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HB 3729

VIDEO GAMING-VARIOUS

104th Regular Session Introduced by Bob Rita

The bill bans compensation tied to terminal profits or NTI, restricts NTI sharing, bars incentives, and freezes certain use agreements to curb improper terminal placement and induc

House Floor Amendment No. 3 Rule 19(c) / Re-referred to Rules Committee
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Bill Summary · HB 3729

Summary of HB 3729 (Video Gaming - VARIOUS)

Overview

HB 3729 is a bill in the Illinois General Assembly that modifies the Video Gaming Act. Introduced on February 18, 2025 by Rep. Robert “Bob” Rita, the bill aims to restrict financial arrangements between terminal operators, sales agents/brokers, and licensed establishments, and to limit certain inducements and use agreements related to the placement and operation of video gaming terminals. The measure has progressed through committee hearings and, as of the latest status, is under Rule 19(a) with a re-referral to the Rules Committee.

What the bill changes (Key Provisions)

  • Prohibition on compensation based on profits or net income:
    • Terminal operators may not compensate a sales agent or broker based on:
    • a percentage of after-tax profits from a video gaming terminal,
    • net terminal income (NTI) from a terminal,
    • NTI attributed to licensed establishments,
    • or any other compensation metric tied to terminal performance in licensed establishments.
  • Restrictions on sharing NTI:
    • Terminal operators are prohibited from entering into contracts or agreements that share, split, or otherwise pay NTI with any other person.
  • Pre-2025 contracts on NTI sharing:
    • Contracts executed before January 1, 2025 for sharing NTI cannot be amended, modified, or extended.
  • Board-approved exceptions:
    • A terminal operator may enter into NTI-sharing arrangements with another person only if approved by the Illinois Gaming Board (IGB).
  • Sales agents/brokers and incentives:
    • Sales agents/brokers may not give anything of value to current or potential licensed establishments as an incentive.
    • A sales agent or broker who is not an owner of a terminal operator cannot solicit or procure a use agreement (or other contract that controls or authorizes terminal placement/operation) for a licensed establishment if they are an immediate family member of a direct or indirect owner, officer, director, manager, employee, or other person who significantly influences or controls the establishment.
  • Use agreements and term limits:
    • Any existing use agreement authorizing placement/operation of video gaming may remain valid through the end of its current term but cannot be amended, modified, extended, or renewed after the amendatory act’s effective date.
  • Incentives to establishments:
    • Current or potential licensed establishments may not accept anything of value from a terminal operator or a sales agent/broker as an incentive to locate video gaming terminals.
  • Definitions and scope:
    • The bill provides formal definitions for key terms (e.g., Board, Net Terminal Income, Video Gaming Terminal, Licensed Establishment, Terminal Operator, Distributor, Supplier, Licensed Technician, etc.) to clarify who or what is subject to these rules.

Who is affected

  • Terminal Operators: Entities that own, service, maintain, or place video gaming terminals in licensed establishments.
  • Sales Agents and Brokers: Intermediaries who market terms, contracts, or use agreements related to terminal placement; the bill tightens compensation, incentives, and conflict-of-interest rules.
  • Licensed Establishments: Bars, restaurants, or other venues licensed to serve alcohol where video gaming terminals are placed; establishments are limited in receiving incentives and must avoid improper inducements.
  • Illinois Gaming Board (IGB): The agency responsible for approving exceptions to NTI-sharing arrangements and enforcing the new restrictions.

Procedural and timeline notes

  • Introduced: February 18, 2025.
  • First readings and committee actions: Filed Feb 18, 2025; assigned to Gaming Committee (Feb 7, 2025 data shown) with a subsequent path through hearings (e.g., Do Pass in Gaming Committee on March 19, 2025).
  • Status updates:
    • Read first time: March 26, 2025.
    • Referred to Public Health (same date) and then Rule 19(a) / Re-referred to Rules Committee (April 11, 2025).
  • The bill’s effective date and implementation specifics would be set in the amendatory act’s final language; use agreements existing at the act’s effective date generally may persist only through their current term.

Additional context

  • The bill also contains broader definitional clarifications for terms used in the Video Gaming Act to ensure consistent application of the new restrictions.
  • The overarching aim is to reduce financial incentives and arrangements that may improperly influence where video gaming terminals are placed and how establishments engage with terminal operators and intermediaries.

If you’d like, I can provide a side-by-side comparison with the current Video Gaming Act to highlight every substantive delta.

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

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