The State of the Industry
A short, yet comprehensive review of the past, present and future success of the Illinois Video Gaming Industry.
From 2012-2024, the Illinois Video Gaming Industry continues to attract people from all over Illinois to participate in this $17 Billion industry.
The Illinois Video Gaming Industry is a novelty in the world and no other state (foreign or domestic) has such a vast distributed gaming network churning money into private investment and job growth, but also critical tax dollars which are then used to fund our roads and bridges.
The participants of the IL Video Gaming Industry have a lot to be proud of and a lot to be thankful for as we begin the 2nd decade of regulated VGTs in the Land of Lincoln!
Evolution of the Illinois Video Gaming Industry
The IL Video Gaming Act was approved in 2012 as part of the state’s capital improvement plan. Although there was a slow start, the impact of video gaming is undeniable having produced over $5 Billion in tax revenue to date for the state and municipalities.
In 2019, the Act was opened and expanded to include increases to the number of machines permitted, increases to the max bet amount by a player and other consequential changes to the larger gaming industry in IL, which resulted in rapid casino and sports betting expansion statewide and multiple brick and mortar establishments and online sportsbooks.
The 2019 legislative changes, coupled with the impact and loss of revenue during the COVID-19 pandemic, clearly illustrate the importance of these changes on the establishments' ability to stay open and local governments' ability to maintain their coffers during difficult times.
VGT revenue has sustained not only the state of IL but also the municipalities and small businesses who take part. It has spurred private investment and created thousands of jobs since 2012.
In 2024, the VGT industry is facing new obstacles as it looks to continued prosperity. Nowhere in the world does there exist a distributed gaming network such as the likes of Illinois. However, Illinois is not immune to evolving audiences and how they consume their content.
Current Trends and Dynamics
As the VGT industry continues to mature, it will become more and more necessary to present a product which offers a unique customer experience above all else. Through PSG’s Red Carpet Reward’s Program, the customer feels that experience every time and always wants to come back. Such an experience is necessary to compete with the likes of sports betting and iGaming – which offer ease and comfortability for the player, while making bets from the comfort of their own home. Ultimately, these threats will always be present.
However, one current trend continues to be the IGB’s shift away from casino regulation and towards increased video gaming regulation as they look to develop rulemaking for a potential future video gaming rule that could allow temporary operating permits, expedited licensure and/or conditional licensure in narrow circumstances. News like this makes the industry hopeful that the IGB will continue to focus on the needs of establishment owners.
Conclusion & Outlook
With over 8,500 establishments and 47,500 VGTs statewide, count on IL Video Gaming to reach 10,000 and 50,000 by the year 2030.
As gaming expands and grows, continue to look for IL Video Gaming as the top revenue generator for the state. The revenue made possible by VGTs results in the prosperity and safety of all Illinoisans and allows local communities to keep their property tax levies low. Video Gaming is here to stay, and you may continue to see several communities, including the City of Chicago, asking themselves if they should get in on the action!