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TO: Mayor John Laesch
FROM: Nicholas Richard, Deputy Chief of Staff
DATE: September 22, 2025
SUBJECT:
An Ordinance amending Sec. 8-131 of the Code of Ordinances, pertaining to video gaming terminal regulations.
PURPOSE:
To amend the City Code to align with state law and increase the number of video gaming terminals permitted in the City of Aurora. This revision will support local businesses by allowing them to expand their revenue opportunities while also generating additional tax revenue for the city.
BACKGROUND:
In 2018, the City of Aurora enacted an ordinance to regulate video gaming terminals in accordance with the Illinois Video Gaming Act. The initial ordinance limited the number of terminals and established a minimum distance between licensed establishments. Over time, the City Council has revisited and amended these regulations to address new challenges and to align with the city's broader planning goals. These revisions have sought to balance economic opportunities for local businesses with public safety and responsible growth.
DISCUSSION:
The amendment makes several key revisions to the city's video gaming regulations. The primary change is the increase in the number of video gaming terminals permitted in the city from 200 to 240, and the number of machines per licensed location from five to six. This change is projected to generate approximately $56,000 in additional annual revenue for the city, which will be deposited into the gaming fund.
This initiative is a response to direct requests from local business owners who seek to increase their revenue streams and improve their competitiveness. It also brings the city's ordinance up to date with the new Illinois state law, which allows for six machines per location. There are no direct costs to the city associated with this ordinance. No new vendors are being considered. This is not a sole-source matter, and no funds transfer is required. The new revenue will be incorporated into the next fiscal year's budget.
IMPACT STATEMENT:
The revisions to the ordinance on video gaming terminal licensing will have a positive impact on the City's regulatory framework. By limiting licenses to full-service restaurants and restricting locations, the city has been able to control the proliferation of video gaming establishments. This has helped to prevent over-saturation and ensure that video gaming remains an ancillary entertainment option rather than a business's core function. The updated regulations provide a clear and fair process for new applicants while protecting existing licensees and the community.
RECOMMENDATIONS:
That the City Council consider amending Sec. 8-131 of the Code of Ordinances to increase the total number of licensed video gaming terminals permitted in the city and the number of terminals allowed per licensed location. This change would support local businesses by providing additional revenue streams and could help attract new businesses to the city.
cc: Rules, Administration, and Procedures
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance amending Sec. 8-131 of the Code of Ordinances, pertaining to video gaming terminal regulations.
body
WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the Illinois Video Gaming Act (230 ILCS 40/1 et seq.) has been amended to increase the maximum number of video gaming terminals permitted in a licensed establishment from five (5) to six (6); and
WHEREAS, the City of Aurora seeks to align its local ordinances with the provisions of state law to provide consistent and clear regulations for businesses operating video gaming terminals; and
WHEREAS, the City Council finds that increasing the number of terminals per location and the overall city-wide total will provide additional revenue opportunities for local businesses and generate new tax revenue for the city.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows: That Sec. 8-131 of the Code of Ordinances shall be and are hereby amended specifically as provided in Exhibit A in this Ordinance.