Video gaming terminal licensing coordinated with the Illinois Gaming Board — from initial IGB eligibility review through café gaming approval, terminal operator agreements, and terminal activation.
The Illinois Video Gaming Act permits licensed bars, restaurants, liquor retailers, and certain other establishments to operate up to six video gaming terminals (VGTs) on their premises. The program is administered by the Illinois Gaming Board (IGB), which issues licenses to qualified establishments, terminal operators, and individual gaming machines.
Municipal Licensing Group advises qualifying establishments through the full IGB licensing process — from initial eligibility assessment and terminal operator selection through license application, IGB approval, and terminal activation. We coordinate with your terminal operator, manage all IGB filings, and ensure your establishment meets all regulatory requirements before the first terminal is placed.
To qualify for a video gaming license in Illinois, an establishment must meet all of the following requirements:
The establishment must hold a valid liquor license — either a state retailer's license or a municipal liquor license. Establishments holding a packaged goods (Class P) license in Chicago do not qualify — video gaming is only permitted in establishments where alcohol is consumed on-premises.
The establishment must not be located within 1,000 feet of a school or place of worship (in municipalities that have adopted this restriction). The establishment must not have video gaming prohibited by local ordinance — notably, the City of Chicago has a local ordinance prohibiting video gaming terminals in most establishment types within the city limits. Cook County suburbs with their own municipal liquor licensing (including Morton Grove, Niles, Glenview, and Skokie) generally permit video gaming in qualifying tavern and restaurant operations.
All owners, officers, and persons with 25% or more interest in the establishment must pass IGB background investigation.
Video gaming terminals cannot be placed in an establishment directly by the establishment owner — they must be placed and operated by an IGB-licensed terminal operator under a terminal placement agreement. The terminal operator is responsible for the machines themselves, maintenance, and regulatory compliance at the machine level. MLG advises on terminal operator selection, reviews terminal placement agreements on behalf of establishment clients, and coordinates between the establishment and the terminal operator throughout the licensing process.
Under the Illinois Video Gaming Act, net terminal income (NTI) from video gaming terminals is split: 34% to the State of Illinois (tax), 5% to the municipality, and the remaining 61% split between the terminal operator and the licensed establishment per their placement agreement. Terminal operators and establishments typically negotiate a 50/50 split of the 61% establishment share, though terms vary. MLG advises clients on standard market terms for placement agreements in the Chicago suburbs.
What's IncludedOur Approach
We assess your establishment, liquor license status, location, and ownership structure against IGB eligibility requirements and local municipal ordinances.
We guide you through terminal operator selection and review the placement agreement terms to protect your revenue share and operating interests.
We prepare and file the IGB establishment license application, coordinate background checks, and manage all IGB communication through the review process.
We confirm IGB approval, coordinate terminal placement and activation with your terminal operator, and ensure all compliance requirements are met before terminals go live.
Common Questions
Not yet — but that is changing. The Chicago City Council has approved legislation to allow video gaming terminals within Chicago city limits, but final implementation and regulatory framework details are still pending. Until the City formally opts in and establishes its local licensing structure, video gaming terminals remain unavailable at Chicago establishments. MLG is actively monitoring the rollout and will advise clients on eligibility and timing as soon as the City of Chicago program is finalized.
In the meantime, establishments in Cook County suburbs — including Morton Grove, Niles, Skokie, Glenview, Lincolnwood, and many others — may qualify for video gaming terminals now if they hold an on-premises liquor license and meet all IGB eligibility requirements. MLG advises on eligibility for your specific location.
The IGB establishment licensing process typically takes 60 to 120 days from application submission, depending on the completeness of the application and the speed of the background investigation for all qualifying principals. Terminal placement and activation can be completed relatively quickly after IGB approval — within 2 to 4 weeks in most cases. MLG manages the full timeline, provides status updates throughout the IGB review, and coordinates terminal activation promptly after approval.
Under the Illinois Video Gaming Act, a licensed establishment may have up to six (6) video gaming terminals. Municipalities may choose to set a lower cap by local ordinance. The terminals must be placed by an IGB-licensed terminal operator under an approved placement agreement. All machines placed must themselves be IGB-licensed gaming devices.
A terminal placement agreement is the contract between a licensed establishment and an IGB-licensed terminal operator that governs the placement, maintenance, and revenue sharing of video gaming terminals. The agreement specifies the revenue split between the operator and the establishment, the number of terminals, the term of the agreement, and each party's responsibilities. MLG reviews placement agreements on behalf of establishment clients to ensure the revenue split and terms are fair and in the client's interest before any agreement is signed.
A gaming establishment license is issued to the specific legal entity and owner of the establishment — it does not automatically transfer with the sale of the business. When a licensed gaming establishment is sold, the new owner must apply for a new IGB establishment license. The terminal placement agreement may also need to be renegotiated with the terminal operator. MLG advises on gaming license considerations during business acquisitions and ensures the buyer understands the re-licensing requirements before closing.
Schedule a free consultation to assess eligibility, discuss terminal operators, and understand the full IGB licensing process before you commit to anything.
Initial consultations are complimentary. No commitment required.