Aurora is looking at expanding the number of gambling terminals establishments are allowed to have, which officials say could bring in over $200,000 a year in new revenue for the city.
Currently, city code allows licensed establishments to have up to five “video gaming” terminals. The new proposal would increase that number to six and increase the total number of allowed terminals within city limits by 40 for a total of 240.
The purpose of the proposed change is to increase revenue for both local businesses and the city.
That’s what Deputy Chief of Staff Nicholas Richard-Thompson told the Aurora City Council’s Rules, Administration and Procedures Committee during a presentation on the proposal at the committee’s Oct. 7 meeting.
Currently there are 38 licensed businesses within Aurora with gambling terminals, and most have the maximum currently allowed under city code, according to Thompson. He said that businesses have been asking the city to increase the allowed number of machines, which state law allows.
With the increased number of gambling terminals, the city could annually bring in an additional $56,000 from licenses and an additional $155,000 from an existing tax on the machines, Chief of Staff Shannon Cameron said. Thompson’s presentation showed that, with the proposed increase in terminals, the city’s gaming tax could bring in a total of $948,000 per year.
The proposed increase to the total number of allowed gambling terminals within city limits would allow all existing licensed businesses with the terminals to increase to the new cap, according to Thompson. It would also give three new businesses the chance to apply for a license and install their own terminals, he said.
Applications would be accepted on a first-come, first-serve basis, Thompson said.
Ald. Carl Franco, 5th Ward, said the reason the cap was at five was to protect casino revenue, which brings in more tax dollars per terminal than those in other businesses. He questioned if the change would have a negative impact on the city’s casino revenue.
Thompson said city staff would look further into the numbers. Ald. Edward Bugg, 9th Ward, said that officials from Hollywood Casino Aurora told the city that this proposed change would not have any impact on them.
Bugg also noted that things will be different once the casino’s new location in Aurora opens next year.
Ald. Daniel Barreiro, 1st Ward, said this change has been a priority for him as he represents several social clubs, some with the gambling terminals. The types of people who go to these clubs are not necessarily the same people going to the casino, he said, so he doesn’t think the terminals compete with the casino.
City code already sets certain restrictions on gambling terminals, and those restrictions would continue under the new proposal, according to Thompson. His presentation showed that the terminals must be placed within an area restricted to those age 21 and over, and the entrance to the area must be in view of an employee at least 21 years old.
The Rules, Administration and Procedures Committee unanimously voted to recommend the proposal for approval on Oct. 7. It now is set to go before the Committee of the Whole then head to the Aurora City Council for final approval.
rsmith@chicagotribune.com
