City of Chicago's
Frequently Asked Questions
(republished)
- The Ordinance
- Event Promoter
- Promoter Requirements
- Promoters & Venues
- Exemptions
- Penalties
THE ORDINANCE
Why does the City need to regulate event promoters?
Like any growing business industry, licensing regulations need to be in place to ensure a responsible, vibrant and safe entertainment industry in Chicago. Licensing event promoters legitimizes the industry and allows the city to regulate this business in a way that requires event promoters to operate responsibly to ensure the health, safety and welfare of people attending promoted events. With both venue owners and promoters taking responsibility for the safety of their patrons, we increase the probability that an event will be safe.
How was this ordinance developed?
The City has been actively working on an event promoter policy for the past five
years. This ordinance was also a recommendation of The Chicago Independent
Review Panel appointed to investigate the causes of the E2 nightclub tragedy that
claimed the lives of 21 Chicagoans. Since that time, the City has been working with
members of the industry (promoters, venues and other advocacy organizations) to craft
this ordinance. Even before E2, a steady rise in complaints about promoted events
from neighborhood residents, the police department and venue owners had already led
many city officials to conclude that the event promoter industry-an industry radically
transformed within the last ten years by the ease with which the Internet enables
promoters to reach large crowds – was in need of common sense regulation to promote
public safety and tranquility.
Has anyone in the industry been involved in crafting this ordinance?
For the past 2 years the City has held meetings with members of the entertainment industry (promoters, venue owners and advocacy organizations) to understand the industry and address concerns. These meetings have resulted in several positive changes to the ordinance.
If passed, when will this ordinance go into effect?
If the ordinance is passed, it will go into effect in 120 days from the date of passage and publication. With any other ordinance, the Department will develop rules and regulations during the implementation of this ordinance to help clarify. Rules and regulations also allow the City to implement the license requirement in a reasonable manner. The Department of Business Affairs and Licensing will be conducting extensive outreach and education to ensure people understand the requirements of the ordinance.
I have heard that, if passed, this ordinance will hurt the music industry in Chicago, is this true?
Musicians, actors/actresses, comedians, dancers and other performers are not required to obtain a license. This ordinance simply seeks to license promoters to ensure a minimum standard of operations and safety and to hold promoters responsible for their businesses. Additionally, some existing venue owners operating in the City of Chicago already require contracts for any promoted events held at their venues.
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Who is an event promoter?
Persons who are in the business of promoting amusements and events and who receive compensation for providing service that are considered promoted events within the meaning of the proposed ordinance. (See exemptions on page 5.)
I I am an event promoter, why do I need a business license?
It is not unreasonable to require persons who make a living out of promoting events in the City of Chicago and who engage in the business of drawing large crowds to city venues to take common sense steps to ensure that: (1) the safety of the people comprising these crowds is not jeopardized either inside or outside of the venue where the promoted event is being held; and (2) the peace-and-good order of the surrounding community is not unduly disturbed by the crowds of people waiting to enter the promoted event.
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PROMOTER REQUIREMENTS
What is the event promoter required to do?
The requirements are as follows:
- Event promoters must enter into a written contract with the venue owner so that there is there no misunderstanding about: (i) the venue’s maximum occupancy capacity; (ii) how much security will be provided and by whom; (iii) whether any potentially dangerous special effects, such as pyrotechnics, will be used at the event; and (iv) an emergency contact number.
- Event promoters must carry at least a $300,000 general liability insurance policy.
- Event promoters must keep accurate business records.
- Event promoters must have a physical presence at the promoted event (by designating an on-site representative).
- Event promoters must exercise responsibility along with venue owners to ensure that the maximum occupancy of the venue is not exceeded.
- Event promoters must call the police if the event promoter’s on-site representative personally observes or is informed of unlawful activity taking place during the promoted event.
Why is a contract required?
The contract helps identify the responsibilities of parties and to clearly identify occupancy limits and security requirements of the establishment that will help to prevent overcrowding and other potentially dangerous situations. Additionally the contract should outline which party has the responsibility for providing security, if needed, and any special effects. In the case of an emergency the information in the contract is needed to conduct an investigation.
Why is insurance required?
The purpose of insurance is to protect the public and to give an injured person the ability to recover costs from injuries sustained in a public place. Generally, a venue’s insurance policy does not extend to cover acts committed by event promoters or performers.
How much insurance coverage is required and what will it cost to obtain it?
As a licensed event promoter you will be required to obtain a $300,000 general liability insurance policy. The cost of this type of policy varies depending on the size and number of events. It is important to note that many venue owners already routinely
require event promoters to obtain their own “per event” insurance coverage. This “per event” coverage costs about $325 for $500,000 in coverage. Generally, venue owners require promoters to obtain this coverage as their venue insurance does not extend to cover acts committed by event promoters or performers.
How much does the license cost?
License fees are paid by the promoter, based on a two year term and on the capacity of the venue where the promoted event will take place:
| Classification |
Amount |
Venue Capacity |
| Class A |
$2,000 |
2000 and over |
| Class B |
$1,500 |
0-2000 |
| Class C |
$1,000 |
1-500 |
| Class D |
$500 |
0-100 |
It is important to note that over 80% of entertainment venues in Chicago have an attendance capacity of less than 500. That means that most promoters will pay $1,000 or less in license fees every two years.
Do I need to obtain a separate Event Promoter License every time I promote an event?
No, the license is based on a two year term and there is no restriction as to how many events are permitted throughout the duration of the license.
Are out of town promoters required to obtain the license?
Out of town promoters who meet the exemption requirements or promote events exclusively at establishments or venues meeting any of the exemptions listed above are exempt from obtaining the license.
Who is ineligible to hold an Event Promoter License?
Any person who has had a felony conviction within the last 5 years is prohibited from obtaining an Event Promoter License. In addition, any person who has had an Event Promoter License or its equivalent in another jurisdiction suspended or revoked within the last five years is prohibited from obtaining an Event Promoter License.
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How will this ordinance benefit both the promoter and the venue operators?
Venue owners will have the ability to check with the City to make sure a prospective promoter is licensed, thus giving the venue owner and the patron a better sense of the promoter’s level of responsibility. In addition, by utilizing written contracts and insurance, the promoter and venue owner can more clearly specify the duties and responsibilities of each party.
How will these new regulations protect the safety of patrons?
Currently, many event promoters have little incentive to make sure they promote events that are safe, yet they are directly responsible for bringing popular entertainment and large groups of people together. By requiring insurance, the use of contracts and criminal background checks, the event promoter will be held to basic operating standards and will share accountability for safety with the venue owner. These practices provide additional incentive to the venue owner and the event promoter to make sure events are operated in a safe manner.
Isn’t this ordinance requiring a double layer of licensing?
No, the venue with the appropriate amusement license is not required to obtain a Promoter’s license, and the venue is permitted to promote its own events without having to obtain an additional license. The event promoter is a legitimate business, and just like any other business in the City of Chicago, a license is required. Venue owners and event promoters are not the same type of business and therefore require separate business licenses.
What is a Public Place of Amusement License (PPA)?
A PPA is a business license that is required to produce present or conduct any type of amusement. Venues charging an admission fee or accepting a donation for any type of entertainment or amusement require this license. Venues with a capacity of 100 or more people that offer any entertainment or amusement require a PPA, regardless of whether or not an admission fee is charged. For example, live theaters, concert halls, comedy clubs, nightclubs, bowling alleys, and more.
If I am a licensed promoter, can I have my event at a venue that does not have an Amusement License?
In most cases the venue must either have a Public Place of Amusement License, a Performing Arts Venue License, an Indoor Special Event License or an Outdoor Special Event Permit. These licenses/permits ensure that the physical premise has been inspected for public safety compliance. However, if you are having an event at a venue with a capacity of fewer than 100 people and you are not charging admission; an Amusement License is not required.
So can I promote events at these small non-PPA venues without getting a promoters license? Yes. If your event is in a venue with a capacity of less than 100 and there is no charge, admission fee or donation to enter the event, a PPA license is not required and a person promoting an event in this type of venue does not need an Event Promoter license.
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EXEMPTIONS
Who is exempt from obtaining this license?
The following are exempt from obtaining an Event Promoter’s License: print and broadcast media advertising an event, off-premise ticket sellers dealing in advance admission to an event, performers or agents of performers at an event, PPA licensees and employees promoting their own event, employees of a licensed event promoter acting within the scope of employment, not-for-profit corporations promoting their own event and persons who exclusively promote events at PPA-venues or performing arts venues with (i) fixed seating only, if all patrons are seated in such fixed seats; or (ii) a fixed seating capacity of 500 or more persons.
I am a venue owner with a Public Place of Amusement (PPA) license and I promote my own events, or I have a staff that does this, do I need to obtain an Event Promoter License?
No, the ordinance does not require venue owners with a Public Place of Amusement license or their employees who promote their own events to obtain the license. However, if the licensee were to hire a paid event promoter to promote an event at their establishment, the paid event promoter (and not the PPA licensee) is required to obtain an Event Promoter License.
I am a performer and I promote and book my own events. I sell my tickets to the public and advertise my gig on the web, in newspapers and in flyers. Am I required to obtain an Event Promoter License?
No, under the ordinance you are exempt from having to obtain an Event Promoter license. Performers who promote their own events do not have to obtain an event promoters license.
I want to promote an event for a friend of mine who has cancer and we are trying to raise funds for her medical bills. I rented the venue, booked a band and advertised it in every medium possible. It will be open to the public but I won’t be compensated, I do, however, have out of pocket expenses that I hope to cover. Am I required to obtain an Event Promoter License?
No, under the ordinance you are exempt from having to obtain an event promoters license because you are not being compensated. You are allowed to seek reimbursement out of pocket expenses. Expenses are not compensation.
I love the performing arts and constantly encourage and invite others to attend concerts or events at a local PPA venue. Am I required to obtain an Event Promoter License?
No, under the ordinance you are exempt from having to obtain an event promoters license because you promote these events without being paid or seeking other type of personal compensation.
I am in the business of planning private events like weddings, family picnics and other private or invitation-only events that are not open to the general public. Some of these are at PPA venues. Am I required to obtain an Event Promoter License?
No, private events that are not open to the general public are not affected by this ordinance. Individuals who invite or encourage persons to attend private events are not required to obtain an Event Promoter License.
I have a full time job elsewhere but one or two times a year I promote an event at a PPA venue. I do it part-time and I make a little money off the events. It is not my main source of income. I do it primarily for the fun and enjoyment of music and friends. Am I required to obtain an Event Promoter License?
If you are being compensated, in any manner, you are in the business of promoting events and you are required to obtain an Event Promoter License. If you do not get compensated for these events but simply seek your out of pocket expenses, you do not need an Event Promoter License.
I own a venue that has a PPA license. We have many music events that are promoted by my business. I use my employees to promote the event. Am I required to get an Event Promoter License?
No, a licensed amusement venue that promotes events in-house, with its own employees does not have to obtain an Event Promoter License. However, if you hire and pay an outside promoter to promote the event, the outside promoter must have an Event Promoter License.
We are a Not-For-Profit organization that undertakes, on our own, to promote events in order to raise funds on behalf of our organization. Are we required to get an Event Promoter License?
No, not-for-profit organizations are exempt from having to obtain an Event Promoter License if: (1) It has been registered with the State of Illinois for at least three years, OR (2) QUALIFIES for tax exempt status under Section 501(C)(3), 501(C)(4), 501(C)(6) or as a political organization under 527 of the United States Internal Revenue Code of 1986. Under subsection (2), “Qualifies” does not mean you must obtain tax exempt status, you just need to meet the basic legal requirements to qualify. However, if a NFP hires and pays an outside event promoter to promote the event, the outside event promoter must have a license.
I exclusively promote events at PPA venues where all the seating is fixed securely to the ground and all patrons are seated in the seats during the event. This includes many small theaters. Am I required to get an Event Promoter License?
No, promoters who exclusively promote events in venues with only fixed seats and all patrons are seated in the fixed seats do not have to obtain an Event Promoter License. Research conducted by Crowd Management Strategies, Inc. (CMS), out of Los Angeles, California, looking at concert events around the world, found that fixed seating venues and very large fixed seating venues with some non-fixed seating, are inherently safer for patrons than venues without fixed seating.
I exclusively promote events at large PPA venues that have 500 or more fixed seats but also have an open floor area for non-fixed seats. Am I required to get an Event Promoter License?
No, promoters who exclusively promote events at large venues with 500 or more fixed seats do not have to obtain an Event Promoter License. See explanation above.
Why is an event promoter exempt from obtaining a license if they solely promote events at venues with fixed seating only or venues with 500 or more fixed seats?
Paid event promoters who promote events exclusively at fixed-seating venues or
venues with 500 or more fixed seats are not affected by this ordinance and are not
required to obtain an event promoter license. The reason: fixed-seating venues, by
their very nature, are more conducive to crowd control (both inside and outside the
fixed-seating venue) and do not pose the type of crowd control problems that cause problems in venues with little or no fixed seating.
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PENALTIES
If I am a venue owner, what are the penalties for using an unlicensed promoter?
Penalties range from fines, suspension or revocation of the Public Place of Amusement License. The Department of Business Affairs and Licensing typically utilizes a progressive disciplinary approach for most license violations but has the discretion to impose tougher penalties depending on the severity of the violation.
I am a promoter, what are the consequences of operating without a license?
Any promoter caught operating without a license may be subject to fines and other penalties.
Doesn’t this ordinance encourage promoters to go further underground and not get the license? What does this accomplish?
Legitimate promoters should have no problem obtaining the license. Those that operate underground face fines of up to $10,000 for operating an entertainment venue without licenses and required safety inspections.
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