The Illinois Gaming Board (IGB) held its monthly meeting on Thursday, June 6, 2024. The meeting was hybrid with in-person accessibility at 160 N. LaSalle St., 5th Floor Auditorium and via livestream. Board members present at this meeting included Chairman Schmadeke, Member Hayden, Member Garcia and Member Kolar.
The meeting began with the approval of the minutes of the regular board meeting from Thursday, April 25, 2024.
Administrator’s Report
The Administrator began his report acknowledging that today is the 80th anniversary of D-Day, which effectively marked the beginning of the end of World War II.
The Administrator then discussed the Video Gaming Central Communication System (CCS) and the state’s procurement process. He stated that the IGB is seeking a vendor for the CCS and that the Request for Proposal (RFP) for a new CCS operator has been published on the state’s RFP site, BidBuy - /view/login/login.xhtml (illinois.gov). He encouraged those interested to apply and stated that the deadline is August 5, 2024. If you are interested in the RFP for CCS, we would love to hear from you as this is a unique opportunity to play a significant role in the video gaming industry.
The Administrator continued his comments by discussing the recent spring legislation session and its implications for the casino, sports wagering and video gaming industries. Changes include 1) a tax rate increase for video gaming and sports wagering revenue, 2) extension of the casino tax credit and 3) prohibiting placing wagers on Illinois collegiate teams and players starting July 1, 2024.
The Administrator continued his comments with the industry revenue numbers. According to the Administrator, there are almost 8,628 live video gaming locations offering approximately 48,199 Video Gaming Terminals (VGT). In April, these VGTs generated a Net Terminal Income (NTI) of over $257 million resulting in $87 million in taxes with the state’s share being approximately $74 million and the location municipalities receiving approximately $12 million. This April, casinos saw more than 1.2 million in admissions and generated an AGR of over $136 million with $23 million in taxes going to the state and $8 million going to host communities. Total Sports Wagering AGR generated a taxable amount of $16 million with $14 million in taxes going to the state and $1.9 million going to Cook County. To date for 2024, the combined industries of Video Gaming, Sports Wagering, and Casino activity has generated over $501 million in taxes with the state’s share being roughly $415 million and the local municipalities sharing $86 million.
The Administrator next reminded the industry of the prohibited conduct portal (Illinois Gaming Board - Contact Us) and the IGB hotline available to report misconduct by licensees. Relatedly, he reminded patrons to use only licensed providers and to visit the IGB’s website if there is a question as to the validity of a provider.
Public Commentary
Two individuals addressed the board during the public commentary segment. Tim Jones of Midwest Electronics Gaming voiced frustration with his experience communicating with the staff of the Illinois Gaming Board. Laurie Taylor had technical difficulties so it was difficult to hear her, however she seemed to be requesting that the board tighten rules and regulations for licensed video gaming establishments, specifically related to distance from residences. After her comments, the Administrator thanked her for her comments and encouraged her to address her local municipalities.
Administrative Matters
The meeting continued with the Administrator providing a brief overview of three new proposed rules. The IGB approved submitting these proposals to the Index Department of the Secretary of State and they will go through the standard rulemaking procedure, including First Notice (public comment) and then Second Notice with the Joint Committee of Administrative Rules’ (JCAR) review and consideration of the rules. As you know, there are multiple opportunities for submission of public comments and we encourage your input and participation, specifically as it relates to the “No Action” Letters.
Regarding the “No Action” Letters, the Administrator provided a detailed outline of proposed rules in which the Administrator could issue “No Action” Letters to licensees. This concept of an “advisory” opinion could help avoid disciplinary actions. We encourage you to listen to today’s meeting to hear all of the specific details. The proposed change would affect Rule 3000.156 (Casino), Rule 1800.156 (Video Gaming), and Rule 1900.156 (Sports Wagering). These changes would result in transparency (as requests and letters would be available to the public), consistency and clarity across the industries, provide a focused approach to certain industry concerns, and increase efficiency. Licensees would be able to request one letter per 12 months and would not be able to request letters pertaining to pending matters. The information contained in the request and the response would not be confidential. Additionally, each request would need to provide a number of details including a concise statement of relevant information, why the letter is needed, identification of any relevant authorities and any adverse authorities.
The Administrator then proposed changes to Video Gaming Rule 110 which would revise the definition of VGT to match the definition in the Video Gaming Act (Act). Currently Rule 110 defines a VGT as “any electronic video game machine that, upon insertion of cash…” while the Act defines a VGT as “any electronic video game machine that, upon insertion of cash, electronic cards or vouchers, or any combination thereof.” This slight change could significantly impact the technological enhancements of current VGTs and provide the path to TITO.
The final proposed rule change was to allow variances to casino chip specifications as outlined in Rule 3000.625. The proposal would amend the current rule to allow different denominations of chips, such as a $20,000 chip.
Casino
The casino portion of this meeting began with the board approving the following Key Person and Level 1 Licensees:
- William Vandersand for his role as Secretary and General Counsel for Casino Queen, Inc. d/b/a DraftKings at Casino Queen
- Joseph Primasing for his role as Technology Director for Walker’s Bluff Casino Resort, LLC
- Thomas Griffith for his role as General Manager for Walker’s Bluff Casino Resort, LLC
- Elisha Joel Miller for his role as IT Director for 815 Entertainment, LLC d/b/a Hard Rock Casino Rockford
- Steven Eric Hill for his role as Director of Surveillance for 815 Entertainment, LLC d/b/a Hard Rock Casino Rockford.
Additionally, the board approved 100 Level 2 and 136 Level 3 occupational licenses and issued nine notices of denial.
The Administrator then issued renewals to all occupational licensees that were up for renewal and had provided updated information, timely paid their renewal fees and complied with all other requirements.
Sports Wagering
During the Sports Wagering section, the Administrator renewed the Master Sports Wagering Licenses of the following entities:
- Alton Casino, LLC d/b/a Argosy Casino Alton
- Casino Queen, Inc. d/b/a DraftKings at Casino Queen
- Elgin Riverboat Resort d/b/a Grand Victoria Casino
- HC Aurora, LLC d/b/a Hollywood Casino Aurora
- HC Joliet, LLC d/b/a Hollywood Casino Joliet
- Midwest Gaming & Entertainment, LLC d/b/a Rivers Casino-Des Plaines
- Par-A-Dice Gaming Corporation d/b/a Par-A-Dice Hotel Casino.
The board then issued 105 Level 2 and one Level 3 occupational licenses and issued notices of denials to three individuals. Next, the Administrator granted renewals to the Level 1, 2 and 3 licensees that were up for renewal, provided updated information to the IGB, timely paid their renewal fees and complied with all other requirements.
Video Gaming
The Video Gaming meeting began with the board granting an initial terminal operator license to Lakeshore Gaming LLC for a period of four years.
The board also granted 27 terminal handler licenses and the Administrator renewed the terminal handler, technician and location licensees that were up for renewal and had provided updated information to the IGB, timely paid their renewal fees and complied with all other requirements.
The meeting continued with the IGB approving 82 location applicants for licensure and issued four denials to the following establishments, including one for statutory ineligibility:
- CTAM Inc. d/b/a Mo’s Coffee & Cafe
- Red Top Barbecue and Chili, LLC d/b/a Red Top Barbecue & Chili
- Ruckers Sports Lounge LLC d/b/a Ruckers Sports Lounge
- Dream Event Space Banquet Hall LLC d/b/a Dream Event Space Banquet Hall LLC.
The board also rescinded previously issued denials to the following two locations subsequently granting them licenses.
- YMPV, Inc. d/b/a Crave Bar & Food Joynt
- Fairview BP Inc. d/b/a Sav-On Liquor & Wine #9.
To close out the meeting, Midwest Electronics was issued a notice of Economic Disassociation pertaining to Arthur Hutchcraft and the board issued two final board orders for Rule 320 Petitions 19-UP-006 and 19-UP-019, both which involved Accel Entertainment Gaming, LLC (petitioner) and Midwest Electronics Gaming, LLC d/b/a ME Gaming (respondent). The final orders are available on the IGB’s website Illinois Gaming Board - Video Rule 320 Petitions.
That concludes the summary of this month’s meeting. The next meeting will be held on Thursday, July 25, 2024.
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