Bill Text: IL HB5367 | 2023-2024 | 103rd General Assembly | Engrossed
Bill Title: Amends the Video Gaming Act. Provides that the Illinois Gaming Board may waive the requirement that a licensed establishment, licensed truck stop establishment, licensed large truck stop establishment, licensed fraternal establishment, or licensed veterans establishment not be located within 100 feet of a place of worship under the Religious Corporation Act if: (i) the establishment is not located within 100 feet of a school or, if the establishment is located within 100 feet of a school, the superintendent of the school district or the chief administrative officer of the nonpublic school has signed a letter of support for the waiver; (ii) the mayor or president of the municipality or, if within an unincorporated area of a county, the chairperson of the county board where the licensed establishment is located has signed a letter of support for the waiver; and (iii) the principal religious leader at the place of worship has not indicated his or her opposition to the waiver in writing.
Spectrum: Slight Partisan Bill (Democrat 9-3)
Status: (Engrossed) 2024-05-25 - Rule 2-10 Committee/3rd Reading Deadline Established As May 26, 2024 [HB5367 Detail]
Download: Illinois-2023-HB5367-Engrossed.html
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1 | AN ACT concerning gaming.
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2 | Be it enacted by the People of the State of Illinois, | ||||||
3 | represented in the General Assembly:
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4 | Section 5. The Video Gaming Act is amended by changing | ||||||
5 | Section 25 as follows:
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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 |
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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 |
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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 |
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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 |
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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 100 feet of a school or a place of worship under | ||||||
26 | the Religious Corporation Act, is ineligible to operate a |
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1 | video gaming terminal. The location restrictions in this | ||||||
2 | subsection (h) do not apply if (A) a facility operated by an | ||||||
3 | organization licensee, a school, or a place of worship moves | ||||||
4 | to or is established within the restricted area after a | ||||||
5 | licensed establishment, licensed truck stop establishment, | ||||||
6 | licensed large truck stop establishment, licensed fraternal | ||||||
7 | establishment, or licensed veterans establishment becomes | ||||||
8 | licensed under this Act or (B) a school or 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 obtains its | ||||||
13 | original liquor license. For the purpose of this subsection, | ||||||
14 | "school" means an elementary or secondary public school, or an | ||||||
15 | elementary or secondary private school registered with or | ||||||
16 | recognized by the State Board of Education. | ||||||
17 | Notwithstanding the provisions of this subsection (h), the | ||||||
18 | Board may waive the requirement that a licensed establishment, | ||||||
19 | licensed truck stop establishment, licensed large truck stop | ||||||
20 | establishment, licensed fraternal establishment, or licensed | ||||||
21 | veterans establishment not be located within 1,000 feet from a | ||||||
22 | facility operated by an organization licensee licensed under | ||||||
23 | the Illinois Horse Racing Act of 1975 or the home dock of a | ||||||
24 | riverboat licensed under the Illinois Gambling Act. The Board | ||||||
25 | shall not grant such waiver if there is any common ownership or | ||||||
26 | control, shared business activity, or contractual arrangement |
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1 | of any type between the establishment and the organization | ||||||
2 | licensee or owners licensee of a riverboat. The Board shall | ||||||
3 | adopt rules to implement the provisions of this paragraph. | ||||||
4 | Notwithstanding the provisions of this subsection (h), the | ||||||
5 | Board may waive the requirement that a licensed establishment, | ||||||
6 | licensed truck stop establishment, licensed large truck stop | ||||||
7 | establishment, licensed fraternal establishment, or licensed | ||||||
8 | veterans establishment not be located within 100 feet of a | ||||||
9 | place of worship under the Religious Corporation Act if the | ||||||
10 | following conditions, as applicable, are met: | ||||||
11 | (1) the licensed establishment, licensed truck stop | ||||||
12 | establishment, licensed large truck stop establishment, | ||||||
13 | licensed fraternal establishment, or licensed veterans | ||||||
14 | establishment is not located within 100 feet of a school | ||||||
15 | or, if the establishment is located within 100 feet of a | ||||||
16 | school, the superintendent of the school district or the | ||||||
17 | chief administrative officer of the nonpublic school has | ||||||
18 | signed a letter of support for the waiver; | ||||||
19 | (2) the mayor or president of the municipality or, if | ||||||
20 | within an unincorporated area of a county, the chairperson | ||||||
21 | of the county board where the licensed establishment, | ||||||
22 | licensed truck stop establishment, licensed large truck | ||||||
23 | stop establishment, licensed fraternal establishment, or | ||||||
24 | licensed veterans establishment is located has signed a | ||||||
25 | letter of support for the waiver; and | ||||||
26 | (3) the principal religious leader at the place of |
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1 | worship has not indicated his or her opposition to the | ||||||
2 | waiver in writing. | ||||||
3 | (h-5) Restrictions on licenses in malls. The Board shall | ||||||
4 | not grant an application to become a licensed video gaming | ||||||
5 | location if the Board determines that granting the application | ||||||
6 | would more likely than not cause a terminal operator, | ||||||
7 | individually or in combination with other terminal operators, | ||||||
8 | licensed video gaming location, or other person or entity, to | ||||||
9 | operate the video gaming terminals in 2 or more licensed video | ||||||
10 | gaming locations as a single video gaming operation. | ||||||
11 | (1) In making determinations under this subsection | ||||||
12 | (h-5), factors to be considered by the Board shall | ||||||
13 | include, but not be limited to, the following: | ||||||
14 | (A) the physical aspects of the location; | ||||||
15 | (B) the ownership, control, or management of the | ||||||
16 | location; | ||||||
17 | (C) any arrangements, understandings, or | ||||||
18 | agreements, written or otherwise, among or involving | ||||||
19 | any persons or entities that involve the conducting of | ||||||
20 | any video gaming business or the sharing of costs or | ||||||
21 | revenues; and | ||||||
22 | (D) the manner in which any terminal operator or | ||||||
23 | other related entity markets, advertises, or otherwise | ||||||
24 | describes any location or locations to any other | ||||||
25 | person or entity or to the public. | ||||||
26 | (2) The Board shall presume, subject to rebuttal, that |
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1 | the granting of an application to become a licensed video | ||||||
2 | gaming location within a mall will cause a terminal | ||||||
3 | operator, individually or in combination with other | ||||||
4 | persons or entities, to operate the video gaming terminals | ||||||
5 | in 2 or more licensed video gaming locations as a single | ||||||
6 | video gaming operation if the Board determines that | ||||||
7 | granting the license would create a local concentration of | ||||||
8 | licensed video gaming locations. | ||||||
9 | For the purposes of this subsection (h-5): | ||||||
10 | "Mall" means a building, or adjoining or connected | ||||||
11 | buildings, containing 4 or more separate locations. | ||||||
12 | "Video gaming operation" means the conducting of video | ||||||
13 | gaming and all related activities. | ||||||
14 | "Location" means a space within a mall containing a | ||||||
15 | separate business, a place for a separate business, or a place | ||||||
16 | subject to a separate leasing arrangement by the mall owner. | ||||||
17 | "Licensed video gaming location" means a licensed | ||||||
18 | establishment, licensed fraternal establishment, licensed | ||||||
19 | veterans establishment, licensed truck stop establishment, or | ||||||
20 | licensed large truck stop. | ||||||
21 | "Local concentration of licensed video gaming locations" | ||||||
22 | means that the combined number of licensed video gaming | ||||||
23 | locations within a mall exceed half of the separate locations | ||||||
24 | within the mall. | ||||||
25 | (i) Undue economic concentration. In addition to | ||||||
26 | considering all other requirements under this Act, in deciding |
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1 | whether to approve the operation of video gaming terminals by | ||||||
2 | a terminal operator in a location, the Board shall consider | ||||||
3 | the impact of any economic concentration of such operation of | ||||||
4 | video gaming terminals. The Board shall not allow a terminal | ||||||
5 | operator to operate video gaming terminals if the Board | ||||||
6 | determines such operation will result in undue economic | ||||||
7 | concentration. For purposes of this Section, "undue economic | ||||||
8 | concentration" means that a terminal operator would have such | ||||||
9 | actual or potential influence over video gaming terminals in | ||||||
10 | Illinois as to: | ||||||
11 | (1) substantially impede or suppress competition among | ||||||
12 | terminal operators; | ||||||
13 | (2) adversely impact the economic stability of the | ||||||
14 | video gaming industry in Illinois; or | ||||||
15 | (3) negatively impact the purposes of the Video Gaming | ||||||
16 | Act. | ||||||
17 | The Board shall adopt rules concerning undue economic | ||||||
18 | concentration with respect to the operation of video gaming | ||||||
19 | terminals in Illinois. The rules shall include, but not be | ||||||
20 | limited to, (i) limitations on the number of video gaming | ||||||
21 | terminals operated by any terminal operator within a defined | ||||||
22 | geographic radius and (ii) guidelines on the discontinuation | ||||||
23 | of operation of any such video gaming terminals the Board | ||||||
24 | determines will cause undue economic concentration. | ||||||
25 | (j) The provisions of the Illinois Antitrust Act are fully | ||||||
26 | and equally applicable to the activities of any licensee under |
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1 | this Act. | ||||||
2 | (Source: P.A. 101-31, eff. 6-28-19; 102-689, eff. 12-17-21.)
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