If you operate a bar, restaurant, truck stop, or gaming cafe in Illinois and want to host video gaming terminals (VGTs), you need a gaming license issued by the Illinois Gaming Board (IGB). This article walks you through every gaming license requirement, the application steps, what can disqualify you, and how to stay compliant once your license is issued.
What Is an Illinois Gaming License?
An Illinois gaming license is the official authorization from the Illinois Gaming Board that permits a licensed establishment to operate video gaming terminals on its premises. Without it, hosting VGTs is illegal under the Illinois Video Gaming Act.
The license matters for more than legal compliance. It signals to patrons that the machines in your establishment are regulated, certified, and fair. It also gives your business credibility with vendors, financing partners, and municipal authorities.
Every establishment must carry its own individual license regardless of how many locations an owner operates. A license from one location does not transfer to another.
Who Qualifies for an Illinois Gaming License?
The IGB reviews both the establishment and the individuals behind it. Meeting the gambling license requirements begins with understanding who is subject to scrutiny.
Eligible Establishment Types
The Illinois Video Gaming Act permits the following establishment types to apply for a gaming license:
- Licensed retail establishments that sell alcohol for consumption on premises (bars, restaurants, brew pubs)
- Licensed truck stops with a minimum of 10 fueling positions for tractor-trailer combinations
- Licensed fraternal establishments (such as veterans or fraternal organizations that meet specific membership criteria)
- Licensed gaming cafes
Establishments that do not hold a valid state liquor license or that primarily serve minors do not qualify.
Age Requirement
Every applicant and any person with significant influence or control over the operation must be at least 21 years old.
Character and Financial Integrity
The IGB assesses each applicant’s background for honesty, business integrity, and financial responsibility. Disqualifying factors include a criminal history involving felonies or fraud, past violations of gaming law, unresolved tax liens, problematic business associations, and failure to cooperate with regulatory bodies. Applicants are expected to be fully transparent throughout the process. Withholding information is treated more seriously than a disclosed issue.
Illinois Gaming License Requirements: The Full Checklist
Understanding how to get a gaming license starts with knowing exactly what the IGB reviews.
1. Background Checks
A thorough background investigation is required for every applicant and for all Persons with Significant Influence or Control (PSICs) connected to the establishment. PSICs include sole proprietors, partial owners, board members, officers, managers, and anyone whose role allows them to direct or influence the gaming operation.
The background check examines criminal records (including misdemeanors and felonies), civil judgments, debt history, past regulatory violations, and any prior associations with individuals or entities the IGB deems unsuitable.
PSICs are also prohibited from playing the VGTs at their own licensed establishment.
2. Fingerprints
All owners and PSICs must submit fingerprints through an IGB-approved fingerprint vendor. This step is required during the initial application and reviewed on an ongoing basis.
3. Business Entity Documentation
If the establishment operates as a business entity rather than a sole proprietorship, applicants must provide supporting organizational documents. These include articles of incorporation, LLC operating agreements, or partnership agreements. The documents must clearly establish the legal structure, ownership percentages, and roles of each party.
4. Proof of Identity and Residency
Valid government-issued photo identification is required for all applicants and PSICs, along with documentation confirming current residency.
5. Lease or Property Deed
Proof of the premises, whether leased or owned, is part of the required documentation. The IGB reviews this to confirm the applicant has authority over the gaming location.
6. Financial Records (When Requested)
Although not required in every case, the IGB may request financial statements, bank statements, and prior-year tax returns. This helps the board evaluate whether the business can operate a gaming establishment responsibly. Applicants should be prepared to provide these on request.
7. Liquor License
A valid state liquor license is required for most types of establishments. Its license number and expiration date are included in the gaming license application. Losing or failing to renew your liquor license puts your gaming license at risk as well.
8. Application Fee
The initial application fee is $100 and is non-refundable regardless of whether the application is approved or denied.
9. Municipal Permit
Many municipalities in Illinois require their own separate gaming permit or license in addition to the IGB license. Costs and requirements vary by city and village, and applicants should contact their local government before beginning the application.
How to Get a Gaming License in Illinois: The Application Process
The process involves multiple stages. Working with an experienced licensed Terminal Operator (TO) significantly reduces delays and errors.
Step 1: Partner with a Terminal Operator
Under the Illinois Video Gaming Act, every licensed establishment must contract with a licensed TO before installing VGTs. The TO submits the establishment’s online application to the IGB on its behalf and provides guidance throughout the process. Choosing an experienced TO with direct relationships at the IGB removes much of the guesswork.
Universal Gem was the first Terminal Operator to install licensed VGTs in Illinois. That distinction matters in practice: our team has navigated hundreds of applications, understands where delays occur, and knows the IGB’s expectations before you ever submit your first form.
Step 2: Complete the Online Application
The IGB’s online application is a detailed, multi-part form. It covers ownership structure, business history, gaming operation plans, and personal information for each PSIC. Accuracy matters. Discrepancies between what is submitted and what the background investigation uncovers can lead to delays or denial.
Step 3: Submit Supporting Documents
Along with the completed application, you will submit your business entity documents, proof of identity and residency, lease or deed, liquor license information, and any financial records the IGB requests. Your TO can help assemble and verify this documentation before submission.
Step 4: Background Investigation and Fingerprints
Following submission, the IGB conducts its background investigation. All PSICs submit fingerprints through an approved vendor. This stage takes time and cannot be expedited. Cooperating fully and responding promptly to any IGB requests keeps the process moving.
Step 5: Site Review
Before VGTs can be installed, the gaming area must be inspected and approved by the IGB. The area must be secure and accessible only to patrons who are 21 or older. No modifications to the approved gaming area can be made without IGB consent.
Step 6: License Issuance
If the application clears the review and investigation, the IGB issues the gaming license. The license is effective from the date of issuance and is subject to annual renewal fees and a full renewal review every two years.l every two years. License holders must adhere to ongoing compliance and reporting requirements to maintain their license in good standing.
What Can Disqualify You from Getting a Gaming License?
Disqualifying factors are explicitly defined by the IGB. Common grounds for denial include:
- Criminal convictions, particularly those involving fraud, theft, tax violations, or crimes against public trust
- Previous violations of the Illinois Video Gaming Act or any other gambling law
- Association with individuals or entities the IGB has deemed unsuitable
- Failure to disclose material information during the application process
- Outstanding tax debts or unresolved financial judgments
- Misleading or inaccurate documentation
Applicants with past issues are not automatically disqualified if those issues have been resolved and disclosed. The IGB places significant weight on transparency. An undisclosed issue discovered during the investigation is treated far more seriously than one that was proactively reported.
Compliance and Ongoing Obligations
Receiving the license is the beginning, not the end. The IGB conducts regular compliance monitoring and inspections of licensed establishments.
Responsible Gaming
License holders must implement and maintain responsible gaming policies. This includes displaying information about problem gambling resources, offering self-exclusion program information to patrons, and training staff to identify and assist individuals showing signs of gambling-related problems. The IGB takes responsible gaming requirements seriously and monitors compliance.
Surveillance and Access Controls
Licensed establishments are required to maintain video surveillance covering the gaming area and cash-handling operations. Access to the gaming area must be restricted to patrons 21 and older. These requirements apply to the Terminal Operator’s infrastructure, but the location is responsible for maintaining a secure and compliant environment.
Reporting Changes in Ownership or Structure
Any change in ownership percentage, addition of new investors, or change in the management team must be reported to the IGB promptly. Unreported changes can result in fines, suspension, or revocation. Note that gaming licenses cannot be directly transferred to a new owner. A business sale typically involves a stock purchase agreement, and the IGB must review and approve the suitability of incoming ownership.
Cooperative Marketing and Record Retention
Locations that share costs with their Terminal Operator for goods or services, including cooperative marketing activities, must maintain records of those arrangements for a minimum of three years. This applies to any promotion or advertising jointly conducted with the TO.
License Renewal: What to Expect
Gaming licenses in Illinois are issued for two years but require an annual renewal fee payment of $100. Renewal is not automatic.
Approximately one month before your license expiration date, the IGB will send a renewal notification to the email address on file. Do not submit payment before receiving this notification.
Payment can be made online through the IGB’s E-Pay system using your license number, or by check or money order mailed to the IGB. Failure to renew by the date of the IGB board meeting in the month of expiration will result in your VGTs being shut off. If payment is made within 10 business days of expiration, the machines can be reactivated upon receipt. If payment is not made within that window, you must restart the full application process.
Keep the following information current with the IGB to avoid renewal complications: ownership details, liquor license numbers and expiration dates, email addresses, home addresses, and telephone numbers.
Gaming Taxes and Financial Obligations
Video gaming revenue in Illinois is subject to state tax. The net terminal income (the amount wagered minus payouts) is split between the state, the municipality, the licensed establishment, and the Terminal Operator according to the percentages defined in the Video Gaming Act. Establishments do not remit this tax directly; the TO handles reporting and remittance through the central communications system. However, location operators should understand the tax framework as part of operating an informed business.
How Universal Gem Supports You Through the Process
Meeting every Illinois gaming license requirement on your own is manageable, but it takes time, attention to detail, and familiarity with a process the IGB enforces strictly.
Universal Gem has guided hundreds of establishments through the licensing process since Illinois first authorized video gaming. As the first TO to install licensed VGTs in the state, our team has direct experience with the IGB’s expectations at each stage of the application. We help you complete the application accurately, assemble your documentation, navigate background check requirements, prepare for the site inspection, and stay compliant after your license is issued.
If you are ready to get started or want to understand whether your establishment qualifies, contact us today.
Frequently Asked Questions
What is the minimum age to apply for an Illinois gaming license? All applicants and Persons with Significant Influence or Control (PSICs) must be at least 21 years old.
How much does an Illinois gaming license cost? The initial application fee is $100, non-refundable. The annual renewal fee is also $100. Many municipalities charge an additional local gaming permit fee that varies by jurisdiction.
Can one owner hold gaming licenses for multiple locations? Yes, a single owner may hold licenses across multiple locations. However, each individual establishment must carry its own separate gaming license issued to that location.
What happens if I fail to renew my gaming license on time? The IGB will shut off your VGTs. If you pay the renewal fee within 10 business days of expiration, your terminals can be reactivated. If you miss the 10-day window, you must go through the full application process again.
Can I transfer my gaming license if I sell my business? Direct license transfers are not permitted under the Illinois Video Gaming Act. Business sales are typically structured as stock purchase agreements, which allows the new owner to assume the entity that holds the license. The IGB must review and approve the incoming ownership before operations can continue.
Who counts as a Person with Significant Influence or Control (PSIC)? A PSIC is anyone whose position allows them to influence or direct decisions at the licensed establishment. This includes sole proprietors, partial owners, officers, board members, managers, and in some cases, key employees. PSICs must submit to background checks and fingerprinting, and are not permitted to play VGTs at their own location.
What are the most common reasons gaming license applications are delayed? The most common causes of delay are incomplete documentation, undisclosed background issues discovered during investigation, discrepancies between application information and business records, and slow responses to IGB information requests. Working with an experienced Terminal Operator reduces the likelihood of each of these.
Do I need a liquor license to get an Illinois gaming license? Most establishment types, including bars and restaurants, must hold a valid state liquor license as a condition of gaming license eligibility. Losing your liquor license will put your gaming license at risk.
What is the role of the Terminal Operator in the licensing process? The licensed Terminal Operator submits the establishment’s IGB application, provides guidance on documentation, manages VGT installation and maintenance, handles tax reporting, and supports ongoing compliance. Choosing an experienced TO with established IGB relationships makes the licensing process significantly more straightforward.
