GAMBLING-OWNERS LICENSES

Illinois General Assembly - Full Text of SB2723

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB2723

Introduced 10/28/2025, by Sen. Bill Cunningham

SYNOPSIS AS INTRODUCED:

230 ILCS 10/7

from Ch. 120, par. 2407

Amends the Illinois Gambling Act. Provides that each licensee shall
make a reconciliation payment 3 years after the date the licensee begins
operating in an amount equal to 75% of the adjusted gross receipts for the
most lucrative consecutive 12-month period of operations, minus an amount
equal to (i) the initial payment per gaming position paid by the specific
licensee and (ii) the $15,000,000 reconciliation fee.
LRB104 15890 LNS 29116 b

A BILL FOR

SB2723
LRB104 15890 LNS 29116 b
1

AN ACT concerning gaming.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Illinois Gambling Act is amended by
5
changing Section 7 as follows:

6

(230 ILCS 10/7)

(from Ch. 120, par. 2407)
7

Sec. 7.
Owners licenses.

8

(a) The Board shall issue owners licenses to persons or
9
entities that apply for such licenses upon payment to the
10
Board of the non-refundable license fee as provided in
11
subsection (e) or (e-5) and upon a determination by the Board
12
that the applicant is eligible for an owners license pursuant
13
to this Act and the rules of the Board. From December 15, 2008
14
(the effective date of Public Act 95-1008) until (i) 3 years
15
after December 15, 2008 (the effective date of Public Act
16
95-1008), (ii) the date any organization licensee begins to
17
operate a slot machine or video game of chance under the
18
Illinois Horse Racing Act of 1975 or this Act, (iii) the date
19
that payments begin under subsection (c-5) of Section 13 of
20
this Act, (iv) the wagering tax imposed under Section 13 of
21
this Act is increased by law to reflect a tax rate that is at
22
least as stringent or more stringent than the tax rate
23
contained in subsection (a-3) of Section 13, or (v) when an

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1
owners licensee holding a license issued pursuant to Section
2
7.1 of this Act begins conducting gaming, whichever occurs
3
first, as a condition of licensure and as an alternative
4
source of payment for those funds payable under subsection
5
(c-5) of Section 13 of this Act, any owners licensee that holds
6
or receives its owners license on or after May 26, 2006 (the
7
effective date of Public Act 94-804), other than an owners
8
licensee operating a riverboat with adjusted gross receipts in
9
calendar year 2004 of less than $200,000,000, must pay into
10
the Horse Racing Equity Trust Fund, in addition to any other
11
payments required under this Act, an amount equal to 3% of the
12
adjusted gross receipts received by the owners licensee. The
13
payments required under this Section shall be made by the
14
owners licensee to the State Treasurer no later than 3:00
15
o'clock
p.m. of the day after the day when the adjusted gross
16
receipts were received by the owners licensee. A person or
17
entity is ineligible to receive an owners license if:
18

(1) the person has been convicted of a felony under
19

the laws of this State, any other state, or the United
20

States;
21

(2) the person has been convicted of any violation of
22

Article 28 of the Criminal Code of 1961 or the Criminal
23

Code of 2012, or substantially similar laws of any other
24

jurisdiction;
25

(3) the person has submitted an application for a
26

license under this Act which contains false information;

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1

(4) the person is a member of the Board;
2

(5) a person defined in (1), (2), (3), or (4) is an
3

officer, director, or managerial employee of the entity;
4

(6) the entity employs a person defined in (1), (2),
5

(3), or (4) who participates in the management or
6

operation of gambling operations authorized under this
7

Act;
8

(7) (blank); or
9

(8) a license of the person or entity issued under
10

this Act, or a license to own or operate gambling
11

facilities in any other jurisdiction, has been revoked.
12

The Board is expressly prohibited from making changes to
13
the requirement that licensees make payment into the Horse
14
Racing Equity Trust Fund without the express authority of the
15
Illinois General Assembly and making any other rule to
16
implement or interpret Public Act 95-1008. For the purposes of
17
this paragraph, "rules" is given the meaning given to that
18
term in Section 1-70 of the Illinois Administrative Procedure
19
Act.
20

(b) In determining whether to grant an owners license to
21
an applicant, the Board shall consider:
22

(1) the character, reputation, experience, and
23

financial integrity of the applicants and of any other or
24

separate person that either:
25

(A) controls, directly or indirectly, such
26

applicant; or

SB2723
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LRB104 15890 LNS 29116 b
1

(B) is controlled, directly or indirectly, by such
2

applicant or by a person which controls, directly or
3

indirectly, such applicant;
4

(2) the facilities or proposed facilities for the
5

conduct of gambling;
6

(3) the highest prospective total revenue to be
7

derived by the State from the conduct of gambling;
8

(4) the extent to which the ownership of the applicant
9

reflects the diversity of the State by including minority
10

persons, women, and persons with a disability and the good
11

faith affirmative action plan of each applicant to
12

recruit, train
,
and upgrade minority persons, women, and
13

persons with a disability in all employment
14

classifications; the Board shall further consider granting
15

an owners license and giving preference to an applicant
16

under this Section to applicants in which minority persons
17

and women hold ownership interest of at least 16% and 4%,
18

respectively;
19

(4.5) the extent to which the ownership of the
20

applicant includes veterans of service in the armed forces
21

of the United States, and the good faith affirmative
22

action plan of each applicant to recruit, train, and
23

upgrade veterans of service in the armed forces of the
24

United States in all employment classifications;
25

(5) the financial ability of the applicant to purchase
26

and maintain adequate liability and casualty insurance;

SB2723
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LRB104 15890 LNS 29116 b
1

(6) whether the applicant has adequate capitalization
2

to provide and maintain, for the duration of a license, a
3

riverboat or casino;
4

(7) the extent to which the applicant exceeds or meets
5

other standards for the issuance of an owners license
6

which the Board may adopt by rule;
7

(8) the amount of the applicant's license bid;
8

(9) the extent to which the applicant or the proposed
9

host municipality plans to enter into revenue sharing
10

agreements with communities other than the host
11

municipality;
12

(10) the extent to which the ownership of an applicant
13

includes the most qualified number of minority persons,
14

women, and persons with a disability; and
15

(11) whether the applicant has entered into a fully
16

executed construction project labor agreement with the
17

applicable local building trades council.
18

(c) Each owners license shall specify the place where the
19
casino shall operate or the riverboat shall operate and dock.
20

(d) Each applicant shall submit with his or her
21
application, on forms provided by the Board, 2 sets of his or
22
her fingerprints.
23

(e) In addition to any licenses authorized under
24
subsection (e-5) of this Section, the Board may issue up to 10
25
licenses authorizing the holders of such licenses to own
26
riverboats. In the application for an owners license, the

SB2723
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1
applicant shall state the dock at which the riverboat is based
2
and the water on which the riverboat will be located. The Board
3
shall issue 5 licenses to become effective not earlier than
4
January 1, 1991. Three of such licenses shall authorize
5
riverboat gambling on the Mississippi River, or, with approval
6
by the municipality in which the riverboat was docked on
7
August 7, 2003 and with Board approval, be authorized to
8
relocate to a new location, in a municipality that (1) borders
9
on the Mississippi River or is within 5 miles of the city
10
limits of a municipality that borders on the Mississippi River
11
and (2) on August 7, 2003, had a riverboat conducting
12
riverboat gambling operations pursuant to a license issued
13
under this Act; one of which shall authorize riverboat
14
gambling from a home dock in the city of East St. Louis; and
15
one of which shall authorize riverboat gambling from a home
16
dock in the City of Alton. One other license shall authorize
17
riverboat gambling on the Illinois River in the City of East
18
Peoria or, with Board approval, shall authorize land-based
19
gambling operations anywhere within the corporate limits of
20
the City of Peoria. The Board shall issue one additional
21
license to become effective not earlier than March 1, 1992,
22
which shall authorize riverboat gambling on the Des Plaines
23
River in Will County. The Board may issue 4 additional
24
licenses to become effective not earlier than March 1, 1992.
25
In determining the water upon which riverboats will operate,
26
the Board shall consider the economic benefit which riverboat

SB2723
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LRB104 15890 LNS 29116 b
1
gambling confers on the State
,
and shall seek to
ensure

assure

2
that all regions of the State share in the economic benefits of
3
riverboat gambling.
4

In granting all licenses, the Board may give favorable
5
consideration to economically depressed areas of the State, to
6
applicants presenting plans which provide for significant
7
economic development over a large geographic area, and to
8
applicants who currently operate non-gambling riverboats in
9
Illinois. The Board shall review all applications for owners
10
licenses
,
and shall inform each applicant of the Board's
11
decision. The Board may grant an owners license to an
12
applicant that has not submitted the highest license bid, but
13
if it does not select the highest bidder, the Board shall issue
14
a written decision explaining why another applicant was
15
selected and identifying the factors set forth in this Section
16
that favored the winning bidder. The fee for issuance or
17
renewal of a license pursuant to this subsection (e) shall be
18
$250,000.
19

(e-5) In addition to licenses authorized under subsection
20
(e) of this Section:
21

(1) the Board may issue one owners license authorizing
22

the conduct of casino gambling in the City of Chicago;
23

(2) the Board may issue one owners license authorizing
24

the conduct of riverboat gambling in the City of Danville;
25

(3) the Board may issue one owners license authorizing
26

the conduct of riverboat gambling in the City of Waukegan;

SB2723
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LRB104 15890 LNS 29116 b
1

(4) the Board may issue one owners license authorizing
2

the conduct of riverboat gambling in the City of Rockford;
3

(5) the Board may issue one owners license authorizing
4

the conduct of riverboat gambling in a municipality that
5

is wholly or partially located in one of the following
6

townships of Cook County: Bloom, Bremen, Calumet, Rich,
7

Thornton, or Worth Township; and
8

(6) the Board may issue one owners license authorizing
9

the conduct of riverboat gambling in the unincorporated
10

area of Williamson County adjacent to the Big Muddy River.
11

Except for the license authorized under paragraph (1),
12
each application for a license pursuant to this subsection
13
(e-5) shall be submitted to the Board no later than 120 days
14
after June 28, 2019 (the effective date of Public Act 101-31).
15
All applications for a license under this subsection (e-5)
16
shall include the nonrefundable application fee and the
17
nonrefundable background investigation fee as provided in
18
subsection (d) of Section 6 of this Act. In the event that an
19
applicant submits an application for a license pursuant to
20
this subsection (e-5) prior to June 28, 2019 (the effective
21
date of Public Act 101-31), such applicant shall submit the
22
nonrefundable application fee and background investigation fee
23
as provided in subsection (d) of Section 6 of this Act no later
24
than 6 months after June 28, 2019 (the effective date of Public
25
Act 101-31).
26

The Board shall consider issuing a license pursuant to

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LRB104 15890 LNS 29116 b
1
paragraphs (1) through (6) of this subsection only after the
2
corporate authority of the municipality or the county board of
3
the county in which the riverboat or casino shall be located
4
has certified to the Board the following:
5

(i) that the applicant has negotiated with the
6

corporate authority or county board in good faith;
7

(ii) that the applicant and the corporate authority or
8

county board have mutually agreed on the permanent
9

location of the riverboat or casino;
10

(iii) that the applicant and the corporate authority
11

or county board have mutually agreed on the temporary
12

location of the riverboat or casino;
13

(iv) that the applicant and the corporate authority or
14

the county board have mutually agreed on the percentage of
15

revenues that will be shared with the municipality or
16

county, if any;
17

(v) that the applicant and the corporate authority or
18

county board have mutually agreed on any zoning,
19

licensing, public health, or other issues that are within
20

the jurisdiction of the municipality or county;
21

(vi) that the corporate authority or county board has
22

passed a resolution or ordinance in support of the
23

riverboat or casino in the municipality or county;
24

(vii)
that
the applicant for a license under paragraph
25

(1) has made a public presentation concerning its casino
26

proposal; and

SB2723
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LRB104 15890 LNS 29116 b
1

(viii)
that
the applicant for a license under
2

paragraph (1) has prepared a summary of its casino
3

proposal and such summary has been posted on a public
4

website of the municipality or the county.
5

At least 7 days before the corporate authority of a
6
municipality or county board of the county submits a
7
certification to the Board concerning items (i) through (viii)
8
of this subsection, it shall hold a public hearing to discuss
9
items (i) through (viii), as well as any other details
10
concerning the proposed riverboat or casino in the
11
municipality or county. The corporate authority or county
12
board must subsequently memorialize the details concerning the
13
proposed riverboat or casino in a resolution that must be
14
adopted by a majority of the corporate authority or county
15
board before any certification is sent to the Board. The Board
16
shall not alter, amend, change, or otherwise interfere with
17
any agreement between the applicant and the corporate
18
authority of the municipality or county board of the county
19
regarding the location of any temporary or permanent facility.
20

In addition, within 10 days after June 28, 2019 (the
21
effective date of Public Act 101-31), the Board, with consent
22
and at the expense of the City of Chicago, shall select and
23
retain the services of a nationally recognized casino gaming
24
feasibility consultant. Within 45 days after June 28, 2019
25
(the effective date of Public Act 101-31), the consultant
26
shall prepare and deliver to the Board a study concerning the

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LRB104 15890 LNS 29116 b
1
feasibility of, and the ability to finance, a casino in the
2
City of Chicago. The feasibility study shall be delivered to
3
the Mayor of the City of Chicago, the Governor, the President
4
of the Senate, and the Speaker of the House of
5
Representatives. Ninety days after receipt of the feasibility
6
study, the Board shall make a determination, based on the
7
results of the feasibility study, whether to recommend to the
8
General Assembly that the terms of the license under paragraph
9
(1) of this subsection (e-5) should be modified. The Board may
10
begin accepting applications for the owners license under
11
paragraph (1) of this subsection (e-5) upon the determination
12
to issue such an owners license.
13

In addition, prior to the Board issuing the owners license
14
authorized under paragraph (4) of
this
subsection (e-5), an
15
impact study shall be completed to determine what location in
16
the city will provide the greater impact to the region,
17
including the creation of jobs and the generation of tax
18
revenue.
19

(e-10) The licenses authorized under subsection (e-5) of
20
this Section shall be issued within 12 months after the date
21
the license application is submitted. If the Board does not
22
issue the licenses within that time period, then the Board
23
shall give a written explanation to the applicant as to why it
24
has not reached a determination and when it reasonably expects
25
to make a determination. The fee for the issuance or renewal of
26
a license issued pursuant to this subsection (e-10) shall be

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LRB104 15890 LNS 29116 b
1
$250,000. Additionally, a licensee located outside of Cook
2
County shall pay a minimum initial fee of $17,500 per gaming
3
position, and a licensee located in Cook County shall pay a
4
minimum initial fee of $30,000 per gaming position. The
5
initial fees payable under this subsection (e-10) shall be
6
deposited into the Rebuild Illinois Projects Fund. If at any
7
point after June 1, 2020 there are no pending applications for
8
a license under subsection (e-5) and not all licenses
9
authorized under subsection (e-5) have been issued, then the
10
Board shall reopen the license application process for those
11
licenses authorized under subsection (e-5) that have not been
12
issued. The Board shall follow the licensing process provided
13
in subsection (e-5) with all time frames tied to the last date
14
of a final order issued by the Board under subsection (e-5)
15
rather than the effective date of the amendatory Act.
16

(e-15) Each licensee of a license authorized under
17
subsection (e-5) of this Section shall
pay a $15,000,000
18
reconciliation fee upon issuance of an owners license. Each
19
licensee authorized under subsection (e-5) shall
make a
20
reconciliation payment 3 years after the date the licensee
21
begins operating in an amount equal to 75% of the adjusted
22
gross receipts for the most lucrative
consecutive
12-month
23
period of operations, minus an amount equal to
(i)
the initial
24
payment per gaming position paid by the specific licensee
and
25
(ii) the $15,000,000 reconciliation fee
.
Each licensee shall
26
pay a $15,000,000 reconciliation fee upon issuance of an

SB2723
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LRB104 15890 LNS 29116 b
1
owners license.
If this calculation results in a negative
2
amount, then the licensee is not entitled to any reimbursement
3
of fees previously paid. This reconciliation payment may be
4
made in installments over a period of no more than 6 years.
5

All payments by licensees under this subsection (e-15)
6
shall be deposited into the Rebuild Illinois Projects Fund.
7

(e-20) In addition to any other revocation powers granted
8
to the Board under this Act, the Board may revoke the owners
9
license of a licensee which fails to begin conducting gambling
10
within 15 months of receipt of the Board's approval of the
11
application if the Board determines that license revocation is
12
in the best interests of the State.
13

(f) The first 10 owners licenses issued under this Act
14
shall permit the holder to own up to 2 riverboats and equipment
15
thereon for a period of 3 years after the effective date of the
16
license. Holders of the first 10 owners licenses must pay the
17
annual license fee for each of the 3 years during which they
18
are authorized to own riverboats.
19

(g) Upon the termination, expiration, or revocation of
20
each of the first 10 licenses, which shall be issued for a
21
3-year period, all licenses are renewable annually upon
22
payment of the fee and a determination by the Board that the
23
licensee continues to meet all of the requirements of this Act
24
and the Board's rules. However, for licenses renewed on or
25
after
June 10, 2021 (
the effective date of
Public Act 102-13)

26
this amendatory Act of the 102nd General Assembly
, renewal

SB2723
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LRB104 15890 LNS 29116 b
1
shall be for a period of 4 years.
2

(h) An owners license, except for an owners license issued
3
under subsection (e-5) of this Section, shall entitle the
4
licensee to own up to 2 riverboats.
5

An owners licensee of a casino or riverboat that is
6
located in the City of Chicago pursuant to paragraph (1) of
7
subsection (e-5) of this Section shall limit the number of
8
gaming positions to 4,000 for such owner. An owners licensee
9
authorized under subsection (e) or paragraph (2), (3), (4), or
10
(5) of subsection (e-5) of this Section shall limit the number
11
of gaming positions to 2,000 for any such owners license. An
12
owners licensee authorized under paragraph (6) of subsection
13
(e-5) of this Section shall limit the number of gaming
14
positions to 1,200 for such owner. The initial fee for each
15
gaming position obtained on or after June 28, 2019 (the
16
effective date of Public Act 101-31) shall be a minimum of
17
$17,500 for licensees not located in Cook County and a minimum
18
of $30,000 for licensees located in Cook County, in addition
19
to the reconciliation payment, as set forth in subsection
20
(e-15) of this Section. The fees under this subsection (h)
21
shall be deposited into the Rebuild Illinois Projects Fund.
22
The fees under this subsection (h) that are paid by an owners
23
licensee authorized under subsection (e) shall be paid by July
24
1, 2021.
25

Each owners licensee under subsection (e) of this Section
26
shall reserve its gaming positions within 30 days after June

SB2723
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LRB104 15890 LNS 29116 b
1
28, 2019 (the effective date of Public Act 101-31). The Board
2
may grant an extension to this 30-day period, provided that
3
the owners licensee submits a written request and explanation
4
as to why it is unable to reserve its positions within the
5
30-day period.
6

Each owners licensee under subsection (e-5) of this
7
Section shall reserve its gaming positions within 30 days
8
after issuance of its owners license. The Board may grant an
9
extension to this 30-day period, provided that the owners
10
licensee submits a written request and explanation as to why
11
it is unable to reserve its positions within the 30-day
12
period.
13

A licensee may operate both of its riverboats
14
concurrently, provided that the total number of gaming
15
positions on both riverboats does not exceed the limit
16
established pursuant to this subsection. Riverboats licensed
17
to operate on the Mississippi River and the Illinois River
18
south of Marshall County shall have an authorized capacity of
19
at least 500 persons. Any other riverboat licensed under this
20
Act shall have an authorized capacity of at least 400 persons.
21

(h-5) An owners licensee who conducted gambling operations
22
prior to January 1, 2012 and obtains positions pursuant to
23
Public Act 101-31 shall make a reconciliation payment 3 years
24
after any additional gaming positions begin operating in an
25
amount equal to 75% of the owners licensee's average gross
26
receipts for the most lucrative 12-month period of operations

SB2723
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LRB104 15890 LNS 29116 b
1
minus an amount equal to the initial fee that the owners
2
licensee paid per additional gaming position. For purposes of
3
this subsection (h-5), "average gross receipts" means (i) the
4
increase in adjusted gross receipts for the most lucrative
5
12-month period of operations over the adjusted gross receipts
6
for 2019, multiplied by (ii) the percentage derived by
7
dividing the number of additional gaming positions that an
8
owners licensee had obtained by the total number of gaming
9
positions operated by the owners licensee. If this calculation
10
results in a negative amount, then the owners licensee is not
11
entitled to any reimbursement of fees previously paid. This
12
reconciliation payment may be made in installments over a
13
period of no more than 6 years. These reconciliation payments
14
shall be deposited into the Rebuild Illinois Projects Fund.
15

(i) A licensed owner is authorized to apply to the Board
16
for and, if approved therefor, to receive all licenses from
17
the Board necessary for the operation of a riverboat or
18
casino, including a liquor license, a license to prepare and
19
serve food for human consumption, and other necessary
20
licenses. All use, occupation, and excise taxes which apply to
21
the sale of food and beverages in this State and all taxes
22
imposed on the sale or use of tangible personal property apply
23
to such sales aboard the riverboat or in the casino.
24

(j) The Board may issue or re-issue a license authorizing
25
a riverboat to dock in a municipality or approve a relocation
26
under Section 11.2 only if, prior to the issuance or

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re-issuance of the license or approval, the governing body of
2
the municipality in which the riverboat will dock has by a
3
majority vote approved the docking of riverboats in the
4
municipality. The Board may issue or re-issue a license
5
authorizing a riverboat to dock in areas of a county outside
6
any municipality or approve a relocation under Section 11.2
7
only if, prior to the issuance or re-issuance of the license or
8
approval, the governing body of the county has by a majority
9
vote approved of the docking of riverboats within such areas.
10

(k) An owners licensee may conduct land-based gambling
11
operations upon approval by the Board and payment of a fee of
12
$250,000, which shall be deposited into the State Gaming Fund.
13

(l) An owners licensee may conduct gaming at a temporary
14
facility pending the construction of a permanent facility or
15
the remodeling or relocation of an existing facility to
16
accommodate gaming participants for up to 24 months after the
17
temporary facility begins to conduct gaming. Upon request by
18
an owners licensee and upon a showing of good cause by the
19
owners licensee: (i) for a licensee authorized under paragraph
20
(3) of subsection (e-5), the Board shall extend the period
21
during which the licensee may conduct gaming at a temporary
22
facility by up to 30 months; and (ii) for all other licensees,
23
the Board shall extend the period during which the licensee
24
may conduct gaming at a temporary facility by up to 12 months.
25
The Board shall make rules concerning the conduct of gaming
26
from temporary facilities.

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1
(Source: P.A. 102-13, eff. 6-10-21; 102-558, eff. 8-20-21;
2
103-574, eff. 12-8-23; revised 6-26-25.)

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