ACTION REQUESTED:
Title
Communication from the City Manager and Corporation Counsel with a Request to ADOPT an ORDINANCE Amending CHAPTER 18, ARTICLE IV, SUBSECTIONS 97 and 103 of the CODE of the City of Peoria, Regarding VIDEO GAMING FEES.
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BACKGROUND:
The City of Peoria regulates video gaming via a local licensing structure. Two types of entities apply for local video gaming licenses: 1) video gaming terminal operators; and 2) local establishments. Under the City's current ordinances, terminal operators and local establishments must equally share an annual registration fee of $500.00 per terminal. Terminal operators must also pay a separate annual licensing fee of $1,000 per terminal. Under the existing code, the fee breakdown is as follows:
* Local establishments: $250 per terminal annual registration fee
* Terminal operators: $250 per terminal annual registration fee + $1,000 per terminal annual license fee
To illustrate the existing fee structure, if Bar X has 4 video gaming terminals that were operated by Generic Gaming Company Inc., the fee breakdown would be as follows:
* Bar X: $1,000 for annual registration fees ($250 X 4)
* Generic Gaming Company Inc.: $5,000 for annual registration fees ($250 X 4 +$1,000 X 4)
* Total: $6,000
In December of 2021, the state legislature amended the Video Gaming Act ("VGA") to require "all" video gaming fees be shared equally between terminal operators and local establishments:
(230 ILCS 40/65)
Sec. 65. Fees. A non-home rule unit of government may not impose any fee for the operation of a video gaming terminal in excess of $250 per year.
The cost of any fee imposed under this Act by any home rule unit of government or non-home rule unit of government shall be shared equally between the terminal operator and the applicable licensed establishment, licensed veterans establishment, licensed truck stop establishment, licensed large truck stop establishment, or licensed fraternal establishment under thi...
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