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90_SB0829
230 ILCS 10/Act title
230 ILCS 10/3.5 new
230 ILCS 10/4 from Ch. 120, par. 2404
230 ILCS 10/6 from Ch. 120, par. 2406
230 ILCS 10/7 from Ch. 120, par. 2407
230 ILCS 10/11 from Ch. 120, par. 2411
230 ILCS 10/11.2 new
230 ILCS 10/13 from Ch. 120, par. 2413
Amends the Riverboat Gambling Act. Permits riverboat
gambling on permanently moored barges. Permits dockside
gambling if the municipality or county submits to the voters
the question of whether dockside gambling should be allowed
in the municipality or county. Allows a licensee that
receives Board permission to operate a secondary home dock
location and move up to two-thirds of its gaming positions to
that location if the licensee meets certain requirements.
Deletes provision that allows gambling excursion cruises only
when the navigable stream for which the riverboat is licensed
is navigable. Changes the license renewal period to 4 years.
Changes the wagering tax from a flat tax on adjusted gross
receipts to a graduated tax on those adjusted gross receipts.
Effective immediately.
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LRB9001159LDdvB
1 AN ACT to amend the Riverboat Gambling Act by changing
2 the title of the Act and Sections 4, 6, 7, 11, 12, and 13,
3 adding Sections 3.5 and 11.2.
4 Be it enacted by the People of the State of Illinois,
5 represented in the General Assembly:
6 Section 5. The Riverboat Gambling Act is amended by
7 changing the title of the Act and Sections 4, 6, 7, 11, 12,
8 and 13 and adding Sections 3.5 and 11.2 as follows:
9 (230 ILCS 10/Act title)
10 An Act to authorize certain forms of gambling on
11 excursion gambling boats.
12 (Source: P.A. 86-1029.)
13 (230 ILCS 10/3.5 new)
14 Sec. 3.5. Dockside gambling advisory referendum. Before
15 a licensee may conduct dockside gambling under this Act, the
16 municipality where the riverboat docks, or the county where
17 the riverboat docks if it does not dock within a
18 municipality, shall submit an advisory question to the voters
19 of the municipality or county, as the case may be, of whether
20 dockside gambling should be permitted in the municipality or
21 county.
22 (230 ILCS 10/4) (from Ch. 120, par. 2404)
23 Sec. 4. Definitions. As used in this Act:
24 (a) "Board" means the Illinois Gaming Board.
25 (b) "Occupational license" means a license issued by the
26 Board to a person or entity to perform an occupation which
27 the Board has identified as requiring a license to engage in
28 riverboat gambling in Illinois.
29 (c) "Gambling game" includes, but is not limited to,
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1 baccarat, twenty-one, poker, craps, slot machine, video game
2 of chance, roulette wheel, klondike table, punchboard, faro
3 layout, keno layout, numbers ticket, push card, jar ticket,
4 or pull tab which is authorized by the Board as a wagering
5 device under this Act.
6 (d) "Riverboat" means a self-propelled excursion boat or
7 a permanently moored barge on which lawful gambling is
8 authorized and licensed as provided in this Act.
9 (e) (Blank). "Gambling excursion" means the time during
10 which gambling games may be operated on a riverboat.
11 (f) "Dock" means the location where a gaming facility an
12 excursion riverboat moors for the purpose of embarking
13 passengers for and disembarking passengers from a gambling
14 facility excursion.
15 (g) "Gross receipts" means the total amount of money
16 exchanged for the purchase of chips, tokens or electronic
17 cards by riverboat patrons.
18 (h) "Adjusted gross receipts" means the gross receipts
19 less winnings paid to wagerers.
20 (i) "Cheat" means to alter the selection of criteria
21 which determine the result of a gambling game or the amount
22 or frequency of payment in a gambling game.
23 (j) "Department" means the Department of Revenue.
24 (k) "Gambling operation" means the conduct of authorized
25 gambling games upon a riverboat.
26 (Source: P.A. 86-1029; 86-1389; 87-826.)
27 (230 ILCS 10/6) (from Ch. 120, par. 2406)
28 Sec. 6. Application for Owners License.
29 (a) A qualified person may apply to the Board for an
30 owners license to conduct a riverboat gambling operation as
31 provided in this Act. The application shall be made on forms
32 provided by the Board and shall contain such information as
33 the Board prescribes, including but not limited to the
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1 identity of the riverboat on which such gambling operation is
2 to be conducted and the exact location where such riverboat
3 will be docked, a certification that the riverboat will be
4 registered under this Act at all times during which gambling
5 operations are conducted on board, detailed information
6 regarding the ownership and management of the applicant, and
7 detailed personal information regarding the applicant.
8 Information provided on the application shall be used as a
9 basis for a thorough background investigation which the Board
10 shall conduct with respect to each applicant. An incomplete
11 application shall be cause for denial of a license by the
12 Board.
13 (b) Applicants shall submit with their application all
14 documents, resolutions, and letters of support from the
15 governing body that represents the municipality or county
16 wherein the licensee will dock.
17 (c) Each applicant shall disclose the identity of every
18 person, association, trust or corporation having a greater
19 than 1% direct or indirect pecuniary interest in the
20 riverboat gambling operation with respect to which the
21 license is sought. If the disclosed entity is a trust, the
22 application shall disclose the names and addresses of the
23 beneficiaries; if a corporation, the names and addresses of
24 all stockholders and directors; if a partnership, the names
25 and addresses of all partners, both general and limited.
26 (d) An application shall be filed with the Board by
27 January 1 of the year preceding any calendar year for which
28 an applicant seeks an owners license; however, applications
29 for an owners license permitting operations on January 1,
30 1991 shall be filed by July 1, 1990. An application fee of
31 $50,000 shall be paid at the time of filing to defray the
32 costs associated with the background investigation conducted
33 by the Board. If the costs of the investigation exceed
34 $50,000, the applicant shall pay the additional amount to the
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1 Board. If the costs of the investigation are less than
2 $50,000, the applicant shall receive a refund of the
3 remaining amount. All information, records, interviews,
4 reports, statements, memoranda or other data supplied to or
5 used by the Board in the course of its review or
6 investigation of an application for a license under this Act
7 shall be privileged, strictly confidential and shall be used
8 only for the purpose of evaluating an applicant. Such
9 information, records, interviews, reports, statements,
10 memoranda or other data shall not be admissible as evidence,
11 nor discoverable in any action of any kind in any court or
12 before any tribunal, board, agency or person, except for any
13 action deemed necessary by the Board.
14 (e) The Board shall charge each applicant a fee set by
15 the Department of State Police to defray the costs associated
16 with the search and classification of fingerprints obtained
17 by the Board with respect to the applicant's application.
18 These fees shall be paid into the State Police Services Fund.
19 (f) The licensed owner shall be the person primarily
20 responsible for the boat itself. Only one riverboat gambling
21 operation may be authorized by the Board on any riverboat.
22 The applicant must identify each riverboat it intends to use
23 and certify that the riverboat: (1) has the authorized
24 capacity required in this Act; (2) is accessible to disabled
25 persons; (3) is either a replica of a 19th century Illinois
26 riverboat or of a casino cruise ship design, but it need not
27 be self-propelled and may be a permanently moored barge; and
28 (4) is fully registered and licensed in accordance with any
29 applicable laws.
30 (g) A person who knowingly makes a false statement on an
31 application is guilty of a Class A misdemeanor.
32 (Source: P.A. 86-1029; 86-1389.)
33 (230 ILCS 10/7) (from Ch. 120, par. 2407)
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1 Sec. 7. Owners Licenses.
2 (a) The Board shall issue owners licenses to persons,
3 firms or corporations which apply for such licenses upon
4 payment to the Board of the non-refundable license fee set by
5 the Board, upon payment of a $25,000 license fee for the
6 first year of operation and a $5,000 license fee for each
7 succeeding year and upon a determination by the Board that
8 the applicant is eligible for an owners license pursuant to
9 this Act and the rules of the Board. A person, firm or
10 corporation is ineligible to receive an owners license if:
11 (1) the person has been convicted of a felony under
12 the laws of this State, any other state, or the United
13 States;
14 (2) the person has been convicted of any violation
15 of Article 28 of the Criminal Code of 1961, or
16 substantially similar laws of any other jurisdiction;
17 (3) the person has submitted an application for a
18 license under this Act which contains false information;
19 (4) the person is a member of the Board;
20 (5) a person defined in (1), (2), (3) or (4) is an
21 officer, director or managerial employee of the firm or
22 corporation;
23 (6) the firm or corporation employs a person
24 defined in (1), (2), (3) or (4) who participates in the
25 management or operation of gambling operations authorized
26 under this Act;
27 (7) the person, firm or corporation owns more than
28 a 10% ownership interest in any entity holding an owners
29 license issued under this Act; or
30 (8) a license of the person, firm or corporation
31 issued under this Act, or a license to own or operate
32 gambling facilities in any other jurisdiction, has been
33 revoked.
34 (b) In determining whether to grant an owners license to
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1 an applicant, the Board shall consider:
2 (1) the character, reputation, experience and
3 financial integrity of the applicants and of any other or
4 separate person that either:
5 (A) controls, directly or indirectly, such
6 applicant, or
7 (B) is controlled, directly or indirectly, by
8 such applicant or by a person which controls,
9 directly or indirectly, such applicant;
10 (2) the facilities or proposed facilities for the
11 conduct of riverboat gambling;
12 (3) the highest prospective total revenue to be
13 derived by the State from the conduct of riverboat
14 gambling;
15 (4) the good faith affirmative action plan of each
16 applicant to recruit, train and upgrade minorities in all
17 employment classifications;
18 (5) the financial ability of the applicant to
19 purchase and maintain adequate liability and casualty
20 insurance;
21 (6) whether the applicant has adequate
22 capitalization to provide and maintain, for the duration
23 of a license, a riverboat; and
24 (7) the extent to which the applicant exceeds or
25 meets other standards for the issuance of an owners
26 license which the Board may adopt by rule.
27 (c) Each owners license shall specify the place where
28 riverboats shall operate and dock.
29 (d) Each applicant shall submit with his application, on
30 forms provided by the Board, 2 sets of his fingerprints.
31 (e) The Board may issue up to 10 licenses authorizing
32 the holders of such licenses to own riverboats. In the
33 application for an owners license, the applicant shall state
34 the dock at which the riverboat is based and the navigable
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1 stream on which the riverboat will operate. The Board shall
2 issue 5 licenses to become effective not earlier than January
3 1, 1991. Four of such licenses shall authorize riverboat
4 gambling on the Mississippi River, one of which shall
5 authorize riverboat gambling from a home dock in the city of
6 East St. Louis. The other license shall authorize riverboat
7 gambling on the Illinois River south of Marshall County. The
8 Board shall issue 1 additional license to become effective
9 not earlier than March 1, 1992, which shall authorize
10 riverboat gambling on the Des Plaines River in Will County.
11 The Board may issue 4 additional licenses to become effective
12 not earlier than March 1, 1992. In determining the navigable
13 streams upon which riverboats will operate with licenses
14 effective on or after March 1, 1992, the Board shall consider
15 the economic benefit which riverboat gambling confers on the
16 State, and shall seek to assure that all regions of the State
17 share in the economic benefits of riverboat gambling.
18 In granting all licenses, the Board may give favorable
19 consideration to economically depressed areas of the State,
20 to applicants presenting plans which provide for significant
21 economic development over a large geographic area, and to
22 applicants who currently operate non-gambling riverboats in
23 Illinois. The Board shall review all applications for owners
24 licenses, and shall inform each applicant of the Board's
25 decision.
26 The Board may revoke the owners license of a licensee
27 which fails to begin regular riverboat cruises within 12
28 months of receipt of the Board's approval of the application
29 if the Board determines that license revocation is in the
30 best interests of the State.
31 (f) The first 10 owners licenses issued under this Act
32 shall permit the holder to own up to 2 riverboats and
33 equipment thereon for a period of 3 years after the effective
34 date of the license. Holders of the first 10 owners licenses
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1 must pay the annual license fee for each of the 3 years
2 during which they are authorized to own riverboats.
3 (g) Upon the termination, expiration or revocation of
4 each of the first 10 licenses, which shall be issued for a 3
5 year period, all licenses are renewable annually upon payment
6 of the fee and a determination by the Board that the licensee
7 continues to meet all of the requirements of this Act and the
8 Board's rules. However, for licenses renewed on or after July
9 1, 1997, renewal shall be for a period of 4 years, unless the
10 Board sets a shorter period.
11 (h) An owners license shall entitle the licensee to own
12 up to 2 riverboats. A licensee shall limit the number of
13 gambling participants to 1,200 for any such owners license.
14 Riverboats licensed to operate on the Mississippi River and
15 the Illinois River south of Marshall County shall have an
16 authorized capacity of at least 500 persons. Any other
17 riverboat licensed under this Act shall have an authorized
18 capacity of at least 400 persons.
19 (i) A licensed owner is authorized to apply to the Board
20 for and, if approved therefor, to receive all licenses from
21 the Board necessary for the operation of a riverboat,
22 including a liquor license, a license to prepare and serve
23 food for human consumption, and other necessary licenses.
24 All use, occupation and excise taxes which apply to the sale
25 of food and beverages in this State and all taxes imposed on
26 the sale or use of tangible personal property apply to such
27 sales aboard the riverboat.
28 (j) None of the first 5 licenses issued by the Board to
29 become effective not earlier than January 1, 1991 shall
30 authorize a riverboat to dock in a municipality with a
31 population of under 2,000; however, this restriction does not
32 apply to any additional licenses issued by the Board to
33 become effective not earlier than March 1, 1992. The Board
34 may issue a license authorizing a riverboat to dock in a
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1 municipality or approve a secondary home dock location only
2 if, prior to the issuance of the license or approval, the
3 governing body of the municipality has by a majority vote
4 approved the docking of riverboats in the municipality. The
5 Board may issue a license authorizing a riverboat to dock in
6 areas of a county outside any municipality or approve a
7 secondary dock location only if, prior to the issuance of the
8 license or approval, the governing body of the county has by
9 a majority vote approved of the docking of riverboats within
10 such areas.
11 (k) Nothing in this Act shall be interpreted to prohibit
12 a licensed owner from operating a school for the training of
13 any occupational licensee.
14 (Source: P.A. 86-1029; 86-1389; 86-1475; 87-826.)
15 (230 ILCS 10/11) (from Ch. 120, par. 2411)
16 Sec. 11. Conduct of gambling.
17 (a) Gambling may be conducted by licensed owners aboard
18 riverboats, subject to the following standards:
19 (1) (Blank) No gambling may be conducted while a
20 riverboat is docked.
21 (2) (Blank) Riverboat cruises may not exceed 4
22 hours for a round trip, with the exception of any
23 extended cruises, each of which shall be expressly
24 approved by the Board.
25 (3) Minimum and maximum wagers on games shall be
26 set by the licensee.
27 (4) Agents of the Board and the Department of State
28 Police may board and inspect any riverboat at any time
29 for the purpose of determining whether this Act is being
30 complied with. Every riverboat, if under way and being
31 hailed by a law enforcement officer or agent of the
32 Board, must stop immediately and lay to.
33 (5) Employees of the Board shall have the right to
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1 be present on the riverboat or on adjacent facilities
2 under the control of the licensee.
3 (6) Gambling equipment and supplies customarily
4 used in conducting riverboat gambling must be purchased
5 or leased only from suppliers licensed for such purpose
6 under this Act.
7 (7) Persons licensed under this Act shall permit no
8 form of wagering on gambling games except as permitted by
9 this Act.
10 (8) Wagers may be received only from a person
11 present on a licensed riverboat. No person present on a
12 licensed riverboat shall place or attempt to place a
13 wager on behalf of another person who is not present on
14 the riverboat.
15 (9) Wagering shall not be conducted with money or
16 other negotiable currency.
17 (10) A person under age 21 shall not be permitted
18 on an area of a riverboat where gambling is being
19 conducted, except for a person at least 18 years of age
20 who is an employee of the riverboat gambling operation.
21 No employee under age 21 shall perform any function
22 involved in gambling by the patrons. No person under age
23 21 shall be permitted to make a wager under this Act.
24 (11) Gambling excursion cruises are permitted only
25 when the navigable stream for which the riverboat is
26 licensed is navigable, as determined by the Board in
27 consultation with the U.S. Army Corps of Engineers.
28 (12) All tokens, chips or electronic cards used to
29 make wagers must be purchased from a licensed owner
30 either aboard a riverboat or at an onshore facility which
31 has been approved by the Board and which is located where
32 the riverboat docks. The tokens, chips or electronic
33 cards may be purchased by means of an agreement under
34 which the owner extends credit to the patron. Such
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1 tokens, chips or electronic cards may be used while
2 aboard the riverboat only for the purpose of making
3 wagers on gambling games.
4 (13) Notwithstanding any other Section of this Act,
5 in addition to the other licenses authorized under this
6 Act, the Board may issue special event licenses allowing
7 persons who are not otherwise licensed to conduct
8 riverboat gambling to conduct such gambling on a
9 specified date or series of dates. Riverboat gambling
10 under such a license may take place on a riverboat not
11 normally used for riverboat gambling. The Board shall
12 establish standards, fees and fines for, and limitations
13 upon, such licenses, which may differ from the standards,
14 fees, fines and limitations otherwise applicable under
15 this Act. All such fees shall be deposited into the
16 State Gaming Fund. All such fines shall be deposited
17 into the Education Assistance Fund, created by Public Act
18 86-0018, of the State of Illinois.
19 (14) In addition to the above, gambling must be
20 conducted in accordance with all rules adopted by the
21 Board.
22 (Source: P.A. 86-1029; 86-1389; 87-826.)
23 (230 ILCS 10/11.2 new)
24 Sec. 11.2. Secondary home dock locations.
25 (a) A licensee that earns less than $40,000,000 in
26 adjusted gross receipts and uses less than 50% of its gaming
27 positions during a 12-month period may request permission
28 from the Board to move up to two-thirds of its gaming
29 positions to a secondary home dock location. If permission
30 is granted by the Board under this Section, the licensee may
31 then operate one riverboat at each location approved by the
32 Board.
33 (b) If a licensee operates from dual home dock locations
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1 under subsection (a), 15% of the tax revenue distributed
2 under Section 13(b) from the secondary home dock location
3 shall be paid to the unit of local government that is the
4 original home dock location of the licensee in the same
5 manner as that tax is paid under Section 13(b).
6 (230 ILCS 10/13) (from Ch. 120, par. 2413)
7 Sec. 13. Wagering tax; Rate; Distribution.
8 (a) Until January 1, 1998, a tax is imposed on the
9 adjusted gross receipts received from gambling games
10 authorized under this Act at the rate of 20%. Commencing
11 January 1, 1998, a graduated privilege tax is imposed on
12 persons engaged in the business of conducting riverboat
13 gambling operations, based on the adjusted gross receipts
14 received by a licensed owner from gambling games authorized
15 under this Act at the rate of 13% of annual adjusted gross
16 receipts up to and including $25,000,000, 24.5% of annual
17 adjusted gross receipts greater than $25,000,000 but no
18 greater than $50,000,000, 27% of annual adjusted gross
19 receipts greater than $50,000,000 but no greater than
20 $75,000,000, 28% of annual adjusted gross receipts greater
21 than $75,000,000 but no greater than $100,000,000, and 30% of
22 annual adjusted gross receipts greater than $100,000,000.
23 The taxes imposed by this Section shall be paid by the
24 licensed owner to the Board not later than 3:00 o'clock p.m.
25 of the day after the close of the day when the wagers were
26 made.
27 (b) Twenty-five percent (25%) Of the tax revenue
28 deposited in the State Gaming Fund under this Section, an
29 amount equal to 5% of adjusted gross receipts shall be paid
30 monthly, subject to appropriation by the General Assembly, to
31 the unit of local government which is designated as the home
32 dock of the riverboat. If the licensee maintains a secondary
33 home dock location under Section 11.2, the amount paid under
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1 this subsection (b) shall be divided as provided in Section
2 11.2.
3 (c) Appropriations, as approved by the General Assembly,
4 may be made from the State Gaming Fund to the Department of
5 Revenue and the Department of State Police for the
6 administration and enforcement of this Act.
7 (d) From time to time, the Board shall transfer the
8 remainder of the funds generated by this Act into the
9 Education Assistance Fund, created by Public Act 86-0018, of
10 the State of Illinois.
11 (e) Nothing in this Act shall prohibit the unit of local
12 government designated as the home dock of the riverboat from
13 entering into agreements with other units of local government
14 in this State or in other states to share its portion of the
15 tax revenue.
16 (f) To the extent practicable, the Board shall
17 administer and collect the wagering taxes imposed by this
18 Section in a manner consistent with the provisions of
19 Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
20 6c, 8, 9, and 10 of the Retailers' Occupation Tax Act and
21 Section 3-7 of the Uniform Penalty and Interest Act.
22 (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 7-1-95.)
23 Section 99. Effective date. This Act takes effect upon
24 becoming law.