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Illinois Gaming Market

IGB Meeting Update: December 2021

December 22, 2021

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! As a quick reminder, if you haven’t done so, you should file your Department of Justice registrations and make sure all your locations have filed as well. They are currently being accepted and need to be completed before January 1, 2022.

The IGB held its monthly meeting on December 8, 2021. Board members present included Chairman Schmadeke, Member Hayden, Member Garcia and Member Bell.

The meeting began with the approval of the Special Board Meeting Minutes from November 18, 2021. There were no Board Member comments and no public comments.

The Administrator began his report by providing brief information regarding the online-only sports wagering licenses. The licenses will be capped at three (3) and each license will cost $20 million. The application deadline was December 3, 2021. Three applications were timely filed and their identities are being kept confidential until the IGB determines the applicants are qualified under the Act.

The Administrator also provided his revenue report. He stated there are currently 42,047 live video gaming terminals (VGTs) in 7,898 licensed locations across the State. In October, these VGTs generated approximately $211.3 million in Net Terminal Income, with total tax revenue of approximately $73 million. The State received approximately $63 million in taxes with local municipalities receiving approximately $10 million.

In summary, the Administrator said that the combined (video gaming, sports wagering and casino) gaming industry total tax revenue for January 1 through October 31, 2021 is approximately $848 million to the State and approximately $160 million in tax revenue to localities for a grand total of approximately $1 billion.

Lastly, the Administrator stated that they are welcoming public comments regarding the central communication system RFP. The comment period is open until January 14, 2022 and all comments should be sent to igb.directorofpolicy@illinois.gov.

The next meeting is scheduled for January 27, 2022. As we mentioned in last month’s newsletter, the complete 2022 schedule is now available on the IGB’s website: Illinois Gaming Board - Board Meetings And Documents.

Administrative Matters

After the Administrator’s comments, the meeting continued with the presentation of a new Video Gaming Rule, Rule 1800.2070 regarding Progressive Meters. While the Administrator did not read the proposed rule, he provided a brief synopsis. The proposed amendment to the Video Gaming Act allows for progressive jackpots. While subpart T governs how to pay out jackpots, there is still a need to standardize function. The Administrator said he is looking forward to industry comments on this progressive jackpot proposed amendment.

The Board approved the submission of this new rule to the Secretary of State Index Department. You can view emergency or adopted rules on the IGB’s website: Illinois Gaming Board - Video Gaming Applicable Law & Standards. After proposed rules are published by the Secretary of State Index Department, they too are listed on the IGB’s website at the aforementioned link.

Casino

The Board began the Casino portion of the meeting with the long-awaited selection of the final applicants and determination of preliminary suitability of the winning application bids for the owners’ licenses for the South Suburban and Waukegan casinos, as well as the approval of all key persons (individuals, business entities, and trusts) associated with the final applicants.

Full House Resorts, Inc. was the selected final applicant for the Waukegan location.  Our very own client, Wind Creek IL LLC, with a proposed location in Homewood/East Hazel Crest, was found preliminarily suitable to receive the South Suburban casino license. Woo Hoo!!

Next, the Board approved the Supplier License Renewals of Ainsworth Game Technology, Inc. and Everi Games, Inc. The Administrator then approved the Level 1, Level 2, and Level 3 licensees that were up for renewal and provided updated information to the IGB, timely paid their renewal fees and complied with all other requirements were renewed.

Sports Wagering

The Sports Wagering section of the meeting was quick with the Administrator approving 23 Level 2 occupational licensees as well as granting renewals to the Level 1, Level 2, and Level 3 licensees that were up for renewal and provided updated information to the IGB, timely paid their renewal fees and complied with all other requirements.

Video Gaming

The Video Gaming session began with the Administrator renewing the respective manufacturer, supplier, supplier or terminal operator licenses of the following individuals:

  • IGT
  • Illinois Rewards, Inc. d/b/a Rewards Suites
  • Dearborn Gaming, LLC
  • Elite Gaming, LLC
  • Illinois Gaming Entertainment LLC
  • National Gaming Operators LLC
  • United Gaming Operator LLC
  • 777 Gaming, LLC
  • Sunrise Gaming, LLC d/b/a Better Gaming Group
  • Springfield Gaming, LLC
  • Jackpot Video Gaming Inc.
  • LS Gaming LLC

Next, the terminal handler, technician and location licensees that were up for renewal and provided updated information to the IGB, timely paid their renewal fees and complied with all other requirements were renewed. The following two (2) locations were issued a notice of nonrenewal:

  • Sanfilippo, LLC d/b/a Penny Road Pub
  • Sammy Jo, Inc. d/b/a Sammy’s Slots

The meeting continued with initial licenses being issued to two (2) terminal handlers, one (1) terminal technician and 65 video gaming locations. There were also two locations, Proviso Petroleum Co. d/b/a King Gas and Shotgun Eddys inc. d/b/a Shotgun Eddys, Inc., each of which were granted location licenses after the Board voted to rescind previous denials and grant licensure.

The Board denied the one (1) location application. The denied location was GPM Midwest 18, LLC d/b/a Fast Mart #561.

Notably, the remand of 2018 CH 03063 Villa Napoli L.T.D. was on the monthly agenda, however, the matter was not presented to the Board and there was no discussion.

The Illinois Gaming Board’s next regularly scheduled meeting is on January 27, 2022

As always, if you have any questions regarding what happened at this month’s meeting or any pending rules/regulations, please give us a call.

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