Illinois General Assembly - Full Text of SB2523
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Full Text of SB2523  99th General Assembly




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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 Section 5 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



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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



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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



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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
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 shall may utilize the
21services of all one or more independent outside testing
22laboratories that have been accredited by a national
23accreditation body signifying they are qualified to and that,
24in the judgment of the Board, are qualified to perform such
25examinations. The Board shall not unreasonably withhold its
26recognition of an accredited independent outside testing



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1laboratory as long as the laboratory is found suitable by the
2Board and holds a license to perform such examinations in good
3standing or is recognized to perform such examinations in New
4Jersey, Nevada, or Ohio.
5    (8) The Board shall employ such personnel as may be
6necessary to carry out its functions and shall determine the
7salaries of all personnel, except those personnel whose
8salaries are determined under the terms of a collective
9bargaining agreement. No person shall be employed to serve the
10Board who is, or whose spouse, parent or child is, an official
11of, or has a financial interest in or financial relation with,
12any operator engaged in gambling operations within this State
13or any organization engaged in conducting horse racing within
14this State. Any employee violating these prohibitions shall be
15subject to termination of employment.
16    (9) An Administrator shall perform any and all duties that
17the Board shall assign him. The salary of the Administrator
18shall be determined by the Board and, in addition, he shall be
19reimbursed for all actual and necessary expenses incurred by
20him in discharge of his official duties. The Administrator
21shall keep records of all proceedings of the Board and shall
22preserve all records, books, documents and other papers
23belonging to the Board or entrusted to its care. The
24Administrator shall devote his full time to the duties of the
25office and shall not hold any other office or employment.
26    (b) The Board shall have general responsibility for the



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1implementation of this Act. Its duties include, without
2limitation, the following:
3        (1) To decide promptly and in reasonable order all
4    license applications. Any party aggrieved by an action of
5    the Board denying, suspending, revoking, restricting or
6    refusing to renew a license may request a hearing before
7    the Board. A request for a hearing must be made to the
8    Board in writing within 5 days after service of notice of
9    the action of the Board. Notice of the action of the Board
10    shall be served either by personal delivery or by certified
11    mail, postage prepaid, to the aggrieved party. Notice
12    served by certified mail shall be deemed complete on the
13    business day following the date of such mailing. The Board
14    shall conduct all requested hearings promptly and in
15    reasonable order;
16        (2) To conduct all hearings pertaining to civil
17    violations of this Act or rules and regulations promulgated
18    hereunder;
19        (3) To promulgate such rules and regulations as in its
20    judgment may be necessary to protect or enhance the
21    credibility and integrity of gambling operations
22    authorized by this Act and the regulatory process
23    hereunder;
24        (4) To provide for the establishment and collection of
25    all license and registration fees and taxes imposed by this
26    Act and the rules and regulations issued pursuant hereto.



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1    All such fees and taxes shall be deposited into the State
2    Gaming Fund;
3        (5) To provide for the levy and collection of penalties
4    and fines for the violation of provisions of this Act and
5    the rules and regulations promulgated hereunder. All such
6    fines and penalties shall be deposited into the Education
7    Assistance Fund, created by Public Act 86-0018, of the
8    State of Illinois;
9        (6) To be present through its inspectors and agents any
10    time gambling operations are conducted on any riverboat for
11    the purpose of certifying the revenue thereof, receiving
12    complaints from the public, and conducting such other
13    investigations into the conduct of the gambling games and
14    the maintenance of the equipment as from time to time the
15    Board may deem necessary and proper;
16        (7) To review and rule upon any complaint by a licensee
17    regarding any investigative procedures of the State which
18    are unnecessarily disruptive of gambling operations. The
19    need to inspect and investigate shall be presumed at all
20    times. The disruption of a licensee's operations shall be
21    proved by clear and convincing evidence, and establish
22    that: (A) the procedures had no reasonable law enforcement
23    purposes, and (B) the procedures were so disruptive as to
24    unreasonably inhibit gambling operations;
25        (8) To hold at least one meeting each quarter of the
26    fiscal year. In addition, special meetings may be called by



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1    the Chairman or any 2 Board members upon 72 hours written
2    notice to each member. All Board meetings shall be subject
3    to the Open Meetings Act. Three members of the Board shall
4    constitute a quorum, and 3 votes shall be required for any
5    final determination by the Board. The Board shall keep a
6    complete and accurate record of all its meetings. A
7    majority of the members of the Board shall constitute a
8    quorum for the transaction of any business, for the
9    performance of any duty, or for the exercise of any power
10    which this Act requires the Board members to transact,
11    perform or exercise en banc, except that, upon order of the
12    Board, one of the Board members or an administrative law
13    judge designated by the Board may conduct any hearing
14    provided for under this Act or by Board rule and may
15    recommend findings and decisions to the Board. The Board
16    member or administrative law judge conducting such hearing
17    shall have all powers and rights granted to the Board in
18    this Act. The record made at the time of the hearing shall
19    be reviewed by the Board, or a majority thereof, and the
20    findings and decision of the majority of the Board shall
21    constitute the order of the Board in such case;
22        (9) To maintain records which are separate and distinct
23    from the records of any other State board or commission.
24    Such records shall be available for public inspection and
25    shall accurately reflect all Board proceedings;
26        (10) To file a written annual report with the Governor



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1    on or before March 1 each year and such additional reports
2    as the Governor may request. The annual report shall
3    include a statement of receipts and disbursements by the
4    Board, actions taken by the Board, and any additional
5    information and recommendations which the Board may deem
6    valuable or which the Governor may request;
7        (11) (Blank);
8        (12) (Blank);
9        (13) To assume responsibility for administration and
10    enforcement of the Video Gaming Act; and
11        (14) To adopt, by rule, a code of conduct governing
12    Board members and employees that ensure, to the maximum
13    extent possible, that persons subject to this Code avoid
14    situations, relationships, or associations that may
15    represent or lead to a conflict of interest.
16    (c) The Board shall have jurisdiction over and shall
17supervise all gambling operations governed by this Act. The
18Board shall have all powers necessary and proper to fully and
19effectively execute the provisions of this Act, including, but
20not limited to, the following:
21        (1) To investigate applicants and determine the
22    eligibility of applicants for licenses and to select among
23    competing applicants the applicants which best serve the
24    interests of the citizens of Illinois.
25        (2) To have jurisdiction and supervision over all
26    riverboat gambling operations in this State and all persons



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



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1    and facilities.
2        (8) To require that the records, including financial or
3    other statements of any licensee under this Act, shall be
4    kept in such manner as prescribed by the Board and that any
5    such licensee involved in the ownership or management of
6    gambling operations submit to the Board an annual balance
7    sheet and profit and loss statement, list of the
8    stockholders or other persons having a 1% or greater
9    beneficial interest in the gambling activities of each
10    licensee, and any other information the Board deems
11    necessary in order to effectively administer this Act and
12    all rules, regulations, orders and final decisions
13    promulgated under this Act.
14        (9) To conduct hearings, issue subpoenas for the
15    attendance of witnesses and subpoenas duces tecum for the
16    production of books, records and other pertinent documents
17    in accordance with the Illinois Administrative Procedure
18    Act, and to administer oaths and affirmations to the
19    witnesses, when, in the judgment of the Board, it is
20    necessary to administer or enforce this Act or the Board
21    rules.
22        (10) To prescribe a form to be used by any licensee
23    involved in the ownership or management of gambling
24    operations as an application for employment for their
25    employees.
26        (11) To revoke or suspend licenses, as the Board may



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1    see fit and in compliance with applicable laws of the State
2    regarding administrative procedures, and to review
3    applications for the renewal of licenses. The Board may
4    suspend an owners license, without notice or hearing upon a
5    determination that the safety or health of patrons or
6    employees is jeopardized by continuing a riverboat's
7    operation. The suspension may remain in effect until the
8    Board determines that the cause for suspension has been
9    abated. The Board may revoke the owners license upon a
10    determination that the owner has not made satisfactory
11    progress toward abating the hazard.
12        (12) To eject or exclude or authorize the ejection or
13    exclusion of, any person from riverboat gambling
14    facilities where such person is in violation of this Act,
15    rules and regulations thereunder, or final orders of the
16    Board, or where such person's conduct or reputation is such
17    that his presence within the riverboat gambling facilities
18    may, in the opinion of the Board, call into question the
19    honesty and integrity of the gambling operations or
20    interfere with orderly conduct thereof; provided that the
21    propriety of such ejection or exclusion is subject to
22    subsequent hearing by the Board.
23        (13) To require all licensees of gambling operations to
24    utilize a cashless wagering system whereby all players'
25    money is converted to tokens, electronic cards, or chips
26    which shall be used only for wagering in the gambling



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1    establishment.
2        (14) (Blank).
3        (15) To suspend, revoke or restrict licenses, to
4    require the removal of a licensee or an employee of a
5    licensee for a violation of this Act or a Board rule or for
6    engaging in a fraudulent practice, and to impose civil
7    penalties of up to $5,000 against individuals and up to
8    $10,000 or an amount equal to the daily gross receipts,
9    whichever is larger, against licensees for each violation
10    of any provision of the Act, any rules adopted by the
11    Board, any order of the Board or any other action which, in
12    the Board's discretion, is a detriment or impediment to
13    riverboat gambling operations.
14        (16) To hire employees to gather information, conduct
15    investigations and carry out any other tasks contemplated
16    under this Act.
17        (17) To establish minimum levels of insurance to be
18    maintained by licensees.
19        (18) To authorize a licensee to sell or serve alcoholic
20    liquors, wine or beer as defined in the Liquor Control Act
21    of 1934 on board a riverboat and to have exclusive
22    authority to establish the hours for sale and consumption
23    of alcoholic liquor on board a riverboat, notwithstanding
24    any provision of the Liquor Control Act of 1934 or any
25    local ordinance, and regardless of whether the riverboat
26    makes excursions. The establishment of the hours for sale



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1    and consumption of alcoholic liquor on board a riverboat is
2    an exclusive power and function of the State. A home rule
3    unit may not establish the hours for sale and consumption
4    of alcoholic liquor on board a riverboat. This amendatory
5    Act of 1991 is a denial and limitation of home rule powers
6    and functions under subsection (h) of Section 6 of Article
7    VII of the Illinois Constitution.
8        (19) After consultation with the U.S. Army Corps of
9    Engineers, to establish binding emergency orders upon the
10    concurrence of a majority of the members of the Board
11    regarding the navigability of water, relative to
12    excursions, in the event of extreme weather conditions,
13    acts of God or other extreme circumstances.
14        (20) To delegate the execution of any of its powers
15    under this Act for the purpose of administering and
16    enforcing this Act and its rules and regulations hereunder.
17        (20.5) To approve any contract entered into on its
18    behalf.
19        (20.6) To appoint investigators to conduct
20    investigations, searches, seizures, arrests, and other
21    duties imposed under this Act, as deemed necessary by the
22    Board. These investigators have and may exercise all of the
23    rights and powers of peace officers, provided that these
24    powers shall be limited to offenses or violations occurring
25    or committed on a riverboat or dock, as defined in
26    subsections (d) and (f) of Section 4, or as otherwise



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



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1shall be paid by the Board in conformance with the requirements
2of Section 2605-400 of the Department of State Police Law (20
3ILCS 2605/2605-400).
4    (e) The Board must authorize to each investigator and to
5any other employee of the Board exercising the powers of a
6peace officer a distinct badge that, on its face, (i) clearly
7states that the badge is authorized by the Board and (ii)
8contains a unique identifying number. No other badge shall be
9authorized by the Board.
10(Source: P.A. 98-377, eff. 1-1-14; 98-582, eff. 8-27-13.)
11    Section 10. The Video Gaming Act is amended by changing
12Section 15 as follows:
13    (230 ILCS 40/15)
14    Sec. 15. Minimum requirements for licensing and
15registration. Every video gaming terminal offered for play
16shall first be tested and approved pursuant to the rules of the
17Board, and each video gaming terminal offered in this State for
18play shall conform to an approved model. For the examination of
19video gaming machines and associated equipment as required by
20this Section, the Board shall may utilize the services of all
21one or more independent outside testing laboratories that have
22been accredited by a national accreditation body signifying
23they are qualified to and that, in the judgment of the Board,
24are qualified to perform such examinations. The Board shall not



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1unreasonably withhold its recognition of an accredited
2independent outside testing laboratory as long as the
3laboratory is found suitable by the Board and holds a license
4to perform such examinations in good standing or is recognized
5to perform such examinations in New Jersey, Nevada, or Ohio.
6Every video gaming terminal offered in this State for play must
7meet minimum standards set by an independent outside testing
8laboratory approved by the Board. Each approved model shall, at
9a minimum, meet the following criteria:
10        (1) It must conform to all requirements of federal law
11    and regulations, including FCC Class A Emissions
12    Standards.
13        (2) It must theoretically pay out a mathematically
14    demonstrable percentage during the expected lifetime of
15    the machine of all amounts played, which must not be less
16    than 80%. The Board shall establish a maximum payout
17    percentage for approved models by rule. Video gaming
18    terminals that may be affected by skill must meet this
19    standard when using a method of play that will provide the
20    greatest return to the player over a period of continuous
21    play.
22        (3) It must use a random selection process to determine
23    the outcome of each play of a game. The random selection
24    process must meet 99% confidence limits using a standard
25    chi-squared test for (randomness) goodness of fit.
26        (4) It must display an accurate representation of the



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1    game outcome.
2        (5) It must not automatically alter pay tables or any
3    function of the video gaming terminal based on internal
4    computation of hold percentage or have any means of
5    manipulation that affects the random selection process or
6    probabilities of winning a game.
7        (6) It must not be adversely affected by static
8    discharge or other electromagnetic interference.
9        (7) It must be capable of detecting and displaying the
10    following conditions during idle states or on demand: power
11    reset; door open; and door just closed.
12        (8) It must have the capacity to display complete play
13    history (outcome, intermediate play steps, credits
14    available, bets placed, credits paid, and credits cashed
15    out) for the most recent game played and 10 games prior
16    thereto.
17        (9) The theoretical payback percentage of a video
18    gaming terminal must not be capable of being changed
19    without making a hardware or software change in the video
20    gaming terminal, either on site or via the central
21    communications system.
22        (10) Video gaming terminals must be designed so that
23    replacement of parts or modules required for normal
24    maintenance does not necessitate replacement of the
25    electromechanical meters.
26        (11) It must have nonresettable meters housed in a



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1    locked area of the terminal that keep a permanent record of
2    all cash inserted into the machine, all winnings made by
3    the terminal printer, credits played in for video gaming
4    terminals, and credits won by video gaming players. The
5    video gaming terminal must provide the means for on-demand
6    display of stored information as determined by the Board.
7        (12) Electronically stored meter information required
8    by this Section must be preserved for a minimum of 180 days
9    after a power loss to the service.
10        (13) It must have one or more mechanisms that accept
11    cash in the form of bills. The mechanisms shall be designed
12    to prevent obtaining credits without paying by stringing,
13    slamming, drilling, or other means. If such attempts at
14    physical tampering are made, the video gaming terminal
15    shall suspend itself from operating until reset.
16        (14) It shall have accounting software that keeps an
17    electronic record which includes, but is not limited to,
18    the following: total cash inserted into the video gaming
19    terminal; the value of winning tickets claimed by players;
20    the total credits played; the total credits awarded by a
21    video gaming terminal; and pay back percentage credited to
22    players of each video game.
23        (15) It shall be linked by a central communications
24    system to provide auditing program information as approved
25    by the Board. The central communications system shall use a
26    standard industry protocol, as defined by the Gaming



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1    Standards Association, and shall have the functionality to
2    enable the Board or its designee to activate or deactivate
3    individual gaming devices from the central communications
4    system. In no event may the communications system approved
5    by the Board limit participation to only one manufacturer
6    of video gaming terminals by either the cost in
7    implementing the necessary program modifications to
8    communicate or the inability to communicate with the
9    central communications system.
10        (16) The Board, in its discretion, may require video
11    gaming terminals to display Amber Alert messages if the
12    Board makes a finding that it would be economically and
13    technically feasible and pose no risk to the integrity and
14    security of the central communications system and video
15    gaming terminals.
16    The Board may adopt rules to establish additional criteria
17to preserve the integrity and security of video gaming in this
18State. The central communications system vendor may be licensed
19as a video gaming terminal manufacturer or a video gaming
20terminal distributor, or both, but in no event shall the
21central communications system vendor be licensed as a video
22gaming terminal operator.
23    The Board shall not permit the development of information
24or the use by any licensee of gaming device or individual game
25performance data. Nothing in this Act shall inhibit or prohibit
26the Board from the use of gaming device or individual game



SB2523 Engrossed- 21 -LRB099 18503 AMC 42882 b

1performance data in its regulatory duties. The Board shall
2adopt rules to ensure that all licensees are treated and all
3licensees act in a non-discriminatory manner and develop
4processes and penalties to enforce those rules.
5(Source: P.A. 98-31, eff. 6-24-13; 98-377, eff. 1-1-14; 98-582,
6eff. 8-27-13; 98-756, eff. 7-16-14.)