Illinois General Assembly - Full Text of SB2371
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Full Text of SB2371  98th General Assembly


Rep. Chad Hays

Filed: 5/24/2013





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2    AMENDMENT NO. ______. Amend Senate Bill 2371, AS AMENDED,
3by replacing everything after the enacting clause with the
5    "Section 5. The Video Gaming Act is amended by changing
6Sections 5 and 45 as follows:
7    (230 ILCS 40/5)
8    Sec. 5. Definitions. As used in this Act:
9    "Board" means the Illinois Gaming Board.
10    "Credit" means one, 5, 10, or 25 cents either won or
11purchased by a player.
12    "Distributor" means an individual, partnership,
13corporation, or limited liability company licensed under this
14Act to buy, sell, lease, or distribute video gaming terminals
15or major components or parts of video gaming terminals to or
16from terminal operators.



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1    "Terminal operator" means an individual, partnership,
2corporation, or limited liability company that is licensed
3under this Act and that owns, services, and maintains video
4gaming terminals for placement in licensed establishments,
5licensed truck stop establishments, licensed fraternal
6establishments, or licensed veterans establishments.
7    "Licensed technician" means an individual who is licensed
8under this Act to repair, service, and maintain video gaming
10    "Licensed terminal handler" means a person, including but
11not limited to an employee or independent contractor working
12for a manufacturer, distributor, supplier, technician, or
13terminal operator, who is licensed under this Act to possess or
14control a video gaming terminal or to have access to the inner
15workings of a video gaming terminal. A licensed terminal
16handler does not include an individual, partnership,
17corporation, or limited liability company defined as a
18manufacturer, distributor, supplier, technician, or terminal
19operator under this Act.
20    "Manufacturer" means an individual, partnership,
21corporation, or limited liability company that is licensed
22under this Act and that manufactures or assembles video gaming
24    "Supplier" means an individual, partnership, corporation,
25or limited liability company that is licensed under this Act to
26supply major components or parts to video gaming terminals to



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1licensed terminal operators.
2    "Net terminal income" means money put into a video gaming
3terminal minus credits paid out to players.
4    "Video gaming terminal" means any electronic video game
5machine that, upon insertion of cash, is available to play or
6simulate the play of a video game, including but not limited to
7video poker, line up, and blackjack, as authorized by the Board
8utilizing a video display and microprocessors in which the
9player may receive free games or credits that can be redeemed
10for cash. The term does not include a machine that directly
11dispenses coins, cash, or tokens or is for amusement purposes
13    "Licensed establishment" means any licensed retail
14establishment where alcoholic liquor is drawn, poured, mixed,
15or otherwise served for consumption on the premises, whether
16the establishment operates on a nonprofit or for-profit basis.
17"Licensed establishment" and includes any such establishment
18that has a contractual relationship with an inter-track
19wagering location licensee licensed under the Illinois Horse
20Racing Act of 1975, provided any contractual relationship shall
21not include any transfer or offer of revenue from the operation
22of video gaming under this Act to any licensee licensed under
23the Illinois Horse Racing Act of 1975. Provided, however, that
24the licensed establishment that has such a contractual
25relationship with an inter-track wagering location licensee
26may not, itself, be (i) an inter-track wagering location



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1licensee, (ii) the corporate parent or subsidiary of any
2licensee licensed under the Illinois Horse Racing Act of 1975,
3or (iii) the corporate subsidiary of a corporation that is also
4the corporate parent or subsidiary of any licensee licensed
5under the Illinois Horse Racing Act of 1975. "Licensed
6establishment" does not include a facility operated by an
7organization licensee, an inter-track wagering licensee, or an
8inter-track wagering location licensee licensed under the
9Illinois Horse Racing Act of 1975 or a riverboat licensed under
10the Riverboat Gambling Act, except as provided in this
11paragraph. The changes made to this definition by this
12amendatory Act of the 98th General Assembly are declarative of
13existing law.
14    "Licensed fraternal establishment" means the location
15where a qualified fraternal organization that derives its
16charter from a national fraternal organization regularly
18    "Licensed veterans establishment" means the location where
19a qualified veterans organization that derives its charter from
20a national veterans organization regularly meets.
21    "Licensed truck stop establishment" means a facility (i)
22that is at least a 3-acre facility with a convenience store,
23(ii) with separate diesel islands for fueling commercial motor
24vehicles, (iii) that sells at retail more than 10,000 gallons
25of diesel or biodiesel fuel per month, and (iv) with parking
26spaces for commercial motor vehicles. "Commercial motor



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1vehicles" has the same meaning as defined in Section 18b-101 of
2the Illinois Vehicle Code. The requirement of item (iii) of
3this paragraph may be met by showing that estimated future
4sales or past sales average at least 10,000 gallons per month.
5(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09;
696-1410, eff. 7-30-10; 96-1479, eff. 8-23-10; 97-333, eff.
8    (230 ILCS 40/45)
9    Sec. 45. Issuance of license.
10    (a) The burden is upon each applicant to demonstrate his
11suitability for licensure. Each video gaming terminal
12manufacturer, distributor, supplier, operator, handler,
13licensed establishment, licensed truck stop establishment,
14licensed fraternal establishment, and licensed veterans
15establishment shall be licensed by the Board. The Board may
16issue or deny a license under this Act to any person pursuant
17to the same criteria set forth in Section 9 of the Riverboat
18Gambling Act.
19    (a-5) The Board shall not grant a license to a person who
20has facilitated, enabled, or participated in the use of
21coin-operated devices for gambling purposes or who is under the
22significant influence or control of such a person. For the
23purposes of this Act, "facilitated, enabled, or participated in
24the use of coin-operated amusement devices for gambling
25purposes" means that the person has been convicted of any



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1violation of Article 28 of the Criminal Code of 1961 or the
2Criminal Code of 2012. If there is pending legal action against
3a person for any such violation, then the Board shall delay the
4licensure of that person until the legal action is resolved.
5    (b) Each person seeking and possessing a license as a video
6gaming terminal manufacturer, distributor, supplier, operator,
7handler, licensed establishment, licensed truck stop
8establishment, licensed fraternal establishment, or licensed
9veterans establishment shall submit to a background
10investigation conducted by the Board with the assistance of the
11State Police or other law enforcement. To the extent that the
12corporate structure of the applicant allows, the The background
13investigation shall include any or all of the following as the
14Board deems appropriate or as provided by rule for each
15category of licensure: (i) each beneficiary of a trust, (ii)
16each partner of a partnership, (iii) each member of a limited
17liability company, (iv) and each director and officer of a
18publicly or non-publicly held corporation, (v) each
19stockholder of a non-publicly held corporation, (vi) each
20stockholder of 5% or more of a publicly held corporation, or
21(vii) each stockholder and all stockholders of 5% or more in a
22parent or subsidiary corporation of a video gaming terminal
23manufacturer, distributor, supplier, operator, or licensed
24establishment, licensed truck stop establishment, licensed
25fraternal establishment, or licensed veterans establishment.
26    (c) Each person seeking and possessing a license as a video



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1gaming terminal manufacturer, distributor, supplier, operator,
2handler, licensed establishment, licensed truck stop
3establishment, licensed fraternal establishment, or licensed
4veterans establishment shall disclose the identity of every
5person, association, trust, corporation, or limited liability
6company having a greater than 1% direct or indirect pecuniary
7interest in the video gaming terminal operation for which the
8license is sought. If the disclosed entity is a trust, the
9application shall disclose the names and addresses of the
10beneficiaries; if a corporation, the names and addresses of all
11stockholders and directors; if a limited liability company, the
12names and addresses of all members; or if a partnership, the
13names and addresses of all partners, both general and limited.
14    (d) No person may be licensed as a video gaming terminal
15manufacturer, distributor, supplier, operator, handler,
16licensed establishment, licensed truck stop establishment,
17licensed fraternal establishment, or licensed veterans
18establishment if that person has been found by the Board to:
19        (1) have a background, including a criminal record,
20    reputation, habits, social or business associations, or
21    prior activities that pose a threat to the public interests
22    of the State or to the security and integrity of video
23    gaming;
24        (2) create or enhance the dangers of unsuitable,
25    unfair, or illegal practices, methods, and activities in
26    the conduct of video gaming; or



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1        (3) present questionable business practices and
2    financial arrangements incidental to the conduct of video
3    gaming activities.
4    (e) Any applicant for any license under this Act has the
5burden of proving his or her qualifications to the satisfaction
6of the Board. The Board may adopt rules to establish additional
7qualifications and requirements to preserve the integrity and
8security of video gaming in this State.
9    (f) A non-refundable application fee shall be paid at the
10time an application for a license is filed with the Board in
11the following amounts:
12        (1) Manufacturer..........................$5,000
13        (2) Distributor...........................$5,000
14        (3) Terminal operator.....................$5,000
15        (4) Supplier..............................$2,500
16        (5) Technician..............................$100
17        (6) Terminal Handler..............................$50
18    (g) The Board shall establish an annual fee for each
19license not to exceed the following:
20        (1) Manufacturer.........................$10,000
21        (2) Distributor..........................$10,000
22        (3) Terminal operator.....................$5,000
23        (4) Supplier..............................$2,000
24        (5) Technician..............................$100
25        (6) Licensed establishment, licensed truck stop
26    establishment, licensed fraternal establishment,



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1    or licensed veterans establishment..............$100
2        (7) Video gaming terminal...................$100
3        (8) Terminal Handler..............................$50
4(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
5eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1410, eff. 7-30-10;
697-1150, eff. 1-25-13.)
7    Section 99. Effective date. This Act takes effect upon
8becoming law.".