Public Act 098-0077
 
SB0070 EnrolledLRB098 05813 AMC 35852 b


  
    AN ACT concerning gaming.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  


 
    Section 5. The Video Gaming
Act is amended  by changing 
Section 25 as follows:
 
 

    (230 ILCS 40/25)

 
    Sec. 25. Restriction of licensees.

    (a) Manufacturer.  A person may not be licensed as a 
manufacturer of a
video gaming terminal in Illinois unless the 
person has a valid
manufacturer's license issued
under this 
Act.  A manufacturer may only sell video gaming terminals for 
use
in Illinois to
persons having a valid distributor's 
license.

    (b) Distributor.  A person may not sell, distribute, or 
lease
or market a video gaming terminal in Illinois unless the 
person has a valid
distributor's
license issued under this Act.  
A distributor may only sell video gaming
terminals for use in

Illinois to persons having a valid distributor's or terminal 
operator's
license.

    (c) Terminal operator.  A person may not own, maintain, or 
place a video gaming terminal unless he has a valid terminal 
operator's
license issued
under this Act.  A terminal operator 
may only place video gaming terminals for
use in
Illinois in 
licensed establishments, licensed truck stop establishments, 
licensed fraternal establishments,
and
licensed veterans 
establishments.
No terminal operator may give anything of 
value, including but not limited to
a loan or financing 
arrangement, to a licensed establishment, licensed truck stop 
establishment,
licensed fraternal establishment, or licensed 
veterans establishment as
any incentive or inducement to locate 
video terminals in that establishment.
Of the after-tax profits

from a video gaming terminal, 50% shall be paid to the terminal

operator and 50% shall be paid to the licensed establishment, 
licensed truck stop establishment,
licensed fraternal 
establishment, or
licensed veterans establishment, 
notwithstanding any agreement to the contrary.
 A video terminal 
operator that violates one or more requirements of this 
subsection is guilty of a Class 4 felony and is subject to 
termination of his or her license by the Board. 

    (d) Licensed technician. A person may not service, 
maintain, or repair a
video gaming terminal
in this State 
unless he or she (1) has a valid technician's license issued

under this Act, (2) is a terminal operator, or (3) is employed 
by a terminal
operator, distributor, or manufacturer.

    (d-5)   Licensed terminal handler.  No person, including, but 
not limited to, an employee or independent contractor working 
for a manufacturer, distributor, supplier, technician, or 
terminal operator licensed pursuant to this Act, shall have 
possession or control of a video gaming terminal, or access to 
the inner workings of a video gaming terminal, unless that 
person possesses a valid terminal handler's license issued 
under this Act. 
    (e) Licensed establishment.  No video gaming terminal may be 
placed in any licensed establishment, licensed veterans 
establishment, licensed truck stop establishment,
or licensed 
fraternal establishment
unless the owner
or agent of the owner 
of the licensed establishment, licensed veterans 
establishment, licensed truck stop establishment, or licensed

fraternal establishment has entered into a
written use 
agreement with the terminal operator for placement of the

terminals.  A copy of the use agreement shall be on file in the 
terminal
operator's place of business and available for 
inspection by individuals
authorized by the Board.  A licensed 
establishment, licensed truck stop establishment, licensed 
veterans establishment,
or
licensed
fraternal
establishment 
may operate up to 5 video gaming terminals on its premises at 
any
time.

    (f) (Blank).

    (g) Financial interest restrictions.
As used in this Act, 
"substantial interest" in a partnership, a corporation,  an

organization, an association, a business, or a limited 
liability company means:


        (A) When, with respect to a sole proprietorship, an 
    individual or
his or her spouse owns, operates, manages, or 
    conducts, directly
or indirectly, the organization, 
    association, or business, or any part thereof;
or


        (B) When, with respect to a partnership, the individual 
    or his or
her spouse shares in any of the profits, or 
    potential profits,
of the partnership activities; or


        (C) When, with respect to a corporation, an individual 
    or his or her
spouse is an officer or director, or the 
    individual or his or her spouse is a holder, directly or 
    beneficially, of 5% or more of any class
of stock of the 
    corporation; or


        (D) When, with respect to an organization not covered 
    in (A), (B) or
(C) above, an individual or his or her 
    spouse is an officer or manages the
business affairs, or 
    the individual or his or her spouse is the
owner of or 
    otherwise controls 10% or more of the assets of the 
    organization;
or


        (E) When an individual or his or her spouse furnishes

    5% or more of the capital, whether in cash, goods, or 
    services, for the
operation of any business, association, 
    or organization during any calendar
year; or
        (F) When, with respect to a limited liability company, 
    an individual or his or her
spouse is a member, or the 
    individual or his or her spouse is a holder, directly or 
    beneficially, of 5% or more of the membership interest of 
    the limited liability company. 

    For purposes of this subsection (g), "individual" includes 
all individuals or their spouses whose combined interest would 
qualify as a substantial interest under this subsection (g) and 
whose activities with respect to an organization, association, 
or business are so closely aligned or coordinated as to 
constitute the activities of a single entity. 
    (h) Location restriction.  A licensed establishment, 
licensed truck stop establishment, licensed
fraternal

establishment, or licensed veterans establishment that is (i) 
located within 1,000
feet of a facility operated by an 
organization licensee or an inter-track wagering licensee  
licensed under the Illinois Horse Racing Act of 1975 or the 
home dock of a riverboat licensed under the Riverboat
Gambling 
Act or (ii) located within 100 feet of a school or a place of 
worship under the Religious Corporation Act,  is ineligible  to 
operate a video gaming terminal. The location restrictions in 
this subsection (h) do not apply if (A) a facility operated by 
an organization licensee, an inter-track wagering licensee, or 
an inter-track wagering location licensee, a school, or a place 
of worship moves to or is established within the restricted 
area after a licensed establishment, licensed truck stop 
establishment, licensed fraternal establishment, or licensed 
veterans establishment becomes licensed under this Act or (B) a 
school or place of worship moves to or is established within 
the restricted area after a licensed establishment, licensed 
truck stop establishment, licensed fraternal establishment, or 
licensed veterans establishment obtains its original liquor 
license. For the purpose of this subsection, "school" means an 
elementary or secondary public school, or an elementary or 
secondary private school registered with or recognized by the 
State Board of Education.
    Notwithstanding the provisions of this subsection (h), the 
Board may waive the requirement that a licensed establishment, 
licensed truck stop establishment, licensed fraternal 
establishment, or licensed veterans establishment not be 
located within 1,000 feet from a facility operated by an 
organization licensee, an inter-track wagering licensee, or an 
inter-track wagering location licensee licensed under the 
Illinois Horse Racing Act of 1975 or the home dock of a 
riverboat licensed under the Riverboat Gambling Act.  The Board 
shall not grant such waiver if there is any common ownership or 
control, shared business activity, or contractual arrangement 
of any type between the establishment and the organization 
licensee, inter-track wagering licensee, inter-track wagering 
location licensee, or owners licensee of a riverboat.  The Board 
shall adopt rules to implement the provisions of this 
paragraph.
    (i) Undue economic concentration. In addition to 
considering all other requirements under this Act, in deciding 
whether to approve the operation of video gaming terminals by a 
terminal operator in a location, the Board shall consider the 
impact of any economic concentration of such operation of video 
gaming terminals. The Board shall not allow a terminal operator 
to operate video gaming terminals if the Board determines such 
operation will result in undue economic concentration. For 
purposes of this Section, "undue economic concentration" means 
that a terminal operator would have such actual or potential 
influence over video gaming terminals in Illinois as to:
        (1) substantially impede or suppress competition among 
    terminal operators;
        (2) adversely impact the economic stability of the 
    video gaming industry in Illinois; or
        (3) negatively impact the purposes of the Video Gaming 
    Act.
    The Board shall adopt rules concerning undue economic 
concentration with respect to the operation of video gaming 
terminals in Illinois. The rules shall include, but not be 
limited to, (i) limitations on the number of video gaming 
terminals operated by any terminal operator within a defined 
geographic radius and (ii) guidelines on the discontinuation of 
operation of any such video gaming terminals the Board 
determines will cause undue economic concentration. 


    (j) The provisions of the Illinois Antitrust Act are fully 
and equally applicable to the activities of any licensee under 
this Act. 

(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, 
eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1410, eff. 7-30-10; 
96-1479, eff. 8-23-10; 97-333, eff. 8-12-11.)


 
    Section 99. Effective date. This Act takes effect upon 
becoming law.