SB3387 EngrossedLRB100 19071 SMS 34327 b

1    AN ACT concerning gaming.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Riverboat Gambling Act is amended by
5changing Sections 5, 7, and 7.6 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 may utilize the
21services of one or more independent outside testing
22laboratories that have been accredited by a national
23accreditation body and that, in the judgment of the Board, are
24qualified to perform such examinations.
25    (8) The Board shall employ such personnel as may be
26necessary to carry out its functions and shall determine the



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1salaries of all personnel, except those personnel whose
2salaries are determined under the terms of a collective
3bargaining agreement. No person shall be employed to serve the
4Board who is, or whose spouse, parent or child is, an official
5of, or has a financial interest in or financial relation with,
6any operator engaged in gambling operations within this State
7or any organization engaged in conducting horse racing within
8this State. Any employee violating these prohibitions shall be
9subject to termination of employment.
10    (9) An Administrator shall perform any and all duties that
11the Board shall assign him. The salary of the Administrator
12shall be determined by the Board and, in addition, he shall be
13reimbursed for all actual and necessary expenses incurred by
14him in discharge of his official duties. The Administrator
15shall keep records of all proceedings of the Board and shall
16preserve all records, books, documents and other papers
17belonging to the Board or entrusted to its care. The
18Administrator shall devote his full time to the duties of the
19office and shall not hold any other office or employment.
20    (b) The Board shall have general responsibility for the
21implementation of this Act. Its duties include, without
22limitation, the following:
23        (1) To decide promptly and in reasonable order all
24    license applications. Any party aggrieved by an action of
25    the Board denying, suspending, revoking, restricting or
26    refusing to renew a license may request a hearing before



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1    the Board. A request for a hearing must be made to the
2    Board in writing within 5 days after service of notice of
3    the action of the Board. Notice of the action of the Board
4    shall be served either by personal delivery or by certified
5    mail, postage prepaid, to the aggrieved party. Notice
6    served by certified mail shall be deemed complete on the
7    business day following the date of such mailing. The Board
8    shall conduct all requested hearings promptly and in
9    reasonable order;
10        (2) To conduct all hearings pertaining to civil
11    violations of this Act or rules and regulations promulgated
12    hereunder;
13        (3) To promulgate such rules and regulations as in its
14    judgment may be necessary to protect or enhance the
15    credibility and integrity of gambling operations
16    authorized by this Act and the regulatory process
17    hereunder;
18        (4) To provide for the establishment and collection of
19    all license and registration fees and taxes imposed by this
20    Act and the rules and regulations issued pursuant hereto.
21    All such fees and taxes shall be deposited into the State
22    Gaming Fund;
23        (5) To provide for the levy and collection of penalties
24    and fines for the violation of provisions of this Act and
25    the rules and regulations promulgated hereunder. All such
26    fines and penalties shall be deposited into the Education



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1    Assistance Fund, created by Public Act 86-0018, of the
2    State of Illinois;
3        (6) To be present through its inspectors and agents any
4    time gambling operations are conducted on any riverboat for
5    the purpose of certifying the revenue thereof, receiving
6    complaints from the public, and conducting such other
7    investigations into the conduct of the gambling games and
8    the maintenance of the equipment as from time to time the
9    Board may deem necessary and proper;
10        (7) To review and rule upon any complaint by a licensee
11    regarding any investigative procedures of the State which
12    are unnecessarily disruptive of gambling operations. The
13    need to inspect and investigate shall be presumed at all
14    times. The disruption of a licensee's operations shall be
15    proved by clear and convincing evidence, and establish
16    that: (A) the procedures had no reasonable law enforcement
17    purposes, and (B) the procedures were so disruptive as to
18    unreasonably inhibit gambling operations;
19        (8) To hold at least one meeting each quarter of the
20    fiscal year. In addition, special meetings may be called by
21    the Chairman or any 2 Board members upon 72 hours written
22    notice to each member. All Board meetings shall be subject
23    to the Open Meetings Act. Three members of the Board shall
24    constitute a quorum, and 3 votes shall be required for any
25    final determination by the Board. The Board shall keep a
26    complete and accurate record of all its meetings. A



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1    majority of the members of the Board shall constitute a
2    quorum for the transaction of any business, for the
3    performance of any duty, or for the exercise of any power
4    which this Act requires the Board members to transact,
5    perform or exercise en banc, except that, upon order of the
6    Board, one of the Board members or an administrative law
7    judge designated by the Board may conduct any hearing
8    provided for under this Act or by Board rule and may
9    recommend findings and decisions to the Board. The Board
10    member or administrative law judge conducting such hearing
11    shall have all powers and rights granted to the Board in
12    this Act. The record made at the time of the hearing shall
13    be reviewed by the Board, or a majority thereof, and the
14    findings and decision of the majority of the Board shall
15    constitute the order of the Board in such case;
16        (9) To maintain records which are separate and distinct
17    from the records of any other State board or commission.
18    Such records shall be available for public inspection and
19    shall accurately reflect all Board proceedings;
20        (10) To file a written annual report with the Governor
21    on or before July 1 March 1 each year and such additional
22    reports as the Governor may request. The annual report
23    shall include a statement of receipts and disbursements by
24    the Board, actions taken by the Board, and any additional
25    information and recommendations which the Board may deem
26    valuable or which the Governor may request;



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1        (11) (Blank);
2        (12) (Blank);
3        (13) To assume responsibility for administration and
4    enforcement of the Video Gaming Act; and
5        (14) To adopt, by rule, a code of conduct governing
6    Board members and employees that ensure, to the maximum
7    extent possible, that persons subject to this Code avoid
8    situations, relationships, or associations that may
9    represent or lead to a conflict of interest.
10    (c) The Board shall have jurisdiction over and shall
11supervise all gambling operations governed by this Act. The
12Board shall have all powers necessary and proper to fully and
13effectively execute the provisions of this Act, including, but
14not limited to, the following:
15        (1) To investigate applicants and determine the
16    eligibility of applicants for licenses and to select among
17    competing applicants the applicants which best serve the
18    interests of the citizens of Illinois.
19        (2) To have jurisdiction and supervision over all
20    riverboat gambling operations in this State and all persons
21    on riverboats where gambling operations are conducted.
22        (3) To promulgate rules and regulations for the purpose
23    of administering the provisions of this Act and to
24    prescribe rules, regulations and conditions under which
25    all riverboat gambling in the State shall be conducted.
26    Such rules and regulations are to provide for the



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



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1    sheet and profit and loss statement, list of the
2    stockholders or other persons having a 1% or greater
3    beneficial interest in the gambling activities of each
4    licensee, and any other information the Board deems
5    necessary in order to effectively administer this Act and
6    all rules, regulations, orders and final decisions
7    promulgated under this Act.
8        (9) To conduct hearings, issue subpoenas for the
9    attendance of witnesses and subpoenas duces tecum for the
10    production of books, records and other pertinent documents
11    in accordance with the Illinois Administrative Procedure
12    Act, and to administer oaths and affirmations to the
13    witnesses, when, in the judgment of the Board, it is
14    necessary to administer or enforce this Act or the Board
15    rules.
16        (10) To prescribe a form to be used by any licensee
17    involved in the ownership or management of gambling
18    operations as an application for employment for their
19    employees.
20        (11) To revoke or suspend licenses, as the Board may
21    see fit and in compliance with applicable laws of the State
22    regarding administrative procedures, and to review
23    applications for the renewal of licenses. The Board may
24    suspend an owners license, without notice or hearing upon a
25    determination that the safety or health of patrons or
26    employees is jeopardized by continuing a riverboat's



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1    operation. The suspension may remain in effect until the
2    Board determines that the cause for suspension has been
3    abated. The Board may revoke the owners license upon a
4    determination that the owner has not made satisfactory
5    progress toward abating the hazard.
6        (12) To eject or exclude or authorize the ejection or
7    exclusion of, any person from riverboat gambling
8    facilities where such person is in violation of this Act,
9    rules and regulations thereunder, or final orders of the
10    Board, or where such person's conduct or reputation is such
11    that his presence within the riverboat gambling facilities
12    may, in the opinion of the Board, call into question the
13    honesty and integrity of the gambling operations or
14    interfere with orderly conduct thereof; provided that the
15    propriety of such ejection or exclusion is subject to
16    subsequent hearing by the Board.
17        (13) To require all licensees of gambling operations to
18    utilize a cashless wagering system whereby all players'
19    money is converted to tokens, electronic cards, or chips
20    which shall be used only for wagering in the gambling
21    establishment.
22        (14) (Blank).
23        (15) To suspend, revoke or restrict licenses, to
24    require the removal of a licensee or an employee of a
25    licensee for a violation of this Act or a Board rule or for
26    engaging in a fraudulent practice, and to impose civil



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1    penalties of up to $5,000 against individuals and up to
2    $10,000 or an amount equal to the daily gross receipts,
3    whichever is larger, against licensees for each violation
4    of any provision of the Act, any rules adopted by the
5    Board, any order of the Board or any other action which, in
6    the Board's discretion, is a detriment or impediment to
7    riverboat gambling operations.
8        (16) To hire employees to gather information, conduct
9    investigations and carry out any other tasks contemplated
10    under this Act.
11        (17) To establish minimum levels of insurance to be
12    maintained by licensees.
13        (18) To authorize a licensee to sell or serve alcoholic
14    liquors, wine or beer as defined in the Liquor Control Act
15    of 1934 on board a riverboat and to have exclusive
16    authority to establish the hours for sale and consumption
17    of alcoholic liquor on board a riverboat, notwithstanding
18    any provision of the Liquor Control Act of 1934 or any
19    local ordinance, and regardless of whether the riverboat
20    makes excursions. The establishment of the hours for sale
21    and consumption of alcoholic liquor on board a riverboat is
22    an exclusive power and function of the State. A home rule
23    unit may not establish the hours for sale and consumption
24    of alcoholic liquor on board a riverboat. This amendatory
25    Act of 1991 is a denial and limitation of home rule powers
26    and functions under subsection (h) of Section 6 of Article



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1    VII of the Illinois Constitution.
2        (19) After consultation with the U.S. Army Corps of
3    Engineers, to establish binding emergency orders upon the
4    concurrence of a majority of the members of the Board
5    regarding the navigability of water, relative to
6    excursions, in the event of extreme weather conditions,
7    acts of God or other extreme circumstances.
8        (20) To delegate the execution of any of its powers
9    under this Act for the purpose of administering and
10    enforcing this Act and its rules and regulations hereunder.
11        (20.5) To approve any contract entered into on its
12    behalf.
13        (20.6) To appoint investigators to conduct
14    investigations, searches, seizures, arrests, and other
15    duties imposed under this Act, as deemed necessary by the
16    Board. These investigators have and may exercise all of the
17    rights and powers of peace officers, provided that these
18    powers shall be limited to offenses or violations occurring
19    or committed on a riverboat or dock, as defined in
20    subsections (d) and (f) of Section 4, or as otherwise
21    provided by this Act or any other law.
22        (20.7) To contract with the Department of State Police
23    for the use of trained and qualified State police officers
24    and with the Department of Revenue for the use of trained
25    and qualified Department of Revenue investigators to
26    conduct investigations, searches, seizures, arrests, and



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1    other duties imposed under this Act and to exercise all of
2    the rights and powers of peace officers, provided that the
3    powers of Department of Revenue investigators under this
4    subdivision (20.7) shall be limited to offenses or
5    violations occurring or committed on a riverboat or dock,
6    as defined in subsections (d) and (f) of Section 4, or as
7    otherwise provided by this Act or any other law. In the
8    event the Department of State Police or the Department of
9    Revenue is unable to fill contracted police or
10    investigative positions, the Board may appoint
11    investigators to fill those positions pursuant to
12    subdivision (20.6).
13        (21) To take any other action as may be reasonable or
14    appropriate to enforce this Act and rules and regulations
15    hereunder.
16    (d) The Board may seek and shall receive the cooperation of
17the Department of State Police in conducting background
18investigations of applicants and in fulfilling its
19responsibilities under this Section. Costs incurred by the
20Department of State Police as a result of such cooperation
21shall be paid by the Board in conformance with the requirements
22of Section 2605-400 of the Department of State Police Law (20
23ILCS 2605/2605-400).
24    (e) The Board must authorize to each investigator and to
25any other employee of the Board exercising the powers of a
26peace officer a distinct badge that, on its face, (i) clearly



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1states that the badge is authorized by the Board and (ii)
2contains a unique identifying number. No other badge shall be
3authorized by the Board.
4(Source: P.A. 98-377, eff. 1-1-14; 98-582, eff. 8-27-13.)
5    (230 ILCS 10/7)  (from Ch. 120, par. 2407)
6    Sec. 7. Owners licenses.
7    (a) The Board shall issue owners licenses to persons, firms
8or corporations which apply for such licenses upon payment to
9the Board of the non-refundable license fee set by the Board,
10upon payment of a $25,000 license fee for the first year of
11operation and a $5,000 license fee for each succeeding year and
12upon a determination by the Board that the applicant is
13eligible for an owners license pursuant to this Act and the
14rules of the Board. From the effective date of this amendatory
15Act of the 95th General Assembly until (i) 3 years after the
16effective date of this amendatory Act of the 95th General
17Assembly, (ii) the date any organization licensee begins to
18operate a slot machine or video game of chance under the
19Illinois Horse Racing Act of 1975 or this Act, (iii) the date
20that payments begin under subsection (c-5) of Section 13 of the
21Act, or (iv) the wagering tax imposed under Section 13 of this
22Act is increased by law to reflect a tax rate that is at least
23as stringent or more stringent than the tax rate contained in
24subsection (a-3) of Section 13, whichever occurs first, as a
25condition of licensure and as an alternative source of payment



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1for those funds payable under subsection (c-5) of Section 13 of
2the Riverboat Gambling Act, any owners licensee that holds or
3receives its owners license on or after the effective date of
4this amendatory Act of the 94th General Assembly, other than an
5owners licensee operating a riverboat with adjusted gross
6receipts in calendar year 2004 of less than $200,000,000, must
7pay into the Horse Racing Equity Trust Fund, in addition to any
8other payments required under this Act, an amount equal to 3%
9of the adjusted gross receipts received by the owners licensee.
10The payments required under this Section shall be made by the
11owners licensee to the State Treasurer no later than 3:00
12o'clock p.m. of the day after the day when the adjusted gross
13receipts were received by the owners licensee. A person, firm
14or corporation is ineligible to receive an owners license if:
15        (1) the person has been convicted of a felony under the
16    laws of this State, any other state, or the United States;
17        (2) the person has been convicted of any violation of
18    Article 28 of the Criminal Code of 1961 or the Criminal
19    Code of 2012, or substantially similar laws of any other
20    jurisdiction;
21        (3) the person has submitted an application for a
22    license under this Act which contains false information;
23        (4) the person is a member of the Board;
24        (5) a person defined in (1), (2), (3) or (4) is an
25    officer, director or managerial employee of the firm or
26    corporation;



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1        (6) the firm or corporation employs a person defined in
2    (1), (2), (3) or (4) who participates in the management or
3    operation of gambling operations authorized under this
4    Act;
5        (7) (blank); or
6        (8) a license of the person, firm or corporation issued
7    under this Act, or a license to own or operate gambling
8    facilities in any other jurisdiction, has been revoked.
9    The Board is expressly prohibited from making changes to
10the requirement that licensees make payment into the Horse
11Racing Equity Trust Fund without the express authority of the
12Illinois General Assembly and making any other rule to
13implement or interpret this amendatory Act of the 95th General
14Assembly. For the purposes of this paragraph, "rules" is given
15the meaning given to that term in Section 1-70 of the Illinois
16Administrative Procedure Act.
17    (b) In determining whether to grant an owners license to an
18applicant, the Board shall consider:
19        (1) the character, reputation, experience and
20    financial integrity of the applicants and of any other or
21    separate person that either:
22            (A) controls, directly or indirectly, such
23        applicant, or
24            (B) is controlled, directly or indirectly, by such
25        applicant or by a person which controls, directly or
26        indirectly, such applicant;



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1        (2) the facilities or proposed facilities for the
2    conduct of riverboat gambling;
3        (3) the highest prospective total revenue to be derived
4    by the State from the conduct of riverboat gambling;
5        (4) the extent to which the ownership of the applicant
6    reflects the diversity of the State by including minority
7    persons, women, and persons with a disability and the good
8    faith affirmative action plan of each applicant to recruit,
9    train and upgrade minority persons, women, and persons with
10    a disability in all employment classifications;
11        (4.5) the extent to which the ownership of the
12    applicant includes veterans of service in the armed forces
13    of the United States, and the good faith affirmative action
14    plan of each applicant to recruit, train, and upgrade
15    veterans of service in the armed forces of the United
16    States in all employment classifications;
17        (5) the financial ability of the applicant to purchase
18    and maintain adequate liability and casualty insurance;
19        (6) whether the applicant has adequate capitalization
20    to provide and maintain, for the duration of a license, a
21    riverboat;
22        (7) the extent to which the applicant exceeds or meets
23    other standards for the issuance of an owners license which
24    the Board may adopt by rule; and
25        (8) The amount of the applicant's license bid.
26    (c) Each owners license shall specify the place where



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1riverboats shall operate and dock.
2    (d) Each applicant shall submit with his application, on
3forms provided by the Board, 2 sets of his fingerprints.
4    (e) The Board may issue up to 10 licenses authorizing the
5holders of such licenses to own riverboats. In the application
6for an owners license, the applicant shall state the dock at
7which the riverboat is based and the water on which the
8riverboat will be located. The Board shall issue 5 licenses to
9become effective not earlier than January 1, 1991. Three of
10such licenses shall authorize riverboat gambling on the
11Mississippi River, or, with approval by the municipality in
12which the riverboat was docked on August 7, 2003 and with Board
13approval, be authorized to relocate to a new location, in a
14municipality that (1) borders on the Mississippi River or is
15within 5 miles of the city limits of a municipality that
16borders on the Mississippi River and (2), on August 7, 2003,
17had a riverboat conducting riverboat gambling operations
18pursuant to a license issued under this Act; one of which shall
19authorize riverboat gambling from a home dock in the city of
20East St. Louis. One other license shall authorize riverboat
21gambling on the Illinois River south of Marshall County. The
22Board shall issue one additional license to become effective
23not earlier than March 1, 1992, which shall authorize riverboat
24gambling on the Des Plaines River in Will County. The Board may
25issue 4 additional licenses to become effective not earlier
26than March 1, 1992. In determining the water upon which



SB3387 Engrossed- 21 -LRB100 19071 SMS 34327 b

1riverboats will operate, the Board shall consider the economic
2benefit which riverboat gambling confers on the State, and
3shall seek to assure that all regions of the State share in the
4economic benefits of riverboat gambling.
5    In granting all licenses, the Board may give favorable
6consideration to economically depressed areas of the State, to
7applicants presenting plans which provide for significant
8economic development over a large geographic area, and to
9applicants who currently operate non-gambling riverboats in
10Illinois. The Board shall review all applications for owners
11licenses, and shall inform each applicant of the Board's
12decision. The Board may grant an owners license to an applicant
13that has not submitted the highest license bid, but if it does
14not select the highest bidder, the Board shall issue a written
15decision explaining why another applicant was selected and
16identifying the factors set forth in this Section that favored
17the winning bidder.
18    In addition to any other revocation powers granted to the
19Board under this Act, the Board may revoke the owners license
20of a licensee which fails to begin conducting gambling within
2115 months of receipt of the Board's approval of the application
22if the Board determines that license revocation is in the best
23interests of the State.
24    (f) The first 10 owners licenses issued under this Act
25shall permit the holder to own up to 2 riverboats and equipment
26thereon for a period of 3 years after the effective date of the



SB3387 Engrossed- 22 -LRB100 19071 SMS 34327 b

1license. Holders of the first 10 owners licenses must pay the
2annual license fee for each of the 3 years during which they
3are authorized to own riverboats.
4    (g) Upon the termination, expiration, or revocation of each
5of the first 10 licenses, which shall be issued for a 3 year
6period, all licenses are renewable annually upon payment of the
7fee and a determination by the Board that the licensee
8continues to meet all of the requirements of this Act and the
9Board's rules. However, for licenses renewed on or after May 1,
101998, renewal shall be for a period of 4 years, unless the
11Board sets a shorter period.
12    (h) An owners license shall entitle the licensee to own up
13to 2 riverboats. A licensee shall limit the number of gambling
14participants to 1,200 for any such owners license. A licensee
15may operate both of its riverboats concurrently, provided that
16the total number of gambling participants on both riverboats
17does not exceed 1,200. Riverboats licensed to operate on the
18Mississippi River and the Illinois River south of Marshall
19County shall have an authorized capacity of at least 500
20persons. Any other riverboat licensed under this Act shall have
21an authorized capacity of at least 400 persons.
22    (i) A licensed owner is authorized to apply to the Board
23for and, if approved therefor, to receive all licenses from the
24Board necessary for the operation of a riverboat, including a
25liquor license, a license to prepare and serve food for human
26consumption, and other necessary licenses. All use, occupation



SB3387 Engrossed- 23 -LRB100 19071 SMS 34327 b

1and excise taxes which apply to the sale of food and beverages
2in this State and all taxes imposed on the sale or use of
3tangible personal property apply to such sales aboard the
5    (j) The Board may issue or re-issue a license authorizing a
6riverboat to dock in a municipality or approve a relocation
7under Section 11.2 only if, prior to the issuance or
8re-issuance of the license or approval, the governing body of
9the municipality in which the riverboat will dock has by a
10majority vote approved the docking of riverboats in the
11municipality. The Board may issue or re-issue a license
12authorizing a riverboat to dock in areas of a county outside
13any municipality or approve a relocation under Section 11.2
14only if, prior to the issuance or re-issuance of the license or
15approval, the governing body of the county has by a majority
16vote approved of the docking of riverboats within such areas.
17(Source: P.A. 100-391, eff. 8-25-17.)
18    (230 ILCS 10/7.6)
19    Sec. 7.6. Business enterprise program.
20    (a) For the purposes of this Section, the terms "minority",
21"minority-owned business", "woman", "women-owned business",
22"person with a disability", and "business owned by a person
23with a disability" have the meanings ascribed to them in the
24Business Enterprise for Minorities, Women, and Persons with
25Disabilities Act.



SB3387 Engrossed- 24 -LRB100 19071 SMS 34327 b

1    (b) The Board shall, by rule, establish goals for the award
2of contracts by each owners licensee to businesses owned by
3minorities, women, and persons with disabilities, expressed as
4percentages of an owners licensee's total dollar amount of
5contracts awarded during each calendar year. Each owners
6licensee must make every effort to meet the goals established
7by the Board pursuant to this Section. When setting the goals
8for the award of contracts, the Board shall not include
9contracts where: (1) any purchasing mandates would be dependent
10upon the availability of minority-owned businesses,
11women-owned businesses, and businesses owned by persons with
12disabilities ready, willing, and able with capacity to provide
13quality goods and services to a gaming operation at reasonable
14prices; (2) there are no or a limited number of licensed
15suppliers as defined by this Act for the goods or services
16provided to the licensee; (3) the licensee or its parent
17company owns a company that provides the goods or services; or
18(4) the goods or services are provided to the licensee by a
19publicly traded company.
20    (c) Each owners licensee shall file with the Board an
21annual report of its utilization of minority-owned businesses,
22women-owned businesses, and businesses owned by persons with
23disabilities during the preceding calendar year. The reports
24shall include a self-evaluation of the efforts of the owners
25licensee to meet its goals under this Section.
26    (c-5) The Board shall, by rule, establish goals for the



SB3387 Engrossed- 25 -LRB100 19071 SMS 34327 b

1award of contracts by each owners licensee to businesses owned
2by veterans of service in the armed forces of the United
3States, expressed as percentages of an owners licensee's total
4dollar amount of contracts awarded during each calendar year.
5When setting the goals for the award of contracts, the Board
6shall not include contracts where: (1) any purchasing mandates
7would be dependent upon the availability of veteran-owned
8businesses ready, willing, and able with capacity to provide
9quality goods and services to a gaming operation at reasonable
10prices; (2) there are no or a limited number of licensed
11suppliers as defined in this Act for the goods or services
12provided to the licensee; (3) the licensee or its parent
13company owns a company that provides the goods or services; or
14(4) the goods or services are provided to the licensee by a
15publicly traded company.
16    Each owners licensee shall file with the Board an annual
17report of its utilization of veteran-owned businesses during
18the preceding calendar year. The reports shall include a
19self-evaluation of the efforts of the owners licensee to meet
20its goals under this Section.
21    (d) The owners licensee shall have the right to request a
22waiver from the requirements of this Section. The Board shall
23grant the waiver where the owners licensee demonstrates that
24there has been made a good faith effort to comply with the
25goals for participation by minority-owned businesses,
26women-owned businesses, and businesses owned by persons with



SB3387 Engrossed- 26 -LRB100 19071 SMS 34327 b

1disabilities, and veteran-owned businesses.
2    (e) If the Board determines that its goals and policies are
3not being met by any owners licensee, then the Board may:
4        (1) adopt remedies for such violations; and
5        (2) recommend that the owners licensee provide
6    additional opportunities for participation by
7    minority-owned businesses, women-owned businesses, and
8    businesses owned by persons with disabilities, and
9    veteran-owned businesses; such recommendations may
10    include, but shall not be limited to:
11            (A) assurances of stronger and better focused
12        solicitation efforts to obtain more minority-owned
13        businesses, women-owned businesses, and businesses
14        owned by persons with disabilities, and veteran-owned
15        businesses as potential sources of supply;
16            (B) division of job or project requirements, when
17        economically feasible, into tasks or quantities to
18        permit participation of minority-owned businesses,
19        women-owned businesses, and businesses owned by
20        persons with disabilities, and veteran-owned
21        businesses;
22            (C) elimination of extended experience or
23        capitalization requirements, when programmatically
24        feasible, to permit participation of minority-owned
25        businesses, women-owned businesses, and businesses
26        owned by persons with disabilities, and veteran-owned



SB3387 Engrossed- 27 -LRB100 19071 SMS 34327 b

1        businesses;
2            (D) identification of specific proposed contracts
3        as particularly attractive or appropriate for
4        participation by minority-owned businesses,
5        women-owned businesses, and businesses owned by
6        persons with disabilities, and veteran-owned
7        businesses, such identification to result from and be
8        coupled with the efforts of items (A) through (C); and
9            (E) implementation of regulations established for
10        the use of the sheltered market process.
11    (f) The Board shall file, no later than March 1 of each
12year, an annual report that shall detail the level of
13achievement toward the goals specified in this Section over the
143 most recent fiscal years. The annual report shall include,
15but need not be limited to:
16        (1) a summary detailing expenditures subject to the
17    goals, the actual goals specified, and the goals attained
18    by each owners licensee; and
19        (2) an analysis of the level of overall goal
20    achievement concerning purchases from minority-owned
21    businesses, women-owned businesses, and businesses owned
22    by persons with disabilities, and veteran-owned
23    businesses.
24(Source: P.A. 99-78, eff. 7-20-15; 100-391, eff. 8-25-17.)
25    Section 10. The Video Gaming Act is amended by changing



SB3387 Engrossed- 28 -LRB100 19071 SMS 34327 b

1Sections 25, 45, and 80 as follows:
2    (230 ILCS 40/25)
3    Sec. 25. Restriction of licensees.
4    (a) Manufacturer. A person may not be licensed as a
5manufacturer of a video gaming terminal in Illinois unless the
6person has a valid manufacturer's license issued under this
7Act. A manufacturer may only sell video gaming terminals for
8use in Illinois to persons having a valid distributor's
10    (b) Distributor. A person may not sell, distribute, or
11lease or market a video gaming terminal in Illinois unless the
12person has a valid distributor's license issued under this Act.
13A distributor may only sell video gaming terminals for use in
14Illinois to persons having a valid distributor's or terminal
15operator's license.
16    (c) Terminal operator. A person may not own, maintain, or
17place a video gaming terminal unless he has a valid terminal
18operator's license issued under this Act. A terminal operator
19may only place video gaming terminals for use in Illinois in
20licensed establishments, licensed truck stop establishments,
21licensed fraternal establishments, and licensed veterans
22establishments. No terminal operator may give anything of
23value, including but not limited to a loan or financing
24arrangement, to a licensed establishment, licensed truck stop
25establishment, licensed fraternal establishment, or licensed



SB3387 Engrossed- 29 -LRB100 19071 SMS 34327 b

1veterans establishment as any incentive or inducement to locate
2video terminals in that establishment. Of the after-tax profits
3from a video gaming terminal, 50% shall be paid to the terminal
4operator and 50% shall be paid to the licensed establishment,
5licensed truck stop establishment, licensed fraternal
6establishment, or licensed veterans establishment,
7notwithstanding any agreement to the contrary. A video terminal
8operator that violates one or more requirements of this
9subsection is guilty of a Class 4 felony and is subject to
10termination of his or her license by the Board.
11    (d) Licensed technician. A person may not service,
12maintain, or repair a video gaming terminal in this State
13unless he or she (1) has a valid technician's license issued
14under this Act, (2) is a terminal operator, or (3) is employed
15by a terminal operator, distributor, or manufacturer.
16    (d-5) Licensed terminal handler. No person, including, but
17not limited to, an employee or independent contractor working
18for a manufacturer, distributor, supplier, technician, or
19terminal operator licensed pursuant to this Act, shall have
20possession or control of a video gaming terminal, or access to
21the inner workings of a video gaming terminal, unless that
22person possesses a valid terminal handler's license issued
23under this Act.
24    (e) Licensed establishment. No video gaming terminal may be
25placed in any licensed establishment, licensed veterans
26establishment, licensed truck stop establishment, or licensed



SB3387 Engrossed- 30 -LRB100 19071 SMS 34327 b

1fraternal establishment unless the owner or agent of the owner
2of the licensed establishment, licensed veterans
3establishment, licensed truck stop establishment, or licensed
4fraternal establishment has entered into a written use
5agreement with the terminal operator for placement of the
6terminals. A copy of the use agreement shall be on file in the
7terminal operator's place of business and available for
8inspection by individuals authorized by the Board. A licensed
9establishment, licensed truck stop establishment, licensed
10veterans establishment, or licensed fraternal establishment
11may operate up to 5 video gaming terminals on its premises at
12any time.
13    (f) (Blank).
14    (g) Financial interest restrictions. As used in this Act,
15"substantial interest" in a partnership, a corporation, an
16organization, an association, a business, or a limited
17liability company means:
18        (A) When, with respect to a sole proprietorship, an
19    individual or his or her spouse owns, operates, manages, or
20    conducts, directly or indirectly, the organization,
21    association, or business, or any part thereof; or
22        (B) When, with respect to a partnership, the individual
23    or his or her spouse shares in any of the profits, or
24    potential profits, of the partnership activities; or
25        (C) When, with respect to a corporation, an individual
26    or his or her spouse is an officer or director, or the



SB3387 Engrossed- 31 -LRB100 19071 SMS 34327 b

1    individual or his or her spouse is a holder, directly or
2    beneficially, of 5% or more of any class of stock of the
3    corporation; or
4        (D) When, with respect to an organization not covered
5    in (A), (B) or (C) above, an individual or his or her
6    spouse is an officer or manages the business affairs, or
7    the individual or his or her spouse is the owner of or
8    otherwise controls 10% or more of the assets of the
9    organization; or
10        (E) When an individual or his or her spouse furnishes
11    5% or more of the capital, whether in cash, goods, or
12    services, for the operation of any business, association,
13    or organization during any calendar year; or
14        (F) When, with respect to a limited liability company,
15    an individual or his or her spouse is a member, or the
16    individual or his or her spouse is a holder, directly or
17    beneficially, of 5% or more of the membership interest of
18    the limited liability company.
19    For purposes of this subsection (g), "individual" includes
20all individuals or their spouses whose combined interest would
21qualify as a substantial interest under this subsection (g) and
22whose activities with respect to an organization, association,
23or business are so closely aligned or coordinated as to
24constitute the activities of a single entity.
25    (h) Location restriction. A licensed establishment,
26licensed truck stop establishment, licensed fraternal



SB3387 Engrossed- 32 -LRB100 19071 SMS 34327 b

1establishment, or licensed veterans establishment that is (i)
2located within 1,000 feet of a facility operated by an
3organization licensee licensed under the Illinois Horse Racing
4Act of 1975 or the home dock of a riverboat licensed under the
5Riverboat Gambling Act or (ii) located within 100 feet of a
6school or a place of worship under the Religious Corporation
7Act, is ineligible to operate a video gaming terminal. The
8location restrictions in this subsection (h) do not apply if
9(A) a facility operated by an organization licensee, a school,
10or a place of worship moves to or is established within the
11restricted area after a licensed establishment, licensed truck
12stop establishment, licensed fraternal establishment, or
13licensed veterans establishment becomes licensed under this
14Act or (B) a school or place of worship moves to or is
15established within the restricted area after a licensed
16establishment, licensed truck stop establishment, licensed
17fraternal establishment, or licensed veterans establishment
18obtains its original liquor license. For the purpose of this
19subsection, "school" means an elementary or secondary public
20school, or an elementary or secondary private school registered
21with or recognized by the State Board of Education.
22    Notwithstanding the provisions of this subsection (h), the
23Board may waive the requirement that a licensed establishment,
24licensed truck stop establishment, licensed fraternal
25establishment, or licensed veterans establishment not be
26located within 1,000 feet from a facility operated by an



SB3387 Engrossed- 33 -LRB100 19071 SMS 34327 b

1organization licensee licensed under the Illinois Horse Racing
2Act of 1975 or the home dock of a riverboat licensed under the
3Riverboat Gambling Act. The Board shall not grant such waiver
4if there is any common ownership or control, shared business
5activity, or contractual arrangement of any type between the
6establishment and the organization licensee or owners licensee
7of a riverboat. The Board shall adopt rules to implement the
8provisions of this paragraph.
9    (h-5) Restrictions on licenses in malls. The Board shall
10not grant an application to become a licensed video gaming
11location if the Board determines that granting the application
12would more likely than not cause a terminal operator,
13individually or in combination with other terminal operators,
14licensed video gaming location, or other person or entity, to
15operate the video gaming terminals in 2 or more licensed video
16gaming locations as a single video gaming operation.
17        (1) In making determinations under this subsection
18    (h-5), factors to be considered by the Board shall include,
19    but not be limited to, the following:
20            (A) the physical aspects of the location;
21            (B) the ownership, control, or management of the
22        location;
23            (C) any arrangements, understandings, or
24        agreements, written or otherwise, among or involving
25        any persons or entities that involve the conducting of
26        any video gaming business or the sharing of costs or



SB3387 Engrossed- 34 -LRB100 19071 SMS 34327 b

1        revenues; and
2            (D) the manner in which any terminal operator or
3        other related entity markets, advertises, or otherwise
4        describes any location or locations to any other person
5        or entity or to the public.
6        (2) The Board shall presume, subject to rebuttal, that
7    the granting of an application to become a licensed video
8    gaming location within a mall will cause a terminal
9    operator, individually or in combination with other
10    persons or entities, to operate the video gaming terminals
11    in 2 or more licensed video gaming locations as a single
12    video gaming operation if the Board determines that
13    granting the license would create a local concentration of
14    licensed video gaming locations.
15    For the purposes of this subsection (h-5):
16    "Mall" means a building, or adjoining or connected
17buildings, containing 4 or more separate locations.
18    "Video gaming operation" means the conducting of video
19gaming and all related activities.
20    "Location" means a space within a mall containing a
21separate business, a place for a separate business, or a place
22subject to a separate leasing arrangement by the mall owner.
23    "Licensed video gaming location" means a licensed
24establishment, licensed fraternal establishment, licensed
25veterans establishment, or licensed truck stop.
26    "Local concentration of licensed video gaming locations"



SB3387 Engrossed- 35 -LRB100 19071 SMS 34327 b

1means that the combined number of licensed video gaming
2locations within a mall exceed half of the separate locations
3within the mall.
4    (i) Undue economic concentration. In addition to
5considering all other requirements under this Act, in deciding
6whether to approve the operation of video gaming terminals by a
7terminal operator in a location, the Board shall consider the
8impact of any economic concentration of such operation of video
9gaming terminals. The Board shall not allow a terminal operator
10to operate video gaming terminals if the Board determines such
11operation will result in undue economic concentration. For
12purposes of this Section, "undue economic concentration" means
13that a terminal operator would have such actual or potential
14influence over video gaming terminals in Illinois as to:
15        (1) substantially impede or suppress competition among
16    terminal operators;
17        (2) adversely impact the economic stability of the
18    video gaming industry in Illinois; or
19        (3) negatively impact the purposes of the Video Gaming
20    Act.
21    The Board shall adopt rules concerning undue economic
22concentration with respect to the operation of video gaming
23terminals in Illinois. The rules shall include, but not be
24limited to, (i) limitations on the number of video gaming
25terminals operated by any terminal operator within a defined
26geographic radius and (ii) guidelines on the discontinuation of



SB3387 Engrossed- 36 -LRB100 19071 SMS 34327 b

1operation of any such video gaming terminals the Board
2determines will cause undue economic concentration.
3    (j) The provisions of the Illinois Antitrust Act are fully
4and equally applicable to the activities of any licensee under
5this Act.
6(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,
7eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
8    (230 ILCS 40/45)
9    Sec. 45. Issuance of license.
10    (a) The burden is upon each applicant to demonstrate his
11suitability for licensure. Each video gaming terminal
12manufacturer, distributor, supplier, operator, handler,
13licensed establishment, licensed truck stop establishment,
14licensed fraternal establishment, and licensed veterans
15establishment shall be licensed by the Board. The Board may
16issue or deny a license under this Act to any person pursuant
17to the same criteria set forth in Section 9 of the Riverboat
18Gambling Act.
19    (a-5) The Board shall not grant a license to a person who
20has facilitated, enabled, or participated in the use of
21coin-operated devices for gambling purposes or who is under the
22significant influence or control of such a person. For the
23purposes of this Act, "facilitated, enabled, or participated in
24the use of coin-operated amusement devices for gambling
25purposes" means that the person has been convicted of any



SB3387 Engrossed- 37 -LRB100 19071 SMS 34327 b

1violation of Article 28 of the Criminal Code of 1961 or the
2Criminal Code of 2012. If there is pending legal action against
3a person for any such violation, then the Board shall delay the
4licensure of that person until the legal action is resolved.
5    (b) Each person seeking and possessing a license as a video
6gaming terminal manufacturer, distributor, supplier, operator,
7handler, licensed establishment, licensed truck stop
8establishment, licensed fraternal establishment, or licensed
9veterans establishment shall submit to a background
10investigation conducted by the Board with the assistance of the
11State Police or other law enforcement. To the extent that the
12corporate structure of the applicant allows, the background
13investigation shall include any or all of the following as the
14Board deems appropriate or as provided by rule for each
15category of licensure: (i) each beneficiary of a trust, (ii)
16each partner of a partnership, (iii) each member of a limited
17liability company, (iv) each director and officer of a publicly
18or non-publicly held corporation, (v) each stockholder of a
19non-publicly held corporation, (vi) each stockholder of 5% or
20more of a publicly held corporation, or (vii) each stockholder
21of 5% or more in a parent or subsidiary corporation.
22    (c) Each person seeking and possessing a license as a video
23gaming terminal manufacturer, distributor, supplier, operator,
24handler, licensed establishment, licensed truck stop
25establishment, licensed fraternal establishment, or licensed
26veterans establishment shall disclose the identity of every



SB3387 Engrossed- 38 -LRB100 19071 SMS 34327 b

1person, association, trust, corporation, or limited liability
2company having a greater than 1% direct or indirect pecuniary
3interest in the video gaming terminal operation for which the
4license is sought. If the disclosed entity is a trust, the
5application shall disclose the names and addresses of the
6beneficiaries; if a corporation, the names and addresses of all
7stockholders and directors; if a limited liability company, the
8names and addresses of all members; or if a partnership, the
9names and addresses of all partners, both general and limited.
10    (d) No person may be licensed as a video gaming terminal
11manufacturer, distributor, supplier, operator, handler,
12licensed establishment, licensed truck stop establishment,
13licensed fraternal establishment, or licensed veterans
14establishment if that person has been found by the Board to:
15        (1) have a background, including a criminal record,
16    reputation, habits, social or business associations, or
17    prior activities that pose a threat to the public interests
18    of the State or to the security and integrity of video
19    gaming;
20        (2) create or enhance the dangers of unsuitable,
21    unfair, or illegal practices, methods, and activities in
22    the conduct of video gaming; or
23        (3) present questionable business practices and
24    financial arrangements incidental to the conduct of video
25    gaming activities.
26    (e) Any applicant for any license under this Act has the



SB3387 Engrossed- 39 -LRB100 19071 SMS 34327 b

1burden of proving his or her qualifications to the satisfaction
2of the Board. The Board may adopt rules to establish additional
3qualifications and requirements to preserve the integrity and
4security of video gaming in this State.
5    (f) A non-refundable application fee shall be paid at the
6time an application for a license is filed with the Board in
7the following amounts:
8        (1) Manufacturer..........................$5,000
9        (2) Distributor...........................$5,000
10        (3) Terminal operator.....................$5,000
11        (4) Supplier..............................$2,500
12        (5) Technician..............................$100
13        (6) Terminal Handler.....................$100 $50
14        (7) Licensed establishment, licensed truck stop
15    establishment, licensed fraternal establishment,
16    or licensed veterans establishment...................$100
17    (g) The Board shall establish an annual fee for each
18license not to exceed the following:
19        (1) Manufacturer.........................$10,000
20        (2) Distributor..........................$10,000
21        (3) Terminal operator.....................$5,000
22        (4) Supplier..............................$2,000
23        (5) Technician..............................$100
24        (6) Licensed establishment, licensed truck stop
25    establishment, licensed fraternal establishment,
26    or licensed veterans establishment..............$100



SB3387 Engrossed- 40 -LRB100 19071 SMS 34327 b

1        (7) Video gaming terminal...................$100
2        (8) Terminal Handler.........................$100 $50
3    (h) A terminal operator and a licensed establishment,
4licensed truck stop establishment, licensed fraternal
5establishment, or licensed veterans establishment shall
6equally split the fees specified in item (7) of subsection (g).
7(Source: P.A. 97-1150, eff. 1-25-13; 98-31, eff. 6-24-13;
898-587, eff. 8-27-13; 98-756, eff. 7-16-14.)
9    (230 ILCS 40/80)
10    Sec. 80. Applicability of Illinois Riverboat Gambling Act.
11The provisions of the Illinois Riverboat Gambling Act, and all
12rules promulgated thereunder, shall apply to the Video Gaming
13Act, except where there is a conflict between the 2 Acts. All
14current supplier licensees under the Riverboat Gambling Act
15shall be entitled to licensure under the Video Gaming Act as
16manufacturers, distributors, or suppliers without additional
17Board investigation or approval, except by vote of the Board;
18however, they are required to pay application and annual fees
19under this Act. All provisions of the Uniform Penalty and
20Interest Act shall apply, as far as practicable, to the subject
21matter of this Act to the same extent as if such provisions
22were included herein.
23(Source: P.A. 96-37, eff. 7-13-09.)