093_HB0142ham002











                                     LRB093 02210 LRD 16518 a

 1                     AMENDMENT TO HOUSE BILL 142

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

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

 7        Section 5.  Definitions.  As used in this Act:
 8        "Board" means the Illinois Gaming Board.
 9        "Credit" means 5, 10, or 25 cents either won or purchased
10    by a player.
11        "Distributor"  means  an  individual,   partnership,   or
12    corporation  licensed  under this Act to buy, sell, lease, or
13    distribute video gaming  terminals  or  major  components  or
14    parts   of   video  gaming  terminals  to  or  from  terminal
15    operators.
16        "Terminal operator" means an individual,  partnership  or
17    corporation  that  is  licensed under this Act and that owns,
18    services, and maintains video gaming terminals for  placement
19    in     licensed     establishments,     licensed    fraternal
20    establishments, or licensed veterans establishments.
21        "Licensed technician" means an individual who is licensed
22    under this Act to repair, service, and maintain video  gaming
 
                            -2-      LRB093 02210 LRD 16518 a
 1    terminals.
 2        "Manufacturer"   means  an  individual,  partnership,  or
 3    corporation  that  is  licensed  under  this  Act  and   that
 4    manufactures or assembles video gaming terminals.
 5        "Supplier"   means   an   individual,   partnership,   or
 6    corporation  that  is licensed under this Act to supply major
 7    components or parts to video  gaming  terminals  to  licensed
 8    terminal operators.
 9        "Net terminal income" means money put into a video gaming
10    terminal minus credits paid out to players.
11        "Video  gaming  terminal" means any electronic video game
12    machine that, upon insertion of cash, is available to play or
13    simulate the play of a video game, including but not  limited
14    to  video  poker,  line  up, and blackjack, authorized by the
15    Board utilizing a video display and microprocessors in  which
16    the  player  may  receive  free  games or credits that can be
17    redeemed for cash.  The term does not include a machine  that
18    directly dispenses coins, cash, or tokens or is for amusement
19    purposes only.
20        "Licensed   establishment"   means  any  licensed  retail
21    establishment where alcoholic liquor is drawn, poured, mixed,
22    or otherwise served for consumption on the premises.
23        "Licensed fraternal  establishment"  means  the  location
24    where  a  qualified  fraternal  organization that derives its
25    charter from  a  national  fraternal  organization  regularly
26    meets.
27        "Licensed  veterans  establishment"  means  the  location
28    where  a  qualified  veterans  organization  that derives its
29    charter  from  a  national  veterans  organization  regularly
30    meets.
31        "Licensed truck stop establishment" means a facility that
32    is at least a 3-acre facility with a  convenience  store  and
33    with  separate  diesel  islands  for fueling commercial motor
34    vehicles and parking spaces for commercial motor vehicles  as
 
                            -3-      LRB093 02210 LRD 16518 a
 1    defined in Section 18b-101 of the Illinois Vehicle Code.

 2        Section   15.  Minimum  requirements  for  licensing  and
 3    registration.  Every video gaming terminal offered  for  play
 4    shall  first  be tested and approved pursuant to the rules of
 5    the Board, and each video gaming  terminal  offered  in  this
 6    State for play shall conform to an approved model.  The Board
 7    may  contract  with  an  independent  outside  vendor for the
 8    examination of video gaming machines and associated equipment
 9    as required by this Section.  Each approved model shall, at a
10    minimum, meet the following criteria:
11             (1)  It must conform to all requirements of  federal
12        law  and  regulations,  including  FCC  Class A Emissions
13        Standards.
14             (2)  It must theoretically pay out a  mathematically
15        demonstrable  percentage  during the expected lifetime of
16        the machine of all amounts played, which must not be less
17        than 80%.  Video gaming terminals that may be affected by
18        skill must meet this standard when using a method of play
19        that will provide the greatest return to the player  over
20        a period of continuous play.
21             (3)  It  must  use  a  random  selection  process to
22        determine the outcome of each play of a game.  The random
23        selection process must meet 99% confidence limits using a
24        standard chi-squared test for  (randomness)  goodness  of
25        fit.
26             (4)  It  must  display an accurate representation of
27        the game outcome.
28             (5)  It must not automatically alter pay  tables  or
29        any  function  of  the  video  gaming  terminal  based on
30        internal computation of hold percentage or have any means
31        of manipulation that affects the random selection process
32        or probabilities of winning a game.
33             (6)  It must not be  adversely  affected  by  static
 
                            -4-      LRB093 02210 LRD 16518 a
 1        discharge or other electromagnetic interference.
 2             (7)  It  must be capable of detecting and displaying
 3        the following conditions during idle states or on demand:
 4        power reset; door open; and door just closed.
 5             (8)  It must have the capacity to  display  complete
 6        play  history  (outcome, intermediate play steps, credits
 7        available, bets placed, credits paid, and credits  cashed
 8        out)  for  the most recent game played and 10 games prior
 9        thereto.
10             (9)  The theoretical payback percentage of  a  video
11        gaming  terminal  must  not  be  capable of being changed
12        without making a hardware or software change in the video
13        gaming terminal.
14             (10)  Video gaming terminals  must  be  designed  so
15        that  replacement of parts or modules required for normal
16        maintenance  does  not  necessitate  replacement  of  the
17        electromechanical meters.
18             (11)  It must have nonresettable meters housed in  a
19        locked  area of the terminal that keep a permanent record
20        of all cash inserted into the machine, all winnings  made
21        by  the  terminal  printer,  credits  played in for video
22        gaming  terminals,  and  credits  won  by  video   gaming
23        players.   The  video  gaming  terminal  must provide the
24        means for on-demand  display  of  stored  information  as
25        determined by the Board.
26             (12)  Electronically    stored   meter   information
27        required by this Section must be preserved for a  minimum
28        of 180 days after a power loss to the service.
29             (13)  It  must  have  one  or  more  mechanisms that
30        accept  coins  or  cash  in  the  form  of  bills.    The
31        mechanisms shall be designed to prevent obtaining credits
32        without paying by stringing, slamming, drilling, or other
33        means.
34             (14)  It  shall  have accounting software that keeps
 
                            -5-      LRB093 02210 LRD 16518 a
 1        an electronic record which includes, but is  not  limited
 2        to,  the  following:  total  cash inserted into the video
 3        gaming terminal; the value of winning tickets claimed  by
 4        players;  the total credits played; and the total credits
 5        awarded by a video gaming terminal.
 6             (15)  It shall be linked by a central communications
 7        system  to  provide  auditing  program   information   as
 8        approved by the Board. In no event may the communications
 9        system  approved by the Board limit participation to only
10        one manufacturer of video gaming terminals by either  the
11        cost  in implementing the necessary program modifications
12        to communicate or the inability to communicate  with  the
13        central communications system.
14             (16)  It  shall  be  able  to  receive and broadcast
15        amber alert messages.

16        Section 20.  Direct dispensing of receipt  tickets  only.
17    A  video  gaming  terminal  may  not directly dispense coins,
18    cash, tokens, or any  other  article  of  exchange  or  value
19    except  for  receipt  tickets.  Tickets shall be dispensed by
20    pressing the ticket dispensing button  on  the  video  gaming
21    terminal  at the end of one's turn or play.  The ticket shall
22    indicate the total amount of credits and the cash award,  the
23    time  of  day  in a 24-hour format showing hours and minutes,
24    the date, the terminal serial number, the  sequential  number
25    of  the ticket, and an encrypted validation number from which
26    the validity of the prize may be determined. The player shall
27    turn in this ticket to the appropriate person at the licensed
28    establishment, licensed truck  stop  establishment,  licensed
29    fraternal  establishment,  or licensed veterans establishment
30    to receive the cash award.  The cost of the credit shall be 5
31    cents, 10 cents, or 25 cents, and the  maximum  wager  played
32    per  hand  shall not exceed $2. No cash award for the maximum
33    wager on any individual hand shall exceed $500.
 
                            -6-      LRB093 02210 LRD 16518 a
 1        Section 25.  Restriction of licensees.
 2        (a)  Manufacturer.  A person may not  be  licensed  as  a
 3    manufacturer  of  a  video gaming terminal in Illinois unless
 4    the person has a valid manufacturer's  license  issued  under
 5    this   Act.   A  manufacturer  may  only  sell  video  gaming
 6    terminals for use in  Illinois  to  persons  having  a  valid
 7    distributor's license.
 8        (b)  Distributor.    A  person  may  not  sell,  service,
 9    distribute, or lease or market a  video  gaming  terminal  in
10    Illinois  unless the person has a valid distributor's license
11    issued under this Act.  A distributor  may  only  sell  video
12    gaming  terminals  for  use  in  Illinois to persons having a
13    valid distributor's or terminal operator's license.
14        (c)  Terminal operator.  A person may not  own,  service,
15    maintain,  lease,  or place a video gaming terminal unless he
16    has a valid terminal operator's  license  issued  under  this
17    Act.   A  terminal  operator  may  only  place  video  gaming
18    terminals  for  use  in  Illinois in licensed establishments,
19    licensed  truck  stop  establishments,   licensed   fraternal
20    establishments,  and  licensed  veterans  establishments.  No
21    terminal  operator  may give anything of value, including but
22    not limited to a loan or financing arrangement, to a licensed
23    establishment, licensed truck  stop  establishment,  licensed
24    fraternal  establishment,  or licensed veterans establishment
25    as any incentive or inducement to locate video  terminals  in
26    that  establishment.    Of the after-tax profits from a video
27    gaming terminal, 50% shall be paid to the  terminal  operator
28    and 50% shall be paid to the licensed establishment, licensed
29    truck  stop  establishment, licensed fraternal establishment,
30    or licensed veterans establishment. A terminal operator shall
31    be  entitled  to  access  all  information  recorded  by  the
32    operator's machines pursuant to item (17) of Section  15.  No
33    terminal  operator  may own or have a substantial interest in
34    more than 5% of the video gaming terminals licensed  in  this
 
                            -7-      LRB093 02210 LRD 16518 a
 1    State.
 2        (d)  Licensed  technician.  A  person  may  not  service,
 3    maintain,  or  repair  a  video gaming terminal in this State
 4    unless he or she (1) has a valid technician's license  issued
 5    under  this  Act,  (2)  is  a  terminal  operator,  or (3) is
 6    employed   by   a   terminal   operator,   distributor,    or
 7    manufacturer.
 8        (e)  Licensed  establishment.   A  valid  liquor  license
 9    shall   be  prima  facie  evidence  of  compliance  with  the
10    licensing requirements of this Act to  operate  video  gaming
11    terminals.  No  video  gaming  terminal  may be placed in any
12    licensed  veterans  establishment   or   licensed   fraternal
13    establishment  unless  the owner or agent of the owner of the
14    licensed  veterans  establishment   or   licensed   fraternal
15    establishment  has  entered into a written use agreement with
16    the terminal operator for placement of the terminals.  A copy
17    of the use  agreement  shall  be  on  file  in  the  terminal
18    operator's  place of business and available for inspection by
19    individuals   authorized   by   the   Board.    A    licensed
20    establishment  may  operate up to 3 video gaming terminals on
21    its premises at any  time,  unless  the  Board  authorizes  a
22    greater number. A licensed truck stop establishment, licensed
23    veterans  establishment,  or licensed fraternal establishment
24    may operate up to 5 video gaming terminals on its premises at
25    any time, unless the Board authorizes a greater number.
26        (f)  Residency requirement.   Each  licensed  distributor
27    and terminal operator must be an Illinois resident.  However,
28    if  an  out  of  state  distributor  or terminal operator has
29    performed its respective  business  within  Illinois  for  at
30    least  48 months prior to the effective date of this Act, the
31    out of state person may be eligible for licensing under  this
32    Act, upon application to and approval of the Board.
33        (g)  Financial  interest  restrictions.  As  used in this
34    Act, "substantial interest" in an organization,  association,
 
                            -8-      LRB093 02210 LRD 16518 a
 1    or business means:
 2                  (A)  When,    with    respect    to    a   sole
 3             proprietorship, an individual or his or her  marital
 4             community  owns,  operates,  manages,  or  conducts,
 5             directly    or    indirectly,    the   organization,
 6             association, or business, or any part thereof; or
 7                  (B)  When, with respect to a  partnership,  the
 8             individual or his or her marital community shares in
 9             any  of  the  profits,  or potential profits, of the
10             partnership activities; or
11                  (C)  When, with respect to  a  corporation,  an
12             individual  or  his  or  her spouse is an officer or
13             director, or the individual or his  or  her  marital
14             community  is a holder, directly or beneficially, of
15             5% or more of any class of stock of the corporation;
16             or
17                  (D)  When, with respect to an organization  not
18             covered  in  (A), (B) or (C) above, an individual or
19             his or her spouse  is  an  officer  or  manages  the
20             business  affairs,  or  the individual or his or her
21             marital community  is  the  owner  of  or  otherwise
22             controls   10%   or   more  of  the  assets  of  the
23             organization; or
24                  (E)  When an individual or his or  her  marital
25             community  furnishes  5%  or  more  of  the capital,
26             whether  in  cash,  goods,  or  services,  for   the
27             operation   of   any   business,   association,   or
28             organization during any calendar year.
29        (h)  Location  restriction.   A  licensed  establishment,
30    licensed   truck   stop   establishment,  licensed  fraternal
31    establishment, or licensed  veterans  establishment  that  is
32    located  within  500  feet of a race track licensed under the
33    Illinois Horse Racing Act of 1975 or within 1,000 feet of the
34    home  dock  of  a  riverboat  licensed  under  the  Riverboat
 
                            -9-      LRB093 02210 LRD 16518 a
 1    Gambling  Act  is  ineligible   to  operate  a  video  gaming
 2    terminal.

 3        Section 27.  Prohibition of  video  gaming  by  political
 4    subdivision.    A   municipality   may   pass   an  ordinance
 5    prohibiting video gaming within the corporate limits  of  the
 6    municipality. A county board may, for the unincorporated area
 7    of  the  county,  pass  an ordinance prohibiting video gaming
 8    within the unincorporated area of the county.

 9        Section 30.  Multiple types of  licenses  prohibited.   A
10    video  gaming  terminal manufacturer may not be licensed as a
11    video  gaming  terminal  distributor  or   operator  or  own,
12    manage, or control a licensed establishment,  licensed  truck
13    stop  establishment,  licensed  fraternal  establishment,  or
14    licensed  veterans  establishment, and shall be licensed only
15    to sell to distributors.  A video gaming terminal distributor
16    may not be licensed as a video gaming  terminal  manufacturer
17    or   operator   or   own,   manage,  or  control  a  licensed
18    establishment, licensed truck  stop  establishment,  licensed
19    fraternal  establishment, or licensed veterans establishment,
20    and shall only contract with a licensed terminal operator.  A
21    video gaming terminal operator may not be licensed as a video
22    gaming  terminal  manufacturer or distributor or own, manage,
23    or control a  licensed  establishment,  licensed  truck  stop
24    establishment,  licensed fraternal establishment, or licensed
25    veterans  establishment,  and  shall  be  licensed  only   to
26    contract    with    licensed    distributors   and   licensed
27    establishments, licensed truck stop establishments,  licensed
28    fraternal     establishments,     and    licensed    veterans
29    establishments.  An  owner   or   manager   of   a   licensed
30    establishment,  licensed  truck  stop establishment, licensed
31    fraternal establishment, or licensed  veterans  establishment
32    may  not be licensed as a video gaming terminal manufacturer,
 
                            -10-     LRB093 02210 LRD 16518 a
 1    distributor, or operator, and  shall  only  contract  with  a
 2    licensed operator to place and service this equipment.

 3        Section  35.  Display of license; confiscation; violation
 4    as felony.  Each video gaming terminal shall be  licensed  by
 5    the  Board before placement or operation on the premises of a
 6    licensed establishment, licensed  truck  stop  establishment,
 7    licensed   fraternal   establishment,  or  licensed  veterans
 8    establishment.  The license of  each  video  gaming  terminal
 9    shall  be  maintained  at the location where the video gaming
10    terminal is operated.  Failure to do so is  a  petty  offense
11    with  a  fine not to exceed $100. Any licensed establishment,
12    licensed  truck  stop   establishment,   licensed   fraternal
13    establishment,  or  licensed  veterans establishment used for
14    the conduct of gambling games in violation of this Act  shall
15    be  considered  a gambling place in violation of Section 28-3
16    of the Criminal Code of 1961.  Every gambling device found in
17    a licensed establishment, licensed truck stop  establishment,
18    licensed   fraternal   establishment,  or  licensed  veterans
19    establishment operating gambling games in violation  of  this
20    Act   shall   be   subject   to  seizure,  confiscation,  and
21    destruction as provided in Section 28-5 of the Criminal  Code
22    of  1961.  Any license issued under the Liquor Control Act of
23    1934 to any owner or operator of  a  licensed  establishment,
24    licensed   truck   stop   establishment,  licensed  fraternal
25    establishment,  or  licensed  veterans   establishment   that
26    operates  or permits the operation of a video gaming terminal
27    within its establishment in violation of this  Act  shall  be
28    immediately  revoked. No person may own, operate, have in his
29    or her possession or custody or under his or her control,  or
30    permit to be kept in any place under his or her possession or
31    control,  any  device  that  awards  credits  and  contains a
32    circuit, meter, or switch capable of removing  and  recording
33    the removal of credits when the award of credits is dependent
 
                            -11-     LRB093 02210 LRD 16518 a
 1    upon  chance.   A  violation  of  this  Section  is a Class 4
 2    felony.  All devices that are owned, operated,  or  possessed
 3    in violation of this Section are hereby declared to be public
 4    nuisances  and shall be subject to seizure, confiscation, and
 5    destruction as provided in Section 28-5 of the Criminal  Code
 6    of  1961.  The  provisions  of  this  Section do not apply to
 7    devices or electronic video game terminals licensed  pursuant
 8    to this Act.

 9        Section   40.  Video   gaming   terminal  use  by  minors
10    prohibited.  No licensee shall cause  or  permit  any  person
11    under  the  age  of  21  years  to use or play a video gaming
12    terminal.  Any licensee who knowingly permits a person  under
13    the age of 21 years to use or play a video gaming terminal is
14    guilty of a business offense and shall be fined an amount not
15    to exceed $5,000.

16        Section 45.  Issuance of license.
17        (a)  The burden is upon each applicant to demonstrate his
18    suitability   for  licensure.   Each  video  gaming  terminal
19    manufacturer, distributor, operator, licensed  establishment,
20    licensed   truck   stop   establishment,  licensed  fraternal
21    establishment, and licensed veterans establishment  shall  be
22    licensed  by  the  Board.  The  Board may not issue a license
23    under this Act to any person who, within 10 years of the date
24    of the application, has been convicted of a felony under  the
25    laws of this State, any other state, or the United States, or
26    to  any  firm  or  corporation  in  which such a person is an
27    officer, director, or managerial employee.
28        (b)  A non-refundable application fee shall  be  paid  at
29    the time an application for a license is filed with the Board
30    in the following amounts:
31             (1)  Manufacturer..........................  $ 5,000
32             (2)  Distributor...........................  $ 5,000
 
                            -12-     LRB093 02210 LRD 16518 a
 1             (3)  Terminal operator.....................  $ 5,000
 2             (4)  Supplier..............................  $ 2,500
 3             (5)  Technician............................  $   100
 4        (c)  Any  application  not  approved  within  90  days of
 5    receipt by the Board shall be deemed approved.
 6        (d)  Each licensed  distributor,  terminal  operator,  or
 7    person  with  a  substantial  interest  in  a  distributor or
 8    terminal operator must have resided in Illinois for at  least
 9    24 months prior to application unless he or she has performed
10    his  or  her  respective business in Illinois for at least 48
11    months prior to the effective date of this Act.
12        The Board shall establish an annual fee for each  license
13    not to exceed the following:
14             (1)  Manufacturer..........................  $10,000
15             (2)  Distributor...........................  $10,000
16             (3)  Terminal operator.....................  $ 5,000
17             (4)  Supplier..............................  $ 2,000
18             (5)  Technician............................  $   100
19             (6)  Licensed establishment, licensed truck
20        stop     establishment,    licensed    fraternal
21        establishment,     or     licensed      veterans
22        establishment...................................  $   100
23             (7)  Video gaming terminal.................  $   100

24        Section 50. Distribution of license fees.
25        (a)  All   fees  collected  under  Section  45  shall  be
26    deposited in the General Revenue Fund.
27        (b)  Fees collected under Section 45  shall  be  used  as
28    follows:
29             (1)  Twenty-five  percent  shall be paid to programs
30        for the treatment of compulsive gambling.
31             (2)  Seventy-five percent  shall  be  used  for  the
32        administration of this Act.
33        (c)  All  licenses issued by the Board under this Act are
 
                            -13-     LRB093 02210 LRD 16518 a
 1    renewable annually unless sooner cancelled or terminated.  No
 2    license issued under this Act is transferable or assignable.

 3        Section 55.  Precondition for licensed establishment.  In
 4    all  cases  of  application  for a licensed establishment, to
 5    operate a video gaming terminal,  each  licensed  truck  stop
 6    establishment,  licensed fraternal establishment, or licensed
 7    veterans establishment shall possess a valid  liquor  license
 8    issued by the Illinois Liquor Control Commission in effect at
 9    the  time  of  application and at all times thereafter during
10    which a video gaming terminal is made available to the public
11    for play at that location.

12        Section  57.  Insurance.  Each  licensed   establishment,
13    licensed   truck   stop   establishment,  licensed  fraternal
14    establishment,  and  licensed  veterans  establishment  shall
15    maintain insurance on any gaming device on its premises in an
16    amount set by the Board.

17        Section  58.  Location  of   terminals.    Video   gaming
18    terminals  must be located in an area that is within the view
19    of at least one employee of the establishment in  which  they
20    are located.

21        Section 60.  Imposition and distribution of tax.
22        (a)  A  tax  of 25% is imposed on net terminal income and
23    shall be collected by the Board.
24        (b)  Of the tax collected under this Section,  80%  shall
25    be  deposited  in  the  State  Gaming  Fund  and 20% shall be
26    deposited into the Local Government Video Gaming Distributive
27    Fund.
28        (c)  Revenues generated from the  play  of  video  gaming
29    terminals shall be deposited by the terminal operator, who is
30    responsible   for  tax  payments,  in  a  specially  created,
 
                            -14-     LRB093 02210 LRD 16518 a
 1    separate bank account maintained by the video gaming terminal
 2    operator to allow for electronic fund transfers of moneys for
 3    tax payment.
 4        (d)  Each licensed  establishment,  licensed  truck  stop
 5    establishment, licensed fraternal establishment, and licensed
 6    veterans  establishment  shall  maintain  an  adequate  video
 7    gaming fund, with the amount to be determined by the Board.

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

11        Section  70. Referendum. Upon the filing in the office of
12    the clerk, at  least  90  days  before  an  election  in  any
13    municipality  or  county,  as  the case may be, of a petition
14    directed to such clerk, containing the signatures of not less
15    than 25% of the legal voters of that municipality or  county,
16    the  clerk  shall  certify  such  proposition  to  the proper
17    election officials, who shall submit the proposition at  such
18    election  to  the  voters of such municipality or county. The
19    proposition shall be in the following form:
20    -------------------------------------------------------------
21    Shall video gaming                      YES
22    be prohibited in                       ----------------------
23    .................?                      NO
24    -------------------------------------------------------------
25    If a majority of the voters voting upon such  last  mentioned
26    proposition  in  any  municipality or county vote "YES", such
27    video gaming shall be  prohibited  in  such  municipality  or
28    county.  The  petition  mentioned  in this Section shall be a
29    public document and shall be subject  to  inspection  by  the
30    public.

31        Section  75.  Revenue  sharing;  Local  Government  Video
 
                            -15-     LRB093 02210 LRD 16518 a
 1    Gaming Distributive Fund.
 2        (a)  Beginning  July 1, 2003, as soon as may be after the
 3    first day of each month,  the  Department  of  Revenue  shall
 4    certify  to  the  Treasurer an amount equal to 25% of the net
 5    revenue realized from the tax imposed by  Section  60  during
 6    the  preceding  month. Net revenue realized for a month shall
 7    be defined as the revenue from the tax imposed by Section  60
 8    during  the  month.  Upon  receipt of such certification, the
 9    Treasurer shall transfer from the General Revenue Fund  to  a
10    special  fund in the State treasury, to be known as the Local
11    Government Video Gaming Distributive Fund, the  amount  shown
12    on such certification.
13        All  amounts  paid into the Local Government Video Gaming
14    Distributive Fund  and  allocated  in  accordance  with  this
15    Section are appropriated on a continuing basis.
16        (b)  As soon as may be after the first day of each month,
17    the   Department   of  Revenue  shall  allocate  among  those
18    municipalities and counties  of  this  State  that  have  not
19    prohibited  video  gaming  pursuant  to Section 27 the amount
20    available in the Local Government Video  Gaming  Distributive
21    Fund,  as  provided  in Section 60. The Department shall then
22    certify such allocations to the State Comptroller, who  shall
23    pay  over  to  those eligible municipalities and counties the
24    respective amounts allocated to them.   The  amount  of  such
25    funds allocable to each such municipality and county shall be
26    in  proportion  to the number of individual residents of such
27    municipality or county  to  the  total  population  of  those
28    eligible  municipalities and counties determined in each case
29    on the basis of the latest  census  of  the  municipality  or
30    county  conducted  by the federal government and certified by
31    the Secretary of State and for annexations to municipalities,
32    the latest federal, State, or municipal census of the annexed
33    area which has been certified by the Department  of  Revenue.
34    For  the  purpose  of  this Section, the number of individual
 
                            -16-     LRB093 02210 LRD 16518 a
 1    residents of a county shall  be  reduced  by  the  number  of
 2    individuals  residing  therein  in  municipalities,  but  the
 3    number  of  individual  residents  of  the municipality shall
 4    reflect the latest census of the municipality.
 5        (c)  The amounts allocated and paid to a municipality  or
 6    county  of  this  State  pursuant  to  the provisions of this
 7    Section  may  be  used  for  any  general  corporate  purpose
 8    authorized for that municipality or county.
 9        (d)  Upon determination by the Department that an  amount
10    has  been  paid  pursuant  to  this  Section in excess of the
11    amount to which the county  or  municipality  receiving  such
12    payment  was entitled, the county or municipality shall, upon
13    demand  by  the  Department,  repay  such  amount.  If   such
14    repayment   is   not  made  within  a  reasonable  time,  the
15    Department shall withhold  from  future  payments  an  amount
16    equal  to such overpayment. The Department shall redistribute
17    the amount of such payment  to  the  county  or  municipality
18    entitled thereto.

19        Section  185.  The  Riverboat  Gambling Act is amended by
20    changing Section 5 as follows:

21        (230 ILCS 10/5) (from Ch. 120, par. 2405)
22        Sec. 5.  Gaming Board.
23        (a) (1)  There   is   hereby   established   within   the
24    Department of Revenue an Illinois Gaming  Board  which  shall
25    have  the  powers  and  duties specified in this Act, and all
26    other powers necessary and proper to  fully  and  effectively
27    execute   this   Act   for   the  purpose  of  administering,
28    regulating, and enforcing the system  of  riverboat  gambling
29    established  by this Act. Its jurisdiction shall extend under
30    this  Act  to   every   person,   association,   corporation,
31    partnership   and   trust   involved  in  riverboat  gambling
32    operations in the State of Illinois.
 
                            -17-     LRB093 02210 LRD 16518 a
 1        (2)  The Board shall consist of 5 members to be appointed
 2    by the Governor with the advice and consent  of  the  Senate,
 3    one  of  whom  shall  be  designated  by  the  Governor to be
 4    chairman.  Each member shall have a reasonable  knowledge  of
 5    the   practice,   procedure   and   principles   of  gambling
 6    operations.  Each  member  shall  either  be  a  resident  of
 7    Illinois or shall certify that he will become a  resident  of
 8    Illinois  before  taking office. At least one member shall be
 9    experienced in law enforcement and criminal investigation, at
10    least one member  shall  be  a  certified  public  accountant
11    experienced  in  accounting  and  auditing,  and at least one
12    member  shall  be  a  lawyer  licensed  to  practice  law  in
13    Illinois.
14        (3)  The terms of office of the Board members shall be  3
15    years,  except  that the terms of office of the initial Board
16    members appointed pursuant to this Act will commence from the
17    effective date of this Act and run  as  follows:  one  for  a
18    term  ending  July 1, 1991, 2 for a term ending July 1, 1992,
19    and 2 for a term ending July 1, 1993.  Upon the expiration of
20    the foregoing terms, the successors  of  such  members  shall
21    serve  a  term  for  3  years  and until their successors are
22    appointed and qualified for  like  terms.  Vacancies  in  the
23    Board  shall  be filled for the unexpired term in like manner
24    as original appointments.  Each member of the Board shall  be
25    eligible  for reappointment at the discretion of the Governor
26    with the advice and consent of the Senate.
27        (4)  Each member of the Board shall receive $300 for each
28    day the Board meets and for each day the member conducts  any
29    hearing pursuant to this Act.  Each member of the Board shall
30    also  be reimbursed for all actual and necessary expenses and
31    disbursements incurred in the execution of official duties.
32        (5)  No person shall be appointed a member of  the  Board
33    or  continue  to  be  a  member of the Board who is, or whose
34    spouse, child  or  parent  is,  a  member  of  the  board  of
 
                            -18-     LRB093 02210 LRD 16518 a
 1    directors  of,  or  a  person  financially interested in, any
 2    gambling operation subject to the jurisdiction of this Board,
 3    or any race track, race meeting, racing  association  or  the
 4    operations   thereof  subject  to  the  jurisdiction  of  the
 5    Illinois Racing Board.  No Board member shall hold any  other
 6    public  office  for which he shall receive compensation other
 7    than necessary  travel  or  other  incidental  expenses.   No
 8    person  shall  be  a  member  of the Board who is not of good
 9    moral character or who has been convicted  of,  or  is  under
10    indictment  for,  a  felony under the laws of Illinois or any
11    other state, or the United States.
12        (6)  Any member of  the  Board  may  be  removed  by  the
13    Governor  for  neglect  of duty, misfeasance, malfeasance, or
14    nonfeasance in office.
15        (7)  Before entering upon the discharge of the duties  of
16    his  office, each member of the Board shall take an oath that
17    he will faithfully execute the duties of his office according
18    to the laws of  the  State  and  the  rules  and  regulations
19    adopted  therewith  and  shall  give  bond  to  the  State of
20    Illinois, approved by the Governor, in the  sum  of  $25,000.
21    Every  such  bond,  when duly executed and approved, shall be
22    recorded in the office of the Secretary of  State.   Whenever
23    the  Governor  determines  that the bond of any member of the
24    Board  has  become  or  is  likely  to  become   invalid   or
25    insufficient, he shall require such member forthwith to renew
26    his  bond,  which  is  to  be  approved by the Governor.  Any
27    member of the Board who fails to  take  oath  and  give  bond
28    within 30 days from the date of his appointment, or who fails
29    to  renew his bond within 30 days after it is demanded by the
30    Governor, shall be guilty of  neglect  of  duty  and  may  be
31    removed  by  the Governor.  The cost of any bond given by any
32    member of the Board under this Section shall be taken to be a
33    part of the necessary expenses of the Board.
34        (8)  Upon the request of the Board, the Department  shall
 
                            -19-     LRB093 02210 LRD 16518 a
 1    employ  such  personnel  as may be necessary to carry out the
 2    functions of the Board.  No person shall be employed to serve
 3    the Board who is, or whose spouse, parent  or  child  is,  an
 4    official  of,  or  has  a  financial interest in or financial
 5    relation with, any operator engaged  in  gambling  operations
 6    within  this  State or any organization engaged in conducting
 7    horse racing within this State.  Any employee violating these
 8    prohibitions shall be subject to termination of employment.
 9        (9)  An Administrator shall perform any  and  all  duties
10    that   the  Board  shall  assign  him.   The  salary  of  the
11    Administrator shall be determined by the Board  and  approved
12    by  the Director of the Department and, in addition, he shall
13    be reimbursed for all actual and necessary expenses  incurred
14    by   him   in   discharge   of   his  official  duties.   The
15    Administrator shall keep records of all  proceedings  of  the
16    Board  and  shall  preserve all records, books, documents and
17    other papers belonging to the Board or entrusted to its care.
18    The Administrator shall devote his full time to the duties of
19    the office and shall not hold any other office or employment.
20        (b)  The Board shall have general responsibility for  the
21    implementation  of  this  Act.   Its  duties include, without
22    limitation, the following:
23             (1)  To decide promptly and in reasonable order  all
24        license applications. Any party aggrieved by an action of
25        the  Board  denying, suspending, revoking, restricting or
26        refusing to renew a license may request a hearing  before
27        the  Board.   A request for a hearing must be made to the
28        Board in writing within 5 days after service of notice of
29        the action of the Board.  Notice of  the  action  of  the
30        Board  shall  be served either by personal delivery or by
31        certified mail, postage prepaid, to the aggrieved party.
32        Notice served by certified mail shall be deemed  complete
33        on  the  business day following the date of such mailing.
34        The Board shall conduct all requested  hearings  promptly
 
                            -20-     LRB093 02210 LRD 16518 a
 1        and in reasonable order;
 2             (2)  To  conduct  all  hearings  pertaining to civil
 3        violations  of  this  Act  or   rules   and   regulations
 4        promulgated hereunder;
 5             (3)  To  promulgate such rules and regulations as in
 6        its judgment may be necessary to protect or  enhance  the
 7        credibility   and   integrity   of   gambling  operations
 8        authorized  by  this  Act  and  the  regulatory   process
 9        hereunder;
10             (4)  To provide for the establishment and collection
11        of all license and registration fees and taxes imposed by
12        this  Act  and  the rules and regulations issued pursuant
13        hereto.  All such fees and taxes shall be deposited  into
14        the State Gaming Fund;
15             (5)  To  provide  for  the  levy  and  collection of
16        penalties and fines for the violation  of  provisions  of
17        this  Act  and  the  rules  and  regulations  promulgated
18        hereunder.    All  such  fines  and  penalties  shall  be
19        deposited into the Education Assistance Fund, created  by
20        Public Act 86-0018, of the State of Illinois;
21             (6)  To be present through its inspectors and agents
22        any   time  gambling  operations  are  conducted  on  any
23        riverboat for  the  purpose  of  certifying  the  revenue
24        thereof,   receiving  complaints  from  the  public,  and
25        conducting such other investigations into the conduct  of
26        the  gambling  games and the maintenance of the equipment
27        as from time to time the Board  may  deem  necessary  and
28        proper;
29             (7)  To  review  and  rule  upon  any complaint by a
30        licensee regarding any investigative  procedures  of  the
31        State  which  are  unnecessarily  disruptive  of gambling
32        operations.  The need to inspect and investigate shall be
33        presumed at all times.  The disruption  of  a  licensee's
34        operations  shall  be  proved  by  clear  and  convincing
 
                            -21-     LRB093 02210 LRD 16518 a
 1        evidence,  and establish that:  (A) the procedures had no
 2        reasonable  law  enforcement  purposes,   and   (B)   the
 3        procedures  were so disruptive as to unreasonably inhibit
 4        gambling operations;
 5             (8)  To hold at least one meeting  each  quarter  of
 6        the  fiscal  year.   In addition, special meetings may be
 7        called by the Chairman or any 2  Board  members  upon  72
 8        hours  written notice to each member.  All Board meetings
 9        shall be subject to the Open Meetings Act. Three  members
10        of the Board shall constitute a quorum, and 3 votes shall
11        be  required  for  any  final determination by the Board.
12        The Board shall keep a complete and  accurate  record  of
13        all  its meetings. A majority of the members of the Board
14        shall constitute a quorum  for  the  transaction  of  any
15        business,  for  the  performance  of any duty, or for the
16        exercise of any power which this Act requires  the  Board
17        members  to transact, perform or exercise en banc, except
18        that, upon order of the Board, one of the  Board  members
19        or  an  administrative  law judge designated by the Board
20        may conduct any hearing provided for under this Act or by
21        Board rule and may recommend findings  and  decisions  to
22        the  Board.  The Board member or administrative law judge
23        conducting such hearing shall have all powers and  rights
24        granted  to the Board in this Act. The record made at the
25        time of the hearing shall be reviewed by the Board, or  a
26        majority  thereof,  and  the findings and decision of the
27        majority of the Board shall constitute the order  of  the
28        Board in such case;
29             (9)  To  maintain  records  which  are  separate and
30        distinct from the records of any  other  State  board  or
31        commission.   Such  records shall be available for public
32        inspection  and  shall  accurately  reflect   all   Board
33        proceedings;
34             (10)  To  file  a  written  annual  report  with the
 
                            -22-     LRB093 02210 LRD 16518 a
 1        Governor  on  or  before  March  1  each  year  and  such
 2        additional reports  as  the  Governor  may  request.  The
 3        annual  report  shall include a statement of receipts and
 4        disbursements by the Board, actions taken by  the  Board,
 5        and  any additional information and recommendations which
 6        the Board may deem valuable or  which  the  Governor  may
 7        request;
 8             (11)  (Blank); and
 9             (12)  To     assume     responsibility    for    the
10        administration and enforcement of the Bingo  License  and
11        Tax  Act, the Charitable Games Act, and the Pull Tabs and
12        Jar Games Act if such responsibility is delegated  to  it
13        by the Director of Revenue; and.
14             (13)  To  assume  responsibility  for administration
15        and enforcement of the Video Gaming Act.
16        (c)  The Board shall have  jurisdiction  over  and  shall
17    supervise  all gambling operations governed by this Act.  The
18    Board shall have all powers necessary and proper to fully and
19    effectively execute the provisions of  this  Act,  including,
20    but not limited to, the following:
21             (1)  To  investigate  applicants  and  determine the
22        eligibility of applicants  for  licenses  and  to  select
23        among  competing  applicants  the  applicants  which best
24        serve the interests of the citizens of Illinois.
25             (2)  To have jurisdiction and supervision  over  all
26        riverboat  gambling  operations  in  this  State  and all
27        persons  on  riverboats  where  gambling  operations  are
28        conducted.
29             (3)  To promulgate rules  and  regulations  for  the
30        purpose  of  administering the provisions of this Act and
31        to prescribe  rules,  regulations  and  conditions  under
32        which  all  riverboat  gambling  in  the  State  shall be
33        conducted.  Such rules and regulations are to provide for
34        the prevention of practices  detrimental  to  the  public
 
                            -23-     LRB093 02210 LRD 16518 a
 1        interest   and   for  the  best  interests  of  riverboat
 2        gambling, including rules and regulations  regarding  the
 3        inspection  of  such  riverboats  and  the  review of any
 4        permits or licenses  necessary  to  operate  a  riverboat
 5        under  any  laws or regulations applicable to riverboats,
 6        and to impose penalties for violations thereof.
 7             (4)  To enter the office, riverboats, facilities, or
 8        other places of business of a licensee, where evidence of
 9        the compliance or noncompliance with  the  provisions  of
10        this Act is likely to be found.
11             (5)  To  investigate  alleged violations of this Act
12        or the  rules  of  the  Board  and  to  take  appropriate
13        disciplinary  action against a licensee or a holder of an
14        occupational  license  for  a  violation,  or   institute
15        appropriate legal action for enforcement, or both.
16             (6)  To  adopt  standards  for  the licensing of all
17        persons under this Act, as  well  as  for  electronic  or
18        mechanical gambling games, and to establish fees for such
19        licenses.
20             (7)  To   adopt   appropriate   standards   for  all
21        riverboats and facilities.
22             (8)  To  require   that   the   records,   including
23        financial  or other statements of any licensee under this
24        Act, shall be kept in such manner as  prescribed  by  the
25        Board   and  that  any  such  licensee  involved  in  the
26        ownership or management of gambling operations submit  to
27        the  Board  an  annual  balance sheet and profit and loss
28        statement, list of  the  stockholders  or  other  persons
29        having  a  1%  or  greater  beneficial  interest  in  the
30        gambling  activities  of  each  licensee,   and any other
31        information  the  Board  deems  necessary  in  order   to
32        effectively   administer   this   Act   and   all  rules,
33        regulations, orders and final decisions promulgated under
34        this Act.
 
                            -24-     LRB093 02210 LRD 16518 a
 1             (9)  To conduct hearings, issue  subpoenas  for  the
 2        attendance of witnesses and subpoenas duces tecum for the
 3        production   of   books,   records  and  other  pertinent
 4        documents in accordance with the Illinois  Administrative
 5        Procedure  Act,  and to administer oaths and affirmations
 6        to the witnesses, when, in the judgment of the Board,  it
 7        is  necessary  to  administer  or enforce this Act or the
 8        Board rules.
 9             (10)  To prescribe a form to be used by any licensee
10        involved in  the  ownership  or  management  of  gambling
11        operations  as  an  application  for employment for their
12        employees.
13             (11)  To revoke or suspend licenses,  as  the  Board
14        may see fit and in compliance with applicable laws of the
15        State  regarding administrative procedures, and to review
16        applications for the renewal of licenses.  The Board  may
17        suspend an owners license, without notice or hearing upon
18        a  determination  that the safety or health of patrons or
19        employees is  jeopardized  by  continuing  a  riverboat's
20        operation.  The suspension may remain in effect until the
21        Board  determines  that the cause for suspension has been
22        abated.  The Board may revoke the owners license  upon  a
23        determination  that  the  owner has not made satisfactory
24        progress toward abating the hazard.
25             (12)  To eject or exclude or authorize the  ejection
26        or  exclusion  of,  any  person  from  riverboat gambling
27        facilities where such person is in violation of this Act,
28        rules and regulations thereunder, or final orders of  the
29        Board,  or  where  such person's conduct or reputation is
30        such that his  presence  within  the  riverboat  gambling
31        facilities  may,  in  the opinion of the Board, call into
32        question  the  honesty  and  integrity  of  the  gambling
33        operations or interfere  with  orderly  conduct  thereof;
34        provided that the propriety of such ejection or exclusion
 
                            -25-     LRB093 02210 LRD 16518 a
 1        is subject to subsequent hearing by the Board.
 2             (13)  To   require   all   licensees   of   gambling
 3        operations  to utilize a cashless wagering system whereby
 4        all players' money is  converted  to  tokens,  electronic
 5        cards,  or chips which shall be used only for wagering in
 6        the gambling establishment.
 7             (14)  (Blank).
 8             (15)  To suspend, revoke or  restrict  licenses,  to
 9        require  the  removal  of  a licensee or an employee of a
10        licensee for a violation of this Act or a Board  rule  or
11        for  engaging  in  a  fraudulent  practice, and to impose
12        civil penalties of up to $5,000 against  individuals  and
13        up  to  $10,000  or  an  amount  equal to the daily gross
14        receipts, whichever is larger, against licensees for each
15        violation of any provision of the Act, any rules  adopted
16        by  the Board, any order of the Board or any other action
17        which, in the  Board's  discretion,  is  a  detriment  or
18        impediment to riverboat gambling operations.
19             (16)  To   hire  employees  to  gather  information,
20        conduct investigations and  carry  out  any  other  tasks
21        contemplated under this Act.
22             (17)  To establish minimum levels of insurance to be
23        maintained by licensees.
24             (18)  To  authorize  a  licensee  to  sell  or serve
25        alcoholic liquors, wine or beer as defined in the  Liquor
26        Control  Act  of  1934  on  board a riverboat and to have
27        exclusive authority to establish the hours for  sale  and
28        consumption  of  alcoholic  liquor  on board a riverboat,
29        notwithstanding any provision of the Liquor  Control  Act
30        of 1934 or any local ordinance, and regardless of whether
31        the riverboat makes excursions.  The establishment of the
32        hours  for  sale  and  consumption of alcoholic liquor on
33        board a riverboat is an exclusive power and  function  of
34        the  State.  A home rule unit may not establish the hours
 
                            -26-     LRB093 02210 LRD 16518 a
 1        for sale and consumption of alcoholic liquor on  board  a
 2        riverboat.   This  amendatory Act of 1991 is a denial and
 3        limitation  of  home  rule  powers  and  functions  under
 4        subsection (h)  of  Section  6  of  Article  VII  of  the
 5        Illinois Constitution.
 6             (19)  After consultation with the U.S. Army Corps of
 7        Engineers, to establish binding emergency orders upon the
 8        concurrence  of  a  majority  of the members of the Board
 9        regarding  the  navigability  of   water,   relative   to
10        excursions,  in  the event of extreme weather conditions,
11        acts of God or other extreme circumstances.
12             (20)  To delegate the execution of any of its powers
13        under this Act  for  the  purpose  of  administering  and
14        enforcing   this   Act  and  its  rules  and  regulations
15        hereunder.
16             (21)  To take any other action as may be  reasonable
17        or   appropriate  to  enforce  this  Act  and  rules  and
18        regulations hereunder.
19        (d)  The Board may seek and shall receive the cooperation
20    of the Department of State Police  in  conducting  background
21    investigations   of   applicants   and   in   fulfilling  its
22    responsibilities under this Section.  Costs incurred  by  the
23    Department  of  State  Police as a result of such cooperation
24    shall  be  paid  by  the  Board  in  conformance   with   the
25    requirements  of  Section 2605-400 of the Department of State
26    Police Law (20 ILCS 2605/2605-400).
27        (e)  The Board must authorize to each investigator and to
28    any other employee of the Board exercising the  powers  of  a
29    peace officer a distinct badge that, on its face, (i) clearly
30    states  that  the  badge  is authorized by the Board and (ii)
31    contains a unique identifying number.  No other  badge  shall
32    be authorized by the Board.
33    (Source:  P.A.  91-40,  eff.  1-1-00;  91-239,  eff.  1-1-00;
34    91-883, eff. 1-1-01.)
 
                            -27-     LRB093 02210 LRD 16518 a
 1        Section  190.   The  Criminal  Code of 1961 is amended by
 2    changing Sections 28-1, 28-1.1, and 28-3 as follows:

 3        (720 ILCS 5/28-1) (from Ch. 38, par. 28-1)
 4        Sec. 28-1.  Gambling.
 5        (a)  A person commits gambling when he:
 6             (1)  Plays a game of chance or skill  for  money  or
 7        other  thing  of value, unless excepted in subsection (b)
 8        of this Section; or
 9             (2)  Makes a wager upon  the  result  of  any  game,
10        contest,  or  any  political  nomination,  appointment or
11        election; or
12             (3)  Operates,   keeps,   owns,   uses,   purchases,
13        exhibits, rents, sells, bargains for the  sale  or  lease
14        of, manufactures or distributes any gambling device; or
15             (4)  Contracts  to  have  or give himself or another
16        the option to buy or sell, or contracts to buy  or  sell,
17        at   a   future   time,  any  grain  or  other  commodity
18        whatsoever, or any stock  or  security  of  any  company,
19        where  it is at the time of making such contract intended
20        by both parties thereto that the contract to buy or sell,
21        or  the  option,  whenever  exercised,  or  the  contract
22        resulting therefrom, shall be settled, not by the receipt
23        or delivery of such property, but by the payment only  of
24        differences  in  prices  thereof;  however, the issuance,
25        purchase, sale, exercise, endorsement or guarantee, by or
26        through a person registered with the Secretary  of  State
27        pursuant  to  Section 8 of the Illinois Securities Law of
28        1953,  or  by  or  through  a  person  exempt  from  such
29        registration under said Section 8, of  a  put,  call,  or
30        other  option  to  buy or sell securities which have been
31        registered with the  Secretary  of  State  or  which  are
32        exempt  from  such  registration  under  Section 3 of the
33        Illinois Securities Law of 1953 is  not  gambling  within
 
                            -28-     LRB093 02210 LRD 16518 a
 1        the meaning of this paragraph (4); or
 2             (5)  Knowingly   owns   or   possesses   any   book,
 3        instrument  or apparatus by means of which bets or wagers
 4        have been, or are, recorded or registered,  or  knowingly
 5        possesses  any  money which he has received in the course
 6        of a bet or wager; or
 7             (6)  Sells pools upon the  result  of  any  game  or
 8        contest   of   skill  or  chance,  political  nomination,
 9        appointment or election; or
10             (7)  Sets up  or  promotes  any  lottery  or  sells,
11        offers  to  sell or transfers any ticket or share for any
12        lottery; or
13             (8)  Sets up or promotes any policy game  or  sells,
14        offers  to  sell  or knowingly possesses or transfers any
15        policy ticket, slip, record, document  or  other  similar
16        device; or
17             (9)  Knowingly   drafts,  prints  or  publishes  any
18        lottery ticket or share,  or  any  policy  ticket,  slip,
19        record,  document  or  similar  device,  except  for such
20        activity related to lotteries, bingo  games  and  raffles
21        authorized  by  and conducted in accordance with the laws
22        of Illinois or any other state or foreign government; or
23             (10)  Knowingly advertises  any  lottery  or  policy
24        game,  except  for  such  activity  related to lotteries,
25        bingo games and raffles authorized by  and  conducted  in
26        accordance  with the laws of Illinois or any other state;
27        or
28             (11)  Knowingly transmits information as to  wagers,
29        betting  odds,  or  changes in betting odds by telephone,
30        telegraph,  radio,  semaphore  or   similar   means;   or
31        knowingly   installs   or  maintains  equipment  for  the
32        transmission or receipt of such information; except  that
33        nothing  in  this subdivision (11) prohibits transmission
34        or receipt of such information for use in news  reporting
 
                            -29-     LRB093 02210 LRD 16518 a
 1        of sporting events or contests; or
 2             (12)  Knowingly  establishes, maintains, or operates
 3        an Internet site that permits a person to play a game  of
 4        chance  or  skill  for  money  or other thing of value by
 5        means of the Internet or to make a wager upon the  result
 6        of  any game, contest, political nomination, appointment,
 7        or election by means of the Internet.
 8        (b)  Participants in  any  of  the  following  activities
 9    shall not be convicted of gambling therefor:
10             (1)  Agreements to compensate for loss caused by the
11        happening   of   chance   including   without  limitation
12        contracts of indemnity or guaranty and life or health  or
13        accident insurance;
14             (2)  Offers  of prizes, award or compensation to the
15        actual contestants in  any  bona  fide  contest  for  the
16        determination  of  skill, speed, strength or endurance or
17        to the owners of animals  or  vehicles  entered  in  such
18        contest;
19             (3)  Pari-mutuel betting as authorized by the law of
20        this State;
21             (4)  Manufacture  of gambling devices, including the
22        acquisition of essential parts therefor and the  assembly
23        thereof,  for  transportation  in  interstate  or foreign
24        commerce to  any  place  outside  this  State  when  such
25        transportation   is  not  prohibited  by  any  applicable
26        Federal  law;  or  the  manufacture,   distribution,   or
27        possession  of  video gaming terminals, as defined in the
28        Video Gaming Act,  by  manufacturers,  distributors,  and
29        terminal  operators  licensed  to  do  so under the Video
30        Gaming Act;
31             (5)  The  game  commonly  known  as  "bingo",   when
32        conducted  in  accordance  with the Bingo License and Tax
33        Act;
34             (6)  Lotteries  when  conducted  by  the  State   of
 
                            -30-     LRB093 02210 LRD 16518 a
 1        Illinois in accordance with the Illinois Lottery Law;
 2             (7)  Possession  of  an antique slot machine that is
 3        neither used nor intended to be used in the operation  or
 4        promotion   of   any   unlawful   gambling   activity  or
 5        enterprise.  For the purpose of this subparagraph (b)(7),
 6        an antique slot machine is one manufactured 25 years  ago
 7        or earlier;
 8             (8)  Raffles  when  conducted in accordance with the
 9        Raffles Act;
10             (9)  Charitable games when conducted  in  accordance
11        with the Charitable Games Act;
12             (10)  Pull  tabs  and jar games when conducted under
13        the Illinois Pull Tabs and Jar Games Act; or
14             (11)  Gambling games conducted  on  riverboats  when
15        authorized by the Riverboat Gambling Act; or.
16             (12)  Video  gaming  terminal  games  at  a licensed
17        establishment,   licensed   truck   stop   establishment,
18        licensed fraternal establishment,  or  licensed  veterans
19        establishment when conducted in accordance with the Video
20        Gaming Act.
21        (c)  Sentence.
22        Gambling  under  subsection  (a)(1)  or  (a)(2)  of  this
23    Section  is  a  Class  A  misdemeanor.  Gambling under any of
24    subsections (a)(3) through (a)(11) of this Section is a Class
25    A misdemeanor.  A second or subsequent conviction  under  any
26    of  subsections  (a)(3) through (a)(11), is a Class 4 felony.
27    Gambling under subsection (a)(12) of this Section is a  Class
28    A  misdemeanor.   A  second  or  subsequent  conviction under
29    subsection (a)(12) is a Class 4 felony.
30        (d)  Circumstantial evidence.
31        In prosecutions under subsection (a)(1)  through  (a)(12)
32    of  this  Section circumstantial evidence shall have the same
33    validity and weight as in any criminal prosecution.
34    (Source: P.A. 91-257, eff. 1-1-00.)
 
                            -31-     LRB093 02210 LRD 16518 a
 1        (720 ILCS 5/28-1.1) (from Ch. 38, par. 28-1.1)
 2        Sec. 28-1.1.  Syndicated gambling.
 3        (a)  Declaration  of  Purpose.  Recognizing   the   close
 4    relationship   between   professional   gambling   and  other
 5    organized crime, it is declared  to  be  the  policy  of  the
 6    legislature to restrain persons from engaging in the business
 7    of  gambling for profit in this State.  This Section shall be
 8    liberally construed and administered with a view to  carrying
 9    out this policy.
10        (b)  A   person   commits  syndicated  gambling  when  he
11    operates a "policy  game"  or  engages  in  the  business  of
12    bookmaking.
13        (c)  A  person "operates a policy game" when he knowingly
14    uses any premises or property for the purpose of receiving or
15    knowingly does receive from what is commonly called "policy":
16             (1)  money from a person other than  the  better  or
17        player whose bets or plays are represented by such money;
18        or
19             (2)  written  "policy  game"  records,  made or used
20        over any period of time, from a  person  other  than  the
21        better  or  player whose bets or plays are represented by
22        such written record.
23        (d)  A person engages in bookmaking when he  receives  or
24    accepts  more than five bets or wagers upon the result of any
25    trials or contests of skill, speed or power of  endurance  or
26    upon  any  lot, chance, casualty, unknown or contingent event
27    whatsoever, which bets or wagers shall be of such  size  that
28    the total of the amounts of money paid or promised to be paid
29    to  such  bookmaker  on  account thereof shall exceed $2,000.
30    Bookmaking is the receiving or  accepting  of  such  bets  or
31    wagers  regardless  of  the  form  or  manner  in  which  the
32    bookmaker records them.
33        (e)  Participants  in  any  of  the  following activities
34    shall not be convicted of syndicated gambling:
 
                            -32-     LRB093 02210 LRD 16518 a
 1             (1)  Agreements to compensate for loss caused by the
 2        happening  of   chance   including   without   limitation
 3        contracts  of indemnity or guaranty and life or health or
 4        accident insurance; and
 5             (2)  Offers of prizes, award or compensation to  the
 6        actual  contestants  in  any  bona  fide  contest for the
 7        determination of skill, speed, strength or  endurance  or
 8        to  the  owners  of  animals  or vehicles entered in such
 9        contest; and
10             (3)  Pari-mutuel betting as  authorized  by  law  of
11        this State; and
12             (4)  Manufacture  of gambling devices, including the
13        acquisition of essential parts therefor and the  assembly
14        thereof,  for  transportation  in  interstate  or foreign
15        commerce to  any  place  outside  this  State  when  such
16        transportation   is  not  prohibited  by  any  applicable
17        Federal law; and
18             (5)  Raffles when conducted in accordance  with  the
19        Raffles Act; and
20             (6)  Gambling  games  conducted  on  riverboats when
21        authorized by the Riverboat Gambling Act; and.
22             (7)  Video  gaming  terminal  games  at  a  licensed
23        establishment,   licensed   truck   stop   establishment,
24        licensed fraternal establishment,  or  licensed  veterans
25        establishment when conducted in accordance with the Video
26        Gaming Act.
27        (f)  Sentence.  Syndicated gambling is a Class 3 felony.
28    (Source: P.A. 86-1029; 87-435.)

29        (720 ILCS 5/28-3) (from Ch. 38, par. 28-3)
30        Sec.  28-3.  Keeping a Gambling Place. A "gambling place"
31    is any real estate,  vehicle,  boat  or  any  other  property
32    whatsoever  used  for  the  purposes  of  gambling other than
33    gambling conducted in the manner authorized by the  Riverboat
 
                            -33-     LRB093 02210 LRD 16518 a
 1    Gambling  Act  or  the  Video  Gaming  Act.   Any  person who
 2    knowingly permits any premises or property owned or  occupied
 3    by  him  or  under his control to be used as a gambling place
 4    commits a Class A misdemeanor.  Each subsequent offense is  a
 5    Class  4  felony.   When  any  premises  is determined by the
 6    circuit court to be a gambling place:
 7        (a)  Such premises  is  a  public  nuisance  and  may  be
 8    proceeded against as such, and
 9        (b)  All  licenses, permits or certificates issued by the
10    State of Illinois or any subdivision or public agency thereof
11    authorizing the serving of food or liquor  on  such  premises
12    shall  be  void;  and  no  license,  permit or certificate so
13    cancelled shall be reissued for such premises for a period of
14    60 days thereafter; nor shall any person convicted of keeping
15    a gambling place be reissued such license for one  year  from
16    his  conviction  and,  after a second conviction of keeping a
17    gambling place, any such person shall not  be  reissued  such
18    license, and
19        (c)  Such  premises  of  any person who knowingly permits
20    thereon a violation of any Section of this Article  shall  be
21    held  liable  for,  and  may  be  sold to pay any unsatisfied
22    judgment that may be recovered and any unsatisfied fine  that
23    may be levied under any Section of this Article.
24    (Source: P.A. 86-1029.)

25        Section  195.  The State Finance Act is amended by adding
26    Section 5.595 as follows:

27        (30 ILCS 105/5.595 new)
28        Sec.   5.595.  The   Local   Government   Video    Gaming
29    Distributive Fund.

30        Section 999.  Effective date.  This Act takes effect upon
31    becoming law.".