IGB Meeting Update: June 2023

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.

On October 14, 2022, Governor Pritzker issued a statewide disaster proclamation in response to COVID-19. In response, the Illinois Gaming Board determined it was not practical, prudent nor feasible to hold exclusively in person meetings.

As such, the IGB’s monthly meeting on Thursday, June 15, 2023, was hybrid with in-person accessibility at 160 N. LaSalle St., Fifth 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 from the regular Board Meeting on Thursday, April 27, 2023, amendments to the open session minutes of the November 2017 and January 2018 meetings, and the dissemination of the closed session minutes from 2022.

The meeting continued with the Administrator’s comments as there were no comments from Board Members.

Administrator Comments

Administrator Fruchter began his comments by explaining that May was a very productive month, as evident by the matters listed on the agenda.

The Administrator continued his comments with a brief summary of the history of the Danville casino as it has officially started its operation as of May 26, 2023, as the 13^th casino in Illinois. He thanked the involved parties and congratulated those who have worked diligently on the project.

Next, the Administrator discussed the “modernization” of casino rules and stated that the Joint Committee on Administrative Rules (JCAR) approved the proposed rule amendments. New Rule 3000.560 became effective on May 31, 2023. The rules have not yet been posted in the Illinois Register (as published by the Secretary of State), but they are available on the IGB’s website and include details related to 1) the installation of magnetometers for weapon detection, 2) calculating the number of gaming stations and positions, and 3) updates to surveillance technology.

The Administrator continued with sharing the revenue share numbers for all gaming sectors. He stated that there are currently 13 operating casinos, 10 sportsbooks and 8,326 licensed video gaming establishments operating 45,928 video gaming terminals (VGTs). Below is a breakdown of the (approximate) total taxable revenues for each industry:

Video Gaming (May)

• Total Revenue: NTI - $222 million
• State Tax Share: $70 million
• Local Tax Share: $12 million

Casino (May)

• Total Revenue: AGR - $122 million
• State Tax Share: $23 million
• Local Tax Share: $6 million

Sports Wagering (April)

• Total Revenue: Handle - $898 million
• State Tax Share: $13 million
• Local Tax Share: $1 million

All Industries(Jan-April/May)

• Tax Total: $601 million
• State Tax Share: $501 million
• Local Tax Share: $99 million

Public Commentary

The abundant public commentary section of the meeting had seven speakers.

• Kevin McGourty briefly addressed the Board to file complaints regarding previous reports he has made about alleged money laundering at a video gaming location. He also voice complaints regarding the continued operation of a licensed terminal operator (TO) despite the TO having two pending disciplinary complaints (seeking license revocation) filed against it.

• Jeff Heimerdinger, President, Lucky Lincoln, LLC (LL), addressed the Board to request that the IGB issue a document or statement indicating that Lucky Lincoln still has a valid terminal operator license and also inform the public of a recent decision by a Circuit Court Judge lifting the previously issued limited summary suspension. Mr. Heimerdinger stated that LL’s business has suffered irreparable harm resulting from its competitors sending the recently issued disciplinary complaint to LL customers.

• John Bosca, President of Neighbors of River West, spoke to voice his group’s support of Bally’s Chicago Operating Company, LLC’s permanent placement and its conduct thus far. He also stated his group is hopeful for the success of the Chicago casino.

• Kevin Olson, representative of Lucky Dog Gaming LLC locations, requested that the IGB amend its policies to facilitate a quicker approval process in situations where an already approved establishment moves to a new location. Currently the policy is that an establishment’s new location is considered a new application. The establishment has to begin the entire application process again which, as most know, takes months.

• Southland Black Chambers of Commerce, with comments from the following three people, addressed the Board to voice frustrations with certain casinos (Hollywood, Elgin) that, in their opinions, have been disrespectful and uncooperative in regard to  building relationships and contracts with Black businesses.
• Dr. Cornel Darden Jr., Chairman*
• Sonya Williams*
• Charde Cornelia*

*Please note that the following individuals were not listed on the IGB agenda therefore the names may have spelling errors.

Casino

The casino portion of this meeting was quite lengthy and included presentations from four casinos: 1) FHR-Illinois LLC d/b/a American Place (Waukegan casino); 2) 815 Entertainment, LLC d/b/a Hard Rock Casino Rockford (Rockford casino); 3) The Rock Island Boatworks, LLC d/b/a Bally’s Quad Cities Casino & Hotel (Rock Island); and 4) Bally’s Chicago Operating Company, LLC (Chicago casino). We have highlighted key portions of the presentations below as well as the Board’s actions related to the presentations. If you would like to view the entire presentations, you watching a video recording of the meeting on the IGB’s website (once it has been posted).

The Casino portion of the meeting began with a presentation from FHR-Illinois LLC d/b/a American Place for 1) its request for final consideration of an owner’s license and 2) its request to extend operations at its temporary casino facility for another three years, expiring in 2026. The Board approved both motions.

Next, 815Entertainment, LLC d/b/a Hard Rock Casino Rockford made a presentation for consideration to request an extension of its temporary casino facility for another three years. This motion was also granted by the Board.

The Rock Island Boatworks, LLC d/b/a Bally’s Quad Cities Casino & Hotel (Rock Island) made the next presentation. The Board granted the request for final consideration of an owner’s license renewal of Rock Island.

The final casino presentation, and likely the reason for the seemingly increase in media attendance, was from Bally’s Chicago Operating Company, LLC (Bally’s). The Board granted the preliminary suitability of Bally’s and found all related parties suitable.

Next, the Board approved the following Key Person and Level 1 Occupational licensee applicants:

• John Nicholas Ferrucci, as a Key Person through his role as Sr. Vice President & Chief Operating Officer for FHR-Illinois LLC d/b/a American Place;
• Maria Elena Jonas as a Key Person for FHR-Illinois LLC d/b/a American Place;
• Dora Maya as a Key Person for FHR-Illinois LLC d/b/a American Place;
• Maria Carmen Patlan as a Key Person for FHR-Illinois LLC d/b/a American Place;
• Ajoyi Stackhouse as a Key Person for FHR-Illinois LLC d/b/a American Place;
• George Papanier as a Key Person through his role as Chief Executive Officer for The Rock Island Boatworks, LLC d/b/a Bally’s Quad Cities Casino & Hotel;
• Robin Corbeil for their role as Controller for Casino Queen, Inc. d/b/a Draftkings at Casino Queen;
• Albert Crimm for his role as Director of Support Operations for FHR-Illinois LLC d/b/a American Place;
• Nathan Matthew Kirby for his role as Director of IT for FHR-Illinois LLC d/b/a American Place;
• Michael Hastey for his role as Sportsbook Supervisor for Casino Queen, Inc. d/b/a Draftkings at Casino Queen;
• William Vermeulen II for his role as Director of Slot Operations for FHR-Illinois LLC d/b/a American Place;
• Jesse Daniel Wright for his role as Director of Surveillance for FHR-Illinois LLC d/b/a American Place; and
• Derek Zelazny for his role as Information Technology Director for The Rock Island Boatworks, LLC d/b/a Bally’s Quad Cities Casino & Hotel.

The meeting continued with the approval of the renewal of the Supplier’s licenses for International Hole-In-One Association d/b/a Odds on Promotions and RNT Technology Corporation. The Video Gaming Supplier license of RNT Technology Corporation was also renewed at this time since the IGB began syncing the licensure periods of licensees that hold various licenses.

Next, the Board approved Level 2 and Level 3 occupational licenses and denied four occupational applicants.

The Administrator then 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. Lastly, one individual was denied an occupational license for statutory eligibility.

Next, there was a brief intermission before continuing with the Sports Wagering and Video Gaming sections. 

Sports Wagering

The Sports Wagering section of the meeting began with the Board granting the Initial Master Sports Wagering License of FHR-Illinois LLC d/b/a American Place and continued with finding the five related parties of Circa Sports Illinois LLC suitable.

Sports Wagering continued with the Board approving the occupational applications and granting licenses to 66 Level 2 and issuing notices of denial to two individuals. 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 Video Gaming meeting began with granting an initial terminal operators license to King Entertainment LLC.

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.

The meeting continued with initial licenses being issued to 40 terminal handlers, one terminal technician, and ninety-five 95 video gaming locations. Additionally, the Administrator rescinded the notice of nonrenewal issued to 1234 Food Mart Inc. as well as the denial of Countyline 2913 Inc. d/b/a Countyline Gaming. Both locations now have valid establishment licenses.

The Board then denied the applications of two terminal handlers/technicians and the following five locations, including one found allegedly statutorily ineligible:

• Casa Raya LLC d/b/a Casa Raya;
• Oak Lane of Oregon, LLC d/b/a Oak Lane of Oregon;
• Sams Ristorante & Pizzeria LLC d/b/a Sam’s Ristorante & Pizzeria;
• Season Pass Bar and Grill LLC d/b/a Season Pass Bar and Grill LLC; and
• Smoking Grill & Pizzeria LLC d/b/a Smoking Grill and Pizzeria.