Illinois Administrative Code › Title 11 - ALCOHOL, HORSE RACING, LOTTERY, AND VIDEO GAMING › Part 1800 - VIDEO GAMING (GENERAL) › Subpart A - GENERAL PROVISIONS › Section 1800.110 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
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.