or guaranty and life or health or
 9        accident insurance;
10             (2)  Offers of prizes, award or compensation to  the
11        actual  contestants  in  any  bona  fide  contest for the
12        determination of skill, speed, strength or  endurance  or
13        to  the  owners  of  animals  or vehicles entered in such
14        contest;
15             (3)  Pari-mutuel betting as authorized by the law of
16        this State;
17             (4)  Manufacture of gambling devices, including  the
18        acquisition  of essential parts therefor and the assembly
19        thereof, for  transportation  in  interstate  or  foreign
20        commerce  to  any  place  outside  this  State  when such
21        transportation  is  not  prohibited  by  any   applicable
22        Federal   law;   or  the  manufacture,  distribution,  or
23        possession of video gaming terminals, as defined  in  the
24        Video  Gaming  Act,  by  manufacturers, distributors, and
25        terminal operators licensed to  do  so  under  the  Video
26        Gaming Act;
27             (5)  The   game  commonly  known  as  "bingo",  when
28        conducted in accordance with the Bingo  License  and  Tax
29        Act;
30             (6)  Lotteries   when  conducted  by  the  State  of
31        Illinois in accordance with the Illinois Lottery Law;
32             (7)  Possession of an antique slot machine  that  is
33        neither  used nor intended to be used in the operation or
34        promotion  of   any   unlawful   gambling   activity   or
 
                            -30-     LRB093 02210 LRD 16271 a
 1        enterprise.  For the purpose of this subparagraph (b)(7),
 2        an  antique slot machine is one manufactured 25 years ago
 3        or earlier;
 4             (8)  Raffles when conducted in accordance  with  the
 5        Raffles Act;
 6             (9)  Charitable  games  when conducted in accordance
 7        with the Charitable Games Act;
 8             (10)  Pull tabs and jar games when  conducted  under
 9        the Illinois Pull Tabs and Jar Games Act; or
10             (11)  Gambling  games  conducted  on riverboats when
11        authorized by the Riverboat Gambling Act; or.
12             (12)  Video gaming  terminal  games  at  a  licensed
13        establishment,   licensed   fraternal  establishment,  or
14        licensed  veterans  establishment   when   conducted   in
15        accordance with the Video Gaming Act.
16        (c)  Sentence.
17        Gambling  under  subsection  (a)(1)  or  (a)(2)  of  this
18    Section  is  a  Class  A  misdemeanor.  Gambling under any of
19    subsections (a)(3) through (a)(11) of this Section is a Class
20    A misdemeanor.  A second or subsequent conviction  under  any
21    of  subsections  (a)(3) through (a)(11), is a Class 4 felony.
22    Gambling under subsection (a)(12) of this Section is a  Class
23    A  misdemeanor.   A  second  or  subsequent  conviction under
24    subsection (a)(12) is a Class 4 felony.
25        (d)  Circumstantial evidence.
26        In prosecutions under subsection (a)(1)  through  (a)(12)
27    of  this  Section circumstantial evidence shall have the same
28    validity and weight as in any criminal prosecution.
29    (Source: P.A. 91-257, eff. 1-1-00.)

30        (720 ILCS 5/28-1.1) (from Ch. 38, par. 28-1.1)
31        Sec. 28-1.1.  Syndicated gambling.
32        (a)  Declaration  of  Purpose.  Recognizing   the   close
33    relationship   between   professional   gambling   and  other
 
                            -31-     LRB093 02210 LRD 16271 a
 1    organized crime, it is declared  to  be  the  policy  of  the
 2    legislature to restrain persons from engaging in the business
 3    of  gambling for profit in this State.  This Section shall be
 4    liberally construed and administered with a view to  carrying
 5    out this policy.
 6        (b)  A   person   commits  syndicated  gambling  when  he
 7    operates a "policy  game"  or  engages  in  the  business  of
 8    bookmaking.
 9        (c)  A  person "operates a policy game" when he knowingly
10    uses any premises or property for the purpose of receiving or
11    knowingly does receive from what is commonly called "policy":
12             (1)  money from a person other than  the  better  or
13        player whose bets or plays are represented by such money;
14        or
15             (2)  written  "policy  game"  records,  made or used
16        over any period of time, from a  person  other  than  the
17        better  or  player whose bets or plays are represented by
18        such written record.
19        (d)  A person engages in bookmaking when he  receives  or
20    accepts  more than five bets or wagers upon the result of any
21    trials or contests of skill, speed or power of  endurance  or
22    upon  any  lot, chance, casualty, unknown or contingent event
23    whatsoever, which bets or wagers shall be of such  size  that
24    the total of the amounts of money paid or promised to be paid
25    to  such  bookmaker  on  account thereof shall exceed $2,000.
26    Bookmaking is the receiving or  accepting  of  such  bets  or
27    wagers  regardless  of  the  form  or  manner  in  which  the
28    bookmaker records them.
29        (e)  Participants  in  any  of  the  following activities
30    shall not be convicted of syndicated gambling:
31             (1)  Agreements to compensate for loss caused by the
32        happening  of   chance   including   without   limitation
33        contracts  of indemnity or guaranty and life or health or
34        accident insurance; and
 
                            -32-     LRB093 02210 LRD 16271 a
 1             (2)  Offers of prizes, award or compensation to  the
 2        actual  contestants  in  any  bona  fide  contest for the
 3        determination of skill, speed, strength or  endurance  or
 4        to  the  owners  of  animals  or vehicles entered in such
 5        contest; and
 6             (3)  Pari-mutuel betting as  authorized  by  law  of
 7        this State; and
 8             (4)  Manufacture  of gambling devices, including the
 9        acquisition of essential parts therefor and the  assembly
10        thereof,  for  transportation  in  interstate  or foreign
11        commerce to  any  place  outside  this  State  when  such
12        transportation   is  not  prohibited  by  any  applicable
13        Federal law; and
14             (5)  Raffles when conducted in accordance  with  the
15        Raffles Act; and
16             (6)  Gambling  games  conducted  on  riverboats when
17        authorized by the Riverboat Gambling Act; and.
18             (7)  Video  gaming  terminal  games  at  a  licensed
19        establishment,  licensed  fraternal   establishment,   or
20        licensed   veterans   establishment   when  conducted  in
21        accordance with the Video Gaming Act.
22        (f)  Sentence.  Syndicated gambling is a Class 3 felony.
23    (Source: P.A. 86-1029; 87-435.)

24        (720 ILCS 5/28-3) (from Ch. 38, par. 28-3)
25        Sec. 28-3.  Keeping a Gambling Place. A "gambling  place"
26    is  any  real  estate,  vehicle,  boat  or any other property
27    whatsoever used for  the  purposes  of  gambling  other  than
28    gambling  conducted in the manner authorized by the Riverboat
29    Gambling Act  or  the  Video  Gaming  Act.   Any  person  who
30    knowingly  permits any premises or property owned or occupied
31    by him or under his control to be used as  a  gambling  place
32    commits  a Class A misdemeanor.  Each subsequent offense is a
33    Class 4 felony.  When  any  premises  is  determined  by  the
 
                            -33-     LRB093 02210 LRD 16271 a
 1    circuit court to be a gambling place:
 2        (a)  Such  premises  is  a  public  nuisance  and  may be
 3    proceeded against as such, and
 4        (b)  All licenses, permits or certificates issued by  the
 5    State of Illinois or any subdivision or public agency thereof
 6    authorizing  the  serving  of food or liquor on such premises
 7    shall be void; and  no  license,  permit  or  certificate  so
 8    cancelled shall be reissued for such premises for a period of
 9    60 days thereafter; nor shall any person convicted of keeping
10    a  gambling  place be reissued such license for one year from
11    his conviction and, after a second conviction  of  keeping  a
12    gambling  place,  any  such person shall not be reissued such
13    license, and
14        (c)  Such premises of any person  who  knowingly  permits
15    thereon  a  violation of any Section of this Article shall be
16    held liable for, and may  be  sold  to  pay  any  unsatisfied
17    judgment  that may be recovered and any unsatisfied fine that
18    may be levied under any Section of this Article.
19    (Source: P.A. 86-1029.)

20        Section 195.  The State Finance Act is amended by  adding
21    Section 5.595 as follows:

22        (30 ILCS 105/5.595 new)
23        Sec.    5.595.  The   Local   Government   Video   Gaming
24    Distributive Fund.

25        Section 999.  Effective date.  This Act takes effect upon
26    becoming law.".