HomeMy WebLinkAbout3. Video Gaming Terminal Discussion 06/09/2015Village of Mount Prospect
Mount Prospect, Illinois
INTEROFFICE MEMORANDUM
TO: DAVID STRAHL, ACTING VILLAGE MANAGER
FROM: ALEX BERTOLUCCI, ADMINISTRATIVE ANALYST
DATE: JUNE 5, 2015
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 (Act) was signed into law in 2009. At the September 8, 2009
Committee of the Whole meeting the Village Board (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 require the owner of the licensed VGT establishment, or his agent, to
enter into a written use agreement with the Terminal Operator (owner of the terminals)
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
$2.00 and the maximum cash award for a single hand is $500. Additionally, the value of
Video Gaming Terminal Discussion
June 5, 2015
Page 2
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 for terminal
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 years of age
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 get up to a $25,000 fine and subject to up to 3 years in jail.
The SGB 2014 annual report states that there were 41 disciplinary complaints issued
against video gaming licenses for conduct in violation of the Act and Rules. Discipline has
ranged from the revocation of licenses to the imposition of fines. Additionally, the SGB
investigates persons with financial or institutional ties to video gaming applicants and
licensees. For reference, the total number of licensed establishments within the state was
4,675 in December 2014.
For additional information regarding the Act, VGTs and municipal licensing authority please
review Attachment A - Video Gaming FAQ.
Municipalities and Video Gaming
Most of the Village's neighboring communities exclude video gaming as 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.
Table 1: Surrounding Communities that Prohibit Video Gaming as of April 2015
Arlington Heights (Ord.)
Northbrook (Opt-Out/Ord.)
Rolling Meadows - (Ord.)
Buffalo Grove (Ord.)
Palatine — (Ord.)
Schaumburg (Ord.)
Des Plaines (Ord.)
Park Ridge (Opt -Out)
Skokie (Ord.)
Glenview (Opt-Out/Ord.)
Note: Listed municipalities are Village comparable communities.
Video Gaming Terminal Discussion
June 5, 2015
Page 3
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, the Village of Schiller Park had a referendum in
March 2014 which 66% or 401 voted "Yes" and ultimately resulted in the approval of video
gaming within the community. Table 2 lists the surrounding communities that permit video
gaming. It also references the number of establishments and VGTs in each municipality.
Table 2: Surrounding Communities that Permit Video Gaming as
of April 2015
Bartlett (9-39)
Hoffman Estates* (16-79)
Schiller Park (8-32)
Elk Grove* (18-77)
Morton Grove (9-45)
Streamwood (5-25)
Hanover Park (5-25)
Prospect Heights (9-45)
Wheeling* (11-46)
(#Est. - #VGTs) = Total number of licensed establishments - Total
number of VGTs in municipality as of April 2015.
* = Listed municipality is Village Comparable
Note: These nine communities were used to compute revenue
averages.
One concern with allowing video gaming is the potential of new issues that Police
Departments would be called on to address. Police Chief Janowick surveyed his colleagues
in these 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
June 5, 2015
Page 4
Figure 1 - Video Gaming Revenue Distribution
MunlcIpall Share
1/6th or 16.67%
Establishment
359E
Taxes
34%
VGT Operator
359E
b. -
State
State Sha
5/6th or 83.,339E
At the time of the Board's previous discussions on video gaming actual VGT revenue data
was limited. Estimates for potential new municipal revenue ranged from $130,000 to
$400,000 annually. Today, the SGB has VGT wagering and income data available from
2012 to April 2015 and the following estimates are based on the state's data from the nine
communities listed in Table 2.
• In 2014, the total average municipal revenue was $84,912, state revenue was
$424,561, and total average revenue received by VGT operators and licensed
establishments totaled $1.2 million.
• Since 2012 Wheeling has collected a total of $193,864, Elk Grove collected a total of
$205,105, and Hoffman Estates collected a total of $305,885.
• For every one VGT placed in a municipality, the annual average municipal revenue
received is $1,280, the state revenue is $6,400, and $17,920 would be split by the
VGT operator and the licensed establishment.
• The revenue tabulation from the nine communities in Table 2 is provided as
Attachment B.
In addition to tax revenues, 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 the nine local communities that permit video
gaming. Home rule municipalities license fees are unrestricted per the Act, but amounts
Video Gaming Terminal Discussion
June 5, 2015
Page 5
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.
Table 3 - Municipal Video Gaming
Licensing Fees
# of
2014
Municipality
Annual License Fee
Establish-
VGT
Fee
Notes:
ments
Count
Totals
Bartlett
$25 per terminal
10
41
$1,025
$17,00
Elk Grove*
$1,000 per establishment
17
73
0
$500 Initial Fee
$12,50
Hanover Park
$500 per terminal
5
25
0
Hoffman Estates*
$100 per terminal
17
84
$8,400
$10,50
Morton Grove
$250 per terminal
9
42
0
Non -Home Rule
Prospect Heights
$25 per terminal
8
40
$1,000
Fee limited to $25
$25,00
Schiller Park
$1,000 per terminal
7
25
0
Streamwood
$150 per terminal
4
20
$3,000
Developed specific
$42,00
Liquor Licenses for VGT
Wheeling*
1 $1,000 per terminal
1 10
1 42
1 0
establishments.
* = Listed municipality is Village Comparable
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
or place of worship. Mount Prospect has 48 liquor license holders eligible to be a VGT
licensed establishment and the complete list is provided as Attachment C. These 48
license holders only include F -Class and S -Class classifications, because Package Liquor
stores are not eligible for a video gaming license.
2015 Mount Prospect Public Survey
Online surveys were conducted during the 2009 and 2012 video gaming discussions. The
purpose was to gauge public opinion on allowing video gaming in the Village. In
preparation for the June 9 Committee of the Whole discussion the online video gaming
survey was refreshed and reissued. The survey was opened on May 13, 2015 and
collected responses through June 1, 2015. The survey was posted on the Village's
website, Facebook and Twitter pages. Also, a letter was sent to all 48 eligible liquor license
holders inviting them to participate in the survey and notifying them of the upcoming
Committee of the Whole discussion. Additionally, local newspapers publicized the survey's
Video Gaming Terminal Discussion
June 5, 2015
Page 6
availability.
The survey had a total response count of 546.
This response count is significant and Table 4
places it in context of the 2009 and 2012 video
gaming surveys. For further comparison, the July
2011- Flood Event Damage Assessment online
survey received 664 responses and the 2013
Police Department Citizen Survey received 398
completed surveys. The 2015 Video Gaming
Survey provided respondents with a new answer
option to allow non-resident stakeholders with an
opportunity to identify their responses. Survey
design limited responses to one per computer.
In the previous surveys a majority (over 60%) of
respondents voted they would not be in favor of
Table 4 - Number of Respondents per
Video Gaming Survey
Survey Year
2009
2012
2015
Response Count
Resident
163
57
498
Business
9
7
16
Non -Resident
n/a
n/a
41
/Business Patron
Total
170
62
546
*The sum of response counts is greater than
total count, because survey design allowed
for multiple responses (i.e. business owner
who is also a resident).
allowing video gaming in the Village. Public opinion did not change when presented with
the scenario that if surrounding communities allowed video gaming, it would potentially put
eligible Mount Prospect businesses at a competitive disadvantage. The 2015 survey
results reflect a substantial shift in public opinion. Respondents are now overwhelmingly
(about 90%) in support of allowing video gaming in the Village. Table 5 shows how
respondents have responded to the question of allowing video gaming in the three video
gaming surveys conducted. The same survey questions were used in all three surveys.
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Table 5 - Survey Response to the Question, "Would you favor
the Village allowing video gaming in eligible establishments?"
2009 2012 2015
■ Yes
■ No
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June 5, 2015
Page 7
The 2015 survey shows a higher than average response rate and a theoretical major shift
in public opinion. The 2009 and 2012 surveys required residents to submit an address and
in the 2015 survey this question was optional. The 2015 survey responses were sorted to
extract data from only respondents that submitted an address. This process reduced total
response count from 546 to 425 and still showed the theoretical major shift in public option.
The percentage in favor of the Village allowing video gaming reduced from 90% to 85%.
Subsequently, the sample was further filtered to exclude non-residents that provided an
address and the percentage in favor of the Village allowing video gaming was again about
85%.
Attachment D includes a complete summary of the 2015 survey results with comments.
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.
Alex Bertolucci
Administrative Analyst
Attachment A —Video Gaming FAQ
Attachment B — Video Gaming Revenues Tabulation
Attachment C — Video Gaming Establishment Possibilities
Attachment D — Survey Results
Attachment E — 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 Ɠƚ
violationsregardingalcoholicbeveragesthatresultsinsuspensionorrevocationof
anyliquorlicenseheldbyorassociatedwithalicensedvideogaminglocation.
Additionally,alicensedvideogaminglocationistopromptlyreporttotheState
liquorlicenseheldbythe
Administratoranyactiontakenonorrelatedtoany
licensedvideogaminglocation.
Q.IsalicensetheonlyrequirementtohaveaVGT?
A.No.TheActalsorequiresthattheowneroftheestablishment,orhisagent,must
enterintoawrittenuseagreementwiththeterminaloperatorregardingthe
placementandmaintenanceoftheterminals.Thisagreementmustbekeptonfile
bytheownerandavailablefortheStateGaming.ƚğƩķƭinspection.
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,
ƌźƨǒƚƩƌźĭĻƓƭĻŅƚƩƷŷĻĻƭƷğĬƌźƭŷƒĻƓƷ
confiscatedanddestroyed.Inaddition,ƷŷĻƭƷğƷĻ
ƭŷğƌƌĬĻźƒƒĻķźğƷĻƌǤƩĻǝƚƉĻķ 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
{ǤĭğƒƚƩĻƭregulations,avideogamingcafecouldnotlikelyopenbecausethe
definitionofaͻĬğƩͼrequiresthat80%ofthegrosssalesmustbefromalcoholic
liquor.
Similar,GraniteCity,IllinoishaslimitedvideogamingtoClassAliquorlicenses,
whichislimitedtobarswherehalfthesalesarealcohol.
Incontrast,thecurrentliquorregulationsinHoffmanEstatesdonotallowbarsor
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
ĻƭƷğĬƌźƭŷƒĻƓƷƭliquorlicense.
Q.WhatistheprocessfortheVillagetoinstitutevideogaming?
A.TheVillagewouldpassanordinancemodifyingtheVillagecodetoallowforgaming.
Thenewordinanceonceadoptedwouldthenbesentbyfax(312)8144602ormail
itto:
IllinoisGamingBoard
LegalCounsel
JamesPellum
160NorthLaSalleSuite300
ChicagoIllinois60601
7of7
Attachment B —Video Gaming Revenues Tabulation
1of3
Calendar
Year
# of
Establish
ments
VGT
Count
VGT Wagering Activity
Amount Played Amount Won
"Total Bet in VGT" "VGT Winnings"
Net Wagering
Activity
"Gamblers'
Losses"
Bartlett
As of April 2015
2012
2
9
$ 783,177.69
$
723,844.63
$ 59,333.06
2013 6 22 $ 9,579,652.70
$ 8,881,131.48
$ 698,521.22
2014 10 41 $ 21,961,189.58
$ 20,303,308.49
$ 1,657,881.09
2015 9 39 $ 10,604,406.85
$ 9,757,030.49
$ 847,376.36
Total
Elk Grove Village
Comparable
As of April 2015
2012
No Revenue Results
2013 4 19 $ 3,712,966.56 $ 3,426,013.11 $
286,953.45
2014 17 73 $ 29,042,916.10 $ 26,669,627.48 $
2,373,288.62
2015 18 77 $ 18,011,838.69 $ 16,570,177.63 $
1,441,661.06
Hanover Park
As of April 2015
2012
No Revenue Results
2013 4 20 $ 2,185,280.02 $ 2,002,467.93 $
182,812.09
2014 5 25 $ 17,735,269.32 $ 16,311,936.30 $
1,423,333.02
2015 5 25 $ 9,114,406.38 $ 8,374,493.14 $
739,913.24
Total
Hoffman Estates
Comparable
As of April 2015
2012
1
5
$ 951,730.73
$
877,253.41
$ 74,477.32
2013 6 29 $ 14,082,587.65 $ 12,963,347.46 $
1,119,240.19
2014 17 84 $ 39,653,855.38 $ 36,364,708.38 $
3,289,147.00
2015 16 79 $ 20,334,496.83 $ 18,699,732.76 $
1,634,764.07
Total
Morton Grove
As of April 2015
2012
2
10
$ 1,302,532.73
$
1,210,548.58
$ 91,984.15
2013 6 28 $ 11,919,901.19 $ 11,045,086.31 $
874,814.88
2014 9 42 $ 30,460,589.01 $ 28,170,802.47 $
2,289,786.54
2015 9 45 $ 15,305,108.96 $ 14,132,210.70 $
1,172,898.26
Total
Prospect Heights
As of April 2015
2012
No Revenue Results
2013 4 18 $ 3,877,297.89 $ 3,535,418.23 $
341,879.66
2014 8 40 $ 16,017,168.51 $ 14,744,700.59 $
1,272,467.92
2015 9 45 $ 9,135,204.34 $ 8,420,300.76 $
714,903.58
Total
Schiller Park
As of April 2015
2012
No Revenue Results
2013 No Revenue Results
2014 7 25 $ 4,176,569.34 $ 3,801,775.03 $
374,794.31
2015 8 32 $ 3,495,693.82 $ 3,187,018.29 $
308,675.53
Total
Streamwood
As of April 2015
2012
No Revenue Results
2013 1 5 $ 108,965.74 $ 99,468.65 $
9,497.09
2014 4 20 $ 5,540,638.47 $ 5,076,896.36 $
463,742.11
2015 5 25 $ 5,319,237.64 $ 4,893,610.53 $
425,627.11
Total
Wheeling
Comparable
As of April 2015
2012
No Revenue Results
2013 5 18 $ 9,242,944.33 $ 8,552,783.56 $
690,160.77
2014 10 42 $ 26,806,540.13 $ 24,667,349.40 $
2,139,190.73
2015 11 46 $ 12,754,225.94 $ 11,706,297.71 $
1,047,928.23
Total
1of3
Attachment B —Video Gaming Revenues Tabulation
2of3
Calendarp
Year
Funds In
"Actual Money
Gamblers Spends"
VGT Income
Funds Out
"Actual Money
Gamblers Wins"
Net Total Income
"Gamblers' Losses"
Bartlett
As of April 2015
2012
$ 197,704.00
$
138,370.94
$
59,333.06
2013 $ 2,485,993.00 $ 1,787,471.73 $
698,521.27
2014 $ 6,189,797.00 $ 4,531,915.85 $
1,657,881.15
2015 $ 3,100,359.00 $ 2,252,982.17 $
847,376.83
Total $
3,263,112.31
Elk Grove Village
Comparable
As of April 2015
2012
2013 $ 954,239.00 $ 667,285.32 $
286,953.68
2014 $ 8,296,218.00 $ 5,922,737.65 $
2,373,480.35
2015 $ 5,183,958.00 $ 3,742,307.47 $
1,441,650.53
$
4,102,084.56
Hanover Park
As of April 2015
2012
2013 $ 656,281.00 $ 473,426.49 $
182,854.51
2014 $ 5,117,593.00 $ 3,694,203.48 $
1,423,389.52
2015 $ 2,667,453.00 $ 1,927,539.76 $
739,913.24
Total $
2,346,157.27
Hoffman Estates
Comparable
As of April 2015
2012
$ 255,519.00
$
181,021.28
$
74,497.72
2013 $ 3,837,361.00 $ 2,718,120.79 $
1,119,240.21
2014 $ 11,294,425.00 $ 8,005,262.19 $
3,289,162.81
2015 $ 5,797,576.00 $ 4,162,800.48 $
1,634,775.52
Total $
6,117,676.26
Morton Grove
As of April 2015
2012
$ 334,667.00
$
252,682.85
$
91,984.15
2013 $ 3,327,668.00 $ 2,452,853.12 $
874,814.88
2014 $ 7,932,276.00 $ 5,642,422.87 $
2,289,853.13
2015 $ 3,956,674.00 $ 2,783,736.40 $
1,172,937.60
Total $
4,429,589.76
Prospect Heights
As of April 2015
2012
2013 $ 1,275,708.00 $ 933,828.02 $
341,879.88
2014 $ 4,799,321.00 $ 3,526,833.04 $
1,272,487.96
2015 $ 2,661,004.00 $ 1,946,100.45 $
714,903.55
Total $
2,329,271.39
Schiller Park
As of April 2015
2012
2013
2014 $ 1,355,029.00 $ 980,114.08 $
374,914.92
2015 $ 1,079,781.00 $ 771,226.08 $
308,554.92
Total $
683,469.84
Streamwood
As of April 2015
2012
2013 $ 30,502.00 $ 21,502.91 $
9,497.09
2014 $ 1,722,425.00 $ 1,258,682.59 $
463,742.41
2015 $ 1,518,553.00 $ 1,092,926.07 $
425,626.93
Total $
898,866.43
Wheeling
Comparable
As of April 2015
2012
2013 $ 2,809,349.00 $ 2,119,188.18 $
690,160.82
2014 $ 7,913,986.00 $ 5,774,795.25 $
2,139,190.75
2015 $ 3,771,521.00 $ 2,723,592.77 $
1,047,928.23
Total $
3,877,279.80
2of3
Attachment B —Video Gaming Revenues Tabulation
Bartlett
As of April 2015
Elk Grove Village
Comparable
As of April 2015
Hanover Park
As of April 2015
Hoffman Estates
Comparable
As of April 2015
Morton Grove
As of April 2015
Prospect Heights
As of April 2015
Schiller Park
As of April 2015
Streamwood
As of April 2015
Wheeling
Comparable
As of April 2015
VGT Tax Distribution 11
Calendar
Year
Net Total Income Tax
Rate (30%)
"Tax on Gamblers'
Losses"
State Share of Tax
Municipality Share
of Tax
Remaining 70 % of Net
Total Income
" Establishment and
VGT Operator
Revenues"
2012
$ 17,799.95
$
14,833.29
$
2,966.66
$
41,533.11
2013
$ 209,556.76
$
174,630.65
$
34,926.11
$
488,964.51
2014
$ 497,367.54
$
414,473.06
$
82,894.48
$
1,160,513.61
2015
$ 254,214.63
$
211,845.55
$
42,369.08
$
593,162.20
Total
$ 978,938.88
$
815,782.55
$
163,156.33
$
2,284,173.43
2012
$
-
2013
$ 86,086.22
$
71,738.52
$
14,347.70
$
200,867.46
2014
$ 712,051.28
$
593,376.22
$
118,675.06
$
1,661,429.07
2015
$ 432,497.70
$
360,414.79
$
72,082.91
$
1,009,152.83
$ 1,230,635.20
$
1,025,529.53
$
205,105.67
$
2,871,449.36
2012
$
$
-
127,998.08
2013 $ 54,856.43 $ 45,713.73 $ 9,142.70
2014
$ 427,019.64
$
355,849.83
$
71,169.81
$
996,369.88
2015
$ 221,974.76
$
184,979.01
$
36,995.75
$
517,938.48
Total
$ 703,850.83
$
586,542.57
$
117,308.26
$
1,642,306.44
2012
$ 22,349.37
$
18,624.48
$
3,724.89
$
52,148.35
2013
$ 335,772.33
$
279,810.31
$
55,962.02
$
783,467.88
2014
$ 986,755.94
$
822,296.87
$
164,459.07
$
2,302,406.87
2015
$ 490,435.33
$
408,696.21
$
81,739.12
$
1,144,340.19
Total
$ 1,835,312.97
$
1,529,427.87
$
305,885.10
$
4,282,363.29
2012
$ 27,595.28
$
22,996.07
$
4,599.21
$
64,388.87
2013
$ 262,444.72
$
218,703.90
$
43,740.82
$
612,370.16
2014
$ 686,960.22
$
572,467.10
$
114,493.12
$
1,602,892.91
2015
$ 351,883.38
$
293,236.17
$
58,647.21
$
821,054.22
Total
$ 1,328,883.60
$
1,107,403.24
$
221,480.36
$
3,100,706.16
2012
$
-
2013
$ 102,564.12
$
85,470.11
$
17,094.01
$
239,315.76
2014
$ 381,750.79
$
318,125.73
$
63,625.06
$
890,737.17
2015
$ 214,472.48
$
178,727.09
$
35,745.39
$
500,431.07
Total
$ 698,787.39
$
582,322.93
$
116,464.46
$
1,630,484.00
2012
$
2013
$
2014
$ 112,476.31
$
93,730.38
$
18,745.93
$
262,438.61
2015
$ 92,567.54
$
77,139.65
$
15,427.89
$
215,987.38
Total
$ 205,043.85
$
170,870.03
$
34,173.82
$
478,425.99
2012
$
2013
$ 2,849.13
$
2,374.28
$
474.85
$
6,647.96
2014
$ 139,123.56
$
115,936.35
$
23,187.21
$
324,618.85
2015
$ 127,689.16
$
106,407.62
$
21,281.54
$
297,937.77
Total
$ 269,661.85
$
224,718.25
$
44,943.60
$
629,204.58
2012
$
-
2013
$ 207,048.38
$
172,540.30
$
34,508.08
$
483,112.44
2014
$ 641,760.83
$
534,800.82
$
106,960.01
$
1,497,429.92
2015
$ 314,379.90
$
261,983.31
$
52,396.59
$
733,548.33
Total I
$ 1,163,189.11
$
969,324.43
$
193,864.68
$
2,714,090.69
3of3
AttachmentCΑVideoGamingEstablishmentPossibilities
Locatedwithin100feetofaschoolorplaceof
worship
ClassEstablishmentAddress
F1ChipolteMexicanGrill102E.KensingtonRoadNo
F1ChungKiwaRestaurant1658W.AlgonquinRd.No
F1IzakayaSankyu1176SouthElmhurstRoadNo
F1LePeepCafé10E.NorthwestHighwayNo
F1LosArcos(Fadadias4)1707W.AlgonquinNo
F1MiRestaurant1742E.KensingtonNo
1144SouthElmhurstRoadNo
F1NewPusanRestaurant
F2ArnieSalerno'sPizzeria1716EastKensingtonRoadNo
F2AvantiCafé&SandwichBar1900SouthElmhurstRoadNo
F2Frankie'sFastFoods720EastRandRoadNo
F2Mr.Beef&Pizza1796SouthElmhurstRoadNo
F2PeiWeiAsianDiner1021N.ElmhurstRdNo
F2Photo'sHotDogs1706EastKensingtonRoadNo
F2Qulinarnia1730W.GolfRoadNo
F2TortasLocas1827W.AlgonquinRoadNo
F2YupinThai1652W.AlgonquinNo
F3BalkanTaste2354S.ElmhurstRoadNo
F3BarLouie200EastRandRoadNo
F3BlackFinn157RandhurstVillageDriveNo
F3BuffaloWildWings301EastEuclidAvenueNo
F3CantaNapoliPizzeria90EastBusseNo
F3CravePizza106W.NorthwestHwyNo
Kum1747W.GolfRoadNo
F3DaeJang
F3DraftPicks912S.BusseRoadNo
F3E&O125RandhurstVillageDriveNo
F3ElSombreroRestaurant1100SouthElmhurstRoadNo
F3Emerson'sAleHouse113S.EmersonStreetNo
F3FelliniRestaurant1729WestGolfRoadNo
F3Jameson'sCharhouse1702WestAlgonquinRoadNo
F3KampaiJapaneseSteakHouse2330SouthElmhurstRoadNo
3Langostino'sNayarit1590SouthBusseRoadNo
F
F3Mia'sCantina143ProspectAvenueNo
F3MinaRestaurant1724W.GolfRoadNo
F3Mrs.P&MeRestaurant100EastProspectAvenueNo
F3NinaRestaurant1774W.GolfRoadNo
F3Pap'sUltimateGrill&Bar1904SouthElmhurstRoadNo
F3RetroBistro1746WestGolfRoadNo
F3RokudenashiRestaurant1750WestGolfRoadNo
15WestProspectAvenueNo
F3Sam'sPlace
F3Truco211RandhurstVilageDriveNo
F4ProspectMooseLodge#660601NorthMainStreetNo
F5BristolPalace828E.RandRoadNo
n1700S.ElmhurstNo
F5CrystalPalaceBanquets(EmeraldBa
F6MountProspectParkDistrict1000W.CentralNo
F6ProspectHeightsParkDistrict110CampMcDonaldRd.No
S2BrunswickZoneMountProspect824EastRandRoadNo
S3Moretti's1799S.BusseNo
S5AMCTheatreRandhurst200RandhurstVillageDriveNo
bh9ʹtğĭƉğŭĻ\[źƨǒƚƩ\[źĭĻƓƭĻ9ƭƷğĬƌźƭŷƒĻƓƷƭğƩĻƓƚƷ9ƌźŭźĬƌĻŅƚƩźķĻƚDğƒźƓŭ
Vide® Gaming Survey -allay 2015
Questi®n 1:
Attachment D - Survey Results
Would you favor allowing video gaming in eligible establishments?
Answer Options Response Response
Percent Count
Yes 89.2% 487
No 10.8% 59
Comments 18
answered question 546
skipped question 0
1 of 6
Video Gaming Survey -allay 2015
Question 1:
Attachment D - Survey Results
#
Would you favor allowing video gaming in eligible establishments?
1
Be a leader and do it. You can't generate revenue on your own merits.
2
The "cons" of gambling far outweigh the "pros".
3
Video gaming is just a polite way to say gambling. I oppose the expansion of gambling here in my home
town for two reasons: We already have a large casino quite close by in Des Plaines if people wish to
gamble. Also, gambling is so widespread on the internet, in many business establishments as video
gaming, at casinos and racetracks like Arlington Race Track. This poses a great amount of risk for people
who are addicted to gambling. I think all forms of gambling should be kept at a minimum in authorized
gambling / enterntainment establishments where people must go to gamble. Gambling addiction and
gambling has ruined many people's lives, so the less there is the better our residents' lives will be.
4
there is no net gain when all is factored in and no need to give addicts more temptation to ruin their lives
5
yes
6
Video gaming/gambling, as any other adult entertainment, has pros and cons. But I don't think that the pros
outweigh the cons in this instance. Plus, it only dilutes the gaming that other communities have created.
We'd be competing against our neighbors for an activity that can only degrade our reputation over time.
7
Video gaming has been called the crack cocaine of gambling. Do we want that in Mount Prospect?
8
Businesses that allow video gaming in surrounding communities seem seedy (Prospect Heights). I have
numerous times avoided these businesses because they do not seem family -friendly or safe after dark. 1
would never go to these places alone, I do not feel safe there.
9
people want to spend thier money, city and taxpayers benefit
10
go somewhere else
11
yes we are loosing money to other comunities that have it
12
We have high standards.
13
it's time to catch up with the real world
14
Why send customers to surrounding Villages to play?
15
1 would rather spend my money gambling in Mount Prospect than in any other city surrounding here.
16
It has grown to the point that we might as well obtain some of the revenue that other cities are generating
17,1
believe they would bring in more business for that establishment.
181
please fix the typo in this question, it should say gamBling, not gaming.
2 of 6
Video Gaming Survey - May 2015
Question 2:
Attachment D - Survey Results
Would you favor allowing video gaming in eligible establishments if surrounding
communities allowed video gaming, potentially putting eligible Mount Prospect
Answer Options Response Response
Percent Count
Yes 89.6% 489
No 10.4% 57
Comments 23
answered question 546
skipped question 0
Would you favor allowing video gaming in eligible
establishments if surrounding communities allowed
video gaming, potentially putting eligible Mount
Prospect businesses at a competitive disadvantage?
100.0% 89.6%
80.0%
60.0%
40.0%
3of6
Video Gaming Survey -May 2015
Question 2:
Attachment D - Survey Results
#
Comments
1
Everyone else is doing it. Just do it
2
HUGE disadvantage.
we do not come to mt. prospect as much anymore because surrounding suburbs have gaming and we play at
3
least 4 times a week.
This is a loaded question. Des Plaines next door has a casino, so should we in order to be competitive? The
4
answer is still NO.
I am not opposed to limited gambling (see above), but let's face it, easy access to it creates big problems for
many older lonely people who spend their pensions down at the local gaming facilities that are easy to walk
to. Our fair town should be working together with businesses to help improve their profits and boost their
clients in ways that are directly related to their businesses such as creating a "Mount Prospect Top Twenty
Business" website link that would be updated every two weeks on our city webpage to increase our resident
use of local businesses rather than adding an unrelated gambling parlor to current businesses just because
5
other cities have done this.
6
please correct "gaming" to "gambling"... they are quite different.
This question should omit "potentially putting eligible Mount Prospect businesses at a competitve
7
disadvantage," as it paints the subject in a negative light. This is far from un -biased wording in a survey.
The wording on this is confusing. MP would definitely be at a disadvantage if we didn't allow it and other
8
communities did. So I am in favor of video gaming in MP.
I am proud that our village government has resisted, as other local govts have not. Gambling may bring in tax
revenue, but with the addiction and other problems that come with it, I believe it is a net -loss to any community
9
that allows it. Keep the faith, Mt. Prospect! We don't need to do this just because other communities are.
You are putting a certain number of establishments at a extreme disadvantage due to your restrictions on this
matter. I have seen it all too often that once a business closes it's literally years before another opens in the
same location. Throwing away tax dollars that al suburbs are in need of. I think it's time for you to reexamine
10
your position on this matter. Thanks.
I'm reminded of what moms frequently say to their children to help them combat peer pressure: If all your
11
friends were jumping off a cliff to their death, would you follow?
People who want this type of entertainment would go somewhere else anyway. It is a different clientele and
12
not the average customer.
13
keep the tax money home
14
Let's keep Mt Prospect standards, even if we have to be leaders, and not followers
15
question confusing
16
Their isn't enough parking sometimes now at some of these establishments
No. But, I might be willing to reconsider if (and only if) all the surrounding communities did allow video
17
gaming, AND we determined that was having a negative impact on our finances.
18
The surrounding Villages already have video games.
The place I frequent in mount prospect is ready to close its doors after 20 years in business beacause of lack
19
of customers
20
Our Business is down because my customers go to Elk Grove now
yes, the bars are already in a disadvantage because I know customers leave to gamble in De's plainest and
21
prospect heights.
22
see No. 1 above
1231
please fix the typo in this question, it should say gamBling, not gaming.
4 of 6
Vide® Gaming Survey -May 2015
Questi®n 3:
Are you a Mount Prospect:
Answer Options
Resident
Business
Business Patron and Nonresident
Comments
Attachment D - Survey Results
Response
Response
Percent
Count
91.2%
498
2.9%
16
7.5%
41
17
answered question 546
skipped question 0
*The sum of response counts is greater than total count, because survey design allowed
for multiple responses (i.e. business owner who is also a resident).
Are you a Mount Prospect:
100.0% 91.2%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0% 2.9% 7.5%
0.0%
Resident Business Business Patron and
Nonresident
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Video Gaming Survey -alley 2015
Question 3:
Attachment D - Survey Results
#
Comments
1
Help reduce our taxes by bringing in more revenue. Get rid of deputy manager position
2
we frequent many establishments and enjoy video gaming. It would be a great advantage for business
owners and patrons!!
3
Homeowner who also grew up here.
4
Keep Mount Prospect a Family Town
5
love living here
6
Great source of tax revenue
7
this is not going to benefit me or services -only more $$$$ for the gov employees
8
Any gambling does not belong in our village.
9
We have been residents since Memorial Weekend 1978.
10
Gambling belongs in recognized, regulated and supervised casinos, not in small restaurants and bars. The
only casino gambling that makes sense should be held in attractive and impressive facilities.
11
less money I have to tax for
12
All of the small businesses that this was set up to help are struggling.
13
My tips have gone down so much I had to get second job
14
our village is losing revenue, do not raise my taxes anymore.
15
I frequent a establishment in Mount Prospect but I gamble in Elk Grove. So it's a disadvantage to the Mount
Prospect bar I frequent.
16
We already have lost much needed revenues to surrounding communities.
17
please fix typos on the mt prospect site and in this survey. video gamBling is very different from video gaming.
6of6
230 ILCS 40/ Video Gaming Act.
Page 1 of 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
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230 ILCS 40/ Video Gaming Act.
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)
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230 ILCS 40/ Video Gaming Act.
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 ILLS 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 800. 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
play history (outcome, intermediate play steps, credits
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230 ILCS 40/ Video Gaming Act.
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
gaming terminal distributor, or both, but in no event shall
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230 ILCS 40/ Video Gaming Act.
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 ILLS 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 ILLS 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
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230 ILCS 40/ Video Gaming Act.
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 50 or more of any class of
stock of the corporation; or
(D) When, with respect to an organization not covered
in (A), (B) or (C) above, an individual or his or her
spouse is an officer or manages the business affairs, or
the individual or his or her spouse is the owner of or
otherwise controls 100 or more of the assets of the
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230 ILCS 40/ Video Gaming Act.
organization; or
(E) When an individual or his or her spouse furnishes
50 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 50 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
determines such operation will result in undue economic
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230 ILCS 40/ Video Gaming Act.
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 ILLS 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 ILLS 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 ILLS 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
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230 ILCS 40/ Video Gaming Act.
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 ILLS 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.
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Page 10 of 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 ILLS 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 ILLS 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
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the corporate structure of the applicant allows, the
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 50 or more of a publicly held corporation, or
(vii) each stockholder of 50 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
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(2) Distributor................................$10,000
(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 ILLS 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 ILLS 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
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establishment is located in a municipality within a county
with a population between 8,500 and 9,000 based on the 2000
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 ILLS 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 ILLS 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 ILLS 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.)
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(230 ILLS 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
excess of $25 per year.
(Source: P.A. 96-34, eff. 7-13-09.)
(230 ILLS 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 250 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 ILLS 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.
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(Source: P.A. 96-34, eff. 7-13-09.)
(230 ILLS 40/78)
Sec. 78. Authority of the Illinois Gaming Board.
(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 ILLS 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
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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.)
(230 ILLS 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 ILLS 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.)
(230 ILCS 40/Art. 800 heading)
ARTICLE 800.
(The Capital Spending Accountability Law
is compiled at 20 ILCS 3020/)
(Source: P.A. 96-34, eff. 7-13-09.)
(230 ILCS 40/Art. 900 heading)
ARTICLE 900.
(Amendatory provisions; text omitted)
(Source: P.A. 96-34, eff. 7-13-09; text omitted.)
(230 ILCS 40/Art. 9999 heading)
ARTICLE 9999.
(Source: P.A. 96-34, eff. 7-13-09.)
(230 ILLS 40/9999)
Sec. 9999. Effective date. This Act takes effect July 1,
2009, except that the changes to Sections 15-102, 15-107, 15-
111, 15-112, 15-113, 15-306, 15-307, and 16-105 of the
Illinois Vehicle Code take effect January 1, 2010; but this
Act does not take effect at all unless House Bill 312 of the
96th General Assembly, as amended, becomes law.
(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
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