For purposes of this Part the following terms shall have the
following meanings:
"Act": The Video Gaming Act [230 ILCS 40 ].
"Adjusted gross receipts": The gross receipts less winnings
paid to wagerers. The value of expired vouchers shall be included in computing
adjusted gross receipts.
"Administrator": The chief executive officer responsible for
day-to-day operations of the Illinois Gaming Board.
"Affiliate": An "affiliate of", or person "affiliated with",
a specified person shall mean a person that directly, or indirectly through one
or more intermediaries, controls, or is controlled by, or is under common
control with, that person.
"Affiliated entity": An "affiliated entity" of a person is
any business entity that directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common control with,
the person.
"Applicant": A person applying for any license under the
Act.
"Application": All material submitted, including the
instructions, definitions, forms and other documents issued by the Illinois
Gaming Board, comprising the video gaming license application submitted to the
Illinois Gaming Board.
"Associated video gaming equipment": Ticket payout systems
and validation procedures; wireless, promotional and bonusing systems; kiosks;
gaming-related peripherals; hardware, software and systems; and other gaming
devices and equipment for compliance with:
Illinois laws, regulations and requirements as codified or
otherwise set forth; and
Board-approved video gaming industry standards.
"Attributed interest": A direct or indirect interest in an
enterprise deemed to be held by an individual not through the individual's
actual holdings but either through the holdings of the individual's relatives
or through a third party or parties on behalf of the individual pursuant to a
plan, arrangement, agreement or contract.
"Board": The Illinois Gaming Board.
"Business entity" or "Business": A partnership, incorporated
or unincorporated association or group, firm, corporation, limited liability
company, partnership for shares, trust, sole proprietorship or other business
enterprise.
"Chi-square test": A statistical test used to determine if a
relationship between variables exists by comparing expected and observed cell
frequencies. Specifically, a chi-square test examines the observed frequencies
in a category and compares them to what would be expected by chance or would be
expected if there was no relationship between variables.
"Control": The possession, direct or indirect, of power to
direct or cause the direction of the management and policies of an applicant or
licensee through the ownership of voting securities, by contract or
otherwise.
"Convenience store": A retail store that is open long hours
and sells motor fuel and a limited selection of snacks and general
goods.
"Credit": One, five, 10 or 25 cents.
"Distributor": An individual, partnership, corporation or
limited liability company licensed under the Act to buy, sell, lease or
distribute video gaming terminals or major components or parts of video gaming
terminals to or from terminal operators.
"Enforce a security interest": To transfer possession of
ownership or title pursuant to a security interest.
"EPROM": An acronym for Erasable, Programmable, Read Only
Memory, which is a microprocessor component that stores memory and affects
payout percentage and/or contains a random number generator that selects the
outcome of a game on a video gaming terminal.
"Facility-pay" or "facility payment": A manual payment of
currency by an authorized employee of a licensed video gaming location or an
authorized employee of a terminal operator for amounts owed to a patron by a
video gaming terminal when a video gaming terminal or ticket payout device has
malfunctioned and is unable to produce or redeem a ticket.
"Fraternal organization": An organization or institution
organized and conducted on a not-for-profit basis with no personal profit
inuring to anyone as a result of the operation and that is exempt from federal
income taxation under section 501(c)(8) or (c)(10) of the Internal Revenue Code
(26 U.S.C.
501(c)(8) or
(c)(10)).
"Game": A gambling activity that is played for money,
property or anything of value, including without limitation those played with
cards, chips, tokens, vouchers, dice, implements, or electronic, electrical or
mechanical devices or machines.
"Gaming": The dealing, operating, carrying on, conducting,
maintaining or exposing for play of any game.
"Gaming operation": The conducting of gaming or the providing
or servicing of gaming equipment.
"Gaming property collateral": Video gaming equipment subject
to a security interest.
"Illinois resident":
With respect to an individual, an individual who is
either:
domiciled in Illinois or maintains a bona fide place of abode
in Illinois; or
is required to file an Illinois tax return during the taxable
year.
With respect to a corporation, any corporation organized
under the laws of this State and any foreign corporation with a certificate of
authority to transact business in Illinois. A foreign corporation not
authorized to transact business in this State is a nonresident of this
State.
With respect to a partnership, a partnership in which any
partner is an Illinois resident, or where the partnership has an office and is
doing business in Illinois.
With respect to an irrevocable trust, a trust where the
grantor was an Illinois resident individual at the time the trust became
irrevocable.
"Immediate family": A spouse (other than a spouse who is
legally separated from the individual under a decree of divorce or separate
maintenance), parents, grandparents, siblings, children whether by blood,
marriage or adoption, grandchildren, and step-children, whether by blood,
marriage, or adoption.
"In-location bonus jackpot game" or "in-location progressive
game": A video game in which the value of the top prize increases each time the
game is played and the top prize is not won.
"Institutional investor":
A retirement fund administered by a public agency for the
exclusive benefit of federal, state or local public employees;
An investment company registered under section 8 of the
Investment Company Act of 1940 (15 U.S.C. 80a-8);
A collective investment trust organized by a bank under Part
9 of the Rules of the Comptroller of the Currency (12 CFR 9.18);
A closed end investment trust registered with the United
States Securities and Exchange Commission;
A chartered or licensed life insurance company or property
and casualty insurance company;
A federal or state bank;
An investment advisor registered under the Investment
Advisors Act of 1940 (15
U.S.C. 80b-1 through
80b-21); or
Such other person as the Illinois Gaming Board may determine
for reasons consistent with the Act and this Part.
"License": Authorization granted by the Board permitting a
licensee to engage in the defined activities of video gaming.
"Licensed establishment": Any retail establishment licensed
under the Act 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 [230 ILCS 5 ] or a riverboat or casino
licensed under the Illinois Gambling Act [230 ILCS 10 ].
"Licensed fraternal establishment": The location licensed
under the Act where a qualified fraternal organization that derives its charter
from a national fraternal organization regularly meets.
"Licensed large truck stop establishment": A facility located
within 3 road miles from a freeway interchange, as measured in accordance with
the Department of Transportation's rules regarding the criteria for the
installation of business signs:
that is at least a 3-acre facility with a convenience
store;
with separate diesel islands for fueling commercial motor
vehicles;
that sells at retail more than 50,000 gallons of diesel or
biodiesel fuel per month; and
with parking spaces for commercial motor vehicles.
"Commercial motor vehicle" has the meaning ascribed at Section 18b-101 of the
Illinois Vehicle Code.
The requirement of this definition may be met by showing that
estimated future sales or past sales average at least 50,000 gallons per
month.
"Licensed technician": An individual who is licensed under
the Act to repair, service and maintain video gaming terminals. A licensed
technician is not licensed under the Act to possess or control a video gaming
terminal or have access to the inner workings of a video gaming terminal (i.e.,
the logic area maintained in a separately locked cabinet of the video gaming
terminal that houses electronic components that have the potential to
significantly influence the operation of the video gaming terminal).
"Licensed terminal handler": 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
the Act to possess 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 Section 5 of the Act.
"Licensed truck stop establishment": A facility licensed
under the Act that is at least a 3-acre facility with a convenience store, that
has separate diesel islands for fueling commercial motor vehicles, that sells
at retail more than 10,000 gallons of diesel or biodiesel fuel per month, and
that has parking spaces for commercial motor vehicles. "Commercial motor
vehicle" has the meaning ascribed at Section 18b-101 of the Illinois Vehicle
Code [625 ILCS 5 ]. The 10,000 gallon requirement may be met by showing that
estimated future sales or past sales average at least 10,000 gallons per
month.
"Licensed veterans establishment": The location licensed
under the Act where a qualified veterans organization that derives its charter
from a national veterans organization regularly meets.
"Licensed video gaming location": A licensed establishment,
licensed fraternal establishment, licensed veterans establishment, licensed
truck stop establishment, or licensed large truck stop establishment, all as
defined in Section 5 of the Act and this Part.
"Liquor license": A license issued by a governmental body
authorizing the holder to sell and offer for sale at retail alcoholic liquor
for use or consumption.
"Major components or parts": Components or parts that
comprise the inner workings and peripherals of a video gaming terminal,
including but not limited to the device's hardware, software, human interface
devices, interface ports, power supply, ticket payout system, bill validator,
printer and any component that affects or could affect the result of a game
played on the device.
"Manufacturer": An individual, partnership, corporation or
limited liability company that is licensed under the Act and that manufactures
or assembles video gaming terminals.
"Net terminal income": Money put into a video gaming terminal
minus credits paid out to players.
"Nominee": Any individual or business entity that holds as
owner of record the legal title to tangible or intangible personal or real
property, including without limitation any stock, bond, debenture, note,
investment contract or real estate on behalf of another individual or business
entity, and as such is designated and authorized to act on his, her or its
behalf with respect to the property.
"Ownership interest": Includes, but is not limited to,
direct, indirect, beneficial or attributed interest, or holder of stock
options, convertible debt, warrants or stock appreciation rights, or holder of
any beneficial ownership or leasehold interest in a business entity.
"Payout device": A device, approved by the Board and provided
by a supplier or distributor, that redeems for cash tickets dispensed by a
video gaming terminal in exchange for credits accumulated on a video gaming
terminal.
"Person": Includes both individuals and business
entities.
"Place of worship under the Religious Corporation Act": A
structure belonging to, or operated by, a church, congregation or society
formed for the purpose of religious worship and eligible for incorporation
under the Religious Corporation Act [805 ILCS 110 ], provided that the
structure is used primarily for purposes of religious worship and related
activities.
"Problem gambling": "A repetitive set of gaming behaviors
that negatively impacts someone's life.
"Progressive jackpot": The top prize in an in-location bonus
jackpot game or in-location progressive game.
"Redemption period": The one-year period, starting on the
date of issuance, during which a ticket dispensed by a video gaming terminal
may be redeemed for cash.
"Responsible gaming" means all of the following:
Policies for reducing harms related to gaming;
Providing a transparent and fair game;
Playing within time and money limits; and
Gaming for entertainment and fun.
"Secured party": A person who is a lender, seller or other
person who holds a valid security interest.
"Security": An ownership right or creditor
relationship.
"Security agreement": An agreement that creates or provides a
security interest, including but not limited to a use agreement.
"Security interest": An interest in property that secures the
payment or performance of an obligation or judgment.
"Sole proprietor": An individual who in their own name owns
100% of the assets and who is solely liable for the debts of a business.
"Substantial interest": With respect to a partnership, a
corporation, an organization, an association, a business or a limited liability
company means:
When, with respect to a sole proprietorship, an individual or
their spouse owns, operates, manages, or conducts, directly or indirectly, the
organization, association or business, or any part thereof; or
When, with respect to a partnership, the individual or their
spouse shares in any of the profits, or potential profits, of the partnership
activities; or
When, with respect to a corporation, an individual or their
spouse is an officer or director or the individual or their spouse is a holder,
directly or beneficially, of 5% or more of any class of stock of the
corporation; or
When, with respect to a limited liability company, an
individual or their spouse is a member, or the individual or their spouse is a
holder, directly or beneficially, of 5% or more of the membership interest of
the limited liability company; or
When, with respect to any other organization not covered in
the preceding four paragraphs, an individual or their spouse is an officer or
manages the business affairs, or the individual or their spouse is the owner
of, or otherwise controls, 10% or more of the assets of the organization;
or
When an individual or their 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.
For purposes of this definition, "individual" includes all
individuals or their spouses whose combined interest would qualify as a
substantial interest under this definition 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.
"Supplier": An individual, partnership, corporation or
limited liability company that is licensed under the Act to supply major
components or parts to video gaming terminals to licensed terminal
operators.
"Terminal operator": An individual, partnership, corporation
or limited liability company that is licensed under the Act that owns,
services, and maintains video gaming terminals for placement in licensed
establishments, licensed truck stop establishments, licensed fraternal
establishments or licensed veterans establishments.
"Use agreement": A contractual agreement between a licensed
terminal operator and a licensed video gaming location establishing terms and
conditions for placement and operation of video gaming terminals by the
licensed terminal operator within the premises of the licensed video gaming
location, and complying with all of the minimum standards for use agreements
contained in Section 1800.320.
"Veterans organization": An organization or institution
organized and conducted on a not-for-profit basis with no personal profit
inuring to anyone as a result of the operation and that is exempt from federal
income taxation under section 501(c)(19) of the Internal Revenue Code
(26 U.S.C.
501(c)(19)).
"Video gaming equipment": Video gaming terminals, associated
video gaming equipment and major components or parts.
"Video gaming location": Any licensed video gaming location
as defined in this Section, any applicant to become a licensed video gaming
location, or any person that a terminal operator or sales agent and broker has
reason to believe may apply to become a licensed video gaming location.
"Video gaming manager": An employee or owner or designated
representative of a licensed video gaming location who manages, oversees or is
responsible for video gaming operations at the location, and coordinates the
video gaming operations with a terminal operator or the central communications
system vendor.
"Video gaming operation": As the context requires, the
conducting of video gaming and all related activities.
"Video gaming terminal": 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, 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.
