Every month, the Illinois Gaming Board (“IGB”) meets to discuss any changes in the Illinois gaming market and issue licensing and disciplinary decisions. What follows is a repost of the notes by our friends at Fox Rothschild in their “At Stake” Newsletter. You can also find official IGB meeting minutes on the IGB website. The minutes of each IGB meeting are typically posted following the next scheduled meeting of the Board.
Happy holidays to you and your friends and families!
On Oct. 14, 2022, Gov. Pritzker issued a statewide disaster proclamation in response to COVID-19. In response, the Illinois Gaming Board determined it is not practical or prudent, nor is it feasible, to hold an exclusively in person meeting.
As such, the IGB’s monthly meeting on Thursday, Dec.8, 2022 was hybrid with in-person accessibility at 555 W. Monroe Street, First Floor Conference Room and via livestream. It is unclear what 2023 will have in store for these meetings, but we will keep you posted if we hear of changing to the hybrid model.
Speaking of 2023, the IGB previously posted their 2023 meeting dates on the IGB’s website. For your convenience, we have included the dates here:
Board members present at the December meeting included Chairman Schmadeke, Member Hayden and Member Garcia.
The meeting began with the approval of the Regular Board Meeting Minutes from October 27, 2022 and continued with the Administrator’s comments as there were no comments from Board Members.
Administrator Comments
During his comments, the Administrator stated that he would keep his comments brief because there was a full agenda. In doing so, he reiterated the 2023 meeting schedule (as listed above) and provided a recap of the Online Master Sports Wagering supplemental license application period as discussed at the last meeting.
Next, the Administrator provided his revenue report. He stated that currently, there are 44,955 live VGTs in 8,225 licensed locations across the state. According to the Administrator’s report, the November NTI for video gaming locations was approximately $224 million which generated $65 million in tax revenue for the state and $11 million for the local municipalities.
The Administrator also provided a summary of revenue generated by the entire gaming industry, January through October (with the exception of the unavailable October Sports Wagering amounts). In total, gaming activities have generated approximately $900 million in tax revenue for the state and $181 million in taxes for local host communities since January for a total of over $1.13 billion in taxable revenue with over $950 million going to the state.
Public Commentary
While John Gnutek was listed on the agenda to address the Board during the Public Commentary section, he was not present at the meeting, nor was he available virtually.
Administrative Matters
During his comments regarding administrative matters, Mr. Fruchter covered a number of topics. It should be noted that while Closed Session Minutes Review for Confidentiality or Dissemination was listed on the agenda, it was not discussed and no action was taken.
In his comments, the Administrator stated that the rules and regulations for the casino and video gaming industries have not kept pace with available technology or modernization. As such, the Administrator and staff have begun a comprehensive review of rules and regulations in an effort to advance the Illinois market. This matter was initially introduced over the summer, and these are not the first, nor the last amendments/new rules we are expecting.
We would like to preface the summary below by stating that the IGB approved all of these being submitted to the Index Department of the Secretary of State. However, these are proposed changes and will go through the standard rule making 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.
It should also be noted that these items were discussed briefly at the meeting and the following is based off our notes of the Administrator’s comments. That said, we want to be careful to confirm all these details and will request drafts of the rules for further analysis.
The Administrator stated that there will be a grace period to allow individuals to comply. Those of you who have been in the industry for many years may remember that previous administrations introduced similar sounding rules that were not approved by JCAR. We, like you, are very interested in how these proposals will progress through the rule making procedures. Please reach out to us with your questions, comments and concerns. As soon as we get the actual draft rules we will forward.
Casino
The Casino portion of the meeting began with the Board’s approval of the final consideration of the ownership license renewal of HC Aurora, LLC d/b/a Hollywood Casino Aurora.
The meeting continued with the Administrator issuing a Casino Supplier license renewal to Incredible Technologies, Inc.
The meeting continued with the Board approving 68 Level 2 occupational licenses, and 91 Level 3 occupational licenses.
Next, the Administrator issued renewals to the occupational licensees that were up for renewal and had provided updated information, timely paid their renewal fees, and complied with all other requirements.
Sports Wagering
The Sports Wagering section of the meeting began with the Board approving the occupational applications of 140 Level 2 applicants and one Level 3 applicant. The Administrator then granted renewals to the Level 1, 2 and 3 licensees that were up for renewal, had provided updated information to the IGB, timely paid their renewal fees, and complied with all other requirements.
Video Gaming
The Administrator began the Video Gaming session, as he has the past meetings, by reiterating that the licenses for establishments, handlers and technicians now have a term of two (2) years, while suppliers, distributors, manufacturers and terminal operator licenses now have a term of four (4) years and that though new license terms would begin today, annual fees are still due. He also reminded licensees that, due to technical difficulties including auto-generated notices and programming and system enhancements, licensees may receive letters or notices with one-year expiration dates, adding that IGB will be providing updates on the Sci Games portal and to please make notes of any discrepancies.
The Administrator then granted manufacturer, supplier and distributor licenses to Everi Games, Inc. and supplier and distributor licenses to Everi Payments Inc. While these companies are new to video gaming, these entities hold casino-related licenses. Therefore, the video gaming license applications fall under the authority delegated to the Administrator.
Following this, the Administrator renewed the license of the following supplier and terminal operators for a period of four (4) years:
Next, the Administrator renewed the terminal handler, technician and location licensees which were up for renewal and had provided updated information to the IGB, timely paid their renewal fees, and complied with all other requirements. He also issued a notice of nonrenewal to Sunrise Motel Enterprises, Inc. d/b/a Manny’s after the location allegedly failed to pay a $5,000 fine associated with a previous disciplinary complaint.
The meeting continued with initial licenses being issued to two terminal technicians, 44 terminal handlers and 82 video gaming locations.
The Board then denied the applications of two locations, Cajun Blue, LLC d/b/a Bluefish Café andGloria’s Family Affairs LLC d/b/a The Duo Like Mother Like Daughter.
The Administrator then discussed a new category as listed on the agenda, Video Gaming Rescission Items. These are applicants that previously were denied initial licenses or renewals but have since gone through the administrative process and entered into settlement agreements with the Administrator (as allowed by the authority delegated to him). The granting of licenses, however, still requires Board action. As such, the following entities were previously denied licenses but have since entered into settlement agreements and the Board granted initial licenses:
The last matter of the day pertained to In re: the Denial of 170501204 O & S Alkabsh Enterprises, Inc. d/b/a Krispy Krunchy Chicken (O&S). According to the Administrator, O&S allegedly abandoned prosecution of its case and the Administrative Law Judge (ALJ) ordered a default judgement in favor of the IGB. The Board then voted to adopt the ALJ decision as final board order.
The meeting was then concluded with a final note that the next meeting is Feb. 9, 2023 and a wish of Happy Holidays and a Happy New Year from the Administrator and Chairman.