Chicago-Area Video Gambling Spreads to More Than 200 Municipalities Since 2009 Legalization

Video gambling has become entrenched across the Chicago metropolitan area, with nearly 80% of communities now permitting the machines and more than 200 municipalities allowing them in one form or another. This marks a reversal from less than two decades ago, when the activity was illegal throughout Illinois. The state legalized video gaming terminals in 2009, and the machines became publicly available in 2012.

By early September 2026, Illinois counted 8,799 licensed video gaming locations and 50,049 terminals, according to the Illinois Gaming Board. The agency stated that the Prairie State is home to the largest regulated distributed video gaming network of its kind in the world. Last year alone, more than 49,000 terminals produced $3.19 billion in net terminal income and close to $1.12 billion in tax revenue for state and local governments.

Local Policies Shift as Saturation Concerns Mount

The expansion has prompted municipalities to reassess earlier positions. Video gambling is now permitted in almost every municipality across Kane, McHenry and Will counties, while bans remain more common in Cook, DuPage and Lake counties. North Chicago has tightened its rules after determining that gambling had become too concentrated. New establishments must now generate at least two-thirds of their revenue from non-gaming activities, and new gambling businesses cannot open directly next to existing ones.

“We didn’t want to be known as a little Vegas,” said Greg Jackson, chief of staff to Mayor Leon Rockingham Jr. Jackson added that the goal is to reduce gaming concentration while pursuing other forms of economic development. In contrast, Bolingbrook recently lifted its long-standing ban after an advisory referendum showed support for video gambling, though officials plan to allow the machines on a limited basis.

The Illinois Gaming Board has identified sweepstakes machines operating without licenses, taxation, oversight or consumer protections. Through August 2026, Illinois communities had collected more than $111 million in video gambling tax revenue, while the state had received nearly $685 million. Critics contend that the proliferation contributes to gambling-related harm, increases visibility of gambling in daily life and correlates with burglaries at affected establishments. As reported by GamblingNews, local governments continue to weigh how much revenue justifies the associated costs.

Reporting: GamblingNews

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