City of Crystal Lake, IL
McHenry County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the City Council of the City of Crystal Lake 6-5-2012 by Ord. No. 6794. Amendments noted where applicable.]
GENERAL REFERENCES
Amusement devices — See Ch. 162.
Raffles — See Ch. 408.
[Amended 4-5-2016 by Ord. No. 7208]
Except as otherwise provided in this Chapter 268, it shall be unlawful for any person to keep a place for gambling in any building, booth, yard, garden, boat, or float used or occupied by himself or his agent, or to procure or permit any persons to frequent or to come together to play for money or other valuable things at any game in any such building, booth, yard, garden, boat, or float. It shall also be unlawful for any person to possess or use any table, device, or paraphernalia or other apparatus for playing any game or sport for money or any valuable thing, or keep or allow to be used or rented any such place for gambling purposes.
A. 
For purposes of the foregoing sentence, a "device" for gambling purposes includes without limitation any video gaming terminal, as defined in the Video Gaming Act, 230 ILCS 40/5; or any mechanism, furniture, fixture, equipment or other device designed primarily for use in a gambling place.
B. 
A "device" for gambling purposes does not include:
(1) 
A coin-in-the-slot-operated mechanical device played for amusement which rewards the player with the right to replay such mechanical device, which device is so constructed or devised as to make such result of the operation thereof depend in part upon the skill of the player and which returns to the player thereof no money, property or right to receive money or property.
(2) 
Vending machines by which full and adequate return is made for the money invested and in which there is no element of chance or hazard.
Nothing in this chapter will restrict gambling places and devices if authorized under the Charitable Games Act, 230 ILCS 30.
[Added 4-5-2016 by Ord. No. 7208]
A. 
Definitions. As used in this section, the following terms shall have the meanings indicated:
BAR
A business establishment, holding a liquor license issued pursuant to Chapter 329 of this Code, in which the principal business is the sale of alcoholic liquors for consumption on the premises and may include the incidental sale of food for consumption on the premises.
LICENSED ESTABLISHMENT
A bar or restaurant, located within the City, at which the owner possesses for such location:
(1) 
A current and valid video gaming location license issued by the Illinois Gaming Board;
(2) 
A current and valid Crystal Lake liquor license issued in accordance with Chapter 329 of this Code which the owner has held for a period of not less than one year prior to the filing of an application for a video gaming license pursuant to the provisions of this Chapter 268;
(3) 
A current and valid Class 28 video gaming supplemental liquor license issued in accordance with the provisions of Chapter 329 of this Code; and
(4) 
A current and valid video gaming license issued pursuant to the provisions of this Chapter 268.
RESTAURANT
A full-service restaurant holding a liquor license issued pursuant to Chapter 329 of this Code which serves alcoholic liquor for consumption by patrons at both:
(1) 
Tables intended for dining; and
(2) 
One or more bars located within such restaurant which are principally intended for the service of alcoholic liquors to patrons seated at the bar.
VIDEO GAMING TERMINAL or VGT
An electronic video game machine that, upon insertion of cash, electronic card or voucher or any combination thereof, 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 State of Illinois Gaming Board (the "Gaming 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.
B. 
Video gaming license required. No video gaming terminal may be operated within the City except within a licensed establishment as defined by this Chapter 268.
C. 
Application requirements. Application to the City for a video gaming license shall be made to the City Manager or his/her designee on forms furnished by the City Manager or designee. The application shall contain the following information:
(1) 
The name, address, age, date of birth of the video gaming terminal operator and of the owner of the establishment where the video gaming terminal shall be located;
(2) 
Prior convictions of the video gaming terminal operator and the owner of the establishment, if any;
(3) 
A description of the nature of the business of the establishment and whether persons under the age of 21 will be allowed to enter the premises;
(4) 
A site plan which depicts the location and dimension of any bars located within the establishment, as well as the area in which the video gaming will take place. In the event that persons under the age of 21 will be allowed within the premises, the site plan shall depict the manner in which access to persons under the age of 21 shall be restricted;
(5) 
A description of the video gaming terminal(s) to be covered by the license;
(6) 
A copy of the applicant's complete license application, and all supporting documents, to the Illinois Gaming Board;
(7) 
Evidence that licenses have been issued by the Illinois Gaming Board to the operator of the video gaming terminal and the owner of the establishment;
(8) 
Such other information as the City may determine is necessary as set forth in the application form.
D. 
Video gaming license issuance, term and limitations.
(1) 
The City Manager or his/her designee shall be authorized to issue a video gaming license to the owner of a bar or restaurant, located within the City, at which the owner possesses for such location:
(a) 
A current and valid video gaming location license issued by the Illinois Gaming Board;
(b) 
A current and valid liquor license issued in accordance with Chapter 329 of this Code which the owner has held for a period of not less than one year prior to the application for the video gaming license; and
(c) 
A current and valid Class 28 video gaming supplemental liquor license issued in accordance with the provisions of Chapter 329 of this Code.
(2) 
Video gaming licenses shall be valid for a period of up to one year from date of issuance and shall expire on May 31 of each year. A video gaming license issued pursuant to this section shall expire immediately upon the voluntary surrender or revocation of the permittee's video gaming location license issued by the Illinois Gaming Board, liquor license, or Class 28 video gaming supplemental liquor license. No video gaming license shall be issued or renewed where the applicant owes a debt, fine, fee or penalty to the City.
(3) 
All applications for a video gaming license shall be accompanied by an agreement, in such form as may be approved by the City Manager or his/her designee, executed by the proposed permittee, agreeing to defend and indemnify the City against any damages, costs and reasonable attorney's fees incurred by the City in defending against any suit filed by the proposed permittee challenging the validity of any provision of § 268-3 of this Code.
E. 
Limitation on number of video gaming licenses.
(1) 
There shall be a limited number of video gaming licenses authorized and issued within the City. Any increase in the number of video gaming licenses shall require an amendment of this section.
(2) 
Number of authorized video gaming licenses: 16.
[Last amended 7-17-2018 by Ord. No. 7486]
(3) 
Any time a video gaming license is revoked or voluntarily surrendered for any reason, the number of authorized licenses shall automatically be reduced by one without any further amendment of this section or this Code.
F. 
Renewal of video gaming licenses. Any permittee may renew his/her/its permit at the expiration thereof, provided he/she/it would qualify for an initial video gaming license at the time of renewal. This subsection shall not be construed as providing a permittee with a vested right in any video gaming license issued pursuant to this chapter, as the Mayor and City Council reserve the right to decrease the number of video gaming licenses to be issued within the City.
G. 
Video gaming terminal operators. It shall be unlawful for any person, firm or corporation or other entity to engage in the business of video gaming terminal operation, pursuant to the Illinois Video Gaming Act, without first having secured a license from the City as provided in this Section.
(1) 
Application. Video gaming terminal operator licenses shall be effective from date of issuance until December 31 of the same year. The annual fee for a video gaming terminal operator license shall be established by this section. The fee is nonrefundable and shall be applicable irrespective of when an applicant submits an application for a video gaming terminal operator license.
(2) 
There is no limit on the number of video gaming terminal operator licenses that may be issued by the City. Applications for such licenses shall be made to the City Manager or his/her designee on forms and in a manner prescribed by the City Manager or his/her designee. Video gaming terminal operator licenses shall be issued only upon the order of the City Manager or his/her designee.
(3) 
The City Manager or his/her designee shall have the right to deny a video gaming terminal operator license to an applicant in the absence of reasonable proof necessary to evidence the applicant's ability to comply with, or past compliance with, the provisions of this chapter or any other Code provision or ordinance of the City.
(4) 
A video gaming terminal operator license licensee shall provide the City, within 14 business days of the City's request, with copies of records pertaining to their accounts within the corporate limits of the City.
(5) 
No video gaming operator license shall be issued to any person, limited-liability company or other entity that does not hold, at the time of application, a current and valid terminal operator license issued by the Illinois Gaming Board.
(6) 
Insurance prerequisites.
(a) 
No license which has been otherwise approved shall be issued until the terminal operator has filed with the City Manager a certificate or other evidence that the terminal operator carries insurance of the following types of at least the limits specified below:
[1] 
Workers' compensation insurance as prescribed by the laws of the state.
[2] 
Employers' liability insurance, with limits of not less than $1,000,000 per occurrence.
[3] 
Comprehensive general liability insurance, with limits of not less than $1,000,000 for property damages; $1,000,000 for bodily injury or death of any one person; and $2,000,000 coverage per occurrence.
(b) 
The licensee shall include the City, its officers, employees, and agents as additional named insured on any of the foregoing policies.
(7) 
Assignment. Any license issued to a terminal operator under this Code shall not be assignable or transferable by the licensee or by operation of law or otherwise; nor may the licensee sublet or contract out any part of the work to be performed by the terminal operator.
(8) 
Suspension/Revocation. The City Manager or his/her designee may immediately suspend or revoke the video gaming terminal operator license issued pursuant to this section upon being notified that the licensee's terminal operator license issued to the licensee by the Illinois Gaming Board has expired or has been suspended or revoked.
H. 
Video gaming terminal permit; limitation on number. The City Manager or his/her designee shall be authorized to issue video gaming terminal permits within the City. No video gaming terminal may be operated within a licensed establishment unless such video gaming terminal shall have been first approved in accordance with the Illinois Video Gaming Act (230 ILCS 40/1 et seq.) and a current video gaming terminal permit has first been issued by the City Manager or his/her designee for such video gaming terminal to the owner of the licensed establishment. Each video gaming terminal permit shall be valid only during the calendar year for which such permit has been issued. The issuance of such permit shall be evidenced by a sticker which shall be affixed to and readily visible upon each permitted video gaming terminal. Not more than three video gaming terminals may be operated within a licensed establishment.
I. 
Application and annual fees: video gaming license/video gaming terminal permit and video gaming operator license.
(1) 
Fees.
(a) 
The fee for the initial issuance and each annual renewal of a video gaming license shall be $1,000.
(b) 
The fee for the initial issuance and each annual renewal fee for a video gaming terminal permit shall be $500 per terminal.
(c) 
The fee for the initial issuance and each annual renewal of a video gaming operator license shall be $1,000.
(2) 
The permit fees for the first year of the video gaming license, the video gaming operator license and the video gaming terminal permit period shall be prorated from the month of issuance to the last month of the first license/permit year. A video gaming license, a video gaming terminal permit or a video gaming operator license shall not constitute property nor shall it be subject to attachment, garnishment to execution, nor shall it be alienable or transferable, voluntarily or involuntarily, or subject to be encumbered or hypothecated.
J. 
Hours of operation. Video gaming terminals may only be operated during the legal hours of operation allowed for the sale of alcoholic liquor within the licensed establishment in accordance with Chapter 329 of this Code.
K. 
Location screening and supervision. Video gaming terminals may only be located within a licensed premises in an area which is separated by a physical barrier that will restrict access to persons under the age of 21 and will also provide a visual barrier to patrons of the licensed premises who are not engaged in or accompanying a person engaged in the use of a video gaming terminal. The physical barrier may consist of a full or partial wall or such other physical barrier as may be determined by the City Manager or his/her designee to be sufficient to accomplish the purposes of this section. An application for a video gaming permit shall be accompanied by a site plan which depicts the area in which the video gaming will take place, which site plan shall be subject to the review and approval of the City Manager or his/her designee. The physical barrier shall be constructed in such a manner so that at all times the area in which the video gaming terminals are located is visible to an employee of the licensed premises who is over the age of 21. The area constructed for video gaming shall be constructed in such a manner so that video gaming terminals may not be visible from the exterior of the building in which they are located.
[Amended 10-28-2016 by Ord. No. 7299]
L. 
Compliance. Licensed establishments shall comply with all provisions of this Code and the Illinois Video Gaming Act.
M. 
Inspections. Licensed establishments shall permit inspection during regular business hours by City officials to determine compliance with the provisions of this Code.
N. 
Signage. No signage advertising or otherwise making known the availability of video gaming within the licensed establishment may be visible from the exterior of the building in which the video gaming terminals are located.
O. 
Video surveillance. All licensed establishments shall be equipped with video surveillance equipment capable of recording clear, continuous video of the area in which the video gaming terminals are located. Video surveillance shall meet the following standards:
(1) 
The video surveillance cameras shall be digital in nature (digital video recorder) and shall be of sufficient number, type, placement and location to view and record all activity in front of and within 15 feet of either side of the video gaming area; and
(2) 
The video surveillance cameras shall be sufficiently light-sensitive and provide sufficient image resolution (supported by additional lighting if necessary) to produce easily discernible images recorded at all times; and
(3) 
The video surveillance cameras shall record at a minimum speed of 15 frames per second; and
(4) 
The video surveillance camera image shall be capable of being viewed through use of appropriate technology, including but not limited to a computer screen or closed-circuit television monitor; and
(5) 
The video surveillance camera system shall be capable of transferring the recorded images to portable format of media, including but not limited to compact disc, digital video disc or USB thumb drive; and
(6) 
The video surveillance cameras shall not have an audio capability or such audio recording ability shall be disabled at the camera or digital video recorder level; and
(7) 
The video surveillance cameras shall be maintained in good working condition; and
(8) 
The video surveillance cameras shall be in operation and recording continuously, 24 hours per day; and
(9) 
In the event of a power loss, the video surveillance camera system shall be powered by a backup power supply so that there is no period of time that the video gaming area is not being recorded; and
(10) 
The recordings made by video surveillance cameras installed and maintained pursuant to this section shall be indexed by dates and times and preserved for a minimum of 30 days so that they may be made available to the Liquor Commissioner, the Police Department and other governmental agencies in furtherance of a criminal investigation or a civil or administrative enforcement investigation, prosecution or hearing.
P. 
Video gaming to be incidental to primary use of establishment. Video gaming licenses shall only be issued where video gaming is an incidental portion of the bar or restaurant and the principal business purpose of such establishment is the sale for consumption on the premises of food and/or alcoholic liquor.
Q. 
Violations and penalty. It shall be unlawful for any person to violate any provision of this § 268-3. Any person found to be in violation of any provision of this section shall be subject to the penalties contained in Chapter 248 of this Code. In addition, any and all permits issued pursuant to this § 268-3 or any Class 28 liquor license issued pursuant to Chapter 329 of this Code shall be subject to suspension or revocation as provided in this Code or by law.
R. 
Nonseverability. If any provision of this § 268-3 is found to be invalid by a court of competent jurisdiction, such finding shall have the effect of repealing § 268-3, in its entirety, effective on May 31 following the date on which such court determination becomes final. All video gaming licenses issued and outstanding shall terminate and shall not be subject to further renewal as of May 31 following the date on which such court determination becomes final.