Peru increases fees for gambling operators, requires license applications needing mayoral approval

Restaurants, bars, gaming parlors and others will pay higher annual fee

Video gaming machines are seen at Lucky Penny's on Thursday, Jan. 21, 2021 in Cary.  Gambling machines such as these are back up and running again after being shut down due to COVID-19 mitigations.

Establishments in Peru with gambling terminals will have to pay more in fees to the city.

The Peru City Council passed new regulations at Monday’s meeting creating a city license application process and increased fees.

Restaurants, bars, gaming parlors and other places with gaming terminals soon will need to apply for a license with the city and pay a $250 yearly license fee. There also is a $250 fee per gaming machine that would be split in half with the terminal operator and the supplier of gaming terminals, in compliance with the Illinois Gambling Act.

Mayor Ken Kolowski said residents have had “plenty of time,” about four weeks since the topic was first discussed, to air any grievances about the regulations. City Clerk Dave Bartley said he’s received no calls at City Hall about the topic.

Corporate Counsel Scott Schweickert brought up two main concerns Jan. 4 the council discussed when the conversation about new regulations began in May. The council expressed interest in increasing fees for video game licenses and terminals, and limiting the increase of businesses exclusively running video gambling parlors.

In 2022, 38 establishments in Peru with 206 machines generated a net income of $8,312,081, according to the Illinois Gaming Board. The city of Peru collected a share of $416,804 of that net income.

The terminal operator annual license fee would be $5,000 and it permits the license holder to provide video gaming terminals to any location in the city. The maximum terminals allowed would be six per establishment.

The video gaming establishments are required through the license application to have a state gaming license, to be in good standing financially with no unpaid bills or taxes, comply with all requirements on the application and have no criminal history or gambling offenses.

The mayor will be in charge of approving or denying all applications. Any violation of city rules and the license can be suspended or revoked.

A renewal application for establishments and terminal operators will be required annually and is due April 1.