100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB3387

 

Introduced 2/16/2018, by Sen. Dave Syverson

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Riverboat Gambling Act. Provides that limitations on certain civil penalties shall not apply to civil penalties assessed under the Video Gaming Act. Provides that, in determining whether to grant an owners license to an applicant, the Illinois Gaming Board shall consider the extent to which the applicant considers veterans of the armed forces of the United States for employment. Requires the Board, by rule, to establish goals for the award of contracts by each owners licensee to businesses owned by veterans of service in the armed forces of the United States, expressed as percentages of an owners licensee's total dollar amount of contracts awarded during each calendar year. Removes provisions concerning the distribution of certain funds into the Horse Racing Equity Fund. Amends the Video Gaming Act. Provides that the Illinois Gaming Board shall not grant an application to become a licensed video gaming location if the Board determines that granting the application would more likely than not cause a terminal operator licensed video gaming location to operate the video gaming terminals in 2 or more licensed video gaming locations as a single video gaming operation. Provides factors to be considered by the Board in determining restrictions on licenses in malls. Changes the non-refundable license application fee for terminal handlers from $50 to $100. Adds provisions providing that the non-refundable license application fee for certain licenses shall be $100. Provides that all current supplier licensees under the Riverboat Gambling Act shall be entitled to licensure under the Video Gaming Act as manufacturers, distributors, or suppliers without additional Board investigation or approval, except by vote of the Board. Makes other changes.


LRB100 19071 SMS 34327 b

FISCAL NOTE ACT MAY APPLY
HOME RULE NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3387LRB100 19071 SMS 34327 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 5. The Riverboat Gambling Act is amended by
5changing Sections 5, 7, 7.6, and 13 as follows:
 
6    (230 ILCS 10/5)  (from Ch. 120, par. 2405)
7    Sec. 5. Gaming Board.
8    (a) (1) There is hereby established the Illinois Gaming
9Board, which shall have the powers and duties specified in this
10Act, and all other powers necessary and proper to fully and
11effectively execute this Act for the purpose of administering,
12regulating, and enforcing the system of riverboat gambling
13established by this Act. Its jurisdiction shall extend under
14this Act to every person, association, corporation,
15partnership and trust involved in riverboat gambling
16operations in the State of Illinois.
17    (2) The Board shall consist of 5 members to be appointed by
18the Governor with the advice and consent of the Senate, one of
19whom shall be designated by the Governor to be chairman. Each
20member shall have a reasonable knowledge of the practice,
21procedure and principles of gambling operations. Each member
22shall either be a resident of Illinois or shall certify that he
23will become a resident of Illinois before taking office. At

 

 

SB3387- 2 -LRB100 19071 SMS 34327 b

1least one member shall be experienced in law enforcement and
2criminal investigation, at least one member shall be a
3certified public accountant experienced in accounting and
4auditing, and at least one member shall be a lawyer licensed to
5practice law in Illinois.
6    (3) The terms of office of the Board members shall be 3
7years, except that the terms of office of the initial Board
8members appointed pursuant to this Act will commence from the
9effective date of this Act and run as follows: one for a term
10ending July 1, 1991, 2 for a term ending July 1, 1992, and 2 for
11a term ending July 1, 1993. Upon the expiration of the
12foregoing terms, the successors of such members shall serve a
13term for 3 years and until their successors are appointed and
14qualified for like terms. Vacancies in the Board shall be
15filled for the unexpired term in like manner as original
16appointments. Each member of the Board shall be eligible for
17reappointment at the discretion of the Governor with the advice
18and consent of the Senate.
19    (4) Each member of the Board shall receive $300 for each
20day the Board meets and for each day the member conducts any
21hearing pursuant to this Act. Each member of the Board shall
22also be reimbursed for all actual and necessary expenses and
23disbursements incurred in the execution of official duties.
24    (5) No person shall be appointed a member of the Board or
25continue to be a member of the Board who is, or whose spouse,
26child or parent is, a member of the board of directors of, or a

 

 

SB3387- 3 -LRB100 19071 SMS 34327 b

1person financially interested in, any gambling operation
2subject to the jurisdiction of this Board, or any race track,
3race meeting, racing association or the operations thereof
4subject to the jurisdiction of the Illinois Racing Board. No
5Board member shall hold any other public office. No person
6shall be a member of the Board who is not of good moral
7character or who has been convicted of, or is under indictment
8for, a felony under the laws of Illinois or any other state, or
9the United States.
10    (5.5) No member of the Board shall engage in any political
11activity. For the purposes of this Section, "political" means
12any activity in support of or in connection with any campaign
13for federal, State, or local elective office or any political
14organization, but does not include activities (i) relating to
15the support or opposition of any executive, legislative, or
16administrative action (as those terms are defined in Section 2
17of the Lobbyist Registration Act), (ii) relating to collective
18bargaining, or (iii) that are otherwise in furtherance of the
19person's official State duties or governmental and public
20service functions.
21    (6) Any member of the Board may be removed by the Governor
22for neglect of duty, misfeasance, malfeasance, or nonfeasance
23in office or for engaging in any political activity.
24    (7) Before entering upon the discharge of the duties of his
25office, each member of the Board shall take an oath that he
26will faithfully execute the duties of his office according to

 

 

SB3387- 4 -LRB100 19071 SMS 34327 b

1the laws of the State and the rules and regulations adopted
2therewith and shall give bond to the State of Illinois,
3approved by the Governor, in the sum of $25,000. Every such
4bond, when duly executed and approved, shall be recorded in the
5office of the Secretary of State. Whenever the Governor
6determines that the bond of any member of the Board has become
7or is likely to become invalid or insufficient, he shall
8require such member forthwith to renew his bond, which is to be
9approved by the Governor. Any member of the Board who fails to
10take oath and give bond within 30 days from the date of his
11appointment, or who fails to renew his bond within 30 days
12after it is demanded by the Governor, shall be guilty of
13neglect of duty and may be removed by the Governor. The cost of
14any bond given by any member of the Board under this Section
15shall be taken to be a part of the necessary expenses of the
16Board.
17    (7.5) For the examination of all mechanical,
18electromechanical, or electronic table games, slot machines,
19slot accounting systems, and other electronic gaming equipment
20for compliance with this Act, the Board may utilize the
21services of one or more independent outside testing
22laboratories that have been accredited by a national
23accreditation body and that, in the judgment of the Board, are
24qualified to perform such examinations.
25    (8) The Board shall employ such personnel as may be
26necessary to carry out its functions and shall determine the

 

 

SB3387- 5 -LRB100 19071 SMS 34327 b

1salaries of all personnel, except those personnel whose
2salaries are determined under the terms of a collective
3bargaining agreement. No person shall be employed to serve the
4Board who is, or whose spouse, parent or child is, an official
5of, or has a financial interest in or financial relation with,
6any operator engaged in gambling operations within this State
7or any organization engaged in conducting horse racing within
8this State. Any employee violating these prohibitions shall be
9subject to termination of employment.
10    (9) An Administrator shall perform any and all duties that
11the Board shall assign him. The salary of the Administrator
12shall be determined by the Board and, in addition, he shall be
13reimbursed for all actual and necessary expenses incurred by
14him in discharge of his official duties. The Administrator
15shall keep records of all proceedings of the Board and shall
16preserve all records, books, documents and other papers
17belonging to the Board or entrusted to its care. The
18Administrator shall devote his full time to the duties of the
19office and shall not hold any other office or employment.
20    (b) The Board shall have general responsibility for the
21implementation of this Act. Its duties include, without
22limitation, the following:
23        (1) To decide promptly and in reasonable order all
24    license applications. Any party aggrieved by an action of
25    the Board denying, suspending, revoking, restricting or
26    refusing to renew a license may request a hearing before

 

 

SB3387- 6 -LRB100 19071 SMS 34327 b

1    the Board. A request for a hearing must be made to the
2    Board in writing within 5 days after service of notice of
3    the action of the Board. Notice of the action of the Board
4    shall be served either by personal delivery or by certified
5    mail, postage prepaid, to the aggrieved party. Notice
6    served by certified mail shall be deemed complete on the
7    business day following the date of such mailing. The Board
8    shall conduct all requested hearings promptly and in
9    reasonable order;
10        (2) To conduct all hearings pertaining to civil
11    violations of this Act or rules and regulations promulgated
12    hereunder;
13        (3) To promulgate such rules and regulations as in its
14    judgment may be necessary to protect or enhance the
15    credibility and integrity of gambling operations
16    authorized by this Act and the regulatory process
17    hereunder;
18        (4) To provide for the establishment and collection of
19    all license and registration fees and taxes imposed by this
20    Act and the rules and regulations issued pursuant hereto.
21    All such fees and taxes shall be deposited into the State
22    Gaming Fund;
23        (5) To provide for the levy and collection of penalties
24    and fines for the violation of provisions of this Act and
25    the rules and regulations promulgated hereunder. All such
26    fines and penalties shall be deposited into the Education

 

 

SB3387- 7 -LRB100 19071 SMS 34327 b

1    Assistance Fund, created by Public Act 86-0018, of the
2    State of Illinois;
3        (6) To be present through its inspectors and agents any
4    time gambling operations are conducted on any riverboat for
5    the purpose of certifying the revenue thereof, receiving
6    complaints from the public, and conducting such other
7    investigations into the conduct of the gambling games and
8    the maintenance of the equipment as from time to time the
9    Board may deem necessary and proper;
10        (7) To review and rule upon any complaint by a licensee
11    regarding any investigative procedures of the State which
12    are unnecessarily disruptive of gambling operations. The
13    need to inspect and investigate shall be presumed at all
14    times. The disruption of a licensee's operations shall be
15    proved by clear and convincing evidence, and establish
16    that: (A) the procedures had no reasonable law enforcement
17    purposes, and (B) the procedures were so disruptive as to
18    unreasonably inhibit gambling operations;
19        (8) To hold at least one meeting each quarter of the
20    fiscal year. In addition, special meetings may be called by
21    the Chairman or any 2 Board members upon 72 hours written
22    notice to each member. All Board meetings shall be subject
23    to the Open Meetings Act. Three members of the Board shall
24    constitute a quorum, and 3 votes shall be required for any
25    final determination by the Board. The Board shall keep a
26    complete and accurate record of all its meetings. A

 

 

SB3387- 8 -LRB100 19071 SMS 34327 b

1    majority of the members of the Board shall constitute a
2    quorum for the transaction of any business, for the
3    performance of any duty, or for the exercise of any power
4    which this Act requires the Board members to transact,
5    perform or exercise en banc, except that, upon order of the
6    Board, one of the Board members or an administrative law
7    judge designated by the Board may conduct any hearing
8    provided for under this Act or by Board rule and may
9    recommend findings and decisions to the Board. The Board
10    member or administrative law judge conducting such hearing
11    shall have all powers and rights granted to the Board in
12    this Act. The record made at the time of the hearing shall
13    be reviewed by the Board, or a majority thereof, and the
14    findings and decision of the majority of the Board shall
15    constitute the order of the Board in such case;
16        (9) To maintain records which are separate and distinct
17    from the records of any other State board or commission.
18    Such records shall be available for public inspection and
19    shall accurately reflect all Board proceedings;
20        (10) To file a written annual report with the Governor
21    on or before March 1 each year and such additional reports
22    as the Governor may request. The annual report shall
23    include a statement of receipts and disbursements by the
24    Board, actions taken by the Board, and any additional
25    information and recommendations which the Board may deem
26    valuable or which the Governor may request;

 

 

SB3387- 9 -LRB100 19071 SMS 34327 b

1        (11) (Blank);
2        (12) (Blank);
3        (13) To assume responsibility for administration and
4    enforcement of the Video Gaming Act; and
5        (14) To adopt, by rule, a code of conduct governing
6    Board members and employees that ensure, to the maximum
7    extent possible, that persons subject to this Code avoid
8    situations, relationships, or associations that may
9    represent or lead to a conflict of interest.
10    (c) The Board shall have jurisdiction over and shall
11supervise all gambling operations governed by this Act. The
12Board shall have all powers necessary and proper to fully and
13effectively execute the provisions of this Act, including, but
14not limited to, the following:
15        (1) To investigate applicants and determine the
16    eligibility of applicants for licenses and to select among
17    competing applicants the applicants which best serve the
18    interests of the citizens of Illinois.
19        (2) To have jurisdiction and supervision over all
20    riverboat gambling operations in this State and all persons
21    on riverboats where gambling operations are conducted.
22        (3) To promulgate rules and regulations for the purpose
23    of administering the provisions of this Act and to
24    prescribe rules, regulations and conditions under which
25    all riverboat gambling in the State shall be conducted.
26    Such rules and regulations are to provide for the

 

 

SB3387- 10 -LRB100 19071 SMS 34327 b

1    prevention of practices detrimental to the public interest
2    and for the best interests of riverboat gambling, including
3    rules and regulations regarding the inspection of such
4    riverboats and the review of any permits or licenses
5    necessary to operate a riverboat under any laws or
6    regulations applicable to riverboats, and to impose
7    penalties for violations thereof.
8        (4) To enter the office, riverboats, facilities, or
9    other places of business of a licensee, where evidence of
10    the compliance or noncompliance with the provisions of this
11    Act is likely to be found.
12        (5) To investigate alleged violations of this Act or
13    the rules of the Board and to take appropriate disciplinary
14    action against a licensee or a holder of an occupational
15    license for a violation, or institute appropriate legal
16    action for enforcement, or both.
17        (6) To adopt standards for the licensing of all persons
18    under this Act, as well as for electronic or mechanical
19    gambling games, and to establish fees for such licenses.
20        (7) To adopt appropriate standards for all riverboats
21    and facilities.
22        (8) To require that the records, including financial or
23    other statements of any licensee under this Act, shall be
24    kept in such manner as prescribed by the Board and that any
25    such licensee involved in the ownership or management of
26    gambling operations submit to the Board an annual balance

 

 

SB3387- 11 -LRB100 19071 SMS 34327 b

1    sheet and profit and loss statement, list of the
2    stockholders or other persons having a 1% or greater
3    beneficial interest in the gambling activities of each
4    licensee, and any other information the Board deems
5    necessary in order to effectively administer this Act and
6    all rules, regulations, orders and final decisions
7    promulgated under this Act.
8        (9) To conduct hearings, issue subpoenas for the
9    attendance of witnesses and subpoenas duces tecum for the
10    production of books, records and other pertinent documents
11    in accordance with the Illinois Administrative Procedure
12    Act, and to administer oaths and affirmations to the
13    witnesses, when, in the judgment of the Board, it is
14    necessary to administer or enforce this Act or the Board
15    rules.
16        (10) To prescribe a form to be used by any licensee
17    involved in the ownership or management of gambling
18    operations as an application for employment for their
19    employees.
20        (11) To revoke or suspend licenses, as the Board may
21    see fit and in compliance with applicable laws of the State
22    regarding administrative procedures, and to review
23    applications for the renewal of licenses. The Board may
24    suspend an owners license, without notice or hearing upon a
25    determination that the safety or health of patrons or
26    employees is jeopardized by continuing a riverboat's

 

 

SB3387- 12 -LRB100 19071 SMS 34327 b

1    operation. The suspension may remain in effect until the
2    Board determines that the cause for suspension has been
3    abated. The Board may revoke the owners license upon a
4    determination that the owner has not made satisfactory
5    progress toward abating the hazard.
6        (12) To eject or exclude or authorize the ejection or
7    exclusion of, any person from riverboat gambling
8    facilities where such person is in violation of this Act,
9    rules and regulations thereunder, or final orders of the
10    Board, or where such person's conduct or reputation is such
11    that his presence within the riverboat gambling facilities
12    may, in the opinion of the Board, call into question the
13    honesty and integrity of the gambling operations or
14    interfere with orderly conduct thereof; provided that the
15    propriety of such ejection or exclusion is subject to
16    subsequent hearing by the Board.
17        (13) To require all licensees of gambling operations to
18    utilize a cashless wagering system whereby all players'
19    money is converted to tokens, electronic cards, or chips
20    which shall be used only for wagering in the gambling
21    establishment.
22        (14) (Blank).
23        (15) To suspend, revoke or restrict licenses, to
24    require the removal of a licensee or an employee of a
25    licensee for a violation of this Act or a Board rule or for
26    engaging in a fraudulent practice, and to impose civil

 

 

SB3387- 13 -LRB100 19071 SMS 34327 b

1    penalties of up to $5,000 against individuals and up to
2    $10,000 or an amount equal to the daily gross receipts,
3    whichever is larger, against licensees for each violation
4    of any provision of the Act, any rules adopted by the
5    Board, any order of the Board or any other action which, in
6    the Board's discretion, is a detriment or impediment to
7    riverboat gambling operations, provided that these
8    limitations on civil penalties shall not apply to civil
9    penalties assessed under the Video Gaming Act.
10        (16) To hire employees to gather information, conduct
11    investigations and carry out any other tasks contemplated
12    under this Act.
13        (17) To establish minimum levels of insurance to be
14    maintained by licensees.
15        (18) To authorize a licensee to sell or serve alcoholic
16    liquors, wine or beer as defined in the Liquor Control Act
17    of 1934 on board a riverboat and to have exclusive
18    authority to establish the hours for sale and consumption
19    of alcoholic liquor on board a riverboat, notwithstanding
20    any provision of the Liquor Control Act of 1934 or any
21    local ordinance, and regardless of whether the riverboat
22    makes excursions. The establishment of the hours for sale
23    and consumption of alcoholic liquor on board a riverboat is
24    an exclusive power and function of the State. A home rule
25    unit may not establish the hours for sale and consumption
26    of alcoholic liquor on board a riverboat. This amendatory

 

 

SB3387- 14 -LRB100 19071 SMS 34327 b

1    Act of 1991 is a denial and limitation of home rule powers
2    and functions under subsection (h) of Section 6 of Article
3    VII of the Illinois Constitution.
4        (19) After consultation with the U.S. Army Corps of
5    Engineers, to establish binding emergency orders upon the
6    concurrence of a majority of the members of the Board
7    regarding the navigability of water, relative to
8    excursions, in the event of extreme weather conditions,
9    acts of God or other extreme circumstances.
10        (20) To delegate the execution of any of its powers
11    under this Act for the purpose of administering and
12    enforcing this Act and its rules and regulations hereunder.
13        (20.5) To approve any contract entered into on its
14    behalf.
15        (20.6) To appoint investigators to conduct
16    investigations, searches, seizures, arrests, and other
17    duties imposed under this Act, as deemed necessary by the
18    Board. These investigators have and may exercise all of the
19    rights and powers of peace officers, provided that these
20    powers shall be limited to offenses or violations occurring
21    or committed on a riverboat or dock, as defined in
22    subsections (d) and (f) of Section 4, or as otherwise
23    provided by this Act or any other law.
24        (20.7) To contract with the Department of State Police
25    for the use of trained and qualified State police officers
26    and with the Department of Revenue for the use of trained

 

 

SB3387- 15 -LRB100 19071 SMS 34327 b

1    and qualified Department of Revenue investigators to
2    conduct investigations, searches, seizures, arrests, and
3    other duties imposed under this Act and to exercise all of
4    the rights and powers of peace officers, provided that the
5    powers of Department of Revenue investigators under this
6    subdivision (20.7) shall be limited to offenses or
7    violations occurring or committed on a riverboat or dock,
8    as defined in subsections (d) and (f) of Section 4, or as
9    otherwise provided by this Act or any other law. In the
10    event the Department of State Police or the Department of
11    Revenue is unable to fill contracted police or
12    investigative positions, the Board may appoint
13    investigators to fill those positions pursuant to
14    subdivision (20.6).
15        (21) To take any other action as may be reasonable or
16    appropriate to enforce this Act and rules and regulations
17    hereunder.
18    (d) The Board may seek and shall receive the cooperation of
19the Department of State Police in conducting background
20investigations of applicants and in fulfilling its
21responsibilities under this Section. Costs incurred by the
22Department of State Police as a result of such cooperation
23shall be paid by the Board in conformance with the requirements
24of Section 2605-400 of the Department of State Police Law (20
25ILCS 2605/2605-400).
26    (e) The Board must authorize to each investigator and to

 

 

SB3387- 16 -LRB100 19071 SMS 34327 b

1any other employee of the Board exercising the powers of a
2peace officer a distinct badge that, on its face, (i) clearly
3states that the badge is authorized by the Board and (ii)
4contains a unique identifying number. No other badge shall be
5authorized by the Board.
6(Source: P.A. 98-377, eff. 1-1-14; 98-582, eff. 8-27-13.)
 
7    (230 ILCS 10/7)  (from Ch. 120, par. 2407)
8    Sec. 7. Owners licenses.
9    (a) The Board shall issue owners licenses to persons, firms
10or corporations which apply for such licenses upon payment to
11the Board of the non-refundable license fee set by the Board,
12upon payment of a $25,000 license fee for the first year of
13operation and a $5,000 license fee for each succeeding year and
14upon a determination by the Board that the applicant is
15eligible for an owners license pursuant to this Act and the
16rules of the Board. From the effective date of this amendatory
17Act of the 95th General Assembly until (i) 3 years after the
18effective date of this amendatory Act of the 95th General
19Assembly, (ii) the date any organization licensee begins to
20operate a slot machine or video game of chance under the
21Illinois Horse Racing Act of 1975 or this Act, (iii) the date
22that payments begin under subsection (c-5) of Section 13 of the
23Act, or (iv) the wagering tax imposed under Section 13 of this
24Act is increased by law to reflect a tax rate that is at least
25as stringent or more stringent than the tax rate contained in

 

 

SB3387- 17 -LRB100 19071 SMS 34327 b

1subsection (a-3) of Section 13, whichever occurs first, as a
2condition of licensure and as an alternative source of payment
3for those funds payable under subsection (c-5) of Section 13 of
4the Riverboat Gambling Act, any owners licensee that holds or
5receives its owners license on or after the effective date of
6this amendatory Act of the 94th General Assembly, other than an
7owners licensee operating a riverboat with adjusted gross
8receipts in calendar year 2004 of less than $200,000,000, must
9pay into the Horse Racing Equity Trust Fund, in addition to any
10other payments required under this Act, an amount equal to 3%
11of the adjusted gross receipts received by the owners licensee.
12The payments required under this Section shall be made by the
13owners licensee to the State Treasurer no later than 3:00
14o'clock p.m. of the day after the day when the adjusted gross
15receipts were received by the owners licensee. A person, firm
16or corporation is ineligible to receive an owners license if:
17        (1) the person has been convicted of a felony under the
18    laws of this State, any other state, or the United States;
19        (2) the person has been convicted of any violation of
20    Article 28 of the Criminal Code of 1961 or the Criminal
21    Code of 2012, or substantially similar laws of any other
22    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

 

 

SB3387- 18 -LRB100 19071 SMS 34327 b

1    officer, director or managerial employee of the firm or
2    corporation;
3        (6) the firm or corporation employs a person defined in
4    (1), (2), (3) or (4) who participates in the management or
5    operation of gambling operations authorized under this
6    Act;
7        (7) (blank); or
8        (8) a license of the person, firm or corporation issued
9    under this Act, or a license to own or operate gambling
10    facilities in any other jurisdiction, has been revoked.
11    The Board is expressly prohibited from making changes to
12the requirement that licensees make payment into the Horse
13Racing Equity Trust Fund without the express authority of the
14Illinois General Assembly and making any other rule to
15implement or interpret this amendatory Act of the 95th General
16Assembly. For the purposes of this paragraph, "rules" is given
17the meaning given to that term in Section 1-70 of the Illinois
18Administrative Procedure Act.
19    (b) In determining whether to grant an owners license to an
20applicant, the Board shall consider:
21        (1) the character, reputation, experience and
22    financial integrity of the applicants and of any other or
23    separate person that either:
24            (A) controls, directly or indirectly, such
25        applicant, or
26            (B) is controlled, directly or indirectly, by such

 

 

SB3387- 19 -LRB100 19071 SMS 34327 b

1        applicant or by a person which controls, directly or
2        indirectly, such applicant;
3        (2) the facilities or proposed facilities for the
4    conduct of riverboat gambling;
5        (3) the highest prospective total revenue to be derived
6    by the State from the conduct of riverboat gambling;
7        (4) the extent to which the ownership of the applicant
8    reflects the diversity of the State by including minority
9    persons, women, and persons with a disability and the good
10    faith affirmative action plan of each applicant to recruit,
11    train and upgrade minority persons, women, and persons with
12    a disability in all employment classifications;
13        (4.5) the extent to which the ownership of the
14    applicant includes veterans of service in the armed forces
15    of the United States, and the good faith affirmative action
16    plan of each applicant to recruit, train, and upgrade
17    veterans of service in the armed forces of the United
18    States in all employment classifications;
19        (5) the financial ability of the applicant to purchase
20    and maintain adequate liability and casualty insurance;
21        (6) whether the applicant has adequate capitalization
22    to provide and maintain, for the duration of a license, a
23    riverboat;
24        (7) the extent to which the applicant exceeds or meets
25    other standards for the issuance of an owners license which
26    the Board may adopt by rule; and

 

 

SB3387- 20 -LRB100 19071 SMS 34327 b

1        (8) The amount of the applicant's license bid.
2    (c) Each owners license shall specify the place where
3riverboats shall operate and dock.
4    (d) Each applicant shall submit with his application, on
5forms provided by the Board, 2 sets of his fingerprints.
6    (e) The Board may issue up to 10 licenses authorizing the
7holders of such licenses to own riverboats. In the application
8for an owners license, the applicant shall state the dock at
9which the riverboat is based and the water on which the
10riverboat will be located. The Board shall issue 5 licenses to
11become effective not earlier than January 1, 1991. Three of
12such licenses shall authorize riverboat gambling on the
13Mississippi River, or, with approval by the municipality in
14which the riverboat was docked on August 7, 2003 and with Board
15approval, be authorized to relocate to a new location, in a
16municipality that (1) borders on the Mississippi River or is
17within 5 miles of the city limits of a municipality that
18borders on the Mississippi River and (2), on August 7, 2003,
19had a riverboat conducting riverboat gambling operations
20pursuant to a license issued under this Act; one of which shall
21authorize riverboat gambling from a home dock in the city of
22East St. Louis. One other license shall authorize riverboat
23gambling on the Illinois River south of Marshall County. The
24Board shall issue one additional license to become effective
25not earlier than March 1, 1992, which shall authorize riverboat
26gambling on the Des Plaines River in Will County. The Board may

 

 

SB3387- 21 -LRB100 19071 SMS 34327 b

1issue 4 additional licenses to become effective not earlier
2than March 1, 1992. In determining the water upon which
3riverboats will operate, the Board shall consider the economic
4benefit which riverboat gambling confers on the State, and
5shall seek to assure that all regions of the State share in the
6economic benefits of riverboat gambling.
7    In granting all licenses, the Board may give favorable
8consideration to economically depressed areas of the State, to
9applicants presenting plans which provide for significant
10economic development over a large geographic area, and to
11applicants who currently operate non-gambling riverboats in
12Illinois. The Board shall review all applications for owners
13licenses, and shall inform each applicant of the Board's
14decision. The Board may grant an owners license to an applicant
15that has not submitted the highest license bid, but if it does
16not select the highest bidder, the Board shall issue a written
17decision explaining why another applicant was selected and
18identifying the factors set forth in this Section that favored
19the winning bidder.
20    In addition to any other revocation powers granted to the
21Board under this Act, the Board may revoke the owners license
22of a licensee which fails to begin conducting gambling within
2315 months of receipt of the Board's approval of the application
24if the Board determines that license revocation is in the best
25interests of the State.
26    (f) The first 10 owners licenses issued under this Act

 

 

SB3387- 22 -LRB100 19071 SMS 34327 b

1shall permit the holder to own up to 2 riverboats and equipment
2thereon for a period of 3 years after the effective date of the
3license. Holders of the first 10 owners licenses must pay the
4annual license fee for each of the 3 years during which they
5are authorized to own riverboats.
6    (g) Upon the termination, expiration, or revocation of each
7of the first 10 licenses, which shall be issued for a 3 year
8period, all licenses are renewable annually upon payment of the
9fee and a determination by the Board that the licensee
10continues to meet all of the requirements of this Act and the
11Board's rules. However, for licenses renewed on or after May 1,
121998, renewal shall be for a period of 4 years, unless the
13Board sets a shorter period.
14    (h) An owners license shall entitle the licensee to own up
15to 2 riverboats. A licensee shall limit the number of gambling
16participants to 1,200 for any such owners license. A licensee
17may operate both of its riverboats concurrently, provided that
18the total number of gambling participants on both riverboats
19does not exceed 1,200. Riverboats licensed to operate on the
20Mississippi River and the Illinois River south of Marshall
21County shall have an authorized capacity of at least 500
22persons. Any other riverboat licensed under this Act shall have
23an authorized capacity of at least 400 persons.
24    (i) A licensed owner is authorized to apply to the Board
25for and, if approved therefor, to receive all licenses from the
26Board necessary for the operation of a riverboat, including a

 

 

SB3387- 23 -LRB100 19071 SMS 34327 b

1liquor license, a license to prepare and serve food for human
2consumption, and other necessary licenses. All use, occupation
3and excise taxes which apply to the sale of food and beverages
4in this State and all taxes imposed on the sale or use of
5tangible personal property apply to such sales aboard the
6riverboat.
7    (j) The Board may issue or re-issue a license authorizing a
8riverboat to dock in a municipality or approve a relocation
9under Section 11.2 only if, prior to the issuance or
10re-issuance of the license or approval, the governing body of
11the municipality in which the riverboat will dock has by a
12majority vote approved the docking of riverboats in the
13municipality. The Board may issue or re-issue a license
14authorizing a riverboat to dock in areas of a county outside
15any municipality or approve a relocation under Section 11.2
16only if, prior to the issuance or re-issuance of the license or
17approval, the governing body of the county has by a majority
18vote approved of the docking of riverboats within such areas.
19(Source: P.A. 100-391, eff. 8-25-17.)
 
20    (230 ILCS 10/7.6)
21    Sec. 7.6. Business enterprise program.
22    (a) For the purposes of this Section, the terms "minority",
23"minority-owned business", "woman", "women-owned business",
24"person with a disability", and "business owned by a person
25with a disability" have the meanings ascribed to them in the

 

 

SB3387- 24 -LRB100 19071 SMS 34327 b

1Business Enterprise for Minorities, Women, and Persons with
2Disabilities Act.
3    (b) The Board shall, by rule, establish goals for the award
4of contracts by each owners licensee to businesses owned by
5minorities, women, and persons with disabilities, expressed as
6percentages of an owners licensee's total dollar amount of
7contracts awarded during each calendar year. Each owners
8licensee must make every effort to meet the goals established
9by the Board pursuant to this Section. When setting the goals
10for the award of contracts, the Board shall not include
11contracts where: (1) any purchasing mandates would be dependent
12upon the availability of minority-owned businesses,
13women-owned businesses, and businesses owned by persons with
14disabilities ready, willing, and able with capacity to provide
15quality goods and services to a gaming operation at reasonable
16prices; (2) there are no or a limited number of licensed
17suppliers as defined by this Act for the goods or services
18provided to the licensee; (3) the licensee or its parent
19company owns a company that provides the goods or services; or
20(4) the goods or services are provided to the licensee by a
21publicly traded company.
22    (c) Each owners licensee shall file with the Board an
23annual report of its utilization of minority-owned businesses,
24women-owned businesses, and businesses owned by persons with
25disabilities during the preceding calendar year. The reports
26shall include a self-evaluation of the efforts of the owners

 

 

SB3387- 25 -LRB100 19071 SMS 34327 b

1licensee to meet its goals under this Section.
2    (c-5) The Board shall, by rule, establish goals for the
3award of contracts by each owners licensee to businesses owned
4by veterans of service in the armed forces of the United
5States, expressed as percentages of an owners licensee's total
6dollar amount of contracts awarded during each calendar year.
7When setting the goals for the award of contracts, the Board
8shall not include contracts where: (1) any purchasing mandates
9would be dependent upon the availability of veteran-owned
10businesses ready, willing, and able with capacity to provide
11quality goods and services to a gaming operation at reasonable
12prices; (2) there are no or a limited number of licensed
13suppliers as defined in this Act for the goods or services
14provided to the licensee: (3) the licensee or its parent
15company owns a company that provides the goods or services; or
16(4) the goods or services are provided to the licensee by a
17publicly traded company.
18    Each owners licensee shall file with the Board an annual
19report of its utilization of veteran-owned businesses during
20the preceding calendar year. The reports shall include a
21self-evaluation of the efforts of the owners licensee to meet
22its goals under this Section.
23    (d) The owners licensee shall have the right to request a
24waiver from the requirements of this Section. The Board shall
25grant the waiver where the owners licensee demonstrates that
26there has been made a good faith effort to comply with the

 

 

SB3387- 26 -LRB100 19071 SMS 34327 b

1goals for participation by minority-owned businesses,
2women-owned businesses, and businesses owned by persons with
3disabilities, and veteran-owned businesses.
4    (e) If the Board determines that its goals and policies are
5not being met by any owners licensee, then the Board may:
6        (1) adopt remedies for such violations; and
7        (2) recommend that the owners licensee provide
8    additional opportunities for participation by
9    minority-owned businesses, women-owned businesses, and
10    businesses owned by persons with disabilities, and
11    veteran-owned businesses; such recommendations may
12    include, but shall not be limited to:
13            (A) assurances of stronger and better focused
14        solicitation efforts to obtain more minority-owned
15        businesses, women-owned businesses, and businesses
16        owned by persons with disabilities, and veteran-owned
17        businesses as potential sources of supply;
18            (B) division of job or project requirements, when
19        economically feasible, into tasks or quantities to
20        permit participation of minority-owned businesses,
21        women-owned businesses, and businesses owned by
22        persons with disabilities, and veteran-owned
23        businesses;
24            (C) elimination of extended experience or
25        capitalization requirements, when programmatically
26        feasible, to permit participation of minority-owned

 

 

SB3387- 27 -LRB100 19071 SMS 34327 b

1        businesses, women-owned businesses, and businesses
2        owned by persons with disabilities, and veteran-owned
3        businesses;
4            (D) identification of specific proposed contracts
5        as particularly attractive or appropriate for
6        participation by minority-owned businesses,
7        women-owned businesses, and businesses owned by
8        persons with disabilities, and veteran-owned
9        businesses, such identification to result from and be
10        coupled with the efforts of items (A) through (C); and
11            (E) implementation of regulations established for
12        the use of the sheltered market process.
13    (f) The Board shall file, no later than March 1 of each
14year, an annual report that shall detail the level of
15achievement toward the goals specified in this Section over the
163 most recent fiscal years. The annual report shall include,
17but need not be limited to:
18        (1) a summary detailing expenditures subject to the
19    goals, the actual goals specified, and the goals attained
20    by each owners licensee; and
21        (2) an analysis of the level of overall goal
22    achievement concerning purchases from minority-owned
23    businesses, women-owned businesses, and businesses owned
24    by persons with disabilities, and veteran-owned
25    businesses.
26(Source: P.A. 99-78, eff. 7-20-15; 100-391, eff. 8-25-17.)
 

 

 

SB3387- 28 -LRB100 19071 SMS 34327 b

1    (230 ILCS 10/13)  (from Ch. 120, par. 2413)
2    Sec. 13. Wagering tax; rate; distribution.
3    (a) Until January 1, 1998, a tax is imposed on the adjusted
4gross receipts received from gambling games authorized under
5this Act at the rate of 20%.
6    (a-1) From January 1, 1998 until July 1, 2002, a privilege
7tax is imposed on persons engaged in the business of conducting
8riverboat gambling operations, based on the adjusted gross
9receipts received by a licensed owner from gambling games
10authorized under this Act at the following rates:
11        15% of annual adjusted gross receipts up to and
12    including $25,000,000;
13        20% of annual adjusted gross receipts in excess of
14    $25,000,000 but not exceeding $50,000,000;
15        25% of annual adjusted gross receipts in excess of
16    $50,000,000 but not exceeding $75,000,000;
17        30% of annual adjusted gross receipts in excess of
18    $75,000,000 but not exceeding $100,000,000;
19        35% of annual adjusted gross receipts in excess of
20    $100,000,000.
21    (a-2) From July 1, 2002 until July 1, 2003, a privilege tax
22is imposed on persons engaged in the business of conducting
23riverboat gambling operations, other than licensed managers
24conducting riverboat gambling operations on behalf of the
25State, based on the adjusted gross receipts received by a

 

 

SB3387- 29 -LRB100 19071 SMS 34327 b

1licensed owner from gambling games authorized under this Act at
2the following rates:
3        15% of annual adjusted gross receipts up to and
4    including $25,000,000;
5        22.5% of annual adjusted gross receipts in excess of
6    $25,000,000 but not exceeding $50,000,000;
7        27.5% of annual adjusted gross receipts in excess of
8    $50,000,000 but not exceeding $75,000,000;
9        32.5% of annual adjusted gross receipts in excess of
10    $75,000,000 but not exceeding $100,000,000;
11        37.5% of annual adjusted gross receipts in excess of
12    $100,000,000 but not exceeding $150,000,000;
13        45% of annual adjusted gross receipts in excess of
14    $150,000,000 but not exceeding $200,000,000;
15        50% of annual adjusted gross receipts in excess of
16    $200,000,000.
17    (a-3) Beginning July 1, 2003, a privilege tax is imposed on
18persons engaged in the business of conducting riverboat
19gambling operations, other than licensed managers conducting
20riverboat gambling operations on behalf of the State, based on
21the adjusted gross receipts received by a licensed owner from
22gambling games authorized under this Act at the following
23rates:
24        15% of annual adjusted gross receipts up to and
25    including $25,000,000;
26        27.5% of annual adjusted gross receipts in excess of

 

 

SB3387- 30 -LRB100 19071 SMS 34327 b

1    $25,000,000 but not exceeding $37,500,000;
2        32.5% of annual adjusted gross receipts in excess of
3    $37,500,000 but not exceeding $50,000,000;
4        37.5% of annual adjusted gross receipts in excess of
5    $50,000,000 but not exceeding $75,000,000;
6        45% of annual adjusted gross receipts in excess of
7    $75,000,000 but not exceeding $100,000,000;
8        50% of annual adjusted gross receipts in excess of
9    $100,000,000 but not exceeding $250,000,000;
10        70% of annual adjusted gross receipts in excess of
11    $250,000,000.
12    An amount equal to the amount of wagering taxes collected
13under this subsection (a-3) that are in addition to the amount
14of wagering taxes that would have been collected if the
15wagering tax rates under subsection (a-2) were in effect shall
16be paid into the Common School Fund.
17    The privilege tax imposed under this subsection (a-3) shall
18no longer be imposed beginning on the earlier of (i) July 1,
192005; (ii) the first date after June 20, 2003 that riverboat
20gambling operations are conducted pursuant to a dormant
21license; or (iii) the first day that riverboat gambling
22operations are conducted under the authority of an owners
23license that is in addition to the 10 owners licenses initially
24authorized under this Act. For the purposes of this subsection
25(a-3), the term "dormant license" means an owners license that
26is authorized by this Act under which no riverboat gambling

 

 

SB3387- 31 -LRB100 19071 SMS 34327 b

1operations are being conducted on June 20, 2003.
2    (a-4) Beginning on the first day on which the tax imposed
3under subsection (a-3) is no longer imposed, a privilege tax is
4imposed on persons engaged in the business of conducting
5riverboat gambling operations, other than licensed managers
6conducting riverboat gambling operations on behalf of the
7State, based on the adjusted gross receipts received by a
8licensed owner from gambling games authorized under this Act at
9the following rates:
10        15% of annual adjusted gross receipts up to and
11    including $25,000,000;
12        22.5% of annual adjusted gross receipts in excess of
13    $25,000,000 but not exceeding $50,000,000;
14        27.5% of annual adjusted gross receipts in excess of
15    $50,000,000 but not exceeding $75,000,000;
16        32.5% of annual adjusted gross receipts in excess of
17    $75,000,000 but not exceeding $100,000,000;
18        37.5% of annual adjusted gross receipts in excess of
19    $100,000,000 but not exceeding $150,000,000;
20        45% of annual adjusted gross receipts in excess of
21    $150,000,000 but not exceeding $200,000,000;
22        50% of annual adjusted gross receipts in excess of
23    $200,000,000.
24    (a-8) Riverboat gambling operations conducted by a
25licensed manager on behalf of the State are not subject to the
26tax imposed under this Section.

 

 

SB3387- 32 -LRB100 19071 SMS 34327 b

1    (a-10) The taxes imposed by this Section shall be paid by
2the licensed owner to the Board not later than 5:00 o'clock
3p.m. of the day after the day when the wagers were made.
4    (a-15) If the privilege tax imposed under subsection (a-3)
5is no longer imposed pursuant to item (i) of the last paragraph
6of subsection (a-3), then by June 15 of each year, each owners
7licensee, other than an owners licensee that admitted 1,000,000
8persons or fewer in calendar year 2004, must, in addition to
9the payment of all amounts otherwise due under this Section,
10pay to the Board a reconciliation payment in the amount, if
11any, by which the licensed owner's base amount exceeds the
12amount of net privilege tax paid by the licensed owner to the
13Board in the then current State fiscal year. A licensed owner's
14net privilege tax obligation due for the balance of the State
15fiscal year shall be reduced up to the total of the amount paid
16by the licensed owner in its June 15 reconciliation payment.
17The obligation imposed by this subsection (a-15) is binding on
18any person, firm, corporation, or other entity that acquires an
19ownership interest in any such owners license. The obligation
20imposed under this subsection (a-15) terminates on the earliest
21of: (i) July 1, 2007, (ii) the first day after the effective
22date of this amendatory Act of the 94th General Assembly that
23riverboat gambling operations are conducted pursuant to a
24dormant license, (iii) the first day that riverboat gambling
25operations are conducted under the authority of an owners
26license that is in addition to the 10 owners licenses initially

 

 

SB3387- 33 -LRB100 19071 SMS 34327 b

1authorized under this Act, or (iv) the first day that a
2licensee under the Illinois Horse Racing Act of 1975 conducts
3gaming operations with slot machines or other electronic gaming
4devices. The Board must reduce the obligation imposed under
5this subsection (a-15) by an amount the Board deems reasonable
6for any of the following reasons: (A) an act or acts of God,
7(B) an act of bioterrorism or terrorism or a bioterrorism or
8terrorism threat that was investigated by a law enforcement
9agency, or (C) a condition beyond the control of the owners
10licensee that does not result from any act or omission by the
11owners licensee or any of its agents and that poses a hazardous
12threat to the health and safety of patrons. If an owners
13licensee pays an amount in excess of its liability under this
14Section, the Board shall apply the overpayment to future
15payments required under this Section.
16    For purposes of this subsection (a-15):
17    "Act of God" means an incident caused by the operation of
18an extraordinary force that cannot be foreseen, that cannot be
19avoided by the exercise of due care, and for which no person
20can be held liable.
21    "Base amount" means the following:
22        For a riverboat in Alton, $31,000,000.
23        For a riverboat in East Peoria, $43,000,000.
24        For the Empress riverboat in Joliet, $86,000,000.
25        For a riverboat in Metropolis, $45,000,000.
26        For the Harrah's riverboat in Joliet, $114,000,000.

 

 

SB3387- 34 -LRB100 19071 SMS 34327 b

1        For a riverboat in Aurora, $86,000,000.
2        For a riverboat in East St. Louis, $48,500,000.
3        For a riverboat in Elgin, $198,000,000.
4    "Dormant license" has the meaning ascribed to it in
5subsection (a-3).
6    "Net privilege tax" means all privilege taxes paid by a
7licensed owner to the Board under this Section, less all
8payments made from the State Gaming Fund pursuant to subsection
9(b) of this Section.
10    The changes made to this subsection (a-15) by Public Act
1194-839 are intended to restate and clarify the intent of Public
12Act 94-673 with respect to the amount of the payments required
13to be made under this subsection by an owners licensee to the
14Board.
15    (b) Until January 1, 1998, 25% of the tax revenue deposited
16in the State Gaming Fund under this Section shall be paid,
17subject to appropriation by the General Assembly, to the unit
18of local government which is designated as the home dock of the
19riverboat. Beginning January 1, 1998, from the tax revenue
20deposited in the State Gaming Fund under this Section, an
21amount equal to 5% of adjusted gross receipts generated by a
22riverboat shall be paid monthly, subject to appropriation by
23the General Assembly, to the unit of local government that is
24designated as the home dock of the riverboat. From the tax
25revenue deposited in the State Gaming Fund pursuant to
26riverboat gambling operations conducted by a licensed manager

 

 

SB3387- 35 -LRB100 19071 SMS 34327 b

1on behalf of the State, an amount equal to 5% of adjusted gross
2receipts generated pursuant to those riverboat gambling
3operations shall be paid monthly, subject to appropriation by
4the General Assembly, to the unit of local government that is
5designated as the home dock of the riverboat upon which those
6riverboat gambling operations are conducted.
7    (c) Appropriations, as approved by the General Assembly,
8may be made from the State Gaming Fund to the Board (i) for the
9administration and enforcement of this Act and the Video Gaming
10Act, (ii) for distribution to the Department of State Police
11and to the Department of Revenue for the enforcement of this
12Act, and (iii) to the Department of Human Services for the
13administration of programs to treat problem gambling.
14    (c-5) (Blank). Before May 26, 2006 (the effective date of
15Public Act 94-804) and beginning on the effective date of this
16amendatory Act of the 95th General Assembly, unless any
17organization licensee under the Illinois Horse Racing Act of
181975 begins to operate a slot machine or video game of chance
19under the Illinois Horse Racing Act of 1975 or this Act, after
20the payments required under subsections (b) and (c) have been
21made, an amount equal to 15% of the adjusted gross receipts of
22(1) an owners licensee that relocates pursuant to Section 11.2,
23(2) an owners licensee conducting riverboat gambling
24operations pursuant to an owners license that is initially
25issued after June 25, 1999, or (3) the first riverboat gambling
26operations conducted by a licensed manager on behalf of the

 

 

SB3387- 36 -LRB100 19071 SMS 34327 b

1State under Section 7.3, whichever comes first, shall be paid
2from the State Gaming Fund into the Horse Racing Equity Fund.
3    (c-10) (Blank). Each year the General Assembly shall
4appropriate from the General Revenue Fund to the Education
5Assistance Fund an amount equal to the amount paid into the
6Horse Racing Equity Fund pursuant to subsection (c-5) in the
7prior calendar year.
8    (c-15) After the payments required under subsections (b)
9and , (c), and (c-5) have been made, an amount equal to 2% of
10the adjusted gross receipts of (1) an owners licensee that
11relocates pursuant to Section 11.2, (2) an owners licensee
12conducting riverboat gambling operations pursuant to an owners
13license that is initially issued after June 25, 1999, or (3)
14the first riverboat gambling operations conducted by a licensed
15manager on behalf of the State under Section 7.3, whichever
16comes first, shall be paid, subject to appropriation from the
17General Assembly, from the State Gaming Fund to each home rule
18county with a population of over 3,000,000 inhabitants for the
19purpose of enhancing the county's criminal justice system.
20    (c-20) Each year the General Assembly shall appropriate
21from the General Revenue Fund to the Education Assistance Fund
22an amount equal to the amount paid to each home rule county
23with a population of over 3,000,000 inhabitants pursuant to
24subsection (c-15) in the prior calendar year.
25    (c-25) On July 1, 2013 and each July 1 thereafter,
26$1,600,000 shall be transferred from the State Gaming Fund to

 

 

SB3387- 37 -LRB100 19071 SMS 34327 b

1the Chicago State University Education Improvement Fund.
2    (c-30) On July 1, 2013 or as soon as possible thereafter,
3$92,000,000 shall be transferred from the State Gaming Fund to
4the School Infrastructure Fund and $23,000,000 shall be
5transferred from the State Gaming Fund to the Horse Racing
6Equity Fund.
7    (c-35) Beginning on July 1, 2013, in addition to any amount
8transferred under subsection (c-30) of this Section,
9$5,530,000 shall be transferred monthly from the State Gaming
10Fund to the School Infrastructure Fund.
11    (d) From time to time, the Board shall transfer the
12remainder of the funds generated by this Act into the Education
13Assistance Fund, created by Public Act 86-0018, of the State of
14Illinois.
15    (e) Nothing in this Act shall prohibit the unit of local
16government designated as the home dock of the riverboat from
17entering into agreements with other units of local government
18in this State or in other states to share its portion of the
19tax revenue.
20    (f) To the extent practicable, the Board shall administer
21and collect the wagering taxes imposed by this Section in a
22manner consistent with the provisions of Sections 4, 5, 5a, 5b,
235c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the
24Retailers' Occupation Tax Act and Section 3-7 of the Uniform
25Penalty and Interest Act.
26(Source: P.A. 98-18, eff. 6-7-13.)
 

 

 

SB3387- 38 -LRB100 19071 SMS 34327 b

1    Section 10. The Video Gaming Act is amended by changing
2Sections 25, 27, 45, and 80 as follows:
 
3    (230 ILCS 40/25)
4    Sec. 25. Restriction of licensees.
5    (a) Manufacturer. A person may not be licensed as a
6manufacturer of a video gaming terminal in Illinois unless the
7person has a valid manufacturer's license issued under this
8Act. A manufacturer may only sell video gaming terminals for
9use in Illinois to persons having a valid distributor's
10license.
11    (b) Distributor. A person may not sell, distribute, or
12lease or market a video gaming terminal in Illinois unless the
13person has a valid distributor's license issued under this Act.
14A distributor may only sell video gaming terminals for use in
15Illinois to persons having a valid distributor's or terminal
16operator's license.
17    (c) Terminal operator. A person may not own, maintain, or
18place a video gaming terminal unless he has a valid terminal
19operator's license issued under this Act. A terminal operator
20may only place video gaming terminals for use in Illinois in
21licensed establishments, licensed truck stop establishments,
22licensed fraternal establishments, and licensed veterans
23establishments. No terminal operator may give anything of
24value, including but not limited to a loan or financing

 

 

SB3387- 39 -LRB100 19071 SMS 34327 b

1arrangement, to a licensed establishment, licensed truck stop
2establishment, licensed fraternal establishment, or licensed
3veterans establishment as any incentive or inducement to locate
4video terminals in that establishment. Of the after-tax profits
5from a video gaming terminal, 50% shall be paid to the terminal
6operator and 50% shall be paid to the licensed establishment,
7licensed truck stop establishment, licensed fraternal
8establishment, or licensed veterans establishment,
9notwithstanding any agreement to the contrary. A video terminal
10operator that violates one or more requirements of this
11subsection is guilty of a Class 4 felony and is subject to
12termination of his or her license by the Board.
13    (d) Licensed technician. A person may not service,
14maintain, or repair a video gaming terminal in this State
15unless he or she (1) has a valid technician's license issued
16under this Act, (2) is a terminal operator, or (3) is employed
17by a terminal operator, distributor, or manufacturer.
18    (d-5) Licensed terminal handler. No person, including, but
19not limited to, an employee or independent contractor working
20for a manufacturer, distributor, supplier, technician, or
21terminal operator licensed pursuant to this Act, shall have
22possession or control of a video gaming terminal, or access to
23the inner workings of a video gaming terminal, unless that
24person possesses a valid terminal handler's license issued
25under this Act.
26    (e) Licensed establishment. No video gaming terminal may be

 

 

SB3387- 40 -LRB100 19071 SMS 34327 b

1placed in any licensed establishment, licensed veterans
2establishment, licensed truck stop establishment, or licensed
3fraternal establishment unless the owner or agent of the owner
4of the licensed establishment, licensed veterans
5establishment, licensed truck stop establishment, or licensed
6fraternal establishment has entered into a written use
7agreement with the terminal operator for placement of the
8terminals. A copy of the use agreement shall be on file in the
9terminal operator's place of business and available for
10inspection by individuals authorized by the Board. A licensed
11establishment, licensed truck stop establishment, licensed
12veterans establishment, or licensed fraternal establishment
13may operate up to 5 video gaming terminals on its premises at
14any time.
15    (f) (Blank).
16    (g) Financial interest restrictions. As used in this Act,
17"substantial interest" in a partnership, a corporation, an
18organization, an association, a business, or a limited
19liability company means:
20        (A) When, with respect to a sole proprietorship, an
21    individual or his or her spouse owns, operates, manages, or
22    conducts, directly or indirectly, the organization,
23    association, or business, or any part thereof; or
24        (B) When, with respect to a partnership, the individual
25    or his or her spouse shares in any of the profits, or
26    potential profits, of the partnership activities; or

 

 

SB3387- 41 -LRB100 19071 SMS 34327 b

1        (C) When, with respect to a corporation, an individual
2    or his or her spouse is an officer or director, or the
3    individual or his or her spouse is a holder, directly or
4    beneficially, of 5% or more of any class of stock of the
5    corporation; or
6        (D) When, with respect to an organization not covered
7    in (A), (B) or (C) above, an individual or his or her
8    spouse is an officer or manages the business affairs, or
9    the individual or his or her spouse is the owner of or
10    otherwise controls 10% or more of the assets of the
11    organization; or
12        (E) When an individual or his or her spouse furnishes
13    5% or more of the capital, whether in cash, goods, or
14    services, for the operation of any business, association,
15    or organization during any calendar year; or
16        (F) When, with respect to a limited liability company,
17    an individual or his or her spouse is a member, or the
18    individual or his or her spouse is a holder, directly or
19    beneficially, of 5% or more of the membership interest of
20    the limited liability company.
21    For purposes of this subsection (g), "individual" includes
22all individuals or their spouses whose combined interest would
23qualify as a substantial interest under this subsection (g) and
24whose activities with respect to an organization, association,
25or business are so closely aligned or coordinated as to
26constitute the activities of a single entity.

 

 

SB3387- 42 -LRB100 19071 SMS 34327 b

1    (h) Location restriction. A licensed establishment,
2licensed truck stop establishment, licensed fraternal
3establishment, or licensed veterans establishment that is (i)
4located within 1,000 feet of a facility operated by an
5organization licensee licensed under the Illinois Horse Racing
6Act of 1975 or the home dock of a riverboat licensed under the
7Riverboat Gambling Act or (ii) located within 100 feet of a
8school or a place of worship under the Religious Corporation
9Act, is ineligible to operate a video gaming terminal. The
10location restrictions in this subsection (h) do not apply if
11(A) a facility operated by an organization licensee, a school,
12or a place of worship moves to or is established within the
13restricted area after a licensed establishment, licensed truck
14stop establishment, licensed fraternal establishment, or
15licensed veterans establishment becomes licensed under this
16Act or (B) a school or place of worship moves to or is
17established within the restricted area after a licensed
18establishment, licensed truck stop establishment, licensed
19fraternal establishment, or licensed veterans establishment
20obtains its original liquor license. For the purpose of this
21subsection, "school" means an elementary or secondary public
22school, or an elementary or secondary private school registered
23with or recognized by the State Board of Education.
24    Notwithstanding the provisions of this subsection (h), the
25Board may waive the requirement that a licensed establishment,
26licensed truck stop establishment, licensed fraternal

 

 

SB3387- 43 -LRB100 19071 SMS 34327 b

1establishment, or licensed veterans establishment not be
2located within 1,000 feet from a facility operated by an
3organization licensee licensed under the Illinois Horse Racing
4Act of 1975 or the home dock of a riverboat licensed under the
5Riverboat Gambling Act. The Board shall not grant such waiver
6if there is any common ownership or control, shared business
7activity, or contractual arrangement of any type between the
8establishment and the organization licensee or owners licensee
9of a riverboat. The Board shall adopt rules to implement the
10provisions of this paragraph.
11    (h-5) Restrictions on licenses in malls. The Board shall
12not grant an application to become a licensed video gaming
13location if the Board determines that granting the application
14would more likely than not cause a terminal operator,
15individually or in combination with other terminal operators,
16licensed video gaming location, or other person or entity, to
17operate the video gaming terminals in 2 or more licensed video
18gaming locations as a single video gaming operation.
19        (1) In making determinations under this subsection
20    (h-5), factors to be considered by the Board shall include,
21    but not be limited to, the following:
22            (A) the physical aspects of the location;
23            (B) the ownership, control, or management of the
24        location;
25            (C) any arrangements, understandings, or
26        agreements, written or otherwise, among or involving

 

 

SB3387- 44 -LRB100 19071 SMS 34327 b

1        any persons or entities that involve the conducting of
2        any video gaming business or the sharing of costs or
3        revenues; and
4            (D) the manner in which any terminal operator or
5        other related entity markets, advertises, or otherwise
6        describes any location or locations to any other person
7        or entity or to the public.
8        (2) The Board shall presume, subject to rebuttal, that
9    the granting of an application to become a licensed video
10    gaming location within a mall will cause a terminal
11    operator, individually or in combination with other
12    persons or entities, to operate the video gaming terminals
13    in 2 or more licensed video gaming locations as a single
14    video gaming operation if the Board determines that
15    granting the license would create a local concentration of
16    licensed video gaming locations.
17    For the purposes of this subsection (h-5):
18    "Mall" means a building, or adjoining or connected
19buildings, containing 4 or more separate locations.
20    "Video gaming operation" means the conducting of video
21gaming and all related activities.
22    "Location" means a space within a mall containing a
23separate business, a place for a separate business, or a place
24subject to a separate leasing arrangement by the mall owner.
25    "Licensed video gaming location" means a licensed
26establishment, licensed fraternal establishment, licensed

 

 

SB3387- 45 -LRB100 19071 SMS 34327 b

1veterans establishment, or licensed truck stop.
2    "Local concentration of licensed video gaming locations"
3means that the combined number of licensed video gaming
4locations within a mall exceed half of the separate locations
5within the mall.
6    (i) Undue economic concentration. In addition to
7considering all other requirements under this Act, in deciding
8whether to approve the operation of video gaming terminals by a
9terminal operator in a location, the Board shall consider the
10impact of any economic concentration of such operation of video
11gaming terminals. The Board shall not allow a terminal operator
12to operate video gaming terminals if the Board determines such
13operation will result in undue economic concentration. For
14purposes of this Section, "undue economic concentration" means
15that a terminal operator would have such actual or potential
16influence over video gaming terminals in Illinois as to:
17        (1) substantially impede or suppress competition among
18    terminal operators;
19        (2) adversely impact the economic stability of the
20    video gaming industry in Illinois; or
21        (3) negatively impact the purposes of the Video Gaming
22    Act.
23    The Board shall adopt rules concerning undue economic
24concentration with respect to the operation of video gaming
25terminals in Illinois. The rules shall include, but not be
26limited to, (i) limitations on the number of video gaming

 

 

SB3387- 46 -LRB100 19071 SMS 34327 b

1terminals operated by any terminal operator within a defined
2geographic radius and (ii) guidelines on the discontinuation of
3operation of any such video gaming terminals the Board
4determines will cause undue economic concentration.
5    (j) The provisions of the Illinois Antitrust Act are fully
6and equally applicable to the activities of any licensee under
7this Act.
8(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,
9eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
 
10    (230 ILCS 40/27)
11    Sec. 27. Prohibition or limitation of video gaming by
12political subdivision.
13    (a) A municipality may pass an ordinance prohibiting video
14gaming within the corporate limits of the municipality. A
15county board may, for the unincorporated area of the county,
16pass an ordinance prohibiting video gaming within the
17unincorporated area of the county.
18    (b) A home rule municipality, or a home rule county with
19respect to unincorporated portions of the county, may impose
20separate requirements on video gaming that provide sources of
21municipal or county revenue or impose limitations on video
22gaming more restrictive than those provided under this Act.
23These requirements may include the following:
24        (1) license fees;
25        (2) occupation taxes;

 

 

SB3387- 47 -LRB100 19071 SMS 34327 b

1        (3) licensing requirements;
2        (4) limitations on hours of video gaming terminal play
3    more restrictive than those provided under the liquor
4    license of a licensed establishment, licensed veterans
5    organization, or licensed fraternal organization;
6        (5) limitations on the numbers of video gaming
7    terminals within a licensed establishment, licensed
8    veterans organization, licensed fraternal organization, or
9    licensed truck stop;
10        (6) limitations on the total number of licensed
11    establishments, licensed veterans organizations, licensed
12    fraternal organizations, or licensed truck stops allowed
13    within the municipality or county, or a specific portion of
14    the municipality or county;
15        (7) limitations on hours of video gaming play;
16        (8) zoning to limit the areas within a municipality or
17    county where video gaming is permitted; or
18        (9) other requirements intended to promote safety,
19    morals, health, or welfare within the municipality or
20    county.
21(Source: P.A. 96-34, eff. 7-13-09.)
 
22    (230 ILCS 40/45)
23    Sec. 45. Issuance of license.
24    (a) The burden is upon each applicant to demonstrate his
25suitability for licensure. Each video gaming terminal

 

 

SB3387- 48 -LRB100 19071 SMS 34327 b

1manufacturer, distributor, supplier, operator, handler,
2licensed establishment, licensed truck stop establishment,
3licensed fraternal establishment, and licensed veterans
4establishment shall be licensed by the Board. The Board may
5issue or deny a license under this Act to any person pursuant
6to the same criteria set forth in Section 9 of the Riverboat
7Gambling Act.
8    (a-5) The Board shall not grant a license to a person who
9has facilitated, enabled, or participated in the use of
10coin-operated devices for gambling purposes or who is under the
11significant influence or control of such a person. For the
12purposes of this Act, "facilitated, enabled, or participated in
13the use of coin-operated amusement devices for gambling
14purposes" means that the person has been convicted of any
15violation of Article 28 of the Criminal Code of 1961 or the
16Criminal Code of 2012. If there is pending legal action against
17a person for any such violation, then the Board shall delay the
18licensure of that person until the legal action is resolved.
19    (b) Each person seeking and possessing a license as a video
20gaming terminal manufacturer, distributor, supplier, operator,
21handler, licensed establishment, licensed truck stop
22establishment, licensed fraternal establishment, or licensed
23veterans establishment shall submit to a background
24investigation conducted by the Board with the assistance of the
25State Police or other law enforcement. To the extent that the
26corporate structure of the applicant allows, the background

 

 

SB3387- 49 -LRB100 19071 SMS 34327 b

1investigation shall include any or all of the following as the
2Board deems appropriate or as provided by rule for each
3category of licensure: (i) each beneficiary of a trust, (ii)
4each partner of a partnership, (iii) each member of a limited
5liability company, (iv) each director and officer of a publicly
6or non-publicly held corporation, (v) each stockholder of a
7non-publicly held corporation, (vi) each stockholder of 5% or
8more of a publicly held corporation, or (vii) each stockholder
9of 5% or more in a parent or subsidiary corporation.
10    (c) Each person seeking and possessing a license as a video
11gaming terminal manufacturer, distributor, supplier, operator,
12handler, licensed establishment, licensed truck stop
13establishment, licensed fraternal establishment, or licensed
14veterans establishment shall disclose the identity of every
15person, association, trust, corporation, or limited liability
16company having a greater than 1% direct or indirect pecuniary
17interest in the video gaming terminal operation for which the
18license is sought. If the disclosed entity is a trust, the
19application shall disclose the names and addresses of the
20beneficiaries; if a corporation, the names and addresses of all
21stockholders and directors; if a limited liability company, the
22names and addresses of all members; or if a partnership, the
23names and addresses of all partners, both general and limited.
24    (d) No person may be licensed as a video gaming terminal
25manufacturer, distributor, supplier, operator, handler,
26licensed establishment, licensed truck stop establishment,

 

 

SB3387- 50 -LRB100 19071 SMS 34327 b

1licensed fraternal establishment, or licensed veterans
2establishment if that person has been found by the Board to:
3        (1) have a background, including a criminal record,
4    reputation, habits, social or business associations, or
5    prior activities that pose a threat to the public interests
6    of the State or to the security and integrity of video
7    gaming;
8        (2) create or enhance the dangers of unsuitable,
9    unfair, or illegal practices, methods, and activities in
10    the conduct of video gaming; or
11        (3) present questionable business practices and
12    financial arrangements incidental to the conduct of video
13    gaming activities.
14    (e) Any applicant for any license under this Act has the
15burden of proving his or her qualifications to the satisfaction
16of the Board. The Board may adopt rules to establish additional
17qualifications and requirements to preserve the integrity and
18security of video gaming in this State.
19    (f) A non-refundable application fee shall be paid at the
20time an application for a license is filed with the Board in
21the following amounts:
22        (1) Manufacturer..........................$5,000
23        (2) Distributor...........................$5,000
24        (3) Terminal operator.....................$5,000
25        (4) Supplier..............................$2,500
26        (5) Technician..............................$100

 

 

SB3387- 51 -LRB100 19071 SMS 34327 b

1        (6) Terminal Handler.....................$100 $50
2        (7) Licensed establishment, licensed truck stop
3    establishment, licensed fraternal establishment,
4    or licensed veterans establishment...................$100
5    (g) The Board shall establish an annual fee for each
6license not to exceed the following:
7        (1) Manufacturer.........................$10,000
8        (2) Distributor..........................$10,000
9        (3) Terminal operator.....................$5,000
10        (4) Supplier..............................$2,000
11        (5) Technician..............................$100
12        (6) Licensed establishment, licensed truck stop
13    establishment, licensed fraternal establishment,
14    or licensed veterans establishment..............$100
15        (7) Video gaming terminal...................$100
16        (8) Terminal Handler.........................$100 $50
17    (h) A terminal operator and a licensed establishment,
18licensed truck stop establishment, licensed fraternal
19establishment, or licensed veterans establishment shall
20equally split the fees specified in item (7) of subsection (g).
21(Source: P.A. 97-1150, eff. 1-25-13; 98-31, eff. 6-24-13;
2298-587, eff. 8-27-13; 98-756, eff. 7-16-14.)
 
23    (230 ILCS 40/80)
24    Sec. 80. Applicability of Illinois Riverboat Gambling Act.
25The provisions of the Illinois Riverboat Gambling Act, and all

 

 

SB3387- 52 -LRB100 19071 SMS 34327 b

1rules promulgated thereunder, shall apply to the Video Gaming
2Act, except where there is a conflict between the 2 Acts. All
3current supplier licensees under the Riverboat Gambling Act
4shall be entitled to licensure under the Video Gaming Act as
5manufacturers, distributors, or suppliers without additional
6Board investigation or approval, except by vote of the Board;
7however, they are required to pay application and annual fees
8under this Act. All provisions of the Uniform Penalty and
9Interest Act shall apply, as far as practicable, to the subject
10matter of this Act to the same extent as if such provisions
11were included herein.
12(Source: P.A. 96-37, eff. 7-13-09.)

 

 

SB3387- 53 -LRB100 19071 SMS 34327 b

1 INDEX
2 Statutes amended in order of appearance
3    230 ILCS 10/5from Ch. 120, par. 2405
4    230 ILCS 10/7from Ch. 120, par. 2407
5    230 ILCS 10/7.6
6    230 ILCS 10/13from Ch. 120, par. 2413
7    230 ILCS 40/25
8    230 ILCS 40/27
9    230 ILCS 40/45
10    230 ILCS 40/80