A. Authority: The City is authorized under the Illinois Video Gaming Act, 230 Illinois Compiled Statutes 40/1 et seq.; part 1800, "video gaming", of title 11, subtitle D, chapter 1, of the Illinois Administrative Code; and the decisions and rulings of the Illinois Gaming Board to provide for certain local regulation of video gaming in the City.
1. Definitions:
ESTABLISHMENT OPERATOR: Any person who owns or operates a "licensed establishment", "licensed fraternal establishment", "licensed veterans' establishment", or "licensed truck stop establishment", as defined in the Video Gaming Act.
LICENSED PREMISES: The premises on which any "licensed establishment", "licensed fraternal establishment", "licensed veterans' establishment", or "licensed truck stop establishment", as defined in the Video Gaming Act is located.
PERSON: An individual, partnership, non- or for-profit corporation, limited liability company, or other entity.
PERSON WITH SIGNIFICANT INTEREST OR CONTROL: Any of the following:
a. Each person in whose name a City liquor license is maintained for the licensed premises;
b. Each person who has been determined by the Illinois Gaming Board or its Administrator as having, or in the opinion of the Administrator of the Illinois Gaming Board has, the ability to influence or control the activities of an establishment operator, or elect a majority of its board of directors, other than a bank or licensed lending institution that holds a mortgage or other lien, or any other source of funds, acquired in the ordinary course of business; or
c. Persons having the power to exercise significant influence or control over decisions concerning any part of an establishment operator's video gaming operation.
2. Payment Of City Video Gaming Terminal Fee Required: Payment of a City video gaming terminal fee is required for the operation of each video gaming terminal within the Municipal boundaries of the City. No person shall operate a video gaming terminal or allow the operation of such on premises owned by and/or under the possession and control of such person without payment of the required City video gaming terminal fee. The total fee payable shall be the amount as specified in the master fee schedule times the number of video gaming terminals on the premises and shall be payable in advance per annum to the City Clerk on or before July 1. For video gaming terminals first installed or additional terminals installed after July 1 of any year, the total amount of the fee shall be reduced by 8.33 percent for each calendar month or each part of a calendar month after July 1 (e.g., for 3 video gaming terminals first installed on July 3 of any year the total fee would be $75.00 x 91.66 percent, or $68.75; for 4 additional video gaming terminals installed on September 16 of any year, the total fee would be $100.00 x 75 percent, or $75.00). No portion of any City video gaming terminal fee paid shall be refundable for any reduction in the number of video gaming terminals prior to July 1 of any year.
Every person applying to pay City video gaming terminal fees shall possess and present to the City Clerk for inspection a valid video gaming terminal operator's license issued by the State of Illinois. Additionally, if the premises on which the video gaming terminals are to be located sells or serves alcoholic beverages for consumption on the premises, such person shall also possess valid City and State liquor licenses for such premises and shall present his, her, or its State liquor license to the City Clerk for inspection at the time of making payment. (Ord. O-18-024, 7-19-2018)
3. General Duties Of Establishment Operators: Each establishment operator has an ongoing duty to:
a. Comply with all Federal, State and local laws and regulations;
b. Conduct himself, herself, or itself at all times in a professional manner with the public and City officials and staff; and
c. Conduct the establishment operator's video gaming operation in a manner that does not pose a threat to the public health, safety, morals, good order or general welfare of the residents of the City.
4. Duty To Report: Each establishment operator and persons with significant influence and control must promptly report all of the following to the Chief of Police or designee:
a. Violation of this subsection A, the Video Gaming Act, 230 Illinois Compiled Statutes 40/1 et seq.; part 1800, "video gaming", of title 11, subtitle D, chapter 1, of the Illinois Administrative Code; or any illegal conduct including, but not limited to, the possession, maintenance, or use of any illegal gaming device;
b. Any fact, event, occurrence, matter or action that may affect the conduct of video gaming or the business and financial arrangements incidental to the conduct of video gaming, or the ability to conduct any activity on the premises for which the establishment operator is required to be licensed as a condition of holding a City video gaming terminal fee, including, but not limited to, any change in persons identified as having significant influence or control;
c. Each arrest, summons, citation of or each charge for any criminal offense or violation against the establishment operator or person with significant interest, excluding minor traffic violations; and
d. Any adverse action taken or nonrenewal relative to a State liquor license.
5. Duties Of Establishment Operators As To Terminal Operators: If an establishment operator contracts for video gaming terminal operations on the licensed premises, the establishment operator shall have a duty to contract only with a State licensed video terminal operator who shall be in full compliance throughout the period of the City video gaming terminal fee with all applicable Federal and State laws and regulations and, specifically, the duties of such operator as set out in section 1800.250, subpart B of part 1800, "video gaming", of title 11, subtitle D, chapter 1, of the Illinois Administrative Code.
6. Duties Of Establishment Operators As To The Licensed Premises: Each establishment operator shall:
a. Provide a secure premises for the placement, operation and play of video gaming terminals;
b. Permit no one to tamper with or interfere with the approved operation of any video gaming terminal;
c. Ensure that all connections with the central communications system and associated video gaming equipment are at all times maintained and prevent any person from tampering or interfering with the approved, continuing operation of the central communications system;
d. Accept nothing of value from any video terminal operator or any agent or representative of any video terminal operator as an incentive or inducement to locate, keep or maintain video gaming terminals on the licensed premises;
e. Upon a report that a video gaming terminal is malfunctioning, investigate such immediately, and upon determining that such is true, immediately post conspicuously on or next to the terminal a notice that the terminal is out of service and maintain such notice until the terminal is repaired or removed as required by subsection A6f of this section;
f. Immediately remove all video gaming terminals from the restricted area of play:
(1) Upon order of the Illinois Gaming Board or its agent, or
(2) That have been out of service or otherwise inoperable for more than seventy two (72) hours;
g. Ensure that video gaming terminals are placed and remain in a designated, approved restricted area as required by the Video Gaming Act and the rules and regulations of the Illinois Gaming Board;
h. Prevent access to the video gaming terminal area or playing of video gaming terminals by persons who are under the age of twenty one (21) years or who are visibly intoxicated;
i. Commit no violations of the laws of this State or City ordinances concerning the sale, dispensing or consumption on premises of alcoholic beverages that results in suspension or revocation of any liquor license held by or associated with a licensed premises;
j. Maintain at all times an approved method of payout for valid receipt tickets and pay all valid receipt tickets;
k. Extend no form of deferred payment for video gaming terminal play in which an individual receives something of value now and agrees to repay the lender in the future for the purpose of wagering at a video gaming terminal;
l. Promptly report all malfunctions of video gaming terminals and all out of service terminals to the video terminal operator and promptly notify the Illinois Gaming Board of a terminal operator's failure to provide service and repair of terminals and associated equipment within twenty four (24) hours after notice to the terminal operator;
m. Install, post and display and maintain signs as required by the Illinois Gaming Board and by this subsection A;
n. Promptly notify the Illinois Gaming Board and the City Department of Police of any unauthorized or illegal video gaming terminals; any video gaming device that is in violation of section 35 of the Video Gaming Act, 230 Illinois Compiled Statutes 40/35; or any illegal gambling;
o. Exercise control over the licensed premises and, in particular, maintain visibility of the entry into the video terminal area at all times by one (1) employee who is at least twenty one (21) years of age as required by the Video Gaming Act;
p. Allow maintenance and/or service of video gaming terminals and associated video gaming equipment only by licensed technicians and licensed terminal handlers possessing valid identification issued by the Illinois Gaming Board.
7. Grounds For Disciplinary Actions: An establishment operator shall be subject to disciplinary action by the City for:
a. Failing to comply with or make provision for compliance with the Video Gaming Act; part 1800, "video gaming", of title 11, subtitle D, chapter 1, of the Illinois Administrative Code; this subsection A; any Federal, State or Local law or regulation; or a control system or protocol mandated by the Illinois Gaming Board;
b. Failing to comply with any order or ruling of the Illinois Gaming Board or its agents pertaining to the regulation of video gaming in Illinois;
c. Revocation or suspension of its State video gaming license, or failure to have a current State video gaming license;
d. Revocation or suspension of its State or City liquor license, or failure to have a valid State or City liquor license, if the licensed premises sells or serves alcoholic beverages for consumption on the licensed premises;
e. Misrepresentation of any information required to be provided to the City, the Illinois Gaming Board or the State or State agency;
f. Violation of the Video Gaming Act; part 1800, "video gaming", of title 11, subtitle D, chapter 1, of the Illinois Administrative Code; this subsection A; any Federal, State or Local law or regulation; or a control system or protocol mandated by the Illinois Gaming Board by any person identified as a person with significant influence or control;
g. Except as shall be permitted in this subsection A, State, or Federal law, gambling or the operation of any gambling device by the establishment operator or any employee or agent thereof on the licensed premises or by any persons thereon with permission or knowledge of the establishment operator or any employee or agent of the establishment operator.
8. Proceedings On Disciplinary Actions; Sanctions: The City may bring disciplinary actions against any establishment operator for violations of this subsection A in any manner authorized by law. Administrative adjudication proceedings shall be governed by and in accordance with chapter 18, "Administrative Adjudication", of this Code. The City shall have available to it all sanctions and remedies authorized by law against an establishment operator determined to be in violation of this subsection A, including confiscation of video gaming terminals and/or terminal income, and/or fines. Fines shall not exceed seven hundred fifty dollars ($750.00) per violation. Each day that any condition giving rise to a violation of this subsection A shall continue shall constitute a separate violation. Additionally, in accordance with 11 Illinois Administrative Code 1800.1110, the City shall notify the Illinois Gaming Board of charges and sanctions by the City against a video gaming establishment operator relating to the operation or use of a video gaming terminal.
B. Other Gaming, Gambling And Gambling Devices Prohibited: Video gaming at licensed establishments is expressly permitted in the City only as authorized by and as conducted in accordance with the Video Gaming Act, 230 Illinois Compiled Statutes 40/1 et seq.; part 1800, "video gaming", of title 11, subtitle D, chapter 1, of the Illinois Administrative Code; and the decisions and ruling of the Illinois Gaming Board pursuant thereto, and subsection A of this section. Nothing in this section shall be construed to authorize, license or permit any gambling device, or gaming or gambling in any way contrary to such statute, regulations, and ordinances, or to any present or future law of the State of Illinois. (Ord. O-17-010, 5-18-2017)