Illinois General Assembly - Full Text of SB0516
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Full Text of SB0516  101st General Assembly

SB0516enr 101ST GENERAL ASSEMBLY



 


 
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1    AN ACT concerning gaming.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Gambling Act is amended by changing
5Sections 7, 7.7, and 13 as follows:
 
6    (230 ILCS 10/7)  (from Ch. 120, par. 2407)
7    Sec. 7. Owners licenses.
8    (a) The Board shall issue owners licenses to persons or
9entities that apply for such licenses upon payment to the Board
10of the non-refundable license fee as provided in subsection (e)
11or (e-5) and upon a determination by the Board that the
12applicant is eligible for an owners license pursuant to this
13Act and the rules of the Board. From the effective date of this
14amendatory Act of the 95th General Assembly until (i) 3 years
15after the effective date of this amendatory Act of the 95th
16General Assembly, (ii) the date any organization licensee
17begins to operate a slot machine or video game of chance under
18the Illinois Horse Racing Act of 1975 or this Act, (iii) the
19date that payments begin under subsection (c-5) of Section 13
20of this the Act, (iv) the wagering tax imposed under Section 13
21of this Act is increased by law to reflect a tax rate that is at
22least as stringent or more stringent than the tax rate
23contained in subsection (a-3) of Section 13, or (v) when an

 

 

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

 

 

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

 

 

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1        indirectly, such applicant;
2        (2) the facilities or proposed facilities for the
3    conduct of gambling;
4        (3) the highest prospective total revenue to be derived
5    by the State from the conduct of gambling;
6        (4) the extent to which the ownership of the applicant
7    reflects the diversity of the State by including minority
8    persons, women, and persons with a disability and the good
9    faith affirmative action plan of each applicant to recruit,
10    train and upgrade minority persons, women, and persons with
11    a disability in all employment classifications; the Board
12    shall further consider granting an owners license and
13    giving preference to an applicant under this Section to
14    applicants in which minority persons and women hold
15    ownership interest of at least 16% and 4%, respectively.
16        (4.5) the extent to which the ownership of the
17    applicant includes veterans of service in the armed forces
18    of the United States, and the good faith affirmative action
19    plan of each applicant to recruit, train, and upgrade
20    veterans of service in the armed forces of the United
21    States in all employment classifications;
22        (5) the financial ability of the applicant to purchase
23    and maintain adequate liability and casualty insurance;
24        (6) whether the applicant has adequate capitalization
25    to provide and maintain, for the duration of a license, a
26    riverboat or casino;

 

 

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1        (7) the extent to which the applicant exceeds or meets
2    other standards for the issuance of an owners license which
3    the Board may adopt by rule;
4        (8) the amount of the applicant's license bid;
5        (9) the extent to which the applicant or the proposed
6    host municipality plans to enter into revenue sharing
7    agreements with communities other than the host
8    municipality; and
9        (10) the extent to which the ownership of an applicant
10    includes the most qualified number of minority persons,
11    women, and persons with a disability.
12    (c) Each owners license shall specify the place where the
13casino shall operate or the riverboat shall operate and dock.
14    (d) Each applicant shall submit with his or her
15application, on forms provided by the Board, 2 sets of his or
16her fingerprints.
17    (e) In addition to any licenses authorized under subsection
18(e-5) of this Section, the Board may issue up to 10 licenses
19authorizing the holders of such licenses to own riverboats. In
20the application for an owners license, the applicant shall
21state the dock at which the riverboat is based and the water on
22which the riverboat will be located. The Board shall issue 5
23licenses to become effective not earlier than January 1, 1991.
24Three of such licenses shall authorize riverboat gambling on
25the Mississippi River, or, with approval by the municipality in
26which the riverboat was docked on August 7, 2003 and with Board

 

 

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1approval, be authorized to relocate to a new location, in a
2municipality that (1) borders on the Mississippi River or is
3within 5 miles of the city limits of a municipality that
4borders on the Mississippi River and (2), on August 7, 2003,
5had a riverboat conducting riverboat gambling operations
6pursuant to a license issued under this Act; one of which shall
7authorize riverboat gambling from a home dock in the city of
8East St. Louis; and one of which shall authorize riverboat
9gambling from a home dock in the City of Alton. One other
10license shall authorize riverboat gambling on the Illinois
11River in the City of East Peoria or, with Board approval, shall
12authorize land-based gambling operations anywhere within the
13corporate limits of the City of Peoria. The Board shall issue
14one additional license to become effective not earlier than
15March 1, 1992, which shall authorize riverboat gambling on the
16Des Plaines River in Will County. The Board may issue 4
17additional licenses to become effective not earlier than March
181, 1992. In determining the water upon which riverboats will
19operate, the Board shall consider the economic benefit which
20riverboat gambling confers on the State, and shall seek to
21assure that all regions of the State share in the economic
22benefits of riverboat gambling.
23    In granting all licenses, the Board may give favorable
24consideration to economically depressed areas of the State, to
25applicants presenting plans which provide for significant
26economic development over a large geographic area, and to

 

 

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1applicants who currently operate non-gambling riverboats in
2Illinois. The Board shall review all applications for owners
3licenses, and shall inform each applicant of the Board's
4decision. The Board may grant an owners license to an applicant
5that has not submitted the highest license bid, but if it does
6not select the highest bidder, the Board shall issue a written
7decision explaining why another applicant was selected and
8identifying the factors set forth in this Section that favored
9the winning bidder. The fee for issuance or renewal of a
10license pursuant to this subsection (e) shall be $250,000.
11    (e-5) In addition to licenses authorized under subsection
12(e) of this Section:
13        (1) the Board may issue one owners license authorizing
14    the conduct of casino gambling in the City of Chicago;
15        (2) the Board may issue one owners license authorizing
16    the conduct of riverboat gambling in the City of Danville;
17        (3) the Board may issue one owners license authorizing
18    the conduct of riverboat gambling located in the City of
19    Waukegan;
20        (4) the Board may issue one owners license authorizing
21    the conduct of riverboat gambling in the City of Rockford;
22        (5) the Board may issue one owners license authorizing
23    the conduct of riverboat gambling in a municipality that is
24    wholly or partially located in one of the following
25    townships of Cook County: Bloom, Bremen, Calumet, Rich,
26    Thornton, or Worth Township; and

 

 

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1        (6) the Board may issue one owners license authorizing
2    the conduct of riverboat gambling in the unincorporated
3    area of Williamson County adjacent to the Big Muddy River.
4    Except for the license authorized under paragraph (1), each
5application for a license pursuant to this subsection (e-5)
6shall be submitted to the Board no later than 120 days after
7June 28, 2019 (the effective date of Public Act 101-31) this
8amendatory Act of the 101st General Assembly. All applications
9for a license under this subsection (e-5) shall include the
10nonrefundable application fee and the nonrefundable background
11investigation fee as provided in subsection (d) of Section 6 of
12this Act. In the event that an applicant submits an application
13for a license pursuant to this subsection (e-5) prior to June
1428, 2019 (the effective date of Public Act 101-31) this
15amendatory Act of the 101st General Assembly, such applicant
16shall submit the nonrefundable application fee and background
17investigation fee as provided in subsection (d) of Section 6 of
18this Act no later than 6 months after June 28, 2019 (the
19effective date of Public Act 101-31) this amendatory Act of the
20101st General Assembly.
21    The Board shall consider issuing a license pursuant to
22paragraphs (1) through (6) of this subsection only after the
23corporate authority of the municipality or the county board of
24the county in which the riverboat or casino shall be located
25has certified to the Board the following:
26        (i) that the applicant has negotiated with the

 

 

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1    corporate authority or county board in good faith;
2        (ii) that the applicant and the corporate authority or
3    county board have mutually agreed on the permanent location
4    of the riverboat or casino;
5        (iii) that the applicant and the corporate authority or
6    county board have mutually agreed on the temporary location
7    of the riverboat or casino;
8        (iv) that the applicant and the corporate authority or
9    the county board have mutually agreed on the percentage of
10    revenues that will be shared with the municipality or
11    county, if any;
12        (v) that the applicant and the corporate authority or
13    county board have mutually agreed on any zoning, licensing,
14    public health, or other issues that are within the
15    jurisdiction of the municipality or county; and
16        (vi) that the corporate authority or county board has
17    passed a resolution or ordinance in support of the
18    riverboat or casino in the municipality or county; .
19        (vii) the applicant for a license under paragraph (1)
20    has made a public presentation concerning its casino
21    proposal; and
22        (viii) the applicant for a license under paragraph (1)
23    has prepared a summary of its casino proposal and such
24    summary has been posted on a public website of the
25    municipality or the county.
26    At least 7 days before the corporate authority of a

 

 

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1municipality or county board of the county submits a
2certification to the Board concerning items (i) through (viii)
3(vi) of this subsection, it shall hold a public hearing to
4discuss items (i) through (viii) (vi), as well as any other
5details concerning the proposed riverboat or casino in the
6municipality or county. The corporate authority or county board
7must subsequently memorialize the details concerning the
8proposed riverboat or casino in a resolution that must be
9adopted by a majority of the corporate authority or county
10board before any certification is sent to the Board. The Board
11shall not alter, amend, change, or otherwise interfere with any
12agreement between the applicant and the corporate authority of
13the municipality or county board of the county regarding the
14location of any temporary or permanent facility.
15    In addition, within 10 days after June 28, 2019 (the
16effective date of Public Act 101-31) this amendatory Act of the
17101st General Assembly, the Board, with consent and at the
18expense of the City of Chicago, shall select and retain the
19services of a nationally recognized casino gaming feasibility
20consultant. Within 45 days after June 28, 2019 (the effective
21date of Public Act 101-31) this amendatory Act of the 101st
22General Assembly, the consultant shall prepare and deliver to
23the Board a study concerning the feasibility of, and the
24ability to finance, a casino in the City of Chicago. The
25feasibility study shall be delivered to the Mayor of the City
26of Chicago, the Governor, the President of the Senate, and the

 

 

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1Speaker of the House of Representatives. Ninety days after
2receipt of the feasibility study, the Board shall make a
3determination, based on the results of the feasibility study,
4whether to recommend to the General Assembly that the terms of
5the license under paragraph (1) of this subsection (e-5) should
6be modified. The Board may begin accepting applications for the
7owners license under paragraph (1) of this subsection (e-5)
8upon the determination to issue such an owners license.
9    In addition, prior to the Board issuing the owners license
10authorized under paragraph (4) of subsection (e-5), an impact
11study shall be completed to determine what location in the city
12will provide the greater impact to the region, including the
13creation of jobs and the generation of tax revenue.
14    (e-10) The licenses authorized under subsection (e-5) of
15this Section shall be issued within 12 months after the date
16the license application is submitted. If the Board does not
17issue the licenses within that time period, then the Board
18shall give a written explanation to the applicant as to why it
19has not reached a determination and when it reasonably expects
20to make a determination. The fee for the issuance or renewal of
21a license issued pursuant to this subsection (e-10) shall be
22$250,000. Additionally, a licensee located outside of Cook
23County shall pay a minimum initial fee of $17,500 per gaming
24position, and a licensee located in Cook County shall pay a
25minimum initial fee of $30,000 per gaming position. The initial
26fees payable under this subsection (e-10) shall be deposited

 

 

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1into the Rebuild Illinois Projects Fund. If at any point after
2June 1, 2020 there are no pending applications for a license
3under subsection (e-5) and not all licenses authorized under
4subsection (e-5) have been issued, then the Board shall reopen
5the license application process for those licenses authorized
6under subsection (e-5) that have not been issued. The Board
7shall follow the licensing process provided in subsection (e-5)
8with all time frames tied to the last date of a final order
9issued by the Board under subsection (e-5) rather than the
10effective date of the amendatory Act.
11    (e-15) Each licensee of a license authorized under
12subsection (e-5) of this Section shall make a reconciliation
13payment 3 years after the date the licensee begins operating in
14an amount equal to 75% of the adjusted gross receipts for the
15most lucrative 12-month period of operations, minus an amount
16equal to the initial payment per gaming position paid by the
17specific licensee. Each licensee shall pay a $15,000,000
18reconciliation fee upon issuance of an owners license. If this
19calculation results in a negative amount, then the licensee is
20not entitled to any reimbursement of fees previously paid. This
21reconciliation payment may be made in installments over a
22period of no more than 6 2 years, subject to Board approval.
23Any installment payments shall include an annual market
24interest rate as determined by the Board.
25    All payments by licensees under this subsection (e-15)
26shall be deposited into the Rebuild Illinois Projects Fund.

 

 

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1    (e-20) In addition to any other revocation powers granted
2to the Board under this Act, the Board may revoke the owners
3license of a licensee which fails to begin conducting gambling
4within 15 months of receipt of the Board's approval of the
5application if the Board determines that license revocation is
6in the best interests 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 3
15year period, all licenses are renewable annually upon payment
16of the fee 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, except for an owners license issued
22under subsection (e-5) of this Section, shall entitle the
23licensee to own up to 2 riverboats.
24    An owners licensee of a casino or riverboat that is located
25in the City of Chicago pursuant to paragraph (1) of subsection
26(e-5) of this Section shall limit the number of gaming

 

 

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1positions to 4,000 for such owner. An owners licensee
2authorized under subsection (e) or paragraph (2), (3), (4), or
3(5) of subsection (e-5) of this Section shall limit the number
4of gaming positions to 2,000 for any such owners license. An
5owners licensee authorized under paragraph (6) of subsection
6(e-5) of this Section shall limit the number of gaming
7positions to 1,200 for such owner. The initial fee for each
8gaming position obtained on or after June 28, 2019 (the
9effective date of Public Act 101-31) this amendatory Act of the
10101st General Assembly shall be a minimum of $17,500 for
11licensees not located in Cook County and a minimum of $30,000
12for licensees located in Cook County, in addition to the
13reconciliation payment, as set forth in subsection (e-15) of
14this Section. The fees under this subsection (h) shall be
15deposited into the Rebuild Illinois Projects Fund. The fees
16under this subsection (h) that are paid by an owners licensee
17authorized under subsection (e) shall be paid by July 1, 2021
182020.
19    Each owners licensee under subsection (e) of this Section
20shall reserve its gaming positions within 30 days after June
2128, 2019 (the effective date of Public Act 101-31) this
22amendatory Act of the 101st General Assembly. The Board may
23grant an extension to this 30-day period, provided that the
24owners licensee submits a written request and explanation as to
25why it is unable to reserve its positions within the 30-day
26period.

 

 

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1    Each owners licensee under subsection (e-5) of this Section
2shall reserve its gaming positions within 30 days after
3issuance of its owners license. The Board may grant an
4extension to this 30-day period, provided that the owners
5licensee submits a written request and explanation as to why it
6is unable to reserve its positions within the 30-day period.
7    A licensee may operate both of its riverboats concurrently,
8provided that the total number of gaming positions on both
9riverboats does not exceed the limit established pursuant to
10this subsection. Riverboats licensed to operate on the
11Mississippi River and the Illinois River south of Marshall
12County shall have an authorized capacity of at least 500
13persons. Any other riverboat licensed under this Act shall have
14an authorized capacity of at least 400 persons.
15    (h-5) An owners licensee who conducted gambling operations
16prior to January 1, 2012 and obtains positions pursuant to
17Public Act 101-31 this amendatory Act of the 101st General
18Assembly shall make a reconciliation payment 3 years after any
19additional gaming positions begin operating in an amount equal
20to 75% of the owners licensee's average gross receipts for the
21most lucrative 12-month period of operations minus an amount
22equal to the initial fee that the owners licensee paid per
23additional gaming position. For purposes of this subsection
24(h-5), "average gross receipts" means (i) the increase in
25adjusted gross receipts for the most lucrative 12-month period
26of operations over the adjusted gross receipts for 2019,

 

 

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1multiplied by (ii) the percentage derived by dividing the
2number of additional gaming positions that an owners licensee
3had obtained by the total number of gaming positions operated
4by the owners licensee. If this calculation results in a
5negative amount, then the owners licensee is not entitled to
6any reimbursement of fees previously paid. This reconciliation
7payment may be made in installments over a period of no more
8than 6 2 years, subject to Board approval. Any installment
9payments shall include an annual market interest rate as
10determined by the Board. These reconciliation payments shall be
11deposited into the Rebuild Illinois Projects Fund.
12    (i) A licensed owner is authorized to apply to the Board
13for and, if approved therefor, to receive all licenses from the
14Board necessary for the operation of a riverboat or casino,
15including a liquor license, a license to prepare and serve food
16for human consumption, and other necessary licenses. All use,
17occupation, and excise taxes which apply to the sale of food
18and beverages in this State and all taxes imposed on the sale
19or use of tangible personal property apply to such sales aboard
20the riverboat or in the casino.
21    (j) The Board may issue or re-issue a license authorizing a
22riverboat to dock in a municipality or approve a relocation
23under Section 11.2 only if, prior to the issuance or
24re-issuance of the license or approval, the governing body of
25the municipality in which the riverboat will dock has by a
26majority vote approved the docking of riverboats in the

 

 

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1municipality. The Board may issue or re-issue a license
2authorizing a riverboat to dock in areas of a county outside
3any municipality or approve a relocation under Section 11.2
4only if, prior to the issuance or re-issuance of the license or
5approval, the governing body of the county has by a majority
6vote approved of the docking of riverboats within such areas.
7    (k) An owners licensee may conduct land-based gambling
8operations upon approval by the Board and payment of a fee of
9$250,000, which shall be deposited into the State Gaming Fund.
10    (l) An owners licensee may conduct gaming at a temporary
11facility pending the construction of a permanent facility or
12the remodeling or relocation of an existing facility to
13accommodate gaming participants for up to 24 months after the
14temporary facility begins to conduct gaming. Upon request by an
15owners licensee and upon a showing of good cause by the owners
16licensee, the Board shall extend the period during which the
17licensee may conduct gaming at a temporary facility by up to 12
18months. The Board shall make rules concerning the conduct of
19gaming from temporary facilities.
20(Source: P.A. 100-391, eff. 8-25-17; 100-1152, eff. 12-14-18;
21101-31, eff. 6-28-19; revised 9-20-19.)
 
22    (230 ILCS 10/7.7)
23    Sec. 7.7. Organization gaming licenses.
24    (a) The Illinois Gaming Board shall award one organization
25gaming license to each person or entity having operating

 

 

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1control of a racetrack that applies under Section 56 of the
2Illinois Horse Racing Act of 1975, subject to the application
3and eligibility requirements of this Section. Within 60 days
4after the effective date of this amendatory Act of the 101st
5General Assembly, a person or entity having operating control
6of a racetrack may submit an application for an organization
7gaming license. The application shall be made on such forms as
8provided by the Board and shall contain such information as the
9Board prescribes, including, but not limited to, the identity
10of any racetrack at which gaming will be conducted pursuant to
11an organization gaming license, detailed information regarding
12the ownership and management of the applicant, and detailed
13personal information regarding the applicant. The application
14shall specify the number of gaming positions the applicant
15intends to use and the place where the organization gaming
16facility will operate. A person who knowingly makes a false
17statement on an application is guilty of a Class A misdemeanor.
18    Each applicant shall disclose the identity of every person
19or entity having a direct or indirect pecuniary interest
20greater than 1% in any racetrack with respect to which the
21license is sought. If the disclosed entity is a corporation,
22the applicant shall disclose the names and addresses of all
23officers, stockholders, and directors. If the disclosed entity
24is a limited liability company, the applicant shall disclose
25the names and addresses of all members and managers. If the
26disclosed entity is a partnership, the applicant shall disclose

 

 

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1the names and addresses of all partners, both general and
2limited. If the disclosed entity is a trust, the applicant
3shall disclose the names and addresses of all beneficiaries.
4    An application shall be filed and considered in accordance
5with the rules of the Board. Each application for an
6organization gaming license shall include a nonrefundable
7application fee of $250,000. In addition, a nonrefundable fee
8of $50,000 shall be paid at the time of filing to defray the
9costs associated with background investigations conducted by
10the Board. If the costs of the background investigation exceed
11$50,000, the applicant shall pay the additional amount to the
12Board within 7 days after a request by the Board. If the costs
13of the investigation are less than $50,000, the applicant shall
14receive a refund of the remaining amount. All information,
15records, interviews, reports, statements, memoranda, or other
16data supplied to or used by the Board in the course of this
17review or investigation of an applicant for an organization
18gaming license under this Act shall be privileged and strictly
19confidential and shall be used only for the purpose of
20evaluating an applicant for an organization gaming license or a
21renewal. Such information, records, interviews, reports,
22statements, memoranda, or other data shall not be admissible as
23evidence nor discoverable in any action of any kind in any
24court or before any tribunal, board, agency or person, except
25for any action deemed necessary by the Board. The application
26fee shall be deposited into the State Gaming Fund.

 

 

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1    Any applicant or key person, including the applicant's
2owners, officers, directors (if a corporation), managers and
3members (if a limited liability company), and partners (if a
4partnership), for an organization gaming license shall have his
5or her fingerprints submitted to the Department of State Police
6in an electronic format that complies with the form and manner
7for requesting and furnishing criminal history record
8information as prescribed by the Department of State Police.
9These fingerprints shall be checked against the Department of
10State Police and Federal Bureau of Investigation criminal
11history record databases now and hereafter filed, including,
12but not limited to, civil, criminal, and latent fingerprint
13databases. The Department of State Police shall charge
14applicants a fee for conducting the criminal history records
15check, which shall be deposited into the State Police Services
16Fund and shall not exceed the actual cost of the records check.
17The Department of State Police shall furnish, pursuant to
18positive identification, records of Illinois criminal history
19to the Department.
20    (b) The Board shall determine within 120 days after
21receiving an application for an organization gaming license
22whether to grant an organization gaming license to the
23applicant. If the Board does not make a determination within
24that time period, then the Board shall give a written
25explanation to the applicant as to why it has not reached a
26determination and when it reasonably expects to make a

 

 

SB0516 Enrolled- 21 -LRB101 04277 SMS 49285 b

1determination.
2    The organization gaming licensee shall purchase up to the
3amount of gaming positions authorized under this Act within 120
4days after receiving its organization gaming license. If an
5organization gaming licensee is prepared to purchase the gaming
6positions, but is temporarily prohibited from doing so by order
7of a court of competent jurisdiction or the Board, then the
8120-day period is tolled until a resolution is reached.
9    An organization gaming license shall authorize its holder
10to conduct gaming under this Act at its racetracks on the same
11days of the year and hours of the day that owners licenses are
12allowed to operate under approval of the Board.
13    An organization gaming license and any renewal of an
14organization gaming license shall authorize gaming pursuant to
15this Section for a period of 4 years. The fee for the issuance
16or renewal of an organization gaming license shall be $250,000.
17    All payments by licensees under this subsection (b) shall
18be deposited into the Rebuild Illinois Projects Fund.
19    (c) To be eligible to conduct gaming under this Section, a
20person or entity having operating control of a racetrack must
21(i) obtain an organization gaming license, (ii) hold an
22organization license under the Illinois Horse Racing Act of
231975, (iii) hold an inter-track wagering license, (iv) pay an
24initial fee of $30,000 per gaming position from organization
25gaming licensees where gaming is conducted in Cook County and,
26except as provided in subsection (c-5), $17,500 for

 

 

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1organization gaming licensees where gaming is conducted
2outside of Cook County before beginning to conduct gaming plus
3make the reconciliation payment required under subsection (k),
4(v) conduct live racing in accordance with subsections (e-1),
5(e-2), and (e-3) of Section 20 of the Illinois Horse Racing Act
6of 1975, (vi) meet the requirements of subsection (a) of
7Section 56 of the Illinois Horse Racing Act of 1975, (vii) for
8organization licensees conducting standardbred race meetings,
9keep backstretch barns and dormitories open and operational
10year-round unless a lesser schedule is mutually agreed to by
11the organization licensee and the horsemen association racing
12at that organization licensee's race meeting, (viii) for
13organization licensees conducting thoroughbred race meetings,
14the organization licensee must maintain accident medical
15expense liability insurance coverage of $1,000,000 for
16jockeys, and (ix) meet all other requirements of this Act that
17apply to owners licensees.
18    An organization gaming licensee may enter into a joint
19venture with a licensed owner to own, manage, conduct, or
20otherwise operate the organization gaming licensee's
21organization gaming facilities, unless the organization gaming
22licensee has a parent company or other affiliated company that
23is, directly or indirectly, wholly owned by a parent company
24that is also licensed to conduct organization gaming, casino
25gaming, or their equivalent in another state.
26    All payments by licensees under this subsection (c) shall

 

 

SB0516 Enrolled- 23 -LRB101 04277 SMS 49285 b

1be deposited into the Rebuild Illinois Projects Fund.
2    (c-5) A person or entity having operating control of a
3racetrack located in Madison County shall only pay the initial
4fees specified in subsection (c) for 540 of the gaming
5positions authorized under the license.
6    (d) A person or entity is ineligible to receive an
7organization gaming license if:
8        (1) the person or entity has been convicted of a felony
9    under the laws of this State, any other state, or the
10    United States, including a conviction under the Racketeer
11    Influenced and Corrupt Organizations Act;
12        (2) the person or entity has been convicted of any
13    violation of Article 28 of the Criminal Code of 2012, or
14    substantially similar laws of any other jurisdiction;
15        (3) the person or entity has submitted an application
16    for a license under this Act that contains false
17    information;
18        (4) the person is a member of the Board;
19        (5) a person defined in (1), (2), (3), or (4) of this
20    subsection (d) is an officer, director, or managerial
21    employee of the entity;
22        (6) the person or entity employs a person defined in
23    (1), (2), (3), or (4) of this subsection (d) who
24    participates in the management or operation of gambling
25    operations authorized under this Act; or
26        (7) a license of the person or entity issued under this

 

 

SB0516 Enrolled- 24 -LRB101 04277 SMS 49285 b

1    Act or a license to own or operate gambling facilities in
2    any other jurisdiction has been revoked.
3    (e) The Board may approve gaming positions pursuant to an
4organization gaming license statewide as provided in this
5Section. The authority to operate gaming positions under this
6Section shall be allocated as follows: up to 1,200 gaming
7positions for any organization gaming licensee in Cook County
8and up to 900 gaming positions for any organization gaming
9licensee outside of Cook County.
10    (f) Each applicant for an organization gaming license shall
11specify in its application for licensure the number of gaming
12positions it will operate, up to the applicable limitation set
13forth in subsection (e) of this Section. Any unreserved gaming
14positions that are not specified shall be forfeited and
15retained by the Board. For the purposes of this subsection (f),
16an organization gaming licensee that did not conduct live
17racing in 2010 and is located within 3 miles of the Mississippi
18River may reserve up to 900 positions and shall not be
19penalized under this Section for not operating those positions
20until it meets the requirements of subsection (e) of this
21Section, but such licensee shall not request unreserved gaming
22positions under this subsection (f) until its 900 positions are
23all operational.
24    Thereafter, the Board shall publish the number of
25unreserved gaming positions and shall accept requests for
26additional positions from any organization gaming licensee

 

 

SB0516 Enrolled- 25 -LRB101 04277 SMS 49285 b

1that initially reserved all of the positions that were offered.
2The Board shall allocate expeditiously the unreserved gaming
3positions to requesting organization gaming licensees in a
4manner that maximizes revenue to the State. The Board may
5allocate any such unused gaming positions pursuant to an open
6and competitive bidding process, as provided under Section 7.5
7of this Act. This process shall continue until all unreserved
8gaming positions have been purchased. All positions obtained
9pursuant to this process and all positions the organization
10gaming licensee specified it would operate in its application
11must be in operation within 18 months after they were obtained
12or the organization gaming licensee forfeits the right to
13operate those positions, but is not entitled to a refund of any
14fees paid. The Board may, after holding a public hearing, grant
15extensions so long as the organization gaming licensee is
16working in good faith to make the positions operational. The
17extension may be for a period of 6 months. If, after the period
18of the extension, the organization gaming licensee has not made
19the positions operational, then another public hearing must be
20held by the Board before it may grant another extension.
21    Unreserved gaming positions retained from and allocated to
22organization gaming licensees by the Board pursuant to this
23subsection (f) shall not be allocated to owners licensees under
24this Act.
25    For the purpose of this subsection (f), the unreserved
26gaming positions for each organization gaming licensee shall be

 

 

SB0516 Enrolled- 26 -LRB101 04277 SMS 49285 b

1the applicable limitation set forth in subsection (e) of this
2Section, less the number of reserved gaming positions by such
3organization gaming licensee, and the total unreserved gaming
4positions shall be the aggregate of the unreserved gaming
5positions for all organization gaming licensees.
6    (g) An organization gaming licensee is authorized to
7conduct the following at a racetrack:
8        (1) slot machine gambling;
9        (2) video game of chance gambling;
10        (3) gambling with electronic gambling games as defined
11    in this Act or defined by the Illinois Gaming Board; and
12        (4) table games.
13    (h) Subject to the approval of the Illinois Gaming Board,
14an organization gaming licensee may make modification or
15additions to any existing buildings and structures to comply
16with the requirements of this Act. The Illinois Gaming Board
17shall make its decision after consulting with the Illinois
18Racing Board. In no case, however, shall the Illinois Gaming
19Board approve any modification or addition that alters the
20grounds of the organization licensee such that the act of live
21racing is an ancillary activity to gaming authorized under this
22Section. Gaming authorized under this Section may take place in
23existing structures where inter-track wagering is conducted at
24the racetrack or a facility within 300 yards of the racetrack
25in accordance with the provisions of this Act and the Illinois
26Horse Racing Act of 1975.

 

 

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1    (i) An organization gaming licensee may conduct gaming at a
2temporary facility pending the construction of a permanent
3facility or the remodeling or relocation of an existing
4facility to accommodate gaming participants for up to 24 months
5after the temporary facility begins to conduct gaming
6authorized under this Section. Upon request by an organization
7gaming licensee and upon a showing of good cause by the
8organization gaming licensee, the Board shall extend the period
9during which the licensee may conduct gaming authorized under
10this Section at a temporary facility by up to 12 months. The
11Board shall make rules concerning the conduct of gaming
12authorized under this Section from temporary facilities.
13    The gaming authorized under this Section may take place in
14existing structures where inter-track wagering is conducted at
15the racetrack or a facility within 300 yards of the racetrack
16in accordance with the provisions of this Act and the Illinois
17Horse Racing Act of 1975.
18    (i-5) Under no circumstances shall an organization gaming
19licensee conduct gaming at any State or county fair.
20    (j) The Illinois Gaming Board must adopt emergency rules in
21accordance with Section 5-45 of the Illinois Administrative
22Procedure Act as necessary to ensure compliance with the
23provisions of this amendatory Act of the 101st General Assembly
24concerning the conduct of gaming by an organization gaming
25licensee. The adoption of emergency rules authorized by this
26subsection (j) shall be deemed to be necessary for the public

 

 

SB0516 Enrolled- 28 -LRB101 04277 SMS 49285 b

1interest, safety, and welfare.
2    (k) Each organization gaming licensee who obtains gaming
3positions must make a reconciliation payment 3 years after the
4date the organization gaming licensee begins operating the
5positions in an amount equal to 75% of the difference between
6its adjusted gross receipts from gaming authorized under this
7Section and amounts paid to its purse accounts pursuant to item
8(1) of subsection (b) of Section 56 of the Illinois Horse
9Racing Act of 1975 for the 12-month period for which such
10difference was the largest, minus an amount equal to the
11initial per position fee paid by the organization gaming
12licensee. If this calculation results in a negative amount,
13then the organization gaming licensee is not entitled to any
14reimbursement of fees previously paid. This reconciliation
15payment may be made in installments over a period of no more
16than 6 2 years, subject to Board approval. Any installment
17payments shall include an annual market interest rate as
18determined by the Board.
19    All payments by licensees under this subsection (k) shall
20be deposited into the Rebuild Illinois Projects Fund.
21    (l) As soon as practical after a request is made by the
22Illinois Gaming Board, to minimize duplicate submissions by the
23applicant, the Illinois Racing Board must provide information
24on an applicant for an organization gaming license to the
25Illinois Gaming Board.
26(Source: P.A. 101-31, eff. 6-28-19; 101-597, eff. 12-6-19.)
 

 

 

SB0516 Enrolled- 29 -LRB101 04277 SMS 49285 b

1    (230 ILCS 10/13)  (from Ch. 120, par. 2413)
2    Sec. 13. Wagering tax; rate; distribution.
3    (a) Until January 1, 1998, a tax is imposed on the adjusted
4gross receipts received from gambling games authorized under
5this Act at the rate of 20%.
6    (a-1) From January 1, 1998 until July 1, 2002, a privilege
7tax is imposed on persons engaged in the business of conducting
8riverboat gambling operations, based on the adjusted gross
9receipts received by a licensed owner from gambling games
10authorized under this Act at the following rates:
11        15% of annual adjusted gross receipts up to and
12    including $25,000,000;
13        20% of annual adjusted gross receipts in excess of
14    $25,000,000 but not exceeding $50,000,000;
15        25% of annual adjusted gross receipts in excess of
16    $50,000,000 but not exceeding $75,000,000;
17        30% of annual adjusted gross receipts in excess of
18    $75,000,000 but not exceeding $100,000,000;
19        35% of annual adjusted gross receipts in excess of
20    $100,000,000.
21    (a-2) From July 1, 2002 until July 1, 2003, a privilege tax
22is imposed on persons engaged in the business of conducting
23riverboat gambling operations, other than licensed managers
24conducting riverboat gambling operations on behalf of the
25State, based on the adjusted gross receipts received by a

 

 

SB0516 Enrolled- 30 -LRB101 04277 SMS 49285 b

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

 

 

SB0516 Enrolled- 31 -LRB101 04277 SMS 49285 b

1    $25,000,000 but not exceeding $37,500,000;
2        32.5% of annual adjusted gross receipts in excess of
3    $37,500,000 but not exceeding $50,000,000;
4        37.5% of annual adjusted gross receipts in excess of
5    $50,000,000 but not exceeding $75,000,000;
6        45% of annual adjusted gross receipts in excess of
7    $75,000,000 but not exceeding $100,000,000;
8        50% of annual adjusted gross receipts in excess of
9    $100,000,000 but not exceeding $250,000,000;
10        70% of annual adjusted gross receipts in excess of
11    $250,000,000.
12    An amount equal to the amount of wagering taxes collected
13under this subsection (a-3) that are in addition to the amount
14of wagering taxes that would have been collected if the
15wagering tax rates under subsection (a-2) were in effect shall
16be paid into the Common School Fund.
17    The privilege tax imposed under this subsection (a-3) shall
18no longer be imposed beginning on the earlier of (i) July 1,
192005; (ii) the first date after June 20, 2003 that riverboat
20gambling operations are conducted pursuant to a dormant
21license; or (iii) the first day that riverboat gambling
22operations are conducted under the authority of an owners
23license that is in addition to the 10 owners licenses initially
24authorized under this Act. For the purposes of this subsection
25(a-3), the term "dormant license" means an owners license that
26is authorized by this Act under which no riverboat gambling

 

 

SB0516 Enrolled- 32 -LRB101 04277 SMS 49285 b

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

 

 

SB0516 Enrolled- 33 -LRB101 04277 SMS 49285 b

1Section 56 of the Illinois Horse Racing Act of 1975 shall not
2be included in the determination of adjusted gross receipts.
3    (a-5)(1) Beginning on July 1, 2020 the first day that an
4owners licensee under paragraph (1), (2), (3), (4), (5), or (6)
5of subsection (e-5) of Section 7 conducts gambling operations,
6either in a temporary facility or a permanent facility, a
7privilege tax is imposed on persons engaged in the business of
8conducting gambling operations, other than the owners licensee
9under paragraph (1) of subsection (e-5) of Section 7 and
10licensed managers conducting riverboat gambling operations on
11behalf of the State, based on the adjusted gross receipts
12received by such licensee from the gambling games authorized
13under this Act. The privilege tax for all gambling games other
14than table games, including, but not limited to, slot machines,
15video game of chance gambling, and electronic gambling games
16shall be at the following rates:
17        15% of annual adjusted gross receipts up to and
18    including $25,000,000;
19        22.5% of annual adjusted gross receipts in excess of
20    $25,000,000 but not exceeding $50,000,000;
21        27.5% of annual adjusted gross receipts in excess of
22    $50,000,000 but not exceeding $75,000,000;
23        32.5% of annual adjusted gross receipts in excess of
24    $75,000,000 but not exceeding $100,000,000;
25        37.5% of annual adjusted gross receipts in excess of
26    $100,000,000 but not exceeding $150,000,000;

 

 

SB0516 Enrolled- 34 -LRB101 04277 SMS 49285 b

1        45% of annual adjusted gross receipts in excess of
2    $150,000,000 but not exceeding $200,000,000;
3        50% of annual adjusted gross receipts in excess of
4    $200,000,000.
5    The privilege tax for table games shall be at the following
6rates:
7        15% of annual adjusted gross receipts up to and
8    including $25,000,000;
9        20% of annual adjusted gross receipts in excess of
10    $25,000,000.
11    For the imposition of the privilege tax in this subsection
12(a-5), amounts paid pursuant to item (1) of subsection (b) of
13Section 56 of the Illinois Horse Racing Act of 1975 shall not
14be included in the determination of adjusted gross receipts.
15    (2) Beginning on the first day that an owners licensee
16under paragraph (1) of subsection (e-5) of Section 7 conducts
17gambling operations, either in a temporary facility or a
18permanent facility, a privilege tax is imposed on persons
19engaged in the business of conducting gambling operations under
20paragraph (1) of subsection (e-5) of Section 7, other than
21licensed managers conducting riverboat gambling operations on
22behalf of the State, based on the adjusted gross receipts
23received by such licensee from the gambling games authorized
24under this Act. The privilege tax for all gambling games other
25than table games, including, but not limited to, slot machines,
26video game of chance gambling, and electronic gambling games

 

 

SB0516 Enrolled- 35 -LRB101 04277 SMS 49285 b

1shall be at the following rates:
2        12% of annual adjusted gross receipts up to and
3    including $25,000,000 to the State and 10.5% of annual
4    adjusted gross receipts up to and including $25,000,000 to
5    the City of Chicago;
6        16% of annual adjusted gross receipts in excess of
7    $25,000,000 but not exceeding $50,000,000 to the State and
8    14% of annual adjusted gross receipts in excess of
9    $25,000,000 but not exceeding $50,000,000 to the City of
10    Chicago;
11        20.1% of annual adjusted gross receipts in excess of
12    $50,000,000 but not exceeding $75,000,000 to the State and
13    17.4% of annual adjusted gross receipts in excess of
14    $50,000,000 but not exceeding $75,000,000 to the City of
15    Chicago;
16        21.4% of annual adjusted gross receipts in excess of
17    $75,000,000 but not exceeding $100,000,000 to the State and
18    18.6% of annual adjusted gross receipts in excess of
19    $75,000,000 but not exceeding $100,000,000 to the City of
20    Chicago;
21        22.7% of annual adjusted gross receipts in excess of
22    $100,000,000 but not exceeding $150,000,000 to the State
23    and 19.8% of annual adjusted gross receipts in excess of
24    $100,000,000 but not exceeding $150,000,000 to the City of
25    Chicago;
26        24.1% of annual adjusted gross receipts in excess of

 

 

SB0516 Enrolled- 36 -LRB101 04277 SMS 49285 b

1    $150,000,000 but not exceeding $225,000,000 to the State
2    and 20.9% of annual adjusted gross receipts in excess of
3    $150,000,000 but not exceeding $225,000,000 to the City of
4    Chicago;
5        26.8% of annual adjusted gross receipts in excess of
6    $225,000,000 but not exceeding $1,000,000,000 to the State
7    and 23.2% of annual adjusted gross receipts in excess of
8    $225,000,000 but not exceeding $1,000,000,000 to the City
9    of Chicago;
10        40% of annual adjusted gross receipts in excess of
11    $1,000,000,000 to the State and 34.7% of annual gross
12    receipts in excess of $1,000,000,000 to the City of
13    Chicago.
14    The privilege tax for table games shall be at the following
15rates:
16        8.1% of annual adjusted gross receipts up to and
17    including $25,000,000 to the State and 6.9% of annual
18    adjusted gross receipts up to and including $25,000,000 to
19    the City of Chicago;
20        10.7% of annual adjusted gross receipts in excess of
21    $25,000,000 but not exceeding $75,000,000 to the State and
22    9.3% of annual adjusted gross receipts in excess of
23    $25,000,000 but not exceeding $75,000,000 to the City of
24    Chicago;
25        11.2% of annual adjusted gross receipts in excess of
26    $75,000,000 but not exceeding $175,000,000 to the State and

 

 

SB0516 Enrolled- 37 -LRB101 04277 SMS 49285 b

1    9.8% of annual adjusted gross receipts in excess of
2    $75,000,000 but not exceeding $175,000,000 to the City of
3    Chicago;
4        13.5% of annual adjusted gross receipts in excess of
5    $175,000,000 but not exceeding $225,000,000 to the State
6    and 11.5% of annual adjusted gross receipts in excess of
7    $175,000,000 but not exceeding $225,000,000 to the City of
8    Chicago;
9        15.1% of annual adjusted gross receipts in excess of
10    $225,000,000 but not exceeding $275,000,000 to the State
11    and 12.9% of annual adjusted gross receipts in excess of
12    $225,000,000 but not exceeding $275,000,000 to the City of
13    Chicago;
14        16.2% of annual adjusted gross receipts in excess of
15    $275,000,000 but not exceeding $375,000,000 to the State
16    and 13.8% of annual adjusted gross receipts in excess of
17    $275,000,000 but not exceeding $375,000,000 to the City of
18    Chicago;
19        18.9% of annual adjusted gross receipts in excess of
20    $375,000,000 to the State and 16.1% of annual gross
21    receipts in excess of $375,000,000 to the City of Chicago.
22    For the imposition of the privilege tax in this subsection
23(a-5), amounts paid pursuant to item (1) of subsection (b) of
24Section 56 of the Illinois Horse Racing Act of 1975 shall not
25be included in the determination of adjusted gross receipts.
26    Notwithstanding the provisions of this subsection (a-5),

 

 

SB0516 Enrolled- 38 -LRB101 04277 SMS 49285 b

1for the first 10 years that the privilege tax is imposed under
2this subsection (a-5), the privilege tax shall be imposed on
3the modified annual adjusted gross receipts of a riverboat or
4casino conducting gambling operations in the City of East St.
5Louis, unless:
6        (1) the riverboat or casino fails to employ at least
7    450 people;
8        (2) the riverboat or casino fails to maintain
9    operations in a manner consistent with this Act or is not a
10    viable riverboat or casino subject to the approval of the
11    Board; or
12        (3) the owners licensee is not an entity in which
13    employees participate in an employee stock ownership plan.
14    As used in this subsection (a-5), "modified annual adjusted
15gross receipts" means:
16        (A) for calendar year 2020, the annual adjusted gross
17    receipts for the current year minus the difference between
18    an amount equal to the average annual adjusted gross
19    receipts from a riverboat or casino conducting gambling
20    operations in the City of East St. Louis for 2014, 2015,
21    2016, 2017, and 2018 and the annual adjusted gross receipts
22    for 2018;
23        (B) for calendar year 2021, the annual adjusted gross
24    receipts for the current year minus the difference between
25    an amount equal to the average annual adjusted gross
26    receipts from a riverboat or casino conducting gambling

 

 

SB0516 Enrolled- 39 -LRB101 04277 SMS 49285 b

1    operations in the City of East St. Louis for 2014, 2015,
2    2016, 2017, and 2018 and the annual adjusted gross receipts
3    for 2019; and
4        (C) for calendar years 2022 through 2029, the annual
5    adjusted gross receipts for the current year minus the
6    difference between an amount equal to the average annual
7    adjusted gross receipts from a riverboat or casino
8    conducting gambling operations in the City of East St.
9    Louis for 3 years preceding the current year and the annual
10    adjusted gross receipts for the immediately preceding
11    year.
12    (a-5.5) In addition to the privilege tax imposed under
13subsection (a-5), a privilege tax is imposed on the owners
14licensee under paragraph (1) of subsection (e-5) of Section 7
15at the rate of one-third of the owners licensee's adjusted
16gross receipts.
17    For the imposition of the privilege tax in this subsection
18(a-5.5), amounts paid pursuant to item (1) of subsection (b) of
19Section 56 of the Illinois Horse Racing Act of 1975 shall not
20be included in the determination of adjusted gross receipts.
21    (a-6) From June 28, 2019 (the effective date of Public Act
22101-31) this amendatory Act of the 101st General Assembly until
23June 30, 2023, an owners licensee that conducted gambling
24operations prior to January 1, 2011 shall receive a
25dollar-for-dollar credit against the tax imposed under this
26Section for any renovation or construction costs paid by the

 

 

SB0516 Enrolled- 40 -LRB101 04277 SMS 49285 b

1owners licensee, but in no event shall the credit exceed
2$2,000,000.
3    Additionally, from June 28, 2019 (the effective date of
4Public Act 101-31) this amendatory Act of the 101st General
5Assembly until December 31, 2022, an owners licensee that (i)
6is located within 15 miles of the Missouri border, and (ii) has
7at least 3 riverboats, casinos, or their equivalent within a
845-mile radius, may be authorized to relocate to a new location
9with the approval of both the unit of local government
10designated as the home dock and the Board, so long as the new
11location is within the same unit of local government and no
12more than 3 miles away from its original location. Such owners
13licensee shall receive a credit against the tax imposed under
14this Section equal to 8% of the total project costs, as
15approved by the Board, for any renovation or construction costs
16paid by the owners licensee for the construction of the new
17facility, provided that the new facility is operational by July
181, 2022. In determining whether or not to approve a relocation,
19the Board must consider the extent to which the relocation will
20diminish the gaming revenues received by other Illinois gaming
21facilities.
22    (a-7) Beginning in the initial adjustment year and through
23the final adjustment year, if the total obligation imposed
24pursuant to either subsection (a-5) or (a-6) will result in an
25owners licensee receiving less after-tax adjusted gross
26receipts than it received in calendar year 2018, then the total

 

 

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1amount of privilege taxes that the owners licensee is required
2to pay for that calendar year shall be reduced to the extent
3necessary so that the after-tax adjusted gross receipts in that
4calendar year equals the after-tax adjusted gross receipts in
5calendar year 2018, but the privilege tax reduction shall not
6exceed the annual adjustment cap. If pursuant to this
7subsection (a-7), the total obligation imposed pursuant to
8either subsection (a-5) or (a-6) shall be reduced, then the
9owners licensee shall not receive a refund from the State at
10the end of the subject calendar year but instead shall be able
11to apply that amount as a credit against any payments it owes
12to the State in the following calendar year to satisfy its
13total obligation under either subsection (a-5) or (a-6). The
14credit for the final adjustment year shall occur in the
15calendar year following the final adjustment year.
16    If an owners licensee that conducted gambling operations
17prior to January 1, 2019 expands its riverboat or casino,
18including, but not limited to, with respect to its gaming
19floor, additional non-gaming amenities such as restaurants,
20bars, and hotels and other additional facilities, and incurs
21construction and other costs related to such expansion from
22June 28, 2019 (the effective date of Public Act 101-31) this
23amendatory Act of the 101st General Assembly until June 28,
242024 (the 5th anniversary of the effective date of Public Act
25101-31) this amendatory Act of the 101st General Assembly, then
26for each $15,000,000 spent for any such construction or other

 

 

SB0516 Enrolled- 42 -LRB101 04277 SMS 49285 b

1costs related to expansion paid by the owners licensee, the
2final adjustment year shall be extended by one year and the
3annual adjustment cap shall increase by 0.2% of adjusted gross
4receipts during each calendar year until and including the
5final adjustment year. No further modifications to the final
6adjustment year or annual adjustment cap shall be made after
7$75,000,000 is incurred in construction or other costs related
8to expansion so that the final adjustment year shall not extend
9beyond the 9th calendar year after the initial adjustment year,
10not including the initial adjustment year, and the annual
11adjustment cap shall not exceed 4% of adjusted gross receipts
12in a particular calendar year. Construction and other costs
13related to expansion shall include all project related costs,
14including, but not limited to, all hard and soft costs,
15financing costs, on or off-site ground, road or utility work,
16cost of gaming equipment and all other personal property,
17initial fees assessed for each incremental gaming position, and
18the cost of incremental land acquired for such expansion. Soft
19costs shall include, but not be limited to, legal fees,
20architect, engineering and design costs, other consultant
21costs, insurance cost, permitting costs, and pre-opening costs
22related to the expansion, including, but not limited to, any of
23the following: marketing, real estate taxes, personnel,
24training, travel and out-of-pocket expenses, supply,
25inventory, and other costs, and any other project related soft
26costs.

 

 

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1    To be eligible for the tax credits in subsection (a-6), all
2construction contracts shall include a requirement that the
3contractor enter into a project labor agreement with the
4building and construction trades council with geographic
5jurisdiction of the location of the proposed gaming facility.
6    Notwithstanding any other provision of this subsection
7(a-7), this subsection (a-7) does not apply to an owners
8licensee unless such owners licensee spends at least
9$15,000,000 on construction and other costs related to its
10expansion, excluding the initial fees assessed for each
11incremental gaming position.
12    This subsection (a-7) does not apply to owners licensees
13authorized pursuant to subsection (e-5) of Section 7 of this
14Act.
15    For purposes of this subsection (a-7):
16    "Building and construction trades council" means any
17organization representing multiple construction entities that
18are monitoring or attentive to compliance with public or
19workers' safety laws, wage and hour requirements, or other
20statutory requirements or that are making or maintaining
21collective bargaining agreements.
22    "Initial adjustment year" means the year commencing on
23January 1 of the calendar year immediately following the
24earlier of the following:
25        (1) the commencement of gambling operations, either in
26    a temporary or permanent facility, with respect to the

 

 

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1    owners license authorized under paragraph (1) of
2    subsection (e-5) of Section 7 of this Act; or
3        (2) June 28, 2021 (24 months after the effective date
4    of Public Act 101-31); this amendatory Act of the 101st
5    General Assembly,
6provided the initial adjustment year shall not commence earlier
7than June 28, 2020 (12 months after the effective date of
8Public Act 101-31) this amendatory Act of the 101st General
9Assembly.
10    "Final adjustment year" means the 2nd calendar year after
11the initial adjustment year, not including the initial
12adjustment year, and as may be extended further as described in
13this subsection (a-7).
14    "Annual adjustment cap" means 3% of adjusted gross receipts
15in a particular calendar year, and as may be increased further
16as otherwise described in this subsection (a-7).
17    (a-8) Riverboat gambling operations conducted by a
18licensed manager on behalf of the State are not subject to the
19tax imposed under this Section.
20    (a-9) Beginning on January 1, 2020, the calculation of
21gross receipts or adjusted gross receipts, for the purposes of
22this Section, for a riverboat, a casino, or an organization
23gaming facility shall not include the dollar amount of
24non-cashable vouchers, coupons, and electronic promotions
25redeemed by wagerers upon the riverboat, in the casino, or in
26the organization gaming facility up to and including an amount

 

 

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1not to exceed 20% of a riverboat's, a casino's, or an
2organization gaming facility's adjusted gross receipts.
3    The Illinois Gaming Board shall submit to the General
4Assembly a comprehensive report no later than March 31, 2023
5detailing, at a minimum, the effect of removing non-cashable
6vouchers, coupons, and electronic promotions from this
7calculation on net gaming revenues to the State in calendar
8years 2020 through 2022, the increase or reduction in wagerers
9as a result of removing non-cashable vouchers, coupons, and
10electronic promotions from this calculation, the effect of the
11tax rates in subsection (a-5) on net gaming revenues to this
12State, and proposed modifications to the calculation.
13    (a-10) The taxes imposed by this Section shall be paid by
14the licensed owner or the organization gaming licensee to the
15Board not later than 5:00 o'clock p.m. of the day after the day
16when the wagers were made.
17    (a-15) If the privilege tax imposed under subsection (a-3)
18is no longer imposed pursuant to item (i) of the last paragraph
19of subsection (a-3), then by June 15 of each year, each owners
20licensee, other than an owners licensee that admitted 1,000,000
21persons or fewer in calendar year 2004, must, in addition to
22the payment of all amounts otherwise due under this Section,
23pay to the Board a reconciliation payment in the amount, if
24any, by which the licensed owner's base amount exceeds the
25amount of net privilege tax paid by the licensed owner to the
26Board in the then current State fiscal year. A licensed owner's

 

 

SB0516 Enrolled- 46 -LRB101 04277 SMS 49285 b

1net privilege tax obligation due for the balance of the State
2fiscal year shall be reduced up to the total of the amount paid
3by the licensed owner in its June 15 reconciliation payment.
4The obligation imposed by this subsection (a-15) is binding on
5any person, firm, corporation, or other entity that acquires an
6ownership interest in any such owners license. The obligation
7imposed under this subsection (a-15) terminates on the earliest
8of: (i) July 1, 2007, (ii) the first day after the effective
9date of this amendatory Act of the 94th General Assembly that
10riverboat gambling operations are conducted pursuant to a
11dormant license, (iii) the first day that riverboat gambling
12operations are conducted under the authority of an owners
13license that is in addition to the 10 owners licenses initially
14authorized under this Act, or (iv) the first day that a
15licensee under the Illinois Horse Racing Act of 1975 conducts
16gaming operations with slot machines or other electronic gaming
17devices. The Board must reduce the obligation imposed under
18this subsection (a-15) by an amount the Board deems reasonable
19for any of the following reasons: (A) an act or acts of God,
20(B) an act of bioterrorism or terrorism or a bioterrorism or
21terrorism threat that was investigated by a law enforcement
22agency, or (C) a condition beyond the control of the owners
23licensee that does not result from any act or omission by the
24owners licensee or any of its agents and that poses a hazardous
25threat to the health and safety of patrons. If an owners
26licensee pays an amount in excess of its liability under this

 

 

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1Section, the Board shall apply the overpayment to future
2payments required under this Section.
3    For purposes of this subsection (a-15):
4    "Act of God" means an incident caused by the operation of
5an extraordinary force that cannot be foreseen, that cannot be
6avoided by the exercise of due care, and for which no person
7can be held liable.
8    "Base amount" means the following:
9        For a riverboat in Alton, $31,000,000.
10        For a riverboat in East Peoria, $43,000,000.
11        For the Empress riverboat in Joliet, $86,000,000.
12        For a riverboat in Metropolis, $45,000,000.
13        For the Harrah's riverboat in Joliet, $114,000,000.
14        For a riverboat in Aurora, $86,000,000.
15        For a riverboat in East St. Louis, $48,500,000.
16        For a riverboat in Elgin, $198,000,000.
17    "Dormant license" has the meaning ascribed to it in
18subsection (a-3).
19    "Net privilege tax" means all privilege taxes paid by a
20licensed owner to the Board under this Section, less all
21payments made from the State Gaming Fund pursuant to subsection
22(b) of this Section.
23    The changes made to this subsection (a-15) by Public Act
2494-839 are intended to restate and clarify the intent of Public
25Act 94-673 with respect to the amount of the payments required
26to be made under this subsection by an owners licensee to the

 

 

SB0516 Enrolled- 48 -LRB101 04277 SMS 49285 b

1Board.
2    (b) From the tax revenue from riverboat or casino gambling
3deposited in the State Gaming Fund under this Section, an
4amount equal to 5% of adjusted gross receipts generated by a
5riverboat or a casino, other than a riverboat or casino
6designated in paragraph (1), (3), or (4) of subsection (e-5) of
7Section 7, shall be paid monthly, subject to appropriation by
8the General Assembly, to the unit of local government in which
9the casino is located or that is designated as the home dock of
10the riverboat. Notwithstanding anything to the contrary,
11beginning on the first day that an owners licensee under
12paragraph (1), (2), (3), (4), (5), or (6) of subsection (e-5)
13of Section 7 conducts gambling operations, either in a
14temporary facility or a permanent facility, and for 2 years
15thereafter, a unit of local government designated as the home
16dock of a riverboat whose license was issued before January 1,
172019, other than a riverboat conducting gambling operations in
18the City of East St. Louis, shall not receive less under this
19subsection (b) than the amount the unit of local government
20received under this subsection (b) in calendar year 2018.
21Notwithstanding anything to the contrary and because the City
22of East St. Louis is a financially distressed city, beginning
23on the first day that an owners licensee under paragraph (1),
24(2), (3), (4), (5), or (6) of subsection (e-5) of Section 7
25conducts gambling operations, either in a temporary facility or
26a permanent facility, and for 10 years thereafter, a unit of

 

 

SB0516 Enrolled- 49 -LRB101 04277 SMS 49285 b

1local government designated as the home dock of a riverboat
2conducting gambling operations in the City of East St. Louis
3shall not receive less under this subsection (b) than the
4amount the unit of local government received under this
5subsection (b) in calendar year 2018.
6    From the tax revenue deposited in the State Gaming Fund
7pursuant to riverboat or casino gambling operations conducted
8by a licensed manager on behalf of the State, an amount equal
9to 5% of adjusted gross receipts generated pursuant to those
10riverboat or casino gambling operations shall be paid monthly,
11subject to appropriation by the General Assembly, to the unit
12of local government that is designated as the home dock of the
13riverboat upon which those riverboat gambling operations are
14conducted or in which the casino is located.
15    From the tax revenue from riverboat or casino gambling
16deposited in the State Gaming Fund under this Section, an
17amount equal to 5% of the adjusted gross receipts generated by
18a riverboat designated in paragraph (3) of subsection (e-5) of
19Section 7 shall be divided and remitted monthly, subject to
20appropriation, as follows: 70% to Waukegan, 10% to Park City,
2115% to North Chicago, and 5% to Lake County.
22    From the tax revenue from riverboat or casino gambling
23deposited in the State Gaming Fund under this Section, an
24amount equal to 5% of the adjusted gross receipts generated by
25a riverboat designated in paragraph (4) of subsection (e-5) of
26Section 7 shall be remitted monthly, subject to appropriation,

 

 

SB0516 Enrolled- 50 -LRB101 04277 SMS 49285 b

1as follows: 70% to the City of Rockford, 5% to the City of
2Loves Park, 5% to the Village of Machesney, and 20% to
3Winnebago County.
4    From the tax revenue from riverboat or casino gambling
5deposited in the State Gaming Fund under this Section, an
6amount equal to 5% of the adjusted gross receipts generated by
7a riverboat designated in paragraph (5) of subsection (e-5) of
8Section 7 shall be remitted monthly, subject to appropriation,
9as follows: 2% to the unit of local government in which the
10riverboat or casino is located, and 3% shall be distributed:
11(A) in accordance with a regional capital development plan
12entered into by the following communities: Village of Beecher,
13City of Blue Island, Village of Burnham, City of Calumet City,
14Village of Calumet Park, City of Chicago Heights, City of
15Country Club Hills, Village of Crestwood, Village of Crete,
16Village of Dixmoor, Village of Dolton, Village of East Hazel
17Crest, Village of Flossmoor, Village of Ford Heights, Village
18of Glenwood, City of Harvey, Village of Hazel Crest, Village of
19Homewood, Village of Lansing, Village of Lynwood, City of
20Markham, Village of Matteson, Village of Midlothian, Village of
21Monee, City of Oak Forest, Village of Olympia Fields, Village
22of Orland Hills, Village of Orland Park, City of Palos Heights,
23Village of Park Forest, Village of Phoenix, Village of Posen,
24Village of Richton Park, Village of Riverdale, Village of
25Robbins, Village of Sauk Village, Village of South Chicago
26Heights, Village of South Holland, Village of Steger, Village

 

 

SB0516 Enrolled- 51 -LRB101 04277 SMS 49285 b

1of Thornton, Village of Tinley Park, Village of University Park
2and Village of Worth; or (B) if no regional capital development
3plan exists, equally among the communities listed in item (A)
4to be used for capital expenditures or public pension payments,
5or both.
6    Units of local government may refund any portion of the
7payment that they receive pursuant to this subsection (b) to
8the riverboat or casino.
9    (b-4) Beginning on the first day the licensee under
10paragraph (5) of subsection (e-5) of Section 7 conducts
11gambling operations, either in a temporary facility or a
12permanent facility, and ending on July 31, 2042, from the tax
13revenue deposited in the State Gaming Fund under this Section,
14$5,000,000 shall be paid annually, subject to appropriation, to
15the host municipality of that owners licensee of a license
16issued or re-issued pursuant to Section 7.1 of this Act before
17January 1, 2012. Payments received by the host municipality
18pursuant to this subsection (b-4) may not be shared with any
19other unit of local government.
20    (b-5) Beginning on June 28, 2019 (the effective date of
21Public Act 101-31) this amendatory Act of the 101st General
22Assembly, from the tax revenue deposited in the State Gaming
23Fund under this Section, an amount equal to 3% of adjusted
24gross receipts generated by each organization gaming facility
25located outside Madison County shall be paid monthly, subject
26to appropriation by the General Assembly, to a municipality

 

 

SB0516 Enrolled- 52 -LRB101 04277 SMS 49285 b

1other than the Village of Stickney in which each organization
2gaming facility is located or, if the organization gaming
3facility is not located within a municipality, to the county in
4which the organization gaming facility is located, except as
5otherwise provided in this Section. From the tax revenue
6deposited in the State Gaming Fund under this Section, an
7amount equal to 3% of adjusted gross receipts generated by an
8organization gaming facility located in the Village of Stickney
9shall be paid monthly, subject to appropriation by the General
10Assembly, as follows: 25% to the Village of Stickney, 5% to the
11City of Berwyn, 50% to the Town of Cicero, and 20% to the
12Stickney Public Health District.
13    From the tax revenue deposited in the State Gaming Fund
14under this Section, an amount equal to 5% of adjusted gross
15receipts generated by an organization gaming facility located
16in the City of Collinsville shall be paid monthly, subject to
17appropriation by the General Assembly, as follows: 30% to the
18City of Alton, 30% to the City of East St. Louis, and 40% to the
19City of Collinsville.
20    Municipalities and counties may refund any portion of the
21payment that they receive pursuant to this subsection (b-5) to
22the organization gaming facility.
23    (b-6) Beginning on June 28, 2019 (the effective date of
24Public Act 101-31) this amendatory Act of the 101st General
25Assembly, from the tax revenue deposited in the State Gaming
26Fund under this Section, an amount equal to 2% of adjusted

 

 

SB0516 Enrolled- 53 -LRB101 04277 SMS 49285 b

1gross receipts generated by an organization gaming facility
2located outside Madison County shall be paid monthly, subject
3to appropriation by the General Assembly, to the county in
4which the organization gaming facility is located for the
5purposes of its criminal justice system or health care system.
6    Counties may refund any portion of the payment that they
7receive pursuant to this subsection (b-6) to the organization
8gaming facility.
9    (b-7) From the tax revenue from the organization gaming
10licensee located in one of the following townships of Cook
11County: Bloom, Bremen, Calumet, Orland, Rich, Thornton, or
12Worth, an amount equal to 5% of the adjusted gross receipts
13generated by that organization gaming licensee shall be
14remitted monthly, subject to appropriation, as follows: 2% to
15the unit of local government in which the organization gaming
16licensee is located, and 3% shall be distributed: (A) in
17accordance with a regional capital development plan entered
18into by the following communities: Village of Beecher, City of
19Blue Island, Village of Burnham, City of Calumet City, Village
20of Calumet Park, City of Chicago Heights, City of Country Club
21Hills, Village of Crestwood, Village of Crete, Village of
22Dixmoor, Village of Dolton, Village of East Hazel Crest,
23Village of Flossmoor, Village of Ford Heights, Village of
24Glenwood, City of Harvey, Village of Hazel Crest, Village of
25Homewood, Village of Lansing, Village of Lynwood, City of
26Markham, Village of Matteson, Village of Midlothian, Village of

 

 

SB0516 Enrolled- 54 -LRB101 04277 SMS 49285 b

1Monee, City of Oak Forest, Village of Olympia Fields, Village
2of Orland Hills, Village of Orland Park, City of Palos Heights,
3Village of Park Forest, Village of Phoenix, Village of Posen,
4Village of Richton Park, Village of Riverdale, Village of
5Robbins, Village of Sauk Village, Village of South Chicago
6Heights, Village of South Holland, Village of Steger, Village
7of Thornton, Village of Tinley Park, Village of University
8Park, and Village of Worth; or (B) if no regional capital
9development plan exists, equally among the communities listed
10in item (A) to be used for capital expenditures or public
11pension payments, or both.
12    (b-8) In lieu of the payments under subsection (b) of this
13Section, from the tax revenue deposited in the State Gaming
14Fund pursuant to riverboat or casino gambling operations
15conducted by an owners licensee under paragraph (1) of
16subsection (e-5) of Section 7, an amount equal to the tax
17revenue generated the tax revenue from the privilege tax
18imposed by paragraph (2) of subsection (a-5) that is to be paid
19to the City of Chicago (a-5.5) shall be paid monthly, subject
20to appropriation by the General Assembly, as follows: (1) an
21amount equal to 0.5% of the annual adjusted gross receipts
22generated by the owners licensee under paragraph (1) of
23subsection (e-5) of Section 7 to the home rule county in which
24the owners licensee is located for the purpose of enhancing the
25county's criminal justice system; and (2) the balance to the
26City of Chicago and shall be expended or obligated by the City

 

 

SB0516 Enrolled- 55 -LRB101 04277 SMS 49285 b

1of Chicago for pension payments in accordance with Public Act
299-506.
3    (c) Appropriations, as approved by the General Assembly,
4may be made from the State Gaming Fund to the Board (i) for the
5administration and enforcement of this Act and the Video Gaming
6Act, (ii) for distribution to the Department of State Police
7and to the Department of Revenue for the enforcement of this
8Act, and the Video Gaming Act, and (iii) to the Department of
9Human Services for the administration of programs to treat
10problem gambling, including problem gambling from sports
11wagering. The Board's annual appropriations request must
12separately state its funding needs for the regulation of gaming
13authorized under Section 7.7, riverboat gaming, casino gaming,
14video gaming, and sports wagering.
15    (c-2) An amount equal to 2% of the adjusted gross receipts
16generated by an organization gaming facility located within a
17home rule county with a population of over 3,000,000
18inhabitants shall be paid, subject to appropriation from the
19General Assembly, from the State Gaming Fund to the home rule
20county in which the organization gaming licensee is located for
21the purpose of enhancing the county's criminal justice system.
22    (c-3) Appropriations, as approved by the General Assembly,
23may be made from the tax revenue deposited into the State
24Gaming Fund from organization gaming licensees pursuant to this
25Section for the administration and enforcement of this Act.
26    (c-4) After payments required under subsections (b),

 

 

SB0516 Enrolled- 56 -LRB101 04277 SMS 49285 b

1(b-5), (b-6), (b-7), (c), (c-2), and (c-3) have been made from
2the tax revenue from organization gaming licensees deposited
3into the State Gaming Fund under this Section, all remaining
4amounts from organization gaming licensees shall be
5transferred into the Capital Projects Fund.
6    (c-5) (Blank).
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

 

 

SB0516 Enrolled- 57 -LRB101 04277 SMS 49285 b

1subsection (c-15) in the prior calendar year.
2    (c-21) After the payments required under subsections (b),
3(b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), and (c-4) have
4been made, an amount equal to 0.5% 2% of the adjusted gross
5receipts generated by the owners licensee under paragraph (1)
6of subsection (e-5) of Section 7 shall be paid monthly, subject
7to appropriation from the General Assembly, from the State
8Gaming Fund to the home rule county in which the owners
9licensee is located for the purpose of enhancing the county's
10criminal justice system.
11    (c-22) After the payments required under subsections (b),
12(b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), (c-4), and
13(c-21) have been made, an amount equal to 2% of the adjusted
14gross receipts generated by the owners licensee under paragraph
15(5) of subsection (e-5) of Section 7 shall be paid, subject to
16appropriation from the General Assembly, from the State Gaming
17Fund to the home rule county in which the owners licensee is
18located for the purpose of enhancing the county's criminal
19justice system.
20    (c-25) From July 1, 2013 and each July 1 thereafter through
21July 1, 2019, $1,600,000 shall be transferred from the State
22Gaming Fund to the Chicago State University Education
23Improvement Fund.
24    On July 1, 2020 and each July 1 thereafter, $3,000,000
25shall be transferred from the State Gaming Fund to the Chicago
26State University Education Improvement Fund.

 

 

SB0516 Enrolled- 58 -LRB101 04277 SMS 49285 b

1    (c-30) On July 1, 2013 or as soon as possible thereafter,
2$92,000,000 shall be transferred from the State Gaming Fund to
3the School Infrastructure Fund and $23,000,000 shall be
4transferred from the State Gaming Fund to the Horse Racing
5Equity Fund.
6    (c-35) Beginning on July 1, 2013, in addition to any amount
7transferred under subsection (c-30) of this Section,
8$5,530,000 shall be transferred monthly from the State Gaming
9Fund to the School Infrastructure Fund.
10    (d) From time to time, the Board shall transfer the
11remainder of the funds generated by this Act into the Education
12Assistance Fund, created by Public Act 86-0018, of the State of
13Illinois.
14    (e) Nothing in this Act shall prohibit the unit of local
15government designated as the home dock of the riverboat from
16entering into agreements with other units of local government
17in this State or in other states to share its portion of the
18tax revenue.
19    (f) To the extent practicable, the Board shall administer
20and collect the wagering taxes imposed by this Section in a
21manner consistent with the provisions of Sections 4, 5, 5a, 5b,
225c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the
23Retailers' Occupation Tax Act and Section 3-7 of the Uniform
24Penalty and Interest Act.
25(Source: P.A. 101-31, Article 25, Section 25-910, eff. 6-28-19;
26101-31, Article 35, Section 35-55, eff. 6-28-19; revised

 

 

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18-23-19.)
 
2    Section 7. The Sports Wagering Act is amended by changing
3Sections 25-30 and 25-35 as follows:
 
4    (230 ILCS 45/25-30)
5    Sec. 25-30. Master sports wagering license issued to an
6organization licensee.
7    (a) An organization licensee may apply to the Board for a
8master sports wagering license. To the extent permitted by
9federal and State law, the Board shall actively seek to achieve
10racial, ethnic, and geographic diversity when issuing master
11sports wagering licenses to organization licensees and
12encourage minority-owned businesses, women-owned businesses,
13veteran-owned businesses, and businesses owned by persons with
14disabilities to apply for licensure. Additionally, the report
15published under subsection (m) of Section 25-45 shall impact
16the issuance of the master sports wagering license to the
17extent permitted by federal and State law.
18    For the purposes of this subsection (a), "minority-owned
19business", "women-owned business", and "business owned by
20persons with disabilities" have the meanings given to those
21terms in Section 2 of the Business Enterprise for Minorities,
22Women, and Persons with Disabilities Act.
23    (b) Except as otherwise provided in this subsection (b),
24the initial license fee for a master sports wagering license

 

 

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1for an organization licensee is 5% of its handle from the
2preceding calendar year or the lowest amount that is required
3to be paid as an initial license fee by an owners licensee
4under subsection (b) of Section 25-35, whichever is greater. No
5initial license fee shall exceed $10,000,000. An organization
6licensee licensed on the effective date of this Act shall pay
7the initial master sports wagering license fee by July 1, 2021
82020. For an organization licensee licensed after the effective
9date of this Act, the master sports wagering license fee shall
10be $5,000,000, but the amount shall be adjusted 12 months after
11the organization licensee begins racing operations based on 5%
12of its handle from the first 12 months of racing operations.
13The master sports wagering license is valid for 4 years.
14    (c) The organization licensee may renew the master sports
15wagering license for a period of 4 years by paying a $1,000,000
16renewal fee to the Board.
17    (d) An organization licensee issued a master sports
18wagering license may conduct sports wagering:
19        (1) at its facility at which inter-track wagering is
20    conducted pursuant to an inter-track wagering license
21    under the Illinois Horse Racing Act of 1975;
22        (2) at 3 inter-track wagering locations if the
23    inter-track wagering location licensee from which it
24    derives its license is an organization licensee that is
25    issued a master sports wagering license; and
26        (3) over the Internet or through a mobile application.

 

 

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1    (e) The sports wagering offered over the Internet or
2through a mobile application shall only be offered under either
3the same brand as the organization licensee is operating under
4or a brand owned by a direct or indirect holding company that
5owns at least an 80% interest in that organization licensee on
6the effective date of this Act.
7    (f) Until issuance of the first license under Section
825-45, an individual must create a sports wagering account in
9person at a facility under paragraph (1) or (2) of subsection
10(d) to participate in sports wagering offered over the Internet
11or through a mobile application.
12(Source: P.A. 101-31, eff. 6-28-19.)
 
13    (230 ILCS 45/25-35)
14    Sec. 25-35. Master sports wagering license issued to an
15owners licensee.
16    (a) An owners licensee may apply to the Board for a master
17sports wagering license. To the extent permitted by federal and
18State law, the Board shall actively seek to achieve racial,
19ethnic, and geographic diversity when issuing master sports
20wagering licenses to owners licensees and encourage
21minority-owned businesses, women-owned businesses,
22veteran-owned businesses, and businesses owned by persons with
23disabilities to apply for licensure. Additionally, the report
24published under subsection (m) of Section 25-45 shall impact
25the issuance of the master sports wagering license to the

 

 

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1extent permitted by federal and State law.
2    For the purposes of this subsection (a), "minority-owned
3business", "women-owned business", and "business owned by
4persons with disabilities" have the meanings given to those
5terms in Section 2 of the Business Enterprise for Minorities,
6Women, and Persons with Disabilities Act.
7    (b) Except as otherwise provided in subsection (b-5), the
8initial license fee for a master sports wagering license for an
9owners licensee is 5% of its adjusted gross receipts from the
10preceding calendar year. No initial license fee shall exceed
11$10,000,000. An owners licensee licensed on the effective date
12of this Act shall pay the initial master sports wagering
13license fee by July 1, 2021 2020. The master sports wagering
14license is valid for 4 years.
15    (b-5) For an owners licensee licensed after the effective
16date of this Act, the master sports wagering license fee shall
17be $5,000,000, but the amount shall be adjusted 12 months after
18the owners licensee begins gambling operations under the
19Illinois Gambling Act based on 5% of its adjusted gross
20receipts from the first 12 months of gambling operations. The
21master sports wagering license is valid for 4 years.
22    (c) The owners licensee may renew the master sports
23wagering license for a period of 4 years by paying a $1,000,000
24renewal fee to the Board.
25    (d) An owners licensee issued a master sports wagering
26license may conduct sports wagering:

 

 

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1        (1) at its facility in this State that is authorized to
2    conduct gambling operations under the Illinois Gambling
3    Act; and
4        (2) over the Internet or through a mobile application.
5    (e) The sports wagering offered over the Internet or
6through a mobile application shall only be offered under either
7the same brand as the owners licensee is operating under or a
8brand owned by a direct or indirect holding company that owns
9at least an 80% interest in that owners licensee on the
10effective date of this Act.
11    (f) Until issuance of the first license under Section
1225-45, an individual must create a sports wagering account in
13person at a facility under paragraph (1) of subsection (d) to
14participate in sports wagering offered over the Internet or
15through a mobile application.
16(Source: P.A. 101-31, eff. 6-28-19.)
 
17    Section 10. The State Fair Gaming Act is amended by
18changing Sections 30-5, 30-10, and 30-15 as follows:
 
19    (230 ILCS 50/30-5)
20    Sec. 30-5. Definitions. As used in this Act:
21    "Board" means the Illinois Gaming Board.
22    "Department" means the Department of Agriculture.
23    "State Fair" has the meaning given to that term in the
24State Fair Act.

 

 

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1(Source: P.A. 101-31, eff. 6-28-19.)
 
2    (230 ILCS 50/30-10)
3    Sec. 30-10. Gaming Gambling at the State Fair.
4    (a) The Board shall issue a licensed establishment license
5as provided under Section 25 of the Video Gaming Act to the
6Department to operate video gaming a concessioner who will
7operate at the Illinois State Fairgrounds and at the DuQuoin
8State Fairgrounds. The Department shall select, concessioner
9shall be chosen under the Illinois Procurement Code,
10Board-licensed terminal operators for an operational period
11not to exceed 3 years. At the conclusion of each 3-year cycle,
12the Illinois Procurement Code shall be used to determine the
13new terminal operators concessioner.
14    (b) Moneys bid by the terminal operators concessioner shall
15be deposited into the State Fairgrounds Capital Improvements
16and Harness Racing Fund.
17(Source: P.A. 101-31, eff. 6-28-19.)
 
18    (230 ILCS 50/30-15)
19    Sec. 30-15. Video gaming at the State Fair.
20    (a) The Department concessioner issued a licensed
21establishment license under Section 30-10 may operate: (1) up
22to 50 video gaming terminals as provided in the Video Gaming
23Act during the scheduled dates of the Illinois State Fair; and
24(2) up to 30 video gaming terminals as provided in the Video

 

 

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1Gaming Act during the scheduled dates of the DuQuoin State
2Fair.
3    (b) No more than 10 video gaming terminals may be placed in
4any temporary pavilion where alcoholic beverages are served at
5either State Fair.
6(Source: P.A. 101-31, eff. 6-28-19.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.