Wind of change over the Chicago area: video gambling has turned into a full-blown fixture across the metropolitan area. Today, nearly 80% of communities have officially embraced the machines and more than 200 municipalities allow them in one form or another.
Big Change from 20 Years Ago
The spread marks a dramatic change from less than two decades ago, when video gambling was deemed illegal in Illinois. The Prairie State legalized video gaming terminals in 2009, and the machines became available to the public three years later, in 2012.
By early September 2026, Illinois had already gathered no less than 8,799 licensed video gaming locations along with a whopping 50,049 terminals, according to the Illinois Gaming Board.
The state is, therefore, home to the largest regulated distributed video gaming network of its kind in the world, the agency said.
As expected, the financial impact of the ongoing growth has been significant. Last year alone, more than 49,000 terminals generated $3.19 billion in net terminal income, producing close to $1.12 billion in tax revenue for state and local governments.
Raising Questions
Nonetheless, the fast development is also, as always, raising serious questions regarding the actual amount of gambling that some communities can or cannot absorb.
Video gambling is permitted in almost every municipality across Kane, McHenry and Will counties, while bans are more common in Cook, DuPage and Lake counties. In parts of the region, local officials are now reconsidering policies that were introduced years ago.
North Chicago, for example, has decided to tighten its regulations after officials established that gambling had become too concentrated.
Accordingly, new establishments here must now generate at least two-thirds of their revenue from activities other than gaming. In contrast, 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. The goal, he explained, is to reduce gaming while pursuing other forms of economic development.
Other communities are moving in the opposite direction. One such example comes from Bolingbrook, which recently decided to lift its long-standing ban at the end of an interesting advisory referendum that showed support for allowing video gambling.
Officials there say the machines will still be allowed, but on a limited basis.
Beyond Regulated Terminals
Sweepstakes machines, which the Illinois Gaming Board says are illegal gambling devices, have also appeared across the region. The agency says they operate without licensing, taxation, oversight, or consumer protections.
Critics argue that the sheer number of gambling machines can contribute to gambling-related harm and make gambling more visible in everyday life. They also point to burglaries at establishments that operate the machines.
At the same time, municipalities rely on gaming revenue. Through August 2026, Illinois communities had collected more than $111 million in video gambling tax revenue, while the state had taken in nearly $685 million.
For local governments, the challenge is increasingly about deciding how much revenue is worth the costs that may come with it.