Sen. Dave Syverson

Filed: 4/5/2018





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2    AMENDMENT NO. ______. Amend Senate Bill 3387 by replacing
3everything after the enacting clause with the following:
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.



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1    (2) The Board shall consist of 5 members to be appointed by
2the Governor with the advice and consent of the Senate, one of
3whom shall be designated by the Governor to be chairman. Each
4member shall have a reasonable knowledge of the practice,
5procedure and principles of gambling operations. Each member
6shall either be a resident of Illinois or shall certify that he
7will become a resident of Illinois before taking office. At
8least one member shall be experienced in law enforcement and
9criminal investigation, at least one member shall be a
10certified public accountant experienced in accounting and
11auditing, and at least one member shall be a lawyer licensed to
12practice law in Illinois.
13    (3) The terms of office of the Board members shall be 3
14years, except that the terms of office of the initial Board
15members appointed pursuant to this Act will commence from the
16effective date of this Act and run as follows: one for a term
17ending July 1, 1991, 2 for a term ending July 1, 1992, and 2 for
18a term ending July 1, 1993. Upon the expiration of the
19foregoing terms, the successors of such members shall serve a
20term for 3 years and until their successors are appointed and
21qualified for like terms. Vacancies in the Board shall be
22filled for the unexpired term in like manner as original
23appointments. Each member of the Board shall be eligible for
24reappointment at the discretion of the Governor with the advice
25and consent of the Senate.
26    (4) Each member of the Board shall receive $300 for each



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1day the Board meets and for each day the member conducts any
2hearing pursuant to this Act. Each member of the Board shall
3also be reimbursed for all actual and necessary expenses and
4disbursements incurred in the execution of official duties.
5    (5) No person shall be appointed a member of the Board or
6continue to be a member of the Board who is, or whose spouse,
7child or parent is, a member of the board of directors of, or a
8person financially interested in, any gambling operation
9subject to the jurisdiction of this Board, or any race track,
10race meeting, racing association or the operations thereof
11subject to the jurisdiction of the Illinois Racing Board. No
12Board member shall hold any other public office. No person
13shall be a member of the Board who is not of good moral
14character or who has been convicted of, or is under indictment
15for, a felony under the laws of Illinois or any other state, or
16the United States.
17    (5.5) No member of the Board shall engage in any political
18activity. For the purposes of this Section, "political" means
19any activity in support of or in connection with any campaign
20for federal, State, or local elective office or any political
21organization, but does not include activities (i) relating to
22the support or opposition of any executive, legislative, or
23administrative action (as those terms are defined in Section 2
24of the Lobbyist Registration Act), (ii) relating to collective
25bargaining, or (iii) that are otherwise in furtherance of the
26person's official State duties or governmental and public



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1service functions.
2    (6) Any member of the Board may be removed by the Governor
3for neglect of duty, misfeasance, malfeasance, or nonfeasance
4in office or for engaging in any political activity.
5    (7) Before entering upon the discharge of the duties of his
6office, each member of the Board shall take an oath that he
7will faithfully execute the duties of his office according to
8the laws of the State and the rules and regulations adopted
9therewith and shall give bond to the State of Illinois,
10approved by the Governor, in the sum of $25,000. Every such
11bond, when duly executed and approved, shall be recorded in the
12office of the Secretary of State. Whenever the Governor
13determines that the bond of any member of the Board has become
14or is likely to become invalid or insufficient, he shall
15require such member forthwith to renew his bond, which is to be
16approved by the Governor. Any member of the Board who fails to
17take oath and give bond within 30 days from the date of his
18appointment, or who fails to renew his bond within 30 days
19after it is demanded by the Governor, shall be guilty of
20neglect of duty and may be removed by the Governor. The cost of
21any bond given by any member of the Board under this Section
22shall be taken to be a part of the necessary expenses of the
24    (7.5) For the examination of all mechanical,
25electromechanical, or electronic table games, slot machines,
26slot accounting systems, and other electronic gaming equipment



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



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



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



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



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



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



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



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



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1    which shall be used only for wagering in the gambling
2    establishment.
3        (14) (Blank).
4        (15) To suspend, revoke or restrict licenses, to
5    require the removal of a licensee or an employee of a
6    licensee for a violation of this Act or a Board rule or for
7    engaging in a fraudulent practice, and to impose civil
8    penalties of up to $5,000 against individuals and up to
9    $10,000 or an amount equal to the daily gross receipts,
10    whichever is larger, against licensees for each violation
11    of any provision of the Act, any rules adopted by the
12    Board, any order of the Board or any other action which, in
13    the Board's discretion, is a detriment or impediment to
14    riverboat gambling operations, provided that these
15    limitations on civil penalties shall not apply to civil
16    penalties assessed under the Video Gaming Act.
17        (16) To hire employees to gather information, conduct
18    investigations and carry out any other tasks contemplated
19    under this Act.
20        (17) To establish minimum levels of insurance to be
21    maintained by licensees.
22        (18) To authorize a licensee to sell or serve alcoholic
23    liquors, wine or beer as defined in the Liquor Control Act
24    of 1934 on board a riverboat and to have exclusive
25    authority to establish the hours for sale and consumption
26    of alcoholic liquor on board a riverboat, notwithstanding



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1    any provision of the Liquor Control Act of 1934 or any
2    local ordinance, and regardless of whether the riverboat
3    makes excursions. The establishment of the hours for sale
4    and consumption of alcoholic liquor on board a riverboat is
5    an exclusive power and function of the State. A home rule
6    unit may not establish the hours for sale and consumption
7    of alcoholic liquor on board a riverboat. This amendatory
8    Act of 1991 is a denial and limitation of home rule powers
9    and functions under subsection (h) of Section 6 of Article
10    VII of the Illinois Constitution.
11        (19) After consultation with the U.S. Army Corps of
12    Engineers, to establish binding emergency orders upon the
13    concurrence of a majority of the members of the Board
14    regarding the navigability of water, relative to
15    excursions, in the event of extreme weather conditions,
16    acts of God or other extreme circumstances.
17        (20) To delegate the execution of any of its powers
18    under this Act for the purpose of administering and
19    enforcing this Act and its rules and regulations hereunder.
20        (20.5) To approve any contract entered into on its
21    behalf.
22        (20.6) To appoint investigators to conduct
23    investigations, searches, seizures, arrests, and other
24    duties imposed under this Act, as deemed necessary by the
25    Board. These investigators have and may exercise all of the
26    rights and powers of peace officers, provided that these



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



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1investigations of applicants and in fulfilling its
2responsibilities under this Section. Costs incurred by the
3Department of State Police as a result of such cooperation
4shall be paid by the Board in conformance with the requirements
5of Section 2605-400 of the Department of State Police Law (20
6ILCS 2605/2605-400).
7    (e) The Board must authorize to each investigator and to
8any other employee of the Board exercising the powers of a
9peace officer a distinct badge that, on its face, (i) clearly
10states that the badge is authorized by the Board and (ii)
11contains a unique identifying number. No other badge shall be
12authorized by the Board.
13(Source: P.A. 98-377, eff. 1-1-14; 98-582, eff. 8-27-13.)
14    (230 ILCS 10/7)  (from Ch. 120, par. 2407)
15    Sec. 7. Owners licenses.
16    (a) The Board shall issue owners licenses to persons, firms
17or corporations which apply for such licenses upon payment to
18the Board of the non-refundable license fee set by the Board,
19upon payment of a $25,000 license fee for the first year of
20operation and a $5,000 license fee for each succeeding year and
21upon a determination by the Board that the applicant is
22eligible for an owners license pursuant to this Act and the
23rules of the Board. From the effective date of this amendatory
24Act of the 95th General Assembly until (i) 3 years after the
25effective date of this amendatory Act of the 95th General



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1Assembly, (ii) the date any organization licensee begins to
2operate a slot machine or video game of chance under the
3Illinois Horse Racing Act of 1975 or this Act, (iii) the date
4that payments begin under subsection (c-5) of Section 13 of the
5Act, or (iv) the wagering tax imposed under Section 13 of this
6Act is increased by law to reflect a tax rate that is at least
7as stringent or more stringent than the tax rate contained in
8subsection (a-3) of Section 13, whichever occurs first, as a
9condition of licensure and as an alternative source of payment
10for those funds payable under subsection (c-5) of Section 13 of
11the Riverboat Gambling Act, any owners licensee that holds or
12receives its owners license on or after the effective date of
13this amendatory Act of the 94th General Assembly, other than an
14owners licensee operating a riverboat with adjusted gross
15receipts in calendar year 2004 of less than $200,000,000, must
16pay into the Horse Racing Equity Trust Fund, in addition to any
17other payments required under this Act, an amount equal to 3%
18of the adjusted gross receipts received by the owners licensee.
19The payments required under this Section shall be made by the
20owners licensee to the State Treasurer no later than 3:00
21o'clock p.m. of the day after the day when the adjusted gross
22receipts were received by the owners licensee. A person, firm
23or corporation is ineligible to receive an owners license if:
24        (1) the person has been convicted of a felony under the
25    laws of this State, any other state, or the United States;
26        (2) the person has been convicted of any violation of



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1    Article 28 of the Criminal Code of 1961 or the Criminal
2    Code of 2012, or substantially similar laws of any other
3    jurisdiction;
4        (3) the person has submitted an application for a
5    license under this Act which contains false information;
6        (4) the person is a member of the Board;
7        (5) a person defined in (1), (2), (3) or (4) is an
8    officer, director or managerial employee of the firm or
9    corporation;
10        (6) the firm or corporation employs a person defined in
11    (1), (2), (3) or (4) who participates in the management or
12    operation of gambling operations authorized under this
13    Act;
14        (7) (blank); or
15        (8) a license of the person, firm or corporation issued
16    under this Act, or a license to own or operate gambling
17    facilities in any other jurisdiction, has been revoked.
18    The Board is expressly prohibited from making changes to
19the requirement that licensees make payment into the Horse
20Racing Equity Trust Fund without the express authority of the
21Illinois General Assembly and making any other rule to
22implement or interpret this amendatory Act of the 95th General
23Assembly. For the purposes of this paragraph, "rules" is given
24the meaning given to that term in Section 1-70 of the Illinois
25Administrative Procedure Act.
26    (b) In determining whether to grant an owners license to an



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1applicant, 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 such
8        applicant or by a person which controls, directly or
9        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 derived
13    by the State from the conduct of riverboat gambling;
14        (4) the extent to which the ownership of the applicant
15    reflects the diversity of the State by including minority
16    persons, women, and persons with a disability and the good
17    faith affirmative action plan of each applicant to recruit,
18    train and upgrade minority persons, women, and persons with
19    a disability in all employment classifications;
20        (4.5) the extent to which the ownership of the
21    applicant includes veterans of service in the armed forces
22    of the United States, and the good faith affirmative action
23    plan of each applicant to recruit, train, and upgrade
24    veterans of service in the armed forces of the United
25    States in all employment classifications;
26        (5) the financial ability of the applicant to purchase



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1    and maintain adequate liability and casualty insurance;
2        (6) whether the applicant has adequate capitalization
3    to provide and maintain, for the duration of a license, a
4    riverboat;
5        (7) the extent to which the applicant exceeds or meets
6    other standards for the issuance of an owners license which
7    the Board may adopt by rule; and
8        (8) The amount of the applicant's license bid.
9    (c) Each owners license shall specify the place where
10riverboats shall operate and dock.
11    (d) Each applicant shall submit with his application, on
12forms provided by the Board, 2 sets of his fingerprints.
13    (e) The Board may issue up to 10 licenses authorizing the
14holders of such licenses to own riverboats. In the application
15for an owners license, the applicant shall state the dock at
16which the riverboat is based and the water on which the
17riverboat will be located. The Board shall issue 5 licenses to
18become effective not earlier than January 1, 1991. Three of
19such licenses shall authorize riverboat gambling on the
20Mississippi River, or, with approval by the municipality in
21which the riverboat was docked on August 7, 2003 and with Board
22approval, be authorized to relocate to a new location, in a
23municipality that (1) borders on the Mississippi River or is
24within 5 miles of the city limits of a municipality that
25borders on the Mississippi River and (2), on August 7, 2003,
26had a riverboat conducting riverboat gambling operations



10000SB3387sam001- 21 -LRB100 19071 SMS 38007 a

1pursuant to a license issued under this Act; one of which shall
2authorize riverboat gambling from a home dock in the city of
3East St. Louis. One other license shall authorize riverboat
4gambling on the Illinois River south of Marshall County. The
5Board shall issue one additional license to become effective
6not earlier than March 1, 1992, which shall authorize riverboat
7gambling on the Des Plaines River in Will County. The Board may
8issue 4 additional licenses to become effective not earlier
9than March 1, 1992. In determining the water upon which
10riverboats will operate, the Board shall consider the economic
11benefit which riverboat gambling confers on the State, and
12shall seek to assure that all regions of the State share in the
13economic benefits of riverboat gambling.
14    In granting all licenses, the Board may give favorable
15consideration to economically depressed areas of the State, to
16applicants presenting plans which provide for significant
17economic development over a large geographic area, and to
18applicants who currently operate non-gambling riverboats in
19Illinois. The Board shall review all applications for owners
20licenses, and shall inform each applicant of the Board's
21decision. The Board may grant an owners license to an applicant
22that has not submitted the highest license bid, but if it does
23not select the highest bidder, the Board shall issue a written
24decision explaining why another applicant was selected and
25identifying the factors set forth in this Section that favored
26the winning bidder.



10000SB3387sam001- 22 -LRB100 19071 SMS 38007 a

1    In addition to any other revocation powers granted to the
2Board under this Act, the Board may revoke the owners license
3of a licensee which fails to begin conducting gambling within
415 months of receipt of the Board's approval of the application
5if the Board determines that license revocation is in the best
6interests of the State.
7    (f) The first 10 owners licenses issued under this Act
8shall permit the holder to own up to 2 riverboats and equipment
9thereon for a period of 3 years after the effective date of the
10license. Holders of the first 10 owners licenses must pay the
11annual license fee for each of the 3 years during which they
12are authorized to own riverboats.
13    (g) Upon the termination, expiration, or revocation of each
14of the first 10 licenses, which shall be issued for a 3 year
15period, all licenses are renewable annually upon payment of the
16fee and a determination by the Board that the licensee
17continues to meet all of the requirements of this Act and the
18Board's rules. However, for licenses renewed on or after May 1,
191998, renewal shall be for a period of 4 years, unless the
20Board sets a shorter period.
21    (h) An owners license shall entitle the licensee to own up
22to 2 riverboats. A licensee shall limit the number of gambling
23participants to 1,200 for any such owners license. A licensee
24may operate both of its riverboats concurrently, provided that
25the total number of gambling participants on both riverboats
26does not exceed 1,200. Riverboats licensed to operate on the



10000SB3387sam001- 23 -LRB100 19071 SMS 38007 a

1Mississippi River and the Illinois River south of Marshall
2County shall have an authorized capacity of at least 500
3persons. Any other riverboat licensed under this Act shall have
4an authorized capacity of at least 400 persons.
5    (i) A licensed owner is authorized to apply to the Board
6for and, if approved therefor, to receive all licenses from the
7Board necessary for the operation of a riverboat, including a
8liquor license, a license to prepare and serve food for human
9consumption, and other necessary licenses. All use, occupation
10and excise taxes which apply to the sale of food and beverages
11in this State and all taxes imposed on the sale or use of
12tangible personal property apply to such sales aboard the
14    (j) The Board may issue or re-issue a license authorizing a
15riverboat to dock in a municipality or approve a relocation
16under Section 11.2 only if, prior to the issuance or
17re-issuance of the license or approval, the governing body of
18the municipality in which the riverboat will dock has by a
19majority vote approved the docking of riverboats in the
20municipality. The Board may issue or re-issue a license
21authorizing a riverboat to dock in areas of a county outside
22any municipality or approve a relocation under Section 11.2
23only if, prior to the issuance or re-issuance of the license or
24approval, the governing body of the county has by a majority
25vote approved of the docking of riverboats within such areas.
26(Source: P.A. 100-391, eff. 8-25-17.)



10000SB3387sam001- 24 -LRB100 19071 SMS 38007 a

1    (230 ILCS 10/7.6)
2    Sec. 7.6. Business enterprise program.
3    (a) For the purposes of this Section, the terms "minority",
4"minority-owned business", "woman", "women-owned business",
5"person with a disability", and "business owned by a person
6with a disability" have the meanings ascribed to them in the
7Business Enterprise for Minorities, Women, and Persons with
8Disabilities Act.
9    (b) The Board shall, by rule, establish goals for the award
10of contracts by each owners licensee to businesses owned by
11minorities, women, and persons with disabilities, expressed as
12percentages of an owners licensee's total dollar amount of
13contracts awarded during each calendar year. Each owners
14licensee must make every effort to meet the goals established
15by the Board pursuant to this Section. When setting the goals
16for the award of contracts, the Board shall not include
17contracts where: (1) any purchasing mandates would be dependent
18upon the availability of minority-owned businesses,
19women-owned businesses, and businesses owned by persons with
20disabilities ready, willing, and able with capacity to provide
21quality goods and services to a gaming operation at reasonable
22prices; (2) there are no or a limited number of licensed
23suppliers as defined by this Act for the goods or services
24provided to the licensee; (3) the licensee or its parent
25company owns a company that provides the goods or services; or



10000SB3387sam001- 25 -LRB100 19071 SMS 38007 a

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



10000SB3387sam001- 26 -LRB100 19071 SMS 38007 a

1the preceding calendar year. The reports shall include a
2self-evaluation of the efforts of the owners licensee to meet
3its goals under this Section.
4    (d) The owners licensee shall have the right to request a
5waiver from the requirements of this Section. The Board shall
6grant the waiver where the owners licensee demonstrates that
7there has been made a good faith effort to comply with the
8goals for participation by minority-owned businesses,
9women-owned businesses, and businesses owned by persons with
10disabilities, and veteran-owned businesses.
11    (e) If the Board determines that its goals and policies are
12not being met by any owners licensee, then the Board may:
13        (1) adopt remedies for such violations; and
14        (2) recommend that the owners licensee provide
15    additional opportunities for participation by
16    minority-owned businesses, women-owned businesses, and
17    businesses owned by persons with disabilities, and
18    veteran-owned businesses; such recommendations may
19    include, but shall not be limited to:
20            (A) assurances of stronger and better focused
21        solicitation efforts to obtain more minority-owned
22        businesses, women-owned businesses, and businesses
23        owned by persons with disabilities, and veteran-owned
24        businesses as potential sources of supply;
25            (B) division of job or project requirements, when
26        economically feasible, into tasks or quantities to



10000SB3387sam001- 27 -LRB100 19071 SMS 38007 a

1        permit participation of minority-owned businesses,
2        women-owned businesses, and businesses owned by
3        persons with disabilities, and veteran-owned
4        businesses;
5            (C) elimination of extended experience or
6        capitalization requirements, when programmatically
7        feasible, to permit participation of minority-owned
8        businesses, women-owned businesses, and businesses
9        owned by persons with disabilities, and veteran-owned
10        businesses;
11            (D) identification of specific proposed contracts
12        as particularly attractive or appropriate for
13        participation by minority-owned businesses,
14        women-owned businesses, and businesses owned by
15        persons with disabilities, and veteran-owned
16        businesses, such identification to result from and be
17        coupled with the efforts of items (A) through (C); and
18            (E) implementation of regulations established for
19        the use of the sheltered market process.
20    (f) The Board shall file, no later than March 1 of each
21year, an annual report that shall detail the level of
22achievement toward the goals specified in this Section over the
233 most recent fiscal years. The annual report shall include,
24but need not be limited to:
25        (1) a summary detailing expenditures subject to the
26    goals, the actual goals specified, and the goals attained



10000SB3387sam001- 28 -LRB100 19071 SMS 38007 a

1    by each owners licensee; and
2        (2) an analysis of the level of overall goal
3    achievement concerning purchases from minority-owned
4    businesses, women-owned businesses, and businesses owned
5    by persons with disabilities, and veteran-owned
6    businesses.
7(Source: P.A. 99-78, eff. 7-20-15; 100-391, eff. 8-25-17.)
8    Section 10. The Video Gaming Act is amended by changing
9Sections 25, 45, and 80 as follows:
10    (230 ILCS 40/25)
11    Sec. 25. Restriction of licensees.
12    (a) Manufacturer. A person may not be licensed as a
13manufacturer of a video gaming terminal in Illinois unless the
14person has a valid manufacturer's license issued under this
15Act. A manufacturer may only sell video gaming terminals for
16use in Illinois to persons having a valid distributor's
18    (b) Distributor. A person may not sell, distribute, or
19lease or market a video gaming terminal in Illinois unless the
20person has a valid distributor's license issued under this Act.
21A distributor may only sell video gaming terminals for use in
22Illinois to persons having a valid distributor's or terminal
23operator's license.
24    (c) Terminal operator. A person may not own, maintain, or



10000SB3387sam001- 29 -LRB100 19071 SMS 38007 a

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



10000SB3387sam001- 30 -LRB100 19071 SMS 38007 a

1for a manufacturer, distributor, supplier, technician, or
2terminal operator licensed pursuant to this Act, shall have
3possession or control of a video gaming terminal, or access to
4the inner workings of a video gaming terminal, unless that
5person possesses a valid terminal handler's license issued
6under this Act.
7    (e) Licensed establishment. No video gaming terminal may be
8placed in any licensed establishment, licensed veterans
9establishment, licensed truck stop establishment, or licensed
10fraternal establishment unless the owner or agent of the owner
11of the licensed establishment, licensed veterans
12establishment, licensed truck stop establishment, or licensed
13fraternal establishment has entered into a written use
14agreement with the terminal operator for placement of the
15terminals. A copy of the use agreement shall be on file in the
16terminal operator's place of business and available for
17inspection by individuals authorized by the Board. A licensed
18establishment, licensed truck stop establishment, licensed
19veterans establishment, or licensed fraternal establishment
20may operate up to 5 video gaming terminals on its premises at
21any time.
22    (f) (Blank).
23    (g) Financial interest restrictions. As used in this Act,
24"substantial interest" in a partnership, a corporation, an
25organization, an association, a business, or a limited
26liability company means:



10000SB3387sam001- 31 -LRB100 19071 SMS 38007 a

1        (A) When, with respect to a sole proprietorship, an
2    individual or his or her spouse owns, operates, manages, or
3    conducts, directly or indirectly, the organization,
4    association, or business, or any part thereof; or
5        (B) When, with respect to a partnership, the individual
6    or his or her spouse shares in any of the profits, or
7    potential profits, of the partnership activities; or
8        (C) When, with respect to a corporation, an individual
9    or his or her spouse is an officer or director, or the
10    individual or his or her spouse is a holder, directly or
11    beneficially, of 5% or more of any class of stock of the
12    corporation; or
13        (D) When, with respect to an organization not covered
14    in (A), (B) or (C) above, an individual or his or her
15    spouse is an officer or manages the business affairs, or
16    the individual or his or her spouse is the owner of or
17    otherwise controls 10% or more of the assets of the
18    organization; or
19        (E) When an individual or his or her spouse furnishes
20    5% or more of the capital, whether in cash, goods, or
21    services, for the operation of any business, association,
22    or organization during any calendar year; or
23        (F) When, with respect to a limited liability company,
24    an individual or his or her spouse is a member, or the
25    individual or his or her spouse is a holder, directly or
26    beneficially, of 5% or more of the membership interest of



10000SB3387sam001- 32 -LRB100 19071 SMS 38007 a

1    the limited liability company.
2    For purposes of this subsection (g), "individual" includes
3all individuals or their spouses whose combined interest would
4qualify as a substantial interest under this subsection (g) and
5whose activities with respect to an organization, association,
6or business are so closely aligned or coordinated as to
7constitute the activities of a single entity.
8    (h) Location restriction. A licensed establishment,
9licensed truck stop establishment, licensed fraternal
10establishment, or licensed veterans establishment that is (i)
11located within 1,000 feet of a facility operated by an
12organization licensee licensed under the Illinois Horse Racing
13Act of 1975 or the home dock of a riverboat licensed under the
14Riverboat Gambling Act or (ii) located within 100 feet of a
15school or a place of worship under the Religious Corporation
16Act, is ineligible to operate a video gaming terminal. The
17location restrictions in this subsection (h) do not apply if
18(A) a facility operated by an organization licensee, a school,
19or a place of worship moves to or is established within the
20restricted area after a licensed establishment, licensed truck
21stop establishment, licensed fraternal establishment, or
22licensed veterans establishment becomes licensed under this
23Act or (B) a school or place of worship moves to or is
24established within the restricted area after a licensed
25establishment, licensed truck stop establishment, licensed
26fraternal establishment, or licensed veterans establishment



10000SB3387sam001- 33 -LRB100 19071 SMS 38007 a

1obtains its original liquor license. For the purpose of this
2subsection, "school" means an elementary or secondary public
3school, or an elementary or secondary private school registered
4with or recognized by the State Board of Education.
5    Notwithstanding the provisions of this subsection (h), the
6Board may waive the requirement that a licensed establishment,
7licensed truck stop establishment, licensed fraternal
8establishment, or licensed veterans establishment not be
9located within 1,000 feet from a facility operated by an
10organization licensee licensed under the Illinois Horse Racing
11Act of 1975 or the home dock of a riverboat licensed under the
12Riverboat Gambling Act. The Board shall not grant such waiver
13if there is any common ownership or control, shared business
14activity, or contractual arrangement of any type between the
15establishment and the organization licensee or owners licensee
16of a riverboat. The Board shall adopt rules to implement the
17provisions of this paragraph.
18    (h-5) Restrictions on licenses in malls. The Board shall
19not grant an application to become a licensed video gaming
20location if the Board determines that granting the application
21would more likely than not cause a terminal operator,
22individually or in combination with other terminal operators,
23licensed video gaming location, or other person or entity, to
24operate the video gaming terminals in 2 or more licensed video
25gaming locations as a single video gaming operation.
26        (1) In making determinations under this subsection



10000SB3387sam001- 34 -LRB100 19071 SMS 38007 a

1    (h-5), factors to be considered by the Board shall include,
2    but not be limited to, the following:
3            (A) the physical aspects of the location;
4            (B) the ownership, control, or management of the
5        location;
6            (C) any arrangements, understandings, or
7        agreements, written or otherwise, among or involving
8        any persons or entities that involve the conducting of
9        any video gaming business or the sharing of costs or
10        revenues; and
11            (D) the manner in which any terminal operator or
12        other related entity markets, advertises, or otherwise
13        describes any location or locations to any other person
14        or entity or to the public.
15        (2) The Board shall presume, subject to rebuttal, that
16    the granting of an application to become a licensed video
17    gaming location within a mall will cause a terminal
18    operator, individually or in combination with other
19    persons or entities, to operate the video gaming terminals
20    in 2 or more licensed video gaming locations as a single
21    video gaming operation if the Board determines that
22    granting the license would create a local concentration of
23    licensed video gaming locations.
24    For the purposes of this subsection (h-5):
25    "Mall" means a building, or adjoining or connected
26buildings, containing 4 or more separate locations.



10000SB3387sam001- 35 -LRB100 19071 SMS 38007 a

1    "Video gaming operation" means the conducting of video
2gaming and all related activities.
3    "Location" means a space within a mall containing a
4separate business, a place for a separate business, or a place
5subject to a separate leasing arrangement by the mall owner.
6    "Licensed video gaming location" means a licensed
7establishment, licensed fraternal establishment, licensed
8veterans establishment, or licensed truck stop.
9    "Local concentration of licensed video gaming locations"
10means that the combined number of licensed video gaming
11locations within a mall exceed half of the separate locations
12within the mall.
13    (i) Undue economic concentration. In addition to
14considering all other requirements under this Act, in deciding
15whether to approve the operation of video gaming terminals by a
16terminal operator in a location, the Board shall consider the
17impact of any economic concentration of such operation of video
18gaming terminals. The Board shall not allow a terminal operator
19to operate video gaming terminals if the Board determines such
20operation will result in undue economic concentration. For
21purposes of this Section, "undue economic concentration" means
22that a terminal operator would have such actual or potential
23influence over video gaming terminals in Illinois as to:
24        (1) substantially impede or suppress competition among
25    terminal operators;
26        (2) adversely impact the economic stability of the



10000SB3387sam001- 36 -LRB100 19071 SMS 38007 a

1    video gaming industry in Illinois; or
2        (3) negatively impact the purposes of the Video Gaming
3    Act.
4    The Board shall adopt rules concerning undue economic
5concentration with respect to the operation of video gaming
6terminals in Illinois. The rules shall include, but not be
7limited to, (i) limitations on the number of video gaming
8terminals operated by any terminal operator within a defined
9geographic radius and (ii) guidelines on the discontinuation of
10operation of any such video gaming terminals the Board
11determines will cause undue economic concentration.
12    (j) The provisions of the Illinois Antitrust Act are fully
13and equally applicable to the activities of any licensee under
14this Act.
15(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,
16eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
17    (230 ILCS 40/45)
18    Sec. 45. Issuance of license.
19    (a) The burden is upon each applicant to demonstrate his
20suitability for licensure. Each video gaming terminal
21manufacturer, distributor, supplier, operator, handler,
22licensed establishment, licensed truck stop establishment,
23licensed fraternal establishment, and licensed veterans
24establishment shall be licensed by the Board. The Board may
25issue or deny a license under this Act to any person pursuant



10000SB3387sam001- 37 -LRB100 19071 SMS 38007 a

1to the same criteria set forth in Section 9 of the Riverboat
2Gambling Act.
3    (a-5) The Board shall not grant a license to a person who
4has facilitated, enabled, or participated in the use of
5coin-operated devices for gambling purposes or who is under the
6significant influence or control of such a person. For the
7purposes of this Act, "facilitated, enabled, or participated in
8the use of coin-operated amusement devices for gambling
9purposes" means that the person has been convicted of any
10violation of Article 28 of the Criminal Code of 1961 or the
11Criminal Code of 2012. If there is pending legal action against
12a person for any such violation, then the Board shall delay the
13licensure of that person until the legal action is resolved.
14    (b) Each person seeking and possessing a license as a video
15gaming terminal manufacturer, distributor, supplier, operator,
16handler, licensed establishment, licensed truck stop
17establishment, licensed fraternal establishment, or licensed
18veterans establishment shall submit to a background
19investigation conducted by the Board with the assistance of the
20State Police or other law enforcement. To the extent that the
21corporate structure of the applicant allows, the background
22investigation shall include any or all of the following as the
23Board deems appropriate or as provided by rule for each
24category of licensure: (i) each beneficiary of a trust, (ii)
25each partner of a partnership, (iii) each member of a limited
26liability company, (iv) each director and officer of a publicly



10000SB3387sam001- 38 -LRB100 19071 SMS 38007 a

1or non-publicly held corporation, (v) each stockholder of a
2non-publicly held corporation, (vi) each stockholder of 5% or
3more of a publicly held corporation, or (vii) each stockholder
4of 5% or more in a parent or subsidiary corporation.
5    (c) 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 disclose the identity of every
10person, association, trust, corporation, or limited liability
11company having a greater than 1% direct or indirect pecuniary
12interest in the video gaming terminal operation for which the
13license is sought. If the disclosed entity is a trust, the
14application shall disclose the names and addresses of the
15beneficiaries; if a corporation, the names and addresses of all
16stockholders and directors; if a limited liability company, the
17names and addresses of all members; or if a partnership, the
18names and addresses of all partners, both general and limited.
19    (d) No person may be licensed as a video gaming terminal
20manufacturer, distributor, supplier, operator, handler,
21licensed establishment, licensed truck stop establishment,
22licensed fraternal establishment, or licensed veterans
23establishment if that person has been found by the Board to:
24        (1) have a background, including a criminal record,
25    reputation, habits, social or business associations, or
26    prior activities that pose a threat to the public interests



10000SB3387sam001- 39 -LRB100 19071 SMS 38007 a

1    of the State or to the security and integrity of video
2    gaming;
3        (2) create or enhance the dangers of unsuitable,
4    unfair, or illegal practices, methods, and activities in
5    the conduct of video gaming; or
6        (3) present questionable business practices and
7    financial arrangements incidental to the conduct of video
8    gaming activities.
9    (e) Any applicant for any license under this Act has the
10burden of proving his or her qualifications to the satisfaction
11of the Board. The Board may adopt rules to establish additional
12qualifications and requirements to preserve the integrity and
13security of video gaming in this State.
14    (f) A non-refundable application fee shall be paid at the
15time an application for a license is filed with the Board in
16the following amounts:
17        (1) Manufacturer..........................$5,000
18        (2) Distributor...........................$5,000
19        (3) Terminal operator.....................$5,000
20        (4) Supplier..............................$2,500
21        (5) Technician..............................$100
22        (6) Terminal Handler.....................$100 $50
23        (7) Licensed establishment, licensed truck stop
24    establishment, licensed fraternal establishment,
25    or licensed veterans establishment...................$100
26    (g) The Board shall establish an annual fee for each



10000SB3387sam001- 40 -LRB100 19071 SMS 38007 a

1license not to exceed the following:
2        (1) Manufacturer.........................$10,000
3        (2) Distributor..........................$10,000
4        (3) Terminal operator.....................$5,000
5        (4) Supplier..............................$2,000
6        (5) Technician..............................$100
7        (6) Licensed establishment, licensed truck stop
8    establishment, licensed fraternal establishment,
9    or licensed veterans establishment..............$100
10        (7) Video gaming terminal...................$100
11        (8) Terminal Handler.........................$100 $50
12    (h) A terminal operator and a licensed establishment,
13licensed truck stop establishment, licensed fraternal
14establishment, or licensed veterans establishment shall
15equally split the fees specified in item (7) of subsection (g).
16(Source: P.A. 97-1150, eff. 1-25-13; 98-31, eff. 6-24-13;
1798-587, eff. 8-27-13; 98-756, eff. 7-16-14.)
18    (230 ILCS 40/80)
19    Sec. 80. Applicability of Illinois Riverboat Gambling Act.
20The provisions of the Illinois Riverboat Gambling Act, and all
21rules promulgated thereunder, shall apply to the Video Gaming
22Act, except where there is a conflict between the 2 Acts. All
23current supplier licensees under the Riverboat Gambling Act
24shall be entitled to licensure under the Video Gaming Act as
25manufacturers, distributors, or suppliers without additional



10000SB3387sam001- 41 -LRB100 19071 SMS 38007 a

1Board investigation or approval, except by vote of the Board;
2however, they are required to pay application and annual fees
3under this Act. All provisions of the Uniform Penalty and
4Interest Act shall apply, as far as practicable, to the subject
5matter of this Act to the same extent as if such provisions
6were included herein.
7(Source: P.A. 96-37, eff. 7-13-09.)".