Bill Text: IL HB0261 | 2009-2010 | 96th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Amends the Riverboat Gambling Act. Provides that applications for owners licenses shall be considered in accordance with the rules of the Illinois Gaming Board (deleting statutory deadlines for filing the applications). Makes changes in provisions concerning the determining factors in the Board's decision in granting owners licenses. Makes changes concerning the criteria for an occupational license. Provides that excursion cruises shall not exceed 4 hours for a round trip, but that the Board may grant express approval for an extended cruise on a case-by-case basis. Provides exceptions to the requirement that gambling equipment and supplies must be purchased or leased only from suppliers licensed under the Act. Provides that any winnings that are a result of a wager by a person under age 21 shall be treated as winnings for privilege tax purposes, confiscated, and forfeited to the State and deposited into the Education Assistance Fund. Provides that the privilege tax shall be paid to the Board not later than 5:00 (was 3:00) o'clock p.m. of the day after the day when the wagers were made. Requires that, within 90 days after the end of each quarter of each fiscal year, the licensed owner or manager shall transmit to the Board a compliance report on engagement procedures determined by the Board. Provides that a person under the age of 21 who enters upon a riverboat commits a petty offense and is subject to a fine. Makes changes concerning admission taxes. Makes other changes. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2009-08-15 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments [HB0261 Detail]

Download: Illinois-2009-HB0261-Introduced.html

---

96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 HB0261 Introduced 1/23/2009, by Rep. Lou Lang SYNOPSIS AS INTRODUCED:
See Index
Amends the Riverboat Gambling Act. Provides that applications for owners licenses shall be considered in accordance with the rules of the Illinois Gaming Board (deleting statutory deadlines for filing the applications). Makes changes in provisions concerning the determining factors in the Board's decision in granting owners licenses. Makes changes concerning the criteria for an occupational license. Provides that excursion cruises shall not exceed 4 hours for a round trip, but that the Board may grant express approval for an extended cruise on a case-by-case basis. Provides exceptions to the requirement that gambling equipment and supplies must be purchased or leased only from suppliers licensed under the Act. Provides that any winnings that are a result of a wager by a person under age 21 shall be treated as winnings for privilege tax purposes, confiscated, and forfeited to the State and deposited into the Education Assistance Fund. Provides that the privilege tax shall be paid to the Board not later than 5:00 (was 3:00) o'clock p.m. of the day after the day when the wagers were made. Requires that, within 90 days after the end of each quarter of each fiscal year, the licensed owner or manager shall transmit to the Board a compliance report on engagement procedures determined by the Board. Provides that a person under the age of 21 who enters upon a riverboat commits a petty offense and is subject to a fine. Makes changes concerning admission taxes. Makes other changes. Effective immediately.
LRB096 00228 AMC 10234 b
FISCAL NOTE ACT MAY APPLY
A BILL FOR
HB0261 LRB096 00228 AMC 10234 b
AN ACT concerning gaming.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Riverboat Gambling Act is amended by
changing Sections 4, 6, 7, 9, 11, 12, 13, 15, and 18 as
follows:
(230 ILCS 10/4) (from Ch. 120, par. 2404)
Sec. 4. Definitions. As used in this Act:
(a) "Board" means the Illinois Gaming Board.
(b) "Occupational license" means a license issued by the
Board to a person or entity to perform an occupation which the
Board has identified as requiring a license to engage in
riverboat gambling in Illinois.
(c) "Gambling game" includes, but is not limited to,
baccarat, twenty-one, poker, craps, slot machine, video game of
chance, roulette wheel, klondike table, punchboard, faro
layout, keno layout, numbers ticket, push card, jar ticket, or
pull tab which is authorized by the Board as a wagering device
under this Act.
(d) "Riverboat" means a self-propelled excursion boat, a
permanently moored barge, or permanently moored barges that are
permanently fixed together to operate as one vessel, on which
lawful gambling is authorized and licensed as provided in this

HB0261 - 2 - LRB096 00228 AMC 10234 b
Act.
(e) "Managers license" means a license issued by the Board
to a person or entity to manage gambling operations conducted
by the State pursuant to Section 7.3.
(f) "Dock" means the location where a riverboat moors for
the purpose of embarking passengers for and disembarking
passengers from the riverboat.
(g) "Gross receipts" means the total amount of money
exchanged for the purchase of chips, tokens or electronic cards
by riverboat patrons.
(h) "Adjusted gross receipts" means the gross receipts less
winnings paid to wagerers.
(i) "Cheat" means to alter the selection of criteria which
determine the result of a gambling game or the amount or
frequency of payment in a gambling game.
(j) "Department" means the Department of Revenue.
(k) "Gambling operation" means the conduct of authorized
gambling games upon a riverboat.
(l) "License bid" means the lump sum amount of money that
an applicant bids and agrees to pay the State in return for an
owners license that is re-issued on or after July 1, 2003.
(m) The terms "minority person", and "female", and "person
with a disability" shall have the same meaning as defined in
Section 2 of the Business Enterprise for Minorities, Females,
and Persons with Disabilities Act.
(Source: P.A. 95-331, eff. 8-21-07.)

HB0261 - 3 - LRB096 00228 AMC 10234 b
(230 ILCS 10/6) (from Ch. 120, par. 2406)
Sec. 6. Application for Owners License.
(a) A qualified person may apply to the Board for an owners
license to conduct a riverboat gambling operation as provided
in this Act. The application shall be made on forms provided by
the Board and shall contain such information as the Board
prescribes, including but not limited to the identity of the
riverboat on which such gambling operation is to be conducted
and the exact location where such riverboat will be docked, a
certification that the riverboat will be registered under this
Act at all times during which gambling operations are conducted
on board, detailed information regarding the ownership and
management of the applicant, and detailed personal information
regarding the applicant. Any application for an owners license
to be re-issued on or after June 1, 2003 shall also include the
applicant's license bid in a form prescribed by the Board.
Information provided on the application shall be used as a
basis for a thorough background investigation which the Board
shall conduct with respect to each applicant. An incomplete
application shall be cause for denial of a license by the
Board.
(b) Applicants shall submit with their application all
documents, resolutions, and letters of support from the
governing body that represents the municipality or county
wherein the licensee will dock.

HB0261 - 4 - LRB096 00228 AMC 10234 b
(c) Each applicant shall disclose the identity of every
person, association, trust or corporation having a greater than
1% direct or indirect pecuniary interest in the riverboat
gambling operation with respect to which the license is sought.
If the disclosed entity is a trust, the application shall
disclose the names and addresses of the beneficiaries; if a
corporation, the names and addresses of all stockholders and
directors; if a partnership, the names and addresses of all
partners, both general and limited.
(d) An application shall be filed and considered in
accordance with the rules of the Board with the Board by
January 1 of the year preceding any calendar year for which an
applicant seeks an owners license; however, applications for an
owners license permitting operations on January 1, 1991 shall
be filed by July 1, 1990. An application fee of $50,000 shall
be paid at the time of filing to defray the costs associated
with the background investigation conducted by the Board. If
the costs of the investigation exceed $50,000, the applicant
shall pay the additional amount to the Board. If the costs of
the investigation are less than $50,000, the applicant shall
receive a refund of the remaining amount. All information,
records, interviews, reports, statements, memoranda or other
data supplied to or used by the Board in the course of its
review or investigation of an application for a license under
this Act shall be privileged, strictly confidential and shall
be used only for the purpose of evaluating an applicant. Such

HB0261 - 5 - LRB096 00228 AMC 10234 b
information, records, interviews, reports, statements,
memoranda or other data shall not be admissible as evidence,
nor discoverable in any action of any kind in any court or
before any tribunal, board, agency or person, except for any
action deemed necessary by the Board.
(e) The Board shall charge each applicant a fee set by the
Department of State Police to defray the costs associated with
the search and classification of fingerprints obtained by the
Board with respect to the applicant's application. These fees
shall be paid into the State Police Services Fund.
(f) The licensed owner shall be the person primarily
responsible for the boat itself. Only one riverboat gambling
operation may be authorized by the Board on any riverboat. The
applicant must identify each riverboat it intends to use and
certify that the riverboat: (1) has the authorized capacity
required in this Act; (2) is accessible to disabled persons;
and (3) is fully registered and licensed in accordance with any
applicable laws.
(g) A person who knowingly makes a false statement on an
application is guilty of a Class A misdemeanor.
(Source: P.A. 93-28, eff. 6-20-03.)
(230 ILCS 10/7) (from Ch. 120, par. 2407)
Sec. 7. Owners Licenses.
(a) The Board shall issue owners licenses to persons, firms
or corporations which apply for such licenses upon payment to

HB0261 - 6 - LRB096 00228 AMC 10234 b
the Board of the non-refundable license fee set by the Board,
upon payment of a $25,000 license fee for the first year of
operation and a $5,000 license fee for each succeeding year and
upon a determination by the Board that the applicant is
eligible for an owners license pursuant to this Act and the
rules of the Board. For a period of 2 years beginning on the
effective date of this amendatory Act of the 94th General
Assembly, as a condition of licensure and as an alternative
source of payment for those funds payable under subsection
(c-5) of Section 13 of the Riverboat Gambling Act, any owners
licensee that holds or receives its owners license on or after
the effective date of this amendatory Act of the 94th General
Assembly, other than an owners licensee operating a riverboat
with adjusted gross receipts in calendar year 2004 of less than
$200,000,000, must pay into the Horse Racing Equity Trust Fund,
in addition to any other payments required under this Act, an
amount equal to 3% of the adjusted gross receipts received by
the owners licensee. The payments required under this Section
shall be made by the owners licensee to the State Treasurer no
later than 3:00 o'clock p.m. of the day after the day when the
adjusted gross receipts were received by the owners licensee. A
person, firm or corporation is ineligible to receive an owners
license if:
(1) the person has been convicted of a felony under the
laws of this State, any other state, or the United States;
(2) the person has been convicted of any violation of

HB0261 - 7 - LRB096 00228 AMC 10234 b
Article 28 of the Criminal Code of 1961, or substantially
similar laws of any other jurisdiction;
(3) the person has submitted an application for a
license under this Act which contains false information;
(4) the person is a member of the Board;
(5) a person defined in (1), (2), (3) or (4) is an
officer, director or managerial employee of the firm or
corporation;
(6) the firm or corporation employs a person defined in
(1), (2), (3) or (4) who participates in the management or
operation of gambling operations authorized under this
Act;
(7) (blank); or
(8) a license of the person, firm or corporation issued
under this Act, or a license to own or operate gambling
facilities in any other jurisdiction, has been revoked.
(b) In determining whether to grant an owners license to an
applicant, the Board shall consider:
(1) the character, reputation, experience and
financial integrity of the applicants and of any other or
separate person that either:
(A) controls, directly or indirectly, such
applicant, or
(B) is controlled, directly or indirectly, by such
applicant or by a person which controls, directly or
indirectly, such applicant;

HB0261 - 8 - LRB096 00228 AMC 10234 b
(2) the facilities or proposed facilities for the
conduct of riverboat gambling;
(3) the highest prospective total revenue to be derived
by the State from the conduct of riverboat gambling;
(4) the extent to which the ownership of the applicant
reflects the diversity of the State by including minority
persons, and females, and persons with a disability and the
good faith affirmative action plan of each applicant to
recruit, train and upgrade minority persons, and females,
and persons with a disability in all employment
classifications;
(5) the financial ability of the applicant to purchase
and maintain adequate liability and casualty insurance;
(6) whether the applicant has adequate capitalization
to provide and maintain, for the duration of a license, a
riverboat;
(7) the extent to which the applicant exceeds or meets
other standards for the issuance of an owners license which
the Board may adopt by rule; and
(8) The amount of the applicant's license bid.
(c) Each owners license shall specify the place where
riverboats shall operate and dock.
(d) Each applicant shall submit with his application, on
forms provided by the Board, 2 sets of his fingerprints.
(e) The Board may issue up to 10 licenses authorizing the
holders of such licenses to own riverboats. In the application

HB0261 - 9 - LRB096 00228 AMC 10234 b
for an owners license, the applicant shall state the dock at
which the riverboat is based and the water on which the
riverboat will be located. The Board shall issue 5 licenses to
become effective not earlier than January 1, 1991. Three of
such licenses shall authorize riverboat gambling on the
Mississippi River, or, with approval by the municipality in
which the riverboat was docked on August 7, 2003 and with Board
approval, be authorized to relocate to a new location, in a
municipality that (1) borders on the Mississippi River or is
within 5 miles of the city limits of a municipality that
borders on the Mississippi River and (2), on August 7, 2003,
had a riverboat conducting riverboat gambling operations
pursuant to a license issued under this Act; one of which shall
authorize riverboat gambling from a home dock in the city of
East St. Louis. One other license shall authorize riverboat
gambling on the Illinois River south of Marshall County. The
Board shall issue one additional license to become effective
not earlier than March 1, 1992, which shall authorize riverboat
gambling on the Des Plaines River in Will County. The Board may
issue 4 additional licenses to become effective not earlier
than March 1, 1992. In determining the water upon which
riverboats will operate, the Board shall consider the economic
benefit which riverboat gambling confers on the State, and
shall seek to assure that all regions of the State share in the
economic benefits of riverboat gambling.
In granting all licenses, the Board may give favorable

HB0261 - 10 - LRB096 00228 AMC 10234 b
consideration to economically depressed areas of the State, to
applicants presenting plans which provide for significant
economic development over a large geographic area, and to
applicants who currently operate non-gambling riverboats in
Illinois. The Board shall review all applications for owners
licenses, and shall inform each applicant of the Board's
decision. The Board may grant an owners license to an applicant
that has not submitted the highest license bid, but if it does
not select the highest bidder, the Board shall issue a written
decision explaining why another applicant was selected and
identifying the factors set forth in this Section that favored
the winning bidder.
In addition to any other revocation powers granted to the
Board under this Act, the Board may revoke the owners license
of a licensee which fails to begin conducting gambling within
15 months of receipt of the Board's approval of the application
if the Board determines that license revocation is in the best
interests of the State.
(f) The first 10 owners licenses issued under this Act
shall permit the holder to own up to 2 riverboats and equipment
thereon for a period of 3 years after the effective date of the
license. Holders of the first 10 owners licenses must pay the
annual license fee for each of the 3 years during which they
are authorized to own riverboats.
(g) Upon the termination, expiration, or revocation of each
of the first 10 licenses, which shall be issued for a 3 year

HB0261 - 11 - LRB096 00228 AMC 10234 b
period, all licenses are renewable annually upon payment of the
fee and a determination by the Board that the licensee
continues to meet all of the requirements of this Act and the
Board's rules. However, for licenses renewed on or after May 1,
1998, renewal shall be for a period of 4 years, unless the
Board sets a shorter period.
(h) An owners license shall entitle the licensee to own up
to 2 riverboats. A licensee shall limit the number of gambling
participants to 1,200 for any such owners license. A licensee
may operate both of its riverboats concurrently, provided that
the total number of gambling participants on both riverboats
does not exceed 1,200. Riverboats licensed to operate on the
Mississippi River and the Illinois River south of Marshall
County shall have an authorized capacity of at least 500
persons. Any other riverboat licensed under this Act shall have
an authorized capacity of at least 400 persons.
(i) A licensed owner is authorized to apply to the Board
for and, if approved therefor, to receive all licenses from the
Board necessary for the operation of a riverboat, including a
liquor license, a license to prepare and serve food for human
consumption, and other necessary licenses. All use, occupation
and excise taxes which apply to the sale of food and beverages
in this State and all taxes imposed on the sale or use of
tangible personal property apply to such sales aboard the
riverboat.
(j) The Board may issue or re-issue a license authorizing a

HB0261 - 12 - LRB096 00228 AMC 10234 b
riverboat to dock in a municipality or approve a relocation
under Section 11.2 only if, prior to the issuance or
re-issuance of the license or approval, the governing body of
the municipality in which the riverboat will dock has by a
majority vote approved the docking of riverboats in the
municipality. The Board may issue or re-issue a license
authorizing a riverboat to dock in areas of a county outside
any municipality or approve a relocation under Section 11.2
only if, prior to the issuance or re-issuance of the license or
approval, the governing body of the county has by a majority
vote approved of the docking of riverboats within such areas.
(Source: P.A. 93-28, eff. 6-20-03; 93-453, eff. 8-7-03; 94-667,
eff. 8-23-05; 94-804, eff. 5-26-06.)
(230 ILCS 10/9) (from Ch. 120, par. 2409)
Sec. 9. Occupational licenses.
(a) The Board may issue an occupational license to an
applicant upon the payment of a non-refundable fee set by the
Board, upon a determination by the Board that the applicant is
eligible for an occupational license and upon payment of an
annual license fee in an amount to be established. To be
eligible for an occupational license, an applicant must:
(1) be at least 21 years of age if the applicant will
perform any function involved in gaming by patrons. Any
applicant seeking an occupational license for a non-gaming
function shall be at least 18 years of age;

HB0261 - 13 - LRB096 00228 AMC 10234 b
(2) not have been convicted of a felony offense, a
violation of Article 28 of the Criminal Code of 1961, or a
similar statute of any other jurisdiction, or a crime
involving dishonesty or moral turpitude;
(2.5) not have been convicted of a crime, other than a
crime described in item (2) of this subsection (a),
involving dishonesty or moral turpitude, except that the
Board may, in its discretion, issue an occupational license
to a person who has been convicted of a crime described in
this item (2.5) more than 10 years prior to his or her
application and has not subsequently been convicted of any
other crime;
(3) have demonstrated a level of skill or knowledge
which the Board determines to be necessary in order to
operate gambling aboard a riverboat; and
(4) have met standards for the holding of an
occupational license as adopted by rules of the Board. Such
rules shall provide that any person or entity seeking an
occupational license to manage gambling operations
hereunder shall be subject to background inquiries and
further requirements similar to those required of
applicants for an owners license. Furthermore, such rules
shall provide that each such entity shall be permitted to
manage gambling operations for only one licensed owner.
(b) Each application for an occupational license shall be
on forms prescribed by the Board and shall contain all

HB0261 - 14 - LRB096 00228 AMC 10234 b
information required by the Board. The applicant shall set
forth in the application: whether he has been issued prior
gambling related licenses; whether he has been licensed in any
other state under any other name, and, if so, such name and his
age; and whether or not a permit or license issued to him in
any other state has been suspended, restricted or revoked, and,
if so, for what period of time.
(c) Each applicant shall submit with his application, on
forms provided by the Board, 2 sets of his fingerprints. The
Board shall charge each applicant a fee set by the Department
of State Police to defray the costs associated with the search
and classification of fingerprints obtained by the Board with
respect to the applicant's application. These fees shall be
paid into the State Police Services Fund.
(d) The Board may in its discretion refuse an occupational
license to any person: (1) who is unqualified to perform the
duties required of such applicant; (2) who fails to disclose or
states falsely any information called for in the application;
(3) who has been found guilty of a violation of this Act or
whose prior gambling related license or application therefor
has been suspended, restricted, revoked or denied for just
cause in any other state; or (4) for any other just cause.
(e) The Board may suspend, revoke or restrict any
occupational licensee: (1) for violation of any provision of
this Act; (2) for violation of any of the rules and regulations
of the Board; (3) for any cause which, if known to the Board,

HB0261 - 15 - LRB096 00228 AMC 10234 b
would have disqualified the applicant from receiving such
license; or (4) for default in the payment of any obligation or
debt due to the State of Illinois; or (5) for any other just
cause.
(f) A person who knowingly makes a false statement on an
application is guilty of a Class A misdemeanor.
(g) Any license issued pursuant to this Section shall be
valid for a period of one year from the date of issuance.
(h) Nothing in this Act shall be interpreted to prohibit a
licensed owner from entering into an agreement with a public
community college or a school approved under the Private
Business and Vocational Schools Act for the training of any
occupational licensee. Any training offered by such a school
shall be in accordance with a written agreement between the
licensed owner and the school.
(i) Any training provided for occupational licensees may be
conducted either on the riverboat or at a school with which a
licensed owner has entered into an agreement pursuant to
subsection (h).
(Source: P.A. 86-1029; 87-826.)
(230 ILCS 10/11) (from Ch. 120, par. 2411)
Sec. 11. Conduct of gambling. Gambling may be conducted by
licensed owners or licensed managers on behalf of the State
aboard riverboats, subject to the following standards:
(1) A licensee may conduct riverboat gambling

HB0261 - 16 - LRB096 00228 AMC 10234 b
authorized under this Act regardless of whether it conducts
excursion cruises. A licensee may permit the continuous
ingress and egress of passengers on a riverboat not used
for excursion cruises for the purpose of gambling.
Excursion cruises shall not exceed 4 hours for a round
trip. However, the Board may grant express approval for an
extended cruise on a case-by-case basis.
(2) (Blank).
(3) Minimum and maximum wagers on games shall be set by
the licensee.
(4) Agents of the Board and the Department of State
Police may board and inspect any riverboat at any time for
the purpose of determining whether this Act is being
complied with. Every riverboat, if under way and being
hailed by a law enforcement officer or agent of the Board,
must stop immediately and lay to.
(5) Employees of the Board shall have the right to be
present on the riverboat or on adjacent facilities under
the control of the licensee.
(6) Gambling equipment and supplies customarily used
in conducting riverboat gambling must be purchased or
leased only from suppliers licensed for such purpose under
this Act. However, the Board may approve the sale or lease
of gambling equipment and supplies by a licensed owner and
a licensed owner may bring gambling equipment and supplies
that it has legally acquired into this State for use in

HB0261 - 17 - LRB096 00228 AMC 10234 b
Illinois with the approval of the Board.
(7) Persons licensed under this Act shall permit no
form of wagering on gambling games except as permitted by
this Act.
(8) Wagers may be received only from a person present
on a licensed riverboat. No person present on a licensed
riverboat shall place or attempt to place a wager on behalf
of another person who is not present on the riverboat.
(9) Wagering shall not be conducted with money or other
negotiable currency.
(10) A person under age 21 shall not be permitted on an
area of a riverboat where gambling is being conducted,
except for a person at least 18 years of age who is an
employee of the riverboat gambling operation. No employee
under age 21 shall perform any function involved in
gambling by the patrons. No person under age 21 shall be
permitted to make a wager under this Act, and any winnings
that are a result of a wager by a person under age 21,
whether or not paid by a licensee, shall be treated as
winnings for the privilege tax purposes, confiscated, and
forfeited to the State and deposited into the Education
Assistance Fund.
(11) Gambling excursion cruises are permitted only
when the waterway for which the riverboat is licensed is
navigable, as determined by the Board in consultation with
the U.S. Army Corps of Engineers. This paragraph (11) does

HB0261 - 18 - LRB096 00228 AMC 10234 b
not limit the ability of a licensee to conduct gambling
authorized under this Act when gambling excursion cruises
are not permitted.
(12) All tokens, chips or electronic cards used to make
wagers must be purchased from a licensed owner or manager
either aboard a riverboat or at an onshore facility which
has been approved by the Board and which is located where
the riverboat docks. The tokens, chips or electronic cards
may be purchased by means of an agreement under which the
owner or manager extends credit to the patron. Such tokens,
chips or electronic cards may be used while aboard the
riverboat only for the purpose of making wagers on gambling
games.
(13) Notwithstanding any other Section of this Act, in
addition to the other licenses authorized under this Act,
the Board may issue special event licenses allowing persons
who are not otherwise licensed to conduct riverboat
gambling to conduct such gambling on a specified date or
series of dates. Riverboat gambling under such a license
may take place on a riverboat not normally used for
riverboat gambling. The Board shall establish standards,
fees and fines for, and limitations upon, such licenses,
which may differ from the standards, fees, fines and
limitations otherwise applicable under this Act. All such
fees shall be deposited into the State Gaming Fund. All
such fines shall be deposited into the Education Assistance

HB0261 - 19 - LRB096 00228 AMC 10234 b
Fund, created by Public Act 86-0018, of the State of
Illinois.
(14) In addition to the above, gambling must be
conducted in accordance with all rules adopted by the
Board.
(Source: P.A. 93-28, eff. 6-20-03.)
(230 ILCS 10/12) (from Ch. 120, par. 2412)
Sec. 12. Admission tax; fees.
(a) A tax is hereby imposed upon admissions to riverboats
operated by licensed owners authorized pursuant to this Act.
Until July 1, 2002, the rate is $2 per person admitted. From
July 1, 2002 until July 1, 2003, the rate is $3 per person
admitted. From July 1, 2003 until August 23, 2005 (the
effective date of Public Act 94-673) this amendatory Act of the
94th General Assembly, for a licensee that admitted 1,000,000
persons or fewer in the previous calendar year, the rate is $3
per person admitted; for a licensee that admitted more than
1,000,000 but no more than 2,300,000 persons in the previous
calendar year, the rate is $4 per person admitted; and for a
licensee that admitted more than 2,300,000 persons in the
previous calendar year, the rate is $5 per person admitted.
From August 23, 2005 ( Beginning on the effective date of Public
Act 94-673) until the effective date of this amendatory Act of
the 96th General Assembly this amendatory Act of the 94th
General Assembly, for a licensee that admitted 1,000,000

HB0261 - 20 - LRB096 00228 AMC 10234 b
persons or fewer in calendar year 2004, the rate is $2 per
person admitted, and for all other licensees the rate is $3 per
person admitted. Beginning on the effective date of this
amendatory Act of the 96th General Assembly, the rate is $3 per
person admitted for all owners licensees. This admission tax is
imposed upon the licensed owner conducting gambling.
(1) The admission tax shall be paid for each admission,
except that a person who exits a riverboat gambling
facility and reenters that riverboat gambling facility
within the same gaming day shall be subject only to the
initial admission tax.
(2) (Blank).
(3) The riverboat licensee may issue tax-free passes to
actual and necessary officials and employees of the
licensee or other persons actually working on the
riverboat.
(4) The number and issuance of tax-free passes is
subject to the rules of the Board, and a list of all
persons to whom the tax-free passes are issued shall be
filed with the Board.
(a-5) A fee is hereby imposed upon admissions operated by
licensed managers on behalf of the State pursuant to Section
7.3 at the rates provided in this subsection (a-5). For a
licensee that admitted 1,000,000 persons or fewer in the
previous calendar year, the rate is $3 per person admitted; for
a licensee that admitted more than 1,000,000 but no more than

HB0261 - 21 - LRB096 00228 AMC 10234 b
2,300,000 persons in the previous calendar year, the rate is $4
per person admitted; and for a licensee that admitted more than
2,300,000 persons in the previous calendar year, the rate is $5
per person admitted.
(1) The admission fee shall be paid for each admission.
(2) (Blank).
(3) The licensed manager may issue fee-free passes to
actual and necessary officials and employees of the manager
or other persons actually working on the riverboat.
(4) The number and issuance of fee-free passes is
subject to the rules of the Board, and a list of all
persons to whom the fee-free passes are issued shall be
filed with the Board.
(b) From the tax imposed under subsection (a) and the fee
imposed under subsection (a-5), a municipality shall receive
from the State $1 for each person embarking on a riverboat
docked within the municipality, and a county shall receive $1
for each person embarking on a riverboat docked within the
county but outside the boundaries of any municipality. The
municipality's or county's share shall be collected by the
Board on behalf of the State and remitted quarterly by the
State, subject to appropriation, to the treasurer of the unit
of local government for deposit in the general fund.
(c) The licensed owner shall pay the entire admission tax
to the Board and the licensed manager shall pay the entire
admission fee to the Board. Such payments shall be made daily.

HB0261 - 22 - LRB096 00228 AMC 10234 b
Accompanying each payment shall be a return on forms provided
by the Board which shall include other information regarding
admissions as the Board may require. Failure to submit either
the payment or the return within the specified time may result
in suspension or revocation of the owners or managers license.
(d) The Board shall administer and collect the admission
tax imposed by this Section, to the extent practicable, in a
manner consistent with the provisions of Sections 4, 5, 5a, 5b,
5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9 and 10 of the
Retailers' Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act.
(Source: P.A. 94-673, eff. 8-23-05; 95-663, eff. 10-11-07.)
(230 ILCS 10/13) (from Ch. 120, par. 2413)
Sec. 13. Wagering tax; rate; distribution.
(a) Until January 1, 1998, a tax is imposed on the adjusted
gross receipts received from gambling games authorized under
this Act at the rate of 20%.
(a-1) From January 1, 1998 until July 1, 2002, a privilege
tax is imposed on persons engaged in the business of conducting
riverboat gambling operations, based on the adjusted gross
receipts received by a licensed owner from gambling games
authorized under this Act at the following rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
20% of annual adjusted gross receipts in excess of

HB0261 - 23 - LRB096 00228 AMC 10234 b
$25,000,000 but not exceeding $50,000,000;
25% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
30% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
35% of annual adjusted gross receipts in excess of
$100,000,000.
(a-2) From July 1, 2002 until July 1, 2003, a privilege tax
is imposed on persons engaged in the business of conducting
riverboat gambling operations, other than licensed managers
conducting riverboat gambling operations on behalf of the
State, based on the adjusted gross receipts received by a
licensed owner from gambling games authorized under this Act at
the following rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
22.5% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000;
27.5% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
32.5% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
37.5% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $150,000,000;
45% of annual adjusted gross receipts in excess of
$150,000,000 but not exceeding $200,000,000;

HB0261 - 24 - LRB096 00228 AMC 10234 b
50% of annual adjusted gross receipts in excess of
$200,000,000.
(a-3) Beginning July 1, 2003, a privilege tax is imposed on
persons engaged in the business of conducting riverboat
gambling operations, other than licensed managers conducting
riverboat gambling operations on behalf of the State, based on
the adjusted gross receipts received by a licensed owner from
gambling games authorized under this Act at the following
rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
27.5% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $37,500,000;
32.5% of annual adjusted gross receipts in excess of
$37,500,000 but not exceeding $50,000,000;
37.5% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
45% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
50% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $250,000,000;
70% of annual adjusted gross receipts in excess of
$250,000,000.
An amount equal to the amount of wagering taxes collected
under this subsection (a-3) that are in addition to the amount
of wagering taxes that would have been collected if the

HB0261 - 25 - LRB096 00228 AMC 10234 b
wagering tax rates under subsection (a-2) were in effect shall
be paid into the Common School Fund.
The privilege tax imposed under this subsection (a-3) shall
no longer be imposed beginning on the earlier of (i) July 1,
2005; (ii) the first date after June 20, 2003 that riverboat
gambling operations are conducted pursuant to a dormant
license; or (iii) the first day that riverboat gambling
operations are conducted under the authority of an owners
license that is in addition to the 10 owners licenses initially
authorized under this Act. For the purposes of this subsection
(a-3), the term "dormant license" means an owners license that
is authorized by this Act under which no riverboat gambling
operations are being conducted on June 20, 2003.
(a-4) Beginning on the first day on which the tax imposed
under subsection (a-3) is no longer imposed, a privilege tax is
imposed on persons engaged in the business of conducting
riverboat gambling operations, other than licensed managers
conducting riverboat gambling operations on behalf of the
State, based on the adjusted gross receipts received by a
licensed owner from gambling games authorized under this Act at
the following rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
22.5% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000;
27.5% of annual adjusted gross receipts in excess of

HB0261 - 26 - LRB096 00228 AMC 10234 b
$50,000,000 but not exceeding $75,000,000;
32.5% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
37.5% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $150,000,000;
45% of annual adjusted gross receipts in excess of
$150,000,000 but not exceeding $200,000,000;
50% of annual adjusted gross receipts in excess of
$200,000,000.
(a-8) Riverboat gambling operations conducted by a
licensed manager on behalf of the State are not subject to the
tax imposed under this Section.
(a-10) The taxes imposed by this Section shall be paid by
the licensed owner to the Board not later than 5:00 3:00
o'clock p.m. of the day after the day when the wagers were
made.
(a-15) If the privilege tax imposed under subsection (a-3)
is no longer imposed pursuant to item (i) of the last paragraph
of subsection (a-3), then by June 15 of each year, each owners
licensee, other than an owners licensee that admitted 1,000,000
persons or fewer in calendar year 2004, must, in addition to
the payment of all amounts otherwise due under this Section,
pay to the Board a reconciliation payment in the amount, if
any, by which the licensed owner's base amount exceeds the
amount of net privilege tax paid by the licensed owner to the
Board in the then current State fiscal year. A licensed owner's

HB0261 - 27 - LRB096 00228 AMC 10234 b
net privilege tax obligation due for the balance of the State
fiscal year shall be reduced up to the total of the amount paid
by the licensed owner in its June 15 reconciliation payment.
The obligation imposed by this subsection (a-15) is binding on
any person, firm, corporation, or other entity that acquires an
ownership interest in any such owners license. The obligation
imposed under this subsection (a-15) terminates on the earliest
of: (i) July 1, 2007, (ii) the first day after the effective
date of this amendatory Act of the 94th General Assembly that
riverboat gambling operations are conducted pursuant to a
dormant license, (iii) the first day that riverboat gambling
operations are conducted under the authority of an owners
license that is in addition to the 10 owners licenses initially
authorized under this Act, or (iv) the first day that a
licensee under the Illinois Horse Racing Act of 1975 conducts
gaming operations with slot machines or other electronic gaming
devices. The Board must reduce the obligation imposed under
this subsection (a-15) by an amount the Board deems reasonable
for any of the following reasons: (A) an act or acts of God,
(B) an act of bioterrorism or terrorism or a bioterrorism or
terrorism threat that was investigated by a law enforcement
agency, or (C) a condition beyond the control of the owners
licensee that does not result from any act or omission by the
owners licensee or any of its agents and that poses a hazardous
threat to the health and safety of patrons. If an owners
licensee pays an amount in excess of its liability under this

HB0261 - 28 - LRB096 00228 AMC 10234 b
Section, the Board shall apply the overpayment to future
payments required under this Section.
For purposes of this subsection (a-15):
"Act of God" means an incident caused by the operation of
an extraordinary force that cannot be foreseen, that cannot be
avoided by the exercise of due care, and for which no person
can be held liable.
"Base amount" means the following:
For a riverboat in Alton, $31,000,000.
For a riverboat in East Peoria, $43,000,000.
For the Empress riverboat in Joliet, $86,000,000.
For a riverboat in Metropolis, $45,000,000.
For the Harrah's riverboat in Joliet, $114,000,000.
For a riverboat in Aurora, $86,000,000.
For a riverboat in East St. Louis, $48,500,000.
For a riverboat in Elgin, $198,000,000.
"Dormant license" has the meaning ascribed to it in
subsection (a-3).
"Net privilege tax" means all privilege taxes paid by a
licensed owner to the Board under this Section, less all
payments made from the State Gaming Fund pursuant to subsection
(b) of this Section.
The changes made to this subsection (a-15) by Public Act
94-839 are intended to restate and clarify the intent of Public
Act 94-673 with respect to the amount of the payments required
to be made under this subsection by an owners licensee to the

HB0261 - 29 - LRB096 00228 AMC 10234 b
Board.
(b) Until January 1, 1998, 25% of the tax revenue deposited
in the State Gaming Fund under this Section shall be paid,
subject to appropriation by the General Assembly, to the unit
of local government which is designated as the home dock of the
riverboat. Beginning January 1, 1998, from the tax revenue
deposited in the State Gaming Fund under this Section, an
amount equal to 5% of adjusted gross receipts generated by a
riverboat shall be paid monthly, subject to appropriation by
the General Assembly, to the unit of local government that is
designated as the home dock of the riverboat. From the tax
revenue deposited in the State Gaming Fund pursuant to
riverboat gambling operations conducted by a licensed manager
on behalf of the State, an amount equal to 5% of adjusted gross
receipts generated pursuant to those riverboat gambling
operations shall be paid monthly, subject to appropriation by
the General Assembly, to the unit of local government that is
designated as the home dock of the riverboat upon which those
riverboat gambling operations are conducted.
(c) Appropriations, as approved by the General Assembly,
may be made from the State Gaming Fund to the Department of
Revenue and the Department of State Police for the
administration and enforcement of this Act, or to the
Department of Human Services for the administration of programs
to treat problem gambling.
(c-5) Before May 26, 2006 (the effective date of Public Act

HB0261 - 30 - LRB096 00228 AMC 10234 b
94-804) and beginning 2 years after May 26, 2006 (the effective
date of Public Act 94-804), after the payments required under
subsections (b) and (c) have been made, an amount equal to 15%
of the adjusted gross receipts of (1) an owners licensee that
relocates pursuant to Section 11.2, (2) an owners licensee
conducting riverboat gambling operations pursuant to an owners
license that is initially issued after June 25, 1999, or (3)
the first riverboat gambling operations conducted by a licensed
manager on behalf of the State under Section 7.3, whichever
comes first, shall be paid from the State Gaming Fund into the
Horse Racing Equity Fund.
(c-10) Each year the General Assembly shall appropriate
from the General Revenue Fund to the Education Assistance Fund
an amount equal to the amount paid into the Horse Racing Equity
Fund pursuant to subsection (c-5) in the prior calendar year.
(c-15) After the payments required under subsections (b),
(c), and (c-5) have been made, an amount equal to 2% of the
adjusted gross receipts of (1) an owners licensee that
relocates pursuant to Section 11.2, (2) an owners licensee
conducting riverboat gambling operations pursuant to an owners
license that is initially issued after June 25, 1999, or (3)
the first riverboat gambling operations conducted by a licensed
manager on behalf of the State under Section 7.3, whichever
comes first, shall be paid, subject to appropriation from the
General Assembly, from the State Gaming Fund to each home rule
county with a population of over 3,000,000 inhabitants for the

HB0261 - 31 - LRB096 00228 AMC 10234 b
purpose of enhancing the county's criminal justice system.
(c-20) Each year the General Assembly shall appropriate
from the General Revenue Fund to the Education Assistance Fund
an amount equal to the amount paid to each home rule county
with a population of over 3,000,000 inhabitants pursuant to
subsection (c-15) in the prior calendar year.
(c-25) After the payments required under subsections (b),
(c), (c-5) and (c-15) have been made, an amount equal to 2% of
the adjusted gross receipts of (1) an owners licensee that
relocates pursuant to Section 11.2, (2) an owners licensee
conducting riverboat gambling operations pursuant to an owners
license that is initially issued after June 25, 1999, or (3)
the first riverboat gambling operations conducted by a licensed
manager on behalf of the State under Section 7.3, whichever
comes first, shall be paid from the State Gaming Fund to
Chicago State University.
(d) From time to time, the Board shall transfer the
remainder of the funds generated by this Act into the Education
Assistance Fund, created by Public Act 86-0018, of the State of
Illinois.
(e) Nothing in this Act shall prohibit the unit of local
government designated as the home dock of the riverboat from
entering into agreements with other units of local government
in this State or in other states to share its portion of the
tax revenue.
(f) To the extent practicable, the Board shall administer

HB0261 - 32 - LRB096 00228 AMC 10234 b
and collect the wagering taxes imposed by this Section in a
manner consistent with the provisions of Sections 4, 5, 5a, 5b,
5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the
Retailers' Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act.
(Source: P.A. 94-673, eff. 8-23-05; 94-804, eff. 5-26-06;
94-839, eff. 6-6-06; 95-331, eff. 8-21-07.)
(230 ILCS 10/15) (from Ch. 120, par. 2415)
Sec. 15. Audit of Licensee Operations. Annually Within 90
days after the end of each quarter of each fiscal year, the
licensed owner or manager shall transmit to the Board an audit
of the financial transactions and condition of the licensee's
total operations. Additionally, within 90 days after the end of
each quarter of each fiscal year, the licensed owner or manager
shall transmit to the Board a compliance report on engagement
procedures determined by the Board. All audits and compliance
engagements shall be conducted by certified public accountants
selected by the Board. Each certified public accountant must be
registered in the State of Illinois under the Illinois Public
Accounting Act. The compensation for each certified public
accountant shall be paid directly by the licensed owner or
manager to the certified public accountant.
(Source: P.A. 93-28, eff. 6-20-03.)
(230 ILCS 10/18) (from Ch. 120, par. 2418)

HB0261 - 33 - LRB096 00228 AMC 10234 b
Sec. 18. Prohibited Activities - Penalty.
(a) A person is guilty of a Class A misdemeanor for doing
any of the following:
(1) Conducting gambling where wagering is used or to be
used without a license issued by the Board.
(2) Conducting gambling where wagering is permitted
other than in the manner specified by Section 11.
(b) A person is guilty of a Class B misdemeanor for doing
any of the following:
(1) permitting a person under 21 years to make a wager;
or
(2) violating paragraph (12) of subsection (a) of
Section 11 of this Act.
(c) A person wagering or accepting a wager at any location
outside the riverboat is subject to the penalties in paragraphs
(1) or (2) of subsection (a) of Section 28-1 of the Criminal
Code of 1961.
(d) A person commits a Class 4 felony and, in addition,
shall be barred for life from riverboats under the jurisdiction
of the Board, if the person does any of the following:
(1) Offers, promises, or gives anything of value or
benefit to a person who is connected with a riverboat owner
including, but not limited to, an officer or employee of a
licensed owner or holder of an occupational license
pursuant to an agreement or arrangement or with the intent
that the promise or thing of value or benefit will

HB0261 - 34 - LRB096 00228 AMC 10234 b
influence the actions of the person to whom the offer,
promise, or gift was made in order to affect or attempt to
affect the outcome of a gambling game, or to influence
official action of a member of the Board.
(2) Solicits or knowingly accepts or receives a promise
of anything of value or benefit while the person is
connected with a riverboat including, but not limited to,
an officer or employee of a licensed owner, or holder of an
occupational license, pursuant to an understanding or
arrangement or with the intent that the promise or thing of
value or benefit will influence the actions of the person
to affect or attempt to affect the outcome of a gambling
game, or to influence official action of a member of the
Board.
(3) Uses or possesses with the intent to use a device
to assist:
(i) In projecting the outcome of the game.
(ii) In keeping track of the cards played.
(iii) In analyzing the probability of the
occurrence of an event relating to the gambling game.
(iv) In analyzing the strategy for playing or
betting to be used in the game except as permitted by
the Board.
(4) Cheats at a gambling game.
(5) Manufactures, sells, or distributes any cards,
chips, dice, game or device which is intended to be used to

HB0261 - 35 - LRB096 00228 AMC 10234 b
violate any provision of this Act.
(6) Alters or misrepresents the outcome of a gambling
game on which wagers have been made after the outcome is
made sure but before it is revealed to the players.
(7) Places a bet after acquiring knowledge, not
available to all players, of the outcome of the gambling
game which is subject of the bet or to aid a person in
acquiring the knowledge for the purpose of placing a bet
contingent on that outcome.
(8) Claims, collects, or takes, or attempts to claim,
collect, or take, money or anything of value in or from the
gambling games, with intent to defraud, without having made
a wager contingent on winning a gambling game, or claims,
collects, or takes an amount of money or thing of value of
greater value than the amount won.
(9) Uses counterfeit chips or tokens in a gambling
game.
(10) Possesses any key or device designed for the
purpose of opening, entering, or affecting the operation of
a gambling game, drop box, or an electronic or mechanical
device connected with the gambling game or for removing
coins, tokens, chips or other contents of a gambling game.
This paragraph (10) does not apply to a gambling licensee
or employee of a gambling licensee acting in furtherance of
the employee's employment.
(e) The possession of more than one of the devices

HB0261 - 36 - LRB096 00228 AMC 10234 b
described in subsection (d), paragraphs (3), (5), or (10)
permits a rebuttable presumption that the possessor intended to
use the devices for cheating.
(f) A person under the age of 21 who, except as authorized
under paragraph (10) of Section 11, enters upon a riverboat
commits a petty offense and is subject to a fine of not less
than $100 or more than $250 for a first offense and of not less
than $200 or more than $500 for a second or subsequent offense.
An action to prosecute any crime occurring on a riverboat
shall be tried in the county of the dock at which the riverboat
is based.
(Source: P.A. 91-40, eff. 6-25-99.)
Section 99. Effective date. This Act takes effect upon
becoming law.
HB0261 - 37 - LRB096 00228 AMC 10234 b
INDEX
Statutes amended in order of appearance
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 10/9 from Ch. 120, par. 2409
230 ILCS 10/11 from Ch. 120, par. 2411
230 ILCS 10/12 from Ch. 120, par. 2412
230 ILCS 10/13 from Ch. 120, par. 2413
230 ILCS 10/15 from Ch. 120, par. 2415
230 ILCS 10/18