At Stake

April 22, 2016Newsletters

The Illinois Gaming Board (IGB) held its monthly meeting on Thursday, April 21 in Chicago. Below is a summary of both the Riverboat and Video Gaming Meetings.

Riverboat Meeting

The Chairman’s opening remarks included a thank you to staff members for their continuing hard work during the budget impasse. As a result of the budget issues, the Chairman stated that the June meeting would be held in Chicago to limit staff travel expenses during this time. Additionally, the Chairman acknowledged that the Riverboat Self-Exclusion Program has raised almost $2 million in charitable donations since its inception. He stated that although there is currently no comparable program in VGTs, the Board expects to implement one in the future that, at a minimum, will focus on training and education.

The Administrator, during his opening comments, took time to thank Member Robinson, Casino Gaming Association, Casino General Managers and staff for their availability and cooperation during the MBE/WBE studies being conducted. He also made mention of the Chicago Minority Job Fair that was being held at Navy Pier on April 21 and encouraged Casino representatives to attend. The Administrator also stated that the July monthly meetings have been changed to Tuesday, July 19 for the closed session and Wednesday, July 20 for the open session.

The Board approved Patrick Delhougne, as a Key Person and Board of Directors for Midwest Gaming and Entertainment, LLC- CVG-Chicago Gaming, LLC.

As for occupational licenses, the Board approved the Level 1 Occupational License of Donald J. Snyder, Table Games Manager for Rock Island Boatworks d/b/a Jumers Casino and Hotel. Additional approvals included 82 Level 2 occupational licenses and 198 Level 3 occupational licenses. The Board denied three occupational licenses and revoked four occupational licenses: three for alleged theft and one revoked for allegedly failing to update criminal history.

There were also two requests for hearings that were discussed. The staff recommended granting Robert Mulvey a request for hearing and the Chairman stated that he personally believed that Mr. Mulvey had paid his debt to society and served his time. The motion, however, was ultimately denied by a 4-1 vote. Secondly, Michelle Milhouse was denied her request for a hearing.

Video Gaming Meeting

The Administrator reported that there are 5,376 locations that are operational with a total of 22,915 VGTs. The Administrator also extended his gratitude for those that were able to make it to the Terminal Operator meeting on April 4, 2016, regarding the SASS to G2S conversion. He mentioned that Scientific Games shared a presentation during that meeting and that the intent is to show that same presentation at the June meeting. He also made note that he has requested help from the industry to search for a solution to problem gambling and the self-exclusion list and that he would like ideas from the industry leaders by May 1.

There was one speaker during the public commentary portion of the meeting. Mr. Ralph Dillon discussed a pending truck stop location application and his opposition to its being licensed. He claims that the facility in question is currently a “mom-and-pop” gas station with .6 acres of land in a residential area that has received approval for acquiring the surrounding lots making it a three-acre truck stop for the sole purpose of acquiring VGTs.

The Board’s legal staff presented proposed amendment to Rules 110 and 430 to expand the definition of PSICs. The intent of the amendment would be to include people who receive a portion of net terminal income pursuant to the terms of a contractual agreement. It’s necessary because their stake in net terminal income does allow them to assert significant influence and control over video gaming operations. As PSICs, this category of persons would be required to comply with more extensive disclosure requirements in connection to that location and terminal operator renewals and would be subject to a continuing duty to report information.

The following terminal operators had their licenses renewed:

  • Advantage Gaming, LLC
  • Da Route LLC
  • Gaming & Entertainment Management-Illinois LLC
  • Grand River Jackpot, LLC
  • Great Lakes Vending Corporation
  • Illinois Operators, Inc.
  • Lucky Lincoln Gaming, LLC
  • Midwest Electronics Gaming, LLC
  • Schaffner Gaming LLC
  • Sinbad's Castle Arcade, Ltd.
  • Stellar Gaming LLC
  • T's Gaming, LLC
  • Velasquez Gaming, LLC

DSG Amusement, Ltd. and Tangent Gaming Capital, LLC both had their renewals tabled until outstanding information and documentation has been provided.

The Board approved 65 terminal handler licenses and three terminal technician licenses. It also denied five applications.

The Board approved 185 location licenses and denied the following 24 locations:

  1. RJ's Pub & Grill, Inc.
  2. Elvamann LLC
  3. Massonic Enterprises Inc.
  4. Cooters 2 LLC
  5. Red Star Combat LLC
  6. Twisted Spoke Saloon Corp.
  7. Marcus Lee Miller d/b/a Miller’s Pub
  8. Corona’s Mexican Restaurant Inc.
  9. San Bernardo Inc.
  10. 123 Inc.
  11. Johnny’s Pizza, Inc.
  12. Short Liquors Inc.
  13. Fat Cat’s Inc.
  14. GDAKD, Inc.
  15. Marshall International LLC
  16. MVP’s, Ltd.
  17. The Last Roundup Bar & Grill Limited
  18. Club Sugar Hill, Inc.
  19. Thomas Davino Enterprises, Inc.
  20. Cornstar Inc.
  21. Towne Pub, Inc.
  22. KLM Enterprises, Inc.
  23. Chicago Truth Inc.
  24. Triple Location LLC

The Board denied renewing the licenses of two locations, Romeo Lounge & Bar Inc. and CR Thirteen Peoria Heights LLC, and denied the hearing request of Keith Koga.

The Board granted requests to reapply for Angela Perry and Marlon Palmer and denied the request to reapply for Cermak Beach, LTD.

The Board issued the following disciplinary complaints:

  • Bally Gaming Inc. – $25,000 fine for allegedly shipping unapproved software to Illinois.
  • Chad Hutchins – Revocation of terminal handler license for allegedly failing to update application with criminal arrest.
  • Stacy Lilly – Revocation of terminal handler license for allegedly failing to update application with criminal arrest.
  • MIH Enterprises, Inc. – Revocation of location license for allegedly failing to pay an outstanding tax liability.
  • MJAM Enterprises Inc. – Revocation of location license for allegedly failing to pay an outstanding tax liability.
  • Splash-N-Go Pub Inc. – Revocation of a location license for allegedly allowing illegal gambling on their premises.

The Board rescinded the disciplinary complaint against Fraternal Order of Eagles Granite City, Aerie #1126 and granted the authority to the Administrator to enter into settlement agreements with the following:

  • Tavern on 60, Inc. – $5,000 settlement.
  • Chicago Gaming Distributors, LLC – agreed to relinquish their license.
  • RSB Fuels Inc. – $15,000 settlement.
  • Hyperactive Gaming, LLC – $300,000 settlement and the relinquishment of a location.
  • Jacob’s Bar, Inc. – $5,000 settlement.

The meeting was then adjourned.

Please call or email with any questions.

Donna B. More
Partner, Fox Rothschild
[email protected]

Bill Bogot
Partner, Fox Rothschild
[email protected]