Costs, Fees, and Revenue
Costs, Fees, and Revenue Expectations of Illinois Gaming Business
One of the first questions we get from business owners interested in opening a gaming business is, “How much does it cost to open an Illinois gaming business, and how much money can I make with video gaming?” The good news is that startup costs for gaming businesses are low, and video gaming revenue potential is quite high. Read more below about how much you should anticipate to invest in your gaming business, and what kind of returns you might expect.
Interested in getting started? Read our guide on how to start an Illinois gaming business, or contact us to talk to one of our personal account managers.
Costs and Fees of Adding Gaming to Your Business
Costs to open an Illinois gaming business can vary depending on the type of business, municipal requirements, and local licensing fees. However, for bars, restaurants, truck stops, fraternal organizations, laundromats or any other qualified establishment, the upfront investment is extremely low. That’s because Universal Gem shoulders nearly all the cost, including the complete gaming area setup, installation and maintenance of the VGT (slot) machines, and initial marketing materials. Our revenue is generated from the mandated split which, in Illinois, is roughly one third of the revenue generated from the VGTs.
While the financial burden is very low, there are still a few standard expenses to prepare for, including:
- Liquor license acquisition (if not currently held)
- Illinois gaming license application fees
- Any required municipal permits
A few additional considerations may vary case-to-case:
- Potential increase in staffing to monitor gaming activity
- Local municipal requirements and associated costs
- Dedicated floor space needed for the gaming area (usually small and highly profitable per square foot)
In most situations, the revenue potential from VGTs far outweighs the minimal start-up expense—making it one of the most accessible profit drivers available to qualifying Illinois businesses.
As for gaming cafes, they can be lucrative businesses, but the startup costs are much higher and the business is more labor intensive overall. Key cost considerations include:
- Monthly rent, which varies widely by location and market demand
- Municipality licensing and regulations, which can influence overall feasibility
- Staffing requirements for a full-time gaming business
Revenues From Illinois Gaming Businesses
Bars, restaurants, gaming cafes, truck stops, fraternal organizations and many small businesses can earn thousands of dollars per month from video gaming revenue. In the month of April of 2024, data from the Illinois Gaming Board indicated that establishments offering video gaming averaged more than $9,300 in gross revenue per establishment. That is a significant source of income for any business that can be used to make repairs and improvements, or even to open new businesses.
Maximizing gaming revenues comes down to several factors, including the number of machines in the establishment, the layout, and cleanliness and comfort of the gaming area. Most importantly, gaming businesses need to raise awareness and build player loyalty. This often comes down to the right mix of marketing, promotions and loyalty building programs and incentives. This is where choosing the right Terminal Operator for your business is crucial.
Terminal operators, such as Universal Gem, are key partners in driving revenue for your gaming business. Experienced account managers ensure that your gaming business is taking advantage of the latest promotions and marketing opportunities, while fast service and expert maintenance make sure your machines are running smoothly with minimal downtime.