Section 1800.110  Definitions

 

For purposes of this Part the following terms shall have the following meanings:

 

"Act":  The Video Gaming Act [230 ILCS 40].

 

"Adjusted gross receipts":  The gross receipts less winnings paid to wagerers. The value of expired vouchers shall be included in computing adjusted gross receipts.

 

"Administrator": The chief executive officer responsible for day-to-day operations of the Illinois Gaming Board.

 

"Affiliate":  An "affiliate of", or person "affiliated with", a specified person shall mean a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, that person.

 

"Affiliated entity":  An "affiliated entity" of a person is any business entity that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, the person.

 

"Applicant":  A person applying for any license under the Act.

 

"Application":  All material submitted, including the instructions, definitions, forms and other documents issued by the Illinois Gaming Board, comprising the video gaming license application submitted to the Illinois Gaming Board.

 

"Associated video gaming equipment":  Ticket payout systems and validation procedures; wireless, promotional and bonusing systems; kiosks; gaming-related peripherals; hardware, software and systems; and other gaming devices and equipment for compliance with:

 

Illinois laws, regulations and requirements as codified or otherwise set forth; and

 

Board-approved video gaming industry standards.

 

"Attributed interest":  A direct or indirect interest in an enterprise deemed to be held by an individual not through the individual's actual holdings but either through the holdings of the individual's relatives or through a third party or parties on behalf of the individual pursuant to a plan, arrangement, agreement or contract.

 

"Board":  The Illinois Gaming Board.

 

"Business entity" or "Business":  A partnership, incorporated or unincorporated association or group, firm, corporation, limited liability company, partnership for shares, trust, sole proprietorship or other business enterprise.

 

"Chi-square test":  A statistical test used to determine if a relationship between variables exists by comparing expected and observed cell frequencies.  Specifically, a chi-square test examines the observed frequencies in a category and compares them to what would be expected by chance or would be expected if there was no relationship between variables.

 

"Control":  The possession, direct or indirect, of power to direct or cause the direction of the management and policies of an applicant or licensee through the ownership of voting securities, by contract or otherwise.

 

"Convenience store":  A retail store that is open long hours and sells motor fuel and a limited selection of snacks and general goods.

 

"Credit":  One, five, 10 or 25 cents.

 

"Distributor":  An individual, partnership, corporation or limited liability company licensed under the Act to buy, sell, lease or distribute video gaming terminals or major components or parts of video gaming terminals to or from terminal operators.

 

"Enforce a security interest":  To transfer possession of ownership or title pursuant to a security interest.

 

"EPROM":  An acronym for Erasable, Programmable, Read Only Memory, which is a microprocessor component that stores memory and affects payout percentage and/or contains a random number generator that selects the outcome of a game on a video gaming terminal.

 

"Facility-pay" or "facility payment":  A manual payment of currency by an authorized employee of a licensed video gaming location or an authorized employee of a terminal operator for amounts owed to a patron by a video gaming terminal when a video gaming terminal or ticket payout device has malfunctioned and is unable to produce or redeem a ticket.

 

"Fraternal organization":  An organization or institution organized and conducted on a not-for-profit basis with no personal profit inuring to anyone as a result of the operation and that is exempt from federal income taxation under section 501(c)(8) or (c)(10) of the Internal Revenue Code (26 U.S.C. 501(c)(8) or (c)(10)).

 

"Game":  A gambling activity that is played for money, property or anything of value, including without limitation those played with cards, chips, tokens, vouchers, dice, implements, or electronic, electrical or mechanical devices or machines.

 

"Gaming":  The dealing, operating, carrying on, conducting, maintaining or exposing for play of any game.

 

"Gaming operation":  The conducting of gaming or the providing or servicing of gaming equipment.

 

"Gaming property collateral":  Video gaming equipment subject to a security interest.

 

"Illinois resident":

 

With respect to an individual, an individual who is either:

 

domiciled in Illinois or maintains a bona fide place of abode in Illinois; or

 

is required to file an Illinois tax return during the taxable year.

 

With respect to a corporation, any corporation organized under the laws of this State and any foreign corporation with a certificate of authority to transact business in Illinois.  A foreign corporation not authorized to transact business in this State is a nonresident of this State.

 

With respect to a partnership, a partnership in which any partner is an Illinois resident, or where the partnership has an office and is doing business in Illinois.

 

With respect to an irrevocable trust, a trust where the grantor was an Illinois resident individual at the time the trust became irrevocable.

 

"Immediate family":  A spouse (other than a spouse who is legally separated from the individual under a decree of divorce or separate maintenance), parents, grandparents, siblings, children whether by blood, marriage or adoption, grandchildren, and step-children, whether by blood, marriage, or adoption.

 

"In-location bonus jackpot game" or "in-location progressive game":  A video game in which the value of the top prize increases each time the game is played and the top prize is not won.

 

"Institutional investor": 

 

A retirement fund administered by a public agency for the exclusive benefit of federal, state or local public employees;

 

An investment company registered under section 8 of the Investment Company Act of 1940 (15 U.S.C. 80a-8);

 

A collective investment trust organized by a bank under Part 9 of the Rules of the Comptroller of the Currency (12 CFR 9.18);

 

A closed end investment trust registered with the United States Securities and Exchange Commission;

 

A chartered or licensed life insurance company or property and casualty insurance company;

 

A federal or state bank;

 

An investment advisor registered under the Investment Advisors Act of 1940 (15 U.S.C. 80b-1 through 80b-21); or

 

Such other person as the Illinois Gaming Board may determine for reasons consistent with the Act and this Part.

 

"License":  Authorization granted by the Board permitting a licensee to engage in the defined activities of video gaming.

 

"Licensed establishment":  Any retail establishment licensed under the Act where alcoholic liquor is drawn, poured, mixed or otherwise served for consumption on the premises. Licensed establishment does not include a facility operated by an organization licensee, an intertrack wagering licensee, or an intertrack wagering location licensee licensed under the Illinois Horse Racing Act of 1975 [230 ILCS 5] or a riverboat or casino licensed under the Illinois Gambling Act [230 ILCS 10].

 

"Licensed fraternal establishment":  The location licensed under the Act where a qualified fraternal organization that derives its charter from a national fraternal organization regularly meets.

 

"Licensed large truck stop establishment":  A facility located within 3 road miles from a freeway interchange, as measured in accordance with the Department of Transportation's rules regarding the criteria for the installation of business signs:

 

that is at least a 3-acre facility with a convenience store;

 

with separate diesel islands for fueling commercial motor vehicles;

 

that sells at retail more than 50,000 gallons of diesel or biodiesel fuel per month; and

 

with parking spaces for commercial motor vehicles. "Commercial motor vehicle" has the meaning ascribed at Section 18b-101 of the Illinois Vehicle Code. 

 

The requirement of this definition may be met by showing that estimated future sales or past sales average at least 50,000 gallons per month.

 

"Licensed technician":  An individual who is licensed under the Act to repair, service and maintain video gaming terminals.  A licensed technician is not licensed under the Act to possess or control a video gaming terminal or have access to the inner workings of a video gaming terminal (i.e., the logic area maintained in a separately locked cabinet of the video gaming terminal that houses electronic components that have the potential to significantly influence the operation of the video gaming terminal).

 

"Licensed terminal handler":  A person, including but not limited to an employee or independent contractor working for a manufacturer, distributor, supplier, technician or terminal operator, who is licensed under the Act to possess or control a video gaming terminal or to have access to the inner workings of a video gaming terminal.  A licensed terminal handler does not include an individual, partnership, corporation or limited liability company defined as a manufacturer, distributor, supplier, technician or terminal operator under Section 5 of the Act.

 

"Licensed truck stop establishment":  A facility licensed under the Act that is at least a 3-acre facility with a convenience store, that has separate diesel islands for fueling commercial motor vehicles, that sells at retail more than 10,000 gallons of diesel or biodiesel fuel per month, and that has parking spaces for commercial motor vehicles.  "Commercial motor vehicle" has the meaning ascribed at Section 18b-101 of the Illinois Vehicle Code [625 ILCS 5].  The 10,000 gallon requirement may be met by showing that estimated future sales or past sales average at least 10,000 gallons per month.

 

"Licensed veterans establishment":  The location licensed under the Act where a qualified veterans organization that derives its charter from a national veterans organization regularly meets.

 

"Licensed video gaming location":  A licensed establishment, licensed fraternal establishment, licensed veterans establishment, licensed truck stop establishment, or licensed large truck stop establishment, all as defined in Section 5 of the Act and this Part.

 

"Liquor license":  A license issued by a governmental body authorizing the holder to sell and offer for sale at retail alcoholic liquor for use or consumption.

 

"Major components or parts":  Components or parts that comprise the inner workings and peripherals of a video gaming terminal, including but not limited to the device's hardware, software, human interface devices, interface ports, power supply, ticket payout system, bill validator, printer and any component that affects or could affect the result of a game played on the device.

 

"Manufacturer":  An individual, partnership, corporation or limited liability company that is licensed under the Act and that manufactures or assembles video gaming terminals.

 

"Net terminal income":  Money put into a video gaming terminal minus credits paid out to players.

 

"Nominee":  Any individual or business entity that holds as owner of record the legal title to tangible or intangible personal or real property, including without limitation any stock, bond, debenture, note, investment contract or real estate on behalf of another individual or business entity, and as such is designated and authorized to act on his, her or its behalf with respect to the property.

 

"Ownership interest":  Includes, but is not limited to, direct, indirect, beneficial or attributed interest, or holder of stock options, convertible debt, warrants or stock appreciation rights, or holder of any beneficial ownership or leasehold interest in a business entity.

 

"Payout device": A device, approved by the Board and provided by a supplier or distributor, that redeems for cash tickets dispensed by a video gaming terminal in exchange for credits accumulated on a video gaming terminal.

 

"Person":  Includes both individuals and business entities.

 

"Place of worship under the Religious Corporation Act":  A structure belonging to, or operated by, a church, congregation or society formed for the purpose of religious worship and eligible for incorporation under the Religious Corporation Act [805 ILCS 110], provided that the structure is used primarily for purposes of religious worship and related activities.

 

"Problem gambling":  "A repetitive set of gaming behaviors that negatively impacts someone's life.

 

"Progressive jackpot":  The top prize in an in-location bonus jackpot game or in-location progressive game.

 

"Redemption period":  The one-year period, starting on the date of issuance, during which a ticket dispensed by a video gaming terminal may be redeemed for cash.

 

"Responsible gaming" means all of the following:

 

Policies for reducing harms related to gaming;

 

Providing a transparent and fair game;

 

Playing within time and money limits; and

 

Gaming for entertainment and fun.

 

"Secured party":  A person who is a lender, seller or other person who holds a valid security interest.

 

"Security":  An ownership right or creditor relationship.

 

"Security agreement":  An agreement that creates or provides a security interest, including but not limited to a use agreement.

 

"Security interest":  An interest in property that secures the payment or performance of an obligation or judgment.

 

"Sole proprietor":  An individual who in their own name owns 100% of the assets and who is solely liable for the debts of a business.

 

"Substantial interest":  With respect to a partnership, a corporation, an organization, an association, a business or a limited liability company means:

 

When, with respect to a sole proprietorship, an individual or their spouse owns, operates, manages, or conducts, directly or indirectly, the organization, association or business, or any part thereof; or

 

When, with respect to a partnership, the individual or their spouse shares in any of the profits, or potential profits, of the partnership activities; or

 

When, with respect to a corporation, an individual or their spouse is an officer or director or the individual or their spouse is a holder, directly or beneficially, of 5% or more of any class of stock of the corporation; or

 

When, with respect to a limited liability company, an individual or their spouse is a member, or the individual or their spouse is a holder, directly or beneficially, of 5% or more of the membership interest of the limited liability company; or

 

When, with respect to any other organization not covered in the preceding four paragraphs, an individual or their spouse is an officer or manages the business affairs, or the individual or their spouse is the owner of, or otherwise controls, 10% or more of the assets of the organization; or

 

When an individual or their spouse furnishes 5% or more of the capital, whether in cash, goods or services, for the operation of any business, association or organization during any calendar year.

 

For purposes of this definition, "individual" includes all individuals or their spouses whose combined interest would qualify as a substantial interest under this definition and whose activities with respect to an organization, association, or business are so closely aligned or coordinated as to constitute the activities of a single entity.

 

"Supplier":  An individual, partnership, corporation or limited liability company that is licensed under the Act to supply major components or parts to video gaming terminals to licensed terminal operators.

 

"Terminal operator":  An individual, partnership, corporation or limited liability company that is licensed under the Act that owns, services, and maintains video gaming terminals for placement in licensed establishments, licensed truck stop establishments, licensed fraternal establishments or licensed veterans establishments.

 

"Use agreement":  A contractual agreement between a licensed terminal operator and a licensed video gaming location establishing terms and conditions for placement and operation of video gaming terminals by the licensed terminal operator within the premises of the licensed video gaming location, and complying with all of the minimum standards for use agreements contained in Section 1800.320.

 

"Veterans organization":  An organization or institution organized and conducted on a not-for-profit basis with no personal profit inuring to anyone as a result of the operation and that is exempt from federal income taxation under section 501(c)(19) of the Internal Revenue Code (26 U.S.C. 501(c)(19)).

 

"Video gaming equipment":  Video gaming terminals, associated video gaming equipment and major components or parts.

 

"Video gaming location":  Any licensed video gaming location as defined in this Section, any applicant to become a licensed video gaming location, or any person that a terminal operator or sales agent and broker has reason to believe may apply to become a licensed video gaming location.

 

"Video gaming manager":  An employee or owner or designated representative of a licensed video gaming location who manages, oversees or is responsible for video gaming operations at the location, and coordinates the video gaming operations with a terminal operator or the central communications system vendor.

 

"Video gaming operation":  As the context requires, the conducting of video gaming and all related activities.

 

"Video gaming terminal":  Any electronic video game machine that, upon insertion of cash, electronic cards or vouchers, or any combination thereof, is available to play or simulate the play of a video game, including but not limited to video poker, line up and blackjack, as authorized by the Board utilizing a video display and microprocessors in which the player may receive free games or credits that can be redeemed for cash.  The term does not include a machine that directly dispenses coins, cash, or tokens or is for amusement purposes only.

 

(Source:  Amended at 49 Ill. Reg. 728, effective December 31, 2024)

 

Section 1800.115  Gender

 

Words importing the masculine gender include females and neutral entities.

 

Section 1800.120  Inspection

 

The Board and its agents shall have unrestricted access to enter the premises or motor vehicles of any licensee or applicant where evidence of compliance or noncompliance with the provisions of the Act or this Part may be found.

 

Section 1800.130 Board Meetings

 

The provisions of 86 Ill. Adm. Code 3000.105 shall apply to Board meetings under the Act.

 

(Source:  Added at 40 Ill. Reg. 2952, effective January 27, 2016)

 

Section 1800.140  Service Via E-mail

 

a)         As a condition of application and licensure, applicants and licensees are deemed to have consented to receiving service of Board notices, complaints, letters, and orders via e-mail.

 

b)         Each applicant and licensee has a duty under Section 1800.220  to update the e-mail address at which it may be served, if that address changes, and to verify that the application has an updated e-mail address no less than annually.

 

c)         Each applicant and licensee may designate up to two additional e-mail addresses at which notice may be served.  Each designated e-mail address must be owned by the licensee, its owner, its video gaming manager, or a person of significant influence or control over the applicant or licensee.

 

d)         E-mail notices shall be deemed served on the date of the transmission, unless a delivery error is received on the Board's e-mail server for all of the licensee's designated e-mail addresses.

 

e)         If a delivery error is received on the Board's e-mail server for all of the applicant's or licensee's designated e-mail addresses, then the notice or letter will be served via personal service or certified U.S. mail, unless the applicant or licensee updates the designated e-mail addresses.

 

(Source:  Added at 44 Ill. Reg. 16454, effective September 25, 2020)

 

Section 1800.210  General Duties of All Video Gaming Licensees

 

In addition to all other duties and obligations required by the Video Gaming Act and this Part, each video gaming licensee and applicant for licensure under the Act has an ongoing duty to comply with the following:

 

a)         Comply with all federal, State and local laws and regulations;

 

b)         At all times, conduct himself in a professional manner when communicating with the public and the Board;

 

c)         Disclose all ownership interest to the Board in accordance with the Video Gaming Act and this Part;

 

d)         Conduct the licensee's video gaming operation in a manner that does not pose a threat to the public health, safety, morals, good order or general welfare of the people of the State of Illinois;

 

e)         Conduct the licensee's video gaming operation in a manner that does not discredit or tend to discredit the Illinois gaming industry or the State of Illinois;

 

f)         Conduct the licensee's video gaming operation in a manner that does not reflect adversely on the security or integrity of the Illinois video gaming industry;

 

g)         Keep current in all payments and obligations to the State of Illinois and to other licensees with whom video gaming business is conducted.

 

h)         Identify to the Board any individual or entity acting on behalf of the licensee, for compensation, with regard to Board action.

 

i)          Notify the Board of any proposed change in ownership or any transaction that requires approval of qualifications in accordance with the Act and this Part on forms supplied or approved by the Board and containing such information and documents as specified, and at such time as required, by the Administrator.

 

Section 1800.220  Continuing Duty to Report Information

 

Licensees and applicants for licensure under the Act and persons with significant influence or control have a continuing duty to report within 21 days all of the following to the Administrator or his or her designee:

 

a)         A violation of the Act, this Part or any illegal conduct, including, but not limited to, the possession, maintenance, facilitation or use of any illegal gaming device.

 

b)         Any fact, event, occurrence, matter or action that may affect the conduct of video gaming or the business and financial arrangements incidental to the conduct of video gaming, or the ability to conduct the activities for which the licensee is licensed, including, but not limited to, any change or addition in persons identified as having significant influence or control.

 

c)         Each arrest, summons, citation or charge for any criminal offense or violation, excluding minor traffic violations.  Information to be reported under this subsection shall include, but not be limited to, all changes relating to criminal arrest or criminal proceeding disposition history concerning any criminal offense under the laws of any jurisdiction or the Uniform Code of Military Conduct, in any state or foreign country.  As disciplinary action for a violation of this subsection, the Administrator may impose a fine of $250 for a first violation and $500 for a second or subsequent violation.  Imposition of a fine by the Administrator under this subsection shall not preclude the Board from initiating additional or further disciplinary action against a licensee or applicant. A licensee or applicant that has been issued a fine under this subsection may contest the fine under Subpart G.  For purposes of filing a response under Section 1800.720, a notice of fine under this subsection shall be considered a notice of proposed disciplinary action.

 

d)         Any adverse action taken, nonrenewal, or failure to timely renew relative to a liquor license.  As disciplinary action for a violation of this subsection, the Administrator may impose a fine not to exceed 50 percent of the total amount of Net Terminal Income for the period of time that the establishment, fraternal establishment, or veterans establishment operated video gaming terminals in violation of Section 55 of the Video Gaming Act.  Imposition of a fine by the Administrator under this subsection shall not preclude the Board from initiating additional or further disciplinary action against a licensee or applicant.  A licensee that has been issued a fine under this subsection may contest the fine under Subpart G.  For purposes of filing a response under Section 1800.720, a notice of fine shall be considered a notice of proposed disciplinary action.

 

e)         Any changes or additions to all material information provided in an application for a video gaming license, including but not limited to:

 

1)         Use Agreements;

 

2)         Persons who have acted or will act as a sales agent or broker, or otherwise engage in the solicitation of business from current or potential licensed video gaming locations; and

 

3)         Agreements with any individual or business entity related to the sharing of, or allotting, any sums of money derived from the operation of video gaming.

 

(Source:  Amended at 41 Ill. Reg. 4499, effective April 14, 2017)

 

Section 1800.230  Duties of Licensed Manufacturers

 

In addition to all other duties and obligations required by the Video Gaming Act and this Part, each licensed manufacturer has an ongoing duty to comply with the following:

 

a)         Manufacture video gaming terminals and associated video gaming equipment for placement in the State in accordance with the specifications and procedures set forth in the Act, this Part and the technical standards adopted by the Board;

 

b)         Make available the odds of winning for each video gaming terminal on the terminal's video monitor, accessible from a clear and conspicuous help button or touch screen icon.  The odds of winning, the manner in which they are calculated, and the allowable payout percentages shall be in accordance with the Act and the technical standards adopted by the Board;

 

c)         Maintain and provide inventory of associated video gaming equipment for certified video gaming terminals sold by the manufacturer for use in Illinois to ensure the timely repair and continued, approved operation and play of those video gaming terminals;

 

d)         Provide technical assistance and training in accordance with the Act and this Part;

 

e)         Comply with the provisions of the Gaming Device Act of 1962 (15 USC 1173);

 

f)         Obtain all approvals and certifications required by the Act and this Part or as required by the Board;

 

g)         Not own, manage or control a licensed establishment, licensed truck stop establishment, licensed fraternal establishment or licensed veterans establishment;

 

h)         Service, maintain or repair video gaming terminals at licensed video gaming locations only by licensed technicians or licensed terminal handlers; and

 

i)          Promptly notify all terminal operators with which the licensed manufacturer does business if the licensed manufacturer's hardware or software used in the operation of video gaming terminals is revoked under any circumstances.

 

(Source:  Amended at 38 Ill. Reg. 19919, effective October 2, 2014)

 

Section 1800.240  Duties of Licensed Distributors

 

In addition to all other duties and obligations required by the Act and this Part, each licensed distributor has an ongoing duty to comply with the following:

 

a)         Buy, sell, distribute, lease or market in Illinois only video gaming terminals that have been tested and certified for use in Illinois;

 

b)         Provide technical assistance and training in accordance with the Act and this Part;

 

c)         Not own, manage or control a licensed establishment, licensed truck stop establishment, licensed fraternal establishment or licensed veterans establishment;

 

d)         Service, maintain or repair video gaming terminals at licensed video gaming locations only by licensed technicians or licensed terminal handlers; and

 

e)         Promptly notify all terminal operators with which the licensed distributor does business if the licensed manufacturer's hardware or software used in the operation of that terminal operator's video gaming terminals is revoked under any circumstances.

 

(Source:  Amended at 38 Ill. Reg. 19919, effective October 2, 2014)

 

Section 1800.250  Duties of Terminal Operators

 

In addition to all other duties and obligations required by the Act and this Part, each licensed terminal operator has an ongoing duty to comply with the following:

 

a)         Assume the primary responsibility for the operation and maintenance of video gaming terminals and for payment of tax remittance to the State as required by the Act;

 

b)         Maintain and provide, either directly or through a licensed manufacturer, distributor, supplier, licensed technician, or licensed terminal handler, an inventory of associated video gaming equipment to ensure the timely repair and continued, approved operation and play of the video gaming terminals it operates;

 

c)         Ensure the timely repair and continued, approved operation and play of the video gaming terminals it operates;

 

d)         Assume responsibility for the payment of valid receipt tickets issued by video gaming terminals it operates;

 

e)         Maintain at all times an approved method of payout for valid receipt tickets and pay all valid receipt tickets;

 

f)         Assume responsibility for terminal and associated video gaming equipment malfunctions, including any claim for the payment of credits arising from malfunctions;

 

g)         Promptly notify the Board of electronic or mechanical malfunctions or problems experienced in a terminal that affect the integrity of terminal play;

 

h)         Extend no form of deferred payment for video gaming terminal play in which an individual receives something of value now and agrees to repay the lender in the future for the purpose of wagering at a video gaming terminal;

 

i)          Maintain a single bank account for all licensed video gaming locations with which it contracts for deposit of aggregate revenues generated from the play of video gaming terminals and allow for electronic fund transfers for tax payments;

 

j)          Only enter into use agreements or agreements that purport to control placement and operations of video gaming terminals with video gaming locations that comply with the Act and this Part;

 

k)         Obtain and install, at no cost to the State and as required by the Board, all hardware, software and related accessories necessary to connect video gaming terminals to a central communications system;

 

l)          Offer or provide nothing of value to video gaming location or any person related to or affiliated with a video gaming location as an incentive or inducement to locate, keep or maintain video gaming terminals at the video gaming location;

 

m)        Not own, manage or control a licensed establishment, licensed truck stop establishment, licensed large truck stop establishment, licensed fraternal establishment, or licensed veterans establishment;

 

n)         Conduct advertising and promotional activities in accordance with this Part and in a manner that does not reflect adversely on or that would discredit or tend to discredit the Illinois gaming industry or the State of Illinois;

 

o)         Respond to service calls within a reasonable time from the time of notification by the video gaming location;

 

p)         Immediately remove all video gaming terminals from the restricted area of play:

 

1)         upon order of the Board or an agent of the Board; or

 

2)         that have been out of service or otherwise inoperable for more than 72 hours;

 

q)         Provide the Board on a monthly basis a current list of video gaming terminals acquired for use in Illinois;

 

r)          Not install, remove or relocate any video gaming terminal without prior notification and approval of the Administrator;

 

s)         Provide prompt notice of an assignment of a use agreement to the Board, the affected location, and the central communications system vendor;

 

t)          Maintain a video gaming terminal access log for each video gaming terminal, which must be kept inside the video gaming terminal at all times, documenting all access to the video gaming terminal.  The log format shall provide for the time and date of access, the persons who had access, the license number when applicable and the nature of the service or repair made during the access;

 

u)         Service, maintain or repair video gaming terminals at licensed video gaming locations only by licensed technicians or licensed terminal handlers;

 

v)         Purchase keys and locks for video gaming terminals that are approved by the Board and are specific to the terminal operator.  All keys shall be numbered, reported to the Board and available for audits.  The Board shall be provided with access to the logic box of a video gaming terminal upon request.  If a terminal operator's actions necessitate a rekeying, the costs of rekeying shall be at the terminal operator's expense.  A terminal operator shall immediately inform the Board if a key is lost or stolen;

 

w)        Provide, at the terminal operator's expense, digital surveillance cameras that continuously record at all times when video gaming terminals are operational. These cameras shall be maintained at all licensed video gaming locations with which the terminal operator has entered into a use agreement. The surveillance provided by these cameras shall extend to all areas where video gaming is being conducted and video gaming vouchers are redeemed.  Recorded images must clearly and accurately display the time and date. Recordings shall not be destroyed or altered and shall be retained for at least 30 days. Surveillance recordings are subject to inspection by the Board through its agents and must be kept in a manner that allows the Board to view and obtain copies of the recordings immediately upon request. All surveillance recordings must record at a minimum of 10 frames per second and at a minimum resolution of 1280 x 720 px. All video surveillance data collected pursuant to this subsection shall be stored at the video gaming location or through offsite storage (e.g., cloud storage, offsite server).  If stored at the video gaming location, neither the licensed location, nor any owner, person of significant influence or control, nor any of their employees, may access the video surveillance data.  The retention of backed up video surveillance data shall take place twice monthly, by the first and fifteenth of each month, into a safe and secure location that shall not be accessible except by the terminal operator or a Board agent. The provisions of this subsection shall become operative on July 1, 2020; and

 

x)         Create a form for the use of licensed video gaming locations as a receipt for progressive jackpot winners.  After the Administrator approves that form, the terminal operator shall distribute the forms to all licensed video gaming locations operating in-location bonus jackpot games or in-location progressive games with which the terminal operator has a use agreement.  The form shall have payment instructions for the winning patron, identify contact information for the terminal operator, and be capable of having the following information recorded in triplicate:

 

1)         The winner's name and address;

 

2)         The date and time the progressive jackpot was won;

 

3)         Identification number and location of the video gaming terminal on which the progressive jackpot was won; and

 

4)         Game outcome (for example, reel symbols, card values or suits).

 

y)         Offer or provide nothing of value to any other person that does not hold a sales agent and broker license or who is not a person of significant influence and control who has been disclosed pursuant to Section 220(e)(2) of this Part as a result of any compensation earned in connection with the solicitation of agreements that purport to control the placement and operation of video gaming terminals on behalf of a terminal operator.

 

(Source:  Amended at 47 Ill. Reg. 2682, effective February 10, 2023)

 

Section 1800.260  Duties of Licensed Technicians and Licensed Terminal Handlers

 

In addition to all other duties and obligations required by the Act and this Part, each licensed technician and licensed terminal handler has an ongoing duty to comply with the following:

 

a)         Promptly notify the Board of electronic or mechanical malfunctions or problems experienced in a terminal that affect the integrity of terminal play; 

 

b)         Promptly notify the Board of any unauthorized or illegal video gaming location or any video gaming terminal that is in violation of Section 35 of the Act;

 

c)         Ensure that every video gaming terminal is licensed by the Board before any service, maintenance or repair is performed;

 

d)         Comply with all technical standards and requirements issued by the Board;

 

e)         Carry and display identification issued by the Board when working on video gaming terminals and associated video gaming equipment;

 

f)         For each video gaming terminal accessed by a licensed terminal handler, record in each video gaming terminal access log the time and date of access, the person, and his or her license number, who had access, and the nature of the service or repair made during the access;

 

g)         Pay a fee of $10 to the Board for any necessary replacement of identification;

 

h)         Return identification to the Board upon resignation or termination of employment;

 

i)          Not play any video gaming terminal for recreational purposes;

 

j)          Comply with all requests by Board agents for identification or for access to the logic box within a video gaming terminal;

 

k)         Following any access, possession or control of a video gaming terminal, provide information on a project sheet that shall include, at a minimum, the name of the licensed technician or licensed terminal handler, time during which the video gaming terminal was accessed, possessed or controlled, and nature of any servicing or repairs; and

 

l)          Inform the central communications system before clearing meters on a video gaming terminal. 

 

(Source:  Amended at 44 Ill. Reg. 489, effective December 27, 2019)

 

Section 1800.265  Duties of Sales Agents and Brokers

 

In addition to all other duties and obligations required by the Act and this Part, each licensed sales agent and broker, or any person of significant influence or control of a terminal operator that is engaged in the solicitation of use agreements or any other agreement that purports to control the placement and operation of video gaming terminals for that terminal operator, has an ongoing duty to comply with the following:

 

a)         Carry and display identification issued by the Board when engaged in the active solicitation of use agreements on behalf of a terminal operator;

 

b)         Pay a fee of $10 to the Board for any necessary replacement of identification;

 

c)         Return Board issued identification to the Board within 30 days upon expiration, surrender, or termination of licensure, or rescission of Board issued temporary identification;

 

d)         Only solicit or facilitate use agreements or agreements that purport to control the placement and operation of video gaming terminals with video gaming locations that comply with the Act and this Part;

 

e)         Offer or provide nothing of value to any video gaming location, or any person related to or affiliated with video gaming location as identified in Section 1800.350(a)(2) of this Part, as an incentive or inducement to locate, keep or maintain video gaming terminals at the video gaming location (see Section 1800.350);

 

f)         Affirmatively disclose to every video gaming location being solicited the identity of any terminal operator on whose behalf the person is acting when soliciting use agreements or any agreements that purport to control the placement and operation of video gaming terminals.

 

g)         Disclose to any terminal operator on whose behalf the sales agent and broker is acting the identity of any and all of that sales agent and broker's employees, subcontractors, or other persons who may assist the sales agent and broker in solicitation or facilitation of use agreements or other agreements that purport to control the placement and operation of video gaming terminals on behalf of that terminal operator. Sales agents and brokers shall make such disclosure before those persons may engage in any solicitation or facilitation on behalf of the terminal operator.

 

h)         Offer or provide nothing of value to any other person as any form of compensation or payment in connection with the solicitation of use agreements or agreements that purport to control the placement and operation of video gaming terminals on behalf of a terminal operator unless:

 

1)         The person is a licensed sales agent and broker, and

 

2)         The person has been disclosed to the terminal operator as having been involved in the solicitation of the agreement for which that person is receiving compensation or payment.

 

i)          Retain a record of all payments or compensation of any kind made to any person in connection with the solicitation of use agreements or any other agreements that purport to control the placement and operation of video gaming terminals.

 

(Source:  Added at 47 Ill. Reg. 2682, effective February 10, 2023)

 

Section 1800.270  Duties of Licensed Video Gaming Locations

 

In addition to all other duties and obligations required by the Act and this Part, each licensed video gaming location has an ongoing duty to comply with the following:

 

a)         Provide a secure premise for the placement, operation and play of video gaming terminals;

 

b)         Permit no one to tamper with or interfere with the approved operation of any video gaming terminal;

 

c)         Ensure that all connections with the central communications system and associated video gaming equipment are at all times maintained and prevent any person from tampering or interfering with the approved, continuing operation of the central communications system;

 

d)         Accept nothing of value from any video terminal operator or any agent or representative of any video terminal operator as an incentive or inducement to locate, keep or maintain video gaming terminals at the licensed video gaming location;

 

e)         Conduct advertising and promotional activities in accordance with this Part and in a manner that does not reflect adversely on or that would discredit or tend to discredit the Illinois gaming industry or the State of Illinois;

 

f)         Immediately remove all video gaming terminals from the restricted area of play:

 

1)         upon order of the Board or an agent of the Board; or

 

2)         that have been out of service or otherwise inoperable for more than 72 hours;

 

g)         Enter written use agreements with licensed video terminal operators that comply with this Part;

 

h)         Ensure that video gaming terminals are placed and remain in a designated, approved location;

 

i)          Prevent access to or play of video gaming terminals by persons who are under the age of 21 years or who are visibly intoxicated;

 

j)          Commit no violations of the laws of this State concerning the sale, dispensing or consumption on premises of alcoholic beverages that results in suspension or revocation of any liquor license held by or associated with a licensed video gaming location;

 

k)         Maintain at all times an approved method of payout for valid receipt tickets and redeem for cash each valid receipt ticket dispensed by a video gaming terminal that is within its redemption period;

 

l)          Extend no form of deferred payment for video gaming terminal play in which an individual receives something of value now and agrees to repay the lender in the future for the purpose of wagering at a video gaming terminal;

 

m)        Promptly report to the terminal operator:

 

1)         all malfunctions of video gaming terminals and all out-of-service terminals; and

 

2)         any unlawful or unwarranted entry onto the property or into the licensed video gaming location involving or affecting play, mechanism or contents of video gaming terminals, redemption devices, or connected equipment;

 

n)         Promptly report to the Administrator (or his or her designee):

 

1)         if a terminal operator fails to provide service and repair of video gaming terminals and associated equipment within 24 hours after notice to the terminal operator;

 

2)         any unauthorized or illegal video gaming terminals or any video gaming device that is in violation of Section 35 of the Video Gaming Act;

 

3)         any action taken on or related to any liquor license held by the licensed video gaming location; and

 

4)         any unlawful or unwarranted entry onto the property or into the licensed video gaming location involving or affecting play, mechanism or contents of video gaming terminals, redemption devices, or connected equipment;

 

o)         Install, post and display signs as required by the Board, including signs indicating that video gaming terminal play is limited to persons 21 years of age or older;

 

p)         Exercise control over the licensed video gaming location;

 

q)         Allow maintenance and/or service of video gaming terminals and associated video gaming equipment only by licensed technicians and licensed terminal handlers possessing valid identification issued by the Board; and

 

r)          Ensure that video gaming terminals at the location are not played for recreational purposes by an owner, person with significant influence or control, or video gaming manager of the location.

 

(Source:  Amended at 40 Ill. Reg. 8760, effective June 14, 2016)

 

Section 1800.310  Grounds for Disciplinary Actions

 

a)         Holders of any license issued under the Act and identified persons with significant influence or control shall be subject to imposition of fines, suspension, revocation or restriction of license, or other disciplinary action for any act or failure to act by themselves or by their agents or employees that is injurious to the public health, safety, morals, good order and general welfare of the people of the State of Illinois, or that would discredit or tend to discredit the Illinois video gaming industry or the State of Illinois.  Without limiting the provisions of this subsection (a), the following acts or omissions may be grounds for discipline:

 

1)         Failing to comply with or make provision for compliance with the Act, this Part, any federal, State or local law or regulation, or a control system or protocol mandated by the Board;

 

2)         Failing to comply with any order or ruling of the Board or its agents pertaining to the regulation of video gaming in Illinois;

 

3)         Receiving goods or services from a licensee or other person in violation of the Act's licensing requirements, or in violation of any restriction, condition or prohibition of a license;

 

4)         Being suspended or ruled ineligible or having a license revoked or suspended in any state or gaming or video gaming jurisdiction;

 

5)         Employing, associating with, or participating in any enterprise or business with a documented or identifiable organized crime group or recognized organized crime figure;

 

6)         Employing, associating with, or participating in any enterprise or business with persons of notorious or unsavory reputation or who have extensive police records, or who have failed to cooperate with any officially constituted investigatory or administrative body;

 

7)         Failing to establish and maintain standards and procedures designed to prevent ineligible or unsuitable persons from being employed by the licensee, including any person known to have been found guilty of cheating or using any improper device in connection with any game or gaming device regulated under the Act or under the law of any gaming jurisdiction;

 

8)         Misrepresenting any information to the Board;

 

9)         Intentionally making, causing to be made, or aiding, assisting, or procuring another to make any false statement in any report, disclosure, application, permit, form, or any other document, including improperly notarized documents, required by the Act, this Part or Board requirements;

 

10)         Submitting tardy, inaccurate, or incomplete material or information to the Board;

 

11)         Obstructing or impeding the lawful activities of the Board or its agents;

 

12)         Willfully or repeatedly failing to pay amounts due or to be remitted to the State;

 

13)         Failing to timely pay amounts due or to be remitted to the State;

 

14)         Failing to timely pay a fine imposed by the Board;

 

15)         Failing to respond in a timely manner to communications from the Board;

 

16)         Being unavailable to the Board or its representatives or agents;

 

17)         Aiding and abetting a violation by a Board member or employee, or other government official, of a requirement established by statute, resolution, ordinance, personnel code or code of conduct;

 

18)         Violation of the Act or this Part by any person identified as a person with significant influence or control;

 

19)         Employing, associating with, or participating in any enterprise or business with a person determined unsuitable to be a person with significant influence or control over an applicant or licensee by the Board or any other gaming jurisdiction;

 

20)         Facilitating, enabling or participating in the use of coin-operated amusement devices for gambling purposes on or after December 16, 2009;

 

21)         Engaging in, or facilitating, any unfair methods of competition or unfair or deceptive acts or practices, including, but not limited to, the use or employment of any deception, fraud, false pretense, false promise or misrepresentation, or the concealment, suppression or omission of any material fact in the conduct of any video gaming operation;

 

22)         Failing to maintain minimum qualifications for licensure; and

 

23)         Any cause that, if known to the Board, would have disqualified the applicant from receiving a license.

 

b)         A licensee whose employment has been terminated is subject to revocation of license for any act or failure to act that occurred while licensed.

 

c)         A person who has had his or her license revoked by the Board may not reapply for a license without permission from the Board.

 

(Source:  Amended at 36 Ill. Reg. 18550, effective December 14, 2012)

 

Section 1800.320  Minimum Standards for Use Agreements

 

a)         All Use Agreements must comply with the following:

 

1)         Only be between:

 

A)        A licensed terminal operator that, beginning July 15, 2014, is licensed by the Board at the time the Use Agreement is signed; and

 

B)        For all applicants filing application for a licensed video gaming location on or after October 1, 2022, any of the following:

 

i)          a licensed video gaming location;

 

ii)         an applicant to become a licensed video gaming location; or

 

iii)        any person that applies to become a licensed video gaming location within one year of executing the Use Agreement;

 

2)         Subject to the requirements of subsection (a)(1)(B), if an applicant becomes licensed, a first-in-time Use Agreement, and any amendments thereto, shall control from the date the Use Agreement is executed, and be superior to any Use Agreements executed by the applicant after the first-in-time Use Agreement's execution.

 

3)         An executed Use Agreement becomes void if either:

 

A)        the person executing the Use Agreement under subsection (a)(1)(B) fails to apply for a video gaming location license within one year of execution; or

 

B)        the person executing the Use Agreement under subsection (a)(1)(B) is denied a video gaming location license by a Final Board Order.

 

4)         Contain an affirmative statement that no inducement was offered or accepted regarding the placement or operation of video gaming terminals in a licensed video gaming location.

 

5)         Contain an indemnity and hold harmless provision on behalf of the State, the Board and its agents relative to any cause of action arising from a use agreement.

 

6)         Prohibit any assignment other than from a licensed terminal operator to another licensed terminal operator.

 

7)         Contain a provision that releases the video gaming location from any continuing contractual obligation to the terminal operator in the event that the terminal operator has its license revoked or denied, has its renewal denied, or surrenders its license.

 

8)         State which sales agent, broker or other person, if any, procured the Use Agreement on behalf of the terminal operator.

 

9)         Not provide for automatic renewal in the absence of cancellation.

 

10)       Not be for a length of time exceeding eight years.

 

11)       Contain a provision that terminates the Use Agreement if an applicant to be a licensed video gaming location is denied pursuant to a final Board order or a licensed video gaming location is not renewed pursuant to a final Board order.

 

12)       Contain a provision that the parties agree to modify the Use Agreement to the extent necessary to comply with a change in Illinois statutes, Board rules, or a Board directive or order.

 

13)       Terminal Operators shall provide a final copy of the Use Agreement to the video gaming location after execution by the parties.

 

b)         Petitions

 

1)         The Board shall decide a petition brought by a terminal operator, licensed video gaming location or other interested party to determine the validity or enforceability of an agreement, or portion of an agreement, that purports to control the location and operation of video gaming terminals. For purposes of this Section an "interested party" is a party asserting legal rights whose enforcement requires, or may be materially and substantially affected by, Board action.  Issues the Board has authority to decide under this subsection (b) include, but are not limited to, the following:

 

A)        Whether the agreement is one that controls the placement or operation of video gaming terminals.

 

B)        When two or more agreements between a licensed video gaming location and one or more terminal operators have overlapping effective dates, which of the agreements is valid during the period of overlap.

 

C)        Whether an agreement, or portion of an agreement, complies with the requirements of the Act and this Part.

 

D)        Whether a renewal provision in an agreement poses such obstacles against non-renewal, or confusion about the procedures for non-renewal, as to constitute an undue burden on the licensed video gaming location that has entered into the provision.

 

E)        Whether a terminal operator or anyone on its behalf has used coercion, deception, or an inducement or incentive in violation of Section 25(c) of the Act or this Part to persuade a licensed video gaming location to enter into or renew an agreement.

 

F)         Whether one or more terms of an agreement constitute practices detrimental to the public interest or against the best interests of video gaming.

 

2)         Petitions under this subsection (b) shall be in writing and shall include an original and one copy unless submitted by e-mail to an e-mail address designated for that purpose on the Board's website.  Any petitioner under this Section shall bear the burden of proof by clear and convincing evidence.  A petition shall contain the following:

 

A)        The name, current address, current telephone number, and e-mail address of the petitioner.

 

B)        Detailed facts and reasons upon which the petitioner relies in arguing that an agreement, or portion of an agreement, is invalid or unenforceable.  Petitions may include documentary evidence and affidavits.  When the petitioner is petitioning as an interested party, the petition must include detailed facts and reasons upon which the petitioner relies in arguing that it has legal rights whose enforcement requires, or may be materially and substantially affected by, Board action.

 

C)        A signature of the petitioner.

 

D)        A verification of the petition in the following form:

 

"The undersigned certifies that the statements set forth in this petition are true and correct, except as to matters therein stated to be on information and belief, and as to such matters the undersigned certifies that he or she verily believes the same to be true."

 

E)        A notarization.

 

3)         Following receipt of a petition meeting the requirements of subsection (b)(2), the Administrator shall promptly send by certified mail or e-mail to each non-petitioning terminal operator or licensed video gaming location or other interested party named in the petition a complete copy of the petition, including all submitted documents.  Non-petitioning parties named in the petition must file a response within 21 days after their receipt of the petition.  All responses shall be in writing and shall include an original and one copy unless submitted by e-mail to an e-mail address designated for that purpose on the Board's website.  A response shall be deemed filed on the date on which it is postmarked.  The response shall contain the following:

 

A)        The name, current address, current telephone number, and e-mail address of the responding party.

 

B)        A clear and concise statement admitting or denying each of the allegations set forth in the petition.

 

C)        For all allegations that the licensee denies, detailed facts and reasons upon which the non-petitioning party relies in arguing that the agreement, or portion of the agreement, is valid or enforceable.  Responses may include documentary evidence and affidavits.

 

D)        A signature of the licensee.

 

E)        A verification of the licensee in the following form:

 

"The undersigned certifies that the statements set forth in this response are true and correct, except as to matters therein stated to be on information and belief, and as to such matters the undersigned certifies that he or she verily believes the same to be true."

 

F)         A notarization.

 

4)         The Administrator shall promptly provide a petitioning party with complete copies of all submitted responses meeting the requirements of subsection (c)(2).

 

5)         Before rendering a recommended decision, the Administrator may require the parties to attend a conference to attempt to settle any dispute under this subsection (b)(5).

 

6)         Administrator's Recommended Decision

 

A)        Following the expiration of the 21-day response period, the Administrator shall issue a written recommended decision on the validity or enforceability of the contested agreement, or contested portions of the agreement, based on the contents of the petition and any responses.

 

B)        The Administrator's recommended decision shall set forth the reasons the Administrator is recommending the granting or denial of the petition. When the petition asserts more than one claim as to the validity or enforceability of the agreement, or a portion of the agreement, the Administrator shall separately decide each claim.

 

C)        Copies of the Administrator's recommended decision shall be served on each party by personal delivery, certified mail or overnight express mail to the party's last known address, or e-mail provided pursuant to Section 1800.140 or subsection (b)(2)(A) of this Section.

 

7)         A petitioning party or party named in a petition brought under this subsection (b) may file exceptions to the recommended decision of the Administrator.  The exception shall be filed with the Board no later than 14 days after receipt of the recommended decision.  Exceptions shall specify each finding of fact and conclusion of law to which exception is taken. There shall be no oral argument on exceptions.

 

8)         Intervention

 

A)        Upon timely written application prior to the Administrator issuing a recommendation, the Administrator may, in his or her discretion, permit any interested party to intervene in the petition process, if that party may be materially and adversely affected by a final order arising from the petition.

 

B)        In exercising his or her discretion, the Administrator shall consider whether intervention will unduly delay or prejudice the adjudication of the rights of the original parties.

 

C)        A petition for intervention must meet the same standards as an initial petition or response under subsection (b)(2) or (b)(3).  It must also include sufficient facts for the Administrator to find that the intervening party may be materially and adversely affected by a final order arising from the petition.

 

D)        Upon making a determination that a party may be permitted to intervene, the Administrator shall provide to the intervenor a copy of the original petition, as well as any responses. The Administrator shall also notify all other parties that the petition to intervene has been granted, and provide those parties with a copy of the petition to intervene.

 

9)         Prior to the Board rendering a decision, the Administrator may require the parties to attend a conference to attempt to settle any dispute under this subsection (b).

 

10)       Any relief given by the Board under this subsection (b) shall be limited to deciding which agreement, or portion of the agreement, is valid for the placement and operation of video gaming terminals in a licensed video gaming location.  The Board has the express authority to order a licensed terminal operator to remove its Video Gaming Terminals from a licensed establishment if an agreement, or portion of the agreement, is invalidated.  The Board shall not award monetary damages of any kind.  Any failure by a party to abide by the Board's decision shall subject the licensee to discipline. 

 

11)       Ex Parte Communication Prohibited.  No party or its representative shall make any communication directly or indirectly with the Administrator, employees, or members of the Illinois Gaming Board regarding a pending petition that imparts material information or makes a material argument, except upon notice to and opportunity for all parties to participate.

 

12)       Final Board Order

 

A)        The Board shall review the entire record, including the petitions filed, the Administrator's recommended decision, and any exceptions filed, and shall render a written order including the bases for its decision.

 

B)        Copies of the final Board order shall be served on each licensee by personal delivery, certified mail or overnight express mail to the licensee's last known address, or e-mail provided pursuant to Section 1800.140 or subsection (b)(2)(A) of this Section.

 

C)        A final Board order shall become effective upon personal delivery

to a party, upon posting by certified or overnight express mail to the party's last known address, or sending of e-mail provided pursuant to Section 1800.140 or subsection (b)(2)(A) of this Section.

 

c)         The Board shall promulgate a standard form for Use Agreements and establish an effective date for its implementation.  All new and renewed Use Agreements entered into on or after that effective date shall incorporate the language of the standard form and shall be consistent with the standard form in all respects.

 

d)         Unless otherwise indicated, whenever the term "agreement" is used in this Section, it refers to an agreement that purports to control the operation and placement of video gaming terminals.

 

(Source:  Amended at 46 Ill. Reg. 17107, effective September 28, 2022)

 

Section 1800.321  Solicitation of Use Agreements or Agreements that Purport to Control the Placement and Operation of Video Gaming Terminals

 

a)         Solicitation

 

1)         No person may solicit a video gaming location for any use agreement that purports to control the placement and operation of video gaming terminals on behalf of a terminal operator unless that person:

 

A)        has a valid sales agent and broker license or has been previously identified as a person of significant influence or control of the terminal operator under Section 1800.430(d); and

 

B)        has been disclosed pursuant to Section 220(e)(2) of this Part.

 

2)         There is a rebuttable presumption that any person who may receive or has received a commission, payment, bonus, or other compensation in connection with the execution of a use agreement or other agreement that purports to control the placement and operation of video gaming terminals is engaged in solicitation.

 

b)         No person shall be compensated by a terminal operator for solicitation of any use agreement or any other agreement that purports to control the placement and operation of video gaming terminals if that person has been the subject of a Final Board Order revoking or denying renewal of their sales agent and broker license or ordering their economic disassociation.

 

(Source:  Added at 47 Ill. Reg. 2682, effective February 10, 2023)

 

Section 1800.330  Economic Disassociation

 

a)         Each applicant or licensee shall provide a means for the economic disassociation of any person who, with respect to that applicant or licensee, is a Person With Significant Influence or Control, a holder of an Ownership Interest, or any licensed sales agent and broker, in the event the economic disassociation is required by an order of the Board.

 

b)         Based upon findings from an investigation into the character, reputation, experience, associations, business probity, and financial integrity of a Person With Significant Influence or Control, a holder of an Ownership Interest, or any licensed sales agent and broker, the Board may enter an order upon a licensee to require the economic disassociation of that person.  A person whose economic disassociation has been ordered may contest the order under the provisions of Subpart G.  A violation of an order of economic disassociation may result in a complaint against the licensee under Subpart G.  Any hearing relating to an order of economic disassociation shall be a hearing on the merits of the Board's determination that economic disassociation is warranted.  The licensee shall be considered the party to the hearing.

 

c)         The Board may enter an order of economic disassociation under this Section under any criteria for denial of license set forth in Section 9 of the Illinois Gambling Act [230 ILCS 10] or Section 45 of the Video Gaming Act.

 

d)         If an order of economic disassociation is contested under subsection (b) of this Section, all payments owed to or in connection with the subject person shall be suspended until the Board issues its final Board order.

 

e)         If the final Board order under subsection (d) results in economic disassociation, no further payments may be made to the disassociated person other than fair market value consideration for a loss of ownership interest.

 

f)         If the final Board order under subsection (d) does not result in economic disassociation, then any payments suspended pursuant to subsection (d) of this Section may be paid.

 

g)         No licensee shall engage in any economic association with any person who has been subject to any final Board order of economic disassociation.

 

(Source:  Amended at 47 Ill. Reg. 2682, effective February 10, 2023)

 

Section 1800.340  Change in Ownership of Terminal Operators and Assets Held by Terminal Operators

 

a)         Notwithstanding any other Subpart, any ownership interest in a licensed terminal operator may only be transferred with leave of the Board.  Any ownership interest in a business entity, other than a publicly traded corporation that has an interest in a licensed terminal operator may only be transferred with leave of the Board.

 

1)         Any person, other than a licensed terminal operator, seeking to acquire less than a 100% ownership interest in a licensed terminal operator must complete either a Business Entity or Personal Disclosure Form, whichever is applicable, and provide any other information specifically requested by the Board, including, but not limited to:

 

A)        the reason for acquisition of ownership interest; and

 

B)        disclosure of other ownership interests.

 

2)         Any person, other than a licensed terminal operator, seeking to acquire a 100% ownership interest in a licensed terminal operator must complete a terminal operator application.

 

3)         Any licensed terminal operator seeking to acquire an ownership interest in another licensed terminal operator must provide any information requested by the Board, including, but not limited to, the information specified in subsections (a)(1)(A) and (a)(1)(B).

 

4)         The Board shall investigate persons seeking to acquire an ownership interest in a licensed terminal operator.

 

5)         The Board shall grant leave to transfer an ownership interest in a terminal operator only after the Board is satisfied that the transaction does not adversely affect public confidence and trust in gaming, does not pose a threat to the public interests of the State or to the security and integrity of video gaming, and does not discredit or tend to discredit the Illinois gaming industry or the State of Illinois.  The Board shall consider, without limitation, the licensing criteria found in the Act and in Section 1800.420 in deciding whether to grant leave to transfer an ownership interest.

 

6)         The Board shall also consider whether granting leave to transfer an ownership interest in a terminal operator will result in undue economic concentration in the direct or indirect ownership, control or operation of video terminals in Illinois, as set forth in the Act and Section 1800.440.  In determining whether transfer of an ownership interest in a terminal operator will result in undue economic concentration, the Board shall consider the criteria found in Section 1800.440(c). The Board shall have the authority to place any restrictions or qualifications on the terms of a transfer of an ownership interest in a terminal operator that it deems necessary to prevent or eliminate undue economic concentration.

 

7)         If the Board denies a request to transfer an ownership interest of a licensed terminal operator, the Board shall issue a Notice of Denial and the denied person shall have the ability to contest the denial in accordance with Subpart G.  The denied person may request a hearing under Subpart F.

 

8)         Upon conclusion of disciplinary proceedings, the Board shall make a determination within the next two Board meetings on any request to transfer or sell ownership by a terminal operator.

 

9)         The Board shall make a determination on a request for leave to transfer an ownership interest of a terminal operator within 90 days after the date upon which the requesting party has provided full and complete disclosure to the Board of all material terms of the proposed transfer, including but not limited to all information required under subsections (a)(1), (2) and (3) and Section 1800.520; provided that, if the terminal operator involved in the proposed transfer has received a disciplinary complaint from the Board, the period for Board determination shall extend further to the date of the second Board meeting following conclusion of the disciplinary proceedings.

 

b)         Any information provided to the Board under this Section is strictly confidential and shall not be used for any purposes other than the analysis, evaluation and investigation carried out in connection with a request under this Section.

 

c)         Except for equipment, no video gaming asset, including the right to place video gaming terminals at a licensed establishment, held by a licensed terminal operator may be transferred or assigned to another licensed terminal operator without prior approval from the Administrator.

 

d)         The Administrator may deny the request of any terminal operator to transfer or assign a video gaming asset to another licensed terminal operator if the Administrator finds that the request is not in the best interest of gaming in the State.  The Administrator shall determine whether a request to transfer or assign a video gaming asset is in the best interest of gaming in the State after considering all relevant factors, including but not limited to:

 

1)         Undue economic concentration based upon the criteria found in Section 1800.440(c);

 

2)         The integrity of the State's video gaming industry; and

 

3)         The status of the licensees with the Board.

 

e)         If the Administrator denies a request to transfer or assign a video gaming asset under this Section, the Administrator shall notify the parties in writing.

 

f)         If the Administrator denies a request to transfer or assign a video gaming asset under this Section, the terminal operator may only transfer or assign the video gaming asset with leave from the Board.

 

(Source:  Added at 44 Ill. Reg. 10891, effective June 10, 2020)

 

Section 1800.350  Inducements

 

For the purposes of Board action, the following criteria regarding the provision of goods and services shall apply.

 

a)         For the purposes of this Section:

 

1)         "Terminal operator" means any licensed terminal operator, applicant for a terminal operator license, affiliated entities of the terminal operator, its owners, employees, agents, other persons of significant influence or control, or any immediate family members of such persons, or any third party, including sales agents, acting on behalf of or to the benefit of the terminal operator.

 

2)         "Video gaming location" means any licensed video gaming location as defined in Section 1800.110, any applicant to become a licensed video gaming location, any person who the terminal operator has reason to believe may apply to become a licensed video gaming location, and including the video gaming location's owners, employees, agents, persons of significant influence or control, or their immediate family members.

 

3)         "Immediate family" means spouse (other than a spouse who is legally separated from the individual under a decree of divorce or separate maintenance), parents, grandparents, siblings, children and grandchildren, step-children, whether by blood, marriage, or adoption.

 

b)         A terminal operator providing the following goods and services to a video gaming location, or payment for those goods and services, does not constitute a prohibited incentive or inducement under Section 25(c) of the Act:

 

1)         Video gaming terminals and any related items necessary to make the video gaming terminals operable at the video gaming location, including any wiring or rewiring, telephone lines, network connections, circuit boards, redemption devices, site controllers, or other like items specified by the video gaming terminal manufacturer, central communications system provider, or the Board. The cost of any service or hardware under this subsection (b)(1), other than video gaming equipment, shall not exceed $2,500 without prior written approval of the Administrator.

 

2)         Software upgrades, replacement parts, repairs, or other costs directly related to ongoing maintenance expenses of video gaming terminals.

 

3)         Video surveillance, alarms, ID scanners, or other security systems or devices required by this Part or intended to monitor or enhance the security and integrity of video gaming operations and the video gaming area of a licensed video gaming location, but not including the costs of permanent physical construction. The surveillance and alarms may include exterior entrances and exits to the video gaming location.  When surveillance, alarms, or other security systems cover both gaming and non-gaming areas of the video gaming location, this subsection (b)(3) only applies to the portion of the installation or ongoing costs and fees proportional to the video gaming area and exterior entrance and exit coverage.

 

4)         Bases, chairs, stools, tables, spacers, or other similar furniture designated for use at the video gaming terminals, and that are intended to remain in the video gaming area of the video gaming location.

 

5)         Assisting a video gaming location in preparing or filing applications or other documentation required by the Board, or advising a video gaming location on compliance with the Act and this Part, but not including paying any fee or cost on behalf of the video gaming location.

 

6)         Payment by a terminal operator on behalf of the video gaming establishment to a third party with subsequent reimbursement by the video gaming location, if all of the following conditions are met:

 

A)        There is an express written agreement or, in the absence of a written agreement, the payment is made pursuant to a lien or court order;

 

B)        The payment to the third party is:

 

i)          a shared cost of the terminal operator and the video gaming location otherwise permitted under the Act and this Part, including but not limited to the central communication service fee, fees or taxes required by state or local law or ordinance to be shared by the terminal operator and the video gaming location, shared security or surveillance fees, or shared promotional expenses;

 

ii)         the exclusive legal obligation of the video gaming location to a unit of local government and is directly and solely related to the operation of video gaming terminals; or

 

iii)        pursuant to a lien or court order; and

 

C)        The video gaming location reimburses the terminal operator either:

 

i)          through direct deduction from the video gaming location's share of net terminal income prior to disbursement of any revenue to the video gaming location; or

 

ii)         within 60 days.

 

7)         Promotional items, merchandise, or gifts other than food or beverage items, when the items meet all of the following:

 

A)        Each item has an actual cost of $5 or less;

 

B)        Each item prominently and exclusively displays the logo, brand, or other identifying mark of the terminal operator; and

 

C)        Each item is solely for distribution to patrons.

 

8)         Non-permanent exterior signage at the video gaming location including but not limited to banners, flags, wheeled, free standing, or otherwise portable or removable signs or displays subject to the following limitations:

 

A)        A concurrent maximum of 5 signs at a single video gaming location;

 

B)        Each sign costs no more than $300; and

 

C)        The signage shall not bear the name, logo or identifying mark of the video gaming location.

 

9)         Interior signage, display devices of any kind that relate directly and exclusively to the operation or promotion of video gaming terminals, including but not limited to:

 

A)        Problem gambling resources;

 

B)        Age restrictions;

 

C)        Directing patrons to the gaming area;

 

D)        Informing patrons as to the availability of functionality of video gaming terminals or individual games:

 

E)        Promoting the video gaming terminals;

 

F)         Promoting individual specific games;

 

G)        Promoting the terminal operator; or

 

H)        Any other information as directed by the Administrator.

 

10)         Anything provided through the procurement of terminal operator services to the Department of Agriculture to effectuate the State Fair Gaming Act [230 ILCS 50/30] when done in compliance with the Illinois Procurement Code.

 

c)         Provision of the following goods and services, or payment for those goods and services, by a terminal operator to a video gaming location shall be expressly prohibited:

 

1)         Permanent construction or signage unless permitted by Section 1800.350(b);

 

2)         Non-permanent signage at a video gaming location except as permitted by Section 1800.350(b);

 

3)         Food and beverage;

 

4)         Items for use in the conduct of the non-video gaming portions of the video gaming location's business, including but not limited to glassware, napkins, menus, or coasters, regardless of whether it displays the logo or brand name of the terminal operator;

 

5)         Free or promotional video gaming play, including match play, for distribution to patrons; and

 

6)         Conducting joint marketing, advertising, or promotional activities, except when the costs are equally split between the terminal operator and video gaming location.

 

d)         Unless expressly identified in subsection (b), provision of the following goods and services, or payment for those goods and services, by a terminal operator to a video gaming location creates a rebuttable presumption of a prohibited incentive or inducement under Section 25(c) of the Act:

 

1)         Direct monetary payment, other than distribution of a share of the after tax income of a video gaming location, from a video gaming terminal.

 

2)         Any loan or financing arrangement, regardless of the purpose of the loan or financing.

 

3)         Reimbursement or payment to any third party for a debt or obligation of the video gaming location, except as provided under subsection (b)(6).

 

4)         Total or partial payment or reimbursement of any tax or fee that is the legal obligation of the video gaming location, regardless of the source of the obligation, except as provided under subsection (b)(6).

 

5)         Providing free, reduced cost, or below fair market value goods or services, including but not limited to:

 

A)        Amusement devices when the video gaming location is receiving greater than 50% of the revenue from the device;

 

B)        ATM services when the video gaming location is receiving greater than 50% of the revenue from the device; or

 

C)        Real estate lease or rental agreements.

 

e)         In determining whether a payment or the provision of goods or services is a prohibited incentive or inducement, including for purposes of inferring the intent of the parties, the Board may consider all relevant factors, including but not limited to:

 

1)         The relationship, if any, between the goods or services and the operation or promotion of video gaming terminals at the video gaming location.

 

2)         Whether, and to what degree, costs of a good or service are proportionally shared between the parties.

 

3)         Whether, and to what degree, the benefits of a good or service are proportionally shared between the parties.

 

4)         The nature of the relationship between any individual or entity providing or receiving the goods, services, or reimbursement and the terminal operator or video gaming location.

 

5)         The fair market value of any goods or services, including but not limited to:

 

A)        Commission payments;

 

B)        Salaries to employees;

 

C)        Real estate leases or rental agreements;

 

D)        Amusement device revenue; or

 

E)        Other independent, arms-length contracts or transactions.

 

6)         Whether the specific behavior in question is in the public interest and the best interests of video gaming.

 

7)         Whether the specific behavior in question discredits or tends to discredit the integrity of video gaming in Illinois.

 

f)         Record Keeping

 

1)         A terminal operator shall maintain records of all goods and services it provides to any licensed video gaming location, including all costs of goods or services it shares with any licensed video gaming location. The terminal operator shall maintain these records for a minimum of three years. These records shall, at a minimum, include the following:

 

A)        Invoices;

 

B)        Estimates;

 

C)        Payments; and

 

D)        Requests for reimbursements.

 

2)         A terminal operator shall report to the Board, on no less than a quarterly basis, all goods, services, and shared costs it provides to any licensed video gaming location.

 

3)         Any video gaming location that receives a good or service from, or shares the cost of the good or service with, a terminal operator shall make good faith efforts to maintain all records of the goods, services, and shared costs for no less than three years. Records maintained by the video gaming location shall be independent of any records maintained by the terminal operator.

 

(Source:  Added at 45 Ill. Reg. 3424, effective March 8, 2021)

 

Section 1800.360  Terminal Operator Record Retention

 

a)         Each licensed terminal operator shall maintain, in a place secure from theft, loss or destruction, adequate records of business operations that shall be made available to the Board upon request. These records shall be held for at least as long as prescribed by the Records Retention Schedule periodically published by the Administrator, or longer if otherwise prescribed by general accounting and auditing procedures, litigation needs, or State or federal law. These records shall be maintained in a manner accessible to the Board or in a digital format prescribed by the Administrator.

 

b)         Each licensed terminal operator, in such manner and for such time period as the Administrator may approve or require, shall keep accurate, complete and legible records of any books, records or documents pertaining to, prepared in, or maintained by a licensed terminal operator, regardless of physical form, characteristics, or subject matter, including, but not limited to, all forms, reports, accounting records, ledgers, subsidiary records, computer maintained and generated data, internal audit records, copies of all promotional material, and advertising, correspondence and personnel records.

 

c)         All records shall be organized and indexed in a manner that provides prompt accessibility by agents of the Board upon request as soon as reasonably possible.

 

d)         No original book, record or document required to be maintained by this Section may be destroyed by a licensee prior to the scheduled retention date without prior approval of the Administrator.

 

e)         The Administrator shall publish and periodically update the Retention Schedule.

 

(Source:  Added at 45 Ill. Reg. 5375, effective April 12, 2021)

 

Section 1800.370  Deactivation of Video Gaming Terminals

 

a)         The Administrator will deactivate a licensed video gaming location's video gaming terminals if:

 

1)         The licensed video gaming location failed to timely pay a sum owed to the Board;

 

2)         The licensed video gaming location's State or local liquor license was suspended, revoked, or expired; or

 

3)         The licensed video gaming location failed to comply with a valid Board order.

 

b)         Before the Administrator may deactivate a licensed video gaming location's video gaming terminals, the Administrator shall provide written notice to the licensed video gaming location stating that the terminals may be deactivated and identifying the basis for the deactivation.  The deactivation notice shall be sent to all entities listed in the licensed video gaming location's license application no less than five days prior to the noticed deactivation.

 

c)         A licensed video gaming location may avoid deactivation by:

 

1)         Curing the basis for deactivation within five days of receiving the deactivation notice; or

 

2)         Establishing a prima facie case that the basis for deactivation is the result of an error or defect the licensed video gaming location did not cause.

 

d)         If the Administrator finds that the licensed video gaming location has failed to establish grounds to avoid deactivation under subsection (c), the Administrator will deactivate the licensed video gaming location's video gaming terminals.

 

e)         If a licensed video gaming location's video gaming terminals are deactivated, the licensee shall cure the basis for the deactivation and pay a reactivation fee before the video gaming terminals are reactivated.  The reactivation fee shall be the amount equal to the licensed video gaming location's annual license fee and shall be assessed per video gaming terminal.

 

1)         A licensed video gaming location is excused from paying the reactivation fee if it can establish by clear and convincing evidence that it did not cause the basis for the deactivation.

 

2)         The Administrator shall reactivate the video gaming terminals within five days after the licensed video gaming location has both cured the basis for the deactivation and paid the reactivation fee, if applicable.

 

f)         The Administrator may appoint an Administrative Law Judge if the Administrator determines that a hearing is warranted to determine whether the basis for the deactivation is the result of an error or defect the licensed video gaming location did not cause or whether the licensed video gaming location has cured the basis for deactivation.  If a hearing is commenced, it shall proceed under Subpart F.

 

1)         The sole issues at hearing shall be limited to whether the basis for deactivation is the result of an error or defect the licensed video gaming location did not cause or whether the licensee has cured the basis for the deactivation.

 

2)         The licensed video gaming location shall bear the burden of proof at all times and shall have the affirmative responsibility of establishing its case by clear and convincing evidence.

 

(Source:  Added at 48 Ill. Reg. 15438, effective October 18, 2024)

 

Section 1800.380  Advertising and Marketing

 

a)         Illinois Gaming Board Casino Rule 680 (86 Ill. Adm. Code 3000.680) shall apply to all advertising and marketing conducted by or on behalf of any applicant or licensee to promote its Illinois video gaming operations.  These rules do not apply to advertising or marketing solely to promote non-video gaming operations or directed solely at business-to-business solicitations not directed at patrons.

 

b)         Each terminal operator applicant or licensee shall retain, or otherwise preserve, a copy of all advertising and marketing materials intended to promote any video gaming operation in the State of Illinois, including a log of when and how those materials have been published, aired, displayed, or distributed, if not otherwise recorded pursuant to Section 1800.350(f). These materials and logs shall be retained in accordance with the retention schedule prescribed by the Board.

 

c)         Each terminal operator applicant or licensee and each licensed video gaming location shall be responsible for the advertising or marketing done on its behalf pursuant to an agreement whether conducted by the terminal operator applicant or the licensee, the licensed video gaming location an employee, an agent, an affiliated entity or a third party.

 

(Source:  Added at 49 Ill. Reg. 9989, effective July 17, 2025)

 

Section 1800.410  Coverage of Subpart

 

The rules contained in this Subpart shall govern qualifications for all types of licenses issued by the Board pursuant to the Act.

 

Section 1800.420  Qualifications for Licensure

 

a)        In addition to the qualifications required in the Act, the Board may not grant any video gaming license until the Board is satisfied that the applicant has disclosed all persons with significant influence or control over the applicant or licensee and is:

 

1)         A person of good character, honesty and integrity;

 

2)         A person whose background, including criminal record, reputation and associations, is not injurious to the public health, safety, morals, good order and general welfare of the people of the State of Illinois;

 

3)         A person whose background, including criminal record, reputation and associations, does not discredit or tend to discredit the Illinois gaming industry or the State of Illinois;

 

4)         A person whose background, including criminal record, reputation, habits, social or business associations does not adversely affect public confidence and trust in gaming or pose a threat to the public interests of the State or to the security and integrity of video gaming;

 

5)         A person who does not create or enhance the dangers of unsuitable, unfair or illegal practices, methods and activities in the conduct of video gaming;

 

6)         A person who does not present questionable business practices and financial arrangements incidental to the conduct of video gaming activities or otherwise;

 

7)         A person who, either individually or through employees, demonstrates business ability and experience to establish, operate and maintain a business for the type of license for which application is made;

 

8)         A person who does not associate with, either socially or in business affairs, or employ persons of notorious or unsavory reputation or who have extensive police records, or who have failed to cooperate with any officially constituted investigatory or administrative body; and

 

9)         A person who has not had a gaming license revoked in any other jurisdiction.

 

b)         In considering applications for licenses issued under the Act, the Board shall apply the same criteria as set forth in Section 9 of the Illinois Gambling Act [230 ILCS 10]. If the applicant is not an individual, the Board may not license an applicant until it is satisfied that the applicant's owners and persons of significant interest or control are licensable using the same criteria as set forth in Seciton 9 of the Illinois Gambling Act.

 

c)         In addition to all other qualifications required in the Act and this Part, the Board may not grant a video terminal operator license until the Board is satisfied that the applicant is a person who demonstrates adequate financing for the business proposed.  The Board shall consider whether any financing is from a source that meets the qualifications in subsection (a) and is in an amount sufficient to ensure the likelihood of success in the performance of the licensee's duties and responsibilities under the Act and this Part.

 

d)         Past Participation in Video Gaming

 

1)         The Board shall not grant a license to a person who has facilitated, enabled or participated in the use of coin-operated amusement devices for gambling purposes on or after December 16, 2009, or who is under the significant influence or control of such a person.

 

2)         The Board has discretion not to grant a license to a person who, before December 16, 2009, has facilitated, enabled or participated in the use of coin-operated amusement devices for gambling purposes, or who is under the significant influence or control of such a person.

 

e)         The Board shall have discretion to deny a license application on the basis that one of the following persons has placed himself or herself on the Self-Exclusion List established by 86 Ill. Adm. Code 3000.750:

 

1)         The applicant;

 

2)         A person with significant influence or control over the applicant;

 

3)         A person with an ownership interest in the applicant of 5% or more; or

 

4)         A person involved in the operation or management of the applicant's business related to video gaming.

 

(Source:  Amended at 44 Ill. Reg. 489, effective December 27, 2019)

 

Section 1800.430  Persons with Significant Influence or Control

 

a)         The Administrator shall identify each person that holds a position or level of influence over or control in each applicant or licensee that is significant to the regulatory concerns and obligations of the Board for the specified applicant or licensee.

 

b)         Each person identified as a person with significant influence or control shall comply with the following:

 

1)         Cooperate fully with any investigation conducted by or on behalf of the Board;

 

2)         Comply with the Act and this Part; and

 

3)         Submit initial and annual disclosure information on forms provided by the Board.

 

c)         An owner or person with significant influence or control of a terminal operator shall not play any video gaming terminal owned or leased by the terminal operator at any operating licensed location for recreational purposes.

 

d)         Persons with significant influence or control include, but are not limited, to the following:

 

1)         Each person in whose name the liquor license is maintained for each licensed video gaming location;

 

2)         Each person directly owning an applicant or licensee;

 

3)         Each person who holds an indirect ownership interest of at least 5 percent in an applicant or licensee;

 

4)         Each person who, in the opinion of the Administrator, has the ability to influence or control the activities of the applicant or licensee or elect a majority of its board of directors, other than a bank or other licensed lending institution that holds a mortgage or other lien, or any other source of funds, acquired in the ordinary course of business;

 

5)         Persons having the power to exercise significant influence or control over decisions concerning any part of the applicant's or licensee's video gaming operation;

 

6)         Any person or business entity receiving any net terminal income pursuant to a contractual agreement;

 

7)         Any person or business entity holding an option agreement to acquire an equity stake in a terminal operator licensee;

 

8)         Any person employed or designated by a terminal operator as a progressive jackpot coordinator.

 

e)         The prohibition against gaming by persons with significant influence or control in a licensed nonprofit establishment, licensed fraternal establishment or licensed veterans establishment does not apply unless the person with significant influence or control directly manages the establishment's video gaming operation.

 

(Source:  Amended at 44 Ill. Reg. 3205, effective February 7, 2020)

 

Section 1800.440  Undue Economic Concentration

 

a)         In addition to considering all other requirements under the Act and this Part, the Board shall consider, in deciding whether to issue or renew a terminal operator license, whether the issuance or renewal will result in undue economic concentration.  No terminal operator license shall be issued or renewed if the Board determines that the issuance or renewal will result in undue economic concentration in the direct or indirect ownership, control or operation of video gaming terminals in Illinois.

 

b)         For purposes of this Section, "undue economic concentration" means that an individual or entity, independently or in coordination or aligned combination with one or more individuals or entities, would have such actual or potential domination of video gaming in Illinois as to:

 

1)         substantially impede or suppress competition among holders of terminal  operator licenses;

 

2)         adversely impact the economic stability of the video gaming industry in Illinois; or

 

3)         negatively impact the purposes of the Act, including collection of State and local government revenues and development of the video gaming industry in Illinois.

 

c)         In determining whether the issuance or renewal of a terminal operator license will result in undue economic concentration, the Board shall consider the following criteria: 

 

1)         The percentage share of the market presently owned or controlled by the applicant or licensee in each of the following categories:

 

A)        number of licensed video gaming locations in Illinois;

 

B)        number of video gaming terminals in Illinois;

 

C)        total net terminal income; and

 

D)        total amount wagered.

 

2)         The relative position of other individuals or entities that own or control terminal operator licenses in Illinois, as evidenced by the market shares of each terminal operator license in the categories in subsection (c)(1).

 

3)         The current and projected financial condition of the video gaming industry.

 

4)         Current market conditions, including proximity and level of competition, consumer demand, market concentration, and any other relevant characteristics of the market.

 

5)         Whether the terminal operator licensee or applicant has a common or related organizational or financial structure, or common or related assets, obligations, or ownership with other licensees.

 

6)         The potential impact on the projected future growth and development of the video gaming industry, the local communities in which licenses are located, and the State of Illinois.

 

7)         The barriers to entry into the video gaming industry, including the licensure requirements of the Act and this Part, and whether the issuance or renewal of a terminal operator license will operate as a barrier to new entities and individuals desiring to enter the market as terminal operators or in any of the other licensed categories under the Act.

 

8)         Whether the issuance or renewal of the terminal operator license will adversely affect consumer interests, or whether that issuance or renewal is likely to result in enhancing the quality and customer appeal of products and services offered by terminal operators and other licensees under the Act in order to maintain or increase their respective market shares.

 

9)         Whether a restriction or denial of the issuance or renewal of a terminal operator license is necessary in order to encourage and preserve competition in video gaming operations.

 

10)       The current and projected financial condition of the terminal operator.

 

11)       Any other information deemed relevant by the Board.

 

d)         The Board has authority to place any restrictions or qualifications on the terms of a terminal operator license that it deems necessary to prevent or eliminate undue economic concentration, including, but not limited to, setting a limit on the maximum amount of use agreements a terminal operator may have.  Any terminal operator licensee shall have the ability to contest a Board order under this subsection in accordance with Subpart G.  Any hearing concerning such an order shall be limited to the reasonableness of the restrictions or qualifications placed on the terminal operator license to avert undue economic concentration.

 

(Source:  Added at 40 Ill. Reg. 12762, effective August 19, 2016)

 

 

Section 1800.510  Coverage of Subpart

 

The rules contained in this Subpart shall govern procedures for applying for, renewing and maintaining all types of licenses issued by the Board pursuant to the Act.

 

Section 1800.520  Applications

 

a)         Applications for licensure or renewal shall be submitted on applications and forms provided by the Board.

 

b)         An applicant or its affiliate may be required to submit forms or materials in addition to an application as required by subsection (a).

 

c)         Institutional Investor

 

1)         A business entity that qualifies as an institutional investor may submit a Video Gaming Institutional Investor Disclosure Form in lieu of a Video Gaming Business Entity Disclosure Form as instructed in an application if the institutional investor:

 

A)        submits a Video Gaming Institutional Investor Disclosure Form to the Illinois Gaming Board within 45 days after the institutional investor individually or jointly with others cumulatively acquires, directly or indirectly, 5% or more but less than 20% of any class of publicly traded securities issued by a corporate applicant, licensee, parent or subsidiary company of an applicant or licensee;

 

B)        holds or controls the publicly traded securities issued by a corporate applicant, licensee, parent or subsidiary company of an applicant or licensee in the ordinary course of business for investment purposes only; and

 

C)        does not exercise or intend to exercise influence or control over the affairs of the issuer of the publicly traded securities issued by a corporate applicant, licensee, parent or subsidiary company of an applicant or licensee or their affiliates. 

 

2)         An institutional investor's exercise in voting privileges on matters put to  the vote of the outstanding security holders shall not be deemed the exercise or intent to exercise influence or control over the affairs of the issuer of those securities.

 

3)         If an institutional investor exempt from filing a Video Gaming Business Entity Disclosure Form as allowed in this subsection (c) subsequently determines to exercise influence or control over the affairs of the issuer of the publicly traded securities issued by a corporate applicant, licensee, parent or subsidiary company of an applicant or licensee or their affiliates, the institutional investor shall provide not less than 30 days notice of the intent and shall file with the Illinois Gaming Board a Video Gaming Business Entity Disclosure Form before taking any action that may influence or control the affairs of the issuer of those securities or their affiliates.

 

4)         The Video Gaming Institutional Investor Disclosure Form shall not be construed to preclude the Illinois Gaming Board from requiring an institutional investor to submit a Video Gaming Business Entity Disclosure Form if the Illinois Gaming Board determines that the submission is proper and in furtherance of the Act and this Part.

 

5)         An institutional investor exempt from filing a Video Gaming Business Entity Disclosure Form as allowed in this subsection (c) shall certify in writing to be bound by and comply with the Video Gaming Act and this Part.

 

d)         Application Procedures

 

1)         An applicant is seeking a privilege and assumes and accepts any and all risk of adverse publicity, notoriety, embarrassment, criticism or other action, or financial loss that may occur in connection with the application process.

 

2)         Any misrepresentation or omission made with respect to an application may be grounds for denial of the application.

 

3)         Applications, forms, and requested materials shall be submitted in triplicate and as required by the applications and instructions.

 

4)         Individuals required to submit Video Gaming Personal Disclosure Forms, individuals with 5% or more direct or indirect interest in a licensed video gaming location, managers of a licensed video gaming location, and licensed technician or licensed terminal handler applicants shall be photographed and fingerprinted at a place and time designated by the Administrator.

 

5)         An application shall be deemed filed when the completed application form, including all required documents and materials, and the application fee have been submitted.

 

e)         Amendments and Incorporation by Reference

 

1)         An application may be amended with approval by the Administrator.

 

2)         The Administrator may allow information, documents, or other materials submitted by an applicant to be incorporated by reference into a subsequent application.

 

(Source:  Amended at 36 Ill. Reg. 18550, effective December 14, 2012)

 

Section 1800.530  Submission of Application

 

All applications shall be submitted to the Board at its office in Chicago (160 N. LaSalle St., Chicago IL 60601) or, when the option is available, through the Board's online application submission portal accessible through the Board's website (https://www.igb.illinois.gov).

 

(Source:  Amended at 47 Ill. Reg. 2682, effective February 10, 2023)

 

Section 1800.540  Application Fees

 

All applicants for a license issued by the Board shall pay the application fees under Section 45(f) of the Act.

 

(Source:  Amended at 47 Ill. Reg. 2682, effective February 10, 2023)

 

Section 1800.550  Consideration of Applications by the Board

 

Only complete applications will be considered for licensure.  Applications are complete when the applicant has submitted:

 

a)         All information required by the Act and this Part;

 

b)         All information required or requested by the Board; and

 

c)         Payment of the application fee.

 

Section 1800.555  Withdrawal of Applications and Surrender of Licenses

 

a)         An application for licensure under the Act may be withdrawn without leave of the Board if written notification of withdrawal is received prior to Board action on licensure under Section 1800.560 and unless the intended withdrawal is objected to by the Administrator.

 

b)         A license granted by the Board under the Act may be surrendered without leave of the Board if written notification of surrender is received, unless the intended surrender is objected to by the Administrator.

 

c)         If the Administrator objects to withdrawal of an application for licensure or the surrender of a license issued under the Act, leave of the Board is required.

 

d)         If an application for licensure is withdrawn or a license is surrendered, the applicant may not reapply for a license within one year from the date withdrawal is granted or the date of surrender, without leave of the Board. 

 

(Source:  Amended at 40 Ill. Reg. 8760, effective June 14, 2016)

 

Section 1800.560  Issuance of License

 

a)         The Board may only issue a license after the background investigation is complete, the Board determines the applicant is suitable for licensure and the applicant has paid the required application fee.

 

b)         If an applicant is denied a license, the applicant may not reapply for a license within one year from the date on which the final order of denial was voted upon by the Board, without leave of the Board.

 

(Source:  Amended at 37 Ill. Reg. 7750, effective May 23, 2013)

 

Section 1800.570  Renewal of License

 

a)         The Board may only renew a license upon receipt of the annual fee (see Section 45(g) of the Act) and any renewal forms provided by the Board.

 

b)         The Board may only renew a license if the licensee continues to meet all qualifications for licensure set forth in the Act and this Part.  Renewal of a license is not a ruling on the merits of any currently pending or future disciplinary action.

 

c)         A license shall expire if the annual fee is not received by the Board prior to the expiration of the license.

 

d)         A licensee whose license is not renewed by its renewal date, including but not limited to a licensee contesting a notice of nonrenewal or revocation of the license, shall still pay its annual fee each year.  Failure to pay the scheduled annual fee shall cause the license to expire.

 

e)         If a video gaming location license, technician license, terminal handler license or sales agent and broker license has expired due to the non-payment of the annual fee, and the Board receives the licensee's annual fee within 10 business days following expiration of the license, the Board may renew the license without requiring reapplication provided the licensee continues to meet all qualifications for licensure set forth in the Act and this Part.  Nothing in this Section shall be construed to provide a defense to any Board-issued discipline.

 

(Source:  Amended at 47 Ill. Reg. 2682, effective February 10, 2023)

 

Section 1800.580  Annual Fees

 

For the purpose of defraying regulatory costs related to licensure, the annual fee shall be the maximum permitted by Section 45(g) of the Act.

 

(Source:  Amended at 45 Ill. Reg. 3424, effective March 8, 2021)

 

Section 1800.590  Death and Change of Ownership of Video Gaming Licensee

 

a)         Licenses granted by the Board do not constitute property, shall not be subject to attachment, and shall not be alienable or transferable.  Licenses granted by the Board shall not descend by the laws of testate or intestate devolution, but shall cease upon the death of the licensee, provided that executors or administrators of the estate of any deceased licensee, and the trustee of any insolvent or bankrupt licensee, may continue the video gaming location operation under order of the appropriate court and the approval of the Administrator of the Illinois Gaming Board, and may exercise the privileges of the deceased or insolvent or bankrupt licensee after the death or the decent, or the insolvency or bankruptcy until the expiration of the license, but no longer than six months after the death, bankruptcy or insolvency of the licensee.  Approval of the Administrator to continue the video gaming location operation may only be granted following the approval of a designated video gaming manager for the video gaming location. 

 

b)         Change of Ownership of Licensed Video Gaming Location

 

1)         In addition to the disclosure requirements set forth in Section 1800.210(c) and (i), each video gaming location licensee shall notify the Board in writing prior to a proposed sale or transfer of a licensed video gaming location. 

 

2)         When a licensed video gaming location is sold or transferred, the video gaming terminals may be allowed to continue to operate under the old license if:

 

A)        the new owner has submitted all required and applicable application materials for a new or amended video gaming location license application, and included copies of all sale or transfer documentation;

 

B)        the new owner has completed the required criminal record check via fingerprint examination;

 

C)        the new owner is issued all required liquor licenses to draw, pour, mix or otherwise serve alcohol for consumption on the premises; and

 

D)        the selling or transferring license holder agrees to be bound to all obligations and duties imposed upon it for operating a licensed video gaming location by the Act and this Part until the Board approves the sale or transfer and until the consummation of the closing of the sale or transfer. 

 

3)         When a licensed video gaming location is sold or transferred, the video gaming terminals may be allowed to continue to operate under the old license only until:

 

A)        The issuance of a video gaming location license in the name of the new owner;

 

B)        A determination by the Board that the new applicant, new owner and/or new person with significant interest or control is unsuitable; or

 

C)        Denial of the new license application. 

 

(Source:  Added at 37 Ill. Reg. 7750, effective May 23, 2013)

 

Section 1800.595  Temporary Identification Badge

 

The Administrator may issue a temporary identification badge to an applicant for a terminal handler, technician, or sales agent and broker license. The holder of a temporary identification badge of any type may perform duties as a holder of a license of the same type. The holder of a temporary identification badge is subject to the same duties and obligations as a holder of a license of the same type.

 

a)         To qualify for a temporary identification badge, an applicant must have already submitted an application that has been deemed complete by the Administrator, including fingerprints and a photograph.

 

b)         In determining whether to grant a temporary identification badge, the Administrator shall consider any relevant factor, including but not limited to:

 

1)         Facts that suggest an applicant may not be suitable for licensure under the Act and this Part; and

 

2)         Any past or pending disciplinary action against the applicant in any gaming jurisdiction.

 

c)         Temporary identification badges are valid for one year from the date of the application unless rescinded or extended by the Administrator.

 

d)         A temporary identification badge is not transferable and upon rescission must be returned by the applicant to the Board within 30 days, or if employed by a licensed terminal operator, to that terminal operator. A licensed terminal operator shall return any rescinded badge to the Board within 21 days of receipt of that badge.

 

e)         The Administrator may rescind a temporary identification badge at any time for any just cause, including, but not limited to, the factors identified in Sections 1800.310 and 1800.420, and in subsection (b) of this Section.

 

f)         Rescission of a temporary identification badge by the Administrator is not a final ruling on the merits of an application.

 

g)         A temporary identification badge shall be rescinded upon issuance of a Notice of Denial of Application.

 

(Source:  Added at 47 Ill. Reg. 2682, effective February 10, 2023)

 

Section 1800.610  Coverage of Subpart

 

The rules contained in this Subpart shall govern all hearings requested upon issuance of a notice of denial of an application for licensure.  Hearings under this Subpart are de novo proceedings for the creation of a record regarding an applicant's suitability for licensure.  A hearing under this Subpart is not an appeal of Board action.

 

Section 1800.615  Requests for Hearing

 

a)         If the Board finds that an applicant is not suitable for licensure, it shall issue the applicant a notice of denial.

 

b)         The Board shall serve notice on the applicant by e-mail pursuant to Section 1800.140, personal service, or U.S. certified mail to the last known address of the applicant.  Service is complete upon transmission of the e-mail or four days after mailing.

 

c)         Should an applicant wish to contest the action the Board has taken regarding an application, the applicant must submit a request for hearing to the Board.

 

d)         All requests for hearing shall be in writing.  If a request for hearing is mailed, it shall include an original and one copy.  The request shall contain the following:

 

1)         The name, current address and current telephone number of the petitioner (the applicant);

 

2)         Detailed reasons why and the facts upon which the petitioner will rely to show that the petitioner is suitable for licensure, including specific responses to any facts enumerated in the Board's notice of denial;

 

3)         A signature of the petitioner;

 

4)         A verification of the petition in the following form:

 

"The undersigned certifies that the statements set forth in this request are true and correct, except as to matters therein stated to be on information and belief.  As to such matters, the undersigned certifies as aforesaid that he/she verily believes the same to be true."; and

 

5)         The request must be notarized.

 

e)          A request for hearing must be made within 10 days after receipt of notice of denial from the Board.  A request shall be deemed filed on the date the e-mail was transmitted or on which it is postmarked.

 

f)          If a request for hearing is not filed within 10 days after the receipt of notice from the Board, then the notice of denial becomes the final order of the Board denying the applicant's license application.

 

g)         A request for hearing shall be deemed granted unless denied.  The Board may deny a request for hearing if the statement of the reasons and facts that it contains does not establish a prima facie case or fails to comply with any of the other requirements of this Section.  The Board's denial of a request for hearing is a final decision and the denial of licensure becomes a final order on the date the Board denies the request for hearing.

 

h)         A request for hearing may not be withdrawn or voluntarily dismissed if the Board determines that withdrawal or voluntary dismissal is not in the best interests of the public and the video gaming industry.  If the Board allows a petitioner to withdraw a hearing request, the initial notice of denial becomes a final Board order on the date leave to withdraw is granted.  If the petitioner does not prosecute his/her case after 21 days, the Board may move for entry of default judgment.  Failure to prosecute shall result in entry of default judgment against the petitioner.

 

i)          The petitioner may submit a request for hearing by:

 

1)         personal delivery;

 

2)         certified mail, postage prepaid;

 

3)         overnight express mail, postage prepaid; or

 

4)         e-mail to an e-mail address specified in the notice of denial.

 

j)          All requests for hearing must be submitted to the Administrator at the Board's offices in Chicago.

 

k)         If a request is granted, an Administrative Law Judge will be appointed to conduct a hearing.

 

(Source:  Amended at 44 Ill. Reg. 16454, effective September 25, 2020)

 

Section 1800.620  Appearances

 

a)         All petitioners may be represented by an attorney who is licensed to practice in Illinois.  All attorneys who appear in a representative capacity on behalf of a petitioner must file a written appearance setting forth:

 

            1)         The name, address and telephone number of the attorney;

 

            2)         The name and address of the petitioner the attorney represents; and

 

            3)         An affirmative statement that the attorney is licensed to practice in Illinois.

 

b)         Only individual attorneys may file appearances.  Any petitioner's attorney who has not filed an appearance may not address the Administrative Law Judge or sign pleadings.

 

c)         An attorney may only withdraw his appearance upon written notice to the Administrative Law Judge.

 

d)         An individual may appear on his own behalf.

 

e)         A partner may appear on behalf of a partnership.

 

f)         A corporation and a limited liability company must be represented by an attorney.

 

Section 1800.625  Appointment of Administrative Law Judge

 

a)         The Chairman of the Board may provide for or appoint a Board member or an attorney admitted to the practice of law by, and in good standing with, the Illinois Supreme Court as an Administrative Law Judge to conduct a hearing in accordance with this Subpart.  If designated, the Administrator may provide for the appointment of  an Administrative Law Judge to conduct a hearing in accordance with this Subpart.  The petitioner will be copied on the letter of appointment and the letter will serve as notice of the pendency of the hearing.  The Administrative Law Judge shall establish a status date and notify the parties of that date.

 

b)         If the petitioner believes the Administrative Law Judge is biased or has a conflict of interest, the petitioner may file with the Board a motion to disqualify the Administrative Law Judge from conducting the hearing.  The motion must be in writing, accompanied by an affidavit signed and dated by the petitioner setting forth the specific grounds for disqualification.  The petitioner shall serve a copy of the motion on the Administrative Law Judge.  Prior adverse rulings against the petitioner or its attorney in other matters shall not, in and of themselves, constitute grounds for disqualification.  On satisfactory evidence submitted by the petitioner in support of the motion to disqualify, the Board shall remove the Administrative Law Judge and provide for the reassignment of the case to another Administrative Law Judge to continue the hearing.  Any Administrative Law Judge may voluntarily disqualify himself upon determining that bias or conflict of interest exists.  Grounds for disqualification of Administrative Law Judge shall include but not be limited to:

 

1)         Financial interest or pecuniary benefit derived from the gaming industry;

 

2)         Personal friendship with any of the parties, witnesses or attorneys involved;

 

3)         Past representation of any of the parties or witnesses involved; or

 

4)         Demonstrable pre-disposition on the issues.

 

c)         If the motion to disqualify an Administrative Law Judge is denied, the Board shall set forth in writing the reasons for the denial and the Administrative Law Judge will proceed with the hearing.  The motion to disqualify the Administrative Law Judge and the reasons for the denial of the motion will be part of the administrative record in the appeal of a final administrative decision upon conclusion of the hearing.

 

Section 1800.630  Discovery

 

a)         Upon written request served on the opposing party, a party shall be entitled to:

 

1)         The name and address of any witness who may be reasonably expected to testify on behalf of the opposing party;

 

2)         All documents or other materials in the possession or control of the opposing party that the opposing party reasonably expects will be necessary to introduce into evidence.  Petitioner's burden of production includes those documents petitioner reasonably expects to introduce into evidence either in his, her or its case-in-chief or in rebuttal.  Rebuttal documents, to the extent that they are not immediately identifiable, shall be tendered to the Board within 14 days after receipt of documents tendered to petitioner by the Board unless additional time is granted by the Administrative Law Judge.

 

b)         Discovery may be obtained only through written requests to produce witness lists, documents or other materials, as specified in subsection (a) of this Section.  Witnesses and documents responsive to a proper request for production that were not produced shall be excluded from the hearing and additional sanctions or penalties may be imposed.

 

Section 1800.635  Subpoenas

 

a)         Subpoenas for the attendance of witnesses at hearing may be served by the petitioner only upon application to the Administrative Law Judge.

 

1)         The petitioner must show good cause, state the testimony to be elicited from a witness, state why the evidence to which the testimony relates cannot otherwise be obtained, and state the reasons why the testimony is necessary and relevant.

 

2)         An agent or employee of the Board may not be required by the petitioner to appear except under the procedures provided in this Section.

 

b)         The General Counsel of the Board or the Administrator may issue subpoenas for the attendance of witnesses or subpoenas duces tecum for the production of relevant documents, records or other material at a proceeding conducted under this Subpart F.

 

Section 1800.640  Motions for Summary Judgment

 

The Administrative Law Judge may recommend the granting or denial of a summary judgment motion upon the filing of an appropriate motion by any party.  A recommendation for denial of a summary judgment motion shall not be considered by the Board until the completion of the proceedings pursuant to Section 1800.650.

 

Section 1800.650  Proceedings

 

a)         The burden of proof is at all times on the petitioner.  The petitioner shall have the affirmative responsibility of establishing by clear and convincing evidence that the petitioner is suitable for licensing or that enforcement of a security interest is warranted. 

 

b)         All testimony shall be given under oath or affirmation.

 

c)         Both parties may present opening statements.  Petitioner proceeds first.

 

d)         The petitioner shall then present his, her or its case-in-chief.

 

e)         Upon the conclusion of the petitioner's case-in chief, the Board may move for a directed finding.  The Administrative Law Judge may hear arguments on the motion or may grant, deny or reserve decision, without argument.

 

f)         If no motion for directed finding is made, or if the motion is denied or decision reserved, the Board may present its case.

 

g)         Each party may conduct cross-examination of adverse witnesses.

 

h)         Upon the conclusion of the Board's case, the petitioner may present evidence in rebuttal.

 

i)          Both parties may present closing arguments.  The petitioner proceeds first, then the Board, and thereafter the petitioner may present rebuttal argument.

 

(Source:  Amended at 35 Ill. Reg. 1369, effective January 5, 2011)

 

Section 1800.660  Evidence

 

a)         The hearing need not be conducted according to the technical rules of evidence.  Any relevant evidence may be admitted and shall be sufficient in itself to support a finding if it is the sort of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statute that might make improper the admission of evidence over objection in a civil action.  Hearsay may support a finding of the Administrative Law Judge if it is the best evidence available, has sufficient indicia of trustworthiness and reliability and is of the type reasonably and customarily relied on in the video gaming industry.

 

1)         If relevant and not precluded from the hearing by Section 6(d) of the Riverboat Gambling Act relating to all licensed applicants, official Illinois Gaming Board records or certified copies of the records shall be admissible into evidence;

 

2)         Official Illinois Gaming Board records are documents either prepared by or provided to the Board for the purpose of conducting its regular business;

 

3)         A petitioner must afford the Board an opportunity to investigate and verify information that petitioner intends to offer in support of his case.  Petitioner shall not be permitted to introduce into evidence any information that the Board has not been afforded the opportunity to investigate and verify.

 

b)         The parties should, to the fullest extent possible, stipulate to all matters that are not or fairly should not be in dispute.

 

c)         The parties may make objections to evidentiary offers.  When an objection is made, the Administrative Law Judge may receive the disputed evidence subject to a ruling at a later time.

 

d)         The Administrative Law Judge may take official notice of any generally accepted information or technical or scientific matter within the field of video gaming, and any other fact that may be judicially noticed by courts of this State.  The parties shall be informed of any information, matter or facts so noticed, including any staff memoranda or data, and shall be given reasonable opportunity to refute that information.

 

Section 1800.670  Prohibition on Ex Parte Communication

 

No party or its representative shall communicate directly or indirectly with the Administrative Law Judge or a member of the Illinois Gaming Board regarding any pending denial, except upon notice to and opportunity for all parties to participate.

 

Section 1800.680  Sanctions and Penalties

 

a)         The Administrative Law Judge may impose sanctions and penalties if the Administrative Law Judge finds that a party has acted in bad faith, for the purpose of delay, or has otherwise abused the hearing process.  Sanctions and penalties include but are not limited to default judgment or directed finding on one or more issues.

 

b)         If a petitioner fails to testify on his own behalf with respect to any question propounded to him, the Administrative Law Judge may infer that such testimony or answer would have been adverse to the petitioner's case.

 

c)         Failure of a petitioner to appear at a hearing or scheduled proceeding shall constitute an admission of all matters and facts contained in the notice of denial.  In such cases the Administrative Law Judge may take action based upon that admission or upon any other evidence, including affidavits, without any further notice to the petitioner.

 

Section 1800.690  Transmittal of Record and Recommendation to the Board

 

a)         The record shall consist of the following:

 

1)         The notice of denial, the request for hearing and all motions and rulings;

 

2)         All evidence received;

 

3)         A statement of matters officially noticed;

 

4)         Offers of proof, objections and rulings; and

 

5)         The recommendation and any findings of fact and conclusions of law made by the Administrative Law Judge.

 

b)         Oral proceedings or any part of the proceedings involving contested issues shall be recorded stenographically or by such other means as to adequately insure the preservation of the testimony or oral proceedings and shall be transcribed on request of any party.  The transcript shall be paid for by the requesting party.

 

c)         Upon conclusion of the hearing, the Administrative Law Judge shall issue to the Board written findings of fact and conclusions of law and his/her recommendations.  Findings of fact shall be based exclusively on the evidence and on matters officially noticed.

 

d)         Any party to the hearing may file exceptions to the recommendations of the Administrative Law Judge with the Board no later than 14 days after receipt of the recommended decision.  Exceptions shall specify each finding of fact and conclusion of law to which exception is taken.  There shall be no oral argument on exceptions.

 

e)         Final Board Order

 

1)         The Board shall review the entire record, including any exceptions filed, and shall render a written order including the bases for its decision.

 

2)         Copies of the final Board order shall be served on petitioner by e-mail in accordance with Section 1800.140, personal delivery, certified mail or overnight express mail to petitioner's last known address. 

 

3)         A final Board order shall become effective upon transmission of the e-mail, personal delivery to a party, or upon posting by certified or overnight express mail to petitioner's last known address.

 

(Source:  Amended at 44 Ill. Reg. 16454, effective September 25, 2020)

 

Section 1800.695  Status of Applicant for Licensure Upon Filing Request for Hearing

 

An applicant who has been denied a license and who has requested a hearing under this Subpart shall be considered an applicant for purposes of compliance with applicable statutory provisions and this Part until final resolution of the request for hearing.

 

Section 1800.710  Coverage of Subpart

 

The rules contained in this Subpart shall govern all disciplinary actions against licensees including, but not limited to, suspension and revocation of a license. For purposes of this Subpart, "disciplinary actions" shall include orders of economic disassociation under Section 1800.330.

 

(Source:  Amended at 40 Ill. Reg. 2952, effective January 27, 2016)

 

Section 1800.715  Notice of Proposed Disciplinary Action Against Licensees

 

a)         When notified of facts sufficient to support disciplinary action against a licensee or a person with significant influence or control, the Administrator shall immediately notify the Board and the licensee of the proposed disciplinary action.  The notice shall advise the licensee of the following:

 

1)         A statement of the facts supporting the proposed disciplinary action;

 

2)         A description of the rule or statutory section the licensee has violated;

 

3)         A statement or description of the matters asserted and the consequences of the failure to respond; and

 

4)         The name and mailing address of the Illinois Gaming Board.

 

b)         The Administrator shall serve the notice of proposed disciplinary action on the licensee by e-mail in accordance with Section 1800.140, personal service, or U.S. certified mail or U.S. regular mail to the last known address of the licensee.  Service is complete upon transmission of the e-mail, or four days after mailing.

 

(Source:  Amended at 44 Ill. Reg. 16454, effective September 25, 2020)

 

Section 1800.720  Hearings in Disciplinary Actions

 

a)         Should a licensee wish to contest the proposed disciplinary action, the licensee must submit a response to the notice of proposed disciplinary action described in Section 1800.715 to the Administrator.

 

b)         All responses shall be in writing.  If a response is mailed, it shall include an original and one copy.  The response shall contain the following:

 

1)         The name, current address and current telephone number of the licensee;

 

2)         A clear and concise statement admitting or denying each of the factual allegations set forth in the notice of proposed disciplinary action, with each admission or denial being shown in separately numbered paragraphs corresponding to the separately numbered paragraphs in the notice of proposed disciplinary action;

 

3)         For all factual allegations that the licensee denies, a clear and concise statement of facts upon which the licensee relies or will rely on at a hearing;

 

4)         A signature of the licensee;

 

5)         A verification of the licensee in the following form:

 

"The undersigned certifies that the statements set forth in this request are true and correct, except as to matters therein stated to be on information and belief.  As to such matters the undersigned certifies as aforesaid that he or she verily believes the same to be true."; and

 

6)         The response must be notarized.

 

c)         The response must be filed within 21 days after receipt of the notice of proposed disciplinary action.  A response shall be deemed filed on the date the e-mail is transmitted or on which it is postmarked.

 

d)         If a response is not filed within 21 days after receipt of the notice of proposed disciplinary action, then the proposed disciplinary action becomes effective and final immediately.

 

e)         No response shall be deemed filed if it fails to comply with any of the requirements of this Section.

 

f)         The licensee may submit a response by:

 

1)         personal delivery;

 

2)         certified mail, postage prepaid;

 

3)         overnight express mail, postage prepaid; or

 

4)         e-mail to an e-mail address specified in the notice of proposed disciplinary action.

 

g)         All responses must be submitted to the Administrator at the Board's offices in Chicago (160 N. LaSalle St., Chicago IL 60601).

 

h)         If a response is properly filed, an Administrative Law Judge will be appointed to conduct a hearing.

 

(Source:  Amended at 44 Ill. Reg. 16454, effective September 25, 2020)

 

Section 1800.725  Appearances

 

a)         All licensees may be represented by an attorney who is licensed to practice in Illinois.  All attorneys who appear in a representative capacity on behalf of a licensee must file a written appearance setting forth:

 

1)         The name, address and telephone number of the attorney;

 

2)         The name and address of the licensee the attorney represents; and

 

3)         An affirmative statement that the attorney is licensed to practice in Illinois.

 

b)         Only individual attorneys may file appearances.  Any licensee's attorney who has not filed an appearance may not address the Administrative Law Judge or sign pleadings.

 

c)         An attorney may only withdraw his appearance upon written notice to the Administrative Law Judge.

 

d)         An individual may appear on his own behalf.

 

e)         A partner may appear on behalf of a partnership.

 

f)         A corporation and a limited liability company must be represented by an attorney.

 

Section 1800.730  Appointment of Administrative Law Judge

 

a)         The Chairman of the Board may provide for or appoint a Board member or an attorney admitted to the practice of law by, and in good standing with, the Illinois Supreme Court as an Administrative Law Judge to conduct a hearing in accordance with this Subpart.  If designated, the Administrator may provide for the appointment of an Administrative Law Judge to conduct a hearing in accordance with this Subpart.  The licensee will be copied on the letter of appointment and the letter will serve as notice of the pendency of the hearing.  The Administrative Law Judge shall establish a status date and notify the parties of that date.

 

b)         If the licensee believes the Administrative Law Judge is biased or has a conflict of interest, the licensee may file with the Board a motion to disqualify the Administrative Law Judge from conducting the hearing.  The motion must be in writing, accompanied by an affidavit signed and dated by the licensee setting forth the specific grounds for disqualification.  The licensee shall serve a copy of the motion on the Administrative Law Judge.  Prior adverse rulings against the licensee or its attorney in other matters shall not, in and of themselves, constitute grounds for disqualification.  On satisfactory evidence submitted by the licensee in support of the motion to disqualify, the Board shall remove the Administrative Law Judge and provide for the reassignment of the case to another Administrative Law Judge to continue the hearing.  Any Administrative Law Judge may voluntarily disqualify himself upon determining that bias or conflict of interest exists.  Grounds for disqualification of Administrative Law Judge shall include but not be limited to:

 

1)         Financial interest or pecuniary benefit derived from the gaming industry;

 

2)         Personal friendship with any of the parties, witnesses or attorneys involved;

 

3)         Past representation of any of the parties or witnesses involved; or

 

4)         Demonstrable pre-disposition on the issues.

 

c)         If the motion to disqualify an Administrative Law Judge is denied, the Board shall set forth in writing the reasons for the denial and the Administrative Law Judge will proceed with the hearing.  The motion to disqualify the Administrative Law Judge and the reasons for the denial of the motion will be part of the administrative record in the appeal of a final administrative decision upon conclusion of the hearing.

 

Section 1800.735  Discovery

 

a)         Upon written request served on the opposing party, a party shall be entitled to:

 

1)         The name and address of any witness who may be reasonably expected to testify on behalf of the opposing party;

 

2)         All documents or other materials in the possession or control of the opposing party that the opposing party reasonably expects will be necessary to introduce into evidence.  The licensee's burden of production includes those documents the licensee reasonably expects to introduce into evidence either in his case-in-chief or in rebuttal.  Rebuttal documents, to the extent that they are not immediately identifiable, shall be tendered to the Board within 14 days after receipt of documents tendered to petitioner by the Board unless additional time is granted by the Administrative Law Judge.

 

b)         Discovery may be obtained only through written requests to produce witness lists, documents or other materials, as specified in subsection (a) of this Section.  Witnesses and documents responsive to a proper request for production that were not produced shall be excluded from the hearing and additional sanctions or penalties may be imposed.

 

Section 1800.740 Subpoenas

 

a)         Subpoenas for the attendance of witnesses at hearing may be served by the licensee only upon application to the Administrative Law Judge.

 

1)         The licensee must show good cause, state the testimony to be elicited from a witness, state why the evidence to which the testimony relates cannot otherwise be obtained, and state the reasons why the testimony is necessary and relevant.

 

2)         An agent or employee of the Board may not be required by the licensee to appear except under the procedures provided in this Section.

 

b)         The General Counsel of the Board or the Administrator may issue subpoenas for the attendance of witnesses or subpoenas duces tecum for the production of relevant documents, records or other material at a proceeding conducted under this Subpart G.

 

Section 1800.745  Motions for Summary Judgment

 

The Administrative Law Judge may recommend the granting or denial of a summary judgment motion upon the filing of an appropriate motion by any party.  A recommendation for denial of a summary judgment motion shall not be considered by the Board until the completion of the proceedings pursuant to Section 1800.750.

 

Section 1800.750  Proceedings

 

a)         All testimony shall be given under oath or affirmation.

 

b)         Both parties may present opening statements.  The Board will proceed first.

 

c)           The Board shall then present its case.  The Board shall establish the charges contained in the notice of proposed disciplinary action by a preponderance of the evidence.

 

d)         Upon the conclusion of the Board's case, the licensee may move for a directed finding.  The Administrative Law Judge may hear arguments on the motion or may grant, deny or reserve decision on the motion, without argument.

 

e)         If no motion for directed finding is made, or if such motion is denied or decision reserved, the licensee may present its case.

 

f)         The licensee bears the burden of rebutting the charges contained in the notice of proposed disciplinary action by clear and convincing evidence.

 

g)         Each party may conduct cross-examination of adverse witnesses.

 

h)         Upon the conclusion of the licensee's case, the Board may present evidence in rebuttal.

 

i)          If the Board presents rebuttal evidence, the licensee may present additional, non-cumulative, evidence in surrebuttal.

 

j)          Both parties may present closing arguments.  The licensee proceeds first, then the Board and thereafter the licensee may present rebuttal argument.

 

Section 1800.760  Evidence

 

a)         The hearing need not be conducted according to the technical rules of evidence.  Any relevant evidence may be admitted and shall be sufficient in itself to support a finding if it is the sort of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statute that might make improper the admission of evidence over objection in a civil action.  Hearsay may support a finding of the Administrative Law Judge if it is the best evidence available, has sufficient indicia of trustworthiness and reliability and is of the type reasonably and customarily relied on in the gaming industry.

 

1)         If relevant, and not precluded from the hearing by Section 6(d) of the Riverboat Gambling Act relating to all licensed applicants, the official Illinois Gaming Board records or certified copies of the records shall be admissible into evidence if the records tend to prove or disprove an allegation contained in the complaint;

 

2)         Official Illinois Gaming Board records are documents either prepared by or provided to the Board for the purpose of conducting its regular business.

 

b)         The parties should, to the fullest extent possible, stipulate to all matters that are not or fairly should not be in dispute.

 

c)         The parties may make objections to evidentiary offers.  When an objection is made, the Administrative Law Judge may receive the disputed evidence subject to a ruling at a later time.

 

d)         The Administrative Law Judge may take official notice of any generally accepted information or technical or scientific matter within the field of video gaming, and any other fact that may be judicially noticed by courts of this State.  The parties shall be informed of any information, matter or facts so noticed, including any staff memoranda or data, and shall be given reasonable opportunity to refute that information.

 

Section 1800.770  Prohibition on Ex Parte Communication

 

No party or its representative shall communicate directly or indirectly with the Administrative Law Judge or a member of the Illinois Gaming Board regarding any pending disciplinary matter, except upon notice to and opportunity for all parties to participate.

 

Section 1800.780  Sanctions and Penalties

 

a)         The Administrative Law Judge may impose sanctions and penalties if the Administrative Law Judge finds that a party has acted in bad faith, for the purpose of delay, or has otherwise abused the hearing process.  Such sanctions and penalties include but are not limited to default judgment or directed finding on one or more issues.

 

b)         If a licensee fails to testify on his own behalf with respect to any question propounded to him, the Administrative Law Judge may infer that such testimony or answer would have been adverse to the licensee's case.

 

c)         Failure of a licensee to appear at a hearing or scheduled proceeding shall constitute an admission of all matters and facts contained in the complaint.  In such cases the Administrative Law Judge may take action based upon that admission or upon any other evidence, including affidavits, without any further notice to the licensee.

 

Section 1800.790  Transmittal of Record and Recommendation to the Board

 

a)         The record shall consist of the following:

 

1)         The notice of proposed disciplinary action, the response and all motions and rulings on motions;

 

2)         All evidence received;

 

3)         A statement of matters officially noticed;

 

4)         Offers of proof, objections and rulings on those offers and objections; and

 

5)         The recommendation and any findings of fact and conclusions of law made by the Administrative Law Judge.

 

b)         Oral proceedings or any part of the oral proceedings involving contested issues shall be recorded stenographically or by such other means as to adequately insure the preservation of the testimony or oral proceedings and shall be transcribed on request of any party.  The transcript shall be paid for by the requesting party.

 

c)         Upon conclusion of the hearing, the Administrative Law Judge shall issue to the Board written findings of fact and conclusions of law and his/her recommendations.  Findings of fact shall be based exclusively on the evidence and on matters officially noticed.

 

d)         Any party to the hearing may file exceptions to the recommendations of the Administrative Law Judge with the Board no later than 14 days after receipt of the recommended decision.  Exceptions shall specify each finding of fact and conclusion of law to which exception is taken.  There shall be no oral argument on exceptions.

 

e)         Final Board Order

 

1)         The Board shall review the entire record, including any exceptions filed, and shall render a written order including the bases for its decision.

 

2)         Copies of the final Board order shall be served on the licensee by e-mail pursuant to Section 1800.140, personal delivery, certified mail or overnight express mail to the licensee's last known address.

 

3)         A final Board order shall become effective upon transmission of the e-mail, personal delivery to a party, or posting by certified or overnight express mail to the party's last known address.

 

(Source:  Amended at 44 Ill. Reg. 16454, effective September 25, 2020)

 

Section 1800.795  Persons Subject to Proposed Orders of Economic Disassociation

 

Persons subject to a proposed order of economic disassociation under Section 1800.330 may request a hearing on the order under this Subpart.  The licensee shall be considered a party to the hearing, and the persons subject to the proposed order of economic disassociation shall be considered real parties in interest.  A person requesting a hearing under this Section shall have the same procedural rights and obligations and shall be subject to the same notice requirements and deadlines as a licensee under this Subpart.

 

(Source:  Added at 40 Ill. Reg. 2952, effective January 27, 2016)

 

Section 1800.810  Location and Placement of Video Gaming Terminals

 

a)         All licensed video gaming locations and terminal operators shall be responsible for the proper placement, installation, maintenance and oversight of video gaming terminals within a licensed video gaming location as prescribed by the Act and this Part.

 

b)         All video gaming terminals must be located in an area restricted to persons over 21 years of age.  For all licensed video gaming locations that restrict admittance to patrons 21 years of age or older, a separate restricted area is not required. Any licensed video gaming location that allows minors to enter where video gaming terminals are located shall separate any video gaming terminals from the area accessible by minors. In those licensed video gaming locations where separation from minors under 21 is required, a physical barrier to the gaming area is required, which may consist of a short partition, gate or rope or other means of separation. No barrier shall visually obscure the entrance to the gaming area from an employee of the licensed video gaming location who is over the age of 21.

 

c)         All video gaming terminals located in a licensed establishment, licensed fraternal establishment, or licensed veterans establishment shall be placed in an area where alcoholic liquor is drawn, poured, mixed, or otherwise served for consumption on the premises. The designated video gaming area may be separate from where the bar or other source of the alcoholic liquor is located.  The licensed establishment, licensed fraternal establishment, or licensed veterans establishment shall have seating facilities for customers or members apart from seating at the video gaming terminals.  The drawing, pouring, mixing, or other service of alcoholic liquor within the video gaming area shall be done by the licensee of the licensed establishment, licensed fraternal establishment, or licensed veterans establishment.

 

d)         When two or more adjacent businesses appear to the Administrator to be a single business, or are operated by the same or commingled ownership, then the Administrator may limit those businesses to the maximum number of video gaming terminals.  The maximum will be the number permitted under Illinois law for one business as the total number of video gaming terminals authorized for both or more such businesses, where the Administrator determines that the limitation would further the intent of the Act and the integrity of video gaming in the State of Illinois.

 

1)         In the event the Administrator decides that two or more adjacent businesses shall be a single business for purposes of determining the maximum number of video gaming terminals to which they are entitled, the Administrator shall provide the affected businesses with written notice of this decision in accordance with the notice requirements of Section 1800.615.

 

2)         An applicant that has been deemed to constitute a single business with one or more adjacent businesses for purposes of determining the maximum number of video gaming terminals to which it is entitled may submit a request for hearing to the Board.  The hearing procedures shall be those set forth in Subpart F.

 

e)         The owner, manager or employee of the licensed video gaming location who is over 21 years of age shall be present during all hours of operation, and the video gaming terminals or the entrance to the video gaming terminal area must be within the view of at least one owner, manager or employee.

 

(Source:  Amended at 42 Ill. Reg. 3735, effective February 6, 2018)

 

Section 1800.815  Licensed Video Gaming Locations Within Malls

 

a)         The Board shall not grant an application to become a licensed video gaming location within a mall if the Board determines that granting the application would more likely than not cause a terminal operator, individually or in combination with other terminal operators, licensed video gaming locations, or other persons or entities, to operate the video gaming terminals in two or more licensed video gaming locations as a single video gaming operation.  In making determinations under this subsection (a), factors to be considered by the Board shall include, but not be limited to, the following:

 

1)         the physical aspects of the location, including but not limited to, common entrances with other units and other shared operating resources;

 

2)         the ownership, control or management of the applicant;

 

3)         the occupancy of the mall;

 

4)         any arrangements, understandings or agreements, written or otherwise, among or involving any persons or entities, including landlords or municipalities,  that involve the conducting of any video gaming business or the sharing of costs or revenues, or the guarantee thereof; and

 

5)         the manner in which any terminal operator, licensed video gaming location, or other related entity markets, advertises or otherwise describes any location or locations to any other person or entity or to the public.

 

b)         The Board shall presume, subject to rebuttal, that the granting of an application to become a licensed video gaming location within a mall will cause a terminal operator, individually or in combination with other terminal operators, licensed video gaming locations, or other person or entities, to operate the video gaming terminals in two or more licensed video gaming locations as a single video gaming operation, if the Board determines that granting the license would create a local concentration of licensed video gaming locations.  For purposes of this subsection (b):

 

1)         "local concentration of licensed video gaming locations" means that the combined number of licensed video gaming locations within a mall exceeds half the separate locations within the mall; and

2)         "location" means a space within a mall containing a separate business, a place for a separate business, or a place subject to a separate leasing arrangement by the mall owner.

 

c)         For purposes of this Section:

 

1)         A "mall" means one of the following that contains four or more units:

 

A)        a building;

 

B)        neighboring, adjoining or connected buildings;

 

C)        buildings with a single property postal address; or

 

D)        buildings with a single parcel number or property index number.

 

2)         A "unit" means a location within a mall that is physically distinct or is subject to a separate leasing or other ownership arrangement.

 

(Source:  Added at 41 Ill. Reg. 2939, effective February 24, 2017)

 

Section 1800.820  Measurement of Distances from Locations

 

In computing the distance between a licensed video gaming location and another facility for purposes of compliance with the location restrictions of Section 25(h) of the Act, a measurement shall be taken of the distance between the respective closest points of the outer walls of the structure containing the licensed video gaming location and the structure containing any of the following:

 

a)         A facility operated by an organization licensee licensed under the Illinois Horse Racing Act of 1975 [230 ILCS 5];

 

b)         The home dock of a riverboat licensed under the Riverboat Gambling Act [230 ILCS 10];

 

c)         A school; or

 

d)         A place of worship under the Religious Corporation Act [805 ILCS 110].

 

(Source:  Amended at 38 Ill. Reg. 849, effective December 27, 2013)

 

Section 1800.830  Waivers of Location Restrictions

 

a)         The Board may waive the requirement that a Licensed Video Gaming Location not be located within 1,000 feet from a facility operated by an organization licensee licensed under the Illinois Horse Racing Act of 1975 or the home dock of a riverboat licensed under the Riverboat Gambling Act pursuant to Section 25(h) of the Act upon a proper showing by the applicant.  In making its determination, the Board may consider the following:

 

1)         The number and character of other Licensed Video Gaming Locations in the municipality or subdivision of the municipality where the proposed Licensed Video Gaming Location will be located;

 

2)         Whether the proposed Licensed Video Gaming Location applicant has obtained all other necessary governmental licenses and permits;

 

3)         The history of liquor law violations and reported criminal activity at the proposed Licensed Video Gaming Location; and

 

4)         Any other factor that would be relevant to deciding whether public interest, convenience and advantage would be served by approving the waiver. 

 

b)         The Board shall not grant the waiver if there is any common ownership or control, shared business activity or contractual arrangement of any type between the proposed Licensed Video Gaming Location and the organization licensee or owners licensee of a riverboat.

 

(Source:  Amended at 38 Ill. Reg. 849, effective December 27, 2013)

 

Section 1800.910  Approvals Required, Applicability, Scope of Approval

 

a)         A person may not enforce a security interest in gaming property collateral except as set forth in this Subpart.  Any attempt to enforce a security interest is void if the secured party has not complied with the requirements of this Subpart.

 

b)         This Subpart does not apply to the enforcement of a security interest in property other than gaming property collateral.

 

c)         Compliance with this Subpart does not constitute any of the following:

 

1)         a determination by the Board as to the validity or enforceability of a security interest;

 

2)         licensing eligibility;

 

3)         approval of any other sale, transfer or other disposition of the gaming property collateral after the enforcement of the security interest.

 

(Source:  Added at 35 Ill. Reg. 1369, effective January 5, 2011)

 

Section 1800.920  Notice of Enforcement of a Security Interest

 

a)         A secured party must give prior written notice to the Board that it intends to enforce a security interest in gaming property collateral using such forms as the Board may require.  The notice must include the following:

 

1)         a complete description of the gaming property collateral that is the subject of the security interest;

 

2)         copies of the security agreement and documents evidencing the obligation secured by the gaming property collateral;

 

3)         a statement by the secured party identifying the act of default by the licensee that is the basis for seeking to enforce the security interest, including notice of default sent to the licensee; and

 

4)         any other information requested by the Board.

 

b)         The Administrator will investigate the facts and circumstances related to the notice of enforcement of a security interest.  The investigation may include the following:

 

1)         review of all pertinent documents;

 

2)         review of the transaction to determine whether the security interest was given in violation of the Act or this Part or an attempt to evade the requirements of the Act or this Part regarding the sale, assignment, transfer or other disposition of an interest in a gaming operation or in the type of property subject to this Section, including but not limited to video gaming terminals; and

 

3)         review of any other data or information requested.

 

(Source:  Added at 35 Ill. Reg. 1369, effective January 5, 2011)

 

Section 1800.930  Prior Registration

 

a)         Video gaming terminals may only be secured as collateral by a person who is licensed under the Act or who has registered with the Board on forms provided by the Board.

 

b)         Prior registration or licensure under the Act of the secured party seeking to enforce a security interest is required.  The Board will not approve the enforcement of any security interest in gaming property collateral unless all persons have been either registered or licensed, as applicable.

 

(Source:  Amended at 37 Ill. Reg. 810, effective January 11, 2013)

 

Section 1800.1010  Restriction on Sale, Distribution, Transfer, Supply, and Operation of Video Gaming Terminals

 

a)         No licensee shall sell, distribute, transfer or supply a video gaming terminal to any person that could not lawfully own or operate the video gaming terminal.

 

b)         No terminal operator or licensed video gaming location shall operate a video gaming terminal without first obtaining a terminal operator's license or a license for a video gaming location, as applicable.

 

c)         A terminal operator may sell or otherwise transfer a video gaming terminal to another terminal operator only with prior written approval of the Administrator.

 

(Source:  Amended at 37 Ill. Reg. 18843, effective November 8, 2013)

 

Section 1800.1020  Transportation of Video Gaming Terminals into the State

 

a)         A video gaming terminal is shipped or transported into the State when the starting point for shipping or transporting begins outside the State and terminates in the State.

 

b)         Video gaming terminals may not be shipped directly to licensed video locations.

 

c)         A manufacturer or distributor shipping or transporting a video gaming terminal into the State to a terminal operator, manufacturer or distributor shall provide the following information to the Board not less than 14 calendar days prior to shipment, unless otherwise directed by the Administrator, on forms provided by the Board:

 

1)         the full name, address, and Illinois Gaming Board license number of the person making the shipment;

 

2)         the method of shipment and the name of the carrier, if any;

 

3)         the manner and method of how the shipment will be secured;

 

4)         the full name, address, and Illinois Gaming Board license number of the terminal operator, manufacturer or distributor to whom the video gaming terminals are being sent and the destination of the shipment, if different from the address;

 

5)         the number of video gaming terminals in the shipment;

 

6)         the model, serial number, and description of each video gaming terminal;

 

7)         the expected arrival date of the video gaming terminals at their destination within the State; and

 

8)         such other information as required by the Board.

 

d)         Each video gaming terminal transported into the State shall be inspected by an

agent of the Board at a location to be determined by the Board prior to delivery to a licensed video gaming location.

 

e)         No EPROM, logic board, or non-alterable storage media may be activated prior to signature verification by the Board or its agent.

 

(Source:  Added at 35 Ill. Reg. 1369, effective January 5, 2011)

 

Section 1800.1030  Receipt of Video Gaming Terminals in the State

 

a)         Any terminal operator, manufacturer or distributor in the State that receives a video gaming terminal from outside of the State shall, immediately upon receipt of the video gaming terminal, provide the Board with the following information on forms provided by the Board:

 

1)         the full name, address, and Illinois Gaming Board license number of the terminal operator, manufacturer or distributor receiving the video gaming terminal;

 

2)         the full name, address and Illinois Gaming Board license number of the person from whom the video gaming terminal was received;

 

3)         the date of receipt of the video gaming terminal;

 

4)         the model, serial number and description of each video gaming terminal;

 

5)         the manufacturer of the video gaming terminal;

 

6)         the location where the video gaming terminal will be stored until placed in a licensed video gaming location;

 

7)         such other information as required by the Board.

 

b)         The storage location shall be approved in advance by the Administrator.  At the time the video gaming terminal is removed from inventory and transported to another location within the State, the terminal operator, distributor or manufacturer shall comply with the requirements in this Subpart.

 

(Source:  Added at 35 Ill. Reg. 1369, effective January 5, 2011)

 

Section 1800.1040  Transportation of Video Gaming Terminals Between Locations in the State

 

a)         Manufacturers, distributors, licensed terminal handlers, and terminal operators are authorized to transport video gaming terminals within the State.

 

b)         Except as otherwise provided in this Section, any authorized person transporting a video gaming terminal from an approved location to another approved location in the State for any purpose shall notify the Board before transporting the video gaming terminal and provide the following information on forms provided by the Board:

 

1)         the full name, address and Illinois Gaming Board license number of the person transporting the video gaming terminal from its current location;

 

2)         the reason for transporting the video gaming terminal;

 

3)         the full name, address and Illinois Gaming Board license number of the person to whom the video gaming terminal is being sent and the destination of the video gaming terminal if different from the address;

 

4)         the name and address of the carrier and the method of transport;

 

5)         the manner and method of how the shipment will be secured;

 

6)         the model, serial number and description of the video gaming terminal;

 

7)         the video gaming terminal license number, if any;

 

8)         the manufacturer of the video gaming terminal;

 

9)         the expected date and time of delivery and/or installation of the video gaming terminal in the location; and

 

10)         such other information as the Board may require.

 

c)         This Section does not apply to the movement of video gaming terminals within the same licensed video gaming location.  The relocation is subject to Board approval pursuant to Section 1800.810.

 

d)         Unless otherwise specified in this Section, an agent of the Board must approve and may inspect all video gaming terminals before the transportation of video gaming terminals within the State.

 

e)         Movement of a video gaming terminal that has been inoperable pursuant to Section 1800.250 requires notice to the Board on forms provided by the Board.  Transportation of an inoperable video gaming terminal must be to an approved location.

 

(Source:  Added at 35 Ill. Reg. 1369, effective January 5, 2011)

 

Section 1800.1050  Approval to Transport Video Gaming Terminals Outside of the State

 

a)         Manufacturers and distributors located in the State shall not sell, ship, transport, or distribute video gaming terminals out of the State without the prior approval of the Administrator or as the Board provides.  Applications for approval to sell, ship, transport or distribute video gaming terminals out of the State shall be made, processed and determined in such manner and using the forms the Board provides.  Each application shall include:

 

1)         the full name, state of residence, address of the purchaser, and jurisdiction where the purchaser is licensed;

 

2)         the full name, state of residence and address of the person to whom shipment is being made, if different than the purchaser;

 

3)         the number of video gaming terminals to be shipped;

 

4)         the model, serial number and description of each video gaming terminal to be shipped;

 

5)         the expected date and time of shipment;

 

6)         the method of shipment and name and address of the carrier; and

 

7)         the method and manner of how the shipment will be secured.

 

b)         Manufacturers and distributors shall not ship video gaming terminals to any destination where possession of video gaming terminals or gaming devices is illegal.

 

c)         An agent of the Board must inspect all video gaming terminals before transportation outside of the State.  Licensees shall make video gaming terminals available for inspection upon request.

 

(Source:  Added at 35 Ill. Reg. 1369, effective January 5, 2011)

 

Section 1800.1060  Placement of Video Gaming Terminals

 

Manufacturers, distributors and terminal operators may store and display, and persons licensed pursuant to the Act may repair, service or maintain, video gaming terminals only at locations approved in advance by the Administrator.

 

(Source:  Added at 35 Ill. Reg. 1369, effective January 5, 2011)

 

Section 1800.1065  Registration of Video Gaming Terminals

 

a)         Any terminal operator that possesses any video gaming terminal shall have

a registration tag issued by the Board securely affixed on each terminal.

 

b)         Any video gaming terminal without a current registration tag shall be subject to seizure.  Any agent of the Board may demand and gain access to any property relating to a licensed video gaming location or any location where video gaming terminals are stored, sold, distributed or transported, and seize any video gaming terminal that does not bear a current registration tag or is operating in a manner that violates any provision of the Act, this Part, or operating procedures established by the Board.  Video gaming terminals so seized shall be subject to confiscation and forfeiture.  In the event the Board seizes video gaming terminals in accordance with this Section, the Board shall notify the terminal operator of the seizure and of the terminal operator's right to a hearing under Subpart G of this Part.

 

(Source:  Added at 36 Ill. Reg. 10029, effective June 28, 2012)

 

Section 1800.1070  Disposal of Video Gaming Terminals

 

a)         A video gaming terminal shall be disposed of only with the Administrator's prior approval and only if the manner of disposal makes the video gaming terminal incapable of use or operation.  Any person seeking to dispose of a video gaming terminal shall notify the Administrator in writing on forms to be provided by the Board prior to disposal and provide the following information:

 

1)         the full name, address, and Illinois Gaming Board license number of the person seeking to dispose of the video gaming terminal;

 

2)         the model, serial number and description of the video gaming terminal;

 

3)         the manufacturer of the video gaming terminal;

 

4)         the video gaming terminal Illinois Gaming Board license number;

 

5)         the location of the video gaming terminal;

 

6)         the proposed manner, time and place of disposal; and

 

7)         any other information required by the Board.

 

b)         Disposal of a video gaming terminal pursuant to this Section shall take place in the presence of an agent of the Board.

 

(Source:  Added at 35 Ill. Reg. 1369, effective January 5, 2011)

 

Section 1800.1110  State-Local Relations

 

a)         Whenever the Board takes any action authorizing or prohibiting the licensing, operation, or use of video gaming terminals, it shall notify the police department or sheriff's office whose jurisdiction includes the premises on which the video gaming terminals are authorized or prohibited.

 

b)         Any municipality, county or law enforcement agency that takes action relating to the operation or use of a video gaming terminal, whether licensed or unlicensed, shall notify the Board and specify the extent of the action taken and the reasons for the action.  The Board shall thereupon take whatever action is necessary under the Act.  Any law enforcement agency that confiscates video gaming terminals or terminal income shall, as soon as practicable under the circumstances, turn over the video gaming terminals and terminal income to the Board unless otherwise ordered by a court of competent jurisdiction.

 

(Source:  Added at 35 Ill. Reg. 1369, effective January 5, 2011)

 

Section 1800.1210  Definitions

 

As used in this Subpart:

 

"Department" means the Department of State Police.

 

"Person" means an individual required by the Board to be fingerprinted in connection with an application for licensure or as a requirement for continued licensure under the Act.

 

"Entity" means any individual, association, partnership or corporation qualified, or seeking qualification, as a livescan vendor.

 

"Livescan fingerprinting" or "fingerprinting" shall be the collection of inkless fingerprints in a manner prescribed by the Department and the electronic transmission of those fingerprints to the Department.

 

"Livescan technician" means an individual who is trained to collect fingerprints on livescan equipment and who meets any licensing requirements of the State or federal government.

 

"Livescan vendor" or "vendor" shall mean an entity besides the Department certified by the Board to conduct livescan fingerprinting.

 

(Source:  Added at 36 Ill. Reg. 10029, effective June 28, 2012)

 

Section 1800.1220  Entities Authorized to Perform Fingerprinting

 

The Department or a livescan vendor may fingerprint persons required to be fingerprinted by the Board.  The Board or Department may direct persons required to be fingerprinted to use the services of a livescan vendor in lieu of the services of the Department.

 

(Source:  Added at 36 Ill. Reg. 10029, effective June 28, 2012)

 

Section 1800.1230  Qualification as a Livescan Vendor

 

The following entities shall qualify as livescan vendors:

 

a)         An entity that:

 

1)         Demonstrates to the Board that it has two or more years of experience transmitting fingerprints electronically to the Department, and that it can successfully transmit the required data to the Department in a manner prescribed by the Department; 

 

2)         Demonstrates ability to comply with all the requirements of Section 1800.1240; 

 

3)         Enters into a standardized contract with the Board for the performance of livescan fingerprinting services;

 

4)         Provides a single preferred point of contact with the Department and Board; 

 

5)         Complies with all other Board requirements for livescan vendors; and

 

6)         Has not had its contract with the Board revoked or suspended under the criteria of Section 1800.1260; or

 

b)         An entity that:

 

1)         Has entered into, and continues to be covered by, a standardized contract with the Department of Public Health as set forth in 77 Ill. Adm. Code 955.285 and has met all the criteria of that Section;

 

2)         Complies with all other applicable Board requirements for livescan vendors; and

 

3)         Has not had its contract with the Board revoked or suspended or been contractually disqualified by the Board under the criteria of Section 1800.1260.

 

(Source:  Added at 36 Ill. Reg. 10029, effective June 28, 2012)

 

Section 1800.1240  Fingerprinting Requirements

 

All fingerprinting conducted under the provisions of this Subpart L by a livescan vendor shall comply with the following requirements:

 

a)         The vendor shall use only equipment that is certified by the Department as meeting its requirements for inkless fingerprint collection.

 

b)         The vendor shall electronically transmit the fingerprints and other data required by the Department through a secure network within one business day after the fingerprints are collected. 

 

c)         The vendor shall comply with all Electronic Fingerprint Submission Specifications (EFSS) of the Department (http://www.isp.state.il.us/docs/9-054.pdf) and all Electronic Fingerprint Transmission Specifications standards of the Federal Bureau of Investigation (http://fbi.gov/hq/cjisd/iafis/efts70/ cover.htm).

 

d)         Fingerprints may be taken and transmitted only by livescan technicians who have had a fingerprint-based criminal history records check and have not been convicted of crimes that, if committed by a person seeking licensure under the Act, would constitute a statutory disqualification for licensure.  The Board may, in its discretion, disqualify individuals from taking fingerprints who have been convicted of crimes that, if committed by a person seeking licensure under the Act, would serve as a discretionary basis for license disqualification.

 

e)         Fingerprints shall be collected directly from the person's hand and shall consist of 10 rolled impressions and 10 slap impressions in a format acceptable to the Department. 

 

f)         The vendor shall archive (store, back up, retrieve, etc.) the fingerprints transmitted to the Department in a secure and retrievable manner.  Upon expiration or termination of the contract, the vendor shall provide the stored data to the Department in a format requested by the Department.

 

g)         The vendor shall provide a single point of contact through which the Board or Department may contact the vendor.

 

h)         If a person's fingerprints are rejected by the Department, the vendor shall collect a second or subsequent set of fingerprints.  The vendor shall not charge for collecting the second or subsequent set of fingerprints.

 

(Source:  Added at 36 Ill. Reg. 10029, effective June 28, 2012)

 

Section 1800.1250  Fees for Fingerprinting

 

A livescan vendor shall impose a fingerprinting fee on each person fingerprinted, payable to the vendor.  For all vendors selected pursuant to Section 1800.1230(a), the amount of the permissible fee shall be set by the Board and shall include the costs of fingerprinting and all associated costs to the vendor, including, but not limited to, accounting charges, credit card fees, and charges in relation to the transmission and collection of fingerprints billed to the vendor by the Department, plus an additional amount based on customary profits earned by entities performing fingerprinting services for comparable governmental jurisdictions.  The vendor shall compile and provide to the Board a complete record of all fees collected.  The Board may establish policies governing the procedures for payment of fees under this Section and provision of fee records to the Board.  For all vendors selected pursuant to Section 1800.1230(b), the fee shall be the fee shown in the contract between the vendor and the Illinois Department of Public Health.

 

(Source:  Added at 36 Ill. Reg. 10029, effective June 28, 2012)

 

Section 1800.1260  Grounds for Revocation, Suspension or Denial of Contract

 

The Board has authority to revoke or suspend a contract it has entered into with a livescan vendor, and to deny the application of an entity applying to be a livescan vendor, for any of the following reasons:

 

a)         Failure to comply with any of the requirements of Section 1800.1240;

 

b)         Failure to comply with any order, ruling or directive of the Board or Department;

 

c)         A rejection rate by the Department of 5% or greater of collected fingerprints;

 

d)         Collection of fees exceeding maximum limits imposed by the Board;

 

e)         Any other basis upon which the Department or Board concludes that fingerprints collected by the vendor are inadequately or unreliably collected; or

 

f)         Any of the grounds for disciplinary action applicable to licensees under Section 1800.310.

 

(Source:  Added at 36 Ill. Reg. 10029, effective June 28, 2012)

 

Section 1800.1310  Public Requests for Information

 

a)         The Board shall, upon written request from any person, provide information furnished by an applicant, licensee or person with significant influence or control of the applicant or licensee, concerning the applicant, licensee or person with significant influence or control of the applicant or licensee, its products, services, gaming and video gaming enterprises, and its business holdings, as follows:

 

1)         The name, business address and business telephone number of any applicant, licensee or person with significant influence or control of the applicant or licensee.

 

2)         An identification of any applicant, licensee or person with significant influence or control of the applicant or licensee, including, if an applicant, licensee or person with significant influence or control of the applicant or licensee is not an individual, the state of incorporation or registration, the corporate officers and the identity of all shareholders or participants.  If an applicant, licensee or person with significant influence or control of the applicant or licensee has a pending registration statement filed with the Securities and Exchange Commission, only the names of those persons or entities holding interest of 5% or more must be provided.

 

3)         An identification of any business, including, if applicable, the state of incorporation or registration, in which an applicant, licensee or person with significant influence or control of the applicant or licensee, or his or her spouse or children, has an equity interest of more than 5%.  If an applicant, licensee or person with significant influence or control of the applicant or licensee is a corporation, partnership or other business entity, the applicant, licensee or person with significant influence or control of the applicant or licensee shall identify any other corporation, partnership or business entity in which it has an equity interest of 5% or more, including, if applicable, the state of incorporation or registration.  This information need not be provided by a corporation, partnership or other business entity that has a pending registration statement filed with the Securities and Exchange Commission.

 

4)         Whether an applicant, licensee or person with significant influence or control of the applicant or licensee has been indicted, convicted, pleaded guilty or nolo contendere, or forfeited bail concerning any criminal offense under the laws of any jurisdiction, either felony or misdemeanor (except for traffic violations), including the date, the name and location of the court, arresting agency and prosecuting agency, the case number, the offense, the disposition and the location and length of incarceration.

 

5)         Whether an applicant, licensee or person with significant influence or control of the applicant or licensee has had any license or certificate issued by a licensing authority in Illinois or any other jurisdiction denied, restricted, suspended, revoked or not renewed and a statement describing the facts and circumstances concerning the denial, restriction, suspension, revocation or non-renewal, including the licensing authority, the date each action was taken and the reason for each action.

 

6)         Whether an applicant, licensee or person with significant influence or control of the applicant or licensee has ever filed or had filed against it a proceeding in bankruptcy or has ever been involved in any formal process to adjust, defer, suspend or otherwise work out the payment of any debt, including the date of filing, the name and location of the court, the case and number of the disposition.

 

7)         Whether an applicant, licensee or person with significant influence or control of the applicant or licensee has filed, or been served with a complaint or other notice filed with any public body regarding the delinquency in the payment of, or a dispute over the filings concerning the payment of, any tax required under federal, State or local law, including the amount, type of tax, the taxing agency and time periods involved.

 

8)         A statement listing the names and titles of all public officials or officers of any unit of government, and the spouse and children of those public officials or officers, who, directly or indirectly, own any financial interest in, have any beneficial interest in, are the creditors of, or hold any debt instrument issued by, or hold or have any interest in any contractual or service relationship with, an applicant, licensee or person with significant influence or control of the applicant or licensee.

 

9)         Whether an applicant, licensee or person with significant influence or control of the applicant or licensee has made, directly or indirectly, any political contribution, or any loans, donations or other payments, to any candidate or office holder, within 5 years from the date of filing the application, including the amount and the method of payment.

 

10)         The name and business telephone number of the counsel representing an applicant, licensee or person with significant influence or control of the applicant or licensee in matters before the Board.

 

b)       Subject to subsection (a), the Board shall not disclose any information that would be barred by:

 

1)           Section 7 of the Freedom of Information Act [5 ILCS 140/7]; or

 

2)           The statutes, rules, regulations or intergovernmental agreements of any jurisdiction.

 

c)         The Board may assess fees for the copying of information in accordance with Section 6 of the Freedom of Information Act. 

 

(Source:  Added at 36 Ill. Reg. 18550, effective December 14, 2012)

 

Section 1800.1410  Ticket Payout Devices

 

a)         Each licensed video gaming location at which video gaming terminals are available shall have a payout device as defined in Section 1800.110.

 

b)         In addition to the requirement set forth in this Section, each payout device shall conform to the redemption terminal interoperability requirements approved by the Administrator and to the video gaming payout device standards approved by the Administrator.  A licensed video gaming location shall only use a payout device that has received prior written approval by the Administrator.  All programming changes or upgrades to an approved payout device shall also receive prior written approval by the Administrator.

 

c)         For purposes of Section 20 of the Act, a player seeking to redeem a ticket dispensed by a video gaming terminal for cash may either:

 

1)         submit the ticket for full payment directly to a payout device; or

 

2)         submit the ticket for full payment to an authorized employee of the licensed video gaming location who is at least 21 years old who shall then submit the ticket into a payout device.

 

d)         If a video gaming terminal and/or payout device has malfunctioned or is otherwise inoperable and unable to produce a ticket or redeem a ticket, a player shall promptly receive a "facility-pay" from an employee of the licensed video gaming location or an employee of the licensed terminal operator who is at least 21 years old. 

 

e)         All facility payments must be accounted for by the licensed terminal operator and licensed video gaming location using Generally Accepted Accounting Principles (GAAP).  This shall require, at a minimum, that each licensed video gaming location shall record the following for each facility payment:

 

1)         date and time of the payment event;

 

2)         amount paid;

 

3)         video gaming terminal license number, payout device number, or video gaming ticket number for which payment is made; and

 

4)         name of the individual processing the facility payment.

 

f)         A payout device may allow for automated teller machine (ATM) functionality for patron cash withdrawals initiated from bank cards and other similar instruments only when the material components of that functionality and any accompanying remote access communication is physically and logically segregated from the functionality for the video gaming ticket payment system.  The ATM system and video gaming ticket payment system may share a single currency dispenser. 

 

g)         Each approved payout device shall:

 

1)         ensure against manipulation, alteration or change of the approved payout device;

 

2)         be operated in such a manner as to cause immediate notification to the central communication system of any malfunction that affects the integrity of the approved payout device;

 

3)         provide for on-line real-time monitoring; and

 

4)         be subject to testing by an independent laboratory and review by the Board as deemed necessary or appropriate to ensure the continued integrity of the approved payout device or any of its component parts.

 

h)         A terminal operator may sell or otherwise transfer a payout device to another terminal operator only with prior written approval of the Administrator.

 

(Source:  Amended at 37 Ill. Reg. 18843, effective November 8, 2013)

 

Section 1800.1420  Redemption of Tickets Following Removal or Unavailability of Ticket Payout Devices

 

a)         If a licensed video gaming location changes terminal operator providers, and/or changes ticket payout systems, such that unredeemed tickets issued under the previous terminal operator or ticket payout system are no longer redeemable by the new ticket payout device at the licensed video gaming location, the licensed video gaming location shall provide facility payments to the patrons for the tickets issued under the previous terminal operator. 

 

b)         If a licensed video gaming location closes or ceases doing business, ceases its video gaming operation, changes locations, has its video gaming license or liquor license suspended or revoked, or is otherwise unavailable or inaccessible for patrons to redeem unredeemed tickets for more than 10 consecutive days, the licensed video gaming location shall:

 

1)         place a sign prominently at the location (so long as the video gaming location licensee still has possession or control of the location) no less than 21 x 13" that reasonably informs patrons of the name and phone number of the terminal operator from which patrons can seek payment for unredeemed tickets; and

 

2)         prominently post a notice on any internet site and/or social media outlet under its operation or control that reasonably informs patrons of the name and phone number of the terminal operator from which patrons can seek payment for unredeemed tickets.

 

c)         When patrons cannot redeem outstanding tickets of a terminal operator at the video gaming location from which they were issued because of the reasons stated in subsection (a) or (b), the terminal operator shall promptly maintain and secure a list or database of all issued and unredeemed tickets from the video gaming location.  The list or database must be maintained for no less than one year.

 

(Source:  Added at 37 Ill. Reg. 18843, effective November 8, 2013)

 

Section 1800.1421  Redemption of Video Gaming Tickets During a Coin Shortage

 

a)         In the event of a coin shortage, the Administrator may grant approval to a terminal operator, upon written request, to redeem gaming tickets and vouchers by mail through the United States Postal Service (USPS).  Factors to be considered by the Administrator in the decision whether to grant approval may include:

 

1)         Existence of a coin shortage in market areas of the terminal operator;

 

2)         Numbers of redemption terminals;

 

3)         Frequency of coin filling and redemptions;

 

4)         Number of available coin suppliers; and

 

5)         The size and geographic reach of a terminal operator’s market that may or may not allow it to remedy a deficiency of coins in one area through a surplus in another area where coins are more plentiful.

 

b)         For the purposes of this Section, a “coin shortage” means the inability of a terminal operator to acquire sufficient U.S. currency to allow its redemption devices to redeem all gaming tickets and vouchers reasonably expected to be redeemed over a seven-day period because the terminal operator’s usual coin suppliers cannot meet the terminal operator’s demand.

 

c)         Procedures for Approved Coin Shortages

 

1)         Prior to a terminal operator redeeming gaming tickets or vouchers through the USPS, the terminal operator’s redemption devices shall be programmed to either return unredeemable tickets or vouchers in the full amount, or redeem an amount less than the value of the tickets or vouchers and print a ticket or voucher for the balance of the tickets’ or vouchers’ value.

 

2)         Prior to electing to redeem a ticket or voucher through the USPS, a patron may, but is not required to, bring the ticket or a voucher printed at the redemption device to the licensed location for redemption.  The licensed location may choose to redeem the value of the ticket or voucher.  A licensed location redeeming tickets or vouchers shall:

 

A)        Retain all redeemed tickets and vouchers until provided to the terminal operator;

 

B)        Record the date and time the ticket or voucher was redeemed; and

 

C)        Maintain and provide any other information requested by the terminal operator related to the ticket or voucher redemption.

 

3)         A patron may submit the ticket or voucher to the terminal operator for redemption by mail.  If a patron submits a ticket or voucher for redemption by mail, the following shall apply:

 

A)        The patron shall provide their name and address with the ticket or voucher to be redeemed.

 

B)        The terminal operator, subject to verifying the ticket or voucher through its internal processes, shall issue payment within 15 days of receipt for the ticket or voucher by mail.

 

C)        The terminal operator shall reimburse the patron for the cost of mailing the ticket or voucher.  The reimbursement shall be included with the payment for the ticket or voucher mailed to the patron.

 

(Source:  Added at 46 Ill. Reg. 5530, effective March 16, 2022)

 

Section 1800.1510  Non-Payment of Taxes

 

a)         The first time that a terminal operator is more than 48 hours overdue in remitting taxes pursuant to Section 60 of the Act due to non-sufficient funds, the Administrator shall promptly direct the disabling of all video gaming terminals operated by the terminal operator until the terminal operator pays the overdue tax remittance by certified funds plus the penalty amount provided under Section 60(e) of the Act.

 

b)         The second or subsequent time within a one-year period that a terminal operator is more than 48 hours overdue in remitting taxes pursuant to Section 60 of the Act due to non-sufficient funds, the Administrator shall promptly direct the disabling of all video gaming terminals operated by the terminal operator until each of the following occurs:

 

1)         The terminal operator pays the overdue tax remittance by certified funds plus the penalty amount provided by Section 60(e) of the Act; and

 

2)         The terminal operator posts a bond or cash deposit of certified funds required by the Administrator as a guarantee of future tax payments.  The bond or cash deposit of certified funds shall be in an amount equal to the average net terminal income for a period of one week based on the previous 120 days, excluding any period for which the terminal operator's video gaming terminals were disabled for non-payment of taxes.

 

c)         A terminal operator may be subject to disciplinary action by the Board under Section 1800.310 for an overdue tax remittance. 

 

d)         An overdue tax remittance caused by an error of a financial institution shall not be subject to the provisions of this Section.

 

(Source:  Added at 37 Ill. Reg. 4892, effective April 1, 2013)

 

Section 1800.1610  Use of Gaming Device or Individual Game Performance Data

 

The Board shall not permit the development of information or the use by any licensee of gaming device or individual game performance data of another licensee.  Nothing in the Act shall inhibit or prohibit the Board from the use of gaming device or individual game performance data in its regulatory duties.  The Board shall adopt rules to ensure that all licensees are treated, and all licensees act, in a non-discriminatory manner and shall develop processes and penalties to enforce those rules.  (Section 15 of the Act)

 

(Source:  Added at 39 Ill. Reg. 5593, effective April 1, 2015)

 

Section 1800.1710  Conversations About Responsible Gaming

 

Owners and persons with significant influence or control of a licensed video gaming location, video gaming managers, and employees of a licensed video gaming location whose job duties involve any aspect of video gaming operations, shall have a right, but not an obligation, to conduct conversations about responsible gaming with video gaming players at the location. A licensed video gaming location will not be liable if a person enrolled in the Board's self-exclusion program established under 86 Ill. Adm. Code 3000.Subpart G or problem gambling registry created by Section 1800.1730 of this Part plays a video gaming terminal on the premises of the licensed video gaming location.

 

(Source:  Added at 42 Ill. Reg. 3126, effective February 2, 2018)

 

Section 1800.1720  Responsible Gaming Education Programs

 

a)         As a condition of initial licensure and license renewal of a licensed video gaming location, all owners and persons with significant influence or control of the location, video gaming managers, and all employees of the location whose employment duties relate to any aspect of video gaming operations, shall be required to complete an on-line course of study on responsible gaming.  Completion of this course shall be a condition of license issuance and renewal.  Completion of the course shall be required within 30 days after the date the course is made available to the public, or the person becomes an owner, person with significant influence or control, video gaming manager, or employee of the location. Enrollment in the course shall be free of charge to the enrollee. The course of study shall define responsible gaming and provide instruction on conversational techniques with customers whose behavior indicates they may have a gambling problem. The recommended conversational techniques shall be informative and non-judgmental, provide players with helpful information about the random nature of video gaming play and long-term prospects of winning, and recommend appropriate means of providing information to video gaming players concerning problem gambling resources.

 

b)         In implementing the responsible gaming education program, the Board may contract for and use educational materials and programs offered by any public or private entity, including but not limited to those prepared by other state governments.

 

(Source:  Added at 42 Ill. Reg. 3126, effective February 2, 2018)

 

Section 1800.1730  Problem Gambling Registry

 

The Board shall establish a voluntary, confidential problem gambling registry for video gaming.  Persons enrolled in the registry shall receive regular e-mails providing information on problem gambling and containing links to problem gambling prevention and treatment resources available in Illinois. Individuals enrolled in the problem gambling registry may cancel their enrollments at any time. Both Illinois and out-of-state residents may enroll in the problem gambling registry.

 

(Source:  Added at 42 Ill. Reg. 3126, effective February 2, 2018)

 

Section 1800.1740  Utilization of Technology to Prevent Problem Gambling

 

The Board may utilize technology to include a message on the interface of video gaming terminals to assist players in responsible gaming and prevent problem gambling from occurring. 

 

(Source:  Added at 42 Ill. Reg. 3126, effective February 2, 2018)

 

Section 1800.1750  Problem Gambling Signage

 

a)         Each terminal operator shall provide to each licensed video gaming location at which it operates video gaming terminals signs to inform patrons how to obtain assistance with problem gambling.

 

b)         Each licensed video gaming location shall post and maintain the signs provided by the terminal operator.

 

c)         The signs must be conspicuously posted and visible at the entrance to any gaming area and from any ATM in the licensed location.

 

d)         The content must at minimum include text materially consistent with Department of Human Services rules for problem gambling signage (see 77 Ill. Adm. Code 2059.103) and the content must include instructions on accessing the Illinois Gaming Board Self-Exclusion Program (see Subpart G of 86 Ill. Adm. Code 3000).

 

e)         The content of the signs must be approved by the Administrator.

 

(Source:  Added at 47 Ill. Reg. 16355, effective November 1, 2023)

 

Section 1800.1810  Implementation of Technology

 

a)         The Administrator shall have the authority to direct and oversee installation of technology into video gaming terminals, and the maintenance and improvement of that technology, designed to allow the Board to collect data from, and inspect, those terminals. 

 

b)         An applicant or licensee may be billed directly or be required to reimburse the Board for any expenses, including third-party expenses, associated with the testing, certification, installation, training, review or approval of video gaming-related technology or technological enhancements to a video gaming operation. 

 

(Source:  Added at 44 Ill. Reg. 489, effective December 27, 2019)

 

Section 1800.1910  Independent Outside Testing Laboratories

 

a)         Any independent outside testing laboratory that holds an accreditation in accordance with ISO/IEC 17025 by an accreditation body that is a signatory to the International Laboratory Accreditation Cooperation Mutual Recognition Agreement and is authorized to perform independent testing laboratory services in a gaming jurisdiction comparable to Illinois is licensed to perform independent testing laboratory services in Illinois, subject to the requirements of this Subpart.

 

b)         Gaming Jurisdictions Comparable to Illinois

 

1)         A "gaming jurisdiction comparable to Illinois" means a jurisdiction that regulates the operation of electronic devices that are:

 

A)        Connected to a central monitoring system that records the gaming activity of each electronic device and is operated by the gaming regulatory authority or an agent of that authority;

 

B)        Capable of awarding credits dependent upon chance, and containing a circuit, meter or switch capable of removing and recording the removal of credits; and

 

C)        Dependent on the approval of their operation by a gaming regulatory body.

 

2)         For purposes of this subsection (b), an "electronic device" shall have the same meaning as "video gaming terminal" in Section 1800.110 except that all required authorizations are provided by the comparable jurisdiction.

 

c)         Any independent outside testing laboratory may apply for licensure under the Act by submitting to the Administrator its accreditations and the jurisdictions in which it is authorized to perform independent testing laboratory services.

 

d)         The Administrator shall determine whether the jurisdictions in which the applicant independent outside testing laboratory is licensed to perform independent testing laboratory services is a gaming jurisdiction comparable to Illinois.

 

e)         The Administrator shall provide a written determination as to whether the applicant independent outside testing laboratory meets the criteria in subsection (a).  If the applicant independent outside testing laboratory meets the criteria, the applicant will be licensed.

 

f)         If the Administrator determines that the applicant independent outside testing laboratory does not meet the criteria in subsection (a), the applicant may request a determination by the Board, in writing, within 21 days after the date of service of the Administrator's determination.

 

(Source:  Added at 44 Ill. Reg. 1961, effective December 31, 2019)

 

Section 1800.1920  Minimum Duties of an Independent Outside Testing Laboratory

 

a)         As a condition of licensure, a licensed independent outside testing laboratory is obligated to do the following:

 

1)         Provide to the Board 24 hours per day, seven days per week, support contacts whom Board staff and licensees may contact.

 

2)         Provide written reports, electronically in a format prescribed by the Administrator, regarding video gaming equipment testing and test results, which include, at a minimum:

 

A)        All testing performed;

 

B)        A description of the product tested;

 

C)        The unique identification code or signature, as approved by the Administrator, assigned to the product;

 

D)        A secure hash using a cryptographic function designated by the Administrator;

 

E)        A list of payables or other settings on the tested product, if applicable;

 

F)         A description of the modifications between the tested product and previous versions of the tested product, if applicable; and

 

G)        A list of components with which the product was verified to be compatible.

 

3)         Provide the Board and its staff with real-time online access to all video gaming equipment testing reports and documents via secure communication protocol and allow the Board to view updated reports of all pending, approved, obsolete and revoked (see Section 1800.1940(d)(5)) video gaming equipment.

 

4)         Disclose all locations of any laboratory or factory at which independent outside testing services may be conducted.  Upon request of the Board, the licensed independent outside testing laboratory must reimburse the Board for all travel costs, in accordance with 80 Ill. Adm. Code 2800 (CMS travel rules), incurred by up to two employees to inspect each laboratory or facility annually.

 

5)         Assign a unique identification code or signature, as approved by the Administrator, and a secure hash, to all Critical Program Storage Media, upon testing, using a function designated by the Administrator.

 

6)         Conduct its operations in accordance with Section 1800.210, as applicable.

 

b)         In addition to the violations listed in Section 1800.310, any violation of the requirements of subsection (a) may result in discipline in accordance with Section 1800.310.

 

c)         Any licensed independent outside testing laboratory that fails to maintain its accreditation in accordance with Section 1800.1910(a) shall have its license suspended until such time as the independent outside testing laboratory reobtains its qualifications.

 

(Source:  Added at 44 Ill. Reg. 1961, effective December 31, 2019)

 

Section 1800.1930  Testing of Video Gaming Equipment

 

The Administrator shall develop and publish technical standards against which all independent outside testing laboratories must test any video gaming equipment for compliance. The independent outside testing laboratory shall provide a report of the testing results to the Administrator. The report shall include the following:

 

a)         The extent to which the video gaming equipment meets the published technical standards;

 

b)         Whether the video gaming equipment meets the requirements of the Act and this Part; and

 

c)         Any additional information the Board needs in order to certify a video gaming terminal.

 

(Source:  Added at 44 Ill. Reg. 1961, effective December 31, 2019)

 

Section 1800.1940  Approval of Video Gaming Equipment

 

a)         Before being offered for play, all video gaming equipment must be approved by the Administrator.

 

b)         All video gaming equipment must be tested by an independent outside testing laboratory before the Administrator will review the video gaming equipment.

 

c)         Request for Approval

 

1)         Any licensee seeking approval of any piece of video gaming equipment must initiate its request by submitting that piece of video gaming equipment to a licensed independent outside testing laboratory. The licensee must cooperate with the licensed outside testing laboratory in providing all equipment and information needed for certification by the Board.

 

2)         Each licensed independent outside testing laboratory must notify the Administrator, upon receipt of any request to test video gaming equipment for approval in Illinois, in a format prescribed by the Administrator. The notification shall, at minimum:

 

A)        Identify the licensee seeking approval of the video gaming equipment;

 

B)        Describe the product for which approval is being sought;

 

C)        Indicate the date on which the request was received; and

 

D)        Include a unique identification code or signature, approved by the Administrator, for Critical Program Storage Media. For purposes of this subsection (c)(2)(D) and Section 1800.1930(a)(2), "Critical Program Storage Media" means any program storage media containing software that is involved in, or that significantly influences, the operation and calculation of game play, game display, game result determination, game accounting, revenue or security.

 

i)          Software in program storage media includes, but is not limited to:

 

•           game accounting software;

 

•           system software; and

 

•           peripheral firmware devices.

 

ii)         Critical Program Storage Media shall be verified utilizing an external third-party methodology approved by the Administrator.

 

iii)        Critical Program Storage Media may be required, as determined by the Administrator, to have security seals attached.

 

3)         The independent outside testing laboratory shall submit a written report in accordance with Section 1800.1920(a)(2) after completing the testing.

 

4)         The Administrator may request additional information from either the licensee or the licensed independent outside testing laboratory in making his or her determination under subsection (d)(2).

 

5)         The Administrator may require additional testing. Whether the additional testing is performed by the original independent outside testing laboratory or another independent outside testing laboratory is to be determined by the manufacturer. Additional testing will be required when the Administrator determines that it is necessary to ensure the integrity or proper functioning of any of the items listed in Section 1800.1930(a) because of the existence of one or more of the following:

 

A)        Inconclusive initial test results;

 

B)        A need to establish repeatability of test results; or

 

C)        A need to determine compatibility with components other than those tested.

 

d)         Approvals

 

1)         The Administrator shall review the request to approve video gaming equipment after the testing report and all other requested information has been received.

 

2)         In making the determination, the Administrator shall consider the following:

 

A)        The minimum criteria established in Section 15 of the Act;

 

B)        The extent to which the video gaming equipment meets the technical standards by which the independent outside testing laboratory must test; and

 

C)        Whether approving the video gaming equipment would jeopardize the integrity and security of video gaming in this State.

 

3)         If the video gaming equipment is approved, the Administrator shall make his or her approval available electronically.

 

4)         If approval of the video gaming equipment is denied, the Administrator shall notify the licensee in writing.  The Administrator's determination is a final Board order and is reviewable under the Administrative Review Law [735 ILCS 5/Art. III].

 

5)         The Administrator may revoke any approval pursuant to this section under the criteria of paragraph 2) of subsection d) of this section.

 

(Source:  Added at 44 Ill. Reg. 1961, effective December 31, 2019)

 

Section 1800.2010  In-location Progressive Games

 

All in-location progressive games shall be conducted in accordance with the requirements of this Subpart and with approval of the Administrator.

 

(Source:  Added at 44 Ill. Reg. 3205, effective February 7, 2020)

 

Section 1800.2020  Optional Nature of In-location Progressive Games

 

Nothing in the Act or this Part shall be construed to require a terminal operator or licensed video gaming location to offer or operate in-location progressive games.

 

(Source:  Added at 44 Ill. Reg. 3205, effective February 7, 2020)

 

Section 1800.2030  Procedures Within Licensed Video Gaming Locations

 

All in-location progressive games authorized by the Act shall operate within licensed video gaming locations and according to the following procedures:

 

a)         An in-location progressive game shall be conducted only within a single video gaming location.

 

b)         The location shall designate one or more of its owners or employees to implement the procedures set forth in this Section.  At least one designated individual shall be available at the licensed video gaming location at all times during which in-location progressive games are available for play.

 

c)         Upon the winning of a progressive jackpot of $1,200 or more, the following procedures shall be implemented:

 

1)         The video gaming terminal on which the progressive jackpot has been won shall immediately issue a voucher with the date, time, and amount won.  The voucher shall identify the terminal operator and specify a phone number that a patron can call for payment instructions.  The voucher shall also reflect the video gaming terminal on which the patron won the jackpot. The voucher shall not be redeemable at any location redemption kiosk.

 

2)         The video gaming terminal shall communicate that a progressive jackpot voucher has been printed to the central communication system, which shall then immediately notify the terminal operator.

 

3)         The designated owner or employee of the location shall require from the progressive jackpot winner identification in the form of one of the following:

 

A)        A driver's license or state photo identification card issued in the United States;

 

B)        Passport;

 

C)        Military ID issued by the United States;

 

D)        Photo identification cards issued by government entities located within the United States or U.S. territories and possessions; or

 

E)        Permanent residence card issued by the United States. 

 

d)         The designated owner or employee of the licensed video gaming location shall complete a progressive jackpot form previously provided to the location by the terminal operator.  Upon completion, the form shall be signed by the designated owner or employee and the progressive jackpot winner.  There shall be three copies of the signed progressive jackpot form, with one copy given to the progressive jackpot winner, one copy retained by the location, and one copy provided to the terminal operator.  It shall be the duty of all terminal operators that have entered into use agreements with locations where in-location progressive game play takes place to provide progressive jackpot forms to the locations before in-play progressive game play takes place.  Information to be provided by a progressive jackpot winner on a progressive jackpot form shall include the following:

 

1)         Name and address of the winning player;

 

2)         Identification number from the authorized forms of identification in subsection (c)(3);

 

3)         Date and time the progressive jackpot was won;

 

4)         Amount of the progressive jackpot;

 

5)         License number and location of the video gaming terminal on which the progressive jackpot was won; and

 

6)         Video gaming ticket number for which payment is made.

 

e)         In no event shall the winning jackpot, or any portion of the jackpot, be expressed as credits available for play on a video gaming terminal.

 

f)         Completed progressive jackpot forms, payment receipts or confirmations, progressive video gaming tickets, and other related documentation shall be retained for audit and inspection by the Board or its agents for 4 years for terminal operators, and one year for licensed video gaming locations, offering in-location progressive games.

 

(Source:  Added at 44 Ill. Reg. 3205, effective February 7, 2020)

 

Section 1800.2040  Payments of Progressive Jackpot Amount

 

a)         Any terminal operator offering in-location progressive games must make provisions to pay the jackpot winner within three days after the jackpot is won.

 

b)         After retaining all applicable withholdings, including those described in Section 1800.2050, from the progressive jackpot amount, a terminal operator shall pay the remainder of the progressive jackpot amount to the progressive jackpot winner.  Terminal operators must obtain prior approval from the Administrator for any method used to pay a progressive jackpot.

 

(Source:  Added at 44 Ill. Reg. 3205, effective February 7, 2020)

 

Section 1800.2050  Deductions from Progressive Jackpots

 

a)         Any terminal operator seeking to operate in-location progressive games shall first obtain from the Illinois Department of Healthcare and Family Services (HFS) all necessary permissions and certifications to conduct past-due child support withholdings in accordance with 89 Ill. Adm. Code 160.70(q), including credentials to access the Gaming Intercept Program Certification System (GIPCS) database.

 

b)         After being presented with a progressive jackpot voucher and a completed progressive jackpot form, the terminal operator shall:

 

1)         Confirm that the individual seeking to redeem the jackpot winnings is the same individual whose identifying information appears on the progressive jackpot form using any of the identification listed in Section 1800.2030(c);

 

2)         Complete all necessary tax forms;

 

3)         Access the GIPCS to determine if the progressive jackpot winner has past-due child support subject to withholding under 89 Ill. Adm. Code 160.70(q); and

 

4)         Withhold from the progressive jackpot winnings any past-due child support that the GIPCS indicates a jackpot winner may owe and remit the required amount to the HFS Division of Child Support Services (DCSS) in a manner prescribed by HFS.

 

c)         For the withholding of past-due child support, the terminal operator shall be entitled to an administrative fee of four percent of the total amount of cash winnings paid to the progressive jackpot winner, up to $150.

 

d)         Only mandatory taxes shall be withheld from the progressive jackpot before the amount due to DCSS and the administrative fee.  Voluntary taxes elected to be withheld by the progressive jackpot winner shall be deducted from the amount remaining due to the progressive jackpot winner, if any, after mandatory taxes and the amount due DCSS.  In no event shall the total amount withheld from the progressive jackpot, including the unpaid child support deduction, administrative fee and withheld taxes, exceed the total cash winnings of the progressive jackpot winner. 

 

e)         If there is a withholding for an amount due DCSS, the terminal operator shall provide the progressive jackpot winner with a Notice of Gaming Intercept provided by DCSS.

 

f)         A terminal operator that, in good faith, complies with the requirements of this Section shall not be further liable to the progressive jackpot winner or any other individual or entity, other than the Board, for disputed past-due child support amounts or withheld taxes.

 

(Source:  Added at 44 Ill. Reg. 3205, effective February 7, 2020)

 

Section 1800.2060  Progressive Jackpot Coordinator

 

a)         Each terminal operator offering in-location progressive games shall employ a progressive jackpot coordinator.  The terminal operator shall disclose the progressive jackpot coordinator to the Administrator.

 

b)         No terminal operator may offer in-location progressive games until a progressive jackpot coordinator has been disclosed and approved by the Administrator.

 

c)         The progressive jackpot coordinator will facilitate all aspects of the progressive jackpots, including, but not limited to:

 

1)         Coordinating all necessary approvals and credentials with HFS;

 

2)         Creating and distributing the progressive jackpot form;

 

3)         Coordinating with progressive jackpot winners to pay out the jackpot; and

 

4)         Ensuring that all payments and withholdings are conducted in accordance with all applicable laws and regulations, including this Part.

 

(Source:  Added at 44 Ill. Reg. 3205, effective February 7, 2020)

 

Section 1800.2070  Progressive Meters

 

a)         Any video gaming terminal featuring progressive jackpots that does not comply with the Act and this Section shall not be deployed or offered for patron play.  All provisions of this Section apply to both progressive meters within individual video gaming terminals and progressive meters within linked progressive jackpot controllers.

 

b)         No video gaming terminal progressive meter shall be manually set for any reason except as permitted or required by this Section.

 

c)         The central communications system shall provide for recording stored value.  Stored value is a progressive jackpot amount that has accumulated in the central communications system but has not been awarded as a prize.  Stored value amounts shall be associated with a specific, single video gaming location license.  Stored value shall not be transferrable between video gaming location licenses.

 

d)         Upon initial installation of a video gaming terminal at a location, all progressive meters shall be at their minimum default value, except in the case where the location has stored value.  Any stored value shall be applied to a newly installed video gaming terminal progressive meter to the maximum permitted by the video gaming terminal, and deducted from the stored value amount.

 

e)         Upon removal of a video gaming terminal from a location when that video gaming terminal has greater than the minimum default value on its progressive meters, that value shall be transferred to one or more video gaming terminal progressive meters at the same location.  If the amount of the progressive meter value exceeds the maximum capacity of all video gaming terminal progressive meters at the location, the remaining value shall be added to the location’s stored value amount.

 

f)         On at least a quarterly basis, each terminal operator shall identify any active video gaming locations it serves with a non-zero stored value.  For each identified location, the terminal operator shall transfer the maximum possible stored value to one or more video gaming terminal progressive meters at that location.

 

g)         A video gaming terminal progressive meter may only be manually set in the following circumstances:

 

1)         To restore a meter to its previous value prior to a system failure or maintenance which required clearing the meter;

 

2)         To move a meter value from a video gaming terminal which is being removed from a location to another video gaming terminal at the same location;

 

3)         To apply stored meter value to a video gaming terminal;

 

4)         To clear the progressive meter of any video gaming terminal being removed from a location; or

 

5)         For any other cause not expressly prohibited by this Section after prior approval by the Administrator.

 

(Source:  Added at 46 Ill. Reg. 18049, effective October 31, 2022)

 

Section 1800.2110  Statement of Purpose

 

The purpose of this Subpart is to implement the underage gambling provisions of Section 79.5 of the Act, which directs the Board to establish a policy and standards for compliance operations to investigate whether a licensed establishment, licensed fraternal establishment, licensed veterans establishment, or licensed truck stop establishment is:

 

a)         permitting any person under the age of 21 years to use or play a video gaming terminal in violation of the Act; or

 

b)         furnishing alcoholic liquor to persons under 21 years of age in violation of the Liquor Control Act of 1934 [235 ILCS 5].

 

(Source:  Added at 44 Ill. Reg. 11134, effective June 22, 2020)

 

Section 1800.2120  Program Considerations

 

In implementing the provisions of this Subpart, Board investigators shall do the following:

 

a)         Undertake underage video gaming compliance checks with the ultimate goal of visiting all licensed video gaming locations in the State according to an annualized schedule that ensures random visitations.

 

b)         Initiate unscheduled operations based upon a review of citizen reports or police complaints.  Summary reports shall articulate the basis of unscheduled operations.

 

c)         Use operational plans and operational checklists.

 

d)         Seek legal advice as appropriate from the Board's general counsel regarding the conduct and pattern of compliance checks, evidence handling, arrests, confidential source criteria, and reporting.

 

(Source:  Added at 44 Ill. Reg. 11134, effective June 22, 2020)

 

Section 1800.2130  Utilization of Confidential Sources

 

Confidential sources may be used to enforce the provisions of this Subpart.  The use of confidential sources shall comply with the following:

 

a)         Confidential sources shall be of good character.  An independent background check on each confidential source shall verify his or her official birth record, lack of criminal history, and acceptable driving record.

 

b)         Confidential sources shall be either 18 or 19 years of age.  They shall not alter their appearance, shall not have beards or moustaches or use any form of disguises, and shall dress in a manner appropriate to their age group.

 

c)         A background check shall be conducted on each confidential source. 

 

d)         Each confidential source shall sign a Youth Participation Consent and Underage Gambling Participant Acknowledgment form as specified in Exhibits A and B.  A Board investigator shall ascertain that these forms are understood by the confidential source.

 

e)         A photograph shall be taken of each confidential source to establish physical appearance independent of witness testimony.  These photographs shall be processed and secured for evidence.

 

f)         A confidential source shall be searched and allowed to carry only a valid State identification issued by the Office of the Secretary of State or no identification.  Under no circumstances shall fraudulent or fictitious identification cards be used by a confidential source.

 

g)         A confidential source shall agree to make all reasonable efforts to be available for hearings or court proceedings and, if possible, to wear the same clothing at these hearings or court proceedings as on the date of the compliance check operation in which he or she participated.

 

h)         A confidential source shall receive an orientation on utilization of a video gaming terminal.

 

i)          A confidential source shall receive orientation training on entrapment issues.  He or she shall be admonished to act as follows while engaged in a compliance check operation:

 

A)        Carry only a valid State identification issued by the Secretary of State or no identification. 

 

B)        Carry no fraudulent or fictitious identification cards.

 

C)        If asked for identification, present it to the requesting employee, manager or owner of the licensed video gaming location. 

 

D)        If asked for age after presentation of identification, state that his or her age is that listed on the identification. 

 

E)        If asked for age without being asked to present identification, respond truthfully.

 

F)         Limit conversation so as not to persuade or pressure the licensed video gaming location. 

 

j)          All service as a confidential source under this Subpart shall be strictly voluntary and without any coercion.

 

(Source:  Added at 44 Ill. Reg. 11134, effective June 22, 2020)

 

Section 1800.2140  Provision of Funds

 

Confidential sources shall be provided with official advanced funds issued in compliance with the Illinois State Police policy for Official Advanced Funds (OPS-44) or other funds made available to the Board from State appropriations, State or federal agency grants, or other funding sources.  Funding sources may set specific conditions for the expenditure and accounting of funds received by the Board under this Section.  The Board shall ensure that all conditions of accounting and restrictions on expenditures established by a funding source are met before authorizing any expenditure or disbursement of the funds.  All funds designated to be expended for an underage compliance check detail shall adhere to the following requirements:

 

a)         The funds shall be photocopied in advance and kept with the case file.

 

b)         The funds shall not be expended for food of any type.

 

c)         Purchases of alcohol, for covert use, shall be pre-approved by the detail supervisor.

 

d)         Confidential source payment shall be pre-approved by the detail supervisor.

 

e)         Expenditure of funds by a confidential source shall be pre-approved by the detail supervisor.

 

f)         Funds expended for surveillance shall be pre-approved by the detail supervisor.

 

(Source:  Added at 44 Ill. Reg. 11134, effective June 22, 2020)

 

Section 1800.2150  Operational Procedures

 

a)         A compliance check operation plan under this Subpart shall be submitted prior to each detail and shall be approved by the Board investigator serving as operations officer prior to implementation.

 

b)         When practicable, operation compliance checks shall be conducted outside of the peak hours of business of a licensed video gaming location.

 

c)         A photograph shall be taken of the confidential source on each day or night of the compliance check operation showing his or her appearance and dress.  This photograph shall be available for any type of hearing relating to the operation, along with an investigator who either took the photograph or observed the photograph being taken.

 

d)         A Youth Participant Consent Form and Underage Gambling Participant Acknowledgment Form in substantially the form set forth in Exhibits A and B shall be signed by the confidential source and kept on file by the Board before the confidential source begins participation in any compliance check operation.  An investigator shall ensure that the confidential source understands the instructions and parameters of both forms.

 

e)         Before a compliance check operation begins, an investigator shall check the confidential source to ensure that he or she possesses only valid identification.  A photocopy of the valid identification shall be made for later possible presentation at a hearing.

 

f)         Board investigators shall be assigned to each detail team.  The roles of the investigators shall be as follows:

 

1)         Detail supervisor.  For purposes of this Subpart U, "detail supervisor" means the highest ranking officer in charge of the underage compliance operation.

 

2)         Covert investigator.

 

3)         Investigator/handler who accompanies the confidential source.

 

4)         Contact investigator whose assignments shall be to identify and confront the employee of the licensed video gaming establishment responsible for monitoring the video gaming terminals.

 

5)         Additional investigators to serve in a support capacity at the discretion of the operations officer.

 

g)         The investigator/handler shall direct the confidential source to enter the licensed video gaming location after surveillance positions have been taken up by covert investigators.

 

h)         A confidential source shall enter a licensed video gaming location alone and proceed directly to the video gaming terminals.

 

i)          The covert investigators shall always conduct observation inside the licensed video gaming location when the confidential source is attempting to gamble.  They shall enter the licensed video gaming location alone and shall not be in close proximity to the confidential source

 

j)          The confidential source shall sit at a video gaming terminal and insert a pre-determined dollar amount of funds into the terminal.  The confidential source shall play the minimum bet per hand for a pre-determined number of plays.  After these plays have been completed, the confidential source shall cease play and obtain a voucher from the video gaming terminal.  The confidential source shall then exit the licensed video gaming location, make contact with the Board investigators, and give the voucher to the investigators.

 

k)         The investigators and confidential source shall immediately record details of the underage compliance check on an Underage Gambling Field Notes form that shall be retained by the Board and uploaded to a report.

 

l)          If a violation is found as a result of an underage compliance check operation, an investigator shall identify himself or herself to the on-site manager of the licensed video gaming location, explain to him or her the nature of the violation, ascertain the identity of the employee responsible for monitoring the video gaming terminals, and obtain licensee information, photographs, and all other necessary information.

 

m)        If no violation is observed, the licensed video gaming location shall be notified within 30 days after the compliance operation that no violation has been found.

 

(Source:  Added at 44 Ill. Reg. 11134, effective June 22, 2020)

 

Section 1800.2160  Reporting and Evidence

 

a)         A separate report shall be generated for each licensed video gaming location found to be in violation under this Subpart.  This report shall set forth details of the compliance operation and specify whether the compliance operation was scheduled or based on a citizen report or police complaint.  It shall include, at a minimum, information recorded from the confidential source, investigator/handler, and detail supervisor.  In addition, all necessary paperwork shall be completed, including documentation of the transfer, receipt and expenditure of funds provided under Section 1800.2140. 

 

b)         Evidence generated by a compliance check operation that results in a finding of violation shall be marked, transported, copied and secured at headquarters by the designated investigator.

 

(Source:  Added at 44 Ill. Reg. 11134, effective June 22, 2020)

 

Section 1800.2170  Cooperation with Local law Enforcement Agencies

 

All Board investigators engaging in underage compliance check operations under this Subpart shall comply with the directive in Section 79 of the Act to exercise their powers, to the fullest extent practicable, in cooperation with the local police department of the applicable municipality or, if these powers are exercised outside the boundaries of an incorporated municipality or within a municipality that does not have its own police department, in cooperation with the police department whose jurisdiction encompasses the applicable municipality.

 

(Source:  Added at 44 Ill. Reg. 11134, effective June 22, 2020)

Section 1800.EXHIBIT A   Youth Participant Consent Form

 

Name
Date of birth
Date of birth documentation:  (require youth participant to produce and attach a copy of some legal proof of age)
Birth certificate					passport		driver's license

 

Instructions:  Carefully read each line below and initial each line.  Please ask questions about anything you do not completely understand.  Your signature indicates that you understand and are willing to abide by all the terms of this agreement.

 

1.         I understand that the purpose of the compliance check operation is to assess the compliance with gambling laws by attempting to gamble at licensed video gaming locations by playing video gaming terminals.

 

2.         I understand and agree that I am not to pursue or participate in any operation relating to alleged gambling violations unless I am under the direct supervision of a law enforcement officer or licensing inspection official.

 

3.         I understand that specific information about the unannounced compliance checks is confidential and agree that I will not discuss plans, dates, times, outcomes, or details of specific inspections, including but not limited to licensed video gaming locations, nor the identify or description of law enforcement personnel working in plain clothes, unless directed by officials of the Illinois Gaming Board or pursuant to legal proceedings.

 

4.         I agree not to violate any laws or commit any crimes while participating in unannounced compliance checks.

 

5.         I understand that if I violate any laws, except the one from which I am granted immunity, I may be responsible for those violations.

 

6.         I agree to relinquish all gambling vouchers generated as a result of these compliance checks and all unused money to the detail supervisor.

 

7.         I understand that the objective of compliance checks is to test compliance.  A successful compliance check is one in which the licensed video gaming location refuses to allow me to participate in gambling, acting in compliance with the law.  I must not pressure or coerce an employee, manager or owner of a licensed video gaming location into allowing me to gamble at the location.

 

8.         I agree to be completely truthful when reporting what happened during each compliance check.

 

9.         I have participated in orientation provided by the Illinois Gaming Board and I agree to adhere to the protocol explained in that orientation.

 

Youth's name (print)
Youth's signature
Date
Witness
(Illinois Gaming Board)
Date

 

(Source:  Added at 44 Ill. Reg. 11134, effective June 22, 2020)

 

Section 1800.EXHIBIT B   Underage Gambling Participant Acknowledgement

 

Name of participant
Date of birth
Driver's license or Illinois Identification Card #
Address
Telephone number

 

INSTRUCTIONS

 

1.         Do not consume any alcoholic liquor.

 

2.         Possess only valid identification.

 

3.         If you are asked for identification (ID), show it.

 

4.         If an employee, manager or owner of the location asks your age after you have shown your ID, point to the ID and say, "it's right there" or state your actual age.

 

5.         If an employee, manager or owner of the location does not ask for your ID but merely asks how old you are, either hand the clerk your ID and say, "it's right there" or state your actual age.

 

6.         Do not argue or ask to gamble.  Once you have been refused service, the transaction is complete.

 

7.         After exiting an establishment with a voucher from a video gaming terminal, transfer the voucher to the designated officer, following procedures established to ensure both proper handling of evidence and confidentiality.

 

8.         Immediately record all details of each transaction.

 

9.        In no way does your participation in this operation vest in you any authority to perform the duties of a police officer under the laws of the State of Illinois.

 

10.       Your signature on this document verifies that you are participating in this operation of your own free will and you are not participating in this operation as a result of any threat made against you or others.

 

I have read and understand the above instructions.

 

Signature of Participant
Date

 

(Source:  Added at 44 Ill. Reg. 11134, effective June 22, 2020)