IL
Illinois House Bill HB3729

Illinois 2025-2026 Regular Session

Illinois House Bill HB3729 Compare Versions

Only one version of the bill is available at this time.
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11 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3729 Introduced , by Rep. Robert "Bob" Rita SYNOPSIS AS INTRODUCED: 230 ILCS 40/5230 ILCS 40/25 Amends the Video Gaming Act. Prohibits a terminal operator from compensating a sales agent and broker based on a percentage of the after-tax profits from a video gaming terminal, the net terminal income from a video gaming terminal or attributed to licensed establishments, or any other compensation metric based upon the performance of a video gaming terminal in various licensed establishments. Provides that a terminal operator shall not enter into any contract or agreement for the sharing, splitting, or payment of net terminal income with any other person. Prohibits any contract or agreement for the sharing, splitting, or payment of net terminal income with any other person executed before January 1, 2025 from being amended, modified, or extended. Allows a terminal operator to enter into a contract or agreement for the sharing, splitting, or payment of net terminal income with any other person if such contract is approved by the Illinois Gaming Board. Prohibits a sales agent and broker from giving anything of value to a current or potential licensed establishment. Prohibits a sales agent and broker that is not an owner of a terminal operator to solicit or procure a use agreement or any other contract or agreement that purports to control or authorize the placement or operation of a video gaming terminal on behalf of a terminal operator from a current or potential licensed establishment if that person is an immediate family member of a direct or indirect owner, officer, director, manager, employee, or a person who otherwise significantly influences or controls the licensed establishment. Provides that any use agreement currently authorizing the placement and operation of video gaming may continue as a valid and enforceable use agreement through the end of the current use agreement term, but shall not be amended, modified, extended, or renewed after the effective date of the amendatory Act. Prohibits a current or potential licensed establishment from accepting anything of value from a terminal operator or sales agent and broker as any incentive or inducement to locate video gaming terminals in that establishment and licensed establishments. Makes other changes. LRB104 10960 LNS 21042 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3729 Introduced , by Rep. Robert "Bob" Rita SYNOPSIS AS INTRODUCED: 230 ILCS 40/5230 ILCS 40/25 230 ILCS 40/5 230 ILCS 40/25 Amends the Video Gaming Act. Prohibits a terminal operator from compensating a sales agent and broker based on a percentage of the after-tax profits from a video gaming terminal, the net terminal income from a video gaming terminal or attributed to licensed establishments, or any other compensation metric based upon the performance of a video gaming terminal in various licensed establishments. Provides that a terminal operator shall not enter into any contract or agreement for the sharing, splitting, or payment of net terminal income with any other person. Prohibits any contract or agreement for the sharing, splitting, or payment of net terminal income with any other person executed before January 1, 2025 from being amended, modified, or extended. Allows a terminal operator to enter into a contract or agreement for the sharing, splitting, or payment of net terminal income with any other person if such contract is approved by the Illinois Gaming Board. Prohibits a sales agent and broker from giving anything of value to a current or potential licensed establishment. Prohibits a sales agent and broker that is not an owner of a terminal operator to solicit or procure a use agreement or any other contract or agreement that purports to control or authorize the placement or operation of a video gaming terminal on behalf of a terminal operator from a current or potential licensed establishment if that person is an immediate family member of a direct or indirect owner, officer, director, manager, employee, or a person who otherwise significantly influences or controls the licensed establishment. Provides that any use agreement currently authorizing the placement and operation of video gaming may continue as a valid and enforceable use agreement through the end of the current use agreement term, but shall not be amended, modified, extended, or renewed after the effective date of the amendatory Act. Prohibits a current or potential licensed establishment from accepting anything of value from a terminal operator or sales agent and broker as any incentive or inducement to locate video gaming terminals in that establishment and licensed establishments. Makes other changes. LRB104 10960 LNS 21042 b LRB104 10960 LNS 21042 b A BILL FOR
22 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3729 Introduced , by Rep. Robert "Bob" Rita SYNOPSIS AS INTRODUCED:
33 230 ILCS 40/5230 ILCS 40/25 230 ILCS 40/5 230 ILCS 40/25
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66 Amends the Video Gaming Act. Prohibits a terminal operator from compensating a sales agent and broker based on a percentage of the after-tax profits from a video gaming terminal, the net terminal income from a video gaming terminal or attributed to licensed establishments, or any other compensation metric based upon the performance of a video gaming terminal in various licensed establishments. Provides that a terminal operator shall not enter into any contract or agreement for the sharing, splitting, or payment of net terminal income with any other person. Prohibits any contract or agreement for the sharing, splitting, or payment of net terminal income with any other person executed before January 1, 2025 from being amended, modified, or extended. Allows a terminal operator to enter into a contract or agreement for the sharing, splitting, or payment of net terminal income with any other person if such contract is approved by the Illinois Gaming Board. Prohibits a sales agent and broker from giving anything of value to a current or potential licensed establishment. Prohibits a sales agent and broker that is not an owner of a terminal operator to solicit or procure a use agreement or any other contract or agreement that purports to control or authorize the placement or operation of a video gaming terminal on behalf of a terminal operator from a current or potential licensed establishment if that person is an immediate family member of a direct or indirect owner, officer, director, manager, employee, or a person who otherwise significantly influences or controls the licensed establishment. Provides that any use agreement currently authorizing the placement and operation of video gaming may continue as a valid and enforceable use agreement through the end of the current use agreement term, but shall not be amended, modified, extended, or renewed after the effective date of the amendatory Act. Prohibits a current or potential licensed establishment from accepting anything of value from a terminal operator or sales agent and broker as any incentive or inducement to locate video gaming terminals in that establishment and licensed establishments. Makes other changes.
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1212 1 AN ACT concerning gaming.
1313 2 Be it enacted by the People of the State of Illinois,
1414 3 represented in the General Assembly:
1515 4 Section 5. The Video Gaming Act is amended by changing
1616 5 Sections 5 and 25 as follows:
1717 6 (230 ILCS 40/5)
1818 7 Sec. 5. Definitions. As used in this Act:
1919 8 "Board" means the Illinois Gaming Board.
2020 9 "Credit" means one, 5, 10, or 25 cents either won or
2121 10 purchased by a player.
2222 11 "Distributor" means an individual, partnership,
2323 12 corporation, or limited liability company licensed under this
2424 13 Act to buy, sell, lease, or distribute video gaming terminals
2525 14 or major components or parts of video gaming terminals to or
2626 15 from terminal operators.
2727 16 "Electronic card" means a card purchased from a licensed
2828 17 establishment, licensed fraternal establishment, licensed
2929 18 veterans establishment, licensed truck stop establishment, or
3030 19 licensed large truck stop establishment for use in that
3131 20 establishment as a substitute for cash in the conduct of
3232 21 gaming on a video gaming terminal.
3333 22 "Electronic voucher" means a voucher printed by an
3434 23 electronic video game machine that is redeemable in the
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3939 230 ILCS 40/5230 ILCS 40/25 230 ILCS 40/5 230 ILCS 40/25
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4242 Amends the Video Gaming Act. Prohibits a terminal operator from compensating a sales agent and broker based on a percentage of the after-tax profits from a video gaming terminal, the net terminal income from a video gaming terminal or attributed to licensed establishments, or any other compensation metric based upon the performance of a video gaming terminal in various licensed establishments. Provides that a terminal operator shall not enter into any contract or agreement for the sharing, splitting, or payment of net terminal income with any other person. Prohibits any contract or agreement for the sharing, splitting, or payment of net terminal income with any other person executed before January 1, 2025 from being amended, modified, or extended. Allows a terminal operator to enter into a contract or agreement for the sharing, splitting, or payment of net terminal income with any other person if such contract is approved by the Illinois Gaming Board. Prohibits a sales agent and broker from giving anything of value to a current or potential licensed establishment. Prohibits a sales agent and broker that is not an owner of a terminal operator to solicit or procure a use agreement or any other contract or agreement that purports to control or authorize the placement or operation of a video gaming terminal on behalf of a terminal operator from a current or potential licensed establishment if that person is an immediate family member of a direct or indirect owner, officer, director, manager, employee, or a person who otherwise significantly influences or controls the licensed establishment. Provides that any use agreement currently authorizing the placement and operation of video gaming may continue as a valid and enforceable use agreement through the end of the current use agreement term, but shall not be amended, modified, extended, or renewed after the effective date of the amendatory Act. Prohibits a current or potential licensed establishment from accepting anything of value from a terminal operator or sales agent and broker as any incentive or inducement to locate video gaming terminals in that establishment and licensed establishments. Makes other changes.
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7171 1 licensed establishment for which it was issued.
7272 2 "In-location bonus jackpot" means one or more video gaming
7373 3 terminals at a single licensed establishment that allows for
7474 4 wagers placed on such video gaming terminals to contribute to
7575 5 a cumulative maximum jackpot of up to $10,000.
7676 6 "Full-time basis" means an individual who is employed for
7777 7 a basic wage for at least 35 hours each week or who renders any
7878 8 other standard of service generally accepted by industry
7979 9 customs or practice as full-time employment. "Full-time basis"
8080 10 includes an individual for whom a W-2 is issued by a
8181 11 professional employer organization and is a full-time employee
8282 12 if he or she is employed in the service of the applicant for a
8383 13 basic wage for at least 35 hours each week.
8484 14 "Immediate family" means a spouse, other than a spouse who
8585 15 is legally separated from the individual under a decree of
8686 16 divorce or separate maintenance, parent, grandparent, sibling,
8787 17 child, by blood, marriage, or adoption, grandchild, and
8888 18 stepchild, by blood, marriage, or adoption.
8989 19 "Terminal operator" means an individual, partnership,
9090 20 corporation, or limited liability company that is licensed
9191 21 under this Act and that owns, services, and maintains video
9292 22 gaming terminals for placement in licensed establishments,
9393 23 licensed truck stop establishments, licensed large truck stop
9494 24 establishments, licensed fraternal establishments, or licensed
9595 25 veterans establishments.
9696 26 "Licensed technician" means an individual who is licensed
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107107 1 under this Act to repair, service, and maintain video gaming
108108 2 terminals.
109109 3 "Licensed terminal handler" means a person, including but
110110 4 not limited to an employee or independent contractor working
111111 5 for a manufacturer, distributor, supplier, technician, or
112112 6 terminal operator, who is licensed under this Act to possess
113113 7 or control a video gaming terminal or to have access to the
114114 8 inner workings of a video gaming terminal. A licensed terminal
115115 9 handler does not include an individual, partnership,
116116 10 corporation, or limited liability company defined as a
117117 11 manufacturer, distributor, supplier, technician, or terminal
118118 12 operator under this Act.
119119 13 "Manufacturer" means an individual, partnership,
120120 14 corporation, or limited liability company that is licensed
121121 15 under this Act and that manufactures or assembles video gaming
122122 16 terminals.
123123 17 "Supplier" means an individual, partnership, corporation,
124124 18 or limited liability company that is licensed under this Act
125125 19 to supply major components or parts to video gaming terminals
126126 20 to licensed terminal operators.
127127 21 "Net terminal income" means money put into a video gaming
128128 22 terminal minus credits paid out to players.
129129 23 "Video gaming terminal" means any electronic video game
130130 24 machine that, upon insertion of cash, electronic cards or
131131 25 vouchers, or any combination thereof, is available to play or
132132 26 simulate the play of a video game, including but not limited to
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143143 1 video poker, line up, and blackjack, as authorized by the
144144 2 Board utilizing a video display and microprocessors in which
145145 3 the player may receive free games or credits that can be
146146 4 redeemed for cash. The term does not include a machine that
147147 5 directly dispenses coins, cash, or tokens or is for amusement
148148 6 purposes only.
149149 7 "Licensed establishment" means any licensed retail
150150 8 establishment where alcoholic liquor is drawn, poured, mixed,
151151 9 or otherwise served for consumption on the premises, whether
152152 10 the establishment operates on a nonprofit or for-profit basis.
153153 11 "Licensed establishment" includes any such establishment that
154154 12 has a contractual relationship with an inter-track wagering
155155 13 location licensee licensed under the Illinois Horse Racing Act
156156 14 of 1975, provided any contractual relationship shall not
157157 15 include any transfer or offer of revenue from the operation of
158158 16 video gaming under this Act to any licensee licensed under the
159159 17 Illinois Horse Racing Act of 1975. Provided, however, that the
160160 18 licensed establishment that has such a contractual
161161 19 relationship with an inter-track wagering location licensee
162162 20 may not, itself, be (i) an inter-track wagering location
163163 21 licensee, (ii) the corporate parent or subsidiary of any
164164 22 licensee licensed under the Illinois Horse Racing Act of 1975,
165165 23 or (iii) the corporate subsidiary of a corporation that is
166166 24 also the corporate parent or subsidiary of any licensee
167167 25 licensed under the Illinois Horse Racing Act of 1975.
168168 26 "Licensed establishment" does not include a facility operated
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179179 1 by an organization licensee, an inter-track wagering licensee,
180180 2 or an inter-track wagering location licensee licensed under
181181 3 the Illinois Horse Racing Act of 1975 or a riverboat licensed
182182 4 under the Illinois Gambling Act, except as provided in this
183183 5 paragraph. The changes made to this definition by Public Act
184184 6 98-587 are declarative of existing law.
185185 7 "Licensed fraternal establishment" means the location
186186 8 where a qualified fraternal organization that derives its
187187 9 charter from a national fraternal organization regularly
188188 10 meets.
189189 11 "Licensed veterans establishment" means the location where
190190 12 a qualified veterans organization that derives its charter
191191 13 from a national veterans organization regularly meets.
192192 14 "Licensed truck stop establishment" means a facility (i)
193193 15 that is at least a 3-acre facility with a convenience store,
194194 16 (ii) with separate diesel islands for fueling commercial motor
195195 17 vehicles, (iii) that sells at retail more than 10,000 gallons
196196 18 of diesel or biodiesel fuel per month, and (iv) with parking
197197 19 spaces for commercial motor vehicles. "Commercial motor
198198 20 vehicles" has the same meaning as defined in Section 18b-101
199199 21 of the Illinois Vehicle Code. The requirement of item (iii) of
200200 22 this paragraph may be met by showing that estimated future
201201 23 sales or past sales average at least 10,000 gallons per month.
202202 24 "Licensed large truck stop establishment" means a facility
203203 25 located within 3 road miles from a freeway interchange, as
204204 26 measured in accordance with the Department of Transportation's
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215215 1 rules regarding the criteria for the installation of business
216216 2 signs: (i) that is at least a 3-acre facility with a
217217 3 convenience store, (ii) with separate diesel islands for
218218 4 fueling commercial motor vehicles, (iii) that sells at retail
219219 5 more than 50,000 gallons of diesel or biodiesel fuel per
220220 6 month, and (iv) with parking spaces for commercial motor
221221 7 vehicles. "Commercial motor vehicles" has the same meaning as
222222 8 defined in Section 18b-101 of the Illinois Vehicle Code. The
223223 9 requirement of item (iii) of this paragraph may be met by
224224 10 showing that estimated future sales or past sales average at
225225 11 least 50,000 gallons per month.
226226 12 "Sales agent and broker" means an individual, partnership,
227227 13 corporation, limited liability company, or other business
228228 14 entity engaged in the solicitation or receipt of business from
229229 15 current or potential licensed establishments, licensed
230230 16 fraternal establishments, licensed veterans establishments,
231231 17 licensed truck stop establishments, or licensed large truck
232232 18 stop establishments employed by a terminal operator on a
233233 19 full-time basis either on an employment or contractual basis.
234234 20 (Source: P.A. 101-31, eff. 6-28-19; 102-689, eff. 12-17-21.)
235235 21 (230 ILCS 40/25)
236236 22 Sec. 25. Restriction of licensees.
237237 23 (a) Manufacturer. A person may not be licensed as a
238238 24 manufacturer of a video gaming terminal in Illinois unless the
239239 25 person has a valid manufacturer's license issued under this
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250250 1 Act. A manufacturer may only sell video gaming terminals for
251251 2 use in Illinois to persons having a valid distributor's
252252 3 license.
253253 4 (b) Distributor. A person may not sell, distribute, or
254254 5 lease or market a video gaming terminal in Illinois unless the
255255 6 person has a valid distributor's license issued under this
256256 7 Act. A distributor may only sell video gaming terminals for
257257 8 use in Illinois to persons having a valid distributor's or
258258 9 terminal operator's license.
259259 10 (c) Terminal operator. A person may not own, maintain, or
260260 11 place a video gaming terminal unless he has a valid terminal
261261 12 operator's license issued under this Act. A terminal operator
262262 13 may only place video gaming terminals for use in Illinois in
263263 14 licensed establishments, licensed truck stop establishments,
264264 15 licensed large truck stop establishments, licensed fraternal
265265 16 establishments, and licensed veterans establishments. No
266266 17 terminal operator may give anything of value, including but
267267 18 not limited to a loan or financing arrangement, to a licensed
268268 19 establishment, licensed truck stop establishment, licensed
269269 20 large truck stop establishment, licensed fraternal
270270 21 establishment, or licensed veterans establishment as any
271271 22 incentive or inducement to locate video terminals in that
272272 23 establishment. Of the after-tax profits from a video gaming
273273 24 terminal, 50% shall be paid to the terminal operator and 50%
274274 25 shall be paid to the licensed establishment, licensed truck
275275 26 stop establishment, licensed large truck stop establishment,
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286286 1 licensed fraternal establishment, or licensed veterans
287287 2 establishment, notwithstanding any agreement to the contrary.
288288 3 (1) No terminal operator shall compensate a sales
289289 4 agent and broker based on a (i) percentage of the
290290 5 after-tax profits from a video gaming terminal, (ii) the
291291 6 net terminal income from a video gaming terminal or
292292 7 attributed to licensed establishments, licensed truck stop
293293 8 establishments, licensed large truck stop establishments,
294294 9 licensed fraternal establishments, and licensed veterans
295295 10 establishments, or (iii) any other compensation metric
296296 11 based upon the performance of a video gaming terminal in a
297297 12 single, or series of, licensed establishments, licensed
298298 13 truck stop establishments, licensed large truck stop
299299 14 establishments, licensed fraternal establishments, and
300300 15 licensed veterans establishments that such sales agent or
301301 16 broker has procured on behalf of the terminal operator.
302302 17 (2) A terminal operator shall not enter into any
303303 18 contract or agreement for the sharing, splitting, or
304304 19 payment of net terminal income with any other person,
305305 20 except as stated in paragraph (4). Any contract or
306306 21 agreement for the sharing, splitting, or payment of net
307307 22 terminal income with any other person executed before
308308 23 January 1, 2025 shall not be amended, modified, or
309309 24 extended.
310310 25 (3) No terminal operator shall compensate any person
311311 26 other than its owner based on a (i) percentage of the
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322322 1 after-tax profits from a video gaming terminal, (ii) the
323323 2 net terminal income from a video gaming terminal or
324324 3 attributed to licensed establishments, licensed truck stop
325325 4 establishments, licensed large truck stop establishments,
326326 5 licensed fraternal establishments, and licensed veterans
327327 6 establishments, or (iii) any other compensation metric
328328 7 based upon the performance of a video gaming terminal in a
329329 8 single, or series of, licensed establishments, licensed
330330 9 truck stop establishments, licensed large truck stop
331331 10 establishments, licensed fraternal establishments, and
332332 11 licensed veterans establishments, except as stated in
333333 12 paragraph (4).
334334 13 (4) A terminal operator may enter into a contract or
335335 14 agreement for the sharing, splitting, or payment of net
336336 15 terminal income with any other person if such contract is
337337 16 approved by the Board pursuant to rules adopted by the
338338 17 Board.
339339 18 (5) A video terminal operator that violates one or
340340 19 more requirements of this subsection is guilty of a Class
341341 20 4 felony and is subject to termination of his or her
342342 21 license by the Board.
343343 22 (d) Licensed technician. A person may not service,
344344 23 maintain, or repair a video gaming terminal in this State
345345 24 unless he or she (1) has a valid technician's license issued
346346 25 under this Act, (2) is a terminal operator, or (3) is employed
347347 26 by a terminal operator, distributor, or manufacturer.
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358358 1 (d-5) Licensed terminal handler. No person, including, but
359359 2 not limited to, an employee or independent contractor working
360360 3 for a manufacturer, distributor, supplier, technician, or
361361 4 terminal operator licensed pursuant to this Act, shall have
362362 5 possession or control of a video gaming terminal, or access to
363363 6 the inner workings of a video gaming terminal, unless that
364364 7 person possesses a valid terminal handler's license issued
365365 8 under this Act.
366366 9 (d-10) Solicitation of use agreements.
367367 10 (1) A person may not solicit the signing of a use
368368 11 agreement on behalf of a terminal operator or enter into a
369369 12 use agreement as agent of a terminal operator unless that
370370 13 person either has a valid sales agent and broker license
371371 14 issued under this Act or owns, manages, or significantly
372372 15 influences or controls the terminal operator. Any
373373 16 compensation paid to a sales agent and broker by a
374374 17 terminal operator must be pursuant to a written agreement
375375 18 or written policy and submitted to the Board.
376376 19 (2) No sales agent and broker may give anything of
377377 20 value, including, but not limited to, a loan or financing
378378 21 arrangement, to a current or potential licensed
379379 22 establishments, licensed truck stop establishments,
380380 23 licensed large truck stop establishments, licensed
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382382 25 establishments as any incentive or inducement to locate
383383 26 video terminals in that licensed establishments, licensed
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394394 1 truck stop establishments, licensed large truck stop
395395 2 establishments, licensed fraternal establishments, and
396396 3 licensed veterans establishments. No sales agent and
397397 4 broker shall be compensated based on a (i) percentage of
398398 5 the after-tax profits from a video gaming terminal, (ii)
399399 6 the net terminal income from a video gaming terminal or
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401401 8 establishments, licensed large truck stop establishments,
402402 9 licensed fraternal establishments, and licensed veterans
403403 10 establishments, or (iii) any other compensation metric
404404 11 based upon the performance of a video gaming terminal in a
405405 12 single, or series of, licensed establishments, licensed
406406 13 truck stop establishments, licensed large truck stop
407407 14 establishments, licensed fraternal establishments, and
408408 15 licensed veterans establishments that such sales agent or
409409 16 broker has procured on behalf of a terminal operator. A
410410 17 sales agent and broker that violates this paragraph is
411411 18 guilty of a Class 4 felony and is subject to termination of
412412 19 his or her license by the Board.
413413 20 (3) No sales agent and broker that is not otherwise an
414414 21 owner of a terminal operator may solicit or procure a use
415415 22 agreement or any other contract or agreement that purports
416416 23 to control or authorize the placement or operation of a
417417 24 video gaming terminal on behalf of a terminal operator
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419419 26 licensed truck stop establishments, licensed large truck
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430430 1 stop establishments, licensed fraternal establishments,
431431 2 and licensed veterans establishments if that person is an
432432 3 immediate family member of (i) a direct or indirect owner,
433433 4 (ii) officer, (iii) director, (iv) manager, (v) employee,
434434 5 or (vi) a person who otherwise significantly influences or
435435 6 controls the licensed establishments, licensed truck stop
436436 7 establishments, licensed large truck stop establishments,
437437 8 licensed fraternal establishments, and licensed veterans
438438 9 establishments. Any use agreement that does not comply
439439 10 with this paragraph shall be null and void.
440440 11 (4) Any use agreement currently authorizing the
441441 12 placement and operation of video gaming may continue as a
442442 13 valid and enforceable use agreement through the end of the
443443 14 current use agreement term, but shall not be amended,
444444 15 modified, extended, or renewed after the effective date of
445445 16 this amendatory Act of the 104th General Assembly;
446446 17 however, if the licensed establishments, licensed truck
447447 18 stop establishments, licensed large truck stop
448448 19 establishments, licensed fraternal establishments, and
449449 20 licensed veterans establishments that is subject to an
450450 21 agreement for the sharing, splitting, or payment of net
451451 22 terminal income has not been authorized to go live with
452452 23 video gaming by the Board or transitioned to a new
453453 24 terminal operator to go live with video gaming by January
454454 25 1, 2025, then that agreement with the sales agent shall be
455455 26 void ab initio.
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466466 1 (e) Licensed establishment. No video gaming terminal may
467467 2 be placed in any licensed establishment, licensed veterans
468468 3 establishment, licensed truck stop establishment, licensed
469469 4 large truck stop establishment, or licensed fraternal
470470 5 establishment unless the owner or agent of the owner of the
471471 6 licensed establishment, licensed veterans establishment,
472472 7 licensed truck stop establishment, licensed large truck stop
473473 8 establishment, or licensed fraternal establishment has entered
474474 9 into a written use agreement with the terminal operator for
475475 10 placement of the terminals. A copy of the use agreement shall
476476 11 be on file in the terminal operator's place of business and
477477 12 available for inspection by individuals authorized by the
478478 13 Board. A licensed establishment, licensed truck stop
479479 14 establishment, licensed veterans establishment, or licensed
480480 15 fraternal establishment may operate up to 6 video gaming
481481 16 terminals on its premises at any time. A licensed large truck
482482 17 stop establishment may operate up to 10 video gaming terminals
483483 18 on its premises at any time. No current or potential licensed
484484 19 establishments, licensed truck stop establishments, licensed
485485 20 large truck stop establishments, licensed fraternal
486486 21 establishments, and licensed veterans establishments shall
487487 22 accept anything of value from a terminal operator or sales
488488 23 agent and broker, as any incentive or inducement to locate
489489 24 video gaming terminals in that establishment and licensed
490490 25 establishments, licensed truck stop establishments, licensed
491491 26 large truck stop establishments, licensed fraternal
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502502 1 establishments, and licensed veterans establishments. Any
503503 2 person who violates such prohibition is guilty of a Class 4
504504 3 felony and is subject to termination of his or her license by
505505 4 the Board.
506506 5 (f) (Blank).
507507 6 (g) Financial interest restrictions. As used in this Act,
508508 7 "substantial interest" in a partnership, a corporation, an
509509 8 organization, an association, a business, or a limited
510510 9 liability company means:
511511 10 (A) When, with respect to a sole proprietorship, an
512512 11 individual or his or her spouse owns, operates, manages,
513513 12 or conducts, directly or indirectly, the organization,
514514 13 association, or business, or any part thereof; or
515515 14 (B) When, with respect to a partnership, the
516516 15 individual or his or her spouse shares in any of the
517517 16 profits, or potential profits, of the partnership
518518 17 activities; or
519519 18 (C) When, with respect to a corporation, an individual
520520 19 or his or her spouse is an officer or director, or the
521521 20 individual or his or her spouse is a holder, directly or
522522 21 beneficially, of 5% or more of any class of stock of the
523523 22 corporation; or
524524 23 (D) When, with respect to an organization not covered
525525 24 in (A), (B) or (C) above, an individual or his or her
526526 25 spouse is an officer or manages the business affairs, or
527527 26 the individual or his or her spouse is the owner of or
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538538 1 otherwise controls 10% or more of the assets of the
539539 2 organization; or
540540 3 (E) When an individual or his or her spouse furnishes
541541 4 5% or more of the capital, whether in cash, goods, or
542542 5 services, for the operation of any business, association,
543543 6 or organization during any calendar year; or
544544 7 (F) When, with respect to a limited liability company,
545545 8 an individual or his or her spouse is a member, or the
546546 9 individual or his or her spouse is a holder, directly or
547547 10 beneficially, of 5% or more of the membership interest of
548548 11 the limited liability company.
549549 12 For purposes of this subsection (g), "individual" includes
550550 13 all individuals or their spouses whose combined interest would
551551 14 qualify as a substantial interest under this subsection (g)
552552 15 and whose activities with respect to an organization,
553553 16 association, or business are so closely aligned or coordinated
554554 17 as to constitute the activities of a single entity.
555555 18 (h) Location restriction. A licensed establishment,
556556 19 licensed truck stop establishment, licensed large truck stop
557557 20 establishment, licensed fraternal establishment, or licensed
558558 21 veterans establishment that is (i) located within 1,000 feet
559559 22 of a facility operated by an organization licensee licensed
560560 23 under the Illinois Horse Racing Act of 1975 or the home dock of
561561 24 a riverboat licensed under the Illinois Gambling Act or (ii)
562562 25 located within 100 feet of a school or a place of worship under
563563 26 the Religious Corporation Act, is ineligible to operate a
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574574 1 video gaming terminal. The location restrictions in this
575575 2 subsection (h) do not apply if (A) a facility operated by an
576576 3 organization licensee, a school, or a place of worship moves
577577 4 to or is established within the restricted area after a
578578 5 licensed establishment, licensed truck stop establishment,
579579 6 licensed large truck stop establishment, licensed fraternal
580580 7 establishment, or licensed veterans establishment becomes
581581 8 licensed under this Act or (B) a school or place of worship
582582 9 moves to or is established within the restricted area after a
583583 10 licensed establishment, licensed truck stop establishment,
584584 11 licensed large truck stop establishment, licensed fraternal
585585 12 establishment, or licensed veterans establishment obtains its
586586 13 original liquor license. For the purpose of this subsection,
587587 14 "school" means an elementary or secondary public school, or an
588588 15 elementary or secondary private school registered with or
589589 16 recognized by the State Board of Education.
590590 17 Notwithstanding the provisions of this subsection (h), the
591591 18 Board may waive the requirement that a licensed establishment,
592592 19 licensed truck stop establishment, licensed large truck stop
593593 20 establishment, licensed fraternal establishment, or licensed
594594 21 veterans establishment not be located within 1,000 feet from a
595595 22 facility operated by an organization licensee licensed under
596596 23 the Illinois Horse Racing Act of 1975 or the home dock of a
597597 24 riverboat licensed under the Illinois Gambling Act. The Board
598598 25 shall not grant such waiver if there is any common ownership or
599599 26 control, shared business activity, or contractual arrangement
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610610 1 of any type between the establishment and the organization
611611 2 licensee or owners licensee of a riverboat. The Board shall
612612 3 adopt rules to implement the provisions of this paragraph.
613613 4 (h-5) Restrictions on licenses in malls. The Board shall
614614 5 not grant an application to become a licensed video gaming
615615 6 location if the Board determines that granting the application
616616 7 would more likely than not cause a terminal operator,
617617 8 individually or in combination with other terminal operators,
618618 9 licensed video gaming location, or other person or entity, to
619619 10 operate the video gaming terminals in 2 or more licensed video
620620 11 gaming locations as a single video gaming operation.
621621 12 (1) In making determinations under this subsection
622622 13 (h-5), factors to be considered by the Board shall
623623 14 include, but not be limited to, the following:
624624 15 (A) the physical aspects of the location;
625625 16 (B) the ownership, control, or management of the
626626 17 location;
627627 18 (C) any arrangements, understandings, or
628628 19 agreements, written or otherwise, among or involving
629629 20 any persons or entities that involve the conducting of
630630 21 any video gaming business or the sharing of costs or
631631 22 revenues; and
632632 23 (D) the manner in which any terminal operator or
633633 24 other related entity markets, advertises, or otherwise
634634 25 describes any location or locations to any other
635635 26 person or entity or to the public.
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646646 1 (2) The Board shall presume, subject to rebuttal, that
647647 2 the granting of an application to become a licensed video
648648 3 gaming location within a mall will cause a terminal
649649 4 operator, individually or in combination with other
650650 5 persons or entities, to operate the video gaming terminals
651651 6 in 2 or more licensed video gaming locations as a single
652652 7 video gaming operation if the Board determines that
653653 8 granting the license would create a local concentration of
654654 9 licensed video gaming locations.
655655 10 For the purposes of this subsection (h-5):
656656 11 "Mall" means a building, or adjoining or connected
657657 12 buildings, containing 4 or more separate locations.
658658 13 "Video gaming operation" means the conducting of video
659659 14 gaming and all related activities.
660660 15 "Location" means a space within a mall containing a
661661 16 separate business, a place for a separate business, or a place
662662 17 subject to a separate leasing arrangement by the mall owner.
663663 18 "Licensed video gaming location" means a licensed
664664 19 establishment, licensed fraternal establishment, licensed
665665 20 veterans establishment, licensed truck stop establishment, or
666666 21 licensed large truck stop.
667667 22 "Local concentration of licensed video gaming locations"
668668 23 means that the combined number of licensed video gaming
669669 24 locations within a mall exceed half of the separate locations
670670 25 within the mall.
671671 26 (i) Undue economic concentration. In addition to
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682682 1 considering all other requirements under this Act, in deciding
683683 2 whether to approve the operation of video gaming terminals by
684684 3 a terminal operator in a location, the Board shall consider
685685 4 the impact of any economic concentration of such operation of
686686 5 video gaming terminals. The Board shall not allow a terminal
687687 6 operator to operate video gaming terminals if the Board
688688 7 determines such operation will result in undue economic
689689 8 concentration. For purposes of this Section, "undue economic
690690 9 concentration" means that a terminal operator would have such
691691 10 actual or potential influence over video gaming terminals in
692692 11 Illinois as to:
693693 12 (1) substantially impede or suppress competition among
694694 13 terminal operators;
695695 14 (2) adversely impact the economic stability of the
696696 15 video gaming industry in Illinois; or
697697 16 (3) negatively impact the purposes of the Video Gaming
698698 17 Act.
699699 18 The Board shall adopt rules concerning undue economic
700700 19 concentration with respect to the operation of video gaming
701701 20 terminals in Illinois. The rules shall include, but not be
702702 21 limited to, (i) limitations on the number of video gaming
703703 22 terminals operated by any terminal operator within a defined
704704 23 geographic radius and (ii) guidelines on the discontinuation
705705 24 of operation of any such video gaming terminals the Board
706706 25 determines will cause undue economic concentration.
707707 26 (j) The provisions of the Illinois Antitrust Act are fully
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