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HomeMy WebLinkAboutV. COW Agenda Item Video Gaming Discussion Public Act 096-0034 HB0255 Enrolled LRB096 03503 HLH 13528 b AN ACT concerning revenue. Be it enacted by the People of the State of Illinois, represented in the General Assembly: ARTICLE 5. Section 1. Short title. This Article may be cited as the Video Gaming Act. Any references in this Article to "this Act" mean this Article. Section 5. Definitions. As used in this Act: "Board" means the Illinois Gaming Board. "Credit" means 5, 10, or 25 cents either won or purchased by a player. "Distributor" means an individual, partnership, or corporation 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. "Terminal operator" means an individual, partnership or corporation that is licensed under this Act and that owns, services, and maintains video gaming terminals for placement in licensed 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 Public Act 096-0034 HB0255 Enrolled LRB096 03503 HLH 13528 b terminals. "Manufacturer" means an individual, partnership, or corporation that is licensed under this Act and that manufactures or assembles video gaming terminals. "Supplier" means an individual, partnership, or corporation 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, is available to play or simulate the play of a video game, including but not limited to video poker, line up, and blackjack, 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. "Licensed establishment" does not include a facility operated by an organization licensee, an intertrack wagering licensee, or an intertrack wagering location licensee licensed under the Illinois Horse Racing Act of 1975 or a riverboat licensed under Public Act 096-0034 HB0255 Enrolled LRB096 03503 HLH 13528 b the Riverboat Gambling Act. "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 that is at least a 3-acre facility with a convenience store and with separate diesel islands for fueling commercial motor vehicles and parking spaces for commercial motor vehicles as defined in Section 18b-l0l of the Illinois Vehicle Code. Section 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. The Board may utilize the services of an independent outside testing laboratory for the examination of video gaming machines and associated equipment as required by this Section. 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. Public Act 096-0034 HB0255 Enrolled LRB096 03503 HLH 13528 b (2) It must theoretically payout a mathematically demonstrable percentage during the expected lifetime of the machine of all amounts played, which must not be less than 80%. 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 available, bets placed, credits paid, and credits cashed Public Act 096-0034 HB0255 Enrolled LRB096 03503 HLH 13528 b 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. (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. (14) It shall have accounting software that keeps an electronic record which includes, but is not limited to, Public Act 096-0034 HB0255 Enrolled LRB096 03503 HLH 13528 b the following: total cash inserted into the video gaming terminal; the value of winning tickets claimed by players; the total credits played; and the total credits awarded by a video gaming terminal. (15) It shall be linked by a central communications system to provide auditing program information as approved by the Board. 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) It shall be able to receive and broadcast amber alert messages. Section 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 Public Act 096-0034 HB0255 Enrolled LRB096 03503 HLH 13528 b 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 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. Section 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, Public Act 096-0034 HB0255 Enrolled LRB096 03503 HLH 13528 b 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 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. No terminal operator may own or have a substantial interest in more than 5% of the video gaming terminals licensed in this State. (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. (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 Public Act 096-0034 HB0255 Enrolled LRB096 03503 HLH 13528 b 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, unless the Board authorizes a greater number. (f) Residency requirement. Each licensed distributor and terminal operator must be an Illinois resident. However, if an out of state distributor or terminal operator has performed its respective business wi thin 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. (g) Financial interest restrictions. As used in this Act, "substantial interest" in a partnership, a corporation, an organization, an association, or a business 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 Public Act 096-0034 HB0255 Enrolled LRB096 03503 HLH 13528 b (C) When, with respect to a corporation, an individual or his or her spouse is an officer or director, or the individual or his or her spouse is a holder, directly or beneficially, of 5% or more of any class of stock of the corporation; or (D) When, with respect to an organization not covered in (A), (B) or (C) above, an individual or his or her spouse is an officer or manages the business affairs, or the individual or his or her spouse is the owner of or otherwise controls 10% or more of the assets of the organization; or (E) When an individual or his or her spouse furnishes 5% or more of the capital, whether in cash, goods, or services, for the operation of any business, association, or organization during any calendar year. (h) Location restriction. A licensed establishment, licensed truck stop establishment, licensed fraternal establishment, or licensed veterans establishment that is located within 1,000 feet of a facility operated by an organizational licensee, an intertrack wagering licensee, or an intertrack wagering location licensee licensed under the Illinois Horse Racing Act of 1975, the home dock of a riverboat licensed under the Riverboat Gambling Act, a school, or a place of worship under the Religious Corporation Act is ineligible to operate a video gaming terminal. Public Act 096-0034 HB0255 Enrolled LRB096 03503 HLH 13528 b Section 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. Section 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 only to sell to distributors. 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 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 Public Act 096-0034 HB0255 Enrolled LRB096 03503 HLH 13528 b 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. Section 35. Display of license; confiscation; violation as felony. 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 1961. 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 1961. Any license Public Act 096-0034 HB0255 Enrolled LRB096 03503 HLH 13528 b 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 credi ts 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. 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 1961. The provisions of this Section do not apply to devices or electronic video game terminals licensed pursuant to this Act. Section 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 playa video gaming terminal. Any licensee who knowingly permits a person under the age of 21 years to use or playa video gaming terminal is guilty of a business offense and shall be fined an amount not to exceed $5,000. Public Act 096-0034 HB0255 Enrolled LRB096 03503 HLH 13528 b Section 45. Issuance of license. (a) The burden is upon each applicant to demonstrate his sui tabili ty for licensure. Each video gaming terminal manufacturer, distributor, supplier, operator, 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. (b) 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 (c) (Blank). (d) Each licensed distributor, terminal operator, or person with a substantial interest in a distributor or terminal operator must have resided in Illinois for at least 24 months prior to application unless he or she has performed his or her respective business in Illinois for at least 48 months prior to the effective date of this Act. The Board shall establish an annual fee for each license Public Act 096-0034 HB0255 Enrolled LRB096 03503 HLH 13528 b not to exceed the following: (1) Manufacturer ............................ $10,000 (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 Section 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 to 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. Section 55. Precondition for all cases of application for a licensed establishment. licensed establishment, In to Public Act 096-0034 HB0255 Enrolled LRB096 03503 HLH 13528 b operate a video gaming terminal, each licensed truck stop 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. Section 57. Insurance. Each licensed establishment, licensed truck stop establishment, licensed fraternal establishment, and licensed veterans establishment shall maintain insurance on any gaming device on its premises in an amount set by the Board. Section 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. Section 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 Public Act 096-0034 HB0255 Enrolled LRB096 03503 HLH 13528 b 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. Section 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. Section 70. Referendum. Upon the filing in the office of the clerk, at least 90 days before an election in any municipali ty or county, as the case may be, of a petition directed to such clerk, containing the signatures of not less than 25% of the legal voters of that municipality or county, the clerk shall certify such proposition to the proper election officials, who shall submit the proposition at such election to the voters of such municipality or county. The proposition shall be in the following form: Public Act 096-0034 HB0255 Enrolled LRB096 03503 HLH 13528 b Shall video gaming be prohibited in YES . . . . . . . . . . . . . . . . . ? NO If a majority of the voters voting upon such last mentioned proposi tion 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. Section 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 Public Act 096-0034 HB0255 Enrolled LRB096 03503 HLH 13528 b 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. ARTICLE 800. Section 801. Short title. This Article may be cited as the Capital Spending Accountability Law. Section 805. Reports on capital spending. On the first day of each quarterly period in each fiscal year, the Governor's Office of Management and Budget shall provide to the Comptroller, the Treasurer, the President and the Minority Leader of the Senate, and the Speaker and the Minority Leader of the House of Representatives a report on the status of all Video Gaming Possibilities As of September 4, 2009 * TypeEstablishmentAddressWithin 1000 feet P-1Balzano Liquors2316 South Elmhurst Road P-1Gold Eagle Liquors1721 West Golf Road P-1Jay Liquors1728 West Dempster Street P-1RMS Liquors1714 East Kensington Road P-1Mount Prospect Liquors16 North Main Street P-2Osco Drug Store #3476333-335 East Euclid P-2Costco Wholesale Corporation999 North Elmhurst Road P-2CVS Pharmacy1002 South Busse Rd. P-2Dominick's Finer Foods, LLC1042 South Elmhurst Road P-2Fiesta Market1902 South Elmhurst Road P-2Garden Fresh-Mount Prospect Inc.1145 Mt. Prospect Plaza P-2Wal-Mart Store # 1684930 E. Mount Prospect Plaza P-3Aldi, Inc. #66730 East Rand Road F-1Artemis Restaurant912 South Busse RoadNo F-1Chungkiwa Restaurant1658 W. Algonquin Rd.No F-1Cuisine of India2348 South Elmhurst RoadNo F-1Fellini Restaurant1729 West Golf RoadNo F-1House of SzechwanTen North MainNo F-1Izakaya Sankyu1176 South Elmhurst RoadNo F-1Las Islaas Marias1784 W. GolfNo F-1LePeep CaféTen East Northwest HighwayYes F-1Little America299 West Central RoadNo F-1New Pusan Restaurant 1144 South Elmhurst RoadNo F-1Sakura Restaurant105 South MainYes F-1Torishin Restaurant1584 South Busse RoadNo F-1Taqueria Los Arcos1707 West Algonquin RoadNo F-2Arnie Salerno's Pizzeria1716 East Kensington RoadYes F-2Avanti Café & Sandwich Bar1900 South Elmhurst RoadNo F-2Frankie's Fast Foods720 East Rand RoadYes F-2Mr. Beef & Pizza1796 South Elmhurst RoadNo F-2Pad Thai Restaurant2310 South Elmhurst RoadNo F-2Photo's Hot Dogs1706 East Kensington RoadYes F-2Tortas Locas1839 W. Algonquin RoadNo F-3Blues Bar2 West BusseYes F-3Bogie's Ale House303 East Kensington No F-3Buffalo Wild Wings Grill and Bar301 East Euclid AvenueNo F-3Café Boulevard143 W. Prospect Yes F-3Canta Napoli90 East BusseYes F-3Dae Jang Kum Korean Restaurant1747 W. Golf RoadNo F-3Edith's Place1064 Mount Prospect PlazaNo F-3El Sombrero Restaurant1100 South Elmhurst RoadNo F-3Jake's Pizza & Pub302 West Northwest HighwayNo F-3Jameson's Charhouse1702 West Algonquin RoadNo F-3Kampai Japanese Steak House2330 South Elmhurst RoadNo F-3Marisqueria Flamingos Seafood Restaurant1590 South Busse RoadNo F-3Michael's Steaks and Seafood113 South Emerson StreetYes F-3Mrs. P & Me100 East Prospect AvenueYes F-3Pap's Grill & Bar1904 South Elmhurst RoadNo F-3Retro Bistro1746 West Golf RoadNo F-3Rokudenashi Restaurant1750 West Golf RoadNo (over) Video Gaming Possibilities As of September 4, 2009 F-3Sam's Place 15 West Prospect AvenueYes F-3Wu Sung Restaurant1747-49 West AlgonquinNo F-4Prospect Moose Lodge #660601 North Main StreetNo F-5Bristol Court Banquets828 East Rand RoadNo F-5Crystal Banquets4050 Birchwood Yes F-5Victoria in the Park1700 S. ElmhurstNo F-6Mount Prospect Park District600 See-GwunNo F-6Prospect Heigts Park District700 W. Rand RoadNo S-2Brunswick Zone-Mount Prospect824 East Rand RoadNo S-3Moretti's1799 South Busse RoadNo S-3Ye Olde Town Inn18 West Busse AvenueYes S-4Vino 100110 S. EmersonYes S-5Nina Restaurant1730 West Golf RoadNo Package goods not qualified within 1000' ft.not qualified * Does not take into account proximity of liquor establishment to churches, schools, etc. i n adjacent Municipatities. (over) Village of Mount Prospect Estimate of Video Poker Revenue August 2009 (1 ) Actual Louisiana Data 20% Reduction Factor 20% Increase Factor Net Device Revenue Generated $ 213,188,379 $ 170,550,703 $ 255,826,055 Number of Machines Reported 6,629 6,629 6,629 Average Net Revenue per Machine $ 32,160 $ 25,728 $ 38,592 Illinois Tax Rate 30% 30% 30% Average Tax Generated by Machine Annually $ 9,648 $ 7,718 $ 11,578 Municipal portion of taxes generated 16.67% 16.67% 16.67% Municipal Tax per machine anticipated $ 1,608 $ 1,286 $ 1,930 Current Legislation (HB 255) limits placement to 5 (machines per establishment) Number of Eligible Establishements (according to geographic location) 37 Total Potential Establishments 37 Number of Machines per Establishment 5 Total Potential Machines 185 Revenue Estimate per Machine (equals 87% of $1,608 above) 1,400 Machines Placed 50% 67% 75% Number of Machines 93 124 139 Total Estimated Village Revenue 129,500 173,530 194,250 (1) Data taken from June 2008 Year to Date Totals from the Louisiana State Police Video Gaming Division Revenue Report. Amounts are July 2007-June 2008 revenues from that report. Note: Illinois' Legislation per HB 255 appears to be very similar to Louisiana's Video Poker Law. Many provisions are identical or very nearly so. Note 2: All assumptions/Calculations and data taken from provisions of Senate Amendment 1 to House Bill 255. Buffalo Grove model-prior to rules being adopted. Village Board may approve devices on a case by case basis. ORDINANCE NO. _____ AN ORDINANCE CONCERNING THE ILLINOIS VIDEO GAMING ACT Preamble WHEREAS, the Village of Mount Prospect is a home rule unit by virtue of the Illinois Constitution of 1970; and WHEREAS, Public Act 96-34 (House Bill 255) created the Illinois Video Gaming Act, as further amended by Public Act 96-37 (House Bill 2424) and Public Act 96-38 (Senate Bill 349) (collectively “Acts”) all of which were approved on July 13, 2009; and WHEREAS, the Acts do not preempt home rule powers; WHEREAS, the Acts, although effective upon approval, are subject to a rulemaking process to be undertaken by the Illinois Gaming Board (“Gaming Board”); and WHEREAS, the Acts mandate that the Board develop and adopt emergency rulemaking within sixty (60) days of July 13, 2009 for the purpose of implementing the provisions of the Acts; and WHEREAS, despite the rulemaking mandate, the Chairman of the Gaming Board has publicly indicated that it may take as long as 18 months to implement a rulemaking process; and WHEREAS, in the interim, and in the absence of rulemaking adopted by the Board, the Village of Mount Prospect desires that no video gaming terminal, as that term is also defined in the Acts, be installed anywhere within the Village without prior Village approval. NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS, acting pursuant to their home rule powers, as follows: SECTION 1: The Preamble is made a part of this ordinance. SECTION 2: No video gaming terminals shall be installed within the Village of Mount Prospect without the prior approval of the Village. The Village’s review of any request to install video gaming terminals, absent adopted rulemaking of the Gaming Board, will be based upon the Village Board’s interpretation of the legislative intent and language of the Acts. Buffalo Grove model-prior to rules being adopted. Village Board may approve devices on a case by case basis. SECTION 3: The intent of this Ordinance, in the absence of final rules by the Gaming Board, is to permit the Village to regulate any and all requests for the installation of video gaming terminals. SECTION 4: The Village reserves the right to adopt an ordinance, completely prohibiting video gaming within the corporate limits of the Village of Mount Prospect, as set forth in Section 27-Prohibition of Video Gaming by Political Subdivision of Public Act 96-34 (House Bill 255). SECTION 5: This Ordinance shall be in full force and effect from and after its passage, approval and publication as required by law. SECTION 6: The Village Clerk is hereby ordered to publish this Ordinance in pamphlet form, such pamphlets to be available to the general public at the Village Clerk’s office. AYES: NAYS: ABSENT: PASSED and APPROVED this _____________ day of _____________, 2009. ______________________ Irvana K. Wilks Mayor ATTEST: ____________________ M. Lisa Angell Village Clerk Prohibition until Village Board recognizes standards for placement and use ORDINANCE NO. _____ AN ORDINANCE CONCERNING THE ILLINOIS VIDEO GAMING ACT Preamble WHEREAS, the Village of Mount Prospect is a home rule unit by virtue of the Illinois Constitution of 1970; and WHEREAS, Public Act 96-34 (House Bill 255) created the Illinois Video Gaming Act, as further amended by Public Act 96-37 (House Bill 2424) and Public Act 96-38 (Senate Bill 349) (collectively “Acts”) all of which were approved on July 13, 2009; and WHEREAS, the Acts do not preempt home rule powers; WHEREAS, the Acts, although effective upon approval, are subject to a rulemaking process to be undertaken by the Illinois Gaming Board (“Gaming Board”); and WHEREAS, the Acts mandate that the Board develop and adopt emergency rulemaking within sixty (60) days of July 13, 2009 for the purpose of implementing the provisions of the Acts; and WHEREAS, despite the rulemaking mandate, the Chairman of the Gaming Board has publicly indicated that it may take as long as 18 months to implement a rulemaking process; and WHEREAS, in the interim, and in the absence of rulemaking adopted by the Board, the Village of Mount Prospect desires that no video gaming terminal, as that term is also defined in the Acts, be installed anywhere within the Village. NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS, acting pursuant to their home rule powers, as follows: SECTION 1: The Preamble is made a part of this ordinance. SECTION 2: No video gaming terminals shall be installed within the Village until such time as the Village, by Ordinance, either adopts its own standards for video gaming or adopts the rules promulgated by the Gaming Board.. Prohibition until Village Board recognizes standards for placement and use SECTION 3: The Village reserves the right to adopt an ordinance, completely prohibiting video gaming within the corporate limits of the Village of Mount Prospect, as set forth in Section 27-Prohibition of Video Gaming by Political Subdivision of Public Act 96-34 (House Bill 255). SECTION 4: This Ordinance shall be in full force and effect from and after its passage, approval and publication as required by law. SECTION 5: The Village Clerk is hereby ordered to publish this Ordinance in pamphlet form, such pamphlets to be available to the general public at the Village Clerk’s office. AYES: NAYS: ABSENT: PASSED and APPROVED this _____________ day of _____________, 2009. ______________________ Irvana K. Wilks Mayor ATTEST: ____________________ M. Lisa Angell Village Clerk Complete Prohibition ORDINANCE NO. _____ AN ORDINANCE PROHIBITING VIDEO GAMING WITHIN THE VILLAGE OF MOUNT PROSPECT, ILLINOIS WHEREAS , the Video Gaming Act (230 ILCS 40/1 et seq.; PA 96-0034) became law July 13, 2009 and allows licensed retail establishments to conduct video gambling; and WHEREAS , the Village President and Board of Trustees of the Village of Mount Prospect commend the General Assembly and Governor for addressing the critical need for investment in roads and infrastructure in the State of Illinois and for providing flexibility in terms of the implementation of video poker; and WHEREAS, recognizing that some Illinois local jurisdictions would desire to prohibit video gambling, Section 27 of the Video Gaming Act permits counties and municipalities to prohibit video gaming by ordinance within their respective corporate limits or unincorporated areas; and WHEREAS , states such as Georgia, South Carolina and North Carolina have abandoned experiments with the legalization of video poker because of regulatory difficulties, corruption, and the high social costs associated with this form of gambling; and WHEREAS , electronic gaming is designed to entice people to play longer, faster and at higher rates of wagering, according to a study by the Massachusetts Institute of Technology; and WHEREAS , the Village President and Board of Trustees of this Village agree that legalized video poker would present a variety of adverse impacts on residents of the Village including the potential for corruption, impact on the costs of law enforcement, regulatory difficulties and high social costs; and WHEREAS, the legalization of video poker within the Village is not consistent with our desire to maintain a family-friendly environment for citizens and their children. NOW, THEREFORE, BE IT ORDAINED that the President and Board of Trustees of the Village of Mount Prospect, Cook County, Illinois, acting pursuant to its home rule powers, as follows: SECTION 1: The Village of Mount Prospect exercises its right, under Section 27 of the Illinois Video Gaming Act (230 ILCS 40/1 et seq.), to prohibit video gaming within the Village of Mount Prospect effective immediately. 240333_1 Complete Prohibition SECTION 2: A new Section 25.503.1 shall be added to Chapter 23 entitled “Offenses and Miscellaneous Regulations“, Article V entitled “Gambling” of the Mount Prospect Village Code as follows: Sec. 23.503.1 VIDEO GAMING PROHIBITED. Video gaming, as that term is defined in the Illinois Video Gaming Act (230 ILCS 40/1 et seq. is prohibited. A video gaming license issued by the State of Illinois is not effective within the Village of Mount Prospect. SECTION 3: This Ordinance shall be in full force and effect from and after its passage, approval and publication as required by law. SECTION 4: The Village Clerk is hereby ordered to publish this Ordinance in pamphlet form, such pamphlets to be available to the general public at the Village Clerk’s office. AYES: NAYS: ABSENT: PASSED and APPROVED this _____________ day of _____________, 2009. ______________________ Irvana K. Wilks Mayor ATTEST: ____________________ M. Lisa Angell Village Clerk 240333_1