At Stake - December 2023

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The Illinois Gaming Board held its monthly meeting on Thursday, December 7, 2023. The meeting was hybrid with in-person accessibility at 160 N. LaSalle St., 6th Floor Legislative Hearing Room and via livestream. Board members present at this meeting included Chairman Schmadeke, Member Hayden, Member Garcia, and Member Kolar.

There was an issue with the livestream of the meeting — specifically that parts of the second Open Session were not broadcast. We have been informed by the IGB that the complete broadcast should be up on the IGB’s website by the end of the day, however the information was not available at the time of this publication. We believe it was just the approval of prior meeting minutes. To view the complete meeting, please visit the IGB’s website at Illinois Gaming Board - Board Meetings And Documents.

Additionally, the 2024 meeting schedule was made available on the IGB’s website prior to the meeting and is provided below for your convenience.

2024 Calendar dates:

  • Thursday, February 08, 2024;
  • Thursday, March 14, 2024;
  • Thursday, April 25, 2024;
  • Thursday, June 06, 2024;
  • Thursday, July 25, 2024;
  • Thursday, September 12, 2024;
  • Thursday, October 24, 2024; and
  • Thursday, December 12, 2024.

Administrator Comments

As stated above, due to a technical error, the livestream began in the middle of the Administrator’s comments. As such, the following may not be a summary of his complete comments but rather a summary of the information we have available at the time of this publication.

During his comments, the Administrator reminded terminal operators of their reporting requirements under Rule 350(f), which can be found here. Briefly, the rule requires that all terminal operators submit quarterly reports detailing all goods and services provided to or shared costs with any licensed video gaming location. If you have questions regarding your obligations, please contact us.

Next, the Administrator mentioned that the recently submitted Video Gaming Rule 1750, regarding responsible gaming signage, which was approved by the Joint Action Committee of Rulemaking (JCAR) and can now be found found here on the IGB's website. The Administrator stated that the IGB is ready to move forward with implementing this requirement and that materials should be emailed to IGB.legal@illinois.gov for consideration. We have already submitted our draft signage language for approval.

The Administrator also took some time to briefly discuss the Vertical Integration Rule. He stated that the IGB filed its second notice with JCAR on Dec. 4, 2023. The second notice is not currently available on JCAR’s website, however those interested can periodically check here: JCAR Rulemakings on Second Notices (ilga.gov). We have already sent in comments for approval. Additionally, we suggest interested parties visit the IGB’s website and listen to the discussion at the previously held public hearing, which can be found can be found here.

Lastly, the Administrator provided his revenue reports for the gaming industry. According to the Administrator, there are 8,443 live video gaming locations operating in Illinois offering approximately 46,899 Video Gaming Terminals (VGTs). In October, these VGTs generated a Net Terminal Income (NTI) of over $238 million resulting in $81 million in taxes with the state’s share being approximately $69 million and the local municipalities receiving approximately $11 million. This November, casinos generated a total AGR of over $130 million with $33 million in taxes being made by the state and $7 million by host communities. Total Sports Wagering AGR (for September) had a total reported handle of $1 billion generating over $12 million in taxes to the state and over $900,000 to Cook County. To date for 2023, the combined industries of Video Gaming, Sports Wagering and Casino activity has generated over $1.2 billion in taxes with the state’s share being roughly $1 billion and the local municipalities sharing $277 million. All up to date revenue numbers are available on the IGB’s website and the Administrator stated he expects to have complete numbers for 2023 available at the beginning of 2024, likely by the February 8, 2024 meeting.

Administrative Matters

As many of you know, in August of 2023 Gov. Pritzker signed a new law that would allow individuals with prior convictions to apply for non-gaming positions across the gaming industry. This new law will take effect on January 1, 2024. As such, the IGB has proposed amendments to the following Rules in order to comply with this new law:

  • Proposed Amendments to Casino Rule 3000.200 (Casino) – Classification of Licenses
  • Proposed Amendments to Casino Rule 3000.245 (Casino) – Occupational Licenses
  • Proposed Amendment to Sports Wagering Rule 1900.420 (Sports Wagering) – Referral of Investigations
  • Proposed Amendments to Video Gaming Rule 1800.520 (Video Gaming) – Applications

These proposed amendments will be available on the IGB’s website under their respective Applicable Laws and Standards sections, but the Administrator briefly discussed them in general terms. He stated that the IGB will still use its discretion in determining suitability for licensure. Factors IGB will consider include individuals who have failed to provide complete disclosures, individuals who have convictions related to the gaming acts, individuals with a history of revoked/denied gaming applications, or individuals who have criminal records or associates which the Board finds unsuitable for licensure. The Administrator also stated the IGB will consider the length of time since convictions, the number of convictions, the severity of a conviction, the age of the individual at the time of the offense/conviction, and evidence of rehabilitation.

Casino

The casino portion of the meeting began with the Board issuing a notice of disassociation to Danville Development, LLC d/b/a Golden Nugget Danville regarding Equitable Veterans Solutions LLC and its owner, Matthew Monson. Relatedly, the Board denied the request for leave to withdrawal the application of Vemco, LLC (owned by Mr. Monson) for a supplier license and then went on to deny the initial supplier license.

The meeting continued with tabling the Level 1 occupational license of Travis Hicks for his role as Director of Security for Walker’s Bluff Casino Resort. Next, the Board approved 48 Level 2 and 94 Level 3 occupational licenses and issued seven notices of denial.

The Administrator then issued renewals to the occupational licensees that were up for renewal and had provided updated information, timely paid their renewal fees, and complied with all other requirements.

Sports Wagering

During the brief Sports Wagering section, the Board granted 64 Level 2 or Level 3 occupational licenses and the Administrator granted renewals to the Level 1, 2, and 3 licensees that were up for renewal, had provided updated information to the IGB, timely paid their renewal fees, and complied with all other requirements.

Video Gaming

The Video Gaming meeting began with the denial of an initial terminal operator license to BG-ILCO, LLC.

Next, the Board granted two Terminal Technician and 25 Terminal Handler licenses. The Administrator also renewed the terminal handler, technician, and location licensees which were up for renewal and had provided updated information to the IGB, timely paid their renewal fees, and complied with all other requirements.

The meeting continued with the IGB approving 96 locations and denying Mars Supermarket, Inc. d/b/a Mars Supermarket, Inc.

Next, the Board moved to rescind the denials and grant location licenses to two applicants: Alimi Brothers, LLC d/b/a Village Inn Pancake House and RWBC Inc. d/b/a Main Street Pour House.

The Board next denied the hearing requests of four applicants for either allegedly failing to state a prima facie case or allegedly not meeting hearing request requirements:

  • Alisa Vaughn d/b/a Jewelbox Gaming Lounge
  • Mikey’s Bar and Grill, LTD. d/b/a The Junkyard Bar and Grill
  • Alton Market Inc. d/b/a Alton Market Inc.
  • Bevda’s Inc. d/b/a Bevda’s.

The Board then issued a notice of disassociation to J&J Ventures Gaming, LLC regarding Matthew Monson and Veterans VGT LLC.

Finally, the Board voted to adopt the Administrative Law Judge’s decision as a final Board order in the Rule 320 matter, 22-UP-018. As a reminder, all Rule 320 decisions are available on the IGB’s website and can be found here: Illinois Gaming Board - Video Rule 320 Petitions.

The meeting concluded with the Administrator’s closing well wishes. We would also like to wish you all a very happy, healthy and safe holiday season!

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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