Committee asks staff to explore $250-per-terminal video gaming fee as modest revenue source

McHenry County staff proposed implementing a $250 per-terminal fee for video-gaming devices as a modest, predictable annual revenue source, and the Finance & Audit Committee asked staff to study how to implement the fee for FY2026.

Kathy, a county staff member, told the committee that 32 county liquor licenses include video-gaming devices and that most establishments operate six machines. Under state rules and county ordinances, the county may adopt a per-terminal fee, which other Collar Counties charge at $250 per year. Kathy said the fee would likely be billed to the licensee and that many establishments then recoup the charge from the terminal vendor; if the county had charged the fee in the current year it would have generated roughly $46,000 in revenue based on current terminal counts.

Committee members asked staff to draft ordinance language, a timeline for implementation and a revenue estimate and to return with final recommendations. Staff noted the fee cannot be conditioned on liquor-license renewal and recommended a separate licensing/registration mechanism and administrative timeline that would avoid disrupting renewals.

What the committee decided - Action: Committee asked staff to research and prepare an implementation plan and ordinance for a $250 per-terminal annual fee for video-gaming machines for consideration in FY2026.

Why it matters The fee would be a small, recurring revenue source that could help offset general-fund costs or be targeted to specific services. It would require ordinance changes and a clear administrative process to collect and track per-terminal payments.

Speakers quoted (selected) - Kathy (staff): "If we were to have charged that this year, we would have brought in roughly $46,000 this year alone."

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