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90_HB0607 230 ILCS 10/Act title 230 ILCS 10/3.5 new 230 ILCS 10/4 from Ch. 120, par. 2404 230 ILCS 10/6 from Ch. 120, par. 2406 230 ILCS 10/7 from Ch. 120, par. 2407 230 ILCS 10/11 from Ch. 120, par. 2411 230 ILCS 10/11.2 new 230 ILCS 10/13 from Ch. 120, par. 2413 Amends the Riverboat Gambling Act. Permits riverboat gambling on permanently moored barges. Permits dockside gambling if the municipality or county submits to the voters the question of whether dockside gambling should be allowed in the municipality or county. Allows a licensee that receives Board permission to operate a secondary home dock location and move up to two-thirds of its gaming positions to that location if the licensee meets certain requirements. Deletes provision that allows gambling excursion cruises only when the navigable stream for which the riverboat is licensed is navigable. Changes the license renewal period to 4 years. Effective immediately. LRB9001159LDdvA LRB9001159LDdvA 1 AN ACT to amend the Riverboat Gambling Act by changing 2 the title of the Act and Sections 4, 6, 7, 11, 12, and 13, 3 adding Sections 3.5 and 11.2. 4 Be it enacted by the People of the State of Illinois, 5 represented in the General Assembly: 6 Section 5. The Riverboat Gambling Act is amended by 7 changing the title of the Act and Sections 4, 6, 7, 11, 12, 8 and 13 and adding Sections 3.5 and 11.2 as follows: 9 (230 ILCS 10/Act title) 10 An Act to authorize certain forms of gambling on 11excursiongambling boats. 12 (Source: P.A. 86-1029.) 13 (230 ILCS 10/3.5 new) 14 Sec. 3.5. Dockside gambling advisory referendum. Before 15 a licensee may conduct dockside gambling under this Act, the 16 municipality where the riverboat docks, or the county where 17 the riverboat docks if it does not dock within a 18 municipality, shall submit an advisory question to the voters 19 of the municipality or county, as the case may be, of whether 20 dockside gambling should be permitted in the municipality or 21 county. 22 (230 ILCS 10/4) (from Ch. 120, par. 2404) 23 Sec. 4. Definitions. As used in this Act: 24 (a) "Board" means the Illinois Gaming Board. 25 (b) "Occupational license" means a license issued by the 26 Board to a person or entity to perform an occupation which 27 the Board has identified as requiring a license to engage in 28 riverboat gambling in Illinois. 29 (c) "Gambling game" includes, but is not limited to, -2- LRB9001159LDdvA 1 baccarat, twenty-one, poker, craps, slot machine, video game 2 of chance, roulette wheel, klondike table, punchboard, faro 3 layout, keno layout, numbers ticket, push card, jar ticket, 4 or pull tab which is authorized by the Board as a wagering 5 device under this Act. 6 (d) "Riverboat" means a self-propelled excursion boat or 7 a permanently moored barge on which lawful gambling is 8 authorized and licensed as provided in this Act. 9 (e) (Blank)."Gambling excursion" means the time during10which gambling games may be operated on a riverboat.11 (f) "Dock" means the location where a gaming facilityan12excursion riverboatmoors for the purpose of embarking 13 passengers for and disembarking passengers from a gambling 14 facilityexcursion. 15 (g) "Gross receipts" means the total amount of money 16 exchanged for the purchase of chips, tokens or electronic 17 cards by riverboat patrons. 18 (h) "Adjusted gross receipts" means the gross receipts 19 less winnings paid to wagerers. 20 (i) "Cheat" means to alter the selection of criteria 21 which determine the result of a gambling game or the amount 22 or frequency of payment in a gambling game. 23 (j) "Department" means the Department of Revenue. 24 (k) "Gambling operation" means the conduct of authorized 25 gambling games upon a riverboat. 26 (Source: P.A. 86-1029; 86-1389; 87-826.) 27 (230 ILCS 10/6) (from Ch. 120, par. 2406) 28 Sec. 6. Application for Owners License. 29 (a) A qualified person may apply to the Board for an 30 owners license to conduct a riverboat gambling operation as 31 provided in this Act. The application shall be made on forms 32 provided by the Board and shall contain such information as 33 the Board prescribes, including but not limited to the -3- LRB9001159LDdvA 1 identity of the riverboat on which such gambling operation is 2 to be conducted and the exact location where such riverboat 3 will be docked, a certification that the riverboat will be 4 registered under this Act at all times during which gambling 5 operations are conducted on board, detailed information 6 regarding the ownership and management of the applicant, and 7 detailed personal information regarding the applicant. 8 Information provided on the application shall be used as a 9 basis for a thorough background investigation which the Board 10 shall conduct with respect to each applicant. An incomplete 11 application shall be cause for denial of a license by the 12 Board. 13 (b) Applicants shall submit with their application all 14 documents, resolutions, and letters of support from the 15 governing body that represents the municipality or county 16 wherein the licensee will dock. 17 (c) Each applicant shall disclose the identity of every 18 person, association, trust or corporation having a greater 19 than 1% direct or indirect pecuniary interest in the 20 riverboat gambling operation with respect to which the 21 license is sought. If the disclosed entity is a trust, the 22 application shall disclose the names and addresses of the 23 beneficiaries; if a corporation, the names and addresses of 24 all stockholders and directors; if a partnership, the names 25 and addresses of all partners, both general and limited. 26 (d) An application shall be filed with the Board by 27 January 1 of the year preceding any calendar year for which 28 an applicant seeks an owners license; however, applications 29 for an owners license permitting operations on January 1, 30 1991 shall be filed by July 1, 1990. An application fee of 31 $50,000 shall be paid at the time of filing to defray the 32 costs associated with the background investigation conducted 33 by the Board. If the costs of the investigation exceed 34 $50,000, the applicant shall pay the additional amount to the -4- LRB9001159LDdvA 1 Board. If the costs of the investigation are less than 2 $50,000, the applicant shall receive a refund of the 3 remaining amount. All information, records, interviews, 4 reports, statements, memoranda or other data supplied to or 5 used by the Board in the course of its review or 6 investigation of an application for a license under this Act 7 shall be privileged, strictly confidential and shall be used 8 only for the purpose of evaluating an applicant. Such 9 information, records, interviews, reports, statements, 10 memoranda or other data shall not be admissible as evidence, 11 nor discoverable in any action of any kind in any court or 12 before any tribunal, board, agency or person, except for any 13 action deemed necessary by the Board. 14 (e) The Board shall charge each applicant a fee set by 15 the Department of State Police to defray the costs associated 16 with the search and classification of fingerprints obtained 17 by the Board with respect to the applicant's application. 18 These fees shall be paid into the State Police Services Fund. 19 (f) The licensed owner shall be the person primarily 20 responsible for the boat itself. Only one riverboat gambling 21 operation may be authorized by the Board on any riverboat. 22 The applicant must identify each riverboat it intends to use 23 and certify that the riverboat: (1) has the authorized 24 capacity required in this Act; (2) is accessible to disabled 25 persons; (3) is either a replica of a 19th century Illinois 26 riverboat or of a casino cruise ship design, but it need not 27 be self-propelled and may be a permanently moored barge; and 28 (4) is fully registered and licensed in accordance with any 29 applicable laws. 30 (g) A person who knowingly makes a false statement on an 31 application is guilty of a Class A misdemeanor. 32 (Source: P.A. 86-1029; 86-1389.) 33 (230 ILCS 10/7) (from Ch. 120, par. 2407) -5- LRB9001159LDdvA 1 Sec. 7. Owners Licenses. 2 (a) The Board shall issue owners licenses to persons, 3 firms or corporations which apply for such licenses upon 4 payment to the Board of the non-refundable license fee set by 5 the Board, upon payment of a $25,000 license fee for the 6 first year of operation and a $5,000 license fee for each 7 succeeding year and upon a determination by the Board that 8 the applicant is eligible for an owners license pursuant to 9 this Act and the rules of the Board. A person, firm or 10 corporation is ineligible to receive an owners license if: 11 (1) the person has been convicted of a felony under 12 the laws of this State, any other state, or the United 13 States; 14 (2) the person has been convicted of any violation 15 of Article 28 of the Criminal Code of 1961, or 16 substantially similar laws of any other jurisdiction; 17 (3) the person has submitted an application for a 18 license under this Act which contains false information; 19 (4) the person is a member of the Board; 20 (5) a person defined in (1), (2), (3) or (4) is an 21 officer, director or managerial employee of the firm or 22 corporation; 23 (6) the firm or corporation employs a person 24 defined in (1), (2), (3) or (4) who participates in the 25 management or operation of gambling operations authorized 26 under this Act; 27 (7) the person, firm or corporation owns more than 28 a 10% ownership interest in any entity holding an owners 29 license issued under this Act; or 30 (8) a license of the person, firm or corporation 31 issued under this Act, or a license to own or operate 32 gambling facilities in any other jurisdiction, has been 33 revoked. 34 (b) In determining whether to grant an owners license to -6- LRB9001159LDdvA 1 an applicant, the Board shall consider: 2 (1) the character, reputation, experience and 3 financial integrity of the applicants and of any other or 4 separate person that either: 5 (A) controls, directly or indirectly, such 6 applicant, or 7 (B) is controlled, directly or indirectly, by 8 such applicant or by a person which controls, 9 directly or indirectly, such applicant; 10 (2) the facilities or proposed facilities for the 11 conduct of riverboat gambling; 12 (3) the highest prospective total revenue to be 13 derived by the State from the conduct of riverboat 14 gambling; 15 (4) the good faith affirmative action plan of each 16 applicant to recruit, train and upgrade minorities in all 17 employment classifications; 18 (5) the financial ability of the applicant to 19 purchase and maintain adequate liability and casualty 20 insurance; 21 (6) whether the applicant has adequate 22 capitalization to provide and maintain, for the duration 23 of a license, a riverboat; and 24 (7) the extent to which the applicant exceeds or 25 meets other standards for the issuance of an owners 26 license which the Board may adopt by rule. 27 (c) Each owners license shall specify the place where 28 riverboats shall operate and dock. 29 (d) Each applicant shall submit with his application, on 30 forms provided by the Board, 2 sets of his fingerprints. 31 (e) The Board may issue up to 10 licenses authorizing 32 the holders of such licenses to own riverboats. In the 33 application for an owners license, the applicant shall state 34 the dock at which the riverboat is based and the navigable -7- LRB9001159LDdvA 1 stream on which the riverboat will operate. The Board shall 2 issue 5 licenses to become effective not earlier than January 3 1, 1991. Four of such licenses shall authorize riverboat 4 gambling on the Mississippi River, one of which shall 5 authorize riverboat gambling from a home dock in the city of 6 East St. Louis. The other license shall authorize riverboat 7 gambling on the Illinois River south of Marshall County. The 8 Board shall issue 1 additional license to become effective 9 not earlier than March 1, 1992, which shall authorize 10 riverboat gambling on the Des Plaines River in Will County. 11 The Board may issue 4 additional licenses to become effective 12 not earlier than March 1, 1992. In determining the navigable 13 streams upon which riverboats will operate with licenses 14 effective on or after March 1, 1992, the Board shall consider 15 the economic benefit which riverboat gambling confers on the 16 State, and shall seek to assure that all regions of the State 17 share in the economic benefits of riverboat gambling. 18 In granting all licenses, the Board may give favorable 19 consideration to economically depressed areas of the State, 20 to applicants presenting plans which provide for significant 21 economic development over a large geographic area, and to 22 applicants who currently operate non-gambling riverboats in 23 Illinois. The Board shall review all applications for owners 24 licenses, and shall inform each applicant of the Board's 25 decision. 26 The Board may revoke the owners license of a licensee 27 which fails to begin regular riverboat cruises within 12 28 months of receipt of the Board's approval of the application 29 if the Board determines that license revocation is in the 30 best interests of the State. 31 (f) The first 10 owners licenses issued under this Act 32 shall permit the holder to own up to 2 riverboats and 33 equipment thereon for a period of 3 years after the effective 34 date of the license. Holders of the first 10 owners licenses -8- LRB9001159LDdvA 1 must pay the annual license fee for each of the 3 years 2 during which they are authorized to own riverboats. 3 (g) Upon the termination, expiration or revocation of 4 each of the first 10 licenses, which shall be issued for a 3 5 year period, all licenses are renewable annually upon payment 6 of the fee and a determination by the Board that the licensee 7 continues to meet all of the requirements of this Act and the 8 Board's rules. However, for licenses renewed on or after July 9 1, 1997, renewal shall be for a period of 4 years, unless the 10 Board sets a shorter period. 11 (h) An owners license shall entitle the licensee to own 12 up to 2 riverboats. A licensee shall limit the number of 13 gambling participants to 1,200 for any such owners license. 14 Riverboats licensed to operate on the Mississippi River and 15 the Illinois River south of Marshall County shall have an 16 authorized capacity of at least 500 persons. Any other 17 riverboat licensed under this Act shall have an authorized 18 capacity of at least 400 persons. 19 (i) A licensed owner is authorized to apply to the Board 20 for and, if approved therefor, to receive all licenses from 21 the Board necessary for the operation of a riverboat, 22 including a liquor license, a license to prepare and serve 23 food for human consumption, and other necessary licenses. 24 All use, occupation and excise taxes which apply to the sale 25 of food and beverages in this State and all taxes imposed on 26 the sale or use of tangible personal property apply to such 27 sales aboard the riverboat. 28 (j) None of the first 5 licenses issued by the Board to 29 become effective not earlier than January 1, 1991 shall 30 authorize a riverboat to dock in a municipality with a 31 population of under 2,000; however, this restriction does not 32 apply to any additional licenses issued by the Board to 33 become effective not earlier than March 1, 1992. The Board 34 may issue a license authorizing a riverboat to dock in a -9- LRB9001159LDdvA 1 municipality or approve a secondary home dock location only 2 if, prior to the issuance of the license or approval, the 3 governing body of the municipality has by a majority vote 4 approved the docking of riverboats in the municipality. The 5 Board may issue a license authorizing a riverboat to dock in 6 areas of a county outside any municipality or approve a 7 secondary dock location only if, prior to the issuance of the 8 license or approval, the governing body of the county has by 9 a majority vote approved of the docking of riverboats within 10 such areas. 11 (k) Nothing in this Act shall be interpreted to prohibit 12 a licensed owner from operating a school for the training of 13 any occupational licensee. 14 (Source: P.A. 86-1029; 86-1389; 86-1475; 87-826.) 15 (230 ILCS 10/11) (from Ch. 120, par. 2411) 16 Sec. 11. Conduct of gambling. 17 (a) Gambling may be conducted by licensed owners aboard 18 riverboats, subject to the following standards: 19 (1) (Blank)No gambling may be conducted while a20riverboat is docked. 21 (2) (Blank)Riverboat cruises may not exceed 422hours for a round trip, with the exception of any23extended cruises, each of which shall be expressly24approved by the Board. 25 (3) Minimum and maximum wagers on games shall be 26 set by the licensee. 27 (4) Agents of the Board and the Department of State 28 Police may board and inspect any riverboat at any time 29 for the purpose of determining whether this Act is being 30 complied with. Every riverboat, if under way and being 31 hailed by a law enforcement officer or agent of the 32 Board, must stop immediately and lay to. 33 (5) Employees of the Board shall have the right to -10- LRB9001159LDdvA 1 be present on the riverboat or on adjacent facilities 2 under the control of the licensee. 3 (6) Gambling equipment and supplies customarily 4 used in conducting riverboat gambling must be purchased 5 or leased only from suppliers licensed for such purpose 6 under this Act. 7 (7) Persons licensed under this Act shall permit no 8 form of wagering on gambling games except as permitted by 9 this Act. 10 (8) Wagers may be received only from a person 11 present on a licensed riverboat. No person present on a 12 licensed riverboat shall place or attempt to place a 13 wager on behalf of another person who is not present on 14 the riverboat. 15 (9) Wagering shall not be conducted with money or 16 other negotiable currency. 17 (10) A person under age 21 shall not be permitted 18 on an area of a riverboat where gambling is being 19 conducted, except for a person at least 18 years of age 20 who is an employee of the riverboat gambling operation. 21 No employee under age 21 shall perform any function 22 involved in gambling by the patrons. No person under age 23 21 shall be permitted to make a wager under this Act. 24 (11) Gambling excursion cruises are permitted only 25 when the navigable stream for which the riverboat is 26 licensed is navigable, as determined by the Board in 27 consultation with the U.S. Army Corps of Engineers. 28 (12) All tokens, chips or electronic cards used to 29 make wagers must be purchased from a licensed owner 30 either aboard a riverboat or at an onshore facility which 31 has been approved by the Board and which is located where 32 the riverboat docks. The tokens, chips or electronic 33 cards may be purchased by means of an agreement under 34 which the owner extends credit to the patron. Such -11- LRB9001159LDdvA 1 tokens, chips or electronic cards may be used while 2 aboard the riverboat only for the purpose of making 3 wagers on gambling games. 4 (13) Notwithstanding any other Section of this Act, 5 in addition to the other licenses authorized under this 6 Act, the Board may issue special event licenses allowing 7 persons who are not otherwise licensed to conduct 8 riverboat gambling to conduct such gambling on a 9 specified date or series of dates. Riverboat gambling 10 under such a license may take place on a riverboat not 11 normally used for riverboat gambling. The Board shall 12 establish standards, fees and fines for, and limitations 13 upon, such licenses, which may differ from the standards, 14 fees, fines and limitations otherwise applicable under 15 this Act. All such fees shall be deposited into the 16 State Gaming Fund. All such fines shall be deposited 17 into the Education Assistance Fund, created by Public Act 18 86-0018, of the State of Illinois. 19 (14) In addition to the above, gambling must be 20 conducted in accordance with all rules adopted by the 21 Board. 22 (Source: P.A. 86-1029; 86-1389; 87-826.) 23 (230 ILCS 10/11.2 new) 24 Sec. 11.2. Secondary home dock locations. 25 (a) A licensee that earns less than $40,000,000 in 26 adjusted gross receipts and uses less than 50% of its gaming 27 positions during a 12-month period may request permission 28 from the Board to move up to two-thirds of its gaming 29 positions to a secondary home dock location. If permission 30 is granted by the Board under this Section, the licensee may 31 then operate one riverboat at each location approved by the 32 Board. 33 (b) If a licensee operates from dual home dock locations -12- LRB9001159LDdvA 1 under subsection (a), 15% of the tax revenue distributed 2 under Section 13(b) from the secondary home dock location 3 shall be paid to the unit of local government that is the 4 original home dock location of the licensee in the same 5 manner as that tax is paid under Section 13(b). 6 (230 ILCS 10/13) (from Ch. 120, par. 2413) 7 Sec. 13. Wagering tax; rate; distribution. 8 (a) A tax is imposed on the adjusted gross receipts 9 received from gambling games authorized under this Act at the 10 rate of 20%. 11 The taxes imposed by this Section shall be paid by the 12 licensed owner to the Board after the close of the day when 13 the wagers were made. 14 (b) Twenty-five percent (25%) Of the tax revenue 15 deposited in the State Gaming Fund under this Section shall 16 be paid, subject to appropriation by the General Assembly, to 17 the unit of local government which is designated as the home 18 dock of the riverboat. If the licensee maintains a secondary 19 home dock location under Section 11.2, the amount paid under 20 this subsection (b) shall be divided as provided in Section 21 11.2. 22 (c) Appropriations, as approved by the General Assembly, 23 may be made from the State Gaming Fund to the Department of 24 Revenue and the Department of State Police for the 25 administration and enforcement of this Act. 26 (d) From time to time, the Board shall transfer the 27 remainder of the funds generated by this Act into the 28 Education Assistance Fund, created by Public Act 86-0018, of 29 the State of Illinois. 30 (e) Nothing in this Act shall prohibit the unit of local 31 government designated as the home dock of the riverboat from 32 entering into agreements with other units of local government 33 in this State or in other states to share its portion of the -13- LRB9001159LDdvA 1 tax revenue. 2 (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 7-1-95.) 3 Section 99. Effective date. This Act takes effect upon 4 becoming law.