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Bill

Bill

SB 4019

VIDEO GAMING TERMINAL PAYOUTS

104th Regular Session Introduced by Bill Cunningham

Standardizes payout devices and eliminates ticket handoffs to streamline cash-outs at all licensed video gaming locations.

Rule 2-10 Committee/3rd Reading Deadline Established As May 22, 2026
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Bill Summary · SB 4019

Summary of SB 4019 (104th Illinois General Assembly)

Purpose and intent

SB 4019 amends the Illinois Video Gaming Act to modify how payouts from video gaming terminals are conducted and to update related definitions. The bill aims to standardize payout procedures across licensed establishments (including truck stops, fraternal and veterans establishments) and to adjust monetary limits and rounding rules for cash awards and credits.

Key provisions and changes

  • Payout device requirement: Each location where video gaming terminals are available (licensed establishments, truck stops, large truck stops, fraternal establishments, and veterans establishments) must have a payout device approved by the Illinois Gaming Board (IGB).

  • Elimination of ticket handoffs for payouts: Replaces the prior process requiring players to turn in a physical payout ticket to receive cash with a streamlined system tied to the approved payout device.

  • Maximum cash award limits and IRS thresholds:

    • The maximum cash award for the maximum wager on any individual hand must not exceed the W-2G reporting requirements set by the IRS (the bill references replacing an older $1,199 threshold with the IRS threshold).
    • The maximum cash award for a jackpot (progressive or otherwise) remains capped at $10,000.
  • Credit and denomination rules:

    • The cost of credit remains set at one cent, 5 cents, 10 cents, 25 cents, or $1.
    • Cash awards must be issued in denominations rounded to the nearest 5-cent credit, with rounding up or down as appropriate.
  • In-location bonus jackpots:

    • In-location bonus jackpot games are authorized.
    • The Board must adopt emergency rules within 90 days of the act’s effective date to implement these provisions (Section 5-45 APA process).
    • Jackpot winnings from in-location progressive games must be paid to players within 3 days after winning.
  • Definitions clarified/updated: The bill updates several defined terms in the Video Gaming Act, including “Electronic card,” “Electronic voucher,” “Net terminal income,” “Video gaming terminal,” and various types of licensed establishments and participants (manufacturers, distributors, suppliers, terminal operators, licensed technicians, etc.). These definitions are designed to support the updated payout framework and operational responsibilities.

Who is affected

  • Licensed establishments where video gaming terminals operate (bars, restaurants, etc.).
  • Licensed truck stop establishments and large truck stop establishments.
  • Licensed fraternal and veterans establishments.
  • Terminal operators, distributors, manufacturers, suppliers, and licensed technicians involved in video gaming.
  • Players who use video gaming terminals at these locations.

Procedural and timeline aspects

  • The act requires the IGB to approve payout devices at each location.
  • For in-location bonus jackpots, the Board must issue emergency rules within 90 days after the act’s effective date (emergency rulemaking under the Illinois Administrative Procedure Act).
  • Payment timelines for in-location progressive jackpots require payout within 3 days of jackpot victory.

Practical impact

  • Potential simplification of cash-out processes for players due to elimination of ticket turn-ins.
  • Introduction of standardized payout devices across eligible venues.
  • Updated compliance framework aligning with IRS W-2G thresholds for large cash awards.
  • Acceleration of jackpot payout timelines for in-location progressives.
  • New operational and administrative requirements for venues and gaming operators to obtain approval for payout devices and to implement emergency-rule-driven in-location bonus jackpots.

Compiled from official sources — confirm details with the bill’s official record.

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