ORDINANCE NO. 2026-002 AN ORDINANCE TO AMEND ORDINANCE 2022-005 PERTAINING TO BUSINESS LICENSES FOR AMUSEMENT AND GAMING DEVICES
ORDINANCE NO. 2026-002
AN ORDINANCE TO AMEND ORDINANCE 2022-005 PERTAINING TO BUSINESS LICENSES FOR AMUSEMENT AND GAMING DEVICES
BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF BERLIN, ALABAMA, AS FOLLOWS:
SECTION 1. DEFINITIONS
Section 3 of Ordinance 2022-005 is hereby amended by adding the following definitions, to be inserted in alphabetical order:
“Amusement Device” means any coin-operated, token-operated, bill-operated, electronic, mechanical, computerized, or similar machine or device that is made available to the public for play or use upon payment of consideration and that provides entertainment, amusement, or recreation through the operation of the device.
“Non-Prize Device” means any Amusement Device whose only awards or outputs to the player are entertainment, displayed scores or results, or benefits (including tokens, credits, power-ups, upgrades, extra plays, or other items) that are usable only during the current play session and that do not accumulate, carry over to future sessions, or have any redemption or conversion value outside that single session.
“Prize-Awarding Device” or “Regulated Device” means any Amusement Device that awards, dispenses, credits, or entitles the player to receive, directly or indirectly, anything of value that is redeemable, convertible, or usable outside of or beyond the immediate play session, including but not limited to:
(a) Tickets, points, credits, or tokens that may be accumulated across sessions or redeemed for merchandise, prizes, gift certificates, or other value;
(b) Digital value, vouchers, QR codes, codes, or links redeemable (whether at the premises or through a third party, app, ATM, or other mechanism) for cash, currency, gift cards, merchandise, or monetary value; or
(c) Merchandise, prizes, toys, gift certificates, or novelties awarded directly or indirectly.
“Regulated Device” has the same meaning as “Prize-Awarding Device.
SECTION 2. CLARIFICATION REGARDING STATE LAW
A new Section 3A is added to Ordinance 2022-005 to read as follows:
SECTION 3A. RELATIONSHIP TO STATE LAW
Nothing in this Ordinance shall be construed to create, expand, recognize, or grant any exemption from Alabama criminal law, including but not limited to Sections 13A-12-20 through 13A-12-76 (or any successor provisions) of the Code of Alabama, 1975, as amended. A device’s qualification, claimed qualification, or potential qualification as a “bona fide coin-operated amusement machine” or similar term under state law does not exempt it from any licensing, fee, reporting, inspection, or other regulatory requirement imposed by this Ordinance. The Town’s regulation of business licenses and fees under this Ordinance is separate from and in addition to any determination of legality under state criminal law.
SECTION 3. AMENDMENT TO LICENSE CLASSIFICATION SCHEDULE
Section 19 of Ordinance 2022-005 (Town of Berlin License Classification Schedule) is amended as follows:
(a) NAICS code 713290 (Other Gambling Industries) is added and classified under Code Z.
(b) NAICS code 713120 (Amusement Arcades) shall continue to be classified under Code A, provided that any business operating one or more Regulated Devices (Prize-Awarding Devices) at the licensed location shall also be subject to the additional fees, reporting, and other requirements set forth in Section 19A.
SECTION 4. NEW SCHEDULE FOR REGULATED DEVICES
A new Schedule Q is added to Section 18 of Ordinance 2022-005 to read as follows:
SCHEDULE Q – REGULATED (PRIZE-AWARDING) AMUSEMENT AND GAMING DEVICES
Annual fee of $1,200.00 per Regulated Device (Prize-Awarding Device), payable at the time of initial licensing and each annual renewal. This fee is in addition to any other business license fee required under this Ordinance. The Town Council may, by resolution, adjust the per-device fee amount for future license years.
SECTION 5. REQUIREMENTS FOR BUSINESSES OPERATING AMUSEMENT DEVICES
A new Section 19A is added to Ordinance 2022-005 to read as follows:
SECTION 19A. AMUSEMENT DEVICES – ADDITIONAL REQUIREMENTS
(a) Reporting Requirement – Every applicant for a business license, and every licensee upon annual renewal, shall disclose on a form provided by the Town Clerk the total number of Amusement Devices located at the licensed premises and shall separately identify how many are Non-Prize Devices and how many are Regulated Devices (Prize-Awarding Devices). The applicant or licensee shall provide such additional information as the Town Clerk may reasonably require to verify the classification of each device.
(b) Per-Device Fees – In addition to any other applicable business license fee, every business operating one or more Regulated Devices shall pay the annual fee set forth in Schedule Q for each such device. Fees are due at the time of initial licensing and upon each annual renewal. Failure to pay the required per-device fees shall constitute grounds for denial or revocation of the business license.
(c) Inspection – The Town Clerk, Revenue Officer, or their designees are authorized to inspect any licensed premises to verify the number, type, and classification of Amusement Devices present and to confirm compliance with this Ordinance. Refusal to permit a reasonable inspection shall constitute grounds for denial or revocation of the business license.
(d) Effect of Operating Regulated Devices – Any business that operates one or more Regulated Devices (Prize-Awarding Devices) remains subject to all other provisions of this Ordinance, including but not limited to potential reclassification or additional requirements under Code Z when deemed appropriate by the Town Council in the interest of public health, safety, morals, order, or welfare.
SECTION 6. DENIAL AND REVOCATION
Section 13 and Section 14 of Ordinance 2022-005 are reaffirmed and supplemented as follows:
In addition to the grounds already stated therein, the Town Council may deny, refuse to renew, suspend, or revoke any business license if the applicant or licensee operates any device in violation of Alabama criminal law (including Title 13A, Chapter 12) or fails to comply with the reporting, fee, or inspection requirements of Section 19A.
SECTION 7. SEVERABILITY
If any provision of this Ordinance is held to be invalid or unconstitutional by a court of competent jurisdiction, such holding shall not affect the validity of the remaining provisions, which shall continue in full force and effect.
SECTION 8. EFFECTIVE DATE
This Ordinance shall become effective upon its adoption and publication as required by law. The per-device fees under Schedule Q shall first apply to business licenses issued or renewed on or after July 1, 2026.
SECTION 9. REPEALER
All ordinances or parts of ordinances in conflict with this Ordinance are hereby repealed to the extent of such conflict.
ADOPTED AND APPROVED this the 15th day of June 2026.