A. Terminal Operator: A person may not own, maintain, or place a video gaming terminal in the City unless he or she has a valid terminal operator's state license issued under the video gaming act and a valid City video gaming terminal license for each video gaming terminal in the City. A terminal operator may only place video gaming terminals for use in the City in licensed video gaming locations. No terminal operator may give anything of value, including, but not limited to, a loan or financing arrangement, to a licensed video gaming location as any incentive or inducement to locate video terminals in that establishment. Of the after-tax profits from a video gaming terminal, fifty percent (50%) shall be paid to the terminal operator and fifty percent (50%) shall be paid to the licensed video gaming location, notwithstanding any agreement to the contrary.
B. Licensed Establishment: No video gaming terminal may be placed in any licensed video gaming location in the city unless the owner or agent of the owner of the licensed video gaming location has a valid state location license issued under the video gaming act and a valid city location license and has entered into a written use agreement with the terminal operator for placement of the terminals. A copy of the use agreement shall be on file in the licensed video gaming location in the city and available for inspection by individuals authorized by the city. A licensed video gaming location located in the city may operate up to five (5) video gaming terminals on its premises at any time.
C. Financial Interest Restrictions:
1. As used in the video gaming act and in this chapter, "substantial interest" in a partnership, a corporation, an organization, an association, a business, or a limited liability company means:
a. When, with respect to a sole proprietorship, an individual or his or her spouse owns, operates, manages, or conducts, directly or indirectly, the organization, association, or business, or any part thereof; or
b. When, with respect to a partnership, the individual or his or her spouse shares in any of the profits, or potential profits, of the partnership activities; or
c. When, with respect to a corporation, an individual or his or her spouse is an officer or director, or the individual or his or her spouse is a holder, directly or beneficially, of five percent (5%) or more of any class of stock of the corporation; or
d. When, with respect to an organization not covered in subsection C.1.a., C.1.b. or C.1.c. of this section, 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 ten percent (10%) or more of the assets of the organization; or
e. When an individual or his or her spouse furnishes five percent (5%) or more of the capital, whether in cash, goods, or services, for the operation of any business, association, or organization during any calendar year; or
f. When, with respect to a limited liability company, an individual or his or her spouse is a member, or the individual or his or her spouse is a holder, directly or beneficially, of five percent (5%) or more of the membership interest of the limited liability company.
2. For purposes of this subsection c. individual includes all individuals or their spouses whose combined interest would qualify as a substantial interest under this subsection c. 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.
D. Location Restriction:
1. A licensed video gaming location that is: a) located within one thousand feet (1,000') of a facility operated by an organization licensee or an intertrack wagering licensee licensed under the Illinois horse racing act of 1975 or the home dock of a riverboat licensed under the riverboat gambling act or b) located within one hundred feet (100') of a school or a place of worship under the religious corporation act, is ineligible to operate a video gaming terminal. The location restrictions in this subsection (d) do not apply if a facility operated by an organization licensee, an intertrack wagering licensee, a school, or a place of worship moves to or is established within the restricted area after a licensed video gaming location becomes licensed under the video gaming act. For the purposes of this subsection (d), "school" means an elementary or secondary public school, or an elementary or secondary private school registered with or recognized by the state board of education.
2. Notwithstanding the provisions of this subsection (d), the liquor commissioner may waive the requirement that a licensed video gaming location not be located within one thousand feet (1,000') from a facility operated by an organization licensee or an intertrack wagering licensee licensed under the Illinois horse racing act of 1975 or the home dock of a riverboat licensed under the riverboat gambling act. The liquor commissioner shall not grant such waiver if there is any common ownership or control, shared business activity, or contractual arrangement of any type between the establishment and the organization licensee, intertrack wagering licensee, or owners' licensee of a riverboat. The liquor commissioner may adopt rules to implement the provisions of this subsection (d)(2) or in the absence of the liquor commissioner's adopting rules to implement the provisions of this subsection (d)(2), the rules of the Illinois gaming board shall apply to implement the provisions of this subsection (d)(2).
E. Undue Economic Concentration:
1. In addition to considering all other requirements under the video gaming act and this chapter, in deciding whether to approve the operation of video gaming terminals by a terminal operator in a location, the liquor commissioner shall consider the impact of any economic concentration of such operation of video gaming terminals. The liquor commissioner shall not allow a terminal operator to operate video gaming terminals if the liquor commissioner determines such operation will result in undue economic concentration. For purposes of this subsection (e), "undue economic concentration" means that a terminal operator would have such actual or potential influence over video gaming terminals in the City as to:
a. Substantially impede or suppress competition among terminal operators;
b. Adversely impact the economic stability of the video gaming industry in the City; or
c. Negatively impact the purposes of the video gaming act or this chapter.
2. The liquor commissioner may adopt rules concerning undue economic concentration with respect to the operation of video gaming terminals in the City or in the absence of the City's adopting rules concerning undue economic concentration with respect to the operation of video gaming terminals in the City, the rules of the Illinois gaming board shall apply to undue economic concentration with respect to the operation of video gaming terminals in the City. The rules, if adopted by the liquor commissioner, shall include, but not be limited to: a) limitations on the number of video gaming terminals operated by any terminal operator within a defined geographic radius and b) guidelines on the discontinuation of operation of any such video gaming terminals the liquor commissioner determines will cause undue economic concentration.
F. Provisions of Illinois Antitrust Act: The provisions of the Illinois antitrust act are fully and equally applicable to the activities of any licensee under this chapter. (Ord. 3567, 9-23-2019)