Gatesville council tightens coin machine rules, advances alley request

Coin-machine operators near Gatesville schools, churches and hospitals could soon face a 1,000-foot buffer, while property owners along South 22nd Street may gain control of a long-unused alley behind their lots.

The Gatesville City Council took up those neighborhood-level changes at its Tuesday, May 12 meeting, giving first reading to Ordinance 2026-07, which would rewrite the city’s rules on coin-operated machines, sweepstakes devices, online games and indoor amusement facilities. Holly Owens, the city secretary, described the original ordinance as “training wheels” as staff moved to sharpen the city’s ability to tell lawful businesses from illegal gambling operations.

Under the draft, indoor amusement facilities would be barred within 1,000 feet of schools, churches or hospitals, a larger setback than the 300 feet previously proposed. The same distance would apply between one licensed indoor amusement facility and another. The ordinance would also tighten limits on businesses with fewer than five machines, define key terms for owners and operators, and create licensing and review procedures. The city says the changes are meant to add a new Article IX to Chapter 32 and bring criminal penalties for violations. Gatesville also says the measure would give businesses time to adjust before taking effect on October 1, 2025, with the city relying in part on the long-running Fort Worth “8-Liners” litigation and the Texas Supreme Court’s decision not to take up further review. State law allows cities to impose an occupation tax on coin-operated machines, but not above one-fourth of the state tax rate.

Council members also advanced the abandonment of an alley on South 22nd Street between 105 South 22nd Street and the 2100 block of Saunders Street. City documents say the strip has never functioned as an alley, and most owners along the 2100 block of Saunders Street have already fenced into the platted space. The owner of 105 South 22nd Street has said they do not want to claim the land. If the vacation is finalized, adjoining owners could claim an additional 12-foot strip behind their properties, but they would have to replat and file the approved replat with the Coryell County Clerk along with the ordinance. The Planning and Zoning Commission heard the case April 6 and recommended approval. The process requires three readings and a public hearing tied to the second reading.

The council also discussed whether to waive fees for Steve and Carla Manning after exterior work at 1512 East Main Street was done without a permit. Gatesville’s Building Inspections and Permits Department says its job is to enforce building codes and zoning ordinances to protect life, health and welfare, a reminder that even a small fee waiver can sit at the center of how the city enforces its rules.