Ill. Admin. Code tit. 11, § 1800.340 - Change in Ownership of Terminal Operators and Assets Held by Terminal Operators
a)
Notwithstanding any other Subpart, any ownership interest in a licensed
terminal operator may only be transferred with leave of the Board. Any
ownership interest in a business entity, other than a publicly traded
corporation that has an interest in a licensed terminal operator may only be
transferred with leave of the Board.
1) Any
person , other than a licensed terminal operator, seeking to acquire less than a
100% ownership interest in a licensed terminal operator must complete either a
Business Entity or Personal Disclosure Form, whichever is applicable, and
provide any other information specifically requested by the Board, including,
but not limited to:
A) the reason for
acquisition of ownership interest ; and
B) disclosure of other ownership
interests.
2) Any
person , other than a licensed terminal operator, seeking to acquire a 100%
ownership interest in a licensed terminal operator must complete a terminal
operator application .
3) Any
licensed terminal operator seeking to acquire an ownership interest in another
licensed terminal operator must provide any information requested by the Board,
including, but not limited to, the information specified in subsections
(a)(1)(A) and (a)(1)(B).
4) The
Board shall investigate persons seeking to acquire an ownership interest in a
licensed terminal operator.
5) The
Board shall grant leave to transfer an ownership interest in a terminal
operator only after the Board is satisfied that the transaction does not
adversely affect public confidence and trust in gaming , does not pose a threat
to the public interests of the State or to the security and integrity of video
gaming , and does not discredit or tend to discredit the Illinois gaming
industry or the State of Illinois. The Board shall consider, without
limitation, the licensing criteria found in the Act and in Section
1800.420
in deciding whether to grant leave to transfer an ownership interest .
6) The Board shall also consider whether
granting leave to transfer an ownership interest in a terminal operator will
result in undue economic concentration in the direct or indirect ownership,
control or operation of video terminals in Illinois, as set forth in the Act
and Section
1800.440.
In determining whether transfer of an ownership interest in a terminal operator
will result in undue economic concentration, the Board shall consider the
criteria found in Section
1800.440(c).
The Board shall have the authority to place any restrictions or qualifications
on the terms of a transfer of an ownership interest in a terminal operator that
it deems necessary to prevent or eliminate undue economic
concentration.
7) If the Board
denies a request to transfer an ownership interest of a licensed terminal
operator, the Board shall issue a Notice of Denial and the denied person shall
have the ability to contest the denial in accordance with Subpart G. The denied
person may request a hearing under Subpart F.
8) Upon conclusion of disciplinary
proceedings, the Board shall make a determination within the next two Board
meetings on any request to transfer or sell ownership by a terminal
operator .
9) The Board shall make a
determination on a request for leave to transfer an ownership interest of a
terminal operator within 90 days after the date upon which the requesting party
has provided full and complete disclosure to the Board of all material terms of
the proposed transfer, including but not limited to all information required
under subsections (a)(1), (2) and (3) and Section
1800.520; provided
that, if the terminal operator involved in the proposed transfer has received a
disciplinary complaint from the Board, the period for Board determination shall
extend further to the date of the second Board meeting following conclusion of
the disciplinary proceedings.
b) Any information provided to the Board
under this Section is strictly confidential and shall not be used for any
purposes other than the analysis, evaluation and investigation carried out in
connection with a request under this Section.
c) Except for equipment, no video gaming
asset, including the right to place video gaming terminals at a licensed
establishment, held by a licensed terminal operator may be transferred or
assigned to another licensed terminal operator without prior approval from the
Administrator .
d) The Administrator
may deny the request of any terminal operator to transfer or assign a video
gaming asset to another licensed terminal operator if the Administrator finds
that the request is not in the best interest of gaming in the State. The
Administrator shall determine whether a request to transfer or assign a video
gaming asset is in the best interest of gaming in the State after considering
all relevant factors, including but not limited to:
1) Undue economic concentration based upon
the criteria found in Section
1800.440(c);
2) The integrity of the State's video gaming
industry; and
3) The status of the
licensees with the Board.
e) If the Administrator denies a request to
transfer or assign a video gaming asset under this Section, the Administrator
shall notify the parties in writing.
f) If the Administrator denies a request to
transfer or assign a video gaming asset under this Section, the terminal
operator may only transfer or assign the video gaming asset with leave from the
Board.
Notes
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