093_HB3039
LRB093 11027 LRD 11699 b
1 AN ACT in relation to gambling.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Riverboat Gambling Act is amended by
5 changing Sections 7 and 13 as follows:
6 (230 ILCS 10/7) (from Ch. 120, par. 2407)
7 Sec. 7. Owners Licenses.
8 (a) The Board shall issue owners licenses to persons,
9 firms or corporations which apply for such licenses upon
10 payment to the Board of the non-refundable license fee set by
11 the Board, upon payment of a $25,000 license fee for the
12 first year of operation and a $5,000 license fee for each
13 succeeding year and upon a determination by the Board that
14 the applicant is eligible for an owners license pursuant to
15 this Act and the rules of the Board. A person, firm or
16 corporation is ineligible to receive an owners license if:
17 (1) the person has been convicted of a felony under
18 the laws of this State, any other state, or the United
19 States;
20 (2) the person has been convicted of any violation
21 of Article 28 of the Criminal Code of 1961, or
22 substantially similar laws of any other jurisdiction;
23 (3) the person has submitted an application for a
24 license under this Act which contains false information;
25 (4) the person is a member of the Board;
26 (5) a person defined in (1), (2), (3) or (4) is an
27 officer, director or managerial employee of the firm or
28 corporation;
29 (6) the firm or corporation employs a person
30 defined in (1), (2), (3) or (4) who participates in the
31 management or operation of gambling operations authorized
-2- LRB093 11027 LRD 11699 b
1 under this Act;
2 (7) (blank); or
3 (8) a license of the person, firm or corporation
4 issued under this Act, or a license to own or operate
5 gambling facilities in any other jurisdiction, has been
6 revoked.
7 (b) In determining whether to grant an owners license to
8 an applicant, the Board shall consider:
9 (1) the character, reputation, experience and
10 financial integrity of the applicants and of any other or
11 separate person that either:
12 (A) controls, directly or indirectly, such
13 applicant, or
14 (B) is controlled, directly or indirectly, by
15 such applicant or by a person which controls,
16 directly or indirectly, such applicant;
17 (2) the facilities or proposed facilities for the
18 conduct of riverboat gambling;
19 (3) the highest prospective total revenue to be
20 derived by the State from the conduct of riverboat
21 gambling;
22 (4) the good faith affirmative action plan of each
23 applicant to recruit, train and upgrade minorities in all
24 employment classifications;
25 (5) the financial ability of the applicant to
26 purchase and maintain adequate liability and casualty
27 insurance;
28 (6) whether the applicant has adequate
29 capitalization to provide and maintain, for the duration
30 of a license, a riverboat; and
31 (7) the extent to which the applicant exceeds or
32 meets other standards for the issuance of an owners
33 license which the Board may adopt by rule.
34 (c) Each owners license shall specify the place where
-3- LRB093 11027 LRD 11699 b
1 riverboats shall operate and dock.
2 (d) Each applicant shall submit with his application, on
3 forms provided by the Board, 2 sets of his fingerprints.
4 (e) In addition to any licenses authorized under
5 subsection (e-5), the Board may issue up to 10 licenses
6 authorizing the holders of such licenses to own riverboats.
7 In the application for an owners license, the applicant shall
8 state the dock at which the riverboat is based and the water
9 on which the riverboat will be located. The Board shall
10 issue 5 licenses to become effective not earlier than January
11 1, 1991. Three of such licenses shall authorize riverboat
12 gambling on the Mississippi River, one of which shall
13 authorize riverboat gambling from a home dock in the city of
14 East St. Louis, and one of which shall authorize riverboat
15 gambling on the Mississippi River or in a municipality that
16 (1) borders on the Mississippi River or is within 5 miles of
17 the city limits of a municipality that borders on the
18 Mississippi River and (2) on the effective date of this
19 amendatory Act of the 92nd General Assembly has a riverboat
20 conducting riverboat gambling operations pursuant to a
21 license issued under this Act. One other license shall
22 authorize riverboat gambling on the Illinois River south of
23 Marshall County. The Board shall issue one additional
24 license to become effective not earlier than March 1, 1992,
25 which shall authorize riverboat gambling on the Des Plaines
26 River in Will County. The Board may issue 4 additional
27 licenses to become effective not earlier than March 1, 1992.
28 In determining the water upon which riverboats will operate,
29 the Board shall consider the economic benefit which riverboat
30 gambling confers on the State, and shall seek to assure that
31 all regions of the State share in the economic benefits of
32 riverboat gambling.
33 In granting all licenses, the Board may give favorable
34 consideration to economically depressed areas of the State,
-4- LRB093 11027 LRD 11699 b
1 to applicants presenting plans which provide for significant
2 economic development over a large geographic area, and to
3 applicants who currently operate non-gambling riverboats in
4 Illinois. The Board shall review all applications for owners
5 licenses, and shall inform each applicant of the Board's
6 decision.
7 (e-5) In addition to licenses authorized under
8 subsection (e), the Board may issue one owners license to
9 authorizing the conduct of riverboat gambling operations from
10 a home dock in the City of East St. Louis. The ownership of a
11 license issued under this subsection (e-5) shall be
12 constituted of at least 51% minority person ownership and at
13 least 25% local person ownership. For the purposes of this
14 subsection (e-5), the term "minority person" has the meaning
15 provided in Section 2 of the Business Enterprise for
16 Minorities, Females, and Persons with Disabilities Act and
17 the term "local person" means a person whose primary
18 residence is in Madison or St. Clair County or a corporation
19 or firm that has its primary place of business in Madison or
20 St. Clair County.
21 (e-10) The Board may revoke the owners license of a
22 licensee which fails to begin conducting gambling within 15
23 months of receipt of the Board's approval of the application
24 if the Board determines that license revocation is in the
25 best interests of the State.
26 (f) The first 10 Owners licenses issued under this Act
27 shall permit the holder to own up to 2 riverboats and
28 equipment thereon for a period of 3 years after the effective
29 date of the license. Holders of the first 10 owners licenses
30 must pay the annual license fee for each of the 3 years
31 during which they are authorized to own riverboats.
32 (g) Upon the termination, expiration, or revocation of
33 each owners license of the first 10 licenses, which shall be
34 issued for a 3 year period, all licenses are renewable
-5- LRB093 11027 LRD 11699 b
1 annually upon payment of the fee and a determination by the
2 Board that the licensee continues to meet all of the
3 requirements of this Act and the Board's rules. However, for
4 licenses renewed on or after May 1, 1998, renewal shall be
5 for a period of 4 years, unless the Board sets a shorter
6 period.
7 (h) An owners license shall entitle the licensee to own
8 up to 2 riverboats. A licensee shall limit the number of
9 gambling participants to 1,200 for any such owners license. A
10 licensee may operate both of its riverboats concurrently,
11 provided that the total number of gambling participants on
12 both riverboats does not exceed 1,200. Riverboats licensed to
13 operate on the Mississippi River and the Illinois River south
14 of Marshall County shall have an authorized capacity of at
15 least 500 persons. Any other riverboat licensed under this
16 Act shall have an authorized capacity of at least 400
17 persons.
18 (i) A licensed owner is authorized to apply to the Board
19 for and, if approved therefor, to receive all licenses from
20 the Board necessary for the operation of a riverboat,
21 including a liquor license, a license to prepare and serve
22 food for human consumption, and other necessary licenses.
23 All use, occupation and excise taxes which apply to the sale
24 of food and beverages in this State and all taxes imposed on
25 the sale or use of tangible personal property apply to such
26 sales aboard the riverboat.
27 (j) The Board may issue a license authorizing a
28 riverboat to dock in a municipality or approve a relocation
29 under Section 11.2 only if, prior to the issuance of the
30 license or approval, the governing body of the municipality
31 in which the riverboat will dock has by a majority vote
32 approved the docking of riverboats in the municipality. The
33 Board may issue a license authorizing a riverboat to dock in
34 areas of a county outside any municipality or approve a
-6- LRB093 11027 LRD 11699 b
1 relocation under Section 11.2 only if, prior to the issuance
2 of the license or approval, the governing body of the county
3 has by a majority vote approved of the docking of riverboats
4 within such areas.
5 (Source: P.A. 91-40, eff. 6-25-99; 92-600, eff. 6-28-02.)
6 (230 ILCS 10/13) (from Ch. 120, par. 2413)
7 Sec. 13. Wagering tax; rate; distribution.
8 (a) Until January 1, 1998, a tax is imposed on the
9 adjusted gross receipts received from gambling games
10 authorized under this Act at the rate of 20%.
11 From January 1, 1998 until July 1, 2002, a privilege tax
12 is imposed on persons engaged in the business of conducting
13 riverboat gambling operations, based on the adjusted gross
14 receipts received by a licensed owner from gambling games
15 authorized under this Act at the following rates:
16 15% of annual adjusted gross receipts up to and
17 including $25,000,000;
18 20% of annual adjusted gross receipts in excess of
19 $25,000,000 but not exceeding $50,000,000;
20 25% of annual adjusted gross receipts in excess of
21 $50,000,000 but not exceeding $75,000,000;
22 30% of annual adjusted gross receipts in excess of
23 $75,000,000 but not exceeding $100,000,000;
24 35% of annual adjusted gross receipts in excess of
25 $100,000,000.
26 Beginning July 1, 2002, a privilege tax is imposed on
27 persons engaged in the business of conducting riverboat
28 gambling operations, based on the adjusted gross receipts
29 received by a licensed owner from gambling games authorized
30 under this Act at the following rates:
31 15% of annual adjusted gross receipts up to and
32 including $25,000,000;
33 22.5% of annual adjusted gross receipts in excess of
-7- LRB093 11027 LRD 11699 b
1 $25,000,000 but not exceeding $50,000,000;
2 27.5% of annual adjusted gross receipts in excess of
3 $50,000,000 but not exceeding $75,000,000;
4 32.5% of annual adjusted gross receipts in excess of
5 $75,000,000 but not exceeding $100,000,000;
6 37.5% of annual adjusted gross receipts in excess of
7 $100,000,000 but not exceeding $150,000,000;
8 45% of annual adjusted gross receipts in excess of
9 $150,000,000 but not exceeding $200,000,000;
10 50% of annual adjusted gross receipts in excess of
11 $200,000,000.
12 The taxes imposed by this Section shall be paid by the
13 licensed owner to the Board not later than 3:00 o'clock p.m.
14 of the day after the day when the wagers were made.
15 (b) Until January 1, 1998, 25% of the tax revenue
16 deposited in the State Gaming Fund under this Section shall
17 be paid, subject to appropriation by the General Assembly, to
18 the unit of local government which is designated as the home
19 dock of the riverboat. Beginning January 1, 1998, from the
20 tax revenue deposited in the State Gaming Fund under this
21 Section, an amount equal to 5% of adjusted gross receipts
22 generated by a riverboat shall be paid monthly, subject to
23 appropriation by the General Assembly, to the unit of local
24 government that is designated as the home dock of the
25 riverboat.
26 (c) Appropriations, as approved by the General Assembly,
27 may be made from the State Gaming Fund to the Department of
28 Revenue and the Department of State Police for the
29 administration and enforcement of this Act.
30 (c-5) After the payments required under subsections (b)
31 and (c) have been made, an amount equal to 15% of the
32 adjusted gross receipts of a licensee, other than a licensee
33 that receives an owners license under subsection (e-5) of
34 Section 7, riverboat (1) that relocates pursuant to Section
-8- LRB093 11027 LRD 11699 b
1 11.2, or (2) for which an owners license is initially issued
2 after the effective date of this amendatory Act of 1999,
3 whichever comes first, shall be paid from the State Gaming
4 Fund into the Horse Racing Equity Fund.
5 (c-10) Each year the General Assembly shall appropriate
6 from the General Revenue Fund to the Education Assistance
7 Fund an amount equal to the amount paid into the Horse Racing
8 Equity Fund pursuant to subsection (c-5) in the prior
9 calendar year.
10 (c-15) After the payments required under subsections
11 (b), (c), and (c-5) have been made, an amount equal to 2% of
12 the adjusted gross receipts of a licensee, other than a
13 licensee that receives an owners license under subsection
14 (e-5) of Section 7, riverboat (1) that relocates pursuant to
15 Section 11.2, or (2) for which an owners license is initially
16 issued after the effective date of this amendatory Act of
17 1999, whichever comes first, shall be paid, subject to
18 appropriation from the General Assembly, from the State
19 Gaming Fund to each home rule county with a population of
20 over 3,000,000 inhabitants for the purpose of enhancing the
21 county's criminal justice system.
22 (c-20) Each year the General Assembly shall appropriate
23 from the General Revenue Fund to the Education Assistance
24 Fund an amount equal to the amount paid to each home rule
25 county with a population of over 3,000,000 inhabitants
26 pursuant to subsection (c-15) in the prior calendar year.
27 (c-25) After the payments required under subsections
28 (b), (c), (c-5) and (c-15) have been made, an amount equal to
29 2% of the adjusted gross receipts of a licensee, other than a
30 licensee that receives an owners license under subsection
31 (e-5) of Section 7, riverboat (1) that relocates pursuant to
32 Section 11.2, or (2) for which an owners license is initially
33 issued after the effective date of this amendatory Act of
34 1999, whichever comes first, shall be paid from the State
-9- LRB093 11027 LRD 11699 b
1 Gaming Fund into the State Universities Athletic Capital
2 Improvement Fund.
3 (c-30) After the payments required under subsections (b)
4 and (c) have been made, an amount equal to 1% of the adjusted
5 gross receipts of a licensee that receives an owners license
6 under subsection (e-5) shall be paid, subject to
7 appropriation by the General Assembly, from the State Gaming
8 Fund to each of the following municipalities:
9 (1) Alorton;
10 (2) Brooklyn;
11 (3) Cahokia;
12 (4) Centerville;
13 (5) Venice; and
14 (6) Washington Park.
15 (c-35) Each year the General Assembly shall appropriate
16 from the General Revenue Fund to the Education Assistance
17 Fund an amount equal to the amount paid to municipalities
18 under subsection (c-30) in the prior calendar year.
19 (d) From time to time, the Board shall transfer the
20 remainder of the funds generated by this Act into the
21 Education Assistance Fund, created by Public Act 86-0018, of
22 the State of Illinois.
23 (e) Nothing in this Act shall prohibit the unit of local
24 government designated as the home dock of the riverboat from
25 entering into agreements with other units of local government
26 in this State or in other states to share its portion of the
27 tax revenue.
28 (f) To the extent practicable, the Board shall
29 administer and collect the wagering taxes imposed by this
30 Section in a manner consistent with the provisions of
31 Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
32 6c, 8, 9, and 10 of the Retailers' Occupation Tax Act and
33 Section 3-7 of the Uniform Penalty and Interest Act.
34 (Source: P.A. 91-40, eff. 6-25-99; 92-595, eff. 6-28-02.)
-10- LRB093 11027 LRD 11699 b
1 Section 99. Effective date. This Act takes effect upon
2 becoming law.