Rockford proposing new video gaming fees

ROCKFORD, Ill. (AP) - Rockford could have one of the stiffest video gaming fees in Illinois if voters approve a home rule proposal.

Mayor Tom McNamara's administration is proposing an annual fee of $1,000 per machine for those who operate video gaming terminals, the Rockford Register Star reported.

A referendum will be included on Tuesday's primary ballot that asks city voters to approve home rule authority in Rockford. Home rule would provide Rockford with broader powers to tax and govern itself.

Current state law allows communities that participate in video gaming to charge a license fee of up to $25 per machine.

The increase would generate nearly $450,000 in additional revenue for the city. Rockford leaders said the city needs new revenue to keep pace with expenses in the years ahead.

Carrie Eklund, the city's finance director, said officials tried to propose "a number we considered to be fair, given the income that's being taken out of the economy."

Eklund said officials also were careful to make sure that all of the gaming machines in Rockford remain profitable.

"We're also looking at a graduated fee schedule based on the yield of the gaming machines," Eklund said.

Alderman Jonathan Logemann said a video gaming machine licensing fee increase is a common sense solution.

"These machines really don't add to the region's gross domestic product," Logemann said. "I would favor a graduated fee increase so businesses with the more profitable gaming machines would pay a higher rate."

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Information from: Rockford Register Star, http://www.rrstar.com