State of Illinois
90th General Assembly
Legislation

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90_SB0154

      230 ILCS 10/Act title
      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. 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.
                                                     LRB9001159LDpk
                                               LRB9001159LDpk
 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 Section 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 Section 11.2 as follows:
 9        (230 ILCS 10/Act title)
10        An   Act  to  authorize  certain  forms  of  gambling  on
11    excursion gambling boats.
12    (Source: P.A. 86-1029.)
13        (230 ILCS 10/4) (from Ch. 120, par. 2404)
14        Sec. 4.  Definitions. As used in this Act:
15        (a)  "Board" means the Illinois Gaming Board.
16        (b)  "Occupational license" means a license issued by the
17    Board to a person or entity to perform  an  occupation  which
18    the  Board has identified as requiring a license to engage in
19    riverboat gambling in Illinois.
20        (c)  "Gambling game" includes, but  is  not  limited  to,
21    baccarat,  twenty-one, poker, craps, slot machine, video game
22    of chance, roulette wheel, klondike table,  punchboard,  faro
23    layout,  keno  layout, numbers ticket, push card, jar ticket,
24    or pull tab which is authorized by the Board  as  a  wagering
25    device under this Act.
26        (d)  "Riverboat" means a self-propelled excursion boat or
27    a  permanently  moored  barge  on  which  lawful  gambling is
28    authorized and licensed as provided in this Act.
29        (e)  (Blank). "Gambling excursion" means the time  during
30    which gambling games may be operated on a riverboat.
                            -2-                LRB9001159LDpk
 1        (f)  "Dock" means the location where a gaming facility an
 2    excursion  riverboat  moors  for  the  purpose  of  embarking
 3    passengers  for  and  disembarking passengers from a gambling
 4    facility excursion.
 5        (g)  "Gross receipts" means the  total  amount  of  money
 6    exchanged  for  the  purchase  of chips, tokens or electronic
 7    cards by riverboat patrons.
 8        (h)  "Adjusted gross receipts" means the  gross  receipts
 9    less winnings paid to wagerers.
10        (i)  "Cheat"  means  to  alter  the selection of criteria
11    which determine the result of a gambling game or  the  amount
12    or frequency of payment in a gambling game.
13        (j)  "Department" means the Department of Revenue.
14        (k)  "Gambling operation" means the conduct of authorized
15    gambling games upon a riverboat.
16    (Source: P.A. 86-1029; 86-1389; 87-826.)
17        (230 ILCS 10/6) (from Ch. 120, par. 2406)
18        Sec. 6.  Application for Owners License.
19        (a)  A  qualified  person  may  apply to the Board for an
20    owners license to conduct a riverboat gambling  operation  as
21    provided in this Act.  The application shall be made on forms
22    provided  by  the Board and shall contain such information as
23    the Board  prescribes,  including  but  not  limited  to  the
24    identity of the riverboat on which such gambling operation is
25    to  be  conducted and the exact location where such riverboat
26    will be docked, a certification that the  riverboat  will  be
27    registered  under this Act at all times during which gambling
28    operations  are  conducted  on  board,  detailed  information
29    regarding the ownership and management of the applicant,  and
30    detailed   personal   information  regarding  the  applicant.
31    Information provided on the application shall be  used  as  a
32    basis for a thorough background investigation which the Board
33    shall  conduct with respect to each applicant.  An incomplete
                            -3-                LRB9001159LDpk
 1    application shall be cause for denial of  a  license  by  the
 2    Board.
 3        (b)  Applicants  shall  submit with their application all
 4    documents, resolutions,  and  letters  of  support  from  the
 5    governing  body  that  represents  the municipality or county
 6    wherein the licensee will dock.
 7        (c)  Each applicant shall disclose the identity of  every
 8    person,  association,  trust  or corporation having a greater
 9    than  1%  direct  or  indirect  pecuniary  interest  in   the
10    riverboat  gambling  operation  with  respect  to  which  the
11    license  is  sought.  If the disclosed entity is a trust, the
12    application shall disclose the names  and  addresses  of  the
13    beneficiaries;  if  a corporation, the names and addresses of
14    all stockholders and directors; if a partnership,  the  names
15    and addresses of all partners, both general and limited.
16        (d)  An  application  shall  be  filed  with the Board by
17    January 1 of the year preceding any calendar year  for  which
18    an  applicant  seeks an owners license; however, applications
19    for an owners license permitting  operations  on  January  1,
20    1991  shall  be filed by July 1, 1990.  An application fee of
21    $50,000 shall be paid at the time of  filing  to  defray  the
22    costs  associated with the background investigation conducted
23    by the Board.  If  the  costs  of  the  investigation  exceed
24    $50,000, the applicant shall pay the additional amount to the
25    Board.   If  the  costs  of  the  investigation are less than
26    $50,000,  the  applicant  shall  receive  a  refund  of   the
27    remaining  amount.   All  information,  records,  interviews,
28    reports,  statements,  memoranda or other data supplied to or
29    used  by  the  Board  in  the  course  of   its   review   or
30    investigation  of an application for a license under this Act
31    shall be privileged, strictly confidential and shall be  used
32    only  for  the  purpose  of  evaluating  an  applicant.  Such
33    information,  records,   interviews,   reports,   statements,
34    memoranda  or other data shall not be admissible as evidence,
                            -4-                LRB9001159LDpk
 1    nor discoverable in any action of any kind in  any  court  or
 2    before  any tribunal, board, agency or person, except for any
 3    action deemed necessary by the Board.
 4        (e)  The Board shall charge each applicant a fee  set  by
 5    the Department of State Police to defray the costs associated
 6    with  the  search and classification of fingerprints obtained
 7    by the Board with respect  to  the  applicant's  application.
 8    These fees shall be paid into the State Police Services Fund.
 9        (f)  The  licensed  owner  shall  be the person primarily
10    responsible for the boat itself.  Only one riverboat gambling
11    operation may be authorized by the Board  on  any  riverboat.
12    The  applicant must identify each riverboat it intends to use
13    and certify  that  the  riverboat:  (1)  has  the  authorized
14    capacity  required in this Act; (2) is accessible to disabled
15    persons; (3) is either a replica of a 19th  century  Illinois
16    riverboat  or of a casino cruise ship design, but it need not
17    be self-propelled and may be a permanently moored barge;  and
18    (4)  is  fully registered and licensed in accordance with any
19    applicable laws.
20        (g)  A person who knowingly makes a false statement on an
21    application is guilty of a Class A misdemeanor.
22    (Source: P.A. 86-1029; 86-1389.)
23        (230 ILCS 10/7) (from Ch. 120, par. 2407)
24        Sec. 7.  Owners Licenses.
25        (a)  The Board shall issue owners  licenses  to  persons,
26    firms  or  corporations  which  apply  for such licenses upon
27    payment to the Board of the non-refundable license fee set by
28    the Board, upon payment of a  $25,000  license  fee  for  the
29    first  year  of  operation  and a $5,000 license fee for each
30    succeeding year and upon a determination by  the  Board  that
31    the  applicant is eligible for an owners  license pursuant to
32    this Act and the rules of  the  Board.   A  person,  firm  or
33    corporation is ineligible to receive an owners license if:
                            -5-                LRB9001159LDpk
 1             (1)  the person has been convicted of a felony under
 2        the  laws  of  this State, any other state, or the United
 3        States;
 4             (2)  the person has been convicted of any  violation
 5        of   Article   28  of  the  Criminal  Code  of  1961,  or
 6        substantially similar laws of any other jurisdiction;
 7             (3)  the person has submitted an application  for  a
 8        license under this Act which contains false information;
 9             (4)  the person is a member of the Board;
10             (5)  a  person defined in (1), (2), (3) or (4) is an
11        officer, director or managerial employee of the  firm  or
12        corporation;
13             (6)  the   firm  or  corporation  employs  a  person
14        defined in (1), (2), (3) or (4) who participates  in  the
15        management or operation of gambling operations authorized
16        under this Act;
17             (7)  the person, firm or corporation  owns more than
18        a  10% ownership interest in any entity holding an owners
19        license issued under this Act; or
20             (8)  a license of the person,  firm  or  corporation
21        issued  under  this  Act,  or a license to own or operate
22        gambling facilities in any other jurisdiction,  has  been
23        revoked.
24        (b)  In determining whether to grant an owners license to
25    an applicant, the Board shall consider:
26             (1)  the   character,   reputation,  experience  and
27        financial integrity of the applicants and of any other or
28        separate person that either:
29                  (A)  controls,  directly  or  indirectly,  such
30             applicant, or
31                  (B)  is controlled, directly or indirectly,  by
32             such  applicant  or  by  a  person  which  controls,
33             directly or indirectly, such applicant;
34             (2)  the  facilities  or proposed facilities for the
                            -6-                LRB9001159LDpk
 1        conduct of riverboat gambling;
 2             (3)  the highest prospective  total  revenue  to  be
 3        derived  by  the  State  from  the  conduct  of riverboat
 4        gambling;
 5             (4)  the good faith affirmative action plan of  each
 6        applicant to recruit, train and upgrade minorities in all
 7        employment classifications;
 8             (5)  the  financial  ability  of  the  applicant  to
 9        purchase  and  maintain  adequate  liability and casualty
10        insurance;
11             (6)  whether    the    applicant    has     adequate
12        capitalization  to provide and maintain, for the duration
13        of a license, a riverboat; and
14             (7)  the extent to which the  applicant  exceeds  or
15        meets  other  standards  for  the  issuance  of an owners
16        license which the Board may adopt by rule.
17        (c)  Each owners license shall specify  the  place  where
18    riverboats shall operate and dock.
19        (d)  Each applicant shall submit with his application, on
20    forms provided by the Board, 2 sets of his fingerprints.
21        (e)  The  Board  may  issue up to 10 licenses authorizing
22    the holders of such  licenses  to  own  riverboats.   In  the
23    application  for an owners license, the applicant shall state
24    the dock at which the riverboat is based  and  the  navigable
25    stream  on which the riverboat will operate.  The Board shall
26    issue 5 licenses to become effective not earlier than January
27    1, 1991. Four of  such  licenses  shall  authorize  riverboat
28    gambling  on  the  Mississippi  River,  one  of  which  shall
29    authorize  riverboat gambling from a home dock in the city of
30    East St. Louis. The other license shall  authorize  riverboat
31    gambling  on the Illinois River south of Marshall County. The
32    Board shall issue 1 additional license  to  become  effective
33    not  earlier  than  March  1,  1992,  which  shall  authorize
34    riverboat  gambling  on the Des Plaines River in Will County.
                            -7-                LRB9001159LDpk
 1    The Board may issue 4 additional licenses to become effective
 2    not earlier than March 1, 1992. In determining the  navigable
 3    streams  upon  which  riverboats  will  operate with licenses
 4    effective on or after March 1, 1992, the Board shall consider
 5    the economic benefit which riverboat gambling confers on  the
 6    State, and shall seek to assure that all regions of the State
 7    share in the economic benefits of riverboat gambling.
 8        In  granting  all  licenses, the Board may give favorable
 9    consideration to economically depressed areas of  the  State,
10    to  applicants presenting plans which provide for significant
11    economic development over a large  geographic  area,  and  to
12    applicants  who  currently operate non-gambling riverboats in
13    Illinois.  The Board shall review all applications for owners
14    licenses, and shall inform  each  applicant  of  the  Board's
15    decision.
16        The  Board  may  revoke  the owners license of a licensee
17    which fails to begin  regular  riverboat  cruises  within  12
18    months  of receipt of the Board's approval of the application
19    if the Board determines that license  revocation  is  in  the
20    best interests of the State.
21        (f)  The  first  10 owners licenses issued under this Act
22    shall permit the  holder  to  own  up  to  2  riverboats  and
23    equipment thereon for a period of 3 years after the effective
24    date  of the license. Holders of the first 10 owners licenses
25    must pay the annual license fee  for  each  of  the  3  years
26    during which they are authorized to own riverboats.
27        (g)  Upon  the  termination,  expiration or revocation of
28    each of the first 10 licenses, which shall be issued for a  3
29    year period, all licenses are renewable annually upon payment
30    of the fee and a determination by the Board that the licensee
31    continues to meet all of the requirements of this Act and the
32    Board's rules. However, for licenses renewed on or after July
33    1, 1997, renewal shall be for a period of 4 years, unless the
34    Board sets a shorter period.
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 1        (h)  An  owners license shall entitle the licensee to own
 2    up to 2 riverboats.  A licensee shall  limit  the  number  of
 3    gambling  participants  to 1,200 for any such owners license.
 4    Riverboats licensed to operate on the Mississippi  River  and
 5    the  Illinois  River  south  of Marshall County shall have an
 6    authorized capacity of  at  least  500  persons.   Any  other
 7    riverboat  licensed  under  this Act shall have an authorized
 8    capacity of at least 400 persons.
 9        (i)  A licensed owner is authorized to apply to the Board
10    for and, if approved therefor, to receive all  licenses  from
11    the  Board  necessary  for  the  operation  of  a  riverboat,
12    including  a  liquor  license, a license to prepare and serve
13    food for human consumption,  and  other  necessary  licenses.
14    All  use, occupation and excise taxes which apply to the sale
15    of food and beverages in this State and all taxes imposed  on
16    the  sale  or use of tangible personal property apply to such
17    sales aboard the riverboat.
18        (j)  None of the first 5 licenses issued by the Board  to
19    become  effective  not  earlier  than  January  1, 1991 shall
20    authorize a riverboat  to  dock  in  a  municipality  with  a
21    population of under 2,000; however, this restriction does not
22    apply  to  any  additional  licenses  issued  by the Board to
23    become effective not earlier than March 1, 1992.   The  Board
24    may  issue  a  license  authorizing  a riverboat to dock in a
25    municipality or approve a secondary home dock  location  only
26    if,  prior  to  the  issuance of the license or approval, the
27    governing body of the municipality has  by  a  majority  vote
28    approved  the docking of riverboats in the municipality.  The
29    Board may issue a license authorizing a riverboat to dock  in
30    areas  of  a  county  outside  any  municipality or approve a
31    secondary dock location only if, prior to the issuance of the
32    license or approval, the governing body of the county has  by
33    a  majority vote approved of the docking of riverboats within
34    such areas.
                            -9-                LRB9001159LDpk
 1        (k)  Nothing in this Act shall be interpreted to prohibit
 2    a licensed owner from operating a school for the training  of
 3    any occupational licensee.
 4    (Source: P.A. 86-1029; 86-1389; 86-1475; 87-826.)
 5        (230 ILCS 10/11) (from Ch. 120, par. 2411)
 6        Sec. 11.  Conduct of gambling.
 7        (a)  Gambling  may be conducted by licensed owners aboard
 8    riverboats, subject to the following standards:
 9             (1)  (Blank) No gambling may be  conducted  while  a
10        riverboat is docked.
11             (2)  (Blank)  Riverboat  cruises  may  not  exceed 4
12        hours for  a  round  trip,  with  the  exception  of  any
13        extended  cruises,  each  of  which  shall  be  expressly
14        approved by the Board.
15             (3)  Minimum  and  maximum  wagers on games shall be
16        set by the licensee.
17             (4)  Agents of the Board and the Department of State
18        Police may board and inspect any riverboat  at  any  time
19        for  the purpose of determining whether this Act is being
20        complied with.  Every riverboat, if under way  and  being
21        hailed  by  a  law  enforcement  officer  or agent of the
22        Board, must stop immediately and lay to.
23             (5)  Employees of the Board shall have the right  to
24        be  present  on  the  riverboat or on adjacent facilities
25        under the control of the licensee.
26             (6)  Gambling  equipment  and  supplies  customarily
27        used in conducting riverboat gambling must  be  purchased
28        or  leased  only from suppliers licensed for such purpose
29        under this Act.
30             (7)  Persons licensed under this Act shall permit no
31        form of wagering on gambling games except as permitted by
32        this Act.
33             (8)  Wagers may  be  received  only  from  a  person
                            -10-               LRB9001159LDpk
 1        present  on a licensed riverboat.  No person present on a
 2        licensed riverboat shall place  or  attempt  to  place  a
 3        wager  on  behalf of another person who is not present on
 4        the riverboat.
 5             (9)  Wagering shall not be conducted with  money  or
 6        other negotiable currency.
 7             (10)  A  person  under age 21 shall not be permitted
 8        on an  area  of  a  riverboat  where  gambling  is  being
 9        conducted,  except  for a person at least 18 years of age
10        who is an employee of the riverboat  gambling  operation.
11        No  employee  under  age  21  shall  perform any function
12        involved in gambling by the patrons. No person under  age
13        21 shall be permitted to make a wager under this Act.
14             (11)  Gambling  excursion cruises are permitted only
15        when the navigable stream  for  which  the  riverboat  is
16        licensed  is  navigable,  as  determined  by the Board in
17        consultation with the U.S. Army Corps of Engineers.
18             (12)  All tokens, chips or electronic cards used  to
19        make  wagers  must  be  purchased  from  a licensed owner
20        either aboard a riverboat or at an onshore facility which
21        has been approved by the Board and which is located where
22        the riverboat docks.  The  tokens,  chips  or  electronic
23        cards  may  be  purchased  by means of an agreement under
24        which the owner  extends  credit  to  the  patron.   Such
25        tokens,  chips  or  electronic  cards  may  be used while
26        aboard the riverboat  only  for  the  purpose  of  making
27        wagers on gambling games.
28             (13)  Notwithstanding any other Section of this Act,
29        in  addition  to the other licenses authorized under this
30        Act, the Board may issue special event licenses  allowing
31        persons   who  are  not  otherwise  licensed  to  conduct
32        riverboat  gambling  to  conduct  such  gambling   on   a
33        specified  date  or  series of dates.  Riverboat gambling
34        under such a license may take place on  a  riverboat  not
                            -11-               LRB9001159LDpk
 1        normally  used  for  riverboat gambling.  The Board shall
 2        establish standards, fees and fines for, and  limitations
 3        upon, such licenses, which may differ from the standards,
 4        fees,  fines  and  limitations otherwise applicable under
 5        this Act.  All such fees  shall  be  deposited  into  the
 6        State  Gaming  Fund.   All  such fines shall be deposited
 7        into the Education Assistance Fund, created by Public Act
 8        86-0018, of the State of Illinois.
 9             (14)  In addition to the  above,  gambling  must  be
10        conducted  in  accordance  with  all rules adopted by the
11        Board.
12    (Source: P.A. 86-1029; 86-1389; 87-826.)
13        (230 ILCS 10/11.2 new)
14        Sec. 11.2.  Secondary home dock locations.
15        (a)  A licensee  that  earns  less  than  $40,000,000  in
16    adjusted  gross receipts and uses less than 50% of its gaming
17    positions during a 12-month  period  may  request  permission
18    from  the  Board  to  move  up  to  two-thirds  of its gaming
19    positions to a secondary home dock location.   If  permission
20    is  granted by the Board under this Section, the licensee may
21    then operate one riverboat at each location approved  by  the
22    Board.
23        (b)  If a licensee operates from dual home dock locations
24    under  subsection  (a),  15%  of  the tax revenue distributed
25    under Section 13(b) from the  secondary  home  dock  location
26    shall  be  paid  to  the unit of local government that is the
27    original home dock location  of  the  licensee  in  the  same
28    manner as that tax is paid under Section 13(b).
29        (230 ILCS 10/13) (from Ch. 120, par. 2413)
30        Sec. 13.  Wagering tax; rate; distribution.
31        (a)  A  tax  is  imposed  on  the adjusted gross receipts
32    received from gambling games authorized under this Act at the
                            -12-               LRB9001159LDpk
 1    rate of 20%.
 2        The taxes imposed by this Section shall be  paid  by  the
 3    licensed  owner  to the Board after the close of the day when
 4    the wagers were made.
 5        (b)  Twenty-five  percent  (25%)  Of  the   tax   revenue
 6    deposited  in  the State Gaming Fund under this Section shall
 7    be paid, subject to appropriation by the General Assembly, to
 8    the unit of local government which is designated as the  home
 9    dock of the riverboat.  If the licensee maintains a secondary
10    home  dock location under Section 11.2, the amount paid under
11    this subsection (b) shall be divided as provided  in  Section
12    11.2.
13        (c)  Appropriations, as approved by the General Assembly,
14    may  be  made from the State Gaming Fund to the Department of
15    Revenue  and  the  Department  of  State   Police   for   the
16    administration and enforcement of this Act.
17        (d)  From  time  to  time,  the  Board shall transfer the
18    remainder of  the  funds  generated  by  this  Act  into  the
19    Education  Assistance Fund, created by Public Act 86-0018, of
20    the State of Illinois.
21        (e)  Nothing in this Act shall prohibit the unit of local
22    government designated as the home dock of the riverboat  from
23    entering into agreements with other units of local government
24    in  this State or in other states to share its portion of the
25    tax revenue.
26    (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 7-1-95.)
27        Section 99.  Effective date.  This Act takes effect  upon
28    becoming law.

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