98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB1870

 

Introduced 2/15/2013, by Sen. Steven M. Landek

 

SYNOPSIS AS INTRODUCED:
 
230 ILCS 30/2  from Ch. 120, par. 1122
230 ILCS 30/4  from Ch. 120, par. 1124
230 ILCS 30/5  from Ch. 120, par. 1125
230 ILCS 30/5.1  from Ch. 120, par. 1125.1
230 ILCS 30/8  from Ch. 120, par. 1128

    Amends the Charitable Games Act. Defines "house-backed game" and "player-backed game". Provides that certain bond requirements do not apply to player-backed games. Provides that the limit on the number of charitable games events that may be held in any one premises per calendar year do not apply to charitable games events held at a municipal building. Removes language limiting the management or operation of the games to no more than 4 charitable games events during a calendar year. Provides that a municipality may provide the same premises for conducting charitable games nights every Friday, Saturday, and Sunday (rather than for conducting 16 charitable games nights during a 12-month period). Makes other changes related to restrictions on the conduct of charitable games.


LRB098 10674 AMC 40977 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1870LRB098 10674 AMC 40977 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 Charitable Games Act is amended by changing
5Sections 2, 4, 5, 5.1, and 8 as follows:
 
6    (230 ILCS 30/2)  (from Ch. 120, par. 1122)
7    Sec. 2. Definitions. For purposes of this Act, the
8following definitions apply:
9    "Charitable games" means the 14 games of chance involving
10cards, dice, wheels, random selection of numbers, and gambling
11tickets which may be conducted at charitable games events
12listed as follows: roulette, blackjack, poker, pull tabs,
13craps, bang, beat the dealer, big six, gin rummy, five card
14stud poker, chuck-a-luck, keno, hold-em poker, and merchandise
15wheel.
16    "Charitable games event" or "event" means the type of
17fundraising event authorized by the Act at which participants
18pay to play charitable games for the chance of winning cash or
19noncash prizes.
20    "Charitable organization" means an organization or
21institution organized and operated to benefit an indefinite
22number of the public.
23    "Chips" means scrip, play money, poker or casino chips, or

 

 

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1any other representations of money, used to make wagers on the
2outcome of any charitable game.
3    "Department" means the Department of Revenue.
4    "Educational organization" means an organization or
5institution organized and operated to provide systematic
6instruction in useful branches of learning by methods common to
7schools and institutions of learning which compare favorably in
8their scope and intensity with the course of study presented in
9tax-supported schools.
10    "Fraternal organization" means an organization of persons
11having a common interest that is organized and operated
12exclusively to promote the welfare of its members and to
13benefit the general public on a continuing and consistent
14basis, including but not limited to ethnic organizations.
15    "House-backed game" means a game where (1) the player is
16playing against the sponsoring organization and (2) the
17sponsoring organization is staking the game being played and
18its bottom line is affected by who wins and who loses each hand
19played.
20    "Labor organization" means an organization composed of
21labor unions or workers organized with the objective of
22betterment of the conditions of those engaged in such pursuit
23and the development of a higher degree of efficiency in their
24respective occupations.
25    "Licensed organization" means a qualified organization
26that has obtained a license to conduct a charitable games event

 

 

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1in conformance with the provisions of this Act.
2    "Non-profit organization" means an organization or
3institution organized and conducted on a not-for-profit basis
4with no personal profit inuring to anyone as a result of the
5operation.
6    "Organization": A corporation, agency, partnership,
7association, firm, business, or other entity consisting of 2 or
8more persons joined by a common interest or purpose.
9    "Person" means any natural individual, corporation,
10partnership, limited liability company, organization as
11defined in this Section, qualified organization, licensed
12organization, licensee under this Act, or volunteer.
13    "Player-backed game" means a game where (1) the players of
14the game are playing one another and not the sponsoring
15organization and (2) the outcome of the game does not affect
16the sponsoring organization because it does not have any money
17at stake in the game.
18    "Premises" means a distinct parcel of land and the
19buildings thereon.
20    "Provider" means the person or organization owning,
21leasing, or controlling premises upon which any charitable
22games event is to be conducted.
23    "Qualified organization" means:
24        (a) a charitable, religious, fraternal, veterans,
25    labor or educational organization or institution organized
26    and conducted on a not-for-profit basis with no personal

 

 

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1    profit inuring to anyone as a result of the operation and
2    which is exempt from federal income taxation under Sections
3    501(c)(3), 501(c)(4), 501(c)(5), 501(c)(8), 501(c)(10) or
4    501(c)(19) of the Internal Revenue Code;
5        (b) a veterans organization as defined in Section 1.1
6    of the "Bingo License and Tax Act"organized and conducted
7    on a not-for-profit basis with no personal profit inuring
8    to anyone as a result of the operation; or
9        (c) An auxiliary organization of a veterans
10    organization.
11    "Religious organization" means any church, congregation,
12society, or organization founded for the purpose of religious
13worship.
14    "Sponsoring organization" means a qualified organization
15that has obtained a license to conduct a charitable games event
16in conformance with the provisions of this Act.
17    "Supplier" means any person, firm, or corporation that
18sells, leases, lends, distributes, or otherwise provides to any
19organization licensed to conduct charitable games events in
20Illinois any charitable games equipment.
21    "Veterans' organization" means an organization comprised
22of members of which substantially all are individuals who are
23veterans or spouses, widows, or widowers of veterans, the
24primary purpose of which is to promote the welfare of its
25members and to provide assistance to the general public in such
26a way as to confer a public benefit.

 

 

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1    "Volunteer" means a person recruited by a licensed
2organization who voluntarily performs services at a charitable
3games event, including participation in the management or
4operation of a game, as defined in Section 8.
5(Source: P.A. 94-986, eff. 6-30-06; 95-228, eff. 8-16-07.)
 
6    (230 ILCS 30/4)  (from Ch. 120, par. 1124)
7    Sec. 4. Licensing Restrictions. Licensing for the
8conducting of charitable games is subject to the following
9restrictions:
10        (1) The license application, when submitted to the
11    Department of Revenue, must contain a sworn statement
12    attesting to the not-for-profit character of the
13    prospective licensee organization, signed by a person
14    listed on the application as an owner, officer, or other
15    person in charge of the necessary day-to-day operations.
16    The application shall contain the name of the person in
17    charge of and primarily responsible for the conduct of the
18    charitable games. The person so designated shall be present
19    on the premises continuously during charitable games.
20        (2) The license application shall be prepared by the
21    prospective licensee organization or its duly authorized
22    representative in accordance with the rules of the
23    Department of Revenue.
24        (2.1) The organization shall maintain among its books
25    and records a list of the names, addresses, social security

 

 

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1    numbers, and dates of birth of all persons who will
2    participate in the management or operation of the games,
3    along with a sworn statement made under penalties of
4    perjury, signed by a person listed on the application as an
5    owner, officer, or other person in charge of the necessary
6    day-to-day operations, that the persons listed as
7    participating in the management or operation of the games
8    are bona fide members, volunteers as defined in Section 2,
9    or employees of the applicant, that these persons have not
10    participated in the management or operation of more than 4
11    charitable games events conducted by any licensee in the
12    calendar year, and that these persons will receive no
13    remuneration or compensation, directly or indirectly from
14    any source, for participating in the management or
15    operation of the games. Any amendments to this listing must
16    contain an identical sworn statement.
17        (2.2) (Blank).
18        (3) Each license shall state the date, hours and at
19    what locations the licensee is permitted to conduct
20    charitable games.
21        (4) Each licensee shall file a copy of the license with
22    each police department or, if in unincorporated areas, each
23    sheriff's office whose jurisdiction includes the premises
24    on which the charitable games are authorized under the
25    license.
26        (5) The licensee shall prominently display the license

 

 

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1    in the area where the licensee is to conduct charitable
2    games. The licensee shall likewise display, in the form and
3    manner prescribed by the Department, the provisions of
4    Section 9 of this Act.
5        (6) (Blank).
6        (7) Each licensee shall obtain and maintain a bond for
7    the benefit of participants in games conducted by the
8    licensee to insure payment to the winners of such games.
9    Such bond discretionary by the Department and shall be in
10    an amount established by rule by the Department of Revenue.
11    In a county with fewer than 60,000 inhabitants, the
12    Department may waive the bond requirement upon a showing by
13    a licensee that it has sufficient funds on deposit to
14    insure payment to the winners of such games. The bond
15    requirement contained in this paragraph (7) does not apply
16    to player-backed games.
17        (8) A license is not assignable or transferable.
18        (9) Unless the premises for conducting charitable
19    games are provided by a municipality, the Department shall
20    not issue a license permitting a person, firm or
21    corporation to sponsor a charitable games night if the
22    premises for the conduct of the charitable games has been
23    previously used for 8 charitable games nights during the
24    previous 12 months.
25        (10) Auxiliary organizations of a licensee shall not be
26    eligible for a license to conduct charitable games, except

 

 

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1    for auxiliary organizations of veterans organizations as
2    authorized in Section 2.
3        (11) Charitable games must be conducted in accordance
4    with local building and fire code requirements.
5        (12) The licensee shall consent to allowing the
6    Department's employees to be present on the premises
7    wherein the charitable games are conducted and to inspect
8    or test equipment, devices and supplies used in the conduct
9    of the game.
10    Nothing in this Section shall be construed to prohibit a
11licensee that conducts charitable games on its own premises
12from also obtaining a providers' license in accordance with
13Section 5.1. The maximum number of charitable games events that
14may be held in any one premises is limited to 8 charitable
15games events per calendar year; however, this limitation does
16not apply to charitable games events held at a municipal
17building.
18(Source: P.A. 94-986, eff. 6-30-06; 95-228, eff. 8-16-07.)
 
19    (230 ILCS 30/5)  (from Ch. 120, par. 1125)
20    Sec. 5. Providers' License. The Department shall issue a
21providers' license permitting a person, firm or corporation to
22provide premises for the conduct of charitable games. No
23person, firm or corporation may rent or otherwise provide
24premises without having first obtained a license. Applications
25for providers' licenses shall be made in writing in accordance

 

 

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1with Department rules. The Department shall license providers
2of charitable games at a nonrefundable annual fee of $50, or
3nonrefundable triennial license fee of $150. Each providers'
4license is valid for one year from the date of issuance, or 3
5years from date of issuance for a triennial license, unless
6extended, suspended, or revoked by Department action before
7that date. Any extension of a providers' license shall not
8exceed one year. A provider may receive reasonable compensation
9for the provision of the premises. Reasonable expenses shall
10include only those expenses defined as reasonable by rules
11adopted by the Department. A provider, other than a
12municipality, may not provide the same premises for conducting
13more than 8 charitable games nights per year. A provider shall
14not have any interest in any suppliers' business, either direct
15or indirect. A municipality may provide the same premises for
16conducting 16 charitable games nights every Friday, Saturday,
17and Sunday during a 12-month period. No employee, officer, or
18owner of a provider may participate in the management or
19operation of a charitable games event, even if the employee,
20officer, or owner is also a member, volunteer, or employee of
21the charitable games licensee. A provider may not promote or
22solicit a charitable games event on behalf of a charitable
23games licensee or qualified organization. Any qualified
24organization licensed to conduct a charitable game need not
25obtain a providers' license if such games are to be conducted
26on the organization's premises.

 

 

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1(Source: P.A. 94-986, eff. 6-30-06; 95-228, eff. 8-16-07.)
 
2    (230 ILCS 30/5.1)  (from Ch. 120, par. 1125.1)
3    Sec. 5.1. If a licensee conducts charitable games on its
4own premises, the licensee may also obtain a providers' license
5in accordance with Section 5 to allow the licensee to rent or
6otherwise provide its premises to another licensee for the
7conducting of an additional 4 charitable games events. The
8maximum number of charitable games events that may be held at
9any one premises is limited to 8 charitable games events per
10calendar year; however, this limitation does not apply to
11charitable games events held at a municipal building.
12(Source: P.A. 94-986, eff. 6-30-06.)
 
13    (230 ILCS 30/8)  (from Ch. 120, par. 1128)
14    Sec. 8. The conducting of charitable games is subject to
15the following restrictions:
16        (1) The entire net proceeds from charitable games must
17    be exclusively devoted to the lawful purposes of the
18    organization permitted to conduct that game.
19        (2) No person except a bona fide member or employee of
20    the sponsoring organization, or a volunteer recruited by
21    the sponsoring organization, may participate in the
22    management or operation of the game. A person participates
23    in the management or operation of a charitable game when he
24    or she sells admission tickets at the event; sells,

 

 

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1    redeems, or in any way assists in the selling or redeeming
2    of chips, scrip, or play money; participates in the
3    conducting of any of the games played during the event, or
4    supervises, directs or instructs anyone conducting a game;
5    or at any time during the hours of the charitable games
6    event counts, handles, or supervises anyone counting or
7    handling any of the proceeds or chips, scrip, or play money
8    at the event. A person who is present to ensure that the
9    games are being conducted in conformance with the rules
10    established by the licensed organization or is present to
11    insure that the equipment is working properly is considered
12    to be participating in the management or operation of a
13    game. Setting up, cleaning up, selling food and drink, or
14    providing security for persons or property at the event
15    does not constitute participation in the management or
16    operation of the game.
17        Only bona fide members, volunteers as defined in
18    Section 2 of this Act, and employees of the sponsoring
19    organization may participate in the management or
20    operation of the games. Participation in the management or
21    operation of the games is limited to no more than 4
22    charitable games events, either of the sponsoring
23    organization or any other licensed organization, during a
24    calendar year.
25        (3) No person may receive any remuneration or
26    compensation either directly or indirectly from any

 

 

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1    licensed organization source for participating in the
2    management or operation of the game.
3        (4) No single bet at any house-backed game may exceed
4    $10.
5        (5) A bank shall be established on the premises to
6    convert currency into chips, scrip, or other form of play
7    money which shall then be used to play at games of chance
8    which the participant chooses. Chips, scrip, or play money
9    must be permanently monogrammed with the logo of the
10    licensed organization or of the supplier. Each participant
11    must be issued a receipt indicating the amount of chips,
12    scrip, or play money purchased.
13        (6) At the conclusion of the event where house-backed
14    games are played, or when a the participant leaves, he may
15    cash in his chips, scrip, or play money in exchange for
16    currency not to exceed $250 or noncash prizes. Each
17    participant shall sign for any receipt of prizes. The
18    licensee shall provide the Department of Revenue with a
19    listing of all prizes awarded, including the retail value
20    of all prizes awarded.
21        (7) Each licensee shall be permitted to conduct
22    charitable games on not more than 6 4 days each year.
23    Nothing in this Section shall be construed to prohibit a
24    licensee that conducts charitable games on its own premises
25    from also obtaining a providers' license in accordance with
26    Section 7 of this Act.

 

 

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1        (8) Unless the provider of the premises is a
2    municipality, the provider of the premises may not rent or
3    otherwise provide the premises for the conducting of more
4    than 8 charitable games nights per year.
5        (9) A charitable games event is considered to be a
6    one-day event and charitable games may not be played
7    between the hours of 2:00 a.m. and noon.
8        (10) No person under the age of 18 years may play or
9    participate in the conducting of charitable games. Any
10    person under the age of 18 years may be within the area
11    where charitable games are being played only when
12    accompanied by his parent or guardian.
13        (11) No one other than the sponsoring organization of
14    charitable games must have a proprietary interest in the
15    game promoted.
16        (12) Raffles or other forms of gambling prohibited by
17    law shall not be conducted on the premises where charitable
18    games are being conducted.
19        (13) Such games are not expressly prohibited by county
20    ordinance for charitable games conducted in the
21    unincorporated areas of the county or municipal ordinance
22    for charitable games conducted in the municipality and the
23    ordinance is filed with the Department of Revenue. The
24    Department shall provide each county or municipality with a
25    list of organizations licensed or subsequently authorized
26    by the Department to conduct charitable games in their

 

 

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1    jurisdiction.
2        (14) The sale of tangible personal property at
3    charitable games is subject to all State and local taxes
4    and obligations.
5        (15) Each licensee may offer or conduct only the games
6    listed below, which must be conducted in accordance with
7    rules posted by the organization. The organization
8    sponsoring charitable games shall promulgate rules, and
9    make printed copies available to participants, for the
10    following games: (a) roulette; (b) blackjack; (c) poker;
11    (d) pull tabs; (e) craps; (f) bang; (g) beat the dealer;
12    (h) big six; (i) gin rummy; (j) five card stud poker; (k)
13    chuck-a-luck; (l) keno; (m) hold-em poker; and (n)
14    merchandise wheel. A licensee need not offer or conduct
15    every game permitted by law. The conducting of games not
16    listed above is prohibited by this Act.
17        (16) No unlicensed slot machines or
18    coin-in-the-slot-operated devices that allow a participant
19    to play games of chance shall be permitted to be used at
20    the location and during the time at which the charitable
21    games are being conducted.
22        (17) No cards, dice, wheels, or other equipment may be
23    modified or altered so as to give the licensee a greater
24    advantage in winning, other than as provided under the
25    normal rules of play of a particular game.
26        (18) No credit shall be extended to any of the

 

 

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1    participants.
2        (19) (Blank).
3        (20) A supplier may have only one representative
4    present at the charitable games event, for the exclusive
5    purpose of ensuring that its equipment is not damaged.
6        (21) No employee, owner, or officer of a consultant
7    service hired by a licensed organization to perform
8    services at the event including, but not limited to,
9    security for persons or property at the event or services
10    before the event including, but not limited to, training
11    for volunteers or advertising may participate in the
12    management or operation of the games. However, a consultant
13    hired by a licensed organization may attend the event to
14    consult and advise his or her client. Advice and on-site
15    training does not constitute management of the event.
16        (22) (Blank).
17(Source: P.A. 94-986, eff. 6-30-06; 95-228, eff. 8-16-07.)