Sen. John J. Cullerton

Filed: 3/16/2011

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 17

2    AMENDMENT NO. ______. Amend Senate Bill 17 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Riverboat Gambling Act is amended by
5changing Sections 5, 13, and 17 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
23Board.
24    (8) The Board shall employ such personnel as may be
25necessary to carry out its functions and shall determine the
26salaries of all personnel, except those personnel whose

 

 

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

 

 

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1    Board in writing within 5 days after service of notice of
2    the action of the Board. Notice of the action of the Board
3    shall be served either by personal delivery or by certified
4    mail, postage prepaid, to the aggrieved party. Notice
5    served by certified mail shall be deemed complete on the
6    business day following the date of such mailing. The Board
7    shall conduct all requested hearings promptly and in
8    reasonable order;
9        (2) To conduct all hearings pertaining to civil
10    violations of this Act or rules and regulations promulgated
11    hereunder;
12        (3) To promulgate such rules and regulations as in its
13    judgment may be necessary to protect or enhance the
14    credibility and integrity of gambling operations
15    authorized by this Act and the regulatory process
16    hereunder;
17        (4) To provide for the establishment and collection of
18    all license and registration fees and taxes imposed by this
19    Act and the rules and regulations issued pursuant hereto.
20    All such fees and taxes shall be deposited into the State
21    Gaming Fund;
22        (5) To provide for the levy and collection of penalties
23    and fines for the violation of provisions of this Act and
24    the rules and regulations promulgated hereunder. All such
25    fines and penalties shall be deposited into the Education
26    Assistance Fund, created by Public Act 86-0018, of the

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    Board determines that the cause for suspension has been
2    abated. The Board may revoke the owners license upon a
3    determination that the owner has not made satisfactory
4    progress toward abating the hazard.
5        (12) To eject or exclude or authorize the ejection or
6    exclusion of, any person from riverboat gambling
7    facilities where such person is in violation of this Act,
8    rules and regulations thereunder, or final orders of the
9    Board, or where such person's conduct or reputation is such
10    that his presence within the riverboat gambling facilities
11    may, in the opinion of the Board, call into question the
12    honesty and integrity of the gambling operations or
13    interfere with orderly conduct thereof; provided that the
14    propriety of such ejection or exclusion is subject to
15    subsequent hearing by the Board.
16        (13) To require all licensees of gambling operations to
17    utilize a cashless wagering system whereby all players'
18    money is converted to tokens, electronic cards, or chips
19    which shall be used only for wagering in the gambling
20    establishment.
21        (14) (Blank).
22        (15) To suspend, revoke or restrict licenses, to
23    require the removal of a licensee or an employee of a
24    licensee for a violation of this Act or a Board rule or for
25    engaging in a fraudulent practice, and to impose civil
26    penalties of up to $5,000 against individuals and up to

 

 

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

 

 

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

 

 

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

 

 

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1contains a unique identifying number. No other badge shall be
2authorized by the Board.
3(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09;
496-1000, eff. 7-2-10; 96-1392, eff. 1-1-11.)
 
5    (230 ILCS 10/13)  (from Ch. 120, par. 2413)
6    Sec. 13. Wagering tax; rate; distribution.
7    (a) Until January 1, 1998, a tax is imposed on the adjusted
8gross receipts received from gambling games authorized under
9this Act at the rate of 20%.
10    (a-1) From January 1, 1998 until July 1, 2002, a privilege
11tax is imposed on persons engaged in the business of conducting
12riverboat gambling operations, based on the adjusted gross
13receipts received by a licensed owner from gambling games
14authorized under this Act at the following rates:
15        15% of annual adjusted gross receipts up to and
16    including $25,000,000;
17        20% of annual adjusted gross receipts in excess of
18    $25,000,000 but not exceeding $50,000,000;
19        25% of annual adjusted gross receipts in excess of
20    $50,000,000 but not exceeding $75,000,000;
21        30% of annual adjusted gross receipts in excess of
22    $75,000,000 but not exceeding $100,000,000;
23        35% of annual adjusted gross receipts in excess of
24    $100,000,000.
25    (a-2) From July 1, 2002 until July 1, 2003, a privilege tax

 

 

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1is imposed on persons engaged in the business of conducting
2riverboat gambling operations, other than licensed managers
3conducting riverboat gambling operations on behalf of the
4State, based on the adjusted gross receipts received by a
5licensed owner from gambling games authorized under this Act at
6the following rates:
7        15% of annual adjusted gross receipts up to and
8    including $25,000,000;
9        22.5% of annual adjusted gross receipts in excess of
10    $25,000,000 but not exceeding $50,000,000;
11        27.5% of annual adjusted gross receipts in excess of
12    $50,000,000 but not exceeding $75,000,000;
13        32.5% of annual adjusted gross receipts in excess of
14    $75,000,000 but not exceeding $100,000,000;
15        37.5% of annual adjusted gross receipts in excess of
16    $100,000,000 but not exceeding $150,000,000;
17        45% of annual adjusted gross receipts in excess of
18    $150,000,000 but not exceeding $200,000,000;
19        50% of annual adjusted gross receipts in excess of
20    $200,000,000.
21    (a-3) Beginning July 1, 2003, a privilege tax is imposed on
22persons engaged in the business of conducting riverboat
23gambling operations, other than licensed managers conducting
24riverboat gambling operations on behalf of the State, based on
25the adjusted gross receipts received by a licensed owner from
26gambling games authorized under this Act at the following

 

 

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1rates:
2        15% of annual adjusted gross receipts up to and
3    including $25,000,000;
4        27.5% of annual adjusted gross receipts in excess of
5    $25,000,000 but not exceeding $37,500,000;
6        32.5% of annual adjusted gross receipts in excess of
7    $37,500,000 but not exceeding $50,000,000;
8        37.5% of annual adjusted gross receipts in excess of
9    $50,000,000 but not exceeding $75,000,000;
10        45% of annual adjusted gross receipts in excess of
11    $75,000,000 but not exceeding $100,000,000;
12        50% of annual adjusted gross receipts in excess of
13    $100,000,000 but not exceeding $250,000,000;
14        70% of annual adjusted gross receipts in excess of
15    $250,000,000.
16    An amount equal to the amount of wagering taxes collected
17under this subsection (a-3) that are in addition to the amount
18of wagering taxes that would have been collected if the
19wagering tax rates under subsection (a-2) were in effect shall
20be paid into the Common School Fund.
21    The privilege tax imposed under this subsection (a-3) shall
22no longer be imposed beginning on the earlier of (i) July 1,
232005; (ii) the first date after June 20, 2003 that riverboat
24gambling operations are conducted pursuant to a dormant
25license; or (iii) the first day that riverboat gambling
26operations are conducted under the authority of an owners

 

 

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1license that is in addition to the 10 owners licenses initially
2authorized under this Act. For the purposes of this subsection
3(a-3), the term "dormant license" means an owners license that
4is authorized by this Act under which no riverboat gambling
5operations are being conducted on June 20, 2003.
6    (a-4) Beginning on the first day on which the tax imposed
7under subsection (a-3) is no longer imposed, a privilege tax is
8imposed on persons engaged in the business of conducting
9riverboat gambling operations, other than licensed managers
10conducting riverboat gambling operations on behalf of the
11State, based on the adjusted gross receipts received by a
12licensed owner from gambling games authorized under this Act at
13the following rates:
14        15% of annual adjusted gross receipts up to and
15    including $25,000,000;
16        22.5% of annual adjusted gross receipts in excess of
17    $25,000,000 but not exceeding $50,000,000;
18        27.5% of annual adjusted gross receipts in excess of
19    $50,000,000 but not exceeding $75,000,000;
20        32.5% of annual adjusted gross receipts in excess of
21    $75,000,000 but not exceeding $100,000,000;
22        37.5% of annual adjusted gross receipts in excess of
23    $100,000,000 but not exceeding $150,000,000;
24        45% of annual adjusted gross receipts in excess of
25    $150,000,000 but not exceeding $200,000,000;
26        50% of annual adjusted gross receipts in excess of

 

 

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1    $200,000,000.
2    (a-8) Riverboat gambling operations conducted by a
3licensed manager on behalf of the State are not subject to the
4tax imposed under this Section.
5    (a-10) The taxes imposed by this Section shall be paid by
6the licensed owner to the Board not later than 5:00 o'clock
7p.m. of the day after the day when the wagers were made.
8    (a-15) If the privilege tax imposed under subsection (a-3)
9is no longer imposed pursuant to item (i) of the last paragraph
10of subsection (a-3), then by June 15 of each year, each owners
11licensee, other than an owners licensee that admitted 1,000,000
12persons or fewer in calendar year 2004, must, in addition to
13the payment of all amounts otherwise due under this Section,
14pay to the Board a reconciliation payment in the amount, if
15any, by which the licensed owner's base amount exceeds the
16amount of net privilege tax paid by the licensed owner to the
17Board in the then current State fiscal year. A licensed owner's
18net privilege tax obligation due for the balance of the State
19fiscal year shall be reduced up to the total of the amount paid
20by the licensed owner in its June 15 reconciliation payment.
21The obligation imposed by this subsection (a-15) is binding on
22any person, firm, corporation, or other entity that acquires an
23ownership interest in any such owners license. The obligation
24imposed under this subsection (a-15) terminates on the earliest
25of: (i) July 1, 2007, (ii) the first day after the effective
26date of this amendatory Act of the 94th General Assembly that

 

 

09700SB0017sam001- 21 -LRB097 04905 ASK 53161 a

1riverboat gambling operations are conducted pursuant to a
2dormant license, (iii) the first day that riverboat gambling
3operations are conducted under the authority of an owners
4license that is in addition to the 10 owners licenses initially
5authorized under this Act, or (iv) the first day that a
6licensee under the Illinois Horse Racing Act of 1975 conducts
7gaming operations with slot machines or other electronic gaming
8devices. The Board must reduce the obligation imposed under
9this subsection (a-15) by an amount the Board deems reasonable
10for any of the following reasons: (A) an act or acts of God,
11(B) an act of bioterrorism or terrorism or a bioterrorism or
12terrorism threat that was investigated by a law enforcement
13agency, or (C) a condition beyond the control of the owners
14licensee that does not result from any act or omission by the
15owners licensee or any of its agents and that poses a hazardous
16threat to the health and safety of patrons. If an owners
17licensee pays an amount in excess of its liability under this
18Section, the Board shall apply the overpayment to future
19payments required under this Section.
20    For purposes of this subsection (a-15):
21    "Act of God" means an incident caused by the operation of
22an extraordinary force that cannot be foreseen, that cannot be
23avoided by the exercise of due care, and for which no person
24can be held liable.
25    "Base amount" means the following:
26        For a riverboat in Alton, $31,000,000.

 

 

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1        For a riverboat in East Peoria, $43,000,000.
2        For the Empress riverboat in Joliet, $86,000,000.
3        For a riverboat in Metropolis, $45,000,000.
4        For the Harrah's riverboat in Joliet, $114,000,000.
5        For a riverboat in Aurora, $86,000,000.
6        For a riverboat in East St. Louis, $48,500,000.
7        For a riverboat in Elgin, $198,000,000.
8    "Dormant license" has the meaning ascribed to it in
9subsection (a-3).
10    "Net privilege tax" means all privilege taxes paid by a
11licensed owner to the Board under this Section, less all
12payments made from the State Gaming Fund pursuant to subsection
13(b) of this Section.
14    The changes made to this subsection (a-15) by Public Act
1594-839 are intended to restate and clarify the intent of Public
16Act 94-673 with respect to the amount of the payments required
17to be made under this subsection by an owners licensee to the
18Board.
19    (b) Until January 1, 1998, 25% of the tax revenue deposited
20in the State Gaming Fund under this Section shall be paid,
21subject to appropriation by the General Assembly, to the unit
22of local government which is designated as the home dock of the
23riverboat. Beginning January 1, 1998, from the tax revenue
24deposited in the State Gaming Fund under this Section, an
25amount equal to 5% of adjusted gross receipts generated by a
26riverboat shall be paid monthly, subject to appropriation by

 

 

09700SB0017sam001- 23 -LRB097 04905 ASK 53161 a

1the General Assembly, to the unit of local government that is
2designated as the home dock of the riverboat. From the tax
3revenue deposited in the State Gaming Fund pursuant to
4riverboat gambling operations conducted by a licensed manager
5on behalf of the State, an amount equal to 5% of adjusted gross
6receipts generated pursuant to those riverboat gambling
7operations shall be paid monthly, subject to appropriation by
8the General Assembly, to the unit of local government that is
9designated as the home dock of the riverboat upon which those
10riverboat gambling operations are conducted.
11    (c) Appropriations, as approved by the General Assembly,
12may be made from the State Gaming Fund to the Board (i) for the
13administration and enforcement of this Act and the Video Gaming
14Act, (ii) for distribution to the Department of State Police
15and to the Department of Revenue for the enforcement of this
16Act, and (iii) to the Department of Human Services for the
17administration of programs to treat problem gambling.
18    (c-5) Before May 26, 2006 (the effective date of Public Act
1994-804) and beginning on the effective date of this amendatory
20Act of the 95th General Assembly, unless any organization
21licensee under the Illinois Horse Racing Act of 1975 begins to
22operate a slot machine or video game of chance under the
23Illinois Horse Racing Act of 1975 or this Act, after the
24payments required under subsections (b) and (c) have been made,
25an amount equal to 15% of the adjusted gross receipts of (1) an
26owners licensee that relocates pursuant to Section 11.2, (2) an

 

 

09700SB0017sam001- 24 -LRB097 04905 ASK 53161 a

1owners licensee conducting riverboat gambling operations
2pursuant to an owners license that is initially issued after
3June 25, 1999, or (3) the first riverboat gambling operations
4conducted by a licensed manager on behalf of the State under
5Section 7.3, whichever comes first, shall be paid from the
6State Gaming Fund into the Horse Racing Equity Fund.
7    (c-10) Each year the General Assembly shall appropriate
8from the General Revenue Fund to the Education Assistance Fund
9an amount equal to the amount paid into the Horse Racing Equity
10Fund pursuant to subsection (c-5) in the prior calendar year.
11    (c-15) After the payments required under subsections (b),
12(c), and (c-5) have been made, an amount equal to 2% of the
13adjusted gross receipts of (1) an owners licensee that
14relocates pursuant to Section 11.2, (2) an owners licensee
15conducting riverboat gambling operations pursuant to an owners
16license that is initially issued after June 25, 1999, or (3)
17the first riverboat gambling operations conducted by a licensed
18manager on behalf of the State under Section 7.3, whichever
19comes first, shall be paid, subject to appropriation from the
20General Assembly, from the State Gaming Fund to each home rule
21county with a population of over 3,000,000 inhabitants for the
22purpose of enhancing the county's criminal justice system.
23    (c-20) Each year the General Assembly shall appropriate
24from the General Revenue Fund to the Education Assistance Fund
25an amount equal to the amount paid to each home rule county
26with a population of over 3,000,000 inhabitants pursuant to

 

 

09700SB0017sam001- 25 -LRB097 04905 ASK 53161 a

1subsection (c-15) in the prior calendar year.
2    (c-25) After the payments required under subsections (b),
3(c), (c-5) and (c-15) have been made, an amount equal to 2% of
4the adjusted gross receipts of (1) an owners licensee that
5relocates pursuant to Section 11.2, (2) an owners licensee
6conducting riverboat gambling operations pursuant to an owners
7license that is initially issued after June 25, 1999, or (3)
8the first riverboat gambling operations conducted by a licensed
9manager on behalf of the State under Section 7.3, whichever
10comes first, shall be paid from the State Gaming Fund to
11Chicago State University.
12    (d) From time to time, the Board shall transfer the
13remainder of the funds generated by this Act into the Education
14Assistance Fund, created by Public Act 86-0018, of the State of
15Illinois.
16    (e) Nothing in this Act shall prohibit the unit of local
17government designated as the home dock of the riverboat from
18entering into agreements with other units of local government
19in this State or in other states to share its portion of the
20tax revenue.
21    (f) To the extent practicable, the Board shall administer
22and collect the wagering taxes imposed by this Section in a
23manner consistent with the provisions of Sections 4, 5, 5a, 5b,
245c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the
25Retailers' Occupation Tax Act and Section 3-7 of the Uniform
26Penalty and Interest Act.

 

 

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1(Source: P.A. 95-331, eff. 8-21-07; 95-1008, eff. 12-15-08;
296-37, eff. 7-13-09; 96-1392, eff. 1-1-11.)
 
3    (230 ILCS 10/17)  (from Ch. 120, par. 2417)
4    Sec. 17. Administrative Procedures. The Illinois
5Administrative Procedure Act shall apply to all administrative
6rules and procedures of the Board under this Act or the Video
7Gaming Act, except that: (1) subsection (b) of Section 5-10 of
8the Illinois Administrative Procedure Act does not apply to
9final orders, decisions and opinions of the Board; (2)
10subsection (a) of Section 5-10 of the Illinois Administrative
11Procedure Act does not apply to forms established by the Board
12for use under this Act or the Video Gaming Act; (3) the
13provisions of Section 10-45 of the Illinois Administrative
14Procedure Act regarding proposals for decision are excluded
15under this Act or the Video Gaming Act; and (4) the provisions
16of subsection (d) of Section 10-65 of the Illinois
17Administrative Procedure Act do not apply so as to prevent
18summary suspension of any license pending revocation or other
19action, which suspension shall remain in effect unless modified
20by the Board or unless the Board's decision is reversed on the
21merits upon judicial review.
22(Source: P.A. 96-34, eff. 7-13-09.)
 
23    Section 10. The Criminal Code of 1961 is amended by
24changing Sections 28-1, 28-1.1, and 28-3 as follows:
 

 

 

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1    (720 ILCS 5/28-1)  (from Ch. 38, par. 28-1)
2    Sec. 28-1. Gambling.
3    (a) A person commits gambling when he:
4        (1) Plays a game of chance or skill for money or other
5    thing of value, unless excepted in subsection (b) of this
6    Section; or
7        (2) Makes a wager upon the result of any game, contest,
8    or any political nomination, appointment or election; or
9        (3) Operates, keeps, owns, uses, purchases, exhibits,
10    rents, sells, bargains for the sale or lease of,
11    manufactures or distributes any gambling device; or
12        (4) Contracts to have or give himself or another the
13    option to buy or sell, or contracts to buy or sell, at a
14    future time, any grain or other commodity whatsoever, or
15    any stock or security of any company, where it is at the
16    time of making such contract intended by both parties
17    thereto that the contract to buy or sell, or the option,
18    whenever exercised, or the contract resulting therefrom,
19    shall be settled, not by the receipt or delivery of such
20    property, but by the payment only of differences in prices
21    thereof; however, the issuance, purchase, sale, exercise,
22    endorsement or guarantee, by or through a person registered
23    with the Secretary of State pursuant to Section 8 of the
24    Illinois Securities Law of 1953, or by or through a person
25    exempt from such registration under said Section 8, of a

 

 

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1    put, call, or other option to buy or sell securities which
2    have been registered with the Secretary of State or which
3    are exempt from such registration under Section 3 of the
4    Illinois Securities Law of 1953 is not gambling within the
5    meaning of this paragraph (4); or
6        (5) Knowingly owns or possesses any book, instrument or
7    apparatus by means of which bets or wagers have been, or
8    are, recorded or registered, or knowingly possesses any
9    money which he has received in the course of a bet or
10    wager; or
11        (6) Sells pools upon the result of any game or contest
12    of skill or chance, political nomination, appointment or
13    election; or
14        (7) Sets up or promotes any lottery or sells, offers to
15    sell or transfers any ticket or share for any lottery; or
16        (8) Sets up or promotes any policy game or sells,
17    offers to sell or knowingly possesses or transfers any
18    policy ticket, slip, record, document or other similar
19    device; or
20        (9) Knowingly drafts, prints or publishes any lottery
21    ticket or share, or any policy ticket, slip, record,
22    document or similar device, except for such activity
23    related to lotteries, bingo games and raffles authorized by
24    and conducted in accordance with the laws of Illinois or
25    any other state or foreign government; or
26        (10) Knowingly advertises any lottery or policy game,

 

 

09700SB0017sam001- 29 -LRB097 04905 ASK 53161 a

1    except for such activity related to lotteries, bingo games
2    and raffles authorized by and conducted in accordance with
3    the laws of Illinois or any other state; or
4        (11) Knowingly transmits information as to wagers,
5    betting odds, or changes in betting odds by telephone,
6    telegraph, radio, semaphore or similar means; or knowingly
7    installs or maintains equipment for the transmission or
8    receipt of such information; except that nothing in this
9    subdivision (11) prohibits transmission or receipt of such
10    information for use in news reporting of sporting events or
11    contests; or
12        (12) Knowingly establishes, maintains, or operates an
13    Internet site that permits a person to play a game of
14    chance or skill for money or other thing of value by means
15    of the Internet or to make a wager upon the result of any
16    game, contest, political nomination, appointment, or
17    election by means of the Internet. This item (12) does not
18    apply to activities referenced in items (6) and (6.1) of
19    subsection (b) of this Section.
20    (b) Participants in any of the following activities shall
21not be convicted of gambling therefor:
22        (1) Agreements to compensate for loss caused by the
23    happening of chance including without limitation contracts
24    of indemnity or guaranty and life or health or accident
25    insurance.
26        (2) Offers of prizes, award or compensation to the

 

 

09700SB0017sam001- 30 -LRB097 04905 ASK 53161 a

1    actual contestants in any bona fide contest for the
2    determination of skill, speed, strength or endurance or to
3    the owners of animals or vehicles entered in such contest.
4        (3) Pari-mutuel betting as authorized by the law of
5    this State.
6        (4) Manufacture of gambling devices, including the
7    acquisition of essential parts therefor and the assembly
8    thereof, for transportation in interstate or foreign
9    commerce to any place outside this State when such
10    transportation is not prohibited by any applicable Federal
11    law; or the manufacture, distribution, or possession of
12    video gaming terminals, as defined in the Video Gaming Act,
13    by manufacturers, distributors, and terminal operators
14    licensed to do so under the Video Gaming Act.
15        (5) The game commonly known as "bingo", when conducted
16    in accordance with the Bingo License and Tax Act.
17        (6) Lotteries when conducted by the State of Illinois
18    in accordance with the Illinois Lottery Law. This exemption
19    includes any activity conducted by the Department of
20    Revenue to sell lottery tickets pursuant to the provisions
21    of the Illinois Lottery Law and its rules.
22        (6.1) The purchase of lottery tickets through the
23    Internet for a lottery conducted by the State of Illinois
24    under the program established in Section 7.12 of the
25    Illinois Lottery Law.
26        (7) Possession of an antique slot machine that is

 

 

09700SB0017sam001- 31 -LRB097 04905 ASK 53161 a

1    neither used nor intended to be used in the operation or
2    promotion of any unlawful gambling activity or enterprise.
3    For the purpose of this subparagraph (b)(7), an antique
4    slot machine is one manufactured 25 years ago or earlier.
5        (8) Raffles when conducted in accordance with the
6    Raffles Act.
7        (9) Charitable games when conducted in accordance with
8    the Charitable Games Act.
9        (10) Pull tabs and jar games when conducted under the
10    Illinois Pull Tabs and Jar Games Act.
11        (11) Gambling games conducted on riverboats when
12    authorized by the Riverboat Gambling Act.
13        (12) (Blank) Video gaming terminal games at a licensed
14    establishment, licensed truck stop establishment, licensed
15    fraternal establishment, or licensed veterans
16    establishment when conducted in accordance with the Video
17    Gaming Act.
18        (13) Games of skill or chance where money or other
19    things of value can be won but no payment or purchase is
20    required to participate.
21    (c) Sentence.
22    Gambling under subsection (a)(1) or (a)(2) of this Section
23is a Class A misdemeanor. Gambling under any of subsections
24(a)(3) through (a)(11) of this Section is a Class A
25misdemeanor. A second or subsequent conviction under any of
26subsections (a)(3) through (a)(11), is a Class 4 felony.

 

 

09700SB0017sam001- 32 -LRB097 04905 ASK 53161 a

1Gambling under subsection (a)(12) of this Section is a Class A
2misdemeanor. A second or subsequent conviction under
3subsection (a)(12) is a Class 4 felony.
4    (d) Circumstantial evidence.
5    In prosecutions under subsection (a)(1) through (a)(12) of
6this Section circumstantial evidence shall have the same
7validity and weight as in any criminal prosecution.
8(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09;
996-1203, eff. 7-22-10.)
 
10    (720 ILCS 5/28-1.1)   (from Ch. 38, par. 28-1.1)
11    Sec. 28-1.1. Syndicated gambling.
12    (a) Declaration of Purpose. Recognizing the close
13relationship between professional gambling and other organized
14crime, it is declared to be the policy of the legislature to
15restrain persons from engaging in the business of gambling for
16profit in this State. This Section shall be liberally construed
17and administered with a view to carrying out this policy.
18    (b) A person commits syndicated gambling when he operates a
19"policy game" or engages in the business of bookmaking.
20    (c) A person "operates a policy game" when he knowingly
21uses any premises or property for the purpose of receiving or
22knowingly does receive from what is commonly called "policy":
23        (1) money from a person other than the better or player
24    whose bets or plays are represented by such money; or
25        (2) written "policy game" records, made or used over

 

 

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1    any period of time, from a person other than the better or
2    player whose bets or plays are represented by such written
3    record.
4    (d) A person engages in bookmaking when he receives or
5accepts more than five bets or wagers upon the result of any
6trials or contests of skill, speed or power of endurance or
7upon any lot, chance, casualty, unknown or contingent event
8whatsoever, which bets or wagers shall be of such size that the
9total of the amounts of money paid or promised to be paid to
10such bookmaker on account thereof shall exceed $2,000.
11Bookmaking is the receiving or accepting of such bets or wagers
12regardless of the form or manner in which the bookmaker records
13them.
14    (e) Participants in any of the following activities shall
15not be convicted of syndicated gambling:
16        (1) Agreements to compensate for loss caused by the
17    happening of chance including without limitation contracts
18    of indemnity or guaranty and life or health or accident
19    insurance; and
20        (2) Offers of prizes, award or compensation to the
21    actual contestants in any bona fide contest for the
22    determination of skill, speed, strength or endurance or to
23    the owners of animals or vehicles entered in such contest;
24    and
25        (3) Pari-mutuel betting as authorized by law of this
26    State; and

 

 

09700SB0017sam001- 34 -LRB097 04905 ASK 53161 a

1        (4) Manufacture of gambling devices, including the
2    acquisition of essential parts therefor and the assembly
3    thereof, for transportation in interstate or foreign
4    commerce to any place outside this State when such
5    transportation is not prohibited by any applicable Federal
6    law; and
7        (5) Raffles when conducted in accordance with the
8    Raffles Act; and
9        (6) Gambling games conducted on riverboats when
10    authorized by the Riverboat Gambling Act; and
11        (7) (Blank) Video gaming terminal games at a licensed
12    establishment, licensed truck stop establishment, licensed
13    fraternal establishment, or licensed veterans
14    establishment when conducted in accordance with the Video
15    Gaming Act.
16    (f) Sentence. Syndicated gambling is a Class 3 felony.
17(Source: P.A. 96-34, eff. 7-13-09.)
 
18    (720 ILCS 5/28-3)   (from Ch. 38, par. 28-3)
19    Sec. 28-3. Keeping a Gambling Place. A "gambling place" is
20any real estate, vehicle, boat or any other property whatsoever
21used for the purposes of gambling other than gambling conducted
22in the manner authorized by the Riverboat Gambling Act or the
23Video Gaming Act. Any person who knowingly permits any premises
24or property owned or occupied by him or under his control to be
25used as a gambling place commits a Class A misdemeanor. Each

 

 

09700SB0017sam001- 35 -LRB097 04905 ASK 53161 a

1subsequent offense is a Class 4 felony. When any premises is
2determined by the circuit court to be a gambling place:
3    (a) Such premises is a public nuisance and may be proceeded
4against as such, and
5    (b) All licenses, permits or certificates issued by the
6State of Illinois or any subdivision or public agency thereof
7authorizing the serving of food or liquor on such premises
8shall be void; and no license, permit or certificate so
9cancelled shall be reissued for such premises for a period of
1060 days thereafter; nor shall any person convicted of keeping a
11gambling place be reissued such license for one year from his
12conviction and, after a second conviction of keeping a gambling
13place, any such person shall not be reissued such license, and
14    (c) Such premises of any person who knowingly permits
15thereon a violation of any Section of this Article shall be
16held liable for, and may be sold to pay any unsatisfied
17judgment that may be recovered and any unsatisfied fine that
18may be levied under any Section of this Article.
19(Source: P.A. 96-34, eff. 7-13-09.)
 
20    (30 ILCS 105/5.724 rep.)
21    Section 70. The State Finance Act is amended by repealing
22Section 5.724.
 
23    (230 ILCS 10/24 rep.)
24    Section 80. The Riverboat Gambling Act is amended by

 

 

09700SB0017sam001- 36 -LRB097 04905 ASK 53161 a

1repealing Section 24.
 
2    (230 ILCS 40/Act rep.)
3    Section 90. The Video Gaming Act is repealed.
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.".