Video gambling revenue collections continue to grow for local governments

Municipalities and counties that allow video gambling saw their collective share of revenue generated by the devices grow by more than $7.6 million in 2025.

The combined $160 million distributed to the nearly 1,100 local governments last year represents a 5% increase in collections from the previous year, according to Illinois Gaming Board records.

Meanwhile, the number of establishments in the state offering video gambling rose 2.3%, from 9,230 in 2024 to 9,441 in 2025. And the number of video gambling terminals grew 1.8% in 2025 as well, state data shows.

But in the suburbs, many local government officials in towns where the devices are allowed see the additional revenue as a secondary benefit.

“It wasn’t done as a revenue grab,” said Palatine Mayor Jim Schwantz. “We’ve seen businesses invest those dollars back into their operations, which is what we hoped they’d do; updating menus, keeping prices down and renovating.”

The village generated nearly $235,000 from the 64 devices operating in 2025. The funds are earmarked for capital improvement projects.

Palatine only began allowing video gambling in 2022, at the behest of some local restaurant owners. Village officials limited licenses to certain types of businesses. It’s not allowed at gas stations or standalone strip mall operations like in others suburbs.

“There’s no outside advertising,” Schwantz said. “You wouldn’t even know it’s in some of our places unless you walked in and went looking for it.”

Warrenville also is a newcomer, allowing video gambling since 2022 as well.

City Administrator Cristina White said there was an expectation more restaurants would participate, but uptake has been slower than expected. Only four businesses offer video gambling there and the city received $60,031 in 2025 from the 20 devices operating.

“We have a different set of criteria than other places,” she said. “It has to be a location that serves food and been in operation for over a year before they get a license.”

Tax revenue collected from the devices in Warrenville goes to the city’s capital maintenance replacement fund.

Unincorporated areas of Lake County are home to the largest number of video gambling terminals. There were 73 licensed businesses with 416 machines operating in 2025, according to state records.

The county received more than $1.2 million in tax revenue from the devices last year. The vast majority, by statute, goes to a special fund that awards grants to “social programs, projects and/or services” in the county “with preference to requests seeking to alleviate the negative effects of problem gambling.”

The statute requires $825,000 of the county’s annual video gambling collections go into that fund; the remainder goes into the county’s general fund.

“Gambling addiction has a real cost and hurts vulnerable people,” said Lake County Board member Paul Frank, who serves as chairman of the county board’s financial and administrative committee. “That’s the reason we established a guaranteed amount.”

Municipalities that allow video gambling receive 5% of the revenue collected from each device. The state receives 30% and the business owner and terminal operator split the remaining 65%. The municipal share has remained unchanged since the machines were legalized in 2012.

“We put it all back into the community,” said Addison Village Manager Joe Maranowicz. “Every event we have, the gaming revenue pays for all of it, that and cannabis taxes too.”

Addison generated nearly $800,000 in video gambling taxes last year, one of the highest totals among the suburbs, state records show.

However, Maranowicz said the village has tightened regulations and limited new video gambling licenses.

“We want video gaming to be an accompaniment to the business, not the reason for the business,” he said.

Illinois collected more than $955 million from video gambling taxes last year, that’s despite Chicago continuing its ban on the devices.