Opening a gaming business, whether adding video slots in your bar or restaurant, or opening a dedicated gaming cafe is an exciting time for business owners. After working through all of the necessities, like securing your gaming license and working through the video gaming legal requirements, it’s time to prepare for what it will be like to open and operate your gaming business. As the first Terminal Operator to install VGTs in Illinois, we’ve helped all kinds of business owners launch and manage their gaming business. Here’s some of what you can expect.
Working with Local Municipalities and Business Associations
Before launching any gaming business, expect to be in regular contact with local municipalities and business associations in your area. Building relationships with these entities can go a long way toward gaining support for your business both before and after launch. Most communities will already have a good idea of what to expect with gaming establishments but some might need reassurance that you will operate a legitimate business that will bring value to the community. Plus, it’s always a good idea to stay up to date on how any local regulations may impact your ability to operate and expand.
Financial Expectations
Many new gaming business owners have questions about revenue expectations. While it can vary, in April of 2024, the IGB indicated an average of $9,300 in gross gaming revenue per establishment. As a rule of thumb, VGT revenue is split three ways, with business owners receiving about 1/3 of revenue. The timeline to a return on your investment can vary, depending on factors such as the location of the establishment, but most VGT businesses begin profiting steadily not long after launch.
Ready to open your gaming business? Read our guide on opening a new gaming business in Illinois, and contact us with any questions or when you’re ready to get started.
Managing a new income stream
Top of mind with new gaming business owners is often how much revenue a bar, restaurant or gaming cafe can generate with video gaming? In the month of April of 2024, the IGB data indicates an average of more than $9,300 in gross gaming revenue per establishment. It’s never too early to start making plans for the extra revenue. Many bars and restaurants invest in upgrades to their establishments, including site and equipment improvements or revamping a menu. To keep customers coming back, and thereby keeping gaming revenue flowing, establishments should always be looking for opportunities to improve.
Marketing and Promoting Your VGT Business
The best thing VGT business owners can do to promote their business is to work regularly with their TO account managers to stay current with new promotions, special events, and new signage and marketing collateral. But the most profitable gaming business owners are active in promoting their business by engaging with their patrons, publishing promotions on their websites and social media, and engaging regularly with the local community.
Universal Gaming Group’s new loyalty program, My Player Perks, is helping gaming business owners attract new customers, increase customer loyalty, and grow revenue. Read about My Player Perks, and how to get it in your establishment.
Engaging with the Public and Community Organizations
Oftentimes the members of your community and community organizations will have questions or even some reservations about a new gaming business. Engaging with the community before launch is a good opportunity to address any concerns about gambling and its impact and, importantly, to highlight responsible gaming policies, self-exclusion programs and to educate residents about the benefits of VGT revenue for the local economy.
Managing Existing Customers in Bars and Restaurants
Most establishments’ customers will be excited about having a new form of entertainment in their favorite bar or restaurant. But some will have questions about how VGTs might impact the existing atmosphere. Highlight the fact that gaming is an added but separate feature and that everything they love about the establishment as it is won’t change. In fact, the added revenue can result in improvements to the rest of the establishment, whether it’s new menu items, upgraded AV systems or other items on the wish list. Also, it’s a good idea to train your staff to handle customer questions and concerns about the machines.
Handling Opposition from Residents and Local Groups
Some community members and groups might be opposed to a new gaming business in their area. The key to handling any opposition is to educate. Make sure you and your staff are well-versed in topics such as responsible gaming and the economic benefits to local communities. It’s also a good idea to work with local charities and organizations to find ways for your business to be a positive influence on the community overall.
Operational Challenges and Time Commitments
One of the great advantages of operating a gaming business is that the time commitment is relatively low, compared to other businesses. The key is to find the right Terminal Operator to handle compliance with local regulations, maintenance of machines, cash collection, game updates and more. Most of the hands-on work for business owners comes in handling customer questions, contacting your TO with any issues, and self-promotion of the business.
Long-Term Growth and Expansion Strategies
Gaming businesses owners should always be thinking about long-term growth strategies. This can include maximizing the number of machines in your location (up to 6 machines per location), optimizing the gaming area layout, increased marketing efforts, opening new locations, and staying ahead of new trends in the industry that might impact future revenue. Here are 5 questions you should be asking your Terminal Operator to make sure you’re getting the most out of your investment now and in the future.
Launching a new gaming business or expanding your current business is an exciting time. It can also come with many questions. We hope this quick guide is helpful. If you have more questions, please don’t hesitate to contact us. We’re here to help!
