IGB Meeting Update: February 2024

The following notes are from the February 8th Illinois Gaming Board 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 IGB held its February open meeting this morning.  Chairman Schmadeke and Members Hayden and Kolar were physically present to establish a quorum.  Administrator Marcus Fruchter acknowledged that the Super Bowl is this Sunday, which highlights the need for responsible gaming measures.  He advised people to stay within their limits and only use licensed Illinois operators when making wagers.  He also explained the kinds of prop bets that are legal for Illinois sports wagering operators to offer. 

As of today, Illinois has 15 casinos, 13 sportsbooks, 57 active Terminal Operators, 8,443 licensed Establishments and 47,014 VGTs.  In December, VGTs generated NTI of $250,905,997, which produced State tax of $72,766,024 and local tax of $12,540,893.  Illinois’ casinos had AGR of $141,227,205, which resulted in State tax of $37,810,380 and local tax of $8,491,196.  Sports wagering had AGR of $128,430,319, to produce State tax of $19,264,547 and Cook County tax of $1,252,546.

In 2023, Illinois generated $1,550,367,441 of gaming tax revenue.  The State kept $1,307,113,715, while local communities received $243,253,726. 

The new year started off fairly well.  VGTs had NTI of $221,171,692, which produced $64,142,000 of State tax and $11,056,478 to the locals.  Casinos saw AGR of $118,642,379.  The State received $13,582,335 and host communities kept $7,168,464. 

The Board addressed two administrative matters this morning.  Representatives of Major League Soccer appeared to request that the Board not allow wagers on whether a specific player would receive a yellow or red card, or whether either would appear during a match.  MLS believes these wagers are susceptible to manipulation by a single player, which puts the integrity of the game and wagers made in question.  MLS has made a similar request in 31 other sports wagering jurisdictions.  The Board granted the request and made these wagers impermissible on a permanent basis. 

In addition, the Board voted to extend the delegation of authority previously granted to Administrator Fruchter for an additional year.  That delegation of authority has allowed the IGB to be more efficient in its regulation of Illinois’ various gaming segments. 

The Board also invited representatives from Hawthorne Race Course and Fairmount Park to provide updates on their progress in opening casinos at those properties.  Both indicated that they remain committed to doing so and are making progress in those efforts.  Neither was able to provide an estimated date for when those facilities would open or even when they would submit necessary documentation to the Board in advance of beginning construction projects. 

Licensing:

The IGB issued 72 new Terminal Handler licenses and 1 Technician license today.  It also licensed 143 new Establishments but issued Notices of Denial to the following:  (1) CJ’s Gaming Bar, LLC; (2) El Cactus Mexican Grill Inc.; (3) Jay Maa Mogal LLC, d/b/a On the Rocks; and (4) Uma Bhavani, Inc., d/b/a Heart Spin City.  Further, Administrator Fruchter used the delegation of authority to issue denials to the following applicants for being statutorily ineligible for licensure:  (A) DMD Bacaba 320 Inc., d/b/a Bacaba Liquors; (B) Jai Sriram Inc., d/b/a AM Star; and (C) Quick Hits, LLC.

The Board considered separate Requests for Hearing from Torrence Liquors Corp., d/b/a Bevda’s, and BG-ILCO LLC, but denied each for failing to state a prima facie case. 

Litigation:

The Board delegated authority to Administrator Fruchter to enter into a settlement agreement resolving Lucky Lincoln Gaming’s fee petition in connection with earlier litigation.  That litigation involved a ruling that the IGB violated the Open Meetings Act in 2018, which entitled Lucky Lincoln to attorneys’ fees. 

Separately, the Board voted to reject an Administrative Law Judge’s recommended decision to grant summary judgment to Lucky Lincoln Gaming in connection with a 2023 disciplinary action.  The IGB remanded that case to the ALJ for a hearing. 

The Board also voted to accept another ALJ’s recommended decision in the matter involving Jose T. Camacho, a Terminal Handler applicant, to finalize the denial of the license. 

IGB’s next regularly scheduled meeting is March 14, 2024.