101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4804

 

Introduced 2/18/2020, by Rep. Kambium Buckner

 

SYNOPSIS AS INTRODUCED:
 
230 ILCS 40/35
720 ILCS 5/28-1  from Ch. 38, par. 28-1
815 ILCS 525/Act title
815 ILCS 525/1
815 ILCS 525/10
815 ILCS 525/33 new
815 ILCS 525/45 new
815 ILCS 525/50 new

    Amends the Prizes and Gifts Act. Changes the short title of the Act to the Sweepstakes, Prizes, and Gifts Act. Provides that it is unlawful for a person to operate more than 10 electronic product promotion sweepstakes kiosks on any premises at one time. Includes restrictions on electronic product promotion sweepstakes kiosks. Provides fees imposed by the Department of Revenue on each kiosk in operation. Makes conforming changes in the Criminal Code of 2012 and the Video Gaming Act. Effective immediately.


LRB101 19348 SMS 68820 b

 

 

A BILL FOR

 

HB4804LRB101 19348 SMS 68820 b

1    AN ACT concerning gaming.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Video Gaming Act is amended by changing
5Section 35 as follows:
 
6    (230 ILCS 40/35)
7    Sec. 35. Display of license; confiscation; violation as
8felony.
9    (a) Each video gaming terminal shall be licensed by the
10Board before placement or operation on the premises of a
11licensed establishment, licensed truck stop establishment,
12licensed large truck stop establishment, licensed fraternal
13establishment, or licensed veterans establishment. The license
14of each video gaming terminal shall be maintained at the
15location where the video gaming terminal is operated. Failure
16to do so is a petty offense with a fine not to exceed $100. Any
17licensed establishment, licensed truck stop establishment,
18licensed large truck stop establishment, licensed fraternal
19establishment, or licensed veterans establishment used for the
20conduct of gambling games in violation of this Act shall be
21considered a gambling place in violation of Section 28-3 of the
22Criminal Code of 2012. Every gambling device found in a
23licensed establishment, licensed truck stop establishment,

 

 

HB4804- 2 -LRB101 19348 SMS 68820 b

1licensed large truck stop establishment, licensed fraternal
2establishment, or licensed veterans establishment operating
3gambling games in violation of this Act shall be subject to
4seizure, confiscation, and destruction as provided in Section
528-5 of the Criminal Code of 2012. Any license issued under the
6Liquor Control Act of 1934 to any owner or operator of a
7licensed establishment, licensed truck stop establishment,
8licensed large truck stop establishment, licensed fraternal
9establishment, or licensed veterans establishment that
10operates or permits the operation of a video gaming terminal
11within its establishment in violation of this Act shall be
12immediately revoked. No person may own, operate, have in his or
13her possession or custody or under his or her control, or
14permit to be kept in any place under his or her possession or
15control, any device that awards credits and contains a circuit,
16meter, or switch capable of removing and recording the removal
17of credits when the award of credits is dependent upon chance.
18    Nothing in this Section shall be deemed to prohibit the use
19of a game device only if the game device is used in an activity
20that is not gambling under subsection (b) of Section 28-1 of
21the Criminal Code of 2012. An applicant or licensee under this
22Act is not in violation of this Act or its rules and shall not
23be subject to disciplinary action for operating a game device
24if operation of the gaming device is in compliance with and not
25considered gambling under subsection (b) of Section 28-1 of the
26Criminal Code of 2012.

 

 

HB4804- 3 -LRB101 19348 SMS 68820 b

1    A violation of this Section is a Class 4 felony. All
2devices that are owned, operated, or possessed in violation of
3this Section are hereby declared to be public nuisances and
4shall be subject to seizure, confiscation, and destruction as
5provided in Section 28-5 of the Criminal Code of 2012.
6    The provisions of this Section do not apply to devices or
7electronic video game terminals licensed pursuant to this Act.
8A video gaming terminal operated for amusement only and bearing
9a valid amusement tax sticker shall not be subject to this
10Section until 30 days after the Board establishes that the
11central communications system is functional.
12    (b) (1) The odds of winning each video game shall be posted
13on or near each video gaming terminal. The manner in which the
14odds are calculated and how they are posted shall be determined
15by the Board by rule.
16    (2) No video gaming terminal licensed under this Act may be
17played except during the legal hours of operation allowed for
18the consumption of alcoholic beverages at the licensed
19establishment, licensed fraternal establishment, or licensed
20veterans establishment. A licensed establishment, licensed
21fraternal establishment, or licensed veterans establishment
22that violates this subsection is subject to termination of its
23license by the Board.
24(Source: P.A. 101-31, eff. 6-28-19.)
 
25    Section 10. The Criminal Code of 2012 is amended by

 

 

HB4804- 4 -LRB101 19348 SMS 68820 b

1changing Section 28-1 as follows:
 
2    (720 ILCS 5/28-1)  (from Ch. 38, par. 28-1)
3    Sec. 28-1. Gambling.
4    (a) A person commits gambling when he or she:
5        (1) knowingly plays a game of chance or skill for money
6    or other thing of value, unless excepted in subsection (b)
7    of this Section;
8        (2) knowingly makes a wager upon the result of any
9    game, contest, or any political nomination, appointment or
10    election;
11        (3) knowingly operates, keeps, owns, uses, purchases,
12    exhibits, rents, sells, bargains for the sale or lease of,
13    manufactures or distributes any gambling device;
14        (4) contracts to have or give himself or herself or
15    another the option to buy or sell, or contracts to buy or
16    sell, at a future time, any grain or other commodity
17    whatsoever, or any stock or security of any company, where
18    it is at the time of making such contract intended by both
19    parties thereto that the contract to buy or sell, or the
20    option, whenever exercised, or the contract resulting
21    therefrom, shall be settled, not by the receipt or delivery
22    of such property, but by the payment only of differences in
23    prices thereof; however, the issuance, purchase, sale,
24    exercise, endorsement or guarantee, by or through a person
25    registered with the Secretary of State pursuant to Section

 

 

HB4804- 5 -LRB101 19348 SMS 68820 b

1    8 of the Illinois Securities Law of 1953, or by or through
2    a person exempt from such registration under said Section
3    8, of a put, call, or other option to buy or sell
4    securities which have been registered with the Secretary of
5    State or which are exempt from such registration under
6    Section 3 of the Illinois Securities Law of 1953 is not
7    gambling within the meaning of this paragraph (4);
8        (5) knowingly owns or possesses any book, instrument or
9    apparatus by means of which bets or wagers have been, or
10    are, recorded or registered, or knowingly possesses any
11    money which he has received in the course of a bet or
12    wager;
13        (6) knowingly sells pools upon the result of any game
14    or contest of skill or chance, political nomination,
15    appointment or election;
16        (7) knowingly sets up or promotes any lottery or sells,
17    offers to sell or transfers any ticket or share for any
18    lottery;
19        (8) knowingly sets up or promotes any policy game or
20    sells, offers to sell or knowingly possesses or transfers
21    any policy ticket, slip, record, document or other similar
22    device;
23        (9) knowingly drafts, prints or publishes any lottery
24    ticket or share, or any policy ticket, slip, record,
25    document or similar device, except for such activity
26    related to lotteries, bingo games and raffles authorized by

 

 

HB4804- 6 -LRB101 19348 SMS 68820 b

1    and conducted in accordance with the laws of Illinois or
2    any other state or foreign government;
3        (10) knowingly advertises any lottery or policy game,
4    except for such activity related to lotteries, bingo games
5    and raffles authorized by and conducted in accordance with
6    the laws of Illinois or any other state;
7        (11) knowingly transmits information as to wagers,
8    betting odds, or changes in betting odds by telephone,
9    telegraph, radio, semaphore or similar means; or knowingly
10    installs or maintains equipment for the transmission or
11    receipt of such information; except that nothing in this
12    subdivision (11) prohibits transmission or receipt of such
13    information for use in news reporting of sporting events or
14    contests; or
15        (12) knowingly establishes, maintains, or operates an
16    Internet site that permits a person to play a game of
17    chance or skill for money or other thing of value by means
18    of the Internet or to make a wager upon the result of any
19    game, contest, political nomination, appointment, or
20    election by means of the Internet. This item (12) does not
21    apply to activities referenced in items (6), (6.1), (8),
22    and (8.1), and (15) of subsection (b) of this Section.
23    (b) Participants in any of the following activities shall
24not be convicted of gambling:
25        (1) Agreements to compensate for loss caused by the
26    happening of chance including without limitation contracts

 

 

HB4804- 7 -LRB101 19348 SMS 68820 b

1    of indemnity or guaranty and life or health or accident
2    insurance.
3        (2) Offers of prizes, award or compensation to the
4    actual contestants in any bona fide contest for the
5    determination of skill, speed, strength or endurance or to
6    the owners of animals or vehicles entered in such contest.
7        (3) Pari-mutuel betting as authorized by the law of
8    this State.
9        (4) Manufacture of gambling devices, including the
10    acquisition of essential parts therefor and the assembly
11    thereof, for transportation in interstate or foreign
12    commerce to any place outside this State when such
13    transportation is not prohibited by any applicable Federal
14    law; or the manufacture, distribution, or possession of
15    video gaming terminals, as defined in the Video Gaming Act,
16    by manufacturers, distributors, and terminal operators
17    licensed to do so under the Video Gaming Act.
18        (5) The game commonly known as "bingo", when conducted
19    in accordance with the Bingo License and Tax Act.
20        (6) Lotteries when conducted by the State of Illinois
21    in accordance with the Illinois Lottery Law. This exemption
22    includes any activity conducted by the Department of
23    Revenue to sell lottery tickets pursuant to the provisions
24    of the Illinois Lottery Law and its rules.
25        (6.1) The purchase of lottery tickets through the
26    Internet for a lottery conducted by the State of Illinois

 

 

HB4804- 8 -LRB101 19348 SMS 68820 b

1    under the program established in Section 7.12 of the
2    Illinois Lottery Law.
3        (7) Possession of an antique slot machine that is
4    neither used nor intended to be used in the operation or
5    promotion of any unlawful gambling activity or enterprise.
6    For the purpose of this subparagraph (b)(7), an antique
7    slot machine is one manufactured 25 years ago or earlier.
8        (8) Raffles and poker runs when conducted in accordance
9    with the Raffles and Poker Runs Act.
10        (8.1) The purchase of raffle chances for a raffle
11    conducted in accordance with the Raffles and Poker Runs
12    Act.
13        (9) Charitable games when conducted in accordance with
14    the Charitable Games Act.
15        (10) Pull tabs and jar games when conducted under the
16    Illinois Pull Tabs and Jar Games Act.
17        (11) Gambling games when authorized by the Illinois
18    Gambling Act.
19        (12) Video gaming terminal games at a licensed
20    establishment, licensed truck stop establishment, licensed
21    large truck stop establishment, licensed fraternal
22    establishment, or licensed veterans establishment when
23    conducted in accordance with the Video Gaming Act.
24        (13) Games of skill or chance where money or other
25    things of value can be won but no payment or purchase is
26    required to participate.

 

 

HB4804- 9 -LRB101 19348 SMS 68820 b

1        (14) Savings promotion raffles authorized under
2    Section 5g of the Illinois Banking Act, Section 7008 of the
3    Savings Bank Act, Section 42.7 of the Illinois Credit Union
4    Act, Section 5136B of the National Bank Act (12 U.S.C.
5    25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C.
6    1463).
7        (15) Sports wagering when conducted in accordance with
8    the Sports Wagering Act.
9        (16) Electronic product promotion sweepstakes when
10    conducted in accordance with the Sweepstakes, Prizes, and
11    Gifts Act.
12    (c) Sentence.
13    Gambling is a Class A misdemeanor. A second or subsequent
14conviction under subsections (a)(3) through (a)(12), is a Class
154 felony.
16    (d) Circumstantial evidence.
17    In prosecutions under this Section circumstantial evidence
18shall have the same validity and weight as in any criminal
19prosecution.
20(Source: P.A. 101-31, Article 25, Section 25-915, eff. 6-28-19;
21101-31, Article 35, Section 35-80, eff. 6-28-19; 101-109, eff.
227-19-19; revised 8-6-19.)
 
23    Section 15. The Prizes and Gifts Act is amended by changing
24th title of the Act and Sections 1 and 10 and by adding
25Sections 33, 45 and 50 as follows:
 

 

 

HB4804- 10 -LRB101 19348 SMS 68820 b

1    (815 ILCS 525/Act title)
2An Act concerning sweepstakes, prizes, and gifts.
 
3    (815 ILCS 525/1)
4    Sec. 1. Short title. This Act may be cited as the
5Sweepstakes, Prizes, and Gifts Act.
6(Source: P.A. 92-436, eff. 1-1-02.)
 
7    (815 ILCS 525/10)
8    Sec. 10. Definitions. As used in this Act:
9    "Bona fide product" means any item of real value, which
10includes gift certificates to be used for or towards the
11purchase of a retail item. "Bona fide product" does not include
12a discount coupon, Internet access, or a telephone card.
13    "Catalog seller" means an entity (and its subsidiaries) or
14a person at least 50% of whose annual revenues are derived from
15the sale of products sold in connection with the distribution
16of catalogs of at least 24 pages, which contain written
17descriptions or illustrations and sale prices for each item of
18merchandise and which are distributed in more than one state
19with a total annual distribution of at least 250,000.
20    "Discount coupon" means a coupon that has a value worth
21double the amount inserted into the electronic product
22promotion sweepstakes kiosk and is used to offset the price of
23a retail item at a store with a physical location or ecommerce

 

 

HB4804- 11 -LRB101 19348 SMS 68820 b

1website.
2    "Distributor" means a provider of electronic product
3promotion sweepstakes kiosks that sells fills through the fill
4system and is responsible for the collection and remittance of
5the revenue operation fee to the Department of Revenue.
6    "Electronic product promotion sweepstakes kiosk" means any
7electronic video machine that is used to promote the purchase
8of a bona fide product from a sponsor and offers or awards a
9prize, without requiring payment or purchase to participate, as
10a means to promote that sponsor and is otherwise consistent
11with paragraph (12) of subsection (a) and paragraph (16) of
12subsection (b) of Section 28-1 of the Criminal Code of 2012,
13contains a fill system, and is not connected directly or
14indirectly to the Internet, either by cellular modem, hardwire
15or wireless connection, or to a set of interconnected networked
16devices in order to participate in the game or contest or to
17receive or retrieve any data related to the kiosk or device
18unless the connected device is a redemption vault.
19    "Fills" means the extended play authorizations for the
20software.
21    "Fill system" means the internal revenue generation refill
22system of the electronic product promotion sweepstakes kiosk
23that permits the operation of and access to plays on the
24software on a fee basis, automatically ceases to operate upon
25the completion of a revenue cycle, and provides for the
26auditable determination of the revenue operation fee.

 

 

HB4804- 12 -LRB101 19348 SMS 68820 b

1    "Internet access" means a connection of individual
2computer terminals, computers, mobile devices, and computer
3networks to the Internet, enabling users to access Internet
4services, such as email and the World Wide Web.
5    "Operator" means an individual, entity, partnership, or
6otherwise that provides electronic product promotion
7sweepstakes kiosks for use by others.
8    "Person" means a corporation, partnership, limited
9liability company, sole proprietorship, or natural person.
10    "Prize" means a gift, award, or other item or service of
11value that is offered or awarded to a participant in a real or
12purported contest, competition, sweepstakes, scheme, plan, or
13other selection process that involves an element of chance.
14    "Redemption vault" means a standalone or connected device
15to an electronic product promotion sweepstakes kiosk for the
16sole purpose of redeeming a prize or award.
17    "Retail value" of a prize means:
18        (1) a price at which the sponsor can substantiate that
19    a substantial quantity of the item or service offered as a
20    prize has been sold to the public; or
21        (2) if the sponsor is unable to satisfy the requirement
22    in subdivision (1), no more than 3 times the amount the
23    sponsor paid for the prize in a bona fide purchase from an
24    unaffiliated seller.
25    "Revenue cycle" means the end of a fill or software
26generated through the fill system.

 

 

HB4804- 13 -LRB101 19348 SMS 68820 b

1    "Revenue operation fee" means the fee paid to the State
2through the Department of Revenue for each fill generated
3through the fill system.
4    "Software" means the software that runs the product
5promotion sweepstakes kiosk that runs through the fill system.
6    "Sponsor" means a person on whose behalf a promotion is
7conducted to promote or advertise goods, services, or property
8of that person. "Sponsor" includes a person who conducts a
9promotion on behalf of another sponsor.
10    "Telephone card" means any stored-value system capable of
11being discarded when depleted or recharged for reuse and
12utilized to place a telephone call.
13(Source: P.A. 92-436, eff. 1-1-02.)
 
14    (815 ILCS 525/33 new)
15    Sec. 33. Electronic product promotion sweepstakes kiosks.
16    (a) It is unlawful for a person to operate on any premises
17more than 10 electronic product promotion sweepstakes kiosks at
18any one time.
19    (b) No electronic product promotion sweepstakes kiosk
20shall be connected directly or indirectly to the Internet,
21either by cellular modem, hardwire or wireless connection, or
22to a set of interconnected networked devices in order to
23participate in the game or contest or to receive or retrieve
24any data related to the kiosk or device unless the connected
25device is a redemption vault.

 

 

HB4804- 14 -LRB101 19348 SMS 68820 b

1    (c) It is unlawful for an electronic product promotion
2sweepstakes kiosk to offer the sale of anything other than a
3bona fide product.
4    (d) It is unlawful to operate an electronic product
5promotion sweepstakes kiosk without a self-contained fill
6system.
 
7    (815 ILCS 525/45 new)
8    Sec. 45. Electronic product promotion sweepstakes kiosk;
9annual fee and revenue operation fee. The Department of Revenue
10is hereby authorized to impose an annual fee of not more than
11$100 for the operation of each electronic product promotion
12sweepstakes kiosk and collect a revenue operation fee of $1,000
13for each revenue cycle.
14    Distributors of lawful electronic product promotion
15sweepstakes kiosks shall be responsible for the collection and
16remittance of the revenue operation fee on a quarterly basis.
17    The Department of Revenue may audit a distributor or
18operator to ensure that all fills sold through the fill system
19are accounted for and subject to the revenue operation fee.
20    For the operation of each electronic product promotion
21sweepstakes kiosk, a municipality with a population of more
22than 2,000,000 inhabitants may impose a revenue operation fee
23not to exceed $500 and an annual fee not to exceed the amount
24of the fee the municipality imposes for an amusement device.
25    For the operation of each electronic product promotion

 

 

HB4804- 15 -LRB101 19348 SMS 68820 b

1sweepstakes kiosk, a municipality with a population of
22,000,000 inhabitants or less may impose a revenue operation
3fee not to exceed $100 and an annual fee not to exceed the
4amount of the fee the municipality imposes for an amusement
5device.
6    For the operation of each electronic product promotion
7sweepstakes kiosk, a county with a population of more than
82,000,000 inhabitants may impose an annual fee not to exceed
9$100.
10    For the operation of each electronic product promotion
11sweepstakes kiosk, a county with a population of 2,000,000
12inhabitants or less may impose an annual fee not to exceed $50.
 
13    (815 ILCS 525/50 new)
14    Sec. 50. Application for distributor and operator license.
15    (a) An application for a distribution or operator license
16shall be made in conformity with the provisions of this Act and
17the general requirements of the Department of Revenue relating
18to applications for licenses.
19    (b) The application shall be in writing and signed by the
20applicant, if an individual. If the applicant is a partnership
21or corporation, the application shall be signed by a duly
22authorized agent of the partnership or corporation. If the
23applicant is a limited liability company managed by managers,
24the application shall be signed by a manager. If the applicant
25is a limited liability company managed by its members, the

 

 

HB4804- 16 -LRB101 19348 SMS 68820 b

1application shall be signed by a member. The application shall
2be verified by oath or affidavit and shall include the
3following statements and information:
4        (1) in the case of:
5            (A) an individual: the name, date of birth,
6        residence address, current telephone number, and
7        social security number of the applicant; or
8            (B) a partnership, limited partnership,
9        corporation, limited liability company, or other legal
10        entity: the date of its organization or incorporation;
11        the objects for which it was organized or incorporated;
12        a summary of its activities during the past year; the
13        name, residence address, date of birth, and social
14        security numbers of any person owning directly or
15        beneficially any percentage of ownership of the
16        partnership, limited partnership, corporation, limited
17        liability company, other legal entity; however, if the
18        partnership, limited partnership, corporation, limited
19        liability company, or other legal entity is publicly
20        traded on an exchange within the meaning of the federal
21        Securities Exchange Act of 1934, the names, residence
22        addresses, social security numbers, dates of birth,
23        and percentage of interest of the 3 members who own the
24        highest percentage of interest in the partnership,
25        limited partnership, corporation, limited liability
26        company, or other legal entity and of any other members

 

 

HB4804- 17 -LRB101 19348 SMS 68820 b

1        who hold a 5% or greater interest in the partnership,
2        limited partnership, corporation, limited liability
3        company, or other legal entity; and, where applicable,
4        the names, residence addresses, dates of birth, and
5        social security numbers of all principal officers and
6        directors; if the entity is a manager-managed limited
7        liability company, the names, residence addresses,
8        dates of birth, and social security numbers of all
9        managers; and the name and current telephone number of
10        any authorized agent;
11        (2) the length of time the applicant has been in a
12    business of that character or, in the case of a
13    corporation, the date when its charter was issued;
14        (3) the location of the place of business that is to be
15    operated under the license;
16        (4) a statement as to whether the applicant is not
17    disqualified to receive a license by reason of any
18    provision of this Act or the laws of the State of Illinois;
19        (5) a statement as to whether the applicant has ever
20    been convicted of a felony related to a gambling offense;
21    and
22        (6) a statement that the applicant will not violate any
23    of the laws of the State of Illinois or of the United
24    States in the conduct of business.
25    (c) Applicants for a distributor or operator license must
26have a fingerprint-based criminal history background check

 

 

HB4804- 18 -LRB101 19348 SMS 68820 b

1completed by an Illinois licensed live scan fingerprint vendor.
2    (d) Applicants for a distributor or operator license shall
3be issued and approved within 30 days after the application is
4submitted to the Department of Revenue. No license shall be
5issued if the applicant or any of its owners, partners,
6shareholders, or members have been convicted of a felony
7related to gambling.
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.