Bill Text: IL HB5063 | 2019-2020 | 101st General Assembly | Introduced
Bill Title: Amends the Video Gaming Act. Removes references to inter-track wagering location licensees from the definition of "licensed establishment". Removes the restriction that an establishment authorized to conduct video gaming under the Act that is located within 1,000 feet of an organization licensee is ineligible to operate a video gaming terminal.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-06-23 - Rule 19(b) / Re-referred to Rules Committee [HB5063 Detail]
Download: Illinois-2019-HB5063-Introduced.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,
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| 3 | represented in the General Assembly:
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| 4 | Section 5. The Video Gaming
Act is amended by changing | ||||||||||||||||||||||||||
| 5 | Sections 5 and 25 as follows:
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| 6 | (230 ILCS 40/5)
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| 7 | Sec. 5. Definitions. As used in this Act:
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| 8 | "Board" means the Illinois Gaming Board.
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| 9 | "Credit" means one, 5, 10, or 25 cents either won or | ||||||||||||||||||||||||||
| 10 | purchased by a player.
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| 11 | "Distributor" means an individual, partnership, | ||||||||||||||||||||||||||
| 12 | corporation, or limited liability company licensed under
this | ||||||||||||||||||||||||||
| 13 | Act to buy, sell, lease, or distribute video gaming terminals | ||||||||||||||||||||||||||
| 14 | or major
components or parts of video gaming terminals to or | ||||||||||||||||||||||||||
| 15 | from terminal
operators.
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| 16 | "Electronic card" means a card purchased from a licensed | ||||||||||||||||||||||||||
| 17 | establishment, licensed fraternal establishment, licensed | ||||||||||||||||||||||||||
| 18 | veterans establishment, licensed truck stop establishment, or | ||||||||||||||||||||||||||
| 19 | licensed large truck stop establishment for use in that | ||||||||||||||||||||||||||
| 20 | establishment as a substitute for cash in the conduct of gaming | ||||||||||||||||||||||||||
| 21 | on a video gaming terminal. | ||||||||||||||||||||||||||
| 22 | "Electronic voucher" means a voucher printed by an | ||||||||||||||||||||||||||
| 23 | electronic video game machine that is redeemable in the | ||||||||||||||||||||||||||
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| 1 | licensed establishment for which it was issued. | ||||||
| 2 | "In-location bonus jackpot" means one or more video gaming | ||||||
| 3 | terminals at a single licensed establishment that allows for | ||||||
| 4 | wagers placed on such video gaming terminals to contribute to a | ||||||
| 5 | cumulative maximum jackpot of up to $10,000. | ||||||
| 6 | "Terminal operator" means an individual, partnership, | ||||||
| 7 | corporation, or limited liability company that is
licensed | ||||||
| 8 | under this Act and that owns, services, and maintains video
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| 9 | gaming terminals for placement in licensed establishments, | ||||||
| 10 | licensed truck stop establishments, licensed large truck stop | ||||||
| 11 | establishments, licensed fraternal
establishments, or licensed | ||||||
| 12 | veterans establishments.
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| 13 | "Licensed technician" means an individual
who
is licensed | ||||||
| 14 | under this Act to repair,
service, and maintain
video gaming | ||||||
| 15 | terminals.
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| 16 | "Licensed terminal handler" means a person, including but | ||||||
| 17 | not limited to an employee or independent contractor working | ||||||
| 18 | for a manufacturer, distributor, supplier, technician, or | ||||||
| 19 | terminal operator, who is licensed under this Act to possess or | ||||||
| 20 | control a video gaming terminal or to have access to the inner | ||||||
| 21 | workings of a video gaming terminal. A licensed terminal | ||||||
| 22 | handler does not include an individual, partnership, | ||||||
| 23 | corporation, or limited liability company defined as a | ||||||
| 24 | manufacturer, distributor, supplier, technician, or terminal | ||||||
| 25 | operator under this Act. | ||||||
| 26 | "Manufacturer" means an individual, partnership, | ||||||
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| 1 | corporation, or limited liability company that is
licensed | ||||||
| 2 | under this Act and that manufactures or assembles video gaming
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| 3 | terminals.
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| 4 | "Supplier" means an individual, partnership, corporation, | ||||||
| 5 | or limited liability company that is
licensed under this Act to | ||||||
| 6 | supply major components or parts to video gaming
terminals to | ||||||
| 7 | licensed
terminal operators.
| ||||||
| 8 | "Net terminal income" means money put into a video gaming | ||||||
| 9 | terminal minus
credits paid out to players.
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| 10 | "Video gaming terminal" means any electronic video game | ||||||
| 11 | machine
that, upon insertion of cash, electronic cards or | ||||||
| 12 | vouchers, or any combination thereof, is available to play or | ||||||
| 13 | simulate the play of
a video game, including but not limited to | ||||||
| 14 | video poker, line up, and blackjack, as
authorized by the Board | ||||||
| 15 | utilizing a video display and microprocessors in
which the | ||||||
| 16 | player may receive free games or credits that can be
redeemed | ||||||
| 17 | for cash. The term does not include a machine that directly
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| 18 | dispenses coins, cash, or tokens or is for amusement purposes | ||||||
| 19 | only.
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| 20 | "Licensed establishment" means any licensed retail | ||||||
| 21 | establishment where
alcoholic liquor is drawn, poured, mixed, | ||||||
| 22 | or otherwise served for consumption
on the premises, whether | ||||||
| 23 | the establishment operates on a nonprofit or for-profit basis. | ||||||
| 24 | "Licensed establishment" includes any such establishment that | ||||||
| 25 | has a contractual relationship with an inter-track wagering | ||||||
| 26 | location licensee licensed under the Illinois Horse Racing Act | ||||||
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| 1 | of 1975, provided any contractual relationship shall not | ||||||
| 2 | include any transfer or offer of revenue from the operation of | ||||||
| 3 | video gaming under this Act to any licensee licensed under the | ||||||
| 4 | Illinois Horse Racing Act of 1975. Provided, however, that the | ||||||
| 5 | licensed establishment that has such a contractual | ||||||
| 6 | relationship with an inter-track wagering location licensee | ||||||
| 7 | may not, itself, be (i) an inter-track wagering location | ||||||
| 8 | licensee, (ii) the corporate parent or subsidiary of any | ||||||
| 9 | licensee licensed under the Illinois Horse Racing Act of 1975, | ||||||
| 10 | or (iii) the corporate subsidiary of a corporation that is also | ||||||
| 11 | the corporate parent or subsidiary of any licensee licensed | ||||||
| 12 | under the Illinois Horse Racing Act of 1975. "Licensed | ||||||
| 13 | establishment" does not include a facility operated by an | ||||||
| 14 | organization licensee or , an inter-track wagering licensee, or | ||||||
| 15 | an inter-track wagering location licensee licensed under the | ||||||
| 16 | Illinois Horse Racing Act of 1975 or a riverboat licensed under | ||||||
| 17 | the Illinois Gambling Act, except as provided in this | ||||||
| 18 | paragraph. The changes made to this definition by Public Act | ||||||
| 19 | 98-587 are declarative of existing law.
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| 20 | "Licensed fraternal establishment" means the location | ||||||
| 21 | where a qualified
fraternal organization that derives its | ||||||
| 22 | charter from a national fraternal
organization regularly | ||||||
| 23 | meets.
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| 24 | "Licensed veterans establishment" means the location where | ||||||
| 25 | a qualified
veterans organization that derives its charter from | ||||||
| 26 | a national veterans
organization regularly meets.
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| 1 | "Licensed truck stop establishment" means a facility (i) | ||||||
| 2 | that is at least a
3-acre facility with a convenience store, | ||||||
| 3 | (ii) with separate diesel
islands for fueling commercial motor | ||||||
| 4 | vehicles, (iii) that sells at retail more than 10,000 gallons | ||||||
| 5 | of diesel or biodiesel fuel per month, and (iv) with parking | ||||||
| 6 | spaces for commercial
motor vehicles. "Commercial motor | ||||||
| 7 | vehicles" has the same meaning as defined in Section 18b-101 of | ||||||
| 8 | the Illinois Vehicle Code. The requirement of item (iii) of | ||||||
| 9 | this paragraph may be met by showing that estimated future | ||||||
| 10 | sales or past sales average at least 10,000 gallons per month.
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| 11 | "Licensed large truck stop establishment" means a facility | ||||||
| 12 | located within 3 road miles from a freeway interchange, as | ||||||
| 13 | measured in accordance with the Department of Transportation's | ||||||
| 14 | rules regarding the criteria for the installation of business | ||||||
| 15 | signs: (i) that is at least a
3-acre facility with a | ||||||
| 16 | convenience store, (ii) with separate diesel
islands for | ||||||
| 17 | fueling commercial motor vehicles, (iii) that sells at retail | ||||||
| 18 | more than 50,000 gallons of diesel or biodiesel fuel per month, | ||||||
| 19 | and (iv) with parking spaces for commercial
motor vehicles. | ||||||
| 20 | "Commercial motor vehicles" has the same meaning as defined in | ||||||
| 21 | Section 18b-101 of the Illinois Vehicle Code. The requirement | ||||||
| 22 | of item (iii) of this paragraph may be met by showing that | ||||||
| 23 | estimated future sales or past sales average at least 50,000 | ||||||
| 24 | gallons per month. | ||||||
| 25 | (Source: P.A. 101-31, eff. 6-28-19.)
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| 1 | (230 ILCS 40/25)
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| 2 | Sec. 25. Restriction of licensees.
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| 3 | (a) Manufacturer. A person may not be licensed as a | ||||||
| 4 | manufacturer of a
video gaming terminal in Illinois unless the | ||||||
| 5 | person has a valid
manufacturer's license issued
under this | ||||||
| 6 | Act. A manufacturer may only sell video gaming terminals for | ||||||
| 7 | use
in Illinois to
persons having a valid distributor's | ||||||
| 8 | license.
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| 9 | (b) Distributor. A person may not sell, distribute, or | ||||||
| 10 | lease
or market a video gaming terminal in Illinois unless the | ||||||
| 11 | person has a valid
distributor's
license issued under this Act. | ||||||
| 12 | A distributor may only sell video gaming
terminals for use in
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| 13 | Illinois to persons having a valid distributor's or terminal | ||||||
| 14 | operator's
license.
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| 15 | (c) Terminal operator. A person may not own, maintain, or | ||||||
| 16 | place a video gaming terminal unless he has a valid terminal | ||||||
| 17 | operator's
license issued
under this Act. A terminal operator | ||||||
| 18 | may only place video gaming terminals for
use in
Illinois in | ||||||
| 19 | licensed establishments, licensed truck stop establishments, | ||||||
| 20 | licensed large truck stop establishments, licensed fraternal | ||||||
| 21 | establishments,
and
licensed veterans establishments.
No | ||||||
| 22 | terminal operator may give anything of value, including but not | ||||||
| 23 | limited to
a loan or financing arrangement, to a licensed | ||||||
| 24 | establishment, licensed truck stop establishment, licensed | ||||||
| 25 | large truck stop establishment,
licensed fraternal | ||||||
| 26 | establishment, or licensed veterans establishment as
any | ||||||
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| 1 | incentive or inducement to locate video terminals in that | ||||||
| 2 | establishment.
Of the after-tax profits
from a video gaming | ||||||
| 3 | terminal, 50% shall be paid to the terminal
operator and 50% | ||||||
| 4 | shall be paid to the licensed establishment, licensed truck | ||||||
| 5 | stop establishment, licensed large truck stop establishment,
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| 6 | licensed fraternal establishment, or
licensed veterans | ||||||
| 7 | establishment, notwithstanding any agreement to the contrary.
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| 8 | A video terminal operator that violates one or more | ||||||
| 9 | requirements of this subsection is guilty of a Class 4 felony | ||||||
| 10 | and is subject to termination of his or her license by the | ||||||
| 11 | Board.
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| 12 | (d) Licensed technician. A person may not service, | ||||||
| 13 | maintain, or repair a
video gaming terminal
in this State | ||||||
| 14 | unless he or she (1) has a valid technician's license issued
| ||||||
| 15 | under this Act, (2) is a terminal operator, or (3) is employed | ||||||
| 16 | by a terminal
operator, distributor, or manufacturer.
| ||||||
| 17 | (d-5) Licensed terminal handler. No person, including, but | ||||||
| 18 | not limited to, an employee or independent contractor working | ||||||
| 19 | for a manufacturer, distributor, supplier, technician, or | ||||||
| 20 | terminal operator licensed pursuant to this Act, shall have | ||||||
| 21 | possession or control of a video gaming terminal, or access to | ||||||
| 22 | the inner workings of a video gaming terminal, unless that | ||||||
| 23 | person possesses a valid terminal handler's license issued | ||||||
| 24 | under this Act. | ||||||
| 25 | (e) Licensed establishment. No video gaming terminal may be | ||||||
| 26 | placed in any licensed establishment, licensed veterans | ||||||
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| 1 | establishment, licensed truck stop establishment, licensed | ||||||
| 2 | large truck stop establishment,
or licensed fraternal | ||||||
| 3 | establishment
unless the owner
or agent of the owner of the | ||||||
| 4 | licensed establishment, licensed veterans establishment, | ||||||
| 5 | licensed truck stop establishment, licensed large truck stop | ||||||
| 6 | establishment, or licensed
fraternal establishment has entered | ||||||
| 7 | into a
written use agreement with the terminal operator for | ||||||
| 8 | placement of the
terminals. A copy of the use agreement shall | ||||||
| 9 | be on file in the terminal
operator's place of business and | ||||||
| 10 | available for inspection by individuals
authorized by the | ||||||
| 11 | Board. A licensed establishment, licensed truck stop | ||||||
| 12 | establishment, licensed veterans establishment,
or
licensed
| ||||||
| 13 | fraternal
establishment may operate up to 6 video gaming | ||||||
| 14 | terminals on its premises at any
time. A licensed large truck | ||||||
| 15 | stop establishment may operate up to 10 video gaming terminals | ||||||
| 16 | on its premises at any time.
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| 17 | (f) (Blank).
| ||||||
| 18 | (g) Financial interest restrictions.
As used in this Act, | ||||||
| 19 | "substantial interest" in a partnership, a corporation, an
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| 20 | organization, an association, a business, or a limited | ||||||
| 21 | liability company means:
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| 22 | (A) When, with respect to a sole proprietorship, an | ||||||
| 23 | individual or
his or her spouse owns, operates, manages, or | ||||||
| 24 | conducts, directly
or indirectly, the organization, | ||||||
| 25 | association, or business, or any part thereof;
or
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| 26 | (B) When, with respect to a partnership, the individual | ||||||
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| 1 | or his or
her spouse shares in any of the profits, or | ||||||
| 2 | potential profits,
of the partnership activities; or
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| 3 | (C) When, with respect to a corporation, an individual | ||||||
| 4 | or his or her
spouse is an officer or director, or the | ||||||
| 5 | individual or his or her spouse is a holder, directly or | ||||||
| 6 | beneficially, of 5% or more of any class
of stock of the | ||||||
| 7 | corporation; or
| ||||||
| 8 | (D) When, with respect to an organization not covered | ||||||
| 9 | in (A), (B) or
(C) above, an individual or his or her | ||||||
| 10 | spouse is an officer or manages the
business affairs, or | ||||||
| 11 | the individual or his or her spouse is the
owner of or | ||||||
| 12 | otherwise controls 10% or more of the assets of the | ||||||
| 13 | organization;
or
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| 14 | (E) When an individual or his or her spouse furnishes
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| 15 | 5% or more of the capital, whether in cash, goods, or | ||||||
| 16 | services, for the
operation of any business, association, | ||||||
| 17 | or organization during any calendar
year; or | ||||||
| 18 | (F) When, with respect to a limited liability company, | ||||||
| 19 | an individual or his or her
spouse is a member, or the | ||||||
| 20 | individual or his or her spouse is a holder, directly or | ||||||
| 21 | beneficially, of 5% or more of the membership interest of | ||||||
| 22 | the limited liability company.
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| 23 | For purposes of this subsection (g), "individual" includes | ||||||
| 24 | all individuals or their spouses whose combined interest would | ||||||
| 25 | qualify as a substantial interest under this subsection (g) and | ||||||
| 26 | whose activities with respect to an organization, association, | ||||||
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| 1 | or business are so closely aligned or coordinated as to | ||||||
| 2 | constitute the activities of a single entity. | ||||||
| 3 | (h) Location restriction. A licensed establishment, | ||||||
| 4 | licensed truck stop establishment, licensed large truck stop | ||||||
| 5 | establishment, licensed
fraternal
establishment, or licensed | ||||||
| 6 | veterans establishment that is (i) located within 1,000
feet of | ||||||
| 7 | a facility operated by an organization licensee licensed under | ||||||
| 8 | the Illinois Horse Racing Act of 1975 or the home dock of a | ||||||
| 9 | riverboat licensed under the Illinois
Gambling Act or (ii) | ||||||
| 10 | located within 100 feet of a school or a place of worship under | ||||||
| 11 | the Religious Corporation Act, is ineligible to operate a video | ||||||
| 12 | gaming terminal. The location restrictions in this subsection | ||||||
| 13 | (h) do not apply if (A) a facility operated by an organization | ||||||
| 14 | licensee, a school, or a place of worship moves to or is | ||||||
| 15 | established within the restricted area after a licensed | ||||||
| 16 | establishment, licensed truck stop establishment, licensed | ||||||
| 17 | large truck stop establishment, licensed fraternal | ||||||
| 18 | establishment, or licensed veterans establishment becomes | ||||||
| 19 | licensed under this Act or (B) a school or place of worship | ||||||
| 20 | moves to or is established within the restricted area after a | ||||||
| 21 | licensed establishment, licensed truck stop establishment, | ||||||
| 22 | licensed large truck stop establishment, licensed fraternal | ||||||
| 23 | establishment, or licensed veterans establishment obtains its | ||||||
| 24 | original liquor license. For the purpose of this subsection, | ||||||
| 25 | "school" means an elementary or secondary public school, or an | ||||||
| 26 | elementary or secondary private school registered with or | ||||||
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| 1 | recognized by the State Board of Education. | ||||||
| 2 | Notwithstanding the provisions of this subsection (h), the | ||||||
| 3 | Board may waive the requirement that a licensed establishment, | ||||||
| 4 | licensed truck stop establishment, licensed large truck stop | ||||||
| 5 | establishment, licensed fraternal establishment, or licensed | ||||||
| 6 | veterans establishment not be located within 1,000 feet from a | ||||||
| 7 | facility operated by an organization licensee licensed under | ||||||
| 8 | the Illinois Horse Racing Act of 1975 or the home dock of a | ||||||
| 9 | riverboat licensed under the Illinois Gambling Act. The Board | ||||||
| 10 | shall not grant such waiver if there is any common ownership or | ||||||
| 11 | control, shared business activity, or contractual arrangement | ||||||
| 12 | of any type between the establishment and the organization | ||||||
| 13 | licensee or owners licensee of a riverboat. The Board shall | ||||||
| 14 | adopt rules to implement the provisions of this paragraph. | ||||||
| 15 | (h-5) Restrictions on licenses in malls. The Board shall | ||||||
| 16 | not grant an application to become a licensed video gaming | ||||||
| 17 | location if the Board determines that granting the application | ||||||
| 18 | would more likely than not cause a terminal operator, | ||||||
| 19 | individually or in combination with other terminal operators, | ||||||
| 20 | licensed video gaming location, or other person or entity, to | ||||||
| 21 | operate the video gaming terminals in 2 or more licensed video | ||||||
| 22 | gaming locations as a single video gaming operation. | ||||||
| 23 | (1) In making determinations under this subsection | ||||||
| 24 | (h-5), factors to be considered by the Board shall include, | ||||||
| 25 | but not be limited to, the following: | ||||||
| 26 | (A) the physical aspects of the location; | ||||||
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| 1 | (B) the ownership, control, or management of the | ||||||
| 2 | location; | ||||||
| 3 | (C) any arrangements, understandings, or | ||||||
| 4 | agreements, written or otherwise, among or involving | ||||||
| 5 | any persons or entities that involve the conducting of | ||||||
| 6 | any video gaming business or the sharing of costs or | ||||||
| 7 | revenues; and | ||||||
| 8 | (D) the manner in which any terminal operator or | ||||||
| 9 | other related entity markets, advertises, or otherwise | ||||||
| 10 | describes any location or locations to any other person | ||||||
| 11 | or entity or to the public. | ||||||
| 12 | (2) The Board shall presume, subject to rebuttal, that | ||||||
| 13 | the granting of an application to become a licensed video | ||||||
| 14 | gaming location within a mall will cause a terminal | ||||||
| 15 | operator, individually or in combination with other | ||||||
| 16 | persons or entities, to operate the video gaming terminals | ||||||
| 17 | in 2 or more licensed video gaming locations as a single | ||||||
| 18 | video gaming operation if the Board determines that | ||||||
| 19 | granting the license would create a local concentration of | ||||||
| 20 | licensed video gaming locations. | ||||||
| 21 | For the purposes of this subsection (h-5): | ||||||
| 22 | "Mall" means a building, or adjoining or connected | ||||||
| 23 | buildings, containing 4 or more separate locations. | ||||||
| 24 | "Video gaming operation" means the conducting of video | ||||||
| 25 | gaming and all related activities. | ||||||
| 26 | "Location" means a space within a mall containing a | ||||||
| |||||||
| |||||||
| 1 | separate business, a place for a separate business, or a place | ||||||
| 2 | subject to a separate leasing arrangement by the mall owner. | ||||||
| 3 | "Licensed video gaming location" means a licensed | ||||||
| 4 | establishment, licensed fraternal establishment, licensed | ||||||
| 5 | veterans establishment, licensed truck stop establishment, or | ||||||
| 6 | licensed large truck stop. | ||||||
| 7 | "Local concentration of licensed video gaming locations" | ||||||
| 8 | means that the combined number of licensed video gaming | ||||||
| 9 | locations within a mall exceed half of the separate locations | ||||||
| 10 | within the mall. | ||||||
| 11 | (i) Undue economic concentration. In addition to | ||||||
| 12 | considering all other requirements under this Act, in deciding | ||||||
| 13 | whether to approve the operation of video gaming terminals by a | ||||||
| 14 | terminal operator in a location, the Board shall consider the | ||||||
| 15 | impact of any economic concentration of such operation of video | ||||||
| 16 | gaming terminals. The Board shall not allow a terminal operator | ||||||
| 17 | to operate video gaming terminals if the Board determines such | ||||||
| 18 | operation will result in undue economic concentration. For | ||||||
| 19 | purposes of this Section, "undue economic concentration" means | ||||||
| 20 | that a terminal operator would have such actual or potential | ||||||
| 21 | influence over video gaming terminals in Illinois as to: | ||||||
| 22 | (1) substantially impede or suppress competition among | ||||||
| 23 | terminal operators; | ||||||
| 24 | (2) adversely impact the economic stability of the | ||||||
| 25 | video gaming industry in Illinois; or | ||||||
| 26 | (3) negatively impact the purposes of the Video Gaming | ||||||
| |||||||
| |||||||
| 1 | Act. | ||||||
| 2 | The Board shall adopt rules concerning undue economic | ||||||
| 3 | concentration with respect to the operation of video gaming | ||||||
| 4 | terminals in Illinois. The rules shall include, but not be | ||||||
| 5 | limited to, (i) limitations on the number of video gaming | ||||||
| 6 | terminals operated by any terminal operator within a defined | ||||||
| 7 | geographic radius and (ii) guidelines on the discontinuation of | ||||||
| 8 | operation of any such video gaming terminals the Board | ||||||
| 9 | determines will cause undue economic concentration.
| ||||||
| 10 | (j) The provisions of the Illinois Antitrust Act are fully | ||||||
| 11 | and equally applicable to the activities of any licensee under | ||||||
| 12 | this Act.
| ||||||
| 13 | (Source: P.A. 101-31, eff. 6-28-19.)
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