§3000.238. Appointment of Receiver for an Owner's License

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.

 

(Source:  Added at 25 Ill. Reg. 94, effective January 8, 2001)