Bill Text: IL HB4048 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: Amends the Video Gaming Act. Increases the maximum wager played per hand from $2 to $4. Increases the maximum cash award for a wager on any individual hand from $500 to $1,199. Adds a maximum cash award for the maximum wager on a jackpot, progressive or otherwise, of $10,000. Provides that no terminal operator or officer, employee, or agent of a terminal operator (currently, no terminal operator) may offer, promise, or give anything of value (currently, may give anything of value), including, but not limited to, a loan or financing arrangement, to a licensed establishment, licensed truck stop establishment, licensed fraternal establishment, or licensed veterans establishment in accordance with an agreement or arrangement or with the intent that the offer, promise, or gift of the thing of value shall act as an incentive or inducement with respect to locating or maintaining (rather than incentive or inducement to locate) video gaming terminals in that establishment. Provides that specified items and activities are permissible and do not constitute "of value" violations under these provisions. Provides that a licensed location that violates one or more requirements of provisions concerning restrictions on the licenses of terminal operators is guilty of a Class 4 felony and is subject to termination of his or her license by the Illinois Gaming Board. Allows a licensed establishment, licensed truck stop establishment, licensed veterans establishment, or licensed fraternal establishment that operates 5 video gaming terminals on its premises and that generates at least $150,000 in net terminal income over the preceding 6 consecutive calendar months, to add and operate a sixth video gaming terminal. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2019-01-08 - Session Sine Die [HB4048 Detail]

Download: Illinois-2017-HB4048-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB4048 Introduced , by Rep. Arthur Turner SYNOPSIS AS INTRODUCED:
230 ILCS 40/20
230 ILCS 40/25
Amends the Video Gaming Act. Increases the maximum wager played per hand from $2 to $4. Increases the maximum cash award for a wager on any individual hand from $500 to $1,199. Adds a maximum cash award for the maximum wager on a jackpot, progressive or otherwise, of $10,000. Provides that no terminal operator or officer, employee, or agent of a terminal operator (currently, no terminal operator) may offer, promise, or give anything of value (currently, may give anything of value), including, but not limited to, a loan or financing arrangement, to a licensed establishment, licensed truck stop establishment, licensed fraternal establishment, or licensed veterans establishment in accordance with an agreement or arrangement or with the intent that the offer, promise, or gift of the thing of value shall act as an incentive or inducement with respect to locating or maintaining (rather than incentive or inducement to locate) video gaming terminals in that establishment. Provides that specified items and activities are permissible and do not constitute "of value" violations under these provisions. Provides that a licensed location that violates one or more requirements of provisions concerning restrictions on the licenses of terminal operators is guilty of a Class 4 felony and is subject to termination of his or her license by the Illinois Gaming Board. Allows a licensed establishment, licensed truck stop establishment, licensed veterans establishment, or licensed fraternal establishment that operates 5 video gaming terminals on its premises and that generates at least $150,000 in net terminal income over the preceding 6 consecutive calendar months, to add and operate a sixth video gaming terminal. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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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 20 and 25 as follows:
(230 ILCS 40/20)
Sec. 20. Direct dispensing of receipt tickets only. A video
gaming terminal may not directly dispense coins, cash, tokens,
or any other article of exchange or value except for receipt
tickets. Tickets shall be dispensed by pressing the ticket
dispensing button on the video gaming terminal at the end of
one's turn or play. The ticket shall indicate the total amount
of credits and the cash award, the time of day in a 24-hour
format showing hours and minutes, the date, the terminal serial
number, the sequential number of the ticket, and an encrypted
validation number from which the validity of the prize may be
determined. The player shall turn in this ticket to the
appropriate person at the licensed establishment, licensed
truck stop establishment, licensed fraternal establishment, or
licensed veterans establishment to receive the cash award. The
cost of the credit shall be one cent, 5 cents, 10 cents, or 25
cents, and the maximum wager played per hand shall not exceed
$4 $2. No cash award for the maximum wager on any individual

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hand shall exceed $1,199 $500. No cash award for the maximum
wager on a jackpot, progressive or otherwise, shall exceed
$10,000.
(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.)
(230 ILCS 40/25)
Sec. 25. Restriction of licensees.
(a) Manufacturer. A person may not be licensed as a
manufacturer of a video gaming terminal in Illinois unless the
person has a valid manufacturer's license issued under this
Act. A manufacturer may only sell video gaming terminals for
use in Illinois to persons having a valid distributor's
license.
(b) Distributor. A person may not sell, distribute, or
lease or market a video gaming terminal in Illinois unless the
person has a valid distributor's license issued under this Act.
A distributor may only sell video gaming terminals for use in
Illinois to persons having a valid distributor's or terminal
operator's license.
(c) Terminal operator. A person may not own, maintain, or
place a video gaming terminal unless he has a valid terminal
operator's license issued under this Act. A terminal operator
may only place video gaming terminals for use in Illinois in
licensed establishments, licensed truck stop establishments,
licensed fraternal establishments, and licensed veterans
establishments. No terminal operator or officer, employee, or

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agent of a terminal operator may offer, promise, or give
anything of value, including, but not limited to, a loan or
financing arrangement, to a licensed establishment, licensed
truck stop establishment, licensed fraternal establishment, or
licensed veterans establishment in accordance with an
agreement or arrangement or with the intent that the offer,
promise, or gift of the thing of value shall act as an any
incentive or inducement with respect to locating or maintaining
locate video terminals in that establishment. The following
items and activities are permissible and do not constitute "of
value" violations under this subsection:
(1) A terminal operator may reimburse a licensed
establishment, licensed truck stop establishment, licensed
fraternal establishment, or licensed veterans
establishment for the actual cost of the food or
non-alcoholic beverages given directly to video gaming
terminal players in an amount not to exceed 5% of the
terminal operator's monthly share of net terminal income if
the licensed location has, for the preceding 6 consecutive
calendar months, averaged monthly cumulative net terminal
income for the location equivalent to net terminal income
of at least $120 per day per video gaming terminal
immediately on the premises, and if the reimbursement
terms, including the requirement that the terminal
operator be provided with receipts or documentation of the
actual cost of the food or non-alcoholic beverages, are set

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forth in the written use agreement between the parties. In
the event of the authorization of a players' rewards
program, if food or non-alcoholic beverage awards are made
available through the program, then a terminal operator may
reimburse a licensed establishment, licensed truck stop
establishment, licensed fraternal establishment, or
licensed veterans establishment up to 50% of the actual
cost of the food or non-alcoholic beverages awarded, and
the reimbursement terms, including the requirement that
the terminal operator be provided with receipts or
documentation of the actual cost of the food or
non-alcoholic beverages, are set forth in the written use
agreement between the parties.
(2) A terminal operator may reimburse a licensed
establishment, licensed truck stop establishment, licensed
fraternal establishment, or licensed veterans
establishment for up to 50% of the actual cost of
promotional items, excluding food or non-alcoholic
beverages, of more than nominal value, such as vacation
trips and prizes that are given directly to video gaming
terminal players if the reimbursement terms, including the
requirement that the terminal operator be provided with
receipts or documentation of the actual cost of these
items, are set forth in the written use agreement between
the parties. The cost of promotional items of nominal value
that bear a logo or name and that are given to patrons or

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video gaming terminal players, however, may not be
reimbursed or shared and shall be paid for entirely by the
terminal operator or the licensed location whose name or
logo appears on the item. As used in this paragraph,
"promotional items of nominal value" does not include gift
cards, gift certificates, cash, and cash equivalents.
(3) A terminal operator may reimburse a licensed
establishment, licensed truck stop establishment, licensed
fraternal establishment, or licensed veterans
establishment for up to 50% of the actual cost of
advertising that promotes video gaming at that licensed
location if the reimbursement terms, including the
requirement that the terminal operator be provided with
receipts or documentation of the actual cost of the
advertising, are set forth in the written use agreement
between the parties.
The Board shall adopt rules concerning the items and
activities permissible under this subsection as well as other
activities that do not constitute "of value" violations under
this subsection.
Of the after-tax profits from a video gaming terminal, 50%
shall be paid to the terminal operator and 50% shall be paid to
the licensed establishment, licensed truck stop establishment,
licensed fraternal establishment, or licensed veterans
establishment, notwithstanding any agreement to the contrary.
A video terminal operator or licensed location that violates

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one or more requirements of this subsection is guilty of a
Class 4 felony and is subject to termination of his or her
license by the Board.
(d) Licensed technician. A person may not service,
maintain, or repair a video gaming terminal in this State
unless he or she (1) has a valid technician's license issued
under this Act, (2) is a terminal operator, or (3) is employed
by a terminal operator, distributor, or manufacturer.
(d-5) Licensed terminal handler. No person, including, but
not limited to, an employee or independent contractor working
for a manufacturer, distributor, supplier, technician, or
terminal operator licensed pursuant to this Act, shall have
possession or control of a video gaming terminal, or access to
the inner workings of a video gaming terminal, unless that
person possesses a valid terminal handler's license issued
under this Act.
(e) Licensed establishment. No video gaming terminal may be
placed in any licensed establishment, licensed veterans
establishment, licensed truck stop establishment, or licensed
fraternal establishment unless the owner or agent of the owner
of the licensed establishment, licensed veterans
establishment, licensed truck stop establishment, or licensed
fraternal establishment has entered into a written use
agreement with the terminal operator for placement of the
terminals. A copy of the use agreement shall be on file in the
terminal operator's place of business and available for

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inspection by individuals authorized by the Board.
(e-5) A licensed establishment, licensed truck stop
establishment, licensed veterans establishment, or licensed
fraternal establishment may operate up to 5 video gaming
terminals on its premises at any time. A licensed
establishment, licensed truck stop establishment, licensed
veterans establishment, or licensed fraternal establishment
that operates 5 video gaming terminals on its premises and that
generates at least $150,000 in net terminal income in the
preceding 6 consecutive calendar months may add and operate a
sixth video gaming terminal.
(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

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beneficially, of 5% or more of any class of stock of the
corporation; or
(D) When, with respect to an organization not covered
in (A), (B) or (C) above, an individual or his or her
spouse is an officer or manages the business affairs, or
the individual or his or her spouse is the owner of or
otherwise controls 10% or more of the assets of the
organization; or
(E) When an individual or his or her spouse furnishes
5% or more of the capital, whether in cash, goods, or
services, for the operation of any business, association,
or organization during any calendar year; or
(F) When, with respect to a limited liability company,
an individual or his or her spouse is a member, or the
individual or his or her spouse is a holder, directly or
beneficially, of 5% or more of the membership interest of
the limited liability company.
For purposes of this subsection (g), "individual" includes
all individuals or their spouses whose combined interest would
qualify as a substantial interest under this subsection (g) and
whose activities with respect to an organization, association,
or business are so closely aligned or coordinated as to
constitute the activities of a single entity.
(h) Location restriction. A licensed establishment,
licensed truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment that is (i)

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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
Riverboat Gambling Act or (ii) located within 100 feet of a
school or a place of worship under the Religious Corporation
Act, is ineligible to operate a video gaming terminal. The
location restrictions in this subsection (h) do not apply if
(A) a facility operated by an organization licensee, a school,
or a place of worship moves to or is established within the
restricted area after a licensed establishment, licensed truck
stop establishment, licensed fraternal establishment, or
licensed veterans establishment becomes licensed under this
Act or (B) a school or place of worship moves to or is
established within the restricted area after a licensed
establishment, licensed truck stop establishment, licensed
fraternal establishment, or licensed veterans establishment
obtains its original liquor license. For the purpose of this
subsection, "school" means an elementary or secondary public
school, or an elementary or secondary private school registered
with or recognized by the State Board of Education.
Notwithstanding the provisions of this subsection (h), the
Board may waive the requirement that a licensed establishment,
licensed truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment not be
located within 1,000 feet from a facility operated by an
organization licensee licensed under the Illinois Horse Racing

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Act of 1975 or the home dock of a riverboat licensed under the
Riverboat Gambling Act. The Board shall not grant such waiver
if there is any common ownership or control, shared business
activity, or contractual arrangement of any type between the
establishment and the organization licensee or owners licensee
of a riverboat. The Board shall adopt rules to implement the
provisions of this paragraph.
(i) Undue economic concentration. In addition to
considering all other requirements under this Act, in deciding
whether to approve the operation of video gaming terminals by a
terminal operator in a location, the Board shall consider the
impact of any economic concentration of such operation of video
gaming terminals. The Board shall not allow a terminal operator
to operate video gaming terminals if the Board determines such
operation will result in undue economic concentration. For
purposes of this Section, "undue economic concentration" means
that a terminal operator would have such actual or potential
influence over video gaming terminals in Illinois as to:
(1) substantially impede or suppress competition among
terminal operators;
(2) adversely impact the economic stability of the
video gaming industry in Illinois; or
(3) negatively impact the purposes of the Video Gaming
Act.
The Board shall adopt rules concerning undue economic
concentration with respect to the operation of video gaming

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terminals in Illinois. The rules shall include, but not be
limited to, (i) limitations on the number of video gaming
terminals operated by any terminal operator within a defined
geographic radius and (ii) guidelines on the discontinuation of
operation of any such video gaming terminals the Board
determines will cause undue economic concentration.
(j) The provisions of the Illinois Antitrust Act are fully
and equally applicable to the activities of any licensee under
this Act.
(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,
eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
Section 99. Effective date. This Act takes effect upon
becoming law.