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90_SB0154 230 ILCS 10/Act title 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. 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. LRB9001159LDpk LRB9001159LDpk 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 Section 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 Section 11.2 as follows: 9 (230 ILCS 10/Act title) 10 An Act to authorize certain forms of gambling on 11excursiongambling boats. 12 (Source: P.A. 86-1029.) 13 (230 ILCS 10/4) (from Ch. 120, par. 2404) 14 Sec. 4. Definitions. As used in this Act: 15 (a) "Board" means the Illinois Gaming Board. 16 (b) "Occupational license" means a license issued by the 17 Board to a person or entity to perform an occupation which 18 the Board has identified as requiring a license to engage in 19 riverboat gambling in Illinois. 20 (c) "Gambling game" includes, but is not limited to, 21 baccarat, twenty-one, poker, craps, slot machine, video game 22 of chance, roulette wheel, klondike table, punchboard, faro 23 layout, keno layout, numbers ticket, push card, jar ticket, 24 or pull tab which is authorized by the Board as a wagering 25 device under this Act. 26 (d) "Riverboat" means a self-propelled excursion boat or 27 a permanently moored barge on which lawful gambling is 28 authorized and licensed as provided in this Act. 29 (e) (Blank)."Gambling excursion" means the time during30which gambling games may be operated on a riverboat.-2- LRB9001159LDpk 1 (f) "Dock" means the location where a gaming facilityan2excursion riverboatmoors for the purpose of embarking 3 passengers for and disembarking passengers from a gambling 4 facilityexcursion. 5 (g) "Gross receipts" means the total amount of money 6 exchanged for the purchase of chips, tokens or electronic 7 cards by riverboat patrons. 8 (h) "Adjusted gross receipts" means the gross receipts 9 less winnings paid to wagerers. 10 (i) "Cheat" means to alter the selection of criteria 11 which determine the result of a gambling game or the amount 12 or frequency of payment in a gambling game. 13 (j) "Department" means the Department of Revenue. 14 (k) "Gambling operation" means the conduct of authorized 15 gambling games upon a riverboat. 16 (Source: P.A. 86-1029; 86-1389; 87-826.) 17 (230 ILCS 10/6) (from Ch. 120, par. 2406) 18 Sec. 6. Application for Owners License. 19 (a) A qualified person may apply to the Board for an 20 owners license to conduct a riverboat gambling operation as 21 provided in this Act. The application shall be made on forms 22 provided by the Board and shall contain such information as 23 the Board prescribes, including but not limited to the 24 identity of the riverboat on which such gambling operation is 25 to be conducted and the exact location where such riverboat 26 will be docked, a certification that the riverboat will be 27 registered under this Act at all times during which gambling 28 operations are conducted on board, detailed information 29 regarding the ownership and management of the applicant, and 30 detailed personal information regarding the applicant. 31 Information provided on the application shall be used as a 32 basis for a thorough background investigation which the Board 33 shall conduct with respect to each applicant. An incomplete -3- LRB9001159LDpk 1 application shall be cause for denial of a license by the 2 Board. 3 (b) Applicants shall submit with their application all 4 documents, resolutions, and letters of support from the 5 governing body that represents the municipality or county 6 wherein the licensee will dock. 7 (c) Each applicant shall disclose the identity of every 8 person, association, trust or corporation having a greater 9 than 1% direct or indirect pecuniary interest in the 10 riverboat gambling operation with respect to which the 11 license is sought. If the disclosed entity is a trust, the 12 application shall disclose the names and addresses of the 13 beneficiaries; if a corporation, the names and addresses of 14 all stockholders and directors; if a partnership, the names 15 and addresses of all partners, both general and limited. 16 (d) An application shall be filed with the Board by 17 January 1 of the year preceding any calendar year for which 18 an applicant seeks an owners license; however, applications 19 for an owners license permitting operations on January 1, 20 1991 shall be filed by July 1, 1990. An application fee of 21 $50,000 shall be paid at the time of filing to defray the 22 costs associated with the background investigation conducted 23 by the Board. If the costs of the investigation exceed 24 $50,000, the applicant shall pay the additional amount to the 25 Board. If the costs of the investigation are less than 26 $50,000, the applicant shall receive a refund of the 27 remaining amount. All information, records, interviews, 28 reports, statements, memoranda or other data supplied to or 29 used by the Board in the course of its review or 30 investigation of an application for a license under this Act 31 shall be privileged, strictly confidential and shall be used 32 only for the purpose of evaluating an applicant. Such 33 information, records, interviews, reports, statements, 34 memoranda or other data shall not be admissible as evidence, -4- LRB9001159LDpk 1 nor discoverable in any action of any kind in any court or 2 before any tribunal, board, agency or person, except for any 3 action deemed necessary by the Board. 4 (e) The Board shall charge each applicant a fee set by 5 the Department of State Police to defray the costs associated 6 with the search and classification of fingerprints obtained 7 by the Board with respect to the applicant's application. 8 These fees shall be paid into the State Police Services Fund. 9 (f) The licensed owner shall be the person primarily 10 responsible for the boat itself. Only one riverboat gambling 11 operation may be authorized by the Board on any riverboat. 12 The applicant must identify each riverboat it intends to use 13 and certify that the riverboat: (1) has the authorized 14 capacity required in this Act; (2) is accessible to disabled 15 persons; (3) is either a replica of a 19th century Illinois 16 riverboat or of a casino cruise ship design, but it need not 17 be self-propelled and may be a permanently moored barge; and 18 (4) is fully registered and licensed in accordance with any 19 applicable laws. 20 (g) A person who knowingly makes a false statement on an 21 application is guilty of a Class A misdemeanor. 22 (Source: P.A. 86-1029; 86-1389.) 23 (230 ILCS 10/7) (from Ch. 120, par. 2407) 24 Sec. 7. Owners Licenses. 25 (a) The Board shall issue owners licenses to persons, 26 firms or corporations which apply for such licenses upon 27 payment to the Board of the non-refundable license fee set by 28 the Board, upon payment of a $25,000 license fee for the 29 first year of operation and a $5,000 license fee for each 30 succeeding year and upon a determination by the Board that 31 the applicant is eligible for an owners license pursuant to 32 this Act and the rules of the Board. A person, firm or 33 corporation is ineligible to receive an owners license if: -5- LRB9001159LDpk 1 (1) the person has been convicted of a felony under 2 the laws of this State, any other state, or the United 3 States; 4 (2) the person has been convicted of any violation 5 of Article 28 of the Criminal Code of 1961, or 6 substantially similar laws of any other jurisdiction; 7 (3) the person has submitted an application for a 8 license under this Act which contains false information; 9 (4) the person is a member of the Board; 10 (5) a person defined in (1), (2), (3) or (4) is an 11 officer, director or managerial employee of the firm or 12 corporation; 13 (6) the firm or corporation employs a person 14 defined in (1), (2), (3) or (4) who participates in the 15 management or operation of gambling operations authorized 16 under this Act; 17 (7) the person, firm or corporation owns more than 18 a 10% ownership interest in any entity holding an owners 19 license issued under this Act; or 20 (8) a license of the person, firm or corporation 21 issued under this Act, or a license to own or operate 22 gambling facilities in any other jurisdiction, has been 23 revoked. 24 (b) In determining whether to grant an owners license to 25 an applicant, the Board shall consider: 26 (1) the character, reputation, experience and 27 financial integrity of the applicants and of any other or 28 separate person that either: 29 (A) controls, directly or indirectly, such 30 applicant, or 31 (B) is controlled, directly or indirectly, by 32 such applicant or by a person which controls, 33 directly or indirectly, such applicant; 34 (2) the facilities or proposed facilities for the -6- LRB9001159LDpk 1 conduct of riverboat gambling; 2 (3) the highest prospective total revenue to be 3 derived by the State from the conduct of riverboat 4 gambling; 5 (4) the good faith affirmative action plan of each 6 applicant to recruit, train and upgrade minorities in all 7 employment classifications; 8 (5) the financial ability of the applicant to 9 purchase and maintain adequate liability and casualty 10 insurance; 11 (6) whether the applicant has adequate 12 capitalization to provide and maintain, for the duration 13 of a license, a riverboat; and 14 (7) the extent to which the applicant exceeds or 15 meets other standards for the issuance of an owners 16 license which the Board may adopt by rule. 17 (c) Each owners license shall specify the place where 18 riverboats shall operate and dock. 19 (d) Each applicant shall submit with his application, on 20 forms provided by the Board, 2 sets of his fingerprints. 21 (e) The Board may issue up to 10 licenses authorizing 22 the holders of such licenses to own riverboats. In the 23 application for an owners license, the applicant shall state 24 the dock at which the riverboat is based and the navigable 25 stream on which the riverboat will operate. The Board shall 26 issue 5 licenses to become effective not earlier than January 27 1, 1991. Four of such licenses shall authorize riverboat 28 gambling on the Mississippi River, one of which shall 29 authorize riverboat gambling from a home dock in the city of 30 East St. Louis. The other license shall authorize riverboat 31 gambling on the Illinois River south of Marshall County. The 32 Board shall issue 1 additional license to become effective 33 not earlier than March 1, 1992, which shall authorize 34 riverboat gambling on the Des Plaines River in Will County. -7- LRB9001159LDpk 1 The Board may issue 4 additional licenses to become effective 2 not earlier than March 1, 1992. In determining the navigable 3 streams upon which riverboats will operate with licenses 4 effective on or after March 1, 1992, the Board shall consider 5 the economic benefit which riverboat gambling confers on the 6 State, and shall seek to assure that all regions of the State 7 share in the economic benefits of riverboat gambling. 8 In granting all licenses, the Board may give favorable 9 consideration to economically depressed areas of the State, 10 to applicants presenting plans which provide for significant 11 economic development over a large geographic area, and to 12 applicants who currently operate non-gambling riverboats in 13 Illinois. The Board shall review all applications for owners 14 licenses, and shall inform each applicant of the Board's 15 decision. 16 The Board may revoke the owners license of a licensee 17 which fails to begin regular riverboat cruises within 12 18 months of receipt of the Board's approval of the application 19 if the Board determines that license revocation is in the 20 best interests of the State. 21 (f) The first 10 owners licenses issued under this Act 22 shall permit the holder to own up to 2 riverboats and 23 equipment thereon for a period of 3 years after the effective 24 date of the license. Holders of the first 10 owners licenses 25 must pay the annual license fee for each of the 3 years 26 during which they are authorized to own riverboats. 27 (g) Upon the termination, expiration or revocation of 28 each of the first 10 licenses, which shall be issued for a 3 29 year period, all licenses are renewable annually upon payment 30 of the fee and a determination by the Board that the licensee 31 continues to meet all of the requirements of this Act and the 32 Board's rules. However, for licenses renewed on or after July 33 1, 1997, renewal shall be for a period of 4 years, unless the 34 Board sets a shorter period. -8- LRB9001159LDpk 1 (h) An owners license shall entitle the licensee to own 2 up to 2 riverboats. A licensee shall limit the number of 3 gambling participants to 1,200 for any such owners license. 4 Riverboats licensed to operate on the Mississippi River and 5 the Illinois River south of Marshall County shall have an 6 authorized capacity of at least 500 persons. Any other 7 riverboat licensed under this Act shall have an authorized 8 capacity of at least 400 persons. 9 (i) A licensed owner is authorized to apply to the Board 10 for and, if approved therefor, to receive all licenses from 11 the Board necessary for the operation of a riverboat, 12 including a liquor license, a license to prepare and serve 13 food for human consumption, and other necessary licenses. 14 All use, occupation and excise taxes which apply to the sale 15 of food and beverages in this State and all taxes imposed on 16 the sale or use of tangible personal property apply to such 17 sales aboard the riverboat. 18 (j) None of the first 5 licenses issued by the Board to 19 become effective not earlier than January 1, 1991 shall 20 authorize a riverboat to dock in a municipality with a 21 population of under 2,000; however, this restriction does not 22 apply to any additional licenses issued by the Board to 23 become effective not earlier than March 1, 1992. The Board 24 may issue a license authorizing a riverboat to dock in a 25 municipality or approve a secondary home dock location only 26 if, prior to the issuance of the license or approval, the 27 governing body of the municipality has by a majority vote 28 approved the docking of riverboats in the municipality. The 29 Board may issue a license authorizing a riverboat to dock in 30 areas of a county outside any municipality or approve a 31 secondary dock location only if, prior to the issuance of the 32 license or approval, the governing body of the county has by 33 a majority vote approved of the docking of riverboats within 34 such areas. -9- LRB9001159LDpk 1 (k) Nothing in this Act shall be interpreted to prohibit 2 a licensed owner from operating a school for the training of 3 any occupational licensee. 4 (Source: P.A. 86-1029; 86-1389; 86-1475; 87-826.) 5 (230 ILCS 10/11) (from Ch. 120, par. 2411) 6 Sec. 11. Conduct of gambling. 7 (a) Gambling may be conducted by licensed owners aboard 8 riverboats, subject to the following standards: 9 (1) (Blank)No gambling may be conducted while a10riverboat is docked. 11 (2) (Blank)Riverboat cruises may not exceed 412hours for a round trip, with the exception of any13extended cruises, each of which shall be expressly14approved by the Board. 15 (3) Minimum and maximum wagers on games shall be 16 set by the licensee. 17 (4) Agents of the Board and the Department of State 18 Police may board and inspect any riverboat at any time 19 for the purpose of determining whether this Act is being 20 complied with. Every riverboat, if under way and being 21 hailed by a law enforcement officer or agent of the 22 Board, must stop immediately and lay to. 23 (5) Employees of the Board shall have the right to 24 be present on the riverboat or on adjacent facilities 25 under the control of the licensee. 26 (6) Gambling equipment and supplies customarily 27 used in conducting riverboat gambling must be purchased 28 or leased only from suppliers licensed for such purpose 29 under this Act. 30 (7) Persons licensed under this Act shall permit no 31 form of wagering on gambling games except as permitted by 32 this Act. 33 (8) Wagers may be received only from a person -10- LRB9001159LDpk 1 present on a licensed riverboat. No person present on a 2 licensed riverboat shall place or attempt to place a 3 wager on behalf of another person who is not present on 4 the riverboat. 5 (9) Wagering shall not be conducted with money or 6 other negotiable currency. 7 (10) A person under age 21 shall not be permitted 8 on an area of a riverboat where gambling is being 9 conducted, except for a person at least 18 years of age 10 who is an employee of the riverboat gambling operation. 11 No employee under age 21 shall perform any function 12 involved in gambling by the patrons. No person under age 13 21 shall be permitted to make a wager under this Act. 14 (11) Gambling excursion cruises are permitted only 15 when the navigable stream for which the riverboat is 16 licensed is navigable, as determined by the Board in 17 consultation with the U.S. Army Corps of Engineers. 18 (12) All tokens, chips or electronic cards used to 19 make wagers must be purchased from a licensed owner 20 either aboard a riverboat or at an onshore facility which 21 has been approved by the Board and which is located where 22 the riverboat docks. The tokens, chips or electronic 23 cards may be purchased by means of an agreement under 24 which the owner extends credit to the patron. Such 25 tokens, chips or electronic cards may be used while 26 aboard the riverboat only for the purpose of making 27 wagers on gambling games. 28 (13) Notwithstanding any other Section of this Act, 29 in addition to the other licenses authorized under this 30 Act, the Board may issue special event licenses allowing 31 persons who are not otherwise licensed to conduct 32 riverboat gambling to conduct such gambling on a 33 specified date or series of dates. Riverboat gambling 34 under such a license may take place on a riverboat not -11- LRB9001159LDpk 1 normally used for riverboat gambling. The Board shall 2 establish standards, fees and fines for, and limitations 3 upon, such licenses, which may differ from the standards, 4 fees, fines and limitations otherwise applicable under 5 this Act. All such fees shall be deposited into the 6 State Gaming Fund. All such fines shall be deposited 7 into the Education Assistance Fund, created by Public Act 8 86-0018, of the State of Illinois. 9 (14) In addition to the above, gambling must be 10 conducted in accordance with all rules adopted by the 11 Board. 12 (Source: P.A. 86-1029; 86-1389; 87-826.) 13 (230 ILCS 10/11.2 new) 14 Sec. 11.2. Secondary home dock locations. 15 (a) A licensee that earns less than $40,000,000 in 16 adjusted gross receipts and uses less than 50% of its gaming 17 positions during a 12-month period may request permission 18 from the Board to move up to two-thirds of its gaming 19 positions to a secondary home dock location. If permission 20 is granted by the Board under this Section, the licensee may 21 then operate one riverboat at each location approved by the 22 Board. 23 (b) If a licensee operates from dual home dock locations 24 under subsection (a), 15% of the tax revenue distributed 25 under Section 13(b) from the secondary home dock location 26 shall be paid to the unit of local government that is the 27 original home dock location of the licensee in the same 28 manner as that tax is paid under Section 13(b). 29 (230 ILCS 10/13) (from Ch. 120, par. 2413) 30 Sec. 13. Wagering tax; rate; distribution. 31 (a) A tax is imposed on the adjusted gross receipts 32 received from gambling games authorized under this Act at the -12- LRB9001159LDpk 1 rate of 20%. 2 The taxes imposed by this Section shall be paid by the 3 licensed owner to the Board after the close of the day when 4 the wagers were made. 5 (b) Twenty-five percent (25%) Of the tax revenue 6 deposited in the State Gaming Fund under this Section shall 7 be paid, subject to appropriation by the General Assembly, to 8 the unit of local government which is designated as the home 9 dock of the riverboat. If the licensee maintains a secondary 10 home dock location under Section 11.2, the amount paid under 11 this subsection (b) shall be divided as provided in Section 12 11.2. 13 (c) Appropriations, as approved by the General Assembly, 14 may be made from the State Gaming Fund to the Department of 15 Revenue and the Department of State Police for the 16 administration and enforcement of this Act. 17 (d) From time to time, the Board shall transfer the 18 remainder of the funds generated by this Act into the 19 Education Assistance Fund, created by Public Act 86-0018, of 20 the State of Illinois. 21 (e) Nothing in this Act shall prohibit the unit of local 22 government designated as the home dock of the riverboat from 23 entering into agreements with other units of local government 24 in this State or in other states to share its portion of the 25 tax revenue. 26 (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 7-1-95.) 27 Section 99. Effective date. This Act takes effect upon 28 becoming law.