Video Gaming Terminals (VGTs) are omnipresent in Illinois and licenses are still being awarded, while fines are also being handed out when businesses color outside the lines.
Deer Park Issues First VGT License
According to the Illinois Gaming Board’s website, “The Video Gaming Act was enacted in July 2009, authorizing the placement of Video Gaming Terminals (VGTs) in licensed retail establishments, truck stops, and veteran and fraternal establishments. The VGTs are all connected to and monitored by a Central Communications System. Today, more than 8,400 licensed video gaming locations operate over 46,400 VGTs across the state – comprising the largest video gaming network of its kind in the world.”
And more VGTs are on their way. Roughly an hour north of Chicago lies Deer Park, Illinois, and recently the village board granted a license to install and operate up to six video gaming terminals to Bowlero, the only business in the community that fits the regulatory code of having 30,000 square feet of space and legally serves alcohol.
It was the first license of its kind in Deer Park and Bowlero will be required to pay a $250 annual licensing fee. Deer Park is just one of over 325 Bowlero locations with the vast majority residing in the United States. It is reportedly the largest ten-pin bowling center operator in the world.
Village Administrator Beth McAndrews said, “The board was OK with the request as long as it’s limited to Bowlero. The village appreciates and values our relationship and partnership with Bowlero and is pleased to help promote business while maintaining our top priority of safety.”
Breaking the Rules
Accel Entertainment is the nation’s largest video gambling terminal operator, which makes Illinois fertile ground for its business. However, a court battle has been raging over the last two years between Bowlero and state regulators trying to impose a $5 million fine on the gaming operator for entering into an agreement with online sportsbook giant, DraftKings, that would pay commissions to business owners who put Accel’s VGTs in their establishments.
Regulators contend this breaches the Illinois Gaming Act as “inducements” are not allowed and the $21,000 in commissions that were paid are violations of the statute. Accel had initially vowed to fight the charges “vigorously” according to its response back in December 2020 when the fine was imposed.
Yet, a compromise was ultimately struck that would see Accel paying a $1 million fine and $125,000 to the regulatory board for its administrative and investigative costs.
Gaming Board Administrator Marcus Fruchter said Accel “has acknowledged that its conduct underlying the disciplinary complaint did not meet the standards and expectations” for licensed video gambling operators. Fruchter further added that Accel committed to “enhanced compliance, training, and reporting requirements.”
Shortly before the board unanimously approved the agreement Board Chairman Charles Schmadeke lauded the deal saying, “I will only say that I think this is a terrific resolution and I hope it leads to a better relationship.”
Accel Entertainment, based in Burr Ridge was founded in 2012 and went public in 2019, and is currently doing business in Illinois and a dozen other states.
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