State of Illinois
90th General Assembly
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90_HB0607

      230 ILCS 10/Act title
      230 ILCS 10/3.5 new
      230 ILCS 10/4             from Ch. 120, par. 2404
      230 ILCS 10/6             from Ch. 120, par. 2406
      230 ILCS 10/7             from Ch. 120, par. 2407
      230 ILCS 10/11            from Ch. 120, par. 2411
      230 ILCS 10/11.2 new
      230 ILCS 10/13            from Ch. 120, par. 2413
          Amends the Riverboat  Gambling  Act.   Permits  riverboat
      gambling  on  permanently  moored  barges.   Permits dockside
      gambling if the municipality or county submits to the  voters
      the  question  of whether dockside gambling should be allowed
      in the  municipality  or  county.   Allows  a  licensee  that
      receives  Board  permission  to operate a secondary home dock
      location and move up to two-thirds of its gaming positions to
      that location if the  licensee  meets  certain  requirements.
      Deletes provision that allows gambling excursion cruises only
      when the navigable stream for which the riverboat is licensed
      is navigable.  Changes the license renewal period to 4 years.
      Effective immediately.
                                                    LRB9001159LDdvA
                                              LRB9001159LDdvA
 1        AN  ACT  to  amend the Riverboat Gambling Act by changing
 2    the title of the Act and Sections 4, 6, 7, 11,  12,  and  13,
 3    adding Sections 3.5 and 11.2.
 4        Be  it  enacted  by  the People of the State of Illinois,
 5    represented in the General Assembly:
 6        Section 5.  The Riverboat  Gambling  Act  is  amended  by
 7    changing  the  title of the Act and Sections 4, 6, 7, 11, 12,
 8    and 13 and adding Sections 3.5 and 11.2 as follows:
 9        (230 ILCS 10/Act title)
10        An  Act  to  authorize  certain  forms  of  gambling   on
11    excursion gambling boats.
12    (Source: P.A. 86-1029.)
13        (230 ILCS 10/3.5 new)
14        Sec. 3.5.  Dockside gambling advisory referendum.  Before
15    a  licensee may conduct dockside gambling under this Act, the
16    municipality where the riverboat docks, or the  county  where
17    the   riverboat   docks   if   it  does  not  dock  within  a
18    municipality, shall submit an advisory question to the voters
19    of the municipality or county, as the case may be, of whether
20    dockside gambling should be permitted in the municipality  or
21    county.
22        (230 ILCS 10/4) (from Ch. 120, par. 2404)
23        Sec. 4.  Definitions. As used in this Act:
24        (a)  "Board" means the Illinois Gaming Board.
25        (b)  "Occupational license" means a license issued by the
26    Board  to  a  person or entity to perform an occupation which
27    the Board has identified as requiring a license to engage  in
28    riverboat gambling in Illinois.
29        (c)  "Gambling  game"  includes,  but  is not limited to,
                            -2-               LRB9001159LDdvA
 1    baccarat, twenty-one, poker, craps, slot machine, video  game
 2    of  chance,  roulette wheel, klondike table, punchboard, faro
 3    layout, keno layout, numbers ticket, push card,  jar  ticket,
 4    or  pull  tab  which is authorized by the Board as a wagering
 5    device under this Act.
 6        (d)  "Riverboat" means a self-propelled excursion boat or
 7    a permanently  moored  barge  on  which  lawful  gambling  is
 8    authorized and licensed as provided in this Act.
 9        (e)  (Blank).  "Gambling excursion" means the time during
10    which gambling games may be operated on a riverboat.
11        (f)  "Dock" means the location where a gaming facility an
12    excursion  riverboat  moors  for  the  purpose  of  embarking
13    passengers for and disembarking passengers  from  a  gambling
14    facility excursion.
15        (g)  "Gross  receipts"  means  the  total amount of money
16    exchanged for the purchase of  chips,  tokens  or  electronic
17    cards by riverboat patrons.
18        (h)  "Adjusted  gross  receipts" means the gross receipts
19    less winnings paid to wagerers.
20        (i)  "Cheat" means to alter  the  selection  of  criteria
21    which  determine  the result of a gambling game or the amount
22    or frequency of payment in a gambling game.
23        (j)  "Department" means the Department of Revenue.
24        (k)  "Gambling operation" means the conduct of authorized
25    gambling games upon a riverboat.
26    (Source: P.A. 86-1029; 86-1389; 87-826.)
27        (230 ILCS 10/6) (from Ch. 120, par. 2406)
28        Sec. 6.  Application for Owners License.
29        (a)  A qualified person may apply to  the  Board  for  an
30    owners  license  to conduct a riverboat gambling operation as
31    provided in this Act.  The application shall be made on forms
32    provided by the Board and shall contain such  information  as
33    the  Board  prescribes,  including  but  not  limited  to the
                            -3-               LRB9001159LDdvA
 1    identity of the riverboat on which such gambling operation is
 2    to be conducted and the exact location where  such  riverboat
 3    will  be  docked,  a certification that the riverboat will be
 4    registered under this Act at all times during which  gambling
 5    operations  are  conducted  on  board,  detailed  information
 6    regarding  the ownership and management of the applicant, and
 7    detailed  personal  information  regarding   the   applicant.
 8    Information  provided  on  the application shall be used as a
 9    basis for a thorough background investigation which the Board
10    shall conduct with respect to each applicant.  An  incomplete
11    application  shall  be  cause  for denial of a license by the
12    Board.
13        (b)  Applicants shall submit with their  application  all
14    documents,  resolutions,  and  letters  of  support  from the
15    governing body that represents  the  municipality  or  county
16    wherein the licensee will dock.
17        (c)  Each  applicant shall disclose the identity of every
18    person, association, trust or corporation  having  a  greater
19    than   1%  direct  or  indirect  pecuniary  interest  in  the
20    riverboat  gambling  operation  with  respect  to  which  the
21    license is sought.  If the disclosed entity is a  trust,  the
22    application  shall  disclose  the  names and addresses of the
23    beneficiaries; if a corporation, the names and  addresses  of
24    all  stockholders  and directors; if a partnership, the names
25    and addresses of all partners, both general and limited.
26        (d)  An application shall be  filed  with  the  Board  by
27    January  1  of the year preceding any calendar year for which
28    an applicant seeks an owners license;  however,  applications
29    for  an  owners  license  permitting operations on January 1,
30    1991 shall be filed by July 1, 1990.  An application  fee  of
31    $50,000  shall  be  paid  at the time of filing to defray the
32    costs associated with the background investigation  conducted
33    by  the  Board.   If  the  costs  of the investigation exceed
34    $50,000, the applicant shall pay the additional amount to the
                            -4-               LRB9001159LDdvA
 1    Board.  If the costs  of  the  investigation  are  less  than
 2    $50,000,   the  applicant  shall  receive  a  refund  of  the
 3    remaining  amount.   All  information,  records,  interviews,
 4    reports, statements, memoranda or other data supplied  to  or
 5    used   by   the   Board  in  the  course  of  its  review  or
 6    investigation of an application for a license under this  Act
 7    shall  be privileged, strictly confidential and shall be used
 8    only for  the  purpose  of  evaluating  an  applicant.   Such
 9    information,   records,   interviews,   reports,  statements,
10    memoranda or other data shall not be admissible as  evidence,
11    nor  discoverable  in  any action of any kind in any court or
12    before any tribunal, board, agency or person, except for  any
13    action deemed necessary by the Board.
14        (e)  The  Board  shall charge each applicant a fee set by
15    the Department of State Police to defray the costs associated
16    with the search and classification of  fingerprints  obtained
17    by  the  Board  with  respect to the applicant's application.
18    These fees shall be paid into the State Police Services Fund.
19        (f)  The licensed owner shall  be  the  person  primarily
20    responsible for the boat itself.  Only one riverboat gambling
21    operation  may  be  authorized by the Board on any riverboat.
22    The applicant must identify each riverboat it intends to  use
23    and  certify  that  the  riverboat:  (1)  has  the authorized
24    capacity required in this Act; (2) is accessible to  disabled
25    persons;  (3)  is either a replica of a 19th century Illinois
26    riverboat or of a casino cruise ship design, but it need  not
27    be  self-propelled and may be a permanently moored barge; and
28    (4) is fully registered and licensed in accordance  with  any
29    applicable laws.
30        (g)  A person who knowingly makes a false statement on an
31    application is guilty of a Class A misdemeanor.
32    (Source: P.A. 86-1029; 86-1389.)
33        (230 ILCS 10/7) (from Ch. 120, par. 2407)
                            -5-               LRB9001159LDdvA
 1        Sec. 7.  Owners Licenses.
 2        (a)  The  Board  shall  issue owners licenses to persons,
 3    firms or corporations which  apply  for  such  licenses  upon
 4    payment to the Board of the non-refundable license fee set by
 5    the  Board,  upon  payment  of  a $25,000 license fee for the
 6    first year of operation and a $5,000  license  fee  for  each
 7    succeeding  year  and  upon a determination by the Board that
 8    the applicant is eligible for an owners  license pursuant  to
 9    this  Act  and  the  rules  of  the Board.  A person, firm or
10    corporation is ineligible to receive an owners 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
15        of  Article  28  of  the  Criminal  Code  of   1961,   or
16        substantially similar laws of any other jurisdiction;
17             (3)  the  person  has submitted an application for a
18        license under this Act which contains false information;
19             (4)  the person is a member of the Board;
20             (5)  a person defined in (1), (2), (3) or (4) is  an
21        officer,  director  or managerial employee of the firm or
22        corporation;
23             (6)  the  firm  or  corporation  employs  a   person
24        defined  in  (1), (2), (3) or (4) who participates in the
25        management or operation of gambling operations authorized
26        under this Act;
27             (7)  the person, firm or corporation  owns more than
28        a 10% ownership interest in any entity holding an  owners
29        license issued under this Act; or
30             (8)  a  license  of  the person, firm or corporation
31        issued under this Act, or a license  to  own  or  operate
32        gambling  facilities  in any other jurisdiction, has been
33        revoked.
34        (b)  In determining whether to grant an owners license to
                            -6-               LRB9001159LDdvA
 1    an applicant, the Board shall consider:
 2             (1)  the  character,  reputation,   experience   and
 3        financial integrity of the applicants and of any other or
 4        separate person that either:
 5                  (A)  controls,  directly  or  indirectly,  such
 6             applicant, or
 7                  (B)  is  controlled, directly or indirectly, by
 8             such  applicant  or  by  a  person  which  controls,
 9             directly or indirectly, such applicant;
10             (2)  the facilities or proposed facilities  for  the
11        conduct of riverboat gambling;
12             (3)  the  highest  prospective  total  revenue to be
13        derived by  the  State  from  the  conduct  of  riverboat
14        gambling;
15             (4)  the  good faith affirmative action plan of each
16        applicant to recruit, train and upgrade minorities in all
17        employment classifications;
18             (5)  the  financial  ability  of  the  applicant  to
19        purchase and maintain  adequate  liability  and  casualty
20        insurance;
21             (6)  whether     the    applicant    has    adequate
22        capitalization to provide and maintain, for the  duration
23        of a license, a riverboat; and
24             (7)  the  extent  to  which the applicant exceeds or
25        meets other standards  for  the  issuance  of  an  owners
26        license which the Board may adopt by rule.
27        (c)  Each  owners  license  shall specify the place where
28    riverboats shall operate and dock.
29        (d)  Each applicant shall submit with his application, on
30    forms provided by the Board, 2 sets of his fingerprints.
31        (e)  The Board may issue up to  10  licenses  authorizing
32    the  holders  of  such  licenses  to  own riverboats.  In the
33    application for an owners license, the applicant shall  state
34    the  dock  at  which the riverboat is based and the navigable
                            -7-               LRB9001159LDdvA
 1    stream on which the riverboat will operate.  The Board  shall
 2    issue 5 licenses to become effective not earlier than January
 3    1,  1991.  Four  of  such  licenses shall authorize riverboat
 4    gambling  on  the  Mississippi  River,  one  of  which  shall
 5    authorize riverboat gambling from a home dock in the city  of
 6    East  St.  Louis. The other license shall authorize riverboat
 7    gambling on the Illinois River south of Marshall County.  The
 8    Board  shall  issue  1 additional license to become effective
 9    not  earlier  than  March  1,  1992,  which  shall  authorize
10    riverboat gambling on the Des Plaines River in  Will  County.
11    The Board may issue 4 additional licenses to become effective
12    not  earlier than March 1, 1992. In determining the navigable
13    streams upon which  riverboats  will  operate  with  licenses
14    effective on or after March 1, 1992, the Board shall consider
15    the  economic benefit which riverboat gambling confers on the
16    State, and shall seek to assure that all regions of the State
17    share in the economic benefits of riverboat gambling.
18        In granting all licenses, the Board  may  give  favorable
19    consideration  to  economically depressed areas of the State,
20    to applicants presenting plans which provide for  significant
21    economic  development  over  a  large geographic area, and to
22    applicants who currently operate non-gambling  riverboats  in
23    Illinois.  The Board shall review all applications for owners
24    licenses,  and  shall  inform  each  applicant of the Board's
25    decision.
26        The Board may revoke the owners  license  of  a  licensee
27    which  fails  to  begin  regular  riverboat cruises within 12
28    months of receipt of the Board's approval of the  application
29    if  the  Board  determines  that license revocation is in the
30    best interests of the State.
31        (f)  The first 10 owners licenses issued under  this  Act
32    shall  permit  the  holder  to  own  up  to  2 riverboats and
33    equipment thereon for a period of 3 years after the effective
34    date of the license. Holders of the first 10 owners  licenses
                            -8-               LRB9001159LDdvA
 1    must  pay  the  annual  license  fee  for each of the 3 years
 2    during which they are authorized to own riverboats.
 3        (g)  Upon the termination, expiration  or  revocation  of
 4    each  of the first 10 licenses, which shall be issued for a 3
 5    year period, all licenses are renewable annually upon payment
 6    of the fee and a determination by the Board that the licensee
 7    continues to meet all of the requirements of this Act and the
 8    Board's rules. However, for licenses renewed on or after July
 9    1, 1997, renewal shall be for a period of 4 years, unless the
10    Board sets a shorter period.
11        (h)  An owners license shall entitle the licensee to  own
12    up  to  2  riverboats.   A licensee shall limit the number of
13    gambling participants to 1,200 for any such  owners  license.
14    Riverboats  licensed  to operate on the Mississippi River and
15    the Illinois River south of Marshall  County  shall  have  an
16    authorized  capacity  of  at  least  500  persons.  Any other
17    riverboat licensed under this Act shall  have  an  authorized
18    capacity of at least 400 persons.
19        (i)  A licensed owner is authorized to apply to the Board
20    for  and,  if approved therefor, to receive all licenses from
21    the  Board  necessary  for  the  operation  of  a  riverboat,
22    including a liquor license, a license to  prepare  and  serve
23    food  for  human  consumption,  and other necessary licenses.
24    All use, occupation and excise taxes which apply to the  sale
25    of  food and beverages in this State and all taxes imposed on
26    the sale or use of tangible personal property apply  to  such
27    sales aboard the riverboat.
28        (j)  None  of the first 5 licenses issued by the Board to
29    become effective not  earlier  than  January  1,  1991  shall
30    authorize  a  riverboat  to  dock  in  a  municipality with a
31    population of under 2,000; however, this restriction does not
32    apply to any additional  licenses  issued  by  the  Board  to
33    become  effective  not earlier than March 1, 1992.  The Board
34    may issue a license authorizing a  riverboat  to  dock  in  a
                            -9-               LRB9001159LDdvA
 1    municipality  or  approve a secondary home dock location only
 2    if, prior to the issuance of the  license  or  approval,  the
 3    governing  body  of  the  municipality has by a majority vote
 4    approved the docking of riverboats in the municipality.   The
 5    Board  may issue a license authorizing a riverboat to dock in
 6    areas of a county  outside  any  municipality  or  approve  a
 7    secondary dock location only if, prior to the issuance of the
 8    license  or approval, the governing body of the county has by
 9    a majority vote approved of the docking of riverboats  within
10    such areas.
11        (k)  Nothing in this Act shall be interpreted to prohibit
12    a  licensed owner from operating a school for the training of
13    any occupational licensee.
14    (Source: P.A. 86-1029; 86-1389; 86-1475; 87-826.)
15        (230 ILCS 10/11) (from Ch. 120, par. 2411)
16        Sec. 11.  Conduct of gambling.
17        (a)  Gambling may be conducted by licensed owners  aboard
18    riverboats, subject to the following standards:
19             (1)  (Blank)  No  gambling  may be conducted while a
20        riverboat is docked.
21             (2)  (Blank) Riverboat  cruises  may  not  exceed  4
22        hours  for  a  round  trip,  with  the  exception  of any
23        extended  cruises,  each  of  which  shall  be  expressly
24        approved by the Board.
25             (3)  Minimum and maximum wagers on  games  shall  be
26        set by the licensee.
27             (4)  Agents of the Board and the Department of State
28        Police  may  board  and inspect any riverboat at any time
29        for the purpose of determining whether this Act is  being
30        complied  with.   Every riverboat, if under way and being
31        hailed by a law  enforcement  officer  or  agent  of  the
32        Board, must stop immediately and lay to.
33             (5)  Employees  of the Board shall have the right to
                            -10-              LRB9001159LDdvA
 1        be present on the riverboat  or  on  adjacent  facilities
 2        under the control of the licensee.
 3             (6)  Gambling  equipment  and  supplies  customarily
 4        used  in  conducting riverboat gambling must be purchased
 5        or leased only from suppliers licensed for  such  purpose
 6        under this Act.
 7             (7)  Persons licensed under this Act shall permit no
 8        form of wagering on gambling games except as permitted by
 9        this Act.
10             (8)  Wagers  may  be  received  only  from  a person
11        present on a licensed riverboat.  No person present on  a
12        licensed  riverboat  shall  place  or  attempt to place a
13        wager on behalf of another person who is not  present  on
14        the riverboat.
15             (9)  Wagering  shall  not be conducted with money or
16        other negotiable currency.
17             (10)  A person under age 21 shall not  be  permitted
18        on  an  area  of  a  riverboat  where  gambling  is being
19        conducted, except for a person at least 18 years  of  age
20        who  is  an employee of the riverboat gambling operation.
21        No employee under  age  21  shall  perform  any  function
22        involved  in gambling by the patrons. No person under age
23        21 shall be permitted to make a wager under this Act.
24             (11)  Gambling excursion cruises are permitted  only
25        when  the  navigable  stream  for  which the riverboat is
26        licensed is navigable, as  determined  by  the  Board  in
27        consultation with the U.S. Army Corps of Engineers.
28             (12)  All  tokens, chips or electronic cards used to
29        make wagers must  be  purchased  from  a  licensed  owner
30        either aboard a riverboat or at an onshore facility which
31        has been approved by the Board and which is located where
32        the  riverboat  docks.  The  tokens,  chips or electronic
33        cards may be purchased by means  of  an  agreement  under
34        which  the  owner  extends  credit  to  the patron.  Such
                            -11-              LRB9001159LDdvA
 1        tokens, chips or  electronic  cards  may  be  used  while
 2        aboard  the  riverboat  only  for  the  purpose of making
 3        wagers on gambling games.
 4             (13)  Notwithstanding any other Section of this Act,
 5        in addition to the other licenses authorized  under  this
 6        Act,  the Board may issue special event licenses allowing
 7        persons  who  are  not  otherwise  licensed  to   conduct
 8        riverboat   gambling   to  conduct  such  gambling  on  a
 9        specified date or series of  dates.   Riverboat  gambling
10        under  such  a  license may take place on a riverboat not
11        normally used for riverboat gambling.   The  Board  shall
12        establish  standards, fees and fines for, and limitations
13        upon, such licenses, which may differ from the standards,
14        fees, fines and limitations  otherwise  applicable  under
15        this  Act.   All  such  fees  shall be deposited into the
16        State Gaming Fund.  All such  fines  shall  be  deposited
17        into the Education Assistance Fund, created by Public Act
18        86-0018, of the State of Illinois.
19             (14)  In  addition  to  the  above, gambling must be
20        conducted in accordance with all  rules  adopted  by  the
21        Board.
22    (Source: P.A. 86-1029; 86-1389; 87-826.)
23        (230 ILCS 10/11.2 new)
24        Sec. 11.2.  Secondary home dock locations.
25        (a)  A  licensee  that  earns  less  than  $40,000,000 in
26    adjusted gross receipts and uses less than 50% of its  gaming
27    positions  during  a  12-month  period may request permission
28    from the Board  to  move  up  to  two-thirds  of  its  gaming
29    positions  to  a secondary home dock location.  If permission
30    is granted by the Board under this Section, the licensee  may
31    then  operate  one riverboat at each location approved by the
32    Board.
33        (b)  If a licensee operates from dual home dock locations
                            -12-              LRB9001159LDdvA
 1    under subsection (a), 15%  of  the  tax  revenue  distributed
 2    under  Section  13(b)  from  the secondary home dock location
 3    shall be paid to the unit of local  government  that  is  the
 4    original  home  dock  location  of  the  licensee in the same
 5    manner as that tax is paid under Section 13(b).
 6        (230 ILCS 10/13) (from Ch. 120, par. 2413)
 7        Sec. 13.  Wagering tax; rate; distribution.
 8        (a)  A tax is imposed  on  the  adjusted  gross  receipts
 9    received from gambling games authorized under this Act at the
10    rate of 20%.
11        The  taxes  imposed  by this Section shall be paid by the
12    licensed owner to the Board after the close of the  day  when
13    the wagers were made.
14        (b)  Twenty-five   percent   (25%)  Of  the  tax  revenue
15    deposited in the State Gaming Fund under this  Section  shall
16    be paid, subject to appropriation by the General Assembly, to
17    the  unit of local government which is designated as the home
18    dock of the riverboat.  If the licensee maintains a secondary
19    home dock location under Section 11.2, the amount paid  under
20    this  subsection  (b) shall be divided as provided in Section
21    11.2.
22        (c)  Appropriations, as approved by the General Assembly,
23    may be made from the State Gaming Fund to the  Department  of
24    Revenue   and   the   Department  of  State  Police  for  the
25    administration and enforcement of this Act.
26        (d)  From time to time,  the  Board  shall  transfer  the
27    remainder  of  the  funds  generated  by  this  Act  into the
28    Education Assistance Fund, created by Public Act 86-0018,  of
29    the State of Illinois.
30        (e)  Nothing in this Act shall prohibit the unit of local
31    government  designated as the home dock of the riverboat from
32    entering into agreements with other units of local government
33    in this State or in other states to share its portion of  the
                            -13-              LRB9001159LDdvA
 1    tax revenue.
 2    (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 7-1-95.)
 3        Section  99.  Effective date.  This Act takes effect upon
 4    becoming law.

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