[HISTORY: Adopted by the City Council of the City of Crystal
Lake 6-5-2012 by Ord. No. 6794. Amendments noted where applicable.]
[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.
BAR
LICENSED ESTABLISHMENT
(1)
(2)
(3)
(4)
PLAY
RESTAURANT
VIDEO GAMING TERMINAL or VGT
Definitions. As used in this section, the following terms shall have
the meanings indicated:
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.
A bar or restaurant, located within the City, at which the
owner possesses for such location:
A current and valid video gaming location license issued by
the Illinois Gaming Board;
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. The one-year requirement set forth in this subsection shall not apply to an owner when each of the following conditions are met: 1) for a period of not less than six months prior to filing of an application for a video gaming license, the owner has operated a full-service restaurant within the premises for which a video gaming license is to be issued, and has held, during that period, a valid and current liquor license for such premises, issued pursuant to Chapter 329 of this Code; and 2) the most recent occupant of the premises prior to the owner was a video gaming licensed establishment operated as a full-service restaurant;
[Amended 6-7-2022 by Ord.
No. 7821]
A current and valid Class 28 video gaming supplemental liquor license issued in accordance with the provisions of Chapter 329 of this Code; and
A current and valid video gaming license issued pursuant to the provisions of this Chapter 268.
Each individual push of the video gaming terminal which initiates
the simulation provided by the video gaming terminal. "Play" shall
not include the physical pushing of individual wager amounts, selection
of types of the games on the VGT, or the entry of any information
or printing of winning receipts.
[Added 10-19-2021 by Ord.
No. 7749]
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:
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. The one-year requirement set forth in this subsection shall not apply to an owner when each of the following conditions are met: 1) for a period of not less than six months prior to filing of an application for a video gaming license, the owner has operated a full-service restaurant within the premises for which a video gaming license is to be issued, and has held, during that period, a valid and current liquor license for such premises, issued pursuant to Chapter 329 of this Code; and 2) the most recent occupant of the premises prior to the owner was a video gaming licensed establishment operated as a full-service restaurant; and
[Amended 6-7-2022 by Ord.
No. 7821]
(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: 20.
[Last amended 12-19-2023 by Ord. No. 7990]
(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 six
video gaming terminals may be operated within a licensed establishment.
[Amended 8-18-2020 by Ord. No. 7646]
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.
S.
Push tax imposed. Except as otherwise provided by this subsection,
an amusement tax to be known as a "push tax" is imposed upon any person
who participates in the playing of video gaming terminals that takes
place in the City. The rate of that tax shall be equal to $0.01 per
play on a video gaming terminal.
[Added 10-19-2021 by Ord.
No. 7749]
(1)
Tax additional. The tax imposed by this subsection is in addition
to all the other taxes imposed by the State of Illinois, the City,
or any municipal corporations or subdivisions thereof.
(2)
Collection; payment; accounting. It shall be the joint and several
duty of any video gaming licensee and video gaming operator licensee
to secure, from each person participating in the play of a video gaming
terminal, the push tax imposed by this subsection. For the purposes
of this subsection, it shall be presumed that the amount of the push
tax imposed on each person has been collected from the person by the
video gaming licensee or video gaming operator licensee, unless the
taxpayer or tax collector demonstrates otherwise with books, records,
or other documentary evidence.
(a)
Push tax payments shall be remitted to the City on or before
the 20th day of the month following the month in which the tax is
collected or is required to be collected and shall be accompanied
by a tax return, which shall be in a form prescribed by the City Finance
Director.
(b)
Every video gaming licensee and video gaming operator licensee
who is required to collect the push tax by this subsection shall be
considered a tax collector for the City. All push tax amounts collected
shall be held by the video gaming licensee or video gaming operator
licensee as trustee for, and on behalf of, the City. The failure to
collect the push tax shall not excuse or release the individual person
playing the video gaming terminal from the obligation to pay the tax.
The ultimate obligation of the push tax shall remain on the individual
person playing the video gaming terminal, and shall never be shifted
to the video gaming licensee or video gaming operator licensee.
(c)
Notwithstanding any other provision of this subsection, in order
to permit sound fiscal planning and budgeting by the City, no person
shall be entitled to a refund of, or credit for, the push tax imposed
by this subsection unless the person files a claim for the refund
or credit within one year after the date on which the push tax was
paid or remitted to the City.
(d)
The video gaming licensee and video gaming operator licensee
of any video gaming terminal(s) played in the City shall be subject
to audit, inspection, and recordkeeping provisions of the City Code.
It shall be unlawful for any video gaming licensee, video gaming operator
licensee, or individual person playing a video gaming terminal, to
prevent, hinder, or interfere with the City, its officers, employees,
or agents in any manner that is designed to or has the effect of preventing,
hindering, or interfering with such officials, employees, or agents
in the discharge of their respective duties related to the performance,
audit, or enforcement of the provisions of this subsection. It is
the duty of every video gaming licensee and video gaming operator
licensee to keep accurate and complete books and records for each
video gaming terminal to which the City's officers, employees, or
agents will at all times have full and complete access.
(3)
Promulgation of rules and regulations. The City is authorized to
adopt, promulgate, and enforce any additional rules and regulations
pertaining to the interpretation, collection, administration, and
enforcement of this subsection.
(4)
Violations; penalties.
(a)
Violations.
[1]
A video gaming licensee or video gaming operator licensee who
falsely reports, or fails to report, the amount of push tax required
by this subsection shall be in violation of this subsection, and shall
be subject to a fine, as defined in this subsection, as well as suspension
or revocation of their license. All payments not remitted when due
shall be paid together with a penalty assessment on the unpaid balance
at a rate of 5% per month, which penalty shall compound monthly.
[2]
It shall be deemed a violation of this subsection for any video
gaming licensee, video gaming operator licensee, or individual person
playing a video gaming terminal, or any agent of any of the foregoing,
to knowingly furnish false or inaccurate information to the City.
[3]
Each day a violation continues shall constitute a separate violation.
(b)
Suspension or revocation of license. The Mayor as local liquor
commissioner shall have the power to suspend for not more than 30
days or revoke any liquor or video gaming licenses if, after hearing,
it is determined that a video gaming licensee or video gaming operator
licensee shall have violated any of the provisions of this subsection,
any of the statutes of the state, or any ordinances, resolutions,
or rules enacted by the City. Ten days' written notice of the hearing
shall be given to the video gaming licensee or video gaming operator
licensee. Alternatively, the video gaming licensee or video gaming
operator licensee may agree to negotiated terms and penalties rather
than proceeding to a hearing.
(c)
Fines imposed. In addition to the foregoing, or any other penalties
provided by the City Code, any video gaming licensee or video gaming
operator licensee violating the provisions of this subsection shall
be subject to an additional fine of $500 for a first offense and $750
for a second offense. For a third offense, a video gaming licensee
or video gaming operator licensee shall be subject to a $1,000 fine
and a mandatory revocation of any license relating to a video gaming
terminal or its operation within the City jurisdictional limits.
(d)
Action to enforce. Whenever any person obligated to remit any
tax as provided in this subsection fails to do so, the City may bring
an action to enforce the payment of such tax in any court of competent
jurisdiction.
(e)
Penalties additional. Any citations issued under this subsection
may be in addition to any other citations or enforcement mechanisms
authorized by or issued pursuant to the City Code.
(5)
Effective date. The push tax shall be effective as of October 19,
2021; provided, however, that the duty of any video gaming licensee
or video gaming operator licensee to collect and remit the push tax
will not commence until Finance Director sends notice to a video gaming
licensee or video gaming operator licensee at the address provided
in the most recent application for such license.
