United States: At Stake - December 23, 2015

Happy Holidays!

The Illinois Gaming Board (IGB) held its monthly meeting on Wednesday, December 16. Below is a summary of both the Riverboat and Video Gaming Meetings held that day.

Riverboat Meeting

The Chairman declined to make any opening remarks during this meeting and deferred opening comments to the Administrator who thanked the hosts and participants of the Diversity Business Symposium that was held on November 17 at the Par-a-Dice Hotel in East Peoria.

During the public comments section, three individuals addressed the Board.

  1. Bill Hayles of Penn National Gaming, Inc., as the newly approved general manager of Harrah's Aurora and Harrah's Joliet, introduced himself and spoke about his credentials and his work history in the casino and hospitality industries.
  2. Cori Rutherford, the vice president of marketing for the Par-a-Dice Hotel and Casino, thanked everyone involved in the Diversity Business Symposium including the vendors, participants and Administrator Ostrowski. According to Ms. Rutherford, all casinos were represented and 62 vendors participated. She continued by describing the day's events. The symposium as a whole was very successful; Par-a-Dice has signed five new vendors as a result and they will reach out to other casinos for similar information.
  3. Ron Neumann addressed the Board regarding an incident at the Grand Victoria Casino Elgin in which he has been prohibited from playing blackjack. According to Mr. Neumann, he was cashed out and asked to leave the premises after playing blackjack for approximately 13 minutes. Allegedly Mr. Neumann was told that he could no longer play blackjack at the casino because he had been deemed an "advantaged gambler" after hitting a "winning streak." The casino, however, permitted him to participate in an array of other games such as slots or craps.

The Chairman provided the 2016 Board Meeting dates and indicated that they would be provided to the public on the IGB website. All meetings will be held in Chicago except for the June and November meetings, which will be held in Springfield.

Owner and Supplier licensee items included: 1) approval of Anton D. Nikodemus as Executive Committee Member and Key Person of Elgin Riverboat Resort d/b/a Grand Victoria Casino; 2) discussion of MGM's REIT Transaction and Corporate Reorganization in which the parties are negotiating financial investments in a real estate matter – this matter was not up for any decision by the Board at this time; 3) granting the surrender of GTECH USA, LLC's license; 4) granting Patriot Gaming & Electronics, Inc. supplier renewal license; 5) approval of Mark Nocco and Mark Komorowski as Key Persons for Patriot Gaming & Electronics, Inc.

Occupational Licenses

The Board approved 52 Level-2 and 126 Level-3 occupational licenses without issuing any denials. The following two individuals were denied Requests for Hearings after previously being denied occupational licenses, allegedly for not meeting the requirements for such: John Constantino and Travis Thomas.

The Board moved to issue the following four disciplinary complaints against the following occupational licensees:

  1. Anthony Vick's Level-3 – license shall be revoked due to the alleged conduct that resulted in being terminated from Harrah's Joliet;
  2. Patrick Wadlow – shall be fined $500 for alleged failure to inform the IGB about an arrest and conviction. Comments were made to remind the industry that any interaction with law enforcement should be disclosed to the Board and the application should be updated when applicable;
  3. Sonya Dedo – license shall be revoked due to her alleged involvement in the theft of a coworker's personal items on the riverboat property;
  4. Iris Ignacio – license shall be suspended for 30 days due to her alleged failure to update her criminal history and violating the Board rules.

A Final Board Order was entered affirming the Administrative Law Judge's order against Daniel Palmer resulting in a $500 fine.

Chairman Tracy discussed the Delaware North, Rock Island Casino litigation, which concerns a dispute as to who owes the state taxes from before Delaware North's acquisition of the casino.

Video Gaming Meeting

During the Chairman's comments he addressed two specific areas: 1) location applications, and 2) ideas for a video gaming self-exclusion list.

Within the video gaming location application, specifically Section 4- Questions/Answers, Subsection Legal, Tax, Licensing Information, Question A, "Has the Applicant ever been convicted of a felony offense?" and Question B "Has the Applicant ever been convicted of a crime involving dishonesty, gambling and/or moral turpitude?" According to the Chairman, these questions are asking about both the corporation and its shareholders and as a result answers should be yes if either have a qualifying history. Please note, however, that this interpretation is a departure from the IGB's prior interpretation and that the Video Gaming Location application specifically distinguishes between Applicant and Owners.

The Chairman acknowledged that the Board is currently researching the implementation of a Self-Exclusion List for video gaming. The Board has found this very challenging and frustrating, specifically because nowhere in the United States does any jurisdiction implement such a program for video gaming or similar models outside of casinos. The Chairman discussed Sweden's current policy and described it as very restrictive due to its limiting playing to Swedish residents only, decreasing revenue by upwards of 30 percent and raising privacy concerns. Also of note is Canada's policy that uses timed and playing limits in which regulation would be difficult to implement in Illinois. While the Board is currently in the research phase, the plan is to approach the industry for ideas and solutions. The Chairman mentioned the industry's desire for player rewards cards and identified this as a potential solution that will require more thought and research.

The Administrator acknowledged the importance of working with the industry to come up with a solution for a video gaming Self- Exclusion List and reported that there are 5,216 statewide locations in operation with a total of 21,984 VGTs.

There was one speaker during the public commentary portion of the meeting. Kathy Gilroy requested that the Board further address so-called "casino malls," specifically stating that there needs to be a definition of what constitutes a "casino mall." According to Ms. Gilroy, Villa Park already has a "casino mall" with three licensed locations within one strip mall. She also raised issues regarding allowing licensed locations to have "coin pusher games," which according to her research are illegal gambling devices. At the conclusion of her comments, Chairman Tracy asked Ms. Gilroy to write to her state representative or state senator regarding getting a requirement for the Video Gaming Act to prohibit "casino malls."

Next, the IGB proposed new regulations. IGB staff has proposed an amendment to delegate to Administrator Ostrowski the authority to grant surrenders of all licenses under the Video Gaming Act if presented with a written request and there is no objection. This would be similar to the current procedures of withdrawing a license.

The Board approved the initial terminal operator license of Springfield Gaming, LLC and the initial supplier license of Illinois Rewards, Inc. and renewed IGT's manufacturer and distributor license.

The Board approved 56 terminal handler licenses, two terminal technician licenses and it denied three handler licenses: Goran Illijevski, Marc Lang and Mark Daniel Sullivan.

Video Gaming Location Licensee Items:

The Board approved 116 location licenses, denied the request to reapply to Springfield Pub Inc. d/b/a The Dublin Pub and denied the following 16 location licenses:

  • Pete's Bar and Grill, Inc.
  • Hodge Podge Lodge, LLC
  • Barb & Ray Inc.
  • D&W And Associates LLC
  • O'Fallon Restaurant Inc.
  • Tuckaway Development, LLC
  • Virden Columbus Home Association d/b/a Virden Columbus Home Association KC Council #2321
  • PHAT & SHAI INC.
  • LADY NAN, INC.
  • ADAM BIESEMEYER d/b/a Deb's Red Rose
  • ZAJAS, INCORPORATED
  • Shawn's Corral, Inc.
  • Lakeside Bar & Grill
  • Springfield Gas and Wash
  • Smitty's Tap Inc.

The Board denied a total of 10 hearing requests based on previous location application denials, allegedly according to the Board for failing to show a prima facie case:

  • Blue Ridge Club, Inc.
  • Terrence Maloney
  • Wine Company, LLC. d/b/a Roundhouse Wine Company
  • Dino's Den Inc.
  • Fitz Inn Inc.
  • Jose Garza Jr. d/b/a Perla's
  • The Roost of Fithian, Inc.
  • Terry Wray d/b/a Towne Lounge
  • Norbert J. Goetten d/b/a Norby's Slots
  • George Anderson Investments, L.L.C. d/b/a Comeaux Daiquiri Depot

The Board rescinded the denial notice of Roni L. Meyers d/b/a Happy Holler and placed this location back to pending status.

Disciplinary Action

The IGB issued disciplinary complaints and revocation of licenses to the following three Terminal Handlers: David Schmitt was fined $500 for allegedly not updating his application regarding his criminal history; Joseph Pirelli fined $500 for allegedly not updating his application regarding his criminal history; and Bryan Burkhardt had his licensed revoked for statutory ineligibility due to his conviction of a prohibitive crime.

The IGB issued disciplinary complaints to the following locations: Al's Bella Vista, Inc. was fined $10,000 for alleged use of tip boards [illegal gambling]; Beavers Tap Inc. d/b/a Tekes Bar & Grill, Carbo's Sports Bar, Inc. and Harbo's Sports Bar were each fined $15,000 for alleged illegal sports gambling. Disciplinary complaints were also issued seeking revocation of the following location licenses: Christopher P. Sipula d/b/a. Sipper's Too Bar; Grill Machelle C. Senica d/b/a Machelle's Back Street; and, The 50 Yard Line. Member Gould commented that the Board takes illegal gambling very seriously and will make sure the message is heard and understood clearly. Additionally, Member Robinson directed her comment to Ms. Gilroy, of the public comments section, and acknowledged that they take illegal gambling very seriously.

The IGB next rescinded the disciplinary complaint it filed months ago for a $100,000 fine against terminal operator Gold Rush. The IGB's general counsel stated that staff felt comfortable that Gold Rush has confirmed its disassociation that the IGB required between Gold Rush and a location "finder."

Administrative Law Judge Recommendations

A Final Board Order was entered in which the Board rejected the administrative law judge's recommendation in the In re M3 Technologies, Inc. disciplinary action. In that case, in which the IGB sought to impose a $5,000 fine for alleged tardy renewal filings, the administrative law judge after a trial on the merits recommended that the IGB not impose any fine whatsoever, or at least "substantially" reduce the $5,000 fine. According to the administrative law judge, M3 Technologies' alleged tardy filings did not discredit the gaming industry, nor did it constitute just cause to impose discipline. The IGB thereafter instead reduced the fine from $5,000 to $4,000. M3 Technologies can appeal the IGB's rejection of the administrative law judge's recommendation on administrative review.

Lastly, a Final Board Order was entered in which the Board rejected the administrative law judge's recommended decision to license 27 of what the IGB refers to as "non-traditional" video gaming location applicants. The IGB has yet to define what a non-traditional location is, an issue of concern with the administrative law judge. The administrative law judge held that the IGB did not have discretion to deny such location applicants and there is nothing in the Video Gaming Act or legislative history that indicates any intent by the legislature to deny video gaming location licenses to so-called non-traditional establishments. Likely, an appeal of the IGB's rejection of the administrative law judge's recommendation will ensue. Despite the administrative law judge's decision, Chairman Tracy commented that just because a location has a license to pour or otherwise serve alcohol, the Board does not necessarily consider such a pouring location, specifically referencing packaged goods and self-service clubs.

That's it for this month's IGB meeting. Have a happy holiday and New Year.

Sincerely,

Donna and Bill

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Similar Articles
Relevancy Powered by MondaqAI
Fox Rothschild LLP
Fox Rothschild LLP
Fox Rothschild LLP
Fox Rothschild LLP
Fox Rothschild LLP
 
In association with
Related Topics
 
Similar Articles
Relevancy Powered by MondaqAI
Fox Rothschild LLP
Fox Rothschild LLP
Fox Rothschild LLP
Fox Rothschild LLP
Fox Rothschild LLP
Related Articles
 
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions