The County will begin regulating gaming machines to curb instances of illegal gambling, especially by minors. The ordinance creates a per-machine tax on machines that are used as a game, entertainment or amusement.
Background:
•The ordinance requires all amusement devices owned and operated in Cook County to be regulated by the County.
•Prize generating devices, such as slot machines, mechanical grab machines, and video gambling machines, will be taxed at a rate of $225 per machine.
•Simple amusement devices, such as pool tables, jukeboxes, and simulated sports games, will be taxed at a rate of $150 per machine.
•The County’s Auto-amusement Device Tax Ordinance mirrors the City of Chicago’s ordinance. The City of Orland Park taxes both categories of devices at a rate $300 per machine.
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Rationale:
•Cook County is responsible for public safety for 5.3 million residents. The public safety system comprises 39% of the County budget.
• A number of amusement devices are being used for illegal gambling activities. Licensing these devices will help the County protect its citizens, specifically minors, from such activities.
•Regulation will help eliminate the unfair advantage non-compliant businesses have over other County businesses.
•The additional revenue will help the County invest in public safety related services.
Budget impact:
•This potential new source of revenue is expected to yield $1.34M in 2012.
