I’ll call the April 28, 2022 meeting of the Illinois Gaming Board to order
and I'm going to ask the board secretary to take the roll, please.
Chairman Schmadeke? Here. Member Bell.
Here. Member Hayden? Here.
Thank you and, uh, member Garcia was unable to attend, but we do have a quorum present.
So, with that, we'll begin the meeting.
Member Hayden, I believe you have a motion to make.
Yes, I do, I move that the board go into closed session, pursuant to section 2(c), paragraphs 4, 11, 21, and 36
pf the open meetings act and section 6(d) of the Illinois gambling act
to discuss items on the closed session agenda
relating to evidence received per the board’s adjudicatory authority,
pending litigation, the review of closed session minutes of the regular board meeting held on March, 10, 2022, and to deliberate decisions of the Illinois gaming board in which there is discussed personal, commercial, financial,
or other information obtained from any source that is privileged,
Proprietary, confidential, or a trade secret,
or information specifically exempted from disclosure by federal or state law.
Thank you. Is there a second?
I second that motion. Thank you.
I'll ask the board secretary to initiate a roll call vote on member Hayden’s motion to go into closed session.
Chairman Schmadeke? Yes.
Member Bell? Yes. One more time for me.
Yes. Thank you. Member Hayden?
Sorry, one more time. Yes. Thank you.
Thank you and that motion carries. We will convene in closed session.
It is our goal to reconvene in open session at 10:00 am which we will do, uh, either at 10 or soon thereafter as our business allows. With that, we stand temporarily adjourned for closed session. Thank you.
We will reconvene the Illinois gaming board in open session and I'll ask the board secretary to conduct the roll again at this time.
Chairman Schmadeke? Here.
Member Bell? Here.
Member Hayden?
Here. Thank you, and we continue to have a quorum. The 1st item on the agenda is approval of the open session minutes from the board's regular meeting held on March 10, 2022.
Are there any comments or questions regarding those minutes?
Hearing none, I'll ask the board secretary to initiate a roll call on the approval of those minutes with those approving them saying yes, those disapproving saying no.
Chairman Schmadeke? Yes.
Member Bell? Yes. Member Hayden?
Yes. Thank you, and those minutes are approved.
Are there any comments from the board at this time?
Hearing none, we’ll recognize the administrator, Mr. Fruchter, for his report.
Thank you, Mr. chairman, members of the board. Good morning. Good morning to everyone who is joining us via this livestream.
I'm going to start today's announcements
with news about exciting organizational and staff changes within the gaming board.
First, effective May 1,
IGB general couonsel Agostino Lorenzini
will transition into the new role of senior special advisor.
Deputy general counsel Dan Gerber will transition and become general counsel.
Assistant general counsel Rick Harlovic will become deputy general counsel and continue his role as ethics officer.
Second, the IGB is announcing today the establishment of a new unit that will be known as the gaming controls and technology division.
Once fully staffed and operational, gaming controls and technology will coordinate,
consolidate, streamline, and further enhance agency capacity, expertise and functionality
in several areas, including internal control systems and compliance,
certification and testing of gaming equipment, oversight and coordination of gaming software and technology, the self-exclusion program and responsible gambling programs and initiatives
and related matters of licensing compliance across all existing legal gaming disciplines in Illinois, casino gambling, sports wagering, video gaming,
plus any future expanded jurisdiction or gaming disciplines.
Jared Smith, our current director of sports wagering, and an assistant general counsel will lead the new division as a deputy administrator and continue his roles overseeing sports wagering.
Please join me in congratulating each of them on their new positions. We believe that these moves will build upon the agency’s recent accomplishments and further enhance our ability
to execute efficiently and effectively as we regulate gambling in Illinois.
Finally, and this is a bittersweet announcement, but today's proceedings are the final gaming board meeting for someone who's been a key fixture at the agency for many years and a key contributor at the agency for many years.
After 42 years of distinguished public service to the people of Illinois,
including 30 at the Illinois State police, I'm sorry, including 30 years at the gaming board, Scott Deubel, the long-serving deputy administrator for investigations will retire from the gaming board effective May 13,
2022. And some of you may know, Scott began his public service career in 1980 when he graduated from the police academy to join the Illinois State police.
Scott was detailed to the IGB in 1992
working in casino field offices and investigations.
He rose to the rank of lieutenant before retiring from the state police
after which he continued his work at the IGB
leading our investigation squad, has played a key role
through many challenging, complex, and high profile matters over the years.
Most recently being a key contributor to the many investigations and matters that were mandated and necessary due to the gaming expansion law passed in 2019.
I first met Scott in connection with the background investigation from my own appointment to the IGB
and I've since come to respect and value him as a trusted colleague,
advisor, and dedicated public servant. We'll certainly miss Scott, but we wish him all the best in his next adventures. So I ask everyone to please join me in congratulating Scott on a job very well done and a retirement very well earned.
Upon Scott's retirement, captain Sean Brannon will assume command of investigations
along with his existing responsibilities as deputy administrator for enforcement
and his role as the commander of the ISP statewide gaming command.
A quick word about video gaming rules 250(p) and 270(f).
At the January 2022 board meeting, I announced that the IGB would begin emphasizing compliance with video gaming rules 250 and 270
which obligates both terminal operators and video gaming locations to remove inoperable or deactivated VGTs
within 72 hours after the machines have become inoperable.
I am pleased to report that since the January announcement,
Gaming board video gaming staff and licensed terminal operators
have cooperated and communicated, often on a weekly basis,
to ensure that VGTs are either brought back into service
or are removed from licensed locations within 72 hours of inoperability.
These collaborative efforts have been successful as more than 75% of inoperable VGTs have been brought into compliance within the 72 hour rules since the January board meeting and the start of this initiative.
As I discussed at the January meeting, we recognize that the new focus on rules 250(p) and 270(f) constituted a change in the agency's programmatic goals and enforcement standards.
So, IGB staff intentionally used this opportunity as a means for dialogue and communication with the video gaming industry
to encourage increased awareness and compliance. This approach promotes open and transparent regulation and partnership between the industry and the IGB to address a common problem.
And it produced dividends. IGB staff will continue working with terminal operators industry partners to ensure compliance with the 72 hour rule. And I want to thank all who have contributed,
both within the IGB and within the video gaming industry, to this project and its success, and we look forward to continued collaboration and success.
Moving on to the February 2022 gaming numbers. Some of these may be a recap as many of these numbers were already posted to our website or otherwise released, but in keeping with fast tradition, I'll go ahead and provide them.
As of right now there are 7,925 licensed video gaming locations to the state.
There are 42,696
video gaming terminals, and there are 4,860 locations that have more than 5 VGTs. After today's board meeting we would expect those numbers to increase as additional licenses are awarded.
February video gaming revenue, the amount played was 2.4
billion dollars, the amount won was over 2.2 billion dollars.
Generating net terminal income of 202,80,195 dollars
resulting in net terminal income tax of 68,706,610 dollars.
The state’s share of that amounts to 58,602,699 dollars,
and host municipalities received 10,103,911 dollars in NTI tax revenue.
With respect to February casino revenue numbers,
admissions were at 609,558.
Total AGR of 93,624,249 dollars generating state tax revenue of 11,521,255 dollars and local revenue tax revenues of 5,290,770 dollars.
With respect to February sports wagering revenue,
statewide AGSWR amounted to 35,600,084 dollars
and that's based off a handle of 683,577,990 dollars.
Taken together, that generated
5.3 million dollars in tax to the state of Illinois an additional 380,353 dollars.
to Cook County. The men's and women's March Madness revenues for the basketball tournaments were released on April 12th and available on our website. So I'm not gonna take the time to repeat those at this point.
Combined January and February revenue
for video gaming, sports wagering and casino gambling,
does not include licensing and other fees,
amounted to total taxes of 182,480,300 dollars
with the state receiving 151,967,272 dollars
and localities across the state receiving gaming revenues of 30,513,028 dollars.
Finally, our next meeting is June 16th, the location, including whether the meeting will be virtual, in person, or both is undetermined at this time. We are working on those details and monitoring public health conditions and other factors.
And as soon as we have some information to share, we will do so. Thank you. And I can answer any questions if there are any.
Thank you. I would first like to join in the congratulations to Scott Deubel on his retirement. It's well deserved, well earned, we wish you success and happiness. I believe I speak for my other board members in wishing you
well. I also want to think the persons who are assuming new titles. Thank you for all of your excellent work so far and we look forward to working with you in your new positions.
Are there any questions for the administrator at this time?
Proceeding on there is no public comment at this time,
so we'll proceed to the casino matters and again, recognize the administrator.
Thank you and just to close out item 3 on the agenda. Similarly, there are no administrative matters. We have no rules
that we're bringing before the board today.
Now, moving on to casinos, we have
Occupational license items and we have 1 level 1 application.
of Geno M. Iafrate, president of 815 Entertainment, LLC,
doing business as Hard Rock Casino Rockford. Based on staff’s investigation and review, I recommend that the
Board approve Geno M. Iafrate’s Level 1 Occupational licensee at Hard Rock Casino Rockford.
Thank you, any questions or comments for the administrator?
Hearing none, I’ll ask the board secretary to initiate a roll call vote with those members in favor of the recommendation saying yes, those opposed to saying no.
Chairman Schmadeke? Yes.
Member Bell?
Yes. Member Hayden? Yes.
Thank you and that recommendation is adopted. Mr. Fruchter?
Next we have the level 1 application of Eric D. Jokisch,
regional audit director for 815 Entertainment, LLC doing business as Hard Rock Casino Rockford.
Based on staff’s review and investigation, I recommend that the board approve Eric. D. Jokisch
as a level 1 occupational licensee at Hard Rock Casino Rockford.
Thank you, any questions or comments on this recommendation?
Hearing none, I’ll ask the Board secretary to conduct a roll call with those members in favor of the recommendation saying yes,
those opposed saying no. Chairman Schmadeke?
Yes. Member Bell? Yes.
Member Hayden? Yes.
Thank you and that recommendation is adopted.
Level 2 and 3 applications,
Mr. administrator? Thank you. This month staff presented you with a list of 41 level 2 and 48 level 3 occupational license applicants.
Based on its review and investigation, staff recommends that the board approve the level 2 and level 3 occupational licenses of the 89 individual applicants whose names appear on the list provided to the board.
Furthermore, staff recommends that the board issue notices of denial to the following 2 applicants:
Scott Gregory Brodin, Jonathan Bradly Garcia.
Thank you very much. Are there questions or comments on this recommendation?
Hearing none, I'll ask the board secretary to conduct a roll call vote
on the recommendation with those members in favor of it saying yes, those opposed to it saying no.
Chairman Schmadeke? Yes.
Member Bell? Yes.
Member Hayden? Yes.
Thank you and that recommendation is adopted.
Mr. administrator? Thank you.
Pursuant to the authority delegated to me by the board on June 11, 2020,
I am renewing the level 1, 2, and 3 licenses of individuals who were licensed or renewed in April 2021 who have properly updated their applications and complied with the requirements of the Illinois gambling act and the board’s rules.
So, that concludes the casino portion of the meeting.
I'll move to sports wagering section.
And the first item is the master sports wagering online
Licenses. The
Sports wagering act as part of the historic 2019 gaming expansion law created a master sports wagering online operator license
and capped the number of such licenses the IGB can issue at 3
subject to a regimented competitive bidding process under section 2545 of the sports wagering act
and IGB sports wagering rule 620.
I apologize in advance that the next section might be a little bit lengthy, but I think it's important
to provide this information so that everybody understands where we are right now, how we got to this point, and where we are headed in the future.
So, as a quick recap, sports wagering act and rule 620 impose numerous requirements and procedures on applicants and the IGB alike
that we must complete before the IGB can publicly disclose bidders,
identify winning bidders and ultimately award the licenses. This is distinguished from the processes for casino licenses,
Video gaming licenses, and other master sports wagering licenses.
Following the intent of the act in section 2545,
specifically rule 620 creates firm,
specific requirements for the competitive selection process.
These requirements include mandatory deadlines at multiple stages of the process, including submissions of the application, responses to deficiency letters, and submission of key person fingerprints and related disclosures.
Based on timelines established by the sports wagering act, the application period for these licenses
opened on August 5th, 2021 and closed on December 3, 2021.
Rule 6(d) provides that no bid shall be accepted after the close of the application period.
Notably, section 2545 C warns perspective applicants
that failure by an applicant to submit required information may result in the application being disqualified.
The IGB received 3 timely application submissions
before the close of the application period at 11:59 PM, Central time on December 3rd, 2021.
The IGB received 1 untimely submission at 12:13 am Central time on December 14. I'm sorry December 4, 2021,
after close of the application period. Because the submission was not received prior to the close of the application period,
the board was prohibited from accepting it, and this application was rejected.
3 applicant bidders remained at that time.
Upon the close of the application period, the IGB had to determine whether each of the timely applicants are qualified and meet certain minimum standards for licensure.
Under section 2545 E, the identity of each applicant and the contents of all bids
must remain confidential and not subject to public disclosure until the IGB completed its review and determined the qualifications of each applicant and its key persons.
On February 7th, 2022, 1 of the remaining 3 bidders requested leave to withdraw its application
and I granted that request on February 7. That left 2 remaining bidders.
IGB staff then continued the required review of these 2 applications and key persons, including supporting disclosure and fingerprints reports.
Rule 620 H, requires the administrator to determine whether each applicant and their respective key persons meet the minimum qualifications for licensure under section 2545 D of the sport wagering act.
Section 2545 D and rule 520 and rule 620,
taken together, mandate that an application for a master sports wagering license
and all owners and key persons of an applicant must,
1, be at least 21 years of age, 2, not have been convicted of a felony offense
or violation of article 28 of the criminal code of 1961,
the criminal code of 2012, or a similar statute of any other jurisdiction,
not have been convicted of a crime involving dishonesty or moral turpitude,
have demonstrated a level of skill or knowledge that the board determines to be necessary
to operate sports wagering, and finally have met standards for the holding of a license as adopted by the rules of the board.
Again, prior to this stage in the process, the identities of the applicants and the contents
of their applications and bid summaries were strictly confidential by law.
Based on the required review and evaluation, I've made the following determinations as required under section 2545 and rule 628.
First, Tekkorp Digital Acquisition Corp., LLC
doing business as Caliente Interactive, meets the minimum qualifications for licensure under the act, and is therefore deemed a qualified applicant.
Fubo Gaming Inc. does not meet the minimum qualifications for licensure and is therefore deemed a disqualified applicant.
These applicants were notified in writing of my determination on April 25th, 2022 in compliance with rule 620(i).
Rule 620 J and K require the administrator to publicly disclose the identities of the qualified and disqualified applicants
and make other disclosures on the IGB website
not less than 48 hours after the written notices are provided
to the qualified and disqualified applicants. Accordingly, I just disclosed the identities of the qualified and disqualified applicants.
The 5.1 disclosure of record statement and bid summary forms of the applicants are now or very soon will be available on the IGB website.
Having concluded that portion,
rule 620(i) requires that the board identify the winning bidders or bidder not more than 90 days after publication of the qualified and disqualified applicant or applicants
which occurred moments ago. Because there is only a single qualified applicant,
there can only be 1 winning bid, rather than the maximum 3 allowed by statute.
Thus, there is nothing more for the board to do at this stage, other than identify the sole remaining winning bidder.
Therefore, pursuant to section 2545(f) of the sports wagering act and rule 620(l),
staff recommends that the board identify 1 qualified applicant,
Tekkorp Digital Acquisition Corp., LLC doing business as Caliente Interactive
as winning bidder in the initial competitive selection process
for a master sports wagering license issued to an online sports wagering operator.
Thank you are there any questions for the administrator regarding this recommendation?
Hearing none, I will ask the board secretary to initiate a roll call vote with those in favor of the recommendation saying yes,
those opposed saying no.
Chairman Schmadeke? Yes. Member Bell?
Yes. Member Hayden?
Yes. Thank you. That recommendation is adopted.
Mr. administrator, thank you. Mr. chairman, one final, or a couple of final notes, on this process. The first, and importantly,
being found qualified and declared as the winning bidder are neither a finding of suitability, nor a grant of licensure. It is simply a finding based on information presently known by the
IGB that Caliente and its key persons meet the minimum suitability criteria.
Now that the competitive bidding phase of the process is concluded, gaming board staff shall conduct
the standard licensed suitability investigation as required under section 2545(g)
of the sports wagering act and board rule 620(m).
One may wonder what happens to the 2 remaining licenses authorized by the sports wagering act
since only a single winning applicant emerged from the competitive selection process.
Sports wagering rule 630 supplies the answer to that question.
Rule 630 allows the administrator to commence a supplemental competitive selection process to award the unissued license after the initial licensed is issued.
Accordingly, at the conclusion of this initial selection process, I anticipate that we will proceed under rule 630 to license to issue the remaining 2 licenses.
I will provide further updates when it is appropriate to do so, but happy to answer any questions at this point.
Thank you, are there any questions or comments regarding this report?
Hearing none, we'll proceed on with the agenda and again, recognize the administrator.
Thank you, we're now moving to sports wagering act level 2 and 3 application approvals. This month, staff presented you with a list of 103 level 2 occupational license applicants seeking to work in a sports wagering
designated gaming area,
or perform duties in furtherance of,
or associated with the operation of sports wagering by a master sports
wagering
Licensee. Staff recommends based on its review and investigation that the board approve the appropriate sports wagering
occupational licenses
for the 103 individual applicants whose names
appear on the list previously provided to the board.
Thank you are there questions or comments regarding this recommendation?
I'm going to ask the board secretary to conduct the roll call vote on the recommendation with those in approval saying yes, those in disapproval saying no.
Chairman Schmadeke? Yes.
Member Bell? Yes.
Member Hayden? Yes.
And that recommendation is adopted. Mr. Fruchter will continue.
Pursuant to the authority delegated to me by the board on June 11th 2020 I am renewing the level 1, 2, and 3 sports wagering licenses of the individuals
Who were licensed for renewed in April 2021,
who have properly updated their applications and complied with the requirements of the sports wagering act and board rules.
That concludes the sports wagering section of today's meeting. Now, we move into video gaming.
Mr. chairman and members of the board,
as many of you know, recent changes in law extended the license period for video gaming license fees
to make them consistent with periods for casino and sports wagering licensees and to improve
regulatory efficiency and predictability for the IGB and licenses alike.
For terminal handlers, technicians, and licensed establishments of all categories, license periods shall now be for 2 years with 2 year renewals.
Licenses for manufacturers, distributors, suppliers,
and terminal operators shall now be for 4 years
with 4 year renewals. Since this is the 3rd IGB meeting following the effective date of the new law, which was December 17th 2021, the new license terms will take effect when the board grants and renews video gaming licenses.
I would note to those licenses that, please note that the license fees will still be billed and due on an annual basis, regardless of license term.
These new licensing terms are significant changes that,
coupled with newly enacted amendments to the
Illinois gambling act and the sports wagering act, will take time to fully implement and the IGB
updates and changes existing internal processes
and systems that have been in place for a decade or more, including auto generated letters and notices.
IGB staff has been working hard to address these issues and began implementing the new license periods in January of this year.
Nonetheless, there are still programming and systematic system enhancements that are ongoing and must be tested and further implemented.
Thus, any video gaming applicant or licensee
renewed at this meeting, or licensed at this meeting, may receive an auto generated letter and license certificate indicating that the letter or I'm sorry that the license expires in April 2023,
but that expiration date, if you receive 1 of those letters, or licenses will be incorrect. Depending on the license type, they will expire in either April 2024 or April 2026 under the newly amended laws.
The IGB will provide updates and information on our website and through the portal and we'll continue to coordinate and communicate with relevant industry groups and effective stakeholders to answer questions,
address any confusion, and mitigate any bumps in the road as we continue these system wise harmonization and other kinds of enhancements.
With all that being said, we now turn our attention to video gaming manufacturer and distributor license renewals, and pursuant to the authority delegated to me by the board on June 11th 2020, I am renewing the video game manufacturer and distributor licenses
Of Entropy Cabinet Solutions Inc., USA
for a period of 4 years expiring, April 2026.
Moving to terminal operator license renewals.
Pursuant to the authority delegated to me by the board on June 11th 2020, I am renewing the following 9
video gaming terminal operator licenses for a period of 4 years,
thereby expiring in April 2026:
Da Route LLC, Gaming & Entertainment Management – Illinois LLC,
Great Lakes Vending, Corporation, Lucky Day LLC,
Midwest Electronics Gaming, LLC,
Sinbad’s Castle Arcade, Ltd., Top Notch Entertainment, LLC,
T’s Gaming, LLC, and Velasquez Gaming, LLC.
Next we have technicians and terminal handlers.
Mr. chairman and members of the board, this month staff provided you with a list of 26 applicants
for a terminal handler license and a single applicant for a technician license. Staff recommends based on its review and investigation
that the board approve licenses for the 27 individual applicants
appearing on the list for a period of 2 years expiring April 2024 subject to the licensee’s payment of the applicable licensing fee on or before May 31, 2022.
Furthermore, staff recommends that the board issue notices of denial to the following applicants:
Linda Allen Michalski,
Christopher Anim Okon. Thank you. Are there questions or comments regarding this recommendation?
Hearing none, the Board secretary will conduct a roll call
with those members of the board in approval of the recommendation saying yes,
those disapproving saying no.
Chairman Schmadeke? Yes. Member Bell?
Yes. Member Hayden?
Yes. Thank you and that recommendation adopted. Mr. administrator please continue.
Now, we move to video gaming technicians, terminal handler license renewals.
And again, pursuant to the authority delegated to me by the board on June 11th, 2020,
I am renewing the licenses of technicians and terminal handlers who were licensed
or renewed in April of 2021 for a period of 2 years to expire in April of 2024, who have properly updated their applications and complied with the requirements of the video gaming act
and the board rules. We now move to video gaming establishment application, applicant items.
And this month, Mr. chairman and members of the board, the staff provided you with a list of a number of location establishment applications
for your consideration. Based on its review and investigation, staff recommends that the board approve
104 video gaming location
license applications for a period of 2 years expiring in April 2024 subject to the licensees payment of the applicable licensing fee on there before May 31, 2022.
Staff further recommends that the board issue notices of denial
to the following video gaming location establishment license applicants:
4Manfront LLC doing business as Jazzy One Five Nine,
American 1 Distillery LLC doing business as American 1 Distillery LLC,
Debra Wells doing business as Deb’s Red Rose,
Dundee Sports Bar, Inc. doing business as Dundee Sports Bar,
And Mirage Restaurant, Inc. doing business as Mirage
Restaurant, Inc. Thank you. Are there questions or comments from the board on this recommendation?
Hearing none, I'll ask the board secretary to initiate a roll call with those members in favor of their recommendation saying yes, those not in favor saying no.
Chairman Schmadeke?
Yes. Member Bell? Yes.
Member Hayden? Yes.
And recommendation is adopted and we can recognize the administrator.
Thank you. We have one
Video gaming location statutory denial.
So, pursuant to the authority delegated to me by the board on June 11th, 2020, to deny applications where after staff's review and investigation,
it is determined that an applicant is prohibited by statute or rule from holding the applied for license,
I am denying the video gaming location establishment license application of Orchard Stop LLC, doing business as Orchard Stop LLC as the applicant is ineligible under the video gaming act and board rules.
Moving to video gaming location establishment license renewals.
Pursuant to authority delegated to me by the board on June 11, 2020,
I am renewing the video gaming location establishment licenses that were licensed or renewed in April of 2021
for a period of 2 years, expiring April 2024 for those who have properly updated their applications and complied with the requirements of the video gaming act and the board's rules.
Thank you.
You're welcome, thank you. And we move now to rule 320 petitions and final board orders.
As you know, as many know, in addition to setting forth
minimum standards for use agreements, video, gaming rule 320 provides a process where 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 a portion of agreement that purports to control the location and operations of video gaming terminals.
Rule 320 among other things requires the administrator
to issue a recommended decision and allows the parties to file exceptions to the administrators recommended decision.
Rule 320 further provides that the board shall review the entire record
including the party's petitions, the administrators recommended decisions.
any exceptions filed to the administrators recommended decision, and then render a written order, including the basis for its decision.
Today we have 6 administrator recommended decisions
for the board's consideration. The recommended decisions involve the following petitions and parties:
17-UP-001 Hyperactive Gaming
Versus Tap Room Gaming regarding Foss Park District, doing business as Foss Park Golf Course;
18-UP-003, Accel Entertainment Gaming, LLC versus Midwest Electronics Gaming, LLC regarding K. D. Taverns Inc. doing business as Hey Carl’s;
I’m gonna take a break for a moment to let this siren pass. Okay.
18-UP-005, Accel Entertainment Gaming
Versus William Stanford III doing business as Stanford Gaming LLC
regarding Malnar’s Tap & Restaurant, Inc.,
18-UP-010 Illinois Gaming Investors, LLC doing business as Prairie State Gaming
Versus Lucky Lincoln Gaming, LLC regarding Hibachi Grill and Supreme Buffet, Inc. doing business as Hibachi Grill and Supreme Buffet,
18-UP-020 and 18-UP-20A,
Angelle & Green Gaming, LLC
v. J&J Ventures Gaming regarding G&C Liquors, LLC doing business as Blue Fish Liquors,
and finally, 19-UP-034 Accel Entertainment Gaming
Versus Illinois Operators, Inc. and Cryst, Inc. doing business as Pepe’s Mexican Restaurant
regarding Cryst, Inc. doing business as Pepe’s Mexican 2 Restaurant.
In each of the above referenced matters, petitioners assert the validity and enforceability of their use agreements
with the locations against competing use agreements the establishment signed with the respondent.
In 2 of the cases, the petitioners requested to withdraw their filed petition. The administrators recommended decisions addressed the withdrawal request in 17-UP-001 and 18-UP-003 and recommended that the request be granted.
Previously, the board recognized its implicit authority to grant a withdrawal.
In these 2 petitions, as in most cases, a petition should be closed where a petitioner requests to withdraw the matter.
With respect to 18-UP-005,
18-UP-010, 18-UP-020, and 020A, and 10-UP-034,
because the subject location establishments no longer possess a valid gaming license, the administrator recommended decisions, recommend the board dismiss these matters.
No exceptions were timely filed with respect to any of these administrator recommend decisions. Accordingly, staff recommends that the board adopt
all 6 of the aforementioned administrator recommended decisions.
Thank you Mr. administrator. Are there questions or comments on this recommendation?
Hearing none, I'm going to ask the board secretary to conduct a roll call vote.
All those in favor of their recommendations saying yes, those just in favor say, excuse me, I'll start with those in favor of the recommendations saying yes,
Those not in favor saying no.
Chairman Schmadeke? Yes. Member Bell?
Member Hayden? Yes.
And that recommendation is adopted and we'll again recognize Mr. Fruchter, the administrator.
Thank you and our final items on today's agenda involve
review of recommendations from administrative law judges, and we have 2 of those.
First for the board's consideration is the administrative law judge’s recommendations in case
20 GB, 001 in re denial of Terrence Patrick Maloney,
video gaming terminal handler applicant, On August 24th, 2017.
the board voted to deny Mr. Maloney a terminal handler license based on his failure to establish his suitability for licensure under the applicable
gaming statutes and rules. Thereafter, the board denied Mr. Maloney’s request for a hearing and he sought an administrative review. On September 28, 2019, the parties entered into an agreed order of remanding the matter back to the board for hearing.
The hearing began in May of last year, and was completed in June. After considering the evidence and the party's arguments,
the administrative law judge concluded that the board properly
denied applicant’s 2017 terminal handler license application. In determining that applicant failed to show by clear and convincing evidence that he is suitable for licensure,
The ALJ noted that the applicant's sole argument was an attempt to shift the burden of proof to the board
by insisting that the board failed to provide reliable evidence that applicant was unsuitable for licenses.
In addition, the ALJ also found that applicant's case relied heavily on his objections to the admissibility of the board's official documents,
i.e. denials prepared in the course of its regular business.
The ALJ rejected these evidentiary challenges,
holding that applicant's assertion that the board’s exhibits were hearsay was unpersuasive and without merit.
Accordingly, staff recommends that the board adopt the recommended decision as a final board order.
Thank you are there questions or comments on this recommendation?
Hearing none, the board secretary will conduct a roll call vote with those members in favor the recommendation saying yes, those opposed saying no.
Chairman Schmadeke? Yes.
Member Bell? Yes.
Member Hayden? Yes.
Thank you. And that recommendation is adopted. Mr. administrator.
Finally, our 2nd and last matter is 21 GB 009 in re
Denial of MR hospitality LLC, video gaming location establishment applicant.
On January 27th, 2021, the board denied MJ hospitality’s
Application after the evidence developed during the application indicated that MJ is within 100 feet of a religious place of worship, which is prohibited by section 25(h) of the video gaming act.
MJ is adjacent to the meadows Christian fellowship,
which is a place of worship under the board's rules. The main structure is more than 20 -
The main structure, let me try that a 3rd time.
The main church structure is more than 200 feet from MJ. However, a building structure owned by the church
located in its parking lot is within 100 feet of MJ.
During the pendency of the application, the church’s pastor submitted a letter to the IGB
That the structure was integral to their community outreach positions
that are held in the church’s parking lot, and thereby also objected to the location of video gaming terminals at MJ.
Relying in part on the pastor's representations,
the board found that MJ failed to meet its burden, and that it was not prohibited from operating under section 25(h), because it was within 100 feet of a place of worship.
MJ requested a hearing, which was granted on March 16,
2021. During the hearing process, IGB attorneys and counsel for MJ interviewed the pastor and inspected the structure
on the church property. The matter was set for hearing with the pastor's cooperation and expectation that he was going to testify at the hearing.
The night before the hearings, the pastor informed the IGB that he would not be objective that he would not be appearing to testify at the hearing.
And that meadows Christian fellowship no longer objected to MJ’s video gaming application.
On November 3rd, 2021, the administrative law judge heard the matter on a stipulated record.
In his decision, the ALJ recommended the board license MJ.
Relying on the board's definition of a place of religious worship.
The ALJ focused mainly on the last clause of the definition, which governs structures, if the structure is used primarily
for purposes of religious worship and related activities.
Given the stipulation and the Church's position change regarding this critical matter,
the ALJ found that the structure’s primary use was not, in fact, for religious worship.
Instead, the structure was found to be mainly a storage facility.
Accordingly,
and because there is no statutory prohibition for MJ to operate its VGTs and in light of the removal of the change in the Church's position, staff recommends that the board adopt the recommended decision as a final board order.
Thank you are there questions or comments on this recommendation?
Hearing none, I’ll ask the board secretary to initiate a roll call with those members in favor of the recommendation saying yes,
those opposed saying no.
Chairman Schmadeke? Yes. Member Bell? Yes.
Member Hayden? Yes.
Thank you very much. That recommendation is adopted.
Is there any other business to come before the board at this time?
Hearing none, I'll entertain a motion to adjourn.
So, moved. Is there a Second? Second.
The board secretary will initiate a roll call with those members in favor of adjournment saying yes, those opposed saying no.
Chairman Schmadeke? Yes.
Member Bell? Yes.
Member Hayden? Yes.
Thank you and we stand adjourned until June 16th, 2022 unless a special meeting is called in accordance with the applicable law. Thank you very much.
Thank you, thank you.