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1 | AN ACT concerning gaming.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Riverboat Gambling Act is amended by | ||||||||||||||||||||||||||||
5 | changing Sections 7 and 13 as follows:
| ||||||||||||||||||||||||||||
6 | (230 ILCS 10/7) (from Ch. 120, par. 2407)
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7 | Sec. 7. Owners Licenses.
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8 | (a) The Board shall issue owners licenses to persons, firms | ||||||||||||||||||||||||||||
9 | or
corporations which apply for such licenses upon payment to | ||||||||||||||||||||||||||||
10 | the Board of the
non-refundable license fee set by the Board, | ||||||||||||||||||||||||||||
11 | upon payment of a $25,000
license fee for the first year of | ||||||||||||||||||||||||||||
12 | operation and a $5,000 license fee for
each succeeding year and | ||||||||||||||||||||||||||||
13 | upon a determination by the Board that the
applicant is | ||||||||||||||||||||||||||||
14 | eligible for an owners license pursuant to this Act and the
| ||||||||||||||||||||||||||||
15 | rules of the Board. From May 26, 2006 ( For a period of 2 years | ||||||||||||||||||||||||||||
16 | beginning on the effective date of Public Act 94-804) until the | ||||||||||||||||||||||||||||
17 | effective date of this amendatory Act of the 95th General | ||||||||||||||||||||||||||||
18 | Assembly
this amendatory Act of the 94th General Assembly , as a | ||||||||||||||||||||||||||||
19 | condition of licensure and as an alternative source of payment | ||||||||||||||||||||||||||||
20 | for those funds payable under subsection (c-5) of Section 13 of | ||||||||||||||||||||||||||||
21 | the Riverboat Gambling Act, any owners licensee that holds or | ||||||||||||||||||||||||||||
22 | receives its owners license on or after the effective date of | ||||||||||||||||||||||||||||
23 | this amendatory Act of the 94th General Assembly, other than an |
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| |||||||
1 | owners licensee operating a riverboat with adjusted gross | ||||||
2 | receipts in calendar year 2004 of less than $200,000,000, must | ||||||
3 | pay into the Horse Racing Equity Trust Fund, in addition to any | ||||||
4 | other payments required under this Act, an amount equal to 3% | ||||||
5 | of the adjusted gross receipts received by the owners licensee. | ||||||
6 | Beginning on the effective date of this amendatory Act of the | ||||||
7 | 95th General Assembly, as a condition of licensure and as an | ||||||
8 | alternative source of payment for those funds available under | ||||||
9 | subsection (c-5) of Section 13, any owners licensee that holds | ||||||
10 | its owners license on or after the effective date of this | ||||||
11 | amendatory Act of the 95th General Assembly must pay into the | ||||||
12 | Horse Racing Equity Trust Fund, in addition to any other | ||||||
13 | payments required under this Act, an amount equal to 1% of | ||||||
14 | adjusted gross receipts from positions authorized under | ||||||
15 | subsection (h-5) of this Section. The adjusted gross receipts | ||||||
16 | of a licensed owner payable into the Horse Racing Equity Trust | ||||||
17 | Fund shall be computed for any tax reporting period in the | ||||||
18 | following manner: the number of positions of the licensed owner | ||||||
19 | initially offered by the Board under the authority of | ||||||
20 | subsection (h-5) of Section 7 shall be divided by the total | ||||||
21 | number of positions of the licensed owner, and this number | ||||||
22 | shall be multiplied by the total adjusted gross receipts of the | ||||||
23 | licensed owner during the tax reporting period.
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24 | The payments required under this Section shall be made by | ||||||
25 | the owners licensee to the State Treasurer no later than 3:00 | ||||||
26 | o'clock p.m. of the day after the day when the adjusted gross |
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| |||||||
1 | receipts were received by the owners licensee. A person, firm | ||||||
2 | or corporation is ineligible to receive
an owners license if:
| ||||||
3 | (1) the person has been convicted of a felony under the | ||||||
4 | laws of this
State, any other state, or the United States;
| ||||||
5 | (2) the person has been convicted of any violation of | ||||||
6 | Article 28 of the
Criminal Code of 1961, or substantially | ||||||
7 | similar laws of any other jurisdiction;
| ||||||
8 | (3) the person has submitted an application for a | ||||||
9 | license under this
Act which contains false information;
| ||||||
10 | (4) the person is
a member of the Board;
| ||||||
11 | (5) a person defined in (1), (2), (3) or (4) is an | ||||||
12 | officer, director or
managerial employee of the firm or | ||||||
13 | corporation;
| ||||||
14 | (6) the firm or corporation employs a person defined in | ||||||
15 | (1), (2), (3) or
(4) who participates in the management or | ||||||
16 | operation of gambling operations
authorized under this | ||||||
17 | Act;
| ||||||
18 | (7) (blank); or
| ||||||
19 | (8) a license of the person, firm or corporation issued | ||||||
20 | under
this Act, or a license to own or operate gambling | ||||||
21 | facilities
in any other jurisdiction, has been revoked.
| ||||||
22 | (b) In determining whether to grant an owners license to an | ||||||
23 | applicant, the
Board shall consider:
| ||||||
24 | (1) the character, reputation, experience and | ||||||
25 | financial integrity of the
applicants and of any other or | ||||||
26 | separate person that either:
|
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| |||||||
1 | (A) controls, directly or indirectly, such | ||||||
2 | applicant, or
| ||||||
3 | (B) is controlled, directly or indirectly, by such | ||||||
4 | applicant or by a
person which controls, directly or | ||||||
5 | indirectly, such applicant;
| ||||||
6 | (2) the facilities or proposed facilities for the | ||||||
7 | conduct of riverboat
gambling;
| ||||||
8 | (3) the highest prospective total revenue to be derived | ||||||
9 | by the State
from the conduct of riverboat gambling;
| ||||||
10 | (4) the extent to which the ownership of the applicant | ||||||
11 | reflects the
diversity of the State by including minority | ||||||
12 | persons and females
and the good faith affirmative action | ||||||
13 | plan of
each applicant to recruit, train and upgrade | ||||||
14 | minority persons and females in all employment | ||||||
15 | classifications;
| ||||||
16 | (5) the financial ability of the applicant to purchase | ||||||
17 | and maintain
adequate liability and casualty insurance;
| ||||||
18 | (6) whether the applicant has adequate capitalization | ||||||
19 | to provide and
maintain, for the duration of a license, a | ||||||
20 | riverboat;
| ||||||
21 | (7) the extent to which the applicant exceeds or meets | ||||||
22 | other standards
for the issuance of an owners license which | ||||||
23 | the Board may adopt by rule;
and
| ||||||
24 | (8) The amount of the applicant's license bid.
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25 | (c) Each owners license shall specify the place where | ||||||
26 | riverboats shall
operate and dock.
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1 | (d) Each applicant shall submit with his application, on | ||||||
2 | forms
provided by the Board, 2 sets of his fingerprints.
| ||||||
3 | (e) The Board may issue up to 10 licenses authorizing the | ||||||
4 | holders of such
licenses to own riverboats. In the application | ||||||
5 | for an owners license, the
applicant shall state the dock at | ||||||
6 | which the riverboat is based and the water
on which the | ||||||
7 | riverboat will be located. The Board shall issue 5 licenses to
| ||||||
8 | become effective not earlier than January 1, 1991. Three of | ||||||
9 | such licenses
shall authorize riverboat gambling on the | ||||||
10 | Mississippi River, or, with approval
by the municipality in | ||||||
11 | which the
riverboat was docked on August 7, 2003 and with Board | ||||||
12 | approval, be authorized to relocate to a new location,
in a
| ||||||
13 | municipality that (1) borders on the Mississippi River or is | ||||||
14 | within 5
miles of the city limits of a municipality that | ||||||
15 | borders on the Mississippi
River and (2), on August 7, 2003, | ||||||
16 | had a riverboat conducting riverboat gambling operations | ||||||
17 | pursuant to
a license issued under this Act; one of which shall | ||||||
18 | authorize riverboat
gambling from a home dock in the city of | ||||||
19 | East St. Louis. One other license
shall
authorize riverboat | ||||||
20 | gambling on
the Illinois River south of Marshall County. The | ||||||
21 | Board shall issue one
additional license to become effective | ||||||
22 | not earlier than March 1, 1992, which
shall authorize riverboat | ||||||
23 | gambling on the Des Plaines River in Will County.
The Board may | ||||||
24 | issue 4 additional licenses to become effective not
earlier | ||||||
25 | than
March 1, 1992. In determining the water upon which | ||||||
26 | riverboats will operate,
the Board shall consider the economic |
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| |||||||
1 | benefit which riverboat gambling confers
on the State, and | ||||||
2 | shall seek to assure that all regions of the State share
in the | ||||||
3 | economic benefits of riverboat gambling.
| ||||||
4 | In granting all licenses, the Board may give favorable | ||||||
5 | consideration to
economically depressed areas of the State, to | ||||||
6 | applicants presenting plans
which provide for significant | ||||||
7 | economic development over a large geographic
area, and to | ||||||
8 | applicants who currently operate non-gambling riverboats in
| ||||||
9 | Illinois.
The Board shall review all applications for owners | ||||||
10 | licenses,
and shall inform each applicant of the Board's | ||||||
11 | decision.
The Board may grant an owners license to an
applicant | ||||||
12 | that has not submitted the highest license bid, but if it does | ||||||
13 | not
select the highest bidder, the Board shall issue a written | ||||||
14 | decision explaining
why another
applicant was selected and | ||||||
15 | identifying the factors set forth in this Section
that favored | ||||||
16 | the winning bidder.
| ||||||
17 | In addition to any other revocation powers granted to the | ||||||
18 | Board under this
Act,
the Board may revoke the owners license | ||||||
19 | of a licensee which fails
to begin conducting gambling within | ||||||
20 | 15 months
of receipt of the
Board's approval of the application | ||||||
21 | if the Board determines that license
revocation is in the best | ||||||
22 | interests of the State.
| ||||||
23 | (f) The first 10 owners licenses issued under this Act | ||||||
24 | shall permit the
holder to own up to 2 riverboats and equipment | ||||||
25 | thereon
for a period of 3 years after the effective date of the | ||||||
26 | license. Holders of
the first 10 owners licenses must pay the |
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| |||||||
1 | annual license fee for each of
the 3
years during which they | ||||||
2 | are authorized to own riverboats.
| ||||||
3 | (g) Upon the termination, expiration, or revocation of each | ||||||
4 | of the first
10 licenses, which shall be issued for a 3 year | ||||||
5 | period, all licenses are
renewable annually upon payment of the | ||||||
6 | 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 May 1, | ||||||
9 | 1998, 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 up | ||||||
12 | to 2
riverboats. A licensee shall limit the number of gaming | ||||||
13 | positions
gambling participants to
1,200 for any such owners | ||||||
14 | license , plus any gaming positions acquired as a result of | ||||||
15 | subsection (h-5) .
A licensee may operate both of its riverboats | ||||||
16 | concurrently, provided that the
total number of gaming | ||||||
17 | positions
gambling participants on both riverboats does not | ||||||
18 | exceed
those gaming positions authorized under this subsection | ||||||
19 | (h) and subsection (h-5)
1,200 . Riverboats licensed to operate | ||||||
20 | on the
Mississippi River and the Illinois River south of | ||||||
21 | Marshall County shall
have an authorized capacity of at least | ||||||
22 | 500 persons. Any other riverboat
licensed under this Act shall | ||||||
23 | have an authorized capacity of at least 400
persons.
| ||||||
24 | (h-5) As soon as practical after the effective date of this | ||||||
25 | amendatory Act of the 95th General Assembly, the Board shall | ||||||
26 | offer a total of 6,000 gaming positions, in blocks of 250 each, |
| |||||||
| |||||||
1 | pursuant to an open and competitive bidding process. All | ||||||
2 | persons whose applications to bid are accepted by the Board | ||||||
3 | under subsection (h-6) may participate in the bidding process. | ||||||
4 | At each bidding level, the Board shall publicly disclose the | ||||||
5 | names of the bidders and their venture partners. The bidding | ||||||
6 | process shall occur promptly after the Board has approved or | ||||||
7 | disapproved as a bidder all persons that have timely submitted | ||||||
8 | their names to the Board as provided by subsection (h-6). The | ||||||
9 | Board shall promulgate emergency rules and establish | ||||||
10 | procedures governing the bidding process. Any person may bid | ||||||
11 | and be awarded the gaming positions, regardless of whether the | ||||||
12 | person is an owners licensee under this Act. However, a gaming | ||||||
13 | position acquired under this subsection must be in use on the | ||||||
14 | riverboat of an owners licensee within 2 years after the | ||||||
15 | purchase of the gaming position or the gaming position reverts | ||||||
16 | back to the Board, and the Board may re-issue the gaming | ||||||
17 | position pursuant to the process provided in this subsection | ||||||
18 | (h-5). Once the gaming position is in use on a riverboat, the | ||||||
19 | gaming position shall be treated as any other gaming position | ||||||
20 | on the riverboat for the purposes of regulation and computation | ||||||
21 | of adjusted gross receipts under this Act. Payment for all | ||||||
22 | gaming positions sold under this subsection shall be made to | ||||||
23 | the Board within 90 days after the date of a successful bid. | ||||||
24 | Except as provided in subsection (h-8), a person who purchases | ||||||
25 | a gaming position that is not in use on the riverboat of an | ||||||
26 | existing licensee within 2 years after the purchase of the |
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| |||||||
1 | gaming position shall be eligible for reimbursement for the | ||||||
2 | value of the position up to $100,000 for the position, payable | ||||||
3 | out of the State Gaming Fund.
| ||||||
4 | (h-6) No person shall be allowed to bid on a gaming | ||||||
5 | position under the provisions of subsection (h-5) without | ||||||
6 | receiving prior Board approval to engage in such bidding. | ||||||
7 | Persons seeking to bid shall submit a bidding application to | ||||||
8 | the Board under procedures established by the Board. The | ||||||
9 | deadline for application shall be 60 days after the effective | ||||||
10 | date of this amendatory Act of the 95th General Assembly. In | ||||||
11 | its investigations and evaluations of persons applying under | ||||||
12 | this subsection, the Board shall have all powers applicable to | ||||||
13 | applicants for licenses under Section 5 of this Act.
In | ||||||
14 | determining whether to grant a person approval to engage in | ||||||
15 | bidding under subsection (h-5), the Board shall consider: (A) | ||||||
16 | the character, reputation, and financial integrity of the | ||||||
17 | person and of any other person that (i) controls, directly or | ||||||
18 | indirectly, the person, (ii) is controlled, directly or | ||||||
19 | indirectly, by the person or by a person that controls, | ||||||
20 | directly or indirectly, the person; (iii) is a venture partner | ||||||
21 | of the person, or (iv) is a key person of the person, as | ||||||
22 | defined by Board rules; (B) the ability of the person to make | ||||||
23 | timely payment of the full amount of a successful bid; and (C) | ||||||
24 | such other criteria as the Board may establish by rule to | ||||||
25 | ensure maintenance of the credibility and integrity of gambling | ||||||
26 | operations and the regulatory process.
A person is ineligible |
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| |||||||
1 | to bid for positions under subsection (h-5) if: (i) the person | ||||||
2 | has been convicted of a felony offense, a violation of Article | ||||||
3 | 28 of the Criminal Code of 1961 or a similar statute of any | ||||||
4 | jurisdiction, or a crime involving dishonesty or moral | ||||||
5 | turpitude; (ii) the person makes a false statement on the | ||||||
6 | application, or has submitted an application for a license | ||||||
7 | under this Act that contains false information; (iii) the | ||||||
8 | person has had any license issued under this Act or a license | ||||||
9 | to own, operate, supply, or be employed by gambling facilities | ||||||
10 | in any other jurisdiction revoked, suspended for disciplinary | ||||||
11 | reasons, or involuntarily non-renewed; (iv) the person is a | ||||||
12 | member of the Board; (v) the person has engaged in spin-off or | ||||||
13 | contingent vendor activity prohibited under subsection (h-7); | ||||||
14 | or (vi) the person is an entity within which a person defined | ||||||
15 | in item (i), (ii), (iii), (iv), or (v) is an officer, director, | ||||||
16 | or managerial employee.
The Board shall publicly disclose the | ||||||
17 | names of persons, and their venture partners, who apply to bid | ||||||
18 | for positions authorized under subsection (h-5) and of persons, | ||||||
19 | and their venture partners, who are approved for bidding. A | ||||||
20 | person who knowingly makes a false statement on an application | ||||||
21 | to obtain a position as authorized by subsection (h-5) is | ||||||
22 | guilty of a Class A misdemeanor. | ||||||
23 | (h-7) A gaming position awarded under subsection (h-5) may | ||||||
24 | be subsequently sold, leased, or transferred, including by | ||||||
25 | inheritance, except that no sale or transfer shall occur until: | ||||||
26 | (i) the Board has approved the purchaser or transferee under |
| |||||||
| |||||||
1 | the criteria of subsection (h-6) and (ii) the Board has | ||||||
2 | approved the terms of the sale, lease, or transfer. In | ||||||
3 | approving or disapproving a sale, lease, or transfer, the Board | ||||||
4 | shall have all powers applicable to other transactions subject | ||||||
5 | to its approval under Section 5 of this Act. When the purchaser | ||||||
6 | or transferee is a current licensee under this Act, and the | ||||||
7 | Board has not decided that the licensee no longer meets the | ||||||
8 | criteria for license approval, then the Board's prior license | ||||||
9 | approval shall be sufficient for approval under this | ||||||
10 | subsection, except that the criteria for license approval must | ||||||
11 | encompass all of the criteria of subsection (h-6).
There shall | ||||||
12 | be no spin-off or contingent vendor activity associated with | ||||||
13 | the attempted or actual purchase or transfer of a gaming | ||||||
14 | position authorized by subsection (h-5). For purposes of this | ||||||
15 | subsection, "spin-off or contingent vendor activity" means any | ||||||
16 | bundling or linkage of the sale or transfer of a gaming | ||||||
17 | position with one or more supplier or service contracts, or | ||||||
18 | portions thereof. | ||||||
19 | (h-8) The Board shall have a continuing authority and duty | ||||||
20 | to ensure that persons holding positions awarded under | ||||||
21 | subsection (h-5) comply with the criteria for bidding | ||||||
22 | authorization established under subsection (h-6), and the | ||||||
23 | prohibition against spin-off or contingent vendor activity | ||||||
24 | established under subsection (h-7). In exercising this | ||||||
25 | authority and duty, the Board may obtain information from any | ||||||
26 | source, conduct investigations and hearings, and exercise any |
| |||||||
| |||||||
1 | of its powers applicable to licensees under Section 5 of this | ||||||
2 | Act. The Board may revoke the ownership of a person that it | ||||||
3 | finds, following hearing, to be an unsuitable owner under the | ||||||
4 | criteria of subsection (h-6). The Board must revoke the | ||||||
5 | ownership of a person that the Board finds to have been | ||||||
6 | convicted of a felony offense, a violation of Article 28 of the | ||||||
7 | Criminal Code of 1961 or a similar statute of any jurisdiction, | ||||||
8 | or a crime involving dishonesty or moral turpitude, to have | ||||||
9 | violated the prohibition against spin-off or contingent vendor | ||||||
10 | activity under subsection (h-7), to have engaged in collusive | ||||||
11 | activity that is intended to impair, or has the effect of | ||||||
12 | impairing, the effective bidding for or use of a position, or | ||||||
13 | to have made a false statement to the Board in connection with | ||||||
14 | this or any other application. A person whose ownership of a | ||||||
15 | position is revoked under this subsection shall not be eligible | ||||||
16 | for reimbursement for the revoked position, notwithstanding | ||||||
17 | the provisions of subsection (h-5). | ||||||
18 | (h-9) A licensed owner shall have full operational control | ||||||
19 | of a position authorized under subsection (h-5) that is in use | ||||||
20 | at one of its licensed gaming facilities and, with respect to | ||||||
21 | the use of the position, must comply with all provisions of | ||||||
22 | this Act, Board rules, and the Minimum Internal Operating | ||||||
23 | Standards promulgated by the Board.
| ||||||
24 | (h-10) Any collusive activity by a licensee that is | ||||||
25 | intended to, or has the effect of, impairing the effective | ||||||
26 | bidding for, or use of, a position, shall be grounds for |
| |||||||
| |||||||
1 | disciplinary action by the Board against the licensee. If the | ||||||
2 | Board finds that a violation of this subsection has occurred, | ||||||
3 | it may impose any penalty authorized against licensees under | ||||||
4 | Section 5 of this Act.
| ||||||
5 | (i) A licensed owner is authorized to apply to the Board | ||||||
6 | for and, if
approved therefor, to receive all licenses from the | ||||||
7 | Board necessary for the
operation of a riverboat, including a | ||||||
8 | liquor license, a license
to prepare and serve food for human | ||||||
9 | consumption, and other necessary
licenses. All use, occupation | ||||||
10 | and excise taxes which apply to the sale of
food and beverages | ||||||
11 | in this State and all taxes imposed on the sale or use
of | ||||||
12 | tangible personal property apply to such sales aboard the | ||||||
13 | riverboat.
| ||||||
14 | (j) The Board may issue or re-issue a license authorizing a | ||||||
15 | riverboat to
dock
in a municipality or approve a relocation | ||||||
16 | under Section 11.2 only if, prior
to the issuance or | ||||||
17 | re-issuance of
the license or approval, the governing body of | ||||||
18 | the municipality in which
the riverboat will dock has by a | ||||||
19 | majority vote approved the docking of
riverboats in the | ||||||
20 | municipality. The Board may issue or re-issue a license
| ||||||
21 | authorizing a
riverboat to dock in areas of a county outside | ||||||
22 | any municipality or approve a
relocation under Section 11.2 | ||||||
23 | only if, prior to the issuance or re-issuance
of the license
or | ||||||
24 | approval, the
governing body of the county has by a majority | ||||||
25 | vote approved of the docking of
riverboats within such areas.
| ||||||
26 | (Source: P.A. 93-28, eff. 6-20-03; 93-453, eff. 8-7-03; 94-667, |
| |||||||
| |||||||
1 | eff. 8-23-05; 94-804, eff. 5-26-06.)
| ||||||
2 | (230 ILCS 10/13) (from Ch. 120, par. 2413)
| ||||||
3 | Sec. 13. Wagering tax; rate; distribution.
| ||||||
4 | (a) Until January 1, 1998, a tax is imposed on the adjusted | ||||||
5 | gross
receipts received from gambling games authorized under | ||||||
6 | this Act at the rate of
20%.
| ||||||
7 | (a-1) From January 1, 1998 until July 1, 2002, a privilege | ||||||
8 | tax is
imposed on persons engaged in the business of conducting | ||||||
9 | riverboat gambling
operations, based on the adjusted gross | ||||||
10 | receipts received by a licensed owner
from gambling games | ||||||
11 | authorized under this Act at the following rates:
| ||||||
12 | 15% of annual adjusted gross receipts up to and | ||||||
13 | including $25,000,000;
| ||||||
14 | 20% of annual adjusted gross receipts in excess of | ||||||
15 | $25,000,000 but not
exceeding $50,000,000;
| ||||||
16 | 25% of annual adjusted gross receipts in excess of | ||||||
17 | $50,000,000 but not
exceeding $75,000,000;
| ||||||
18 | 30% of annual adjusted gross receipts in excess of | ||||||
19 | $75,000,000 but not
exceeding $100,000,000;
| ||||||
20 | 35% of annual adjusted gross receipts in excess of | ||||||
21 | $100,000,000.
| ||||||
22 | (a-2) From July 1, 2002 until July 1, 2003, a privilege tax | ||||||
23 | is imposed on
persons engaged in the business of conducting | ||||||
24 | riverboat gambling operations,
other than licensed managers | ||||||
25 | conducting riverboat gambling operations on behalf
of the |
| |||||||
| |||||||
1 | State, based on the adjusted gross receipts received by a | ||||||
2 | licensed
owner from gambling games authorized under this Act at | ||||||
3 | the following rates:
| ||||||
4 | 15% of annual adjusted gross receipts up to and | ||||||
5 | including $25,000,000;
| ||||||
6 | 22.5% of annual adjusted gross receipts in excess of | ||||||
7 | $25,000,000 but not
exceeding $50,000,000;
| ||||||
8 | 27.5% of annual adjusted gross receipts in excess of | ||||||
9 | $50,000,000 but not
exceeding $75,000,000;
| ||||||
10 | 32.5% of annual adjusted gross receipts in excess of | ||||||
11 | $75,000,000 but not
exceeding $100,000,000;
| ||||||
12 | 37.5% of annual adjusted gross receipts in excess of | ||||||
13 | $100,000,000 but not
exceeding $150,000,000;
| ||||||
14 | 45% of annual adjusted gross receipts in excess of | ||||||
15 | $150,000,000 but not
exceeding $200,000,000;
| ||||||
16 | 50% of annual adjusted gross receipts in excess of | ||||||
17 | $200,000,000.
| ||||||
18 | (a-3) Beginning July 1, 2003, a privilege tax is imposed on | ||||||
19 | persons engaged
in the business of conducting riverboat | ||||||
20 | gambling operations, other than
licensed managers conducting | ||||||
21 | riverboat gambling operations on behalf of the
State, based on | ||||||
22 | the adjusted gross receipts received by a licensed owner from
| ||||||
23 | gambling games authorized under this Act at the following | ||||||
24 | rates:
| ||||||
25 | 15% of annual adjusted gross receipts up to and | ||||||
26 | including $25,000,000;
|
| |||||||
| |||||||
1 | 27.5% of annual adjusted gross receipts in excess of | ||||||
2 | $25,000,000 but not
exceeding $37,500,000;
| ||||||
3 | 32.5% of annual adjusted gross receipts in excess of | ||||||
4 | $37,500,000 but not
exceeding $50,000,000;
| ||||||
5 | 37.5% of annual adjusted gross receipts in excess of | ||||||
6 | $50,000,000 but not
exceeding $75,000,000;
| ||||||
7 | 45% of annual adjusted gross receipts in excess of | ||||||
8 | $75,000,000 but not
exceeding $100,000,000;
| ||||||
9 | 50% of annual adjusted gross receipts in excess of | ||||||
10 | $100,000,000 but not
exceeding $250,000,000;
| ||||||
11 | 70% of annual adjusted gross receipts in excess of | ||||||
12 | $250,000,000.
| ||||||
13 | An amount equal to the amount of wagering taxes collected | ||||||
14 | under this
subsection (a-3) that are in addition to the amount | ||||||
15 | of wagering taxes that
would have been collected if the | ||||||
16 | wagering tax rates under subsection (a-2)
were in effect shall | ||||||
17 | be paid into the Common School Fund.
| ||||||
18 | The privilege tax imposed under this subsection (a-3) shall | ||||||
19 | no longer be
imposed beginning on the earlier of (i) July 1, | ||||||
20 | 2005; (ii) the first date
after June 20, 2003 that riverboat | ||||||
21 | gambling operations are conducted
pursuant to a dormant | ||||||
22 | license; or (iii) the first day that riverboat gambling
| ||||||
23 | operations are conducted under the authority of an owners | ||||||
24 | license that is in
addition to the 10 owners licenses initially | ||||||
25 | authorized under this Act.
For the purposes of this subsection | ||||||
26 | (a-3), the term "dormant license"
means an owners license that |
| |||||||
| |||||||
1 | is authorized by this Act under which no
riverboat gambling | ||||||
2 | operations are being conducted on June 20, 2003.
| ||||||
3 | (a-4) Beginning on the first day on which the tax imposed | ||||||
4 | under
subsection (a-3) is no longer imposed, a privilege tax is | ||||||
5 | imposed on persons
engaged in the business of conducting | ||||||
6 | riverboat gambling operations, other
than licensed managers | ||||||
7 | conducting riverboat gambling operations on behalf of
the | ||||||
8 | State, based on the adjusted gross receipts received by a | ||||||
9 | licensed owner
from gambling games authorized under this Act at | ||||||
10 | the following rates:
| ||||||
11 | 15% of annual adjusted gross receipts up to and | ||||||
12 | including $25,000,000;
| ||||||
13 | 22.5% of annual adjusted gross receipts in excess of | ||||||
14 | $25,000,000 but not
exceeding $50,000,000;
| ||||||
15 | 27.5% of annual adjusted gross receipts in excess of | ||||||
16 | $50,000,000 but not
exceeding $75,000,000;
| ||||||
17 | 32.5% of annual adjusted gross receipts in excess of | ||||||
18 | $75,000,000 but not
exceeding $100,000,000;
| ||||||
19 | 37.5% of annual adjusted gross receipts in excess of | ||||||
20 | $100,000,000 but not
exceeding $150,000,000;
| ||||||
21 | 45% of annual adjusted gross receipts in excess of | ||||||
22 | $150,000,000 but not
exceeding $200,000,000;
| ||||||
23 | 50% of annual adjusted gross receipts in excess of | ||||||
24 | $200,000,000.
| ||||||
25 | (a-8) Riverboat gambling operations conducted by a | ||||||
26 | licensed manager on
behalf of the State are not subject to the |
| |||||||
| |||||||
1 | tax imposed under this Section.
| ||||||
2 | (a-10) The taxes imposed by this Section shall be paid by | ||||||
3 | the licensed
owner to the Board not later than 3:00 o'clock | ||||||
4 | p.m. of the day after the day
when the wagers were made.
| ||||||
5 | (a-15) If the privilege tax imposed under subsection (a-3) | ||||||
6 | is no longer imposed pursuant to item (i) of the last paragraph | ||||||
7 | of subsection (a-3), then by June 15 of each year, each owners | ||||||
8 | licensee, other than an owners licensee that admitted 1,000,000 | ||||||
9 | persons or
fewer in calendar year 2004, must, in addition to | ||||||
10 | the payment of all amounts otherwise due under this Section, | ||||||
11 | pay to the Board a reconciliation payment in the amount, if | ||||||
12 | any, by which the licensed owner's base amount exceeds the | ||||||
13 | amount of net privilege tax paid by the licensed owner to the | ||||||
14 | Board in the then current State fiscal year. A licensed owner's | ||||||
15 | net privilege tax obligation due for the balance of the State | ||||||
16 | fiscal year shall be reduced up to the total of the amount paid | ||||||
17 | by the licensed owner in its June 15 reconciliation payment. | ||||||
18 | The obligation imposed by this subsection (a-15) is binding on | ||||||
19 | any person, firm, corporation, or other entity that acquires an | ||||||
20 | ownership interest in any such owners license. The obligation | ||||||
21 | imposed under this subsection (a-15) terminates on the earliest | ||||||
22 | of: (i) July 1, 2007, (ii) the first day after the effective | ||||||
23 | date of this amendatory Act of the 94th General Assembly that | ||||||
24 | riverboat gambling operations are conducted pursuant to a | ||||||
25 | dormant license, (iii) the first day that riverboat gambling | ||||||
26 | operations are conducted under the authority of an owners |
| |||||||
| |||||||
1 | license that is in addition to the 10 owners licenses initially | ||||||
2 | authorized under this Act, or (iv) the first day that a | ||||||
3 | licensee under the Illinois Horse Racing Act of 1975 conducts | ||||||
4 | gaming operations with slot machines or other electronic gaming | ||||||
5 | devices. The Board must reduce the obligation imposed under | ||||||
6 | this subsection (a-15) by an amount the Board deems reasonable | ||||||
7 | for any of the following reasons: (A) an act or acts of God, | ||||||
8 | (B) an act of bioterrorism or terrorism or a bioterrorism or | ||||||
9 | terrorism threat that was investigated by a law enforcement | ||||||
10 | agency, or (C) a condition beyond the control of the owners | ||||||
11 | licensee that does not result from any act or omission by the | ||||||
12 | owners licensee or any of its agents and that poses a hazardous | ||||||
13 | threat to the health and safety of patrons. If an owners | ||||||
14 | licensee pays an amount in excess of its liability under this | ||||||
15 | Section, the Board shall apply the overpayment to future | ||||||
16 | payments required under this Section. | ||||||
17 | For purposes of this subsection (a-15): | ||||||
18 | "Act of God" means an incident caused by the operation of | ||||||
19 | an extraordinary force that cannot be foreseen, that cannot be | ||||||
20 | avoided by the exercise of due care, and for which no person | ||||||
21 | can be held liable.
| ||||||
22 | "Base amount" means the following: | ||||||
23 | For a riverboat in Alton, $31,000,000.
| ||||||
24 | For a riverboat in East Peoria, $43,000,000.
| ||||||
25 | For the Empress riverboat in Joliet, $86,000,000.
| ||||||
26 | For a riverboat in Metropolis, $45,000,000.
|
| |||||||
| |||||||
1 | For the Harrah's riverboat in Joliet, $114,000,000.
| ||||||
2 | For a riverboat in Aurora, $86,000,000.
| ||||||
3 | For a riverboat in East St. Louis, $48,500,000.
| ||||||
4 | For a riverboat in Elgin, $198,000,000.
| ||||||
5 | "Dormant license" has the meaning ascribed to it in | ||||||
6 | subsection (a-3).
| ||||||
7 | "Net privilege tax" means all privilege taxes paid by a | ||||||
8 | licensed owner to the Board under this Section, less all | ||||||
9 | payments made from the State Gaming Fund pursuant to subsection | ||||||
10 | (b) of this Section. | ||||||
11 | The changes made to this subsection (a-15) by Public Act | ||||||
12 | 94-839
this amendatory Act of the 94th General Assembly are | ||||||
13 | intended to restate and clarify the intent of Public Act 94-673 | ||||||
14 | with respect to the amount of the payments required to be made | ||||||
15 | under this subsection by an owners licensee to the Board.
| ||||||
16 | (b) Until January 1, 1998, 25% of the tax revenue deposited | ||||||
17 | in the State
Gaming Fund under this Section shall be paid, | ||||||
18 | subject to appropriation by the
General Assembly, to the unit | ||||||
19 | of local government which is designated as the
home dock of the | ||||||
20 | riverboat. Beginning January 1, 1998, from the tax revenue
| ||||||
21 | deposited in the State Gaming Fund under this Section, an | ||||||
22 | amount equal to 5% of
adjusted gross receipts generated by a | ||||||
23 | riverboat shall be paid monthly, subject
to appropriation by | ||||||
24 | the General Assembly, to the unit of local government that
is | ||||||
25 | designated as the home dock of the riverboat. From the tax | ||||||
26 | revenue
deposited in the State Gaming Fund pursuant to |
| |||||||
| |||||||
1 | riverboat gambling operations
conducted by a licensed manager | ||||||
2 | on behalf of the State, an amount equal to 5%
of adjusted gross | ||||||
3 | receipts generated pursuant to those riverboat gambling
| ||||||
4 | operations shall be paid monthly,
subject to appropriation by | ||||||
5 | the General Assembly, to the unit of local
government that is | ||||||
6 | designated as the home dock of the riverboat upon which
those | ||||||
7 | riverboat gambling operations are conducted.
| ||||||
8 | (c) Appropriations, as approved by the General Assembly, | ||||||
9 | may be made
from the State Gaming Fund to the Department of | ||||||
10 | Revenue and the Department
of State Police for the | ||||||
11 | administration and enforcement of this Act, or to the
| ||||||
12 | Department of Human Services for the administration of programs | ||||||
13 | to treat
problem gambling.
| ||||||
14 | (c-5) Before May 26, 2006 ( the effective date of Public Act | ||||||
15 | 94-804)
this amendatory Act of the 94th General Assembly and | ||||||
16 | beginning 2 years after May 26, 2006 ( the effective date of | ||||||
17 | Public Act 94-804)
this amendatory Act of the 94th General | ||||||
18 | Assembly , after the payments required under subsections (b) and | ||||||
19 | (c) have been
made, an amount equal to 15% of the adjusted | ||||||
20 | gross receipts of (1) an owners
licensee that relocates | ||||||
21 | pursuant to Section 11.2,
(2) an owners licensee
conducting | ||||||
22 | riverboat gambling operations
pursuant to an
owners license | ||||||
23 | that is initially issued after June
25, 1999,
or (3) the first
| ||||||
24 | riverboat gambling operations conducted by a licensed manager | ||||||
25 | on behalf of the
State under Section 7.3,
whichever comes | ||||||
26 | first, shall be paid from the State
Gaming Fund into the Horse |
| |||||||
| |||||||
1 | Racing Equity Fund.
| ||||||
2 | (c-10) Each year the General Assembly shall appropriate | ||||||
3 | from the General
Revenue Fund to the Education Assistance Fund | ||||||
4 | an amount equal to the amount
paid into the Horse Racing Equity | ||||||
5 | Fund pursuant to subsection (c-5) in the
prior calendar year.
| ||||||
6 | (c-15) After the payments required under subsections (b), | ||||||
7 | (c), and (c-5)
have been made, an amount equal to 2% of the | ||||||
8 | adjusted gross receipts of (1)
an owners licensee that | ||||||
9 | relocates pursuant to Section 11.2, (2) an owners
licensee | ||||||
10 | conducting riverboat gambling operations pursuant to
an
owners | ||||||
11 | license that is initially issued after June 25, 1999,
or (3) | ||||||
12 | the first
riverboat gambling operations conducted by a licensed | ||||||
13 | manager on behalf of the
State under Section 7.3,
whichever | ||||||
14 | comes first, shall be paid, subject to appropriation
from the | ||||||
15 | General Assembly, from the State Gaming Fund to each home rule
| ||||||
16 | county with a population of over 3,000,000 inhabitants for the | ||||||
17 | purpose of
enhancing the county's criminal justice system.
| ||||||
18 | (c-20) Each year the General Assembly shall appropriate | ||||||
19 | from the General
Revenue Fund to the Education Assistance Fund | ||||||
20 | an amount equal to the amount
paid to each home rule county | ||||||
21 | with a population of over 3,000,000 inhabitants
pursuant to | ||||||
22 | subsection (c-15) in the prior calendar year.
| ||||||
23 | (c-25) After the payments required under subsections (b), | ||||||
24 | (c), (c-5) and
(c-15) have been made, an amount equal to 2% of | ||||||
25 | the
adjusted gross receipts of (1) an owners licensee
that
| ||||||
26 | relocates pursuant to Section 11.2, (2) an
owners
licensee |
| |||||||
| |||||||
1 | conducting riverboat gambling operations pursuant to
an
owners | ||||||
2 | license
that is initially issued after June 25, 1999,
or (3) | ||||||
3 | the first
riverboat gambling operations conducted by a licensed | ||||||
4 | manager on behalf of the
State under Section 7.3,
whichever
| ||||||
5 | comes first,
shall be paid from the State
Gaming Fund to | ||||||
6 | Chicago State University.
| ||||||
7 | (d) From time to time, the
Board shall transfer the | ||||||
8 | remainder of the funds
generated by this Act into the Education
| ||||||
9 | Assistance Fund, created by Public Act 86-0018, of the State of | ||||||
10 | 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 | (e-1) Notwithstanding the provisions of subsections (a) | ||||||
17 | through (e) of this Section, all tax revenues attributable to | ||||||
18 | the adjusted gross receipts of positions offered by the Board | ||||||
19 | under the authority of subsection (h-5) of Section 7 shall be | ||||||
20 | deposited into the Building Illinois for Tomorrow Fund. The | ||||||
21 | adjusted gross receipts of a licensed owner payable into the | ||||||
22 | Building Illinois for Tomorrow Fund shall be computed for any | ||||||
23 | tax reporting period in the following manner: the number of | ||||||
24 | positions of the licensed owner initially offered by the Board | ||||||
25 | under the authority of subsection (h-5) of Section 7 shall be | ||||||
26 | divided by the total number of positions of the licensed owner, |
| |||||||
| |||||||
1 | and this number shall be multiplied by the total adjusted gross | ||||||
2 | receipts of the licensed owner during the tax reporting period.
| ||||||
3 | (f) To the extent practicable, the Board shall administer | ||||||
4 | and collect the
wagering taxes imposed by this Section in a | ||||||
5 | manner consistent with the
provisions of Sections 4, 5, 5a, 5b, | ||||||
6 | 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
6c, 8, 9, and 10 of the | ||||||
7 | Retailers' Occupation Tax Act and Section 3-7 of the
Uniform | ||||||
8 | Penalty and Interest Act.
| ||||||
9 | (Source: P.A. 93-27, eff. 6-20-03; 93-28, eff. 6-20-03; 94-673, | ||||||
10 | eff. 8-23-05; 94-804, eff. 5-26-06; 94-839, eff. 6-6-06; | ||||||
11 | revised 8-3-06.)
| ||||||
12 | Section 10. The State Finance Act is amended by adding | ||||||
13 | Section 5.675 as follows: | ||||||
14 | (30 ILCS 105/5.675 new) | ||||||
15 | Sec. 5.675. The Build Illinois for Tomorrow Fund.
| ||||||
16 | Section 99. Effective date. This Act takes effect upon | ||||||
17 | becoming law.
|