Evanston Reconsiders Regulation of Sweepstakes Machines

Evanston City Council remains undecided on the future of sweepstakes machines. These gaming kiosks operate in a legal gray area. They resemble slot machines, and the Illinois gambling laws currently do not regulate them strictly.

Background on Sweepstakes Machines

Sweepstakes machines differ from video gambling machines, which have been banned in Evanston since 2009. These machines promise promotional games. Players receive gift cards or credits instead of cash winnings. The Illinois Prizes and Gifts Act allows them if no purchase is necessary, but players often need to pay to play. This resemblance to gambling concerns officials.

Evanston Health & Human Services Director Ike Ogbo noted that sweepstakes machines avoid state regulation by using coupons instead of cash game entries.

Some Illinois cities like Chicago have banned these kiosks. However, Elmwood Park and Dolton allow them, aligning with their video gaming policies. Yet Elmwood Park issues no active licenses, adding to the confusion.

Local Business Owners’ Perspective

Business owners oppose a total ban due to revenue benefits. The profit is shared between machine companies and businesses hosting them.

On July 13, the Council voted 4-2 for regulation instead of a ban, as proposed by Ald. Bobby Burns, 5th. Suggested rules include a $500 annual license fee for each kiosk. Only 20 machines would be allowed at a time, with a maximum of two per location.

Burns stated, “These changes ensure these machines won’t be disguised gambling.” The proposal includes a free entry similar to mall sweepstakes.

The proposal needs a five-vote majority, which it did not receive, leaving the final decision pending.

Arguments for and Against Regulation

Ald. Matt Rodgers, 8th, supports regulation due to potential business benefits. He argues that gas station owners face high costs, limiting their profits. He believes oversight is possible without stifling operations.

Ald. Shawn Iles, 3rd, advocates for a total ban. He cites the social costs resembling gambling. Ald. Clare Kelly, 1st, shares this concern despite recognizing small business challenges.

Adriana Vital, a CITGO gas station manager, represents many business owners opposing a ban. She argues that after Evanston banned flavored tobacco in April 2024, businesses had already faced revenue loss. The machines offered alternative income sources.

Vital stated, “We oppose the ban that council considers.”

The City Council will revisit the sweepstakes machine debate on July 27.