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Property Rule in Video Gaming in Illinois

Jun 7, 2021 | Blog Posts, Video Gaming Illinois

As a little small business owner either thinking about or engaged in the operation of video gaming Illinois, the state’s household rule powers is a fascinating topic. There are a variety of robust opinions (and a few misinformation) surrounding the debate of home rule vs. non-home rule municipalities. To assist deliver some clarity, we’ve compiled some standard information and facts surrounding the subject.

The History of Property Rule

In 1970, an amendment for the Illinois State Constitution automatically authorized counties and municipalities having populations of more than 25,000 residents to become residence rule units. Other municipalities had the capability to elect to become dwelling rule units. Further, a property rule unit may elect not to be a property rule unit. House rule provides these municipalities the capability to pass ordinances that would otherwise be prohibited by state law, which includes imposing particular taxes. Only some communities have voted their way out of residence rule. Non-home rule units only possess the certain powers granted to them by state law to set their neighborhood laws. The full residence rule sections on the Illinois Constitution can be identified online.

The Goal of Dwelling Rule

The purpose of the home rule would be to allow for local options to local challenges and issues. A municipality with home rule status can work out any power and carry out any function unless it is particularly prohibited from doing so by state law.

Dwelling rule status may be accomplished in one of two approaches: (1) A municipality automatically achieves house rule status when its population exceeds 25,000 residents. If the municipality’s population dips under this threshold, it continues to be property rule, however, the clerk is necessary to certify the query of residence rule for submission towards the voters in the next basic election; and (2) Communities with fewer than 25,001 residents can turn out to be residence rule by passing a local referendum.

Residence rule means that a municipality might “exercise any power and carry out any function pertaining to its government and affairs such as, but not limited to, the power to regulate for the protection of the public health, safety, morals, and welfare; to license; to tax, and to incur debt.” To prevent local government from overstepping, the State legislature still has some degree of authority over municipal lawmaking.

Section 65 of your Video Gaming Act offers that a non-home rule unit of government might not impose any charge for the operation of a video gaming Illinois machine or refer to as a video gaming terminal (“VGT”) in excess of $25 per year. In contrast, household rule units of government are in a position to set their own charges and processes for the operation of video gaming within their city or county limits, and we’ve observed that take many different diverse types: municipal costs per VGT or per place very broadly, some municipalities call for specific additional licenses/permits ahead of a VGT install or place go-live, and in addition, they can limit the number of licenses permitted in their municipality for the year.

Household rule powers can impact the way your company engages in video gaming in Illinois, so it really is necessary to be a well-informed company owner.


Video Gaming is regulated by the Illinois Gaming Board. Licensed establishments can have up to 5 video gaming terminals at their locations.

terminal operators in Illinois


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