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TO: Mayor Richard C. Irvin
FROM: Wendy McCambridge, City Clerk
DATE: March 1, 2018
SUBJECT:
To Amend and Revise Amusement Fees related to the distributor and video gaming terminal licenses.
PURPOSE:
To make the corresponding changes to the fees for distributor and video gaming license holders.
BACKGROUND:
The Illinois Video Gaming Act (230 ILCS 40/1) enacted in 2010 enabled video gaming terminals to be allowed in bars and restaurants on their premises as an accessory use. In 2012 the City of Aurora adopted an ordinance establishing that a license is required for video gaming terminals and adopted the Illinois Video Gaming Act in its entirety. An annual fee and application process was established and mirrored the requirements in the Illinois Video Gaming Act. The Act establishes that a business is allowed to operate up to five machines per licensed establishment. The statute defines a licensed establishment as "...any licensed retail establishment where alcoholic liquor is drawn, poured, mixed or otherwise served for consumption on the premises, whether the establishment operates on a nonprofit or for-profit bases (230 ILCS40/5)."
DISCUSSION:
A six month moratorium on the issuance of video gaming terminal license was adopted on September 12, 2017 to investigate methods for regulating the licensing of video gaming terminals. During the moratorium the following activities were conducted:
- Review of municipalities statewide who allow for video gaming terminals
- Review of other states who allow for video gaming terminals
- Review of the State of Illinois Video Gaming Act
- A compilation of all regulating activities were compiled and reviewed internally by staff
- Recommendations and options were provided to the Mayor's Office for review
- Economic impact study was performed
Based upon the activities completed the following changes to the Resolution R12-232 that revised amusement fees in Chapter 8 of the Code of Ordinances is being recommended:
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