State of Illinois
2015 and 2016


Introduced 2/17/2016, by Sen. Ira I. Silverstein


230 ILCS 10/4  from Ch. 120, par. 2404
230 ILCS 10/5  from Ch. 120, par. 2405

    Amends the Riverboat Gambling Act. Provides that the duties of the Illinois Gaming Board include the duty to adopt rules under which all fantasy sports gaming in the State shall be conducted. Defines "fantasy sports gaming".

LRB099 20458 AMC 44963 b






SB2843LRB099 20458 AMC 44963 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 Riverboat Gambling Act is amended by
5changing Sections 4 and 5 as follows:
6    (230 ILCS 10/4)  (from Ch. 120, par. 2404)
7    Sec. 4. Definitions. As used in this Act:
8    (a) "Board" means the Illinois Gaming Board.
9    (b) "Occupational license" means a license issued by the
10Board to a person or entity to perform an occupation which the
11Board has identified as requiring a license to engage in
12riverboat gambling in Illinois.
13    (c) "Gambling game" includes, but is not limited to,
14baccarat, twenty-one, poker, craps, slot machine, video game of
15chance, roulette wheel, klondike table, punchboard, faro
16layout, keno layout, numbers ticket, push card, jar ticket, or
17pull tab which is authorized by the Board as a wagering device
18under this Act.
19    (d) "Riverboat" means a self-propelled excursion boat, a
20permanently moored barge, or permanently moored barges that are
21permanently fixed together to operate as one vessel, on which
22lawful gambling is authorized and licensed as provided in this



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1    (e) "Managers license" means a license issued by the Board
2to a person or entity to manage gambling operations conducted
3by the State pursuant to Section 7.3.
4    (f) "Dock" means the location where a riverboat moors for
5the purpose of embarking passengers for and disembarking
6passengers from the riverboat.
7    (g) "Gross receipts" means the total amount of money
8exchanged for the purchase of chips, tokens or electronic cards
9by riverboat patrons.
10    (h) "Adjusted gross receipts" means the gross receipts less
11winnings paid to wagerers.
12    (i) "Cheat" means to alter the selection of criteria which
13determine the result of a gambling game or the amount or
14frequency of payment in a gambling game.
15    (j) (Blank).
16    (k) "Gambling operation" means the conduct of authorized
17gambling games upon a riverboat.
18    (l) "License bid" means the lump sum amount of money that
19an applicant bids and agrees to pay the State in return for an
20owners license that is re-issued on or after July 1, 2003.
21    (m) The terms "minority person", "female", and "person with
22a disability" shall have the same meaning as defined in Section
232 of the Business Enterprise for Minorities, Females, and
24Persons with Disabilities Act.
25    (n) "Fantasy sports gaming" means any gaming conducted over
26an Internet website in which game winnings are paid to



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1participants based on the outcomes of games played by virtual
2teams of real players of a professional sport, where such teams
3are assembled by such participants and the outcomes of games
4are determined by the statistical performance of such real
5players in actual games.
6(Source: P.A. 95-331, eff. 8-21-07; 96-1392, eff. 1-1-11.)
7    (230 ILCS 10/5)  (from Ch. 120, par. 2405)
8    Sec. 5. Gaming Board.
9    (a) (1) There is hereby established the Illinois Gaming
10Board, which shall have the powers and duties specified in this
11Act, and all other powers necessary and proper to fully and
12effectively execute this Act for the purpose of administering,
13regulating, and enforcing the system of riverboat gambling
14established by this Act. Its jurisdiction shall extend under
15this Act to every person, association, corporation,
16partnership and trust involved in riverboat gambling
17operations in the State of Illinois.
18    (2) The Board shall consist of 5 members to be appointed by
19the Governor with the advice and consent of the Senate, one of
20whom shall be designated by the Governor to be chairman. Each
21member shall have a reasonable knowledge of the practice,
22procedure and principles of gambling operations. Each member
23shall either be a resident of Illinois or shall certify that he
24will become a resident of Illinois before taking office. At
25least one member shall be experienced in law enforcement and



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1criminal investigation, at least one member shall be a
2certified public accountant experienced in accounting and
3auditing, and at least one member shall be a lawyer licensed to
4practice law in Illinois.
5    (3) The terms of office of the Board members shall be 3
6years, except that the terms of office of the initial Board
7members appointed pursuant to this Act will commence from the
8effective date of this Act and run as follows: one for a term
9ending July 1, 1991, 2 for a term ending July 1, 1992, and 2 for
10a term ending July 1, 1993. Upon the expiration of the
11foregoing terms, the successors of such members shall serve a
12term for 3 years and until their successors are appointed and
13qualified for like terms. Vacancies in the Board shall be
14filled for the unexpired term in like manner as original
15appointments. Each member of the Board shall be eligible for
16reappointment at the discretion of the Governor with the advice
17and consent of the Senate.
18    (4) Each member of the Board shall receive $300 for each
19day the Board meets and for each day the member conducts any
20hearing pursuant to this Act. Each member of the Board shall
21also be reimbursed for all actual and necessary expenses and
22disbursements incurred in the execution of official duties.
23    (5) No person shall be appointed a member of the Board or
24continue to be a member of the Board who is, or whose spouse,
25child or parent is, a member of the board of directors of, or a
26person financially interested in, any gambling operation



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1subject to the jurisdiction of this Board, or any race track,
2race meeting, racing association or the operations thereof
3subject to the jurisdiction of the Illinois Racing Board. No
4Board member shall hold any other public office. No person
5shall be a member of the Board who is not of good moral
6character or who has been convicted of, or is under indictment
7for, a felony under the laws of Illinois or any other state, or
8the United States.
9    (5.5) No member of the Board shall engage in any political
10activity. For the purposes of this Section, "political" means
11any activity in support of or in connection with any campaign
12for federal, State, or local elective office or any political
13organization, but does not include activities (i) relating to
14the support or opposition of any executive, legislative, or
15administrative action (as those terms are defined in Section 2
16of the Lobbyist Registration Act), (ii) relating to collective
17bargaining, or (iii) that are otherwise in furtherance of the
18person's official State duties or governmental and public
19service functions.
20    (6) Any member of the Board may be removed by the Governor
21for neglect of duty, misfeasance, malfeasance, or nonfeasance
22in office or for engaging in any political activity.
23    (7) Before entering upon the discharge of the duties of his
24office, each member of the Board shall take an oath that he
25will faithfully execute the duties of his office according to
26the laws of the State and the rules and regulations adopted



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1therewith and shall give bond to the State of Illinois,
2approved by the Governor, in the sum of $25,000. Every such
3bond, when duly executed and approved, shall be recorded in the
4office of the Secretary of State. Whenever the Governor
5determines that the bond of any member of the Board has become
6or is likely to become invalid or insufficient, he shall
7require such member forthwith to renew his bond, which is to be
8approved by the Governor. Any member of the Board who fails to
9take oath and give bond within 30 days from the date of his
10appointment, or who fails to renew his bond within 30 days
11after it is demanded by the Governor, shall be guilty of
12neglect of duty and may be removed by the Governor. The cost of
13any bond given by any member of the Board under this Section
14shall be taken to be a part of the necessary expenses of the
16    (7.5) For the examination of all mechanical,
17electromechanical, or electronic table games, slot machines,
18slot accounting systems, and other electronic gaming equipment
19for compliance with this Act, the Board may utilize the
20services of one or more independent outside testing
21laboratories that have been accredited by a national
22accreditation body and that, in the judgment of the Board, are
23qualified to perform such examinations.
24    (8) The Board shall employ such personnel as may be
25necessary to carry out its functions and shall determine the
26salaries of all personnel, except those personnel whose



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



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



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



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



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1        (12) (Blank);
2        (13) To assume responsibility for administration and
3    enforcement of the Video Gaming Act; and
4        (13.5) To adopt rules under which all fantasy sports
5    gaming in the State shall be conducted; and
6        (14) To adopt, by rule, a code of conduct governing
7    Board members and employees that ensure, to the maximum
8    extent possible, that persons subject to this Code avoid
9    situations, relationships, or associations that may
10    represent or lead to a conflict of interest.
11    (c) The Board shall have jurisdiction over and shall
12supervise all gambling operations governed by this Act. The
13Board shall have all powers necessary and proper to fully and
14effectively execute the provisions of this Act, including, but
15not limited to, the following:
16        (1) To investigate applicants and determine the
17    eligibility of applicants for licenses and to select among
18    competing applicants the applicants which best serve the
19    interests of the citizens of Illinois.
20        (2) To have jurisdiction and supervision over all
21    riverboat gambling operations in this State and all persons
22    on riverboats where gambling operations are conducted.
23        (3) To promulgate rules and regulations for the purpose
24    of administering the provisions of this Act and to
25    prescribe rules, regulations and conditions under which
26    all riverboat gambling in the State shall be conducted.



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



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



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



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



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



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



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1peace officer a distinct badge that, on its face, (i) clearly
2states that the badge is authorized by the Board and (ii)
3contains a unique identifying number. No other badge shall be
4authorized by the Board.
5(Source: P.A. 98-377, eff. 1-1-14; 98-582, eff. 8-27-13.)