IGB Emergency Extension Request CCS.pdf

EMERGENCY PURCHASE EXTENSION APPROVAL

State of Illinois Chief Procurement Office for General Services Emergency Purchase Extension Approval v.25.2 Page 1 of 7

Section 20-30(a) of the Procurement Code provides that a contract for an emergency may be extended beyond 90 calendar days with the approval of the chief procurement officer (CPO). Prior to execution of the extension, the CPO shall receive this completed form justifying the extension. The duration of the extension shall be limited to the scope of the emergency.

Zip: 89119State: NVCity: Las Vegas Address: 6601 Bermuda Rd

Vendor: Light and Wonder

Zip: 60601State: ILCity: Chicago Address: 160 North LaSalle Street

Requesting Agency: IGB - IL Gaming Board Division:

Extension Justification BidBuy Reference #:

Amount of original contract: $ 7,000,000

Actual or Estimated: Estimated

Original BidBuy Reference #: 26-565IGB-FISAD-B-50521

Original Emergency Term Start Date: Jan 1, 2026 Original Emergency Term End Date: Mar 31, 2026

Expected Extension Start Date: Apr 1, 2026 Expected Extension End Date: Jun 30, 2027

Amount of extension contract: $ 36,000,000 Actual or Estimated: Estimated

Is there BEP participation on this contract? If no, explain why

The NIGP commodity code used to calculate the formula came up with zero vendors. IGB determined that participation would not be feasible for this emergency extension.

Has this emergency contract been extended before? Please detail in the space below:

BidBuy Reference # Amount Start Date End Date

$0.00

$0.00

$0.00

1. Provide detail about the events that led the agency to conduct an emergency procurement:

It should be noted that the fee for the Central Communication System (CCS) is a no cost contract to the State. The fee is imposed on the video gaming revenue generated from video gaming licensees. The fee does not impact state or local revenue generation.

The Illinois Gaming Board (IGB) previously issued two Request for Proposals (RFPs) for a vendor for the video gaming Central Communication System (CCS) in 2024 and 2025. The CCS is a critical system the IGB uses to monitor, regulate, and report on video gaming activity statewide. Both of those RFPs were ultimately canceled. The IGB began operating under a sole source contract with Light & Wonder on January 1, 2024. This sole source contract is scheduled to expire on December 31, 2025. The first RFP was issued on June 18, 2024 and canceled on October 1, 2024. The second RFP was published on November 4, 2024 and was canceled on July 5, 2025. These unsuccessful competitive solicitations for the operation of the CCS significantly

Emergency Purchase Extension Approval v.25.2 Page 2 of 7

Section 20-30(a) of the Procurement Code provides that a contract for an emergency may be extended beyond 90 calendar days with the approval of the chief procurement officer (CPO). Prior to execution of the extension, the CPO shall receive this completed form justifying the extension. The duration of the extension shall be limited to the scope of the emergency.

Zip: 89119State: NVCity: Las Vegas Address: 6601 Bermuda Rd

Vendor: Light and Wonder

Zip: 60601State: ILCity: Chicago Address: 160 North LaSalle Street

Requesting Agency: IGB - IL Gaming Board Division:

delayed the ability to secure a new contract.

In order to continue the competitive procurement process and secure a long-term CCS vendor, the IGB developed and published an Invitation for Bid (IFB) for a CCS vendor on November 6, 2025. The IGB intended to issue a notice of award on November 15, 2025, which would have given the IGB and the awarded vendor time to identify the actions necessary to address the sole source contract expiration on December 31, 2025. However, due to a protest regarding the specifications of the IFB, the IGB extended the bid opening date to January 6, 2026. Because the protest remained unresolved at that time, the Board again extended the bid opening date to January 16, 2026. The Chief Procurement Officer (CPO) ultimately denied the protest, and the IGB issued a notice of award to LNW Gaming, Inc., on January 16, 2026. After the first bid opening extension, the IGB decided to pursue a 90-day emergency contract from January 1, 2026 to March 31, 2026 with Light & Wonder to ensure continuity of CCS operations until the protest was resolved.

The IFB contains a mandatory Transition and Upgrade Phase, during which the new vendor must transition the existing CCS hardware and software to the most up-to-date, IGB approved system with updated and newly deployed hardware and software. The vendor was required at the time of bid submission to include a comprehensive transition and upgrade plan with detailed timelines and milestones for the transition and upgrade of services, with full completion required by December 31, 2027.

Because LNW Gaming, Inc. is a new vendor, the transition will require replacement and migration of the entire CCS to a new platform. The awarded vendor outlined its transition plan in the documents submitted to the IGB as part of the IFB response.

The transition plan is expected to require approximately 15 months after contract execution to begin full system transition activities. It is possible that the awarded vendor could complete the transition quicker than the 15 month term of this emergency extension in which case, the emergency extension contract would end early. Under the terms of the IFB, the transition and upgrade phase must ultimately be completed by December 31, 2027, at which point the new vendor will have assumed full ownership and operation of the CCS and will deliver 100% of required services.

During the transition and upgrade phase, the new vendor will be responsible for upgrading hardware and software components, implementing new system infrastructure, and coordinating the transfer of licensed establishments from the current CCS to the new system. When licensed establishments are transferred and upgraded to the new CCS, the new vendor will begin receiving payments as a percentage of Net Terminal Income (NTI) from those locations in accordance with the pricing structure submitted in its bid.

During this transition period, the new vendor is also responsible for maintaining uninterrupted service delivery and covering all operating costs related to video gaming terminals (VGTs) and the CCS until each location is successfully transferred or upgraded. The new vendor must manage the transfer of data and hardware from the previous vendor where applicable, monitor gaming activity throughout the transition, and ensure that all system components meet IGB technical and regulatory standards.

Prior to deployment of the new system, the CCS must be tested and certified for compliance with the functional specifications required under the contract. The CCS must also undergo ongoing testing and certification at least annually by an independent test laboratory certified to provide testing services associated with video gaming in Illinois. The implementation process

Emergency Purchase Extension Approval v.25.2 Page 3 of 7

Section 20-30(a) of the Procurement Code provides that a contract for an emergency may be extended beyond 90 calendar days with the approval of the chief procurement officer (CPO). Prior to execution of the extension, the CPO shall receive this completed form justifying the extension. The duration of the extension shall be limited to the scope of the emergency.

Zip: 89119State: NVCity: Las Vegas Address: 6601 Bermuda Rd

Vendor: Light and Wonder

Zip: 60601State: ILCity: Chicago Address: 160 North LaSalle Street

Requesting Agency: IGB - IL Gaming Board Division:

requires that all new software, hardware, and service elements of the CCS be delivered, installed, tested, and placed into production before the new system becomes operational.

Additionally, a significant amount of pre-existing information and operational processes must be integrated into the new CCS.

Existing CCS data and information must be housed in the new system, and the transition must occur without loss of data or interruption of statewide video gaming operations. Prior to system operation, the new vendor must provide the IGB with a comprehensive catalog describing the types of data captured by the CCS, including player data, game performance metrics, financial transactions, and any anomalies or security breaches. This catalog must describe how such data will be stored, processed, and protected, and it must be reviewed and approved by the IGB before the CCS becomes operational.

The new vendor must also provide a detailed outline of the reporting functions the system will offer, including customizable reporting capabilities, real-time analytics, and automated reporting tools. For each report type, the new or existing vendor must identify the data sources, the frequency of report generation, and the methods by which reports can be tailored to meet the IGB’s monitoring and regulatory needs. These reporting capabilities must also be reviewed and approved by the IGB prior to the system becoming operational.

Due to the procurement delays caused by the cancellation of two prior RFPs, the bid protest associated with the IFB, and the extensive transition and upgrade period required to implement the new CCS, the IGB must secure continued operation of the current CCS on an interim basis through this 15 month emergency purchase extension. Without this emergency procurement, the agency would risk disruption to the monitoring and regulation of video gaming terminals across the State, which could compromise statutory oversight, revenue reporting, and enforcement capabilities. The approval of this emergency procurement therefore ensures continuity of critical regulatory operations while the new vendor completes the required transition and upgrade of the CCS.

2. What is the scope of work of the initial emergency contract? Please detail below:

The scope of work of the initial emergency contract was to maintain the continued operation, maintenance, and support of the video gaming CCS to ensure uninterrupted statewide monitoring and regulation of video gaming activities by the IGB.

The initial emergency contract provided for the continued operation of the CCS and all associated system services, including secure communications, system hosting, transaction processing, data reporting, and technical support necessary to maintain the statewide video gaming network. These services ensure that all licensed video gaming terminals remain connected to the CCS and that gaming activity, financial transactions, and operational data are continuously monitored and recorded for regulatory and accounting purposes.

Without the emergency contract, video gaming operations in Illinois would effectively cease, as the Video Gaming Act requires that licensed video gaming terminals be connected to a central communications system approved by the IGB to allow for regulatory monitoring and auditing of gaming activity. The absence of a functioning CCS would therefore prevent lawful operation of VGTs and disrupt the State’s ability to regulate video gaming and account for gaming revenues.

The Video Gaming Act established a distributed, statewide network of VGTs connected through a CCS, which allows the IGB to monitor gaming activity and ensure the integrity of video gaming operations. The CCS provides real-time communication with

Emergency Purchase Extension Approval v.25.2 Page 4 of 7

Section 20-30(a) of the Procurement Code provides that a contract for an emergency may be extended beyond 90 calendar days with the approval of the chief procurement officer (CPO). Prior to execution of the extension, the CPO shall receive this completed form justifying the extension. The duration of the extension shall be limited to the scope of the emergency.

Zip: 89119State: NVCity: Las Vegas Address: 6601 Bermuda Rd

Vendor: Light and Wonder

Zip: 60601State: ILCity: Chicago Address: 160 North LaSalle Street

Requesting Agency: IGB - IL Gaming Board Division:

and oversight of each licensed VGT, enabling the Board to monitor wagering activity, detect irregularities, and verify the accuracy of revenue reporting.

Illinois video gaming went live in September 2012 and has since grown into the largest distributed video gaming network of its kind in the world. Illinois currently has one of the largest connected networks of video gaming globally consisting of approximately 9,000 licensed video gaming establishments operating more than 49,000 VGTs statewide.

The CCS tracks and records every financial transaction occurring on the State’s VGTs, including wagers, credits, payouts, and machine performance data. These records are used to calculate NTI, defined as the money inserted into a VGT minus credits paid to players, which serves as the basis for the taxes imposed under the Video Gaming Act.

Through the collection and reporting of this information, the CCS enables the accurate calculation, reporting, and distribution of hundreds of millions of dollars in monthly video gaming revenue and taxes generated by video gaming operations throughout the State.

Accordingly, the scope of the initial emergency contract included ensuring the continuous operation, reliability, and security of the CCS infrastructure, maintaining connectivity for all licensed VGTs and establishments, processing financial and operational data, and supporting the IGB’s statutory responsibilities for oversight, compliance, and revenue accounting under the Video Gaming Act.

3. Does this extension change the scope of work? Yes No If yes, please detail below:

4. Provide justification for extending the original emergency contract:

The extension of the original emergency contract is necessary to ensure the continued operation of the CCS while the Transition and Upgrade Phase to the new vendor is completed.

The existing CCS is technologically outdated and does not provide the level of functionality, scalability, and reporting capabilities required under the current procurement. As a result, the IFB requires the selected vendor to deploy entirely new hardware across approximately 9,000 licensed establishments and implement extensive new software development to support expanded system functionality, reporting, security, and regulatory oversight requirements. This includes the installation, testing, and certification of new CCS infrastructure as well as the integration of substantial preexisting data and operational processes into the new system.

The CCS is a mission critical regulatory system that manages all tax and revenue accounting for approximately 50,000 VGTs operating at roughly 9,000 licensed locations statewide. The system continuously captures gaming activity, financial transactions, and operational data, enabling the IGB to monitor compliance, calculate and distribute tax revenue, and detect

Emergency Purchase Extension Approval v.25.2 Page 5 of 7

Section 20-30(a) of the Procurement Code provides that a contract for an emergency may be extended beyond 90 calendar days with the approval of the chief procurement officer (CPO). Prior to execution of the extension, the CPO shall receive this completed form justifying the extension. The duration of the extension shall be limited to the scope of the emergency.

Zip: 89119State: NVCity: Las Vegas Address: 6601 Bermuda Rd

Vendor: Light and Wonder

Zip: 60601State: ILCity: Chicago Address: 160 North LaSalle Street

Requesting Agency: IGB - IL Gaming Board Division:

anomalies or potential violations. In 2025 alone, video gaming generated approximately $1.1 billion in tax revenue for State and local governments, making uninterrupted operation of the CCS essential to the State’s fiscal and regulatory responsibilities.

There is no viable alternative system that can temporarily replace the existing CCS. The current system must remain operational in order to maintain statewide monitoring of gaming activity, ensure accurate tax and revenue accounting, and allow the IGB to continue regulating licensed video gaming operations without interruption.

Under the IFB requirements, the selected vendor must complete a Transition and Upgrade Phase, which includes upgrading existing hardware and software to the most up-to-date IGB approved system and implementing a comprehensive migration plan. The vendor was required to submit a detailed transition and upgrade plan at the time of bid, including timelines, milestones, and system implementation requirements, with full completion required by December 31, 2027. The IGB anticipates that the transition phase to the new vendor will be completed by June 30, 2027. This emergency extension would cover the complete transition to the new CCS. During this phase, the vendor must deliver and install all new hardware and software components, integrate existing CCS data into the new system, and ensure the new CCS can transition from the existing system without loss of data or interruption of statewide video gaming operations.

The transition process also requires that the new CCS undergo extensive testing and certification prior to deployment, including certification by an independent laboratory approved to test video gaming systems in Illinois. In addition, the vendor must develop and implement enhanced system capabilities, including expanded reporting tools, real-time analytics, secure data storage, and automated reporting functions tailored to the IGB’s regulatory needs. The vendor must also provide a comprehensive catalog of all data captured by the CCS, including player data, game performance metrics, financial transactions, and security anomalies, along with documentation describing how such data will be stored, processed, and protected.

Because the implementation of the new CCS requires significant software development, system integration, hardware deployment across thousands of locations, and extensive testing and certification, the transition cannot occur immediately. The existing CCS must remain in place to ensure continuity of operations while licensed establishments are gradually transferred to the new system. The transition will only be considered complete once the new vendor has assumed full ownership and operational responsibility for the CCS and is delivering 100% of required services.

Accordingly, the extension of the original emergency contract is necessary to maintain uninterrupted operation of the existing CCS during the transition period. Without this extension, the State would face a disruption in its ability to monitor and regulate gaming activity, address responsible gaming, account for gaming revenues, and collect and distribute tax revenues generated by the video gaming industry. Extending the emergency contract therefore ensures regulatory continuity, protects over $1 billion in annual state and local revenue, and allows the State to complete the complex transition to a modernized CCS without jeopardizing statewide video gaming oversight.

5. Does this emergency contract correct or eliminate the emergency condition?

Yes No Please detail:

Emergency Purchase Extension Approval v.25.2 Page 6 of 7

Section 20-30(a) of the Procurement Code provides that a contract for an emergency may be extended beyond 90 calendar days with the approval of the chief procurement officer (CPO). Prior to execution of the extension, the CPO shall receive this completed form justifying the extension. The duration of the extension shall be limited to the scope of the emergency.

Zip: 89119State: NVCity: Las Vegas Address: 6601 Bermuda Rd

Vendor: Light and Wonder

Zip: 60601State: ILCity: Chicago Address: 160 North LaSalle Street

Requesting Agency: IGB - IL Gaming Board Division:

Yes this emergency extension will allow the transition from the current CCS to transition the new CCS by end of Q2 in 2027.

6. Explain why the need cannot be met through a competitive procurement process.

This need was met through a competitive procurement process. A notice of award was issued to a new vendor on 1/16/26. This emergency extension will allow for the continued operation of the CCS by the current vendor until the transition to the new CCS is completed in Q2 of 2027.

7. Is a competitive procurement in process to replace this emergency contract?

Yes No Status: awarded but contract not executed

8. What is the effect of a denial of this extension request?

A denial of the emergency extension would have immediate and significant fiscal and regulatory consequences for the State of Illinois and participating local governments.

If the emergency extension were denied, the video gaming CCS would no longer be able to operate under a valid contract, which would effectively prevent the continued lawful operation of video gaming terminals across the State. Under the Illinois Video Gaming Act, all licensed video gaming terminals must be connected to and monitored through an approved CCS in order to operate legally. Without a functioning CCS, video gaming operations statewide would be forced to cease immediately.

As a result, the State and local governments would experience the immediate loss of tens, if not hundreds, of millions of dollars in revenue, as video gaming generates substantial monthly tax receipts derived from NTI. These revenues are distributed among the State, municipalities, and other designated funds and represent a significant and ongoing source of public revenue.

In addition to the fiscal impact, denial of the extension would eliminate the Illinois Gaming Board’s ability to monitor, regulate, and administer video gaming operations statewide. The CCS is the primary regulatory tool used by the Illinois Gaming Board to track gaming activity, verify financial transactions, monitor compliance with statutory and regulatory requirements, and detect irregularities or potential violations. Without the CCS, the IGB would lose real-time visibility into the operation of approximately 49,000 video gaming terminals located at roughly 9,000 licensed establishments throughout Illinois.

A denial would therefore halt lawful video gaming operations, disrupt a major source of State and local revenue, and prevent the Illinois Gaming Board from carrying out its regulatory responsibilities under the Video Gaming Act. Accordingly, extending the emergency contract is necessary to ensure continuity of operations, continued revenue collection, and uninterrupted regulatory oversight while the State completes the transition to a new Central Communication System vendor.

Emergency Purchase Extension Approval v.25.2 Page 7 of 7

Section 20-30(a) of the Procurement Code provides that a contract for an emergency may be extended beyond 90 calendar days with the approval of the chief procurement officer (CPO). Prior to execution of the extension, the CPO shall receive this completed form justifying the extension. The duration of the extension shall be limited to the scope of the emergency.

Zip: 89119State: NVCity: Las Vegas Address: 6601 Bermuda Rd

Vendor: Light and Wonder

Zip: 60601State: ILCity: Chicago Address: 160 North LaSalle Street

Requesting Agency: IGB - IL Gaming Board Division:

BidBuy Reference #:

Signatures below cannot be delegated.

APO Signature I am requesting an extension of the requested emergency contract. I believe all statements herein are true and correct to the best of my knowledge.

APO Signature: Date:

SPO Signature

SPO Signature: Date:

CPO Signature Based on my review, I approve the Agency to proceed in accordance with the emergency contract extension detailed in this document.

Based upon my review, I approve the Agency to proceed with the following changes:

CPO Signature: Date: Mar 17, 2026

Page of

Section 20-30(a) of the Procurement Code provides that a contract for an emergency may be extended beyond 90 calendar days with the approval of the chief procurement officer (CPO). Prior to execution of the extension, the CPO shall receive this completed form justifying the extension. The duration of the extension shall be limited to the scope of the emergency.

State of Illinois Chief Procurement Office for General Services Emergency Purchase Extension Approval v. 25.2

EMERGENCY PURCHASE EXTENSION APPROVAL

State of Illinois Chief Procurement Office for General Services Emergency Purchase Extension Approval v.25.2 Page of Section 20-30(a) of the Procurement Code provides that a contract for an emergency may be extended beyond 90 calendar days with the approval of the chief procurement officer (CPO). Prior to execution of the extension, the CPO shall receive this completed form justifying the extension. The duration of the extension shall be limited to the scope of the emergency.

Extension Justification Actual or Estimated:

Has this emergency contract been extended before? Please detail in the space below:

BidBuy Reference # Amount Start Date End Date

1. Provide detail about the events that led the agency to conduct an emergency procurement:

2. What is the scope of work of the initial emergency contract? Please detail below:

3. Does this extension change the scope of work?

If yes, please detail below:

4. Provide justification for extending the original emergency contract:

5. Does this emergency contract correct or eliminate the emergency condition?

Please detail:

6. Explain why the need cannot be met through a competitive procurement process.

7. Is a competitive procurement in process to replace this emergency contract?

8. What is the effect of a denial of this extension request?

Signatures below cannot be delegated.

APO Signature I am requesting an extension of the requested emergency contract. I believe all statements herein are true and correct to the best of my knowledge.

SPO Signature CPO Signature 11.0.0.20130303.1.892433.887364

The Illinois Gaming Board (IGB) previously issued two Request for Proposals (RFPs) for a vendor for the video gaming Central Communication System (CCS) in 2024 and 2025. The CCS is a critical system the IGB uses to monitor, regulate, and report on video gaming activity statewide. Both of those RFPs were ultimately canceled. The IGB began operating under a sole source contract with Light & Wonder on January 1, 2024. This sole source contract is scheduled to expire on December 31, 2025. The first RFP was issued on June 18, 2024 and canceled on October 1, 2024. The second RFP was published on November 4, 2024 and was canceled on July 5, 2025. These unsuccessful competitive solicitations for the operation of the CCS significantly delayed the ability to secure a new contract.

In order to continue the competitive procurement process and secure a long-term CCS vendor, the IGB developed and published an Invitation for Bid (IFB) for a CCS vendor on November 6, 2025. The IGB intended to issue a notice of award on November 15, 2025, which would have given the IGB and the awarded vendor time to identify the actions necessary to address the sole source contract expiration on December 31, 2025. However, due to a protest regarding the specifications of the IFB, the IGB extended the bid opening date to January 6, 2026. Because the protest remained unresolved at that time, the Board again extended the bid opening date to January 16, 2026. The Chief Procurement Officer (CPO) ultimately denied the protest, and the IGB issued a notice of award to LNW Gaming, Inc., on January 16, 2026. After the first bid opening extension, the IGB decided to pursue a 90-day emergency contract from January 1, 2026 to March 31, 2026 with Light & Wonder to ensure continuity of CCS operations until the protest was resolved.

The IFB contains a mandatory Transition and Upgrade Phase, during which the new vendor must transition the existing CCS hardware and software to the most up-to-date, IGB approved system with updated and newly deployed hardware and software. The vendor was required at the time of bid submission to include a comprehensive transition and upgrade plan with detailed timelines and milestones for the transition and upgrade of services, with full completion required by December 31, 2027.

Because LNW Gaming, Inc. is a new vendor, the transition will require replacement and migration of the entire CCS to a new platform. The awarded vendor outlined its transition plan in the documents submitted to the IGB as part of the IFB response. The transition plan is expected to require approximately 15 months after contract execution to begin full system transition activities. It is possible that the awarded vendor could complete the transition quicker than the 15 month term of this emergency extension in which case, the emergency extension contract would end early. Under the terms of the IFB, the transition and upgrade phase must ultimately be completed by December 31, 2027, at which point the new vendor will have assumed full ownership and operation of the CCS and will deliver 100% of required services.

During the transition and upgrade phase, the new vendor will be responsible for upgrading hardware and software components, implementing new system infrastructure, and coordinating the transfer of licensed establishments from the current CCS to the new system. When licensed establishments are transferred and upgraded to the new CCS, the new vendor will begin receiving payments as a percentage of Net Terminal Income (NTI) from those locations in accordance with the pricing structure submitted in its bid.

During this transition period, the new vendor is also responsible for maintaining uninterrupted service delivery and covering all operating costs related to video gaming terminals (VGTs) and the CCS until each location is successfully transferred or upgraded. The new vendor must manage the transfer of data and hardware from the previous vendor where applicable, monitor gaming activity throughout the transition, and ensure that all system components meet IGB technical and regulatory standards.

Prior to deployment of the new system, the CCS must be tested and certified for compliance with the functional specifications required under the contract. The CCS must also undergo ongoing testing and certification at least annually by an independent test laboratory certified to provide testing services associated with video gaming in Illinois. The implementation process requires that all new software, hardware, and service elements of the CCS be delivered, installed, tested, and placed into production before the new system becomes operational.

Additionally, a significant amount of pre-existing information and operational processes must be integrated into the new CCS. Existing CCS data and information must be housed in the new system, and the transition must occur without loss of data or interruption of statewide video gaming operations. Prior to system operation, the new vendor must provide the IGB with a comprehensive catalog describing the types of data captured by the CCS, including player data, game performance metrics, financial transactions, and any anomalies or security breaches. This catalog must describe how such data will be stored, processed, and protected, and it must be reviewed and approved by the IGB before the CCS becomes operational.

The new vendor must also provide a detailed outline of the reporting functions the system will offer, including customizable reporting capabilities, real-time analytics, and automated reporting tools. For each report type, the new or existing vendor must identify the data sources, the frequency of report generation, and the methods by which reports can be tailored to meet the IGB’s monitoring and regulatory needs. These reporting capabilities must also be reviewed and approved by the IGB prior to the system becoming operational.

Due to the procurement delays caused by the cancellation of two prior RFPs, the bid protest associated with the IFB, and the extensive transition and upgrade period required to implement the new CCS, the IGB must secure continued operation of the current CCS on an interim basis through this 15 month emergency purchase extension. Without this emergency procurement, the agency would risk disruption to the monitoring and regulation of video gaming terminals across the State, which could compromise statutory oversight, revenue reporting, and enforcement capabilities. The approval of this emergency procurement therefore ensures continuity of critical regulatory operations while the new vendor completes the required transition and upgrade of the CCS.

TextField13: The scope of work of the initial emergency contract was to maintain the continued operation, maintenance, and support of the video gaming CCS to ensure uninterrupted statewide monitoring and regulation of video gaming activities by the IGB.

The initial emergency contract provided for the continued operation of the CCS and all associated system services, including secure communications, system hosting, transaction processing, data reporting, and technical support necessary to maintain the statewide video gaming network. These services ensure that all licensed video gaming terminals remain connected to the CCS and that gaming activity, financial transactions, and operational data are continuously monitored and recorded for regulatory and accounting purposes.

Without the emergency contract, video gaming operations in Illinois would effectively cease, as the Video Gaming Act requires that licensed video gaming terminals be connected to a central communications system approved by the IGB to allow for regulatory monitoring and auditing of gaming activity. The absence of a functioning CCS would therefore prevent lawful operation of VGTs and disrupt the State’s ability to regulate video gaming and account for gaming revenues.

The Video Gaming Act established a distributed, statewide network of VGTs connected through a CCS, which allows the IGB to monitor gaming activity and ensure the integrity of video gaming operations. The CCS provides real-time communication with and oversight of each licensed VGT, enabling the Board to monitor wagering activity, detect irregularities, and verify the accuracy of revenue reporting.

Illinois video gaming went live in September 2012 and has since grown into the largest distributed video gaming network of its kind in the world. Illinois currently has one of the largest connected networks of video gaming globally consisting of approximately 9,000 licensed video gaming establishments operating more than 49,000 VGTs statewide.

The CCS tracks and records every financial transaction occurring on the State’s VGTs, including wagers, credits, payouts, and machine performance data. These records are used to calculate NTI, defined as the money inserted into a VGT minus credits paid to players, which serves as the basis for the taxes imposed under the Video Gaming Act.

Through the collection and reporting of this information, the CCS enables the accurate calculation, reporting, and distribution of hundreds of millions of dollars in monthly video gaming revenue and taxes generated by video gaming operations throughout the State.

Accordingly, the scope of the initial emergency contract included ensuring the continuous operation, reliability, and security of the CCS infrastructure, maintaining connectivity for all licensed VGTs and establishments, processing financial and operational data, and supporting the IGB’s statutory responsibilities for oversight, compliance, and revenue accounting under the Video Gaming Act.

The existing CCS is technologically outdated and does not provide the level of functionality, scalability, and reporting capabilities required under the current procurement. As a result, the IFB requires the selected vendor to deploy entirely new hardware across approximately 9,000 licensed establishments and implement extensive new software development to support expanded system functionality, reporting, security, and regulatory oversight requirements. This includes the installation, testing, and certification of new CCS infrastructure as well as the integration of substantial preexisting data and operational processes into the new system.

The CCS is a mission critical regulatory system that manages all tax and revenue accounting for approximately 50,000 VGTs operating at roughly 9,000 licensed locations statewide. The system continuously captures gaming activity, financial transactions, and operational data, enabling the IGB to monitor compliance, calculate and distribute tax revenue, and detect anomalies or potential violations. In 2025 alone, video gaming generated approximately $1.1 billion in tax revenue for State and local governments, making uninterrupted operation of the CCS essential to the State’s fiscal and regulatory responsibilities.

There is no viable alternative system that can temporarily replace the existing CCS. The current system must remain operational in order to maintain statewide monitoring of gaming activity, ensure accurate tax and revenue accounting, and allow the IGB to continue regulating licensed video gaming operations without interruption.

Under the IFB requirements, the selected vendor must complete a Transition and Upgrade Phase, which includes upgrading existing hardware and software to the most up-to-date IGB approved system and implementing a comprehensive migration plan. The vendor was required to submit a detailed transition and upgrade plan at the time of bid, including timelines, milestones, and system implementation requirements, with full completion required by December 31, 2027. The IGB anticipates that the transition phase to the new vendor will be completed by June 30, 2027. This emergency extension would cover the complete transition to the new CCS. During this phase, the vendor must deliver and install all new hardware and software components, integrate existing CCS data into the new system, and ensure the new CCS can transition from the existing system without loss of data or interruption of statewide video gaming operations.

The transition process also requires that the new CCS undergo extensive testing and certification prior to deployment, including certification by an independent laboratory approved to test video gaming systems in Illinois. In addition, the vendor must develop and implement enhanced system capabilities, including expanded reporting tools, real-time analytics, secure data storage, and automated reporting functions tailored to the IGB’s regulatory needs. The vendor must also provide a comprehensive catalog of all data captured by the CCS, including player data, game performance metrics, financial transactions, and security anomalies, along with documentation describing how such data will be stored, processed, and protected.

Because the implementation of the new CCS requires significant software development, system integration, hardware deployment across thousands of locations, and extensive testing and certification, the transition cannot occur immediately. The existing CCS must remain in place to ensure continuity of operations while licensed establishments are gradually transferred to the new system. The transition will only be considered complete once the new vendor has assumed full ownership and operational responsibility for the CCS and is delivering 100% of required services.

Accordingly, the extension of the original emergency contract is necessary to maintain uninterrupted operation of the existing CCS during the transition period. Without this extension, the State would face a disruption in its ability to monitor and regulate gaming activity, address responsible gaming, account for gaming revenues, and collect and distribute tax revenues generated by the video gaming industry. Extending the emergency contract therefore ensures regulatory continuity, protects over $1 billion in annual state and local revenue, and allows the State to complete the complex transition to a modernized CCS without jeopardizing statewide video gaming oversight.

If the emergency extension were denied, the video gaming CCS would no longer be able to operate under a valid contract, which would effectively prevent the continued lawful operation of video gaming terminals across the State. Under the Illinois Video Gaming Act, all licensed video gaming terminals must be connected to and monitored through an approved CCS in order to operate legally. Without a functioning CCS, video gaming operations statewide would be forced to cease immediately.

As a result, the State and local governments would experience the immediate loss of tens, if not hundreds, of millions of dollars in revenue, as video gaming generates substantial monthly tax receipts derived from NTI. These revenues are distributed among the State, municipalities, and other designated funds and represent a significant and ongoing source of public revenue.

In addition to the fiscal impact, denial of the extension would eliminate the Illinois Gaming Board’s ability to monitor, regulate, and administer video gaming operations statewide. The CCS is the primary regulatory tool used by the Illinois Gaming Board to track gaming activity, verify financial transactions, monitor compliance with statutory and regulatory requirements, and detect irregularities or potential violations. Without the CCS, the IGB would lose real-time visibility into the operation of approximately 49,000 video gaming terminals located at roughly 9,000 licensed establishments throughout Illinois.

A denial would therefore halt lawful video gaming operations, disrupt a major source of State and local revenue, and prevent the Illinois Gaming Board from carrying out its regulatory responsibilities under the Video Gaming Act. Accordingly, extending the emergency contract is necessary to ensure continuity of operations, continued revenue collection, and uninterrupted regulatory oversight while the State completes the transition to a new Central Communication System vendor.