Illinois General Assembly - Full Text of HB1224
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Full Text of HB1224  98th General Assembly




State of Illinois
2013 and 2014


Introduced , by Rep. Daniel J. Burke


230 ILCS 25/1.1
230 ILCS 25/2  from Ch. 120, par. 1102
230 ILCS 25/2.5 new

    Amends the Bingo License and Tax Act. Removes provisions that place limitations on the aggregate retail value of all prizes or merchandise awarded in any single day of bingo. Removes provisions that place limitations on the price paid for a single card under the license and the price for a single special game card. Provides that the number of bingo days conducted by a licensee under the Act is limited to 2 (instead of one) per week. Provides that no person or organization shall conduct a remote caller bingo game without a remote caller bingo license issued from the Department of Revenue. Sets forth certain restrictions on the conducting of a remote caller bingo game. Sets forth provisions concerning costs, fees, prizes, and proceeds.

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HB1224LRB098 02952 AMC 32967 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 Bingo License and Tax Act is amended by
5changing Sections 1.1 and 2 and by adding Section 2.5 as
7    (230 ILCS 25/1.1)
8    Sec. 1.1. Definitions. For purposes of this Act, the
9following definitions apply:
10    "Bingo" means a game in which each player has a card or
11board for which a consideration has been paid, containing 5
12horizontal rows of spaces, with each row except the central one
13containing 5 figures. The central row has 4 figures with the
14word "free" marked in the center space. "Bingo" includes games
15that otherwise qualify under this paragraph, except for the use
16of cards where the figures are not preprinted but are filled in
17by the players. A player wins a game of bingo by completing a
18preannounced combination of spaces or, in the absence of a
19preannouncement of a combination of spaces, any combination of
205 spaces in a row, vertically, horizontally, or diagonally.
21    "Bingo equipment" means any equipment or machinery
22designed or used for the play of bingo. "Bingo equipment" does
23not include electronic equipment.



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1    "Charitable organization" means an organization or
2institution organized and operated to benefit an indefinite
3number of the public.
4    "Department" means the Department of Revenue.
5    "Educational organization" means an organization or
6institution organized and operated to provide systematic
7instruction in useful branches of learning by methods common to
8schools and institutions of learning which compare favorably in
9their scope and intensity with the course of study presented in
10tax-supported schools.
11    "Fraternal organization" means an organization of persons
12having a common interest that is organized and operated
13exclusively to promote the welfare of its members and to
14benefit the general public on a continuing and consistent
15basis, including but not limited to ethnic organizations.
16    "Holiday" means any of the holidays listed in Section 17 of
17the Promissory Note and Bank Holiday Act.
18    "Labor organization" means an organization composed of
19labor unions or workers organized with the objectives of
20betterment of the conditions of those engaged in such pursuit
21and the development of a higher degree of efficiency in their
22respective occupations.
23    "Licensed organization" means a qualified organization
24that has obtained a license to conduct bingo in conformance
25with the provisions of this Act.
26    "Limited license" means a license issued to an organization



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1that is not a licensed organization, but that is otherwise
2eligible for a regular license to conduct bingo. A limited
3license authorizes the conduct of bingo at up to 2 indoor or
4outdoor festivals during the calendar year for which the
5license is issued for a maximum of 5 consecutive days on each
7    "Non-profit organization" means an organization or
8institution organized and conducted on a not-for-profit basis
9with no personal profit inuring to anyone as a result of the
11    "Organization" means a corporation, agency, partnership,
12association, firm, business or other entity consisting of 2 or
13more persons joined by a common interest or purpose.
14    "Person" means any natural individual, corporation,
15partnership, limited liability company, organization (as
16defined in this Section), licensee under this Act, or
18    "Provider" means any person or organization, except a city,
19village, or incorporated town that owns or leases premises to
20an organization for the conduct of bingo.
21    "Regular license" means a license authorizing its holder to
22conduct one session of bingo per week on the date and at the
23time and location stated on the license.
24    "Religious organization" means any church, congregation,
25society, or organization founded for the purpose of religious



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1    "Remote caller bingo game" means a game of bingo in which
2(1) the numbers or symbols on randomly drawn plastic balls are
3announced by a natural person present at the site where the
4live game is conducted and (2) the organization conducting the
5game of bingo uses audio and video technology to link any of
6its in-state facilities for the purpose of transmitting the
7remote calling of a live bingo game from a single location to
8multiple locations owned, leased, or rented by that
10    "Senior citizens organization" means an organization or
11association comprised of members of which substantially all are
12individuals who are senior citizens, as defined in the Illinois
13Act on the Aging, the primary purpose of which is to promote
14the welfare of its members.
15    "Special games" means bingo games that may be designated as
16such, played a maximum of 5 times during a bingo session and
17are distinguished from regular games only by the maximum price
18that may be charged for the bingo cards used.
19    "Special permit" means the ability of a licensee who
20currently holds a license to be granted a permit to conduct
21bingo at other premises or on other days not exceeding 5
22consecutive days.
23    "Supplier" means any person, firm, or corporation that
24sells, leases, or distributes to any organization licensed to
25conduct bingo or to any licensed bingo supplier, cards, boards,
26sheets, markers, pads and any other supplies, devices and



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1equipment designed for use in the play of bingo.
2    "Veterans' organization" means an organization comprised
3of members of which substantially all are individuals who are
4veterans or spouses, widows, or widowers of veterans, the
5primary purpose of which is to promote the welfare of its
6members and to provide assistance to the general public in such
7a way as to confer a public benefit.
8    "Volunteer" means a person recruited by an organization who
9voluntarily performs services at a bingo event, including
10participation in the management or operation of a game.
11    "Youth athletic organization" means an organization having
12as its exclusive purpose the promotion and provision of
13athletic activities for youth aged 18 and under.
14(Source: P.A. 95-228, eff. 8-16-07.)
15    (230 ILCS 25/2)  (from Ch. 120, par. 1102)
16    Sec. 2. The conducting of bingo is subject to the following
18        (1) The entire net proceeds from bingo play must be
19    exclusively devoted to the lawful purposes of the
20    organization permitted to conduct that game.
21        (2) (Blank).
22        (2.5) No person except a bona fide member or employee
23    of the sponsoring organization may participate in the
24    management or operation of bingo.
25        (3) No person may receive any remuneration or profit



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1    for participating in the management or operation of the
2    game, except that if an organization licensed under this
3    Act is associated with a school or other educational
4    institution, that school or institution may reduce tuition
5    or fees for a designated pupil based on participation in
6    the management or operation of the game by any member of
7    the organization. The extent to which tuition and fees are
8    reduced shall relate proportionately to the amount of time
9    volunteered by the member, as determined by the school or
10    other educational institution.
11        (4) (Blank). The aggregate retail value of all prizes
12    or merchandise awarded in any single day of bingo may not
13    exceed $2,250, except that in adjoining counties having
14    200,000 to 275,000 inhabitants each, and in counties which
15    are adjacent to either of such adjoining counties and are
16    adjacent to a total of not more than 2 counties in this
17    State, and in any municipality having 2,500 or more
18    inhabitants and within one mile of such adjoining and
19    adjacent counties having less than 25,000 inhabitants, 2
20    additional bingo games may be conducted after the $2,250
21    limit has been reached. The prize awarded for any one game,
22    including any game conducted after reaching the $2,250
23    limit as authorized in this paragraph (4), may not exceed
24    $500 cash or its equivalent.
25        (5) The number of games, including regular and special
26    games, may not exceed 25 in any one day, except that this



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1    restriction on the number of games shall not apply to bingo
2    conducted at the Illinois State Fair or any county fair
3    held in Illinois.
4        (6) The price paid for a single card under the license
5    may not exceed $1 and such card is valid for all regular
6    games on that day of bingo. A maximum of 5 special games
7    may be held on each bingo day, except that this restriction
8    on the number of special games shall not apply to bingo
9    conducted at the Illinois State Fair or any county fair
10    held in Illinois. The price for a single special game card
11    may not exceed 50 cents.
12        (7) The number of bingo days conducted by a licensee
13    under this Act, including any remote caller bingo games, is
14    limited to 2 one per week, except as follows:
15        (i) Bingo may be conducted in accordance with the terms
16        of a special operator's permit or limited license
17        issued under subdivision (7) or (8) of Section 1.3.
18        (ii) Bingo may be conducted at the Illinois State Fair
19        or any county fair held in Illinois under subdivision
20        (6) of Section 1.3.
21        (iii) A licensee which cancels a day of bingo because
22        of inclement weather or because the day is a holiday or
23        the eve of a holiday may, after giving notice to the
24        Department, conduct bingo on an additional date which
25        falls on a day of the week other than the day
26        authorized under the license.



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1        (8) A licensee may rent a premises on which to conduct
2    bingo only from an organization which is licensed as a
3    provider of premises or exempt from license requirements
4    under this Act. If the organization providing the premises
5    is a metropolitan exposition, auditorium, and office
6    building authority created by State law, a licensee may
7    enter into a rental agreement with the organization
8    authorizing the licensee and the organization to share the
9    gross proceeds of bingo games; however, the organization
10    shall not receive more than 50% of the gross proceeds.
11        (9) No person under the age of 18 years may play or
12    participate in the conducting of bingo. Any person under
13    the age of 18 years may be within the area where bingo is
14    being played only when accompanied by his parent or
15    guardian.
16        (10) The promoter of bingo games must have a
17    proprietary interest in the game promoted.
18        (11) Raffles or other forms of gambling prohibited by
19    law shall not be conducted on the premises where bingo is
20    being conducted, except that pull tabs and jar games
21    conducted under the Illinois Pull Tabs and Jar Games Act
22    may be conducted on the premises where bingo is being
23    conducted. Prizes awarded in pull tabs and jar games shall
24    not be included in the bingo prize limitation.
25        (12) Organizations may be issued a special permit or
26    limited license no more than 2 times in any year. An



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1    organization holding a special operator's permit or a
2    limited license may, as one of the occasions allowed by
3    such permit or license, conduct bingo for a maximum of 2
4    consecutive days. If an organization conducts bingo
5    pursuant to a limited license or special permit, then the
6    number of games played during each day may exceed 25, and
7    regular game cards need not be valid for all regular games.
8    If only noncash prizes are awarded during such occasions,
9    the prize limits stated in subdivision (4) of this Section
10    shall not apply, provided that the retail value of noncash
11    prizes for any single game shall not exceed $150.
12(Source: P.A. 95-228, eff. 8-16-07.)
13    (230 ILCS 25/2.5 new)
14    Sec. 2.5. Remote caller bingo license; restrictions.
15    (a) No person or organization may conduct a remote caller
16bingo game without a remote caller bingo license. The remote
17caller bingo game license must list all of the locations
18approved by the Department to conduct remote caller bingo games
19under that license. The Department shall issue qualifications
20for a remote caller bingo license and set forth an application
22    (b) The conducting of a remote caller bingo game is subject
23to the following restrictions:
24        (1) The drawing of each ball bearing a number or symbol
25    by the natural person calling the game shall be visible to



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1    all players as the ball is drawn, including through a
2    simultaneous live video feed at remote locations at which
3    players may participate in the game. The audio or video
4    technology used to link the facilities may include cable,
5    Internet, satellite, broadband, or telephone technology,
6    or any other means of electronic transmission that ensures
7    the secure, accurate, and simultaneous transmission of the
8    announcement of numbers or symbols in the game from the
9    location at which the game is called by a natural person to
10    the remote location or locations at which players may
11    participate in the game.
12        (2) The remote caller bingo licensee or members of its
13    organization shall not receive a profit, wage, or salary
14    from the remote caller bingo game.
15        (3) The remote caller bingo game shall be operated and
16    staffed only by the remote caller bingo licensee or members
17    of its organization with the exception of administrative,
18    managerial, technical, financial, or security personnel
19    who are employed by the remote caller bingo licensee at a
20    location participating in the remote caller bingo game.
21    Notwithstanding any other provision of law, an exclusive
22    agreement or other agreement between the remote caller
23    bingo licensee and other entities or persons to provide
24    services in the administration, management, or conduct of
25    the game shall not be considered a violation of the
26    prohibition against holding a legally cognizable financial



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1    interest in the conduct of the remote caller bingo game by
2    persons or entities other than the charitable
3    organization.
4        (4) The remote caller bingo licensee shall not have
5    overhead costs exceeding 25% of gross sales, except that
6    the limitations of this item (4) shall not apply to
7    one-time, non-recurring capital acquisitions. For purposes
8    of this item (4), overhead costs include, but are not
9    limited to, amounts paid for rent and equipment leasing and
10    the reasonable fees authorized to be paid to
11    administrative, managerial, technical, financial, and
12    security personnel employed by the remote caller bingo
13    licensee.
14        For the purpose of keeping its overhead costs below 25%
15    of gross sales, a remote caller bingo licensee may elect to
16    deduct all or a portion of the fees paid to financial
17    institutions for the use and processing of credit card
18    sales from the amount of gross revenues awarded for prizes.
19    These deducted fees for the use and processing of credit
20    card sales shall not be considered overhead costs.
21    Additionally, fees paid to financial institutions for the
22    use and processing of credit card sales shall not be
23    deducted from the proceeds retained by the charitable
24    organization.
25        (5) No person shall be allowed to participate in a
26    remote caller bingo game unless the person is physically



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1    present at the time and place where the remote caller bingo
2    game is being conducted. A person shall be deemed to be
3    physically present at the place where the remote caller
4    bingo game is being conducted if he or she is present at
5    any of the locations participating in the remote caller
6    bingo game in accordance with this Section.
7        (6) An organization shall only co-sponsor a remote
8    caller bingo game with one or more other organizations that
9    share the same type of membership category. Unaffiliated
10    organizations shall be limited to a maximum of 10 locations
11    for a remote caller bingo game and a maximum of 2 remote
12    caller bingo games per week.
13        (7) Every remote caller bingo game shall be played
14    until a winner is declared. The declared winner of a remote
15    caller bingo game shall provide his or her identifying
16    information and a mailing address to the onsite manager of
17    the remote caller bingo game. Prizes shall be paid only by
18    check if the prize money exceeds $999.99. The remote caller
19    bingo licensee may issue a check to the winner at the time
20    of the game or mail a check to the declared winner by
21    certified mail, return receipt requested, within 10 days
22    after the remote caller bingo game.
23        (8) The value of prizes awarded during the conduct of
24    any remote caller bingo game shall not exceed 40% of the
25    gross receipts for that game. If an authorized organization
26    elects to deduct fees paid for the use and processing of



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1    credit card sales from the amount of gross revenues for
2    that game awarded for prizes, then the maximum amount of
3    gross revenues that may be awarded for prizes shall not
4    exceed 40% of the gross receipts for that game, less the
5    amount of redirected fees paid for the use and processing
6    of credit card sales.
7        (9) All prize money exceeding State and federal
8    exemption limits on prize money shall be subject to income
9    tax reporting and withholding requirements under
10    applicable State and federal laws and regulations and those
11    reports and withholding shall be forwarded, within 10
12    business days after the remote caller bingo game, to the
13    appropriate State or federal agency on behalf of the
14    winner. A report shall accompany the amount withheld
15    identifying the person on whose behalf the money is being
16    sent. Any game interrupted by a transmission failure,
17    electrical outage, or act of God shall be considered void
18    in the location that was affected and the organization's
19    members, affiliates, and the State shall be held harmless.
20    A refund for a canceled game or games shall be provided to
21    the purchasers.
22        (10) The entire net proceeds, comprised of at least 35%
23    of the gross proceeds, from the remote caller bingo game
24    must be exclusively devoted to the lawful purposes of the
25    organization permitted to conduct that game.