Licensing and Compliance Requirements
How to Get a Video Gaming Terminal License in Chicago
To obtain an Illinois video gaming license, establishments must have both state and municipal approvals and comply with strict regulations. Business owners interested in installing Chicago video gaming terminals (VGTs) must follow a multi-layered process. This includes obtaining an Illinois Gaming Board license, securing local city permits, and partnering with a licensed terminal operator like J&J Gaming.
Chicago businesses such as bars, taverns, restaurants, and gaming cafes can legally operate VGTs once they meet eligibility requirements and complete the licensing process. For establishments interested in video gaming in Chicago, understanding licensing, agreements, and ongoing compliance responsibilities is the first step.
The process may take several months, but working with experienced video gaming terminal operators like our team at J&J Gaming can simplify each stage and make the process smoother. Here’s what you need to know.
Understanding the Use Agreement
A Use Agreement is a legally required contract which has been approved by the Illinois Gaming Board (IGB) between a licensed terminal operator and an establishment that outlines how the Chicago video gaming terminals will be installed, maintained, and operated at the location. While a Use Agreement isn’t required to submit an Illinois Gaming Board (IGB) application, an executed copy must be submitted with a City of Chicago establishment license application. Further, it must be executed before any Illinois VGTs can be physically installed at a business location.
Under IGB Rule 320(a), this agreement must contain required terms including:
• Only be between a licensed terminal operator and licensed video gaming location or applicant
• An affirmative statement that no inducement was offered or received in exchange for signing the Use Agreement
• An indemnity on behalf of the State of Illinois relative to a cause of action arising from the Use Agreement
• That no assignment other than to another licensed terminal operator is permissible
• Allow the establishment the ability to terminate the agreement if the terminal operator no longer holds a valid terminal operator license
• Not allow for the automatic renewal of the Use Agreement nor a term exceeding 8 years
The Illinois Video Gaming Act requires the income generated from VGTs, after payment of the gaming tax, to be equally split between the establishment and the terminal operator which is memorialized within the Use Agreement. Both the IGB and the City of Chicago prohibit terminal operators from offering inducements, meaning operators cannot offer anything of value or operational use as an incentive for a business to sign a Use Agreement. At J&J Gaming, we pride ourselves on maintaining our compliance as an operator as well as helping your establishment remain compliant.
We also simplify the process by providing the Use Agreement as part of the onboarding process. Establishments don’t need to draft their own legal contract or navigate complicated regulatory language. Instead, the agreement is structured to comply with Illinois law while protecting both parties involved in the partnership.
Step-by-Step: How to Get a Video Gaming License in Chicago
Chicago businesses must complete several licensing steps before installing video gaming terminals. The process involves coordination between the Illinois Gaming Board, the City of Chicago, and a licensed video gaming terminal operator.
1. Contact a Licensed Terminal Operator
Start by working with a licensed terminal operator such as our experts at J&J Gaming. We’ll evaluate your location and begin the Use Agreement process.
2. Obtain or Confirm Your Illinois Liquor License
Establishments must hold valid liquor licenses from the City of Chicago and the State of Illinois before applying for video gaming terminals. They must also comply with all applicable Illinois state regulations.
3. Submit an Illinois Gaming Board Location License Application
Businesses must apply for an establishment license through the Illinois Gaming Board. The application is submitted online and requires ownership documentation, fingerprinting, and a one-time $100 application fee.
Businesses can access required forms and licensing documentation through the official IGB portal. J&J Gaming is available to assist in the application process.
4. Complete Background Checks and Fingerprinting
Owners and key personnel must undergo background screening through the Illinois Gaming Board.
5. Execute the Use Agreement
Establishment signs the Use Agreement with their chosen terminal operator.
6. Submit a City of Chicago Location License Application
Along with a copy of the IGB establishment license application, a copy of the executed Use Agreement, information regarding the selected terminal operator, and information relating to any person with substantial interest in the location, an application gets filed with the City of Chicago. The application must be accompanied with the location license fee of $500.00. The City of Chicago will not issue the location license without first receiving a copy of the location’s establishment license issued by the IGB.
7. Pass the Illinois Gaming Board Inspection
IGB inspectors will confirm that the proposed gaming area is appropriate and ready for machine placement.
8. Obtain Chicago Municipal VGT Licensing
Chicago requires both the location licensee and the terminal operator licensee to pay a license fee of $1,000 per video gaming terminal being placed and operated at the location.
9. Receive Final Approval and Activate Video Gaming Terminals
After IGB approval and connection to the Illinois Central Control System (CCS), the location receives a go-live date, and terminals can begin operating. The Illinois Gaming Board notes that licensing review may take several months.
Ongoing Compliance Responsibilities
Receiving an Illinois gaming license is only the beginning. Licensed establishments must maintain ongoing compliance with Illinois Gaming Board rules and Chicago municipal regulations.
Establishments that already operate Chicago gaming terminals in Cook County should also stay current with liquor licensing renewals and regulatory updates.
Our team at J&J Gaming helps you remain compliant with our extensive experience in the industry in addition to our in-house customer portal, J&J Connect, where you can easily review and upload your licenses and browse additional resources.
Establishment Compliance
Key compliance obligations for licensed video gaming locations include:
• Ensuring VGTs remain in designated 21+ areas and are never accessible to patrons under age.
• City of Chicago requires that a location employee that is over 21 to have a direct line of sight to the game room or entrance to the game room at all times VGTs are in operation.
• Removing any slot machines in Illinois that have been out of service for more than 72 hours.
• Reporting suspected violations or illegal gaming activity to the Illinois Gaming Board.
• Not accepting inducements from terminal operators.
• Maintaining required responsible gaming signage and notices.
• Renewing Illinois video gaming terminal licenses annually.
• Renewing state liquor licenses every two years.
Terminal Operator Compliance
As a dedicated Terminal Operator, J&J Gaming ensures important compliance responsibilities to keep your gaming business operating efficiently. These duties are handled solely by J&J Gaming, allowing establishments to focus on daily operations. These items include:
• Maintaining VGT connections to the Illinois Central Control System (CCS)
• Responding quickly to service calls and maintaining high machine uptime.
• Keeping Use Agreements on file for Illinois Gaming Board inspection.
• Managing revenue accounting and distribution of Net Terminal Income (NTI).
• Filing required gaming tax reports with the State of Illinois.
Chicago VGT Restrictions & Operating Rules
Gaming establishments in Illinois must follow specific operating rules once the video gaming terminals are installed. These requirements ensure video gaming in Illinois remains regulated and compliant with state law.
| Rule | Requirement |
| Maximum VGTs per location | Up to 6 terminals |
| Minimum player age | 21 years or older |
| Gaming area requirement | Must designate a 21+ gaming area with staff visibility |
| Maximum bet per play | $4.00 |
| Maximum win per spin | $1,199.00 |
| Terminal connection | Must connect to the Illinois Central Control System |
| Service requirement | Must be installed and serviced by a licensed Terminal Operator |
These regulations are enforced by the Illinois Gaming Board and municipal authorities to ensure responsible gaming practices throughout the state.
Why Chicago Businesses Choose J&J Gaming as Their Terminal Operator
Choosing the right terminal operator is an important decision for businesses entering the video gaming market. Experienced operators help establishments navigate Illinois video gaming license requirements while ensuring machines operate reliably and remain compliant with state regulations.
With over 95 years of experience in gaming and amusements, our team at J&J Gaming provides reliable infrastructure, compliance guidance, and long-term partnerships for establishments entering the video gaming industry. We’re the largest privately owned terminal operators in Illinois, serving more than 2,500 licensed locations across the state.
When you partner with us, you get:
• 24/7 service support with* 99.7%+ machine uptime.
• FlexPay, which allows establishments to choose their preferred payment schedule.
• J&J Connect, a real-time reporting dashboard that tracks gaming revenue and performance.
• Full licensing support from application through final installation.
• Regulatory expertise across Illinois municipalities, including Chicago.
By combining operational experience with compliance knowledge, our team helps establishments launch gaming programs that are both profitable and fully compliant with Illinois law.
*Based on service and machine performance for live J&J accounts for October 2023.
Start the Chicago Video Gaming Process with J&J Gaming
Launching video gaming terminals in Chicago requires careful coordination between state regulators, municipal licensing offices, and terminal operators. From navigating the Illinois Gaming Board application to installing compliant gaming terminals, the process can be complex without expert guidance.
Our team at J&J Gaming works directly with Chicago business owners to manage licensing steps, prepare required documentation, and ensure every location meets Illinois gaming regulations before going live. With dedicated support and proven operational systems, establishments can move through the licensing process confidently and begin generating gaming revenue as quickly as possible.
Get in touch with our team today to begin the licensing process and evaluate your location’s current eligibility.
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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