Illinois General Assembly - Full Text of SB0535
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Full Text of SB0535  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 2/23/2021, by Sen. Bill Cunningham


230 ILCS 10/8  from Ch. 120, par. 2408
230 ILCS 10/8.1 new
230 ILCS 40/50
230 ILCS 45/25-50

    Amends the Illinois Gambling Act. Provides that an applicant for a suppliers license under the Act that already holds a specified license issued by the Illinois Gaming Board is entitled to licensure as a supplier under the Act without additional Board investigation or approval, except by a vote of the Board. Provides that an initial suppliers license shall be issued for 4 years and may be renewed for additional 4-year periods. Provides that if a holder of a specified license issued by the Board is granted an additional license issued by the Board, the initial period of the new license shall expire at the earliest expiration date of any other specified licenses held by the licensee. Amends the Video Gaming Act. Changes the period for a terminal handler, technician, licensed establishment, licensed truck stop establishment, licensed large truck establishment, licensed fraternal establishment, and licensed fraternal establishment license from one year to 2 years. Changes the period for a manufacturer, distributor, supplier, and terminal operator license from one year to 4 years. Amends the Sports Wagering Act. Changes the renewal period for a supplier license from one year to 4 years. Provides that beginning 4 years after issuance of the initial supplier license, a holder of a supplier license shall pay a $150,000 annual license fee. Effective immediately.

LRB102 05176 SMS 15197 b






SB0535LRB102 05176 SMS 15197 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 Illinois Gambling Act is amended by
5changing Section 8 and by adding Section 8.1 as follows:
6    (230 ILCS 10/8)  (from Ch. 120, par. 2408)
7    Sec. 8. Suppliers licenses.
8    (a) The Board may issue a suppliers license to such
9persons, firms or corporations which apply therefor upon the
10payment of a non-refundable application fee set by the Board,
11upon a determination by the Board that the applicant is
12eligible for a suppliers license and upon payment of a $5,000
13annual license fee. At the time of application for a supplier
14license under this Act, a person that holds a license as a
15manufacturer, distributor, or supplier under the Video Gaming
16Act or a supplier license under the Sports Wagering Act shall
17be entitled to licensure under this Act as a supplier without
18additional Board investigation or approval, except by vote of
19the Board; however, the applicant shall pay all fees required
20for a suppliers license under this Act.
21    (a-5) Except as provided by Section 8.1, the initial
22suppliers license shall be issued for 4 years. Thereafter, the
23license may be renewed for additional 4-year periods unless



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1sooner cancelled or terminated.
2    (b) The holder of a suppliers license is authorized to
3sell or lease, and to contract to sell or lease, gambling
4equipment and supplies to any licensee involved in the
5ownership or management of gambling operations.
6    (c) Gambling supplies and equipment may not be distributed
7unless supplies and equipment conform to standards adopted by
8rules of the Board.
9    (d) A person, firm or corporation is ineligible to receive
10a suppliers license if:
11        (1) the person has been convicted of a felony under
12    the laws of this State, any other state, or the United
13    States;
14        (2) the person has been convicted of any violation of
15    Article 28 of the Criminal Code of 1961 or the Criminal
16    Code of 2012, or substantially similar laws of any other
17    jurisdiction;
18        (3) the person has submitted an application for a
19    license under this Act which contains false information;
20        (4) the person is a member of the Board;
21        (5) the entity is one in which a person defined in (1),
22    (2), (3) or (4), is an officer, director or managerial
23    employee;
24        (6) the firm or corporation employs a person who
25    participates in the management or operation of gambling
26    authorized under this Act;



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1        (7) the license of the person, firm or corporation
2    issued under this Act, or a license to own or operate
3    gambling facilities in any other jurisdiction, has been
4    revoked.
5    (e) Any person that supplies any equipment, devices, or
6supplies to a licensed gambling operation must first obtain a
7suppliers license. A supplier shall furnish to the Board a
8list of all equipment, devices and supplies offered for sale
9or lease in connection with gambling games authorized under
10this Act. A supplier shall keep books and records for the
11furnishing of equipment, devices and supplies to gambling
12operations separate and distinct from any other business that
13the supplier might operate. A supplier shall file a quarterly
14return with the Board listing all sales and leases. A supplier
15shall permanently affix its name or a distinctive logo or
16other mark or design element identifying the manufacturer or
17supplier to all its equipment, devices, and supplies, except
18gaming chips without a value impressed, engraved, or imprinted
19on it, for gambling operations. The Board may waive this
20requirement for any specific product or products if it
21determines that the requirement is not necessary to protect
22the integrity of the game. Items purchased from a licensed
23supplier may continue to be used even though the supplier
24subsequently changes its name, distinctive logo, or other mark
25or design element; undergoes a change in ownership; or ceases
26to be licensed as a supplier for any reason. Any supplier's



SB0535- 4 -LRB102 05176 SMS 15197 b

1equipment, devices or supplies which are used by any person in
2an unauthorized gambling operation shall be forfeited to the
3State. A holder of an owners license or an organization gaming
4license may own its own equipment, devices and supplies. Each
5holder of an owners license or an organization gaming license
6under the Act shall file an annual report listing its
7inventories of gambling equipment, devices and supplies.
8    (f) Any person who knowingly makes a false statement on an
9application is guilty of a Class A misdemeanor.
10    (g) Any gambling equipment, devices and supplies provided
11by any licensed supplier may either be repaired on the
12riverboat, in the casino, or at the organization gaming
13facility or removed from the riverboat, casino, or
14organization gaming facility to a facility owned by the holder
15of an owners license, organization gaming license, or
16suppliers license for repair.
17(Source: P.A. 101-31, eff. 6-28-19.)
18    (230 ILCS 10/8.1 new)
19    Sec. 8.1. Harmonization of supplier category licenses.
20    (a) As used in this Section, "supplier category license"
21means a suppliers license issued under this Act, a supplier
22license issued under the Sports Wagering Act, or a
23manufacturer, distributor, or supplier license issued under
24the Video Gaming Act.
25    (b) If a holder of any supplier category license is



SB0535- 5 -LRB102 05176 SMS 15197 b

1granted an additional supplier category license, the initial
2period of the new supplier category license shall expire at
3the earliest expiration date of any other supplier category
4license held by the licensee. If a licensee holds multiple
5supplier category licenses on the effective date of this
6amendatory Act of the 102nd General Assembly, all supplier
7category licenses shall expire at the earliest expiration date
8of any of the supplier category licenses held by the licensee.
9    Section 10. The Video Gaming Act is amended by changing
10Section 50 as follows:
11    (230 ILCS 40/50)
12    Sec. 50. Distribution of license fees.
13    (a) All fees collected under Section 45 shall be deposited
14into the State Gaming Fund.
15    (b) Fees collected under Section 45 shall be used as
17        (1) Twenty-five percent shall be paid, subject to
18    appropriation by the General Assembly, to the Department
19    of Human Services for administration of programs for the
20    treatment of compulsive gambling.
21        (2) Seventy-five percent shall be used for the
22    administration of this Act.
23    (c) All initial terminal handler, technician, licensed
24establishment, licensed truck stop establishment, licensed



SB0535- 6 -LRB102 05176 SMS 15197 b

1large truck establishment, licensed fraternal establishment,
2and licensed fraternal establishment licenses issued by the
3Board under this Act shall be issued for 2 years and are
4renewable for additional 2-year periods annually unless sooner
5cancelled or terminated. Except as provided by Section 8.1 of
6the Illinois Gambling Act, all initial manufacturer,
7distributor, supplier, and terminal operator licenses issued
8by the Board under this Act shall be issued for 4 years and are
9renewable for additional 4-year periods unless sooner
10cancelled or terminated. No license issued under this Act is
11transferable or assignable.
12(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
13    Section 15. The Sports Wagering Act is amended by changing
14Section 25-50 as follows:
15    (230 ILCS 45/25-50)
16    Sec. 25-50. Supplier license.
17    (a) The Board may issue a supplier license to a person to
18sell or lease sports wagering equipment, systems, or other
19gaming items to conduct sports wagering and offer services
20related to the equipment or other gaming items and data to a
21master sports wagering licensee while the license is active.
22    (b) The Board may adopt rules establishing additional
23requirements for a supplier and any system or other equipment
24utilized for sports wagering. The Board may accept licensing



SB0535- 7 -LRB102 05176 SMS 15197 b

1by another jurisdiction that it specifically determines to
2have similar licensing requirements as evidence the applicant
3meets supplier licensing requirements.
4    (c) An applicant for a supplier license shall demonstrate
5that the equipment, system, or services that the applicant
6plans to offer to the master sports wagering licensee conforms
7to standards established by the Board and applicable State
8law. The Board may accept approval by another jurisdiction
9that it specifically determines have similar equipment
10standards as evidence the applicant meets the standards
11established by the Board and applicable State law.
12    (d) Applicants shall pay to the Board a nonrefundable
13license and application fee in the amount of $150,000. Except
14as provided by Section 8.1 of the Illinois Gambling Act, the
15initial supplier license shall be issued for 4 years unless
16sooner cancelled or terminated. After the initial period
174-year term, the Board shall renew supplier licenses for
18additional 4-year periods unless sooner cancelled or
19terminated annually thereafter. Renewal of a supplier license
20shall be granted to a renewal applicant who has continued to
21comply with all applicable statutory and regulatory
22requirements, upon submission of the Board-issued renewal form
23and payment of a $150,000 renewal fee. Beginning 4 years after
24issuance of the initial supplier license, a holder of a
25supplier license shall pay a $150,000 annual license fee.
26    (e) A supplier shall submit to the Board a list of all



SB0535- 8 -LRB102 05176 SMS 15197 b

1sports wagering equipment and services sold, delivered, or
2offered to a master sports wagering licensee in this State, as
3required by the Board, all of which must be tested and approved
4by an independent testing laboratory approved by the Board. A
5master sports wagering licensee may continue to use supplies
6acquired from a licensed supplier, even if a supplier's
7license expires or is otherwise canceled, unless the Board
8finds a defect in the supplies.
9(Source: P.A. 101-31, eff. 6-28-19.)
10    Section 99. Effective date. This Act takes effect upon
11becoming law.