Understanding the Illinois Slot Machine Industry
The Illinois Video Gaming Act became law on July 13, 2009, regulating the use of video gaming terminals (VGTs or slot machines) in licensed establishments in Illinois. The regulations of the Illinois gaming industry have changed significantly as the market continues to grow. Licensed video gaming establishments are now allowed six slot machines per location – and specially-licensed large truck stops can have up to ten slot machines!
What Kinds of Licensed Video Gaming LocationsOperate in Illinois?
If you've ever wondered what it takes to start a slot machine business, you've probably asked yourself what types of businesses can legally have gaming. Here’s an overview of the four types of licensed establishments legally allowed to operate in the state of Illinois, as laid out in the Video Gaming Act.
1. The Basic “Licensed Establishment”
This is defined as any retail establishment “where alcoholic liquor is drawn, poured, mixed, or otherwise served for consumption on the premises.” Essentially, this refers to gaming parlors, bars and restaurants that serve any kind of alcoholic beverages to patrons to consume on site at the location. Sometimes, locations will have a “combined” liquor license, which means they allow consumption on the premises, but also allow “to go” purchases of alcohol. As video gaming has gained popularity, we have seen a variety of establishments obtain a liquor license in order to qualify for video gaming that you would not normally think of as the types of establishments to serve alcohol for consumption on site, such as gas stations and smaller eateries.
2. The “Licensed Fraternal Establishment”
Defined in the Video Gaming Act as “a location where a fraternal organization that derives its charter from its national parent organization regularly meets.” This can refer to your local lodge of the Elks, Lions and other nationwide civic organizations that may or may not be named after large mammals.
3. The “Licensed Veterans Establishment”
This refers to any site “where a qualified veteran’s organization that holds a charter from its national parent organization regularly meets.” Veterans of Foreign Wars halls and American Legion posts, in other words.
4. The “Licensed Truck Stop Establishment”
There are a few interesting legal requirements here: For truck stops to be licensed video gaming establishments, they have to sit on three acres or more of land, include a convenience store and have separate diesel fueling islands for 18-wheelers and other commercial vehicles (along with dedicated parking for those vehicles). They also have to sell more than 10,000 gallons of diesel or biodiesel fuel per month at retail costs. Find out more about the legal requirements surrounding licensed truck stop establishments.
- FAQ
Are you looking to start a slot machine business?
How to Get an Illinois Video Gaming License
Looking to open a video gaming business or add slot machines to your existing business? There are a few steps you will need to complete first.
In accordance with the Video Gaming Act, not every municipality in Illinois allows video gaming. The Illinois Gaming Board website is the best place to check whether or not slot machines are allowed in your municipality. If your municipality doesn’t allow video gaming, there are still options to consider. If you’re still not sure about whether or not slot machines are allowed in your municipality, don’t hesitate to get in contact with one of our experts – we are happy to help!
In Illinois, there are four categories of Illinois video gaming establishments that the IGB can license: retail, fraternal, veterans and truck stops. However, a wide variety of businesses make up the category of licensed retail establishments, including some that are known as “non-traditional.” Learn more about non-traditional gaming establishments here. Unless you are a truck stop, all video gaming establishments must obtain an on-premises liquor license and serve alcohol.
Terminal Operators (or TOs) are the licensed companies that own, service, and maintain the slot machines that are placed in Illinois locations. All TOs must abide by the state-determined profit sharing system. The establishment will earn 32.5% of the slot machine income, the TO will earn 32.5%, the state of Illinois earns 29%, the local municipality earns 5%, and less than 1% is paid to Light & Wonder for maintaining the Central Communications System that connects all Illinois slot machines.
The video gaming licensing process can be quite confusing. Luckily, we have broken down the process and created a guide that simplifies everything into seven easy steps. Plus, when you partner with Accel Entertainment, our team will be on hand around the clock to help you tackle the multi-part application.
The process for getting licensed as an Illinois Video Gaming Establishment can be a long process, in part depending on your ownership structure. With any licensing process, it’s difficult to determine the exact amount of time it will take to complete. You should not expect to have slot machines immediately after applying. In most cases, you can expect the process to take about 2-3 months.
