SB2487 97TH GENERAL ASSEMBLY

LRB097 12566 ASK 57051 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB2487

Introduced 10/12/2011, by Sen. Michael Noland

SYNOPSIS AS INTRODUCED:

230 ILCS 10/7	from Ch. 120, par. 2407
230 ILCS 10/7.6
230 ILCS 10/11.2

Provides that, if and only if Senate Bill 744 of the 97th General Assembly becomes law, then the Illinois Gambling Act is amended (1) to require the Illinois Gaming Board to award owners licenses to applicants whose plans (i) generate the highest amount of revenue to the State and (ii) provide for the least amount of cannibalization of existing licensees' revenues generated pursuant to this Act; (2) to condition the approval of relocation to a new home dock location for a licensee that was not conducting riverboat gambling on January 1, 1998 upon the determination that the new home dock provides for the least amount of cannibalization of an existing licensee's revenues; and (3) to provide that to be eligible to conduct electronic gaming, a person, firm, or corporation having operating control of a race track must provide for the least amount of cannibalization of existing licensees' revenues generated pursuant to the Act. Effective upon becoming law or on the date Senate Bill 744 of the 97th General Assembly takes effect, whichever is later.

A BILL FOR

AN ACT concerning gaming.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 10. If and only if Senate Bill 744 of the 97th General Assembly becomes law as amended by House Amendments Nos. 1, 2, 3, 4, 5, 6, and 7, then the Illinois Gambling Act is amended by changing Sections 7, 7.6, and 11.2 as follows:

(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 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. A single person, firm, corporation, or licensed owner shall be permitted to hold at least 5 owners licenses, casino operator licenses, or electronic gaming licenses, or any combination thereof. From the effective date of this amendatory Act of the 95th General Assembly until (i) 3 years after the effective date of this amendatory Act of the 95th General Assembly, (ii) the date any organization licensee begins to operate a slot machine or video game of chance under the Illinois Horse Racing Act of 1975 or this Act, (iii) the date that payments begin under subsection (c-5) of Section 13 of the Act, (iv) the wagering tax imposed under Section 13 of this Act is increased by law to reflect a tax rate that is at least as stringent or more stringent than the tax rate contained in subsection (a-3) of Section 13, or (v) when an owners licensee holding a license issued pursuant to Section 7.1 of this Act begins conducting gaming, whichever occurs first, as a condition of licensure and as an alternative source of payment for those funds payable under subsection (c-5) of Section 13 of this 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 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.

The Board is expressly prohibited from making changes to the requirement that licensees make payment into the Horse Racing Equity Trust Fund without the express authority of the Illinois General Assembly and making any other rule to implement or interpret this amendatory Act of the 95th General Assembly. For the purposes of this paragraph, "rules" is given the meaning given to that term in Section 1-70 of the Illinois Administrative Procedure Act.

(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;

(2) the facilities or proposed facilities for the conduct of gambling;

(3) the highest prospective total revenue to be derived by the State from the conduct of gambling;

(4) the extent to which the ownership of the applicant reflects the diversity of the State by including minority persons, females, and persons with a disability and the good faith affirmative action plan of each applicant to recruit, train and upgrade minority persons, 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 or casino;

(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;

(8) the amount of the applicant's license bid;

(9) the extent to which the applicant or the proposed host municipality plans to enter into revenue sharing agreements with communities other than the host municipality and the terms of those agreements; and

(10) the extent to which the ownership of an applicant includes the most qualified number of minority persons, females, and persons with a disability.

(c) Each owners license shall specify the place where the casino shall operate or the riverboat shall operate and dock.

(d) Each applicant shall submit with his application, on forms provided by the Board, 2 sets of his fingerprints.

(e) In addition to any licenses authorized under subsection (e-5) of this Section, the Board may issue up to 10 licenses authorizing the holders of such licenses to own riverboats. In the application 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 in Tazewell County or, with approval by a municipality in which such riverboat was docked on January 1, 2010 and with Board approval, shall authorize the riverboat to relocate to a new location that is no more than 10 miles away from its original location, in a municipality that (1) borders on the Illinois River or is within 5 miles of the city limits of a municipality that borders on the Illinois River and (2) on January 1, 2010, had a riverboat conducting riverboat gambling operations pursuant to a license issued under this Act. 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.

The Board shall award owners licenses to applicants whose plans (i) generate the highest amount of revenue to the State and (ii) provide for the least amount of cannibalization of existing licensees', including electronic gaming licensees', revenues generated pursuant to this Act. For the purposes of this subsection (e), "cannibalization" means the diversion of revenues generated pursuant to this Act from existing licensees, including electronic gaming licensees, by an owners licensee authorized under this subsection (e). In determining whether cannibalization exists, the Board shall also consider the extent to which the applicant can attract from market areas of neighboring states.

In granting all licenses, the Board may give favorable 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.

(e-5) In addition to licenses authorized under subsection (e) of this Section, the Board may issue the following licenses:

(1) One owners license authorizing the conduct of casino gambling in the City of Chicago.

(2) One owners license authorizing the conduct of riverboat gambling in the City of Danville.

(3) One owners license authorizing the conduct of riverboat or casino gambling located in the City of Park City.

(4) One owners license authorizing the conduct of riverboat gambling in the City of Rockford.

(5) One owners license authorizing the conduct of riverboat gambling in a municipality that is located in one of the following townships of Cook County: Bloom, Bremen, Calumet, Rich, Thornton, or Worth Township.

(e-6) The Board shall consider issuing a license pursuant to subsection (e-5) only after the corporate authority of the municipality in which the casino or riverboat shall be located has certified to the Board the following:

(1) that the applicant has negotiated with the corporate authority in good faith;

(2) that the applicant and the corporate authority have mutually agreed on the permanent location of the casino or riverboat;

(3) that the applicant and the corporate authority have mutually agreed on the temporary location of the casino or riverboat;

(4) that the applicant and the corporate authority have mutually agreed on the percentage of revenues that will be shared with the municipality, if any; and

(5) that the applicant and the corporate authority have mutually agreed on any zoning, licensing, public health, or other issues that are within the jurisdiction of the municipality.

At least 7 days before the corporate authority of a municipality submits a certification to the Board concerning items (1) through (6) of this subsection, it shall hold a public hearing to discuss items (1) through (6), as well as any other details concerning the proposed riverboat or casino in the municipality. The corporate authority must subsequently memorialize the details concerning the proposed riverboat or casino in a resolution that must be adopted by a majority of the corporate authority before any certification is sent to the Board. The Board shall not alter, amend, change, or otherwise interfere with any agreement between the applicant and the corporate authority of the municipality regarding the location of any temporary or permanent facility.

(e-10) The licenses authorized under subsection (e-5) of this Section shall be issued within 12 months after the effective date of this amendatory Act of the 97th General Assembly. The fee for the issuance or renewal of a license issued pursuant to this subsection (e-10) shall be $100,000. Additionally, a licensee located outside of Cook County shall pay an initial fee of $12,500 per gaming position, and a licensee located in Cook County shall pay $25,000 per gaming position. The initial fees payable under this subsection (e-10) shall be deposited into the Gaming Facilities Fee Revenue Fund.

(e-15) Each licensee of a license authorized under subsection (e-5) of this Section shall make a reconciliation payment 4 years after the date the licensee begins operating in an amount equal to 75% of the adjusted gross receipts for the most lucrative 12-month period of operations, minus an amount equal to the initial $12,500 or $25,000 initial payment per gaming position, whichever was the initial amount paid by the specific licensee. If this calculation results in a negative amount, then the licensee is not entitled to any reimbursement of fees previously paid. This reconciliation payment may be made in installments over a period of no more than 5 years, subject to Board approval. Any installment payments shall include an annual market interest rate as determined by the Board. All payments by licensees under this subsection (e-15) shall be deposited into the Gaming Facilities Fee Revenue Fund.

(e-20) 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.

(e-25) The provisions of this subsection (e-25) apply only to an owners licensee of a license issued or re-issued pursuant to Section 7.1 of this Act and if the owners licensee was found preliminarily suitable or suitable by the Board prior to the effective date of this amendatory Act of the 97th General Assembly. The owners licensee shall pay (i) a $100,000 fee for the issuance or renewal of its license and (ii) an initial fee of $25,000 per gaming position in place of, and not in addition to, the initial fee required under subsection (h) of this Section. Additionally, the owners licensee shall make a reconciliation payment on July 1, 2016 in an amount equal to 75% of the average annual adjusted gross receipts, minus an amount equal to the $25,000 initial payment per gaming position. If this calculation results in a negative amount, then the owners licensee is not entitled to any reimbursement of fees previously paid. This reconciliation payment may be made in installments over a period of no more than 5 years, subject to Board approval. Any installment payments shall include an annual market interest rate as determined by the Board. All payments by licensees under this subsection (e-25) shall be deposited into the Gaming Facilities Fee Revenue Fund. For any payments required under this Section 7, the owners licensee shall receive (i) a credit for any amounts that the owners licensee has paid to the State or the Board or their agents prior to November 1, 2010 for consultants, licensing fees, up-front fees, or other items and (ii) a credit for the payments that the unit of local government has pledged to remit to the State, which shall be equal to the present value of such payments as determined by the Board in its decision dated January 14, 2009. An owners licensee subject to this subsection (e-25) shall only pay the initial fees required pursuant to this subsection and shall not have to pay any initial fees or payments that were ordered by the Board prior to November 1, 2010. However, any payments that have been made by an owners licensee subject to this subsection (e-25) to the State or to the Board or their agents shall remain with the State and the owners licensee shall receive a credit as specified in this subsection (e-25).

In the event the owners licensee has made payments on or after November 1, 2010 but prior to the effective date of this amendatory Act of the 97th General Assembly to the State or the Board or their agents towards the amount it bid during the selection process to receive its owners license, then such payments shall be refunded to the owners licensee. The refund shall be in the form of a credit, which shall offset taxes due under Section 12 and Section 13 in the amount of such prior payments to the State or the Board or their agents as such taxes under Section 12 and Section 13 become due, and which credit shall be in addition to any other credit granted in this subsection (e-25) and elsewhere in the Illinois Gambling Act. If any credit granted in this subsection (e-25) is not fully utilized in any given year, then the remainder shall be carried forward to subsequent years until such credit has been fully utilized. Consistent with the provisions contained in this subsection (e-25), the owners licensee shall be treated as having paid the amount of taxes due under Sections 12 and 13 without reduction for the credit granted in this subsection (e-25), and the amount of such credit shall be considered a refund of the owners licensee bid amount as such credit is utilized.

(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 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. Notwithstanding any provision in this subsection (g) to the contrary, any license that is awarded to the Chicago Casino Development Authority shall not expire, but it shall be subject to the provisions of this Act and the rules of the Board.

(h) An owners license, except for an owners license issued under subsection (e-5) of this Section, shall entitle the licensee to own up to 2 riverboats.

An owners licensee of a casino or riverboat that is located in the City of Chicago pursuant to subsection (e-5) of this Section shall limit the number of gaming positions to 4,000 for such owners. All other licensees shall limit the number of gaming positions to 1,600 for any such owners license prior to January 1, 2013 and 2,000 gaming positions on or after January 1, 2013. The initial fee for each gaming position obtained on or after the effective date of this amendatory Act of the 97th General Assembly shall be $12,500 for licensees not located in Cook County and $25,000 for licensees located in Cook County, in addition to the reconciliation payment, as set forth in subsections (e-15), (e-25), or (h-5) of this Section.

A licensee may operate both of its riverboats concurrently, provided that the total number of gaming positions on both riverboats does not exceed 1,600 prior to January 1, 2013 and 2,000 on or after January 1, 2013. 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.

(h-5) An owners licensee who conducted gambling operations prior to January 1, 2011 and purchases positions under subsection (h) of this Section on or after the effective date of this amendatory Act of the 97th General Assembly must pay an initial fee of $12,500 per gaming position if the licensee is located outside Cook County and an initial fee of $25,000 per gaming position if the licensee is located in Cook County, as stated in subsection (h) of this Section. These initial fees shall be deposited into the Gaming Facilities Fee Revenue Fund. Additionally, that owners licensee shall make a reconciliation payment 4 years after any additional gaming positions authorized by subsection (h) begin operating in an amount equal to 75% of the owners licensee's average gross receipts for the most lucrative 12-month period of operations minus an amount equal to $12,500 or $25,000 that the owners licensee paid per additional gaming position. For purposes of this subsection (h-5), "average gross receipts" means (i) the increase in adjusted gross receipts for the most lucrative 12-month period of operations over the adjusted gross receipts for 2011, multiplied by (ii) the percentage derived by dividing the number of additional gaming positions that an owners licensee had purchased pursuant to subsection (h) by the total number of gaming positions operated by the owners licensee. If this calculation results in a negative amount, then the owners licensee is not entitled to any reimbursement of fees previously paid. This reconciliation payment may be made in installments over a period of no more than 5 years, subject to Board approval. Any installment payments shall include an annual market interest rate as determined by the Board. These reconciliation payments shall be deposited into the Gaming Facilities Fee Revenue Fund.

(h-10) Any positions that are not purchased by a licensed owner as of January 1, 2016 shall be forfeited and retained by the Board and shall be offered in equal amounts to licensed owners who have purchased all of the positions that were offered. This process shall continue until all positions have been purchased. All positions obtained pursuant to this process must be in operation within 18 months after they were obtained or the licensed owner forfeits the right to operate all of the positions, but is not entitled to a refund of any fees paid.

The Board may, after holding a public hearing, grant extensions so long as a licensed owner is working in good faith to make the positions operational. The extension may be for a period of 6 months. If, after the period of the extension, a licensed owner has not made the positions operational, then another public hearing must be held by the Board before it may grant another extension.

(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 or a casino, 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 or in the casino.

(j) The Board may issue or re-issue a license authorizing a 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.

(k) An owners licensee may conduct land-based gambling operations upon approval by the Board.

(l) An owners licensee may conduct gaming at a temporary facility pending the construction of a permanent facility or the remodeling or relocation of an existing facility to accommodate gaming participants for up to 24 months after the temporary facility begins to conduct gaming. Upon request by an owners licensee and upon a showing of good cause by the owners licensee, the Board shall extend the period during which the licensee may conduct gaming at a temporary facility by up to 12 months. The Board shall make rules concerning the conduct of gaming from temporary facilities.

(Source: P.A. 95-1008, eff. 12-15-08; 96-1392, eff. 1-1-11; 09700SB0744ham001, ham006, and ham007.)

(230 ILCS 10/7.6)

Sec. 7.6. Electronic gaming.

(a) The General Assembly finds that the horse racing and riverboat gambling industries share many similarities and collectively comprise the bulk of the State's gaming industry. One feature common to both industries is that each is highly regulated by the State of Illinois. The General Assembly further finds, however, that despite their shared features each industry is distinct from the other in that horse racing is and continues to be intimately tied to Illinois' agricultural economy and is, at its core, a spectator sport. This distinction requires the General Assembly to utilize different methods to regulate and promote the horse racing industry throughout the State. The General Assembly finds that in order to promote live horse racing as a spectator sport in Illinois and the agricultural economy of this State, it is necessary to allow electronic gaming at Illinois race tracks as an ancillary use given the success of other states in increasing live racing purse accounts and improving the quality of horses participating in horse race meetings.

(b) The Illinois Gaming Board shall award one electronic gaming license to each person, firm, or corporation having operating control of a race track that applies under Section 56 of the Illinois Horse Racing Act of 1975, subject to the application and eligibility requirements of this Section. Within 60 days after the effective date of this amendatory Act of the 97th General Assembly, a person, firm, or corporation having operating control of a race track may submit an application for an electronic gaming license, except that the Illinois State Fairgrounds Racetrack Authority may submit an application for an electronic gaming license at any time after the effective date of this amendatory Act of the 97th General Assembly. The application shall specify the number of gaming positions the applicant intends to use and the place where the electronic gaming facility will operate.

The Board shall determine within 120 days after receiving an application for an electronic gaming license, whether to grant an electronic gaming license to the applicant. If the Board does not make a determination within that time period, then the Board shall give a written explanation to the applicant as to why it has not reached a determination and when it reasonably expects to make a determination.

The electronic gaming licensee shall purchase up to the amount of electronic gaming positions authorized under this Act within 120 days after receiving its electronic gaming license. If an electronic gaming licensee is prepared to purchase the electronic gaming positions, but is temporarily prohibited from doing so by order of a court of competent jurisdiction or the Board, then the 120-day period is tolled until a resolution is reached.

An electronic gaming license shall authorize its holder to conduct electronic gaming at its race track at the following times:

(1) On days when it conducts live racing at the track where its electronic gaming facility is located, from 8:00 a.m. until 3:00 a.m. on the following day.

(2) On days when it is scheduled to conduct simulcast wagering on races run in the United States, from 8:00 a.m. until 3:00 a.m. on the following day.

Additionally, the Board may extend these days of operation and hours upon request by an organization licensee as the Board sees fit.

A license to conduct electronic gaming and any renewal of an electronic gaming license shall authorize electronic gaming for a period of 4 years. The fee for the issuance or renewal of an electronic gaming license shall be $100,000.

(c) To be eligible to conduct electronic gaming, a person, firm, or corporation having operating control of a race track must (i) obtain an electronic gaming license, (ii) hold an organization license under the Illinois Horse Racing Act of 1975, (iii) hold an inter-track wagering license, (iv) pay an initial fee of $25,000 per gaming position from electronic gaming licensees where electronic gaming is conducted in Cook County and $12,500 for electronic gaming licensees where electronic gaming is located outside of Cook County before beginning to conduct electronic gaming plus make the reconciliation payment required under subsection (i), (v) conduct at least 240 live races at each track per year, (vi) meet the requirements of subsection (a) of Section 56 of the Illinois Horse Racing Act of 1975, (vii) for organization licensees conducting standardbred race meetings that had an open backstretch in 2009, keep backstretch barns and dormitories open and operational year-round unless a lesser schedule is mutually agreed to by the organization licensee and the horsemen's association racing at that organization licensee's race meeting, (viii) for organization licensees conducting thoroughbred race meetings, the organization licensee must maintain accident medical expense liability insurance coverage of $1,000,000 for jockeys, and (ix) meet all other requirements of this Act that apply to owners licensees, and (x) provide for the least amount of cannibalization of existing licensees', including owners licensees', revenues generated pursuant to this Act. For the purposes of this subsection (c), "cannibalization" means the diversion of revenues generated pursuant to this Act from existing licensees, including owners licensees, by an owners licensee authorized under this Act. In determining whether cannibalization exists, the Board shall also consider the extent to which the applicant can attract from market areas of neighboring states. Only those persons, firms, or corporations (or its successors or assigns) that had operating control of a race track and held an inter-track wagering license authorized by the Illinois Racing Board in 2009 are eligible, except that this provision shall not apply to the Illinois State Fairgrounds Racetrack Authority.

An electronic gaming license may enter into a joint venture with a licensed owner to own, manage, conduct, or otherwise operate the electronic gaming licensee's electronic gaming facilities, unless the electronic gaming licensee has a parent company or other affiliated company that is, directly or indirectly, wholly owned by a parent company that is also licensed to conduct electronic gaming, casino gaming, or their equivalent in another state.

All payments by licensees under this subsection (c) shall be deposited into the Gaming Facilities Fee Revenue Fund.

(d) The Board may approve electronic gaming positions statewide as provided in this Section. The authority to operate electronic gaming positions under this Section shall be allocated as follows: up to 1,200 gaming positions for any electronic gaming licensee in Cook County and up to 900 gaming positions for any electronic gaming licensee outside of Cook County.

(e) Any positions that are not obtained by an organization licensee, other than the Illinois State Fairgrounds Racetrack Authority, shall be retained by the Gaming Board and shall be offered in equal amounts to organization licensees who have purchased all of the positions that were offered. This process shall continue until all positions have been purchased. All positions obtained pursuant to this process must be in operation within 18 months after they were obtained or the organization licensee forfeits the right to operate all of the positions, but is not entitled to a refund of any fees paid. The Board may, after holding a public hearing, grant extensions so long as an organization licensee is working in good faith to begin conducting electronic gaming. The extension may be for a period of 6 months. If, after the period of the extension, a licensee has not begun to conduct electronic gaming, another public hearing must be held by the Board before it may grant another extension.

(f) Subject to the approval of the Illinois Gaming Board, an electronic gaming licensee may make modification or additions to any existing buildings and structures to comply with the requirements of this Act. The Illinois Gaming Board shall make its decision after consulting with the Illinois Racing Board. In no case, however, shall the Illinois Gaming Board approve any modification or addition that alters the grounds of the organizational licensee such that the act of live racing is an ancillary activity to electronic gaming. Electronic gaming may take place in existing structures where inter-track wagering is conducted at the race track or a facility within 300 yards of the race track in accordance with the provisions of this Act and the Illinois Horse Racing Act of 1975.

(g) An electronic gaming licensee may conduct electronic gaming at a temporary facility pending the construction of a permanent facility or the remodeling or relocation of an existing facility to accommodate electronic gaming participants for up to 24 months after the temporary facility begins to conduct electronic gaming. Upon request by an electronic gaming licensee and upon a showing of good cause by the electronic gaming licensee, the Board shall extend the period during which the licensee may conduct electronic gaming at a temporary facility by up to 12 months. The Board shall make rules concerning the conduct of electronic gaming from temporary facilities.

Electronic gaming may take place in existing structures where inter-track wagering is conducted at the race track or a facility within 300 yards of the race track in accordance with the provisions of this Act and the Illinois Horse Racing Act of 1975. Any electronic gaming conducted at a permanent facility within 300 yards of the race track in accordance with this Act and the Illinois Horse Racing Act of 1975 shall have an all-weather egress connecting the electronic gaming facility and the race track facility or, on days and hours of live racing, a complimentary shuttle service between the permanent electronic gaming facility and the race track facility and shall not charge electronic gaming participants an additional admission fee to the race track facility.

(h) The Illinois Gaming Board must adopt emergency rules in accordance with Section 5-45 of the Illinois Administrative Procedure Act as necessary to ensure compliance with the provisions of this amendatory Act of the 97th General Assembly concerning electronic gaming. The adoption of emergency rules authorized by this subsection (h) shall be deemed to be necessary for the public interest, safety, and welfare.

(i) Each electronic gaming licensee who obtains electronic gaming positions must make a reconciliation payment 4 years after the date the electronic gaming licensee begins operating the positions in an amount equal to 75% of the difference between its adjusted gross receipts from electronic gaming and amounts paid to its purse accounts pursuant to item (1) of subsection (b) of Section 56 of the Illinois House Racing Act of 1975 for the 12-month period for which such difference was the largest, minus an amount equal to the initial $25,000 or $12,500 per electronic gaming position initial payment. If this calculation results in a negative amount, then the electronic gaming licensee is not entitled to any reimbursement of fees previously paid. This reconciliation payment may be made in installments over a period of no more than 5 years, subject to Board approval. Any installment payments shall include an annual market interest rate as determined by the Board.

All payments by licensees under this subsection (i) shall be deposited into the Gaming Facilities Fee Revenue Fund.

(j) As soon as practical after a request is made by the Illinois Gaming Board, to minimize duplicate submissions by the applicant, the Illinois Racing Board must provide information on an applicant for an electronic gaming license to the Illinois Gaming Board.

(k) Subject to the approval of the Illinois Gaming Board, an organization licensee that has received an electronic gaming license under this Act and has operating control of a race track facility located in Cook County may relocate its race track facility as follows:

(1) the organization licensee may relocate within a 3-mile radius of its existing race track facility so long as the organization licensee remains in Cook County and submits its plan to construct a new structure to conduct electronic gaming operations; and

(2) the organization licensee may not relocate within a 5-mile radius of a riverboat if the owners license was issued prior to December 31, 2011. The relocation must include the race track facility, including the race track operations used to conduct live racing and the electronic gaming facility in its entirety. For the purposes of this subsection (k), "race track facility" means all operations conducted on the race track property for which it was awarded a license for pari-mutuel wagering and live racing in the year 2010, except for the real estate itself. The Illinois Gaming Board shall make its decision after consulting with the Illinois Racing Board, and any relocation application shall be subject to all of the provisions of this Act and the Illinois Horse Racing Act of 1975.

(Source: 09700SB0744ham001.)

(230 ILCS 10/11.2)

Sec. 11.2. Relocation of riverboat home dock.

(a) A licensee that was not conducting riverboat gambling on January 1, 1998 may apply to the Board for renewal and approval of relocation to a new home dock location authorized under Section 3(c) upon renewal of the license and the Board shall grant the application and approval (i) upon receipt by the licensee of approval from the new municipality or county, as the case may be, in which the licensee wishes to relocate pursuant to Section 7(j) and (ii) upon the determination that the new home dock provides for the least amount of cannibalization, as defined in subsection (e) of Section 7, of an existing licensee's revenues generated pursuant to this Act.

(b) Any licensee that relocates its home dock pursuant to this Section shall attain a level of at least 20% minority person and female ownership, at least 16% and 4% respectively, within a time period prescribed by the Board, but not to exceed 12 months from the date the licensee begins conducting gambling at the new home dock location. The 12-month period shall be extended by the amount of time necessary to conduct a background investigation pursuant to Section 6. For the purposes of this Section, the terms "female" and "minority person" have the meanings provided in Section 2 of the Business Enterprise for Minorities, Females, and Persons with Disabilities Act.

(Source: P.A. 91-40, eff. 6-25-99.)

Section 99. Effective date. This Act takes effect upon becoming law or on the date Senate Bill 744 of the 97th General Assembly takes effect, whichever is later.