104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3135 Introduced , by Rep. Harry Benton SYNOPSIS AS INTRODUCED: 230 ILCS 40/25 Amends the Video Gaming Act. Provides that a licensed establishment, licensed truck stop establishment, licensed large truck stop establishment, licensed fraternal establishment, or licensed veterans establishment that is located within the designated amount of feet, as designated by the municipality in which the establishment is located, from a school or a place of worship (rather than 100 feet of a school or a place of worship) is ineligible to operate a video gaming terminal. Provides that the distance between the establishment and any such location shall be measured from the front door of the establishment to the front door of such location. LRB104 10875 LNS 20957 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3135 Introduced , by Rep. Harry Benton SYNOPSIS AS INTRODUCED: 230 ILCS 40/25 230 ILCS 40/25 Amends the Video Gaming Act. Provides that a licensed establishment, licensed truck stop establishment, licensed large truck stop establishment, licensed fraternal establishment, or licensed veterans establishment that is located within the designated amount of feet, as designated by the municipality in which the establishment is located, from a school or a place of worship (rather than 100 feet of a school or a place of worship) is ineligible to operate a video gaming terminal. Provides that the distance between the establishment and any such location shall be measured from the front door of the establishment to the front door of such location. LRB104 10875 LNS 20957 b LRB104 10875 LNS 20957 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3135 Introduced , by Rep. Harry Benton SYNOPSIS AS INTRODUCED: 230 ILCS 40/25 230 ILCS 40/25 230 ILCS 40/25 Amends the Video Gaming Act. Provides that a licensed establishment, licensed truck stop establishment, licensed large truck stop establishment, licensed fraternal establishment, or licensed veterans establishment that is located within the designated amount of feet, as designated by the municipality in which the establishment is located, from a school or a place of worship (rather than 100 feet of a school or a place of worship) is ineligible to operate a video gaming terminal. Provides that the distance between the establishment and any such location shall be measured from the front door of the establishment to the front door of such location. LRB104 10875 LNS 20957 b LRB104 10875 LNS 20957 b LRB104 10875 LNS 20957 b A BILL FOR HB3135LRB104 10875 LNS 20957 b HB3135 LRB104 10875 LNS 20957 b HB3135 LRB104 10875 LNS 20957 b 1 AN ACT concerning gaming. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Video Gaming Act is amended by changing 5 Section 25 as follows: 6 (230 ILCS 40/25) 7 Sec. 25. Restriction of licensees. 8 (a) Manufacturer. A person may not be licensed as a 9 manufacturer of a video gaming terminal in Illinois unless the 10 person has a valid manufacturer's license issued under this 11 Act. A manufacturer may only sell video gaming terminals for 12 use in Illinois to persons having a valid distributor's 13 license. 14 (b) Distributor. A person may not sell, distribute, or 15 lease or market a video gaming terminal in Illinois unless the 16 person has a valid distributor's license issued under this 17 Act. A distributor may only sell video gaming terminals for 18 use in Illinois to persons having a valid distributor's or 19 terminal operator's license. 20 (c) Terminal operator. A person may not own, maintain, or 21 place a video gaming terminal unless he has a valid terminal 22 operator's license issued under this Act. A terminal operator 23 may only place video gaming terminals for use in Illinois in 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3135 Introduced , by Rep. Harry Benton SYNOPSIS AS INTRODUCED: 230 ILCS 40/25 230 ILCS 40/25 230 ILCS 40/25 Amends the Video Gaming Act. Provides that a licensed establishment, licensed truck stop establishment, licensed large truck stop establishment, licensed fraternal establishment, or licensed veterans establishment that is located within the designated amount of feet, as designated by the municipality in which the establishment is located, from a school or a place of worship (rather than 100 feet of a school or a place of worship) is ineligible to operate a video gaming terminal. Provides that the distance between the establishment and any such location shall be measured from the front door of the establishment to the front door of such location. LRB104 10875 LNS 20957 b LRB104 10875 LNS 20957 b LRB104 10875 LNS 20957 b A BILL FOR 230 ILCS 40/25 LRB104 10875 LNS 20957 b HB3135 LRB104 10875 LNS 20957 b HB3135- 2 -LRB104 10875 LNS 20957 b HB3135 - 2 - LRB104 10875 LNS 20957 b HB3135 - 2 - LRB104 10875 LNS 20957 b 1 licensed establishments, licensed truck stop establishments, 2 licensed large truck stop establishments, licensed fraternal 3 establishments, and licensed veterans establishments. No 4 terminal operator may give anything of value, including but 5 not limited to a loan or financing arrangement, to a licensed 6 establishment, licensed truck stop establishment, licensed 7 large truck stop establishment, licensed fraternal 8 establishment, or licensed veterans establishment as any 9 incentive or inducement to locate video terminals in that 10 establishment. Of the after-tax profits from a video gaming 11 terminal, 50% shall be paid to the terminal operator and 50% 12 shall be paid to the licensed establishment, licensed truck 13 stop establishment, licensed large truck stop establishment, 14 licensed fraternal establishment, or licensed veterans 15 establishment, notwithstanding any agreement to the contrary. 16 A video terminal operator that violates one or more 17 requirements of this subsection is guilty of a Class 4 felony 18 and is subject to termination of his or her license by the 19 Board. 20 (d) Licensed technician. A person may not service, 21 maintain, or repair a video gaming terminal in this State 22 unless he or she (1) has a valid technician's license issued 23 under this Act, (2) is a terminal operator, or (3) is employed 24 by a terminal operator, distributor, or manufacturer. 25 (d-5) Licensed terminal handler. No person, including, but 26 not limited to, an employee or independent contractor working HB3135 - 2 - LRB104 10875 LNS 20957 b HB3135- 3 -LRB104 10875 LNS 20957 b HB3135 - 3 - LRB104 10875 LNS 20957 b HB3135 - 3 - LRB104 10875 LNS 20957 b 1 for a manufacturer, distributor, supplier, technician, or 2 terminal operator licensed pursuant to this Act, shall have 3 possession or control of a video gaming terminal, or access to 4 the inner workings of a video gaming terminal, unless that 5 person possesses a valid terminal handler's license issued 6 under this Act. 7 (d-10) Solicitation of use agreements. A person may not 8 solicit the signing of a use agreement on behalf of a terminal 9 operator or enter into a use agreement as agent of a terminal 10 operator unless that person either has a valid sales agent and 11 broker license issued under this Act or owns, manages, or 12 significantly influences or controls the terminal operator. 13 (e) Licensed establishment. No video gaming terminal may 14 be placed in any licensed establishment, licensed veterans 15 establishment, licensed truck stop establishment, licensed 16 large truck stop establishment, or licensed fraternal 17 establishment unless the owner or agent of the owner of the 18 licensed establishment, licensed veterans establishment, 19 licensed truck stop establishment, licensed large truck stop 20 establishment, or licensed fraternal establishment has entered 21 into a written use agreement with the terminal operator for 22 placement of the terminals. A copy of the use agreement shall 23 be on file in the terminal operator's place of business and 24 available for inspection by individuals authorized by the 25 Board. A licensed establishment, licensed truck stop 26 establishment, licensed veterans establishment, or licensed HB3135 - 3 - LRB104 10875 LNS 20957 b HB3135- 4 -LRB104 10875 LNS 20957 b HB3135 - 4 - LRB104 10875 LNS 20957 b HB3135 - 4 - LRB104 10875 LNS 20957 b 1 fraternal establishment may operate up to 6 video gaming 2 terminals on its premises at any time. A licensed large truck 3 stop establishment may operate up to 10 video gaming terminals 4 on its premises at any time. 5 (f) (Blank). 6 (g) Financial interest restrictions. As used in this Act, 7 "substantial interest" in a partnership, a corporation, an 8 organization, an association, a business, or a limited 9 liability company means: 10 (A) When, with respect to a sole proprietorship, an 11 individual or his or her spouse owns, operates, manages, 12 or conducts, directly or indirectly, the organization, 13 association, or business, or any part thereof; or 14 (B) When, with respect to a partnership, the 15 individual or his or her spouse shares in any of the 16 profits, or potential profits, of the partnership 17 activities; or 18 (C) When, with respect to a corporation, an individual 19 or his or her spouse is an officer or director, or the 20 individual or his or her spouse is a holder, directly or 21 beneficially, of 5% or more of any class of stock of the 22 corporation; or 23 (D) When, with respect to an organization not covered 24 in (A), (B) or (C) above, an individual or his or her 25 spouse is an officer or manages the business affairs, or 26 the individual or his or her spouse is the owner of or HB3135 - 4 - LRB104 10875 LNS 20957 b HB3135- 5 -LRB104 10875 LNS 20957 b HB3135 - 5 - LRB104 10875 LNS 20957 b HB3135 - 5 - LRB104 10875 LNS 20957 b 1 otherwise controls 10% or more of the assets of the 2 organization; or 3 (E) When an individual or his or her spouse furnishes 4 5% or more of the capital, whether in cash, goods, or 5 services, for the operation of any business, association, 6 or organization during any calendar year; or 7 (F) When, with respect to a limited liability company, 8 an individual or his or her spouse is a member, or the 9 individual or his or her spouse is a holder, directly or 10 beneficially, of 5% or more of the membership interest of 11 the limited liability company. 12 For purposes of this subsection (g), "individual" includes 13 all individuals or their spouses whose combined interest would 14 qualify as a substantial interest under this subsection (g) 15 and whose activities with respect to an organization, 16 association, or business are so closely aligned or coordinated 17 as to constitute the activities of a single entity. 18 (h) Location restriction. A licensed establishment, 19 licensed truck stop establishment, licensed large truck stop 20 establishment, licensed fraternal establishment, or licensed 21 veterans establishment that is (i) located within 1,000 feet 22 of a facility operated by an organization licensee licensed 23 under the Illinois Horse Racing Act of 1975 or the home dock of 24 a riverboat licensed under the Illinois Gambling Act or (ii) 25 located within the designated amount of feet, as designated by 26 the municipality in which the establishment is located, from HB3135 - 5 - LRB104 10875 LNS 20957 b HB3135- 6 -LRB104 10875 LNS 20957 b HB3135 - 6 - LRB104 10875 LNS 20957 b HB3135 - 6 - LRB104 10875 LNS 20957 b 1 100 feet of a school or a place of worship under the Religious 2 Corporation Act, is ineligible to operate a video gaming 3 terminal. The distance between the establishment and any of 4 the locations listed in item (i) or (ii) shall be measured from 5 the front door of the establishment to the front door of the 6 location listed in item (i) or (ii). The location restrictions 7 in this subsection (h) do not apply if (A) a facility operated 8 by an organization licensee, a school, or a place of worship 9 moves to or is established within the restricted area after a 10 licensed establishment, licensed truck stop establishment, 11 licensed large truck stop establishment, licensed fraternal 12 establishment, or licensed veterans establishment becomes 13 licensed under this Act or (B) a school or place of worship 14 moves to or is established within the restricted area after a 15 licensed establishment, licensed truck stop establishment, 16 licensed large truck stop establishment, licensed fraternal 17 establishment, or licensed veterans establishment obtains its 18 original liquor license. For the purpose of this subsection, 19 "school" means an elementary or secondary public school, or an 20 elementary or secondary private school registered with or 21 recognized by the State Board of Education. 22 Notwithstanding the provisions of this subsection (h), the 23 Board may waive the requirement that a licensed establishment, 24 licensed truck stop establishment, licensed large truck stop 25 establishment, licensed fraternal establishment, or licensed 26 veterans establishment not be located within 1,000 feet from a HB3135 - 6 - LRB104 10875 LNS 20957 b HB3135- 7 -LRB104 10875 LNS 20957 b HB3135 - 7 - LRB104 10875 LNS 20957 b HB3135 - 7 - LRB104 10875 LNS 20957 b 1 facility operated by an organization licensee licensed under 2 the Illinois Horse Racing Act of 1975 or the home dock of a 3 riverboat licensed under the Illinois Gambling Act. The Board 4 shall not grant such waiver if there is any common ownership or 5 control, shared business activity, or contractual arrangement 6 of any type between the establishment and the organization 7 licensee or owners licensee of a riverboat. The Board shall 8 adopt rules to implement the provisions of this paragraph. 9 (h-5) Restrictions on licenses in malls. The Board shall 10 not grant an application to become a licensed video gaming 11 location if the Board determines that granting the application 12 would more likely than not cause a terminal operator, 13 individually or in combination with other terminal operators, 14 licensed video gaming location, or other person or entity, to 15 operate the video gaming terminals in 2 or more licensed video 16 gaming locations as a single video gaming operation. 17 (1) In making determinations under this subsection 18 (h-5), factors to be considered by the Board shall 19 include, but not be limited to, the following: 20 (A) the physical aspects of the location; 21 (B) the ownership, control, or management of the 22 location; 23 (C) any arrangements, understandings, or 24 agreements, written or otherwise, among or involving 25 any persons or entities that involve the conducting of 26 any video gaming business or the sharing of costs or HB3135 - 7 - LRB104 10875 LNS 20957 b HB3135- 8 -LRB104 10875 LNS 20957 b HB3135 - 8 - LRB104 10875 LNS 20957 b HB3135 - 8 - LRB104 10875 LNS 20957 b 1 revenues; and 2 (D) the manner in which any terminal operator or 3 other related entity markets, advertises, or otherwise 4 describes any location or locations to any other 5 person or entity or to the public. 6 (2) The Board shall presume, subject to rebuttal, that 7 the granting of an application to become a licensed video 8 gaming location within a mall will cause a terminal 9 operator, individually or in combination with other 10 persons or entities, to operate the video gaming terminals 11 in 2 or more licensed video gaming locations as a single 12 video gaming operation if the Board determines that 13 granting the license would create a local concentration of 14 licensed video gaming locations. 15 For the purposes of this subsection (h-5): 16 "Mall" means a building, or adjoining or connected 17 buildings, containing 4 or more separate locations. 18 "Video gaming operation" means the conducting of video 19 gaming and all related activities. 20 "Location" means a space within a mall containing a 21 separate business, a place for a separate business, or a place 22 subject to a separate leasing arrangement by the mall owner. 23 "Licensed video gaming location" means a licensed 24 establishment, licensed fraternal establishment, licensed 25 veterans establishment, licensed truck stop establishment, or 26 licensed large truck stop. HB3135 - 8 - LRB104 10875 LNS 20957 b HB3135- 9 -LRB104 10875 LNS 20957 b HB3135 - 9 - LRB104 10875 LNS 20957 b HB3135 - 9 - LRB104 10875 LNS 20957 b 1 "Local concentration of licensed video gaming locations" 2 means that the combined number of licensed video gaming 3 locations within a mall exceed half of the separate locations 4 within the mall. 5 (i) Undue economic concentration. In addition to 6 considering all other requirements under this Act, in deciding 7 whether to approve the operation of video gaming terminals by 8 a terminal operator in a location, the Board shall consider 9 the impact of any economic concentration of such operation of 10 video gaming terminals. The Board shall not allow a terminal 11 operator to operate video gaming terminals if the Board 12 determines such operation will result in undue economic 13 concentration. For purposes of this Section, "undue economic 14 concentration" means that a terminal operator would have such 15 actual or potential influence over video gaming terminals in 16 Illinois as to: 17 (1) substantially impede or suppress competition among 18 terminal operators; 19 (2) adversely impact the economic stability of the 20 video gaming industry in Illinois; or 21 (3) negatively impact the purposes of the Video Gaming 22 Act. 23 The Board shall adopt rules concerning undue economic 24 concentration with respect to the operation of video gaming 25 terminals in Illinois. The rules shall include, but not be 26 limited to, (i) limitations on the number of video gaming HB3135 - 9 - LRB104 10875 LNS 20957 b HB3135- 10 -LRB104 10875 LNS 20957 b HB3135 - 10 - LRB104 10875 LNS 20957 b HB3135 - 10 - LRB104 10875 LNS 20957 b HB3135 - 10 - LRB104 10875 LNS 20957 b