Evanston’s City Council has postponed a decision on regulating or banning sweepstakes machines, which operate in a legal gray area of Illinois gambling laws. Since 2009, video gambling machines have been banned in the city. However, sweepstakes kiosks remain because they exploit a loophole, posing as promotional games instead of gambling devices. Players convert winnings into gift cards or credits for more games, avoiding standard state gambling laws.
The Illinois Prizes and Gifts Act permits sweepstakes machines as long as entry is free. However, these machines often require payment, mimicking gambling and violating the law, as noted in a memo by Evanston Health & Human Services Director Ike Ogbo. As prizes or coupons are used instead of cash, these machines bypass regulation by the Illinois Gaming Board.
Some Illinois municipalities, like Chicago, have prohibited these machines for operating outside the state’s regulated gambling framework. Two Illinois towns, Elmwood Park and Dolton, allow sweepstakes machines. Elmwood Park does not actively license them according to Ogbo’s memo.
Local business owners often oppose a ban on these machines as they generate revenue. Players win entries or gift cards, leaving them in a legal loophole with Illinois laws. At a recent meeting, City Council voted 4-2 to regulate, not ban these machines under an ordinance proposed by Ald. Bobby Burns, 5th. Proposed regulations include a licensing fee of $500 and a limit of 20 machines citywide, with no more than two per location.
These regulations ensure that sweepstakes machines are not just gambling by another name, said Burns. Machines will offer a free entry option similar to sweepstakes at malls.
Burns encouraged locals to read the ordinance to understand its intent. However, three absent aldermen meant the 4-2 vote fell short of the five needed to pass the ordinance. Consequently, the decision was delayed until the next City Council meeting.
Ald. Matt Rodgers, 8th, advocates regulation over a total ban, citing the impact on small business owners in his Ward. Regulations should be sensible, allowing the City to oversee where these machines operate, he stressed.
On the other side, Ald. Shawn Iles, 3rd, favored a total ban, arguing the machines mimic gambling, posing a social cost. Only two communities allow sweepstakes machines, he noted. Ald. Clare Kelly, 1st, concurred, expressing concern over their proliferation in Evanston.
Adriana Vital, a manager at a CITGO gas station, represented business owners at the meeting, urging against a ban, suggesting it would harm local business following a flavored tobacco ban from 2024. Vital explained that the machines help offset revenue losses from the tobacco prohibition.
The Council scheduled a vote on the sweepstakes machine ordinance for July 27.