The invention relates to a method and system for operating a gaming terminal where the gaming terminal cabinet itself is an active feature or element of the wagering game. The method and system of the invention involve a gaming terminal cabinet that is transformable from a primary external configuration to a secondary external configuration. The transformation of the gaming terminal cabinet may be based on an outcome of a basic wagering game, a bonus wagering game, or both. The secondary external configuration may involve a single transformation or it may involve multiple transformations. At the end of the wagering game, the gaming terminal cabinet may be transformed back into the primary external configuration. The transformation of the gaming terminal cabinet may also be used to attract the attention of passersby when the gaming terminal is idle to thereby generate interest in the gaming terminal.