DEFINITIONS FOR VIDEO GAMING LICENSE APPLICATIONS

For the purposes of all video gaming license applications and disclosure forms, the following terms shall have the following meanings:

Act: The Illinois Video Gaming Act.

Administrator: The chief executive officer responsible for the day-to-day operations of the Illinois Gaming Board.

Affiliate: An Affiliate of a person is a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such 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.

Amusement Machine Route Operation: An operation which involves the installation, operation, and/or service of vending machines, coin-operated amusement devices, and/or Gaming Equipment in retail stores and other establishments including, but not limited to, Convenience Stores, bars, restaurants, liquor stores, Veterans Organizations, Fraternal Organizations, and truck stops.

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: (i) Illinois laws, regulations, and requirements as codified or otherwise set forth; and (ii) 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 or agreement.

Beneficiary: Person for whose current, contingent or future benefit property is held in Trust.

Best of its Knowledge or Best of My Knowledge: One's knowledge after substantial inquiry.

Board: The Illinois Gaming Board.

Business Entity: A partnership, incorporated or unincorporated association or group, firm, corporation, limited liability company, partnership for shares, Trust, Sole Proprietorship or other business enterprise.

Contingent Beneficiary: Person designated by Grantor to receive benefit of property held in Trust if the primary Beneficiary is unable or unwilling to take it.

Control(s): The possession, direct or indirect, of the power to direct or cause the direction of the management, operation or policies of an Individual or Business Entity, whether through the ownership of voting securities, by contract, or otherwise.

Convenience Store: A retail store that is open long hours, sells motor fuel, and a limited selection of snacks and general goods.

Debt Instrument: Any bond, loan, mortgage, Trust deed, note, debenture, subordination, guaranty, letter of credit, Security Agreement, surety agreement, pledge, chattel mortgage or form of indebtedness.

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.

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.

Game: A gambling activity which 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 any Game.

Gaming Equipment: A machine, mechanism, device or implement which effects the result of a Game by determining win or loss, including without limitation electronic, electrical, or mechanical devices or machines, software, cards, or dice, and any representative of value used with any Game, including without limitation chips, tokens, or electronic debit cards and related hardware and software.

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.

Gaming-related: Anything related to the dealing, operating, carrying on, conducting, transporting, maintaining or exposing for play of any Game.

Grantor: The settlor or creator of a Trust.

Illinois Resident:
(1) With respect to an Individual, an Individual who is either: (i) domiciled in Illinois or maintains a bona fide place of abode in Illinois; or (ii) is required to file an Illinois tax return during the taxable year.
(2) 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.
(3) 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.
(4) With respect to an irrevocable Trust, a Trust where the grantor was an Illinois resident individual at the time such Trust became irrevocable.

Immediate Family: Spouse (other than a spouse who is legally separated from the Individual under a decree of divorce or separate maintenance), parents, grandparents, siblings, children and grandchildren, step-children, whether by blood, marriage, or adoption.

Indirect Interest: An interest in a Business Entity that is deemed to be held by an Applicant or a licensee not through the Applicant's or licensee's actual holdings in the Business Entity, but through the Applicant's or licensee's holdings in other Business Entities.

Individual: Any natural person.

Institutional Investor: (1) a retirement fund administered by a public agency for the exclusive benefit of federal, state, or local public employees; (2) an investment company registered under Section 8 the Investment Company Act of 1940; (3) a collective investment trust organized by a bank under Part 9 of the Rules of the Comptroller of the Currency; (4) a closed end investment trust registered with the United States Securities and Exchange Commission; (5) a chartered or licensed life insurance company or property and casualty insurance company; (6) a federal or state bank; (7) an investment advisor registered under the Investment Advisors Act of 1940; or (8) such other person as the Illinois Gaming Board may determine for reasons consistent with the Act and Adopted Rules.

Licensed Fraternal Establishment: A location licensed under the Act where a qualified Fraternal Organization that derives its charter from a national Fraternal Organization regularly meets.

Licensed Retail Establishment: A location licensed under the Act where alcoholic liquor is drawn, poured, mixed, or otherwise served for consumption on the premises. Licensed Retail Establishment does not include a Licensed Fraternal Establishment, Licensed Veterans Establishment, or a Licensed Truck Stop Establishment.

Licensed Technician: An individual who is licensed under the Act to repair, service, and maintain Video Gaming Terminals.

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 the Act.

Licensed Truck Stop Establishment: a facility licensed under the Act (i) that is at least a 3-acre facility with a convenience store, (ii) with separate diesel islands for fueling commercial motor vehicles, (iii) that sells at retail more than 10,000 gallons of diesel or biodiesel fuel per month, and (iv) with parking spaces for commercial motor vehicles as defined in Section 18b-101 of the Illinois Vehicle Code. The requirement of item (iii) of this paragraph may be met by showing that estimated future sales or past sales average at least 10,000 gallons per month.

Licensed Veterans Establishment: A 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 Retail Establishment, Licensed Fraternal Establishment, Licensed Veterans Establishment, or Licensed Truck Stop Establishment.

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 which effects or could effect the result of a Game played on the device.

Manage: To exercise executive, administrative, and/or supervisory direction.

Manufacturer: An individual, partnership, corporation, or limited liability company that is licensed under the Act and that manufactures or assembles Video Gaming Terminals.

Nominee: Any Individual or Business Entity that holds as owner of record the legal title to tangible or an intangible personality 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 or its behalf with respect to such 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.

Person with Significant Influence and Control:
(1) Each person in whose name the Liquor License is maintained for each Licensed Video Gaming Location;
(2) Each person who, in the opinion of the Administrator, has the ability to Influence or Control the activities of the Applicant or licensee, or elect a majority of its board of directors, other than a bank or other licensed lending institution that holds a mortgage or other lien, or any other source of funds, acquired in the ordinary course of business; or
(3) Persons having the power to exercise significant influence or control over decisions concerning any part of the Applicant's or licensee's Video Gaming Operation.

Public Official: An Individual who is elected to office pursuant to Illinois statute, or who is appointed to an office which is established under and the qualifications and duties of which are prescribed by Illinois statute to discharge a public duty for the state or any of its political subdivisions.

Publicly Held Company: A company that has filed a registration statement with the Securities and Exchange Commission and its shares are traded on a national stock exchange.

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 his or her own name owns 100% of the assets and who is solely liable for the debts of a business.

Substantial Owner: The holder of at least 25% of the total combined voting power of a corporation or at least 25% of the total value of shares of all classes of stock of a corporation; or at least 25% interest in a partnership; or at least 25% of the value of a Trust computed actuarially; or at least 25% of the legal or beneficial interest in any other Business Entity. For purposes of computing the forgoing percentages, a holder shall be deemed to own any stock or other interest in a Business Entity, whether owned as a direct or Indirect Interest.

Successor Trustee: A Trustee who succeeds an earlier Trustee.

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 Terminal Operators.

Terminal Operator: An Individual, partnership, corporation, or limited liability company that is licensed under the Act and that owns, services, and maintains Video Gaming Terminals for placement in Licensed Video Gaming Locations.

Truck Stop Establishment: a facility (i) that is at least a 3-acre facility with a convenience store, (ii) with separate diesel islands for fueling commercial motor vehicles, (iii) that sells at retail more than 10,000 gallons of diesel or biodiesel fuel per month, and (iv) with parking spaces for commercial motor vehicles as defined in Section 18b-101 of the Illinois Vehicle Code. The requirement of item (iii) of this paragraph may be met by showing that estimated future sales or past sales average at least 10,000 gallons per month.

Trust: a property interest held by one person (the Trustee) at the request of another (the Grantor) for the benefit of a third party (the Beneficiary).

Trustee: Person who holds legal title to property in a Trust for the benefit of the Beneficiaries of the Trust.

Use Agreement: A contractual agreement between a Terminal Operator and a Licensed Video Gaming Location establishing terms and conditions for placement and operation of Video Gaming Terminals by the Terminal Operator within the premises of the Licensed Video Gaming Location.

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.

Video Gaming Equipment: Video Gaming Terminals, Associated Video Gaming Equipment, and Major Components or Parts.

Video Gaming Manager: the employee or owner who will primarily Manage, oversee or be responsible for the Video Gaming Operation and the coordination of such with a Terminal Operator and/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: An 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.