State of Illinois
90th General Assembly
Legislation

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90_SB0494

      New Act
      20 ILCS 301/20-20
      30 ILCS 105/5.449 new
      720 ILCS 5/28-1           from Ch. 38, par. 28-1
      720 ILCS 5/28-1.1         from Ch. 38, par. 28-1.1
      720 ILCS 5/28-3           from Ch. 38, par. 28-3
          Creates the Video Gaming Act.  Provides that the Illinois
      Department of Revenue shall be responsible for administration
      and enforcement of laws relating to video  gaming  terminals.
      Amends the Alcoholism and Other Drug Abuse and Dependency Act
      to  create  a  program  for education, training, and research
      concerning the problem of compulsive  gambling.   Amends  the
      Gambling  Article  of the Criminal Code to make corresponding
      changes.  Effective January 1, 1998.
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                                               LRB9001574LDpk
 1        AN ACT in relation to games  of  chance,  amending  named
 2    Acts.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 1.  Short title.  This Act may be  cited  as  the
 6    Video Gaming Act.
 7        Section 5.  Definitions.  As used in this Act:
 8        "Credit"  means 5, 10 or 25 cents either won or purchased
 9    by a player.
10        "Department" means the Illinois Department of Revenue.
11        "Distributor"  means  an   individual,   partnership   or
12    corporation  licensed  under this Act to buy, sell, lease, or
13    distribute video gaming terminals to terminal operators.
14        "Terminal operator" means an individual,  partnership  or
15    corporation  that  is  licensed under this Act and that owns,
16    services, and maintains video gaming terminals for  placement
17    in licensed establishments.
18        "Manufacturer"   means  an  individual,  partnership,  or
19    corporation  that  is  licensed  under  this  Act  and   that
20    manufactures or assembles video gaming terminals.
21        "Net terminal income" means money put into a video gaming
22    terminal minus credits paid out to players.
23        "Video  gaming  terminal" means any electronic video game
24    machine that, upon insertion of cash, is available to play or
25    simulate the play of a video game, including but not  limited
26    to  video  poker,  keno,  and  blackjack,  authorized  by the
27    Department utilizing a video display and  microprocessors  in
28    which  the  player may receive free games or credits that can
29    be redeemed for cash.  The term does not  include  a  machine
30    that directly dispenses coins, cash, or tokens.
31        "Licensed  establishment" means: (i) the location where a
                            -2-                LRB9001574LDpk
 1    qualified fraternal  organization  or  a  qualified  veterans
 2    organization under the Charitable Games Act, that derives its
 3    charter  from  a national fraternal or veterans organization,
 4    and that has received a charitable  games  license  from  the
 5    Illinois  Department of Revenue for the conduct of charitable
 6    games is licensed to conduct those charitable games (ii)  any
 7    licensed  retail  establishment  where  alcoholic  liquor  is
 8    drawn,  poured,  mixed or otherwise served for consumption on
 9    the  premises;  and  (iii)  any  racing  facility  at   which
10    pari-mutuel  wagering  is  conducted under the Illinois Horse
11    Racing Act of 1975 and  any  location  at  which  pari-mutuel
12    wagering  is  conducted  by  an inter-track wagering location
13    licensee under the Illinois Horse Racing Act of 1975.
14        Section   10.  Licensing   and    registration.     Every
15    individual,   corporation,   contractor,   subcontractor,  or
16    partnership offering  a  licensee  goods  or  services  on  a
17    regular  basis  that  directly  relate  to  the  manufacture,
18    modification,  distribution, sale, operation, maintenance, or
19    security of video gaming  terminals  shall  be  licensed  and
20    registered pursuant to rules of the Department.
21        Section   15.  Minimum  requirements  for  licensing  and
22    registration.  Every video gaming terminal offered  for  play
23    shall  first  be tested and approved pursuant to the rules of
24    the Department, and each video  gaming  terminal  offered  in
25    this  State for play shall conform to an approved model.  The
26    Department may contract with an  independent  outside  vendor
27    for  the  examination of video gaming machines and associated
28    equipment as required by this Section.  Each  approved  model
29    shall, at a minimum, meet the following criteria:
30             (1)  It  must conform to all requirements of federal
31        law and regulations,  including  FCC  Class  A  Emissions
32        Standards.
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 1             (2)  It  must theoretically pay out a mathematically
 2        demonstrable percentage of all amounts played, which must
 3        not be less than 80%.  Video gaming terminals that may be
 4        affected by skill must meet this standard  when  using  a
 5        method  of  play that will provide the greatest return to
 6        the player over a period of continuous play.
 7             (3)  It must  use  a  random  selection  process  to
 8        determine the outcome of each play of a game.  The random
 9        selection process must meet 99% confidence limits using a
10        standard  chi-squared  test  for (randomness) goodness of
11        fit.
12             (4)  It must display an accurate  representation  of
13        the game outcome.
14             (5)  It  must  not automatically alter pay tables or
15        any function  of  the  video  gaming  terminal  based  on
16        internal computation of hold percentage.
17             (6)  It  must  exhibit  total immunity to human body
18        electrostatic discharges on all player-exposed areas.
19             (7)  The  random   number   generator   and   random
20        selection  process  must be impervious to influences from
21        outside  the  video  gaming   terminal   and   must   use
22        appropriate communication protocols to protect the random
23        number   generator  and  random  selection  process  from
24        influence by affiliated equipment, such  as  the  central
25        site monitoring equipment.
26             (8)  It  must be capable of detecting and displaying
27        the following conditions during idle states or on demand:
28        power reset; door open; and door just closed.
29             (9)  The  program  residing  in  the  video   gaming
30        terminal  must  be  contained in a storage medium that is
31        not  alterable  through  any  use  of  the  circuitry  or
32        programming of the video gaming terminal itself.
33             (10)  It must have the capacity to display  complete
34        play  history  (outcome, intermediate play steps, credits
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 1        available, bets placed, credits paid and  credits  cashed
 2        out)  for  the most recent game played and one game prior
 3        thereto.
 4             (11)  The  control  program  must  check   for   any
 5        corruption  of  random  access  memory locations used for
 6        crucial video gaming terminal  functions  including,  but
 7        not  limited  to,  information pertaining to the play and
 8        final  outcome  of  the  2  prior  games,  random  number
 9        generator outcome, credits available for  play,  and  any
10        error  states.   These  memory  areas must be checked for
11        corruption following game initiation but prior to display
12        of the game outcome to  the  player.   Detection  of  any
13        uncorrectable  corruption  shall  be  deemed to be a game
14        malfunction and must result in a tilt condition.
15             (12)  The theoretical payback percentage of a  video
16        gaming  terminal  must  not  be  capable of being changed
17        without making a hardware or software change in the video
18        gaming terminal.
19             (13)  Video gaming terminals  must  be  designed  so
20        that  replacement of parts or modules required for normal
21        maintenance  does  not  necessitate  replacement  of  the
22        electromechanical meters.
23             (14)  Video   gaming   terminals   must   have    an
24        electronically  stored digital meter of at least 3 digits
25        for the number of plays since power on and the number  of
26        plays  since  door  closure.   When the maximum value has
27        been reached, the meters must remain at that value  until
28        reset  by occurrence of the appropriate event.  The video
29        gaming terminal must  provide  the  means  for  on-demand
30        display of the stored information.
31             (15)  Electronically    stored   meter   information
32        required by this Section must be preserved for a  minimum
33        of 72 hours after a power loss to the service.
34             (16)  Collectible  credits  may  be accumulated from
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 1        wins or from approved  currency  acceptors.   Collectible
 2        credits  may  be  accumulated  directly from coin or bill
 3        acceptance if the video gaming terminal uses  a  coin  or
 4        bill acceptor.
 5             (17)  It  shall  have accounting software that keeps
 6        an electronic record that includes, but  is  not  limited
 7        to,  the  following:  total  cash inserted into the video
 8        gaming terminal; the value of winning tickets claimed  by
 9        players;  the total credits played; and the total credits
10        awarded by a video gaming terminal.
11             (18)  It   shall   be   linked   under   a   central
12        communications system on a  "dial-up"  basis  to  provide
13        auditing   program   information   as   approved  by  the
14        Department. In no event  may  the  communications  system
15        approved  by  the  Department limit participation to only
16        one manufacturer of video gaming terminals by either  the
17        cost  in implementing the necessary program modifications
18        to communicate or the inability to communicate  with  the
19        central communications system.
20        Section  20.  Direct  dispensing of receipt tickets only.
21    A video gaming terminal  may  not  directly  dispense  coins,
22    cash,  tokens,  or  any  other  article  of exchange or value
23    except for receipt tickets or other products approved by  the
24    Department.    Tickets  shall  be  dispensed  by pressing the
25    ticket dispensing button on the video gaming terminal at  the
26    end  of  one's  turn  or play.  The ticket shall indicate the
27    total amount of credits and the cash award,  and  the  player
28    shall  turn  in  this ticket to the appropriate person at the
29    licensed establishment to receive the cash award.   The  cost
30    of  the  credit  shall be 5 cents, 10 cents, or 25 cents, and
31    the maximum wager played per game shall  not  exceed  $2.  No
32    cash award for the maximum wager on any individual game shall
33    exceed $500.
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 1        Section 25.  Restriction of licensees.
 2        (a)  Manufacturer.   A  person  may  not be licensed as a
 3    manufacturer of a video gaming terminal  in  Illinois  unless
 4    the  person  has  a valid manufacturer's license issued under
 5    this  Act.   A  manufacturer  may  only  sell  video   gaming
 6    terminals  for  use  in  Illinois  to  persons having a valid
 7    distributor's license.
 8        (b)  Distributor.   A  person  may  not  sell,   service,
 9    distribute,  lease,  or  market  a  video  gaming terminal in
10    Illinois unless the person has a valid distributor's  license
11    issued  under  this  Act.   A distributor may only sell video
12    gaming terminals for use in  Illinois  to  persons  having  a
13    valid distributor's or terminal operator's license.
14        (c)  Terminal  operator.   A person may not own, service,
15    maintain, lease, or place a video gaming terminal  unless  he
16    or  she  has a valid terminal operator's license issued under
17    this Act.  A terminal operator may only  place  video  gaming
18    terminals for use in Illinois in licensed establishments.
19        (d)  Licensed establishment.
20             (1)  This   paragraph   (1)   applies   to  licensed
21        establishments where a qualified  fraternal  organization
22        or a qualified veterans organization under the Charitable
23        Games  Act  that  derives  its  charter  from  a national
24        fraternal or veterans organization and that has  received
25        a  charitable  games license from the Illinois Department
26        of  Revenue  for  the  conduct  of  charitable  games  is
27        licensed to conduct  those  charitable  games.   A  valid
28        charitable   games   license,   issued  by  the  Illinois
29        Department of Revenue for the conduct of charitable games
30        pursuant to the Charitable Games Act shall be prima facie
31        evidence of compliance with the licensing requirements of
32        this Act.  No video gaming terminal may be placed in  any
33        licensed  establishment  unless the owner or agent of the
34        owner of the licensed establishment has  entered  into  a
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 1        written  use  agreement  with  the  terminal operator for
 2        placement of the terminals.  A copy of the use  agreement
 3        shall  be  on  file  in  the terminal operator's place of
 4        business and  available  for  inspection  by  individuals
 5        authorized  by the Department.  No licensed establishment
 6        to which this paragraph (1) applies may have more than  5
 7        video  gaming  terminals  on  its  premises  at any time,
 8        unless otherwise authorized by the Department.
 9             (2) This paragraph (2) applies  to  licensed  retail
10        establishments  where  alcoholic liquor is drawn, poured,
11        mixed,  or  otherwise  served  for  consumption  on   the
12        premises.  A  valid  liquor  license shall be prima facie
13        evidence of compliance with the licensing requirements of
14        this Act.  No video gaming terminal may be placed in  any
15        licensed  establishment  unless the owner or agent of the
16        owner of the licensed establishment has  entered  into  a
17        written  use  agreement  with  the  terminal operator for
18        placement of the terminals.  A copy of the use  agreement
19        shall  be  on  file  in  the terminal operator's place of
20        business and  available  for  inspection  by  individuals
21        authorized  by the Department.  No licensed establishment
22        to which this paragraph (2) applies may have more than  3
23        video  gaming  terminals  on  its  premises  at any time,
24        unless otherwise authorized by the Department.
25             (3)  This  paragraph   (3)   applies   to   licensed
26        establishments  that are racing facilities or inter-track
27        wagering locations  licensed  under  the  Illinois  Horse
28        Racing  Act  of  1975.   A license to conduct pari-mutuel
29        wagering under that Act shall be prima facie evidence  of
30        compliance  with  the licensing requirements of this Act.
31        No video gaming terminal may be placed  in  any  licensed
32        establishment  unless  the owner or agent of the owner of
33        the licensed establishment has entered into a written use
34        agreement with the terminal operator for placement of the
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 1        terminals.  A copy of the use agreement shall be on  file
 2        in   the   terminal  operator's  place  of  business  and
 3        available for inspection by individuals authorized by the
 4        Department.  No racing facility to which  this  paragraph
 5        (3)  applies may have more than 40 video gaming terminals
 6        on its premises at any time, unless otherwise  authorized
 7        by  the  Department, and no inter-track wagering location
 8        to which this paragraph (3) applies may have more than 10
 9        video gaming terminals  on  its  premises  at  any  time,
10        unless otherwise authorized by the Department.
11        (e)  Residency  requirement.   Each licensed distributor,
12    terminal operator, and owner of a licensed establishment must
13    be an Illinois resident.     However,  if  an  out  of  state
14    distributor,  terminal  operator,  or  owner  of  a  licensed
15    establishment  has  performed  its respective business within
16    Illinois for at least 24 months prior to the  effective  date
17    of  this  Act,  the  out  of state person may be eligible for
18    licensing under this Act.
19        (f)  Use of term "casino".  No licensee  under  this  Act
20    shall use the word "casino", or any similar derivation of the
21    word,  to  describe a video gaming terminal or as the name or
22    any part of the name of a licensed establishment or a portion
23    thereof where a video gaming terminal is located, or  in  any
24    advertising  or  promotions conducted by individuals involved
25    with video gaming terminals.
26        (g)  Financial interest restrictions.
27             (1)  Except where a substantial interest has existed
28        between a manufacturer and an operator for  a  period  of
29        not  less  than  24 months prior to the effective date of
30        this  Act,  no  licensed  manufacturer,  distributor,  or
31        terminal operator of video gaming terminals may:
32                  (A)  Have a substantial interest in  any  other
33             licensed business operating in whole or in part at a
34             different marketing level.
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 1                  (B)  Allow  any  of  its officers, or any other
 2             person with a substantial interest in that business,
 3             to  have  a  substantial  interest  in  a   licensed
 4             business   operating  in  whole  or  in  part  at  a
 5             different marketing level.
 6                  (C)  Employ any person in any capacity or allow
 7             any person to represent the business in any  way  if
 8             that  person  is  also employed by or represents any
 9             other of these businesses operating in whole  or  in
10             part at a different marketing level.
11                  (D)  Allow   any   other  of  these  businesses
12             operating  in  whole  or  in  part  at  a  different
13             marketing level or any  person  with  a  substantial
14             interest  therein  to have a substantial interest in
15             it.
16             (2)  As used in this  subsection  (g),  "substantial
17        interest"  in  an  organization, association, or business
18        means:
19                  (A)  When,   with    respect    to    a    sole
20             proprietorship,  an individual or his or her marital
21             community  owns,  operates,  manages,  or  conducts,
22             directly   or    indirectly,    the    organization,
23             association, or business, or any part thereof;
24                  (B)  When,  with  respect to a partnership, the
25             individual or his or her marital community shares in
26             any of the profits  or  potential  profits,  of  the
27             partnership activities;
28                  (C)  When,  with  respect  to a corporation, an
29             individual or his or her spouse  is  an  officer  or
30             director  or  the  individual  or his or her marital
31             community is a holder, directly or beneficially,  of
32             5% or more of any class of stock of the corporation;
33                  (D)  When,  with respect to an organization not
34             covered in (A), (B), or (C) of this subsection  (g),
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 1             an  individual or his or her spouse is an officer or
 2             manages the business affairs or  the  individual  or
 3             his  or  her  marital  community  is the owner of or
 4             otherwise controls 10% or more of the assets of  the
 5             organization; or
 6                  (E)  When  an  individual or his or her marital
 7             community furnishes  5%  or  more  of  the  capital,
 8             whether   in  cash,  goods,  or  services,  for  the
 9             operation   of   any   business,   association,   or
10             organization during any calendar year.
11        (h)  Limits on operators.  Beginning one year  after  the
12    effective  date  of  this  Act,  no  video  lottery  terminal
13    operator  may  have  in  operation  more than 5% of the total
14    video gaming terminals in operation.
15        Section 30.  Multiple types of  licenses  prohibited.   A
16    video  gaming  terminal manufacturer may not be licensed as a
17    video gaming terminal distributor or operator or own, manage,
18    or control a licensed establishment, and  shall  be  licensed
19    only  to  sell  to  distributors.   A  video  gaming terminal
20    distributor may not be licensed as a  video  gaming  terminal
21    manufacturer  or  operator  or  own,  manage,  or  control  a
22    licensed  establishment,  and  shall  only  contract  with  a
23    licensed terminal operator. An owner or manager of a licensed
24    establishment  may not be licensed as a video gaming terminal
25    manufacturer,  distributor,  or  operator,  and  shall   only
26    contract  with  a licensed operator to place and service this
27    equipment.  The prohibitions contained  in  this  Section  30
28    shall  not  apply  where a substantial interest as defined in
29    Section 25 of this Act has existed between a manufacturer and
30    an operator for a period of not less than 24 months prior  to
31    the effective date of this Act.
32        Section 35.  Display of license; confiscation; violation.
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 1    Each   video   gaming  terminal  shall  be  licensed  by  the
 2    Department before placement or operation on the premises of a
 3    licensed establishment.  Each machine shall have the  license
 4    prominently  displayed  thereon.  Any  licensed establishment
 5    used for the conduct of gambling games in violation  of  this
 6    Act  shall  be  considered  a  gambling place in violation of
 7    Section 28-3 of the Criminal Code of  1961.   Every  gambling
 8    device  found  in a licensed establishment operating gambling
 9    games in violation of this Act shall be subject  to  seizure,
10    confiscation,  and destruction as provided in Section 28-5 of
11    the Criminal Code of 1961.
12        Section  40.  Video  gaming  terminal   use   by   minors
13    prohibited.   No  licensee  shall  cause or permit any person
14    under the age of 21 years to  use  or  play  a  video  gaming
15    terminal.   Any licensee who knowingly permits a person under
16    the age of 21 years to use or play a video gaming terminal is
17    guilty of a business offense and shall be fined an amount not
18    to exceed $5,000.
19        Section 45.  Issuance of license.
20        (a)  The burden is upon each applicant to demonstrate his
21    or her suitability for licensure.  Each video gaming terminal
22    manufacturer,    distributor,    operator,    and    licensed
23    establishment shall be licensed by the Department before  any
24    video  gaming  terminal  is  distributed, sold, or placed for
25    public use in this State. The  Department  may  not  issue  a
26    license  under this Act to any person who, within 10 years of
27    the date of the application, has been convicted of  a  felony
28    under  the laws of this State, any other state, or the United
29    States or to any firm or corporation in which such  a  person
30    is an officer, director, or managerial employee.
31        (b)  A  non-refundable  application  fee shall be paid at
32    the time an application for  a  license  is  filed  with  the
                            -12-               LRB9001574LDpk
 1    Department in the following amounts:
 2        (1)  Video gaming terminal
 3          manufacturer..............................      $10,000
 4        (2)  Video gaming terminal
 5          distributor...............................       $5,000
 6        (3)  Video gaming terminal
 7          operator..................................       $2,500
 8        (c)  The  Department  shall  establish  an annual fee for
 9    each license not to exceed the following:
10        (1)  Video gaming terminal
11          manufacturer..............................      $10,000
12        (2)  Video gaming terminal
13          distributor...............................      $10,000
14        (3)  Video gaming terminal
15          operator..................................       $5,000
16        (4)  Video gaming terminal
17          location..................................         $100
18        (5)  Video gaming terminal..................         $100
19        Section 50.  Distribution of license  fees.   Twenty-five
20    percent  of  all  fees  collected  under  Section 45 shall be
21    deposited in the Compulsive  Gambling  Fund.   The  remaining
22    amount shall be deposited in the General Revenue Fund for the
23    administering  this  Act  or  as  otherwise determined by the
24    General Assembly.  All  licenses  issued  by  the  Department
25    under this Act are renewable annually unless sooner cancelled
26    or   terminated.    No  license  issued  under  this  Act  is
27    transferable or assignable.
28        Section 55.  Precondition for Licensed Establishment.
29        (a)  In all cases of application by a qualified fraternal
30    or veterans organization as a licensed establishment:
31             (1)  Each licensed qualified fraternal  or  veterans
32        organization   establishment   shall   possess   a  valid
                            -13-               LRB9001574LDpk
 1        charitable  games  license   issued   by   the   Illinois
 2        Department   of   Revenue   in  effect  at  the  time  of
 3        application for and issuance of a video  gaming  terminal
 4        license  and at all times thereafter during which a video
 5        gaming terminal is made available to the public for  play
 6        at that location.
 7             (2)  Except  as otherwise specifically authorized by
 8        the  Department,  no  licensed  qualified  fraternal   or
 9        veterans organization establishment shall be licensed for
10        more  than  5  video  gaming  terminals  for  any  single
11        license.
12        (b)  In   all   cases   of   application   by   a  retail
13    liquor-serving establishment as a licensed establishment:
14             (1)  Each  licensed   liquor-serving   establishment
15        shall  possess  a  valid  liquor  license  issued  by the
16        Illinois Liquor Control Commission in effect at the  time
17        of  application  for  and  issuance  of  a  video  gaming
18        terminal license and at all times thereafter during which
19        a  video  gaming terminal is made available to the public
20        for play at that location.
21             (2)  Except as otherwise specifically authorized  by
22        the  Department, no licensed liquor-serving establishment
23        shall be licensed for more than 3 video gaming  terminals
24        for any single license.
25        (c)  In  all  cases  of  application by a licensed racing
26    facility or  inter-track  wagering  location  as  a  licensed
27    establishment:
28             (1)  Each  licensed  racing  facility or inter-track
29        wagering location establishment  shall  possess  a  valid
30        license  under  the  Illinois Horse Racing Act of 1975 in
31        effect at the time of application for and issuance  of  a
32        video gaming terminal license and at all times thereafter
33        during which a video gaming terminal is made available to
34        the public for play at that location.
                            -14-               LRB9001574LDpk
 1             (2)  Except  as otherwise specifically authorized by
 2        the Department, no licensed racing facility establishment
 3        shall be licensed for more than 40 video gaming terminals
 4        for any single license.
 5             (3)  Except as otherwise specifically authorized  by
 6        the  Department, no licensed intertrack wagering location
 7        establishment shall be licensed for more  than  10  video
 8        gaming terminals for any single license.
 9        Section 60.  Distribution of tax revenues.
10        (a)  All tax revenues derived from video gaming terminals
11    by  the  State shall be held by the Department until they are
12    distributed.
13        (b)  The State shall receive revenues based on net  video
14    gaming  terminal income (income after payout).  The tax shall
15    be 20% of this amount.  The tax shall automatically  increase
16    to 25% 2 years after operation commences.
17        (c)  The tax revenues shall be paid into the Video Gaming
18    School  Fund,  a  special  fund that is hereby created in the
19    State  Treasury.   The  share  for  each  individual   school
20    district  shall  be  determined  by the video gaming terminal
21    income generated in that school district.
22        (d)  Revenues generated from the  play  of  video  gaming
23    terminals  shall  be  deposited by the terminal operator, who
24    shall  be  responsible  for  tax  payments,  in  a  specially
25    created, separate bank account maintained by the video gaming
26    terminal operator to allow for electronic fund  transfers  of
27    moneys for tax payment.
28        (e)  Each  licensed  location  shall maintain an adequate
29    video gaming fund, with the amount to be  determined  by  the
30    Department.
31        (f)  The  distribution of the remaining (after tax) video
32    gaming terminal  revenue  shall  be  negotiated  between  the
33    operator  and  location  involved  and  evidenced in writing.
                            -15-               LRB9001574LDpk
 1    However, in no event shall the location receive more than 50%
 2    of such amount.
 3        Section 85.  The Alcoholism  and  Other  Drug  Abuse  and
 4    Dependency Act is amended by adding Section 20-20 as follows:
 5        (20 ILCS 301/20-20)
 6        Sec. 20-20.  Compulsive gambling program.
 7        (a)  The  Department  of Human Services shall establish a
 8    program for:
 9             (1)  public  education,   research,   and   training
10        regarding problem or compulsive gambling; and
11             (2)  the  treatment  and  prevention  of  problem or
12        compulsive gambling.
13        (b)  The Department's program under subsection (a)  shall
14    include:
15             (1)  establishing  and maintaining a toll-free "800"
16        telephone  number  to  provide  crisis   counseling   and
17        referral  services to families experiencing difficulty as
18        a result of problem or compulsive gambling;
19             (2)  promoting  public   awareness   regarding   the
20        recognition  and  prevention  of  problem  or  compulsive
21        gambling;
22             (3)  facilitating  through  in-service  training and
23        other means  the  availability  of  effective  assistance
24        programs for problem or compulsive gamblers; and
25             (4)  conducting   studies  to  identify  adults  and
26        juveniles in this State who are becoming or  who  are  at
27        risk of becoming problem or compulsive gamblers.
28        Section  87.  The  State Finance Act is amended by adding
29    Section 5.449 as follows:
30        (30 ILCS 105/5.449 new)
                            -16-               LRB9001574LDpk
 1        Sec. 5.449.  The Video Gaming School Fund.
 2        Section 90.  The Criminal Code  of  1961  is  amended  by
 3    changing Sections 28-1, 28-1.1, and 28-3 as follows:
 4        (720 ILCS 5/28-1) (from Ch. 38, par. 28-1)
 5        Sec. 28-1.  Gambling.
 6        (a)  A person commits gambling when he:
 7             (1)  Plays  a  game  of chance or skill for money or
 8        other thing of value, unless excepted in  subsection  (b)
 9        of this Section; or
10             (2)  Makes  a  wager  upon  the  result of any game,
11        contest, or  any  political  nomination,  appointment  or
12        election; or
13             (3)  Operates,   keeps,   owns,   uses,   purchases,
14        exhibits,  rents,  sells,  bargains for the sale or lease
15        of, manufactures or distributes any gambling device; or
16             (4)  Contracts to have or give  himself  or  another
17        the  option  to buy or sell, or contracts to buy or sell,
18        at  a  future  time,  any  grain   or   other   commodity
19        whatsoever,  or  any  stock  or  security of any company,
20        where it is at the time of making such contract  intended
21        by both parties thereto that the contract to buy or sell,
22        or  the  option,  whenever  exercised,  or  the  contract
23        resulting therefrom, shall be settled, not by the receipt
24        or  delivery of such property, but by the payment only of
25        differences in prices  thereof;  however,  the  issuance,
26        purchase, sale, exercise, endorsement or guarantee, by or
27        through  a  person registered with the Secretary of State
28        pursuant to Section 8 of the Illinois Securities  Law  of
29        1953,  or  by  or  through  a  person  exempt  from  such
30        registration  under  said  Section  8, of a put, call, or
31        other option to buy or sell securities  which  have  been
32        registered  with  the  Secretary  of  State  or which are
                            -17-               LRB9001574LDpk
 1        exempt from such registration  under  Section  3  of  the
 2        Illinois  Securities  Law  of 1953 is not gambling within
 3        the meaning of this paragraph (4); or
 4             (5)  Knowingly   owns   or   possesses   any   book,
 5        instrument or apparatus by means of which bets or  wagers
 6        have  been,  or are, recorded or registered, or knowingly
 7        possesses any money which he has received in  the  course
 8        of a bet or wager; or
 9             (6)  Sells  pools  upon  the  result  of any game or
10        contest  of  skill  or  chance,   political   nomination,
11        appointment or election; or
12             (7)  Sets  up  or  promotes  any  lottery  or sells,
13        offers to sell or transfers any ticket or share  for  any
14        lottery; or
15             (8)  Sets  up  or promotes any policy game or sells,
16        offers to sell or knowingly possesses  or  transfers  any
17        policy  ticket,  slip,  record, document or other similar
18        device; or
19             (9)  Knowingly  drafts,  prints  or  publishes   any
20        lottery  ticket  or  share,  or  any policy ticket, slip,
21        record, document  or  similar  device,  except  for  such
22        activity  related  to  lotteries, bingo games and raffles
23        authorized by and conducted in accordance with  the  laws
24        of Illinois or any other state or foreign government; or
25             (10)  Knowingly  advertises  any  lottery  or policy
26        game, except for  such  activity  related  to  lotteries,
27        bingo  games  and  raffles authorized by and conducted in
28        accordance with the laws of Illinois or any other  state;
29        or
30             (11)  Knowingly  transmits information as to wagers,
31        betting odds, or changes in betting  odds  by  telephone,
32        telegraph,   radio,   semaphore   or  similar  means;  or
33        knowingly  installs  or  maintains  equipment   for   the
34        transmission  or receipt of such information; except that
                            -18-               LRB9001574LDpk
 1        nothing in this subdivision (11)  prohibits  transmission
 2        or  receipt of such information for use in news reporting
 3        of sporting events or contests.
 4        (b)  Participants in  any  of  the  following  activities
 5    shall not be convicted of gambling therefor:
 6             (1)  Agreements to compensate for loss caused by the
 7        happening   of   chance   including   without  limitation
 8        contracts of indemnity or guaranty and life or health  or
 9        accident insurance;
10             (2)  Offers  of prizes, award or compensation to the
11        actual contestants in  any  bona  fide  contest  for  the
12        determination  of  skill, speed, strength or endurance or
13        to the owners of animals  or  vehicles  entered  in  such
14        contest;
15             (3)  Pari-mutuel betting as authorized by the law of
16        this State;
17             (4)  Manufacture  of gambling devices, including the
18        acquisition of essential parts therefor and the  assembly
19        thereof,  for  transportation  in  interstate  or foreign
20        commerce to  any  place  outside  this  State  when  such
21        transportation   is  not  prohibited  by  any  applicable
22        Federal  law;  or  the  manufacture,   distribution,   or
23        possession  of  video gaming terminals, as defined in the
24        Video Gaming Act,  by  manufacturers,  distributors,  and
25        terminal  operators  licensed  to  do  so under the Video
26        Gaming Act;
27             (5)  The  game  commonly  known  as  "bingo",   when
28        conducted  in  accordance  with the Bingo License and Tax
29        Act;
30             (6)  Lotteries  when  conducted  by  the  State   of
31        Illinois in accordance with the Illinois Lottery Law;
32             (7)  Possession  of  an antique slot machine that is
33        neither used nor intended to be used in the operation  or
34        promotion   of   any   unlawful   gambling   activity  or
                            -19-               LRB9001574LDpk
 1        enterprise.  For the purpose of this subparagraph (b)(7),
 2        an antique slot machine is one manufactured 25 years  ago
 3        or earlier;
 4             (8)  Raffles  when  conducted in accordance with the
 5        Raffles Act;
 6             (9)  Charitable games when conducted  in  accordance
 7        with the Charitable Games Act;
 8             (10)  Pull  tabs  and jar games when conducted under
 9        the Illinois Pull Tabs and Jar Games Act; or
10             (11)  Gambling games conducted  on  riverboats  when
11        authorized by the Riverboat Gambling Act; or.
12             (12)  Video   gaming   terminal  games  at  licensed
13        establishments when  conducted  in  accordance  with  the
14        Video Gaming Act.
15        (c)  Sentence.
16        Gambling  under  subsection  (a)(1)  or  (a)(2)  of  this
17    Section  is  a  Class  A  misdemeanor.  Gambling under any of
18    subsections (a)(3) through (a)(11) of this Section is a Class
19    A misdemeanor.  A second or subsequent conviction  under  any
20    of subsections (a)(3) through (a)(11), is a Class 4 felony.
21        (d)  Circumstantial evidence.
22        In  prosecutions  under subsection (a)(1) through (a)(11)
23    of this Section circumstantial evidence shall have  the  same
24    validity and weight as in any criminal prosecution.
25    (Source: P.A. 86-1029; 87-435.)
26        (720 ILCS 5/28-1.1) (from Ch. 38, par. 28-1.1)
27        Sec. 28-1.1.  Syndicated gambling.
28        (a)  Declaration   of   Purpose.  Recognizing  the  close
29    relationship  between   professional   gambling   and   other
30    organized  crime,  it  is  declared  to  be the policy of the
31    legislature to restrain persons from engaging in the business
32    of gambling for profit in this State.  This Section shall  be
33    liberally  construed and administered with a view to carrying
                            -20-               LRB9001574LDpk
 1    out this policy.
 2        (b)  A  person  commits  syndicated  gambling   when   he
 3    operates  a  "policy  game"  or  engages  in  the business of
 4    bookmaking.
 5        (c)  A person "operates a policy game" when he  knowingly
 6    uses any premises or property for the purpose of receiving or
 7    knowingly does receive from what is commonly called "policy":
 8             (1)  money  from  a  person other than the better or
 9        player whose bets or plays are represented by such money;
10        or
11             (2)  written "policy game"  records,  made  or  used
12        over  any  period  of  time, from a person other than the
13        better or player whose bets or plays are  represented  by
14        such written record.
15        (d)  A  person  engages in bookmaking when he receives or
16    accepts more than five bets or wagers upon the result of  any
17    trials  or  contests of skill, speed or power of endurance or
18    upon any lot, chance, casualty, unknown or  contingent  event
19    whatsoever,  which  bets or wagers shall be of such size that
20    the total of the amounts of money paid or promised to be paid
21    to such bookmaker on account  thereof  shall  exceed  $2,000.
22    Bookmaking  is  the  receiving  or  accepting of such bets or
23    wagers  regardless  of  the  form  or  manner  in  which  the
24    bookmaker records them.
25        (e)  Participants in  any  of  the  following  activities
26    shall not be convicted of syndicated gambling:
27             (1)  Agreements to compensate for loss caused by the
28        happening   of   chance   including   without  limitation
29        contracts of indemnity or guaranty and life or health  or
30        accident insurance; and
31             (2)  Offers  of prizes, award or compensation to the
32        actual contestants in  any  bona  fide  contest  for  the
33        determination  of  skill, speed, strength or endurance or
34        to the owners of animals  or  vehicles  entered  in  such
                            -21-               LRB9001574LDpk
 1        contest; and
 2             (3)  Pari-mutuel  betting  as  authorized  by law of
 3        this State; and
 4             (4)  Manufacture of gambling devices, including  the
 5        acquisition  of essential parts therefor and the assembly
 6        thereof, for  transportation  in  interstate  or  foreign
 7        commerce  to  any  place  outside  this  State  when such
 8        transportation  is  not  prohibited  by  any   applicable
 9        Federal law; and
10             (5)  Raffles  when  conducted in accordance with the
11        Raffles Act; and
12             (6)  Gambling games  conducted  on  riverboats  when
13        authorized by the Riverboat Gambling Act; and.
14             (7)  Video   gaming   terminal   games  at  licensed
15        establishments when  conducted  in  accordance  with  the
16        Video Gaming Act.
17        (f)  Sentence.  Syndicated gambling is a Class 3 felony.
18    (Source: P.A. 86-1029; 87-435.)
19        (720 ILCS 5/28-3) (from Ch. 38, par. 28-3)
20        Sec.  28-3.  Keeping a Gambling Place. A "gambling place"
21    is any real estate,  vehicle,  boat  or  any  other  property
22    whatsoever  used  for  the  purposes  of  gambling other than
23    gambling conducted in the manner authorized by the  Riverboat
24    Gambling  Act  or  the  Video  Gaming  Act.   Any  person who
25    knowingly permits any premises or property owned or  occupied
26    by  him  or  under his control to be used as a gambling place
27    commits a Class A misdemeanor.  Each subsequent offense is  a
28    Class  4  felony.   When  any  premises  is determined by the
29    circuit court to be a gambling place:
30        (a)  Such premises  is  a  public  nuisance  and  may  be
31    proceeded against as such, and
32        (b)  All  licenses, permits or certificates issued by the
33    State of Illinois or any subdivision or public agency thereof
                            -22-               LRB9001574LDpk
 1    authorizing the serving of food or liquor  on  such  premises
 2    shall  be  void;  and  no  license,  permit or certificate so
 3    cancelled shall be reissued for such premises for a period of
 4    60 days thereafter; nor shall any person convicted of keeping
 5    a gambling place be reissued such license for one  year  from
 6    his  conviction  and,  after a second conviction of keeping a
 7    gambling place, any such person shall not  be  reissued  such
 8    license, and
 9        (c)  Such  premises  of  any person who knowingly permits
10    thereon a violation of any Section of this Article  shall  be
11    held  liable  for,  and  may  be  sold to pay any unsatisfied
12    judgment that may be recovered and any unsatisfied fine  that
13    may be levied under any Section of this Article.
14    (Source: P.A. 86-1029.)
15        Section   99.  Effective  date.  This  Act  takes  effect
16    January 1, 1998.

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