Sen. Terry Link
Filed: 2/28/2017
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1 | AMENDMENT TO SENATE BILL 7
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2 | AMENDMENT NO. ______. Amend Senate Bill 7, on page 2, line | ||||||
3 | 10, after "water-based facility", by inserting "and airport | ||||||
4 | gaming locations pursuant to Section 1-67 of this Act"; and | ||||||
5 | by replacing line 21 on page 20 through line 22 on page 23 with | ||||||
6 | the following: | ||||||
7 | "Section 1-45. Casino management contracts.
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8 | (a) The Casino Board shall enter into a casino management | ||||||
9 | contract with a casino operator subject to a background | ||||||
10 | investigation and approval by the Gaming Board and payment by | ||||||
11 | the proposed casino operator of a fee of $50,000,000, which | ||||||
12 | shall be deposited into the Gaming Facilities Fee Revenue Fund. | ||||||
13 | The Gaming Board shall complete its background investigation | ||||||
14 | and approval of the casino operator within 6 months after the | ||||||
15 | date that the proposed casino operator submits its application | ||||||
16 | to the Gaming Board. If the Gaming Board does not complete its |
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1 | background investigation and approval within the 6-month | ||||||
2 | period, then the Gaming Board shall give a written explanation | ||||||
3 | to the proposed casino operator and the chief legal officer of | ||||||
4 | the Authority as to why it has not reached a final | ||||||
5 | determination and when it reasonably expects to make a final | ||||||
6 | determination. Validity of the casino management contract is | ||||||
7 | contingent upon the issuance of a casino operator license. If | ||||||
8 | the Gaming Board grants a casino operator license, the Casino | ||||||
9 | Board shall transmit a copy of the executed casino management | ||||||
10 | contract to the Gaming Board. | ||||||
11 | (b) After (1) the Authority has been issued an owners | ||||||
12 | license, (2) the Gaming Board has issued a casino operator | ||||||
13 | license, and (3) the Gaming Board has approved the members of | ||||||
14 | the Casino Board, the Authority may conduct gaming operations | ||||||
15 | at a temporary facility, subject to the adopted rules of the | ||||||
16 | Gaming Board, for no longer than 24 months after gaming | ||||||
17 | operations begin. The Gaming Board may, after holding a public | ||||||
18 | hearing, grant an extension so long as a permanent facility is | ||||||
19 | not operational and the Authority is working in good faith to | ||||||
20 | complete the permanent facility. The Gaming Board may grant | ||||||
21 | additional extensions following further public hearings. Each | ||||||
22 | extension may be for a period of no longer than 6 months."; and | ||||||
23 | on page 27, immediately below line 19, by inserting the | ||||||
24 | following:
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1 | "Section 1-67. Limitations on gaming at Chicago airports. | ||||||
2 | The Authority may conduct gaming operations in an airport under | ||||||
3 | the administration or control of the Chicago Department of | ||||||
4 | Aviation. Gaming operations may be conducted pursuant to this | ||||||
5 | Section so long as (i) gaming operations are conducted in a | ||||||
6 | secured area that is beyond the Transportation Security | ||||||
7 | Administration security checkpoints and only available to | ||||||
8 | airline passengers at least 21 years of age who are members of | ||||||
9 | a private club, and not to the general public, (ii) gaming | ||||||
10 | operations are limited to slot machines, as defined in Section | ||||||
11 | 4 of the Illinois Gambling Act, and (iii) the combined number | ||||||
12 | of gaming positions operating in the City at the airports and | ||||||
13 | at the temporary and permanent casino facility does not exceed | ||||||
14 | the maximum number of gaming positions authorized pursuant to | ||||||
15 | subsection (h) of Section 7 of the Illinois Gambling Act. | ||||||
16 | Gaming operations at an airport are subject to all applicable | ||||||
17 | laws and rules that apply to any other gaming facility under | ||||||
18 | this Act or the Illinois Gambling Act."; and | ||||||
19 | on page 50, line 2, by replacing "Sections 5-45 and 20-10" with | ||||||
20 | "Section 5-45"; and | ||||||
21 | by deleting line 21 on page 55 through line 12 on page 61; and | ||||||
22 | on page 96, by replacing lines 1 through 12 with the following: | ||||||
23 | " (b) The revenues in the Fund shall be used, subject to |
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1 | appropriation, by the Comptroller for the purpose of providing | ||||||
2 | appropriations to the Illinois Gaming Board for the | ||||||
3 | administration and enforcement of the Illinois Gambling Act and | ||||||
4 | the applicable provisions of the Chicago Casino Development | ||||||
5 | Authority Act, with any remaining amounts being transferred to | ||||||
6 | the General Revenue Fund. "; and | ||||||
7 | on page 96, line 14, by replacing " (e) " with " (a) "; and | ||||||
8 | on page 96, line 16, by replacing " (e-25) " with " (h) "; and | ||||||
9 | by replacing line 22 on page 214 through line 6 on page 215 | ||||||
10 | with the following: | ||||||
11 | " (e-1) In awarding standardbred racing dates for calendar | ||||||
12 | year 2018, the Board shall award at least 160 racing dates, and | ||||||
13 | each organization licensee shall average at least 10 races for | ||||||
14 | each racing date awarded. In awarding standardbred racing dates | ||||||
15 | for calendar year 2019, the Board shall award at least 200 | ||||||
16 | racing dates, and each organization licensee shall average at | ||||||
17 | least 11 races for each racing date awarded. In awarding | ||||||
18 | standardbred racing dates for calendar year 2020 and | ||||||
19 | thereafter, the Board shall award at least 260 racing dates, | ||||||
20 | and each organization licensee shall average at least 11 races | ||||||
21 | for each racing date awarded unless a lesser schedule of live | ||||||
22 | racing is a result of an agreement with the organization | ||||||
23 | representing the largest number of standardbred owners, |
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1 | breeders, trainers, drivers, caretakers in the State. | ||||||
2 | Standardbred racing conducted in Sangamon County shall not be | ||||||
3 | considered races under this subsection (e-1). "; and | ||||||
4 | on page 217, by replacing lines 16 through 26 with the | ||||||
5 | following: | ||||||
6 | " (e-4) Notwithstanding the provisions of Section 7.7 of the | ||||||
7 | Illinois Gambling Act or any provision of this Act other than | ||||||
8 | subsections (e-3) and (e-4.5), for each calendar year for which | ||||||
9 | an electronic gaming licensee requests thoroughbred racing | ||||||
10 | dates which results in a number of live races under its | ||||||
11 | organization license that is less than the total number of live | ||||||
12 | races which it conducted in 2016 at its race track facility, | ||||||
13 | the electronic gaming licensee may not conduct electronic | ||||||
14 | gaming for the calendar year of such requested live races. | ||||||
15 | (e-4.1) Notwithstanding the provisions of Section 7.7 of | ||||||
16 | the Illinois Gambling Act or any provision of this Act other | ||||||
17 | than subsections (e-3) and (e-4.5), for each calendar year for | ||||||
18 | which an organization licensee requests racing dates for | ||||||
19 | standardbred racing which results in a number of live races | ||||||
20 | that is less than the total number of live races required in | ||||||
21 | subsection (e-1), the electronic gaming licensee may not | ||||||
22 | conduct electronic gaming for the calendar year of such | ||||||
23 | requested live races. "; and | ||||||
24 | on page 253, line 3, by replacing "or (iii)" with " or (iii) at |
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1 | a track awarded standardbred racing dates in 2018 and | ||||||
2 | thereafter; or (iv) "; and | ||||||
3 | on page 253, line 26, after the period, by inserting " An | ||||||
4 | eligible race track conducting standardbred racing may have up | ||||||
5 | to 9 inter-track wagering locations. "; and | ||||||
6 | on page 309, by deleting lines 7 through 15; and | ||||||
7 | on page 315, by replacing lines 21 through 25 with the | ||||||
8 | following: | ||||||
9 | " (b) If the organization licensee is operating electronic | ||||||
10 | gaming, then, for the 5-year period beginning on the January 1 | ||||||
11 | of the calendar year immediately following the calendar year | ||||||
12 | during which an organization licensee begins conducting | ||||||
13 | electronic gaming operations pursuant to an electronic gaming | ||||||
14 | license issued under the Illinois Gambling Act, the | ||||||
15 | organization licensee shall make capital expenditures, in an | ||||||
16 | amount equal to no less than 50% of the tax credit under this | ||||||
17 | Section, to the improvement and maintenance of the backstretch, | ||||||
18 | including, but not limited to, backstretch barns, dormitories, | ||||||
19 | and services for backstretch workers. Those capital | ||||||
20 | expenditures must be in addition to, and not in lieu of, the | ||||||
21 | capital expenditures made for backstretch improvements in | ||||||
22 | calendar year 2015, as reported to the Board in the | ||||||
23 | organization licensee's application for racing dates and as |
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1 | certified by the Board. The organization licensee is required | ||||||
2 | to annually submit the list and amounts of these capital | ||||||
3 | expenditures to the Board by January 30th of the year following | ||||||
4 | the expenditure. | ||||||
5 | (c) If the organization licensee is operating electronic | ||||||
6 | gaming in accordance with paragraph (b), then, after the 5-year | ||||||
7 | period beginning on January 1 of the calendar year immediately | ||||||
8 | following the calendar year during which an organization | ||||||
9 | licensee begins conducting electronic gaming operations | ||||||
10 | pursuant to an electronic gaming license issued under the | ||||||
11 | Illinois Gambling Act, the organization license is ineligible | ||||||
12 | to receive a tax credit under this Section. "; and | ||||||
13 | on page 322, lines 20 and 21, by replacing " controlled
by the | ||||||
14 | licensee's race track " with " of which the electronic gaming | ||||||
15 | licensee has operating control "; and | ||||||
16 | on page 326, line 23, by replacing "and 7.13" with "7.13, and | ||||||
17 | 25"; and | ||||||
18 | on page 333, immediately below line 18, by inserting the | ||||||
19 | following: | ||||||
20 | " "Wide area progressive system" means a method of linking | ||||||
21 | progressive slot machines or electronic gaming machines across | ||||||
22 | telecommunication lines as part of a network connecting | ||||||
23 | participating facilities. Wide area progressive systems offer |
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1 | a common progressive jackpot at all participating locations and | ||||||
2 | the award of the jackpot is at random. "; and | ||||||
3 | on page 367, line 2, after the period, by inserting " In order | ||||||
4 | to expedite the application process, the Board may establish | ||||||
5 | rules allowing applicants to acquire criminal background | ||||||
6 | checks and financial integrity reviews as part of the initial | ||||||
7 | application process from a list of vendors approved by the | ||||||
8 | Board. "; and | ||||||
9 | on page 370, line 15, after " casino ", by inserting " or in an | ||||||
10 | airport "; and | ||||||
11 | on page 374, line 24, by replacing " 6 months " with " 120 days "; | ||||||
12 | and | ||||||
13 | on page 379, line 8, by replacing " paragraphs (2) through (5) " | ||||||
14 | with " subsection (e) or paragraph (2), (3), (4), or (5) "; and | ||||||
15 | on page 379, line 20, after the period, by inserting " The fees | ||||||
16 | under this subsection (h) shall be deposited into the Gaming | ||||||
17 | Facilities Fee Revenue
Fund. "; and | ||||||
18 | on page 380, lines 14 and 16, by replacing " per gaming | ||||||
19 | position " each time it appears with " per additional gaming | ||||||
20 | position "; and |
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1 | on page 382, by replacing lines 5 through 7 with " 2,000 | ||||||
2 | positions total. "; and | ||||||
3 | on page 385, by replacing lines 15 through 19 with the | ||||||
4 | following: | ||||||
5 | "7.4, or (iii) it will issue an owners license pursuant to an | ||||||
6 | open
and competitive bidding process, as set forth in Section | ||||||
7 | 7.12,
the open and competitive"; and | ||||||
8 | on page 391, by replacing lines 22 and 23 with " required under | ||||||
9 | subsection (k), (v) conduct live racing in accordance with | ||||||
10 | subsections (e-1), (e-2), and (e-3) of Section 20 of the | ||||||
11 | Illinois Horse Racing Act of 1975 or for a licensee that is | ||||||
12 | only "; and | ||||||
13 | on page 392, lines 5 and 6, by deleting " that had an open | ||||||
14 | backstretch in
2009 "; and | ||||||
15 | on page 392, by replacing lines 14 through 18 with " of this Act | ||||||
16 | that apply to owners licensees. "; and | ||||||
17 | on page 394, lines 4 through 6, by deleting " whose electronic
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18 | gaming license originates with an organization licensee that
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19 | conducted live racing in calendar year 2016 "; and |
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1 | on page 394, lines 8 through 10, by deleting " whose electronic
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2 | gaming license originates with an organization licensee that
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3 | conducted live racing in calendar year 2016 "; and | ||||||
4 | on page 397, immediately below line 16, by inserting the | ||||||
5 | following: | ||||||
6 | " (i-5) Under no circumstances shall an electronic gaming | ||||||
7 | licensee conduct electronic gaming at any State or county | ||||||
8 | fair. "; and | ||||||
9 | on page 429, immediately below line 6, by inserting the | ||||||
10 | following: | ||||||
11 | " (a-4.5) Beginning on the first day of the calendar month | ||||||
12 | immediately following 24 months after the effective date of | ||||||
13 | this amendatory Act of the 100th General Assembly and ending on | ||||||
14 | the date gambling operations, commence at a permanent facility | ||||||
15 | with respect to the owners license authorized under paragraph | ||||||
16 | (1) of subsection (e-5) of Section 7 of this Act, a privilege | ||||||
17 | tax is imposed on persons engaged in the business of conducting | ||||||
18 | riverboat or casino gambling or electronic gaming operations, | ||||||
19 | other than licensed managers conducting riverboat gambling | ||||||
20 | operations on behalf of the State, based on the adjusted gross | ||||||
21 | receipts received by such licensee from the gambling games | ||||||
22 | authorized under this Act. The privilege tax shall be the | ||||||
23 | average of the privilege tax, in terms of dollar amounts, | ||||||
24 | calculated pursuant to subsection (a-4) and subsection |
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1 | (a-6). "; and | ||||||
2 | on page 429, by replacing lines 7 through 10 with the | ||||||
3 | following: | ||||||
4 | " (a-5) Beginning on January 1 following the opening of the | ||||||
5 | permanent casino at which gambling operations are conducted | ||||||
6 | pursuant to the Chicago Casino Development Authority Act, a | ||||||
7 | privilege tax is imposed on persons engaged in "; and | ||||||
8 | on page 431, immediately below line 26, by inserting the | ||||||
9 | following: | ||||||
10 | " (a-7) Beginning in the initial adjustment year and through | ||||||
11 | the final adjustment year, if the total obligation imposed | ||||||
12 | pursuant to either subsection (a-5) or (a-6) will result in an | ||||||
13 | owners licensee receiving less after-tax adjusted gross | ||||||
14 | receipts than it received in calendar year 2016, then the total | ||||||
15 | amount of privilege taxes that the owners licensee is required | ||||||
16 | to pay for that calendar year shall be reduced to the extent | ||||||
17 | necessary so that the after-tax adjusted gross receipts in that | ||||||
18 | calendar year equals the after-tax adjusted gross receipts in | ||||||
19 | calendar year 2016, but the privilege tax reduction shall not | ||||||
20 | exceed the annual adjustment cap. If pursuant to this | ||||||
21 | subsection (a-7), the total obligation imposed pursuant to | ||||||
22 | either subsection (a-5) or (a-6) shall be reduced, then the | ||||||
23 | owners licensee shall not receive a refund from the State at | ||||||
24 | the end of the subject calendar year but instead shall be able |
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1 | to apply that amount as a credit against any payments it owes | ||||||
2 | to the State in the following calendar year to satisfy its | ||||||
3 | total obligation under either subsection (a-5) or (a-6). The | ||||||
4 | credit for the final adjustment year shall occur in the | ||||||
5 | calendar year following the final adjustment year. | ||||||
6 | If an owners licensee that conducted gambling operations | ||||||
7 | prior to January 1, 2017 expands its riverboat or casino, | ||||||
8 | including, but not limited to, with respect to its gaming | ||||||
9 | floor, additional non-gaming amenities such as restaurants, | ||||||
10 | bars, and hotels and other additional facilities, and incurs | ||||||
11 | construction and other costs related to such expansion from the | ||||||
12 | effective date of this amendatory Act of the 100th General | ||||||
13 | Assembly until the 5th anniversary of the effective date of | ||||||
14 | this amendatory Act of the 100th General Assembly, then for | ||||||
15 | each $15,000,000 spent for any such construction or other costs | ||||||
16 | related to expansion paid by the owners licensee, the final | ||||||
17 | adjustment year shall be extended by one year and the annual | ||||||
18 | adjustment cap shall increase by 0.2% of adjusted gross | ||||||
19 | receipts during each calendar year until and including the | ||||||
20 | final adjustment year. No further modifications to the final | ||||||
21 | adjustment year or annual adjustment cap shall be made after | ||||||
22 | $75,000,000 is incurred in construction or other costs related | ||||||
23 | to expansion so that the final adjustment year shall not extend | ||||||
24 | beyond the 9th calendar year after the initial adjustment year, | ||||||
25 | not including the initial adjustment year, and the annual | ||||||
26 | adjustment cap shall not exceed 4% of adjusted gross receipts |
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1 | in a particular calendar year. Construction and other costs | ||||||
2 | related to expansion shall include all project related costs, | ||||||
3 | including, but not limited to, all hard and soft costs, | ||||||
4 | financing costs, on or off-site ground, road or utility work, | ||||||
5 | cost of gaming equipment and all other personal property, | ||||||
6 | initial fees assessed for each incremental gaming position, and | ||||||
7 | the cost of incremental land acquired for such expansion. Soft | ||||||
8 | costs shall include, but not be limited to, legal fees, | ||||||
9 | architect, engineering and design costs, other consultant | ||||||
10 | costs, insurance cost, permitting costs, and pre-opening costs | ||||||
11 | related to the expansion, including, but not limited to, any of | ||||||
12 | the following: marketing, real estate taxes, personnel, | ||||||
13 | training, travel and out-of-pocket expenses, supply, | ||||||
14 | inventory, and other costs, and any other project related soft | ||||||
15 | costs. | ||||||
16 | Notwithstanding any other provision of this subsection | ||||||
17 | (a-7), this subsection (a-7) does not apply to an owners | ||||||
18 | licensee unless such owners licensee spends at least | ||||||
19 | $15,000,000 on construction and other costs related to its | ||||||
20 | expansion, excluding the initial fees assessed for each | ||||||
21 | incremental gaming position. | ||||||
22 | This subsection (a-7) does not apply to owners licensees
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23 | authorized pursuant to subsection (e-5) of Section 7 of this
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24 | Act. | ||||||
25 | For purposes of this subsection (a-7): | ||||||
26 | "Initial adjustment year" means the year commencing on |
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1 | January 1 of the calendar year immediately following the | ||||||
2 | earlier of the following: | ||||||
3 | (1) the commencement of gambling operations, either in | ||||||
4 | a temporary or permanent facility, with respect to the | ||||||
5 | owners license authorized under paragraph (1) of | ||||||
6 | subsection (e-5) of Section 7 of this Act; or | ||||||
7 | (2) 36 months after the effective date of this | ||||||
8 | amendatory Act of the 100th General Assembly, provided the | ||||||
9 | initial adjustment year shall not commence earlier than 24 | ||||||
10 | months after the effective date of this amendatory Act of | ||||||
11 | the 100th General Assembly. | ||||||
12 | "Final adjustment year" means the 4th calendar year after | ||||||
13 | the initial adjustment year, not including the initial | ||||||
14 | adjustment year, and as may be extended further as described in | ||||||
15 | this subsection (a-7). | ||||||
16 | "After-tax adjusted gross receipts" means, for calendar | ||||||
17 | year 2016, the adjusted
gross receipts less privilege taxes | ||||||
18 | paid to the State and for
subsequent calendar years, the | ||||||
19 | adjusted gross receipts less
privilege taxes paid to the State, | ||||||
20 | then divided by the owners
licensee's average number of gaming | ||||||
21 | positions operating in that
calendar year and then multiplied | ||||||
22 | by the owners licensee's
average number of gaming positions | ||||||
23 | operating in calendar year
2016. | ||||||
24 | "Annual adjustment cap" means 3% of adjusted gross receipts | ||||||
25 | in a particular calendar year, and as may be increased further | ||||||
26 | as otherwise described in this subsection (a-7). "; and |
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1 | on page 453, immediately below line 2, by inserting the | ||||||
2 | following: | ||||||
3 | "(230 ILCS 10/25 new) | ||||||
4 | Sec. 25. Wide area progressive systems. The operation of a | ||||||
5 | wide area progressive system is permitted in gambling | ||||||
6 | operations authorized under this Act subject to the following | ||||||
7 | conditions: | ||||||
8 | (1) The method of communication over the wide area | ||||||
9 | progressive system must consist of dedicated on-line | ||||||
10 | communication lines or the equivalent, as determined by the | ||||||
11 | Administrator, or wireless communication, which may be | ||||||
12 | subject to certain restrictions imposed by the | ||||||
13 | Administrator. | ||||||
14 | (2) All communication between each facility location | ||||||
15 | and the central system site must be encrypted. | ||||||
16 | (3) The central system site must be located within the | ||||||
17 | State of Illinois and be equipped with a non-interruptible | ||||||
18 | power supply and the central computer must be capable of | ||||||
19 | on-line data redundancy should hard disk peripherals fail | ||||||
20 | during operation. The office containing the central | ||||||
21 | computer shall be equipped with a surveillance system that | ||||||
22 | has been approved by the Administrator. The wide area | ||||||
23 | progressive system provider shall be required to keep and | ||||||
24 | maintain an entry and exit log for the office containing |
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1 | the central computer. The wide area progressive system | ||||||
2 | provider shall provide access to the office containing the | ||||||
3 | central computer to the Administrator and shall make | ||||||
4 | available to the Administrator all books, records, and | ||||||
5 | information required by the Administrator in fulfilling | ||||||
6 | his or her regulatory purpose. | ||||||
7 | (4) A wide area progressive system provider must | ||||||
8 | suspend play on the wide area progressive system if a | ||||||
9 | communication failure of the system cannot be corrected | ||||||
10 | within 24 consecutive hours. | ||||||
11 | (5) Approval by the Board of any wide area progressive | ||||||
12 | system shall occur only after the Administrator has | ||||||
13 | reviewed the wide area progressive system software and | ||||||
14 | hardware and is satisfied that the operation of the system | ||||||
15 | meets accepted industry standards for wide area | ||||||
16 | progressive system products, as well as any other | ||||||
17 | requirements that the Administrator may impose to ensure | ||||||
18 | the integrity, security, and legal operation of the wide | ||||||
19 | area progressive system. | ||||||
20 | (6) A meter that shows the amount of the common | ||||||
21 | progressive jackpot must be conspicuously displayed at or | ||||||
22 | near the machines to which the jackpot applies. The common | ||||||
23 | progressive jackpot meter need not precisely show the | ||||||
24 | actual moneys in the common progressive jackpot award at | ||||||
25 | each instant. Nothing shall prohibit the use of an odometer | ||||||
26 | or other paced updating progressive display to show updates |
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1 | to the jackpot. When a paced updating display is used and | ||||||
2 | the remote site is communicating to the central computer, | ||||||
3 | the common progressive jackpot meter must display the | ||||||
4 | winning value after the jackpot broadcast is received from | ||||||
5 | the central system. If a common progressive jackpot is | ||||||
6 | recognized in the middle of a systemwide poll cycle, the | ||||||
7 | common progressive jackpot display may contain a value less | ||||||
8 | than the aggregated amount calculated by the central | ||||||
9 | system. The fund values from the remaining portion of the | ||||||
10 | poll cycle shall be received by the central system, but not | ||||||
11 | the local site, in which case the common progressive | ||||||
12 | jackpot amount paid shall always be the higher of the 2 | ||||||
13 | reporting amounts. | ||||||
14 | (7) When a common progressive jackpot is won, the wide | ||||||
15 | area progressive system provider shall have the | ||||||
16 | opportunity to inspect the machine, storage media, the | ||||||
17 | error events received by the central system, and any other | ||||||
18 | data which could reasonably be used to ascertain the | ||||||
19 | validity of the jackpot. | ||||||
20 | (A) The central system shall produce reports that | ||||||
21 | clearly demonstrate the method of arriving at the | ||||||
22 | payoff amount. This shall include the funds | ||||||
23 | contributed beginning with the polling cycle | ||||||
24 | immediately following the previous jackpot and all | ||||||
25 | funds contributed up to and including the polling cycle | ||||||
26 | that includes the jackpot signal. Funds contributed to |
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1 | and registered by the system before the jackpot message | ||||||
2 | is received shall be deemed to have been contributed to | ||||||
3 | the progressive amount prior to the current jackpot. | ||||||
4 | Funds contributed to the system subsequent to the | ||||||
5 | jackpot message's being received, as well as funds | ||||||
6 | contributed to the system before the jackpot message is | ||||||
7 | received by the system but registered after the jackpot | ||||||
8 | message is received at the system, shall be deemed to | ||||||
9 | have been contributed to the progressive amount of the | ||||||
10 | next jackpot. | ||||||
11 | (B) The common progressive jackpot may be | ||||||
12 | disbursed in periodic payments as long as each machine | ||||||
13 | clearly displays the fact that the jackpot shall be | ||||||
14 | paid in such periodic payments. In addition, the number | ||||||
15 | of periodic payments and time between payments must be | ||||||
16 | clearly displayed on the slot machine in a | ||||||
17 | non-misleading manner. | ||||||
18 | (C) A wide area progressive system provider must, | ||||||
19 | upon request, supply to the Board reports that support | ||||||
20 | and verify the economic activity of the system. | ||||||
21 | (8) In calculating adjusted gross revenue, a facility | ||||||
22 | may deduct its pro rata share of the present value of any | ||||||
23 | common progressive jackpots awarded. The deduction shall | ||||||
24 | be listed on the detailed accounting records provided by | ||||||
25 | the wide area progressive system provider. A facility's pro | ||||||
26 | rata share is based on the number of funds in from that |
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1 | facility's machines on the wide area progressive system, | ||||||
2 | compared to the total amount of funds in on the whole | ||||||
3 | system for the time period between jackpots awarded. | ||||||
4 | (9) In the event a facility ceases operations and a | ||||||
5 | progressive jackpot is awarded subsequent to the last day | ||||||
6 | of the final month of operation, the facility may not file | ||||||
7 | an amended wagering tax submission or make a claim for a | ||||||
8 | wagering tax refund based on its contributions to that | ||||||
9 | particular progressive prize pool. | ||||||
10 | (10) A facility, or an entity that is licensed as a | ||||||
11 | manufacturer or distributor, shall provide the wide area | ||||||
12 | progressive system in accordance with a written agreement | ||||||
13 | that shall be reviewed and approved by the Board prior to | ||||||
14 | offering the jackpots. | ||||||
15 | (11) The payment of any common progressive jackpot | ||||||
16 | offered on a wide area progressive system shall be | ||||||
17 | administered by the wide area progressive system provider, | ||||||
18 | and the provider shall have primary liability for payment | ||||||
19 | of any common progressive jackpot the person administers. | ||||||
20 | (12) A wide area progressive system provider shall | ||||||
21 | comply with the following: | ||||||
22 | (A) A reserve shall be established and maintained | ||||||
23 | by the provider of the wide area progressive system in | ||||||
24 | an amount of not less than the sum of the following | ||||||
25 | amounts: | ||||||
26 | (i) the present value of the aggregate |
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1 | remaining balances owed on all jackpots previously | ||||||
2 | won by patrons on the wide area progressive system; | ||||||
3 | (ii) the present value of the amount currently | ||||||
4 | reflected on the jackpot meters of the wide area | ||||||
5 | progressive system; and | ||||||
6 | (iii) the present value of one additional | ||||||
7 | reset of the wide area progressive system. | ||||||
8 | (B) The reserve shall continue to be maintained | ||||||
9 | until all payments owed to winners of the common | ||||||
10 | progressive jackpots have been made. | ||||||
11 | (C) For common progressive jackpots disbursed in | ||||||
12 | periodic payments, any qualified investment shall be | ||||||
13 | purchased within 90 days following notice of the win of | ||||||
14 | the common progressive jackpot, and a copy of such | ||||||
15 | qualified investment shall be provided to the Board | ||||||
16 | within 30 days of purchase. Any qualified investment | ||||||
17 | shall have a surrender value at maturity and shall have | ||||||
18 | a maturity date prior to the date the periodic jackpot | ||||||
19 | payment is required to be made. | ||||||
20 | (D) The person authorized to provide the wide area | ||||||
21 | progressive system shall not be permitted to sell, | ||||||
22 | trade, or otherwise dispose of any qualified | ||||||
23 | investments prior to their maturity unless approval to | ||||||
24 | do so is first obtained from the Board. | ||||||
25 | (E) Upon becoming aware of an event of | ||||||
26 | noncompliance with the terms of the reserve |
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1 | requirement mandated by subparagraph (A) in this | ||||||
2 | paragraph (12), the wide area progressive system | ||||||
3 | provider must immediately notify the Board of such | ||||||
4 | event. An event of noncompliance includes a | ||||||
5 | non-payment of a jackpot periodic payment or a | ||||||
6 | circumstance which may cause the wide area progressive | ||||||
7 | system provider to be unable to fulfill, or which may | ||||||
8 | otherwise impair the person's ability to satisfy, the | ||||||
9 | person's jackpot payment obligations. | ||||||
10 | (F) On a quarterly basis, the wide area progressive | ||||||
11 | system provider must deliver to the Board a calculation | ||||||
12 | of system reserves required under subparagraph (A) in | ||||||
13 | this paragraph (12). The calculation shall come with a | ||||||
14 | certification of financial compliance signed by a duly | ||||||
15 | authorized financial officer of the wide area | ||||||
16 | progressive system provider, on a form prescribed by | ||||||
17 | the Board, validating the calculation. | ||||||
18 | (13) For common progressive jackpots disbursed in | ||||||
19 | periodic payments, subsequent to the date of the win, a | ||||||
20 | winner may be offered the option to receive, in lieu of | ||||||
21 | periodic payments, a discounted single cash payment in the | ||||||
22 | form of a qualified prize option, as that term is defined | ||||||
23 | in Section 451(h) of the Internal Revenue Code of 1986. The | ||||||
24 | wide area progressive system provider shall calculate the | ||||||
25 | single cash payment based on the discount rate. Until the | ||||||
26 | new discount rate becomes effective, the discount rate |
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1 | selected by the wide area progressive system provider shall | ||||||
2 | be used to calculate the single cash payment for all | ||||||
3 | qualified prizes that occur subsequent to the date of the | ||||||
4 | selected discount rate. "; and | ||||||
5 | on page 453, line 4, after "5,", by inserting "20,"; and | ||||||
6 | on page 453, line 4, after "80", by inserting "and by adding | ||||||
7 | Section 90"; and | ||||||
8 | on page 457, immediately below line 5, by inserting the | ||||||
9 | following: | ||||||
10 | "(230 ILCS 40/20)
| ||||||
11 | Sec. 20. Direct dispensing of receipt tickets only. A video | ||||||
12 | gaming
terminal may not
directly dispense coins, cash, tokens, | ||||||
13 | or any other article of exchange or
value except for receipt | ||||||
14 | tickets. Tickets shall be dispensed by
pressing the ticket | ||||||
15 | dispensing button on the video gaming terminal at the end
of | ||||||
16 | one's turn or play. The ticket shall indicate the total amount | ||||||
17 | of credits
and the cash award, the time of day in a 24-hour | ||||||
18 | format showing hours and
minutes, the date, the
terminal serial | ||||||
19 | number, the sequential number of the ticket, and an encrypted
| ||||||
20 | validation number from which the validity of the prize may be | ||||||
21 | determined.
The player shall turn in this ticket to the | ||||||
22 | appropriate
person at the licensed establishment, licensed |
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| |||||||
1 | truck stop establishment, licensed fraternal establishment,
or
| ||||||
2 | licensed veterans establishment
to receive the cash award. The | ||||||
3 | cost
of the credit shall be one cent, 5 cents, 10 cents, or 25 | ||||||
4 | cents, and the maximum
wager played per hand shall not exceed | ||||||
5 | $4 $2 .
No cash award for the maximum wager on any
individual | ||||||
6 | hand shall exceed $1,199, except in the case of a wide area | ||||||
7 | progressive system, as defined in the Illinois Gambling Act, | ||||||
8 | which shall have no limits for cash awards $500 .
| ||||||
9 | (Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.)"; | ||||||
10 | and | ||||||
11 | on page 468, immediately below line 25, by inserting the | ||||||
12 | following: | ||||||
13 | "(230 ILCS 40/90 new) | ||||||
14 | Sec. 90. Wide area progressive systems. The operation of a | ||||||
15 | wide area progressive system, as defined in the Illinois | ||||||
16 | Gambling Act, is permitted, subject to the provisions of the | ||||||
17 | Illinois Gambling Act, and the following conditions: | ||||||
18 | (1) Licensed terminal operators and manufacturer or | ||||||
19 | supplier licensees may operate one or more wide area | ||||||
20 | progressive systems in licensed establishments, licensed | ||||||
21 | truck stop establishments, licensed veterans | ||||||
22 | establishments, and licensed fraternal establishments. A | ||||||
23 | designated portion of a player's wager may be allocated to | ||||||
24 | the jackpot. The jackpot may be awarded to a player on any |
| |||||||
| |||||||
1 | of the video gaming terminals that are linked to the wide | ||||||
2 | area progressive system. | ||||||
3 | (2) A wide area progressive system shall at all times | ||||||
4 | be installed and operated in accordance with relevant | ||||||
5 | requirements of this Act and technical standards of wide | ||||||
6 | area progressive systems. | ||||||
7 | (3) A wide area progressive system shall be operated | ||||||
8 | and administered by participating licensees in accordance | ||||||
9 | with the terms and conditions of a written approved policy, | ||||||
10 | which must be submitted in writing and approved by the | ||||||
11 | Board prior to implementation and must comply with this Act | ||||||
12 | and technical standards of wide area progressive systems. | ||||||
13 | (4) Approved policies must address: | ||||||
14 | (A) responsibility for the funding and payment of | ||||||
15 | all jackpots, fees, and taxes associated with the | ||||||
16 | operation of the wide area progressive system; | ||||||
17 | (B) control and operation of the computer | ||||||
18 | monitoring room required under paragraph (5); and | ||||||
19 | (C) other requirements in the technical standards | ||||||
20 | on wide area progressive systems. | ||||||
21 | (5) A wide area progressive system shall be controlled | ||||||
22 | and operated from a computer monitoring room. The computer | ||||||
23 | monitoring room must: | ||||||
24 | (A) be under the sole possession and control of, | ||||||
25 | and maintained and operated by, employees of the | ||||||
26 | licensee designated in the approved policy for that |
| |||||||
| |||||||
1 | system; the employees of the licensee may be required | ||||||
2 | to obtain a terminal handler license if the Board | ||||||
3 | determines, after a review of the work being performed, | ||||||
4 | the employees require a license or permit for the | ||||||
5 | protection of the integrity of gaming; | ||||||
6 | (B) have its monitoring equipment subjected to | ||||||
7 | surveillance coverage either by the surveillance | ||||||
8 | system of a licensee or by a dedicated surveillance | ||||||
9 | system maintained by the terminal operator; | ||||||
10 | (C) be accessible through a locked door; the door | ||||||
11 | must be alarmed in a manner that audibly signals the | ||||||
12 | surveillance monitoring room for the surveillance | ||||||
13 | system elected under subparagraph (B) of this | ||||||
14 | paragraph (5); and | ||||||
15 | (D) have a computer monitoring room entry log. | ||||||
16 | This Section shall not be construed to impact the maximum | ||||||
17 | wager as set forth in this Act. ".
|