How to Open a Slot Machine Business in Illinois
Learn how to start a slot machine business in Illinois: who qualifies, licensing steps, revenue model, NTI explained, setup requirements, and realistic timelines.
How the Illinois Slot Machine Industry Works
The Illinois Video Gaming Act governs all aspects of video gaming in the state. Under the Act, licensed establishments may operate up to six VGTs on their premises. Large truck stops with a minimum of 10 fueling positions for tractor-trailer combinations are eligible for up to ten machines.
In 2024, players wagered over $32 billion on Illinois VGTs, with the remaining amount after payouts — known as Net Terminal Income (NTI) — divided among licensed locations, Terminal Operators, and the State of Illinois. Statewide NTI has continued climbing since: according to the Illinois Commission on Government Forecasting and Accountability, net terminal income reached $3.086 billion in fiscal year 2025, up from $2.932 billion in FY 2024.
NTI is the key financial metric in Illinois video gaming. It is defined as all monies wagered minus all monies paid out. The Video Gaming Act currently sets the tax on NTI at 35%, following a one-point increase that took effect July 1, 2024. Of the remaining after-tax NTI, 50% goes to the licensed establishment and 50% goes to the Terminal Operator. An additional administrative fee of 0.8512% is split equally between the location and the TO. As of April 2024, the average licensed establishment generated more than $9,300 per month in gross gaming revenue.
The Illinois Gaming Board publishes monthly gaming revenue reports on its website, so location owners can track industry performance over time.
Note: state lawmakers have introduced further legislation (SB2671) that would raise the NTI tax to 45% — as of this writing, the bill remains under committee review and has not been enacted. Worth monitoring, but not yet in effect.
Key Terminology for the Illinois Slot Machine Business
Before getting into the steps, it helps to understand the terms you will encounter throughout the process.
Video gaming, video gambling, and video slots. Tall refer to the same thing: the Illinois video gaming terminal industry. The Video Gaming Act uses the term “video gaming,” while players typically call the machines video slots.
A Video Gaming Terminal (VGT) is a machine that allows players to wager money on electronic games of chance. Each terminal is connected to the Central Communications System and must be certified by the IGB.
The Terminal Operator (TO) is a licensed company that owns, installs, services, and maintains VGTs at licensed locations. Every video slot machine business in Illinois must enter into a valid use agreement with a licensed Terminal Operator. The TO plays a central role in the licensing process, manages compliance, handles tax reporting through the CCS, and provides ongoing operational support.
The Illinois Gaming Board (IGB) is the state regulatory agency that oversees all aspects of video gaming in Illinois. Its five members are appointed by the Governor and confirmed by the Senate. The IGB issues all gaming licenses, conducts background investigations, performs site inspections, and enforces the rules of the Video Gaming Act.
The Central Communications System (CCS) is the real-time network that connects every licensed VGT in Illinois to the IGB. All wagering data, tax reporting, and machine activity flow through the CCS. Terminal Operators are responsible for maintaining this connection.
Net Terminal Income (NTI) is the financial basis on which taxes and revenue splits are calculated. It equals total wagers minus total payouts.
A gaming license is the IGB-issued authorization required before any establishment can legally operate VGTs. Every location must obtain its own individual license.
What Type of Business Can Open a Slot Machine Business in Illinois?
Not every business qualifies. The Video Gaming Act limits video gaming to the following establishment types:
– Licensed retail establishments that sell alcohol for on-premises consumption (bars, restaurants, brew pubs)
– Licensed truck stops with at least 10 fueling positions for tractor-trailer combinations
– Licensed fraternal establishments that meet membership and operational criteria
– Licensed veterans establishments
– Licensed gaming cafes
All qualifying establishments must hold a valid state liquor license, with the exception of licensed truck stops, which under Illinois law may operate VGTs on a continuous basis even without one. Gaming cafes are not exempt — they require their own dedicated liquor license (municipalities often issue this as a distinct license class specifically for video gaming cafes). Your municipality must also have opted in to allow video gaming. Not all Illinois municipalities permit it, so confirming local authorization is the first step before investing time in the application.
How to Start a Slot Machine Business in Illinois: Step by Step
Universal Gem will work with you through the entire process of securing your gaming license. In fact, our IL terminal operators provide help even after the Board approves the application. We are a full-service operator, who will provide your location with the best equipment, ensure your location remains in compliance with changing laws and regulations, and assist your location with marketing plans. Step by step, our licensing process looks like this:
Step 1: Confirm Your Municipality Allows Video Gaming
Check whether your city or village has opted in under the Video Gaming Act. Some municipalities have passed local ordinances prohibiting video gaming even where state law permits it. Others impose additional local licensing fees or zoning restrictions on video gaming establishments. The IGB website lists participating municipalities. Your Terminal Operator can also verify this for your specific address.
Step 2: Obtain Your State and Local Liquor License
A valid liquor license issued by the State of Illinois is a prerequisite for most establishment types. Many municipalities also require their own local liquor license. Both the license number and its expiration date are required on your IGB gaming license application. If your liquor license lapses, your gaming license is at risk.
Step 3: Select a Licensed Terminal Operator
Choosing the right TO is one of the most consequential decisions in this process. The Terminal Operator submits your IGB application, guides your documentation, manages machine installation, handles all tax reporting through the CCS, and supports compliance on an ongoing basis. Every licensed establishment must have a valid use agreement with a TO before the IGB will process the application.
Universal Gem was the first Terminal Operator to install licensed VGTs in Illinois. That history is not just a talking point. It means our team has built direct relationships with the IGB, navigated hundreds of licensing applications, and developed the kind of institutional knowledge that prevents costly delays. When businesses switch to us, they see the difference immediately.
Step 4: Complete the IGB Application
The IGB online application is detailed and multi-part. It covers ownership structure, business history, financial details, gaming operation plans, and personal information for every Person with Significant Influence or Control (PSIC) connected to the establishment. Accuracy is essential. Discrepancies between what is submitted and what the IGB’s background investigation uncovers are the most common cause of application delays.
Your TO will work with you to complete the application correctly and assemble the required supporting documentation, including business entity records, proof of identity and residency, your lease or deed, and liquor license information.
Step 5: Submit Fingerprints
Every owner and PSIC must submit fingerprints through an IGB-approved vendor. This is a non-negotiable requirement and cannot be completed after submission. Plan for this step early, as vendor scheduling can add days to your timeline.
Step 6: IGB Background Investigation
After submission, the IGB conducts thorough background checks on all applicants and PSICs. This stage takes time and cannot be expedited. Respond promptly to any IGB requests for additional information. Delays at this stage are almost always caused by slow responses or missing documentation.
Step 7: Site Inspection
Before VGTs can be installed, an IGB agent inspects the proposed gaming area. The area must be secure, visible to staff from the entrance, and accessible only to patrons aged 21 or older. The IGB must approve the specific location where machines will be placed. No changes to the approved gaming area can be made without IGB authorization.
Step 8: License Issuance and VGT Installation
Once the IGB approves the application and site, the gaming license is issued and your TO can install the VGTs. From that point, the terminals are live on the Central Communications System and subject to ongoing IGB monitoring and compliance requirements.
How Long Does It Take to Open a Slot Machine Business in Illinois?
Opening a video slot machine business in Illinois typically takes between 6 and 12 months from start to first day of operation. The licensing process accounts for most of that time, primarily the background investigation and IGB review.
The biggest factors that extend timelines are incomplete documentation at submission, unreported background issues, slow fingerprint scheduling, and failure to respond promptly to IGB requests. Working with an experienced TO who prepares your application thoroughly before submission reduces these risks significantly.
Setting Up Your Gaming Area?
Placement and layout directly affect revenue. Machines that are easily visible, comfortably accessible, and well-integrated into the flow of your establishment consistently outperform those tucked into corners or poorly lit areas. Your TO can advise on optimal placement based on your floor plan.
Beyond placement, several elements are legally required:
Signage
Signs displaying the minimum age requirement for gambling (21 years old) must be posted and visible at the entrance to the gaming area.
Electricity
VGTs require dedicated electrical supply. This is typically provided in full or in part by the Terminal Operator as part of the installation.
Staff sightlines.
Staff who are 21 or older must have a clear sightline from the front entrance to the gaming area entrance. This is an IGB requirement, not a suggestion.
Stanchions.
If your establishment allows patrons under 21 in any part of the premises, stanchions or physical barriers are required to separate the gaming area.
Beyond legal requirements, small investments in the gaming environment pay off in revenue. Phone chargers, purse hooks, comfortable seating, and clearly marked cash-out voucher bins improve the player experience and encourage longer stays.
Personnel for Your Illinois Slot Machine Business
Your staff is central to the success and compliance of your video gaming operation.
The most important role is the video gaming manager, who must be named in your IGB license application. This person works directly with your Terminal Operator, handles license renewals, and may also oversee promotions, customer engagement, and marketing efforts for the gaming area. The video gaming manager must be at least 21 years old and pass the IGB’s background review.
All staff who interact with the gaming area must be trained to check IDs, since gaming is strictly limited to patrons who are 21 or older. They need to know the procedure if a machine malfunctions, if there is a payout dispute, or if a cash-out voucher has an issue. They should know who to contact at the Terminal Operator for support, and they must handle all patron financial matters with complete discretion.
Staff awareness of the IGB’s responsible gaming requirements is also important. This includes recognizing signs of problem gambling and knowing how to connect patrons with available resources.
Revenue Potential and Business Tax Considerations
The after-tax NTI split gives locations a straightforward revenue model: 50% of net gaming income after the 35% state tax goes directly to the establishment. The Terminal Operator receives the other 50% and covers the cost of machine ownership, maintenance, the CCS connection, and compliance infrastructure.
For most bars and restaurants, this arrangement means earning meaningful passive revenue from the gaming area without bearing the capital cost of the machines themselves. The Terminal Operator absorbs that investment.
Locations should understand that gaming revenue is subject to standard state and federal income tax reporting requirements, in addition to the NTI tax administered through the CCS. Your TO handles all IGB-related tax reporting, but your accountant should be aware of how gaming income flows into your business financials. Your Federal Employer Identification Number (FEIN) is required as part of the IGB application.
Municipal business tax obligations vary by location and should be confirmed with your local government before opening.
How Universal Gem Supports Your Slot Machine Business
Universal Gem has helped hundreds of establishments open and operate successful video gaming businesses in Illinois. As the first Terminal Operator to install licensed VGTs in the state, our experience is unmatched.
We work with you through every stage: confirming municipal eligibility, completing and submitting the IGB application, preparing for the site inspection, designing your gaming area layout, installing your machines, and providing ongoing compliance, marketing, and account support after you open. Our account managers come from hospitality backgrounds, which means they understand your business beyond gaming.
When you are ready to get started, contact us. We will assess your eligibility, walk you through the process, and make sure you launch without unnecessary delays.
Universal Gem has helped hundreds of establishments open and operate successful video gaming businesses in Illinois. As the first Terminal Operator to install licensed VGTs in the state, our experience is unmatched.
We work with you through every stage: confirming municipal eligibility, completing and submitting the IGB application, preparing for the site inspection, designing your gaming area layout, installing your machines, and providing ongoing compliance, marketing, and account support after you open. Our account managers come from hospitality backgrounds, which means they understand your business beyond gaming.
When you are ready to get started, contact us. We will assess your eligibility, walk you through the process, and make sure you launch without unnecessary delays.
Frequently Asked Questions
How much money can a slot machine business make in Illinois?
The average licensed establishment in Illinois generated over $9,300 per month in gross gaming revenue as of April 2024. After the 35% NTI tax, the location keeps 50% of the remaining net income. Actual earnings vary based on location, foot traffic, number of machines, and gaming area setup.
How long does it take to open a slot machine business in Illinois?
Typically 6 to 12 months. The background investigation and IGB review account for most of the timeline. Working with an experienced Terminal Operator who prepares the application thoroughly before submission reduces the likelihood of delays.
Do I need a liquor license to operate video gaming terminals in Illinois?
Yes, for nearly every establishment type, including bars, restaurants, and gaming cafes — cafes typically apply for a dedicated liquor license class specific to video gaming. Many municipalities also require a local liquor license on top of the state one. Licensed truck stops are the one exception and may operate without a liquor license.
How many slot machines can I have at my Illinois location?
Most licensed establishments may operate up to 6 VGTs. Licensed large truck stops with at least 10 fueling positions for tractor-trailer combinations are eligible for up to 10 machines.
What is Net Terminal Income and how does it affect my revenue?
NTI is the total amount wagered minus total payouts. The state taxes NTI at 35%. Of the after-tax NTI, your establishment receives 50% and the Terminal Operator receives 50%. This is your primary revenue stream from video gaming.
Can I own the slot machines at my location?
No. Under the Video Gaming Act, VGTs must be owned, maintained, and operated by a licensed Terminal Operator. Your establishment enters into a use agreement with the TO and earns its 50% share of after-tax NTI without bearing machine ownership costs.
What does a Terminal Operator actually do for my business?
The TO owns and installs the machines, maintains them, connects them to the Central Communications System, handles all IGB tax reporting, assists with the gaming license application, supports compliance, and provides ongoing account management. Choosing an experienced TO is one of the most important decisions in starting a video gaming business.
Does my municipality need to allow video gaming?
Yes. Illinois municipalities can opt out of the Video Gaming Act. Before investing time in the application, confirm your city or village has authorized video gaming. Some municipalities also impose additional local requirements, permit fees, or zoning restrictions on video gaming establishments.