Legal and Regulatory Status
Video Gaming in Chicago: Legal Status, Eligibility & What Businesses Need to Know
Since the passing of the Illinois Video Gaming Act in 2009, video gaming terminals have been permitted throughout Illinois but banned within the Chicago city limits. That changed in early 2026 when the city officially passed the ordinance and updated the municipal code to allow licensed businesses to install regulated gaming machines.
With the Illinois Gaming Board (IGB) now accepting applications, many bars, restaurants, and entertainment venues are exploring what Chicago video gaming could mean for their businesses’ success. Here’s what you need to know about gaming in Illinois.
Is Video Gaming Now Legal in Chicago?
Yes. As of February 2026, video gaming terminals (VGTs) are now legal in Chicago. The city notified the Illinois Gaming Board that it would participate in the statewide video gaming program, allowing licensed establishments to apply to host regulated machines. However, businesses still need to meet licensing requirements, and some wards may have additional restrictions.
It’s also important to understand the difference between regulated Illinois VGTs and sweepstakes-style machines. With sweepstakes devices, individuals purchase a product and receive a free entry into a sweepstake-style game to potentially win prizes. These devices aren’t regulated under the Illinois Video Gaming Act.
VGTs, on the other hand, are fully regulated by the Illinois Gaming Board and operate within the state’s official gaming framework. They are heavily regulated, and operators like J&J Gaming are approved to distribute them throughout the state of Illinois.
The policy change followed months of debate between Chicago’s City Council and the mayor’s office. While Mayor Brandon Johnson opposed expanding video gaming, he did not veto the measure when it was included in the city’s 2026 budget.
After additional pressure from City Council members, the City Clerk submitted the required notice to the state, allowing the Illinois Gaming Board to begin processing applications from Chicago businesses.
How Chicago Video Gaming Legalization Happened: A Timeline
Chicago’s decision to allow video gaming terminals followed months of policy debate involving city officials, Illinois video gaming terminal operators, and local business advocates. Supporters argued the city was leaving millions in potential tax revenue on the table, while opponents raised concerns about competition.
A major factor behind the debate was projected revenue. Partnering with a terminal operator, like J&J Gaming, could bring in an additional $193,000* per year in annual revenue for businesses. From a municipality’s perspective, that is over $36 million** in annual municipal revenue for Cook County.
**Total Cook County municipality revenue from video gaming from October 2024 to September 2025
*Based on the location average for establishments of municipalities in Cook County from October 2024 to September 2025.
The key milestones below outline how the ordinance moved from proposal to implementation:
| Date | Event |
| September 2025 | The Chicago City Council License Committee votes 8–6 to advance Ald. Anthony Beale’s video gaming ordinance. |
| December 2025 | City Council passes the ordinance as part of the 2026 budget despite objections from Mayor Brandon Johnson. |
| January–February 2026 | The mayor’s office delays sending a formal notice to the Illinois Gaming Board; the City Council later passes a resolution compelling action. |
| February 25, 2026 | City Clerk Anna Valencia formally notifies the Illinois Gaming Board that Chicago will participate in the statewide video gaming program. |
| February 26, 2026 | The Illinois Gaming Board begins accepting applications from Chicago businesses interested in hosting VGTs. |
What Businesses Qualify for Video Gaming Terminals in Chicago?
With the city now participating in the statewide video gaming program in Illinois, many business owners are exploring how they can host regulated machines. To qualify, establishments must meet eligibility requirements set by the Illinois Gaming Board and the City of Chicago.
Under the Illinois Video Gaming Act, only certain licensed establishments can apply to host slot machines in Illinois. These locations must hold the appropriate state and liquor license and receive approval from the Illinois Gaming Board before terminals can be installed.
Eligible establishments include:
Those with a valid consumption on premises – incidental activity license for the retail sale of alcoholic liquor at a fixed place of business where the sale of alcohol is secondary to the primary activity of the business.
Examples are:
• Restaurants
• Hotels
• Theaters
• Bowling alleys and arcades
• Fraternal organizations
• Veterans organizations
Additionally, businesses with a Tavern License are eligible for video gaming.
There are also additional eligibility rules that establishments must follow to host slot machines in Chicago. These include:
• A maximum of six Chicago gaming terminals per location under the Illinois Video Gaming Act.
• Establishments must enter into an agreement with a terminal operator and obtain state licensing approval.
• All machines must connect to the IGB’s approved Central Control System.
Because the licensing process involves both state approval and coordination with a terminal operator, many businesses choose to work with an experienced Illinois gaming company like J&J Gaming that understands the regulatory process and installation requirements.
Frequently Asked Questions About Video Gaming in Chicago
Video gaming terminals became legal in Chicago in February 2026 after the city formally notified the Illinois Gaming Board that it would participate in the statewide video gaming program. The ordinance allowing machines was passed by the City Council in December 2025 as part of the city’s 2026 budget.
Under the Illinois Video Gaming Act, establishments may host up to six video gaming terminals per location. This limit applies statewide and is enforced by the Illinois Gaming Board.
Yes, all Chicago wards now allow video gaming. However, businesses should verify the policy in their ward before beginning the application process.
Yes. Bars and restaurants that hold the appropriate on-premise liquor or tavern license, along with a valid Illinois gaming license, may apply to operate video gaming terminals through the Illinois Gaming Board.
A video gaming terminal (VGT) is a regulated gaming device connected to the Illinois Gaming Board monitoring system and authorized under the Illinois Video Gaming Act. Video gaming terminal operators like J&J Gaming are approved to distribute them throughout the state, and they’re regulated and taxed. Sweepstakes machines give away the chance to win prizes with the purchase of a good or service. These are not part of the state’s regulated gaming program.
Revenue generated by video gaming terminals is subject to state taxation under the Illinois Video Gaming Act. Additional revenue may also be shared with municipalities where video gaming operates, which is one of the reasons Chicago elected to allow video gaming terminals after previously opting out.
Get Started with Video Gaming at Your Chicago Business
With the Illinois Gaming Board accepting applications from Chicago establishments, bars, restaurants, and entertainment venues across the city are exploring how regulated video gaming terminals can add a new revenue stream while offering guests additional entertainment.
If you’re considering adding video gaming terminals to your establishment, speaking with a specialist can help you understand eligibility requirements, licensing steps, and installation timelines for Chicago locations. At J&J Gaming, we work with eligible businesses throughout Illinois to help navigate the licensing process, install compliant terminals, and provide ongoing support once machines are up and running.
Get in touch with us today to learn more and see how our team can help get your video gaming terminals up and running.
If you or someone you know has a gambling problem, crisis counseling and referral services can be accessed by calling 1-800-GAMBLER (1-800-426-2537).
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