Video Gaming in Illinois
On July 13, 2009 the Illinois Video Gaming Act signed into law that makes video gaming terminals legal in the State of Illinois. The Act allows for video gaming terminals (VGTs) to be placed in properly licensed bars and restaurants, as well as truck stops, veterans establishments, and fraternal establishments, for the use of the general public (21 years old or older). The Illinois Gaming Board will supervise and regulate all video gaming in Illinois.
The Act contains various licensing requirements for VGT manufacturers, distributors, suppliers, operators, establishments, and technicians. Manufacturers, distributors, and suppliers must each be licensed and may do business only with licensed terminal operators. The Act prohibits manufacturers, distributors, and suppliers from owning or operating VGTs located in licensed establishments. Only terminal operators may contract with licensed establishments.
Establishments eligible for a license are those where alcoholic liquor is served for consumption on the premises, as well as truck stops, fraternal establishments, and veterans’ establishments that satisfy certain criteria. The annual license fee for establishments is $100. Establishments may not own VGTs and must contract with a terminal operator.
A terminal operator is a company licensed to own, service, and maintain VGTs for placement in licensed establishments. Each establishment may operate up to 5 VGTs on its premises. By law, the terminal operator and the establishment where VGTs are located are required to split all after-tax profits 50/50.