102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB1793

 

Introduced 2/17/2021, by Rep. Robert Rita

 

SYNOPSIS AS INTRODUCED:
 
230 ILCS 40/25

    Amends the Video Gaming Act. Removes provisions requiring the Illinois Gaming Board to consider the impact of any economic concentration of the operation of video gaming terminals when deciding whether to approve the operation of video gaming terminals in a location. Effective immediately.


LRB102 14119 SMS 19471 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB1793LRB102 14119 SMS 19471 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 25 as follows:
 
6    (230 ILCS 40/25)
7    Sec. 25. Restriction of licensees.
8    (a) Manufacturer. A person may not be licensed as a
9manufacturer of a video gaming terminal in Illinois unless the
10person has a valid manufacturer's license issued under this
11Act. A manufacturer may only sell video gaming terminals for
12use in Illinois to persons having a valid distributor's
13license.
14    (b) Distributor. A person may not sell, distribute, or
15lease or market a video gaming terminal in Illinois unless the
16person has a valid distributor's license issued under this
17Act. A distributor may only sell video gaming terminals for
18use in Illinois to persons having a valid distributor's or
19terminal operator's license.
20    (c) Terminal operator. A person may not own, maintain, or
21place a video gaming terminal unless he has a valid terminal
22operator's license issued under this Act. A terminal operator
23may only place video gaming terminals for use in Illinois in

 

 

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1licensed establishments, licensed truck stop establishments,
2licensed large truck stop establishments, licensed fraternal
3establishments, and licensed veterans establishments. No
4terminal operator may give anything of value, including but
5not limited to a loan or financing arrangement, to a licensed
6establishment, licensed truck stop establishment, licensed
7large truck stop establishment, licensed fraternal
8establishment, or licensed veterans establishment as any
9incentive or inducement to locate video terminals in that
10establishment. Of the after-tax profits from a video gaming
11terminal, 50% shall be paid to the terminal operator and 50%
12shall be paid to the licensed establishment, licensed truck
13stop establishment, licensed large truck stop establishment,
14licensed fraternal establishment, or licensed veterans
15establishment, notwithstanding any agreement to the contrary.
16A video terminal operator that violates one or more
17requirements of this subsection is guilty of a Class 4 felony
18and is subject to termination of his or her license by the
19Board.
20    (d) Licensed technician. A person may not service,
21maintain, or repair a video gaming terminal in this State
22unless he or she (1) has a valid technician's license issued
23under this Act, (2) is a terminal operator, or (3) is employed
24by a terminal operator, distributor, or manufacturer.
25    (d-5) Licensed terminal handler. No person, including, but
26not limited to, an employee or independent contractor working

 

 

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1for a manufacturer, distributor, supplier, technician, or
2terminal operator licensed pursuant to this Act, shall have
3possession or control of a video gaming terminal, or access to
4the inner workings of a video gaming terminal, unless that
5person possesses a valid terminal handler's license issued
6under this Act.
7    (e) Licensed establishment. No video gaming terminal may
8be placed in any licensed establishment, licensed veterans
9establishment, licensed truck stop establishment, licensed
10large truck stop establishment, or licensed fraternal
11establishment unless the owner or agent of the owner of the
12licensed establishment, licensed veterans establishment,
13licensed truck stop establishment, licensed large truck stop
14establishment, or licensed fraternal establishment has entered
15into a written use agreement with the terminal operator for
16placement of the terminals. A copy of the use agreement shall
17be on file in the terminal operator's place of business and
18available for inspection by individuals authorized by the
19Board. A licensed establishment, licensed truck stop
20establishment, licensed veterans establishment, or licensed
21fraternal establishment may operate up to 6 video gaming
22terminals on its premises at any time. A licensed large truck
23stop establishment may operate up to 10 video gaming terminals
24on its premises at any time.
25    (f) (Blank).
26    (g) Financial interest restrictions. As used in this Act,

 

 

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1"substantial interest" in a partnership, a corporation, an
2organization, an association, a business, or a limited
3liability company means:
4        (A) When, with respect to a sole proprietorship, an
5    individual or his or her spouse owns, operates, manages,
6    or conducts, directly or indirectly, the organization,
7    association, or business, or any part thereof; or
8        (B) When, with respect to a partnership, the
9    individual or his or her spouse shares in any of the
10    profits, or potential profits, of the partnership
11    activities; or
12        (C) When, with respect to a corporation, an individual
13    or his or her spouse is an officer or director, or the
14    individual or his or her spouse is a holder, directly or
15    beneficially, of 5% or more of any class of stock of the
16    corporation; or
17        (D) When, with respect to an organization not covered
18    in (A), (B) or (C) above, an individual or his or her
19    spouse is an officer or manages the business affairs, or
20    the individual or his or her spouse is the owner of or
21    otherwise controls 10% or more of the assets of the
22    organization; or
23        (E) When an individual or his or her spouse furnishes
24    5% or more of the capital, whether in cash, goods, or
25    services, for the operation of any business, association,
26    or organization during any calendar year; or

 

 

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1        (F) When, with respect to a limited liability company,
2    an individual or his or her spouse is a member, or the
3    individual or his or her spouse is a holder, directly or
4    beneficially, of 5% or more of the membership interest of
5    the limited liability company.
6    For purposes of this subsection (g), "individual" includes
7all individuals or their spouses whose combined interest would
8qualify as a substantial interest under this subsection (g)
9and whose activities with respect to an organization,
10association, or business are so closely aligned or coordinated
11as to constitute the activities of a single entity.
12    (h) Location restriction. A licensed establishment,
13licensed truck stop establishment, licensed large truck stop
14establishment, licensed fraternal establishment, or licensed
15veterans establishment that is (i) located within 1,000 feet
16of a facility operated by an organization licensee licensed
17under the Illinois Horse Racing Act of 1975 or the home dock of
18a riverboat licensed under the Illinois Gambling Act or (ii)
19located within 100 feet of a school or a place of worship under
20the Religious Corporation Act, is ineligible to operate a
21video gaming terminal. The location restrictions in this
22subsection (h) do not apply if (A) a facility operated by an
23organization licensee, a school, or a place of worship moves
24to or is established within the restricted area after a
25licensed establishment, licensed truck stop establishment,
26licensed large truck stop establishment, licensed fraternal

 

 

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1establishment, or licensed veterans establishment becomes
2licensed under this Act or (B) a school or place of worship
3moves to or is established within the restricted area after a
4licensed establishment, licensed truck stop establishment,
5licensed large truck stop establishment, licensed fraternal
6establishment, or licensed veterans establishment obtains its
7original liquor license. For the purpose of this subsection,
8"school" means an elementary or secondary public school, or an
9elementary or secondary private school registered with or
10recognized by the State Board of Education.
11    Notwithstanding the provisions of this subsection (h), the
12Board may waive the requirement that a licensed establishment,
13licensed truck stop establishment, licensed large truck stop
14establishment, licensed fraternal establishment, or licensed
15veterans establishment not be located within 1,000 feet from a
16facility operated by an organization licensee licensed under
17the Illinois Horse Racing Act of 1975 or the home dock of a
18riverboat licensed under the Illinois Gambling Act. The Board
19shall not grant such waiver if there is any common ownership or
20control, shared business activity, or contractual arrangement
21of any type between the establishment and the organization
22licensee or owners licensee of a riverboat. The Board shall
23adopt rules to implement the provisions of this paragraph.
24    (h-5) Restrictions on licenses in malls. The Board shall
25not grant an application to become a licensed video gaming
26location if the Board determines that granting the application

 

 

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1would more likely than not cause a terminal operator,
2individually or in combination with other terminal operators,
3licensed video gaming location, or other person or entity, to
4operate the video gaming terminals in 2 or more licensed video
5gaming locations as a single video gaming operation.
6        (1) In making determinations under this subsection
7    (h-5), factors to be considered by the Board shall
8    include, but not be limited to, the following:
9            (A) the physical aspects of the location;
10            (B) the ownership, control, or management of the
11        location;
12            (C) any arrangements, understandings, or
13        agreements, written or otherwise, among or involving
14        any persons or entities that involve the conducting of
15        any video gaming business or the sharing of costs or
16        revenues; and
17            (D) the manner in which any terminal operator or
18        other related entity markets, advertises, or otherwise
19        describes any location or locations to any other
20        person or entity or to the public.
21        (2) The Board shall presume, subject to rebuttal, that
22    the granting of an application to become a licensed video
23    gaming location within a mall will cause a terminal
24    operator, individually or in combination with other
25    persons or entities, to operate the video gaming terminals
26    in 2 or more licensed video gaming locations as a single

 

 

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1    video gaming operation if the Board determines that
2    granting the license would create a local concentration of
3    licensed video gaming locations.
4    For the purposes of this subsection (h-5):
5    "Mall" means a building, or adjoining or connected
6buildings, containing 4 or more separate locations.
7    "Video gaming operation" means the conducting of video
8gaming and all related activities.
9    "Location" means a space within a mall containing a
10separate business, a place for a separate business, or a place
11subject to a separate leasing arrangement by the mall owner.
12    "Licensed video gaming location" means a licensed
13establishment, licensed fraternal establishment, licensed
14veterans establishment, licensed truck stop establishment, or
15licensed large truck stop.
16    "Local concentration of licensed video gaming locations"
17means that the combined number of licensed video gaming
18locations within a mall exceed half of the separate locations
19within the mall.
20    (i) (Blank). Undue economic concentration. In addition to
21considering all other requirements under this Act, in deciding
22whether to approve the operation of video gaming terminals by
23a terminal operator in a location, the Board shall consider
24the impact of any economic concentration of such operation of
25video gaming terminals. The Board shall not allow a terminal
26operator to operate video gaming terminals if the Board

 

 

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1determines such operation will result in undue economic
2concentration. For purposes of this Section, "undue economic
3concentration" means that a terminal operator would have such
4actual or potential influence over video gaming terminals in
5Illinois as to:
6        (1) substantially impede or suppress competition among
7    terminal operators;
8        (2) adversely impact the economic stability of the
9    video gaming industry in Illinois; or
10        (3) negatively impact the purposes of the Video Gaming
11    Act.
12    The Board shall adopt rules concerning undue economic
13concentration with respect to the operation of video gaming
14terminals in Illinois. The rules shall include, but not be
15limited to, (i) limitations on the number of video gaming
16terminals operated by any terminal operator within a defined
17geographic radius and (ii) guidelines on the discontinuation
18of operation of any such video gaming terminals the Board
19determines will cause undue economic concentration.
20    (j) The provisions of the Illinois Antitrust Act are fully
21and equally applicable to the activities of any licensee under
22this Act.
23(Source: P.A. 101-31, eff. 6-28-19.)
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.