IGB Meeting Update: December 2023

The following notes are from the December 7th IGB meeting. Any charges and accusations included in this meeting summary are simply alleged at this point. Any disciplinary complaints herein are not final as individuals/entities have the right to appeal the Board’s decisions; they may be dismissed, settled, or otherwise disposed of in some manner at a future date.

Introductory Comments

The Illinois Gaming Board held its last open meeting of 2023 on Thursday, December 7.  Board members Schmadeke, Hayden and Garcia were physically present, while member Kolar attended via remote access.  Gaming in Illinois continues to grow and certainly took a significant step forward this year with four new casinos and two new sportsbooks opening, not to mention the continued growth within the VGT industry. 

Administrator Fruchter reminded the VGT audience that the industry’s compliance with Rule 350 needs to be a focus.  Administrator Fruchter also mentioned again that the IGB’s financial group is conducting an audit of Rule 350(f) compliance.  This rule requires timely and complete reports to be submitted to the IGB on goods and services provided to Establishments, including cost-sharing arrangements between the parties.  If a licensee is unwilling or unable to comply with this requirement, Administrator Fruchter said it will lead to questions about that licensee’s good standing and participation in the industry.  The IGB intends to strictly enforce Rule 350(f) and discipline will ensue if parties are noncompliant. 

2024 Meeting Dates:  The IGB will meet on the following eight Thursdays in 2024: 

• February 08, 2024
• March 14, 2024
• April 25, 2024
• June 06, 2024
• July 25, 2024
• September 12, 2024
• October 24, 2024
• December 12, 2024

Signage Update: 

Administrator Fruchter indicated this morning that the IGB posted on its website the approved language for responsible gaming signage now required under Rule 1750.  The approved language is:

“If you or someone you know has a gambling problem, crisis counseling and referral services can be accessed by calling 1-800-GAMBLER (1-800-426-2537) or text "GAMB" to 833234.

Individuals can enroll in the IGB Self-Exclusion Program at all of the IGB offices located at all casinos. Additional information can be found at https://www.igb.illinois.gov/selfexclusion”

Vertical Integration: 

Administrator Fruchter also confirmed that the IGB has made its second notice filing related to the vertical integration rule proposals it made much earlier this year.  A summary of the IGB’s proposal will be provided in the near future.    

Revenue Results: 

There are 8,443 Establishments that host an aggregate of 46,899 VGTs.  The vast majority of those VGTs (46,419) are operating with the updated max bet software.  In addition, 5,923 of the Establishments host more than five VGTs on site.  In October, Illinois VGTs generated NTI of $238,632,707, which yielded total tax of $81,130,834.  The State retained $69,202,782, while municipalities and counties received $11,928,051.  In November, Illinois casinos produced AGR of $130,364,756 and total tax of $41,522,094.  The State kept $33,706,244 and host communities collected $7,815,850.  In September, sports wagering AGR was $86,222,260, which produced State tax of $12,933,339.  Cook County also received an additional $925,553.  Year-to-date collections (with varying periods in each segment) show $1,288,794,402 of total tax received.  The State’s share is $1,081,572,356, while locals received $207,222,046.

Proposed Rules: 

The Illinois legislature passed a law recently to remove the automatic licensure disqualification for people with certain felony convictions.  The various rules proposed today are designed to implement this new law. 

Licensing: 

The IGB denied Terminal Operator applicant BG-ILCO, LLC, but issued 2 Technician licenses, 25 Terminal Handler licenses and 96 new Establishment licenses.  The IGB is seeking to deny the application of Mars Supermarket, Inc.   

Further, the IGB rescinded two previous denials and granted licenses to the following Establishments:  Alimi Brothers, LLC, d/b/a Village Inn Pancake House, and RWBC Inc., d/b/a Main Street Pour House. 

The Board considered four Requests for Hearing today but denied all of them.  The Establishment applicants impacted by this are:  Bevda’s Inc.; Alton Market Inc.; Mikey’s Bar and Grill, Ltd., d/b/a The Junkyard Bar and Grill, and Jewelbox Gaming Lounge. 

Rule 320 Petition:

The IGB adopted Administrator Fruchter’s recommended decision to dismiss the petition filed by Eureka Entertainment, LLC, d/b/a Universal Gaming Group, v. Gold Rush Amusements, Inc., involving Ayushi Inc., d/b/a JD Food & Liquor.

Disassociation:

The IGB ordered the disassociation of Matthew Dean Munson from J&J Ventures Gaming, which had previously acquired assets from Munson in a deal approved by the IGB under Rule 340.  Relatedly, the IGB ordered the Golden Nugget (i.e., the Danville casino) to disassociate from Mr. Munson.  The Board also denied the Supplier License application of Vemco, LLC, which is an entity owned by Mr. Munson.      

IGB’s next regularly scheduled meeting is February 8, 2024.