Bill Text: IL HB3729 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2025-02-18 - Referred to Rules Committee [HB3729 Detail]

Download: Illinois-2025-HB3729-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3729 Introduced , by Rep. Robert "Bob" Rita SYNOPSIS AS INTRODUCED:
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.
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A BILL FOR
HB3729 LRB104 10960 LNS 21042 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
Sections 5 and 25 as follows:
(230 ILCS 40/5)
Sec. 5. Definitions. As used in this Act:
"Board" means the Illinois Gaming Board.
"Credit" means one, 5, 10, or 25 cents either won or
purchased by a player.
"Distributor" means an individual, partnership,
corporation, or limited liability company licensed under this
Act to buy, sell, lease, or distribute video gaming terminals
or major components or parts of video gaming terminals to or
from terminal operators.
"Electronic card" means a card purchased from a licensed
establishment, licensed fraternal establishment, licensed
veterans establishment, licensed truck stop establishment, or
licensed large truck stop establishment for use in that
establishment as a substitute for cash in the conduct of
gaming on a video gaming terminal.
"Electronic voucher" means a voucher printed by an
electronic video game machine that is redeemable in the

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licensed establishment for which it was issued.
"In-location bonus jackpot" means one or more video gaming
terminals at a single licensed establishment that allows for
wagers placed on such video gaming terminals to contribute to
a cumulative maximum jackpot of up to $10,000.
"Full-time basis" means an individual who is employed for
a basic wage for at least 35 hours each week or who renders any
other standard of service generally accepted by industry
customs or practice as full-time employment. "Full-time basis"
includes an individual for whom a W-2 is issued by a
professional employer organization and is a full-time employee
if he or she is employed in the service of the applicant for a
basic wage for at least 35 hours each week.
"Immediate family" means a spouse, other than a spouse who
is legally separated from the individual under a decree of
divorce or separate maintenance, parent, grandparent, sibling,
child, by blood, marriage, or adoption, grandchild, and
stepchild, by blood, marriage, or adoption.
"Terminal operator" means an individual, partnership,
corporation, or limited liability company that is licensed
under this Act and that owns, services, and maintains video
gaming terminals for placement in licensed establishments,
licensed truck stop establishments, licensed large truck stop
establishments, licensed fraternal establishments, or licensed
veterans establishments.
"Licensed technician" means an individual who is licensed

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under this Act to repair, service, and maintain video gaming
terminals.
"Licensed terminal handler" means a person, including but
not limited to an employee or independent contractor working
for a manufacturer, distributor, supplier, technician, or
terminal operator, who is licensed under this Act to possess
or control a video gaming terminal or to have access to the
inner workings of a video gaming terminal. A licensed terminal
handler does not include an individual, partnership,
corporation, or limited liability company defined as a
manufacturer, distributor, supplier, technician, or terminal
operator under this Act.
"Manufacturer" means an individual, partnership,
corporation, or limited liability company that is licensed
under this Act and that manufactures or assembles video gaming
terminals.
"Supplier" means an individual, partnership, corporation,
or limited liability company that is licensed under this Act
to supply major components or parts to video gaming terminals
to licensed terminal operators.
"Net terminal income" means money put into a video gaming
terminal minus credits paid out to players.
"Video gaming terminal" means any electronic video game
machine that, upon insertion of cash, electronic cards or
vouchers, or any combination thereof, is available to play or
simulate the play of a video game, including but not limited to

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video poker, line up, and blackjack, as authorized by the
Board utilizing a video display and microprocessors in which
the player may receive free games or credits that can be
redeemed for cash. The term does not include a machine that
directly dispenses coins, cash, or tokens or is for amusement
purposes only.
"Licensed establishment" means any licensed retail
establishment where alcoholic liquor is drawn, poured, mixed,
or otherwise served for consumption on the premises, whether
the establishment operates on a nonprofit or for-profit basis.
"Licensed establishment" includes any such establishment that
has a contractual relationship with an inter-track wagering
location licensee licensed under the Illinois Horse Racing Act
of 1975, provided any contractual relationship shall not
include any transfer or offer of revenue from the operation of
video gaming under this Act to any licensee licensed under the
Illinois Horse Racing Act of 1975. Provided, however, that the
licensed establishment that has such a contractual
relationship with an inter-track wagering location licensee
may not, itself, be (i) an inter-track wagering location
licensee, (ii) the corporate parent or subsidiary of any
licensee licensed under the Illinois Horse Racing Act of 1975,
or (iii) the corporate subsidiary of a corporation that is
also the corporate parent or subsidiary of any licensee
licensed under the Illinois Horse Racing Act of 1975.
"Licensed establishment" does not include a facility operated

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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 a riverboat licensed
under the Illinois Gambling Act, except as provided in this
paragraph. The changes made to this definition by Public Act
98-587 are declarative of existing law.
"Licensed fraternal establishment" means the location
where a qualified fraternal organization that derives its
charter from a national fraternal organization regularly
meets.
"Licensed veterans establishment" means the location where
a qualified veterans organization that derives its charter
from a national veterans organization regularly meets.
"Licensed truck stop establishment" means a facility (i)
that is at least a 3-acre facility with a convenience store,
(ii) with separate diesel islands for fueling commercial motor
vehicles, (iii) that sells at retail more than 10,000 gallons
of diesel or biodiesel fuel per month, and (iv) with parking
spaces for commercial motor vehicles. "Commercial motor
vehicles" has the same meaning as defined in Section 18b-101
of the Illinois Vehicle Code. The requirement of item (iii) of
this paragraph may be met by showing that estimated future
sales or past sales average at least 10,000 gallons per month.
"Licensed large truck stop establishment" means a facility
located within 3 road miles from a freeway interchange, as
measured in accordance with the Department of Transportation's

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rules regarding the criteria for the installation of business
signs: (i) that is at least a 3-acre facility with a
convenience store, (ii) with separate diesel islands for
fueling commercial motor vehicles, (iii) that sells at retail
more than 50,000 gallons of diesel or biodiesel fuel per
month, and (iv) with parking spaces for commercial motor
vehicles. "Commercial motor vehicles" has the same meaning as
defined in Section 18b-101 of the Illinois Vehicle Code. The
requirement of item (iii) of this paragraph may be met by
showing that estimated future sales or past sales average at
least 50,000 gallons per month.
"Sales agent and broker" means an individual, partnership,
corporation, limited liability company, or other business
entity engaged in the solicitation or receipt of business from
current or potential licensed establishments, licensed
fraternal establishments, licensed veterans establishments,
licensed truck stop establishments, or licensed large truck
stop establishments employed by a terminal operator on a
full-time basis either on an employment or contractual basis.
(Source: P.A. 101-31, eff. 6-28-19; 102-689, eff. 12-17-21.)
(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

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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 large 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
large 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 large truck stop establishment,

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licensed fraternal establishment, or licensed veterans
establishment, notwithstanding any agreement to the contrary.
(1) No terminal operator shall compensate a sales
agent and broker based on a (i) percentage of the
after-tax profits from a video gaming terminal, (ii) the
net terminal income from a video gaming terminal or
attributed to licensed establishments, licensed truck stop
establishments, licensed large truck stop establishments,
licensed fraternal establishments, and licensed veterans
establishments, or (iii) any other compensation metric
based upon the performance of a video gaming terminal in a
single, or series of, licensed establishments, licensed
truck stop establishments, licensed large truck stop
establishments, licensed fraternal establishments, and
licensed veterans establishments that such sales agent or
broker has procured on behalf of the terminal operator.
(2) 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,
except as stated in paragraph (4). Any contract or
agreement for the sharing, splitting, or payment of net
terminal income with any other person executed before
January 1, 2025 shall not be amended, modified, or
extended.
(3) No terminal operator shall compensate any person
other than its owner based on a (i) percentage of the

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after-tax profits from a video gaming terminal, (ii) the
net terminal income from a video gaming terminal or
attributed to licensed establishments, licensed truck stop
establishments, licensed large truck stop establishments,
licensed fraternal establishments, and licensed veterans
establishments, or (iii) any other compensation metric
based upon the performance of a video gaming terminal in a
single, or series of, licensed establishments, licensed
truck stop establishments, licensed large truck stop
establishments, licensed fraternal establishments, and
licensed veterans establishments, except as stated in
paragraph (4).
(4) A terminal operator may 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 Board pursuant to rules adopted by the
Board.
(5) 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.

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(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.
(d-10) Solicitation of use agreements.
(1) A person may not solicit the signing of a use
agreement on behalf of a terminal operator or enter into a
use agreement as agent of a terminal operator unless that
person either has a valid sales agent and broker license
issued under this Act or owns, manages, or significantly
influences or controls the terminal operator. Any
compensation paid to a sales agent and broker by a
terminal operator must be pursuant to a written agreement
or written policy and submitted to the Board.
(2) No sales agent and broker may give anything of
value, including, but not limited to, a loan or financing
arrangement, to a current or potential licensed
establishments, licensed truck stop establishments,
licensed large truck stop establishments, licensed
fraternal establishments, and licensed veterans
establishments as any incentive or inducement to locate
video terminals in that licensed establishments, licensed

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truck stop establishments, licensed large truck stop
establishments, licensed fraternal establishments, and
licensed veterans establishments. No sales agent and
broker shall be compensated based on a (i) percentage of
the after-tax profits from a video gaming terminal, (ii)
the net terminal income from a video gaming terminal or
attributed to licensed establishments, licensed truck stop
establishments, licensed large truck stop establishments,
licensed fraternal establishments, and licensed veterans
establishments, or (iii) any other compensation metric
based upon the performance of a video gaming terminal in a
single, or series of, licensed establishments, licensed
truck stop establishments, licensed large truck stop
establishments, licensed fraternal establishments, and
licensed veterans establishments that such sales agent or
broker has procured on behalf of a terminal operator. A
sales agent and broker that violates this paragraph is
guilty of a Class 4 felony and is subject to termination of
his or her license by the Board.
(3) No sales agent and broker that is not otherwise an
owner of a terminal operator may 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 establishments,
licensed truck stop establishments, licensed large truck

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stop establishments, licensed fraternal establishments,
and licensed veterans establishments if that person is an
immediate family member of (i) a direct or indirect owner,
(ii) officer, (iii) director, (iv) manager, (v) employee,
or (vi) a person who otherwise significantly influences or
controls the licensed establishments, licensed truck stop
establishments, licensed large truck stop establishments,
licensed fraternal establishments, and licensed veterans
establishments. Any use agreement that does not comply
with this paragraph shall be null and void.
(4) 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
this amendatory Act of the 104th General Assembly;
however, if the licensed establishments, licensed truck
stop establishments, licensed large truck stop
establishments, licensed fraternal establishments, and
licensed veterans establishments that is subject to an
agreement for the sharing, splitting, or payment of net
terminal income has not been authorized to go live with
video gaming by the Board or transitioned to a new
terminal operator to go live with video gaming by January
1, 2025, then that agreement with the sales agent shall be
void ab initio.

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(e) Licensed establishment. No video gaming terminal may
be placed in any licensed establishment, licensed veterans
establishment, licensed truck stop establishment, licensed
large 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, licensed large 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 6 video gaming
terminals on its premises at any time. A licensed large truck
stop establishment may operate up to 10 video gaming terminals
on its premises at any time. No current or potential licensed
establishments, licensed truck stop establishments, licensed
large truck stop establishments, licensed fraternal
establishments, and licensed veterans establishments shall
accept 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, licensed truck stop establishments, licensed
large truck stop establishments, licensed fraternal

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establishments, and licensed veterans establishments. Any
person who violates such prohibition is guilty of a Class 4
felony and is subject to termination of his or her license by
the Board.
(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

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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 large 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 licensed
under the Illinois Horse Racing Act of 1975 or the home dock of
a riverboat licensed under the Illinois 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

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video gaming terminal. The location restrictions in this
subsection (h) do not apply if (A) a facility operated by an
organization 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 large 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 large 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 large 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 licensed under
the Illinois Horse Racing Act of 1975 or the home dock of a
riverboat licensed under the Illinois Gambling Act. The Board
shall not grant such waiver if there is any common ownership or
control, shared business activity, or contractual arrangement

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of any type between the establishment and the organization
licensee or owners licensee of a riverboat. The Board shall
adopt rules to implement the provisions of this paragraph.
(h-5) Restrictions on licenses in malls. The Board shall
not grant an application to become a licensed video gaming
location if the Board determines that granting the application
would more likely than not cause a terminal operator,
individually or in combination with other terminal operators,
licensed video gaming location, or other person or entity, to
operate the video gaming terminals in 2 or more licensed video
gaming locations as a single video gaming operation.
(1) In making determinations under this subsection
(h-5), factors to be considered by the Board shall
include, but not be limited to, the following:
(A) the physical aspects of the location;
(B) the ownership, control, or management of the
location;
(C) any arrangements, understandings, or
agreements, written or otherwise, among or involving
any persons or entities that involve the conducting of
any video gaming business or the sharing of costs or
revenues; and
(D) the manner in which any terminal operator or
other related entity markets, advertises, or otherwise
describes any location or locations to any other
person or entity or to the public.

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(2) The Board shall presume, subject to rebuttal, that
the granting of an application to become a licensed video
gaming location within a mall will cause a terminal
operator, individually or in combination with other
persons or entities, to operate the video gaming terminals
in 2 or more licensed video gaming locations as a single
video gaming operation if the Board determines that
granting the license would create a local concentration of
licensed video gaming locations.
For the purposes of this subsection (h-5):
"Mall" means a building, or adjoining or connected
buildings, containing 4 or more separate locations.
"Video gaming operation" means the conducting of video
gaming and all related activities.
"Location" means a space within a mall containing a
separate business, a place for a separate business, or a place
subject to a separate leasing arrangement by the mall owner.
"Licensed video gaming location" means a licensed
establishment, licensed fraternal establishment, licensed
veterans establishment, licensed truck stop establishment, or
licensed large truck stop.
"Local concentration of licensed video gaming locations"
means that the combined number of licensed video gaming
locations within a mall exceed half of the separate locations
within the mall.
(i) Undue economic concentration. In addition to

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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

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and equally applicable to the activities of any licensee under
this Act.
(Source: P.A. 101-31, eff. 6-28-19; 102-689, eff. 12-17-21.)