The Illinois Gaming Board held its monthly meeting on Thursday, Feb. 8, 2024. The meeting was hybrid with in-person accessibility at 160 N. LaSalle St., 5th Floor Auditorium and via livestream. Board members present at this meeting included Chairman Schmadeke, Member Hayden and Member Kolar. The meeting began with consideration and approval of the minutes of the regular board meeting from Dec. 7, 2023 and continued with the board determining that the closed session minutes from 2023 still require confidentiality and will not be disseminated at this time.

Administrator’s Report

To begin his report, the Administrator issued three “PSAs” regarding the upcoming Super Bowl. First, the administrator reminded those interested in wagering on the Super Bowl to only do so with approved licensees. The IGB’s website has a complete list of licensees for those considering placing bets. Secondly, the administrator discussed available resources for individuals who may be experiencing difficulties with problem gambling, including resources linked on IGB’s website. Lastly, the administrator provided details pertaining to permitted and prohibited prop bets. The following are examples of IGB prohibited, albeit common, prop bets:

• The length of national anthem.
• An occurrence related to broadcasting, such as commercials, broadcaster comments, etc.
• Content of the halftime show, such as number of songs, number of outfit changes or appearances of special guests.
• The actions or statements of individuals, including celebrities, such as Taylor Swift appearances.
• Content of player speeches or promotions such as mention of Disneyworld, proposals, thanking certain people or religious statements.

The administrator concluded by providing the revenue reports for the gaming industry. According to the administrator, there are currently 8,443 live video gaming locations operating in Illinois offering approximately 47,014 Video Gaming Terminals (VGTs), 15 licensed casinos, 13 sportsbooks, and 57 terminal operators.

In December, VGTs generated a Net Terminal Income (NTI) of approximately $251 million resulting in approximately $84 million in taxes, with the state’s share being approximately $72 million and the local municipalities receiving approximately $12 million. Additionally in December, licensed casinos generated $37 million in taxes for the state and $8 million for host communities while the Sports Wagering AGR had a reported handle of $1.3 billion while generating over $19 million in taxes to the state and over $1 miilion to Cook County. In total, for the 2023 calendar year, the combined industries of Video Gaming, Sports Wagering, and Casino activity generated over $1.5 billion in taxes with the State’s share being roughly $1.3 billion and the local municipalities sharing $283 million.

The administrator also provided the preliminary numbers for video gaming and casinos for January 2024, but stated that the reports have not been finalized yet or posted to the IGB’s website. That being said, the administrator shared that VGTs generated a Net Terminal Income (NTI) of approximately $221 million, resulting in approximately $75 million in taxes with the state’s share being approximately $64 million and the local municipalities receiving approximately $11 million, while licensed casinos generated $13 million in taxes for the state and $7 million for host communities.

Administrative Matters

The board heard comments from the administrator and Major League Soccer representatives regarding the prohibition of wagers related to “red” and “yellow cards.” A yellow card is similar to getting a foul or a penalty and if a player gets two yellow cards in a game that equates to a red card which carries a tougher penalty like suspension for the rest of the game. The reason for concern is that players have a lot of control over receiving a penalty. For instance, taking too long to get the ball in the game can get you a yellow card. So, in theory betting on 1) whether an individual player will be issued a red or yellow card during a match and 2) whether a red or yellow card will be shown during a match could affect the integrity of a match. The administrator stated that, according to the authority delegated to him, such wagers were temporarily suspended on Jan. 12, 2024 at noon and are currently prohibited in other jurisdictions including New York, Massachusetts, and Michigan. After the presentation and a few questions, the board voted to prohibit such wagers. This vote dissolves the temporary suspension issued by the administrator and permanently prohibits sports wagering licensees from offering these types of wagers.

Next, the board approved the continuation of delegation of authority to the administrator on certain matters until reassessment at the first meeting of 2025. The board stated that the delegation of authority to the administrator has served the public interest well and has been efficient through the pandemic and gaming expansion.

Casino

The casino portion of this meeting began with the board hearing the Request for Initial Consideration of Owners License Renewal for Par-A-Dice Gaming Corporation d/b/a Par-A-Dice Hotel Casino; however, no such board action was required at this time per the casino rules. The matter will be up for final consideration at the March 2024 meeting.

The board then approved the Request by FHR-Illinois LLC d/b/a The Temporary by American Place to Extend Operations (until August 2027) due to the pending lawsuit regarding the City of Waukegan’s alleged improper award of the license.

Next, the board approved the following Key Persons:

1. Claudette Soto of FHR-Illinois LLC d/b/a The Temporary by American Place
2. Lauren Westerfield of Casino Queen, Inc. d/b/a DraftKings at Casino Queen as Vice President of the Interactive Sportsbook for the Queen Casino & Entertainment, Inc.
3. Ruth Kehl of Walker’s Bluff Casino Resort, LLC as an indirect owner
4. Elite Casino Resorts, LLC as business entity with indirect ownership of Walker’s Bluff Casino Resort, LLC
5. Lyon County Resort & Casino, LLC as a business entity with indirect ownership of Walker’s Bluff Casino Resort, LLC
6. Scott County Casino, LLC as a business entity with indirect ownership of Walker’s Bluff Casino Resort, LLC
7. Washington County Casino Resort, LLC as a business entity with indirect ownership of Walker’s Bluff Casino Resort, LLC
8. Kehl Group-Scott County, LLC as a business entity with indirect ownership of Walker’s Bluff Casino Resort, LLC
9. Lyon Investment, LLC as a business entity with indirect ownership of Walker’s Bluff Casino Resort, LLC
10. Catfish Bend Riverside, LLC as a business entity with indirect ownership of Walker’s Bluff Casino Resort, LLC
11. Kehl Management Inc. as a business entity with indirect ownership of Walker’s Bluff Casino Resort, LLC
12. Kehl Development Corporation as a business entity with indirect ownership of Walker’s Bluff Casino Resort, LLC
13. River Run at Walker’s Bluff, LLC as a business entity with indirect ownership of Walker’s Bluff Casino Resort, LLC
14. ECR Williamson County, LLC as a business entity with ownership of Walker’s Bluff Casino Resort, LLC
15. Jeanne Marie Kehl as an owner of Walker’s Bluff Casino Resort, LLC
16. Kevin Andrew Kehl as an owner of Walker’s Bluff Casino Resort, LLC
17. Cody Jonathan Kehl as an owner of Walker’s Bluff Casino Resort, LLC
18. Jacob Robert Winter as an owner of Walker’s Bluff Casino Resort, LLC
19. Krystina Lynn Moore as an owner of Walker’s Bluff Casino Resort, LLC
20. Christina Marie Kehl-Anglin as an owner of Walker’s Bluff Casino Resort, LLC
21. Cynthia Ann Winter as an owner of Walker’s Bluff Casino Resort, LLC
22. Tina Marie Kehl as an owner of Walker’s Bluff Casino Resort, LLC
23. Tanner C. Kehl as an owner of Walker’s Bluff Casino Resort, LLC
24. Alexander J. Kruse as an owner of Walker’s Bluff Casino Resort, LLC
25. Ruth A. Kehl Grandchildren’s Trust Dated 11/5/97 as an owner of Walker’s Bluff Casino Resort, LLC
26. Ruth A. Kehl Grandchildren’s Trust FBO Cody J. Kehl as an owner of Walker’s Bluff Casino Resort, LLC
27. Ruth A. Kehl Grandchildren’s Trust FBO Jacob Winter as an owner of Walker’s Bluff Casino Resort, LLC
28. Ruth A. Kehl Grandchildren’s Trust FBO Tanner C. Kehl as an owner of Walker’s Bluff Casino Resort, LLC
29. Ruth A. Kehl Grandchildren’s Trust FBO Krystina L. Kehl as an owner of Walker’s Bluff Casino Resort, LLC
30. Alexander J. Kruse Trust Dated July 31, 2016 as an owner of Walker’s Bluff Casino Resort, LLC
31. Robert A Kehl 2020 Trust as an owner of Walker’s Bluff Casino Resort, LLC.

The meeting continued with presentations by Hawthorne Race Course, Inc. d/b/a Hawthorne Casino and Race Course and Fairmount Park, Inc. d/b/a FanDuel Racetrack and Sportsbook in which the representatives from each organization provided brief status updates regarding their respective projects. While neither group has begun construction, both reaffirmed that they are on track to do so as soon as possible.

The meeting continued with the board approval of Norbert Jardeleza for his role as Internal Auditor for FHR-Illinois LLC d/b/a The Temporary by American Place, Randall Peterson for his role as Vice President/General Manager for his role as Alton Casino, LLC d/b/a Argosy Casino Alton, and David Strebeck for his role as Director of Security for The Rock Island Boatworks, LLC d/b/a Bally’s Quad Cities Casino & Hotel. Additionally, the board approved 78 Level 2 and 97 Level 3 occupational licenses and issued eight notices of denial.

The administrator then issued renewals to Genesis Gaming Solutions, Inc. and all 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 an initial supplier license to Score Media and Gaming Inc. and issued 58 Level 2 occupational licenses. Next, 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 Board granting 72 terminal handler licenses and one terminal technician license. 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 one hundred 143 locations and issued denials to the following seven locations, including three for statutory prohibitions:

1. CJS Gaming Bar, LLC d/b/a CJS Gaming Bar, LLC
2. El Cactus Mexican Restaurant Corp. d/b/a El Cactus Mexican Restaurant
3. Jay Maa Mogal LLC d/b/a On the Rocks
4. Uma Bhavani, Inc. d/b/a Heart Spin City
5. DMD Bacaba 320 Inc. d/b/a Bacaba Liquors
6. JAI SRIRAM INC. d/b/a AM Star
7. Quick Hits LLC d/b/a Quick Hits LLC.

The board next denied the hearing requests of two applicants both for allegedly failing to prove a prima facie case: 1) Torrence Liquors Corp. d/b/a Bevda’s and 2)BG-ILCO LLC.

Litigation

The meeting concluded with litigation matters.

To begin, the board delegated authority to the administrator to enter into a settlement agreement pertaining to the fee petition filed in Lucky Lincoln Gaming, LLC v. IGB, Circuit Court of Cook County, 2018 CH 00593. Lucky Lincoln was awarded legal fees as it was successful in its case involving open meeting act violations by the IGB.

Next, the Board voted to reject the ALJ’s recommendation granting Lucky Lincoln’s Summary judgment motion and it remanded the matter to the ALJ to commence hearing proceedings of In re: Discipline of Lucky Lincoln Gaming, LLC, 23 GB 004.

Lastly, the board voted to adopt the Administrative Law Judge’s decision denying Mr. Camacho’s license as a final board order in 21 GB 003 In re: Application of Jose T. Camacho.

The next meeting will be held on Thursday, March 14, 2024.

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