Video Gaming Terminals Market By Terminal Type (Standalone VGTs, Networked VGTs); By Game Type (Video Slot Games, Video Poker & Keno, Multi-Game Platforms); By End-Use Location (Bars & Taverns, Truck Stops, Fraternal Organizations, Casinos); By Component (Hardware, Software Platforms, Maintenance & Services); By Geography, Segment Revenue Estimation, Forecast, 2024–2030

Introduction And Strategic Context

The Global Video Gaming Terminals Market is projected to expand at a CAGR of 6.8% , reaching approximately USD 10.6 billion in 2030 , up from an estimated USD 7.1 billion in 2024 , according to Strategic Market Research.

 

Video gaming terminals (VGTs) are specialized, interactive machines used primarily in entertainment venues, casinos, and licensed retail spaces. Unlike conventional gaming consoles, VGTs are embedded with regulated gambling functions—such as slots, poker, or bingo—offering both digital gameplay and real-money wagering. The category includes both standalone units and connected terminals integrated with centralized monitoring systems.

 

From a strategic standpoint, this market sits at the intersection of entertainment, gambling regulation, and digital transformation . Over the past five years, land-based gaming has increasingly leaned on VGTs to modernize their floor experience. Governments, meanwhile, are turning to legalized VGT deployment as a way to broaden their tax base without expanding traditional casino infrastructure. These machines offer a scalable, location-flexible model, often deployed in convenience stores, truck stops, racetracks, and bars.

 

On the tech front, new VGTs are rolling out with touchscreen interfaces, cloud connectivity, loyalty card systems, and even facial recognition—all aimed at enhancing personalization and player accountability. Think of them as slot machines meeting smart kiosks. As operators look to bridge the gap between online gambling and in-person gaming, VGTs are becoming the natural platform for hybrid experiences.

 

Another driver? Changing regulation. States like Illinois and Pennsylvania in the U.S., several provinces in Canada, and regions in Europe have passed laws allowing or expanding video gaming terminals outside of traditional casinos. This legal expansion is a huge growth lever—especially when coupled with low entry barriers for small venue owners.

 

From a stakeholder perspective, the ecosystem is diverse. OEMs and platform developers are designing modular VGTs that support multi-game formats and dynamic updates. Route operators act as intermediaries, managing deployment and revenue sharing with site owners. Government regulators and gaming commissions are enforcing compliance and auditing. And investors —both private equity and public gaming conglomerates—are circling this sector due to its predictable cash flow model and strong unit economics.

 

To be honest, what was once seen as a low-end cousin of casino gaming is now being rebranded as the local gaming economy’s growth engine. Especially in post-pandemic recovery markets, VGTs are offering a stable and tech-forward path to gaming revenue.

 

Market Segmentation And Forecast Scope

The video gaming terminals market spans multiple dimensions—from how the terminals are structured, to where and why they’re deployed, to who controls and regulates them. Segmenting this market helps clarify how innovation, regulation, and user behavior shape different revenue pockets.

By Terminal Type

• Standalone VGTs: These are self-contained machines, typically deployed in small venues like bars, gas stations, and fraternal organizations. They include onboard game storage, local credit handling, and offline reporting capabilities.

• Networked VGTs: Connected via a centralized system, these machines allow real-time game updates, remote diagnostics, and dynamic content changes. They’re popular in high-volume venues and regulated regions where oversight is critical.

Networked VGTs are gaining faster traction , especially in regions where regulators demand live data monitoring and dynamic revenue sharing models.

 

By Game Type

• Video Slot Games: The most widely used format, these simulate traditional slot mechanics with higher graphical quality and themed experiences.

• Video Poker & Keno: Cater to more strategic or repeat players. Their presence is stronger in states or countries with poker-oriented regulations.

• Multi-Game Platforms: Offer 5–10+ game options in a single unit. Venue operators prefer them for better floor ROI.

As of 2024, video slot games account for roughly 42% of the market by terminal gameplay usage, largely due to their high frequency and casual appeal.

 

By End-Use Location

• Casinos: These still use VGTs alongside full-scale electronic gaming machines (EGMs), especially in overflow areas or regional casinos.

• Bars and Taverns: These have become key VGT hubs, particularly in the Midwest U.S. and parts of Europe.

• Convenience Stores & Truck Stops: These sites prefer low-footprint terminals that drive ancillary revenue with minimal staff interaction.

• Fraternal Organizations (VFWs, Elks, etc.): Many of these nonprofit venues are allowed to operate VGTs under charitable gaming laws.

The bar and tavern segment is seeing the fastest installation growth, driven by revenue diversification strategies post-COVID and more relaxed licensing models.

 

By Component

• Hardware (screens, processors, cabinets, ticket printers)

• Software Platforms (game engines, loyalty integration, audit systems)

• Maintenance & Services (route operations, licensing support, game refreshes)

OEMs are beginning to unbundle VGTs into modular packages, allowing small operators to purchase hardware shells with customizable software licenses .

 

By Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East & Africa

Each region approaches VGTs through a different regulatory lens. For example, Canada allows provincial lottery-run VGTs, while U.S. states vary by statute.

Scope Note : This segmentation isn’t just about machine type—it reflects evolving public attitudes toward decentralized gaming. As more jurisdictions separate VGTs from traditional “casino-only” models, operators and OEMs are adjusting their offerings toward compact, high-turnover formats tailored for local play.

 

Market Trends And Innovation Landscape

Video gaming terminals may not scream “innovation” at first glance, but that’s changing fast. As the broader gambling ecosystem digitizes, VGTs are becoming more than just updated slot machines—they’re turning into smart, connected entertainment hubs.

1. Cloud-Connected and Update-Ready Machines Are the New Standard

For years, VGTs were treated as static—what you installed is what you got. That’s shifting. Today’s top-performing machines are increasingly built to:

• Push real-time software updates

• Offer dynamic game libraries

• Integrate with centralized monitoring and tax-reporting systems

This shift toward software-defined terminals means operators can refresh game offerings remotely or meet new compliance mandates without swapping hardware. It’s like turning every machine into a remotely managed digital storefront.

 

2. AI Is Quietly Entering the Back-End

Don’t expect flashy machine learning features on-screen just yet—but AI is already impacting route management, player analytics, and fraud detection. Some operators are piloting tools that:

• Predict underperforming terminals and recommend repositioning

• Adjust payout rates to match regional behavior trends (within legal limits)

• Flag irregular player sessions for auditing

These tools reduce downtime, improve operator yield, and support compliance in high-regulation markets.

 

3. Customization Is Becoming a Revenue Multiplier

Players respond to personalization—and VGTs are catching up. Systems now allow for:

• Player recognition via loyalty cards

• Theme and color customization per machine

• Seasonal or event-based game packs (e.g., holiday-themed reels)

One multi-state route operator reported a 12% lift in average session length after introducing a “favorites” memory function per player account.

 

4. Video Gaming Terminals Are Bridging Retail and Online Play

Some jurisdictions are now experimenting with hybrid licenses , allowing players to:

• Earn points on VGTs redeemable in online platforms

• Sync player profiles across in-store and mobile environments

• Start a game session in-store and continue it online (pending legal frameworks)

This online/offline blend is particularly strong in Canada and parts of Europe, where lottery and sports betting platforms are state-run and already digitized.

 

5. Compact Footprint, Higher Yield

As retail real estate gets pricier, new VGT designs are shrinking in size but expanding in utility. Some machines now pack 8+ games into a single vertical unit with a touchscreen + RFID card system , replacing the need for external attendants or ticket processing. Manufacturers are calling it “floor efficiency per square foot.”

This format is ideal for high-traffic, small-format locations like urban bars, airport lounges, or truck stops—places that weren’t traditional gaming sites a decade ago.

 

6. Regulation-Driven Tech Partnerships Are Accelerating

It’s not just about cool tech—it’s about staying legal. To that end:

• VGT makers are partnering with compliance tech firms

• Remote audit software is being embedded at the firmware level

• Some suppliers now offer “regulation-as-a-service” bundled into the machine cost

This matters most in regions like the U.S. Midwest, where VGTs are governed by strict payout transparency laws and real-time tax reporting mandates.

Bottom line: innovation in VGTs is practical, not flashy. It’s about uptime, compliance, floor profitability, and bridging into the online world. The next wave of growth won’t come from better graphics—it’ll come from smarter systems.

 

Competitive Intelligence And Benchmarking

The video gaming terminals market isn’t dominated by flashy brands—it’s shaped by gritty, operationally savvy companies that understand local regulation, regional preferences, and retail economics. Most leading players aren’t fighting for headlines—they’re fighting for machine placement and long-term revenue share.

Let’s break down how the major players are positioning themselves.

Scientific Games (Light & Wonder)

Previously operating under the broader Scientific Games brand, Light & Wonder has emerged as a dominant force in video gaming content and systems. While they’ve traditionally excelled in casino slot games, they’ve made a calculated push into VGTs—especially in markets like Illinois and Pennsylvania.

Their edge? Content depth and real-time platform integration . Route operators favor Light & Wonder for their diverse game libraries and reliable backend analytics. Operators often say the brand “feels like a casino, but fits in a bar.”

 

Aristocrat Gaming

Aristocrat brings global casino experience into local VGT markets. Known for visually engaging slot-style games, they’re adapting their software for smaller footprint VGTs without losing the entertainment factor.

Their machines tend to outperform in higher-volume locations (urban bars, truck stops) due to their strong session engagement and proven loyalty drivers . They also lead in multi-game cabinets designed for regulatory flexibility.

 

Everi Holdings

Everi owns a growing share of the VGT market by focusing on compliance-first, modular platforms. Their strategy revolves around “ compliance baked into hardware ” , making them a go-to choice for newer or fast-expanding VGT states.

They also offer financing programs for small venues and route operators, which makes them appealing in markets with limited upfront capital. Think of Everi as the practical, route-operator-friendly option.

 

Inspired Entertainment

Known for their virtual sports platforms, Inspired has moved into VGTs with a content-first approach. They stand out in Europe—especially in the UK, where fixed odds betting terminals (FOBTs) laid the groundwork for VGT expansion.

Their strength lies in game refresh cycles and screen design optimization , which keeps players returning even in low-footfall locations. They’re now expanding further into North America via partnerships with lottery agencies.

 

JCM Global & Novomatic (Partnerships and Hardware)

While JCM is better known for cash handling systems and Novomatic for traditional slot machines, both companies now supply hardware and backend infrastructure for VGT manufacturers. Their focus is behind the curtain —but they power many of the machines on the floor.

In markets like Canada, these firms often work as OEM partners , helping provincial regulators set up secure, networked VGT ecosystems with full audit trails.

 

Smaller Route Operators and Regional OEMs

In truth, local and regional players still control a meaningful share of machine placement. Companies like Accel Entertainment (Illinois) or Golden Route Operations (Nevada) act as route operators and also commission custom-branded terminals built by contract manufacturers.

These operators win on local knowledge —they know how to navigate municipal laws, build trust with venue owners, and optimize machine mix per location. Their growth often outpaces national brands in newly legalized states.

 

Competitive Dynamics at a Glance

• Light & Wonder and Aristocrat dominate through premium content and platform reliability.

• Everi and Inspired win on affordability, flexibility, and speed to deploy.

• Regional route operators own the placement game—they often choose what gets installed and where.

• Partnerships with hardware OEMs and payment system providers underpin the ecosystem’s reliability and security.

To be honest, this isn’t a winner-takes-all market. Success depends on how well each player adapts to local rules, bar owners’ preferences, and gameplay psychology. The best VGT firms don’t just sell machines—they enable ecosystems.

 

Regional Landscape And Adoption Outlook

The video gaming terminals market doesn’t behave like a typical global segment. Its expansion depends almost entirely on local regulation, tax frameworks, and cultural acceptance of casual gambling . That makes regional dynamics both more important—and more fragmented—than in most entertainment markets.

North America

This is the largest and most mature regional market , led by the United States and Canada , each with their own structural quirks.

In the U.S. , the market is shaped by state-level legislation. States like Illinois, Pennsylvania, West Virginia, and Louisiana have legalized VGTs outside of casinos—usually in bars, truck stops, or fraternal organizations. Illinois is the poster child here, with over 45,000 terminals operating statewide.

VGTs are increasingly seen as a "third rail" revenue stream : not online, not in a casino, but a stable earner for both state tax revenue and local venue owners.

In Canada , VGTs are regulated and operated by provincial lottery corporations. Provinces like Manitoba, Alberta, and Quebec use centralized control systems that allow remote auditing and uniform game updates. This gives the region a high level of operational security—but limits vendor competition.

Operators in this region have learned to play the long game—winning contracts is hard, but once secured, they’re very sticky.

 

Europe

Europe’s VGT story is complex but promising . In countries like Italy, the UK, Spain, and the Czech Republic , fixed-odds betting terminals (FOBTs) and amusement-with-prize machines have evolved into what now qualifies as VGTs.

Regulation is the big wildcard. Some governments are tightening rules (like the UK’s cap on betting limits), while others are expanding non-casino gaming to support local businesses.

Italy has a well-established VGT market, supported by a national gaming registry , centralized game approval, and consistent tax take. Spain’s regional governments allow terminals in bars and arcades, though legal harmonization remains a hurdle.

Germany is a standout—its high regulatory barrier has slowed VGT penetration, but recent changes in online gambling laws may open the door for hybrid VGT-online gaming ecosystems .

 

Asia Pacific

While not traditionally strong in VGTs, this region is starting to show signs of momentum—especially in Australia and New Zealand , where pokies (electronic gambling machines) are deeply embedded in hospitality culture.

Australia alone has over 180,000 EGMs , many of which would qualify as VGTs in the North American sense. These are mostly found in pubs, clubs, and hotels—not casinos. The machines are highly standardized and subject to detailed compliance rules per state (e.g., New South Wales vs. Victoria).

Elsewhere in Asia, cultural and regulatory resistance to public gambling still limits the market. That said, some Southeast Asian countries are evaluating VGTs for deployment in controlled tourism zones and entertainment districts.

The long-term play here may be hybrid models tied to government-controlled lottery systems.

 

Latin America

This region is on the cusp of legalization in several markets . Countries like Argentina, Mexico, and Colombia have legalized gaming in select jurisdictions, and VGTs are being floated as a scalable model for small businesses and entertainment venues.

The potential is large—but so is the volatility. Inconsistent regulation and lack of tax enforcement still spook major OEMs. Local route operators dominate today, often deploying lower-cost, refurbished machines with minimal back-end control.

Still, some states in Mexico and Brazil are rolling out pilot programs for VGT frameworks tied to national lotteries.

 

Middle East and Africa (MEA)

Due to cultural and religious constraints, this is the least developed VGT market globally . Most countries in the region either prohibit gambling entirely or confine it to state-run lotteries.

That said, a few pockets show early-stage activity:

• South Africa has legal limited payout machines (LPMs), essentially low-stakes VGTs in bars and clubs

• Kenya and Nigeria are seeing growth in digital betting kiosks, which may evolve into terminal-based formats if licensing matures

Realistically, this region will remain a slow adopter unless legal frameworks evolve.

 

Key Regional Takeaways

• North America leads in both installed base and regulatory momentum

• Europe is fragmented but strong, with innovation driven by tax and compliance reform

• Asia Pacific is dominated by Australia, but Southeast Asia could offer fresh ground

• Latin America is high-risk, high-reward, with early legalization efforts in motion

• MEA remains a niche play, with few pathways for traditional VGT growth

To be honest, VGTs don’t scale the way mobile apps do. They’re physical, regulated, and bound by law. Winning in this space means showing up early, understanding local politics, and building trust—machine by machine.

 

End-User Dynamics And Use Case

In the video gaming terminals market, end users aren’t just players—they’re venue owners, route operators, state regulators, and infrastructure managers. And each group interacts with VGTs for different reasons. Understanding how value is created across these layers is key to decoding how this market works.

Bars, Taverns, and Small Hospitality Venues

These are the frontline adopters in most VGT-enabled regions—especially in U.S. states like Illinois, Louisiana, and West Virginia. For these establishments, VGTs are a high-margin revenue stream that supplements food and beverage sales without requiring major floor space or staffing.

Most machines are installed under revenue-sharing agreements with route operators, meaning the bar doesn’t need to buy or manage the terminal. Instead, they get:

• A percentage of the gross gaming revenue (typically 20–35%)

• New customer traffic and longer dwell times

• Loyalty systems integrated with bar promotions

For a local bar owner, one terminal generating $200/day could mean an extra $50K per year in bottom-line profit—without hiring a single additional staff member.

 

Truck Stops and Travel Centers

These venues rely heavily on high-frequency, transient traffic , which makes them ideal for quick-session gaming. VGTs in truck stops often have higher daily throughput than in bars and are typically placed in semi-private “gaming lounges.”

Operators here value:

• Fast game cycling

• Low maintenance requirements

• Secure cash handling systems

Because these businesses run on razor-thin fuel margins, VGTs can often be their most profitable square footage , especially in regions with long-haul traffic.

 

Fraternal and Veterans Organizations (VFWs, Moose Lodges, etc.)

These nonprofit social clubs represent a niche but valuable segment. In many U.S. states, VGTs are permitted only in these kinds of venues due to their charitable status.

Revenue generated from VGTs often goes back into community programming, event spaces, or member services. This makes the machines not just income generators, but mission enablers .

Unlike commercial bars, these organizations often manage their own licensing and compliance paperwork. As such, they prefer machines with built-in audit systems and simple reporting dashboards .

 

Casinos and Racinos

VGTs play a secondary role here but are still important—particularly in smaller “satellite” casinos or racetracks. These venues use VGTs to fill space in low-traffic areas or diversify gaming portfolios .

Casinos typically opt for:

• High-capacity multi-game cabinets

• Advanced user analytics

• Loyalty integration with broader casino platforms

Think of it as using VGTs to smooth the revenue curve between peak hours.

 

Use Case: Bar + VGT = Local Turnaround

In 2023, a struggling tavern in southern Illinois added four VGTs under a contract with a regional route operator. Within six months:

• Gaming revenue accounted for 28% of total monthly income

• Foot traffic increased by 22% , with longer average stays

• The bar reinvested part of the revenue into upgraded seating and better food options

Notably, the VGT machines were refreshed remotely every quarter with seasonal content, and player card adoption reached over 65%. What was once a break-even operation became a profitable neighborhood staple.

 

Bottom Line

Every end user engages with VGTs differently. A bar owner wants simplicity and cash flow. A veterans lodge wants community funding. A casino wants floor optimization. But they all want the same core things: reliable uptime, minimal friction, and consistent returns.

And in a post-pandemic world where many small venues are still recovering, VGTs offer one of the few plug-and-play monetization models that actually work.

 

Recent Developments + Opportunities & Restraints

Recent Developments (Last 2 Years)

• Light & Wonder (formerly Scientific Games) expanded its North American VGT footprint in 2024 by signing multi-year content distribution agreements with two major route operators in Illinois and West Virginia. The deal gives bars and truck stops access to a rotating library of casino-style slot titles, managed via cloud-based content delivery.

• Everi Holdings rolled out its Valor VGT platform in early 2023, designed for compact installations with integrated compliance reporting and real-time performance dashboards. The system has since been deployed in over 700 new locations across the U.S. Midwest.

• Inspired Entertainment launched its next-gen VGT cabinet, Vantage Curve , in late 2023, optimized for multi-game functionality and LED display efficiency. It’s already gained traction in UK betting shops and Italian bar venues.

• The state of Georgia (U.S.) passed a pilot program in mid-2024 allowing regulated VGT deployment in fraternal organizations, marking the state's first significant move toward non-casino gaming. Rollout is expected to start in early 2025.

• JCM Global partnered with Canadian provincial lottery commissions in 2023 to deploy real-time cash monitoring modules in over 8,000 VGTs, improving fraud detection and central audit reliability.

 

Opportunities

• Legalization Momentum in Untapped U.S. States: States like Texas, Georgia, and South Carolina are exploring regulated VGT models for small business revenue and public funding, especially in post-pandemic recovery plans. Once legislation clears, these could become massive high-growth markets.

• Expansion of Hybrid Gaming Models: Operators are starting to connect VGT loyalty programs to online betting wallets , enabling a seamless player experience across retail and digital. This convergence could increase user engagement and regulatory buy-in from states already managing online gaming.

• Emerging Market Deployments: Latin American countries like Mexico and Argentina are evaluating national VGT programs that could operate under lottery or municipal gaming licenses. Vendors offering compact, low-power systems may gain first-mover advantage.

 

Restraints

• Patchy and Unpredictable Regulation: The biggest bottleneck is inconsistent legal treatment of VGTs—sometimes by jurisdiction, sometimes by city block. Even within states like Pennsylvania or West Virginia, operators face local zoning laws, approval delays, and shifting compliance standards.

• Upfront CapEx and Licensing Complexity: Although VGTs generate long-term revenue, the initial cost of hardware, permits, and compliance infrastructure can be a steep hurdle for smaller venue owners. Many rely on third-party financing or route operators to bridge the gap.

 

7.1. Report Coverage Table

Report Attribute	Details
Forecast Period	2024 – 2030
Market Size Value in 2024	USD 7.1 Billion
Revenue Forecast in 2030	USD 10.6 Billion
Overall Growth Rate	CAGR of 6.8% (2024 – 2030)
Base Year for Estimation	2024
Historical Data	2019 – 2023
Unit	USD Million, CAGR (2024 – 2030)
Segmentation	By Terminal Type, Game Type, End-Use Location, Component, Geography
By Terminal Type	Standalone VGTs, Networked VGTs
By Game Type	Video Slot Games, Video Poker & Keno, Multi-Game Platforms
By End-Use Location	Casinos, Bars and Taverns, Convenience Stores & Truck Stops, Fraternal Organizations
By Component	Hardware, Software Platforms, Maintenance & Services
By Region	North America, Europe, Asia Pacific, Latin America, Middle East & Africa
Country Scope	U.S., Canada, UK, Germany, Italy, Australia, Mexico, Brazil, etc.
Market Drivers	- Hybrid in-person/online gaming trends - Legal expansion across U.S. states and Europe - High-margin revenue model for small venues
Customization Option	Available upon request