Current through Register Vol. 48, No. 38, September 20, 2024
a) Petition for Appointment of Receiver
1) The Board may petition the local circuit
court in which the riverboat is situated, as provided under the Code of Civil
Procedure, for appointment of a receiver for a riverboat gambling operation
when any of the following conditions exist:
A)
the Board has suspended, revoked or refused to renew the license of the owner;
or
B) the riverboat gambling
operation is closing and the owner is voluntarily surrendering the Owner's
license.
2) A copy of
the petition and notice of a hearing shall be served on the holder of an
Owner's license as provided under the Code of Civil Procedure, 735 ILCS 5/2-201
through 2 -213.
3) The holder of an
Owner's license may seek review before the Illinois Gaming Board for the
revocation, non-renewal, or suspension of the license. However, the circuit
court in which the Board has filed a petition for a receiver shall have sole
jurisdiction over any and all issues pertaining to the appointment of a
receiver. In no instance shall the holder of an Owner's license seek review of
the appointment of a receiver or decision of the Board to seek appointment of a
receiver under any of the Board's administrative procedures.
4) The Board may seek appointment of a
receiver for a riverboat gambling operation on an emergency basis, as provided
under the Code of Civil Procedure, and seek appointment of an interim receiver
or a receiver pendente lite.
5) The
Board shall specify the specific powers, duties, and limitations the Board
seeks for the receiver, including but not limited to the authority to:
A) hire, fire, promote and discipline
personnel and retain outside employees or consultants;
B) take possession of any and all property,
including but not limited to books, records and papers;
C) preserve and/or dispose of any and all
property;
D) continue and direct
the gaming operations under the monitoring of the Board;
E) discontinue and dissolve the gaming
operation;
F) enter into and cancel
contracts;
G) borrow money and
pledge, mortgage or otherwise encumber the property;
H) pay all secured and unsecured
obligations;
I) institute or defend
actions by or on behalf of the holder of an Owner's license; and
J) distribute earnings derived from gaming
operations in the same manner as admission and wagering taxes are distributed
under Sections 12 and 13 of the Riverboat Gambling Act.
b) Receiver and Duties of the
Receiver
1) The Board shall submit at least
three nominees to the court. The nominees may be individuals or entities
selected from a Board approved list of pre-qualified receivers who meet the
same criteria for a finding of preliminary suitability for licensure under
Section
3000.230(c)(2)(B)
and (C). In the event that the Board seeks
the appointment of a receiver on an emergency basis, the Board shall submit at
least two nominees selected from the Board approved list of pre-qualified
receivers to the court and shall issue a Temporary Operating Permit to the
receiver appointed by the court.
2)
A receiver, upon appointment by the court, shall before assuming his or her
duties execute and post the same bond as an Owner's licensee pursuant to
Section 10 of the Riverboat Gambling Act.
3) The receiver shall function as an
independent contractor, subject to the direction of the court. However, the
receiver shall also provide to the Board regular reports and provide any
information deemed necessary for the Board to ascertain the receiver's
compliance with all applicable rules and laws. From time to time, the Board
may, at its sole discretion, report to the court on the receiver's level of
compliance and any other information deemed appropriate for disclosure to the
court.
4) The term of the receiver
shall be set by the court.
5) The
receiver shall provide to the court and the Board at least 30 days written
notice of any intent to withdraw from the appointment or to seek modification
of the appointment.
c)
Compensation
1) The Court shall set the
amount of reasonable compensation, fees, and expenses to be assessed and
retained by the receiver from the adjusted gross receipts of the riverboat
gambling operation, after the payment of wagering taxes and admission taxes and
any other State or federal taxes, for the services, costs, and expenses of the
receiver or for the persons whom the receiver may engage to assist him or her
in performing his or her duties, unless otherwise set by court. The Board shall
provide to the court its recommendation for a reasonable compensation at the
time that the Board submits its recommendation for a receiver.
2) The receiver shall maintain and provide to
the Court and the Board a complete accounting of all expenses and costs
incurred in relation to the receiver's duties. The receiver shall maintain
accounting records for a period of at least five years from the date of
termination of the appointment.
d) Effect on the Holder of an Owner's License
and the Gaming Operation
Except as otherwise provided by action of the Board, the
gaming operation shall be deemed a licensed operation subject to all rules of
the Board. The receiver, his or her outside employees and consultants, and
employees of and suppliers to the gaming operation shall be subject to all
rules of the Board.
e)
Action of the Board
If the Board determines to file a Petition for Appointment of
Receiver, it shall direct the Administrator to seek representation from the
Attorney General and to undertake any and all activities related to the filing
of the petition. The Board shall direct the Administrator to undertake any and
all activities related to the monitoring of the gaming operation during the
duration of the appointment of a receiver. The Board may act under this Section
when also acting under Sections
3000.110,
3000.230
and
3000.236
as provided in subsection (a)(1) of this Section, or at any time after it
issues a final administrative order pursuant to Subparts D and K of this
Part.
