(A)
Terminal operator. A person may not own, maintain, or place a video gaming terminal in the city unless he 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, 50% shall be paid to the terminal operator and 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 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 six 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 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; 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 5% or more of the membership interest of the limited liability company.
(2) For purposes of this division (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 (i) located within 1,000 feet of a facility operated by an organization licensee or an inter-track 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 (ii) located within 100 feet of a school or a place of worship under the Religious Corporation Act, is ineligible to operate a video gaming terminal. The location restrictions in this division (D) do not apply if a facility operated by an organization licensee, an inter-track wagering licensee, or an inter-track wagering location 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 purpose of this division, 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 division (D), the Liquor Commissioner may waive the requirement that a licensed video gaming location not be located within 1,000 feet from a facility operated by an organization Licensee, an inter-track wagering Licensee, or an inter-track wagering location licensee licensed under the Illinois Horse Racing Act of 1975 or 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, inter-track wagering licensee, inter-track wagering location Licensee, or owners licensee of a riverboat. The Liquor Commissioner may adopt rules to implement the provisions of this paragraph or in the absence of the Liquor Commissioner's adopting rules to implement the provisions of this paragraph, the rules of the Illinois Gaming Board shall apply to implement the provisions of this paragraph.
(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 section, 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 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, (i) limitations on the number of video gaming terminals operated by any terminal operator within a defined geographic radius and (ii) guidelines on the discontinuation of operation of any such video gaming terminals the Liquor Commissioner determines will cause undue economic concentration.
(F) The provisions of the Illinois Antitrust Act are fully and equally applicable to the activities of any Licensee under this chapter.
(Ord. 12-22, passed 4-24-12; Am. Ord. 19-43, passed 8-27-19)