IGB Meeting Update - December 2018

Every month, the Illinois Gaming Board meets to discuss any changes in the Illinois Gaming market and any necessary video gaming disciplinary actions. What follows is a repost of the notes by our friends at Fox Rothschild and their “At Stake” Newsletter! You can also find the official meeting minutes at the IGB website.

Happy Holidays!

The Illinois Gaming Board (IGB) held its December monthly meeting on Wednesday, December 12, 2018 in Chicago. While the later than usual start time of 10 a.m. implied brevity, the meeting was action-packed, particularly in regard – regrettably – to video gaming disciplinary actions.

This December meeting followed the lead of the November meeting, and combined the Riverboat and Video Gaming sessions. All four members were present and below is a brief summary of the meeting. As always, the full audio recording is available on the IGB’s website at https://www.igb.illinois.gov/MeetingsMinutes.aspx. 

The Chairman opened the meeting by explaining that the proposed new inducement rule (proposed Video Gaming Rule 340) listed on the agenda would be tabled because – despite staff’s hard work – it was not quite ready for publication.

There was no Board Member commentary and also no public commentary. The Administrator stated that there are 6,753 licensed locations and 30,384 live video gaming terminals (VGTs). 

The meeting continued with the Board approving the November Riverboat and Video Gaming meeting minutes. The Board also approved tentative 2019 meeting dates. The tentative dates are: January 30; March 1; April 18; June 13, August 1, September 5, October 24, November 21, and December 19. As you know, once the new Governor takes office, we may very well have a new Board and these meeting dates may change.

RIVERBOAT

To start the Riverboat session, the Board moved to table the final consideration of the owner’s license renewal for HC Aurora, LLC d/b/a Hollywood Casino Aurora, and moved for final consideration on the following matters:

• Bruce Caughill was approved as a Key Person for Midwest Gaming & Entertainment, LLC d/b/a River Casino – Des Plains for his role as Internal Audit & Compliance Committee Member for Rush Street Gaming;
• Christopher Justice was approved as a Key Person of Global Payments Gaming Services, Inc. as its President;
• Marc Masi was approved as a Key Person of Data Financial, Inc. as its Substantial Owner, Co-President, and Treasurer;
• Steven Schroeder was approved as a Key Person of Data Financial, Inc. as its Substantial Owner, Co-President, and Secretary; and
• Incredible Technologies, Inc. had its supplier’s license renewed.

The Board issued occupational licenses to 44 Level 2 and 101 Level 3 applicants, issued three notices of denial, and granted one Level 1 license to Joseph Hargis for his position as Director of Security of The Rock Island Boatworks, Inc. d/b/a Jumers Casino & Hotel.

Lastly, the Board issued the following disciplinary complaints:

• Alton Casino LLC d/b/a Argosy Casino Alton. The IGB issued a complaint alleging that, on three separate occasions, previously revoked software was installed onto electronic gaming devices that were available on the casino floor for play by patrons. The staff-proposed fine was between $20,000 and $25,000, and the Board chose $25,000. Staff indicated that the proposed fine was high due to the violation happening on three occasions.
• The Level 1 occupational licenses of certain individuals associated with Hollywood Casino Aurora and Hollywood Casino Joliet. In November, the IGB issued a complaint against Hollywood Casino Aurora, Hollywood Casino Joliet and their parent company Penn National based on allegations on the non-approval of a vendor who supplied temporary (non-gaming) employees to the casinos, purported issues with MBE and WBE contracting, and alleged acceptance of gifts by casino employees from a vendor.  The proposed discipline against the four individual occupational licensees was tabled until the January meeting so the IGB could obtain some additional information.

Thereafter, the IGB issued disciplinary complaints revoking the Level 2 and Level 3 occupational licenses of two individuals following their alleged termination by their respective casinos.

VIDEO GAMING

The Chairman opened the Video Gaming session by again stating that the proposed inducement rule would be tabled.

The meeting continued with initial licenses being issued to the following:

• terminal operator applicant, Sunrise Gaming, LLC d/b/a Better Gaming Group;
• 30 terminal handlers;
• and 81 video gaming locations. 

There were also a number of license renewals granted. The terminal handler, technician and location licensees that were up for renewal this month and who provided updated information to the IGB, timely paid their renewal fees, and complied with all other requirements were renewed.

The IGB also renewed the supplier license of Illinois Rewards, Inc. In addition, the terminal operator licenses of Jackpot Video Gaming Inc. and Springfield Gaming, LLC were also renewed. The supplier’s license renewal of SUZOHAPP Gaming Solutions, LLC was tabled.

The Board denied the applications of eight terminal handlers/technicians and the following eight establishments:

• BNT GROUP LLC d/b/a BP Washington Park
• DB Jackpot, LLC d/b/a DB Jackpot, LLC
• Market Square Hospitality, LLC d/b/a The Inn at Market Square
• Onesti Entertainment Corp d/b/a Arcada Theatre
• Calm & Chaos LLC d/b/a the Irish Legend
• Sunshine USA Enterprises, Inc. d/b/a Morris Citgo
• Rachel’s Café Inc. d/b/a Rachel’s Cafe
• Scorchy Café Italiano, Inc. d/b/a Scorchy Café Italiano

The Board received three Requests for Hearings. The request filed by Matthew Duffy was denied as his Request to Reapply, which was simultaneously filed, was granted; the request of D & M Petroleum, Inc. d/b/a MCCOOK BP was found to have a prima facie case and was granted; and the Board moved to rescind the denial of Rachel’s Place, Inc. d/b/a Rachel’s Place and grant the withdrawal of its application that was previously filed.

The following three requests to reapply were granted:

• JBH Petroleum & Foodmart Inc. d/b/a JBH Knoxville;
• Matthew Duffy as stated above; and
• Luna Properties II, Inc. d/b/a Luna Café, although it was discussed that the reapplication was contingent on the withdrawal of its hearing request currently pending in front of an Administrative Law Judge.

The Board voted to issue a number of disciplinary complaints against Video Gaming licensees.

• The Board is seeking a $30,000 fine from WML Enterprises, LLC d/b/a Jen G’s Pizza & Pub due to allegedly operating VGTs without a valid liquor license (allegedly, the location was sold to a new owner, and that new owner did not timely apply).
• The Board is seeking a $60,000 fine from Tap Room Gaming, LLC for its alleged involvement in or knowledge of the aforementioned allegation against WML Enterprises, LLC terminals.
• The Board is seeking a $1,500 fine from Zannie Spates d/b/a Lotus Flower for allegedly purchasing alcohol from a grocery store and giving it away to patrons for free. Such action, according to the IGB, discredits the gaming industry.
• The Board is seeking a $5,000 fine from Gemtop Inc. for allegedly having a minor (person under 21) monitoring the VGT area.
• The Board is seeking a $3,000 fine from Harsal, Inc. d/b/a Speedymart for allegedly operating VGTs while being involuntarily dissolved by the Illinois Secretary of State.
• The Board is seeking a $1,000 fine from Corey Gillam d/b/a Georgie’s Pub for allegedly not paying its license renewal fee and having poor business practices.
• The Board is seeking to revoke the license of Manny’s Blue Room for allegedly continuing to operate as a bar without a valid liquor license even though the VGTs were not active.
• The Board is seeking to revoke the licenses of Infinity Lounge LTD. d/b/a Infinity Lounge and BC Tapper, Inc. d/b/a It’s About Time for allegedly misleading the IGB, providing false statements, and having an undisclosed Person with Significant Influence and Control (“PSIC”). 
• The Board is seeking a $5,000 fine from Karco, Inc. d/b/a Rollnup #16 Smoke Shop & Liquor for allegedly relocating VGTs without the IGB’s prior approval to an area accessible to underage individuals.
• The Board is seeking a $10,000 fine from Eureka Entertainment, LLC for its alleged involvement in the relocation of Karco, Inc. d/b/a Rollnup #16 Smoke Shop & Liquor’s VGTs as mentioned above.
• The Board is seeking a $5,000 fine from the following 17 locations for allegedly permitting minors access to the VGTs:

1. Jimmy’s Place Enterprises, Inc. d/b/a Jimmy’s Place
2. Poor Boy’s Lounge Inc. d/b/a Poor Boy’s Lounge
3. Advanced Amusement Service, LLC d/b/a Bronze Eagle Pub
4. BNPPC, LLC. d/b/a Riverside Pizza & Pub
5. Saint Charles Sports, LLC Spotted Fox Ale House
6. A. Manson Corporation d/b/a St. Charles Bowl
7. Alley 64, Inc. d/b/a Alley 64
8. Chrissy’s, LLC d/b/a Chrissy’s
9. Cosmos Sports Bar & Entertainment LLC d/b/a Cosmos Sports Bar
10. B & H Krupa, Inc. d/b/a Corner Pantry
11. Graham Enterprise, Inc. d/b/a Wauconda BP
12. Bacchus’ Nibbles, Inc. d/b/a Bacchus Nibbles
13. Slager’s on 47th d/b/a Slager’s on 47^th
14. Joe’s Saloon Inc. d/b/a Joe’s Saloon
15. Burrito-Mex, Inc. d/b/a Burrito Mex
16. Augustino’s Deli, Inc. d/b/a Augustino’s Rock N Roll Deli
17. Dragon2 LLC d/b/a Lucky Bernie’s

• The Board is also seeking a $5,000 fine from Dragon2 d/b/a Lucky Bernie’s (in addition to the location’s fine above) for allegedly offering alcohol to a minor.
• The Board is seeking to revoke the location licenses of AnnaBCicero Inc. d/b/a Big Top and AnnaBCicero2 Inc. d/b/a Big Top 2 for allegedly failing to disclose ownership and alleged involvement with organized crime.
• The Board is seeking to revoke the Handler license of Vincenzo Dublino for allegedly engaging in certain business practices that violate state laws.

The Board issued two disassociation orders. The Board ordered Gold Rush Amusements, Inc. to dissociate from Anna Benedict, Owner/Member of AnnaBCicero Inc. and AnnaBCicero2 Inc., as a result of the allegations brought against Big Top and Big Top 2 in its license revocation noted above. The Board also ordered Accel Entertainment Gaming, LLC to disassociate from Vincenzo Dublino as a result of the allegation resulting from his handler license revocation also noted above.

The Board granted authority to the Administrator and staff to enter into settlements and dismiss the complaints issued to the following: Satellite Tavern LLC d/b/a Satellite Tavern; JD Elliott Inc. d/b/a JD’s Cues and Brews; Jenny’s LLC d/b/a The Wayward Pub; Rick & Anita’s, Inc. d/b/a Rick & Anita’s, and Bears Showtown USA, Inc. d/b/a Bears Showtown USA.

The meeting was then adjourned.

That’s it for 2018!  Happy Holidays.