Bill Text: IL HB5037 | 2019-2020 | 101st General Assembly | Introduced


Bill Title: Amends the Illinois Gambling Act. Makes changes to the information the Illinois Gaming Board requires from applicants and licensees. Provides that a qualifying owners licensee may obtain up to the maximum of 2,000 additional gaming positions at any time. Provides that payment for additional gaming positions may be made on a monthly basis, subject to payment schedules specified by the Board. Removes language requiring an owners licensee to reserve gaming positions within 30 days of the effective date of Public Act 101-31, with a 30-day extension approved by the Board. Provides that the Board shall file its report concerning the business enterprise program no later than July 1 of each year (rather than March 1). Provides that an applicant for a suppliers license that holds a specified license under the Video Gaming Act shall not be subject to additional Board investigations as a condition for licensure, except by vote of the Board. Makes conforming changes in and further amends the Video Gaming Act. Allows the Board to impose a fee to an establishment authorized to conduct video gaming under the Act or a terminal operator to cover the costs of operating the central communications system. Makes other changes.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-06-23 - Rule 19(b) / Re-referred to Rules Committee [HB5037 Detail]

Download: Illinois-2019-HB5037-Introduced.html


101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5037

Introduced , by Rep. Robert Rita

SYNOPSIS AS INTRODUCED:
230 ILCS 10/5.1 from Ch. 120, par. 2405.1
230 ILCS 10/7 from Ch. 120, par. 2407
230 ILCS 10/7.6
230 ILCS 10/7.7
230 ILCS 10/8 from Ch. 120, par. 2408
230 ILCS 40/15
230 ILCS 40/80

Amends the Illinois Gambling Act. Makes changes to the information the Illinois Gaming Board requires from applicants and licensees. Provides that a qualifying owners licensee may obtain up to the maximum of 2,000 additional gaming positions at any time. Provides that payment for additional gaming positions may be made on a monthly basis, subject to payment schedules specified by the Board. Removes language requiring an owners licensee to reserve gaming positions within 30 days of the effective date of Public Act 101-31, with a 30-day extension approved by the Board. Provides that the Board shall file its report concerning the business enterprise program no later than July 1 of each year (rather than March 1). Provides that an applicant for a suppliers license that holds a specified license under the Video Gaming Act shall not be subject to additional Board investigations as a condition for licensure, except by vote of the Board. Makes conforming changes in and further amends the Video Gaming Act. Allows the Board to impose a fee to an establishment authorized to conduct video gaming under the Act or a terminal operator to cover the costs of operating the central communications system. Makes other changes.
LRB101 17970 SMS 67407 b
FISCAL NOTE ACT MAY APPLY

A BILL FOR

HB5037LRB101 17970 SMS 67407 b
1 AN ACT concerning gaming.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Gambling Act is amended by changing
5Sections 5.1, 7, 7.6, 7.7, and 8 as follows:
6 (230 ILCS 10/5.1) (from Ch. 120, par. 2405.1)
7 Sec. 5.1. Disclosure of records.
8 (a) Notwithstanding any applicable statutory provision to
9the contrary, the Board shall, on written request from any
10person, provide information furnished by an applicant or
11licensee concerning the applicant or licensee, his products,
12services or gambling enterprises and his business holdings, as
13follows:
14 (1) The name, business address and business telephone
15 number of any applicant or licensee.
16 (2) An identification of any applicant or licensee
17 including, if an applicant or licensee is not an
18 individual, the state of incorporation or registration and
19 names of the corporate officers, directors, and
20 stockholders, if the entity is a corporation; the state of
21 formation and names of all members, if the entity is a
22 limited liability company; the names of all partners, both
23 general and limited, if the entity is a partnership; and

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1 the names of all participants in the trust,if the entity is
2 a trust the names and addresses of all stockholders and
3 directors, if the entity is a corporation; the names and
4 addresses of all members, if the entity is a limited
5 liability company; the names and addresses of all partners,
6 both general and limited, if the entity is a partnership;
7 and the names and addresses of all beneficiaries, if the
8 entity is a trust. If an applicant or licensee has a
9 pending registration statement filed with the Securities
10 and Exchange Commission, only the names of those persons or
11 entities holding interest of 5% or more must be provided.
12 (3) An identification of any business, including, if
13 applicable, the state of incorporation or registration, in
14 which an applicant or licensee or an applicant's or
15 licensee's spouse or children has an equity interest of
16 more than 1%. If an applicant or licensee is a corporation,
17 partnership or other business entity, the applicant or
18 licensee shall identify any other corporation, partnership
19 or business entity in which it has an equity interest of 1%
20 or more, including, if applicable, the state of
21 incorporation or registration. This information need not
22 be provided by a corporation, partnership or other business
23 entity that has a pending registration statement filed with
24 the Securities and Exchange Commission.
25 (4) Whether an applicant or licensee has been indicted,
26 convicted, pleaded guilty or nolo contendere, or forfeited

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1 bail concerning any criminal offense under the laws of any
2 jurisdiction, either felony or misdemeanor (except for
3 traffic violations), including the date, the name and
4 location of the court, arresting agency and prosecuting
5 agency, the case number, the offense, the disposition and
6 the location and length of incarceration.
7 (5) Whether an applicant or licensee has had any
8 license or certificate issued by a licensing authority in
9 Illinois or any other jurisdiction denied, restricted,
10 suspended, revoked or not renewed and a statement
11 describing the facts and circumstances concerning the
12 denial, restriction, suspension, revocation or
13 non-renewal, including the licensing authority, the date
14 each such action was taken, and the reason for each such
15 action.
16 (6) Whether an applicant or licensee has ever filed or
17 had filed against it a proceeding in bankruptcy or has ever
18 been involved in any formal process to adjust, defer,
19 suspend or otherwise work out the payment of any debt
20 including the date of filing, the name and location of the
21 court, the case and number of the disposition.
22 (7) Whether an applicant or licensee has filed, or been
23 served with a complaint or other notice filed with any
24 public body, regarding the delinquency in the payment of,
25 or a dispute over the filings concerning the payment of,
26 any tax required under federal, State or local law,

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1 including the amount, type of tax, the taxing agency and
2 time periods involved.
3 (8) A statement listing the names and titles of all
4 public officials or officers of any unit of government, and
5 relatives of said public officials or officers who,
6 directly or indirectly, own any financial interest in, have
7 any beneficial interest in, are the creditors of or hold
8 any debt instrument issued by, or hold or have any interest
9 in any contractual or service relationship with, an
10 applicant or licensee.
11 (9) Whether an applicant or licensee has made, directly
12 or indirectly, any political contribution, or any loans,
13 donations or other payments, to any candidate or office
14 holder, within 5 years from the date of filing the
15 application, including the amount and the method of
16 payment.
17 (10) The name and business telephone number of the
18 counsel representing an applicant or licensee in matters
19 before the Board.
20 (11) A description of any proposed or approved gambling
21 operation, including the type of boat, home dock, or casino
22 or gaming location, expected economic benefit to the
23 community, anticipated or actual number of employees, any
24 statement from an applicant or licensee regarding
25 compliance with federal and State affirmative action
26 guidelines, projected or actual admissions and projected

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1 or actual adjusted gross gaming receipts.
2 (12) A description of the product or service to be
3 supplied by an applicant for a supplier's license.
4 (b) Notwithstanding any applicable statutory provision to
5the contrary, the Board shall, on written request from any
6person, also provide the following information:
7 (1) The amount of the wagering tax and admission tax
8 paid daily to the State of Illinois by the holder of an
9 owner's license.
10 (2) Whenever the Board finds an applicant for an
11 owner's license unsuitable for licensing, a copy of the
12 written letter outlining the reasons for the denial.
13 (3) Whenever the Board has refused to grant leave for
14 an applicant to withdraw his application, a copy of the
15 letter outlining the reasons for the refusal.
16 (c) Subject to the above provisions, the Board shall not
17disclose any information which would be barred by:
18 (1) Section 7 of the Freedom of Information Act; or
19 (2) The statutes, rules, regulations or
20 intergovernmental agreements of any jurisdiction.
21 (d) The Board may assess fees for the copying of
22information in accordance with Section 6 of the Freedom of
23Information Act.
24(Source: P.A. 101-31, eff. 6-28-19.)
25 (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 or
3entities that apply for such licenses upon payment to the Board
4of the non-refundable license fee as provided in subsection (e)
5or (e-5) and upon a determination by the Board that the
6applicant is eligible for an owners license pursuant to this
7Act and the rules of the Board. From the effective date of this
8amendatory Act of the 95th General Assembly until (i) 3 years
9after the effective date of this amendatory Act of the 95th
10General Assembly, (ii) the date any organization licensee
11begins to operate a slot machine or video game of chance under
12the Illinois Horse Racing Act of 1975 or this Act, (iii) the
13date that payments begin under subsection (c-5) of Section 13
14of this the Act, (iv) the wagering tax imposed under Section 13
15of this Act is increased by law to reflect a tax rate that is at
16least as stringent or more stringent than the tax rate
17contained in subsection (a-3) of Section 13, or (v) when an
18owners licensee holding a license issued pursuant to Section
197.1 of this Act begins conducting gaming, whichever occurs
20first, as a condition of licensure and as an alternative source
21of payment for those funds payable under subsection (c-5) of
22Section 13 of this Act, any owners licensee that holds or
23receives its owners license on or after the effective date of
24this amendatory Act of the 94th General Assembly, other than an
25owners licensee operating a riverboat with adjusted gross
26receipts in calendar year 2004 of less than $200,000,000, must

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1pay into the Horse Racing Equity Trust Fund, in addition to any
2other payments required under this Act, an amount equal to 3%
3of the adjusted gross receipts received by the owners licensee.
4The payments required under this Section shall be made by the
5owners licensee to the State Treasurer no later than 3:00
6o'clock p.m. of the day after the day when the adjusted gross
7receipts were received by the owners licensee. A person or
8entity is ineligible to receive an owners license if:
9 (1) the person has been convicted of a felony under the
10 laws of this State, any other state, or the United States;
11 (2) the person has been convicted of any violation of
12 Article 28 of the Criminal Code of 1961 or the Criminal
13 Code of 2012, or substantially similar laws of any other
14 jurisdiction;
15 (3) the person has submitted an application for a
16 license under this Act which contains false information;
17 (4) the person is a member of the Board;
18 (5) a person defined in (1), (2), (3), or (4) is an
19 officer, director, or managerial employee of the entity;
20 (6) the entity employs a person defined in (1), (2),
21 (3), or (4) who participates in the management or operation
22 of gambling operations authorized under this Act;
23 (7) (blank); or
24 (8) a license of the person or entity issued under this
25 Act, or a license to own or operate gambling facilities in
26 any other jurisdiction, has been revoked.

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1 The Board is expressly prohibited from making changes to
2the requirement that licensees make payment into the Horse
3Racing Equity Trust Fund without the express authority of the
4Illinois General Assembly and making any other rule to
5implement or interpret this amendatory Act of the 95th General
6Assembly. For the purposes of this paragraph, "rules" is given
7the meaning given to that term in Section 1-70 of the Illinois
8Administrative Procedure Act.
9 (b) In determining whether to grant an owners license to an
10applicant, the Board shall consider:
11 (1) the character, reputation, experience, and
12 financial integrity of the applicants and of any other or
13 separate person that either:
14 (A) controls, directly or indirectly, such
15 applicant, or
16 (B) is controlled, directly or indirectly, by such
17 applicant or by a person which controls, directly or
18 indirectly, such applicant;
19 (2) the facilities or proposed facilities for the
20 conduct of gambling;
21 (3) the highest prospective total revenue to be derived
22 by the State from the conduct of gambling;
23 (4) the extent to which the ownership of the applicant
24 reflects the diversity of the State by including minority
25 persons, women, and persons with a disability and the good
26 faith affirmative action plan of each applicant to recruit,

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1 train and upgrade minority persons, women, and persons with
2 a disability in all employment classifications; the Board
3 shall further consider granting an owners license and
4 giving preference to an applicant under this Section to
5 applicants in which minority persons and women hold
6 ownership interest of at least 16% and 4%, respectively.
7 (4.5) the extent to which the ownership of the
8 applicant includes veterans of service in the armed forces
9 of the United States, and the good faith affirmative action
10 plan of each applicant to recruit, train, and upgrade
11 veterans of service in the armed forces of the United
12 States in all employment classifications;
13 (5) the financial ability of the applicant to purchase
14 and maintain adequate liability and casualty insurance;
15 (6) whether the applicant has adequate capitalization
16 to provide and maintain, for the duration of a license, a
17 riverboat or casino;
18 (7) the extent to which the applicant exceeds or meets
19 other standards for the issuance of an owners license which
20 the Board may adopt by rule;
21 (8) the amount of the applicant's license bid;
22 (9) the extent to which the applicant or the proposed
23 host municipality plans to enter into revenue sharing
24 agreements with communities other than the host
25 municipality; and
26 (10) the extent to which the ownership of an applicant

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1 includes the most qualified number of minority persons,
2 women, and persons with a disability.
3 (c) Each owners license shall specify the place where the
4casino shall operate or the riverboat shall operate and dock.
5 (d) Each applicant shall submit with his or her
6application, on forms provided by the Board, 2 sets of his or
7her fingerprints.
8 (e) In addition to any licenses authorized under subsection
9(e-5) of this Section, the Board may issue up to 10 licenses
10authorizing the holders of such licenses to own riverboats. In
11the application for an owners license, the applicant shall
12state the dock at which the riverboat is based and the water on
13which the riverboat will be located. The Board shall issue 5
14licenses to become effective not earlier than January 1, 1991.
15Three of such licenses shall authorize riverboat gambling on
16the Mississippi River, or, with approval by the municipality in
17which the riverboat was docked on August 7, 2003 and with Board
18approval, be authorized to relocate to a new location, in a
19municipality that (1) borders on the Mississippi River or is
20within 5 miles of the city limits of a municipality that
21borders on the Mississippi River and (2), on August 7, 2003,
22had a riverboat conducting riverboat gambling operations
23pursuant to a license issued under this Act; one of which shall
24authorize riverboat gambling from a home dock in the city of
25East St. Louis; and one of which shall authorize riverboat
26gambling from a home dock in the City of Alton. One other

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1license shall authorize riverboat gambling on the Illinois
2River in the City of East Peoria or, with Board approval, shall
3authorize land-based gambling operations anywhere within the
4corporate limits of the City of Peoria. The Board shall issue
5one additional license to become effective not earlier than
6March 1, 1992, which shall authorize riverboat gambling on the
7Des Plaines River in Will County. The Board may issue 4
8additional licenses to become effective not earlier than March
91, 1992. In determining the water upon which riverboats will
10operate, the Board shall consider the economic benefit which
11riverboat gambling confers on the State, and shall seek to
12assure that all regions of the State share in the economic
13benefits of riverboat gambling.
14 In granting all licenses, the Board may give favorable
15consideration to economically depressed areas of the State, to
16applicants presenting plans which provide for significant
17economic development over a large geographic area, and to
18applicants who currently operate non-gambling riverboats in
19Illinois. The Board shall review all applications for owners
20licenses, and shall inform each applicant of the Board's
21decision. The Board may grant an owners license to an applicant
22that has not submitted the highest license bid, but if it does
23not select the highest bidder, the Board shall issue a written
24decision explaining why another applicant was selected and
25identifying the factors set forth in this Section that favored
26the winning bidder. The fee for issuance or renewal of a

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1license pursuant to this subsection (e) shall be $250,000.
2 (e-5) In addition to licenses authorized under subsection
3(e) of this Section:
4 (1) the Board may issue one owners license authorizing
5 the conduct of casino gambling in the City of Chicago;
6 (2) the Board may issue one owners license authorizing
7 the conduct of riverboat gambling in the City of Danville;
8 (3) the Board may issue one owners license authorizing
9 the conduct of riverboat gambling located in the City of
10 Waukegan;
11 (4) the Board may issue one owners license authorizing
12 the conduct of riverboat gambling in the City of Rockford;
13 (5) the Board may issue one owners license authorizing
14 the conduct of riverboat gambling in a municipality that is
15 wholly or partially located in one of the following
16 townships of Cook County: Bloom, Bremen, Calumet, Rich,
17 Thornton, or Worth Township; and
18 (6) the Board may issue one owners license authorizing
19 the conduct of riverboat gambling in the unincorporated
20 area of Williamson County adjacent to the Big Muddy River.
21 Except for the license authorized under paragraph (1), each
22application for a license pursuant to this subsection (e-5)
23shall be submitted to the Board no later than 120 days after
24June 28, 2019 (the effective date of Public Act 101-31) this
25amendatory Act of the 101st General Assembly. All applications
26for a license under this subsection (e-5) shall include the

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1nonrefundable application fee and the nonrefundable background
2investigation fee as provided in subsection (d) of Section 6 of
3this Act. In the event that an applicant submits an application
4for a license pursuant to this subsection (e-5) prior to June
528, 2019 (the effective date of Public Act 101-31) this
6amendatory Act of the 101st General Assembly, such applicant
7shall submit the nonrefundable application fee and background
8investigation fee as provided in subsection (d) of Section 6 of
9this Act no later than 6 months after June 28, 2019 (the
10effective date of Public Act 101-31) this amendatory Act of the
11101st General Assembly.
12 The Board shall consider issuing a license pursuant to
13paragraphs (1) through (6) of this subsection only after the
14corporate authority of the municipality or the county board of
15the county in which the riverboat or casino shall be located
16has certified to the Board the following:
17 (i) that the applicant has negotiated with the
18 corporate authority or county board in good faith;
19 (ii) that the applicant and the corporate authority or
20 county board have mutually agreed on the permanent location
21 of the riverboat or casino;
22 (iii) that the applicant and the corporate authority or
23 county board have mutually agreed on the temporary location
24 of the riverboat or casino;
25 (iv) that the applicant and the corporate authority or
26 the county board have mutually agreed on the percentage of

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1 revenues that will be shared with the municipality or
2 county, if any;
3 (v) that the applicant and the corporate authority or
4 county board have mutually agreed on any zoning, licensing,
5 public health, or other issues that are within the
6 jurisdiction of the municipality or county; and
7 (vi) that the corporate authority or county board has
8 passed a resolution or ordinance in support of the
9 riverboat or casino in the municipality or county.
10 At least 7 days before the corporate authority of a
11municipality or county board of the county submits a
12certification to the Board concerning items (i) through (vi) of
13this subsection, it shall hold a public hearing to discuss
14items (i) through (vi), as well as any other details concerning
15the proposed riverboat or casino in the municipality or county.
16The corporate authority or county board must subsequently
17memorialize the details concerning the proposed riverboat or
18casino in a resolution that must be adopted by a majority of
19the corporate authority or county board before any
20certification is sent to the Board. The Board shall not alter,
21amend, change, or otherwise interfere with any agreement
22between the applicant and the corporate authority of the
23municipality or county board of the county regarding the
24location of any temporary or permanent facility.
25 In addition, within 10 days after June 28, 2019 (the
26effective date of Public Act 101-31) this amendatory Act of the

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1101st General Assembly, the Board, with consent and at the
2expense of the City of Chicago, shall select and retain the
3services of a nationally recognized casino gaming feasibility
4consultant. Within 45 days after June 28, 2019 (the effective
5date of Public Act 101-31) this amendatory Act of the 101st
6General Assembly, the consultant shall prepare and deliver to
7the Board a study concerning the feasibility of, and the
8ability to finance, a casino in the City of Chicago. The
9feasibility study shall be delivered to the Mayor of the City
10of Chicago, the Governor, the President of the Senate, and the
11Speaker of the House of Representatives. Ninety days after
12receipt of the feasibility study, the Board shall make a
13determination, based on the results of the feasibility study,
14whether to recommend to the General Assembly that the terms of
15the license under paragraph (1) of this subsection (e-5) should
16be modified. The Board may begin accepting applications for the
17owners license under paragraph (1) of this subsection (e-5)
18upon the determination to issue such an owners license.
19 In addition, prior to the Board issuing the owners license
20authorized under paragraph (4) of subsection (e-5), an impact
21study shall be completed to determine what location in the city
22will provide the greater impact to the region, including the
23creation of jobs and the generation of tax revenue.
24 (e-10) The licenses authorized under subsection (e-5) of
25this Section shall be issued within 12 months after the date
26the license application is submitted. If the Board does not

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1issue the licenses within that time period, then the Board
2shall give a written explanation to the applicant as to why it
3has not reached a determination and when it reasonably expects
4to make a determination. The fee for the issuance or renewal of
5a license issued pursuant to this subsection (e-10) shall be
6$250,000. Additionally, a licensee located outside of Cook
7County shall pay a minimum initial fee of $17,500 per gaming
8position, and a licensee located in Cook County shall pay a
9minimum initial fee of $30,000 per gaming position. The initial
10fees payable under this subsection (e-10) shall be deposited
11into the Rebuild Illinois Projects Fund.
12 (e-15) Each licensee of a license authorized under
13subsection (e-5) of this Section shall make a reconciliation
14payment 3 years after the date the licensee begins operating in
15an amount equal to 75% of the adjusted gross receipts for the
16most lucrative 12-month period of operations, minus an amount
17equal to the initial payment per gaming position paid by the
18specific licensee. Each licensee shall pay a $15,000,000
19reconciliation fee upon issuance of an owners license. If this
20calculation results in a negative amount, then the licensee is
21not entitled to any reimbursement of fees previously paid. This
22reconciliation payment may be made in installments over a
23period of no more than 2 years, subject to Board approval. Any
24installment payments shall include an annual market interest
25rate as determined by the Board. All payments by licensees
26under this subsection (e-15) shall be deposited into the

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1Rebuild Illinois Projects Fund.
2 (e-20) In addition to any other revocation powers granted
3to the Board under this Act, the Board may revoke the owners
4license of a licensee which fails to begin conducting gambling
5within 15 months of receipt of the Board's approval of the
6application if the Board determines that license revocation is
7in the best interests of the State.
8 (f) The first 10 owners licenses issued under this Act
9shall permit the holder to own up to 2 riverboats and equipment
10thereon for a period of 3 years after the effective date of the
11license. Holders of the first 10 owners licenses must pay the
12annual license fee for each of the 3 years during which they
13are authorized to own riverboats.
14 (g) Upon the termination, expiration, or revocation of each
15of the first 10 licenses, which shall be issued for a 3-year 3
16year period, all licenses are renewable annually upon payment
17of the fee and a determination by the Board that the licensee
18continues to meet all of the requirements of this Act and the
19Board's rules. However, for licenses renewed on or after May 1,
201998, renewal shall be for a period of 4 years, unless the
21Board sets a shorter period.
22 (h) An owners license, except for an owners license issued
23under subsection (e-5) of this Section, shall entitle the
24licensee to own up to 2 riverboats.
25 An owners licensee of a casino or riverboat that is located
26in the City of Chicago pursuant to paragraph (1) of subsection

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1(e-5) of this Section shall limit the number of gaming
2positions to 4,000 for such owner. An owners licensee
3authorized under subsection (e) or paragraph (2), (3), (4), or
4(5) of subsection (e-5) of this Section shall limit the number
5of gaming positions to 2,000 for any such owners license. An
6owners licensee authorized under paragraph (6) of subsection
7(e-5) of this Section shall limit the number of gaming
8positions to 1,200 for such owner. The initial fee for each
9gaming position obtained on or after June 28, 2019 (the
10effective date of Public Act 101-31) this amendatory Act of the
11101st General Assembly shall be a minimum of $17,500 for
12licensees not located in Cook County and a minimum of $30,000
13for licensees located in Cook County, in addition to the
14reconciliation payment, as set forth in subsection (e-15) of
15this Section. The fees under this subsection (h) shall be
16deposited into the Rebuild Illinois Projects Fund. The fees
17under this subsection (h) that are paid by an owners licensee
18authorized under subsection (e) shall be paid by July 1, 2020.
19 Additional gaming positions, up to the maximum limit of
202,000 gaming positions for qualifying owners licensees, may be
21obtained on, before, or after the effective date of this
22amendatory Act of the 101st General Assembly. Payment for
23additional gaming positions may be made on a monthly basis,
24subject to payment schedules specified by the Board.
25 Each owners licensee under subsection (e) of this Section
26shall reserve its gaming positions within 30 days after the

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

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1equal to the initial fee that the owners licensee paid per
2additional gaming position. For purposes of this subsection
3(h-5), "average gross receipts" means (i) the increase in
4adjusted gross receipts for the most lucrative 12-month period
5of operations over the adjusted gross receipts for 2019,
6multiplied by (ii) the percentage derived by dividing the
7number of additional gaming positions that an owners licensee
8had obtained by the total number of gaming positions operated
9by the owners licensee. If this calculation results in a
10negative amount, then the owners licensee is not entitled to
11any reimbursement of fees previously paid. This reconciliation
12payment may be made in installments over a period of no more
13than 2 years, subject to Board approval. Any installment
14payments shall include an annual market interest rate as
15determined by the Board. These reconciliation payments shall be
16deposited into the Rebuild Illinois Projects Fund.
17 (i) A licensed owner is authorized to apply to the Board
18for and, if approved therefor, to receive all licenses from the
19Board necessary for the operation of a riverboat or casino,
20including a liquor license, a license to prepare and serve food
21for human consumption, and other necessary licenses. All use,
22occupation, and excise taxes which apply to the sale of food
23and beverages in this State and all taxes imposed on the sale
24or use of tangible personal property apply to such sales aboard
25the riverboat or in the casino.
26 (j) The Board may issue or re-issue a license authorizing a

HB5037- 21 -LRB101 17970 SMS 67407 b
1riverboat to dock in a municipality or approve a relocation
2under Section 11.2 only if, prior to the issuance or
3re-issuance of the license or approval, the governing body of
4the municipality in which the riverboat will dock has by a
5majority vote approved the docking of riverboats in the
6municipality. The Board may issue or re-issue a license
7authorizing a riverboat to dock in areas of a county outside
8any municipality or approve a relocation under Section 11.2
9only if, prior to the issuance or re-issuance of the license or
10approval, the governing body of the county has by a majority
11vote approved of the docking of riverboats within such areas.
12 (k) An owners licensee may conduct land-based gambling
13operations upon approval by the Board and payment of a fee of
14$250,000, which shall be deposited into the State Gaming Fund.
15 (l) An owners licensee may conduct gaming at a temporary
16facility pending the construction of a permanent facility or
17the remodeling or relocation of an existing facility to
18accommodate gaming participants for up to 24 months after the
19temporary facility begins to conduct gaming. Upon request by an
20owners licensee and upon a showing of good cause by the owners
21licensee, the Board shall extend the period during which the
22licensee may conduct gaming at a temporary facility by up to 12
23months. The Board shall make rules concerning the conduct of
24gaming from temporary facilities.
25(Source: P.A. 100-391, eff. 8-25-17; 100-1152, eff. 12-14-18;
26101-31, eff. 6-28-19; revised 9-20-19.)

HB5037- 22 -LRB101 17970 SMS 67407 b
1 (230 ILCS 10/7.6)
2 Sec. 7.6. Business enterprise program.
3 (a) For the purposes of this Section, the terms "minority",
4"minority-owned business", "woman", "women-owned business",
5"person with a disability", and "business owned by a person
6with a disability" have the meanings ascribed to them in the
7Business Enterprise for Minorities, Women, and Persons with
8Disabilities Act.
9 (b) The Board shall, by rule, establish goals for the award
10of contracts by each owners licensee to businesses owned by
11minorities, women, and persons with disabilities, expressed as
12percentages of an owners licensee's total dollar amount of
13contracts awarded during each calendar year. Each owners
14licensee must make every effort to meet the goals established
15by the Board pursuant to this Section. When setting the goals
16for the award of contracts, the Board shall not include
17contracts where: (1) any purchasing mandates would be dependent
18upon the availability of minority-owned businesses,
19women-owned businesses, and businesses owned by persons with
20disabilities ready, willing, and able with capacity to provide
21quality goods and services to a gaming operation at reasonable
22prices; (2) there are no or a limited number of licensed
23suppliers as defined by this Act for the goods or services
24provided to the licensee; (3) the licensee or its parent
25company owns a company that provides the goods or services; or

HB5037- 23 -LRB101 17970 SMS 67407 b
1(4) the goods or services are provided to the licensee by a
2publicly traded company.
3 (c) Each owners licensee shall file with the Board an
4annual report of its utilization of minority-owned businesses,
5women-owned businesses, and businesses owned by persons with
6disabilities during the preceding calendar year. The reports
7shall include a self-evaluation of the efforts of the owners
8licensee to meet its goals under this Section.
9 (c-5) The Board shall, by rule, establish goals for the
10award of contracts by each owners licensee to businesses owned
11by veterans of service in the armed forces of the United
12States, expressed as percentages of an owners licensee's total
13dollar amount of contracts awarded during each calendar year.
14When setting the goals for the award of contracts, the Board
15shall not include contracts where: (1) any purchasing mandates
16would be dependent upon the availability of veteran-owned
17businesses ready, willing, and able with capacity to provide
18quality goods and services to a gaming operation at reasonable
19prices; (2) there are no or a limited number of licensed
20suppliers as defined in this Act for the goods or services
21provided to the licensee; (3) the licensee or its parent
22company owns a company that provides the goods or services; or
23(4) the goods or services are provided to the licensee by a
24publicly traded company.
25 Each owners licensee shall file with the Board an annual
26report of its utilization of veteran-owned businesses during

HB5037- 24 -LRB101 17970 SMS 67407 b
1the preceding calendar year. The reports shall include a
2self-evaluation of the efforts of the owners licensee to meet
3its goals under this Section.
4 (d) The owners licensee shall have the right to request a
5waiver from the requirements of this Section. The Board shall
6grant the waiver where the owners licensee demonstrates that
7there has been made a good faith effort to comply with the
8goals for participation by minority-owned businesses,
9women-owned businesses, businesses owned by persons with
10disabilities, and veteran-owned businesses.
11 (e) If the Board determines that its goals and policies are
12not being met by any owners licensee, then the Board may:
13 (1) adopt remedies for such violations; and
14 (2) recommend that the owners licensee provide
15 additional opportunities for participation by
16 minority-owned businesses, women-owned businesses,
17 businesses owned by persons with disabilities, and
18 veteran-owned businesses; such recommendations may
19 include, but shall not be limited to:
20 (A) assurances of stronger and better focused
21 solicitation efforts to obtain more minority-owned
22 businesses, women-owned businesses, businesses owned
23 by persons with disabilities, and veteran-owned
24 businesses as potential sources of supply;
25 (B) division of job or project requirements, when
26 economically feasible, into tasks or quantities to

HB5037- 25 -LRB101 17970 SMS 67407 b
1 permit participation of minority-owned businesses,
2 women-owned businesses, businesses owned by persons
3 with disabilities, and veteran-owned businesses;
4 (C) elimination of extended experience or
5 capitalization requirements, when programmatically
6 feasible, to permit participation of minority-owned
7 businesses, women-owned businesses, businesses owned
8 by persons with disabilities, and veteran-owned
9 businesses;
10 (D) identification of specific proposed contracts
11 as particularly attractive or appropriate for
12 participation by minority-owned businesses,
13 women-owned businesses, businesses owned by persons
14 with disabilities, and veteran-owned businesses, such
15 identification to result from and be coupled with the
16 efforts of items (A) through (C); and
17 (E) implementation of regulations established for
18 the use of the sheltered market process.
19 (f) The Board shall file, no later than July 1 March 1 of
20each year, an annual report that shall detail the level of
21achievement toward the goals specified in this Section over the
223 most recent fiscal years. The annual report shall include,
23but need not be limited to:
24 (1) a summary detailing expenditures subject to the
25 goals, the actual goals specified, and the goals attained
26 by each owners licensee; and

HB5037- 26 -LRB101 17970 SMS 67407 b
1 (2) an analysis of the level of overall goal
2 achievement concerning purchases from minority-owned
3 businesses, women-owned businesses, businesses owned by
4 persons with disabilities, and veteran-owned businesses.
5(Source: P.A. 99-78, eff. 7-20-15; 100-391, eff. 8-25-17;
6100-1152, eff. 12-14-18.)
7 (230 ILCS 10/7.7)
8 Sec. 7.7. Organization gaming licenses.
9 (a) The Illinois Gaming Board shall award one organization
10gaming license to each person or entity having operating
11control of a racetrack that applies under Section 56 of the
12Illinois Horse Racing Act of 1975, subject to the application
13and eligibility requirements of this Section. Within 60 days
14after the effective date of this amendatory Act of the 101st
15General Assembly, a person or entity having operating control
16of a racetrack may submit an application for an organization
17gaming license. The application shall be made on such forms as
18provided by the Board and shall contain such information as the
19Board prescribes, including, but not limited to, the identity
20of any racetrack at which gaming will be conducted pursuant to
21an organization gaming license, detailed information regarding
22the ownership and management of the applicant, and detailed
23personal information regarding the applicant. The application
24shall specify the number of gaming positions the applicant
25intends to use and the place where the organization gaming

HB5037- 27 -LRB101 17970 SMS 67407 b
1facility will operate. A person who knowingly makes a false
2statement on an application is guilty of a Class A misdemeanor.
3 Each applicant shall disclose the identity of every person
4or entity having a direct or indirect pecuniary interest
5greater than 1% in any racetrack with respect to which the
6license is sought. If the disclosed entity is a corporation,
7the applicant shall disclose the state of incorporation or
8registration and names of the corporate officers, directors,
9and stockholders. If the disclosed entity is a limited
10liability company, the applicant shall disclose the state of
11formation and names of all members. If the disclosed entity is
12a general or limited partnership, the applicant shall disclose
13the names of all partners, both general and limited. If the
14entity is a trust, the applicant shall disclose the names of
15all participants in the trust If the disclosed entity is a
16corporation, the applicant shall disclose the names and
17addresses of all officers, stockholders, and directors. If the
18disclosed entity is a limited liability company, the applicant
19shall disclose the names and addresses of all members and
20managers. If the disclosed entity is a partnership, the
21applicant shall disclose the names and addresses of all
22partners, both general and limited. If the disclosed entity is
23a trust, the applicant shall disclose the names and addresses
24of all beneficiaries.
25 An application shall be filed and considered in accordance
26with the rules of the Board. Each application for an

HB5037- 28 -LRB101 17970 SMS 67407 b
1organization gaming license shall include a nonrefundable
2application fee of $250,000. In addition, a nonrefundable fee
3of $50,000 shall be paid at the time of filing to defray the
4costs associated with background investigations conducted by
5the Board. If the costs of the background investigation exceed
6$50,000, the applicant shall pay the additional amount to the
7Board within 7 days after a request by the Board. If the costs
8of the investigation are less than $50,000, the applicant shall
9receive a refund of the remaining amount. All information,
10records, interviews, reports, statements, memoranda, or other
11data supplied to or used by the Board in the course of this
12review or investigation of an applicant for an organization
13gaming license under this Act shall be privileged and strictly
14confidential and shall be used only for the purpose of
15evaluating an applicant for an organization gaming license or a
16renewal. Such information, records, interviews, reports,
17statements, memoranda, or other data shall not be admissible as
18evidence nor discoverable in any action of any kind in any
19court or before any tribunal, board, agency or person, except
20for any action deemed necessary by the Board. The application
21fee shall be deposited into the State Gaming Fund.
22 Any applicant or key person, including the applicant's
23owners, officers, directors (if a corporation), managers and
24members (if a limited liability company), and partners (if a
25partnership), for an organization gaming license shall have his
26or her fingerprints submitted to the Department of State Police

HB5037- 29 -LRB101 17970 SMS 67407 b
1in an electronic format that complies with the form and manner
2for requesting and furnishing criminal history record
3information as prescribed by the Department of State Police.
4These fingerprints shall be checked against the Department of
5State Police and Federal Bureau of Investigation criminal
6history record databases now and hereafter filed, including,
7but not limited to, civil, criminal, and latent fingerprint
8databases. The Department of State Police shall charge
9applicants a fee for conducting the criminal history records
10check, which shall be deposited into the State Police Services
11Fund and shall not exceed the actual cost of the records check.
12The Department of State Police shall furnish, pursuant to
13positive identification, records of Illinois criminal history
14to the Department.
15 (b) The Board shall determine within 120 days after
16receiving an application for an organization gaming license
17whether to grant an organization gaming license to the
18applicant. If the Board does not make a determination within
19that time period, then the Board shall give a written
20explanation to the applicant as to why it has not reached a
21determination and when it reasonably expects to make a
22determination.
23 The organization gaming licensee shall purchase up to the
24amount of gaming positions authorized under this Act within 120
25days after receiving its organization gaming license. If an
26organization gaming licensee is prepared to purchase the gaming

HB5037- 30 -LRB101 17970 SMS 67407 b
1positions, but is temporarily prohibited from doing so by order
2of a court of competent jurisdiction or the Board, then the
3120-day period is tolled until a resolution is reached.
4 An organization gaming license shall authorize its holder
5to conduct gaming under this Act at its racetracks on the same
6days of the year and hours of the day that owners licenses are
7allowed to operate under approval of the Board.
8 An organization gaming license and any renewal of an
9organization gaming license shall authorize gaming pursuant to
10this Section for a period of 4 years. The fee for the issuance
11or renewal of an organization gaming license shall be $250,000.
12 All payments by licensees under this subsection (b) shall
13be deposited into the Rebuild Illinois Projects Fund.
14 (c) To be eligible to conduct gaming under this Section, a
15person or entity having operating control of a racetrack must
16(i) obtain an organization gaming license, (ii) hold an
17organization license under the Illinois Horse Racing Act of
181975, (iii) hold an inter-track wagering license, (iv) pay an
19initial fee of $30,000 per gaming position from organization
20gaming licensees where gaming is conducted in Cook County and,
21except as provided in subsection (c-5), $17,500 for
22organization gaming licensees where gaming is conducted
23outside of Cook County before beginning to conduct gaming plus
24make the reconciliation payment required under subsection (k),
25(v) conduct live racing in accordance with subsections (e-1),
26(e-2), and (e-3) of Section 20 of the Illinois Horse Racing Act

HB5037- 31 -LRB101 17970 SMS 67407 b
1of 1975, (vi) meet the requirements of subsection (a) of
2Section 56 of the Illinois Horse Racing Act of 1975, (vii) for
3organization licensees conducting standardbred race meetings,
4keep backstretch barns and dormitories open and operational
5year-round unless a lesser schedule is mutually agreed to by
6the organization licensee and the horsemen association racing
7at that organization licensee's race meeting, (viii) for
8organization licensees conducting thoroughbred race meetings,
9the organization licensee must maintain accident medical
10expense liability insurance coverage of $1,000,000 for
11jockeys, and (ix) meet all other requirements of this Act that
12apply to owners licensees.
13 An organization gaming licensee may enter into a joint
14venture with a licensed owner to own, manage, conduct, or
15otherwise operate the organization gaming licensee's
16organization gaming facilities, unless the organization gaming
17licensee has a parent company or other affiliated company that
18is, directly or indirectly, wholly owned by a parent company
19that is also licensed to conduct organization gaming, casino
20gaming, or their equivalent in another state.
21 All payments by licensees under this subsection (c) shall
22be deposited into the Rebuild Illinois Projects Fund.
23 (c-5) A person or entity having operating control of a
24racetrack located in Madison County shall only pay the initial
25fees specified in subsection (c) for 540 of the gaming
26positions authorized under the license.

HB5037- 32 -LRB101 17970 SMS 67407 b
1 (d) A person or entity is ineligible to receive an
2organization gaming license if:
3 (1) the person or entity has been convicted of a felony
4 under the laws of this State, any other state, or the
5 United States, including a conviction under the Racketeer
6 Influenced and Corrupt Organizations Act;
7 (2) the person or entity has been convicted of any
8 violation of Article 28 of the Criminal Code of 2012, or
9 substantially similar laws of any other jurisdiction;
10 (3) the person or entity has submitted an application
11 for a license under this Act that contains false
12 information;
13 (4) the person is a member of the Board;
14 (5) a person defined in (1), (2), (3), or (4) of this
15 subsection (d) is an officer, director, or managerial
16 employee of the entity;
17 (6) the person or entity employs a person defined in
18 (1), (2), (3), or (4) of this subsection (d) who
19 participates in the management or operation of gambling
20 operations authorized under this Act; or
21 (7) a license of the person or entity issued under this
22 Act or a license to own or operate gambling facilities in
23 any other jurisdiction has been revoked.
24 (e) The Board may approve gaming positions pursuant to an
25organization gaming license statewide as provided in this
26Section. The authority to operate gaming positions under this

HB5037- 33 -LRB101 17970 SMS 67407 b
1Section shall be allocated as follows: up to 1,200 gaming
2positions for any organization gaming licensee in Cook County
3and up to 900 gaming positions for any organization gaming
4licensee outside of Cook County.
5 (f) Each applicant for an organization gaming license shall
6specify in its application for licensure the number of gaming
7positions it will operate, up to the applicable limitation set
8forth in subsection (e) of this Section. Any unreserved gaming
9positions that are not specified shall be forfeited and
10retained by the Board. For the purposes of this subsection (f),
11an organization gaming licensee that did not conduct live
12racing in 2010 and is located within 3 miles of the Mississippi
13River may reserve up to 900 positions and shall not be
14penalized under this Section for not operating those positions
15until it meets the requirements of subsection (e) of this
16Section, but such licensee shall not request unreserved gaming
17positions under this subsection (f) until its 900 positions are
18all operational.
19 Thereafter, the Board shall publish the number of
20unreserved gaming positions and shall accept requests for
21additional positions from any organization gaming licensee
22that initially reserved all of the positions that were offered.
23The Board shall allocate expeditiously the unreserved gaming
24positions to requesting organization gaming licensees in a
25manner that maximizes revenue to the State. The Board may
26allocate any such unused gaming positions pursuant to an open

HB5037- 34 -LRB101 17970 SMS 67407 b
1and competitive bidding process, as provided under Section 7.5
2of this Act. This process shall continue until all unreserved
3gaming positions have been purchased. All positions obtained
4pursuant to this process and all positions the organization
5gaming licensee specified it would operate in its application
6must be in operation within 18 months after they were obtained
7or the organization gaming licensee forfeits the right to
8operate those positions, but is not entitled to a refund of any
9fees paid. The Board may, after holding a public hearing, grant
10extensions so long as the organization gaming licensee is
11working in good faith to make the positions operational. The
12extension may be for a period of 6 months. If, after the period
13of the extension, the organization gaming licensee has not made
14the positions operational, then another public hearing must be
15held by the Board before it may grant another extension.
16 Unreserved gaming positions retained from and allocated to
17organization gaming licensees by the Board pursuant to this
18subsection (f) shall not be allocated to owners licensees under
19this Act.
20 For the purpose of this subsection (f), the unreserved
21gaming positions for each organization gaming licensee shall be
22the applicable limitation set forth in subsection (e) of this
23Section, less the number of reserved gaming positions by such
24organization gaming licensee, and the total unreserved gaming
25positions shall be the aggregate of the unreserved gaming
26positions for all organization gaming licensees.

HB5037- 35 -LRB101 17970 SMS 67407 b
1 (g) An organization gaming licensee is authorized to
2conduct the following at a racetrack:
3 (1) slot machine gambling;
4 (2) video game of chance gambling;
5 (3) gambling with electronic gambling games as defined
6 in this Act or defined by the Illinois Gaming Board; and
7 (4) table games.
8 (h) Subject to the approval of the Illinois Gaming Board,
9an organization gaming licensee may make modification or
10additions to any existing buildings and structures to comply
11with the requirements of this Act. The Illinois Gaming Board
12shall make its decision after consulting with the Illinois
13Racing Board. In no case, however, shall the Illinois Gaming
14Board approve any modification or addition that alters the
15grounds of the organization licensee such that the act of live
16racing is an ancillary activity to gaming authorized under this
17Section. Gaming authorized under this Section may take place in
18existing structures where inter-track wagering is conducted at
19the racetrack or a facility within 300 yards of the racetrack
20in accordance with the provisions of this Act and the Illinois
21Horse Racing Act of 1975.
22 (i) An organization gaming licensee may conduct gaming at a
23temporary facility pending the construction of a permanent
24facility or the remodeling or relocation of an existing
25facility to accommodate gaming participants for up to 24 months
26after the temporary facility begins to conduct gaming

HB5037- 36 -LRB101 17970 SMS 67407 b
1authorized under this Section. Upon request by an organization
2gaming licensee and upon a showing of good cause by the
3organization gaming licensee, the Board shall extend the period
4during which the licensee may conduct gaming authorized under
5this Section at a temporary facility by up to 12 months. The
6Board shall make rules concerning the conduct of gaming
7authorized under this Section from temporary facilities.
8 The gaming authorized under this Section may take place in
9existing structures where inter-track wagering is conducted at
10the racetrack or a facility within 300 yards of the racetrack
11in accordance with the provisions of this Act and the Illinois
12Horse Racing Act of 1975.
13 (i-5) Under no circumstances shall an organization gaming
14licensee conduct gaming at any State or county fair.
15 (j) The Illinois Gaming Board must adopt emergency rules in
16accordance with Section 5-45 of the Illinois Administrative
17Procedure Act as necessary to ensure compliance with the
18provisions of this amendatory Act of the 101st General Assembly
19concerning the conduct of gaming by an organization gaming
20licensee. The adoption of emergency rules authorized by this
21subsection (j) shall be deemed to be necessary for the public
22interest, safety, and welfare.
23 (k) Each organization gaming licensee who obtains gaming
24positions must make a reconciliation payment 3 years after the
25date the organization gaming licensee begins operating the
26positions in an amount equal to 75% of the difference between

HB5037- 37 -LRB101 17970 SMS 67407 b
1its adjusted gross receipts from gaming authorized under this
2Section and amounts paid to its purse accounts pursuant to item
3(1) of subsection (b) of Section 56 of the Illinois Horse
4Racing Act of 1975 for the 12-month period for which such
5difference was the largest, minus an amount equal to the
6initial per position fee paid by the organization gaming
7licensee. If this calculation results in a negative amount,
8then the organization gaming licensee is not entitled to any
9reimbursement of fees previously paid. This reconciliation
10payment may be made in installments over a period of no more
11than 2 years, subject to Board approval. Any installment
12payments shall include an annual market interest rate as
13determined by the Board.
14 All payments by licensees under this subsection (k) shall
15be deposited into the Rebuild Illinois Projects Fund.
16 (l) As soon as practical after a request is made by the
17Illinois Gaming Board, to minimize duplicate submissions by the
18applicant, the Illinois Racing Board must provide information
19on an applicant for an organization gaming license to the
20Illinois Gaming Board.
21(Source: P.A. 101-31, eff. 6-28-19; 101-597, eff. 12-6-19.)
22 (230 ILCS 10/8) (from Ch. 120, par. 2408)
23 Sec. 8. Suppliers licenses.
24 (a) The Board may issue a suppliers license to such
25persons, firms or corporations which apply therefor upon the

HB5037- 38 -LRB101 17970 SMS 67407 b
1payment of a non-refundable application fee set by the Board,
2upon a determination by the Board that the applicant is
3eligible for a suppliers license and upon payment of a $5,000
4annual license fee. Subject to the provisions of this Section,
5an applicant for a suppliers license that holds a license as a
6manufacturer, distributor, or supplier under the Video Gaming
7Act shall not be subject to additional Board investigation as a
8condition for a suppliers license under this Act, except by
9vote of the Board.
10 (b) The holder of a suppliers license is authorized to sell
11or lease, and to contract to sell or lease, gambling equipment
12and supplies to any licensee involved in the ownership or
13management of gambling operations.
14 (c) Gambling supplies and equipment may not be distributed
15unless supplies and equipment conform to standards adopted by
16rules of the Board.
17 (d) A person, firm or corporation is ineligible to receive
18a suppliers license if:
19 (1) the person has been convicted of a felony under the
20 laws of this State, any other state, or the United States;
21 (2) the person has been convicted of any violation of
22 Article 28 of the Criminal Code of 1961 or the Criminal
23 Code of 2012, or substantially similar laws of any other
24 jurisdiction;
25 (3) the person has submitted an application for a
26 license under this Act which contains false information;

HB5037- 39 -LRB101 17970 SMS 67407 b
1 (4) the person is a member of the Board;
2 (5) the entity is one in which a person defined in (1),
3 (2), (3) or (4), is an officer, director or managerial
4 employee;
5 (6) the firm or corporation employs a person who
6 participates in the management or operation of gambling
7 authorized under this Act;
8 (7) the license of the person, firm or corporation
9 issued under this Act, or a license to own or operate
10 gambling facilities in any other jurisdiction, has been
11 revoked.
12 (e) Any person that supplies any equipment, devices, or
13supplies to a licensed gambling operation must first obtain a
14suppliers license. A supplier shall furnish to the Board a list
15of all equipment, devices and supplies offered for sale or
16lease in connection with gambling games authorized under this
17Act. A supplier shall keep books and records for the furnishing
18of equipment, devices and supplies to gambling operations
19separate and distinct from any other business that the supplier
20might operate. A supplier shall file a quarterly return with
21the Board listing all sales and leases. A supplier shall
22permanently affix its name or a distinctive logo or other mark
23or design element identifying the manufacturer or supplier to
24all its equipment, devices, and supplies, except gaming chips
25without a value impressed, engraved, or imprinted on it, for
26gambling operations. The Board may waive this requirement for

HB5037- 40 -LRB101 17970 SMS 67407 b
1any specific product or products if it determines that the
2requirement is not necessary to protect the integrity of the
3game. Items purchased from a licensed supplier may continue to
4be used even though the supplier subsequently changes its name,
5distinctive logo, or other mark or design element; undergoes a
6change in ownership; or ceases to be licensed as a supplier for
7any reason. Any supplier's equipment, devices or supplies which
8are used by any person in an unauthorized gambling operation
9shall be forfeited to the State. A holder of an owners license
10or an organization gaming license may own its own equipment,
11devices and supplies. Each holder of an owners license or an
12organization gaming license under the Act shall file an annual
13report listing its inventories of gambling equipment, devices
14and supplies.
15 (f) Any person who knowingly makes a false statement on an
16application is guilty of a Class A misdemeanor.
17 (g) Any gambling equipment, devices and supplies provided
18by any licensed supplier may either be repaired on the
19riverboat, in the casino, or at the organization gaming
20facility or removed from the riverboat, casino, or organization
21gaming facility to a facility owned by the holder of an owners
22license, organization gaming license, or suppliers license for
23repair.
24(Source: P.A. 101-31, eff. 6-28-19.)
25 Section 10. The Video Gaming Act is amended by changing

HB5037- 41 -LRB101 17970 SMS 67407 b
1Sections 15 and 80 as follows:
2 (230 ILCS 40/15)
3 Sec. 15. Minimum requirements for licensing and
4registration. Every video gaming terminal offered for play
5shall first be tested and approved pursuant to the rules of the
6Board, and each video gaming terminal offered in this State for
7play shall conform to an approved model. For the examination of
8video gaming machines and associated equipment as required by
9this Section, the Board shall utilize the services of
10independent outside testing laboratories that have been
11accredited in accordance with ISO/IEC 17025 by an accreditation
12body that is a signatory to the International Laboratory
13Accreditation Cooperation Mutual Recognition Agreement
14signifying they are qualified to perform such examinations.
15Notwithstanding any law to the contrary, the Board shall
16consider the licensing of independent outside testing
17laboratory applicants in accordance with procedures
18established by the Board by rule. The Board shall not withhold
19its approval of an independent outside testing laboratory
20license applicant that has been accredited as required by this
21Section and is licensed in gaming jurisdictions comparable to
22Illinois. Upon the finalization of required rules, the Board
23shall license independent testing laboratories and accept the
24test reports of any licensed testing laboratory of the video
25gaming machine's or associated equipment manufacturer's

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1choice, notwithstanding the existence of contracts between the
2Board and any independent testing laboratory. Every video
3gaming terminal offered in this State for play must meet
4minimum standards approved by the Board. Each approved model
5shall, at a minimum, meet the following criteria:
6 (1) It must conform to all requirements of federal law
7 and regulations, including FCC Class A Emissions
8 Standards.
9 (2) It must theoretically pay out a mathematically
10 demonstrable percentage during the expected lifetime of
11 the machine of all amounts played, which must not be less
12 than 80%. The Board shall establish a maximum payout
13 percentage for approved models by rule. Video gaming
14 terminals that may be affected by skill must meet this
15 standard when using a method of play that will provide the
16 greatest return to the player over a period of continuous
17 play.
18 (3) It must use a random selection process to determine
19 the outcome of each play of a game. The random selection
20 process must meet 99% confidence limits using a standard
21 chi-squared test for (randomness) goodness of fit.
22 (4) It must display an accurate representation of the
23 game outcome.
24 (5) It must not automatically alter pay tables or any
25 function of the video gaming terminal based on internal
26 computation of hold percentage or have any means of

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1 manipulation that affects the random selection process or
2 probabilities of winning a game.
3 (6) It must not be adversely affected by static
4 discharge or other electromagnetic interference.
5 (7) It must be capable of detecting and displaying the
6 following conditions during idle states or on demand: power
7 reset; door open; and door just closed.
8 (8) It must have the capacity to display complete play
9 history (outcome, intermediate play steps, credits
10 available, bets placed, credits paid, and credits cashed
11 out) for the most recent game played and 10 games prior
12 thereto.
13 (9) The theoretical payback percentage of a video
14 gaming terminal must not be capable of being changed
15 without making a hardware or software change in the video
16 gaming terminal, either on site or via the central
17 communications system.
18 (10) Video gaming terminals must be designed so that
19 replacement of parts or modules required for normal
20 maintenance does not necessitate replacement of the
21 electromechanical meters.
22 (11) It must have nonresettable meters housed in a
23 locked area of the terminal that keep a permanent record of
24 all cash inserted into the machine, all winnings made by
25 the terminal printer, credits played in for video gaming
26 terminals, and credits won by video gaming players. The

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1 video gaming terminal must provide the means for on-demand
2 display of stored information as determined by the Board.
3 (12) Electronically stored meter information required
4 by this Section must be preserved for a minimum of 180 days
5 after a power loss to the service.
6 (13) It must have one or more mechanisms that accept
7 cash in the form of bills. The mechanisms shall be designed
8 to prevent obtaining credits without paying by stringing,
9 slamming, drilling, or other means. If such attempts at
10 physical tampering are made, the video gaming terminal
11 shall suspend itself from operating until reset.
12 (14) It shall have accounting software that keeps an
13 electronic record which includes, but is not limited to,
14 the following: total cash inserted into the video gaming
15 terminal; the value of winning tickets claimed by players;
16 the total credits played; the total credits awarded by a
17 video gaming terminal; and pay back percentage credited to
18 players of each video game.
19 (15) It shall be linked by a central communications
20 system to provide auditing program information as approved
21 by the Board. The central communications system shall use a
22 standard industry protocol, as defined by the Gaming
23 Standards Association, and shall have the functionality to
24 enable the Board or its designee to activate or deactivate
25 individual gaming devices from the central communications
26 system. In no event may the communications system approved

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1 by the Board limit participation to only one manufacturer
2 of video gaming terminals by either the cost in
3 implementing the necessary program modifications to
4 communicate or the inability to communicate with the
5 central communications system. The Board may impose a fee,
6 payable in equal parts by (i) a licensed establishment,
7 licensed truck stop establishment, licensed large truck
8 stop establishment, licensed fraternal establishment, or
9 licensed veterans establishment; and (ii) a terminal
10 operator with which one of the entities listed in item (i)
11 has entered into a use agreement, to cover costs of
12 operating the central communications system.
13 (16) The Board, in its discretion, may require video
14 gaming terminals to display Amber Alert messages if the
15 Board makes a finding that it would be economically and
16 technically feasible and pose no risk to the integrity and
17 security of the central communications system and video
18 gaming terminals.
19 Licensed terminal handlers shall have access to video
20gaming terminals, including, but not limited to, logic door
21access, without the physical presence or supervision of the
22Board or its agent to perform, in coordination with and with
23project approval from the central communication system
24provider:
25 (i) the clearing of the random access memory and
26 reprogramming of the video gaming terminal;

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1 (ii) the installation of new video gaming terminal
2 software and software upgrades that have been approved by
3 the Board;
4 (iii) the placement, connection to the central
5 communication system, and go-live operation of video
6 gaming terminals at a licensed establishment, licensed
7 truck stop establishment, licensed large truck stop
8 establishment, licensed fraternal establishment, or
9 licensed veterans establishment;
10 (iv) the repair and maintenance of a video gaming
11 terminal located at a licensed establishment, licensed
12 truck stop establishment, licensed large truck stop
13 establishment, licensed fraternal establishment, or
14 licensed veterans establishment, including, but not
15 limited to, the replacement of the video gaming terminal
16 with a new video gaming terminal;
17 (v) the temporary movement, disconnection,
18 replacement, and reconnection of video gaming terminals to
19 allow for physical improvements and repairs at a licensed
20 establishment, licensed truck stop establishment, licensed
21 large truck stop establishment, licensed fraternal
22 establishment, or licensed veterans establishment, such as
23 replacement of flooring, interior repairs, and other
24 similar activities; and
25 (vi) such other functions as the Board may otherwise
26 authorize.

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1 The Board shall, at a licensed terminal operator's expense,
2cause all keys and other required devices to be provided to a
3terminal operator necessary to allow the licensed terminal
4handler access to the logic door to the terminal operator's
5video gaming terminals.
6 The Board may adopt rules to establish additional criteria
7to preserve the integrity and security of video gaming in this
8State. The central communications system vendor may be licensed
9as a video gaming terminal manufacturer or a video gaming
10terminal distributor, or both, but in no event shall the
11central communications system vendor be licensed as a video
12gaming terminal operator.
13 The Board shall not permit the development of information
14or the use by any licensee of gaming device or individual game
15performance data. Nothing in this Act shall inhibit or prohibit
16the Board from the use of gaming device or individual game
17performance data in its regulatory duties. The Board shall
18adopt rules to ensure that all licensees are treated and all
19licensees act in a non-discriminatory manner and develop
20processes and penalties to enforce those rules.
21(Source: P.A. 101-31, eff. 6-28-19.)
22 (230 ILCS 40/80)
23 Sec. 80. Applicability of Illinois Gambling Act. The
24provisions of the Illinois Gambling Act, and all rules
25promulgated thereunder, shall apply to the Video Gaming Act,

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1except where there is a conflict between the 2 Acts. In the
2event of a conflict between the 2 Acts, the provisions of the
3Illinois Gambling Act shall prevail. All current supplier
4licensees under the Illinois Gambling Act shall not be subject
5to additional Board investigation as a condition for licensure
6as manufacturers, distributors, or suppliers, except by vote of
7the Board, provided that the Board shall conduct a background
8investigation of current supplier licensees under the Illinois
9Gambling Act that have applied for licensure as manufacturers,
10distributors, or suppliers under this Act with respect to all
11topics of investigation listed in subsection (b) of Section 45
12of this Act for which the applicants have previously not been
13subject to Board investigation, and provided further that these
14applicants shall be required to disclose all information
15required to be submitted under subsection (c) of Section 45 of
16this Act that they have not previously disclosed to the Board
17be entitled to licensure under the Video Gaming Act as
18manufacturers, distributors, or suppliers without additional
19Board investigation or approval, except by vote of the Board;
20however, they are required to pay application and annual fees
21under this Act. All provisions of the Uniform Penalty and
22Interest Act shall apply, as far as practicable, to the subject
23matter of this Act to the same extent as if such provisions
24were included herein.
25(Source: P.A. 100-1152, eff. 12-14-18; 101-31, eff. 6-28-19.)
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