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Home My WebLink About4.1 Video Gaming BoardDocs® ProPage 1 of 3 Agenda Item Details MeetingMar 13, 2018 - COMMITTEE OF THE WHOLE AGENDA ~ Prior the the meeting, members of the Village Board and Finance Commission will tour the Palatine Police Headquarters, 595 N. Hicks Road, Palatine, Illinois at 4:00p.m. Category4. DISCUSSION ITEMS Subject4.1 Video Gaming AccessPublic TypeDiscussion Public Content Information Purpose: The purpose of this discussion is to offer local establishments an opportunity to discuss video gaming in Mount Prospect. Village ordinance currently prohibits placement of video gaming terminals within the community. The following information and attached materials are provided as a framework for discussion. Background: A Video Gaming Terminal (VGT) is an electronic machine that plays video games authorized by the State Gaming Board (SGB) that includes, but are not limited to, video poker, line up and blackjack. The Illinois Video Gaming Act (the ‘Act’) provides the opportunity for licensed liquor establishments, truck stops, and veterans or fraternal establishments to apply to be a licensed VGT establishment. Liquor licenses classifications eligible for VGTs are limited to retail establishments where alcoholic liquor is drawn, poured, or otherwise served for consumption on premise. If the business meets the necessary requirements, then the Act allows the placement of up to five (5) VGTs within a licensed establishment. The attached Video Gaming Map 2018 shows which neighboring communities permit or prohibit VGTs. Notable changes from the Village Board’s previous review in June 2015 are Buffalo Grove and Niles; these communities adopted ordinances to permit video gaming in 2016. For additional background information please review the attached Video Gaming Terminal Discussion Memo with Attachments. This memo originally created for the June 2015 Committee of the Whole discussion was updated to include the SGB 2017 annual report, 2017 VGT revenue data and share new information since 2015. Revenues: The Act outlines revenue distribution of VGT income. Gamblers losses are taxed by the state at a rate of 30% and the remaining 70% is divided equally between the VGT operator and licensed establishment. The 30% state tax is then subdivided so that 25% is allocated to the State’s Capital Improvement Fund and 5% is placed into the Local Government Video Gaming Distributive Fund. Municipalities shall receive revenues in proportion to the tax revenue generated from video gaming within the eligible municipality and these revenues may be used for any general corporate purpose. The below table is an overview of 2017 VGT revenue totals for surrounding communities. The attached Video Gaming Terminal Discussion memo provides a more detailed analysis of revenue generated per licensed establishments and VGTs per community (Reference Attachment D: VGT Revenue by Establishment per Municipality). Table 1: 2017 Total Video Gaming Terminal Revenue for Surrounding Communities. Licensed Average Establishment/VGT Net Terminal Municipal Licensed MunicipalityOperator Share State Tax IncomeTaxEstablishment (70% of total split Revenue 50/50) https://www.boarddocs.com/il/vomp/Board.nsf/Private?open&login6/22/2018 BoardDocs® ProPage 2 of 3 Buffalo $884,478.33$619,132.43$221,121.66$44,224.24$38,695.78 Grove Elk Grove$7,131,225.98$4,991,849.60$1,782,913.92$356,562.46$118,853.56 Hoffman $7,371,420.45$5,159,983.10$1,842,864.82$368,572.53$122,856.74 Estates Prospect $4,728,194.39$3,309,729.64$1,182,054.21$236,410.54$118,204.63 Heights Wheeling$4,681,189.07$3,276,825.06$1,170,303.60$234,060.41$109,227.50 For every one VGT placed in municipalities included in the above table, the annual average license establishment revenue is $21,960.81 and the annual average municipal revenue is $3,137.28. Local Regulations: The attached Video Gaming – Municipal Code Comparison Memo reviews how municipalities permitted and have placed further restrictions on Video Gaming. Overall some municipalities have chosen to: ?Add a supplemental video gaming license in addition to an existing liquor license classification, ?Modify existing liquor license code, ?Implement limits on the number of video gaming liquor licenses issued, ?Incorporate the Act or rules promulgated by the SGB into their codes, ?Create VGT licenses fees to recover administrative and enforcement costs, and ?Include language that restricts video gaming cafes. Local Enforcement: Police Chief Koziol contacted surrounding communities that permit video gaming to find out their service call experience related to video gaming. None have experienced any law enforcement issues nor has there been any increase in calls for service. Wheeling recently completed an extensive analysis which also showed no increase and they have some licensed establishments up and running since 2013. Village of Mount Prospect Community Survey 2016: In 2016 ETC Institute administered a community survey for the Village of Mount Prospect. The seven page survey included a question regarding community priorities asking respondents to rank 18 issues based on priority level. This was followed by a question asking to rank the top five priorities that should receive the most emphasis over the next two years. Allowing video gaming was one of the issues to rank and it scored the lowest priority ranking for both questions out of the other 17 choices. Alternatives 1. Staff offers no specific policy recommendation. 2. Action at discretion of Village Board. Staff Recommendation At this time, staff offers no specific policy recommendation, but does request the board consider various options and provide feedback. If there is a change to the Village's current policy, staff would recommend incorporating a local licensing fee per establishment and/or per video gaming terminal (VGT) in order to recapture costs associated with monitoring and local code compliance. Video_Gaming_Map_2018.pdf (643 KB) Video_Gaming_Municipal_Code_Comparison_03-08-2018_final.pdf (33 KB) Video_Gaming_Memo_03_08_18_final_w_Attachments.pdf (486 KB) Administrative Content https://www.boarddocs.com/il/vomp/Board.nsf/Private?open&login6/22/2018 BoardDocs® ProPage 3 of 3 NB: For Attachment C: It notes "possibilities" but that's based upon state regulations. Should we identify which establishments would be on this list if we do full service bars only? I'm not sure what license type this is, confirm with Doreen. I tweaked the recommendation so the board knows we are looking for feedback (direction for next steps) Executive Content https://www.boarddocs.com/il/vomp/Board.nsf/Private?open&login6/22/2018 Y z° O N 0 m 0 c N O Ol L � c a`= v a v c o O L v ; w c O O U A N J U O N 0 m 0 c N O Ol L � c a`= v a N s ; O A U! O o 0 c� c C O N O Z g v _ = O Y A �a _ rn w v `o ° Z C7 w � w v > K K a c A O a a E c N N y O � U � N LL F— YZ O O N U! 00 U C I t U U v C N 0 N — 0 N 1� c r,sLn °° ° a (L �0 Y> W °FA , rp O 0 U N A J Z Z 3: Z a = O roo v � cn F- m L H u _ U) i o W U! N J Z N z lL Q is Z \ 0 w aZ J F- y� W O vi0¢ A v O A a r Q Z Z a ONZ CL o J J X W Z O I C3' N ISI— I J 0 v 0 w r v H c o L O.c 0m c O C N m r7 N s ; O A U! O o 0 c� c C O N O Z g v _ = O Y A �a _ rn w v `o ° Z C7 w � w v > K K a c A O a a E c N N y O � U � N LL F— YZ O O N U! 00 U C I t U U v C N 0 N — 0 N 1� c r,sLn °° ° a (L �0 Y> W °FA , rp O 0 U N A J Z Z 3: Z a = O roo v � cn F- m L H u _ U) i o W U! N J Z N z lL Q is Z \ 0 w aZ J F- y� W O vi0¢ A v O A a r Q Z Z a ONZ CL o J J X W Z O I C3' N ISI— I J 0 v 0 w r v H Village of Mount Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO: MICHAEL CASSADY, VILLAGE MANAGER FROM: ALEXANDER BERTOLUCCI, ADMINISTRATIVE ANALYST DATE: MARCH 06, 2018 (UPDATE TO NOVEMBER 20, 2015 MEMO) SUBJECT: VIDEO GAMING – MUNICIPAL CODE COMPARISON DISCUSSION The below information provides an overview of municipal video gaming codes and associated alcoholic liquor codes from communities that allow video gaming. The information is presented as excerpts of regulations outlined in municipal codes. The communities included are surrounding municipalities or were identified by attorney James Ferolo from Klein, Thorpe & Jenkins during the preceding video gaming analysis. Special Liquor License Issuance A supplemental video gaming license in addition to an existing liquor license classification is one method of regulating local video gaming. Hanover Park established a supplemental Class X liquor license for video gaming terminals (VGTs). The Class X license can only be attached to their Class A (Sale for consumption on premise only), Class C (Clubs), and Class E (Beer & Wine, only in conjunction with a meal) liquor license. Wheeling created separate video gaming licenses to supplement their existing classifications. For example, the Class N liquor license authorizes the retail sale of alcoholic beverages in cafés for consumption on premise. Wheeling has created a Class N-V license for Class N establishments that operate VGTs. Another method is to modify existing liquor license classifications to allow video gaming. This includes local video gaming regulations that specifically list which liquor licenses could apply for VGTs. Bartlett has provisions in their liquor license code regarding application for initial or renewal of existing liquor license. This section contains requirements for a licensee applying for a video gaming license and states that the video gaming license requirements shall not apply to any applicant seeking a C, C extended, G, H, J, K, L, or M liquor license. Video Gaming – Municipal Code Comparison March 08, 2018 Page 2 Sycamore restricted video gaming to establishments that hold a Class B (Bar), Class C (Club), Class E (Bowling Alley, Golf Course, Theater) or Class VG (Video Gaming Café) liquor licenses. Schiller Park has a prerequisite that any VGT License issued by the Village is an establishment that has the following licenses: a valid Class A, AC, L or R liquor license for service of alcoholic liquor on the premises. In addition to a community creating or modifying alcoholic liquor codes they may implement limits on the number of liquor licenses issued. The practice of limiting the number of liquor license in a community predates Illinois allowing local video gaming; however, restricting the number of liquor licenses can also assist to regulate the number of VGTs permitted in a community. Elmwood Park has limited the total number of locations for VGTs issued to not exceed 20 licenses. Elmwood Park has also placed a limit on the total number of VGTs licensed to not exceed 94. Bensenville has a supplementary liquor license (Class VG) authorizing the installation and operation of VGTs. There is no limit on the number of Class VG issued; however, the licenses required in conjunction with Class VG have limits on the number of locations. For example, Bensenville’s Class A liquor license is limited to no more than six licenses. Carol Stream has a Class V license that authorizes holders of a Class A, Class B, Class F, Class I or Class N license to operate video gaming; however, not more than 11 Class V licenses shall be issued. Niles restricts the number of video gaming licensed establishments, for example: o Not more than 25 existing liquor license establishments may obtain video gaming licenses only if named licenses holder was in existence for a minimum of 18 months and in good stead with the Local Liquor Commissioner. o Not more than four new video gaming café business owners may obtain video gaming licenses. Video Gaming Municipal Codes: The Illinois Gaming Act (Act) limits the VGTs hours of operation, restricts access to person over 21 and limits the number of video gaming terminals per establishment to five. Communities may incorporate portions of the Act into their municipal codes. Some communities choose to incorporate additional language from the rules promulgated by the Illinois Gaming Board. Itasca video gaming code includes general provisions that restate the Act provisions such as, VGT shall not be operated on any premise that is either located within 100 feet of a school or place of worship; not more than five VGTs on any premises licensed to sell liquor; VGTs shall be located in an area that is restricted to persons Video Gaming – Municipal Code Comparison March 08, 2018 Page 3 over the age of 21; and VGTs shall only be operate during the legal hours of operation provided for alcoholic liquor sales. Wood Dale provides additional detail from the Illinois Gaming Board Rules in their municipal Code since they include language regarding that VGTs must be immediately removed, upon order of the Illinois Gaming Board or its agent, or if the VGT has been out of service or otherwise inoperable for more than 72 hours. Additional Oversight on Local Level Beyond State Regulations: A few communities implemented additional regulations beyond the Act and Administrative Rules. Elk Grove, Morton Grove and Niles require VGT establishments to install and maintain a video recording and monitoring system. Elk Grove also requires the establishment operating VGTs to have their burglar alarm system directly connected to Northwest Central Dispatch. Additional Examples of Video Gaming Regulations: Local video gaming may also be regulated through liquor license criteria such as how a community defines a type of establishment, setting requirements that X amount of sales must be from alcoholic beverages or specifically prohibiting video gaming cafés. Sycamore’s Class B; Bar: license includes the following language, “Bars with State video gaming licenses must generate at least fifty one percent (51%) of gross annual receipts from beverage and food sales and dedicate no more than twenty five percent (25%) of floor space to video gaming in order to maintain eligibility for a Class B license. Buffalo Grove specifically prohibits Video Gaming Cafés. o 5.20.155.B - Video Gaming Cafés prohibited. A Video Gaming Café shall not be qualified to obtain any existing classification of Buffalo Grove Liquor Licenses and is prohibited from becoming a Licensed Video Gaming Location within the Village. Further, no such license allowing Video Gaming Cafés shall be created, maintained or authorized by this chapter. Hanover Park allows video gaming through a supplemental liquor license (Class X) and the license has criteria regarding seating capacity. -Chapter 10 – Alcoholic Beverages; Sec. 10-42.5 Gambling and video gaming; -(b)(3) The licensed premises shall have a minimum square footage of 2,000 square feet and the establishment shall have a minimum seating capacity in the main dining room or dining rooms of 50 person and a seat shall be provided for each person” -(b)(4) The area of the main dining room or dining rooms shall provide a minimum of ten square feet per customer. Video Gaming – Municipal Code Comparison March 08, 2018 Page 4 Fee Amounts: Table 1 provides the annual VGT licensing fees. Municipalities may also charge a one-time application fee. Table 1: Municipal Video Gaming Licensing Fees Municipality Annual License Fee Bartlett $250 per terminal (5-2018: $500 per terminal) Bensenville $25 per terminal Buffalo Grove $1,000 per terminal Carol Stream $650 per terminal Elk Grove $1,000 per establishment, Elmwood Park $1,000 per establishment, $1,000 per terminal Hanover Park $1,000 per terminal, $500 license fee Hoffman Estates $400 per terminal Itasca $25 per terminal Morton Grove $250 per terminal Niles $1,000 per terminal, $250 application fee Prospect Heights $25 per terminal Schiller Park $1,000 per terminal, $500 application fee Sycamore $100 per terminal Streamwood $150 per terminal Wheeling $500 per terminal & license fee depends on liquor license class. Wood Dale $25 per terminal CONCLUSION Staff offers no specific recommendation at this time. Alexander Bertolucci Administrative Analyst H:\\VILM\\VIDEO GAMING\\March 2018\\Video_Gaming_Municipal_Code_Comparison_03-08-2018_final.doc Village of Mount Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO: MICHAEL CASSADY, VILLAGE MANAGER FROM: ALEXANDER BERTOLUCCI, ADMINISTRATIVE ANALYST DATE: MARCH 8, 2018 (UPDATE TO DECEMBER 7, 2017 AND JUNE 5, 2015 VERSIONS) SUBJECT: VIDEO GAMING TERMINAL DISCUSSION PURPOSE: To offer information to the Village Board regarding local video gaming terminals. Village ordinance currently prohibits placement of video gaming terminals within the community. BACKGROUND: The Illinois Video Gaming Act (the ‘Act’) was signed into law in 2009. At the September 8, 2009 Committee of the Whole meeting the Village Board (the ‘Board’) discussed the Act and subsequently adopted Ordinance 5761 that established a moratorium on the use of Video Gaming Terminals (VGTs) within Mount Prospect until the State Gaming Board (SGB) issued final rules pursuant to the Act. In 2012, the SGB published the administrative rules and after further review the Board adopted Ordinance 6018 to prohibit video gaming within the Village on July 17, 2012. DISCUSSION: A Video Gaming Terminal (VGT) is an electronic machine that plays video games authorized by the SGB that include, but are not limited to, video poker, line up and blackjack. The Act provides the opportunity for licensed liquor establishments, truck stops, and veterans or fraternal establishments to apply to be a licensed VGT establishment. Liquor licenses classifications eligible for VGTs are limited to retail establishments where alcoholic liquor is drawn, poured, or otherwise served for consumption on premise. Also the licensed establishment cannot be located within 100 feet of a school or place of worship under the Religious Corporation Act and 1,000 feet of a facility operated by an organization licensed under the Illinois Horse Race Act of 1975 or Riverboat Gambling Act. If the business meets the necessary requirements, then the Act allows the placement of up to five VGTs within a licensed establishment. The Act and SGB requires the owner of the licensed VGT establishment, or his agent, to enter into a written use agreement with the Terminal Operator (owner of the VGTs) regarding the placement and maintenance of the terminals. Also, the VGTs must be tested, approved and conform to a standard model. The maximum wager per hand is capped at Video Gaming Terminal Discussion March 8, 2018 Page 2 $2.00 and the maximum cash award for a single hand is $500. Additionally, the value of each credit is limited to 5 cents, 10 cents or 25 cents.VGTs may only be played during the hours allowed for the consumption of alcoholic beverages and dispense “receipt tickets” that can be later redeemed for cash payable by the establishment. The Act and SGB prohibits VGT use by minors and set requirements of VGT placement within a licensed establishment. The Act requires VGTs be located in an area restricted to persons 21 years of age and over. However, if the licensed establishment restricts admittance to patrons 21 years or older, a separate restricted area is not required. When a restricted area is necessary, a physical barrier to the gaming area is required which may consist of a short partition, gate, rope, or other means of separation. The barrier must not visually obscure the entrance to the gaming area, because the VGTs or the entrance to the VGT area must be within view of at least one employee who is over 21 during VGT operation. The Act provides that the SGB has jurisdiction over and shall supervise all gaming operations. If any gambling device is in violation of the Act, then it will be seized, confiscated and destroyed. In addition, the establishment’s state liquor license shall be immediately revoked and the owner of the establishment is subject to a Class 4 Felony, meaning the owner could receive up to a $25,000 fine and up to 3 years in jail. For additional information regarding the Act, VGTs and municipal licensing authority please review Attachment A - Video Gaming FAQ. The SGB 2017 annual report states that there were 226 disciplinary complaints against video gaming licenses in 2017. While the report does not list all the disciplinary complaint reasons or complaints, it does include 43 complaints for failure to prevent underage access to VGTs. The SGB completed about 5,000 investigations of persons and entities and about 9,000 follow-up compliance inspections and complaints from the public. The SGB 2016 annual report states that there were 139 disciplinary complaints against video gaming licenses in 2016. The two most frequent categories for disciplinary complaints listed were: operating VGTs without valid liquor license (33 complaints) and outstanding tax liabilities (26 complaints). Complaints drop to 13 -12 for the two more categories followed by 5 complaints or less for the remaining 20 complaint categories listed. It also states that during calendar year 2016, the SGB completed 4,990 investigations of persons and entities and 7,618 follow-up compliance inspections and complaints from the public. Video gaming expanded to 6,359 locations throughout Illinois with a total of 28,271 active VGTs by the close of 2017. According to the Committee on Governmental Forecasting and Accountability (COGFA) 62.6.2% of the State’s population now lives within communities that allow video gaming, up from 55.2% in 2016 and 26.7% in 2013. The report notes that Chicago still prohibits video gaming which contains 21% of the State’s population. Video Gaming Terminal Discussion March 8, 2018 Page 3 As of January 2018, there are 6,379 licensed establishments and 28,403 VGT in the state. Municipalities and Video Gaming The Village’s neighboring communities that prohibit video gaming are shown in Table 1. Municipalities have the option to either avail themselves to the opt-out provision of the Act or approve an ordinance prohibiting gambling in the municipality. Table1:SurroundingCommunitiesthatProhibitVideoGaming (UpdatedMarch6,2018) ArlingtonHeights(Ord.)Northbrook(OptOut/Ord.)RollingMeadows(Ord.) StatusQuoStatusQuoStatusQuo DesPlaines(Ord.)PalatineΑ(Ord.)Schaumburg(Ord.) StatusQuoStatusQuoStatusQuo Glenview(OptOut/Ord.)ParkRidge(OptOut)Skokie(Ord.) StatusQuoStatusQuoStatusQuo Note:ListedmunicipalitiesareVillagecomparablecommunitiesfromApril2015. Buffalo Grove permitted video gaming in April 2016. Their change to permit was prompted by inquiries from establishments stating that video gaming revenue would help them reinvest and stay in business, to remain competitive with restaurants in nearby Long Grove that recently completed a test pilot program and certain restaurant groups not opening new restaurants in communities that do not have video gaming for the reasons stated above. There have been four elections since April 2015 and four communities have had video gaming related referendums. March 15, 2016 Presidential Primary Election - “Shall video gaming be authorized in Village of Willow Springs?” 61.67% voted Yes (1,226 votes of 2,094 Ballots Cast). November 08, 2016 Presidential General Election – “Shall the Village of Maywood adopt an ordinance prohibiting the issuance of any new Class M (video gaming café/bistro) liquor licenses in the Village of Maywood?” 55.63% voted Yes (4,850 votes of 9,553 Ballots Cast). April 04, 2017 Consolidated General Election – “Shall the Village of Franklin Park allocate video gaming taxes received from the state of Illinois to the police and fire pensions.” 69.07% voted Yes (1,474 votes of 11,034 Ballots Cast). April 04, 2017 Consolidated General Election – “Should the Village of Forest Park use the estimated $200,000 in future annual video gaming license revenue to lower property taxes on residents?” 65.06% voted Yes (1,002 votes of 1,730 Ballots Cast). Video Gaming Terminal Discussion March 8, 2018 Page 4 In the April 2015 Consolidated Election, Palatine placed an advisory referendum question on the ballot that asked, “Should the Village of Palatine consider video gaming at restaurants and bars that hold a liquor license?” The election results reported that 60% or 2,660 voted “No”. On the other hand, Schiller Park had a referendum in March 2014 which 66% or 401 voted “Yes” and ultimately resulted in the approval video gaming within the community. Table 2 lists the surrounding communities that permit video gaming. It also references the number of licensed establishments and VGTs in each municipality. Table2:SurroundingCommunitiesthatPermitVideoGaming* (UpdatedMarch6,2018,January2018SGBData) Bartlett(1253)HoffmanEstates*(22105)SchillerPark(939) BuffaloGrove*(836)MortonGrove(840)Streamwood(1151) ElkGrove*(22101)ProspectHeights(1364)Wheeling*(1564) HanoverPark(735) *(#Est.#VGTs)=TotalnumberoflicensedestablishmentsTotalnumberofVGTsin municipality Note:ListedmunicipalitiesareVillagecomparablecommunitiesfromApril2015. Note:Thesetencommunitieswereusedtocomputerevenueaverages. One concern with allowing video gaming is the potential of new issues that Police Departments would be called on to address. The Police Department surveyed surrounding communities regarding their experiences with video gaming. The communities that responded reported they have experienced absolutely no increase in criminal activity of licensed VGT establishments. In addition, it was noted by one respondent that the presence of the video poker machines had a positive effect on identification checks and enforcement of the minimum liquor consumption age in establishments serving alcoholic beverages. Revenues: The Act outlines revenue distribution of VGT income. Gamblers losses are taxed by the state at a rate of 30% and the remaining 70% is divided equally between the VGT operator and licensed establishment. The 30% state tax is then subdivided so that 25% is allocated to the State’s Capital Improvement Fund and 5% is placed into the Local Government Video Gaming Distributive Fund. Municipalities shall receive revenues in proportion to the tax revenue generated from video gaming within the eligible municipality and these revenues may be used for any general corporate purpose. Figure 1 provides a visual representation of the revenue breakdown. Video Gaming Terminal Discussion March 8, 2018 Page 5 Today, the SGB has VGT wagering and income data available from September 2012 to January 2018. A revenue tabulation from the ten communities in Table 2 is provided as Attachment B. Several highlights from the revenue tabulation are: Estimates for annual municipal revenue range from around $100,000 to $400,000 annually. Buffalo Grove received $44,000 in 2017; however, it was the first full year after permitting VGTs and revenue totals are similar to other communities’ first year revenues. Since 2012, Elk Grove collected a total of $998,086, Hoffman Estates collected a total of $1,186,470, Prospect Heights collected a total of $599,408 and Wheeling has collected a total of $775,157. In 2017, the total average municipal revenue was $216,252, state revenue was $1,081,261 and total average revenue received by VGT operators and licensed establishments was $3,027,510 or about $1.5 million for VGT operators and for licensed establishments. These revenues were collected by an average of 13 licensed establishments or 60 VGTs per community. For every one VGT placed in a municipality, the annual average municipal revenue received is $3,641, the state revenue is $18,203.07, and $50,968 would be split between a VGT operator and a licensed establishment A more detailed review on how VGT revenue may affect local businesses is provided as Attachment D: VGT Revenue by Establishment per Municipality. It shows combined licensed establishment and VGT operator revenues for establishments in Buffalo Grove, Elk Grove, Hoffman Estates, Prospect Heights and Wheeling between January 2017 and December 2017. Video Gaming Terminal Discussion March 8, 2018 Page 6 Local Licensing Fees: Municipalities are allowed to implement a license fee per VGT, since the Act lacks an express preemption of local government video gaming regulation. Also, Section 6(a) of Article VII of the Illinois Constitution provides municipalities the authority to, “perform any function pertaining to its government and affairs including, but not limited to, the power to regulate for the protection of the public health, safety, morals and welfare; to license; to tax; and to incur debt.” Table 3 presents municipal license fees from local communities that permit video gaming. Home rule municipalities license fees are unrestricted per the Act, but amounts must bear some relationship to the costs incurred related to local regulation. On the other hand, the Act does set non-home rule municipalities VGT license fees at $25. Table3MunicipalVideoGamingLicensingFees #of2017Fee VGT EstablishTotals MunicipalityAnnualLicenseFeeCountNotes: ments(minus (2017#) (2017#)InitialFee) $500effective Bartlett$250perterminal1354$13,5005/1/2018 BuffaloGrove*$1,000/terminalfee836$36,000$250InitialFee $1,000per ElkGrove*establishment21100$21,000$500InitialFee $500Annual HanoverPark$1,000perterminal735$35,000LicenseFee HoffmanEstates*$400perterminal21100$40,000 VideoGamingCafé MortonGrove$250perterminal840$10,000separatefees. NonHomeRule ProspectHeights$25perterminal1468$1,700Feelimitedto$25 $500application SchillerPark$1,000perterminal1043$43,000fee Streamwood$150perterminal1256$8,400 Variesbasedon LicenseClassInitialFeeAnnual ($2,500,$1,750or$15,000LicenseFeeplus Wheeling* $1,000)1564minimum$500perterminal *=ListedmunicipalityisVillageComparable Eligible Establishments in Mount Prospect The Village’s Geographic Information System (GIS) Analyst and staff utilized GIS software to determine if current liquor license holder’s establishments are within 100 feet of a school Video Gaming Terminal Discussion March 8, 2018 Page 7 or place of worship. Mount Prospect has a combined total of 54 F-Class and S-Class liquor license holders eligible to be a VGT licensed establishment and the complete list is provide as Attachment C. Package Liquor stores are not eligible for a video gaming license. Village of Mount Prospect Community Survey 2016 ETC Institute administered a community survey for the Village of Mount Prospect during 2016. The seven-page survey included a question regarding community priorities asking respondents to rank 18 issues based on priority level. This was followed by a question asking to rank the top five priorities that should receive the most emphasis over the next two years. Allowing video gaming was one of the issues to rank and it scored the lowest priority ranking for both questions out of the other 17 issues. The 2016 Community Survey Findings Report page regarding community priorities is attached for reference as Attachment E. Note: The Community Survey results (random sample of 490 households) have a 95% level of confidence with a precision of at least +/- 4.4%. Prior Public Surveys Online surveys were conducted during the 2009, 2012 and 2015 video gaming discussions. The purpose was to gauge public opinion on allowing video gaming in the Village. The 2015 survey had a response total of 546. Table4NumberofRespondentsper This response count is significant and Table 4 VideoGamingSurvey places it in context of the 2009 and 2012 video SurveyYear gaming surveys. The 2015 Video Gaming Survey 200920122015 provided respondents with a new answer option ResponseCount to provide non-resident stakeholders with an 16357498 Resident opportunity to identify their responses. Survey 9716 Business design limited responses to one per computer. NonResident n/an/a41 /BusinessPatron However, the 2015 survey results were reviewed 17062546 Total in further detail and many responses that *Thesumofresponsecountsisgreaterthan submitted Mount Prospect addresses did not totalcount,becausesurveydesignallowed correspond with actual street addresses in town. formultipleresponses.(i.e.businessowner Also, responses’ IP addresses frequently whoisalsoaresident) repeated possibly a result individuals working around surveymonkey.com survey design limit of one response per computer. The adjusted results had a response count of 98 with 62 (63%) in favor of video gaming and 36 (37%) against. In the 2009 and 2012 surveys majority (over 60%) of respondents voted they would not be in favor of allowing video gaming in the Village. Public opinion did not change when Video Gaming Terminal Discussion March 8, 2018 Page 8 presented with the scenario that if surrounding communities allowed video gaming, it would potentially put eligible Mount Prospect businesses at a competitive disadvantage. CONCLUSION: Staff offers no specific recommendation on this topic. However, staff recommends that if there is any change in current policy, such policy include a local licensing fee per establishment and per VGT in order to capture the additional staff time to monitor the state licensing and local code compliance. Alexander Bertolucci Administrative Analyst Attachment A – Video Gaming FAQ Attachment B – Video Gaming Revenues Tabulation Attachment C – Video Gaming Establishment Possibilities Attachment D – VGT Revenue by Establishment per Municipality_12-8-2017 Attachment E – 2016 Community Survey Findings Report – Community Priorities Attachment F – 230 ILCS 40/ Video Gaming Act AttachmentAVideoGamingFAQ Q.WhatqualifiesasavideogamingterminalΛͻDͼΜͪ A.AͻźķĻƚGamingĻƩƒźƓğƌͼΛͻDͼΜisanelectronicvideogamingmachinethatplays orsimulatestheplayofavideogameauthorizedbytheStateGamingBoard,upon video theinsertionofcash.Authorizedvideogamesinclude,butarenotlimitedto, poker,lineup,andblackjack.TheVGTmustutilizeavideodisplayand microprocessorinwhichtheplayermayreceivefreegamesorcreditsthatcanbe redeemedforcash.VGTdoesnotincludeamachinethatdirectlydispensescoins, cash,ortokensorisforamusementpurposesonly. Q.AretheVGTssubjecttoanyrequirements? A.Yes.TheActsetsforthminimumrequirementsforeachVGT.Theyallmustbe tested,approvedandconformtoastandardmodelthatmustconformtoallfederal lawsandregulations,abidebypayoutandcomputationrequirements,andmeet certaindataandelectronicrequirements. Q.Dothemachinespayoutcoinsorcashwhenyouwin? A.No.TheVGTsauthorizedundertheActonlydispenseͻƩĻĭĻźƦƷƷźĭƉĻƷƭͼthatcanbe laterredeemedforcashpayablebytheestablishment.Theticketisavailableaftera turniscompleteandwillindicatethetotalamountofcreditsandthecashaward, thedateandtime,theterminalserialnumber,thesequentialticketnumberandan encryptedvalidationnumber. Q.IstherealimitonhowmuchyoucanwinorbetonaVGT? A.Yes.TheActprovidesbothmaximumwagersandmaximumearnings.Themaximum wagerperhandiscappedat$2.00andthemaximumcashawardforasinglehandis $500.00.Additionallythevalueofeachcreditislimitedto5¢,10¢or25¢. Q.WhatarethehoursofoperationforVGTs? playedduringthelegalhoursofoperationallowedforthe A.VGTsmayonlybe consumptionofalcoholicbeveragesatthelicensedpremise. Q.HowmanyVGTswillbeallowedateachsite? A.Illinoislawallowsuptofivemachinestobeplacedateachlicenseestablishment. Q.WhattypesofestablishmentsareeligibleforVGTs? A.AͻƌźĭĻƓƭĻķĻƭƷğĬƌźƭŷƒĻƓƷͼͲlicensedtruckstops,oralicensedveteransandfraternal establishments. ͻ\[źĭĻƓƭĻķĻƭƷğĬƌźƭŷƒĻƓƷͼisdefinedasanylicensedretailestablishmentwhere alcoholicliquorisdrawn,poured,mixed,orotherwiseservedforconsumptionon premises,whethertheestablishmentoperatesonanonprofitorforprofitbasis. 1of7 AttachmentAVideoGamingFAQ Q.ArethereanylocationrestrictionsforVGTlicensedestablishments? A.AVGTestablishmentcannotbelocatedwithin1,000feetofafacilityoperatedbyan organizationlicenseelicensedundertheIllinoisHorseRacingActorhomedockofa worshipundertheReligious riverboator100feetofaschoolorplaceof CorporationAct TheActdefinesaͻƭĭŷƚƚƌͼasapublicorprivateelementaryorsecondaryschool registeredorrecognizedbytheStateBoardofEducation. Q.Whatifaschoolorplaceofworshipwastomovewithin100feetofaVGT qualifiedliquorlicenseestablishment? A.VGTapplicationswillnotbeacceptedifaschoolorplaceofworshipmovestooris establishedwithintherestrictedareaafteralicensedestablishmentbecomes licensedunderthisact. Alsoapplicationswillnotbeacceptedifaschoolorplaceofworshipmovestooris establishedwithintherestrictedareaafteralicensedestablishmentobtainsits originalliquorlicense. Q.DoVGTsneedtobeplacedinaspecificareainsidealicensedestablishment?Ifso, howisthearearestricted?Isitsupervised? A.Yes.AllVGTsmustbelocatedinanarearestrictedtopersonsover21yearsofage. Foralllicensedvideogaminglocationsthatrestrictadmittancetopatrons21years ofageorolder,aseparaterestrictedareaisnotrequired.Inlicensedvideogaming locationswhereseparationfromminorsunder21isrequired,aphysicalbarrierto gamingareaisalsorequired.Thephysicalbarriermayconsistofashort the partition,gateorropeorothermeansofseparationandshallnotvisuallyobscure theentrancetothegamingareafromanemployeeofthelicensedvideogaming locationwhoisovertheageof21. owner,manageroremployeeofthelicensedvideogaminglocationwhoisover The 21yearsofageshallbepresentduringallhoursofoperation,andtheVGTsorthe entrancetotheVGTareamustbewithintheviewofatleastoneowner,manageror employee.Whilealocationmayutilizeclosedcircuittelevisiontomonitorthe entrancetotheareainadditiontoanemployee,itmaynotutilizeclosedcircuit televisioninlieuofanemployee. Anotherdutyofthelicensedvideogaminglocationistopreventaccesstoorplayof VGTsbypersonswhoarevisiblyintoxicated. Q.AreVGTsmonitoredbytheStateandcantheyberemotelydeactivated? A.VGTsarelinkedbyacentralcommunicationssystemtoprovideauditinginformation asapprovedbytheStateGamingBoard.Thecentralcommunicationssystemshall useastandardindustryprotocol,asdefinedbytheGamingStandardsAssociation, 2of7 AttachmentAVideoGamingFAQ andshallhavethefunctionalitytoenabletheStateGamingBoardoritsdesigneeto activateordeactivateindividualgamingdevicesfromthecentralcommunications system. Q.Howdoesanestablishmentgetalicense? A.Inordertooffervideogaming,theActrequiresanestablishmenttoobtainalicense issuedbytheStateGamingBoard.Inordertoobtainalicense,theestablishment mustpossessavalidliquorlicenseatthetimeofapplicationandatalltimestheVGT isavailabletothepublic.Uponapplyingforalicense,theestablishmentissubjectto abackgroundinvestigationandmustdiscloseallpersons,associations,trustsor corporationswhowillhavemorethan1%pecuniaryinterestinthevideogaming operation.TheStateGamingBoardwilldenylicensestoestablishmentsthathavea backgroundthatposesathreattothepublicinterestsoftheStateorthesecurity andintegrityofvideogaming.Thisincludesestablishmentswithacriminalrecordor abadreputation,habits,socialstigmaorbusinessassociations. Q.Isaliquorlicenserequired?Ifyes,whathappenstoVGTsiftheylosetheirliquor license? A.Yes,unlessthevideogaminglocationisatruckstoporaveteransorfraternal establishment.Allothervideogaminglocationsmustbealicensedretail establishmentwherealcoholicliquorisdrawn,poured,mixed,orotherwiseserved forconsumptiononpremises,whethertheestablishmentoperatesonanonprofitor forprofitbasis. TheStateGamingBoardrulesstatealicensedvideogaminglocationistocommit no violationsregardingalcoholicbeveragesthatresultsinsuspensionorrevocationof anyliquorlicenseheldbyorassociatedwithalicensedvideogaminglocation. Additionally,alicensedvideogaminglocationistopromptlyreporttotheState liquorlicenseheldbythe Administratoranyactiontakenonorrelatedtoany licensedvideogaminglocation. Q.IsalicensetheonlyrequirementtohaveaVGT? A.No.TheActalsorequiresthattheowneroftheestablishment,orhisagent,must enterintoawrittenuseagreementwiththeterminaloperatorregardingthe placementandmaintenanceoftheterminals.Thisagreementmustbekeptonfile bytheownerandavailablefortheStateGaming.ƚğƩķ͸ƭinspection. Q.Whoisaterminaloperator? A.Anindividual,partnership,corporation,orlimitedliabilitycompanythatislicensed undertheActandthatowns,services,andmaintainsVGTsforplacementinlicensed establishments,licensedtruckstopestablishments,licensedfraternal establishments,orlicensedveteransestablishments. 3of7 AttachmentAVideoGamingFAQ Q.IstheVillageresponsibleforconductingbackgroundchecksand/orlicensinganyof thelicensees? A.TheVillageisNOTresponsibleforconductingbackgroundchecksand/orlicensing anyofthelicensees.TheresponsibilityisplacedontheStateGamingBoard. ThoughtheBoardmaydelegatesomeofthisresponsibility,eithertothe municipalityoranappointedinvestigator,theVillagewillfirstbeprovidedwithdue noticeofthisdelegation.Furthermore,theburdenoncomplianceisplacedonthe licensees,toensuretheyareabidingbytheirrespectivedutiesandobligations. Q.Whohasjurisdictionoverthegamingoperations? A.TheActprovidesthattheStateGamingBoardhasjurisdictionoverandshall superviseallgamingoperationsundertheAct. Q.Doesthemunicipalityhavetocommunicatewiththestateregardinglicensing? A.PerSection1800.1110StateLocalRelations: a)WhenevertheStateGamingBoardtakesanyactionauthorizingorprohibitingthe licensing,operation,oruseofVGTs,itshallnotifythepolicedepartmentorsheriff's officewhosejurisdictionincludesthepremisesonwhichtheVGTsareauthorizedor prohibited. b)Anymunicipality,countyorlawenforcementagencythattakesactionrelatingtothe operationoruseofaVGT,whetherlicensedorunlicensed,shallnotifytheState GamingBoardandspecifytheextentoftheactiontakenandthereasonsforthe action.TheBoardshallthereupontakewhateveractionisnecessaryundertheAct. AnylawenforcementagencythatconfiscatesVGTsorterminalincomeshall,assoon circumstances,turnovertheVGTsandterminalincometo aspracticableunderthe theBoardunlessotherwiseorderedbyacourtofcompetentjurisdiction. Q.WhatifanestablishmentviolatestheAct? A.AccordingtotheAct,anygamblingdeviceinviolationofthisActwillbeseized, liquorlicensefortheestablishment confiscatedanddestroyed.Inaddition,thestate shallbeimmediatelyrevoked andtheowneroftheestablishmentissubjecttoa Class4Felony,meaninghe/shecouldgetuptoa$25,000.00fineandbejailedforup to3years. Q.HowareVGTrevenuesdistributed? A.ThenetterminalincomeͻDğƒĬƌĻƩƭ\[ƚƭƭĻƭͼissubjecttoa30%statetax.Ofthattax, fivesixthsisdepositedintotheStateCapitalProjectsFundandonesixthis depositedintotheLocalGovernmentVideoGamingDistributiveFund.The DepartmentofRevenuewillallocateonamonthlybasisthefundsavailabletopay eacheligiblemunicipalityandcountyandthenwilldistributetheseamountsfrom theLocalGovernmentVideoGamingDistributiveFund.Themoneycanbeusedfor anygeneralcorporatepurpose.Theallocationoffundsshallbeinproportiontothe 4of7 AttachmentAVideoGamingFAQ taxrevenuegeneratedbyvideogamingfromtheeligiblemunicipalitiesandcounties ascomparedtothetaxrevenuegeneratedfromvideogamingstatewide. Q.WhendoestheStatedepositLocalGovernmentVideoGamingDistributiveFund amountstomunicipalities?Arethedepositsontime? A.Thevideogamingmoneyistransferredmonthlytothelocalmunicipalitiesaround th the20ofeachmonth.Todatedepositshavebeenontime. Q.IsthereanynewsiftheLocalGovernmentVideoGamingDistributiveFundwillbe reducedliketheLocalGovernmentDistributiveFund? A.Currently,thereisnonewsandstaffwillmonitorthisfurther. Q.DolocalmunicipalitieshaveadditionaloptionstoregulateVGTslocations? A.Homerulemunicipalitiescanlikelyimposedadditionalrestrictionsonthelocationof videogamingmachinesthatarereasonableanddesignedtomeetarational objective. Q.Canamunicipalityhavealocallicensefee?Ifyes,isthereamaximumthefeecan be?Isthefeeperestablishmentorvideogamingterminal? A.Yes.Nonhomerulemunicipalitiescanonlychargealicensefeeof$25.00peryear pervideogamingterminal.Homerulemunicipalitiesdonothaveafeeamount limit;however,thefeemusthavearationalrelationshiptothecostincurredbythe Village. Q.HowcanamunicipalityregulateestablishmentswithVGTs? A.Thelicensedvideogamingestablishmentswouldhavealiquorlicense;theVillage couldexerciseeffectivecontroloveranysuchestablishmentthroughitsliquor licensingauthority.(i.e.ifoneoftheseestablishmentsbecameaproblembecause videogaming,theLocalLiquorCommissionercouldtreatitlikeanyotherproblem of theCommissioneraddresseswithaliquorlicenseholder. Q.Canmunicipalitieslimitthenumberofvideogaminglicensedestablishments? A.TheVideoGamingActissilentonhomerulepreemption;thustheVillagehasthe abilitytoregulatethenumberofvideogamingestablishments. AtrialcourtopinionissuedbyJudgeKennedyinacaseinvolvingElmwoodPark videogaminglicensefeesin2014specificallyheldthattheVideoGamingActdoes notpreempthomeruleauthority.Thecaseisuponappeal.TheVillageAttorneys willmonitoritsprogresstodetermineiftheappellatecourttakesthesameview. Thenumberofvideogaminglicensescanbelimitedthroughtheissuanceof dedicatedliquorlicenses.TheVillagecouldlimitthetypesofliquorlicensesthatare eligibleforavideogaminglicense.TheVillagecouldalsorequireapplicantsfor liquorlicensestoprovideinformationaboutvideogamingintheirestablishments. 5of7 AttachmentAVideoGamingFAQ Finally,theVillagecouldcreateaspecialclassofliquorlicenseforvideogamingor videogamingcafes.Afewmunicipalitieshavechosentolimitvideogamingtoonly certainliquorlicenseclassifications. ThebestexampleistheCityofSycamorewhichonlyallowsvideogaminginliquor establishmentswhichholdaClassB,CorEliquorlicense.Thisallowsbars,clubs, bowlingalleysandgolfcoursestohavevideogaming.Excludedfromvideogaming arerestaurants,whichareaClassAliquorlicenseinSycamore.UndertheCityof {ǤĭğƒƚƩĻ͸ƭregulations,avideogamingcafecouldnotlikelyopenbecausethe definitionofaͻĬğƩͼrequiresthat80%ofthegrosssalesmustbefromalcoholic liquor. Similar,GraniteCity,IllinoishaslimitedvideogamingtoClassAliquorlicenses, whichislimitedtobarswherehalfthesalesarealcohol. inHoffmanEstatesdonotallowbarsor Incontrast,thecurrentliquorregulations tavernstoobtainvideogaminglicenses.Therefore,anestablishmentwishingto havevideogamingwouldhavetomeetthedefinitionofrestaurant,whichmeans ͻğƓǤpublicplacekept,used,maintained,advertisedandheldouttothepublicas aplacewheremealsareservedprimarilyforsitdowndiningwhichofferspatrons meals,includingdinnerand/orluncheonmenuatwhichtheserviceofalcoholic beveragesisincidentalandcomplementarytotheserviceofsuchmeals.Food service,suchasprovidedbyluncheonettes,diners,coffeeshops,driveins,fast foodoperations,andsimilaruses,donotsatisfytherequirementsofthis ķĻŅźƓźƷźƚƓ͵ͼAcafélocationmaynotmeetthedefinitionofarestaurant,depending onhowitisinterpreted. TheVillageofElginusesitsliquorlicenseapplicationproceduretogather informationaboutbusinessesseekingtoprovidevideogaming.Allfloorplans attachedtoliquorlicenseapplicationshavetoidentifyproposedvideogaming areasandapplicantsfornewlicenseshavetostatewhethertheywillalsoapplyfor avideogaminglicense.Giventhatvideogamingisnowassociatedwithaliquor license,itisanadditionalconsiderationforamunicipalitytoconsiderwhen determiningwhethertoincreasethenumberofliquorlicenses.Thesetypesof liquorcoderegulationswouldhelplimitthetypesofestablishmentsthatcan obtainvideogamelicenses.Further,itensurescurrentliquorlicenseholdershave theabilitytoobtainavideogaminglicense. Anotheroptionistocreateaspecificliquorlicenseforvideogamingorvideogaming cafes.ThiswouldallowtheVillagetocraftspecificrulesandregulationsforvideo gamingwithintheVillageandlimitthenumberofliquorlicensesforvideogaming. TheVillageofLakeZurichhascreatedaClassVliquorlicenseforliquor establishmentswithbothacurrentliquorlicenseandavideogaminglicense.A businessoperatingavideogamingterminalisrequiredtohaveaClassVlicensein 6of7 AttachmentAVideoGamingFAQ conjunctionwithandinadditiontotheliquorlicensealreadyrequiredtobeheld andthereisanadditional$250feeforaClassVliquorlicense.However,the numberofClassVliquorlicensesisintandemwiththeunderlyingliquorlicense. TheVillageofShermancreatedaspecialclassofliquorlicenseforvideogaming andonlypermittedfourlicenses.TheVillageofShermanchargesa$500annual feeforthevideogamingliquorlicenseandcharges$250perterminal. VillageofLakeintheHillsamendeditsLiquorCodetospecificallyaddressvideo gamingcafésbymakingcaféstheirownspecificclassofliquorlicense(A2)and onlyauthorizedoneA2liquorlicense. TheVillageofWheelinghasenactedchangestoitsLiquorLicenseCoderequiringa specifictypeofliquorlicensetoallowforvideogaminginanytypeofvideogaming eligibleestablishment. Q.Canmunicipalitiesfurtherlimitthenumberofvideogamingterminals? A.Usingitshomeruleauthority,itappearsthatatthistimeamunicipalitycanlimitthe maximumnumberofunitsperestablishmentbelowthestatutorymaximumof5. Thisnumbershouldbedeterminedusingarationalbasisanditshouldbethesame foranylicensedestablishment. Q.Isvideogaminganallornothingproposition?Ifweallowvideogaming,canwe decidenottodoitatafuturedate? gaminginthe A.Oncevideogamingisallowed,amunicipalitywillbeabletobanvideo future;howeversuchacommunitywilllikelyfacesignificantlitigation.Contractual rightsbetweenvendorsofvideogamingmachinesandvideogamingestablishments willariseoutofthepassageofvideogaminginacommunity.Banningvideogaming inthefuturewillimpactthoserightsandthuslikelycauselitigationtoensue.While videogamingcanlikelybebannedinthefutureitwillhavetobeforgoodreason andwillpossiblycomeatgreatexpense.Thedecisiontoallowgamingshouldbe madewiththeeyethatitispermanent.Thebetteroptionistocreatecontrolover videogamingestablishmentsthroughyourliquorlicensingprocess.Asstated above,themunicipalitycansuspendorrevokeaproblemvideogaming ĻƭƷğĬƌźƭŷƒĻƓƷ͸ƭliquorlicense. Q.WhatistheprocessfortheVillagetoinstitutevideogaming? A.TheVillagewouldpassanordinancemodifyingtheVillagecodetoallowforgaming. Thenewordinanceonceadoptedwouldthenbesentbyfax(312)8144602ormail itto: IllinoisGamingBoard LegalCounsel JamesPellum 160NorthLaSalleSuite300 ChicagoIllinois60601 7of7 AttachmentCΑVideoGamingEstablishmentPossibilities Locatedwithin100feetofaschoolorplaceof worship ClassEstablishmentAddress No F1BricksWoodFiredCafé1501FeehanvilleDr. F1ChipolteMexicanGrill102E.KensingtonRoadNo F1ChungKiwaRestaurant1658W.AlgonquinRd.No F1IzakayaSankyu1176SouthElmhurstRoadNo F1LePeepCafé10E.NorthwestHighwayNo F1LosArcos(Fadadias4)1707W.AlgonquinNo Restaurant1742E.KensingtonNo F1Mi F1Mr.KimchiKoreanBBQ1747GolfRoadNo F1NewPusanRestaurant1144SouthElmhurstRoadNo F2Salerno'sPizzeria1716EastKensingtonRoadNo F2AvantiCafé&SandwichBar1900SouthElmhurstRoadNo F2Frankie'sFastFoods720EastRandRoadNo F2MisoyaChicago1584S.BusseNo F2Mr.Beef&Pizza1796SouthElmhurstRoadNo F2Qulinarnia1730W.GolfRoadNo F2TortasLocas1827W.AlgonquinRoadNo F2YupinThai1652W.AlgonquinNo F3BalkanTaste2354S.ElmhurstRoadNo F3BarLouie200EastRandRoadNo F3BlackFinn157RandhurstVillageDriveNo F3BrickCity34S.MainNo F3BuffaloWildWings301EastEuclidAvenueNo BusseNo F3CantaNapoliPizzeria90East F3DraftPicks912S.BusseRoadNo F3E&O125RandhurstVillageDriveNo F3HaciendaElSombrero1100SouthElmhurstRoadNo F3Emerson'sAleHouse113S.EmersonStreetNo F3FelliniRestaurant1729WestGolfRoadNo F3Jameson'sCharhouse1702WestAlgonquinRoadNo F3KampaiJapaneseSteakHouse2330SouthElmhurstRoadNo E.EuclidNo F3LaPresa401 F3Langostino'sNayarit1590SouthBusseRoadNo F3Mia'sCantina143ProspectAvenueNo F3MinaRestaurant1724W.GolfRoadNo F3Mrs.P&MeRestaurant100EastProspectAvenueNo F3NinaRestaurant1774W.GolfRoadNo F3OutbackSteakhouse909N.ElmhurstNo F3Pap'sUltimateGrill&Bar1904SouthElmhurstRoadNo F3RetroBistro1746WestGolfRoadNo F3Sam'sPlace15WestProspectAvenueNo F3SmokeyBones164RandhurstVillageDr.No F3Summertime1132S.ElmhurstNo F3Trezeros302W.NorthwestHwy.No F3Truco211RandhurstVilageDriveNo F4ProspectMooseLodge#660601NorthMainStreetNo F5BristolPalace828E.RandRoadNo F5EmeraldBanquets1070S.ElmhurstNo F5VictoriainthePark1700S.ElmhurstNo 6MountProspectParkDistrict1000W.CentralNo F F6ProspectHeightsParkDistrict110CampMcDonaldRd.No F7Dave'sSpecialtyFoods105W.ProspectNo S2BrunswickZoneMountProspect824EastRandRoadNo S3Moretti's1799S.BusseNo S5AMCTheatreRandhurst200RandhurstVillageDriveNo 5 of 1 779.19226.71 1,176.732,053.646,425.828,367.80 44,224.24 11,308.6213,885.73 Share Municipality $ $$$$$$$$ Share 5,883.623,895.941,133.53 10,268.3232,129.1556,543.3669,428.7141,839.03 221,121.66 State $ $$$$$$$$ Rate 7,060.354,675.131,360.24 12,321.9638,554.9767,851.9883,314.4450,206.83 Tax (30%) 265,345.90 NTI $$$ $$$$$$ or 8,236.925,454.211,586.88 14,375.2044,979.6679,159.7897,199.1358,574.44 Operator Share 309,566.22 Licensed VGT $$$$$ $$$$$ Establishment of (70% 50/50) 3,173.75 16,473.8410,908.4228,750.4089,959.32 split 619,132.43 158,319.56194,398.26117,148.88 Licensed Operator total $$$$$ $$$$ Establishment/VG T Terminal 884,478.33 Income Net $$$$$$$ $$ Inc.167,355.71 Municipality INC.277,712.70 per LLC226,171.54 Inc.15,583.55 Restaurant, Inc.128,514.29 INC4,533.99 Tavern, CHICAGO, UP PM Restaurant, Establishment LLC41,072.36 House Pizzeria, AMORE Revenue by Continental Incorporated23,534.19 2017 15:36 Presa TotalAverage38,695.78 8 Revenue December VGT 03/05/2018 D: 2017 Grove GroveBRIGroveLaGroveLeiserv,GroveNino'sGrovePIZZAGrovePrairieGroveRACK'EMGroveThe Date: BuffaloJanuaryReportMunicipalityEstablishment BuffaloBuffaloBuffaloBuffaloBuffaloBuffaloBuffaloBuffalo Attachment 5 of 2 183.77 942.61 4,778.351,520.306,826.892,882.923,767.474,692.578,502.268,923.07 40,240.2139,965.6938,179.1237,002.1510,889.3429,183.7510,229.2618,243.7715,510.8434,220.3539,877.77 356,562.46 Share Municipality $$$$ $$$$$$$$$$$$$$$$$$ 918.84 Share 4,713.02 7,601.39 54,446.68 23,891.7951,146.4991,219.1034,134.5414,414.6777,554.2718,837.3723,463.0042,511.2944,615.50 201,201.23199,828.50190,895.52185,010.83145,918.86 171,101.87199,389.16 1,782,813.92 State $$$$$$$$$$$$$$$$$$$$$$ Rate 9,121.691,102.615,655.63 28,670.1465,336.0261,375.7540,961.4317,297.5993,065.1122,604.8428,155.5751,013.5553,538.57 Tax 241,441.44239,794.19229,074.64222,012.98175,102.61109,462.87205,322.22239,266.93 (30%) 2,139,376.38 NTI $$$$$$$ $$$$$$$$$$$$$$$ or 1,286.316,598.20 76,224.6171,604.44 33,448.0710,641.7847,787.6320,180.1626,371.6132,847.5459,515.2362,460.86 Operator 279,758.92267,253.00259,014.03204,285.72 281,680.74127,705.72108,574.88239,541.39279,144.01 118,853.56 Share Licensed 2,495,924.80 VGT Establishment$$$$$$$$$$$$$$$$$$$$$$$ of 50/50) (70% 2,572.61 66,896.1321,283.5613,196.3995,575.2640,360.3252,743.2165,695.08 563,361.48559,517.83534,505.99518,028.06152,449.22408,571.44143,208.87255,411.44217,149.75479,082.78558,288.01119,030.45124,921.72 split Licensed 4,991,849.60 total Operator $$$$$$$$$$ $$$$$$$$$$$$ Establishment/VGT Terminal 799,312.02763,580.63740,041.04 804,802.92 Income 7,131,225.98 Net $$$$$$$$$$$$$$$$$$$$$$ LLC684,405.00 SeriesSeriesSeriesSeries Inc.57,657.91 LLCLLCLLCLLC Inc.797,554.94 Inc18,852.02 Club, Municipality Company, Inc.3,675.22 per GroupGroupGroupGroup INC.364,874.31 Group Inc.170,044.00 Group, INC.217,785.24 LLC310,214.86 #2 Veterans Service District136,536.69 & Inc.75,348.05 INC.30,405.25 CafeL.L.C.178,460.29 INC.583,674.05 Inc.93,850.65 LOUNGE, Associated, RestaurantRestaurantRestaurantRestaurant Inc.95,566.27 II, ParkVillage CORNER PM Establishment Restaurant and CafÃ© Entertainment Inc.204,584.62 Hospitality,Revenue PASTA, by Spoon, Gaming GROVE P GroveGrove Adelphia 2017 15:18 & BlackhawkBCElkGroveBlackhawkCSElkGroveBlackhawkEGAElkGroveBlackhawkMPElkGrove TotalAverage 21 Revenue December VGT 03/05/2018 D: Village VillageBarbello's,VillageBESTVillageVillageVillageVillageVillageCastroVillageCOACH'SVillageDARUWALAVillageDonatoVillageEHM,VillageELKVillageElkVillageElkVillageFVillageIllinoisVillageRoccovinoVillage SweisVillageThaiVillageTheVillageX 2017 Date: Grove GroveGroveGroveGroveGroveGroveGroveGroveGroveGroveGroveGroveGroveGroveGroveGroveGroveGroveGroveGroveGrove ElkJanuaryReportMunicipalityEstablishment ElkElkElkElkElkElkElkElkElkElkElkElkElkElkElkElkElkElkElkElkElk Attachment 5 of 3 865.85 2,175.576,471.818,235.494,404.58 25,071.90 12,939.0211,639.0811,734.8621,263.3427,959.6120,330.0820,575.2322,825.1826,838.9115,163.6222,191.2543,296.6438,587.9815,051.1410,951.39 Share 368,572.53 Municipality $$ $$$$$$$$$$$$$$$$$$$$ Share 4,329.28 64,695.4010,877.8632,359.2058,195.5458,674.4275,818.2541,177.6122,022.9175,255.8054,757.04 106,316.65139,797.96101,650.51102,876.23114,126.02134,194.64110,956.46125,359.51216,483.43192,940.10 1,842,864.82 State $$$$$$$$$$$$$$$$$$$$$$ Rate 5,195.13 77,634.4213,053.4338,831.0169,834.6270,409.2890,981.8749,413.1026,427.4990,306.9465,708.43 Tax (30%) 127,579.99167,757.57121,980.59123,451.46136,951.20161,033.55133,147.71150,431.41259,780.07231,528.08 2,211,437.35 NTI $$$$$$$$$$$$$$$$$$$$$$ or 6,060.74 90,572.4115,228.7645,302.3081,472.8982,143.0557,648.1630,831.4676,658.54 Operator Share 148,841.92195,715.91142,309.83144,025.92159,775.27187,871.38106,144.32155,337.67175,502.97303,075.53270,115.05105,357.54 122,856.74 Licensed 2,579,991.55 VGT $$$$$$$$$$$$$$$$$$$$$$$ Establishment of (70% 50/50) 30,457.5190,604.5912,121.4861,662.92 split 391,431.82153,317.07 181,144.82162,945.77164,286.09297,683.83284,619.65288,051.84319,550.54375,742.75212,288.64115,296.31310,675.33351,005.93606,151.05540,230.09210,715.07 Licensed 5,159,983.10 Operator total $$$$$$$$$$$$$$$$$$$$$$ Establishment/VG T 43,510.9417,316.6188,090.41 Terminal 258,779.24129,435.60232,780.39234,695.37425,263.82559,189.39406,600.24411,503.30456,501.74536,776.30303,270.51164,709.41443,823.04501,437.34865,931.12771,758.17301,022.01219,025.50 Income 7,371,420.45 Net $$$$$$$$$$$$$$$$$$$$$$ LLC Inc. Center, LLC SeriesSeries Estates, Cafe, ESTATES LLCLLC & Inc. Municipality Shopping Inc. LLC Bar Company, LLC perHoffman Inc. GroupGroup INC. Center, HOFFMAN Road, LLC GRILL Village LLC RoadRoad, INN, Road, Service & Inc. American & LLCINC. INC. A, BAR Room Higgins Bowling RestaurantRestaurant INC. RoselleRoselle & PM Higgins Hoffman Establishment INC. CAFE K CafÃ© Corp. Investments Revenue by W.West APE, SALOON,AssemblySaddle CHAPALA 2017 17:19 24752525AMERICA'SANNA'SBarringtonBlackhawkFVPHoffmanBlackhawkHVSCHoffmanDoubleGARAA,IllinoisJADEKJ'SKristyMINEIGHBORHOODSadieShelby'sShelby'sStella'sLLCTheThe TotalAverage 21 Revenue December VGT 03/05/2018 D: Estates EstatesEstatesEstatesEstatesEstatesEstatesEstatesEstatesEstatesEstatesEstatesEstatesEstatesEstatesEstatesEstatesEstatesEstatesEstatesEstatesEstates 2017 Date: HoffmanJanuaryReportMunicipalityEstablishment HoffmanHoffman HoffmanHoffmanHoffmanHoffmanHoffmanHoffmanHoffmanHoffmanHoffmanHoffmanHoffmanHoffmanHoffmanHoffmanHoffmanHoffmanHoffmanHoffmanHoffman Attachment 5 of 4 4.86 2,238.731,990.161,346.933,722.69 42,288.6620,705.6835,184.3512,090.3828,945.2614,470.4019,597.2316,391.6037,433.61 236,410.54 Share Municipality $$$$$$$$$$$$$$$ 24.27 Share 9,950.936,734.61 11,193.8160,452.0672,352.2497,986.1381,958.0718,613.48 211,443.51103,528.60175,922.01144,726.44187,168.05 1,182,054.21 State $$$$$$$$$$$$$$$ 29.13 Rate 8,081.54 13,432.5411,941.0972,542.4486,822.6498,349.6722,336.17 Tax 253,732.17124,234.28211,106.36173,671.70117,583.36224,601.66 (30%) 1,418,464.75 NTI $$$ $$$$$$$$$$$$ or 34.00 9,428.32 15,670.5313,930.65 84,631.8526,058.46 Operator 296,019.99144,939.02246,289.53202,616.14101,291.97137,179.48114,740.40262,034.50 118,204.63 Share Licensed 1,654,864.82 VGT Establishment$$$$$$$$$$$$$$$$ of 68.00 50/50) (70% 31,341.0627,861.3018,856.6352,116.91 592,039.98289,878.04492,579.05169,263.70405,232.28202,583.93274,358.96229,480.80524,069.00 split Licensed 3,309,729.64 total Operator $$$$$ $$$$$$$$$$ Establishment/VGT Terminal 845,772.15703,685.41 Income 4,728,194.39 Net $$$$$$$$$$$$$$$ Series LLC Corp.44,773.60 L.L.C.39,802.39 Municipality LLC748,670.66 perENTERTAINMENT LLC578,903.98 Group LLC97.13 AND Heights, Inc.391,942.32 Hospitality, GRILL, LLC289,406.57 Corp.327,830.47 & Development, PALACE INC.414,112.32 inc.26,938.17 Restaurant MUSIC LLC74,453.08 PM PUB Prospect Establishment Land OF PIZZA Pollo Corp.241,806.14 Billiards Revenue byBLISS, Enterprises, Grill, Northbrook S Hospitality 2017 15:29 & K BlackhawkPCProspectHOUSELLC TotalAverage 14 Revenue December VGT 03/05/2018 D: Heights HeightsBaysHeightsHeightsCAFEHeightsFiresideHeightsHeightsJsHeightsLOLA'SHeightsM&MHeightsPLAYERSHeightsRHeightsSellisHeightsSeoulHeightsStella'sHeightsYugo 2017 Date: ProspectJanuaryReportMunicipalityEstablishment ProspectProspectProspectProspectProspectProspectProspectProspectProspectProspectProspectProspectProspectProspect Attachment 5 of 5 821.45351.94 5,129.507,724.364,744.345,815.511,287.304,293.89 24,633.9842,506.9010,787.2914,713.3231,935.0242,187.9037,127.71 Share 234,060.41 Municipality $$$$$$$$$$$$$$$$ Share 4,107.221,759.796,436.60 25,647.5638,621.9123,721.9029,077.4153,936.5973,566.7021,469.56 123,170.01212,534.58159,675.30210,939.72185,638.75 1,170,303.60 State $$$$ $$$$$$$$$$$$ Rate 4,928.672,111.737,723.90 30,777.0646,346.2728,466.2434,892.9264,723.8888,280.0225,763.45 Tax (30%) 147,803.99255,041.48191,610.32253,127.62222,766.46 1,404,364.01 NTI $$$$$$$$$$$$$$$$ or 5,749.862,463.549,011.01 35,905.9775,510.17 54,069.6933,209.9040,708.1330,056.78 Operator Share 172,437.01297,546.98102,991.99223,544.40295,314.46259,892.68 Licensed 1,638,412.53 VGT $$$$$$$$$$$$$$$$$ Establishment (70% split 4,927.08 71,811.9411,499.7166,419.7981,416.2518,022.0160,113.55 50/50) total 108,139.37344,874.02595,093.96151,020.34205,983.97447,088.80590,628.91519,785.36 Licensed 3,276,825.06 of Operator T $$$$$$$$$$$$$$$$ Establishment/VG Terminal 215,744.22 638,699.12 Income 4,681,189.07 Net $$$ $$$$$$$$$$$$$ LLC850,135.44 Inc.154,485.64 LLC742,551.82 LLC843,756.53 AMVET INC.116,309.17 Inc.492,678.01 Municipality Farms, 66 INC.25,745.91 Plaza, INN, LLC16,428.38 per Wheeling, Fresh POST Commons, Lynn INC.102,589.00 Grill, Inc.85,877.00 Restaurant, INC.94,886.03 INN,Inc. Pizzeria REDWOOD INC.294,263.99 HOSPITALITY, Wheeling CORPORATION Mexican PM LexingtonWheeling Establishment INC.7,038.81 DAM CARPENTER Square Ghetti's, III PIZZERIA Revenue by Station, Pa 2017 15:33 Alamo BUILDING Average109,227.50 PHILLIPProp Total 15 Revenue December VGT 03/05/2018 D: 2017 Date: WheelingJanuaryReportMunicipalityEstablishment WheelingANDY'SWheelingD'Agostino'sWheelingElWheelingJIN28WheelingJOE'SWheelingKILCOYNE'SWheelingMarketWheelingMaxine'sWheelingWheelingPINHEADS,WheelingW heelingPROSPECTWheelingStella'sWheelingStella'sWheelingWa Attachment Village of Mount Prospect Community Survey 2016 Report Q21. Overall Satisfaction with Community Priorities by percentage of respondents who rated the item as a 1 to 5 on a 5-point scale (excluding don't knows) Overall quality of life50%41%9% 2% Crime prevention56%34%8% 3% A balanced Village budget48%36%13% 4% Quality & drivability of Village streets33%50%14% 3% Flood prevention/storm water management46%36%14% 3% Quality of services provided by the Village34%49%15% Village sidewalks26%49%19%6% 5% Walkability of downtown & other areas29%45%21% A vibrant downtown33%41%20%6% Availability of parking downtown20%41%9% 31% Environmentally sustainable practices19%39%12% 31% Availability of green space16%41%11% 32% Historic preservation13%37%13% 37% Arts & cultural amenities14%35%14% 37% Availability/integration of biking lanes & trails20% 13%30%37% Diversity of housing choices9%27%24% 39% Greater residential density downtown25% 10%21%44% Allowing video gaming58% 6%10%26% Other8% 60%24%8% 0%20%40%60%80%100% Very High Priority (5)High Priority (4)Neutral (3)Low Priority (2/1) Source: ETC Institute (2016) Q22.Community Priorities That Should Receive the Most Emphasis Over the Next Two Years by percentage of respondents who selected the item as one of their top five choices Crime prevention56% A balanced Village budget 46% Flood prevention & storm water management 40% Overall quality of life 35% Quality of services provided by the Village 34% A vibrant downtown31% Quality & drivability of Village streets 29% Village sidewalks15% Environmentally sustainable practices 13% Availability/integration of biking lanes & trails 11% Walkability of downtown & other areas 11% Arts & cultural amenities 11% Availability of green space9% Availability of parking downtown 9% Diversity of housing choices6% Historic preservation 5% Greater residential density in downtown5% Allowing video gaming 4% Other 3% 0%20%40%60% 1st Choice2nd Choice3rd Choice4th Choice5th Choice Source: ETC Institute (2016) Page 14 230 ILCS 40/ Video Gaming Act.Page 1of 16 Information maintained by the Legislative Reference Bureau Updating the database of the Illinois Compiled Statutes (ILCS) is an ongoing process. Recent laws may not yet be included in the ILCS database, but they are found on this site as Public Acts soon after they become law. For information concerning the relationship between statutes and Public Acts, refer to the Guide. Because the statute database is maintained primarily for legislative drafting purposes, statutory changes are sometimes included in the statute database before they take effect. If the source note at the end of a Section of the statutes includes a Public Act that has not yet taken effect, the version of the law that is currently in effect may have already been removed from the database and you should refer to that Public Act to see the changes made to the current law. GAMING (230 ILCS 40/) Video Gaming Act. (230 ILCS 40/Art. 5 heading) ARTICLE 5. (Source: P.A. 96-34, eff. 7-13-09.) (230 ILCS 40/1) Sec. 1. Short title. This Article may be cited as the Video Gaming Act. Any references in this Article to "this Act" mean this Article. (Source: P.A. 96-34, eff. 7-13-09.) (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, or licensed 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 licensed establishment for which it was issued. "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 fraternal establishments, or licensed veterans establishments. "Licensed technician" means an individual who is licensed 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 http://ilga.gov/legislation/ilcs/ilcs4.asp?DocName=023000400HArt%2E+5&ActID=3095&...3/5/2018 230 ILCS 40/ Video Gaming Act.Page 2of 16 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 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 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 Riverboat 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) http://ilga.gov/legislation/ilcs/ilcs4.asp?DocName=023000400HArt%2E+5&ActID=3095&...3/5/2018 230 ILCS 40/ Video Gaming Act.Page 3of 16 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. (Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98- 582, eff. 8-27-13; 98-587, eff. 8-27-13; 98-756, eff. 7-16- 14.) (230 ILCS 40/15) Sec. 15. Minimum requirements for licensing and registration. Every video gaming terminal offered for play shall first be tested and approved pursuant to the rules of the Board, and each video gaming terminal offered in this State for play shall conform to an approved model. For the examination of video gaming machines and associated equipment as required by this Section, the Board may utilize the services of one or more independent outside testing laboratories that have been accredited by a national accreditation body and that, in the judgment of the Board, are qualified to perform such examinations. Every video gaming terminal offered in this State for play must meet minimum standards set by an independent outside testing laboratory approved by the Board. Each approved model shall, at a minimum, meet the following criteria: (1) It must conform to all requirements of federal law and regulations, including FCC Class A Emissions Standards. (2) It must theoretically pay out a mathematically demonstrable percentage during the expected lifetime of the machine of all amounts played, which must not be less than 80%. The Board shall establish a maximum payout percentage for approved models by rule. Video gaming terminals that may be affected by skill must meet this standard when using a method of play that will provide the greatest return to the player over a period of continuous play. (3) It must use a random selection process to determine the outcome of each play of a game. The random selection process must meet 99% confidence limits using a standard chi-squared test for (randomness) goodness of fit. (4) It must display an accurate representation of the game outcome. (5) It must not automatically alter pay tables or any function of the video gaming terminal based on internal computation of hold percentage or have any means of manipulation that affects the random selection process or probabilities of winning a game. (6) It must not be adversely affected by static discharge or other electromagnetic interference. (7) It must be capable of detecting and displaying the following conditions during idle states or on demand: power reset; door open; and door just closed. (8) It must have the capacity to display complete http://ilga.gov/legislation/ilcs/ilcs4.asp?DocName=023000400HArt%2E+5&ActID=3095&...3/5/2018 230 ILCS 40/ Video Gaming Act.Page 4of 16 play history (outcome, intermediate play steps, credits available, bets placed, credits paid, and credits cashed out) for the most recent game played and 10 games prior thereto. (9) The theoretical payback percentage of a video gaming terminal must not be capable of being changed without making a hardware or software change in the video gaming terminal, either on site or via the central communications system. (10) Video gaming terminals must be designed so that replacement of parts or modules required for normal maintenance does not necessitate replacement of the electromechanical meters. (11) It must have nonresettable meters housed in a locked area of the terminal that keep a permanent record of all cash inserted into the machine, all winnings made by the terminal printer, credits played in for video gaming terminals, and credits won by video gaming players. The video gaming terminal must provide the means for on- demand display of stored information as determined by the Board. (12) Electronically stored meter information required by this Section must be preserved for a minimum of 180 days after a power loss to the service. (13) It must have one or more mechanisms that accept cash in the form of bills. The mechanisms shall be designed to prevent obtaining credits without paying by stringing, slamming, drilling, or other means. If such attempts at physical tampering are made, the video gaming terminal shall suspend itself from operating until reset. (14) It shall have accounting software that keeps an electronic record which includes, but is not limited to, the following: total cash inserted into the video gaming terminal; the value of winning tickets claimed by players; the total credits played; the total credits awarded by a video gaming terminal; and pay back percentage credited to players of each video game. (15) It shall be linked by a central communications system to provide auditing program information as approved by the Board. The central communications system shall use a standard industry protocol, as defined by the Gaming Standards Association, and shall have the functionality to enable the Board or its designee to activate or deactivate individual gaming devices from the central communications system. In no event may the communications system approved by the Board limit participation to only one manufacturer of video gaming terminals by either the cost in implementing the necessary program modifications to communicate or the inability to communicate with the central communications system. (16) The Board, in its discretion, may require video gaming terminals to display Amber Alert messages if the Board makes a finding that it would be economically and technically feasible and pose no risk to the integrity and security of the central communications system and video gaming terminals. The Board may adopt rules to establish additional criteria to preserve the integrity and security of video gaming in this State. The central communications system vendor may be licensed as a video gaming terminal manufacturer or a video http://ilga.gov/legislation/ilcs/ilcs4.asp?DocName=023000400HArt%2E+5&ActID=3095&...3/5/2018 230 ILCS 40/ Video Gaming Act.Page 5of 16 gaming terminal distributor, or both, but in no event shall the central communications system vendor be licensed as a video gaming terminal operator. The Board shall not permit the development of information or the use by any licensee of gaming device or individual game performance data. Nothing in this Act shall inhibit or prohibit the Board from the use of gaming device or individual game performance data in its regulatory duties. The Board shall adopt rules to ensure that all licensees are treated and all licensees act in a non-discriminatory manner and develop processes and penalties to enforce those rules. (Source: P.A. 98-31, eff. 6-24-13; 98-377, eff. 1-1-14; 98- 582, eff. 8-27-13; 98-756, eff. 7-16-14.) (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 $2. No cash award for the maximum wager on any individual hand shall exceed $500. (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 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 as any incentive or inducement to http://ilga.gov/legislation/ilcs/ilcs4.asp?DocName=023000400HArt%2E+5&ActID=3095&...3/5/2018 230 ILCS 40/ Video Gaming Act.Page 6of 16 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 fraternal establishment, or licensed veterans establishment, notwithstanding any agreement to the contrary. 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. (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 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 5 video gaming terminals on its premises at any time. (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 http://ilga.gov/legislation/ilcs/ilcs4.asp?DocName=023000400HArt%2E+5&ActID=3095&...3/5/2018 230 ILCS 40/ Video Gaming Act.Page 7of 16 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) 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 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 http://ilga.gov/legislation/ilcs/ilcs4.asp?DocName=023000400HArt%2E+5&ActID=3095&...3/5/2018 230 ILCS 40/ Video Gaming Act.Page 8of 16 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 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.) (230 ILCS 40/26) Sec. 26. Residency requirement. Each licensed distributor, terminal operator, and person with a substantial interest in a licensed distributor or terminal operator must be an Illinois resident. However, if an out-of-state distributor or terminal operator has performed its respective business within Illinois for at least 48 months prior to the effective date of this Act, the out-of-state person may be eligible for licensing under this Act, upon application to and approval of the Board. The Board shall adopt rules to implement this Section. (Source: P.A. 96-38, eff. 7-13-09.) (230 ILCS 40/27) Sec. 27. Prohibition of video gaming by political subdivision. A municipality may pass an ordinance prohibiting video gaming within the corporate limits of the municipality. A county board may, for the unincorporated area of the county, pass an ordinance prohibiting video gaming within the unincorporated area of the county. (Source: P.A. 96-34, eff. 7-13-09.) (230 ILCS 40/30) Sec. 30. Multiple types of licenses prohibited. A video gaming terminal manufacturer may not be licensed as a video gaming terminal operator or own, manage, or control a licensed establishment, licensed truck stop establishment, licensed fraternal establishment, or licensed veterans establishment, and shall be licensed to sell only to persons having a valid distributor's license or, if the manufacturer also holds a valid distributor's license, to sell, distribute, lease, or market to persons having a valid terminal operator's license. A video gaming terminal distributor may not be licensed as a video gaming terminal operator or own, manage, or control a licensed establishment, licensed truck stop establishment, licensed fraternal establishment, or licensed veterans http://ilga.gov/legislation/ilcs/ilcs4.asp?DocName=023000400HArt%2E+5&ActID=3095&...3/5/2018 230 ILCS 40/ Video Gaming Act.Page 9of 16 establishment, and shall only contract with a licensed terminal operator. A video gaming terminal operator may not be licensed as a video gaming terminal manufacturer or distributor or own, manage, or control a licensed establishment, licensed truck stop establishment, licensed fraternal establishment, or licensed veterans establishment, and shall be licensed only to contract with licensed distributors and licensed establishments, licensed truck stop establishments, licensed fraternal establishments, and licensed veterans establishments. An owner or manager of a licensed establishment, licensed truck stop establishment, licensed fraternal establishment, or licensed veterans establishment may not be licensed as a video gaming terminal manufacturer, distributor, or operator, and shall only contract with a licensed operator to place and service this equipment. (Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.) (230 ILCS 40/35) Sec. 35. Display of license; confiscation; violation as felony. (a) Each video gaming terminal shall be licensed by the Board before placement or operation on the premises of a licensed establishment, licensed truck stop establishment, licensed fraternal establishment, or licensed veterans establishment. The license of each video gaming terminal shall be maintained at the location where the video gaming terminal is operated. Failure to do so is a petty offense with a fine not to exceed $100. Any licensed establishment, licensed truck stop establishment, licensed fraternal establishment, or licensed veterans establishment used for the conduct of gambling games in violation of this Act shall be considered a gambling place in violation of Section 28-3 of the Criminal Code of 2012. Every gambling device found in a licensed establishment, licensed truck stop establishment, licensed fraternal establishment, or licensed veterans establishment operating gambling games in violation of this Act shall be subject to seizure, confiscation, and destruction as provided in Section 28-5 of the Criminal Code of 2012. Any license issued under the Liquor Control Act of 1934 to any owner or operator of a licensed establishment, licensed truck stop establishment, licensed fraternal establishment, or licensed veterans establishment that operates or permits the operation of a video gaming terminal within its establishment in violation of this Act shall be immediately revoked. No person may own, operate, have in his or her possession or custody or under his or her control, or permit to be kept in any place under his or her possession or control, any device that awards credits and contains a circuit, meter, or switch capable of removing and recording the removal of credits when the award of credits is dependent upon chance. Nothing in this Section shall be deemed to prohibit the use of a game device only if the game device is used in an activity that is not gambling under subsection (b) of Section 28-1 of the Criminal Code of 2012. A violation of this Section is a Class 4 felony. All devices that are owned, operated, or possessed in violation of this Section are hereby declared to be public nuisances and shall be subject to seizure, confiscation, and destruction as provided in Section 28-5 of the Criminal Code of 2012. http://ilga.gov/legislation/ilcs/ilcs4.asp?DocName=023000400HArt%2E+5&ActID=3095&...3/5/2018 230 ILCS 40/ Video Gaming Act.Page 10of 16 The provisions of this Section do not apply to devices or electronic video game terminals licensed pursuant to this Act. A video gaming terminal operated for amusement only and bearing a valid amusement tax sticker shall not be subject to this Section until 30 days after the Board establishes that the central communications system is functional. (b) (1) The odds of winning each video game shall be posted on or near each video gaming terminal. The manner in which the odds are calculated and how they are posted shall be determined by the Board by rule. (2) No video gaming terminal licensed under this Act may be played except during the legal hours of operation allowed for the consumption of alcoholic beverages at the licensed establishment, licensed fraternal establishment, or licensed veterans establishment. A licensed establishment, licensed fraternal establishment, or licensed veterans establishment that violates this subsection is subject to termination of its license by the Board. (Source: P.A. 97-1150, eff. 1-25-13; 98-111, eff. 1-1-14.) (230 ILCS 40/40) Sec. 40. Video gaming terminal use by minors prohibited. No licensee shall cause or permit any person under the age of 21 years to use or play a video gaming terminal. Any licensee who knowingly permits a person under the age of 21 years to use or play a video gaming terminal is guilty of a business offense and shall be fined an amount not to exceed $5,000. (Source: P.A. 96-34, eff. 7-13-09.) (230 ILCS 40/45) Sec. 45. Issuance of license. (a) The burden is upon each applicant to demonstrate his suitability for licensure. Each video gaming terminal manufacturer, distributor, supplier, operator, handler, licensed establishment, licensed truck stop establishment, licensed fraternal establishment, and licensed veterans establishment shall be licensed by the Board. The Board may issue or deny a license under this Act to any person pursuant to the same criteria set forth in Section 9 of the Riverboat Gambling Act. (a-5) The Board shall not grant a license to a person who has facilitated, enabled, or participated in the use of coin- operated devices for gambling purposes or who is under the significant influence or control of such a person. For the purposes of this Act, "facilitated, enabled, or participated in the use of coin-operated amusement devices for gambling purposes" means that the person has been convicted of any violation of Article 28 of the Criminal Code of 1961 or the Criminal Code of 2012. If there is pending legal action against a person for any such violation, then the Board shall delay the licensure of that person until the legal action is resolved. (b) Each person seeking and possessing a license as a video gaming terminal manufacturer, distributor, supplier, operator, handler, licensed establishment, licensed truck stop establishment, licensed fraternal establishment, or licensed veterans establishment shall submit to a background investigation conducted by the Board with the assistance of the State Police or other law enforcement. To the extent that the corporate structure of the applicant allows, the http://ilga.gov/legislation/ilcs/ilcs4.asp?DocName=023000400HArt%2E+5&ActID=3095&...3/5/2018 230 ILCS 40/ Video Gaming Act.Page 11of 16 background investigation shall include any or all of the following as the Board deems appropriate or as provided by rule for each category of licensure: (i) each beneficiary of a trust, (ii) each partner of a partnership, (iii) each member of a limited liability company, (iv) each director and officer of a publicly or non-publicly held corporation, (v) each stockholder of a non-publicly held corporation, (vi) each stockholder of 5% or more of a publicly held corporation, or (vii) each stockholder of 5% or more in a parent or subsidiary corporation. (c) Each person seeking and possessing a license as a video gaming terminal manufacturer, distributor, supplier, operator, handler, licensed establishment, licensed truck stop establishment, licensed fraternal establishment, or licensed veterans establishment shall disclose the identity of every person, association, trust, corporation, or limited liability company having a greater than 1% direct or indirect pecuniary interest in the video gaming terminal operation for which the license is sought. If the disclosed entity is a trust, the application shall disclose the names and addresses of the beneficiaries; if a corporation, the names and addresses of all stockholders and directors; if a limited liability company, the names and addresses of all members; or if a partnership, the names and addresses of all partners, both general and limited. (d) No person may be licensed as a video gaming terminal manufacturer, distributor, supplier, operator, handler, licensed establishment, licensed truck stop establishment, licensed fraternal establishment, or licensed veterans establishment if that person has been found by the Board to: (1) have a background, including a criminal record, reputation, habits, social or business associations, or prior activities that pose a threat to the public interests of the State or to the security and integrity of video gaming; (2) create or enhance the dangers of unsuitable, unfair, or illegal practices, methods, and activities in the conduct of video gaming; or (3) present questionable business practices and financial arrangements incidental to the conduct of video gaming activities. (e) Any applicant for any license under this Act has the burden of proving his or her qualifications to the satisfaction of the Board. The Board may adopt rules to establish additional qualifications and requirements to preserve the integrity and security of video gaming in this State. (f) A non-refundable application fee shall be paid at the time an application for a license is filed with the Board in the following amounts: (1) Manufacturer................................$5,000 (2) Distributor.................................$5,000 (3) Terminal operator...........................$5,000 (4) Supplier....................................$2,500 (5) Technician....................................$100 (6) Terminal Handler...............................$50 (g) The Board shall establish an annual fee for each license not to exceed the following: (1) Manufacturer...............................$10,000 (2) Distributor................................$10,000 http://ilga.gov/legislation/ilcs/ilcs4.asp?DocName=023000400HArt%2E+5&ActID=3095&...3/5/2018 230 ILCS 40/ Video Gaming Act.Page 12of 16 (3) Terminal operator...........................$5,000 (4) Supplier....................................$2,000 (5) Technician....................................$100 (6) Licensed establishment, licensed truck stop establishment, licensed fraternal establishment, or licensed veterans establishment....................$100 (7) Video gaming terminal.........................$100 (8) Terminal Handler...............................$50 (h) A terminal operator and a licensed establishment, licensed truck stop establishment, licensed fraternal establishment, or licensed veterans establishment shall equally split the fees specified in item (7) of subsection (g). (Source: P.A. 97-1150, eff. 1-25-13; 98-31, eff. 6-24-13; 98- 587, eff. 8-27-13; 98-756, eff. 7-16-14.) (230 ILCS 40/50) Sec. 50. Distribution of license fees. (a) All fees collected under Section 45 shall be deposited into the State Gaming Fund. (b) Fees collected under Section 45 shall be used as follows: (1) Twenty-five percent shall be paid, subject to appropriation by the General Assembly, to the Department of Human Services for administration of programs for the treatment of compulsive gambling. (2) Seventy-five percent shall be used for the administration of this Act. (c) All licenses issued by the Board under this Act are renewable annually unless sooner cancelled or terminated. No license issued under this Act is transferable or assignable. (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.) (230 ILCS 40/55) Sec. 55. Precondition for licensed location. In all cases of application for a licensed location, to operate a video gaming terminal, each licensed establishment, licensed fraternal establishment, or licensed veterans establishment shall possess a valid liquor license issued by the Illinois Liquor Control Commission in effect at the time of application and at all times thereafter during which a video gaming terminal is made available to the public for play at that location. Video gaming terminals in a licensed location shall be operated only during the same hours of operation generally permitted to holders of a license under the Liquor Control Act of 1934 within the unit of local government in which they are located. A licensed truck stop establishment that does not hold a liquor license may operate video gaming terminals on a continuous basis. A licensed fraternal establishment or licensed veterans establishment that does not hold a liquor license may operate video gaming terminals if (i) the establishment is located in a county with a population between 6,500 and 7,000, based on the 2000 U.S. Census, (ii) the county prohibits by ordinance the sale of alcohol, and (iii) the establishment is in a portion of the county where the sale of alcohol is prohibited. A licensed fraternal establishment or licensed veterans establishment that does not hold a liquor license may operate video gaming terminals if (i) the establishment is located in a municipality within a county with a population between 8,500 and 9,000 based on the 2000 http://ilga.gov/legislation/ilcs/ilcs4.asp?DocName=023000400HArt%2E+5&ActID=3095&...3/5/2018 230 ILCS 40/ Video Gaming Act.Page 13of 16 U.S. Census and (ii) the municipality or county prohibits or limits the sale of alcohol by ordinance in a way that prohibits the establishment from selling alcohol. (Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10; 97- 594, eff. 8-26-11.) (230 ILCS 40/57) Sec. 57. Insurance. Each terminal operator shall maintain liability insurance on any gaming device that it places in a licensed video gaming location in an amount set by the Board. (Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.) (230 ILCS 40/58) Sec. 58. Location of terminals. Video gaming terminals must be located in an area restricted to persons over 21 years of age the entrance to which is within the view of at least one employee, who is over 21 years of age, of the establishment in which they are located. The placement of video gaming terminals in licensed establishments, licensed truck stop establishments, licensed fraternal establishments, and licensed veterans establishments shall be subject to the rules promulgated by the Board pursuant to the Illinois Administrative Procedure Act. (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.) (230 ILCS 40/60) Sec. 60. Imposition and distribution of tax. (a) A tax of 30% is imposed on net terminal income and shall be collected by the Board. (b) Of the tax collected under this Section, five-sixths shall be deposited into the Capital Projects Fund and one- sixth shall be deposited into the Local Government Video Gaming Distributive Fund. (c) Revenues generated from the play of video gaming terminals shall be deposited by the terminal operator, who is responsible for tax payments, in a specially created, separate bank account maintained by the video gaming terminal operator to allow for electronic fund transfers of moneys for tax payment. (d) Each licensed establishment, licensed truck stop establishment, licensed fraternal establishment, and licensed veterans establishment shall maintain an adequate video gaming fund, with the amount to be determined by the Board. (e) The State's percentage of net terminal income shall be reported and remitted to the Board within 15 days after the 15th day of each month and within 15 days after the end of each month by the video terminal operator. A video terminal operator who falsely reports or fails to report the amount due required by this Section is guilty of a Class 4 felony and is subject to termination of his or her license by the Board. Each video terminal operator shall keep a record of net terminal income in such form as the Board may require. All payments not remitted when due shall be paid together with a penalty assessment on the unpaid balance at a rate of 1.5% per month. (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.) (230 ILCS 40/65) Sec. 65. Fees. A non-home rule unit of government may not impose any fee for the operation of a video gaming terminal in http://ilga.gov/legislation/ilcs/ilcs4.asp?DocName=023000400HArt%2E+5&ActID=3095&...3/5/2018 230 ILCS 40/ Video Gaming Act.Page 14of 16 excess of $25 per year. (Source: P.A. 96-34, eff. 7-13-09.) (230 ILCS 40/70) Sec. 70. Referendum. Upon the filing in the office of the clerk, at least 90 days before an election in any municipality or county, as the case may be, of a petition directed to such clerk, containing the signatures of not less than 25% of the legal voters of that municipality or county, the clerk shall certify such proposition to the proper election officials, who shall submit the proposition at such election to the voters of such municipality or county. The proposition shall be in the following form: -------------------------------------------------------------- Shall video gaming YES be prohibited in ----------------------- .................? NO -------------------------------------------------------------- If a majority of the voters voting upon such last mentioned proposition in any municipality or county vote "YES", such video gaming shall be prohibited in such municipality or county. The petition mentioned in this Section shall be a public document and shall be subject to inspection by the public. (Source: P.A. 96-34, eff. 7-13-09.) (230 ILCS 40/75) Sec. 75. Revenue sharing; Local Government Video Gaming Distributive Fund. (a) As soon as may be after the first day of each month, the Department of Revenue shall allocate among those municipalities and counties of this State that have not prohibited video gaming pursuant to Section 27 or Section 70 the amount available in the Local Government Video Gaming Distributive Fund, a special fund in the State Treasury, as provided in Section 60. The Department shall then certify such allocations to the State Comptroller, who shall pay over to those eligible municipalities and counties the respective amounts allocated to them. The amount of such funds allocable to each such municipality and county shall be in proportion to the tax revenue generated from video gaming within the eligible municipality or county compared to the tax revenue generated from video gaming Statewide. (b) The amounts allocated and paid to a municipality or county of this State pursuant to the provisions of this Section may be used for any general corporate purpose authorized for that municipality or county. (c) Upon determination by the Department that an amount has been paid pursuant to this Section in excess of the amount to which the county or municipality receiving such payment was entitled, the county or municipality shall, upon demand by the Department, repay such amount. If such repayment is not made within a reasonable time, the Department shall withhold from future payments an amount equal to such overpayment. The Department shall redistribute the amount of such payment to the county or municipality entitled thereto. (Source: P.A. 96-34, eff. 7-13-09.) (230 ILCS 40/78) Sec. 78. Authority of the Illinois Gaming Board. http://ilga.gov/legislation/ilcs/ilcs4.asp?DocName=023000400HArt%2E+5&ActID=3095&...3/5/2018 230 ILCS 40/ Video Gaming Act.Page 15of 16 (a) The Board shall have jurisdiction over and shall supervise all gaming operations governed by this Act. The Board shall have all powers necessary and proper to fully and effectively execute the provisions of this Act, including, but not limited to, the following: (1) To investigate applicants and determine the eligibility of applicants for licenses and to select among competing applicants the applicants which best serve the interests of the citizens of Illinois. (2) To have jurisdiction and supervision over all video gaming operations in this State and all persons in establishments where video gaming operations are conducted. (3) To adopt rules for the purpose of administering the provisions of this Act and to prescribe rules, regulations, and conditions under which all video gaming in the State shall be conducted. Such rules and regulations are to provide for the prevention of practices detrimental to the public interest and for the best interests of video gaming, including rules and regulations (i) regarding the inspection of such establishments and the review of any permits or licenses necessary to operate an establishment under any laws or regulations applicable to establishments, (ii) to impose penalties for violations of this Act and its rules, and (iii) establishing standards for advertising video gaming. (b) The Board shall adopt emergency rules to administer this Act in accordance with Section 5-45 of the Illinois Administrative Procedure Act. For the purposes of the Illinois Administrative Procedure Act, the General Assembly finds that the adoption of rules to implement this Act is deemed an emergency and necessary to the public interest, safety, and welfare. (Source: P.A. 98-31, eff. 6-24-13.) (230 ILCS 40/79) Sec. 79. Investigators. Investigators appointed by the Board pursuant to the powers conferred upon the Board by paragraph (20.6) of subsection (c) of Section 5 of the Riverboat Gambling Act and Section 80 of this Act shall have authority to conduct investigations, searches, seizures, arrests, and other duties imposed under this Act and the Riverboat Gambling Act, as deemed necessary by the Board. These investigators have and may exercise all of the rights and powers of peace officers, provided that these powers shall be (1) limited to offenses or violations occurring or committed in connection with conduct subject to this Act, including, but not limited to, the manufacture, distribution, supply, operation, placement, service, maintenance, or play of video gaming terminals and the distribution of profits and collection of revenues resulting from such play, and (2) exercised, to the fullest extent practicable, in cooperation with the local police department of the applicable municipality or, if these powers are exercised outside the boundaries of an incorporated municipality or within a municipality that does not have its own police department, in cooperation with the police department whose jurisdiction encompasses the applicable locality. (Source: P.A. 97-809, eff. 7-13-12.) http://ilga.gov/legislation/ilcs/ilcs4.asp?DocName=023000400HArt%2E+5&ActID=3095&...3/5/2018 230 ILCS 40/ Video Gaming Act.Page 16of 16 (230 ILCS 40/80) Sec. 80. Applicability of Illinois Riverboat Gambling Act. The provisions of the Illinois Riverboat Gambling Act, and all rules promulgated thereunder, shall apply to the Video Gaming Act, except where there is a conflict between the 2 Acts. All provisions of the Uniform Penalty and Interest Act shall apply, as far as practicable, to the subject matter of this Act to the same extent as if such provisions were included herein. (Source: P.A. 96-37, eff. 7-13-09.) (230 ILCS 40/85) Sec. 85. Severability. The provisions of the Video Gaming Act are severable pursuant to Section 1.31 of the Statute on Statutes. (Source: P.A. 96-37, eff. 7-13-09; P.A. 96-38, eff. 7-13-09.) http://ilga.gov/legislation/ilcs/ilcs4.asp?DocName=023000400HArt%2E+5&ActID=3095&...3/5/2018