The future of sweepstakes machines in Evanston is uncertain as the City Council delays a decision on whether to regulate or ban these gaming kiosks. These machines operate in a legal gray area under Illinois gambling laws.
Background
Evanston has banned video gambling machines since 2009. However, sweepstakes machines, which resemble slot machines, have continued to operate. This is due to a loophole in state laws that classifies them as promotional games rather than gambling. Players use gift cards or credits from their winnings to play various games.
Legal Concerns
The Illinois Prizes and Gifts Act permits sweepstakes machines if no purchase is required to enter. Yet, these machines often require payment, mimicking gambling and violating the law, as noted in a memo from Evanston Health & Human Services Director Ike Ogbo. This loophole allows the machines to evade state regulations by the Illinois Gaming Board and taxation under the Illinois Video Gaming Act.
State-wide Actions
Other Illinois municipalities, including Chicago, have banned these gaming machines. They argue the machines exploit the system by operating outside regulated frameworks. In contrast, Elmwood Park and Dolton allow sweepstakes machines and license video gaming machines, but Elmwood Park has no active kiosks.
Evanston’s Regulatory Proposal
On July 13, City Council voted 4-2 to regulate rather than ban sweepstakes machines. The proposed ordinance, led by Ald. Bobby Burns, includes an annual $500 licensing fee per business and limits the city to 20 machines—with a maximum of two per establishment. The regulation also mandates a free entry option to ensure compliance with promotional standards.
Ald. Matt Rodgers advocated for regulation, citing the needs of business owners in his ward who operate these machines. He emphasized the economic challenges facing local businesses, particularly gas stations, in the current climate.
Opposition and Concerns
While Ald. Shawn Iles and Ald. Clare Kelly called for a total ban, arguing the machines mimic gambling and pose social risks, business owners expressed opposition to a ban. Adriana Vital, a gas station manager, stated that the machines help offset revenue losses from Evanston’s ban on flavored tobacco products.
The decision will be revisited at the next City Council meeting on July 27.
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