Bill Text: IL SB3313 | 2023-2024 | 103rd General Assembly | Introduced


Bill Title: Amends the Video Gaming Act. Prohibits a terminal operator from entering into a use agreement or other agreement that purports to control the placement or operation of video gaming terminals with the owner or operator of a video gaming location if a direct or indirect owner or person with significant interest or control of the terminal operator or any affiliated entity is an immediate family member of either (i) a direct or indirect owner of the video gaming location or any affiliated entity or (ii) a person with significant interest or control of the video gaming location or any affiliated entity. Prohibits a terminal operator from entering into a use agreement or other agreement that purports to control the placement or operation of video gaming terminals with an owner or operator of a video gaming location if any or all of the real estate upon which the video gaming location is located is owned entirely or in part by the terminal operator, an affiliated entity of the terminal operator, a person with significant interest or control of the terminal operator, or an immediate family member of any person with significant interest or control of the terminal operator. Provides that no person may solicit from a video gaming location a use agreement or other agreement that purports to control the placement or operation of video gaming terminals on behalf of a terminal operator if that person is an immediate family member of (i) a direct or indirect owner of the video gaming location or (ii) a person with significant interest or control of the video gaming location. Specifies that certain classes of people may not hold multiple classes of licenses. Defines the terms "licensed video gaming establishment", "video gaming location", and "person with significant interest or control". Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-03-15 - Rule 3-9(a) / Re-referred to Assignments [SB3313 Detail]

Download: Illinois-2023-SB3313-Introduced.html

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3313

Introduced 2/7/2024, by Sen. Bill Cunningham

SYNOPSIS AS INTRODUCED:
230 ILCS 40/5
230 ILCS 40/25
230 ILCS 40/30

Amends the Video Gaming Act. Prohibits a terminal operator from entering into a use agreement or other agreement that purports to control the placement or operation of video gaming terminals with the owner or operator of a video gaming location if a direct or indirect owner or person with significant interest or control of the terminal operator or any affiliated entity is an immediate family member of either (i) a direct or indirect owner of the video gaming location or any affiliated entity or (ii) a person with significant interest or control of the video gaming location or any affiliated entity. Prohibits a terminal operator from entering into a use agreement or other agreement that purports to control the placement or operation of video gaming terminals with an owner or operator of a video gaming location if any or all of the real estate upon which the video gaming location is located is owned entirely or in part by the terminal operator, an affiliated entity of the terminal operator, a person with significant interest or control of the terminal operator, or an immediate family member of any person with significant interest or control of the terminal operator. Provides that no person may solicit from a video gaming location a use agreement or other agreement that purports to control the placement or operation of video gaming terminals on behalf of a terminal operator if that person is an immediate family member of (i) a direct or indirect owner of the video gaming location or (ii) a person with significant interest or control of the video gaming location. Specifies that certain classes of people may not hold multiple classes of licenses. Defines the terms "licensed video gaming establishment", "video gaming location", and "person with significant interest or control". Effective immediately.
LRB103 39235 JDS 69387 b

A BILL FOR

SB3313LRB103 39235 JDS 69387 b
1 AN ACT concerning gaming.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Video Gaming Act is amended by changing
5Sections 5, 25, and 30 as follows:
6 (230 ILCS 40/5)
7 Sec. 5. Definitions. As used in this Act:
8 "Board" means the Illinois Gaming Board.
9 "Credit" means one, 5, 10, or 25 cents either won or
10purchased by a player.
11 "Distributor" means an individual, partnership,
12corporation, or limited liability company licensed under this
13Act to buy, sell, lease, or distribute video gaming terminals
14or major components or parts of video gaming terminals to or
15from terminal operators.
16 "Electronic card" means a card purchased from a licensed
17establishment, licensed fraternal establishment, licensed
18veterans establishment, licensed truck stop establishment, or
19licensed large truck stop establishment for use in that
20establishment as a substitute for cash in the conduct of
21gaming on a video gaming terminal.
22 "Electronic voucher" means a voucher printed by an
23electronic video game machine that is redeemable in the

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1licensed establishment for which it was issued.
2 "In-location bonus jackpot" means one or more video gaming
3terminals at a single licensed establishment that allows for
4wagers placed on such video gaming terminals to contribute to
5a cumulative maximum jackpot of up to $10,000.
6 "Terminal operator" means an individual, partnership,
7corporation, or limited liability company that is licensed
8under this Act and that owns, services, and maintains video
9gaming terminals for placement in licensed establishments,
10licensed truck stop establishments, licensed large truck stop
11establishments, licensed fraternal establishments, or licensed
12veterans establishments.
13 "Licensed technician" means an individual who is licensed
14under this Act to repair, service, and maintain video gaming
15terminals.
16 "Licensed terminal handler" means a person, including but
17not limited to an employee or independent contractor working
18for a manufacturer, distributor, supplier, technician, or
19terminal operator, who is licensed under this Act to possess
20or control a video gaming terminal or to have access to the
21inner workings of a video gaming terminal. A licensed terminal
22handler does not include an individual, partnership,
23corporation, or limited liability company defined as a
24manufacturer, distributor, supplier, technician, or terminal
25operator under this Act.
26 "Manufacturer" means an individual, partnership,

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1corporation, or limited liability company that is licensed
2under this Act and that manufactures or assembles video gaming
3terminals.
4 "Supplier" means an individual, partnership, corporation,
5or limited liability company that is licensed under this Act
6to supply major components or parts to video gaming terminals
7to licensed terminal operators.
8 "Net terminal income" means money put into a video gaming
9terminal minus credits paid out to players.
10 "Video gaming terminal" means any electronic video game
11machine that, upon insertion of cash, electronic cards or
12vouchers, or any combination thereof, is available to play or
13simulate the play of a video game, including but not limited to
14video poker, line up, and blackjack, as authorized by the
15Board utilizing a video display and microprocessors in which
16the player may receive free games or credits that can be
17redeemed for cash. The term does not include a machine that
18directly dispenses coins, cash, or tokens or is for amusement
19purposes only.
20 "Licensed establishment" means any licensed retail
21establishment where alcoholic liquor is drawn, poured, mixed,
22or otherwise served for consumption on the premises, whether
23the establishment operates on a nonprofit or for-profit basis.
24"Licensed establishment" includes any such establishment that
25has a contractual relationship with an inter-track wagering
26location licensee licensed under the Illinois Horse Racing Act

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1of 1975, provided any contractual relationship shall not
2include any transfer or offer of revenue from the operation of
3video gaming under this Act to any licensee licensed under the
4Illinois Horse Racing Act of 1975. Provided, however, that the
5licensed establishment that has such a contractual
6relationship with an inter-track wagering location licensee
7may not, itself, be (i) an inter-track wagering location
8licensee, (ii) the corporate parent or subsidiary of any
9licensee licensed under the Illinois Horse Racing Act of 1975,
10or (iii) the corporate subsidiary of a corporation that is
11also the corporate parent or subsidiary of any licensee
12licensed under the Illinois Horse Racing Act of 1975.
13"Licensed establishment" does not include a facility operated
14by an organization licensee, an inter-track wagering licensee,
15or an inter-track wagering location licensee licensed under
16the Illinois Horse Racing Act of 1975 or a riverboat licensed
17under the Illinois Gambling Act, except as provided in this
18paragraph. The changes made to this definition by Public Act
1998-587 are declarative of existing law.
20 "Licensed fraternal establishment" means the location
21where a qualified fraternal organization that derives its
22charter from a national fraternal organization regularly
23meets.
24 "Licensed veterans establishment" means the location where
25a qualified veterans organization that derives its charter
26from a national veterans organization regularly meets.

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1 "Licensed truck stop establishment" means a facility (i)
2that is at least a 3-acre facility with a convenience store,
3(ii) with separate diesel islands for fueling commercial motor
4vehicles, (iii) that sells at retail more than 10,000 gallons
5of diesel or biodiesel fuel per month, and (iv) with parking
6spaces for commercial motor vehicles. "Commercial motor
7vehicles" has the same meaning as defined in Section 18b-101
8of the Illinois Vehicle Code. The requirement of item (iii) of
9this paragraph may be met by showing that estimated future
10sales or past sales average at least 10,000 gallons per month.
11 "Licensed large truck stop establishment" means a facility
12located within 3 road miles from a freeway interchange, as
13measured in accordance with the Department of Transportation's
14rules regarding the criteria for the installation of business
15signs: (i) that is at least a 3-acre facility with a
16convenience store, (ii) with separate diesel islands for
17fueling commercial motor vehicles, (iii) that sells at retail
18more than 50,000 gallons of diesel or biodiesel fuel per
19month, and (iv) with parking spaces for commercial motor
20vehicles. "Commercial motor vehicles" has the same meaning as
21defined in Section 18b-101 of the Illinois Vehicle Code. The
22requirement of item (iii) of this paragraph may be met by
23showing that estimated future sales or past sales average at
24least 50,000 gallons per month.
25 "Sales agent and broker" means an individual, partnership,
26corporation, limited liability company, or other business

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1entity engaged in the solicitation or receipt of business from
2current or potential licensed establishments, licensed
3fraternal establishments, licensed veterans establishments,
4licensed truck stop establishments, or licensed large truck
5stop establishments either on an employment or contractual
6basis.
7 "Licensed video gaming establishment" means a licensed
8establishment, a licensed fraternal establishment, a licensed
9veterans establishment, a licensed truck stop establishment,
10or a licensed large truck stop establishment.
11 "Video gaming location" means a licensed video gaming
12establishment, a location for which a person has applied for a
13license under the Act, or a location that is reasonably
14believed by a terminal operator or sales agent and broker to be
15a location for which a person will apply for a license under
16the Act.
17 "Person with significant interest or control" includes,
18but is not limited to, the following:
19 (1) a person in whose name a liquor license is
20 maintained for a licensed video gaming location;
21 (2) a person who directly owns a video gaming
22 location;
23 (3) a person who holds at least a 5% indirect
24 ownership interest in a video gaming location;
25 (4) a person who, in the opinion of the Board, has the
26 ability to influence or control the activities of the

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1 owner or operator of a video gaming location or to elect a
2 majority of its board of directors, other than a bank or
3 other licensed lending institution that holds a mortgage
4 or other lien, or any other source of funds, acquired in
5 the ordinary course of business;
6 (5) a person having the power to exercise significant
7 influence or control over decisions concerning any part of
8 a video gaming operation;
9 (6) a person or business entity receiving any net
10 terminal income under a contractual agreement;
11 (7) a person or business entity holding an option
12 agreement to acquire an equity stake in a terminal
13 operator;
14 (8) a person employed or designated by a terminal
15 operator as a progressive jackpot coordinator; or
16 (9) a person that has entered into a franchise
17 agreement, a licensing agreement, an intellectual property
18 agreement, or an other substantially similar agreement
19 with the owner or operator of a video gaming location or
20 its parent as a franchisor or equivalent if the video
21 gaming location obtains more than 50% of the video gaming
22 location's revenue from net terminal income.
23(Source: P.A. 101-31, eff. 6-28-19; 102-689, eff. 12-17-21.)
24 (230 ILCS 40/25)
25 Sec. 25. Restriction of licensees.

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1 (a) Manufacturer. A person may not be licensed as a
2manufacturer of a video gaming terminal in Illinois unless the
3person has a valid manufacturer's license issued under this
4Act. A manufacturer may only sell video gaming terminals for
5use in Illinois to persons having a valid distributor's
6license.
7 (b) Distributor. A person may not sell, distribute, or
8lease or market a video gaming terminal in Illinois unless the
9person has a valid distributor's license issued under this
10Act. A distributor may only sell video gaming terminals for
11use in Illinois to persons having a valid distributor's or
12terminal operator's license.
13 (c) Terminal operator. A person may not own, maintain, or
14place a video gaming terminal unless he has a valid terminal
15operator's license issued under this Act. A terminal operator
16may only place video gaming terminals for use in Illinois in
17licensed establishments, licensed truck stop establishments,
18licensed large truck stop establishments, licensed fraternal
19establishments, and licensed veterans establishments. No
20terminal operator may give anything of value, including but
21not limited to a loan or financing arrangement, to a licensed
22establishment, licensed truck stop establishment, licensed
23large truck stop establishment, licensed fraternal
24establishment, or licensed veterans establishment as any
25incentive or inducement to locate video terminals in that
26establishment. Of the after-tax profits from a video gaming

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1terminal, 50% shall be paid to the terminal operator and 50%
2shall be paid to the licensed establishment, licensed truck
3stop establishment, licensed large truck stop establishment,
4licensed fraternal establishment, or licensed veterans
5establishment, notwithstanding any agreement to the contrary.
6A video terminal operator that violates one or more
7requirements of this subsection is guilty of a Class 4 felony
8and is subject to termination of his or her license by the
9Board.
10 (d) Licensed technician. A person may not service,
11maintain, or repair a video gaming terminal in this State
12unless he or she (1) has a valid technician's license issued
13under this Act, (2) is a terminal operator, or (3) is employed
14by a terminal operator, distributor, or manufacturer.
15 (d-5) Licensed terminal handler. No person, including, but
16not limited to, an employee or independent contractor working
17for a manufacturer, distributor, supplier, technician, or
18terminal operator licensed pursuant to this Act, shall have
19possession or control of a video gaming terminal, or access to
20the inner workings of a video gaming terminal, unless that
21person possesses a valid terminal handler's license issued
22under this Act.
23 (d-10) Solicitation of use agreements. A person may not
24solicit the signing of a use agreement on behalf of a terminal
25operator or enter into a use agreement as agent of a terminal
26operator unless that person either has a valid sales agent and

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1broker license issued under this Act or owns, manages, or
2significantly influences or controls the terminal operator.
3 (d-15) Use agreement restrictions. No terminal operator
4may enter into a use agreement or other agreement that
5purports to control the placement or operation of video gaming
6terminals with the owner or operator of a video gaming
7location if a direct or indirect owner or person with
8significant interest or control of the terminal operator or
9any affiliated entity is an immediate family member of either
10(i) a direct or indirect owner of the video gaming location or
11any affiliated entity or (ii) a person with significant
12interest or control of the video gaming location or any
13affiliated entity. No terminal operator may enter into a use
14agreement or other agreement that purports to control the
15placement or operation of video gaming terminals with an owner
16or operator of a video gaming location if any or all of the
17real estate upon which the video gaming location is located is
18owned entirely or in part by the terminal operator, an
19affiliated entity of the terminal operator, a person with
20significant interest or control of the terminal operator, or
21an immediate family member of any person with significant
22interest or control of the terminal operator. No person may
23solicit from a video gaming location a use agreement or other
24agreement that purports to control the placement or operation
25of video gaming terminals on behalf of a terminal operator if
26that person is an immediate family member of (i) a direct or

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1indirect owner of the video gaming location or (ii) a person
2with significant interest or control of the video gaming
3location. The prohibitions in this subsection (d-15) apply to
4all use agreements entered into on or after the effective date
5of this amendatory Act of the 103rd General Assembly.
6Beginning one year after the effective date of this amendatory
7Act of the 103rd General Assembly, any use agreement that was
8entered into before the effective date of the amendatory Act
9that would otherwise be prohibited by this subsection (d-15)
10is void.
11 (e) Licensed establishment. No video gaming terminal may
12be placed in any licensed establishment, licensed veterans
13establishment, licensed truck stop establishment, licensed
14large truck stop establishment, or licensed fraternal
15establishment unless the owner or agent of the owner of the
16licensed establishment, licensed veterans establishment,
17licensed truck stop establishment, licensed large truck stop
18establishment, or licensed fraternal establishment has entered
19into a written use agreement with the terminal operator for
20placement of the terminals. A copy of the use agreement shall
21be on file in the terminal operator's place of business and
22available for inspection by individuals authorized by the
23Board. A licensed establishment, licensed truck stop
24establishment, licensed veterans establishment, or licensed
25fraternal establishment may operate up to 6 video gaming
26terminals on its premises at any time. A licensed large truck

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1stop establishment may operate up to 10 video gaming terminals
2on its premises at any time.
3 (f) (Blank).
4 (g) Financial interest restrictions. As used in this Act,
5"substantial interest" in a partnership, a corporation, an
6organization, an association, a business, or a limited
7liability company means:
8 (A) When, with respect to a sole proprietorship, an
9 individual or his or her spouse owns, operates, manages,
10 or conducts, directly or indirectly, the organization,
11 association, or business, or any part thereof; or
12 (B) When, with respect to a partnership, the
13 individual or his or her spouse shares in any of the
14 profits, or potential profits, of the partnership
15 activities; or
16 (C) When, with respect to a corporation, an individual
17 or his or her spouse is an officer or director, or the
18 individual or his or her spouse is a holder, directly or
19 beneficially, of 5% or more of any class of stock of the
20 corporation; or
21 (D) When, with respect to an organization not covered
22 in (A), (B) or (C) above, an individual or his or her
23 spouse is an officer or manages the business affairs, or
24 the individual or his or her spouse is the owner of or
25 otherwise controls 10% or more of the assets of the
26 organization; or

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1 (E) When an individual or his or her spouse furnishes
2 5% or more of the capital, whether in cash, goods, or
3 services, for the operation of any business, association,
4 or organization during any calendar year; or
5 (F) When, with respect to a limited liability company,
6 an individual or his or her spouse is a member, or the
7 individual or his or her spouse is a holder, directly or
8 beneficially, of 5% or more of the membership interest of
9 the limited liability company.
10 For purposes of this subsection (g), "individual" includes
11all individuals or their spouses whose combined interest would
12qualify as a substantial interest under this subsection (g)
13and whose activities with respect to an organization,
14association, or business are so closely aligned or coordinated
15as to constitute the activities of a single entity.
16 (h) Location restriction. A licensed establishment,
17licensed truck stop establishment, licensed large truck stop
18establishment, licensed fraternal establishment, or licensed
19veterans establishment that is (i) located within 1,000 feet
20of a facility operated by an organization licensee licensed
21under the Illinois Horse Racing Act of 1975 or the home dock of
22a riverboat licensed under the Illinois Gambling Act or (ii)
23located within 100 feet of a school or a place of worship under
24the Religious Corporation Act, is ineligible to operate a
25video gaming terminal. The location restrictions in this
26subsection (h) do not apply if (A) a facility operated by an

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1organization licensee, a school, or a place of worship moves
2to or is established within the restricted area after a
3licensed establishment, licensed truck stop establishment,
4licensed large truck stop establishment, licensed fraternal
5establishment, or licensed veterans establishment becomes
6licensed under this Act or (B) a school or place of worship
7moves to or is established within the restricted area after a
8licensed establishment, licensed truck stop establishment,
9licensed large truck stop establishment, licensed fraternal
10establishment, or licensed veterans establishment obtains its
11original liquor license. For the purpose of this subsection,
12"school" means an elementary or secondary public school, or an
13elementary or secondary private school registered with or
14recognized by the State Board of Education.
15 Notwithstanding the provisions of this subsection (h), the
16Board may waive the requirement that a licensed establishment,
17licensed truck stop establishment, licensed large truck stop
18establishment, licensed fraternal establishment, or licensed
19veterans establishment not be located within 1,000 feet from a
20facility operated by an organization licensee licensed under
21the Illinois Horse Racing Act of 1975 or the home dock of a
22riverboat licensed under the Illinois Gambling Act. The Board
23shall not grant such waiver if there is any common ownership or
24control, shared business activity, or contractual arrangement
25of any type between the establishment and the organization
26licensee or owners licensee of a riverboat. The Board shall

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1adopt rules to implement the provisions of this paragraph.
2 (h-5) Restrictions on licenses in malls. The Board shall
3not grant an application to become a licensed video gaming
4location if the Board determines that granting the application
5would more likely than not cause a terminal operator,
6individually or in combination with other terminal operators,
7licensed video gaming location, or other person or entity, to
8operate the video gaming terminals in 2 or more licensed video
9gaming locations as a single video gaming operation.
10 (1) In making determinations under this subsection
11 (h-5), factors to be considered by the Board shall
12 include, but not be limited to, the following:
13 (A) the physical aspects of the location;
14 (B) the ownership, control, or management of the
15 location;
16 (C) any arrangements, understandings, or
17 agreements, written or otherwise, among or involving
18 any persons or entities that involve the conducting of
19 any video gaming business or the sharing of costs or
20 revenues; and
21 (D) the manner in which any terminal operator or
22 other related entity markets, advertises, or otherwise
23 describes any location or locations to any other
24 person or entity or to the public.
25 (2) The Board shall presume, subject to rebuttal, that
26 the granting of an application to become a licensed video

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1 gaming location within a mall will cause a terminal
2 operator, individually or in combination with other
3 persons or entities, to operate the video gaming terminals
4 in 2 or more licensed video gaming locations as a single
5 video gaming operation if the Board determines that
6 granting the license would create a local concentration of
7 licensed video gaming locations.
8 For the purposes of this subsection (h-5):
9 "Mall" means a building, or adjoining or connected
10buildings, containing 4 or more separate locations.
11 "Video gaming operation" means the conducting of video
12gaming and all related activities.
13 "Location" means a space within a mall containing a
14separate business, a place for a separate business, or a place
15subject to a separate leasing arrangement by the mall owner.
16 "Licensed video gaming location" means a licensed
17establishment, licensed fraternal establishment, licensed
18veterans establishment, licensed truck stop establishment, or
19licensed large truck stop.
20 "Local concentration of licensed video gaming locations"
21means that the combined number of licensed video gaming
22locations within a mall exceed half of the separate locations
23within the mall.
24 (i) Undue economic concentration. In addition to
25considering all other requirements under this Act, in deciding
26whether to approve the operation of video gaming terminals by

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1a terminal operator in a location, the Board shall consider
2the impact of any economic concentration of such operation of
3video gaming terminals. The Board shall not allow a terminal
4operator to operate video gaming terminals if the Board
5determines such operation will result in undue economic
6concentration. For purposes of this Section, "undue economic
7concentration" means that a terminal operator would have such
8actual or potential influence over video gaming terminals in
9Illinois as to:
10 (1) substantially impede or suppress competition among
11 terminal operators;
12 (2) adversely impact the economic stability of the
13 video gaming industry in Illinois; or
14 (3) negatively impact the purposes of the Video Gaming
15 Act.
16 The Board shall adopt rules concerning undue economic
17concentration with respect to the operation of video gaming
18terminals in Illinois. The rules shall include, but not be
19limited to, (i) limitations on the number of video gaming
20terminals operated by any terminal operator within a defined
21geographic radius and (ii) guidelines on the discontinuation
22of operation of any such video gaming terminals the Board
23determines will cause undue economic concentration.
24 (j) The provisions of the Illinois Antitrust Act are fully
25and equally applicable to the activities of any licensee under
26this Act.

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1(Source: P.A. 101-31, eff. 6-28-19; 102-689, eff. 12-17-21.)
2 (230 ILCS 40/30)
3 Sec. 30. Multiple types of licenses prohibited.
4 (a) A video gaming terminal manufacturer may not be
5licensed as a video gaming terminal operator or own, manage,
6or control a licensed establishment, licensed truck stop
7establishment, licensed large truck stop establishment,
8licensed fraternal establishment, or licensed veterans
9establishment, and shall be licensed to sell only to persons
10having a valid distributor's license or, if the manufacturer
11also holds a valid distributor's license, to sell, distribute,
12lease, or market to persons having a valid terminal operator's
13license.
14 (b) A video gaming terminal distributor may not be
15licensed as a video gaming terminal operator or own, manage,
16or control a licensed establishment, licensed truck stop
17establishment, licensed large truck stop establishment,
18licensed fraternal establishment, or licensed veterans
19establishment, and shall only contract with a licensed
20terminal operator.
21 (c) A video gaming terminal operator, a direct or indirect
22owner of a terminal operator, a person with significant
23interest or control of a terminal operator, or any person who
24is employed by or otherwise receives fees for service from a
25terminal operator shall may not:

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1 (1) hold direct or indirect ownership of a video
2 gaming location;
3 (2) hold direct or indirect ownership of an affiliated
4 entity of a video gaming location;
5 (3) be a person with significant interest or control
6 of a video gaming location;
7 (4) be employed by or otherwise receive fees for
8 service from a video gaming location;
9 (5) be employed by or own or operate an affiliated
10 entity of a video gaming location; or
11 (6) be licensed as a video gaming terminal
12 manufacturer or distributor or own, manage, or control a
13 licensed establishment, licensed truck stop establishment,
14 licensed large truck stop establishment, licensed
15 fraternal establishment, or licensed veterans
16 establishment, and shall be licensed only to contract with
17 licensed distributors and licensed establishments,
18 licensed truck stop establishments, licensed large truck
19 stop establishments, licensed fraternal establishments,
20 and licensed veterans establishments.
21 (d) A video gaming location operator, a direct or indirect
22owner of a video gaming location, a person with significant
23interest or control of a video gaming location, or a person who
24is employed by or otherwise receives fees for service from a
25video gaming location shall contract with a licensed operator
26only to place and service equipment and shall not: An owner or

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1manager of a licensed establishment, licensed truck stop
2establishment, licensed large truck stop establishment,
3licensed fraternal establishment, or licensed veterans
4establishment may not
5 (1) be a licensed terminal handler, a licensed
6 technician, or a licensed sales agent and broker;
7 (2) be licensed as a video gaming terminal
8 manufacturer, distributor, or operator,
9 (3) hold direct or indirect ownership of a terminal
10 operator or a sales agent and broker;
11 (4) hold direct or indirect ownership of an affiliated
12 entity of either a terminal operator or a sales agent and
13 broker;
14 (5) be a person with significant interest or control
15 of either a terminal operator or a sales agent and broker;
16 (6) be employed by or otherwise receive fees for
17 service from either a terminal operator or a sales agent
18 and broker; or
19 (7) be employed by or own or operate an affiliated
20 entity of either a terminal operator or a sales agent and
21 broker. and shall only contract with a licensed operator
22 to place and service this equipment.
23 (e) A licensed terminal handler, licensed technician, or
24sales agent and broker shall may not:
25 (1) hold direct or indirect ownership of a video
26 gaming location;

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1 (2) hold direct or indirect ownership of an affiliated
2 entity of a video gaming location;
3 (3) be a person with significant interest or control
4 of a video gaming location;
5 (4) be employed by or otherwise receive fees for
6 service from a video gaming location;
7 (5) be employed by or own or operate an affiliated
8 entity of a video gaming location; or
9 (6) be licensed as a manufacturer, distributor, or
10 supplier, licensed establishment, licensed fraternal
11 establishment, licensed veterans establishment, licensed
12 truck stop establishment, or licensed large truck stop
13 establishment.
14 (f) No person shall be issued a license under this Act
15after the effective date of this amendatory Act of the 103rd
16General Assembly if the issuance of the license would cause a
17violation of this Section. Beginning one year after the
18effective date of this amendatory Act of the 103rd General
19Assembly, a license that has been issued under this Act and
20that would cause a violation of this Section shall not be
21renewed and may be revoked.
22(Source: P.A. 101-31, eff. 6-28-19; 102-689, eff. 12-17-21.)
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