Prairie State Wire

Illinois Gaming Board Met July 14.

Here is the agenda provided by the board:

The Illinois Gaming Board (“Board”) convened for a Regular Meeting at approximately 9:03 A.M. In accordance with Section 12 of the June 25, 2021 Disaster Proclamation issued by Illinois Governor JB Pritzker, in-person attendance of more than ten people at the regular meeting location was not feasible; therefore, the Board held the meeting through electronic means. The meeting was accessible via livestream at:

https://multimedia.illinois.gov/igb/igb-live.html.

A roll call was taken. The following Board members were present: Chairman Charles Schmadeke, Member Dionne Hayden and Member Ruben Ramirez. Three members of the Board being present, a quorum was satisfied.

APPROVAL OF OPEN SESSION MINUTES

The Board unanimously approved the open session minutes from its Regular Meeting held on Wednesday, June 9, 2021.

BOARD MEMBER COMMENTS

None.

ADMINISTRATOR’S REPORT

Administrator Fruchter began his report by noting that the July 2021 Board meeting may be the last entirely virtual meeting and that he believes in-person open meetings may resume when the IGB next gathers for its September 2021 meeting. However, he noted the Board will continue to follow prevailing public health guidance and conditions in determining if in person meetings are feasible. The Administrator urged people to remain vigilant, get vaccinated and follow the remaining COVID protocols in place.

The Administrator then provided a brief update on the status of the new casino Owners license applications and the Organization Gaming license applications. He noted IGB staff continues to diligently process and investigate those applications. Administrator Fruchter acknowledged there is another coin shortage impacting Illinois’ gaming industry. He noted the IGB intends to adopt an emergency rule in the next 7-14 days to address this topic. The emergency rule will be similar, although not identical, to the emergency rule the IGB adopted last summer when the same crisis occurred. Further, the Administrator noted the IGB plans to adopt a proposed permanent rule on this topic at its September meeting.

Administrator Fruchter reminded the audience that the IGB is seeking comments from all stakeholders on two different matters. The first matter concerns the methods by which the IGB could issue advisory opinions or declaratory rulings. The second matter involves the modernization of rules governing the conduct of casino gambling. He noted the deadline to submit comments is August 31, 2021 and the IGB has created a specific email address for submitting comments.

The Administrator stated there are 7,659 licensed Establishments operating 40,181 VGTs. Approximately 4,246 of those Establishments are operating more than 5 VGTs, in other words, they either have 6 VGTs or qualify as Large Truck Stops giving them the right to operate up to 10 VGTs, both in accordance with the 2019 gaming expansion measures. Moreover, 37,690 of the VGTs are operating with upgraded software that allows for $4 maximum bets.

Administrator Fruchter noted that in May, the video gaming industry generated Net Terminal Income (NTI) of $228,805,137, which produced overall tax revenue of $77,793,835 including $66,353,566 of State tax revenue of and $11,440,267 of local tax revenue. Illinois’ casinos generated approximately $107,430,243 million of AGR during the May period producing approximately $19,204,500 of State tax revenue and $6,038,679 of local tax revenue. Further, sports wagering generated approximately $36 million of AGR in May, producing $5,434,648 of State tax revenue and $419,669 of Cook County tax revenue. The Administrator noted that Illinois’s sports wagering handle is the 2nd highest of any U.S. gaming jurisdiction for May, behind only New Jersey.

PUBLIC COMMENTARY

The Board entertained comments from Teresa Guinzy, Owner, KITT, LLC d/b/a Lucky Dogs and Anita Bedell, Executive Director, Illinois Church Action on Alcohol and Addiction Problems.

ADMINISTRATIVE MATTERS

The Board voted unanimously to approve for submission to the Index Department of the Secretary of State on First Notice proposed permanent Rule 1800.370 for Video Gaming regarding the deactivation of video gaming terminals.

CASINO

Request for Final Consideration of Owners License Renewal

• Casino Queen, Inc. d/b/a DraftKings at Casino Queen

The Board voted unanimously to adopt the staff’s recommendation to renew the Owners license of Casino Queen, Inc. d/b/a DraftKings at Casino Queen for a period of four years, expiring in in July 2025.

Other Owner Licensee Items

• Standard General Focus Fund L.P.

The Board voted unanimously to adopt the staff’s recommendation to approve Standard General Focus Fund L.P. as an indirect owner of Casino Queen, Inc. d/b/a DraftKings at Casino Queen. Key Person Approvals

• Herman Campuzano – Elgin Riverboat Resort d/b/a Grand Victoria Casino – Regional Director of Internal Audit.

The Board voted unanimously to adopt the staff’s recommendation to find Herman Campuzano suitable as a key person of Elgin Riverboat Resort d/b/a Grand Victoria Casino in his capacity as Regional Director of Internal Audit.

• Jason Grover – Alton Casino, LLC d/b/a Argosy Casino Alton; HC Aurora, LLC d/b/a Hollywood Casino Aurora; HC Joliet, LLC d/b/a Hollywood Casino Joliet – Regional IT Director for Penn National Gaming

The Board voted unanimously to adopt the staff’s recommendation to find Jason Grover suitable as a key person of Alton Casino, LLC d/b/a Argosy Casino Alton, HC Aurora, LLC d/b/a Hollywood Casino Aurora, and HC Joliet, LLC d/b/a Hollywood Casino Joliet in his capacity as Regional IT Director for Penn National Gaming

• 815 Entertainment, LLC

The Board voted unanimously to adopt the staff’s recommendation to find the following individuals and business entities suitable as key persons of 815 Entertainment, LLC d/b/a Hard Rock Casino Rockford:

1. James F. Allen, President, Chief Executive Officer, and Member of the Board of Managers of Seminole HR Holdings, LLC

2. HR Rockford Owner, LLC – Owner, Business Entity

3. Rockford Casino Development, LLC – Owner, Business Entity

4. Seminole Hard Rock International, LLC – Owner, Business Entity

5. SHRE/SHRI, LLC – Owner, Business Entity

6. Seminole HR Holdings, LLC – Owner, Business Entity

7. Agnes Billie-Motlow – Member, Board of Managers of Seminole HR Holdings, LLC

8. Danelle R. Boose – Owner

9. Brad Buchanan – Member, Board of Managers of Seminole HR Holdings, LLC

10. John R. Eder – Executive Vice President, CFO, Secretary, Treasurer of Seminole HR Holdings, LLC

11. Jeffrey E. Hook – Executive Vice President of Seminole Hard Rock International, LLC

12. Robert L. Gips – Member, Board of Managers of Seminole HR Holdings, LLC

13. Carla S. Gopher – Member, Board of Managers of Seminole HR Holdings, LLC

14. Alexander Johns – Member, Board of Managers of Seminole HR Holdings, LLC

15. Jon S. Lucas – COO of Hard Rock International, USA, Inc. and Hard Rock entities

16. Jim Shore – Member of HR Rockford Owner, LLC and Seminole HR Holdings, LLC

17. Connie Whidden – Member, Board of Managers of Seminole HR Holdings, LLC

18. Miles E. Bretsch – Owner

19. Daniel Fischer – Owner and President of 815 Entertainment, LLC

ORGANIZATION GAMING LICENSE ITEMS

Request for Initial Consideration of Transfer of Ownerships

• Hawthorne Race Course, Inc.

The Board voted unanimously to adopt the staff’s recommendation to find the following individuals and trusts suitable as key persons of Hawthorne Race Course, Inc.:

1. Thomas C. Barry Jr. – Owner, Board Member

2. Anthony Carey – Board Member and Secretary

3. Robert Francis Carey III – Owner, Board Member

4. Timothy Sean Carey – Owner, Board Member, President, and CEO

5. David Allan Collins – Owner, Board Member

6. William Charles Collins Jr. – Owner, Board Member

7. Chrissa Barry-Dolan – Owner, Board Member

8. Richard William Finn – Owner

9. Thomas Gregory Finn – Owner, Board Member

10. Margaret Barry Jacob – Owner

11. Kevin D. Kline – CEO of Gaming

12. Mark Thomas Monaghan – Owner, Board Member

13. Ruth Ann Moreland – Owner, Board Member

The Board voted unanimously to adopt the staff’s recommendation to approve the following individuals and trusts to hold an ownership interest in Hawthorne Race Course, Inc.:

1. Casey E.B. Allen

2. Colleen Carey Buckingham

3. Julie Anne Burke

4. Lisa M. Barry Cahill

5. Anthony Clement Carey

6. John Joseph Carey

7. Martin Brendan Carey

8. Margaret Ann Carey

9. Nancy Therese Carey

10. Paul Ignatius Carey

11. Susan Diana Carey

12. Margaret Mary Coleman

13. Phillip William Collins III

14. Caroline Collins Combass

15. Sallie Katherine Combass

16. Phillip Hunter Combass

17. Judith Ann Curtin

18. Lisa Mary Drummond

19. Helen Carey Ehret

20. Tierney Patricia Collin Eson

21. Kathleen Carey Ford

22. Carolyn Barry Frost

23. Maura Elizabeth Gates

24. Kearin Carey Hansen

25. Erin Ann Hearne

26. Ellen Janette Henry

27. George Francis Jacob Sr.

28. Margaret Gertrude Jacob

29. Adam Joseph Janette

30. John William Janette

31. Molly Carey Johnson

32. Mary Helen Finn Kramek

33. Kenneth Eugene Laski

34. William Michael Laski

35. Sallie Pauline Collins Maertz

36. Julie Marie Maurer

37. Mary Janette McCarley

38. David Francis Monaghan

39. Susan Barry Murray

40. Nancy Laura Nagan

41. Jeannie Marie O’Neil-Roman

42. Leah Hannan Carey Smith

43. Catherine Barry Stack

44. Taryn Leah Vaughn

45. Laura Helen Barry Walsh

46. Margaret Monaghan Whittle 47. Richard T. Finn GST Exempt

Trust U/A 2/11/94 FBO Richard W. Finn

48. Walter F. Jacob and Margaret Barry Jacob Irrevocable Trust Agreement

• Fairmount Park, Inc. d/b/a FanDuel Sportsbook and Horse Racing

The Board voted unanimously to adopt the staff’s recommendation to find the following individuals, business entities, and trusts suitable as key persons of Fairmount Park, Inc.:

1. Melissa G. Helton – President

2. Connie Reames – Secretary/Treasurer

3. William P. Stiritz – Chairman and Director

4. Robert V. Vitale – Director

5. Fairmount Holdings, Inc. – Owner

The Board voted unanimously to adopt the staff’s recommendation to approve Harry S. McGehee Jr. and the Robert V. Vitale Irrevocable GST Trust to hold an ownership interest in Fairmount Park, Inc. d/b/a FanDuel Sportsbook and Horse Racing.

OCCUPATIONAL LICENSEE ITEMS

Level 1, 2, and 3 Occupational Licenses

• Melissa Helton – President and General Manager for Fairmount Park, Inc. d/b/a FanDuel Sportsbook and Horse Racing

The Board voted unanimously to adopt the staff’s recommendation to grant Melissa Helton a Level 1 Occupational license.

Level 1 Occupational Licenses – Administrator Delegation

Pursuant to the authority delegated by the Board on June 11, 2020, the Administrator granted a Level 1 Occupational license to Jason Grover, Regional IT Director for Penn National Gaming, Inc. in connection with the Owners licenses of HC Aurora, LLC d/b/a Hollywood Casino Aurora and HC Joliet, LLC d/b/a Hollywood Casino Joliet.

Level 2 and Level 3 License Applications – Approvals and Denials:

The Board voted unanimously to adopt the staff’s recommendation to approve 13 Level 2 and 32 Level 3 occupational license applicants.

Occupational License Renewals by the Administrator

Pursuant to the authority delegated by the Board on June 11, 2020, the Administrator renewed the Level 1, 2, and 3 licenses of individuals who were licensed or renewed in July 2020 and who have properly updated their applications and complied with the requirements of the Illinois Gambling Act and the Board’s Rules.

SUPPLIER LICENSEE ITEMS

• CasinoMoney, Inc.

The Board voted unanimously to adopt the staff’s recommendation to issue a casino supplier license to CasinoMoney, Inc. for a period of one year, expiring in July 2022 and further to find the following individuals and trusts suitable as key persons of CasinoMoney, Inc.

1. Lawrence Dunnwald – President/CEO

2. Willian Dunnwald

3. Cheryl Seger – COO/CFO

4. Joelle Dunnwald

5. Sara Dunnwald

6. The Dunnwald Family Trust

7. The William And Sara Dunnwald Trust

• HR Rockford, LLC

The Board voted unanimously to adopt the staff’s recommendation to grant an initial casino supplier license to HR Rockford, LLC for a period of one year, expiring in July 2022, and further find the following individuals and business entities suitable as key persons of HR Rockford, LLC:

1. James Francis Allen

2. Agnes Billie-Motlow

3. Brad Buchanan

4. John R. Eder

5. Robert L. Gips

6. Carla Gopher

7. Alexander P. Johns

8. Jon Lucas

9. Michael D. Rumbolz

10. Jim Shore

11. Connie Whidden

12. Seminole Hard Rock International, LLC

13. SHRE/SHRI, LLC

14. Seminole HR Holdings, LLC

SPORTS WAGERING

SPORTS WAGERING OCCUPATIONAL LICENSEE ITEMS

Level 1 License Applications

• William John Vandersand – General Counsel for Sports Wagering and Head of Compliance at Casino Queen, Inc. d/b/a DraftKings at Casino Queen

The Board voted unanimously to adopt the staff’s recommendation to approve the Level 1 Sports Wagering Occupational license application for William John Vandersand in his position as General Counsel of Sports Wagering and Head of Compliance at Casino Queen, Inc. d/b/a DraftKings at Casino Queen.

Level 1 License Applications – Administrator Delegation

Pursuant to the authority delegated by the Board on June 11, 2020, the Administrator issued a Level 1 Sports Wagering Occupational License to Melissa Helton in connection with the sports wagering operations at Fairmount Park, Inc. d/b/a FanDuel Sportsbook and Racetrack in her capacity as President and General Manager.

The Administrator further granted Level 1 Sports Wagering Occupational licenses to Jason Grover in connection with the sports wagering operations at HC Aurora, LLC d/b/a Hollywood Casino Aurora and HC Joliet, LLC d/b/a Hollywood Casino Joliet in his capacity as Regional IT Director for Penn National Gaming, Inc.

Level 2 and Level 3 License Applications – Approvals

The Board voted unanimously to adopt the staff’s recommendation to approve the Level 2 sports wagering occupational licenses of 22 individual applicants.

Level 1, 2, and 3 License Renewals – Administrator Delegation

Pursuant to the authority delegated by the Board on June 11, 2020, the Administrator renewed the Level 1, 2, and 3 Sports Wagering licenses of the individuals who were licensed in June 2020, retroactive to June 2021, and the individuals who were licensed in July 2020, who have properly updated their applications and complied with the requirements of the Sports Wagering Act and the Board’s Rules.

VIDEO GAMING

MANUFACTURER, DISTRIBUTOR, SUPPLIER ITEMS

Pursuant to the authority delegated by the Board on June 11, 2020, the Administrator renewed the Video Gaming Supplier licenses of CountR GMBH and M3 Technology Solutions, LLC for a period of one year, expiring in July 2022.

TERMINAL OPERATOR LICENSEE ITEMS

Initial Licensee Items

• Maya Gaming LLC

The Board voted unanimously to adopt the staff’s recommendation to grant a terminal operator license to Maya Gaming LLC.

• DK Gaming LLC

The Board voted unanimously to adopt the staff’s recommendation to grant a terminal operator license to DK Gaming LLC.

License Renewals

Pursuant to the authority delegated by the Board on June 11, 2020, the Administrator renewed the following Video Gaming Terminal Operator licenses for a period of one year, expiring in July 2022:

1. G.F.M. Gaming, LLC

2. Illinois Gaming and Coin-Op LLC

3. Pocket Aces Gaming Inc.

TECHNICIANS & TERMINAL HANDLERS

Initial Licenses – Approval and Denials

The Board voted unanimously to adopt the staff’s recommendation to approve 29 Terminal Handler licenses for a period of one year, expiring in July 2022, subject to licensee’s payment of the applicable licensing fee on or before August 31, 2021.

VG Technicians and Terminal Handler License Renewals

Pursuant to the authority delegated by the Board on June 11, 2020, the Administrator renewed the licenses of Technicians and Terminal Handlers who were licensed or renewed in July 2020, and who have properly updated their applications and complied with the requirements of the Video Gaming Act and the Board’s Rules.

VIDEO GAMING ESTABLISHMENT APPLICATIONS

Initial Licenses - Approvals & Denials

The Board voted unanimously to adopt the staff’s recommendation to approve 72 Video Gaming Establishment License applications for a period of one year, expiring in July 2022, subject to licensee’s payment of the applicable licensing fee on or before August 31, 2021, and issue Notices of Denial to the following applicants:

1. APPLEWOOD GAMING 1 LLC, d/b/a CORKY'S SLOTS (190703658)

2. DEE BEE'S, INC. d/b/a DEE BEE'S, INC. (210700435)

3. Digiacomo Family Enterprises, Inc. d/b/a Sam's Pizza (190703284)

4. Lord of the Wings LLC d/b/a Lord of the Wings LLC (210700269)

5. Mistys Family Restaurant Inc. d/b/a Kersh Café (200702139)

6. Shotgun Eddys, Inc. d/b/a Shotgun Eddys, Inc. (200702731)

VG Location Establishment Denials – Statutorily Ineligible

Pursuant to the authority delegated by the Board on June 11, 2020, the Administrator denied the Video Gaming Location Establishment license application of Lounge 33, LLC d/b/a Lounge 33 (210700287) as statutorily ineligible.

Board Rescission Items

The Board voted unanimously to adopt the staff’s recommendation to rescind the previous denial of Oak Forest Marathon, Inc. d/b/a Oak Forest Marathon, grant a truck stop establishment license, and grant leave to withdraw its hearing request.

The Board voted unanimously to adopt the staff’s recommendation to rescind the previous Notice of Non-Renewal of Bella Banquets, Inc. d/b/a Via Bella Restaurant and renew their location establishment license retroactive to April 2021, subject to licensee’s execution of written settlement agreement including an agreement to pay the Board $1,500 in reimbursement for the IGB’s estimated administrative and investigatory costs related to staff’s investigation of this matter.

Location Establishment License Renewals

Pursuant to the authority delegated by the Board on June 11, 2020, the Administrator renewed the Video Gaming Location Establishment licenses that were licensed or renewed in July 2020 and who have properly updated their applications and complied with the requirements of the Video Gaming Act and the Board’s Rules.

Location Establishment License Non-Renewals

The Board voted unanimously to adopt the staff’s recommendation to deny the renewals of La Guerita, Inc. d/b/a Pepe’s Mexican Restaurant (120704409) and Cryst, Inc. d/b/a Pepe’s Mexican Restaurant (140701599).

The Board voted unanimously to adopt the staff’s recommendation to deny the renewal of Tacos San Jose, Inc. d/b/a Tacos San Jose.

RULE 320 PETITION

Requests for Hearing

• J&J Ventures Gaming, LLC, Petitioner, (“J&J”) v. Accel Entertainment Gaming, LLC, Respondent, (“Accel”) and Action Gaming LLC, Intervenors (“Action”) Docket No. 17-UP 005

The Board voted unanimously to adopt the staff’s recommendation to adopt the Administrator’s Recommended Decision as a final Board Order in this matter.

REQUESTS FOR HEARING AND REQUESTS TO REAPPLY

Requests for Hearing

The Board voted unanimously to deny H’s Bar, LLC d/b/a H’s Bar’s (180701140) request for hearing. Requests to Reapply

The Board voted unanimously to deny the requests to reapply from Pukar, Inc. d/b/a Times Square Liquor North (1907036800) and Pukar, Inc. d/b/a Times Square Liquors West (190703681).

ADJOURN

The Board voted unanimously to adjourn the meeting.

https://www.igb.illinois.gov/FilesBoardMeeting/20210714OpenMeetingMinutes.pdf