There are plenty of good startup ideas floating around these days, but one you may not have considered is a video game cafe. If you’re looking for a new investment opportunity, opening a video gaming café could be a surprisingly strong option.
In Illinois, video game cafes have become increasingly popular as local establishments look for new ways to attract customers and generate additional revenue. With the right concept and location, a gaming café can combine hospitality, entertainment, and regulated gaming in a way that benefits both the business and its customers.
As the first Terminal Operator to install VGTs in Illinois, Universal Gaming Group is the most experienced partner for video gaming cafe owners. Contact us today to jump start your new business.
What is a Video Gaming Cafe?
A video game cafe is exactly what it sounds like: a venue where customers can relax, enjoy food and drinks, and play on video gaming terminals (VGTs) — often referred to as slot machines. If you want a closer look at how VGTs differ from traditional casino slots, it’s worth understanding before you invest.
Customers come to video gaming cafés to spend time with friends, grab a drink, and try their luck on the machines. For the business owner, the primary revenue driver is usually the video gaming terminals installed on-site. In Illinois, gaming cafés must also hold a liquor pouring license, which means alcohol sales become an additional revenue stream.
Are Video Game Cafes Profitable?
Short answer: yes, and the state-level numbers back it up. Video gaming terminals generated $3.086 billion in net terminal income across Illinois in FY2025, a 5% increase over the $2.932 billion reported in FY2024 (source: Commission on Government Forecasting and Accountability). The market isn’t just large — it’s still growing.
That’s the statewide picture. At the individual location level, Illinois gaming establishments earn on average over $104,000 per year in gross gaming revenue, with $30,000–$40,000 in net revenue flowing back to the business — on top of whatever food, drink, and hospitality revenue the café itself generates.
Strong revenue potential is only one of the reasons many entrepreneurs are exploring the video game cafe model.
Benefits of Opening a Video Game Cafe
Strong revenue is just one of the benefits of investing in video gaming cafes.
Built-in Foot Traffic
One of the hardest parts of opening any new establishment is simply getting people through the door. Without steady customer traffic, even a great concept can struggle.
Video game cafes naturally attract attention. The bright machines, the possibility of winning money, and the social environment all help draw people inside. For many establishments, installing video gaming terminals can significantly increase foot traffic compared to a traditional café or bar.
Plenty of Variety
Many businesses claim they “have something for everyone,” but in the case of a gaming café, that can actually be true.
A well-designed video game cafe offers multiple types of machines and games, allowing players to choose what they enjoy most. At the same time, not every visitor needs to play — some customers come simply to relax, watch friends play, or enjoy revenue generating entertainment alongside food and drinks. That variety makes gaming cafés appealing to a wide range of customers across different age groups and professions.
Attract New Customers
Slot machines have always had a certain appeal. The lights, sounds, and excitement create a unique entertainment experience, and many people enjoy the chance to win.
When a café or bar installs video gaming terminals, it often attracts new patrons who may not have visited otherwise. Some customers arrive specifically to play, while others discover the venue while passing by. Over time, these new visitors can become regular customers who return for the atmosphere, the social environment, and the gaming experience.
Boost Customer Loyalty
Once customers discover your video game cafe, the next goal is to keep them coming back. Many successful establishments find that video gaming encourages repeat visits — people tend to develop routines, stopping by the same location after work, meeting friends on certain nights, or returning to play their favorite machines. When customers enjoy the atmosphere of a gaming café, it can quickly become part of their weekly habits, which benefits both the business and its patrons.
How to Open Your Own Video Game Cafe in Illinois
If you’re considering opening a video game cafe in Illinois, there are a few important steps to follow.
- Envision Your Café
Like any business, success starts with a clear concept. Think about the type of environment you want to create and the customers you hope to attract. Some gaming cafés focus on a relaxed neighborhood feel, while others lean toward a more modern entertainment lounge. Understanding your target audience will help shape everything from the décor to the menu and gaming layout.
- Find the Right Location
Location plays a major role in the success of any hospitality business. A video game cafe should ideally be located in an area with strong visibility and steady foot traffic. At the same time, you’ll need to consider local zoning rules and municipal regulations related to gaming establishments. The Illinois Gaming Board provides guidance on where video gaming is permitted and what rules apply in different municipalities across the state.
- Apply for the Necessary Licenses
To legally operate a gaming café in Illinois, businesses must obtain the appropriate licenses. Most locations will need a liquor license, a video gaming license, and approval from the Illinois Gaming Board. Not every business qualifies automatically — it’s worth checking eligibility for an Illinois gaming license early, since approvals can take time depending on the municipality and the documentation required.
Is a Video Game Cafe the Right Business for You?
For entrepreneurs in Illinois, a video game cafe can be a unique business opportunity. It combines hospitality, entertainment, and regulated gaming into one venue that can attract steady customer traffic — backed by a statewide market that’s still growing year over year.
With the right location, atmosphere, and compliance with Illinois gaming regulations, many café owners find that adding video gaming terminals can significantly strengthen their overall business model.
If you’re interested in learning more about starting a gaming café or adding slot machines to your venue, Universal Gaming Group can help guide you through the process, from licensing requirements to machine installation and ongoing support. Contact us today to get started.
