Rep. Robert Rita

Adopted in House on Nov 14, 2019





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2    AMENDMENT NO. ______. Amend Senate Bill 222, AS AMENDED, by
3replacing everything after the enacting clause with the
5    "Section 5. The Illinois Gambling Act is amended by
6changing Sections 7.7 and 22 as follows:
7    (230 ILCS 10/7.7)
8    Sec. 7.7. Organization gaming licenses.
9    (a) The Illinois Gaming Board shall award one organization
10gaming license to each person or entity having operating
11control of a racetrack that applies under Section 56 of the
12Illinois Horse Racing Act of 1975, subject to the application
13and eligibility requirements of this Section. Within 60 days
14after the effective date of this amendatory Act of the 101st
15General Assembly, a person or entity having operating control
16of a racetrack may submit an application for an organization



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1gaming license. The application shall be made on such forms as
2provided by the Board and shall contain such information as the
3Board prescribes, including, but not limited to, the identity
4of any racetrack at which gaming will be conducted pursuant to
5an organization gaming license, detailed information regarding
6the ownership and management of the applicant, and detailed
7personal information regarding the applicant. The application
8shall specify the number of gaming positions the applicant
9intends to use and the place where the organization gaming
10facility will operate. A person who knowingly makes a false
11statement on an application is guilty of a Class A misdemeanor.
12    Each applicant shall disclose the identity of every person
13or entity having a direct or indirect pecuniary interest
14greater than 1% in any racetrack with respect to which the
15license is sought. If the disclosed entity is a corporation,
16the applicant shall disclose the names and addresses of all
17officers, stockholders, and directors. If the disclosed entity
18is a limited liability company, the applicant shall disclose
19the names and addresses of all members and managers. If the
20disclosed entity is a partnership, the applicant shall disclose
21the names and addresses of all partners, both general and
22limited. If the disclosed entity is a trust, the applicant
23shall disclose the names and addresses of all beneficiaries.
24    An application shall be filed and considered in accordance
25with the rules of the Board. Each application for an
26organization gaming license shall include a nonrefundable



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1application fee of $250,000. In addition, a nonrefundable fee
2of $50,000 shall be paid at the time of filing to defray the
3costs associated with background investigations conducted by
4the Board. If the costs of the background investigation exceed
5$50,000, the applicant shall pay the additional amount to the
6Board within 7 days after a request by the Board. If the costs
7of the investigation are less than $50,000, the applicant shall
8receive a refund of the remaining amount. All information,
9records, interviews, reports, statements, memoranda, or other
10data supplied to or used by the Board in the course of this
11review or investigation of an applicant for an organization
12gaming license under this Act shall be privileged and strictly
13confidential and shall be used only for the purpose of
14evaluating an applicant for an organization gaming license or a
15renewal. Such information, records, interviews, reports,
16statements, memoranda, or other data shall not be admissible as
17evidence nor discoverable in any action of any kind in any
18court or before any tribunal, board, agency or person, except
19for any action deemed necessary by the Board. The application
20fee shall be deposited into the State Gaming Fund.
21    Any applicant or key person, including the applicant's
22owners, officers, directors (if a corporation), managers and
23members (if a limited liability company), and partners (if a
24partnership), for an organization gaming license shall have his
25or her fingerprints submitted to the Department of State Police
26in an electronic format that complies with the form and manner



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1for requesting and furnishing criminal history record
2information as prescribed by the Department of State Police.
3These fingerprints shall be checked against the Department of
4State Police and Federal Bureau of Investigation criminal
5history record databases now and hereafter filed, including,
6but not limited to, civil, criminal, and latent fingerprint
7databases. The Department of State Police shall charge
8applicants a fee for conducting the criminal history records
9check, which shall be deposited into the State Police Services
10Fund and shall not exceed the actual cost of the records check.
11The Department of State Police shall furnish, pursuant to
12positive identification, records of Illinois criminal history
13to the Department. Each applicant shall submit with his or her
14application, on forms provided by the Board, a set of his or
15her fingerprints. The Board shall charge each applicant a fee
16set by the Department of State Police to defray the costs
17associated with the search and classification of fingerprints
18obtained by the Board with respect to the applicant's
19application. This fee shall be paid into the State Police
20Services Fund.
21    (b) The Board shall determine within 120 days after
22receiving an application for an organization gaming license
23whether to grant an organization gaming license to the
24applicant. If the Board does not make a determination within
25that time period, then the Board shall give a written
26explanation to the applicant as to why it has not reached a



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1determination and when it reasonably expects to make a
3    The organization gaming licensee shall purchase up to the
4amount of gaming positions authorized under this Act within 120
5days after receiving its organization gaming license. If an
6organization gaming licensee is prepared to purchase the gaming
7positions, but is temporarily prohibited from doing so by order
8of a court of competent jurisdiction or the Board, then the
9120-day period is tolled until a resolution is reached.
10    An organization gaming license shall authorize its holder
11to conduct gaming under this Act at its racetracks on the same
12days of the year and hours of the day that owners licenses are
13allowed to operate under approval of the Board.
14    An organization gaming license and any renewal of an
15organization gaming license shall authorize gaming pursuant to
16this Section for a period of 4 years. The fee for the issuance
17or renewal of an organization gaming license shall be $250,000.
18    All payments by licensees under this subsection (b) shall
19be deposited into the Rebuild Illinois Projects Fund.
20    (c) To be eligible to conduct gaming under this Section, a
21person or entity having operating control of a racetrack must
22(i) obtain an organization gaming license, (ii) hold an
23organization license under the Illinois Horse Racing Act of
241975, (iii) hold an inter-track wagering license, (iv) pay an
25initial fee of $30,000 per gaming position from organization
26gaming licensees where gaming is conducted in Cook County and,



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1except as provided in subsection (c-5), $17,500 for
2organization gaming licensees where gaming is conducted
3outside of Cook County before beginning to conduct gaming plus
4make the reconciliation payment required under subsection (k),
5(v) conduct live racing in accordance with subsections (e-1),
6(e-2), and (e-3) of Section 20 of the Illinois Horse Racing Act
7of 1975, (vi) meet the requirements of subsection (a) of
8Section 56 of the Illinois Horse Racing Act of 1975, (vii) for
9organization licensees conducting standardbred race meetings,
10keep backstretch barns and dormitories open and operational
11year-round unless a lesser schedule is mutually agreed to by
12the organization licensee and the horsemen association racing
13at that organization licensee's race meeting, (viii) for
14organization licensees conducting thoroughbred race meetings,
15the organization licensee must maintain accident medical
16expense liability insurance coverage of $1,000,000 for
17jockeys, and (ix) meet all other requirements of this Act that
18apply to owners licensees.
19    An organization gaming licensee may enter into a joint
20venture with a licensed owner to own, manage, conduct, or
21otherwise operate the organization gaming licensee's
22organization gaming facilities, unless the organization gaming
23licensee has a parent company or other affiliated company that
24is, directly or indirectly, wholly owned by a parent company
25that is also licensed to conduct organization gaming, casino
26gaming, or their equivalent in another state.



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1    All payments by licensees under this subsection (c) shall
2be deposited into the Rebuild Illinois Projects Fund.
3    (c-5) A person or entity having operating control of a
4racetrack located in Madison County shall only pay the initial
5fees specified in subsection (c) for 540 of the gaming
6positions authorized under the license.
7    (d) A person or entity is ineligible to receive an
8organization gaming license if:
9        (1) the person or entity has been convicted of a felony
10    under the laws of this State, any other state, or the
11    United States, including a conviction under the Racketeer
12    Influenced and Corrupt Organizations Act;
13        (2) the person or entity has been convicted of any
14    violation of Article 28 of the Criminal Code of 2012, or
15    substantially similar laws of any other jurisdiction;
16        (3) the person or entity has submitted an application
17    for a license under this Act that contains false
18    information;
19        (4) the person is a member of the Board;
20        (5) a person defined in (1), (2), (3), or (4) of this
21    subsection (d) is an officer, director, or managerial
22    employee of the entity;
23        (6) the person or entity employs a person defined in
24    (1), (2), (3), or (4) of this subsection (d) who
25    participates in the management or operation of gambling
26    operations authorized under this Act; or



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1        (7) a license of the person or entity issued under this
2    Act or a license to own or operate gambling facilities in
3    any other jurisdiction has been revoked.
4    (e) The Board may approve gaming positions pursuant to an
5organization gaming license statewide as provided in this
6Section. The authority to operate gaming positions under this
7Section shall be allocated as follows: up to 1,200 gaming
8positions for any organization gaming licensee in Cook County
9and up to 900 gaming positions for any organization gaming
10licensee outside of Cook County.
11    (f) Each applicant for an organization gaming license shall
12specify in its application for licensure the number of gaming
13positions it will operate, up to the applicable limitation set
14forth in subsection (e) of this Section. Any unreserved gaming
15positions that are not specified shall be forfeited and
16retained by the Board. For the purposes of this subsection (f),
17an organization gaming licensee that did not conduct live
18racing in 2010 and is located within 3 miles of the Mississippi
19River may reserve up to 900 positions and shall not be
20penalized under this Section for not operating those positions
21until it meets the requirements of subsection (e) of this
22Section, but such licensee shall not request unreserved gaming
23positions under this subsection (f) until its 900 positions are
24all operational.
25    Thereafter, the Board shall publish the number of
26unreserved gaming positions and shall accept requests for



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1additional positions from any organization gaming licensee
2that initially reserved all of the positions that were offered.
3The Board shall allocate expeditiously the unreserved gaming
4positions to requesting organization gaming licensees in a
5manner that maximizes revenue to the State. The Board may
6allocate any such unused gaming positions pursuant to an open
7and competitive bidding process, as provided under Section 7.5
8of this Act. This process shall continue until all unreserved
9gaming positions have been purchased. All positions obtained
10pursuant to this process and all positions the organization
11gaming licensee specified it would operate in its application
12must be in operation within 18 months after they were obtained
13or the organization gaming licensee forfeits the right to
14operate those positions, but is not entitled to a refund of any
15fees paid. The Board may, after holding a public hearing, grant
16extensions so long as the organization gaming licensee is
17working in good faith to make the positions operational. The
18extension may be for a period of 6 months. If, after the period
19of the extension, the organization gaming licensee has not made
20the positions operational, then another public hearing must be
21held by the Board before it may grant another extension.
22    Unreserved gaming positions retained from and allocated to
23organization gaming licensees by the Board pursuant to this
24subsection (f) shall not be allocated to owners licensees under
25this Act.
26    For the purpose of this subsection (f), the unreserved



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1gaming positions for each organization gaming licensee shall be
2the applicable limitation set forth in subsection (e) of this
3Section, less the number of reserved gaming positions by such
4organization gaming licensee, and the total unreserved gaming
5positions shall be the aggregate of the unreserved gaming
6positions for all organization gaming licensees.
7    (g) An organization gaming licensee is authorized to
8conduct the following at a racetrack:
9        (1) slot machine gambling;
10        (2) video game of chance gambling;
11        (3) gambling with electronic gambling games as defined
12    in this Act or defined by the Illinois Gaming Board; and
13        (4) table games.
14    (h) Subject to the approval of the Illinois Gaming Board,
15an organization gaming licensee may make modification or
16additions to any existing buildings and structures to comply
17with the requirements of this Act. The Illinois Gaming Board
18shall make its decision after consulting with the Illinois
19Racing Board. In no case, however, shall the Illinois Gaming
20Board approve any modification or addition that alters the
21grounds of the organization licensee such that the act of live
22racing is an ancillary activity to gaming authorized under this
23Section. Gaming authorized under this Section may take place in
24existing structures where inter-track wagering is conducted at
25the racetrack or a facility within 300 yards of the racetrack
26in accordance with the provisions of this Act and the Illinois



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1Horse Racing Act of 1975.
2    (i) An organization gaming licensee may conduct gaming at a
3temporary facility pending the construction of a permanent
4facility or the remodeling or relocation of an existing
5facility to accommodate gaming participants for up to 24 months
6after the temporary facility begins to conduct gaming
7authorized under this Section. Upon request by an organization
8gaming licensee and upon a showing of good cause by the
9organization gaming licensee, the Board shall extend the period
10during which the licensee may conduct gaming authorized under
11this Section at a temporary facility by up to 12 months. The
12Board shall make rules concerning the conduct of gaming
13authorized under this Section from temporary facilities.
14    The gaming authorized under this Section may take place in
15existing structures where inter-track wagering is conducted at
16the racetrack or a facility within 300 yards of the racetrack
17in accordance with the provisions of this Act and the Illinois
18Horse Racing Act of 1975.
19    (i-5) Under no circumstances shall an organization gaming
20licensee conduct gaming at any State or county fair.
21    (j) The Illinois Gaming Board must adopt emergency rules in
22accordance with Section 5-45 of the Illinois Administrative
23Procedure Act as necessary to ensure compliance with the
24provisions of this amendatory Act of the 101st General Assembly
25concerning the conduct of gaming by an organization gaming
26licensee. The adoption of emergency rules authorized by this



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



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1(Source: P.A. 101-31, eff. 6-28-19.)
2    (230 ILCS 10/22)  (from Ch. 120, par. 2422)
3    Sec. 22. Criminal history record information. Whenever the
4Board is authorized or required by law to consider some aspect
5of criminal history record information for the purpose of
6carrying out its statutory powers and responsibilities, the
7Board shall, in the form and manner required by the Department
8of State Police and the Federal Bureau of Investigation, cause
9to be conducted a criminal history record investigation to
10obtain any information currently or thereafter contained in the
11files of the Department of State Police or the Federal Bureau
12of Investigation, including, but not limited to, civil,
13criminal, and latent fingerprint databases. Each applicant for
14occupational licensing under Section 9 or key person as defined
15by the Board in administrative rules shall submit his or her
16fingerprints to the Department of State Police in the form and
17manner prescribed by the Department of State Police. These
18fingerprints shall be checked against the fingerprint records
19now and hereafter filed in the Department of State Police and
20Federal Bureau of Investigation criminal history records
21databases, including, but not limited to, civil, criminal, and
22latent fingerprint databases. The Department of State Police
23shall charge a fee for conducting the criminal history records
24check, which shall be deposited in the State Police Services
25Fund and shall not exceed the actual cost of the records check.



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1The Department of State Police shall provide, on the Board's
2request, information concerning any criminal charges, and
3their disposition, currently or thereafter filed against any an
4applicant, key person, for or holder of any an occupational
5license or for determinations of suitability. Information
6obtained as a result of an investigation under this Section
7shall be used in determining eligibility for any an
8occupational license under Section 9. Upon request and payment
9of fees in conformance with the requirements of Section
102605-400 of the Department of State Police Law (20 ILCS
112605/2605-400), the Department of State Police is authorized to
12furnish, pursuant to positive identification, such information
13contained in State files as is necessary to fulfill the
15(Source: P.A. 93-418, eff. 1-1-04.)
16    Section 10. The Sports Wagering Act is amended by changing
17Section 25-20 and by adding Section 25-107 as follows:
18    (230 ILCS 45/25-20)
19    Sec. 25-20. Licenses required.
20    (a) No person may engage in any activity in connection with
21sports wagering in this State unless all necessary licenses
22have been obtained in accordance with this Act and the rules of
23the Board and the Department. The following licenses shall be
24issued under this Act:



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1        (1) master sports wagering license;
2        (2) occupational license;
3        (3) supplier license;
4        (4) management services provider license;
5        (5) tier 2 official league data provider license; and
6        (6) central system provider license.
7    No person or entity may engage in a sports wagering
8operation or activity without first obtaining the appropriate
10    (b) An applicant for a license issued under this Act shall
11submit an application to the Board in the form the Board
12requires. The applicant shall submit fingerprints for a
13national criminal records check by the Department of State
14Police and the Federal Bureau of Investigation. The
15fingerprints shall be furnished by the applicant's owners,
16officers, and directors (if a corporation), managers and
17members (if a limited liability company), and partners (if a
18partnership). The fingerprints shall be accompanied by a signed
19authorization for the release of information by the Federal
20Bureau of Investigation. The Board may require additional
21background checks on licensees when they apply for license
22renewal, and an applicant convicted of a disqualifying offense
23shall not be licensed.
24    (c) Each master sports wagering licensee shall display the
25license conspicuously in the licensee's place of business or
26have the license available for inspection by an agent of the



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1Board or a law enforcement agency.
2    (d) Each holder of an occupational license shall carry the
3license and have some indicia of licensure prominently
4displayed on his or her person when present in a gaming
5facility licensed under this Act at all times, in accordance
6with the rules of the Board.
7    (e) Each person licensed under this Act shall give the
8Board written notice within 30 days after a material change to
9information provided in the licensee's application for a
10license or renewal.
11(Source: P.A. 101-31, eff. 6-28-19; revised 9-26-19.)
12    (230 ILCS 45/25-107 new)
13    Sec. 25-107. Applicability of the Illinois Gambling Act.
14Insofar as a provision of the Sports Wagering Act is silent on
15a provision, the Illinois Gambling Act, and all rules adopted
16thereunder, shall apply to the Sports Wagering Act. If there is
17a conflict between the Sports Wagering Act and the Illinois
18Gambling Act, the Sports Wagering Act shall control.
19    Section 99. Effective date. This Act takes effect upon
20becoming law.".