===== PDF PAGE 81 ===== [Extraction: OCR (rendered-page OCR)] CITY OF WEST CHICAGO CITY COUNCIL AGENDA ITEM SUMMARY ITEM TITLE: AGENDA ITEM NUMBER: Proposed Amendment to the Municipal Code Pertaining to Video Gaming License Eligibility FILE NUMBER: COMMITTEE AGENDA DATE: N/A COUNCIL AGENDA DATE: October 6, 2025 STAFF REVIEW: Kelley Chrisse, AICP, CEcD SIGNATURE ITEM SUMMARY: In March 2024, a business owner inquired about opening a video gaming café in West Chicago. At that time, City staff explained that the Municipal Code prohibits such uses and outlined the require- ments for video gaming eligibility. The business proceeded to invest in the build-out of a commercial space, including a designated area for video gaming terminals. The business received its Class E-1 liquor license on September 16, 2024, but did not officially open until February 14, 2025. Since opening, the business owner has reported that revenues are not sufficient and they may have to sell the business. The owner has now formally requested that the City Council amend the Municipal Code to reduce the required period of operation before a business is eligible to apply for a video gaming license. Current Regulations Two sections of the Municipal Code apply: 1. Class J License (Sec. 3-10(j)) o Authorizes certain liquor license holders (A-1, A-2, A-3, B-4, E-1, E-3, F) to offer video gaming. o Requires that the liquor license has been held for at least 12 months. o Class J license expires or terminates simultaneously with the associated liquor license. 2. Video Gaming Establishment License (Sec. 9-733) o Requires businesses to obtain a City-issued video gaming establishment license. o Establishments must: « Hold an eligible liquor license. « Be in good standing with the State. = Have operated continuously for at least 12 months at the location. « Provide required seating, maintain compliance with taxes/fees, and meet zoning requirements. o Maximum of six (6) terminals per location. o License is a personal privilege, not transferable, and not a property right. History of Video Gaming Regulations e In 2018, a nonbinding referendum on video gaming failed in West Chicago. ===== PDF PAGE 82 ===== [Extraction: OCR (rendered-page OCR)] e Inresponse to financial hardships during the COVID-19 pandemic, the City Council adopted carefully crafted regulations allowing video gaming as a supplemental revenue source for es- tablished businesses, while ensuring that gaming was not the primary business purpose. e The requirement for 12 months of operation was specifically included to preserve the integrity of these goals and prevent businesses from being created primarily to operate as gaming ca- fés. Liquor Commission Discussion The Liquor Commission reviewed the request on September 24, 2025 and discussed the following: Hardship Exception — Members were not supportive of creating a hardship exception, as it could set a precedent for other businesses not meeting financial expectations. Policy Integrity — The regulations were deliberately established to support existing restau- rants, not to create new gaming-first establishments. Council Input Needed — Given the significance of amending the timeline requirement, the Commission determined it appropriate for the full City Council to consider. ACTIONS PROPOSED: Provide direction to staff regarding consideration of an amendment to the Municipal Code to reduce the required 12 months of operation before a business may apply for a video gaming license. COMMITTEE RECOMMENDATION: This item did not go to a Committee and has been sent directly to the City Council from the Liquor Commission.