Sullivan City is updating their city code in hopes of opening game rooms legally. City leaders are even using taxpayer dollars to hire help for writing the codes.

The move comes after a string of game room raids that were made in 2023, leading to several cities across the Rio Grande Valley to find new ways to operate them.

RELATED STORY: Hidalgo County authorities cracking down on illegal game rooms

Sullivan City hired attorney Robert Flores with the Texas Game Room Owners' Association to write the new ordinances that would legally allow game rooms -- or 'maquinitas' to operate in the city.

An establishment that exchanges items for money is legal, but they're not allowed to be in business with a game room operator 

“What our ordinance does is actually regulate them to make sure that they are not part of the game room, and that they are separate from the game room,” Flores said.

Hidalgo County District Attorney Terry Palacios says there is no legal gambling. 

“Of course, there is the ‘fuzzy animal exception’, which means that you can have these casinos open as long you don't give money or anything of value less than $5,” Palacios said

Even though there are legal loopholes to allow game rooms to operate, Palacios said they will be hard to follow.

“The problem is, it's not gonna make any business money, and the only way I think these places are gonna make money is that they pay more than required by law,” Palacios said. “And that makes it illegal."

The city's current game room ordinance allows the city to earn $50,000 every time someone applies to open one, even if they don't issue the permit.

The city also earns $15,000 every quarter in renewal fees.

For one game room, that's up to $110,000 a year.

Flores describes this as economic development. 

“The city's looking for ways to attract business into the city and have economic impact,” Flores said.

Palacios disagreed.

“If you want to entice a business in the city, let's find a legal business — something that's not gonna bring in issues and problems and raids, and bring more problems for our law enforcement,” Palacios said.

City council members will vote o the game room ordinances at an upcoming meeting.

Channel 5 News filed a public information for a copy of Flores’ contract to see how much the city is paying him. We will keep you posted once we hear back. 

Watch the video above for the full story.