093_HB0147ham001

 










                                     LRB093 02394 LRD 16691 a

 1                     AMENDMENT TO HOUSE BILL 147

 2        AMENDMENT NO.     .  Amend House Bill  147  by  replacing
 3    the title with the following:
 4        "AN ACT in relation to gambling."; and

 5    by  replacing  everything  after the enacting clause with the
 6    following:

 7        "Section 1.  Short title.  This Act may be cited  as  the
 8    Video Gaming Act.

 9        Section 5.  Definitions.  As used in this Act:
10        "Board" means the Illinois Gaming Board.
11        "Credit" means 5, 10, or 25 cents either won or purchased
12    by a player.
13        "Distributor"   means   an  individual,  partnership,  or
14    corporation licensed under this Act to buy, sell,  lease,  or
15    distribute  video  gaming  terminals  or  major components or
16    parts  of  video  gaming  terminals  to  or   from   terminal
17    operators.
18        "Terminal  operator"  means an individual, partnership or
19    corporation that is licensed under this Act  and  that  owns,
20    services,  and maintains video gaming terminals for placement
21    in    licensed     establishments,     licensed     fraternal
 
                            -2-      LRB093 02394 LRD 16691 a
 1    establishments, or licensed veterans establishments.
 2        "Licensed technician" means an individual who is licensed
 3    under  this Act to repair, service, and maintain video gaming
 4    terminals.
 5        "Manufacturer"  means  an  individual,  partnership,   or
 6    corporation   that  is  licensed  under  this  Act  and  that
 7    manufactures or assembles video gaming terminals.
 8        "Supplier"   means   an   individual,   partnership,   or
 9    corporation that is licensed under this Act to  supply  major
10    components  or  parts  to  video gaming terminals to licensed
11    terminal operators.
12        "Net terminal income" means money put into a video gaming
13    terminal minus credits paid out to players.
14        "Video gaming terminal" means any electronic  video  game
15    machine that, upon insertion of cash, is available to play or
16    simulate  the play of a video game, including but not limited
17    to video poker, line up, and  blackjack,  authorized  by  the
18    Board  utilizing a video display and microprocessors in which
19    the player may receive free games  or  credits  that  can  be
20    redeemed  for cash.  The term does not include a machine that
21    directly dispenses coins, cash, or tokens or is for amusement
22    purposes only.
23        "Licensed  establishment"  means  any   licensed   retail
24    establishment where alcoholic liquor is drawn, poured, mixed,
25    or otherwise served for consumption on the premises.
26        "Licensed  fraternal  establishment"  means  the location
27    where a qualified fraternal  organization  that  derives  its
28    charter  from  a  national  fraternal  organization regularly
29    meets.
30        "Licensed  veterans  establishment"  means  the  location
31    where a qualified  veterans  organization  that  derives  its
32    charter  from  a  national  veterans  organization  regularly
33    meets.
34        "Licensed truck stop establishment" means a facility that
 
                            -3-      LRB093 02394 LRD 16691 a
 1    is  at  least  a 3-acre facility with a convenience store and
 2    with separate diesel islands  for  fueling  commercial  motor
 3    vehicles  and parking spaces for commercial motor vehicles as
 4    defined in Section 18b-101 of the Illinois Vehicle Code.

 5        Section  15.  Minimum  requirements  for  licensing   and
 6    registration.   Every  video gaming terminal offered for play
 7    shall first be tested and approved pursuant to the  rules  of
 8    the  Board,  and  each  video gaming terminal offered in this
 9    State for play shall conform to an approved model.  The Board
10    may contract with  an  independent  outside  vendor  for  the
11    examination of video gaming machines and associated equipment
12    as required by this Section.  Each approved model shall, at a
13    minimum, meet the following criteria:
14             (1)  It  must conform to all requirements of federal
15        law and regulations,  including  FCC  Class  A  Emissions
16        Standards.
17             (2)  It  must theoretically pay out a mathematically
18        demonstrable percentage during the expected  lifetime  of
19        the machine of all amounts played, which must not be less
20        than 80%.  Video gaming terminals that may be affected by
21        skill must meet this standard when using a method of play
22        that  will provide the greatest return to the player over
23        a period of continuous play.
24             (3)  It must  use  a  random  selection  process  to
25        determine the outcome of each play of a game.  The random
26        selection process must meet 99% confidence limits using a
27        standard  chi-squared  test  for (randomness) goodness of
28        fit.
29             (4)  It must display an accurate  representation  of
30        the game outcome.
31             (5)  It  must  not automatically alter pay tables or
32        any function  of  the  video  gaming  terminal  based  on
33        internal computation of hold percentage or have any means
 
                            -4-      LRB093 02394 LRD 16691 a
 1        of manipulation that affects the random selection process
 2        or probabilities of winning a game.
 3             (6)  It  must  not  be  adversely affected by static
 4        discharge or other electromagnetic interference.
 5             (7)  It must be capable of detecting and  displaying
 6        the following conditions during idle states or on demand:
 7        power reset; door open; and door just closed.
 8             (8)  It  must  have the capacity to display complete
 9        play history (outcome, intermediate play  steps,  credits
10        available,  bets placed, credits paid, and credits cashed
11        out) for the most recent game played and 10  games  prior
12        thereto.
13             (9)  The  theoretical  payback percentage of a video
14        gaming terminal must not  be  capable  of  being  changed
15        without making a hardware or software change in the video
16        gaming terminal.
17             (10)  Video  gaming  terminals  must  be designed so
18        that replacement of parts or modules required for  normal
19        maintenance  does  not  necessitate  replacement  of  the
20        electromechanical meters.
21             (11)  It  must have nonresettable meters housed in a
22        locked area of the terminal that keep a permanent  record
23        of  all cash inserted into the machine, all winnings made
24        by the terminal printer,  credits  played  in  for  video
25        gaming   terminals,  and  credits  won  by  video  gaming
26        players.  The video  gaming  terminal  must  provide  the
27        means  for  on-demand  display  of  stored information as
28        determined by the Board.
29             (12)  Electronically   stored   meter    information
30        required  by this Section must be preserved for a minimum
31        of 180 days after a power loss to the service.
32             (13)  It must  have  one  or  more  mechanisms  that
33        accept   coins  or  cash  in  the  form  of  bills.   The
34        mechanisms shall be designed to prevent obtaining credits
 
                            -5-      LRB093 02394 LRD 16691 a
 1        without paying by stringing, slamming, drilling, or other
 2        means.
 3             (14)  It shall have accounting software  that  keeps
 4        an  electronic  record which includes, but is not limited
 5        to, the following: total cash  inserted  into  the  video
 6        gaming  terminal; the value of winning tickets claimed by
 7        players; the total credits played; and the total  credits
 8        awarded by a video gaming terminal.
 9             (15)  It shall be linked by a central communications
10        system   to   provide  auditing  program  information  as
11        approved by the Board. In no event may the communications
12        system approved by the Board limit participation to  only
13        one  manufacturer of video gaming terminals by either the
14        cost in implementing the necessary program  modifications
15        to  communicate  or the inability to communicate with the
16        central communications system.
17             (16)  It shall be  able  to  receive  and  broadcast
18        amber alert messages.

19        Section  20.  Direct  dispensing of receipt tickets only.
20    A video gaming terminal  may  not  directly  dispense  coins,
21    cash,  tokens,  or  any  other  article  of exchange or value
22    except for receipt tickets.  Tickets shall  be  dispensed  by
23    pressing  the  ticket  dispensing  button on the video gaming
24    terminal at the end of one's turn or play.  The ticket  shall
25    indicate  the total amount of credits and the cash award, the
26    time of day in a 24-hour format showing  hours  and  minutes,
27    the  date,  the terminal serial number, the sequential number
28    of the ticket, and an encrypted validation number from  which
29    the validity of the prize may be determined. The player shall
30    turn in this ticket to the appropriate person at the licensed
31    establishment,  licensed  truck  stop establishment, licensed
32    fraternal establishment, or licensed  veterans  establishment
33    to receive the cash award.  The cost of the credit shall be 5
 
                            -6-      LRB093 02394 LRD 16691 a
 1    cents,  10  cents,  or 25 cents, and the maximum wager played
 2    per hand shall not exceed $2. No cash award for  the  maximum
 3    wager on any individual hand shall exceed $500.

 4        Section 25.  Restriction of licensees.
 5        (a)  Manufacturer.   A  person  may  not be licensed as a
 6    manufacturer of a video gaming terminal  in  Illinois  unless
 7    the  person  has  a valid manufacturer's license issued under
 8    this  Act.   A  manufacturer  may  only  sell  video   gaming
 9    terminals  for  use  in  Illinois  to  persons having a valid
10    distributor's license.
11        (b)  Distributor.   A  person  may  not  sell,   service,
12    distribute,  or  lease  or  market a video gaming terminal in
13    Illinois unless the person has a valid distributor's  license
14    issued  under  this  Act.   A distributor may only sell video
15    gaming terminals for use in  Illinois  to  persons  having  a
16    valid distributor's or terminal operator's license.
17        (c)  Terminal  operator.   A person may not own, service,
18    maintain, lease, or place a video gaming terminal  unless  he
19    has  a  valid  terminal  operator's license issued under this
20    Act.   A  terminal  operator  may  only  place  video  gaming
21    terminals for use in  Illinois  in  licensed  establishments,
22    licensed   truck   stop  establishments,  licensed  fraternal
23    establishments,  and  licensed  veterans  establishments.  No
24    terminal operator may give anything of value,  including  but
25    not limited to a loan or financing arrangement, to a licensed
26    establishment,  licensed  truck  stop establishment, licensed
27    fraternal establishment, or licensed  veterans  establishment
28    as  any  incentive or inducement to locate video terminals in
29    that establishment.  Of the after-tax profits  from  a  video
30    gaming  terminal,  50% shall be paid to the terminal operator
31    and 50% shall be paid to the licensed establishment, licensed
32    truck stop establishment, licensed  fraternal  establishment,
33    or licensed veterans establishment. A terminal operator shall
 
                            -7-      LRB093 02394 LRD 16691 a
 1    be  entitled  to  access  all  information  recorded  by  the
 2    operator's  machines  pursuant to item (17) of Section 15. No
 3    terminal operator may own or have a substantial  interest  in
 4    more  than  5% of the video gaming terminals licensed in this
 5    State.
 6        (d)  Licensed  technician.  A  person  may  not  service,
 7    maintain, or repair a video gaming  terminal  in  this  State
 8    unless  he or she (1) has a valid technician's license issued
 9    under this Act,  (2)  is  a  terminal  operator,  or  (3)  is
10    employed    by   a   terminal   operator,   distributor,   or
11    manufacturer.
12        (e)  Licensed  establishment.   A  valid  liquor  license
13    shall  be  prima  facie  evidence  of  compliance  with   the
14    licensing  requirements  of  this Act to operate video gaming
15    terminals. No video gaming terminal  may  be  placed  in  any
16    licensed   veterans   establishment   or  licensed  fraternal
17    establishment unless the owner or agent of the owner  of  the
18    licensed   veterans   establishment   or  licensed  fraternal
19    establishment has entered into a written use  agreement  with
20    the terminal operator for placement of the terminals.  A copy
21    of  the  use  agreement  shall  be  on  file  in the terminal
22    operator's place of business and available for inspection  by
23    individuals    authorized   by   the   Board.    A   licensed
24    establishment may operate up to 3 video gaming  terminals  on
25    its  premises  at  any  time,  unless  the Board authorizes a
26    greater number. A licensed truck stop establishment, licensed
27    veterans establishment, or licensed  fraternal  establishment
28    may operate up to 5 video gaming terminals on its premises at
29    any time, unless the Board authorizes a greater number.
30        (f)  Residency  requirement.   Each  licensed distributor
31    and terminal operator must be an Illinois resident.  However,
32    if an out of  state  distributor  or  terminal  operator  has
33    performed  its  respective  business  within  Illinois for at
34    least 48 months prior to the effective date of this Act,  the
 
                            -8-      LRB093 02394 LRD 16691 a
 1    out  of state person may be eligible for licensing under this
 2    Act, upon application to and approval of the Board.
 3        (g)  Financial interest restrictions.  As  used  in  this
 4    Act,  "substantial interest" in an organization, association,
 5    or business means:
 6                  (A)  When,   with    respect    to    a    sole
 7             proprietorship,  an individual or his or her marital
 8             community  owns,  operates,  manages,  or  conducts,
 9             directly   or    indirectly,    the    organization,
10             association, or business, or any part thereof; or
11                  (B)  When,  with  respect to a partnership, the
12             individual or his or her marital community shares in
13             any of the profits, or  potential  profits,  of  the
14             partnership activities; or
15                  (C)  When,  with  respect  to a corporation, an
16             individual or his or her spouse  is  an  officer  or
17             director,  or  the  individual or his or her marital
18             community is a holder, directly or beneficially,  of
19             5% or more of any class of stock of the corporation;
20             or
21                  (D)  When,  with respect to an organization not
22             covered in (A), (B) or (C) above, an  individual  or
23             his  or  her  spouse  is  an  officer or manages the
24             business affairs, or the individual or  his  or  her
25             marital  community  is  the  owner  of  or otherwise
26             controls  10%  or  more  of  the   assets   of   the
27             organization; or
28                  (E)  When  an  individual or his or her marital
29             community furnishes  5%  or  more  of  the  capital,
30             whether   in  cash,  goods,  or  services,  for  the
31             operation   of   any   business,   association,   or
32             organization during any calendar year.
33        (h)  Location  restriction.   A  licensed  establishment,
34    licensed  truck  stop   establishment,   licensed   fraternal
 
                            -9-      LRB093 02394 LRD 16691 a
 1    establishment,  or  licensed  veterans  establishment that is
 2    located within 500 feet of a race track  licensed  under  the
 3    Illinois Horse Racing Act of 1975 or within 1,000 feet of the
 4    home  dock  of  a  riverboat  licensed  under  the  Riverboat
 5    Gambling  Act  is  ineligible   to  operate  a  video  gaming
 6    terminal.

 7        Section  27.  Prohibition  of  video  gaming by political
 8    subdivision.   A   municipality   may   pass   an   ordinance
 9    prohibiting  video  gaming within the corporate limits of the
10    municipality. A county board may, for the unincorporated area
11    of the county, pass an  ordinance  prohibiting  video  gaming
12    within the unincorporated area of the county.

13        Section  30.  Multiple  types  of licenses prohibited.  A
14    video gaming terminal manufacturer may not be licensed  as  a
15    video  gaming  terminal  distributor  or   operator  or  own,
16    manage,  or  control a licensed establishment, licensed truck
17    stop  establishment,  licensed  fraternal  establishment,  or
18    licensed veterans establishment, and shall be  licensed  only
19    to sell to distributors.  A video gaming terminal distributor
20    may  not  be licensed as a video gaming terminal manufacturer
21    or  operator  or  own,  manage,   or   control   a   licensed
22    establishment,  licensed  truck  stop establishment, licensed
23    fraternal establishment, or licensed veterans  establishment,
24    and  shall only contract with a licensed terminal operator. A
25    video gaming terminal operator may not be licensed as a video
26    gaming terminal manufacturer or distributor or  own,  manage,
27    or  control  a  licensed  establishment,  licensed truck stop
28    establishment, licensed fraternal establishment, or  licensed
29    veterans   establishment,  and  shall  be  licensed  only  to
30    contract   with   licensed    distributors    and    licensed
31    establishments,  licensed truck stop establishments, licensed
32    fraternal    establishments,    and     licensed     veterans
 
                            -10-     LRB093 02394 LRD 16691 a
 1    establishments.   An   owner   or   manager   of  a  licensed
 2    establishment, licensed truck  stop  establishment,  licensed
 3    fraternal  establishment,  or licensed veterans establishment
 4    may not be licensed as a video gaming terminal  manufacturer,
 5    distributor,  or  operator,  and  shall  only contract with a
 6    licensed operator to place and service this equipment.

 7        Section 35.  Display of license; confiscation;  violation
 8    as  felony.   Each video gaming terminal shall be licensed by
 9    the Board before placement or operation on the premises of  a
10    licensed  establishment,  licensed  truck stop establishment,
11    licensed  fraternal  establishment,  or   licensed   veterans
12    establishment.   The  license  of  each video gaming terminal
13    shall be maintained at the location where  the  video  gaming
14    terminal  is  operated.   Failure to do so is a petty offense
15    with a fine not to exceed $100. Any  licensed  establishment,
16    licensed   truck   stop   establishment,  licensed  fraternal
17    establishment, or licensed veterans  establishment  used  for
18    the  conduct of gambling games in violation of this Act shall
19    be considered a gambling place in violation of  Section  28-3
20    of the Criminal Code of 1961.  Every gambling device found in
21    a  licensed establishment, licensed truck stop establishment,
22    licensed  fraternal  establishment,  or   licensed   veterans
23    establishment  operating  gambling games in violation of this
24    Act  shall  be  subject   to   seizure,   confiscation,   and
25    destruction  as provided in Section 28-5 of the Criminal Code
26    of 1961. Any license issued under the Liquor Control  Act  of
27    1934  to  any  owner or operator of a licensed establishment,
28    licensed  truck  stop   establishment,   licensed   fraternal
29    establishment,   or   licensed  veterans  establishment  that
30    operates or permits the operation of a video gaming  terminal
31    within  its  establishment  in violation of this Act shall be
32    immediately revoked. No person may own, operate, have in  his
33    or  her possession or custody or under his or her control, or
 
                            -11-     LRB093 02394 LRD 16691 a
 1    permit to be kept in any place under his or her possession or
 2    control, any  device  that  awards  credits  and  contains  a
 3    circuit,  meter,  or switch capable of removing and recording
 4    the removal of credits when the award of credits is dependent
 5    upon chance.  A violation  of  this  Section  is  a  Class  4
 6    felony.   All  devices that are owned, operated, or possessed
 7    in violation of this Section are hereby declared to be public
 8    nuisances and shall be subject to seizure, confiscation,  and
 9    destruction  as provided in Section 28-5 of the Criminal Code
10    of 1961. The provisions of  this  Section  do  not  apply  to
11    devices  or electronic video game terminals licensed pursuant
12    to this Act.

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

20        Section 45.  Issuance of license.
21        (a)  The burden is upon each applicant to demonstrate his
22    suitability  for  licensure.   Each  video  gaming   terminal
23    manufacturer,  distributor, operator, licensed establishment,
24    licensed  truck  stop   establishment,   licensed   fraternal
25    establishment,  and  licensed veterans establishment shall be
26    licensed by the Board. The Board  may  not  issue  a  license
27    under this Act to any person who, within 10 years of the date
28    of  the application, has been convicted of a felony under the
29    laws of this State, any other state, or the United States, or
30    to any firm or corporation in  which  such  a  person  is  an
31    officer, director, or managerial employee.
32        (b)  A  non-refundable  application  fee shall be paid at
 
                            -12-     LRB093 02394 LRD 16691 a
 1    the time an application for a license is filed with the Board
 2    in the following amounts:
 3             (1)  Manufacturer..........................  $ 5,000
 4             (2)  Distributor...........................  $ 5,000
 5             (3)  Terminal operator.....................  $ 5,000
 6             (4)  Supplier..............................  $ 2,500
 7             (5)  Technician............................  $   100
 8        (c)  Any application  not  approved  within  90  days  of
 9    receipt by the Board shall be deemed approved.
10        (d)  Each  licensed  distributor,  terminal  operator, or
11    person with  a  substantial  interest  in  a  distributor  or
12    terminal  operator must have resided in Illinois for at least
13    24 months prior to application unless he or she has performed
14    his or her respective business in Illinois for  at  least  48
15    months prior to the effective date of this Act.
16        The  Board shall establish an annual fee for each license
17    not to exceed the following:
18             (1)  Manufacturer..........................  $10,000
19             (2)  Distributor...........................  $10,000
20             (3)  Terminal operator.....................  $ 5,000
21             (4)  Supplier..............................  $ 2,000
22             (5)  Technician............................  $   100
23             (6)  Licensed establishment, licensed truck
24        stop    establishment,    licensed     fraternal
25        establishment,      or     licensed     veterans
26        establishment...................................  $   100
27             (7)  Video gaming terminal.................  $   100

28        Section 50. Distribution of license fees.
29        (a)  All  fees  collected  under  Section  45  shall   be
30    deposited in the General Revenue Fund.
31        (b)  Fees  collected  under  Section  45 shall be used as
32    follows:
33             (1)  Twenty-five percent shall be paid  to  programs
 
                            -13-     LRB093 02394 LRD 16691 a
 1        for the treatment of compulsive gambling.
 2             (2)  Seventy-five  percent  shall  be  used  for the
 3        administration of this Act.
 4        (c)  All licenses issued by the Board under this Act  are
 5    renewable  annually unless sooner cancelled or terminated. No
 6    license issued under this Act is transferable or assignable.

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

16        Section   57.  Insurance.  Each  licensed  establishment,
17    licensed  truck  stop   establishment,   licensed   fraternal
18    establishment,  and  licensed  veterans  establishment  shall
19    maintain insurance on any gaming device on its premises in an
20    amount set by the Board.

21        Section   58.  Location   of   terminals.   Video  gaming
22    terminals must be located in an area that is within the  view
23    of  at  least one employee of the establishment in which they
24    are located.

25        Section 60.  Imposition and distribution of tax.
26        (a)  A tax of 25% is imposed on net terminal  income  and
27    shall be collected by the Board.
28        (b)  Of  the  tax collected under this Section, 80% shall
29    be deposited in the  State  Gaming  Fund  and  20%  shall  be
30    deposited into the Local Government Video Gaming Distributive
 
                            -14-     LRB093 02394 LRD 16691 a
 1    Fund.
 2        (c)  Revenues  generated  from  the  play of video gaming
 3    terminals shall be deposited by the terminal operator, who is
 4    responsible  for  tax  payments,  in  a  specially   created,
 5    separate bank account maintained by the video gaming terminal
 6    operator to allow for electronic fund transfers of moneys for
 7    tax payment.
 8        (d)  Each  licensed  establishment,  licensed  truck stop
 9    establishment, licensed fraternal establishment, and licensed
10    veterans  establishment  shall  maintain  an  adequate  video
11    gaming fund, with the amount to be determined by the Board.

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

15        Section 70. Referendum. Upon the filing in the office  of
16    the  clerk,  at  least  90  days  before  an  election in any
17    municipality or county, as the case may  be,  of  a  petition
18    directed to such clerk, containing the signatures of not less
19    than  25% of the legal voters of that municipality or county,
20    the clerk  shall  certify  such  proposition  to  the  proper
21    election  officials, who shall submit the proposition at such
22    election to the voters of such municipality  or  county.  The
23    proposition shall be in the following form:
24    -------------------------------------------------------------
25    Shall video gaming                      YES
26    be prohibited in                       ----------------------
27    .................?                      NO
28    -------------------------------------------------------------
29    If  a  majority of the voters voting upon such last mentioned
30    proposition in any municipality or county  vote  "YES",  such
31    video  gaming  shall  be  prohibited  in such municipality or
32    county. The petition mentioned in this  Section  shall  be  a
 
                            -15-     LRB093 02394 LRD 16691 a
 1    public  document  and  shall  be subject to inspection by the
 2    public.

 3        Section  75.  Revenue  sharing;  Local  Government  Video
 4    Gaming Distributive Fund.
 5        (a)  Beginning July 1, 2003, as soon as may be after  the
 6    first  day  of  each  month,  the Department of Revenue shall
 7    certify to the Treasurer an amount equal to 25%  of  the  net
 8    revenue  realized  from  the tax imposed by Section 60 during
 9    the preceding month. Net revenue realized for a  month  shall
10    be  defined as the revenue from the tax imposed by Section 60
11    during the month. Upon receipt  of  such  certification,  the
12    Treasurer  shall  transfer from the General Revenue Fund to a
13    special fund in the State treasury, to be known as the  Local
14    Government  Video  Gaming Distributive Fund, the amount shown
15    on such certification.
16        All amounts paid into the Local Government  Video  Gaming
17    Distributive  Fund  and  allocated  in  accordance  with this
18    Section are appropriated on a continuing basis.
19        (b)  As soon as may be after the first day of each month,
20    the  Department  of  Revenue  shall  allocate   among   those
21    municipalities  and  counties  of  this  State  that have not
22    prohibited video gaming pursuant to  Section  27  the  amount
23    available  in  the Local Government Video Gaming Distributive
24    Fund, as provided in Section 60. The  Department  shall  then
25    certify  such allocations to the State Comptroller, who shall
26    pay over to those eligible municipalities  and  counties  the
27    respective  amounts  allocated  to  them.  The amount of such
28    funds allocable to each such municipality and county shall be
29    in proportion to the number of individual residents  of  such
30    municipality  or  county  to  the  total  population of those
31    eligible municipalities and counties determined in each  case
32    on  the  basis  of  the  latest census of the municipality or
33    county conducted by the federal government and  certified  by
 
                            -16-     LRB093 02394 LRD 16691 a
 1    the Secretary of State and for annexations to municipalities,
 2    the latest federal, State, or municipal census of the annexed
 3    area  which  has been certified by the Department of Revenue.
 4    For the purpose of this Section,  the  number  of  individual
 5    residents  of  a  county  shall  be  reduced by the number of
 6    individuals  residing  therein  in  municipalities,  but  the
 7    number of individual  residents  of  the  municipality  shall
 8    reflect the latest census of the municipality.
 9        (c)  The  amounts allocated and paid to a municipality or
10    county of this State  pursuant  to  the  provisions  of  this
11    Section  may  be  used  for  any  general  corporate  purpose
12    authorized for that municipality or county.
13        (d)  Upon  determination by the Department that an amount
14    has been paid pursuant to  this  Section  in  excess  of  the
15    amount  to  which  the  county or municipality receiving such
16    payment was entitled, the county or municipality shall,  upon
17    demand   by  the  Department,  repay  such  amount.  If  such
18    repayment  is  not  made  within  a  reasonable   time,   the
19    Department  shall  withhold  from  future  payments an amount
20    equal to such overpayment. The Department shall  redistribute
21    the  amount  of  such  payment  to the county or municipality
22    entitled thereto.

23        Section 185.  The Riverboat Gambling Act  is  amended  by
24    changing Section 5 as follows:

25        (230 ILCS 10/5) (from Ch. 120, par. 2405)
26        Sec. 5.  Gaming Board.
27        (a) (1)  There   is   hereby   established   within   the
28    Department  of  Revenue  an Illinois Gaming Board which shall
29    have the powers and duties specified in  this  Act,  and  all
30    other  powers  necessary  and proper to fully and effectively
31    execute  this  Act  for   the   purpose   of   administering,
32    regulating,  and  enforcing  the system of riverboat gambling
 
                            -17-     LRB093 02394 LRD 16691 a
 1    established by this Act. Its jurisdiction shall extend  under
 2    this   Act   to   every   person,  association,  corporation,
 3    partnership  and  trust  involved   in   riverboat   gambling
 4    operations in the State of Illinois.
 5        (2)  The Board shall consist of 5 members to be appointed
 6    by  the  Governor  with the advice and consent of the Senate,
 7    one of whom  shall  be  designated  by  the  Governor  to  be
 8    chairman.   Each  member shall have a reasonable knowledge of
 9    the  practice,   procedure   and   principles   of   gambling
10    operations.  Each  member  shall  either  be  a  resident  of
11    Illinois  or  shall certify that he will become a resident of
12    Illinois before taking office. At least one member  shall  be
13    experienced in law enforcement and criminal investigation, at
14    least  one  member  shall  be  a  certified public accountant
15    experienced in accounting and  auditing,  and  at  least  one
16    member  shall  be  a  lawyer  licensed  to  practice  law  in
17    Illinois.
18        (3)  The  terms of office of the Board members shall be 3
19    years, except that the terms of office of the  initial  Board
20    members appointed pursuant to this Act will commence from the
21    effective  date  of  this  Act and run as follows:  one for a
22    term ending July 1, 1991, 2 for a term ending July  1,  1992,
23    and 2 for a term ending July 1, 1993.  Upon the expiration of
24    the  foregoing  terms,  the  successors of such members shall
25    serve a term for 3  years  and  until  their  successors  are
26    appointed  and  qualified  for  like  terms. Vacancies in the
27    Board shall be filled for the unexpired term in  like  manner
28    as  original appointments.  Each member of the Board shall be
29    eligible for reappointment at the discretion of the  Governor
30    with the advice and consent of the Senate.
31        (4)  Each member of the Board shall receive $300 for each
32    day  the Board meets and for each day the member conducts any
33    hearing pursuant to this Act.  Each member of the Board shall
34    also be reimbursed for all actual and necessary expenses  and
 
                            -18-     LRB093 02394 LRD 16691 a
 1    disbursements incurred in the execution of official duties.
 2        (5)  No  person  shall be appointed a member of the Board
 3    or continue to be a member of the  Board  who  is,  or  whose
 4    spouse,  child  or  parent  is,  a  member  of  the  board of
 5    directors of, or a  person  financially  interested  in,  any
 6    gambling operation subject to the jurisdiction of this Board,
 7    or  any  race  track, race meeting, racing association or the
 8    operations  thereof  subject  to  the  jurisdiction  of   the
 9    Illinois  Racing Board.  No Board member shall hold any other
10    public office for which he shall receive  compensation  other
11    than  necessary  travel  or  other  incidental  expenses.  No
12    person shall be a member of the Board  who  is  not  of  good
13    moral  character  or  who  has been convicted of, or is under
14    indictment for, a felony under the laws of  Illinois  or  any
15    other state, or the United States.
16        (6)  Any  member  of  the  Board  may  be  removed by the
17    Governor for neglect of duty,  misfeasance,  malfeasance,  or
18    nonfeasance in office.
19        (7)  Before  entering upon the discharge of the duties of
20    his office, each member of the Board shall take an oath  that
21    he will faithfully execute the duties of his office according
22    to  the  laws  of  the  State  and  the rules and regulations
23    adopted therewith  and  shall  give  bond  to  the  State  of
24    Illinois,  approved  by  the Governor, in the sum of $25,000.
25    Every such bond, when duly executed and  approved,  shall  be
26    recorded  in  the office of the Secretary of State.  Whenever
27    the Governor determines that the bond of any  member  of  the
28    Board   has   become  or  is  likely  to  become  invalid  or
29    insufficient, he shall require such member forthwith to renew
30    his bond, which is to  be  approved  by  the  Governor.   Any
31    member  of  the  Board  who  fails to take oath and give bond
32    within 30 days from the date of his appointment, or who fails
33    to renew his bond within 30 days after it is demanded by  the
34    Governor,  shall  be  guilty  of  neglect  of duty and may be
 
                            -19-     LRB093 02394 LRD 16691 a
 1    removed by the Governor.  The cost of any bond given  by  any
 2    member of the Board under this Section shall be taken to be a
 3    part of the necessary expenses of the Board.
 4        (8)  Upon  the request of the Board, the Department shall
 5    employ such personnel as may be necessary to  carry  out  the
 6    functions of the Board.  No person shall be employed to serve
 7    the  Board  who  is,  or whose spouse, parent or child is, an
 8    official of, or has a  financial  interest  in  or  financial
 9    relation  with,  any  operator engaged in gambling operations
10    within this State or any organization engaged  in  conducting
11    horse racing within this State.  Any employee violating these
12    prohibitions shall be subject to termination of employment.
13        (9)  An  Administrator  shall  perform any and all duties
14    that  the  Board  shall  assign  him.   The  salary  of   the
15    Administrator  shall  be determined by the Board and approved
16    by the Director of the Department and, in addition, he  shall
17    be  reimbursed for all actual and necessary expenses incurred
18    by  him  in  discharge   of   his   official   duties.    The
19    Administrator  shall  keep  records of all proceedings of the
20    Board and shall preserve all records,  books,  documents  and
21    other papers belonging to the Board or entrusted to its care.
22    The Administrator shall devote his full time to the duties of
23    the office and shall not hold any other office or employment.
24        (b)  The  Board shall have general responsibility for the
25    implementation of this  Act.   Its  duties  include,  without
26    limitation, the following:
27             (1)  To  decide promptly and in reasonable order all
28        license applications. Any party aggrieved by an action of
29        the Board denying, suspending, revoking,  restricting  or
30        refusing  to renew a license may request a hearing before
31        the Board.  A request for a hearing must be made  to  the
32        Board in writing within 5 days after service of notice of
33        the  action  of  the  Board.  Notice of the action of the
34        Board shall be served either by personal delivery  or  by
 
                            -20-     LRB093 02394 LRD 16691 a
 1        certified mail, postage prepaid, to the aggrieved party.
 2        Notice  served by certified mail shall be deemed complete
 3        on the business day following the date of  such  mailing.
 4        The  Board  shall conduct all requested hearings promptly
 5        and in reasonable order;
 6             (2)  To conduct all  hearings  pertaining  to  civil
 7        violations   of   this   Act  or  rules  and  regulations
 8        promulgated hereunder;
 9             (3)  To promulgate such rules and regulations as  in
10        its  judgment  may be necessary to protect or enhance the
11        credibility  and   integrity   of   gambling   operations
12        authorized   by  this  Act  and  the  regulatory  process
13        hereunder;
14             (4)  To provide for the establishment and collection
15        of all license and registration fees and taxes imposed by
16        this Act and the rules and  regulations  issued  pursuant
17        hereto.   All such fees and taxes shall be deposited into
18        the State Gaming Fund;
19             (5)  To provide  for  the  levy  and  collection  of
20        penalties  and  fines  for the violation of provisions of
21        this  Act  and  the  rules  and  regulations  promulgated
22        hereunder.   All  such  fines  and  penalties  shall   be
23        deposited  into the Education Assistance Fund, created by
24        Public Act 86-0018, of the State of Illinois;
25             (6)  To be present through its inspectors and agents
26        any  time  gambling  operations  are  conducted  on   any
27        riverboat  for  the  purpose  of  certifying  the revenue
28        thereof,  receiving  complaints  from  the  public,   and
29        conducting  such other investigations into the conduct of
30        the gambling games and the maintenance of  the  equipment
31        as  from  time  to  time the Board may deem necessary and
32        proper;
33             (7)  To review and rule  upon  any  complaint  by  a
34        licensee  regarding  any  investigative procedures of the
 
                            -21-     LRB093 02394 LRD 16691 a
 1        State which  are  unnecessarily  disruptive  of  gambling
 2        operations.  The need to inspect and investigate shall be
 3        presumed  at  all  times.  The disruption of a licensee's
 4        operations  shall  be  proved  by  clear  and  convincing
 5        evidence, and establish that:  (A) the procedures had  no
 6        reasonable   law   enforcement   purposes,  and  (B)  the
 7        procedures were so disruptive as to unreasonably  inhibit
 8        gambling operations;
 9             (8)  To  hold  at  least one meeting each quarter of
10        the fiscal year.  In addition, special  meetings  may  be
11        called  by  the  Chairman  or any 2 Board members upon 72
12        hours written notice to each member.  All Board  meetings
13        shall  be subject to the Open Meetings Act. Three members
14        of the Board shall constitute a quorum, and 3 votes shall
15        be required for any final  determination  by  the  Board.
16        The  Board  shall  keep a complete and accurate record of
17        all its meetings. A majority of the members of the  Board
18        shall  constitute  a  quorum  for  the transaction of any
19        business, for the performance of any  duty,  or  for  the
20        exercise  of  any power which this Act requires the Board
21        members to transact, perform or exercise en banc,  except
22        that,  upon  order of the Board, one of the Board members
23        or an administrative law judge designated  by  the  Board
24        may conduct any hearing provided for under this Act or by
25        Board  rule  and  may recommend findings and decisions to
26        the Board.  The Board member or administrative law  judge
27        conducting  such hearing shall have all powers and rights
28        granted to the Board in this Act. The record made at  the
29        time  of the hearing shall be reviewed by the Board, or a
30        majority thereof, and the findings and  decision  of  the
31        majority  of  the Board shall constitute the order of the
32        Board in such case;
33             (9)  To maintain  records  which  are  separate  and
34        distinct  from  the  records  of any other State board or
 
                            -22-     LRB093 02394 LRD 16691 a
 1        commission.  Such records shall be available  for  public
 2        inspection   and   shall  accurately  reflect  all  Board
 3        proceedings;
 4             (10)  To file  a  written  annual  report  with  the
 5        Governor  on  or  before  March  1  each  year  and  such
 6        additional  reports  as  the  Governor  may  request. The
 7        annual report shall include a statement of  receipts  and
 8        disbursements  by  the Board, actions taken by the Board,
 9        and any additional information and recommendations  which
10        the  Board  may  deem  valuable or which the Governor may
11        request;
12             (11)  (Blank); and
13             (12)  To    assume    responsibility     for     the
14        administration  and  enforcement of the Bingo License and
15        Tax Act, the Charitable Games Act, and the Pull Tabs  and
16        Jar  Games  Act if such responsibility is delegated to it
17        by the Director of Revenue; and.
18             (13)  To assume  responsibility  for  administration
19        and enforcement of the Video Gaming Act.
20        (c)  The  Board  shall  have  jurisdiction over and shall
21    supervise all gambling operations governed by this Act.   The
22    Board shall have all powers necessary and proper to fully and
23    effectively  execute  the  provisions of this Act, including,
24    but not limited to, the following:
25             (1)  To investigate  applicants  and  determine  the
26        eligibility  of  applicants  for  licenses  and to select
27        among competing  applicants  the  applicants  which  best
28        serve the interests of the citizens of Illinois.
29             (2)  To  have  jurisdiction and supervision over all
30        riverboat gambling  operations  in  this  State  and  all
31        persons  on  riverboats  where  gambling  operations  are
32        conducted.
33             (3)  To  promulgate  rules  and  regulations for the
34        purpose of administering the provisions of this  Act  and
 
                            -23-     LRB093 02394 LRD 16691 a
 1        to  prescribe  rules,  regulations  and  conditions under
 2        which all  riverboat  gambling  in  the  State  shall  be
 3        conducted.  Such rules and regulations are to provide for
 4        the  prevention  of  practices  detrimental to the public
 5        interest  and  for  the  best  interests   of   riverboat
 6        gambling,  including  rules and regulations regarding the
 7        inspection of such  riverboats  and  the  review  of  any
 8        permits  or  licenses  necessary  to  operate a riverboat
 9        under any laws or regulations applicable  to  riverboats,
10        and to impose penalties for violations thereof.
11             (4)  To enter the office, riverboats, facilities, or
12        other places of business of a licensee, where evidence of
13        the  compliance  or  noncompliance with the provisions of
14        this Act is likely to be found.
15             (5)  To investigate alleged violations of  this  Act
16        or  the  rules  of  the  Board  and  to  take appropriate
17        disciplinary action against a licensee or a holder of  an
18        occupational   license  for  a  violation,  or  institute
19        appropriate legal action for enforcement, or both.
20             (6)  To adopt standards for  the  licensing  of  all
21        persons  under  this  Act,  as  well as for electronic or
22        mechanical gambling games, and to establish fees for such
23        licenses.
24             (7)  To  adopt   appropriate   standards   for   all
25        riverboats and facilities.
26             (8)  To   require   that   the   records,  including
27        financial or other statements of any licensee under  this
28        Act,  shall  be  kept in such manner as prescribed by the
29        Board  and  that  any  such  licensee  involved  in   the
30        ownership  or management of gambling operations submit to
31        the Board an annual balance sheet  and  profit  and  loss
32        statement,  list  of  the  stockholders  or other persons
33        having  a  1%  or  greater  beneficial  interest  in  the
34        gambling activities of  each  licensee,   and  any  other
 
                            -24-     LRB093 02394 LRD 16691 a
 1        information   the  Board  deems  necessary  in  order  to
 2        effectively  administer   this   Act   and   all   rules,
 3        regulations, orders and final decisions promulgated under
 4        this Act.
 5             (9)  To  conduct  hearings,  issue subpoenas for the
 6        attendance of witnesses and subpoenas duces tecum for the
 7        production  of  books,  records   and   other   pertinent
 8        documents  in accordance with the Illinois Administrative
 9        Procedure Act, and to administer oaths  and  affirmations
10        to  the witnesses, when, in the judgment of the Board, it
11        is necessary to administer or enforce  this  Act  or  the
12        Board rules.
13             (10)  To prescribe a form to be used by any licensee
14        involved  in  the  ownership  or  management  of gambling
15        operations as an application  for  employment  for  their
16        employees.
17             (11)  To  revoke  or  suspend licenses, as the Board
18        may see fit and in compliance with applicable laws of the
19        State regarding administrative procedures, and to  review
20        applications  for the renewal of licenses.  The Board may
21        suspend an owners license, without notice or hearing upon
22        a determination that the safety or health of  patrons  or
23        employees  is  jeopardized  by  continuing  a riverboat's
24        operation.  The suspension may remain in effect until the
25        Board determines that the cause for suspension  has  been
26        abated.   The  Board may revoke the owners license upon a
27        determination that the owner has  not  made  satisfactory
28        progress toward abating the hazard.
29             (12)  To  eject or exclude or authorize the ejection
30        or exclusion  of,  any  person  from  riverboat  gambling
31        facilities where such person is in violation of this Act,
32        rules  and regulations thereunder, or final orders of the
33        Board, or where such person's conduct  or  reputation  is
34        such  that  his  presence  within  the riverboat gambling
 
                            -25-     LRB093 02394 LRD 16691 a
 1        facilities may, in the opinion of the  Board,  call  into
 2        question  the  honesty  and  integrity  of  the  gambling
 3        operations  or  interfere  with  orderly conduct thereof;
 4        provided that the propriety of such ejection or exclusion
 5        is subject to subsequent hearing by the Board.
 6             (13)  To   require   all   licensees   of   gambling
 7        operations to utilize a cashless wagering system  whereby
 8        all  players'  money  is  converted to tokens, electronic
 9        cards, or chips which shall be used only for wagering  in
10        the gambling establishment.
11             (14)  (Blank).
12             (15)  To  suspend,  revoke  or restrict licenses, to
13        require the removal of a licensee or  an  employee  of  a
14        licensee  for  a violation of this Act or a Board rule or
15        for engaging in a  fraudulent  practice,  and  to  impose
16        civil  penalties  of up to $5,000 against individuals and
17        up to $10,000 or an  amount  equal  to  the  daily  gross
18        receipts, whichever is larger, against licensees for each
19        violation  of any provision of the Act, any rules adopted
20        by the Board, any order of the Board or any other  action
21        which,  in  the  Board's  discretion,  is  a detriment or
22        impediment to riverboat gambling operations.
23             (16)  To  hire  employees  to  gather   information,
24        conduct  investigations  and  carry  out  any other tasks
25        contemplated under this Act.
26             (17)  To establish minimum levels of insurance to be
27        maintained by licensees.
28             (18)  To authorize  a  licensee  to  sell  or  serve
29        alcoholic  liquors, wine or beer as defined in the Liquor
30        Control Act of 1934 on board  a  riverboat  and  to  have
31        exclusive  authority  to establish the hours for sale and
32        consumption of alcoholic liquor  on  board  a  riverboat,
33        notwithstanding  any  provision of the Liquor Control Act
34        of 1934 or any local ordinance, and regardless of whether
 
                            -26-     LRB093 02394 LRD 16691 a
 1        the riverboat makes excursions.  The establishment of the
 2        hours for sale and consumption  of  alcoholic  liquor  on
 3        board  a  riverboat is an exclusive power and function of
 4        the State.  A home rule unit may not establish the  hours
 5        for  sale  and consumption of alcoholic liquor on board a
 6        riverboat.  This amendatory Act of 1991 is a  denial  and
 7        limitation  of  home  rule  powers  and  functions  under
 8        subsection  (h)  of  Section  6  of  Article  VII  of the
 9        Illinois Constitution.
10             (19)  After consultation with the U.S. Army Corps of
11        Engineers, to establish binding emergency orders upon the
12        concurrence of a majority of the  members  of  the  Board
13        regarding   the   navigability   of  water,  relative  to
14        excursions, in the event of extreme  weather  conditions,
15        acts of God or other extreme circumstances.
16             (20)  To delegate the execution of any of its powers
17        under  this  Act  for  the  purpose  of administering and
18        enforcing  this  Act  and  its  rules   and   regulations
19        hereunder.
20             (21)  To  take any other action as may be reasonable
21        or  appropriate  to  enforce  this  Act  and  rules   and
22        regulations hereunder.
23        (d)  The Board may seek and shall receive the cooperation
24    of  the  Department  of State Police in conducting background
25    investigations  of   applicants   and   in   fulfilling   its
26    responsibilities  under  this Section.  Costs incurred by the
27    Department of State Police as a result  of  such  cooperation
28    shall   be   paid  by  the  Board  in  conformance  with  the
29    requirements of Section 2605-400 of the Department  of  State
30    Police Law (20 ILCS 2605/2605-400).
31        (e)  The Board must authorize to each investigator and to
32    any  other  employee  of the Board exercising the powers of a
33    peace officer a distinct badge that, on its face, (i) clearly
34    states that the badge is authorized by  the  Board  and  (ii)
 
                            -27-     LRB093 02394 LRD 16691 a
 1    contains  a  unique identifying number.  No other badge shall
 2    be authorized by the Board.
 3    (Source:  P.A.  91-40,  eff.  1-1-00;  91-239,  eff.  1-1-00;
 4    91-883, eff. 1-1-01.)

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

 7        (720 ILCS 5/28-1) (from Ch. 38, par. 28-1)
 8        Sec. 28-1.  Gambling.
 9        (a)  A person commits gambling when he:
10             (1)  Plays  a  game  of chance or skill for money or
11        other thing of value, unless excepted in  subsection  (b)
12        of this Section; or
13             (2)  Makes  a  wager  upon  the  result of any game,
14        contest, or  any  political  nomination,  appointment  or
15        election; or
16             (3)  Operates,   keeps,   owns,   uses,   purchases,
17        exhibits,  rents,  sells,  bargains for the sale or lease
18        of, manufactures or distributes any gambling device; or
19             (4)  Contracts to have or give  himself  or  another
20        the  option  to buy or sell, or contracts to buy or sell,
21        at  a  future  time,  any  grain   or   other   commodity
22        whatsoever,  or  any  stock  or  security of any company,
23        where it is at the time of making such contract  intended
24        by both parties thereto that the contract to buy or sell,
25        or  the  option,  whenever  exercised,  or  the  contract
26        resulting therefrom, shall be settled, not by the receipt
27        or  delivery of such property, but by the payment only of
28        differences in prices  thereof;  however,  the  issuance,
29        purchase, sale, exercise, endorsement or guarantee, by or
30        through  a  person registered with the Secretary of State
31        pursuant to Section 8 of the Illinois Securities  Law  of
32        1953,  or  by  or  through  a  person  exempt  from  such
 
                            -28-     LRB093 02394 LRD 16691 a
 1        registration  under  said  Section  8, of a put, call, or
 2        other option to buy or sell securities  which  have  been
 3        registered  with  the  Secretary  of  State  or which are
 4        exempt from such registration  under  Section  3  of  the
 5        Illinois  Securities  Law  of 1953 is not gambling within
 6        the meaning of this paragraph (4); or
 7             (5)  Knowingly   owns   or   possesses   any   book,
 8        instrument or apparatus by means of which bets or  wagers
 9        have  been,  or are, recorded or registered, or knowingly
10        possesses any money which he has received in  the  course
11        of a bet or wager; or
12             (6)  Sells  pools  upon  the  result  of any game or
13        contest  of  skill  or  chance,   political   nomination,
14        appointment or election; or
15             (7)  Sets  up  or  promotes  any  lottery  or sells,
16        offers to sell or transfers any ticket or share  for  any
17        lottery; or
18             (8)  Sets  up  or promotes any policy game or sells,
19        offers to sell or knowingly possesses  or  transfers  any
20        policy  ticket,  slip,  record, document or other similar
21        device; or
22             (9)  Knowingly  drafts,  prints  or  publishes   any
23        lottery  ticket  or  share,  or  any policy ticket, slip,
24        record, document  or  similar  device,  except  for  such
25        activity  related  to  lotteries, bingo games and raffles
26        authorized by and conducted in accordance with  the  laws
27        of Illinois or any other state or foreign government; or
28             (10)  Knowingly  advertises  any  lottery  or policy
29        game, except for  such  activity  related  to  lotteries,
30        bingo  games  and  raffles authorized by and conducted in
31        accordance with the laws of Illinois or any other  state;
32        or
33             (11)  Knowingly  transmits information as to wagers,
34        betting odds, or changes in betting  odds  by  telephone,
 
                            -29-     LRB093 02394 LRD 16691 a
 1        telegraph,   radio,   semaphore   or  similar  means;  or
 2        knowingly  installs  or  maintains  equipment   for   the
 3        transmission  or receipt of such information; except that
 4        nothing in this subdivision (11)  prohibits  transmission
 5        or  receipt of such information for use in news reporting
 6        of sporting events or contests; or
 7             (12) Knowingly establishes, maintains,  or  operates
 8        an  Internet site that permits a person to play a game of
 9        chance or skill for money or  other  thing  of  value  by
10        means  of the Internet or to make a wager upon the result
11        of any game, contest, political nomination,  appointment,
12        or election by means of the Internet.
13        (b)  Participants  in  any  of  the  following activities
14    shall not be convicted of gambling therefor:
15             (1)  Agreements to compensate for loss caused by the
16        happening  of   chance   including   without   limitation
17        contracts  of indemnity or guaranty and life or health or
18        accident insurance;
19             (2)  Offers of prizes, award or compensation to  the
20        actual  contestants  in  any  bona  fide  contest for the
21        determination of skill, speed, strength or  endurance  or
22        to  the  owners  of  animals  or vehicles entered in such
23        contest;
24             (3)  Pari-mutuel betting as authorized by the law of
25        this State;
26             (4)  Manufacture of gambling devices, including  the
27        acquisition  of essential parts therefor and the assembly
28        thereof, for  transportation  in  interstate  or  foreign
29        commerce  to  any  place  outside  this  State  when such
30        transportation  is  not  prohibited  by  any   applicable
31        Federal   law;   or  the  manufacture,  distribution,  or
32        possession of video gaming terminals, as defined  in  the
33        Video  Gaming  Act,  by  manufacturers, distributors, and
34        terminal operators licensed to  do  so  under  the  Video
 
                            -30-     LRB093 02394 LRD 16691 a
 1        Gaming Act;
 2             (5)  The   game  commonly  known  as  "bingo",  when
 3        conducted in accordance with the Bingo  License  and  Tax
 4        Act;
 5             (6)  Lotteries   when  conducted  by  the  State  of
 6        Illinois in accordance with the Illinois Lottery Law;
 7             (7)  Possession of an antique slot machine  that  is
 8        neither  used nor intended to be used in the operation or
 9        promotion  of   any   unlawful   gambling   activity   or
10        enterprise.  For the purpose of this subparagraph (b)(7),
11        an  antique slot machine is one manufactured 25 years ago
12        or earlier;
13             (8)  Raffles when conducted in accordance  with  the
14        Raffles Act;
15             (9)  Charitable  games  when conducted in accordance
16        with the Charitable Games Act;
17             (10)  Pull tabs and jar games when  conducted  under
18        the Illinois Pull Tabs and Jar Games Act; or
19             (11)  Gambling  games  conducted  on riverboats when
20        authorized by the Riverboat Gambling Act; or.
21             (12)  Video gaming  terminal  games  at  a  licensed
22        establishment,   licensed   truck   stop   establishment,
23        licensed  fraternal  establishment,  or licensed veterans
24        establishment when conducted in accordance with the Video
25        Gaming Act.
26        (c)  Sentence.
27        Gambling  under  subsection  (a)(1)  or  (a)(2)  of  this
28    Section is a Class A  misdemeanor.   Gambling  under  any  of
29    subsections (a)(3) through (a)(11) of this Section is a Class
30    A  misdemeanor.   A second or subsequent conviction under any
31    of subsections (a)(3) through (a)(11), is a Class  4  felony.
32    Gambling  under subsection (a)(12) of this Section is a Class
33    A misdemeanor.   A  second  or  subsequent  conviction  under
34    subsection (a)(12) is a Class 4 felony.
 
                            -31-     LRB093 02394 LRD 16691 a
 1        (d)  Circumstantial evidence.
 2        In  prosecutions  under subsection (a)(1) through (a)(12)
 3    of this Section circumstantial evidence shall have  the  same
 4    validity and weight as in any criminal prosecution.
 5    (Source: P.A. 91-257, eff. 1-1-00.)

 6        (720 ILCS 5/28-1.1) (from Ch. 38, par. 28-1.1)
 7        Sec. 28-1.1.  Syndicated gambling.
 8        (a)  Declaration   of   Purpose.  Recognizing  the  close
 9    relationship  between   professional   gambling   and   other
10    organized  crime,  it  is  declared  to  be the policy of the
11    legislature to restrain persons from engaging in the business
12    of gambling for profit in this State.  This Section shall  be
13    liberally  construed and administered with a view to carrying
14    out this policy.
15        (b)  A  person  commits  syndicated  gambling   when   he
16    operates  a  "policy  game"  or  engages  in  the business of
17    bookmaking.
18        (c)  A person "operates a policy game" when he  knowingly
19    uses any premises or property for the purpose of receiving or
20    knowingly does receive from what is commonly called "policy":
21             (1)  money  from  a  person other than the better or
22        player whose bets or plays are represented by such money;
23        or
24             (2)  written "policy game"  records,  made  or  used
25        over  any  period  of  time, from a person other than the
26        better or player whose bets or plays are  represented  by
27        such written record.
28        (d)  A  person  engages in bookmaking when he receives or
29    accepts more than five bets or wagers upon the result of  any
30    trials  or  contests of skill, speed or power of endurance or
31    upon any lot, chance, casualty, unknown or  contingent  event
32    whatsoever,  which  bets or wagers shall be of such size that
33    the total of the amounts of money paid or promised to be paid
 
                            -32-     LRB093 02394 LRD 16691 a
 1    to such bookmaker on account  thereof  shall  exceed  $2,000.
 2    Bookmaking  is  the  receiving  or  accepting of such bets or
 3    wagers  regardless  of  the  form  or  manner  in  which  the
 4    bookmaker records them.
 5        (e)  Participants in  any  of  the  following  activities
 6    shall not be convicted of syndicated gambling:
 7             (1)  Agreements to compensate for loss caused by the
 8        happening   of   chance   including   without  limitation
 9        contracts of indemnity or guaranty and life or health  or
10        accident insurance; and
11             (2)  Offers  of prizes, award or compensation to the
12        actual contestants in  any  bona  fide  contest  for  the
13        determination  of  skill, speed, strength or endurance or
14        to the owners of animals  or  vehicles  entered  in  such
15        contest; and
16             (3)  Pari-mutuel  betting  as  authorized  by law of
17        this State; and
18             (4)  Manufacture of gambling devices, including  the
19        acquisition  of essential parts therefor and the assembly
20        thereof, for  transportation  in  interstate  or  foreign
21        commerce  to  any  place  outside  this  State  when such
22        transportation  is  not  prohibited  by  any   applicable
23        Federal law; and
24             (5)  Raffles  when  conducted in accordance with the
25        Raffles Act; and
26             (6)  Gambling games  conducted  on  riverboats  when
27        authorized by the Riverboat Gambling Act; and.
28             (7)  Video  gaming  terminal  games  at  a  licensed
29        establishment,   licensed   truck   stop   establishment,
30        licensed  fraternal  establishment,  or licensed veterans
31        establishment when conducted in accordance with the Video
32        Gaming Act.
33        (f)  Sentence.  Syndicated gambling is a Class 3 felony.
34    (Source: P.A. 86-1029; 87-435.)
 
                            -33-     LRB093 02394 LRD 16691 a
 1        (720 ILCS 5/28-3) (from Ch. 38, par. 28-3)
 2        Sec. 28-3.  Keeping a Gambling Place. A "gambling  place"
 3    is  any  real  estate,  vehicle,  boat  or any other property
 4    whatsoever used for  the  purposes  of  gambling  other  than
 5    gambling  conducted in the manner authorized by the Riverboat
 6    Gambling Act  or  the  Video  Gaming  Act.   Any  person  who
 7    knowingly  permits any premises or property owned or occupied
 8    by him or under his control to be used as  a  gambling  place
 9    commits  a Class A misdemeanor.  Each subsequent offense is a
10    Class 4 felony.  When  any  premises  is  determined  by  the
11    circuit court to be a gambling place:
12        (a)  Such  premises  is  a  public  nuisance  and  may be
13    proceeded against as such, and
14        (b)  All licenses, permits or certificates issued by  the
15    State of Illinois or any subdivision or public agency thereof
16    authorizing  the  serving  of food or liquor on such premises
17    shall be void; and  no  license,  permit  or  certificate  so
18    cancelled shall be reissued for such premises for a period of
19    60 days thereafter; nor shall any person convicted of keeping
20    a  gambling  place be reissued such license for one year from
21    his conviction and, after a second conviction  of  keeping  a
22    gambling  place,  any  such person shall not be reissued such
23    license, and
24        (c)  Such premises of any person  who  knowingly  permits
25    thereon  a  violation of any Section of this Article shall be
26    held liable for, and may  be  sold  to  pay  any  unsatisfied
27    judgment  that may be recovered and any unsatisfied fine that
28    may be levied under any Section of this Article.
29    (Source: P.A. 86-1029.)

30        Section 195.  The State Finance Act is amended by  adding
31    Section 5.595 as follows:

32        (30 ILCS 105/5.595 new)
 
                            -34-     LRB093 02394 LRD 16691 a
 1        Sec.    5.595.  The   Local   Government   Video   Gaming
 2    Distributive Fund.

 3        Section 999.  Effective date.  This Act takes effect upon
 4    becoming law.".