97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB2487

 

Introduced 10/12/2011, by Sen. Michael Noland

 

SYNOPSIS AS INTRODUCED:
 
230 ILCS 10/7  from Ch. 120, par. 2407
230 ILCS 10/7.6
230 ILCS 10/11.2

    Provides that, if and only if Senate Bill 744 of the 97th General Assembly becomes law, then the Illinois Gambling Act is amended (1) to require the Illinois Gaming Board to award owners licenses to applicants whose plans (i) generate the highest amount of revenue to the State and (ii) provide for the least amount of cannibalization of existing licensees' revenues generated pursuant to this Act; (2) to condition the approval of relocation to a new home dock location for a licensee that was not conducting riverboat gambling on January 1, 1998 upon the determination that the new home dock provides for the least amount of cannibalization of an existing licensee's revenues; and (3) to provide that to be eligible to conduct electronic gaming, a person, firm, or corporation having operating control of a race track must provide for the least amount of cannibalization of existing licensees' revenues generated pursuant to the Act. Effective upon becoming law or on the date Senate Bill 744 of the 97th General Assembly takes effect, whichever is later.


LRB097 12566 ASK 57051 b

 

 

A BILL FOR

 

SB2487LRB097 12566 ASK 57051 b

1    AN ACT concerning gaming.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 10. If and only if Senate Bill 744 of the 97th
5General Assembly becomes law as amended by House Amendments
6Nos. 1, 2, 3, 4, 5, 6, and 7, then the Illinois Gambling Act is
7amended by changing Sections 7, 7.6, and 11.2 as follows:
 
8    (230 ILCS 10/7)  (from Ch. 120, par. 2407)
9    Sec. 7. Owners Licenses.
10    (a) The Board shall issue owners licenses to persons, firms
11or corporations which apply for such licenses upon payment to
12the Board of the non-refundable license fee set by the Board,
13upon payment of a $25,000 license fee for the first year of
14operation and a $5,000 license fee for each succeeding year and
15upon a determination by the Board that the applicant is
16eligible for an owners license pursuant to this Act and the
17rules of the Board. A single person, firm, corporation, or
18licensed owner shall be permitted to hold at least 5 owners
19licenses, casino operator licenses, or electronic gaming
20licenses, or any combination thereof. From the effective date
21of this amendatory Act of the 95th General Assembly until (i) 3
22years after the effective date of this amendatory Act of the
2395th General Assembly, (ii) the date any organization licensee

 

 

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1begins to operate a slot machine or video game of chance under
2the Illinois Horse Racing Act of 1975 or this Act, (iii) the
3date that payments begin under subsection (c-5) of Section 13
4of the Act, (iv) the wagering tax imposed under Section 13 of
5this Act is increased by law to reflect a tax rate that is at
6least as stringent or more stringent than the tax rate
7contained in subsection (a-3) of Section 13, or (v) when an
8owners licensee holding a license issued pursuant to Section
97.1 of this Act begins conducting gaming, whichever occurs
10first, as a condition of licensure and as an alternative source
11of payment for those funds payable under subsection (c-5) of
12Section 13 of this Act, any owners licensee that holds or
13receives its owners license on or after the effective date of
14this amendatory Act of the 94th General Assembly, other than an
15owners licensee operating a riverboat with adjusted gross
16receipts in calendar year 2004 of less than $200,000,000, must
17pay into the Horse Racing Equity Trust Fund, in addition to any
18other payments required under this Act, an amount equal to 3%
19of the adjusted gross receipts received by the owners licensee.
20The payments required under this Section shall be made by the
21owners licensee to the State Treasurer no later than 3:00
22o'clock p.m. of the day after the day when the adjusted gross
23receipts were received by the owners licensee. A person, firm
24or corporation is ineligible to receive an owners license if:
25        (1) the person has been convicted of a felony under the
26    laws of this State, any other state, or the United States;

 

 

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1        (2) the person has been convicted of any violation of
2    Article 28 of the Criminal Code of 1961, or substantially
3    similar laws of any other jurisdiction;
4        (3) the person has submitted an application for a
5    license under this Act which contains false information;
6        (4) the person is a member of the Board;
7        (5) a person defined in (1), (2), (3) or (4) is an
8    officer, director or managerial employee of the firm or
9    corporation;
10        (6) the firm or corporation employs a person defined in
11    (1), (2), (3) or (4) who participates in the management or
12    operation of gambling operations authorized under this
13    Act;
14        (7) (blank); or
15        (8) a license of the person, firm or corporation issued
16    under this Act, or a license to own or operate gambling
17    facilities in any other jurisdiction, has been revoked.
18    The Board is expressly prohibited from making changes to
19the requirement that licensees make payment into the Horse
20Racing Equity Trust Fund without the express authority of the
21Illinois General Assembly and making any other rule to
22implement or interpret this amendatory Act of the 95th General
23Assembly. For the purposes of this paragraph, "rules" is given
24the meaning given to that term in Section 1-70 of the Illinois
25Administrative Procedure Act.
26    (b) In determining whether to grant an owners license to an

 

 

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1applicant, the Board shall consider:
2        (1) the character, reputation, experience and
3    financial integrity of the applicants and of any other or
4    separate person that either:
5            (A) controls, directly or indirectly, such
6        applicant, or
7            (B) is controlled, directly or indirectly, by such
8        applicant or by a person which controls, directly or
9        indirectly, such applicant;
10        (2) the facilities or proposed facilities for the
11    conduct of gambling;
12        (3) the highest prospective total revenue to be derived
13    by the State from the conduct of gambling;
14        (4) the extent to which the ownership of the applicant
15    reflects the diversity of the State by including minority
16    persons, females, and persons with a disability and the
17    good faith affirmative action plan of each applicant to
18    recruit, train and upgrade minority persons, females, and
19    persons with a disability in all employment
20    classifications;
21        (5) the financial ability of the applicant to purchase
22    and maintain adequate liability and casualty insurance;
23        (6) whether the applicant has adequate capitalization
24    to provide and maintain, for the duration of a license, a
25    riverboat or casino;
26        (7) the extent to which the applicant exceeds or meets

 

 

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1    other standards for the issuance of an owners license which
2    the Board may adopt by rule;
3        (8) the amount of the applicant's license bid;
4        (9) the extent to which the applicant or the proposed
5    host municipality plans to enter into revenue sharing
6    agreements with communities other than the host
7    municipality and the terms of those agreements; and
8        (10) the extent to which the ownership of an applicant
9    includes the most qualified number of minority persons,
10    females, and persons with a disability.
11    (c) Each owners license shall specify the place where the
12casino shall operate or the riverboat shall operate and dock.
13    (d) Each applicant shall submit with his application, on
14forms provided by the Board, 2 sets of his fingerprints.
15    (e) In addition to any licenses authorized under subsection
16(e-5) of this Section, the Board may issue up to 10 licenses
17authorizing the holders of such licenses to own riverboats. In
18the application for an owners license, the applicant shall
19state the dock at which the riverboat is based and the water on
20which the riverboat will be located. The Board shall issue 5
21licenses to become effective not earlier than January 1, 1991.
22Three of such licenses shall authorize riverboat gambling on
23the Mississippi River, or, with approval by the municipality in
24which the riverboat was docked on August 7, 2003 and with Board
25approval, be authorized to relocate to a new location, in a
26municipality that (1) borders on the Mississippi River or is

 

 

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1within 5 miles of the city limits of a municipality that
2borders on the Mississippi River and (2), on August 7, 2003,
3had a riverboat conducting riverboat gambling operations
4pursuant to a license issued under this Act; one of which shall
5authorize riverboat gambling from a home dock in the city of
6East St. Louis. One other license shall authorize riverboat
7gambling on the Illinois River in Tazewell County or, with
8approval by a municipality in which such riverboat was docked
9on January 1, 2010 and with Board approval, shall authorize the
10riverboat to relocate to a new location that is no more than 10
11miles away from its original location, in a municipality that
12(1) borders on the Illinois River or is within 5 miles of the
13city limits of a municipality that borders on the Illinois
14River and (2) on January 1, 2010, had a riverboat conducting
15riverboat gambling operations pursuant to a license issued
16under this Act. The Board shall issue one additional license to
17become effective not earlier than March 1, 1992, which shall
18authorize riverboat gambling on the Des Plaines River in Will
19County. The Board may issue 4 additional licenses to become
20effective not earlier than March 1, 1992. In determining the
21water upon which riverboats will operate, the Board shall
22consider the economic benefit which riverboat gambling confers
23on the State, and shall seek to assure that all regions of the
24State share in the economic benefits of riverboat gambling.
25    The Board shall award owners licenses to applicants whose
26plans (i) generate the highest amount of revenue to the State

 

 

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1and (ii) provide for the least amount of cannibalization of
2existing licensees', including electronic gaming licensees',
3revenues generated pursuant to this Act. For the purposes of
4this subsection (e), "cannibalization" means the diversion of
5revenues generated pursuant to this Act from existing
6licensees, including electronic gaming licensees, by an owners
7licensee authorized under this subsection (e). In determining
8whether cannibalization exists, the Board shall also consider
9the extent to which the applicant can attract from market areas
10of neighboring states.
11    In granting all licenses, the Board may give favorable
12consideration to economically depressed areas of the State, to
13applicants presenting plans which provide for significant
14economic development over a large geographic area, and to
15applicants who currently operate non-gambling riverboats in
16Illinois. The Board shall review all applications for owners
17licenses, and shall inform each applicant of the Board's
18decision. The Board may grant an owners license to an applicant
19that has not submitted the highest license bid, but if it does
20not select the highest bidder, the Board shall issue a written
21decision explaining why another applicant was selected and
22identifying the factors set forth in this Section that favored
23the winning bidder.
24    (e-5) In addition to licenses authorized under subsection
25(e) of this Section, the Board may issue the following
26licenses:

 

 

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1        (1) One owners license authorizing the conduct of
2    casino gambling in the City of Chicago.
3        (2) One owners license authorizing the conduct of
4    riverboat gambling in the City of Danville.
5        (3) One owners license authorizing the conduct of
6    riverboat or casino gambling located in the City of Park
7    City.
8        (4) One owners license authorizing the conduct of
9    riverboat gambling in the City of Rockford.
10        (5) One owners license authorizing the conduct of
11    riverboat gambling in a municipality that is located in one
12    of the following townships of Cook County: Bloom, Bremen,
13    Calumet, Rich, Thornton, or Worth Township.
14    (e-6) The Board shall consider issuing a license pursuant
15to subsection (e-5) only after the corporate authority of the
16municipality in which the casino or riverboat shall be located
17has certified to the Board the following:
18        (1) that the applicant has negotiated with the
19    corporate authority in good faith;
20        (2) that the applicant and the corporate authority have
21    mutually agreed on the permanent location of the casino or
22    riverboat;
23        (3) that the applicant and the corporate authority have
24    mutually agreed on the temporary location of the casino or
25    riverboat;
26        (4) that the applicant and the corporate authority have

 

 

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1    mutually agreed on the percentage of revenues that will be
2    shared with the municipality, if any; and
3        (5) that the applicant and the corporate authority have
4    mutually agreed on any zoning, licensing, public health, or
5    other issues that are within the jurisdiction of the
6    municipality.
7At least 7 days before the corporate authority of a
8municipality submits a certification to the Board concerning
9items (1) through (6) of this subsection, it shall hold a
10public hearing to discuss items (1) through (6), as well as any
11other details concerning the proposed riverboat or casino in
12the municipality. The corporate authority must subsequently
13memorialize the details concerning the proposed riverboat or
14casino in a resolution that must be adopted by a majority of
15the corporate authority before any certification is sent to the
16Board. The Board shall not alter, amend, change, or otherwise
17interfere with any agreement between the applicant and the
18corporate authority of the municipality regarding the location
19of any temporary or permanent facility.
20    (e-10) The licenses authorized under subsection (e-5) of
21this Section shall be issued within 12 months after the
22effective date of this amendatory Act of the 97th General
23Assembly. The fee for the issuance or renewal of a license
24issued pursuant to this subsection (e-10) shall be $100,000.
25Additionally, a licensee located outside of Cook County shall
26pay an initial fee of $12,500 per gaming position, and a

 

 

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1licensee located in Cook County shall pay $25,000 per gaming
2position. The initial fees payable under this subsection (e-10)
3shall be deposited into the Gaming Facilities Fee Revenue Fund.
4    (e-15) Each licensee of a license authorized under
5subsection (e-5) of this Section shall make a reconciliation
6payment 4 years after the date the licensee begins operating in
7an amount equal to 75% of the adjusted gross receipts for the
8most lucrative 12-month period of operations, minus an amount
9equal to the initial $12,500 or $25,000 initial payment per
10gaming position, whichever was the initial amount paid by the
11specific licensee. If this calculation results in a negative
12amount, then the licensee is not entitled to any reimbursement
13of fees previously paid. This reconciliation payment may be
14made in installments over a period of no more than 5 years,
15subject to Board approval. Any installment payments shall
16include an annual market interest rate as determined by the
17Board. All payments by licensees under this subsection (e-15)
18shall be deposited into the Gaming Facilities Fee Revenue Fund.
19    (e-20) In addition to any other revocation powers granted
20to the Board under this Act, the Board may revoke the owners
21license of a licensee which fails to begin conducting gambling
22within 15 months of receipt of the Board's approval of the
23application if the Board determines that license revocation is
24in the best interests of the State.
25    (e-25) The provisions of this subsection (e-25) apply only
26to an owners licensee of a license issued or re-issued pursuant

 

 

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1to Section 7.1 of this Act and if the owners licensee was found
2preliminarily suitable or suitable by the Board prior to the
3effective date of this amendatory Act of the 97th General
4Assembly. The owners licensee shall pay (i) a $100,000 fee for
5the issuance or renewal of its license and (ii) an initial fee
6of $25,000 per gaming position in place of, and not in addition
7to, the initial fee required under subsection (h) of this
8Section. Additionally, the owners licensee shall make a
9reconciliation payment on July 1, 2016 in an amount equal to
1075% of the average annual adjusted gross receipts, minus an
11amount equal to the $25,000 initial payment per gaming
12position. If this calculation results in a negative amount,
13then the owners licensee is not entitled to any reimbursement
14of fees previously paid. This reconciliation payment may be
15made in installments over a period of no more than 5 years,
16subject to Board approval. Any installment payments shall
17include an annual market interest rate as determined by the
18Board. All payments by licensees under this subsection (e-25)
19shall be deposited into the Gaming Facilities Fee Revenue Fund.
20For any payments required under this Section 7, the owners
21licensee shall receive (i) a credit for any amounts that the
22owners licensee has paid to the State or the Board or their
23agents prior to November 1, 2010 for consultants, licensing
24fees, up-front fees, or other items and (ii) a credit for the
25payments that the unit of local government has pledged to remit
26to the State, which shall be equal to the present value of such

 

 

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1payments as determined by the Board in its decision dated
2January 14, 2009. An owners licensee subject to this subsection
3(e-25) shall only pay the initial fees required pursuant to
4this subsection and shall not have to pay any initial fees or
5payments that were ordered by the Board prior to November 1,
62010. However, any payments that have been made by an owners
7licensee subject to this subsection (e-25) to the State or to
8the Board or their agents shall remain with the State and the
9owners licensee shall receive a credit as specified in this
10subsection (e-25).
11    In the event the owners licensee has made payments on or
12after November 1, 2010 but prior to the effective date of this
13amendatory Act of the 97th General Assembly to the State or the
14Board or their agents towards the amount it bid during the
15selection process to receive its owners license, then such
16payments shall be refunded to the owners licensee. The refund
17shall be in the form of a credit, which shall offset taxes due
18under Section 12 and Section 13 in the amount of such prior
19payments to the State or the Board or their agents as such
20taxes under Section 12 and Section 13 become due, and which
21credit shall be in addition to any other credit granted in this
22subsection (e-25) and elsewhere in the Illinois Gambling Act.
23If any credit granted in this subsection (e-25) is not fully
24utilized in any given year, then the remainder shall be carried
25forward to subsequent years until such credit has been fully
26utilized. Consistent with the provisions contained in this

 

 

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1subsection (e-25), the owners licensee shall be treated as
2having paid the amount of taxes due under Sections 12 and 13
3without reduction for the credit granted in this subsection
4(e-25), and the amount of such credit shall be considered a
5refund of the owners licensee bid amount as such credit is
6utilized.
7    (f) The first 10 owners licenses issued under this Act
8shall permit the holder to own up to 2 riverboats and equipment
9thereon for a period of 3 years after the effective date of the
10license. Holders of the first 10 owners licenses must pay the
11annual license fee for each of the 3 years during which they
12are authorized to own riverboats.
13    (g) Upon the termination, expiration, or revocation of each
14of the first 10 licenses, which shall be issued for a 3 year
15period, all licenses are renewable annually upon payment of the
16fee and a determination by the Board that the licensee
17continues to meet all of the requirements of this Act and the
18Board's rules. However, for licenses renewed on or after May 1,
191998, renewal shall be for a period of 4 years, unless the
20Board sets a shorter period. Notwithstanding any provision in
21this subsection (g) to the contrary, any license that is
22awarded to the Chicago Casino Development Authority shall not
23expire, but it shall be subject to the provisions of this Act
24and the rules of the Board.
25    (h) An owners license, except for an owners license issued
26under subsection (e-5) of this Section, shall entitle the

 

 

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1licensee to own up to 2 riverboats.
2    An owners licensee of a casino or riverboat that is located
3in the City of Chicago pursuant to subsection (e-5) of this
4Section shall limit the number of gaming positions to 4,000 for
5such owners. All other licensees shall limit the number of
6gaming positions to 1,600 for any such owners license prior to
7January 1, 2013 and 2,000 gaming positions on or after January
81, 2013. The initial fee for each gaming position obtained on
9or after the effective date of this amendatory Act of the 97th
10General Assembly shall be $12,500 for licensees not located in
11Cook County and $25,000 for licensees located in Cook County,
12in addition to the reconciliation payment, as set forth in
13subsections (e-15), (e-25), or (h-5) of this Section.
14    A licensee may operate both of its riverboats concurrently,
15provided that the total number of gaming positions on both
16riverboats does not exceed 1,600 prior to January 1, 2013 and
172,000 on or after January 1, 2013. Riverboats licensed to
18operate on the Mississippi River and the Illinois River south
19of Marshall County shall have an authorized capacity of at
20least 500 persons. Any other riverboat licensed under this Act
21shall have an authorized capacity of at least 400 persons.
22    (h-5) An owners licensee who conducted gambling operations
23prior to January 1, 2011 and purchases positions under
24subsection (h) of this Section on or after the effective date
25of this amendatory Act of the 97th General Assembly must pay an
26initial fee of $12,500 per gaming position if the licensee is

 

 

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1located outside Cook County and an initial fee of $25,000 per
2gaming position if the licensee is located in Cook County, as
3stated in subsection (h) of this Section. These initial fees
4shall be deposited into the Gaming Facilities Fee Revenue Fund.
5Additionally, that owners licensee shall make a reconciliation
6payment 4 years after any additional gaming positions
7authorized by subsection (h) begin operating in an amount equal
8to 75% of the owners licensee's average gross receipts for the
9most lucrative 12-month period of operations minus an amount
10equal to $12,500 or $25,000 that the owners licensee paid per
11additional gaming position. For purposes of this subsection
12(h-5), "average gross receipts" means (i) the increase in
13adjusted gross receipts for the most lucrative 12-month period
14of operations over the adjusted gross receipts for 2011,
15multiplied by (ii) the percentage derived by dividing the
16number of additional gaming positions that an owners licensee
17had purchased pursuant to subsection (h) by the total number of
18gaming positions operated by the owners licensee. If this
19calculation results in a negative amount, then the owners
20licensee is not entitled to any reimbursement of fees
21previously paid. This reconciliation payment may be made in
22installments over a period of no more than 5 years, subject to
23Board approval. Any installment payments shall include an
24annual market interest rate as determined by the Board. These
25reconciliation payments shall be deposited into the Gaming
26Facilities Fee Revenue Fund.

 

 

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1    (h-10) Any positions that are not purchased by a licensed
2owner as of January 1, 2016 shall be forfeited and retained by
3the Board and shall be offered in equal amounts to licensed
4owners who have purchased all of the positions that were
5offered. This process shall continue until all positions have
6been purchased. All positions obtained pursuant to this process
7must be in operation within 18 months after they were obtained
8or the licensed owner forfeits the right to operate all of the
9positions, but is not entitled to a refund of any fees paid.
10    The Board may, after holding a public hearing, grant
11extensions so long as a licensed owner is working in good faith
12to make the positions operational. The extension may be for a
13period of 6 months. If, after the period of the extension, a
14licensed owner has not made the positions operational, then
15another public hearing must be held by the Board before it may
16grant another extension.
17    (i) A licensed owner is authorized to apply to the Board
18for and, if approved therefor, to receive all licenses from the
19Board necessary for the operation of a riverboat or a casino,
20including a liquor license, a license to prepare and serve food
21for human consumption, and other necessary licenses. All use,
22occupation and excise taxes which apply to the sale of food and
23beverages in this State and all taxes imposed on the sale or
24use of tangible personal property apply to such sales aboard
25the riverboat or in the casino.
26    (j) The Board may issue or re-issue a license authorizing a

 

 

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1riverboat to dock in a municipality or approve a relocation
2under Section 11.2 only if, prior to the issuance or
3re-issuance of the license or approval, the governing body of
4the municipality in which the riverboat will dock has by a
5majority vote approved the docking of riverboats in the
6municipality. The Board may issue or re-issue a license
7authorizing a riverboat to dock in areas of a county outside
8any municipality or approve a relocation under Section 11.2
9only if, prior to the issuance or re-issuance of the license or
10approval, the governing body of the county has by a majority
11vote approved of the docking of riverboats within such areas.
12    (k) An owners licensee may conduct land-based gambling
13operations upon approval by the Board.
14    (l) An owners licensee may conduct gaming at a temporary
15facility pending the construction of a permanent facility or
16the remodeling or relocation of an existing facility to
17accommodate gaming participants for up to 24 months after the
18temporary facility begins to conduct gaming. Upon request by an
19owners licensee and upon a showing of good cause by the owners
20licensee, the Board shall extend the period during which the
21licensee may conduct gaming at a temporary facility by up to 12
22months. The Board shall make rules concerning the conduct of
23gaming from temporary facilities.
24(Source: P.A. 95-1008, eff. 12-15-08; 96-1392, eff. 1-1-11;
2509700SB0744ham001, ham006, and ham007.)
 

 

 

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1    (230 ILCS 10/7.6)
2    Sec. 7.6. Electronic gaming.
3    (a) The General Assembly finds that the horse racing and
4riverboat gambling industries share many similarities and
5collectively comprise the bulk of the State's gaming industry.
6One feature common to both industries is that each is highly
7regulated by the State of Illinois. The General Assembly
8further finds, however, that despite their shared features each
9industry is distinct from the other in that horse racing is and
10continues to be intimately tied to Illinois' agricultural
11economy and is, at its core, a spectator sport. This
12distinction requires the General Assembly to utilize different
13methods to regulate and promote the horse racing industry
14throughout the State. The General Assembly finds that in order
15to promote live horse racing as a spectator sport in Illinois
16and the agricultural economy of this State, it is necessary to
17allow electronic gaming at Illinois race tracks as an ancillary
18use given the success of other states in increasing live racing
19purse accounts and improving the quality of horses
20participating in horse race meetings.
21    (b) The Illinois Gaming Board shall award one electronic
22gaming license to each person, firm, or corporation having
23operating control of a race track that applies under Section 56
24of the Illinois Horse Racing Act of 1975, subject to the
25application and eligibility requirements of this Section.
26Within 60 days after the effective date of this amendatory Act

 

 

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1of the 97th General Assembly, a person, firm, or corporation
2having operating control of a race track may submit an
3application for an electronic gaming license, except that the
4Illinois State Fairgrounds Racetrack Authority may submit an
5application for an electronic gaming license at any time after
6the effective date of this amendatory Act of the 97th General
7Assembly. The application shall specify the number of gaming
8positions the applicant intends to use and the place where the
9electronic gaming facility will operate.
10    The Board shall determine within 120 days after receiving
11an application for an electronic gaming license, whether to
12grant an electronic gaming license to the applicant. If the
13Board does not make a determination within that time period,
14then the Board shall give a written explanation to the
15applicant as to why it has not reached a determination and when
16it reasonably expects to make a determination.
17    The electronic gaming licensee shall purchase up to the
18amount of electronic gaming positions authorized under this Act
19within 120 days after receiving its electronic gaming license.
20If an electronic gaming licensee is prepared to purchase the
21electronic gaming positions, but is temporarily prohibited
22from doing so by order of a court of competent jurisdiction or
23the Board, then the 120-day period is tolled until a resolution
24is reached.
25    An electronic gaming license shall authorize its holder to
26conduct electronic gaming at its race track at the following

 

 

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1times:
2        (1) On days when it conducts live racing at the track
3    where its electronic gaming facility is located, from 8:00
4    a.m. until 3:00 a.m. on the following day.
5        (2) On days when it is scheduled to conduct simulcast
6    wagering on races run in the United States, from 8:00 a.m.
7    until 3:00 a.m. on the following day.
8    Additionally, the Board may extend these days of operation
9and hours upon request by an organization licensee as the Board
10sees fit.
11    A license to conduct electronic gaming and any renewal of
12an electronic gaming license shall authorize electronic gaming
13for a period of 4 years. The fee for the issuance or renewal of
14an electronic gaming license shall be $100,000.
15    (c) To be eligible to conduct electronic gaming, a person,
16firm, or corporation having operating control of a race track
17must (i) obtain an electronic gaming license, (ii) hold an
18organization license under the Illinois Horse Racing Act of
191975, (iii) hold an inter-track wagering license, (iv) pay an
20initial fee of $25,000 per gaming position from electronic
21gaming licensees where electronic gaming is conducted in Cook
22County and $12,500 for electronic gaming licensees where
23electronic gaming is located outside of Cook County before
24beginning to conduct electronic gaming plus make the
25reconciliation payment required under subsection (i), (v)
26conduct at least 240 live races at each track per year, (vi)

 

 

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1meet the requirements of subsection (a) of Section 56 of the
2Illinois Horse Racing Act of 1975, (vii) for organization
3licensees conducting standardbred race meetings that had an
4open backstretch in 2009, keep backstretch barns and
5dormitories open and operational year-round unless a lesser
6schedule is mutually agreed to by the organization licensee and
7the horsemen's association racing at that organization
8licensee's race meeting, (viii) for organization licensees
9conducting thoroughbred race meetings, the organization
10licensee must maintain accident medical expense liability
11insurance coverage of $1,000,000 for jockeys, and (ix) meet all
12other requirements of this Act that apply to owners licensees,
13and (x) provide for the least amount of cannibalization of
14existing licensees', including owners licensees', revenues
15generated pursuant to this Act. For the purposes of this
16subsection (c), "cannibalization" means the diversion of
17revenues generated pursuant to this Act from existing
18licensees, including owners licensees, by an owners licensee
19authorized under this Act. In determining whether
20cannibalization exists, the Board shall also consider the
21extent to which the applicant can attract from market areas of
22neighboring states. Only those persons, firms, or corporations
23(or its successors or assigns) that had operating control of a
24race track and held an inter-track wagering license authorized
25by the Illinois Racing Board in 2009 are eligible, except that
26this provision shall not apply to the Illinois State

 

 

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1Fairgrounds Racetrack Authority.
2    An electronic gaming license may enter into a joint venture
3with a licensed owner to own, manage, conduct, or otherwise
4operate the electronic gaming licensee's electronic gaming
5facilities, unless the electronic gaming licensee has a parent
6company or other affiliated company that is, directly or
7indirectly, wholly owned by a parent company that is also
8licensed to conduct electronic gaming, casino gaming, or their
9equivalent in another state.
10    All payments by licensees under this subsection (c) shall
11be deposited into the Gaming Facilities Fee Revenue Fund.
12    (d) The Board may approve electronic gaming positions
13statewide as provided in this Section. The authority to operate
14electronic gaming positions under this Section shall be
15allocated as follows: up to 1,200 gaming positions for any
16electronic gaming licensee in Cook County and up to 900 gaming
17positions for any electronic gaming licensee outside of Cook
18County.
19    (e) Any positions that are not obtained by an organization
20licensee, other than the Illinois State Fairgrounds Racetrack
21Authority, shall be retained by the Gaming Board and shall be
22offered in equal amounts to organization licensees who have
23purchased all of the positions that were offered. This process
24shall continue until all positions have been purchased. All
25positions obtained pursuant to this process must be in
26operation within 18 months after they were obtained or the

 

 

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1organization licensee forfeits the right to operate all of the
2positions, but is not entitled to a refund of any fees paid.
3The Board may, after holding a public hearing, grant extensions
4so long as an organization licensee is working in good faith to
5begin conducting electronic gaming. The extension may be for a
6period of 6 months. If, after the period of the extension, a
7licensee has not begun to conduct electronic gaming, another
8public hearing must be held by the Board before it may grant
9another extension.
10    (f) Subject to the approval of the Illinois Gaming Board,
11an electronic gaming licensee may make modification or
12additions to any existing buildings and structures to comply
13with the requirements of this Act. The Illinois Gaming Board
14shall make its decision after consulting with the Illinois
15Racing Board. In no case, however, shall the Illinois Gaming
16Board approve any modification or addition that alters the
17grounds of the organizational licensee such that the act of
18live racing is an ancillary activity to electronic gaming.
19Electronic gaming may take place in existing structures where
20inter-track wagering is conducted at the race track or a
21facility within 300 yards of the race track in accordance with
22the provisions of this Act and the Illinois Horse Racing Act of
231975.
24    (g) An electronic gaming licensee may conduct electronic
25gaming at a temporary facility pending the construction of a
26permanent facility or the remodeling or relocation of an

 

 

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1existing facility to accommodate electronic gaming
2participants for up to 24 months after the temporary facility
3begins to conduct electronic gaming. Upon request by an
4electronic gaming licensee and upon a showing of good cause by
5the electronic gaming licensee, the Board shall extend the
6period during which the licensee may conduct electronic gaming
7at a temporary facility by up to 12 months. The Board shall
8make rules concerning the conduct of electronic gaming from
9temporary facilities.
10    Electronic gaming may take place in existing structures
11where inter-track wagering is conducted at the race track or a
12facility within 300 yards of the race track in accordance with
13the provisions of this Act and the Illinois Horse Racing Act of
141975. Any electronic gaming conducted at a permanent facility
15within 300 yards of the race track in accordance with this Act
16and the Illinois Horse Racing Act of 1975 shall have an
17all-weather egress connecting the electronic gaming facility
18and the race track facility or, on days and hours of live
19racing, a complimentary shuttle service between the permanent
20electronic gaming facility and the race track facility and
21shall not charge electronic gaming participants an additional
22admission fee to the race track facility.
23    (h) The Illinois Gaming Board must adopt emergency rules in
24accordance with Section 5-45 of the Illinois Administrative
25Procedure Act as necessary to ensure compliance with the
26provisions of this amendatory Act of the 97th General Assembly

 

 

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1concerning electronic gaming. The adoption of emergency rules
2authorized by this subsection (h) shall be deemed to be
3necessary for the public interest, safety, and welfare.
4    (i) Each electronic gaming licensee who obtains electronic
5gaming positions must make a reconciliation payment 4 years
6after the date the electronic gaming licensee begins operating
7the positions in an amount equal to 75% of the difference
8between its adjusted gross receipts from electronic gaming and
9amounts paid to its purse accounts pursuant to item (1) of
10subsection (b) of Section 56 of the Illinois House Racing Act
11of 1975 for the 12-month period for which such difference was
12the largest, minus an amount equal to the initial $25,000 or
13$12,500 per electronic gaming position initial payment. If this
14calculation results in a negative amount, then the electronic
15gaming licensee is not entitled to any reimbursement of fees
16previously paid. This reconciliation payment may be made in
17installments over a period of no more than 5 years, subject to
18Board approval. Any installment payments shall include an
19annual market interest rate as determined by the Board.
20    All payments by licensees under this subsection (i) shall
21be deposited into the Gaming Facilities Fee Revenue Fund.
22    (j) As soon as practical after a request is made by the
23Illinois Gaming Board, to minimize duplicate submissions by the
24applicant, the Illinois Racing Board must provide information
25on an applicant for an electronic gaming license to the
26Illinois Gaming Board.

 

 

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1    (k) Subject to the approval of the Illinois Gaming Board,
2an organization licensee that has received an electronic gaming
3license under this Act and has operating control of a race
4track facility located in Cook County may relocate its race
5track facility as follows:
6        (1) the organization licensee may relocate within a
7    3-mile radius of its existing race track facility so long
8    as the organization licensee remains in Cook County and
9    submits its plan to construct a new structure to conduct
10    electronic gaming operations; and
11        (2) the organization licensee may not relocate within a
12    5-mile radius of a riverboat if the owners license was
13    issued prior to December 31, 2011.
14The relocation must include the race track facility, including
15the race track operations used to conduct live racing and the
16electronic gaming facility in its entirety. For the purposes of
17this subsection (k), "race track facility" means all operations
18conducted on the race track property for which it was awarded a
19license for pari-mutuel wagering and live racing in the year
202010, except for the real estate itself. The Illinois Gaming
21Board shall make its decision after consulting with the
22Illinois Racing Board, and any relocation application shall be
23subject to all of the provisions of this Act and the Illinois
24Horse Racing Act of 1975.
25(Source: 09700SB0744ham001.)
 

 

 

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1    (230 ILCS 10/11.2)
2    Sec. 11.2. Relocation of riverboat home dock.
3    (a) A licensee that was not conducting riverboat gambling
4on January 1, 1998 may apply to the Board for renewal and
5approval of relocation to a new home dock location authorized
6under Section 3(c) upon renewal of the license and the Board
7shall grant the application and approval (i) upon receipt by
8the licensee of approval from the new municipality or county,
9as the case may be, in which the licensee wishes to relocate
10pursuant to Section 7(j) and (ii) upon the determination that
11the new home dock provides for the least amount of
12cannibalization, as defined in subsection (e) of Section 7, of
13an existing licensee's revenues generated pursuant to this Act.
14    (b) Any licensee that relocates its home dock pursuant to
15this Section shall attain a level of at least 20% minority
16person and female ownership, at least 16% and 4% respectively,
17within a time period prescribed by the Board, but not to exceed
1812 months from the date the licensee begins conducting gambling
19at the new home dock location. The 12-month period shall be
20extended by the amount of time necessary to conduct a
21background investigation pursuant to Section 6. For the
22purposes of this Section, the terms "female" and "minority
23person" have the meanings provided in Section 2 of the Business
24Enterprise for Minorities, Females, and Persons with
25Disabilities Act.
26(Source: P.A. 91-40, eff. 6-25-99.)
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law or on the date Senate Bill 744 of the 97th General
3Assembly takes effect, whichever is later.