East Dundee delays decision on video-gaming fee split after counsel flags conflicting opinion

The village board voted on Oct. 6 to postpone consideration of an ordinance that would raise video-gaming fees and change their allocation between terminal operators and host establishments until Nov. 3 so the village attorney could review a differing legal opinion.

Village attorney Kelly Gandersky explained the statutory language and a recent state case bearing on home-rule authority. She told trustees the state video-gaming statute contains language that, at first glance, requires an equal split between the terminal operator and the licensed establishment; however, she said a recent Illinois decision (Camacho v. City of Joliet) and the absence of explicit preemptive language in the statute may allow a home-rule municipality some flexibility. Counsel also said she received a conflicting legal opinion just before the meeting and asked for time to analyze it.

“As you can see, it has some tricky language up there ... Camacho versus City of Joliet ... unless it has what I call the magic words, it doesn't count,” Kelly Gandersky said, summarizing her legal view. She offered to review the outside opinion and provide options.

Trustees discussed balancing revenue objectives against potential impacts on local businesses and whether enforcement mechanisms could protect host establishments if terminal operators sought to shift higher costs back to them. One trustee asked whether a smaller increase might reduce business impact; another favored waiting to ensure the village was on solid legal footing. The board voted to postpone the item to the Nov. 3 meeting to allow counsel to report back.

Next steps: legal staff will review the outside opinion and return with analysis and possible ordinance language or enforcement options for how the village would collect or enforce any fee allocation.