Illinois General Assembly - Full Text of SB0222
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Full Text of SB0222  101st General Assembly




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1    AN ACT concerning business.
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 changing
5Sections 7.7 and 22 as follows:
6    (230 ILCS 10/7.7)
7    Sec. 7.7. Organization gaming licenses.
8    (a) The Illinois Gaming Board shall award one organization
9gaming license to each person or entity having operating
10control of a racetrack that applies under Section 56 of the
11Illinois Horse Racing Act of 1975, subject to the application
12and eligibility requirements of this Section. Within 60 days
13after the effective date of this amendatory Act of the 101st
14General Assembly, a person or entity having operating control
15of a racetrack may submit an application for an organization
16gaming license. The application shall be made on such forms as
17provided by the Board and shall contain such information as the
18Board prescribes, including, but not limited to, the identity
19of any racetrack at which gaming will be conducted pursuant to
20an organization gaming license, detailed information regarding
21the ownership and management of the applicant, and detailed
22personal information regarding the applicant. The application
23shall specify the number of gaming positions the applicant



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1intends to use and the place where the organization gaming
2facility will operate. A person who knowingly makes a false
3statement on an application is guilty of a Class A misdemeanor.
4    Each applicant shall disclose the identity of every person
5or entity having a direct or indirect pecuniary interest
6greater than 1% in any racetrack with respect to which the
7license is sought. If the disclosed entity is a corporation,
8the applicant shall disclose the names and addresses of all
9officers, stockholders, and directors. If the disclosed entity
10is a limited liability company, the applicant shall disclose
11the names and addresses of all members and managers. If the
12disclosed entity is a partnership, the applicant shall disclose
13the names and addresses of all partners, both general and
14limited. If the disclosed entity is a trust, the applicant
15shall disclose the names and addresses of all beneficiaries.
16    An application shall be filed and considered in accordance
17with the rules of the Board. Each application for an
18organization gaming license shall include a nonrefundable
19application fee of $250,000. In addition, a nonrefundable fee
20of $50,000 shall be paid at the time of filing to defray the
21costs associated with background investigations conducted by
22the Board. If the costs of the background investigation exceed
23$50,000, the applicant shall pay the additional amount to the
24Board within 7 days after a request by the Board. If the costs
25of the investigation are less than $50,000, the applicant shall
26receive a refund of the remaining amount. All information,



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1records, interviews, reports, statements, memoranda, or other
2data supplied to or used by the Board in the course of this
3review or investigation of an applicant for an organization
4gaming license under this Act shall be privileged and strictly
5confidential and shall be used only for the purpose of
6evaluating an applicant for an organization gaming license or a
7renewal. Such information, records, interviews, reports,
8statements, memoranda, or other data shall not be admissible as
9evidence nor discoverable in any action of any kind in any
10court or before any tribunal, board, agency or person, except
11for any action deemed necessary by the Board. The application
12fee shall be deposited into the State Gaming Fund.
13    Any applicant or key person, including the applicant's
14owners, officers, directors (if a corporation), managers and
15members (if a limited liability company), and partners (if a
16partnership), for an organization gaming license shall have his
17or her fingerprints submitted to the Department of State Police
18in an electronic format that complies with the form and manner
19for requesting and furnishing criminal history record
20information as prescribed by the Department of State Police.
21These fingerprints shall be checked against the Department of
22State Police and Federal Bureau of Investigation criminal
23history record databases now and hereafter filed, including,
24but not limited to, civil, criminal, and latent fingerprint
25databases. The Department of State Police shall charge
26applicants a fee for conducting the criminal history records



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1check, which shall be deposited into the State Police Services
2Fund and shall not exceed the actual cost of the records check.
3The Department of State Police shall furnish, pursuant to
4positive identification, records of Illinois criminal history
5to the Department. Each applicant shall submit with his or her
6application, on forms provided by the Board, a set of his or
7her fingerprints. The Board shall charge each applicant a fee
8set by the Department of State Police to defray the costs
9associated with the search and classification of fingerprints
10obtained by the Board with respect to the applicant's
11application. This fee shall be paid into the State Police
12Services Fund.
13    (b) The Board shall determine within 120 days after
14receiving an application for an organization gaming license
15whether to grant an organization gaming license to the
16applicant. If the Board does not make a determination within
17that time period, then the Board shall give a written
18explanation to the applicant as to why it has not reached a
19determination and when it reasonably expects to make a
21    The organization gaming licensee shall purchase up to the
22amount of gaming positions authorized under this Act within 120
23days after receiving its organization gaming license. If an
24organization gaming licensee is prepared to purchase the gaming
25positions, but is temporarily prohibited from doing so by order
26of a court of competent jurisdiction or the Board, then the



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1120-day period is tolled until a resolution is reached.
2    An organization gaming license shall authorize its holder
3to conduct gaming under this Act at its racetracks on the same
4days of the year and hours of the day that owners licenses are
5allowed to operate under approval of the Board.
6    An organization gaming license and any renewal of an
7organization gaming license shall authorize gaming pursuant to
8this Section for a period of 4 years. The fee for the issuance
9or renewal of an organization gaming license shall be $250,000.
10    All payments by licensees under this subsection (b) shall
11be deposited into the Rebuild Illinois Projects Fund.
12    (c) To be eligible to conduct gaming under this Section, a
13person or entity having operating control of a racetrack must
14(i) obtain an organization gaming license, (ii) hold an
15organization license under the Illinois Horse Racing Act of
161975, (iii) hold an inter-track wagering license, (iv) pay an
17initial fee of $30,000 per gaming position from organization
18gaming licensees where gaming is conducted in Cook County and,
19except as provided in subsection (c-5), $17,500 for
20organization gaming licensees where gaming is conducted
21outside of Cook County before beginning to conduct gaming plus
22make the reconciliation payment required under subsection (k),
23(v) conduct live racing in accordance with subsections (e-1),
24(e-2), and (e-3) of Section 20 of the Illinois Horse Racing Act
25of 1975, (vi) meet the requirements of subsection (a) of
26Section 56 of the Illinois Horse Racing Act of 1975, (vii) for



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1organization licensees conducting standardbred race meetings,
2keep backstretch barns and dormitories open and operational
3year-round unless a lesser schedule is mutually agreed to by
4the organization licensee and the horsemen association racing
5at that organization licensee's race meeting, (viii) for
6organization licensees conducting thoroughbred race meetings,
7the organization licensee must maintain accident medical
8expense liability insurance coverage of $1,000,000 for
9jockeys, and (ix) meet all other requirements of this Act that
10apply to owners licensees.
11    An organization gaming licensee may enter into a joint
12venture with a licensed owner to own, manage, conduct, or
13otherwise operate the organization gaming licensee's
14organization gaming facilities, unless the organization gaming
15licensee has a parent company or other affiliated company that
16is, directly or indirectly, wholly owned by a parent company
17that is also licensed to conduct organization gaming, casino
18gaming, or their equivalent in another state.
19    All payments by licensees under this subsection (c) shall
20be deposited into the Rebuild Illinois Projects Fund.
21    (c-5) A person or entity having operating control of a
22racetrack located in Madison County shall only pay the initial
23fees specified in subsection (c) for 540 of the gaming
24positions authorized under the license.
25    (d) A person or entity is ineligible to receive an
26organization gaming license if:



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1        (1) the person or entity has been convicted of a felony
2    under the laws of this State, any other state, or the
3    United States, including a conviction under the Racketeer
4    Influenced and Corrupt Organizations Act;
5        (2) the person or entity has been convicted of any
6    violation of Article 28 of the Criminal Code of 2012, or
7    substantially similar laws of any other jurisdiction;
8        (3) the person or entity has submitted an application
9    for a license under this Act that contains false
10    information;
11        (4) the person is a member of the Board;
12        (5) a person defined in (1), (2), (3), or (4) of this
13    subsection (d) is an officer, director, or managerial
14    employee of the entity;
15        (6) the person or entity employs a person defined in
16    (1), (2), (3), or (4) of this subsection (d) who
17    participates in the management or operation of gambling
18    operations authorized under this Act; or
19        (7) a license of the person or entity issued under this
20    Act or a license to own or operate gambling facilities in
21    any other jurisdiction has been revoked.
22    (e) The Board may approve gaming positions pursuant to an
23organization gaming license statewide as provided in this
24Section. The authority to operate gaming positions under this
25Section shall be allocated as follows: up to 1,200 gaming
26positions for any organization gaming licensee in Cook County



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1and up to 900 gaming positions for any organization gaming
2licensee outside of Cook County.
3    (f) Each applicant for an organization gaming license shall
4specify in its application for licensure the number of gaming
5positions it will operate, up to the applicable limitation set
6forth in subsection (e) of this Section. Any unreserved gaming
7positions that are not specified shall be forfeited and
8retained by the Board. For the purposes of this subsection (f),
9an organization gaming licensee that did not conduct live
10racing in 2010 and is located within 3 miles of the Mississippi
11River may reserve up to 900 positions and shall not be
12penalized under this Section for not operating those positions
13until it meets the requirements of subsection (e) of this
14Section, but such licensee shall not request unreserved gaming
15positions under this subsection (f) until its 900 positions are
16all operational.
17    Thereafter, the Board shall publish the number of
18unreserved gaming positions and shall accept requests for
19additional positions from any organization gaming licensee
20that initially reserved all of the positions that were offered.
21The Board shall allocate expeditiously the unreserved gaming
22positions to requesting organization gaming licensees in a
23manner that maximizes revenue to the State. The Board may
24allocate any such unused gaming positions pursuant to an open
25and competitive bidding process, as provided under Section 7.5
26of this Act. This process shall continue until all unreserved



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1gaming positions have been purchased. All positions obtained
2pursuant to this process and all positions the organization
3gaming licensee specified it would operate in its application
4must be in operation within 18 months after they were obtained
5or the organization gaming licensee forfeits the right to
6operate those positions, but is not entitled to a refund of any
7fees paid. The Board may, after holding a public hearing, grant
8extensions so long as the organization gaming licensee is
9working in good faith to make the positions operational. The
10extension may be for a period of 6 months. If, after the period
11of the extension, the organization gaming licensee has not made
12the positions operational, then another public hearing must be
13held by the Board before it may grant another extension.
14    Unreserved gaming positions retained from and allocated to
15organization gaming licensees by the Board pursuant to this
16subsection (f) shall not be allocated to owners licensees under
17this Act.
18    For the purpose of this subsection (f), the unreserved
19gaming positions for each organization gaming licensee shall be
20the applicable limitation set forth in subsection (e) of this
21Section, less the number of reserved gaming positions by such
22organization gaming licensee, and the total unreserved gaming
23positions shall be the aggregate of the unreserved gaming
24positions for all organization gaming licensees.
25    (g) An organization gaming licensee is authorized to
26conduct the following at a racetrack:



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1        (1) slot machine gambling;
2        (2) video game of chance gambling;
3        (3) gambling with electronic gambling games as defined
4    in this Act or defined by the Illinois Gaming Board; and
5        (4) table games.
6    (h) Subject to the approval of the Illinois Gaming Board,
7an organization gaming licensee may make modification or
8additions to any existing buildings and structures to comply
9with the requirements of this Act. The Illinois Gaming Board
10shall make its decision after consulting with the Illinois
11Racing Board. In no case, however, shall the Illinois Gaming
12Board approve any modification or addition that alters the
13grounds of the organization licensee such that the act of live
14racing is an ancillary activity to gaming authorized under this
15Section. Gaming authorized under this Section may take place in
16existing structures where inter-track wagering is conducted at
17the racetrack or a facility within 300 yards of the racetrack
18in accordance with the provisions of this Act and the Illinois
19Horse Racing Act of 1975.
20    (i) An organization gaming licensee may conduct gaming at a
21temporary facility pending the construction of a permanent
22facility or the remodeling or relocation of an existing
23facility to accommodate gaming participants for up to 24 months
24after the temporary facility begins to conduct gaming
25authorized under this Section. Upon request by an organization
26gaming licensee and upon a showing of good cause by the



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1organization gaming licensee, the Board shall extend the period
2during which the licensee may conduct gaming authorized under
3this Section at a temporary facility by up to 12 months. The
4Board shall make rules concerning the conduct of gaming
5authorized under this Section from temporary facilities.
6    The gaming authorized under this Section may take place in
7existing structures where inter-track wagering is conducted at
8the racetrack or a facility within 300 yards of the racetrack
9in accordance with the provisions of this Act and the Illinois
10Horse Racing Act of 1975.
11    (i-5) Under no circumstances shall an organization gaming
12licensee conduct gaming at any State or county fair.
13    (j) The Illinois Gaming Board must adopt emergency rules in
14accordance with Section 5-45 of the Illinois Administrative
15Procedure Act as necessary to ensure compliance with the
16provisions of this amendatory Act of the 101st General Assembly
17concerning the conduct of gaming by an organization gaming
18licensee. The adoption of emergency rules authorized by this
19subsection (j) shall be deemed to be necessary for the public
20interest, safety, and welfare.
21    (k) Each organization gaming licensee who obtains gaming
22positions must make a reconciliation payment 3 years after the
23date the organization gaming licensee begins operating the
24positions in an amount equal to 75% of the difference between
25its adjusted gross receipts from gaming authorized under this
26Section and amounts paid to its purse accounts pursuant to item



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1(1) of subsection (b) of Section 56 of the Illinois Horse
2Racing Act of 1975 for the 12-month period for which such
3difference was the largest, minus an amount equal to the
4initial per position fee paid by the organization gaming
5licensee. If this calculation results in a negative amount,
6then the organization gaming licensee is not entitled to any
7reimbursement of fees previously paid. This reconciliation
8payment may be made in installments over a period of no more
9than 2 years, subject to Board approval. Any installment
10payments shall include an annual market interest rate as
11determined by the Board.
12    All payments by licensees under this subsection (k) shall
13be deposited into the Rebuild Illinois Projects Fund.
14    (l) As soon as practical after a request is made by the
15Illinois Gaming Board, to minimize duplicate submissions by the
16applicant, the Illinois Racing Board must provide information
17on an applicant for an organization gaming license to the
18Illinois Gaming Board.
19(Source: P.A. 101-31, eff. 6-28-19.)
20    (230 ILCS 10/22)  (from Ch. 120, par. 2422)
21    Sec. 22. Criminal history record information. Whenever the
22Board is authorized or required by law to consider some aspect
23of criminal history record information for the purpose of
24carrying out its statutory powers and responsibilities, the
25Board shall, in the form and manner required by the Department



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1of State Police and the Federal Bureau of Investigation, cause
2to be conducted a criminal history record investigation to
3obtain any information currently or thereafter contained in the
4files of the Department of State Police or the Federal Bureau
5of Investigation, including, but not limited to, civil,
6criminal, and latent fingerprint databases. Each applicant for
7occupational licensing under Section 9 or key person as defined
8by the Board in administrative rules shall submit his or her
9fingerprints to the Department of State Police in the form and
10manner prescribed by the Department of State Police. These
11fingerprints shall be checked against the fingerprint records
12now and hereafter filed in the Department of State Police and
13Federal Bureau of Investigation criminal history records
14databases, including, but not limited to, civil, criminal, and
15latent fingerprint databases. The Department of State Police
16shall charge a fee for conducting the criminal history records
17check, which shall be deposited in the State Police Services
18Fund and shall not exceed the actual cost of the records check.
19The Department of State Police shall provide, on the Board's
20request, information concerning any criminal charges, and
21their disposition, currently or thereafter filed against any an
22applicant, key person, for or holder of any an occupational
23license or for determinations of suitability. Information
24obtained as a result of an investigation under this Section
25shall be used in determining eligibility for any an
26occupational license under Section 9. Upon request and payment



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1of fees in conformance with the requirements of Section
22605-400 of the Department of State Police Law (20 ILCS
32605/2605-400), the Department of State Police is authorized to
4furnish, pursuant to positive identification, such information
5contained in State files as is necessary to fulfill the
7(Source: P.A. 93-418, eff. 1-1-04.)
8    Section 10. The Sports Wagering Act is amended by changing
9Section 25-20 and by adding Section 25-107 as follows:
10    (230 ILCS 45/25-20)
11    Sec. 25-20. Licenses required.
12    (a) No person may engage in any activity in connection with
13sports wagering in this State unless all necessary licenses
14have been obtained in accordance with this Act and the rules of
15the Board and the Department. The following licenses shall be
16issued under this Act:
17        (1) master sports wagering license;
18        (2) occupational license;
19        (3) supplier license;
20        (4) management services provider license;
21        (5) tier 2 official league data provider license; and
22        (6) central system provider license.
23    No person or entity may engage in a sports wagering
24operation or activity without first obtaining the appropriate



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2    (b) An applicant for a license issued under this Act shall
3submit an application to the Board in the form the Board
4requires. The applicant shall submit fingerprints for a
5national criminal records check by the Department of State
6Police and the Federal Bureau of Investigation. The
7fingerprints shall be furnished by the applicant's owners,
8officers, and directors (if a corporation), managers and
9members (if a limited liability company), and partners (if a
10partnership). The fingerprints shall be accompanied by a signed
11authorization for the release of information by the Federal
12Bureau of Investigation. The Board may require additional
13background checks on licensees when they apply for license
14renewal, and an applicant convicted of a disqualifying offense
15shall not be licensed.
16    (c) Each master sports wagering licensee shall display the
17license conspicuously in the licensee's place of business or
18have the license available for inspection by an agent of the
19Board or a law enforcement agency.
20    (d) Each holder of an occupational license shall carry the
21license and have some indicia of licensure prominently
22displayed on his or her person when present in a gaming
23facility licensed under this Act at all times, in accordance
24with the rules of the Board.
25    (e) Each person licensed under this Act shall give the
26Board written notice within 30 days after a material change to



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1information provided in the licensee's application for a
2license or renewal.
3(Source: P.A. 101-31, eff. 6-28-19; revised 9-26-19.)
4    (230 ILCS 45/25-107 new)
5    Sec. 25-107. Applicability of the Illinois Gambling Act.
6Insofar as a provision of the Sports Wagering Act is silent on
7a provision, the Illinois Gambling Act, and all rules adopted
8thereunder, shall apply to the Sports Wagering Act. If there is
9a conflict between the Sports Wagering Act and the Illinois
10Gambling Act, the Sports Wagering Act shall control.
11    Section 99. Effective date. This Act takes effect upon
12becoming law.